Nome do Arquivo,Trecho (300 caracteres antes e depois da Keyword)
2020-ESG-Report-cintas.txt,"ee biometric screening, annual free flu
Safety and Health Administration (OSHA). Safety Certification. In addition, every T.H Chan School of Public Health safety shots, tobacco cessation sessions and an
Employee‑partners, contractors, vendors manager attends OSHA’s 10‑hour Safety and health curriculum. employee‑partner assistance program,
and visitors are all covered by the system, which offers advice on mental health, legal
which focuses on hazard prevention, training, and financial issues.
#1
management commitment and worker"
2020-ESG-Report-cintas.txt,"cognized Statistics averages for their respective industries. In VPP,
risk management and/or management system standards/ management, labor and OSHA work cooperatively and
guidelines and, if so, a list of the standards/guidelines. proactively to prevent fatalities, injuries and illnesses
b. A description of the scope of workers, activities, and through a system focused on hazard prevention and
workplaces covered by the occupational health and control; worksite analysis; training; and management
safety management system, and an explanation of commitment and worker involvement. Every three to five"
2020-ESG-Report-cintas.txt,"properly). Quarterly, we conduct corporate safety
evaluations. Corporate Safety and Health (S&H) employee-
partners perform routine assessments within Cintas
locations to assure safe operation and work with the
location on safety action items. Annually, we complete
S&H risk assessments. Corporate S&H employee-partners
conduct annual reviews of Cintas operations, including a
review of safety programs and Cintas safety initiatives, the
results of which are incorporated into our Safety Scorecard.
403-4 Worker participation, The reporting organization shall report the following Every employee-partner is engaged in continuously"
2020-ESG-Report-cintas.txt,"Safety Scorecard.
403-4 Worker participation, The reporting organization shall report the following Every employee-partner is engaged in continuously
consultation, and information for employees and for workers who are not improving safety. More than 45 of our employee-partners
communication on employees but whose work and/or workplace is are designated as OSHA Special Government Employees
occupational health controlled by the organization: (SGEs) — with the responsibility of mentoring companies
and safety a. A description of the processes for worker participation in safety and health."
2020-ESG-Report-cintas.txt,"in the development, implementation,
Cintas participates and partners with OSHA’s VPP program
and evaluation of the occupational health and safety
to evaluate and assess our Safety and Health management
management system, and for providing access to and
system for effectiveness. Through this partnership,
communicating relevant information on occupational
employee-partners receive safety training covering more
health and safety to workers.
than 30 topics each year. Managers are required to attend
b. Where formal joint management–worker health and"
2020-ESG-Report-cintas.txt,"4GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational We’re engaged in continuously improving safety and
health and safety health through our SICs, defining strategies and leading
continued effective change. SICs have been established at every
operation and typically meet on a monthly basis. The
committees make recommendations directly to the
operation’s General Manager who has decision-making
authority.
403-5 Worker training on The reporting organization shall report the following Cintas employee-partners receive safety training covering"
2020-ESG-Report-cintas.txt,"of the
Harvard T.H. Chan School of Public Health safety and
health curriculum. Maintenance Safety Certification:
All of our maintenance employee-partners must
successfully complete this certification — arming them
with the knowledge they need to consistently act with
safety in mind.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 25GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational 403-6 Promotion of worker The reporting organization shall report the following Cintas provides multiple medical insurance plans for its"
2020-ESG-Report-cintas.txt,"ermined;
ii. which of these hazards have caused or contributed to
high-consequence injuries during the reporting period;
iii. actions taken or underway to eliminate these hazards
and minimize risks using the hierarchy of controls.
d. Any actions taken or underway to eliminate other
work-related hazards and minimize risks using the
hierarchy of controls.
e. Whether the rates have been calculated based on
200,000 or 1,000,000 hours worked.
f. Whether and, if so, why any workers have been excluded
from this disclosure, including the types of worker excluded."
2020-ESG-Report-cintas.txt,"000 hours worked.
f. Whether and, if so, why any workers have been excluded
from this disclosure, including the types of worker excluded.
g. Any contextual information necessary to understand
how the data have been compiled, such as
any standards, methodologies, and assumptions used.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 27GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational 403-10 Worker-related ill health The reporting organization shall report the following All incidents are investigated and recorded, tracking"
2020-ESG-Report-cintas.txt,"ped a
b. For all workers who are not employees but whose work
Preparedness Plan in response to the COVID-19
and/or workplace is controlled by the organization:
pandemic. All Cintas employee-partners (managers and
i. The number of fatalities as a result of work-related
frontline) are responsible for implementing and
ill health;
complying with this plan. Per the guidance outlined in
ii. The number of cases of recordable work-related
OSHA publications – Guidance on Preparing Workplaces
ill health;
for COVID-19 and Prevent Worker Exposure to"
2020-ESG-Report-cintas.txt,"d to
implemented and enforces controls to prevent exposure
cases of ill health during the reporting period;
that meet or exceed those outlined for medium
iii. actions taken or underway to eliminate these hazards
exposure risk, including engineering controls where
and minimize risks using the hierarchy of controls.
feasible, social distancing, and appropriate PPE,
d. Whether and, if so, why any workers have been
hygiene and cleaning supplies.
excluded from this disclosure, including the types of
worker excluded."
2020-ESG-Report-cintas.txt,"WE’RE
™
READY
CINTAS 2020 ESG REPORTWelcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WELCOME
This report is for the fiscal year
Our company is dedicated
June 1, 2019 to May 31, 2020.
to operating to the highest
to our 2020 Environmental, Social and Governance (ESG) ethical and safety standards,
creating a diverse and
Report, in which we share our ESG performance with
inclusive workplace,
investors, employee-partners, customers, communities,"
2020-ESG-Report-cintas.txt,"tecting supply chain workers’ rights
not in use, are re‑stocked for future
and sourcing responsibly.
customers to maximize their lifespan. Our Key facts
lasting commitment to the environment • Governance, Ethics and Integrity (p.8) $7.09 billion
and our communities is evident from our Doing business in an honest, professional
processes and innovation, which ensure our and ethical way.
revenues
rental facilities are operating efficiently.
Our positive discontent drives us to do WHAT’S NEXT? 7.2%
what is best for our employee‑partners, In 2021, we aim to expand our ESG"
2020-ESG-Report-cintas.txt,"mpact for our own people, as well
as supporting good causes and lending neighbors a helping hand.
RESPONDING TO COVID-19 DIVERSITY AND INCLUSION COMMUNITY ENGAGEMENT
Using our Preparedness Plan, we Supporting diversity and equality at Cintas We’re proud to partner with leading
implemented controls including physical means fostering a respectful, creative, not‑for‑profit community organizations
barriers, social distancing, appropriate productive environment where every to make a positive impact.
Personal Protective Equipment (PPE), and employee‑partner can reach their full"
2020-ESG-Report-cintas.txt,"means fostering a respectful, creative, not‑for‑profit community organizations
barriers, social distancing, appropriate productive environment where every to make a positive impact.
Personal Protective Equipment (PPE), and employee‑partner can reach their full
We created our Clothe the Kids campaign
additional hygiene and cleaning regimes. potential — regardless of gender, ethnicity,
with Matthew 25: Ministries, a humanitarian
Keeping people safe remains our top nationality, disability or age.
aid organization. Since 2003, our employee‑"
2020-ESG-Report-cintas.txt,"ositive impact.
Personal Protective Equipment (PPE), and employee‑partner can reach their full
We created our Clothe the Kids campaign
additional hygiene and cleaning regimes. potential — regardless of gender, ethnicity,
with Matthew 25: Ministries, a humanitarian
Keeping people safe remains our top nationality, disability or age.
aid organization. Since 2003, our employee‑
priority. Thanks to the diligence and
In 2020, Cintas was again included on the partners have provided more than 3 million
flexibility of our employee‑partners, we"
2020-ESG-Report-cintas.txt,"ry‑Friendly® Employers list, earning a articles of clothing for disadvantaged children
also continue to focus on providing This year, we celebrated the first
“Better for Veterans” designation, and was and contributed thousands of volunteer hours.
essential products and services to our anniversary of the Cintas Partner
also named to the 2020 Disability Equality
customers, from cleaning supplies, Our collaboration with the American Assistance Fund, created to provide
Index® “Best Places to Work.”
disinfectant services, hand sanitizer to Heart Association dates back to 2005. financial assistance to employee‑partners"
2020-ESG-Report-cintas.txt,"g This year, we celebrated the first
“Better for Veterans” designation, and was and contributed thousands of volunteer hours.
essential products and services to our anniversary of the Cintas Partner
also named to the 2020 Disability Equality
customers, from cleaning supplies, Our collaboration with the American Assistance Fund, created to provide
Index® “Best Places to Work.”
disinfectant services, hand sanitizer to Heart Association dates back to 2005. financial assistance to employee‑partners
scrubs, face masks and face shields. Our four Employee‑Partner Business Since 2016, we have trained more than who have been negatively affected by"
2020-ESG-Report-cintas.txt,"partners
scrubs, face masks and face shields. Our four Employee‑Partner Business Since 2016, we have trained more than who have been negatively affected by
Resource Groups — focused on women, 714,000 customers on lifesaving CPR and natural disasters. The fund began with
African American, Hispanic and Latin first aid. We have also committed to raise $500,000 seed money from the company.
American, and military and veteran $100,000 every year through heart walks In FY21 the company is committed to
employee‑partners — provide platforms and runs. By forming and sponsoring Relay donating $2,000,000 to the fund."
2020-ESG-Report-cintas.txt,"t talent for our leadership
Our First Aid & Safety Division has started
face masks and other safety pipeline, and we monitor representation
a multiyear program with the American
supplies donated to various across manager and board positions.
Diabetes Association. In FY ‘20, we gave $490,059
schools/organizations containing
Cintas First Aid Cabinets to 68 youth
and treating COVID-19 camps in 28 U.S. states, reaching more than
7,500 young people with type 1 or type 2 raised for the American Heart
diabetes or prediabetes. Association through employee-"
2020-ESG-Report-cintas.txt,"eshwater. We have also to local water bodies
installed water reclamation and reuse 3 The rest is reused
or discharged
systems across many of our facilities.
* Home laundry calculations are based
Learn more about our social responsibility efforts at CintasCares.com. on WSI (Washing Systems LLC) studies 5Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE INSPIRED TO CONTINUE
MEETING THE HIGHEST STANDARDS
Guided by our Safety Vision, we want every site to be injury-free, every employee-partner"
2020-ESG-Report-cintas.txt,"ems LLC) studies 5Welcome Our Positive Impact in 2020 Energy and Emissions Water Safety and Health Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE INSPIRED TO CONTINUE
MEETING THE HIGHEST STANDARDS
Guided by our Safety Vision, we want every site to be injury-free, every employee-partner
to help improve safety and Cintas to be known as a global leader in safety and health.
MANAGING SAFETY AND HEALTH SAFETY AND HEALTH TRAINING Improvement course and each member HEALTH AND WELLNESS
To enforce internationally recognized Every year, our employee‑partners receive of our Senior Management team takes the Our long‑running Live Well program"
2020-ESG-Report-cintas.txt,"y
WE’RE INSPIRED TO CONTINUE
MEETING THE HIGHEST STANDARDS
Guided by our Safety Vision, we want every site to be injury-free, every employee-partner
to help improve safety and Cintas to be known as a global leader in safety and health.
MANAGING SAFETY AND HEALTH SAFETY AND HEALTH TRAINING Improvement course and each member HEALTH AND WELLNESS
To enforce internationally recognized Every year, our employee‑partners receive of our Senior Management team takes the Our long‑running Live Well program
standards, we have implemented an online, on‑the‑job and classroom training Management and Leadership Skills for supports employee‑partners on their"
2020-ESG-Report-cintas.txt,"artners on their
occupational health and safety management on 30 safety topics — and all maintenance Environmental Health and Safety health and wellness journeys. We provide
system in accordance with the Occupational staff must complete the Maintenance Professionals Course, part of the Harvard free biometric screening, annual free flu
Safety and Health Administration (OSHA). Safety Certification. In addition, every T.H Chan School of Public Health safety shots, tobacco cessation sessions and an
Employee‑partners, contractors, vendors manager attends OSHA’s 10‑hour Safety and health curriculum. employee‑partner assistance program,"
2020-ESG-Report-cintas.txt,"School of Public Health safety shots, tobacco cessation sessions and an
Employee‑partners, contractors, vendors manager attends OSHA’s 10‑hour Safety and health curriculum. employee‑partner assistance program,
and visitors are all covered by the system, which offers advice on mental health, legal
which focuses on hazard prevention, training, and financial issues.
#1
management commitment and worker
The Live Well program includes
involvement. We’re also engaged in
free flu shots on location for
continuously improving performance Cintas has a strong all employee-partners"
2020-ESG-Report-cintas.txt,"ealth Sustainable Supply Chain Governance, Ethics and Integrity
WE’RE DEDICATED TO MAINTAINING
AN ETHICAL SUPPLY CHAIN
We require our vendors and contractors to conduct business in
an ethical and moral manner, both domestically and internationally.
MANAGING HUMAN RIGHTS HUMAN RIGHTS TRAINING Using real‑life scenarios and referencing ASSESSING NEW SUPPLIERS
AND LABOR RIGHTS IMPACTS Cintas conducts training to ensure that current global regulations, the TRACE Our purchasing agreements require all
We have zero tolerance of all forms of employee‑partners and others with direct e‑learning course outlines the requirements suppliers and contractors to comply with"
2020-ESG-Report-cintas.txt,"beliefs, values and reflects our
governing body in our organization. ethics and values, including honesty and company’s commitment to
Our Board is made up of eight members integrity, hard work, trust and respect, as ethical business practices
(six male and two female) and all senior well as defining a common language and and regulatory compliance
leaders report to our CEO, Scott Farmer, customs. All management trainees and
who is also Chairman of the Board. manager‑level hires undergo Corporate
Culture training. Employee‑partners"
2020-ESG-Report-cintas.txt,"ponsibility for them.
Compensation Committee — to address R EPORTING CONCERNS representative or the Compliance
key issues in greater detail. We are committed to complying with all Department, or call the Cintas Direct Line, a
applicable laws and regulations, and to dedicated, 24/7 toll‑free phone line operated
Our Corporate Culture spans our reporting situations or issues that are in by an independent third party.
violation of the law, company policy or our
beliefs, ethics and values, including
core principles. Employee‑partners have"
2020-ESG-Report-cintas.txt,"dimensions are respectively
navigated and embraced over time, and to ensure that
the interests of stakeholders, including shareholders,
are protected. The individuals and structures governing
organizations have significant influence on the quality
of oversight and the decisions made.
102-21 Consulting stakeholders a. Processes for consultation between stakeholders Proxy Statement, pp. 6 and 39
on economic, and the highest governance body on economic, Cintas customer service line (800) 246-8271
environmental, environmental, and social topics. Cintas direct line for employee-partners (800) 292-9480"
2020-ESG-Report-cintas.txt,"nual total compensation for the organization’s highest-paid
compensation ratio individual in each country of significant operations
to the median percentage increase in annual
total compensation for all employees (excluding
the highest-paid individual) in the same country.
102-4 Location of operations a. Number of countries where the organization operates, Form 10-K, p. 3
and the names of countries where it has significant
operations and/or that are relevant to the topics
covered in the report.
Stakeholder 102-40 List of stakeholder groups a. A list of stakeholder groups engaged by the Customers, investors, employee-partners,"
2020-ESG-Report-cintas.txt,"e highest-paid individual) in the same country.
102-4 Location of operations a. Number of countries where the organization operates, Form 10-K, p. 3
and the names of countries where it has significant
operations and/or that are relevant to the topics
covered in the report.
Stakeholder 102-40 List of stakeholder groups a. A list of stakeholder groups engaged by the Customers, investors, employee-partners,
engagement organization. communities, suppliers, and environmental and
regulatory agencies.
102-41 Collective bargaining a. Percentage of total employees covered by collective Approximately 2.8% or 1,120 unionized employee-"
2020-ESG-Report-cintas.txt,"Form 10-K, p. 3
and the names of countries where it has significant
operations and/or that are relevant to the topics
covered in the report.
Stakeholder 102-40 List of stakeholder groups a. A list of stakeholder groups engaged by the Customers, investors, employee-partners,
engagement organization. communities, suppliers, and environmental and
regulatory agencies.
102-41 Collective bargaining a. Percentage of total employees covered by collective Approximately 2.8% or 1,120 unionized employee-
agreements bargaining agreements. partners out of 40,000 employee-partners are covered"
2020-ESG-Report-cintas.txt,"al number of employees;
ii. total number of operations;
iii. net sales (for private sector organizations) or net
revenues (for public sector organizations);
iv. total capitalization (for private sector organizations)
broken down in terms of debt and equity;
v. quantity of products or services provided.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 7GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics
ECONOMIC
GRI 201: Economic 201-3 Defined benefit plan a. If the plan’s liabilities are met by the organization’s Cintas offers all non-union employee-partners within"
2020-ESG-Report-cintas.txt,"provided.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 7GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics
ECONOMIC
GRI 201: Economic 201-3 Defined benefit plan a. If the plan’s liabilities are met by the organization’s Cintas offers all non-union employee-partners within
performance obligations and other general resources, the estimated value of those the U.S. a retirement plan, The Cintas Partners’ Plan,
retirement plans liabilities. that comprises a 401(k), profit sharing and employee"
2020-ESG-Report-cintas.txt,"ance obligations and other general resources, the estimated value of those the U.S. a retirement plan, The Cintas Partners’ Plan,
retirement plans liabilities. that comprises a 401(k), profit sharing and employee
b. If a separate fund exists to pay the plan’s pension stock ownership plan. We do not have a defined benefit
liabilities: plan for this population. The company makes an annual
i. the extent to which the scheme’s liabilities are contribution each year to the Partners’ Plan for eligible
estimated to be covered by the assets that have been employee-partners. The contribution varies each year."
2020-ESG-Report-cintas.txt,"ble
estimated to be covered by the assets that have been employee-partners. The contribution varies each year.
set aside to meet them; Form 10-K, p. 58
ii. the basis on which that estimate has been arrived at; Form 5500
iii. when that estimate was made.
c. If a fund set up to pay the plan’s pension liabilities is
not fully covered, explain the strategy, if any, adopted
by the employer to work towards full coverage, and the
timescale, if any, by which the employer hopes to achieve
full coverage.
d. Percentage of salary contributed by employee"
2020-ESG-Report-cintas.txt,"We conduct an annual evaluation of our hourly
presence level wage by gender compensated based on wages subject to minimum wage production wage scales. We look at where production
compared to local rules, report the relevant ratio of the entry level wage by wage scales are compared to not only the market data
minimum wage gender at significant locations of operation to the but also the minimum wage rates in all state and local
minimum wage. jurisdictions in which we are located. We then evaluate
b. When a significant proportion of other workers all employee-partners hourly rates to ensure they are"
2020-ESG-Report-cintas.txt,"anti-corruption policies governance body members and employees, all of whom
continued corruption policies and procedures have been communicated to, broken receive training on the subject. They are not specifically
and procedures down by region. communicated to other board members. Global
b. Total number and percentage of employees that the Sanctions Compliance ensures that the appropriate
organization’s anti-corruption policies and procedures vendors are aware of Cintas’ policies. As necessary,
have been communicated to, broken down by employee suppliers are compliant with Cintas’ policies or provide"
2020-ESG-Report-cintas.txt,"anization’s anti-corruption policies and
procedures have been communicated to, broken down
by type of business partner and region. Describe if the
organization’s anti-corruption policies and procedures
have been communicated to any other persons
or organizations.
d. Total number and percentage of governance body
members that have received training on anti-corruption,
broken down by region.
e. Total number and percentage of employees that have
received training on anti-corruption, broken down by
employee category and region."
2020-ESG-Report-cintas.txt,"ether CO2, CH4, from FY ‘19. When factoring in CO2e intensity metrics
N2O, HFCs, PFCs, SF6, NF3, or all. per CWt, GHG emissions were reduced by 98,348,963 lbs
c. Base year or baseline, including the rationale for CO2e, while poundage increased 2.8% in FY ‘20
choosing it. compared to FY ‘19.
d. Scopes in which reductions took place; whether direct
(Scope 1), energy indirect (Scope 2), and/or other indirect
(Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
SOCIAL
GRI 401: Employment 401-1 New employee hires and a. Total number and rate of new employee hires during See GRI 401-1 Appendix"
2020-ESG-Report-cintas.txt,"s were reduced by 98,348,963 lbs
c. Base year or baseline, including the rationale for CO2e, while poundage increased 2.8% in FY ‘20
choosing it. compared to FY ‘19.
d. Scopes in which reductions took place; whether direct
(Scope 1), energy indirect (Scope 2), and/or other indirect
(Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
SOCIAL
GRI 401: Employment 401-1 New employee hires and a. Total number and rate of new employee hires during See GRI 401-1 Appendix
employee turnover the reporting period, by age group, gender and region."
2020-ESG-Report-cintas.txt,"rationale for CO2e, while poundage increased 2.8% in FY ‘20
choosing it. compared to FY ‘19.
d. Scopes in which reductions took place; whether direct
(Scope 1), energy indirect (Scope 2), and/or other indirect
(Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
SOCIAL
GRI 401: Employment 401-1 New employee hires and a. Total number and rate of new employee hires during See GRI 401-1 Appendix
employee turnover the reporting period, by age group, gender and region.
b. Total number and rate of employee turnover during"
2020-ESG-Report-cintas.txt,"processes for workers
to remove themselves from work situations that they At the request of the Honduran government, we helped
believe could cause injury or ill health, and an explanation establish a standard for safety and health — and we
of how workers are protected against reprisals. became the first workplace in Honduras to receive the
d. A description of the processes used to investigate “Safe Company with Safe Work” designation.
work-related incidents, including the processes to identify
Cintas location employee-partners complete evaluations"
2020-ESG-Report-cintas.txt,"visit the GRI website: globalreporting.org. 22GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational The CSOP is an observation of any partner by a member of
health and safety leadership, SIC member or frontline partner. The CSOP is
continued there to identify any behaviors that require additional
coaching (i.e., improving posture, lifting, pushing material
properly). Quarterly, we conduct corporate safety
evaluations. Corporate Safety and Health (S&H) employee-"
2020-ESG-Report-cintas.txt,"n of any partner by a member of
health and safety leadership, SIC member or frontline partner. The CSOP is
continued there to identify any behaviors that require additional
coaching (i.e., improving posture, lifting, pushing material
properly). Quarterly, we conduct corporate safety
evaluations. Corporate Safety and Health (S&H) employee-
partners perform routine assessments within Cintas
locations to assure safe operation and work with the
location on safety action items. Annually, we complete
S&H risk assessments. Corporate S&H employee-partners"
2020-ESG-Report-cintas.txt,"properly). Quarterly, we conduct corporate safety
evaluations. Corporate Safety and Health (S&H) employee-
partners perform routine assessments within Cintas
locations to assure safe operation and work with the
location on safety action items. Annually, we complete
S&H risk assessments. Corporate S&H employee-partners
conduct annual reviews of Cintas operations, including a
review of safety programs and Cintas safety initiatives, the
results of which are incorporated into our Safety Scorecard.
403-4 Worker participation, The reporting organization shall report the following Every employee-partner is engaged in continuously"
2020-ESG-Report-cintas.txt,"assessments within Cintas
locations to assure safe operation and work with the
location on safety action items. Annually, we complete
S&H risk assessments. Corporate S&H employee-partners
conduct annual reviews of Cintas operations, including a
review of safety programs and Cintas safety initiatives, the
results of which are incorporated into our Safety Scorecard.
403-4 Worker participation, The reporting organization shall report the following Every employee-partner is engaged in continuously
consultation, and information for employees and for workers who are not improving safety. More than 45 of our employee-partners"
2020-ESG-Report-cintas.txt,"ponsibility of mentoring companies
and safety a. A description of the processes for worker participation in safety and health.
and consultation in the development, implementation,
Cintas participates and partners with OSHA’s VPP program
and evaluation of the occupational health and safety
to evaluate and assess our Safety and Health management
management system, and for providing access to and
system for effectiveness. Through this partnership,
communicating relevant information on occupational
employee-partners receive safety training covering more"
2020-ESG-Report-cintas.txt,"re formal joint management–worker health and
OSHA’s 10-hour Safety Improvement course. Senior
safety committees exist, a description of their
management team members are required to take this
responsibilities, meeting frequency, decision-making
comprehensive overview of proven principles, which are
authority, and whether and, if so, why any workers are not
featured as part of the Harvard T.H. Chan School of Public
represented by these committees.
Health safety and health curriculum. Maintenance
employee-partners must successfully complete"
2020-ESG-Report-cintas.txt,"ting frequency, decision-making
comprehensive overview of proven principles, which are
authority, and whether and, if so, why any workers are not
featured as part of the Harvard T.H. Chan School of Public
represented by these committees.
Health safety and health curriculum. Maintenance
employee-partners must successfully complete
Maintenance Safety Certification — arming them with the
knowledge they need to consistently act with safety in
mind. Transformational safety processes seek to actively
involve our employee-partners. Employee-partners are"
2020-ESG-Report-cintas.txt,"nd implement solutions for safer job performance.
Continued on next page
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 23GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational An abridged description of the Safety and Improvement
health and safety Committee (SIC) follows. SIC Composition: Each Cintas
continued Rental operation will have a SIC comprising appointed
employee-partners from various departments and work"
2020-ESG-Report-cintas.txt,"NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational An abridged description of the Safety and Improvement
health and safety Committee (SIC) follows. SIC Composition: Each Cintas
continued Rental operation will have a SIC comprising appointed
employee-partners from various departments and work
areas in the facility. To preserve committee tenure,
continuity and effectiveness, members should serve a
term of at least one year, and whenever possible,
multiple employee-partners should not be changed out"
2020-ESG-Report-cintas.txt,"4GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational We’re engaged in continuously improving safety and
health and safety health through our SICs, defining strategies and leading
continued effective change. SICs have been established at every
operation and typically meet on a monthly basis. The
committees make recommendations directly to the
operation’s General Manager who has decision-making
authority.
403-5 Worker training on The reporting organization shall report the following Cintas employee-partners receive safety training covering"
2020-ESG-Report-cintas.txt,"ific work-related hazards, All Cintas managers are required to attend OSHA’s
hazardous activities, or hazardous situations. 10-hour Safety Improvement course. Management Safety
Leadership Skills Course: Our passion for safety starts
from the top. All members of our Senior Management
team are required to take this comprehensive overview
of proven principles, which are featured as part of the
Harvard T.H. Chan School of Public Health safety and
health curriculum. Maintenance Safety Certification:
All of our maintenance employee-partners must"
2020-ESG-Report-cintas.txt,"successfully complete this certification — arming them
with the knowledge they need to consistently act with
safety in mind.
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 25GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational 403-6 Promotion of worker The reporting organization shall report the following Cintas provides multiple medical insurance plans for its
health and safety health information for employees and for workers who are not employee-partners, along with dental and vision"
2020-ESG-Report-cintas.txt,"NDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational 403-6 Promotion of worker The reporting organization shall report the following Cintas provides multiple medical insurance plans for its
health and safety health information for employees and for workers who are not employee-partners, along with dental and vision
continued employees but whose work and/or workplace is insurance coverage. There are multiple medical plans
controlled by the organization: that employee-partners may choose from, with varying"
2020-ESG-Report-cintas.txt,"t the following Cintas provides multiple medical insurance plans for its
health and safety health information for employees and for workers who are not employee-partners, along with dental and vision
continued employees but whose work and/or workplace is insurance coverage. There are multiple medical plans
controlled by the organization: that employee-partners may choose from, with varying
a. An explanation of how the organization facilitates levels of deductibles and out-of-pocket expenses. In
workers’ access to non-occupational medical and general, the company covers up to 80% of its employee-"
2020-ESG-Report-cintas.txt,"mation for employees and for workers who are not employee-partners, along with dental and vision
continued employees but whose work and/or workplace is insurance coverage. There are multiple medical plans
controlled by the organization: that employee-partners may choose from, with varying
a. An explanation of how the organization facilitates levels of deductibles and out-of-pocket expenses. In
workers’ access to non-occupational medical and general, the company covers up to 80% of its employee-
healthcare services, and the scope of access provided. partners’ medical coverage while employee-partners are"
2020-ESG-Report-cintas.txt,"ibles and out-of-pocket expenses. In
workers’ access to non-occupational medical and general, the company covers up to 80% of its employee-
healthcare services, and the scope of access provided. partners’ medical coverage while employee-partners are
b. A description of any voluntary health promotion typically responsible for 20%.
services and programs offered to workers to address
For many years, Cintas has run its Live Well program to
major non-work-related health risks, including the specific
encourage employee-partners to make progress on their"
2020-ESG-Report-cintas.txt,"untary health promotion typically responsible for 20%.
services and programs offered to workers to address
For many years, Cintas has run its Live Well program to
major non-work-related health risks, including the specific
encourage employee-partners to make progress on their
health risks addressed, and how the organization
health and wellness journeys. The company provides free
facilitates workers’ access to these services and programs.
annual biometric screening, free annual flu shots, access
to a tobacco cessation program and an Employee"
2020-ESG-Report-cintas.txt,"GE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 403: Occupational 403-10 Worker-related ill health The reporting organization shall report the following All incidents are investigated and recorded, tracking
health and safety information: weekly trends. Cintas meet or exceed OSHA
continued a. For all employees: requirements. Cintas’ ergonomics program is a
i. The number of fatalities as a result of work-related participatory-based program in which frontline
ill health; employee-partners are educated on ergonomic"
2020-ESG-Report-cintas.txt,"-related participatory-based program in which frontline
ill health; employee-partners are educated on ergonomic
ii. The number of cases of recordable work-related principles and empowered to execute ergonomic
ill health; improvements for their job tasks.
iii. The main types of work-related ill health.
COVID-19 processes: Cintas has developed a
b. For all workers who are not employees but whose work
Preparedness Plan in response to the COVID-19
and/or workplace is controlled by the organization:
pandemic. All Cintas employee-partners (managers and"
2020-ESG-Report-cintas.txt,"rtners (managers and
i. The number of fatalities as a result of work-related
frontline) are responsible for implementing and
ill health;
complying with this plan. Per the guidance outlined in
ii. The number of cases of recordable work-related
OSHA publications – Guidance on Preparing Workplaces
ill health;
for COVID-19 and Prevent Worker Exposure to
iii. The main types of work-related ill health.
Coronavirus (COVID-19), Cintas has assessed and
c. The work-related hazards that pose a risk of ill
evaluated hazards and risks to which employee-partners"
2020-ESG-Report-cintas.txt,"trols.
feasible, social distancing, and appropriate PPE,
d. Whether and, if so, why any workers have been
hygiene and cleaning supplies.
excluded from this disclosure, including the types of
worker excluded.
e. Any contextual information necessary to understand
how the data have been compiled, such as any standards,
methodologies, and assumptions used.
GRI 404: Training 404-2 Programs for upgrading a. Type and scope of programs implemented and Cintas provides many training programs that upgrade
and education employee skills and assistance provided to upgrade employee skills. our employee-partners’ skills, including local need-"
2020-ESG-Report-cintas.txt,"aining programs that upgrade
and education employee skills and assistance provided to upgrade employee skills. our employee-partners’ skills, including local need-
transition assistance b. Transition assistance programs provided to facilitate based, new product and service training, on the job
programs continued employability and the management of training and skills development training. When
career endings resulting from retirement or termination appropriate the company may provide transition
of employment. assistance programs to employee-partners whose"
2020-ESG-Report-cintas.txt,"yability and the management of training and skills development training. When
career endings resulting from retirement or termination appropriate the company may provide transition
of employment. assistance programs to employee-partners whose
employment was terminated (Outplacement).
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 28GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 404: Training 404-3 Percentage of employees a. Percentage of total employees by gender and Cintas’ policy is that all employee-partners receive an"
2020-ESG-Report-cintas.txt,"ompany may provide transition
of employment. assistance programs to employee-partners whose
employment was terminated (Outplacement).
For a detailed explanation of the indicators, visit the GRI website: globalreporting.org. 28GRI Index
GRI STANDARD GRI DISCLOSURE PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Material topics continued
SOCIAL continued
GRI 404: Training 404-3 Percentage of employees a. Percentage of total employees by gender and Cintas’ policy is that all employee-partners receive an
and education receiving regular by employee category who received a regular annual performance review and career discussion. Annual"
2020-ESG-Report-cintas.txt,"4-3 Percentage of employees a. Percentage of total employees by gender and Cintas’ policy is that all employee-partners receive an
and education receiving regular by employee category who received a regular annual performance review and career discussion. Annual
continued performance and career performance and career development review during performance reviews and career development reviews are
development reviews the reporting period. tracked in the HRIS System for all employees, (except for
Rental SSRs) and all production employee-partners. Due"
2020-ESG-Report-cintas.txt,"ners receive an
and education receiving regular by employee category who received a regular annual performance review and career discussion. Annual
continued performance and career performance and career development review during performance reviews and career development reviews are
development reviews the reporting period. tracked in the HRIS System for all employees, (except for
Rental SSRs) and all production employee-partners. Due
to how we archive this data, the details by gender were not
available for past years. Of the 16,529 employee-partners"
2020-ESG-Report-cintas.txt,"ce and career performance and career development review during performance reviews and career development reviews are
development reviews the reporting period. tracked in the HRIS System for all employees, (except for
Rental SSRs) and all production employee-partners. Due
to how we archive this data, the details by gender were not
available for past years. Of the 16,529 employee-partners
who had review forms available to them in FY ‘19, 95%
reported that their performance reviews were complete,
and 90% of employee-partners reported completing their"
2020-ESG-Report-cintas.txt,"employee-partners. Due
to how we archive this data, the details by gender were not
available for past years. Of the 16,529 employee-partners
who had review forms available to them in FY ‘19, 95%
reported that their performance reviews were complete,
and 90% of employee-partners reported completing their
six-month development discussion.
GRI 405: Diversity and 405-2 Ratio of basic salary and a. Ratio of the basic salary and remuneration of women As federal contractors, Cintas does a confidential
equal opportunity remuneration of women to men for each employee category, by significant compensation analysis by job category each year."
2020-ESG-Report-cintas.txt,": Management 103-2 The management Aligns with GRI 412 Cintas requires its vendors and contractors to conduct
approach approach and its business in an ethical and moral manner, both
components domestically and internationally, as specified in our Code
of Conduct. Cintas reinforces this code with an annual
322-point audit program of major contractors and
suppliers conducted by third-party, independent
auditors that are well-experienced and certified under
WRAP guidelines. Read more here and here.
412-2 Employee training on a. Total number of hours in the reporting period devoted Cintas utilizes third-party training via TRACE e-learning"
2020-ESG-Report-cintas.txt,"intas reinforces this code with an annual
322-point audit program of major contractors and
suppliers conducted by third-party, independent
auditors that are well-experienced and certified under
WRAP guidelines. Read more here and here.
412-2 Employee training on a. Total number of hours in the reporting period devoted Cintas utilizes third-party training via TRACE e-learning
human rights policies to training on human rights policies or procedures (Training On Demand), with the focus of training
or procedures concerning aspects of human rights that are relevant employee-partners and suppliers to identify human"
2020-ESG-Report-cintas.txt,"ed under
WRAP guidelines. Read more here and here.
412-2 Employee training on a. Total number of hours in the reporting period devoted Cintas utilizes third-party training via TRACE e-learning
human rights policies to training on human rights policies or procedures (Training On Demand), with the focus of training
or procedures concerning aspects of human rights that are relevant employee-partners and suppliers to identify human
to operations. trafficking and address suspected abuses. In FY ‘20,
b. Percentage of employees trained during the reporting around 300 Cintas Global Supply Chain employee-"
2021-ESG-Report-cintas.txt,"engage with, and the government officials who influence and set public policy. Below is an overview of our key stakeholder groups and our engagement
activities with them during FY21.
EMPLOYEE-PARTNERS CUSTOMERS
HOW WE ENGAGE TOPICS RAISED HOW WE ENGAGE TOPICS RAISED
• One-on-one, team, and • Competitive wages and benefits • Regular face-to-face interactions as • Product and service offerings
company meetings • Diverse and inclusive workforce we provide service • Quality of products and services
• Annual performance reviews • Worker health and well-being • In-person and virtual meetings to • How Cintas products and services"
2021-ESG-Report-cintas.txt,"ve bargaining in accordance with that this particular campaign wanted
employee-partners’ right to freedom of provide as much notice as possible to our
applicable national laws. We strive to Cintas management to take away our
association and collective bargaining affected operations, given the scope of
adhere to U.S. National Labor Relations employee-partners’ right to vote on the
may be at risk. the imminent changes.
Board protocols to support their rights to issue and instead wanted management
exercise their freedom of association and to make that decision for our people, We are unable to report on any Global In cases where a Worker Adjustment and"
2021-ESG-Report-cintas.txt,"Global Supply Chain Suppliers to
classes are treated equally. Nations Declaration of Human Rights, indentured servitude, or enslaved or respect their workers’ rights to organize
the United Nations Guiding Principles on trafficked labor. Further, it prohibits our and collective bargaining (see Labor
This responsibility doesn’t just fall on
Business and Human Rights (UNGP), the Global Supply Chain Suppliers from Relations on pg. 43). Workers must have
Cintas and its employee-partners; it is also
European Convention on Human Rights, requiring any worker to remain under the right to make an informed decision"
2021-ESG-Report-cintas.txt,"h and safety management system Social > Safety and Health > Occupational Health and Safety Management System
403-02 Hazard identification, risk assessment, and incident investigation Social > Safety and Health > Occupational Health and Safety Management System
403-03 Occupational health services Social > Safety and Health > Occupational Health Initiatives
75 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
403-04 Worker participation, consultation, and communication on Social > Safety and Health"
2021-ESG-Report-cintas.txt,"identification, risk assessment, and incident investigation Social > Safety and Health > Occupational Health and Safety Management System
403-03 Occupational health services Social > Safety and Health > Occupational Health Initiatives
75 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
403-04 Worker participation, consultation, and communication on Social > Safety and Health
occupational health and safety
403-05 Worker training on occupational health and safety Social > Safety and Health > Training and Development"
2021-ESG-Report-cintas.txt,"nd Safety Management System
403-03 Occupational health services Social > Safety and Health > Occupational Health Initiatives
75 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
403-04 Worker participation, consultation, and communication on Social > Safety and Health
occupational health and safety
403-05 Worker training on occupational health and safety Social > Safety and Health > Training and Development
403-06 Promotion of worker health Social > Compensation > Employee Benefits"
2021-ESG-Report-cintas.txt,"D RECOGNITION
Lowered Spent $387.7 million with Ranked No. 410 on the
our water diverse suppliers, representing 2021 Fortune 500, our highest-
consumption 16.9% of our total supplier ever ranking
by 5.1% spend – both company records
Reduced our from FY20
Ranked No. 6
total energy on Selling Power’s
Donated $3.8 million
usage by worth of PPE and other Recognized as “50 Best
6.9% from safety products to local one of Forbes’ Companies
FY20 Lowered our communities to support “Best Employers to Sell
employee-partners’ COVID-19 programs for Diversity” For” list"
2021-ESG-Report-cintas.txt,"ng after the date on which such
as of the date made. complexity of commodity supply chains and adoption statements are made, except otherwise as required
necessarily material to investors.
2 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WELCOME
TABLE OF CONTENTS
Welcome to our 2021 Environmental, Social, and Governance (ESG) Report, the latest annual report
2 ABOUT CINTAS in which we share our ESG journey, including our performance, successes, and opportunities, with
2 2021 Highlights 10 About This Report our shareholders, customers, employee-partners, communities in which we do business, and other"
2021-ESG-Report-cintas.txt,"G and analysis in future editions of our annual
8 A Message From Our CEO
journey. The 2021 report includes: ESG Report.
• Climate and Energy Initiatives Thank you for your interest in Cintas. We invite
17 ENVIRONMENT
• Water Interactions you to learn more about our ESG-related
18 Environment • Materials and Waste Innovations initiatives in the overview that follows.
20 Climate and Energy
• Sustainable Supply Chain
25 Water Stewardship
• Diversity and Inclusion Efforts
29 Waste and Materials Use
• Employee-Partner Development"
2021-ESG-Report-cintas.txt,"able business model began
almost 100 years ago at the very origin
of the company and has continued to
evolve in everything we’ve done since.
So this development isn’t a drastic leap
for us. Rather, it’s a natural evolution of
our long-standing business practices.
OUR ORIGINS
The company’s sustainable principles
date back to our origins in 1929 during
the Great Depression. Out-of-work
circus performers Doc Farmer and his
wife Amelia gathered dirty shop rags
that local businesses had thrown away,
Doc and Amelia Farmer Dick Farmer with an employee-partner in 1961"
2021-ESG-Report-cintas.txt,"ok
describing how we run our business. Its TODAY’S CINTAS
central themes are collaboration and
Doc and Amelia’s ingenuity and
common respect, both for our people
environmentally focused activities of
and the world around us. Respecting
almost 100 years ago remain at the core
and valuing one another and each
of our company in 2021. As we’ve grown,
other’s contributions to our business is
we’ve enacted processes and policies
paramount. Over time, this has led to
to promote conducting our business
fantastic employee-partner engagement,"
2021-ESG-Report-cintas.txt,"is
we’ve enacted processes and policies
paramount. Over time, this has led to
to promote conducting our business
fantastic employee-partner engagement,
with the highest ethical standards
great retention rates, a world-class
and keeping people central in all
safety program, and a widely respected
our decisions.
management philosophy. All of this has
supported our ongoing innovation, which Our business growth has been buoyed • Supports and promotes the health, When a customer uses Cintas services
has helped minimize the environmental by our ESG mindset. Today, Cintas: safety, and welfare of our employee- or wears our uniforms, they have"
2021-ESG-Report-cintas.txt,"Our steadfast belief in doing what’s right throughout our operations
their employees footprint. Of the four available options
• Engrains ourselves in the communities in the market – Cintas, our competitors,
guides our efforts to foster a supportive, • Extends the lifespan of consumable
in which we do business by owning disposable items, or do-it-yourself
inclusive environment for all our goods to reduce their overall
and maintaining property and capital solutions – Cintas is the most energy and
employee-partners. They’re engrained environmental impact"
2021-ESG-Report-cintas.txt,"r those who consider home
our customers, suppliers, vendors, and • Offers competitive wages and reductions in natural resource use. laundry options, traditional at-home
business partners. salaries; expansive benefits packages; Considering environmental impacts laundering and drying uses an average
and ongoing support, training and in our business decisions has been a of 84% more water and 69% more energy
development opportunities to all of successful strategy, and beneficial to our than we do.3
our employee-partners financial success."
2021-ESG-Report-cintas.txt,"snapshot of our efforts
Our ongoing efforts in sustainability and
Sometimes we don’t take enough and the foundation for our journey
resource reduction, diversity and inclusion,
credit for our efforts to reduce our ahead. We call this our ESG journey, and
health and safety, and compliance with
environmental impact; foster an it’s just getting started.
laws and regulations are a tremendous
inclusive, supportive atmosphere for
Having the context of where we’ve foundation on which we will base our
our employee-partners; and position"
2021-ESG-Report-cintas.txt,"nd customers range from small service
FY21 IN NUMBERS
sizes get Ready for the Workday® with and manufacturing companies to major 460
operational
confidence. Our products and services corporations employing thousands of
help keep our customers’ facilities and people. With such a diverse customer $ $7.11 billion in sales facilities
employees clean, safe, and looking base, no single customer accounts for Approximately
their best. more than 1% of our total revenue.
40,000
$ $1.11 billion net income
The origins of our family business We service our customers through four employee-"
2021-ESG-Report-cintas.txt,"tive.
become popular decades later, the
what makes Cintas so unique and special. established our Principal Objective in 1979:
philosophy on which Dick based our Our unique culture at Cintas is just
“ We will exceed our customers’ expectations to maximize
company’s management structure was as essential as our products and
very much ESG-centric. He was ahead of services. In fact, it makes all the the long-term value of Cintas for its shareholders and
his time. difference, impacting the quality of
the employee-partners we hire; the working partners.”"
2021-ESG-Report-cintas.txt,"usiness.
To understand how ESG has been
It’s central to creating and maintaining
embedded in our company from our
strong relationships, and a dedication to
beginnings, it helps to understand
more about us – and the people behind
taking care of one another.
the company. Our culture has three elements: our
Principal Objective, our corporate
At Cintas, we don’t refer to each other
as employees, staff, or colleagues; we
character, and our management system.
refer to each other as partners. The term
Dick Farmer meets with production employee-partners"
2021-ESG-Report-cintas.txt,"ous. This is especially true in a system, with policies and procedures
give honest answers and an accurate business: We look at every cost very service business like ours. that help promote our ongoing reliability
accounting of ourselves. carefully and ask ourselves, “If I were • Enthusiasm: Positive attitudes and operational consistency. However,
• High ethical and moral values: We buying this with my own money, would I and optimism are a must in a fast- we still provide leeway and guidance to
believe in strict separation of business spend it on this?” paced environment like ours. help our employee-partners to make"
2021-ESG-Report-cintas.txt,"ght, not what’s A positive outlook goes a long way in decisions that best suit our customers
careful about gifts, entertainment, and expedient: We don’t target short-term cultivating success. and business needs.
business courtesies. We do not want gains at the expense of long-term value. • Competitive urgency: Exceeding In fact, we’re a company of systems
to do anything that could place us in Instead we focus on what is the right the needs of our customers and
built on established ways of doing
a compromising position or cause us thing to do. fellow employee-partners is a simple,"
2021-ESG-Report-cintas.txt,", and expedient: We don’t target short-term cultivating success. and business needs.
business courtesies. We do not want gains at the expense of long-term value. • Competitive urgency: Exceeding In fact, we’re a company of systems
to do anything that could place us in Instead we focus on what is the right the needs of our customers and
built on established ways of doing
a compromising position or cause us thing to do. fellow employee-partners is a simple,
things. Our policies and procedures are
to lose our objectivity. We encourage • Humility and respect for all employee- overriding business necessity. We specific guidelines describing how to"
2021-ESG-Report-cintas.txt,"erm value. • Competitive urgency: Exceeding In fact, we’re a company of systems
to do anything that could place us in Instead we focus on what is the right the needs of our customers and
built on established ways of doing
a compromising position or cause us thing to do. fellow employee-partners is a simple,
things. Our policies and procedures are
to lose our objectivity. We encourage • Humility and respect for all employee- overriding business necessity. We specific guidelines describing how to
employee-partners to use these basic partners: Everyone at Cintas makes should attend to details of our handle certain recurring situations. Our"
2021-ESG-Report-cintas.txt,"Everyone at Cintas makes should attend to details of our handle certain recurring situations. Our
but insightful questions for guidance: vital contributions to our success. business with a sense of urgency,
management system is the constitution
º Is it legal? Am I complying with law We recognize the potential in every enthusiasm, professionalism, upon which we run our business and it
or company policy? human being and are careful to involve and thoroughness.
guides us through what we should and
º How will it make me feel everyone. We want each employee- should not do."
2021-ESG-Report-cintas.txt,"ns can come
about it? from the front lines where the work is
being performed.
At Cintas, we firmly believe our corporate culture – our
people and the principles, values, and behaviors we cultivate
and share – is responsible for our success. And we believe the
ongoing viability of our culture will have the greatest impact
on our future accomplishments.
The Spirit of Cintas truly is the difference!
13 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
STAKEHOLDER ENGAGEMENT
Our Principal Objective (see pg. 12) clearly identifies the three groups we consider our primary stakeholders: customers, employee-partners, and shareholders. At Cintas, each"
2021-ESG-Report-cintas.txt,"er stakeholders around the world that matter to us and our business. Their opinions and interactions with us
provide us with other viewpoints that inform our business decisions. These groups include the people who manufacture our products, the communities in which we do business, the
not-for-profit organizations we engage with, and the government officials who influence and set public policy. Below is an overview of our key stakeholder groups and our engagement
activities with them during FY21.
EMPLOYEE-PARTNERS CUSTOMERS"
2021-ESG-Report-cintas.txt,"ess on goals impact the end user
and videos • Learning and development • Customer Service and 1-800 number • Business continuity
• Personal and professional • Environmental and social impacts direct interactions • Sustainable business practices
development and trainings • Partner-centered support, including • myCintas.com customer portal • Supply chain management
• Direct interaction (Open Door Cintas Partner Assistance Fund • Market research including Net • Customer service issues and requests
Policy and management by • Review of how we do business: Promoter Score (NPS) survey and • Employee-partner diversity and"
2021-ESG-Report-cintas.txt,"• Trademarks
• Human rights and labor practices state-elected officials and other • Safety and health
• Supplier diversity policy influencers • Community engagement
• Supplier mentorship • Cintas Partners’ PAC
and development • Facility tours and virtual tours
15 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR CONTINUED COVID-19 RESPONSE
As the COVID-19 pandemic continued SUPPORTING OUR CUSTOMERS
throughout FY21, we expanded our
To remain a reliable partner in our
commitment to supporting our employee-"
2021-ESG-Report-cintas.txt,"t to supporting our employee-
partners, our customers, and the
customers’ ability to get Ready for
the Workday®, we:
communities in which we do business.
Through our wide range of essential • Continued delivering essential
services and products, we were committed products and crucial services to
to doing our part to support our nation’s front-line businesses throughout
response to the pandemic. the pandemic, including hospitals,
laboratories, food suppliers, grocery
stores, and utility services
PROTECTING OUR EMPLOYEE-PARTNERS"
2021-ESG-Report-cintas.txt,"s’ ability to get Ready for
the Workday®, we:
communities in which we do business.
Through our wide range of essential • Continued delivering essential
services and products, we were committed products and crucial services to
to doing our part to support our nation’s front-line businesses throughout
response to the pandemic. the pandemic, including hospitals,
laboratories, food suppliers, grocery
stores, and utility services
PROTECTING OUR EMPLOYEE-PARTNERS
• Accelerated production and expanded
To support our employee-partners’ sourcing of hand sanitizers, masks, and"
2021-ESG-Report-cintas.txt,"tores, and utility services
PROTECTING OUR EMPLOYEE-PARTNERS
• Accelerated production and expanded
To support our employee-partners’ sourcing of hand sanitizers, masks, and
ongoing essential work, we: gloves, to assist customer access to
these hard-to-find products when they
• Enhanced precautions at Cintas locations
and customer sites through rigorous
were hard to obtain elsewhere
• Expanded our facility services to
cleaning protocols and safety practices
include new electrostatic disinfectant
• Provided PPE to employee-partners"
2021-ESG-Report-cintas.txt,"r employee-partners’ sourcing of hand sanitizers, masks, and
ongoing essential work, we: gloves, to assist customer access to
these hard-to-find products when they
• Enhanced precautions at Cintas locations
and customer sites through rigorous
were hard to obtain elsewhere
• Expanded our facility services to
cleaning protocols and safety practices
include new electrostatic disinfectant
• Provided PPE to employee-partners
services, and spray disinfectant and
• Implemented work-from-home schedules
for those employee-partners whose"
2021-ESG-Report-cintas.txt,"h rigorous
were hard to obtain elsewhere
• Expanded our facility services to
cleaning protocols and safety practices
include new electrostatic disinfectant
• Provided PPE to employee-partners
services, and spray disinfectant and
• Implemented work-from-home schedules
for those employee-partners whose
sanitizer spray services
• Launched the Total Clean Program™,
position allowed for it
combining essential cleaning supplies,
• Instituted a pay protection program
hygienically clean laundering, and
for employee-partners whose pay was"
2021-ESG-Report-cintas.txt,"the Total Clean Program™,
position allowed for it
combining essential cleaning supplies,
• Instituted a pay protection program
hygienically clean laundering, and
for employee-partners whose pay was
dramatically affected by the pandemic
UltraClean® on-site services
• Expanded short-term disability benefits
• Donated $2 million to the Cintas Partner SERVING OUR COMMUNITIES
Assistance Fund
To support the communities in which
• Continued to provide yearly merit
we do business and our philanthropic
increases to front-line employee-partners"
2021-ESG-Report-cintas.txt,"rly merit
we do business and our philanthropic
increases to front-line employee-partners
partnerships, we:
throughout the pandemic
• Eliminated officer bonus payments and • Donated $3.8 million worth of
reduced named officer salaries by 10% products – including masks, gloves,
to help protect as many jobs as possible and hand sanitizer – to help protect
and ensure our ability to provide community members from COVID-19
yearly merit increases to our front-line • Actively supported schools, medical
employee-partners professionals, police officers,"
2021-ESG-Report-cintas.txt,"identify ways fuel use, increase fuel efficiency, and
By innovating with materials, we are
environmental footprint and preserve to reduce energy, water, raw materials, lower emissions.
exploring ways to create circular
natural resources while considering and waste throughout our business. We
In our facilities, we continue our work economies – and even closed-loop
the current and future impacts on our remain committed to innovating and
to reduce our carbon footprint by systems – for our apparel.
employee-partners and our customers, exploring new technologies that will be"
2021-ESG-Report-cintas.txt,", conditions, rather than the start- By January 2022, we expect to deploy
in North America, we have more than which requires that various types of and-stop situations our route-based 13 electric vehicles from three different
14,000 vehicles on the road, consisting vehicles must meet specific exhaust model presents. producers into service. Six Rental and
of our familiar white service trucks and emissions standards.
Additionally, prior efforts to use hybrid
two First Aid & Safety locations in the
vans and our lease-back employee- Northeast and Upper Midwest, and on"
2021-ESG-Report-cintas.txt,"on reuse is our
we must keep innovating solutions that
and formulas. means. But we believe we can be even next big opportunity to make significant
lessen our use of natural resources
better and minimize our use further. improvements to our water draw. We may
Our staff of environmental engineers, even further.
The next stage of our water journey is never reach a point where we can conduct
research and development engineers,
and Six Sigma Black Belts work with
maximizing our water reuse strategy.
facility management employee-partners Water Reuse"
2021-ESG-Report-cintas.txt,"ENCE INACTION
of the freshwater we withdrew to local
water bodies.
While technology has played a key have considerably reduced our water The added information helps plant
Our laundering processes generate far
role in our water journey – and will still withdrawals and energy use. Being management identify potential
less wastewater than home laundering
be important as we continue honing precise in what we do and how we inefficiencies, holds capacity specialist
because we use less water to launder
conservation methods and innovating do it has had a major impact. We’ve employee-partners more accountable"
2021-ESG-Report-cintas.txt,"surements help provide more program, we estimate it will improve
is released in compliance with the by implementing more efficiency in our
precise data on every load we wash, our operational efficiency by more
respective local discharge standards and process, without adding substantial
help improve the efficacy of our wash than 13%, reduce our annual water
permitting requirements. capital costs. More effective processes,
alley, and help us lower our water, draw by more than 350 million gallons,
as well as increased employee-"
2021-ESG-Report-cintas.txt,"n an effort to decrease our center, which is attached to Cintas’
ongoing efforts to create a broader in sustainable garments (see pg. 30).
waste destined for landfills. The corporate headquarters, posted a
circular economy for our garment
We currently record waste data from program initially included seven 97.98% diversion rate in FY21 – the
products. Additionally, we are striving to
our distribution centers in Ashland, Ky.; of our distribution centers, each best-ever mark by a Cintas location.
meet our customers, employee-partners,"
2021-ESG-Report-cintas.txt,". tons, and our overall
implement and monitor the program, others to Matthew 25: Ministries and
that’s how Doc and Amelia started diversion rate was 94.4%.
Cintas was TRUE Certified by Green other charitable organizations.
our company. As we continue our
Business Certification Inc. at all
organizational review, we expect to The success of this program
seven locations in FY17. In FY19,
report more in-depth information In FY21, Cintas our Chicago distribution center is defined by our distribution
regarding our efforts on waste in future employee-partners’ commitment to"
2021-ESG-Report-cintas.txt,"information In FY21, Cintas our Chicago distribution center is defined by our distribution
regarding our efforts on waste in future employee-partners’ commitment to
donated 216 tons of was the most recent facility to gain
editions of our ESG Report. Meanwhile, our Zero Waste goals. Each location
its TRUE Certification, which it has
we continue to look for ways to reduce reclaimed materials to has its own Green Team that supports
waste in our operations. Matthew 25: Ministries
since maintained.
our production employee-partners’"
2021-ESG-Report-cintas.txt,"implementing location-specific staff, and share best practices across
in a 94.4% diversion rate across all
processes that divert more than 90% of the organization.
participating facilities last year.
their waste away from landfill so they
We will continue to work with all of
are TRUE Certified by Green Business In FY21, that resulted in our
our locations to help maximize waste
Certification Inc. distribution centers diverting
diversion. The buy-in and support of
1,188 tons of cardboard, 48 tons
our employee-partners has shown"
2021-ESG-Report-cintas.txt,"G REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SOCIAL
32 Our People
33 Diversity, Equity, and Inclusion
35 Talent Recruitment
36 Talent Retention
37 Compensation
38 P erformance and Advancement
39 Training and Development
41 E mployee-Partner Engagement
43 Labor Relations
45 Human Rights
46 Safety and Health
49 Global Supply Chain and Supplier Relations
51 Supplier Diversity
52 Local Communities
31 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PEOPLE
At Cintas, our employee-partners are OUR CORPORATE CULTURE We believe our employee-partners and providing fulfilling professional"
2021-ESG-Report-cintas.txt,"g professional
the heart of our company. Our policies AND CHARACTER are our best advocates and brand opportunities that create a path for
and procedures instruct and guide us
Our exceptionally strong corporate
representatives, primarily because continued growth and development.
in how we run our business and help they are engaged and fulfilled by their
culture underpins everything we do. This commitment to our people has
maintain our consistent quality. But as careers. Because they give so much
Common respect for all our employee- created a positive, dynamic cycle that"
2021-ESG-Report-cintas.txt,"rily because continued growth and development.
in how we run our business and help they are engaged and fulfilled by their
culture underpins everything we do. This commitment to our people has
maintain our consistent quality. But as careers. Because they give so much
Common respect for all our employee- created a positive, dynamic cycle that
a service provider, it’s our people and of themselves for us, we know it’s our
partners is fundamental, and we believe fuels our cohesive, high-functioning
our corporate culture that ultimately responsibility to treat our employee-"
2021-ESG-Report-cintas.txt,"l our employee- created a positive, dynamic cycle that
a service provider, it’s our people and of themselves for us, we know it’s our
partners is fundamental, and we believe fuels our cohesive, high-functioning
our corporate culture that ultimately responsibility to treat our employee-
that everyone contributes to our workforce and drives our ongoing
define us.
collective success – whether they’re a
partners well, offering programs that
success as a company.
support their health and well-being,
Our employee-partners bring the new employee-partner loading trucks in"
2021-ESG-Report-cintas.txt,"to our workforce and drives our ongoing
define us.
collective success – whether they’re a
partners well, offering programs that
success as a company.
support their health and well-being,
Our employee-partners bring the new employee-partner loading trucks in
essence of Cintas to life each day as they one of our laundry-processing facilities
help our customers get Ready for the or a 35-year veteran executive running
Workday®. They are what make Cintas one of our business divisions.
truly unique.
Our employee-partners embody our"
2021-ESG-Report-cintas.txt,"whether they’re a
partners well, offering programs that
success as a company.
support their health and well-being,
Our employee-partners bring the new employee-partner loading trucks in
essence of Cintas to life each day as they one of our laundry-processing facilities
help our customers get Ready for the or a 35-year veteran executive running
Workday®. They are what make Cintas one of our business divisions.
truly unique.
Our employee-partners embody our
corporate character. We expect them to
ENGAGING OUR EMPLOYEE-PARTNERS be professional, enthusiastic, thorough,"
2021-ESG-Report-cintas.txt,"ironment where everyone can
what’s right, not what’s expedient. And
contribute to our collective success.
positive discontent has helped make
When they do, we believe they’re more
our business better, reinforced by our
likely to feel engaged professionally. And
engaged employees are far more likely
competitive urgency.
to stay, so we retain their knowledge and
skills to help make the company better. A STRONG FOUNDATION
In his book The Spirit Is The Difference, At Cintas, we’re fortunate to have
our Founder Dick Farmer was very approximately 40,000 employee-"
2021-ESG-Report-cintas.txt,"ely
competitive urgency.
to stay, so we retain their knowledge and
skills to help make the company better. A STRONG FOUNDATION
In his book The Spirit Is The Difference, At Cintas, we’re fortunate to have
our Founder Dick Farmer was very approximately 40,000 employee-
deliberate to note: “It is important partners who reflect these qualities,
to recognize the potential in every giving our business an incredibly strong
human being. It is important to involve foundation. We’ve worked hard to foster
everyone, and to make everyone a an environment where every employee-"
2021-ESG-Report-cintas.txt,"championed in their pursuit of their
foundation of our Human Capital and professional goals.
Human Resources strategies.
32 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY, AND INCLUSION
We have five components to our overall WHY DIVERSITY IS IMPORTANT Almost our entire workforce – 99.3% – are transition service members to civilian
Diversity, Equity, and Inclusion strategy full-time employees and almost 36% are life, including accommodations from G.I.
We believe bringing employee-partners"
2021-ESG-Report-cintas.txt,"onents to our overall WHY DIVERSITY IS IMPORTANT Almost our entire workforce – 99.3% – are transition service members to civilian
Diversity, Equity, and Inclusion strategy full-time employees and almost 36% are life, including accommodations from G.I.
We believe bringing employee-partners
at Cintas:
together with different perspectives, life
female. Our company demographics are Jobs (Top Military-Friendly Employers)
also representative of the communities and Military Spouse (Top Military Spouse
• Employee-Partner Engagement – experiences, and backgrounds benefits"
2021-ESG-Report-cintas.txt,"36% are life, including accommodations from G.I.
We believe bringing employee-partners
at Cintas:
together with different perspectives, life
female. Our company demographics are Jobs (Top Military-Friendly Employers)
also representative of the communities and Military Spouse (Top Military Spouse
• Employee-Partner Engagement – experiences, and backgrounds benefits
Recruitment, retention, development, everyone. We’ve found that when you
in which we operate, as almost 43% of Friendly Employers).
our employee-partners self-identify as a"
2021-ESG-Report-cintas.txt,"rom G.I.
We believe bringing employee-partners
at Cintas:
together with different perspectives, life
female. Our company demographics are Jobs (Top Military-Friendly Employers)
also representative of the communities and Military Spouse (Top Military Spouse
• Employee-Partner Engagement – experiences, and backgrounds benefits
Recruitment, retention, development, everyone. We’ve found that when you
in which we operate, as almost 43% of Friendly Employers).
our employee-partners self-identify as a
and promotion bring people from different backgrounds Our efforts to hire employee-partners"
2021-ESG-Report-cintas.txt,"ity.”
community and belonging at the
• Supplier Diversity – Economic the long term.
In addition to more common definitions workplace, with four distinct groups
inclusion, innovation, and value
Our diverse workforce helps us better of diversity, we also look to expand the providing peer support for our women,
• Multicultural Marketing – Listening
understand how our products and perspective of our workforce with other Black/African American, Latinx/Hispanic,
to customers and delivering innovative
services are viewed, how they meet our types of diversity, including diversity of and military-affiliated employee-"
2021-ESG-Report-cintas.txt,"ct groups
inclusion, innovation, and value
Our diverse workforce helps us better of diversity, we also look to expand the providing peer support for our women,
• Multicultural Marketing – Listening
understand how our products and perspective of our workforce with other Black/African American, Latinx/Hispanic,
to customers and delivering innovative
services are viewed, how they meet our types of diversity, including diversity of and military-affiliated employee-
products and services that exceed
customers’ needs, and what innovations thought, and employee-partners with partners. Read more about our PBRGs"
2021-ESG-Report-cintas.txt,"ing innovative
services are viewed, how they meet our types of diversity, including diversity of and military-affiliated employee-
products and services that exceed
customers’ needs, and what innovations thought, and employee-partners with partners. Read more about our PBRGs
their expectations
may benefit our business. Having a broad disabilities or those who are military- on pg. 40.
We’ve made a committed effort to range of experiences to lean on also affiliated. Our military outreach programs
foster a workforce of employee- helps us enter new markets and gain are regularly recognized for their"
2021-ESG-Report-cintas.txt,"heir expectations
may benefit our business. Having a broad disabilities or those who are military- on pg. 40.
We’ve made a committed effort to range of experiences to lean on also affiliated. Our military outreach programs
foster a workforce of employee- helps us enter new markets and gain are regularly recognized for their
partners representative of different new customers. support and effectiveness in helping
generations, races, religions, abilities,
sexual orientations, and other identifying
categories, as well as employee-partners TOTAL WORKFORCE BREAKDOWNS"
2021-ESG-Report-cintas.txt,"religions, abilities,
sexual orientations, and other identifying
categories, as well as employee-partners TOTAL WORKFORCE BREAKDOWNS
who bring a diversity of thought to our
business. We want our workforce to By Employment Type By Gender By Minority Status
reflect the communities in which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS"
2021-ESG-Report-cintas.txt,"s well as employee-partners TOTAL WORKFORCE BREAKDOWNS
who bring a diversity of thought to our
business. We want our workforce to By Employment Type By Gender By Minority Status
reflect the communities in which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376"
2021-ESG-Report-cintas.txt,"which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age"
2021-ESG-Report-cintas.txt,"rcentage of Workforce 24.7% 12.0% 12.7%
TOTAL WORKFORCE – BY EEO DEMOGRAPHICS PERCENTAGE
White 52.6%
Latinx/Hispanic 19.4%
Black/African American 13.3%
Asian 3.7%
Two or More Races 2.2%
Native American/Alaskan 0.4%
Native Hawaiian/Pacific Islander 0.3%
Not Specified 8.1%
34 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RECRUITMENT
ATTRACTING THE BEST ON-CAMPUS RECRUITING: TALENT RECRUITMENT DATA
To generate a diverse and qualified
IDENTIFYING OUR FUTURE TALENT
applicant pool, we post our positions We use a broad on-campus recruiting FY21 NEW EMPLOYEE-PARTNER HIRES TOTAL PERCENTAGE"
2021-ESG-Report-cintas.txt,"versities (HBCUs) and AGE BRACKET TOTAL UNDER 30 30-50 OVER 50
where the local recruiting base may be the Hispanic Association of Colleges
Male 67.1% 30.9% 31.2% 5.0%
limited. Further, we work with a diverse and Universities – that help us find
Female 32.9% 12.2% 15.4% 5.3%
group of minority commerce groups qualified candidates.
and organizations around the country to Total 100% 43.1% 46.6% 10.3%
Our internship program is open to
recruit and source applicants.
undergraduate students and exposes
Employee-partners can apply for any them to all facets of our business. We"
2021-ESG-Report-cintas.txt,"directly into our MT program
and educational advancements – in our upon graduation.
human resource information system
We’ve also developed competitive
(HRIS). This allows hiring managers to
apprenticeship and shadow programs
see the entire spectrum of talent at
with a small group of universities.
Cintas and source internal candidates
These allow potential applicants the
who may not otherwise be aware of
opportunity to learn more about our
available opportunities.
business from local management
We continue to review our talent- employee-partners before applying"
2021-ESG-Report-cintas.txt,"icants the
who may not otherwise be aware of
opportunity to learn more about our
available opportunities.
business from local management
We continue to review our talent- employee-partners before applying
acquisition strategies – as well as for positions.
overlooked or underutilized avenues to
source candidates – and we monitor the
effectiveness of our value proposition to
remain an employer of choice.
35 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RETENTION
With approximately 40,000 employee- TALENT RETENTION DATA"
2021-ESG-Report-cintas.txt,"ain an employer of choice.
35 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RETENTION
With approximately 40,000 employee- TALENT RETENTION DATA
partners company-wide, we have a FY21 Voluntary Turnover
dynamic and talented workforce with
skills and experience spanning hundreds
RATES VS. WORKFORCE TOTAL PERCENTAGE
of disciplines. Each person brings a
unique perspective and background to Male 4,515 11.3%
the job, and our goal is to keep talented Female 2,318 5.8%
employee-partners engaged and"
2021-ESG-Report-cintas.txt,"5.8%
employee-partners engaged and
Total Voluntary Turnover 6,883 17.1%
support their growth and development.
Our competitive salaries and
comprehensive benefits are attractive to BY AGE BRACKET TOTAL UNDER 30 30-50 OVER 50
prospective employees, but we stand out
Male 66.1% 23.9% 34.5% 7.7%
for our focus on professional development.
Female 33.9% 9.3% 16.7% 7.9%
We’ve evaluated the value proposition
Percentage of Voluntary Turnover 100% 33.2% 51.2% 15.6%
of working at Cintas at every stage of an
employee-partner’s career and in every"
2021-ESG-Report-cintas.txt,"prospective employees, but we stand out
Male 66.1% 23.9% 34.5% 7.7%
for our focus on professional development.
Female 33.9% 9.3% 16.7% 7.9%
We’ve evaluated the value proposition
Percentage of Voluntary Turnover 100% 33.2% 51.2% 15.6%
of working at Cintas at every stage of an
employee-partner’s career and in every
FY21 Involuntary Turnover
operational area, from our production
facilities to service and sales representatives
(SSRs), and management and corporate RATES VS WORKFORCE TOTAL PERCENTAGE
positions. We’ve found that our employee-"
2021-ESG-Report-cintas.txt,"a role
Female 36.2% 6.5% 16.1% 13.6%
is already somewhere in the company –
and we provide opportunities for their Percentage of Involuntary Turnover 100% 24.9% 48.6% 26.5%
continued professional growth and
fulfillment without the need to look for At Cintas, we’re able to offer different Between our various business divisions may be out in the field interacting with
employment elsewhere. careers and job opportunities to meet and corporate departments, we can customers. From there, they could go
Our approach distinguishes us from someone’s professional needs, with provide employee-partners new into local management."
2021-ESG-Report-cintas.txt,"tart as at Cintas and has been a key factor in
term meaningful career – more like a and ongoing company investment in a production partner or in one of our helping us retain the best talent.
“career jungle gym.” their development. distribution centers, while their next step
36 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION
Cintas offers competitive compensation Cintas provides access to multiple THE PARTNERS PLAN AND Cintas also makes annual discretionary
packages to its employee-partners, medical insurance plans to all employee- RETIREMENT SUPPORT contributions to employee-partners’"
2021-ESG-Report-cintas.txt,"ion centers, while their next step
36 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION
Cintas offers competitive compensation Cintas provides access to multiple THE PARTNERS PLAN AND Cintas also makes annual discretionary
packages to its employee-partners, medical insurance plans to all employee- RETIREMENT SUPPORT contributions to employee-partners’
including salaries and wages, a partners, along with dental and vision individual retirement accounts in the
The vast majority of our employee-"
2021-ESG-Report-cintas.txt,"36 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION
Cintas offers competitive compensation Cintas provides access to multiple THE PARTNERS PLAN AND Cintas also makes annual discretionary
packages to its employee-partners, medical insurance plans to all employee- RETIREMENT SUPPORT contributions to employee-partners’
including salaries and wages, a partners, along with dental and vision individual retirement accounts in the
The vast majority of our employee-
comprehensive benefits package, insurance coverage. Employee-partners form of profit sharing and its ESOP."
2021-ESG-Report-cintas.txt,"o all employee- RETIREMENT SUPPORT contributions to employee-partners’
including salaries and wages, a partners, along with dental and vision individual retirement accounts in the
The vast majority of our employee-
comprehensive benefits package, insurance coverage. Employee-partners form of profit sharing and its ESOP.
partners are eligible for our three-part
and a generous retirement program. can choose to participate in plans Contributions are approved by the
retirement program, known as the
Employee-partners are paid weekly. with varying levels and combinations"
2021-ESG-Report-cintas.txt,"hensive benefits package, insurance coverage. Employee-partners form of profit sharing and its ESOP.
partners are eligible for our three-part
and a generous retirement program. can choose to participate in plans Contributions are approved by the
retirement program, known as the
Employee-partners are paid weekly. with varying levels and combinations
Partners Plan, which includes a traditional
Board of Directors based on the
of co-pays, deductibles, and out-of- company’s financial performance and
More information about our 401(k) investment account, employee"
2021-ESG-Report-cintas.txt,"butions are approved by the
retirement program, known as the
Employee-partners are paid weekly. with varying levels and combinations
Partners Plan, which includes a traditional
Board of Directors based on the
of co-pays, deductibles, and out-of- company’s financial performance and
More information about our 401(k) investment account, employee
pocket expenses, including a free health are distributed based on a point system
compensation strategy is available in stock ownership program (ESOP), and
insurance option. Employee-partners anchored in tenure and compensation."
2021-ESG-Report-cintas.txt,"ed based on a point system
compensation strategy is available in stock ownership program (ESOP), and
insurance option. Employee-partners anchored in tenure and compensation.
the 2021 Proxy Statement, including our profit sharing.
can reduce their health insurance rates Both forms of contribution are made
Board of Directors’ compensation and
by participating in confidential annual After three months of service, all automatically and fully vest after three
remuneration strategy and policies, plus
personal health evaluations and sharing employee-partners are automatically years at the company. Since FY15, Cintas"
2021-ESG-Report-cintas.txt,"ployee-partners are automatically years at the company. Since FY15, Cintas
specific Board and executive management
compensation programs and pay ratios.
the results with their doctors. e Pan rro til cle ipd
a
nin
t
so au ur t4 o0 m1( ak t)
i
cp aro llyg cra om nt.
ribute
h coas
n
ti rn ic br ue ta iose nd
s
fi rt os man $n 2u 8a .l
2
d mis ic llr ioet ni o tona ry
For many years, we’ve offered our Live
Well program and encouraged our
3% of their salary to their retirement $55.8 million in FY21.
EMPLOYEE BENEFITS"
2021-ESG-Report-cintas.txt,"e automatically years at the company. Since FY15, Cintas
specific Board and executive management
compensation programs and pay ratios.
the results with their doctors. e Pan rro til cle ipd
a
nin
t
so au ur t4 o0 m1( ak t)
i
cp aro llyg cra om nt.
ribute
h coas
n
ti rn ic br ue ta iose nd
s
fi rt os man $n 2u 8a .l
2
d mis ic llr ioet ni o tona ry
For many years, we’ve offered our Live
Well program and encouraged our
3% of their salary to their retirement $55.8 million in FY21.
EMPLOYEE BENEFITS
employee-partners to make progress"
2021-ESG-Report-cintas.txt,"nd executive management
compensation programs and pay ratios.
the results with their doctors. e Pan rro til cle ipd
a
nin
t
so au ur t4 o0 m1( ak t)
i
cp aro llyg cra om nt.
ribute
h coas
n
ti rn ic br ue ta iose nd
s
fi rt os man $n 2u 8a .l
2
d mis ic llr ioet ni o tona ry
For many years, we’ve offered our Live
Well program and encouraged our
3% of their salary to their retirement $55.8 million in FY21.
EMPLOYEE BENEFITS
employee-partners to make progress
fund unless they opt out or designate
A select number of our employee-"
2021-ESG-Report-cintas.txt,"sults with their doctors. e Pan rro til cle ipd
a
nin
t
so au ur t4 o0 m1( ak t)
i
cp aro llyg cra om nt.
ribute
h coas
n
ti rn ic br ue ta iose nd
s
fi rt os man $n 2u 8a .l
2
d mis ic llr ioet ni o tona ry
For many years, we’ve offered our Live
Well program and encouraged our
3% of their salary to their retirement $55.8 million in FY21.
EMPLOYEE BENEFITS
employee-partners to make progress
fund unless they opt out or designate
A select number of our employee-
a different amount before becoming
Full- and part-time employee-partners on their health and wellness journeys. partners covered by collective bargaining"
2021-ESG-Report-cintas.txt,"artners covered by collective bargaining
eligible; this percentage can be
can enroll in our comprehensive The company provides free annual agreements have other retirement
adjusted at any time after enrollment.
benefits program, whether in biometric screening, free annual flu programs, including a limited number
Based on eligibility, company matching
individual programs or in the whole shots, COVID-19 vaccines, and access with defined benefit plans. More
contributions are allocated to the first
package. Employee-partners become to tobacco-cessation and weight-loss information about these specific plans is"
2021-ESG-Report-cintas.txt,"pany provides free annual agreements have other retirement
adjusted at any time after enrollment.
benefits program, whether in biometric screening, free annual flu programs, including a limited number
Based on eligibility, company matching
individual programs or in the whole shots, COVID-19 vaccines, and access with defined benefit plans. More
contributions are allocated to the first
package. Employee-partners become to tobacco-cessation and weight-loss information about these specific plans is
10% of employee-partners’ contributions"
2021-ESG-Report-cintas.txt,"e other retirement
adjusted at any time after enrollment.
benefits program, whether in biometric screening, free annual flu programs, including a limited number
Based on eligibility, company matching
individual programs or in the whole shots, COVID-19 vaccines, and access with defined benefit plans. More
contributions are allocated to the first
package. Employee-partners become to tobacco-cessation and weight-loss information about these specific plans is
10% of employee-partners’ contributions
eligible for most contributory benefit programs. Further, our Employee available in our FY21 Form 10-K."
2021-ESG-Report-cintas.txt,". Further, our Employee available in our FY21 Form 10-K.
to their 401(k) accounts. The 401(k)
options after 30 days of employment, Assistance Program (EAP) provides free
account fully vests after five years of
while our retirement package has access to counseling for mental health,
different eligibilities. legal, and financial issues.
employment with Cintas.
Our benefits program includes medical Cintas provides alternative benefit
insurance, retirement savings and programs to a select number of
contributions, paid time off, flexible employee-partners whose benefits"
2021-ESG-Report-cintas.txt,"ings accounts, packages are negotiated separately
disability coverage, and basic life through their respective collective
insurance. We also have programs bargaining agreements.
designed to support healthy living and
assist with commuting and parenthood.
37 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE AND ADVANCEMENT
Our business relies on the passion, ANNUAL PERFORMANCE REVIEWS individual development plans. Managers skill gaps that have developed within
expertise, and dedication of our have access to a wide selection of the last year. For employee-partners,"
2021-ESG-Report-cintas.txt,"tive collective
insurance. We also have programs bargaining agreements.
designed to support healthy living and
assist with commuting and parenthood.
37 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE AND ADVANCEMENT
Our business relies on the passion, ANNUAL PERFORMANCE REVIEWS individual development plans. Managers skill gaps that have developed within
expertise, and dedication of our have access to a wide selection of the last year. For employee-partners,
Each year, every employee-partner takes"
2021-ESG-Report-cintas.txt,"IRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE AND ADVANCEMENT
Our business relies on the passion, ANNUAL PERFORMANCE REVIEWS individual development plans. Managers skill gaps that have developed within
expertise, and dedication of our have access to a wide selection of the last year. For employee-partners,
Each year, every employee-partner takes
people, and our commitment to their developmental tools and resources to annual reviews and succession planning
part in our annual performance review
career development is vital to our help employee-partners improve in many help identify skill and knowledge"
2021-ESG-Report-cintas.txt,"velopment is vital to our help employee-partners improve in many help identify skill and knowledge
process. For all salaried partners, the
company’s success.
review process includes both a self-
different areas of leadership and other opportunities. For the company, the
skills, including emotional intelligence, results of this comprehensive process
Each year, we undertake a holistic assessment and a manager assessment of
public speaking, delegation, and factor into both our short- and long-term
approach to our employee-partners’ their performance against their business"
2021-ESG-Report-cintas.txt,"lts of this comprehensive process
Each year, we undertake a holistic assessment and a manager assessment of
public speaking, delegation, and factor into both our short- and long-term
approach to our employee-partners’ their performance against their business
performance and advancement. This not goals and developmental targets.
conflict resolution. training and development planning and
our recruiting strategy – both for internal
only supports our immediate company The performance review process
Additionally, salaried employee- candidate development and for external"
2021-ESG-Report-cintas.txt,"tor into both our short- and long-term
approach to our employee-partners’ their performance against their business
performance and advancement. This not goals and developmental targets.
conflict resolution. training and development planning and
our recruiting strategy – both for internal
only supports our immediate company The performance review process
Additionally, salaried employee- candidate development and for external
and personnel goals, but also helps also informs potential compensation
position our employee-partners to"
2021-ESG-Report-cintas.txt,"helps also informs potential compensation
position our employee-partners to
partners and their managers agree on
adjustments through merit increases,
candidate sourcing.
new objectives for the coming year.
maximize their performance at Cintas, market adjustments, promotions, and Succession planning also helps us
These typically include two or three
both today and throughout their careers.
measurable business goals along with
position or responsibility changes. identify and develop the company’s
future leaders. Once an employee-"
2021-ESG-Report-cintas.txt,"and develop the company’s
future leaders. Once an employee-
partner is identified as having high
SUCCESSION PLANNING
potential or aptitude, they are offered
PARTNER DEVELOPMENT CYCLE Succession planning is an integral part additional resources and opportunities
of our business. It happens at every level specifically developed to help them gain
Our process for investing in professional development is designed to help
of our company, not just at the executive the knowledge, skills, and experience
employee-partners enhance performance, achieve goals, and progress in their"
2021-ESG-Report-cintas.txt,"or investing in professional development is designed to help
of our company, not just at the executive the knowledge, skills, and experience
employee-partners enhance performance, achieve goals, and progress in their
level. It’s engrained in our annual necessary to continue their accelerated
career. It’s an ongoing process rather than a once-a-year event, with all steps
performance review process, embedded career path at Cintas.
continuously linked together.
in our culture, and is a key part of
Employee-partners also maintain"
2021-ESG-Report-cintas.txt,"on about
D Dis ec vu es los pB mus ein ne t s Gs o a an lsd
Sco un ccti en su si it oy
n
s t pra lat ne ng iy n.
g at Cintas is t ah ne di r h b oa nc ok rg sr , o inu tn ed re, se td su , sc ka it li lo s,n a, na dw a or td hs e r
designed to provide a human capital professional preferences, including their
ess road map for the company for the next willingness to relocate for a new role.
ce
an oc S
u
three to five years. The process provides This gives managers and supervisors
orm
w
Pr c c e
s
our company with a detailed analysis of deeper insight into employee-partners"
2021-ESG-Report-cintas.txt,"ro ssg iore ns s e Inx e ac du dt ii tv ioe ns a tolik ie d.
e ntifying leadership
C CE oO
rp
oa rn ad
t
eo Gth oe vr eo rf nf aic ne cr es i Gs ua iv da eil la inb ele
s.
in our
potential within our organization, it also
help us detect potential knowledge or
38 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRAINING AND DEVELOPMENT
Ongoing training and development are at Cintas. Common required courses Management Trainee Program based, and that the mentee’s needs are
major components of a Cintas employee- include Corporate Culture and Engaging Many of our top leaders began their the focus. We feel strongly that when a"
2021-ESG-Report-cintas.txt,"ision-specific
also a graduate of the program.
mentorship relationships. We work to
FORMAL TRAINING learning opportunities as new products, MTs at Cintas are typically hired upon best position mentors to guide their
AND CERTIFICATIONS initiatives, and campaigns are rolled graduation from college. Our robust mentees on their current career path and
out. Its centralized learning portal campus recruiting program identifies help them obtain the necessary skills,
Frontline partners receive continual
gives employee-partners access to potential MT candidates each year, and knowledge, and insight to take the next"
2021-ESG-Report-cintas.txt,"ledge, and insight to take the next
training in a variety of areas specific
to their positions, including safety
the information in a consolidated and the program helps create a sustainable steps in their careers.
and process certifications and
convenient manner, and also allows them leadership pipeline for the company.
Mentoring is a key component of our
professional certifications.
to learn more about our business.
MTs gain the skills, tools, and knowledge succession planning and has provided
New managers, or employee-partners they need to succeed at Cintas tremendous returns in helping develop"
2021-ESG-Report-cintas.txt,"succeed at Cintas tremendous returns in helping develop
Cintas’ Learning and Development (L&D)
who have demonstrated leadership or through on-the-job training, with an our current and future leaders. We
Department offers a broad range of
management potential, can also enroll intensive hands-on rotation through believe each unique mentor–mentee
trainings, seminars, and learning modules
in training courses that help them many areas of our company, including relationship should have a specific and
to help employee-partners learn or"
2021-ESG-Report-cintas.txt,"f
management potential, can also enroll intensive hands-on rotation through believe each unique mentor–mentee
trainings, seminars, and learning modules
in training courses that help them many areas of our company, including relationship should have a specific and
to help employee-partners learn or
effectively manage their locations. In Sales, Service, Production, Operations, defined purpose, as well as objectives,
further develop skills and enhance their
knowledge. These are generally taught by
addition, these employee-partners and Administration. goals, and outcomes."
2021-ESG-Report-cintas.txt,"l as objectives,
further develop skills and enhance their
knowledge. These are generally taught by
addition, these employee-partners and Administration. goals, and outcomes.
can also participate in division-specific
trained Cintas staff, and include immersive, At the end of the two-year program, We also offer formal training to our new
bootcamps to gain the knowledge they
multiple-day, in-person sessions, full-day Cintas works with trainees to place them mentors so they enter the program with a
need to lead other employee-partners"
2021-ESG-Report-cintas.txt,"program, We also offer formal training to our new
bootcamps to gain the knowledge they
multiple-day, in-person sessions, full-day Cintas works with trainees to place them mentors so they enter the program with a
need to lead other employee-partners
or half-day seminars, live virtual classes, in full-time positions, which usually strong understanding of the process, its
or online training-on-demand (TOD)
to success.
include field sales positions and then application, and when to recognize that a
modules. These sessions bring employee- management roles. This progression of mentor–mentee relationship has come to"
2021-ESG-Report-cintas.txt,"time positions, which usually strong understanding of the process, its
or online training-on-demand (TOD)
to success.
include field sales positions and then application, and when to recognize that a
modules. These sessions bring employee- management roles. This progression of mentor–mentee relationship has come to
partners together from across the United OTHER DEVELOPMENT responsibilities helps accelerate their its natural end.
States and Canada. Most of the multiple- OPPORTUNITIES career path.
Employee-partners often begin their"
2021-ESG-Report-cintas.txt,"MENT responsibilities helps accelerate their its natural end.
States and Canada. Most of the multiple- OPPORTUNITIES career path.
Employee-partners often begin their
day classes have historically been taught in
Outside of formal training and Mentoring careers at Cintas with a mentor, and then
person, but COVID-19 forced much of the
certifications, we also offer and facilitate Cintas is an advocate of professional change mentors as they develop in their
L&D catalog to move online, either as live
other opportunities for employee- mentoring; it’s a universal element of our roles, change positions, or advance in"
2021-ESG-Report-cintas.txt,"and Mentoring careers at Cintas with a mentor, and then
person, but COVID-19 forced much of the
certifications, we also offer and facilitate Cintas is an advocate of professional change mentors as they develop in their
L&D catalog to move online, either as live
other opportunities for employee- mentoring; it’s a universal element of our roles, change positions, or advance in
virtual classes or as TODs.
partners to gain further insight, development strategy. leadership. The cycle continues when
Management-track employee-partners experience, and support on the job. they become mentors themselves and"
2021-ESG-Report-cintas.txt,"Cintas is an advocate of professional change mentors as they develop in their
L&D catalog to move online, either as live
other opportunities for employee- mentoring; it’s a universal element of our roles, change positions, or advance in
virtual classes or as TODs.
partners to gain further insight, development strategy. leadership. The cycle continues when
Management-track employee-partners experience, and support on the job. they become mentors themselves and
Our mentorship philosophy maintains
are required to take additional class- These include our MT program, our guide newer employee-partners starting"
2021-ESG-Report-cintas.txt,"tains
are required to take additional class- These include our MT program, our guide newer employee-partners starting
that mentor–mentee relationships
based training sessions so they are mentor program, our PBRGs, and our
should be professional and situationally
their Cintas careers.
better positioned to lead and manage Executive Leadership Program.
39 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Partner Business Resource Groups to them. It’s a two-way dialogue that
Our employee-partner affinity groups we believe benefits everyone, including"
2021-ESG-Report-cintas.txt,"essional and situationally
their Cintas careers.
better positioned to lead and manage Executive Leadership Program.
39 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Partner Business Resource Groups to them. It’s a two-way dialogue that
Our employee-partner affinity groups we believe benefits everyone, including
are an important element in our overall our company.
human resources and human capital
Our PBRGs play a pivotal role in
strategy. We have four of these PBRGs.
developing employee-partners at various"
2021-ESG-Report-cintas.txt,"n capital
Our PBRGs play a pivotal role in
strategy. We have four of these PBRGs.
developing employee-partners at various
These distinct groups align with our stages of their careers and connect
business objectives and help secure partners from similar backgrounds in
our continued competitiveness, while a supportive environment. While our
allowing the breadth of experience, skill mentor program is built on skill- and
sets, perspectives, and talents of our job-based criteria, our PBRGs are based
diverse employee-partners to truly shine. on common backgrounds and shared"
2021-ESG-Report-cintas.txt,"our job-based criteria, our PBRGs are based
diverse employee-partners to truly shine. on common backgrounds and shared
experiences. This is a foundational
PBRGs provide members with outlets to
function of our PBRGs, and we believe
lend their voices and perspectives, and a
they have been very successful in giving
space where they can share experiences
a louder voice, leadership opportunities,
and support one another. They also
and access to management to many of
provide a platform for management
to hear from our employee-partners"
2021-ESG-Report-cintas.txt,"al
PBRGs provide members with outlets to
function of our PBRGs, and we believe
lend their voices and perspectives, and a
they have been very successful in giving
space where they can share experiences
a louder voice, leadership opportunities,
and support one another. They also
and access to management to many of
provide a platform for management
to hear from our employee-partners
our people.
directly about issues that matter most
Executive Leadership Program and increased participation to 35-40
We launched our Executive Leadership employee-partners per year. Overall,"
2021-ESG-Report-cintas.txt,"oices and perspectives, and a
they have been very successful in giving
space where they can share experiences
a louder voice, leadership opportunities,
and support one another. They also
and access to management to many of
provide a platform for management
to hear from our employee-partners
our people.
directly about issues that matter most
Executive Leadership Program and increased participation to 35-40
We launched our Executive Leadership employee-partners per year. Overall,
THE CINTAS PBRGs
Program (ELP) in 2015 to help identify 135 employee-partners have graduated"
2021-ESG-Report-cintas.txt,"eadership opportunities,
and support one another. They also
and access to management to many of
provide a platform for management
to hear from our employee-partners
our people.
directly about issues that matter most
Executive Leadership Program and increased participation to 35-40
We launched our Executive Leadership employee-partners per year. Overall,
THE CINTAS PBRGs
Program (ELP) in 2015 to help identify 135 employee-partners have graduated
and increase the pool of diverse from the program.
employee-partners who were best"
2021-ESG-Report-cintas.txt,"erse from the program.
employee-partners who were best
The ELP includes regular sessions with
qualified to fill our mid-management
company leaders to discuss career paths
positions. This includes corporate
and trajectories, leadership philosophies,
Women Adding Value Everywhere Together Offering Diverse director-level department heads and
and general business strategies. The
Target membership: Female Opportunities & Solutions general manager roles at our locations
L&D Organizational Development
employee-partners Target membership: Latinx/Hispanic across the organization."
2021-ESG-Report-cintas.txt,"ur mid-management
company leaders to discuss career paths
positions. This includes corporate
and trajectories, leadership philosophies,
Women Adding Value Everywhere Together Offering Diverse director-level department heads and
and general business strategies. The
Target membership: Female Opportunities & Solutions general manager roles at our locations
L&D Organizational Development
employee-partners Target membership: Latinx/Hispanic across the organization.
Team, in coordination with company
employee-partners"
2021-ESG-Report-cintas.txt,"op leaders and high-performance team building.
at a key stage of their management Each participant works directly with an
career. Participants are nominated by executive mentor during the program
Relevant, Inspiring Support for Veterans-Military Accelerating
company leaders. Initially, one ELP for additional personal one-on-one
Engagement & Empowerment Leadership Opportunities and
Target membership: Black/African Resources class was conducted annually, exposing advice. Program participants also
American employee-partners Target membership: Military-affiliated about 25 employee-partners a year to undertake a 360° assessment and receive"
2021-ESG-Report-cintas.txt,"are nominated by executive mentor during the program
Relevant, Inspiring Support for Veterans-Military Accelerating
company leaders. Initially, one ELP for additional personal one-on-one
Engagement & Empowerment Leadership Opportunities and
Target membership: Black/African Resources class was conducted annually, exposing advice. Program participants also
American employee-partners Target membership: Military-affiliated about 25 employee-partners a year to undertake a 360° assessment and receive
employee-partners the advanced curriculum. In 2021, we personalized feedback as part of their"
2021-ESG-Report-cintas.txt,"s and
Target membership: Black/African Resources class was conducted annually, exposing advice. Program participants also
American employee-partners Target membership: Military-affiliated about 25 employee-partners a year to undertake a 360° assessment and receive
employee-partners the advanced curriculum. In 2021, we personalized feedback as part of their
began running two concurrent sessions ongoing development plan.
40 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER ENGAGEMENT"
2021-ESG-Report-cintas.txt,"ck/African Resources class was conducted annually, exposing advice. Program participants also
American employee-partners Target membership: Military-affiliated about 25 employee-partners a year to undertake a 360° assessment and receive
employee-partners the advanced curriculum. In 2021, we personalized feedback as part of their
began running two concurrent sessions ongoing development plan.
40 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER ENGAGEMENT
We believe that our people reach their their specific worksites. The anonymous EMPLOYEE-PARTNER ENGAGEMENT SURVEY RESULTS"
2021-ESG-Report-cintas.txt,"ongoing development plan.
40 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER ENGAGEMENT
We believe that our people reach their their specific worksites. The anonymous EMPLOYEE-PARTNER ENGAGEMENT SURVEY RESULTS
full potential in an inclusive environment, 50-question survey takes approximately
and that they do their best work when 20-30 minutes to complete, and also
METRIC 2015 2019
they are highly engaged with the provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%"
2021-ESG-Report-cintas.txt,"NANCE APPENDIX
EMPLOYEE-PARTNER ENGAGEMENT
We believe that our people reach their their specific worksites. The anonymous EMPLOYEE-PARTNER ENGAGEMENT SURVEY RESULTS
full potential in an inclusive environment, 50-question survey takes approximately
and that they do their best work when 20-30 minutes to complete, and also
METRIC 2015 2019
they are highly engaged with the provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%
partners. As a service provider, we’ve Our employee-partner engagement Response Rate 82% 87%"
2021-ESG-Report-cintas.txt,"nd that they do their best work when 20-30 minutes to complete, and also
METRIC 2015 2019
they are highly engaged with the provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%
partners. As a service provider, we’ve Our employee-partner engagement Response Rate 82% 87%
seen the benefit of an engaged and
surveys have four key learning goals:
fulfilled workforce, and what it has meant
CINTAS INDEX VS. HIGH-PERFORMANCE NORMS
for our customers. • Identify our employee-partners’"
2021-ESG-Report-cintas.txt,"provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%
partners. As a service provider, we’ve Our employee-partner engagement Response Rate 82% 87%
seen the benefit of an engaged and
surveys have four key learning goals:
fulfilled workforce, and what it has meant
CINTAS INDEX VS. HIGH-PERFORMANCE NORMS
for our customers. • Identify our employee-partners’
current levels of engagement
Further, academic and industry research
• Understand our employee-partners’ CATEGORY 2015 2019 CHANGE"
2021-ESG-Report-cintas.txt,"er, we’ve Our employee-partner engagement Response Rate 82% 87%
seen the benefit of an engaged and
surveys have four key learning goals:
fulfilled workforce, and what it has meant
CINTAS INDEX VS. HIGH-PERFORMANCE NORMS
for our customers. • Identify our employee-partners’
current levels of engagement
Further, academic and industry research
• Understand our employee-partners’ CATEGORY 2015 2019 CHANGE
has proven the direct connection between
perceptions of important elements of
Leadership 0 5 +5
employee loyalty and engagement on"
2021-ESG-Report-cintas.txt,"ers’ CATEGORY 2015 2019 CHANGE
has proven the direct connection between
perceptions of important elements of
Leadership 0 5 +5
employee loyalty and engagement on
our culture
crucial company performance indicators Safety n/a 4 +4
• Establish a new baseline for
such as customer loyalty, return on
measurement in our areas of strength Performance Management -1 3 +4
investment, and financial performance.
and development Retention n/a 4 +4
• Determine how we might impact
Sustainable Engagement 0 3 +3
EMPLOYEE-PARTNER SURVEYS future success in transformational ways"
2021-ESG-Report-cintas.txt,"customer loyalty, return on
measurement in our areas of strength Performance Management -1 3 +4
investment, and financial performance.
and development Retention n/a 4 +4
• Determine how we might impact
Sustainable Engagement 0 3 +3
EMPLOYEE-PARTNER SURVEYS future success in transformational ways
Empowerment -1 2 +3
We monitor the general engagement In our latest engagement survey, 87%
Development & Training -2 0 +2
of our workforce to stay abreast of their of our workforce opted to participate
current attitudes and opinions, and then and provide responses. Our employee- Manager Effectiveness 1 2 +1"
2021-ESG-Report-cintas.txt,"ne how we might impact
Sustainable Engagement 0 3 +3
EMPLOYEE-PARTNER SURVEYS future success in transformational ways
Empowerment -1 2 +3
We monitor the general engagement In our latest engagement survey, 87%
Development & Training -2 0 +2
of our workforce to stay abreast of their of our workforce opted to participate
current attitudes and opinions, and then and provide responses. Our employee- Manager Effectiveness 1 2 +1
use the results to implement changes partners’ enthusiasm to participate
that will drive deeper employee- indexed Cintas above the “high"
2021-ESG-Report-cintas.txt,"RTNER SURVEYS future success in transformational ways
Empowerment -1 2 +3
We monitor the general engagement In our latest engagement survey, 87%
Development & Training -2 0 +2
of our workforce to stay abreast of their of our workforce opted to participate
current attitudes and opinions, and then and provide responses. Our employee- Manager Effectiveness 1 2 +1
use the results to implement changes partners’ enthusiasm to participate
that will drive deeper employee- indexed Cintas above the “high
Sample response from 2019 Employee Engagement Survey:"
2021-ESG-Report-cintas.txt,"participate
current attitudes and opinions, and then and provide responses. Our employee- Manager Effectiveness 1 2 +1
use the results to implement changes partners’ enthusiasm to participate
that will drive deeper employee- indexed Cintas above the “high
Sample response from 2019 Employee Engagement Survey:
partner engagement. performance norm” and marked a 6% rise
To accomplish this, we conducted
in participation from the previous survey. “ Everyone I work with is amazing and make the Cintas
company-wide employee-partner Our overall engagement score in 2019 culture awesome. My leaders and other partners all are ready"
2021-ESG-Report-cintas.txt,"engagement score in 2019 culture awesome. My leaders and other partners all are ready
engagement surveys in partnership was 90%. Category-specific ratings
to help whenever I have questions. I have yet to come across a
with Willis Towers Watson in 2015 and underpinned our overall commitment
2019. Our survey includes corporate- to our people, including Empowerment,
partner, supervisor or manager that was not willing to help
and location-based questions to help Sustainable Engagement, Safety, and
gauge our employee-partners’ feelings Diversity & Inclusion. me with any situation I come across.”"
2021-ESG-Report-cintas.txt,"tion I come across.”
about both the company as a whole and
41 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WHAT WE’VE LEARNED After each survey was completed, Willis
Towers Watson analyzed the data and
Several individual themes emerged from
our management reviewed the results.
the responses.
Their evaluation was done with lenses
• Safety – We foster a safe workplace. on both the corporate and location
Our leaders address unsafe levels, with action plans developed to
conditions. Our employee-partners address opportunities identified by the"
2021-ESG-Report-cintas.txt,"ged from
our management reviewed the results.
the responses.
Their evaluation was done with lenses
• Safety – We foster a safe workplace. on both the corporate and location
Our leaders address unsafe levels, with action plans developed to
conditions. Our employee-partners address opportunities identified by the
are comfortable raising concerns. survey results.
• Leadership – There is upward
Cintas’ index ranking against High
communication. They are interested
Performance Norms improved in eight
in our employee-partners’ well-being."
2021-ESG-Report-cintas.txt,"sults.
• Leadership – There is upward
Cintas’ index ranking against High
communication. They are interested
Performance Norms improved in eight
in our employee-partners’ well-being.
categories from the 2015 survey to the
They make decisions consistent with
our corporate culture. They present a
2019 survey.
clear vision. The company will conduct its next
• Manager Effectiveness – Managers engagement survey in 2022, and going
provide recognition and feedback. They forward, we expect to administer
keep our employee-partners informed. engagement surveys every two years."
2021-ESG-Report-cintas.txt,"019 survey.
clear vision. The company will conduct its next
• Manager Effectiveness – Managers engagement survey in 2022, and going
provide recognition and feedback. They forward, we expect to administer
keep our employee-partners informed. engagement surveys every two years.
They are available to their staff.
• Empowerment – We establish clear
lines of sight and job roles.
• Diversity & Inclusion – We pursue
a diverse workplace with support
for diversity.
• Benefits – Our benefits package fits
our employee-partners’ needs."
2021-ESG-Report-cintas.txt,"company will conduct its next
• Manager Effectiveness – Managers engagement survey in 2022, and going
provide recognition and feedback. They forward, we expect to administer
keep our employee-partners informed. engagement surveys every two years.
They are available to their staff.
• Empowerment – We establish clear
lines of sight and job roles.
• Diversity & Inclusion – We pursue
a diverse workplace with support
for diversity.
• Benefits – Our benefits package fits
our employee-partners’ needs.
Sample response from 2019 Employee Engagement Survey:"
2021-ESG-Report-cintas.txt,"ts package fits
our employee-partners’ needs.
Sample response from 2019 Employee Engagement Survey:
“ Cintas is a wonderful company and I am proud to be a
Cintas partner! As long as we continue to keep the focus
on our partners, customers, and safety, working at Cintas
can only get better.”
42 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LABOR RELATIONS
Cintas recognizes and respects the Our objection to this campaign was LOCATIONS IDENTIFIED AS RISKS MINIMUM NOTICE
principles of freedom of association not about blocking our employee-"
2021-ESG-Report-cintas.txt,"be a
Cintas partner! As long as we continue to keep the focus
on our partners, customers, and safety, working at Cintas
can only get better.”
42 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LABOR RELATIONS
Cintas recognizes and respects the Our objection to this campaign was LOCATIONS IDENTIFIED AS RISKS MINIMUM NOTICE
principles of freedom of association not about blocking our employee-
Cintas has not identified any locations In cases where operational changes are
and our employee-partners’ right to partners’ efforts to unionize. It was"
2021-ESG-Report-cintas.txt,"LABOR RELATIONS
Cintas recognizes and respects the Our objection to this campaign was LOCATIONS IDENTIFIED AS RISKS MINIMUM NOTICE
principles of freedom of association not about blocking our employee-
Cintas has not identified any locations In cases where operational changes are
and our employee-partners’ right to partners’ efforts to unionize. It was
under our operation where our set to occur, we make every effort to
collective bargaining in accordance with that this particular campaign wanted
employee-partners’ right to freedom of provide as much notice as possible to our"
2021-ESG-Report-cintas.txt,"cations In cases where operational changes are
and our employee-partners’ right to partners’ efforts to unionize. It was
under our operation where our set to occur, we make every effort to
collective bargaining in accordance with that this particular campaign wanted
employee-partners’ right to freedom of provide as much notice as possible to our
applicable national laws. We strive to Cintas management to take away our
association and collective bargaining affected operations, given the scope of
adhere to U.S. National Labor Relations employee-partners’ right to vote on the"
2021-ESG-Report-cintas.txt,"adhere to U.S. National Labor Relations employee-partners’ right to vote on the
may be at risk. the imminent changes.
Board protocols to support their rights to issue and instead wanted management
exercise their freedom of association and to make that decision for our people, We are unable to report on any Global In cases where a Worker Adjustment and
collective bargaining. on their behalf. At the time, we defined Supply Chain Supplier operations that Retraining Notification (WARN) is required,
our position regarding our employee- could be at risk for such issues, but we provide at least the minimum required"
2021-ESG-Report-cintas.txt,".
Board protocols to support their rights to issue and instead wanted management
exercise their freedom of association and to make that decision for our people, We are unable to report on any Global In cases where a Worker Adjustment and
collective bargaining. on their behalf. At the time, we defined Supply Chain Supplier operations that Retraining Notification (WARN) is required,
our position regarding our employee- could be at risk for such issues, but we provide at least the minimum required
Cintas recognizes employee-partners’"
2021-ESG-Report-cintas.txt,") affected.
rights to form or join unions, including
“The right to say yes and the freedom to suppliers to respect workers’ rights to
the right to a government-supervised All of our U.S.-based collective bargaining
say no.” We continue to maintain that any collective bargaining and their freedom
election. We encourage them to make agreements include standard 60-day
informed decisions on the matter.
decision to unionize can only be made by of association.
notification periods as required by law.
our employee-partners and that Cintas"
2021-ESG-Report-cintas.txt,"ons, including
“The right to say yes and the freedom to suppliers to respect workers’ rights to
the right to a government-supervised All of our U.S.-based collective bargaining
say no.” We continue to maintain that any collective bargaining and their freedom
election. We encourage them to make agreements include standard 60-day
informed decisions on the matter.
decision to unionize can only be made by of association.
notification periods as required by law.
our employee-partners and that Cintas
We believe our employee-partners’ management should not take that away."
2021-ESG-Report-cintas.txt,"government-supervised All of our U.S.-based collective bargaining
say no.” We continue to maintain that any collective bargaining and their freedom
election. We encourage them to make agreements include standard 60-day
informed decisions on the matter.
decision to unionize can only be made by of association.
notification periods as required by law.
our employee-partners and that Cintas
We believe our employee-partners’ management should not take that away.
decisions about association should be
In areas where our employee-partners"
2021-ESG-Report-cintas.txt,"ot take that away.
decisions about association should be
In areas where our employee-partners
made consciously, deliberately, and in
have voted for union representation,
private. Their decisions should be free
we satisfy our bargaining obligations as
from the possibility of undue outside
influence or coercion.
defined by the law.
Between 2003 and 2011, we withstood a
national unionization campaign during
CURRENT ASSOCIATIONS
which a coordinated multiple-union As of September 1, 2021, a total of
effort put sustained pressure on Cintas 935 of our employee-partners were"
2021-ESG-Report-cintas.txt,"ed for union representation,
private. Their decisions should be free
we satisfy our bargaining obligations as
from the possibility of undue outside
influence or coercion.
defined by the law.
Between 2003 and 2011, we withstood a
national unionization campaign during
CURRENT ASSOCIATIONS
which a coordinated multiple-union As of September 1, 2021, a total of
effort put sustained pressure on Cintas 935 of our employee-partners were
to accept union representation on covered by collective bargaining
behalf of every employee-partner at all agreements, representing approximately"
2021-ESG-Report-cintas.txt,"nce or coercion.
defined by the law.
Between 2003 and 2011, we withstood a
national unionization campaign during
CURRENT ASSOCIATIONS
which a coordinated multiple-union As of September 1, 2021, a total of
effort put sustained pressure on Cintas 935 of our employee-partners were
to accept union representation on covered by collective bargaining
behalf of every employee-partner at all agreements, representing approximately
of our operating locations throughout 2.4% of our workforce. In the United
the United States. We did not then – States, 337 employee-partners were"
2021-ESG-Report-cintas.txt,"ained pressure on Cintas 935 of our employee-partners were
to accept union representation on covered by collective bargaining
behalf of every employee-partner at all agreements, representing approximately
of our operating locations throughout 2.4% of our workforce. In the United
the United States. We did not then – States, 337 employee-partners were
nor do we now – believe a unilateral represented under 12 agreements and
decision for representation to be in in Canada, 598 were represented under
the best interest of our employee- seven agreements."
2021-ESG-Report-cintas.txt,"eve a unilateral represented under 12 agreements and
decision for representation to be in in Canada, 598 were represented under
the best interest of our employee- seven agreements.
partners, and we defended their rights
to a federally supervised election and
collective bargaining.
43 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THE RIGHT TO SAY YES, AND keep us ahead of others in our industry, We promote world-class safety practices the growth and development of our
THE FREEDOM TO SAY NO and provide them with our company’s throughout our organization, and employee-partners, and our strong"
2021-ESG-Report-cintas.txt,"ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
THE RIGHT TO SAY YES, AND keep us ahead of others in our industry, We promote world-class safety practices the growth and development of our
THE FREEDOM TO SAY NO and provide them with our company’s throughout our organization, and employee-partners, and our strong
In almost all instances, when our
competitive compensation (see pg. 37 we’ve been repeatedly recognized preference is to promote from within.
for more information). and honored for our processes
employee-partners have the opportunity We firmly believe that all of these"
2021-ESG-Report-cintas.txt,"We promote world-class safety practices the growth and development of our
THE FREEDOM TO SAY NO and provide them with our company’s throughout our organization, and employee-partners, and our strong
In almost all instances, when our
competitive compensation (see pg. 37 we’ve been repeatedly recognized preference is to promote from within.
for more information). and honored for our processes
employee-partners have the opportunity We firmly believe that all of these
and commitment to a safe work
to cast their vote for association in In addition, every employee-partner reasons – and more – have provided a"
2021-ESG-Report-cintas.txt,"edly recognized preference is to promote from within.
for more information). and honored for our processes
employee-partners have the opportunity We firmly believe that all of these
and commitment to a safe work
to cast their vote for association in In addition, every employee-partner reasons – and more – have provided a
environment – most notably with
a private, government-supervised who has worked at least 1,000 hours at strong, open environment where all of
the Occupational Safety and Health
election, they have voted against union Cintas is eligible to become a company our employee-partners feel valued and"
2021-ESG-Report-cintas.txt,"firmly believe that all of these
and commitment to a safe work
to cast their vote for association in In addition, every employee-partner reasons – and more – have provided a
environment – most notably with
a private, government-supervised who has worked at least 1,000 hours at strong, open environment where all of
the Occupational Safety and Health
election, they have voted against union Cintas is eligible to become a company our employee-partners feel valued and
Administration (OSHA)’s highest
representation. Our employee-partners shareholder, with shares provided supported. And we believe this is why,"
2021-ESG-Report-cintas.txt,"ecome a company our employee-partners feel valued and
Administration (OSHA)’s highest
representation. Our employee-partners shareholder, with shares provided supported. And we believe this is why,
recognition for workplace safety: the
who are currently unionized joined through our ESOP. This goes back to our when they have been presented with
while working for a company that we corporate culture and calling each other
Voluntary Protection Program (VPP).
alternative options, they have chosen not
later acquired. “partners”: we all work together and play Our employee-partners have to vote for association."
2021-ESG-Report-cintas.txt,"th
while working for a company that we corporate culture and calling each other
Voluntary Protection Program (VPP).
alternative options, they have chosen not
later acquired. “partners”: we all work together and play Our employee-partners have to vote for association.
vital roles in our company’s success, so opportunities to expand their career
We believe our strong corporate culture
we collectively enjoy ownership in the paths. We facilitate training and
is fundamental to their decision. All of
our employee-partners are important"
2021-ESG-Report-cintas.txt,"ociation.
vital roles in our company’s success, so opportunities to expand their career
We believe our strong corporate culture
we collectively enjoy ownership in the paths. We facilitate training and
is fundamental to their decision. All of
our employee-partners are important
company that we have helped build. certification as roles require, we prioritize
and vital to our success. We value their
opinions and feedback, no matter their
role in the company.
We believe the best solutions come from
our front lines – from those employee-"
2021-ESG-Report-cintas.txt,"r employee-partners are important
company that we have helped build. certification as roles require, we prioritize
and vital to our success. We value their
opinions and feedback, no matter their
role in the company.
We believe the best solutions come from
our front lines – from those employee-
partners keeping our processing plants
moving and building relationships with
our customers – because they know the
job the best.
Our management philosophy is based
on managers and supervisors interacting
with their employee-partners every day,"
2021-ESG-Report-cintas.txt,"rom those employee-
partners keeping our processing plants
moving and building relationships with
our customers – because they know the
job the best.
Our management philosophy is based
on managers and supervisors interacting
with their employee-partners every day,
walking around and talking with them,
and maintaining an “open door” to
their offices. We believe these ongoing
exchanges facilitate an environment of
open communication and help create
strong relationships built on trust
and respect.
Because we value our employee-partners"
2021-ESG-Report-cintas.txt,"United use uncompensated prison workers, our Global Supply Chain Suppliers to
classes are treated equally. Nations Declaration of Human Rights, indentured servitude, or enslaved or respect their workers’ rights to organize
the United Nations Guiding Principles on trafficked labor. Further, it prohibits our and collective bargaining (see Labor
This responsibility doesn’t just fall on
Business and Human Rights (UNGP), the Global Supply Chain Suppliers from Relations on pg. 43). Workers must have
Cintas and its employee-partners; it is also"
2021-ESG-Report-cintas.txt,"decision
the responsibility of our external suppliers,
contractors, and business partners. While
and other notable human rights accords. their employment for any period of time on the matter, have the right to free, fair,
cultural and societal differences exist
against their will. and government-supervised elections,
Hours and Wages
and not be subject to representation that
throughout the world, our Vendor Code of We require that workers must be paid at Our policies also prohibit discrimination
Conduct requires our Global Supply Chain least the legal minimum wage. While we or harassment of any employee-partner"
2021-ESG-Report-cintas.txt,"personal status or
human rights and fair labor practices. necessary to meet production demands, human rights protected by law or statute.
This policy extends to our vendors.
45 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SAFETY AND HEALTH
SPOTLIGHT: VPPACHIEVEMENT
We’re immensely proud of our reputation As a result, we have lowered our incident
for our world-class management of – rates dramatically, working hand in hand Our commitment to OSHA’s VPP TOP 10 VPP STAR
and innovation in – employee health with our employee-partners to create a Program has set a new standard for SITE CERTIFICATIONS"
2021-ESG-Report-cintas.txt,"nies. A total of 117 Cintas
embedded deep within our culture and workers in our safety journey has proven sites were recognized by OSHA as
VPP
is also enumerated in our ambitious to be vital to our success. VPP Star certified as of August 31,
RANK COMPANY SITES
safety vision. 2021, a total that outpaces any other
1 Cintas 117
American company by a three-to-
Our safety vision includes three OCCUPATIONAL HEALTH AND one margin. 2 GE 39
components: for every Cintas location SAFETY MANAGEMENT SYSTEM
to be injury-free; for every employee- We believe in the program and 3 Raytheon 38"
2021-ESG-Report-cintas.txt,"agement system is a multiple-
improving safety; and for Cintas to be tiered program to identify hazards companies that prioritize the safety Milliken 32
widely recognized as one of the world’s and health of their employees.
and safety concerns; implement safer Covanta 32
leaders in safety and health performance.
processes and improvements; and We’re honored to dedicate such time
7 NuStar 31
We’ve been incredibly successful in monitor our organization for safety- and resources to pursue VPP Star
keeping our employee-partners safe enhancement opportunities. The system certifications across our organization, Monsanto 31"
2021-ESG-Report-cintas.txt,"tize the safety Milliken 32
widely recognized as one of the world’s and health of their employees.
and safety concerns; implement safer Covanta 32
leaders in safety and health performance.
processes and improvements; and We’re honored to dedicate such time
7 NuStar 31
We’ve been incredibly successful in monitor our organization for safety- and resources to pursue VPP Star
keeping our employee-partners safe enhancement opportunities. The system certifications across our organization, Monsanto 31
and healthy, in large part due to our applies to Cintas employee-partners, and also maintain our certifications 9 Phillips 30"
2021-ESG-Report-cintas.txt,"h time
7 NuStar 31
We’ve been incredibly successful in monitor our organization for safety- and resources to pursue VPP Star
keeping our employee-partners safe enhancement opportunities. The system certifications across our organization, Monsanto 31
and healthy, in large part due to our applies to Cintas employee-partners, and also maintain our certifications 9 Phillips 30
organizational input and buy-in from contractors, vendors, and visitors at our once we achieve them. 10 Sherwin Williams 29
every employee-partner in creating facilities, as well as when traveling to"
2021-ESG-Report-cintas.txt,"has resulted in our industry- customer locations. 2
leading low incident rates, as well
To continue to promote world-class
as recognition for our initiatives and
health and safety standards, we have
track record.
layered OSHA’s VPP into our health 3
2
Safety has always been important to and safety management system. This 4
2 2 4
us – it’s part of our desire to run our heightened level of planning and 2 3 5 2 3 3 4
company ethically and to support the safeguarding encourages even greater 4 5
5 3
work our employee-partners do on standards of protective workplace safety 2 2"
2021-ESG-Report-cintas.txt,"ormance.
their respective industries. The numbers represent the number of Cintas’ 2
VPP-certified locations in each locale.
46 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
The VPP certification process is rigorous. Field locations have a designated needs. Through our partnerships, we To ensure we continually focus on
To achieve certification, businesses Safety and Improvement Committee offer enhanced driver training, on-the- improving our safety journey, each of our
must demonstrate that management (SIC), which includes trained employee- road evaluations, and driver drills to business divisions holds regular safety"
2021-ESG-Report-cintas.txt,"with our S&H Team.
and proactively – to prevent workplace departments, as well as the local To reinforce our safe driving policies,
accidents. They must display a joint management team. our executive leaders deliver annual
commitment to hazard prevention and reminders about safe driving practices
OCCUPATIONAL HEALTH INITIATIVES
control, perform ongoing analysis, as we strive to be recognized as a top In addition to job-specific training,
and implement effective training
TRAINING AND DEVELOPMENT
performer by the Network of Employers our employee-partners also receive"
2021-ESG-Report-cintas.txt,"well as the local To reinforce our safe driving policies,
accidents. They must display a joint management team. our executive leaders deliver annual
commitment to hazard prevention and reminders about safe driving practices
OCCUPATIONAL HEALTH INITIATIVES
control, perform ongoing analysis, as we strive to be recognized as a top In addition to job-specific training,
and implement effective training
TRAINING AND DEVELOPMENT
performer by the Network of Employers our employee-partners also receive
programs. Every location that earns VPP Employee-partners are trained in more for Traffic Safety (NETS). ongoing education in a variety of health"
2021-ESG-Report-cintas.txt,"form ongoing analysis, as we strive to be recognized as a top In addition to job-specific training,
and implement effective training
TRAINING AND DEVELOPMENT
performer by the Network of Employers our employee-partners also receive
programs. Every location that earns VPP Employee-partners are trained in more for Traffic Safety (NETS). ongoing education in a variety of health
certification must provide OSHA with than 50 safety and health topics each year, and wellness topics, including nutrition,
Our frontline employee-partners are"
2021-ESG-Report-cintas.txt,"treme
not the only ones who undergo rigorous
safety and health process improvements. of training – offered live in-person or temperatures, and hydration. Cintas
safety and health training. Our Safety
These locations must also undergo a online, or available on-demand – with locations partner with local third-party
and Health (S&H) Team managers are
rigorous on-site audit by OSHA and specific trainings assigned by job and medical and wellness providers to enhance
required to attend OSHA’s 10-hour
third-party assessors every three to five work scope. They are then evaluated by our employee-partners’ knowledge and"
2021-ESG-Report-cintas.txt,"d VPP Star proven safety principles that is featured
conducted by locally based corporate or programs and requirements.
certification27 – three times more than in the Harvard T.H. Chan School of Public
third-party instructors, depending on the
any other U.S. company.
topic. Some select training sessions – such
Health safety and health curriculum. Our award-winning ergonomics
team, recognized by the International
as electrical and driver safety – are taught
Ergonomics Association, helps lead the
EMPLOYEE-PARTNERS CENTRAL TO by external experts. ONGOING EVALUATION"
2021-ESG-Report-cintas.txt,"s
team, recognized by the International
as electrical and driver safety – are taught
Ergonomics Association, helps lead the
EMPLOYEE-PARTNERS CENTRAL TO by external experts. ONGOING EVALUATION
way in reducing occupational injuries like
IDENTIFYING CONCERNS
Most of our training curriculum has been
AND MEASUREMENT
strains and sprains by identifying and
A key element of our safety and health designed in cooperation with industry Safety and health are full-year working to reduce hazards. Ergonomics
success is our employee-partners’ experts and focuses on situations commitments at Cintas, and every level evaluations and training are available to"
2021-ESG-Report-cintas.txt,"TO by external experts. ONGOING EVALUATION
way in reducing occupational injuries like
IDENTIFYING CONCERNS
Most of our training curriculum has been
AND MEASUREMENT
strains and sprains by identifying and
A key element of our safety and health designed in cooperation with industry Safety and health are full-year working to reduce hazards. Ergonomics
success is our employee-partners’ experts and focuses on situations commitments at Cintas, and every level evaluations and training are available to
continued personal investment in our specific to Cintas. These include the of the organization participates in our all employee-partners. Our corporate"
2021-ESG-Report-cintas.txt,"ce Safety Certification, ongoing efforts. ergonomic trainers have helped us
at Cintas, and has helped us create a which was recognized by the
Locations self-assess against safety and
reduce our ergonomics-related injuries.
deeper, more direct connection with International Maintenance Conference in
health protocols, and undergo routine Locations are challenged to reduce
our people. 2017. All maintenance and engineering
safety evaluations by our corporate S&H risks and set goals for motions saved
employee-partners must successfully"
2021-ESG-Report-cintas.txt,"orts. ergonomic trainers have helped us
at Cintas, and has helped us create a which was recognized by the
Locations self-assess against safety and
reduce our ergonomics-related injuries.
deeper, more direct connection with International Maintenance Conference in
health protocols, and undergo routine Locations are challenged to reduce
our people. 2017. All maintenance and engineering
safety evaluations by our corporate S&H risks and set goals for motions saved
employee-partners must successfully
While they are on the job, our employee- Team. Our locations also conduct regular and projects implemented using best-"
2021-ESG-Report-cintas.txt,"our employee- Team. Our locations also conduct regular and projects implemented using best-
complete the written and performance
partners are trained to identify risks and driver assessments where a Service practice ergonomic solutions available
issues in their work area, report issues,
test to earn certification.
Supervisor who is a certified Smith through the Cintas Ergo Catalog.
and not perform dangerous work, or Safe driving is imperative at Cintas. We System® Evaluator rides a route with a
Employee-partners can also submit their"
2021-ESG-Report-cintas.txt,"’s
or strains and enter our own Ergo
their approaches to our drivers’ unique General Manager each month.
Competition. Entries are evaluated
27 OSHA records as of Aug. 31, 2021. Retrieved from osha.gov/vpp/bylocation on Oct. 3, 2021.
47 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
for their low-cost creativity for solving SHARING OUR SAFETY KNOWLEDGE
common work-related issues like lifting,
Our S&H Team isn’t just focused on our
reaching, pushing, or pulling. Winners
employee-partners’ daily routines. It’s also"
2021-ESG-Report-cintas.txt,"eir low-cost creativity for solving SHARING OUR SAFETY KNOWLEDGE
common work-related issues like lifting,
Our S&H Team isn’t just focused on our
reaching, pushing, or pulling. Winners
employee-partners’ daily routines. It’s also
are entered in national and international
a key resource during internal-use product
ergonomics competitions where they
and equipment reviews and installations,
compete against employees from other
and our process efficiency developments.
companies around the globe. Our
employee-partners have won Ergo Cups Our dedication to raising world-class safety"
2021-ESG-Report-cintas.txt,"red in national and international
a key resource during internal-use product
ergonomics competitions where they
and equipment reviews and installations,
compete against employees from other
and our process efficiency developments.
companies around the globe. Our
employee-partners have won Ergo Cups Our dedication to raising world-class safety
in various categories at the Applied and health standards doesn’t stop at our
Ergonomics Conference three times in doors. Members of our award-winning S&H
the last four years, and our employee- Team regularly offer ongoing education"
2021-ESG-Report-cintas.txt,"e updated Further, we’ve developed the Safeload
and adjusted our COVID-19 Preparedness system for safer, more ergonomic
Plan, using updated Centers for Disease handling of soiled laundry, and the
Control and Prevention (CDC) and wash-alley safety system for safe access
OSHA advisories as guidance. On top to industrial laundry equipment. We’ve
of enhancing our cleaning protocols at also introduced the patented Graceport
all of our locations following OSHA’s device for safe electrical maintenance
directives, all employee-partners are (now widely used outside our company),"
2021-ESG-Report-cintas.txt,"ed to perform daily at-home and we have codified contractor safety
health assessments, increase personal qualification processes.
hygiene and hand washing, wear masks in
At the request of the Honduran
public and shared areas, social distance,
government, we helped establish a
and adhere to capacity reductions in
standard for safety and health, and
public and shared areas. Additionally,
became the first workplace in Honduras
work-from-home options were made
to receive the “Safe Company with Safe
available to employee-partners whose"
2021-ESG-Report-cintas.txt,"n
public and shared areas, social distance,
government, we helped establish a
and adhere to capacity reductions in
standard for safety and health, and
public and shared areas. Additionally,
became the first workplace in Honduras
work-from-home options were made
to receive the “Safe Company with Safe
available to employee-partners whose
Work” designation.
job functions allowed it.
SAFETY & HEALTH DATA UNITS FY21
Total Recordable Injury Rate (TRIR)28 % 1.70%
Lost Time Injury Rate (LTIR)29 % 0.55%
Fatalities (Cintas Employee-Partners) Qty. 0"
2021-ESG-Report-cintas.txt,"100 workers, based on 200,000 hours worked.
29 Calculated per 100 workers, based on 200,000 hours worked.
48 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
GLOBAL SUPPLY CHAIN AND SUPPLIER RELATIONS
A critical component of our business is Our supply chain procures almost Our Vendor Code of Conduct also HUMAN RIGHTS STANDARDS
our global supply chain, which provides 90% of the finished products for our stipulates penalties – up to and
Our Vendor Code of Conduct promotes
our employee-partners with the goods uniform rental garments and our Design including the cancellation or denial of"
2021-ESG-Report-cintas.txt,"al assessment, conducted by compliance standards in these areas.
are fluent in the language(s) spoken
an independent third-party auditor,
by management and employees; and
TRACE courses outline the requirements CONFLICT MINERALS
continues with a physical compliance of global trafficking-related statutes,
engage directly with facility leadership Cintas does not purchase raw materials
audit of the facility, which includes more including the UK Modern Slavery Act
than 300 points of business. Cintas
and conduct employee interviews."
2021-ESG-Report-cintas.txt,"source materials from socially
to produce the required compliance In FY21, we conducted 139 supplier trafficking risks and formulate a plan to
responsible sources.
documentation and explain any actions audits with in-person visits by third- identify and address trafficked labor.
needed to comply with our Vendor Code party auditors and confirmed current GSC conducts an annual review of
Through Cintas’ anti-corruption training
of Conduct through a CAP. certification for suppliers holding current
program, GSC employee-partners who"
2021-ESG-Report-cintas.txt,"ocument compliance. Once corrective As a result, we also conducted fewer training modules.
Conflict Mineral Training seminar so
actions are supported with proper audits of low- to medium-risk Global
Reporting Concerns they understand our Conflict Minerals
documentation, the supplier or facility is Supply Chain Suppliers, and waived audit
We provide several means for both Policy, and must also report their conflict
certified to do business with Cintas as a requirements for the year for suppliers
Cintas employee-partners and minerals use to us. We then submit"
2021-ESG-Report-cintas.txt,"er. that were deemed to be low risk.
external parties to register concerns that information to the extent required
If the facility already holds a compliance or report issues about Global Supply to the U.S. Securities and Exchange
certification from an independent PROMOTING ETHICAL INTERACTIONS Chain Suppliers. Commission (SEC).
certification agency (such as WRAP,
Training on Supply Chain Issues Anyone can report an anonymous Global Supply Chain Suppliers
Intertek, SA8000, or another recognized
Internally at Cintas, employee-partners concern using the Cintas Direct Line – that do not comply with our annual"
2021-ESG-Report-cintas.txt,"an anonymous Global Supply Chain Suppliers
Intertek, SA8000, or another recognized
Internally at Cintas, employee-partners concern using the Cintas Direct Line – that do not comply with our annual
body), those certifications generally
with direct responsibility for supply chain either via the phone line or online – conflict minerals review are subject to
satisfy our requirements.
management receive mandatory internal staffed 24/7 by an independent third penalties, up to and including denial of
training so they are knowledgeable and party. Cintas employee-partners can also Cintas business."
2021-ESG-Report-cintas.txt,"e’ve created our
better meets customer needs, and Supplier Diversity Executive Steering
YEAR % OF U.S. SPEND DOLLAR SPEND ON DIVERSE SUPPLIERS
reflects the ever-changing demographics Committee, a group of more than 35
of the communities in which we do Cintas executives who serve as change FY17 11.7% $208.6M
business. It also provides increased agents and advocates for diverse FY18 12.1% $231.3M
competition, creativity, and flexibility in suppliers throughout our company. They
FY19 12.7% $277.9M
our supply chain. help educate employee-partners on"
2021-ESG-Report-cintas.txt,"bled veteran-
since FY12, we’ve increased our
percentage of spend from 10.2%, with our
owned businesses.
percentage of spend fluctuating between
11.4% and 12.7% from FY16 to FY20.
51 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LOCAL COMMUNITIES
We’re immensely proud of the impact Managed at the corporate level through
we’ve had in our local communities the Corporate Affairs Department, these
through our corporate philanthropic six initiatives allow involvement from
activities. This includes monetary all of our U.S. locations and employee-"
2021-ESG-Report-cintas.txt,"%, with our
owned businesses.
percentage of spend fluctuating between
11.4% and 12.7% from FY16 to FY20.
51 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LOCAL COMMUNITIES
We’re immensely proud of the impact Managed at the corporate level through
we’ve had in our local communities the Corporate Affairs Department, these
through our corporate philanthropic six initiatives allow involvement from
activities. This includes monetary all of our U.S. locations and employee-
donations, in-kind donations, and active partners. Our Canadian employee-"
2021-ESG-Report-cintas.txt,"hropic six initiatives allow involvement from
activities. This includes monetary all of our U.S. locations and employee-
donations, in-kind donations, and active partners. Our Canadian employee-
fundraising on behalf of key charitable partners engage and support local
and not-for-profit organizations, organizations concerned with cancer,
which we collectively brand under the diabetes, and heart health.
banner of Cintas Cares, our corporate
A key component of our philanthropic
philanthropic arm.
success is the passion our employee-"
2021-ESG-Report-cintas.txt,"COO Mark Carter celebrate Cintas’ philanthropic partnership with the American Heart
Association on National Wear Red Day.
52 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR CORPORATE PARTNERSHIPS
American Cancer Society resources, including the Road To American Diabetes Association The American Diabetes Association
At a corporate level, our relationship with Recovery® program, 24/7 live online Our relationship with the American provides free, confidential diabetes
the American Cancer Society began in patient support, live webinars about Diabetes Association began in 2019 risk-testing to our employee-partners"
2021-ESG-Report-cintas.txt,"Breast Cancer events. travel out of town for treatment. and minority communities. Through provides access to its Diabetes Food
We also support the organization with this partnership, the American Diabetes Hub app with recipe and meal-planning
Although our corporate relationship
a company-wide apparel sale each fall,
was established recently, Cintas
Association also has a business options for those living with diabetes.
with the proceeds from our Canadian partnership with our First Aid & Safety
employee-partners have long supported"
2021-ESG-Report-cintas.txt,"own for treatment. and minority communities. Through provides access to its Diabetes Food
We also support the organization with this partnership, the American Diabetes Hub app with recipe and meal-planning
Although our corporate relationship
a company-wide apparel sale each fall,
was established recently, Cintas
Association also has a business options for those living with diabetes.
with the proceeds from our Canadian partnership with our First Aid & Safety
employee-partners have long supported
employee-partners’ purchases directed division to produce health kits with first"
2021-ESG-Report-cintas.txt,"le each fall,
was established recently, Cintas
Association also has a business options for those living with diabetes.
with the proceeds from our Canadian partnership with our First Aid & Safety
employee-partners have long supported
employee-partners’ purchases directed division to produce health kits with first
the American Cancer Society at a
to the Canadian Cancer Society.
grassroots level. Over the years, we have
aid items frequently needed by diabetics,
which has raised more than $250,000.
Through this partnership, our employee- helped raise almost $1 million across"
2021-ESG-Report-cintas.txt,"lth kits with first
the American Cancer Society at a
to the Canadian Cancer Society.
grassroots level. Over the years, we have
aid items frequently needed by diabetics,
which has raised more than $250,000.
Through this partnership, our employee- helped raise almost $1 million across
partners have access to some of the our locations.
American Cancer Society’s support
AMERICAN CANCER SOCIETY AMERICAN DIABETES ASSOCIATION
53 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
American Heart Association Each year, Cintas employee-partners National Fallen Firefighters Foundation September 11, 2001. The funds raised at"
2021-ESG-Report-cintas.txt,"eptember 11, 2001. The funds raised at
The American Heart Association (AHA) across the United States participate in We formalized our relationship with the those events support families of fallen
is one of our longest-standing corporate both the Heart Mini-Marathon & Walk National Fallen Firefighters Foundation firefighters and other New York City Fire
philanthropic relationships, dating back and the national Heart Walk. Almost 500 (NFFF), our latest corporate philanthropic Department programs.
to 2005. Cintas partners with the AHA employee-partners participated in the partner, in 2021. The NFFF works closely"
2021-ESG-Report-cintas.txt,"lifesaving CPR and first aid. October in observance of the events on
AMERICAN HEART ASSOCIATION NATIONAL FALLEN FIREFIGHTERS FOUNDATION
54 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Matthew 25: Ministries In the past, we have also partnered with Cintas Partner Assistance Fund global efforts to mitigate climate change.
Our extensive partnership with Matthew Matthew 25: Ministries to bring Cintas We launched the Cintas Partner With catastrophic weather events rising
25: Ministries goes back to 1998 and employee-partners on mission trips to Assistance Fund (CPAF) in 2019 to across North America – with all types of"
2021-ESG-Report-cintas.txt,"Fund global efforts to mitigate climate change.
Our extensive partnership with Matthew Matthew 25: Ministries to bring Cintas We launched the Cintas Partner With catastrophic weather events rising
25: Ministries goes back to 1998 and employee-partners on mission trips to Assistance Fund (CPAF) in 2019 to across North America – with all types of
is our longest-standing corporate Haiti and the Appalachian area of West provide financial assistance to our own natural disasters causing greater harm
philanthropic relationship. Virginia, as part of our annual Clothe employee-partners who have been and damage – we recognize the need"
2021-ESG-Report-cintas.txt,"ched the Cintas Partner With catastrophic weather events rising
25: Ministries goes back to 1998 and employee-partners on mission trips to Assistance Fund (CPAF) in 2019 to across North America – with all types of
is our longest-standing corporate Haiti and the Appalachian area of West provide financial assistance to our own natural disasters causing greater harm
philanthropic relationship. Virginia, as part of our annual Clothe employee-partners who have been and damage – we recognize the need
the Kids campaign. Since 2003, our negatively affected by natural disasters. to provide support for our employee-"
2021-ESG-Report-cintas.txt,"nd (CPAF) in 2019 to across North America – with all types of
is our longest-standing corporate Haiti and the Appalachian area of West provide financial assistance to our own natural disasters causing greater harm
philanthropic relationship. Virginia, as part of our annual Clothe employee-partners who have been and damage – we recognize the need
the Kids campaign. Since 2003, our negatively affected by natural disasters. to provide support for our employee-
We assist Matthew 25: Ministries with
employee-partners have donated almost Started with $500,000 in seed money partners when these challenging situations"
2021-ESG-Report-cintas.txt,"yee-
We assist Matthew 25: Ministries with
employee-partners have donated almost Started with $500,000 in seed money partners when these challenging situations
its national and global disaster relief
efforts by providing Cintas products
4 million articles of clothing and school from Cintas, the fund is now valued at occur, many times unexpectedly.
supplies for disadvantaged children almost $4 million – including ongoing
and garments for the organization to While eligibility to receive financial
and contributed thousands of volunteer donations from our own employee-"
2021-ESG-Report-cintas.txt,"elping children in partners through weekly payroll
organization’s disaster response includes to those affected by natural disasters,
a Cintas-branded van, which we donated
need, the program also contributes deductions and one-time contributions.
we hope to soon expand eligibility to
to the circular economy by finding a
to assist with their on-the-ground efforts The mission of the CPAF aligns with include other catastrophic life events,
in disaster areas.
positive way to reuse items of clothing.
our company’s ambition to reduce its to further aid our employee-partners in"
2021-ESG-Report-cintas.txt,"ny’s ambition to reduce its to further aid our employee-partners in
environmental impact and support their times of greatest need.
MATTHEW 25: MINISTRIES CPAF: WEST VIRGINIA FLOODING
55 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
LOCAL PROGRAMS
In addition to these six programs, we also UNITED WAY DRESS FOR SUCCESS
have successful programs supported by
our corporate headquarters in Cincinnati.
These include relationships with Adopt
A Class, where teams of volunteer
employee-partners present weekly"
2021-ESG-Report-cintas.txt,"usiness decisions,
positions, is available in our Corporate
achieving our Principal Objective: to we leverage internal processes that More information about our Board
Governance Guidelines. Additional
exceed our customers’ expectations to include disciplined due diligence and members, including biographical
nomination information, Board
maximize the long-term value of Cintas risk assessment to evaluate potential information and professional affiliations,
governance, and committee activities are
for our shareholders and employee- outcomes. Our Principal Objective is available in our FY21 Proxy Statement."
2021-ESG-Report-cintas.txt,"ransitioned to become our Audit Committee, Nominating and
structure are guided by our Code of
our Board of Directors, management, Executive Chairman as of June 1, 2021. Corporate Governance Committee
Conduct and Business Ethics, which
and stakeholders to run our business in On this same date, Todd Schneider was
establishes clear and consistent Melanie W. Barstad
a manner that aims to reduce, mitigate, appointed as our new President and
expectations for decision-making by Compensation Committee,
all Cintas Directors and employee-"
2021-ESG-Report-cintas.txt,"connection with his
partners. Our Code of Conduct requires Governance Committee
a ad ndh e hr ee ln pc se
p
t ro
e
sla ew rvs
e
a tn hd
e
r ie ng teu gla rt itio
y
n os
f our
GOVERNANCE STRUCTURE
wap ap
s
o ei xn ptm ane dn et dto
b
t yh oe
n
B eo sa er ad t,
.
the Board
Karen L. Carnahan
Our governance is placed in the hands Audit Committee, Nominating and
company. Each Director, executive, After five years with a governance
of our Board of Directors, our highest Corporate Governance Committee
manager, and employee-partner is structure that included a joint role of"
2021-ESG-Report-cintas.txt,"g and Corporate
that is consistent with protecting the Governance Committee and Governance Committee
environment and enhancing humanity
Executive Committee.
58 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ESG OVERSIGHT The Vice President of ESG and CCO
will work with business and functional
Instead of delegating oversight of risk to REPORTING CONCERNS
leaders across our company to determine
a specific committee, our entire Board
oversees our risk management process.
our ongoing sustainability strategies, as Cintas is committed to maintaining an Both employee-partners and"
2021-ESG-Report-cintas.txt,"rmine
a specific committee, our entire Board
oversees our risk management process.
our ongoing sustainability strategies, as Cintas is committed to maintaining an Both employee-partners and
well as policies and goals related to our ethical, responsible workplace. Our external parties have access to several
This includes our ESG-related strategies
and initiatives, given their importance to
corporate responsibility initiatives. Code of Conduct and Business Ethics mechanisms to report questions or
requires our employee-partners and concerns. Anyone can report any"
2021-ESG-Report-cintas.txt,"rect
of Human Resources and Chief Diversity
The Board oversees and monitors ESG- comply with all applicable laws and Line (online or phone), a confidential
Officer provides ongoing updates
related matters, including environmental regulations, and to report situations or third-party resource that is dedicated
to the Board about the company’s
programs, workplace conduct, training issues that are in violation of the law, our to Cintas’ stakeholders and operated
human capital and diversity, equity,
and development, employee-partner"
2021-ESG-Report-cintas.txt,"going updates
related matters, including environmental regulations, and to report situations or third-party resource that is dedicated
to the Board about the company’s
programs, workplace conduct, training issues that are in violation of the law, our to Cintas’ stakeholders and operated
human capital and diversity, equity,
and development, employee-partner
and inclusion efforts, as well as its
company policies, and our core principles. 24 hours, 7 days a week.
health and wellness, diversity and
strategy and performance against We document concerns and strive to Additionally, employee-partners"
2021-ESG-Report-cintas.txt,"of anyone concerns – as outlined in our corporate
cybersecurity and data privacy, and We encourage our stakeholders to
requesting guidance or reporting policy – about lines of communications
our principal operations, business, provide feedback about our ESG
questionable behavior and/or a possible within the company. This structure
and compliance. activities to us through their standard
violation. Company policy prohibits begins with their supervisors, HR, or
stakeholder communications channels,
We use an enterprise risk management retaliation against any employee-partner compliance departments. External"
2021-ESG-Report-cintas.txt,". Our new Vice President of ESG concerns were identified in FY21.
and CCO reports to the General Counsel
and has assumed the responsibility of
providing regular updates to, conducting
informational exchanges with, and
seeking input from the Board about the
company’s strategy and progress in
ESG areas.
59 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ETHICS AND INTEGRITY
“One of Cintas’ biggest TRAINING • Information Security Awareness – Further, our Risk & Compliance
Employee-partners who have Department ensures that all appropriate"
2021-ESG-Report-cintas.txt,"nd CCO reports to the General Counsel
and has assumed the responsibility of
providing regular updates to, conducting
informational exchanges with, and
seeking input from the Board about the
company’s strategy and progress in
ESG areas.
59 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ETHICS AND INTEGRITY
“One of Cintas’ biggest TRAINING • Information Security Awareness – Further, our Risk & Compliance
Employee-partners who have Department ensures that all appropriate
strengths has always been Cintas employee-partners receive"
2021-ESG-Report-cintas.txt,"put from the Board about the
company’s strategy and progress in
ESG areas.
59 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ETHICS AND INTEGRITY
“One of Cintas’ biggest TRAINING • Information Security Awareness – Further, our Risk & Compliance
Employee-partners who have Department ensures that all appropriate
strengths has always been Cintas employee-partners receive
training about our Code of Conduct and
computer access at work vendors working with our global supply
our insistence on honesty Business Ethics on their first official day • Anti-Corruption Training – Employee- chain are aware of our policies and"
2021-ESG-Report-cintas.txt,"ing about our Code of Conduct and
computer access at work vendors working with our global supply
our insistence on honesty Business Ethics on their first official day • Anti-Corruption Training – Employee- chain are aware of our policies and
partners who could potentially interact expectations, which are spelled out
of employment with us. They also receive
and integrity from every
a booklet containing the Code at their
with a foreign official or representative in our Vendor Code of Conduct. Our
• PCI Training – Employee-partners who vendors’ compliance is monitored"
2021-ESG-Report-cintas.txt,"potentially interact expectations, which are spelled out
of employment with us. They also receive
and integrity from every
a booklet containing the Code at their
with a foreign official or representative in our Vendor Code of Conduct. Our
• PCI Training – Employee-partners who vendors’ compliance is monitored
partner in the company.” orientation session and must sign an
acknowledgment that they have received
could have access to credit card data through annual third-party audits.
S cott Farmer,
and understand the training. Every year, we identify employee-"
2021-ESG-Report-cintas.txt,"y also receive
and integrity from every
a booklet containing the Code at their
with a foreign official or representative in our Vendor Code of Conduct. Our
• PCI Training – Employee-partners who vendors’ compliance is monitored
partner in the company.” orientation session and must sign an
acknowledgment that they have received
could have access to credit card data through annual third-party audits.
S cott Farmer,
and understand the training. Every year, we identify employee-
E xecutive Chairman
Additionally, employee-partners must"
2021-ESG-Report-cintas.txt,"card data through annual third-party audits.
S cott Farmer,
and understand the training. Every year, we identify employee-
E xecutive Chairman
Additionally, employee-partners must
ANTI-BRIBERY AND CORRUPTION partners directly involved in our business
(CEO, 2003-2021) activities who have the potential to
complete three different annual training Under the direction of our senior
elicit bribery or corruption activities.
courses focusing on ethics and integrity: management’s annual Enterprise Risk
We are committed to interacting with Code of Conduct and Business Ethics, Assessment, our Risk & Compliance Those employee-partners are required"
2021-ESG-Report-cintas.txt,"dditionally, employee-partners must
ANTI-BRIBERY AND CORRUPTION partners directly involved in our business
(CEO, 2003-2021) activities who have the potential to
complete three different annual training Under the direction of our senior
elicit bribery or corruption activities.
courses focusing on ethics and integrity: management’s annual Enterprise Risk
We are committed to interacting with Code of Conduct and Business Ethics, Assessment, our Risk & Compliance Those employee-partners are required
our customers, employee-partners, Workplace Harassment Prevention, Department conducts annual reviews of to undergo additional anti-corruption"
2021-ESG-Report-cintas.txt,"al anti-corruption
competitors, coworkers, shareholders, and Workplace Violence Prevention. our business operation for corruption training, and we perform audits on
vendors, government and regulatory These are either completed through an risks. We have not identified any instances a regular basis to support ongoing
agencies, and the communities in online training-on-demand platform of corruption during this process. compliance and identify potential issues.
which we do business in a respectful,
or conducted in person for employee-"
2021-ESG-Report-cintas.txt,"d platform of corruption during this process. compliance and identify potential issues.
which we do business in a respectful,
or conducted in person for employee-
Risks that have been identified during our
ethical manner and in compliance with
partners who do not have computer
annual business review include our foreign
ANTI-COMPETITIVE BEHAVIOR
regulatory and legal requirements.
access at work. Our annual training results
global supply chain operations, which We pride ourselves on operating our
We maintain many corporate policies are also reported to the Board of Directors hire local employee-partners with cultural business in an ethical and lawful manner,"
2021-ESG-Report-cintas.txt,"ANTI-COMPETITIVE BEHAVIOR
regulatory and legal requirements.
access at work. Our annual training results
global supply chain operations, which We pride ourselves on operating our
We maintain many corporate policies are also reported to the Board of Directors hire local employee-partners with cultural business in an ethical and lawful manner,
and training programs to promote a to confirm we’re maintaining compliance. differences; doing business in markets a cornerstone of our corporate culture.
culture of compliance, and promote Further, management-track employee- known for corruption; using customs We believe in adhering to all laws"
2021-ESG-Report-cintas.txt,"our Founder from international suppliers; and potential promote free and fair competition in
and integrity. Richard “Dick” Farmer, the book further vendor or third-party relationships. the marketplace.
We provide confidential, retaliation- articulates our corporate culture and how Additionally, our expansive Business Our Code of Conduct and Business
free outlets for internal and external it functions within our Code of Conduct Ethics Corporate Position covers many Ethics and our Anti-Corruption
stakeholders to report concerns or and Business Ethics. topics and concerns and outlines our Corporate Policy require all employee-"
2021-ESG-Report-cintas.txt,"he book further vendor or third-party relationships. the marketplace.
We provide confidential, retaliation- articulates our corporate culture and how Additionally, our expansive Business Our Code of Conduct and Business
free outlets for internal and external it functions within our Code of Conduct Ethics Corporate Position covers many Ethics and our Anti-Corruption
stakeholders to report concerns or and Business Ethics. topics and concerns and outlines our Corporate Policy require all employee-
apparent issues. Additional position- or responsibility- expectations of our employee-partners partners to comply with all laws and"
2021-ESG-Report-cintas.txt,"f Conduct Ethics Corporate Position covers many Ethics and our Anti-Corruption
stakeholders to report concerns or and Business Ethics. topics and concerns and outlines our Corporate Policy require all employee-
apparent issues. Additional position- or responsibility- expectations of our employee-partners partners to comply with all laws and
We believe we conduct our business the specific training is required annually for in those situations. This policy is regulations related to competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit"
2021-ESG-Report-cintas.txt,"outlines our Corporate Policy require all employee-
apparent issues. Additional position- or responsibility- expectations of our employee-partners partners to comply with all laws and
We believe we conduct our business the specific training is required annually for in those situations. This policy is regulations related to competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit
and employee-partners, who receive collusion to manipulate a market. Topics"
2021-ESG-Report-cintas.txt,"ibility- expectations of our employee-partners partners to comply with all laws and
We believe we conduct our business the specific training is required annually for in those situations. This policy is regulations related to competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit
and employee-partners, who receive collusion to manipulate a market. Topics
of ethics and integrity.
• AB1825 Training – Employee-partners"
2021-ESG-Report-cintas.txt,"ose situations. This policy is regulations related to competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit
and employee-partners, who receive collusion to manipulate a market. Topics
of ethics and integrity.
• AB1825 Training – Employee-partners
training on its contents. in this area are also included in our
who are California residents and
Code of Conduct and Business Ethics
employee-partners who work outside"
2021-ESG-Report-cintas.txt,"o competition and
right way, perpetuating the highest levels various employee-partners, including: communicated to our governance body antitrust, including those that prohibit
and employee-partners, who receive collusion to manipulate a market. Topics
of ethics and integrity.
• AB1825 Training – Employee-partners
training on its contents. in this area are also included in our
who are California residents and
Code of Conduct and Business Ethics
employee-partners who work outside
annual training.
of California but manage employee-"
2021-ESG-Report-cintas.txt,"coordinates all
size of some of these organizations and communications between stakeholders
dealings in their position in Congress a total of $10,000 to elected officials
• Member of a committee that has representing the Ohio districts where
Cintas’ position, the public viewpoints related to public policy.
influence over issues important our corporate office is located and the
expressed by some of these groups do
not always align with our views.
to Cintas counties in which most of our corporate
POLITICAL CONTRIBUTIONS employee-partners live."
2021-ESG-Report-cintas.txt,"rruption Corporate Policy
are targeted at communicating Cintas’
outlines the manner in which we may
positions on existing and potential
engage with political candidates and
legislation and regulations; providing
representatives. As a company, Cintas
perspective on regulatory measures
Corporation does not contribute to
that affect our business; and providing
political candidates.
testimony under oath when necessary
to relay our experiences, positions, and The PAC supports political contributions
perspectives about topics important on behalf of our employee-partners and"
2021-ESG-Report-cintas.txt,"cal candidates and
legislation and regulations; providing
representatives. As a company, Cintas
perspective on regulatory measures
Corporation does not contribute to
that affect our business; and providing
political candidates.
testimony under oath when necessary
to relay our experiences, positions, and The PAC supports political contributions
perspectives about topics important on behalf of our employee-partners and
to our business. We conduct this work is funded entirely by voluntary personal
through a variety of means, including donations from our employee-partners."
2021-ESG-Report-cintas.txt,"our employee-partners and
to our business. We conduct this work is funded entirely by voluntary personal
through a variety of means, including donations from our employee-partners.
face-to-face meetings, memos, and It is not funded by the company, and
position papers, as well as political it does not receive any direction from
contributions through the Partner the company or its Board of Directors.
Political Action Committee (PAC). A 12-person executive committee
operates the PAC and represents
employee-partners’ perspectives from"
2021-ESG-Report-cintas.txt,"rference
incidents in the past but none of these
and attacks.
incidents, individually or combined,
We rely extensively on computer systems, have had a material adverse effect on
including third-party systems, to process our business or operations. We have a
transactions, maintain information, and robust network of security controls, policy
manage our businesses. We believe it’s enforcement mechanisms, and monitoring
in the best interest of our company, our systems to help address these threats.
customers, our employee-partners, our"
2021-ESG-Report-cintas.txt,"ive disaster recovery plan
suppliers, and all of our stakeholders to
that’s frequently reviewed and tested.
maintain effective, proactive, and up-to-
However, our computer systems are
date cybersecurity measures to protect the
subject to damage or interruption from
confidentiality, security, and integrity of
computer or telecommunication failures;
personal and business information.
catastrophic climate-related events
The Board of Directors’ Audit Committee like fires, tornadoes, and hurricanes;
oversees our information security. The power outages; and employee-partner"
2021-ESG-Report-cintas.txt,"onflict with GRI Standards requirements location’s utility company was used to calculate emissions values. Additionally, data for
and thus require significant changes to, and restatements of, our data in future years. our U.S. fleet was included in our 2021 environmental data, which also factored into our
Further, in some areas of our social data, we have chosen to align our disclosures emissions data this year.
with the GRI requirements, rather than the EEO-1 reporting requirements of the U.S.
federal government (e.g., employee age brackets). As further and continued guidance"
2021-ESG-Report-cintas.txt,"generated and distributed FY21 Form 10-K (pg. 19)
201-02 Financial implications and other risks and opportunities due to Environment > Climate and Energy
climate change
201-03 Defined benefit plan obligations and other retirement plans Social > Compensation
201-04 Financial assistance received from government Governance > Tax
Market Presence
202-01 Ratios of standard entry level wage by gender compared to local By the start of our FY22, we expect the entry-level minimum wage paid to U.S.-based
minimum wage hourly employee-partners will be a minimum of $15.70 per hour. That figure can be"
2021-ESG-Report-cintas.txt,"ned benefit plan obligations and other retirement plans Social > Compensation
201-04 Financial assistance received from government Governance > Tax
Market Presence
202-01 Ratios of standard entry level wage by gender compared to local By the start of our FY22, we expect the entry-level minimum wage paid to U.S.-based
minimum wage hourly employee-partners will be a minimum of $15.70 per hour. That figure can be
adjusted upward as necessary based on work experience, the geographic location of the
employee-partner’s work facility, and/or other overriding local or state minimum wage"
2021-ESG-Report-cintas.txt,"overnance > Regulatory Compliance
306-05 Water bodies affected by water discharges and/or runoff Environment > Water Stewardship > Managing Wastewater
Environmental Compliance
307-01 Non-compliance with environmental laws and regulations Governance > Regulatory Compliance
Supplier Environmental Assessment
308-01 New suppliers that were screened using environmental criteria Social > Global Supply Chain and Supplier Relations > Assessing and Monitoring New
Global Supply Chain Suppliers
Employment
401-01 New employee hires and employee turnover Social > Talent Recruitment"
2021-ESG-Report-cintas.txt,"nd Safety Management System
403-03 Occupational health services Social > Safety and Health > Occupational Health Initiatives
75 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
403-04 Worker participation, consultation, and communication on Social > Safety and Health
occupational health and safety
403-05 Worker training on occupational health and safety Social > Safety and Health > Training and Development
403-06 Promotion of worker health Social > Compensation > Employee Benefits"
2021-ESG-Report-cintas.txt,"alth > Occupational Health Initiatives
403-07 Prevention and mitigation of occupational health and safety impacts Social > Safety and Health > Occupational Health and Safety Management System
directly linked by business relationships
403-08 Workers covered by an occupational health and safety Social > Safety and Health > Occupational Health and Safety Management System
management system
403-09 Work-related injuries Social > Safety and Health > Sharing our Safety Knowledge
Training and Education
404-01 Average hours of training per year per employee Social > Training and Development"
2021-ESG-Report-cintas.txt,"cial > Safety and Health > Occupational Health and Safety Management System
directly linked by business relationships
403-08 Workers covered by an occupational health and safety Social > Safety and Health > Occupational Health and Safety Management System
management system
403-09 Work-related injuries Social > Safety and Health > Sharing our Safety Knowledge
Training and Education
404-01 Average hours of training per year per employee Social > Training and Development
Social > Safety and Health
404-02 Programs for upgrading employee skills and transition Social > Training and Development"
2021-ESG-Report-cintas.txt,"ational health and safety Social > Safety and Health > Occupational Health and Safety Management System
management system
403-09 Work-related injuries Social > Safety and Health > Sharing our Safety Knowledge
Training and Education
404-01 Average hours of training per year per employee Social > Training and Development
Social > Safety and Health
404-02 Programs for upgrading employee skills and transition Social > Training and Development
assistance programs Social > Performance and Advancement
404-03 Percentage of employees receiving regular performance and career At Cintas, it is company policy that employee-partners take part in or receive an annual"
2021-ESG-Report-cintas.txt,"ier Relations > Human Rights Standards
Rights of Indigenous Peoples
411-01 Incidents of violations involving rights of indigenous peoples Governance > Regulatory Compliance
76 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
Human Rights Assessment
412-01 Operations that have been subject to human rights reviews or Social > Human Rights
impact assessments Social > Global Supply Chain and Supplier Relations
412-02 Employee training on human rights policies or procedures Social > Human Rights"
2021-ESG-Report-cintas.txt,"nd Analysis to system security. We utilize software and Customer Privacy
addressing data programs to identify potential system FY21 Form 10-K > Item 1A.
security risks security risks, and perform a regular Risk Factors
analysis of the system updates. We
regularly audit and review our processes. In
addition, Cintas performs regular security
maintenance, including issuing system
patches, performing penetration testing,
and monitoring data flow throughout the
company, among other security efforts.
Cintas’ employee-partners are also required"
2021-ESG-Report-cintas.txt,"= 64.2%
for (1) executive
management and (2) all Total Workforce: Racial/Ethnic
other employees Representation
White = 52.6%
Latinx/Hispanic = 19.4%
Black/African American = 13.3%
Asian = 3.7%
Two or More Races = 2.2%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.3%
Not Specified = 8.1%
SV-PS-330a.2 (1) Voluntary and Quantitative Rate (1) Voluntary turnover rate = 17% Social > Talent Retention
(2) involuntary turnover (2) Involuntary turnover rate = 4.4%
rate for employees
SV-PS-330a.3 Employee engagement as Quantitative Percentage (%) We most recently conducted company-wide Social > Employee-Partner"
2021-ESG-Report-cintas.txt,"x/Hispanic = 19.4%
Black/African American = 13.3%
Asian = 3.7%
Two or More Races = 2.2%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.3%
Not Specified = 8.1%
SV-PS-330a.2 (1) Voluntary and Quantitative Rate (1) Voluntary turnover rate = 17% Social > Talent Retention
(2) involuntary turnover (2) Involuntary turnover rate = 4.4%
rate for employees
SV-PS-330a.3 Employee engagement as Quantitative Percentage (%) We most recently conducted company-wide Social > Employee-Partner
a percentage employee-partner engagement surveys in Engagement"
2021-ESG-Report-cintas.txt,"Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.3%
Not Specified = 8.1%
SV-PS-330a.2 (1) Voluntary and Quantitative Rate (1) Voluntary turnover rate = 17% Social > Talent Retention
(2) involuntary turnover (2) Involuntary turnover rate = 4.4%
rate for employees
SV-PS-330a.3 Employee engagement as Quantitative Percentage (%) We most recently conducted company-wide Social > Employee-Partner
a percentage employee-partner engagement surveys in Engagement
partnership with Willis Towers Watson in
2019. Cintas’ employee-partner engagement"
2021-ESG-Report-cintas.txt,"bility and Adherence
to the Code (pg. 6)
SV-PS-510a.2 Total amount of monetary Quantitative Reporting currency n/a FY21 Form 10-K (pg. 14)
losses as a result of legal
proceedings associated
with professional integrity
ACTIVITY METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Number of employees by: (1) full-time and part-time, Quantitative Number Full-time 40,099; Part-time and other: 285 Social > Diversity, Equity,
(2) temporary, and (3) contract and Inclusion
Employee hours worked, percentage billable Quantitative Hours, n/a n/a"
2021-ESG-Report-cintas.txt,"o manufacture our products, the communities in which we do business, the
not-for-profit organizations we engage with, and the government officials who influence and set public policy. Below is an overview of our key stakeholder groups and our engagement
activities with them during FY21.
EMPLOYEE-PARTNERS CUSTOMERS
HOW WE ENGAGE TOPICS RAISED HOW WE ENGAGE TOPICS RAISED
• One-on-one, team, and • Competitive wages and benefits • Regular face-to-face interactions as • Product and service offerings
company meetings • Diverse and inclusive workforce we provide service • Quality of products and services"
2021-ESG-Report-cintas.txt,"NTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SHAREHOLDERS PHILANTHROPIC AND COMMUNITY ORGANIZATIONS
HOW WE ENGAGE TOPICS RAISED HOW WE ENGAGE TOPICS RAISED
• Annual meeting of shareholders • Financial performance • Community partnerships • Philanthropy
• Financial filings (proxy statement, • Business and market conditions and volunteerism • Economic opportunity
Form 10-K, etc.) • Allocation of capital • Participation in conferences • Safety, preparedness, and response
• Quarterly earnings conference calls • Corporate governance and forums • Diverse and inclusive workforce"
2021-ESG-Report-cintas.txt,"d help they are engaged and fulfilled by their
culture underpins everything we do. This commitment to our people has
maintain our consistent quality. But as careers. Because they give so much
Common respect for all our employee- created a positive, dynamic cycle that
a service provider, it’s our people and of themselves for us, we know it’s our
partners is fundamental, and we believe fuels our cohesive, high-functioning
our corporate culture that ultimately responsibility to treat our employee-
that everyone contributes to our workforce and drives our ongoing"
2021-ESG-Report-cintas.txt,"dent, contributing member of the partner is positioned to use their
team.” This was true when Dick founded strengths and talents to help us meet our
the modern-day Cintas and it’s still business goals, while they feel supported
true today: his philosophy forms the and championed in their pursuit of their
foundation of our Human Capital and professional goals.
Human Resources strategies.
32 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY, AND INCLUSION
We have five components to our overall WHY DIVERSITY IS IMPORTANT Almost our entire workforce – 99.3% – are transition service members to civilian"
2021-ESG-Report-cintas.txt,"you
in which we operate, as almost 43% of Friendly Employers).
our employee-partners self-identify as a
and promotion bring people from different backgrounds Our efforts to hire employee-partners
minority demographic (or non-white).
• Governance – Inclusion policies that together, everyone benefits from the with disabilities have also garnered
provide equal opportunity for all sharing of perspectives and experiences, Our efforts on diversifying the racial recognition from the Disabled Equality
partners and applicants providing deeper insight, understanding, and ethnic make-up of our workforce Index as a “90 Score” company and the"
2021-ESG-Report-cintas.txt,"usion on Forbes’ “Best Employers for
Our Partner Business Resource Groups
philanthropy, volunteerism, and that better serve our customers, Diversity” and DiversityPlus Magazine’s
(PBRGs) help foster a sense of greater
social responsibility shareholders, and other stakeholders in “Top 30 Champions of Diversity.”
community and belonging at the
• Supplier Diversity – Economic the long term.
In addition to more common definitions workplace, with four distinct groups
inclusion, innovation, and value
Our diverse workforce helps us better of diversity, we also look to expand the providing peer support for our women,"
2021-ESG-Report-cintas.txt,"iversityPlus Magazine’s
(PBRGs) help foster a sense of greater
social responsibility shareholders, and other stakeholders in “Top 30 Champions of Diversity.”
community and belonging at the
• Supplier Diversity – Economic the long term.
In addition to more common definitions workplace, with four distinct groups
inclusion, innovation, and value
Our diverse workforce helps us better of diversity, we also look to expand the providing peer support for our women,
• Multicultural Marketing – Listening
understand how our products and perspective of our workforce with other Black/African American, Latinx/Hispanic,"
2021-ESG-Report-cintas.txt,"ing innovative
services are viewed, how they meet our types of diversity, including diversity of and military-affiliated employee-
products and services that exceed
customers’ needs, and what innovations thought, and employee-partners with partners. Read more about our PBRGs
their expectations
may benefit our business. Having a broad disabilities or those who are military- on pg. 40.
We’ve made a committed effort to range of experiences to lean on also affiliated. Our military outreach programs
foster a workforce of employee- helps us enter new markets and gain are regularly recognized for their"
2021-ESG-Report-cintas.txt,"heir expectations
may benefit our business. Having a broad disabilities or those who are military- on pg. 40.
We’ve made a committed effort to range of experiences to lean on also affiliated. Our military outreach programs
foster a workforce of employee- helps us enter new markets and gain are regularly recognized for their
partners representative of different new customers. support and effectiveness in helping
generations, races, religions, abilities,
sexual orientations, and other identifying
categories, as well as employee-partners TOTAL WORKFORCE BREAKDOWNS"
2021-ESG-Report-cintas.txt,".
We’ve made a committed effort to range of experiences to lean on also affiliated. Our military outreach programs
foster a workforce of employee- helps us enter new markets and gain are regularly recognized for their
partners representative of different new customers. support and effectiveness in helping
generations, races, religions, abilities,
sexual orientations, and other identifying
categories, as well as employee-partners TOTAL WORKFORCE BREAKDOWNS
who bring a diversity of thought to our
business. We want our workforce to By Employment Type By Gender By Minority Status"
2021-ESG-Report-cintas.txt,"orientations, and other identifying
categories, as well as employee-partners TOTAL WORKFORCE BREAKDOWNS
who bring a diversity of thought to our
business. We want our workforce to By Employment Type By Gender By Minority Status
reflect the communities in which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE"
2021-ESG-Report-cintas.txt,"ur
business. We want our workforce to By Employment Type By Gender By Minority Status
reflect the communities in which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%"
2021-ESG-Report-cintas.txt,"rity Status
reflect the communities in which we Full-time Part-time Female Male Self-Identified Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%"
2021-ESG-Report-cintas.txt,"fied Non-Minority
do business. (99.3%) (0.7%) (35.8%) (64.2%) Minority (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age
Under 30 8,115 5,757 2,358
Percentage of Workforce 20.3% 14.4% 5.9%"
2021-ESG-Report-cintas.txt,"ity (57.2%)
(42.8%)
33 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age
Under 30 8,115 5,757 2,358
Percentage of Workforce 20.3% 14.4% 5.9%
30-50 22,051 15,138 6,913
Percentage of Workforce 55.0% 37.8% 17.2%"
2021-ESG-Report-cintas.txt,"T SOCIAL GOVERNANCE APPENDIX
EMPLOYEE-PARTNER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age
Under 30 8,115 5,757 2,358
Percentage of Workforce 20.3% 14.4% 5.9%
30-50 22,051 15,138 6,913
Percentage of Workforce 55.0% 37.8% 17.2%
Over 50 9,933 4,828 5,105
Percentage of Workforce 24.7% 12.0% 12.7%"
2021-ESG-Report-cintas.txt,"NER DEMOGRAPHICS
WORKFORCE BREAKDOWNS BY GENDER TOTAL MALE FEMALE
Total Employee-Partners 40,099 25,723 14,376
Employment Type
Full-Time 39,814 25,565 14,249
Percentage of Workforce 99.3% 63.8% 35.5%
Part-Time and Other 285 158 127
Percentage of Workforce 0.7% 0.4% 0.3%
Employee-Partners by Age
Under 30 8,115 5,757 2,358
Percentage of Workforce 20.3% 14.4% 5.9%
30-50 22,051 15,138 6,913
Percentage of Workforce 55.0% 37.8% 17.2%
Over 50 9,933 4,828 5,105
Percentage of Workforce 24.7% 12.0% 12.7%
TOTAL WORKFORCE – BY EEO DEMOGRAPHICS PERCENTAGE"
2021-ESG-Report-cintas.txt,"from local management
We continue to review our talent- employee-partners before applying
acquisition strategies – as well as for positions.
overlooked or underutilized avenues to
source candidates – and we monitor the
effectiveness of our value proposition to
remain an employer of choice.
35 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RETENTION
With approximately 40,000 employee- TALENT RETENTION DATA
partners company-wide, we have a FY21 Voluntary Turnover
dynamic and talented workforce with"
2021-ESG-Report-cintas.txt,"fore applying
acquisition strategies – as well as for positions.
overlooked or underutilized avenues to
source candidates – and we monitor the
effectiveness of our value proposition to
remain an employer of choice.
35 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT RETENTION
With approximately 40,000 employee- TALENT RETENTION DATA
partners company-wide, we have a FY21 Voluntary Turnover
dynamic and talented workforce with
skills and experience spanning hundreds
RATES VS. WORKFORCE TOTAL PERCENTAGE"
2021-ESG-Report-cintas.txt,"e benefits are attractive to BY AGE BRACKET TOTAL UNDER 30 30-50 OVER 50
prospective employees, but we stand out
Male 66.1% 23.9% 34.5% 7.7%
for our focus on professional development.
Female 33.9% 9.3% 16.7% 7.9%
We’ve evaluated the value proposition
Percentage of Voluntary Turnover 100% 33.2% 51.2% 15.6%
of working at Cintas at every stage of an
employee-partner’s career and in every
FY21 Involuntary Turnover
operational area, from our production
facilities to service and sales representatives
(SSRs), and management and corporate RATES VS WORKFORCE TOTAL PERCENTAGE"
2021-ESG-Report-cintas.txt,"ull potential in an inclusive environment, 50-question survey takes approximately
and that they do their best work when 20-30 minutes to complete, and also
METRIC 2015 2019
they are highly engaged with the provides opportunities to submit open-
company and their fellow employee- ended comments and feedback. Engagement Score 90% 90%
partners. As a service provider, we’ve Our employee-partner engagement Response Rate 82% 87%
seen the benefit of an engaged and
surveys have four key learning goals:
fulfilled workforce, and what it has meant"
2021-ESG-Report-cintas.txt,"ny performance indicators Safety n/a 4 +4
• Establish a new baseline for
such as customer loyalty, return on
measurement in our areas of strength Performance Management -1 3 +4
investment, and financial performance.
and development Retention n/a 4 +4
• Determine how we might impact
Sustainable Engagement 0 3 +3
EMPLOYEE-PARTNER SURVEYS future success in transformational ways
Empowerment -1 2 +3
We monitor the general engagement In our latest engagement survey, 87%
Development & Training -2 0 +2
of our workforce to stay abreast of their of our workforce opted to participate"
2021-ESG-Report-cintas.txt,"our bargaining obligations as
from the possibility of undue outside
influence or coercion.
defined by the law.
Between 2003 and 2011, we withstood a
national unionization campaign during
CURRENT ASSOCIATIONS
which a coordinated multiple-union As of September 1, 2021, a total of
effort put sustained pressure on Cintas 935 of our employee-partners were
to accept union representation on covered by collective bargaining
behalf of every employee-partner at all agreements, representing approximately
of our operating locations throughout 2.4% of our workforce. In the United"
2021-ESG-Report-cintas.txt,"or PII have and Customer Privacy
percentage involving been affected by cybersecurity issues FY21 Form 8-K (September 23, 2020)
customers' confidential encountered in FY21.
FY21 Form 10-K > Item 1A.
business information
Risk Factors
(CBI) or personally
identifiable information
(PII), (3) number of
customers affected
78 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Percentage (%) Total Workforce: Gender Social > Diversity, Equity,"
2021-ESG-Report-cintas.txt,"onally
identifiable information
(PII), (3) number of
customers affected
78 CINTAS 2021 ESG REPORTABOUT CINTAS ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Percentage (%) Total Workforce: Gender Social > Diversity, Equity,
Diversity & and racial/ethnic Female = 35.8% and Inclusion
Engagement group representation Male = 64.2%
for (1) executive
management and (2) all Total Workforce: Racial/Ethnic"
2022 Corporate Responsibility Report.txt,"ed a biennial reporting schedule for our comprehensive Corporate
761
Responsibility Report and are publishing supplemental reports in interim years. We
67%
believe this schedule enables us to communicate important updates in our ESG journey. EMPLOYEES
HIRED IN 2022
As such, we are pleased to publish our 2022 supplemental Corporate Responsibility 72,363 31,200
OF EMPLOYEES
Report—our fourth update to our progress in embedding ESG into our core operations. HIRED WERE
MEALS PACKED HOURS OF
DIVERSE
across 10 offices EMPLOYEE"
2022 Corporate Responsibility Report.txt,"such as regulators and investors on our
1ST QUARTER 2023 data will be used to determine a carbon footprint baseline and support
financed emissions and climate risks associated with our investments;
us in developing Scope 1 and 2 emission reduction targets and goals
throughout our business operations.
• Inform climate strategies and actions to develop innovative products that support the
transition toward a net-zero emissions economy.
Completion of greenhouse gas inventory for Scope 3 emissions
categories, including: business travel, employee commuting and Climate Value-at-Risk"
2022 Corporate Responsibility Report.txt,"rade students real-world experience working in corporations, law firms and government
employees, which are further discussed below.
offices, enabling them to discover new areas of interest and career possibilities. Everest hosted
National African American Insurance Association (NAAIA) five students and offered them opportunities to join several Everest-led technical, professional
and development workshops.
In October 2022, ten Everest colleagues attended the NAAIA’s annual conference. The NAAIA
is dedicated to empowering African American insurance professionals. Our underwriting Employee Resource Groups"
2022 Corporate Responsibility Report.txt,"lities. Everest hosted
National African American Insurance Association (NAAIA) five students and offered them opportunities to join several Everest-led technical, professional
and development workshops.
In October 2022, ten Everest colleagues attended the NAAIA’s annual conference. The NAAIA
is dedicated to empowering African American insurance professionals. Our underwriting Employee Resource Groups
colleague Brittney Alford participated on the “Business of Sport Insurance” panel. The sold-out
Our DEI Council sponsors several Employee Resource Groups (“ERGs”) to raise awareness and"
2022 Corporate Responsibility Report.txt,"and manage climate-related risks and opportunities, 2022 2021
including Scope 1, 2 and 3 greenhouse gas (GHG) emissions. For 2022, Everest collected Scope Scope 3–Other indirect emissions (U.S. operations)
1 and 2 emissions from its U.S. and international offices. In addition, Scope 3 emissions refer Category 1–Purchased Goods and Services tCO e 50,899.9 nr
2
to emissions across a company’s value chain and include 15 separate categories of emissions.
Category 6–Business travel3 tCO e 659.1 nr
2
For 2022, Everest collected Scope 3 emissions for employee commuting, business travel and"
2022 Corporate Responsibility Report.txt,"rchased Goods and Services tCO e 50,899.9 nr
2
to emissions across a company’s value chain and include 15 separate categories of emissions.
Category 6–Business travel3 tCO e 659.1 nr
2
For 2022, Everest collected Scope 3 emissions for employee commuting, business travel and
Business travel–air tCOe 458.8 252.3
2
purchased goods and services.
Business travel–rail & public transit tCOe 9.3 8.4
2
GHG EMISSIONS–GLOBAL FACILITIES YTE YTE
Business travel–passenger car & taxi tCOe 191.0 nr
2
2022 2021
Category 7–Employee Commuting (market based) tCO e 4,117.6 nr"
2022 Corporate Responsibility Report.txt,"parate categories of emissions.
Category 6–Business travel3 tCO e 659.1 nr
2
For 2022, Everest collected Scope 3 emissions for employee commuting, business travel and
Business travel–air tCOe 458.8 252.3
2
purchased goods and services.
Business travel–rail & public transit tCOe 9.3 8.4
2
GHG EMISSIONS–GLOBAL FACILITIES YTE YTE
Business travel–passenger car & taxi tCOe 191.0 nr
2
2022 2021
Category 7–Employee Commuting (market based) tCO e 4,117.6 nr
2
Scope 1–Direct GHG emissions1 tCO e 0.0 0.0
2 Employee Commuting tCOe 2,550.8 nr"
2022 Corporate Responsibility Report.txt,"PERFOMANCE TABLES
(GHG) EMISSIONS & ENERGY USE BY OVERSEAS FACILITY1,3 YTE YTE
2022 2021
Bermuda Scope 2 GHG from Purchased Electricity (location based) tCO e 59.7 nr
2
GHG from Purchased Electricity (market based) tCO e 75.1 nr
2
Purchased Electricity kWh 99,766 nr
Employment
GHG from Purchased Steam, Heat, & Cooling2 tCO e excl.2 nr
2
Brazil Scope 2 GHG from Purchased Electricity (location based) tCO e 1.6 nr Total Employees: 2,359
2
GHG from Purchased Electricity (market based) tCO e 2.0 nr
2 Employee Age Diversity"
2022 Corporate Responsibility Report.txt,"sed) tCO e 59.7 nr
2
GHG from Purchased Electricity (market based) tCO e 75.1 nr
2
Purchased Electricity kWh 99,766 nr
Employment
GHG from Purchased Steam, Heat, & Cooling2 tCO e excl.2 nr
2
Brazil Scope 2 GHG from Purchased Electricity (location based) tCO e 1.6 nr Total Employees: 2,359
2
GHG from Purchased Electricity (market based) tCO e 2.0 nr
2 Employee Age Diversity
Purchased Electricity kWh 7,025 nr
GHG from Purchased Steam, Heat, & Cooling2 tCO e excl.2 nr UNITED STATES UNITED STATES
2
Chile Scope 2 GHG from Purchased Electricity (location based) tCO e 8.7 nr Employee New York, NY 30-50 83"
2022 Corporate Responsibility Report.txt,"2 Under 30 1
Over 50 19
Remote, FL Total 26 Remote, NY Total 14
Walnut Creek, CA
Remote, GA 30-50 3
Remote, OH 30-50 7
Total 24
Over 50 3
Over 50 1 Warren, NJ 30-50 417
Remote, GA Total 6
Remote, OH Total 8 Over 50 312
Remote, IA 30-50 1
Remote, OK 30-50 1 Under 30 128
Remote, IA Total 1
Remote, OK Total 1 Warren, NJ Total 857
Remote, IL 30-50 3
Remote, OR 30-50 1 Grand Total 1796
Over 50 5
Remote, OR Total 1
Remote, IL Total 8
Remote, PA 30-50 11 INTERNATIONAL INTERNATIONAL
Remote, IN 30-50 6
Over 50 5 Employee London 30-50 128"
2022 Corporate Responsibility Report.txt,"al 27 Toronto–Reinsurance Remote, IA Male 1
Remote, PA Total 17
Toronto–Insurance Canada Total 35 Remote, IA Total 1
Canada 30-50 21 Zurich 30-50 19 Remote, IL Female 3 Remote, SC Male 4
Over 50 18 Over 50 7 Male 5 Remote, SC Total 4
Under 30 10 Under 30 2 Remote, IL Total 8 Remote, TN Female 1
Toronto–Insurance Remote, IN Female 3 Male 3
Canada Total 49 Zurich Total 28
Grand Total 563 Male 6 Remote, TN Total 4
Remote, IN Total 9
Remote, TX Female 9
Remote, KS Female 2
Male 6
Remote, KS Total 2
Employee Gender Diversity"
2022 Corporate Responsibility Report.txt,"te, IL Female 3 Remote, SC Male 4
Over 50 18 Over 50 7 Male 5 Remote, SC Total 4
Under 30 10 Under 30 2 Remote, IL Total 8 Remote, TN Female 1
Toronto–Insurance Remote, IN Female 3 Male 3
Canada Total 49 Zurich Total 28
Grand Total 563 Male 6 Remote, TN Total 4
Remote, IN Total 9
Remote, TX Female 9
Remote, KS Female 2
Male 6
Remote, KS Total 2
Employee Gender Diversity
Remote, ME Female 1 Remote, TX Total 15
Remote, ME Total 1 Remote, VA Female 3
UNITED STATES UNITED STATES
Remote, MI Female 3
Employee Orange, CA Female 18 Male 2"
2022 Corporate Responsibility Report.txt,"os Angeles, CA Female 17 Remote, CO Total 2 Male 3 Walnut Creek, CA Total 24
Male 16 Remote, CT Female 3 Remote, NV Total 5 Warren, NJ Female 416
Los Angeles, CA Total 33 Male 6
Remote, NY Female 8 Male 439
Miami, FL Female 27 Remote, CT Total 9
Male 6 Not
Remote, DE Female 1
Male 23 declared 2
Remote, NY Total 14
Male 1 Warren, NJ Total 857
Miami, FL Total 50
Remote, OH Female 5
New York, NY Female 72 Remote, DE Total 2 Grand Total 1796
Male 3
Male 103
Remote, OH Total 8
New York, NY Total 175
16 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 17Employee Gender Diversity Cont’d Employee Ethnic Diversity"
2022 Corporate Responsibility Report.txt,"9
Miami, FL Female 27 Remote, CT Total 9
Male 6 Not
Remote, DE Female 1
Male 23 declared 2
Remote, NY Total 14
Male 1 Warren, NJ Total 857
Miami, FL Total 50
Remote, OH Female 5
New York, NY Female 72 Remote, DE Total 2 Grand Total 1796
Male 3
Male 103
Remote, OH Total 8
New York, NY Total 175
16 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 17Employee Gender Diversity Cont’d Employee Ethnic Diversity
UNITED STATES UNITED STATES
INTERNATIONAL INTERNATIONAL
Employee White 123"
2022 Corporate Responsibility Report.txt,"27 Remote, CT Total 9
Male 6 Not
Remote, DE Female 1
Male 23 declared 2
Remote, NY Total 14
Male 1 Warren, NJ Total 857
Miami, FL Total 50
Remote, OH Female 5
New York, NY Female 72 Remote, DE Total 2 Grand Total 1796
Male 3
Male 103
Remote, OH Total 8
New York, NY Total 175
16 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 17Employee Gender Diversity Cont’d Employee Ethnic Diversity
UNITED STATES UNITED STATES
INTERNATIONAL INTERNATIONAL
Employee White 123
Employee Montreal QC, Canada Female 4"
2022 Corporate Responsibility Report.txt,"1
Canada Total 35
Unavailable/Not Declared 1
Male 6 Zurich Female 10 White 1
White 5
Remote, IL 8
Not Male 18 New York, NY 175
declared 2 Asian 3
Madrid, Spain Total 11 Zurich Total 28 Asian 18 White 5
Black or African 17
Grand Total 563 Remote, IN 9
Hispanic or Latino 14
White 9
Two or More Races 1
Remote, KS 2
Unavailable/Not Declared 2
White 2
18 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 19Employee Ethnic Diversity Cont’d
INTERNATIONAL INTERNATIONAL
Employee Remote–Toronto, Unavailable/Not"
2022 Corporate Responsibility Report.txt,"available/Not Grand Total 563
Remote, OK 1 White 17 Declared 14
Asian 1 Warren, NJ 857 Netherlands Total 14
Remote, OR 1 Asian 161
White 1 Black or African 66
Remote, PA 17 Hispanic or Latino 64
Asian 4 Indian 1
Hispanic or Latino 1 Native Hawaiian 1
White 12 Two or More Races 9
Remote, SC 4 Unavailable/Not Declared 15
Unavailable/Not Declared 1 White 540
White 3 Grand Total 1796
20 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 21TOTAL EMPLOYEES HIRED: 761
TOTAL EMPLOYEE TURNOVER: 371"
2022 Corporate Responsibility Report.txt,"30 30-50 Over 50 U.S. Canada America Europe Asia Bermuda
2021 228 199 n/a 138 223 91 343 21 8 70 4 6 2022 192 170 9 150 129 92 307 15 2 39 2 6
2020 152 120 n/a 88 136 55 207 14 3 49 2 4
2021 133 135 n/a 55 130 88 226 9 1 27 3 7
2019 180 157 n/a 103 180 54 258 16 0 59 0 4
2020 76 72 n/a 28 75 47 115 7 0 23 2 3
2018 152 131 n/a 101 125 59 220 19 1 39 3 3
2019 78 74 n/a 32 71 49 123 11 0 16 1 1
n/a = not available
2018 69 75 n/a 26 67 52 108 21 1 13 2 0
RATE OF EMPLOYEES HIRED1 n/a = not available
BY GENDER BY AGE BY REGION RATE OF EMPLOYEE TURNOVER1"
2022 Corporate Responsibility Report.txt,"risk scenarios evaluate the impact and financial risk relating to more extreme weather hazards
into our core business operations. caused by climate change.
In 2023 and beyond, Everest will expand its capabilities in these areas. Moving forward, we will
Invest in initiatives and resources for professional development to arm
2023-24 our people with next-generation skills, promote innovation and support be strategic in managing climate-related risks from an investment perspective and capitalize on
a talented, diverse workforce. opportunities to invest in a low-carbon future."
2022 Corporate Responsibility Report.txt,"nvest in a low-carbon future.
2 Everest Re Group, Ltd. 2022 Corporate Responsibility Report—Supplemental Disclosures 3DIVERSITY, EQUITY, AND INCLUSION
Diversity, equity and inclusion (“DEI”) is a long-term strategic priority for Everest. Our commitment New Jersey Law and Education Empowerment Project (NJ LEEP)
to DEI is both a cultural and business imperative. We prioritize building a community that spans
15 Everest employees volunteered to participate in NJ LEEP’s annual industry “Week-on-the-
cultures, backgrounds and experiences at every level, and we have grown our workforce to"
2022-23-cummins-sustainability-overview-3-24.txt,"for every
part to use less, use better, use again.
2030 and the aspiration to reach carbon neutrality
in our operations and products in-use by 2050.
6. Generate 25% less waste in facilities
and operations as a percent of revenue.
PLANET 2050 works with Destination Zero, Cummins’
strategy to reduce the greenhouse gas and air quality 7. Reuse or responsibly recycle 100%
impacts of our products, and Cummins Water Works, of packaging plastics and eliminate
single-use plastics in dining facilities,
the company’s initiative to address the global water crisis. at employee events and as amenities."
2022-23-cummins-sustainability-overview-3-24.txt,"20
20
600 15.6%
12.9 MILLION
15
400
10 10 14.4%
200 5 6% Cummins is using landscaping that requires little or
no water at facilities like the Distribution Business
0 00 segment headquarters in Indianapolis, Indiana.
2018 2020 2022 2024 2026 2028 2030 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 5
COMMUNITY HIGHLIGHTS
BUILDING STRONGER
Employee volunteering nears"
2022-23-cummins-sustainability-overview-3-24.txt,"DUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 5
COMMUNITY HIGHLIGHTS
BUILDING STRONGER
Employee volunteering nears
pre-pandemic levels.
COMMUNITIES
Strategic community
programs expand reach.
Cummins’ corporate responsibility work aims
to both build more prosperous communities People served by company grants
up for a second consecutive year
and inspire company employees. after falling during the pandemic.
To accomplish this, the company focuses on employee-led volunteerism in communities,"
2022-23-cummins-sustainability-overview-3-24.txt,"enges and make
outcomes for students, a skilled
with disabilities, immigrants and
a net-positive impact greater than our
workforce for employers and vibrant,
the LGBTQ+ community. Cummins’ engine plant in Columbus,
environmental footprint.
prosperous Cummins communities. Indiana, sponsors an annual day open to
the public to gather hard to recycle items.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 6
EMPLOYEE VOLUNTEERISM GRANT MAKING"
2022-23-cummins-sustainability-overview-3-24.txt,"ty. Cummins’ engine plant in Columbus,
environmental footprint.
prosperous Cummins communities. Indiana, sponsors an annual day open to
the public to gather hard to recycle items.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 6
EMPLOYEE VOLUNTEERISM GRANT MAKING
CONTINUES TO INCREASE
Global community giving in 2022 totaled $33.9 million.
A look at 2022 grantmaking by priority area:
COMMUNITY PROGRESS
Employee participation in Cummins’"
2022-23-cummins-sustainability-overview-3-24.txt,"nmental footprint.
prosperous Cummins communities. Indiana, sponsors an annual day open to
the public to gather hard to recycle items.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 6
EMPLOYEE VOLUNTEERISM GRANT MAKING
CONTINUES TO INCREASE
Global community giving in 2022 totaled $33.9 million.
A look at 2022 grantmaking by priority area:
COMMUNITY PROGRESS
Employee participation in Cummins’
EDUCATION
Every Employee Every Community 14%"
2022-23-cummins-sustainability-overview-3-24.txt,"employees have a long history
20 of engaging in their communities.
2018 311
2018 2019 2020 2021 2022
0 100 200 300 400 500 600INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 7
DE&I HIGHLIGHTS
Gender diversity continues steady growth.
PUTTING OUR
U.S. race and ethnicity also makes gains.
VALUES TO WORK
Women near 50% on Cummins’ top leadership team.
Cummins embraces diverse
perspectives and skills from
every employee. The company"
2022-23-cummins-sustainability-overview-3-24.txt,"ent’s focus on battery-electric,
2018 2019 2020 2021 2022 fuel cells and electrolyzers.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 11
GOVERNANCE HIGHLIGHTS
Cummins names first female CEO in 2022 and Board Chair in 2023.
Three of five company business segments led by women.
ETHICS CRITICAL
Company board develops ESG dashboard in 2022 TO CUMMINS’
to help oversee Cummins’ key ESG initiatives.
SUCCESS
Cybersecurity expands employee training in 2022"
2022-23-cummins-sustainability-overview-3-24.txt,"Y ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 11
GOVERNANCE HIGHLIGHTS
Cummins names first female CEO in 2022 and Board Chair in 2023.
Three of five company business segments led by women.
ETHICS CRITICAL
Company board develops ESG dashboard in 2022 TO CUMMINS’
to help oversee Cummins’ key ESG initiatives.
SUCCESS
Cybersecurity expands employee training in 2022
and 2023 to help guard against threats.
Ethical behavior on the part of
every board member, employee,"
2022-23-cummins-sustainability-overview-3-24.txt,"near-zero footprint
Cummins has a deep-rooted
learning environments
commitment to removing barriers
By using our employees’ skills and
for those denied access to
knowledge, we can partner with our
High-quality education leads
opportunity, including racial and
communities to address their biggest
to strong social and economic
ethnic minorities, women, people
environmental challenges and make
outcomes for students, a skilled
with disabilities, immigrants and
a net-positive impact greater than our
workforce for employers and vibrant,"
2022-23-cummins-sustainability-overview-3-24.txt,"term value for all of the company’s stakeholders.
Cummins’ commitment to forward-thinking DE&I practices
has contributed to innovation, profitability, community
impact, and gender and racial diversity within the company.
Participants in the 2023 Cummins
Black & Latino Leadership Summit
break for a little fun.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 8
GOAL DRIVEN ON OUR DE&I JOURNEY GENDER* AGE*
Cummins is steadily increasing the number of women within its ranks More than half of Cummins’ workforce"
2022-23-cummins-sustainability-overview-3-24.txt,"Leadership Summit
break for a little fun.INTRODUCTION ENVIRONMENT COMMUNITY ENGAGEMENT DIVERSITY, EQUITY AND INCLUSION INNOVATION GOVERNANCE 2022–2023 SUSTAINABILITY PROGRESS REPORT | 8
GOAL DRIVEN ON OUR DE&I JOURNEY GENDER* AGE*
Cummins is steadily increasing the number of women within its ranks More than half of Cummins’ workforce
Our goal regarding representation
globally, especially among the company’s senior leadership. was under 40 as of Dec. 31, 2022.
is to reflect the markets we serve.
Specifically, Cummins’ worldwide WOMEN IN CUMMINS WORKFORCE 2021 2022 60+ YEARS 5.9%"
2022-23-cummins-sustainability-overview-3-24.txt,"WORKFORCE 2021 2022 60+ YEARS 5.9%
gender aspirational goal is 50%, and
in the U.S., 12% and 18% for Black OVERALL 27.8% 28.3% 50–59 YEARS 15.9%
and Latino representation, respectively.
Hourly 26.9% 27.4%
40–49 YEARS 23.6%
While we have more to do, we are
Salaried / exempt 29.1% 29.3%
making progress on our journey. 30–39 YEARS 32.5%
Here are some highlights from Directors and Executive Directors 25.7% 27.2%
20–29 YEARS 21.1%
2022–2023:
Vice President and above (officers) 40% 40.7%
UNDER 20 1%
Cummins named its first NOTE: Based on workforce as of Dec. 31 in both years."
2022-23-cummins-sustainability-overview-3-24.txt,"r Black OVERALL 27.8% 28.3% 50–59 YEARS 15.9%
and Latino representation, respectively.
Hourly 26.9% 27.4%
40–49 YEARS 23.6%
While we have more to do, we are
Salaried / exempt 29.1% 29.3%
making progress on our journey. 30–39 YEARS 32.5%
Here are some highlights from Directors and Executive Directors 25.7% 27.2%
20–29 YEARS 21.1%
2022–2023:
Vice President and above (officers) 40% 40.7%
UNDER 20 1%
Cummins named its first NOTE: Based on workforce as of Dec. 31 in both years.
female Chair and CEO.
REPRESENTATION COUNTRY OF BIRTH* CUMMINS U.S. WORKFORCE*"
2022-cme-group-esg-report.txt,"2022 ENVIRONMENTAL,
SOCIAL & GOVERNANCE
REPORTTABLE OF CONTENTS
03 04 07 16 21 29 38
A Letter From About CME Group Workforce Sustainable Community Corporate Appendix
Our Chairman Empowerment Solutions Commitment Stewardship
& Chief Executive ESG at CME Group SASB Index
Officer Elevating Employee Health Innovating for a Sustainable Making an Impact in Our Advancing Business Principles"
2022-cme-group-esg-report.txt,"c list to account for emerging ESG trends and enhanced the definitions of certain
helps our clients manage risk and identify opportunities, we developed a cohesive and actionable strategic topics for clarity, the outcome of our refresh generally reinforced our six Tier 11 material topics: Business
framework that includes ESG policies, goals and reporting to help manage our own company’s risks and Ethics, Cybersecurity and Data Privacy, Talent Attraction and Retention, Innovation and Technology,
opportunities. We remain mindful of the needs of our stakeholders and steadfast in our commitment to adapt, Employee Engagement and Development and Employee Health and Well-being."
2022-cme-group-esg-report.txt,"te resources and where to make investments.
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER
2022 MATERIALITY MATRIX
ABOUT CME GROUP
Workforce Sustainable Community Corporate
Empowerment Solutions Commitment Stewardship TIER 3 TIER 2 TIER 1
WORKFORCE
Cybersecurity and Data Privacy
EMPOWERMENT
Innovation and Technology
Talent Attraction and Retention
SUSTAINABLE
SOLUTIONS
COMMUNITY
COMMITMENT
CORPORATE
STEWARDSHIP
APPENDIX
Level of Impact on CME Group's Business Success
sredlohekatS
ot
ecnatropmI
fo
leveL
Employee Engagement and Development"
2022-cme-group-esg-report.txt,"ATERIALITY MATRIX
ABOUT CME GROUP
Workforce Sustainable Community Corporate
Empowerment Solutions Commitment Stewardship TIER 3 TIER 2 TIER 1
WORKFORCE
Cybersecurity and Data Privacy
EMPOWERMENT
Innovation and Technology
Talent Attraction and Retention
SUSTAINABLE
SOLUTIONS
COMMUNITY
COMMITMENT
CORPORATE
STEWARDSHIP
APPENDIX
Level of Impact on CME Group's Business Success
sredlohekatS
ot
ecnatropmI
fo
leveL
Employee Engagement and Development
Prioritizing our material ESG topics
Business Ethics
Employee Health"
2022-cme-group-esg-report.txt,"LYNNE FITZPATRICK and MEG WRIGHT
Communications
APPENDIX Human Resources KRISTIN WOOD Client Development & Research
HILDA HARRIS PIELL JULIE WINKLER
and FRANCIE SISUL and OWAIN JOHNSON
Reporting
MEG WRIGHT
Operational Resilience Products & Services
BETHANY NETZEL DEREK SAMMANN
Facilities
and PETER KEAVEY
KEVIN LENNON
Information Security
DAN MANLEY Charitable Giving/
Government Relations
Community Relations
LINDA RICH
KRISTIN WOOD
and GAVIN PARKEWORKFORCE EMPOWERMENT | 07
WORKFORCE EMPOWERMENT
Our employees have propelled us to unparalleled success in our industry and are our most valuable asset. At CME Group, we work vigilantly to provide a rich employee"
2022-cme-group-esg-report.txt,"our people throughout their career journeys, and we focus on creating an environment where they feel fulfillment and satisfaction at the company
and in their roles.
A LETTER FROM
OUR CHAIRMAN & WORKPLACE AWARDS
CHIEF EXECUTIVE
OFFICER
Computerworld’s 100 Best Human Rights Campaign's Best American Heart Association’s
Places to Work in IT— Places to Work for LGBTQ+ Equality— Workforce Well-Being Platinum
ABOUT CME GROUP 5th consecutive year 5th consecutive year Recognition1
WORKFORCE
EMPOWERMENT
EMPLOYEE VALUE PROPOSITION"
2022-cme-group-esg-report.txt,"r career journeys, and we focus on creating an environment where they feel fulfillment and satisfaction at the company
and in their roles.
A LETTER FROM
OUR CHAIRMAN & WORKPLACE AWARDS
CHIEF EXECUTIVE
OFFICER
Computerworld’s 100 Best Human Rights Campaign's Best American Heart Association’s
Places to Work in IT— Places to Work for LGBTQ+ Equality— Workforce Well-Being Platinum
ABOUT CME GROUP 5th consecutive year 5th consecutive year Recognition1
WORKFORCE
EMPOWERMENT
EMPLOYEE VALUE PROPOSITION
Our employee value proposition illustrates what we expect from our employees and what a career at CME Group offers in return."
2022-cme-group-esg-report.txt,"risks
BE BE
GROW ACT
INSPIRED AN OWNER
our business by like an owner
by collaborating of our success
consistently striving and deliver on your
every day with a as you share in
for and achieving commitments
diverse team of our collective
excellence
leading experts achievements
1 CME Group is proud to have met American Heart Association criteria for Platinum recognition in the Association’s Workforce Well-being scorecard. See www.heart.org/workforce for more information.WORKFORCE EMPOWERMENT | 08
ELEVATING EMPLOYEE HEALTH &"
2022-cme-group-esg-report.txt,"relationship challenges and
SOLUTIONS
empowered in our work environment. much more.
Through this company-sponsored program,
COMMUNITY
COMMITMENT employees and their dependents have access to
12 free sessions with a therapist or coach, per year.
Sessions can be conducted in-person, virtually
CORPORATE
or a combination of both. Additionally, Lyra’s
STEWARDSHIP
commitment to diversity, inclusion and belonging
and culturally responsive care aligns with our
APPENDIX
values.WORKFORCE EMPOWERMENT | 09
Hosting our annual Employee Providing holistic benefits"
2022-cme-group-esg-report.txt,"ough this company-sponsored program,
COMMUNITY
COMMITMENT employees and their dependents have access to
12 free sessions with a therapist or coach, per year.
Sessions can be conducted in-person, virtually
CORPORATE
or a combination of both. Additionally, Lyra’s
STEWARDSHIP
commitment to diversity, inclusion and belonging
and culturally responsive care aligns with our
APPENDIX
values.WORKFORCE EMPOWERMENT | 09
Hosting our annual Employee Providing holistic benefits
Well-being Week
Supporting our
For our third annual Employee Well-being Week, we"
2022-cme-group-esg-report.txt,"s Top Chef Season 15
• Disability insurance and income
we are especially pleased protection
CORPORATE to offer a global mental
STEWARDSHIP
health benefit through Listed benefits reflect a high-level overview of our U.S. benefits offering but is not inclusive of all benefits
offered. CME Group provides benefits for our employees outside the U.S. that vary by region.
APPENDIX Lyra Health.
HILDA HARRIS
PIELL
Chief Human Resources
Officer
Joe Flamm, Top Chef Season 15 winner, joins CME Group during
our annual Employee Well-being Week.WORKFORCE EMPOWERMENT | 10"
2022-cme-group-esg-report.txt,"viding our
ABOUT CME GROUP
senior management and Board of Directors with regular updates on our progress.
In 2022, we filled a key role to support our D&I efforts. Our new Director of D&I works with
WORKFORCE
our Chief Human Resources Officer to support our D&I initiatives. Together, they lead our
EMPOWERMENT
D&I Council, which is a cross-functional group comprised of employees and members of our
Management Team passionate about advancing our D&I strategy, and who ensure we have the
SUSTAINABLE
right resources in place to support and grow our diverse employee population. The D&I Council"
2022-cme-group-esg-report.txt,"n their
to work, we’ve utilized the platform to host Mentoring & coaching: understanding of what it means to lead
nationwide virtual events such as a Women and seeing others have inclusively, heighten their appreciation of
SUSTAINABLE in Technology Tech Talk that showcased Extended our D&I mentoring pilot the unique role and responsibilities of a
the same opportunities
SOLUTIONS the careers of three female senior leaders program, to 90+ mentor/mentee pairs leader today and apply these learnings
in our Technology Division. sourced from our Employee Resource CME Group gave me. to create safety and trust for their teams"
2022-cme-group-esg-report.txt,"CORPORATE U.S. ETHNICITY 2022 2021
STEWARDSHIP 10%
American Indian or Native Alaskan 0.1% 0.1%
Asian 23.7% 22.8%
0%
APPENDIX
Black or African American 5.9% 6.4% 2022 2021 2022 2021 2022 2021
Hispanic or Latino 6.3% 6.2%
Native Hawaiian or other Pacific Islander 0.1% 0.1%
Female Male
White 54.7% 55.9%
Two or More Races 1.6% 1.5%
To further enhance our transparency, we have published our Equal Employment Opportunity (EEO-1) data
Not Reported 7.6% 7.0%
for the U.S. here.WORKFORCE EMPOWERMENT | 13
Encouraging connection through our employee resource groups"
2022-cme-group-esg-report.txt,"ction (2014): SEED advocates for
CAN creates a platform for employees community to contribute to the success greater environmental sustainability spend. We are committed to identifying
COMMUNITY across regions to connect, contribute of CME Group through leadership, within CME Group, helps promote our more opportunities to engage and onboard
COMMITMENT and network. The group encourages development and networking corporate social responsibility efforts additional diverse suppliers where feasible.
efforts to diversify our employee base, opportunities. and seeks ways to better manage the"
2022-cme-group-esg-report.txt,"logy (2020):
and mental abilities. LGBTQ+ topics, helping to ensure WIT is a community supporting
that CME Group is at the forefront of female information technology OF TOTAL CME GROUP SUPPLIER SPEND
recognizing, retaining and providing for employees, helping them further
its entire diverse workforce. develop their careers at the company
57
and network with colleagues of
similar interests—professionally
and personally.
CME GROUP DIVERSE SUPPLIERSWORKFORCE EMPOWERMENT | 14
ENGAGING OUR EMPLOYEES
To keep a pulse on the perspectives of our workforce, we sponsor regular employee engagement surveys and THIS YEAR’S RESULTS REVEALED THE FOLLOWING:"
2022-cme-group-esg-report.txt,"ED THE FOLLOWING:
track our performance metrics: voluntary turnover, open role placement and internal promotions. These efforts
help us identify new ways we can inspire, support and motivate our employees. AGREE THEY HAVE
THE TRAINING, FIND THE
FEEL THEIR
87% 81% RESOURCES AND 77% COMPANY’S
MANAGERS
COLLABORATION COMMUNICATIONS
ARE EFFECTIVE
A LETTER FROM 10.2% Hearing from our employees NEEDED TO DO EFFECTIVE
THEIR JOBS
OUR CHAIRMAN &
The primary avenue through which we collect
CHIEF EXECUTIVE
OFFICER employee feedback is our employee experience"
2022-cme-group-esg-report.txt,"ber of factors in their day-to-day
43.7%
experiences, with an overall engagement score
SUSTAINABLE of 72%.
SOLUTIONS
OF OPEN ROLES We value the feedback our employees provide
and prioritize being transparent about what the
FILLED WITH INTERNAL
COMMUNITY
results tell us. Detailed division and department
COMMITMENT CANDIDATES
breakdowns are shared with the appropriate
(53.5% IN 2021)
leaders so they can explore them in detail with
CORPORATE their respective teams and identify areas of
STEWARDSHIP
opportunity to increase employee engagement"
2022-cme-group-esg-report.txt,"riate
(53.5% IN 2021)
leaders so they can explore them in detail with
CORPORATE their respective teams and identify areas of
STEWARDSHIP
opportunity to increase employee engagement
with assistance from Human Resources. When
APPENDIX sharing the findings with our workforce, we
21.5% proactively present resulting actions and solutions,
particularly for areas with lower engagement or
higher turnover, to demonstrate our commitment
OF EMPLOYEES PROMOTED to listening to our employees. In doing so, we
believe we can help boost employee morale and"
2022-cme-group-esg-report.txt,"was inspiring to meet so many people from all over the world
who are dedicated to improving the prospects for our environment.
APPENDIX
CME Group’s presence demonstrates the crucial role we play in
offering price discovery and risk management for environmental
projects, whether in voluntary carbon, battery metals or bioenergy.
OWAIN JOHNSON
Managing Director of Research
and Product DevelopmentSUSTAINABLE SOLUTIONS | 19
CULTIVATING PROMOTING SUSTAINABILITY THROUGHOUT
A CULTURE OF OUR OPERATIONS
EMPLOYEE INNOVATION"
2022-cme-group-esg-report.txt,"resence demonstrates the crucial role we play in
offering price discovery and risk management for environmental
projects, whether in voluntary carbon, battery metals or bioenergy.
OWAIN JOHNSON
Managing Director of Research
and Product DevelopmentSUSTAINABLE SOLUTIONS | 19
CULTIVATING PROMOTING SUSTAINABILITY THROUGHOUT
A CULTURE OF OUR OPERATIONS
EMPLOYEE INNOVATION
TRANSFORMATION PROGRAM
We analyze climate risk exposure and assess our business resilience to anticipate, prepare for and respond
Our Employee Innovation Program"
2022-cme-group-esg-report.txt,"lly manage our impact in owned
Scope 3 emissions are the result of activities from assets CME Group spaces and work with site owners to manage
does not own or control, but indirectly impact our value chain. and reduce our environmental impact in
leased locations.
A LETTER FROM 0.8%
1.2%
OUR CHAIRMAN & 0.1% 1.3%
9.5%
CHIEF EXECUTIVE OF OUR OCCUPIED OFFICE
OFFICER 3.5% Fuel and Energy Related 87% SPACE IN BUILDINGS HAS
LEED, BREEAM OR OTHER
Business Travel (Air Flights)
SIMILAR GREEN CREDENTIALS.
ABOUT CME GROUP Employee Commuting"
2022-cme-group-esg-report.txt,"n
Scholars Program has
CORPORATE
STEWARDSHIP awarded:
APPENDIX
$2.5
MILLION
in scholarships to 69 students.
CME Group Foundation Board Member, Howard Siegel, with
a Scholar.COMMUNITY COMMITMENT | 25
STRENGTHENING OUR COMMUNITIES
THROUGH CORPORATE GIVING
Complementing the work of the CME Group Foundation, our Corporate Giving Program expands the reach of
our philanthropic efforts and community investments by engaging our workforce to contribute to programs
and causes that are meaningful to them.
A LETTER FROM Encouraging employee giving"
2022-cme-group-esg-report.txt,"PORATE GIVING
Complementing the work of the CME Group Foundation, our Corporate Giving Program expands the reach of
our philanthropic efforts and community investments by engaging our workforce to contribute to programs
and causes that are meaningful to them.
A LETTER FROM Encouraging employee giving
OUR CHAIRMAN &
CHIEF EXECUTIVE Our Matching Gift Program matches gifts to Select ERG charitable recipient organizations from
OFFICER
eligible charitable organizations of $25 or more, 2022 included:
up to $1,500 per calendar year per employee. In"
2022-cme-group-esg-report.txt,"d an Anti-Financial Crime Policy.
commitment to challenge and confront the use of
forced, compulsory, trafficked or child labor within
our organization and supply chains.CORPORATE STEWARDSHIP | 34
Bolstering compliance training Anti-harassment and
Code of Conduct
Anti-discrimination Policies
We expect our colleagues to act ethically and in line with our core values. We
reinforce these expectations with education and targeted communications.
Security Awareness and Phishing Trading Best Practices
In 2022, we provided a variety of employee-focused education programs in"
2022-cme-group-esg-report.txt,"anning, among others, which contribute to the prevention of technology incidents.
and market
disruptions INFORMATION SECURITY
Our Global Information Security Program is designed and operated to mitigate information security risks and threats to the company and operates to safeguard the confidentiality,
CORPORATE
integrity and availability of CME Group’s information and services. The program is designed to strengthen the integrity of the global markets we support, protect CME Group’s
STEWARDSHIP
information assets, maintain client and employee trust, support our pursuit of strategic objectives, contribute to shareholder value and preserve our reputation and brand."
2022-cme-group-esg-report.txt,"OUP
1 Mobile Combustion 32,297 miles 8 0.0% 8 0.0%
2 Indirect Emissions from Purchased Energy 19,574 11.8% 18,962 11.7%
WORKFORCE
EMPOWERMENT
2 Electricity 46,418,831 kWh 18,329 11.1% 17,718 10.9%
2 District Cooling (Chilled Water) 1,968,060 Ton-hours 1,245 0.7% 1,245 0.8%
SUSTAINABLE
SOLUTIONS 3 All Other Indirect Emissions 145,739 88.1% 143,120 88.2%
3 Fuel and Energy Related var. 1,221 0.7% 1,221 0.8%
COMMUNITY 3 Business Travel (Air Flights) 11,323,867 miles 1,753 1.1% 1,753 1.1%
COMMITMENT
3 Employee Commuting var. 1,882 1.1% 1,882 1.2%"
2022-cme-group-esg-report.txt,"2022 ENVIRONMENTAL,
SOCIAL & GOVERNANCE
REPORTTABLE OF CONTENTS
03 04 07 16 21 29 38
A Letter From About CME Group Workforce Sustainable Community Corporate Appendix"
2022-cme-group-esg-report.txt,"ECUTIVE OFFICER
Over the last several months, businesses have experienced
some of the biggest global shocks in recent memory. As what
were once considered to be 100-year events have become near
A LETTER FROM
OUR CHAIRMAN & everyday occurrences, we are committed to helping our clients
CHIEF EXECUTIVE
OFFICER manage through this new age of uncertainty, where effective
risk management is more important than ever. That includes
ABOUT CME GROUP
environmental, social and governance (ESG) initiatives.
WORKFORCE"
2022-cme-group-esg-report.txt,"FACTS & FIGURES COMPANY
markets, optimize portfolios and analyze data. Our exchanges offer the widest range of global benchmark
products across all major asset classes, including interest rates, equity indexes, foreign exchange, energy, ACCOLADES
A LETTER FROM agricultural products and metals.
OUR CHAIRMAN & 3,460
CHIEF EXECUTIVE
OFFICER Brand Finance’s World’s Most
EMPLOYEES
Valuable Exchange Brand
CME GROUP OFFICE LOCATIONS
(9th consecutive year)
ABOUT CME GROUP
200+ Computerworld’s 100 Best
WORKFORCE"
2022-cme-group-esg-report.txt,"d Development and Employee Health and Well-being.
advance and execute our ESG strategy.
For the first time, we are sharing the matrix map of our materiality assessment, as seen below, to illustrate
the relative prioritization of these topics. The outcome of our assessment helps us make decisions on how to
A LETTER FROM Our strategy is focused on four key pillars:
best allocate resources and where to make investments.
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER
2022 MATERIALITY MATRIX
ABOUT CME GROUP
Workforce Sustainable Community Corporate"
2022-cme-group-esg-report.txt,"we are sharing the matrix map of our materiality assessment, as seen below, to illustrate
the relative prioritization of these topics. The outcome of our assessment helps us make decisions on how to
A LETTER FROM Our strategy is focused on four key pillars:
best allocate resources and where to make investments.
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER
2022 MATERIALITY MATRIX
ABOUT CME GROUP
Workforce Sustainable Community Corporate
Empowerment Solutions Commitment Stewardship TIER 3 TIER 2 TIER 1
WORKFORCE"
2022-cme-group-esg-report.txt,"Chief Executive Officer, as well as the Executive Committee
A LETTER FROM of our Board of Directors, to keep them informed on our progress and evolution of our strategy. In addition, the
OUR CHAIRMAN &
CME Group Board has an active committee structure whereby underlying elements of our ESG program are
CHIEF EXECUTIVE
overseen by various Board committees based on each committee's role and responsibilities.
OFFICER
JONATHAN MARCUS
ABOUT CME GROUP
EXECUTIVE COMMITTEE | CME GROUP BOARD OF DIRECTORS
WORKFORCE"
2022-cme-group-esg-report.txt,"SANTO
STEWARDSHIP and LYNNE FITZPATRICK and MEG WRIGHT
Communications
APPENDIX Human Resources KRISTIN WOOD Client Development & Research
HILDA HARRIS PIELL JULIE WINKLER
and FRANCIE SISUL and OWAIN JOHNSON
Reporting
MEG WRIGHT
Operational Resilience Products & Services
BETHANY NETZEL DEREK SAMMANN
Facilities
and PETER KEAVEY
KEVIN LENNON
Information Security
DAN MANLEY Charitable Giving/
Government Relations
Community Relations
LINDA RICH
KRISTIN WOOD
and GAVIN PARKEWORKFORCE EMPOWERMENT | 07
WORKFORCE EMPOWERMENT"
2022-cme-group-esg-report.txt,"oyees have propelled us to unparalleled success in our industry and are our most valuable asset. At CME Group, we work vigilantly to provide a rich employee
experience that supports our people throughout their career journeys, and we focus on creating an environment where they feel fulfillment and satisfaction at the company
and in their roles.
A LETTER FROM
OUR CHAIRMAN & WORKPLACE AWARDS
CHIEF EXECUTIVE
OFFICER
Computerworld’s 100 Best Human Rights Campaign's Best American Heart Association’s
Places to Work in IT— Places to Work for LGBTQ+ Equality— Workforce Well-Being Platinum"
2022-cme-group-esg-report.txt,"perience that supports our people throughout their career journeys, and we focus on creating an environment where they feel fulfillment and satisfaction at the company
and in their roles.
A LETTER FROM
OUR CHAIRMAN & WORKPLACE AWARDS
CHIEF EXECUTIVE
OFFICER
Computerworld’s 100 Best Human Rights Campaign's Best American Heart Association’s
Places to Work in IT— Places to Work for LGBTQ+ Equality— Workforce Well-Being Platinum
ABOUT CME GROUP 5th consecutive year 5th consecutive year Recognition1
WORKFORCE"
2022-cme-group-esg-report.txt,"and
in global financial with challenging
STEWARDSHIP and ingenuity in drive our growth by
markets by helping work that advances
everything you do sharing knowledge
our clients world markets
with each other
APPENDIX manage risks
BE BE
GROW ACT
INSPIRED AN OWNER
our business by like an owner
by collaborating of our success
consistently striving and deliver on your
every day with a as you share in
for and achieving commitments
diverse team of our collective
excellence
leading experts achievements
1 CME Group is proud to have met American Heart Association criteria for Platinum recognition in the Association’s Workforce Well-being scorecard. See www.heart.org/workforce for more information.WORKFORCE EMPOWERMENT | 08"
2022-cme-group-esg-report.txt,"ental health benefits
CHIEF EXECUTIVE
through Lyra Health
OFFICER We continue to offer a flexible work model
for most of our employees, enabling them to We were excited to partner with Lyra Health,
ABOUT CME GROUP collaborate with their divisions and managers to a mental health provider, for the first time in
collectively set a weekly schedule of in-office and 2022. Through confidential support options,
work from home days to best serve the needs including therapy, coaching, unlimited access to
WORKFORCE"
2022-cme-group-esg-report.txt,"ted, engaged and substance abuse, relationship challenges and
SOLUTIONS
empowered in our work environment. much more.
Through this company-sponsored program,
COMMUNITY
COMMITMENT employees and their dependents have access to
12 free sessions with a therapist or coach, per year.
Sessions can be conducted in-person, virtually
CORPORATE
or a combination of both. Additionally, Lyra’s
STEWARDSHIP
commitment to diversity, inclusion and belonging
and culturally responsive care aligns with our
APPENDIX
values.WORKFORCE EMPOWERMENT | 09"
2022-cme-group-esg-report.txt,"ing mindfulness, emotional resilience, financial • Flexible work model pension plan
• Flexible spending and health
to our business. While we well-being, relationships and nutrition.
savings accounts with a • Parental leave benefits
company contribution
ABOUT CME GROUP offer many benefits to help The sessions featured prominent experts including:
• Adoption assistance
• Onsite prevention and
our colleagues take care • Paid time off
Ariadne Ducas, Founder of Kairos, which takes screening programs
WORKFORCE"
2022-cme-group-esg-report.txt,"s Top Chef Season 15
• Disability insurance and income
we are especially pleased protection
CORPORATE to offer a global mental
STEWARDSHIP
health benefit through Listed benefits reflect a high-level overview of our U.S. benefits offering but is not inclusive of all benefits
offered. CME Group provides benefits for our employees outside the U.S. that vary by region.
APPENDIX Lyra Health.
HILDA HARRIS
PIELL
Chief Human Resources
Officer
Joe Flamm, Top Chef Season 15 winner, joins CME Group during
our annual Employee Well-being Week.WORKFORCE EMPOWERMENT | 10"
2022-cme-group-esg-report.txt,"unities and
CHIEF EXECUTIVE
OFFICER representation of diverse backgrounds, races, ethnicities, genders and identities within the
workplace and in the broader marketplace. We have underscored our commitment to D&I by
incorporating it into our corporate goals, with our Chief Human Resources Officer providing our
ABOUT CME GROUP
senior management and Board of Directors with regular updates on our progress.
In 2022, we filled a key role to support our D&I efforts. Our new Director of D&I works with
WORKFORCE"
2022-cme-group-esg-report.txt,"Fellowship program offers a hands-on and experiences.
million users that specializes in sourcing
approach to developing technical skills
ABOUT CME GROUP interviewing candidates
diverse candidates with 0-5 years of Launched our “Leading Inclusively in
and focuses on promoting learning and
experience. In addition to having a company Challenging Times” training module to
career development. for those programs,
profile that highlights our business, culture help our senior leaders build on their D&I
WORKFORCE"
2022-cme-group-esg-report.txt,"disparities in our
sector and supports companies with societies
solutions on bridging the gap between
• Political polarization and heated
students, the community and tech careers.
viewpoints
In 2022, we attended the Tech Chicago
Career Fair that was geared towards
• Practical solutions on how to bring
underrepresented minorities from over
teams together
30 local universities.
In 2022, nearly 60% of our senior leaders
completed the course, and we continue
to offer it in 2023 to encourage further
participation from this group.WORKFORCE EMPOWERMENT | 12"
2022-cme-group-esg-report.txt,"ieties
solutions on bridging the gap between
• Political polarization and heated
students, the community and tech careers.
viewpoints
In 2022, we attended the Tech Chicago
Career Fair that was geared towards
• Practical solutions on how to bring
underrepresented minorities from over
teams together
30 local universities.
In 2022, nearly 60% of our senior leaders
completed the course, and we continue
to offer it in 2023 to encourage further
participation from this group.WORKFORCE EMPOWERMENT | 12
Benchmarking our global workforce"
2022-cme-group-esg-report.txt,"ap between
• Political polarization and heated
students, the community and tech careers.
viewpoints
In 2022, we attended the Tech Chicago
Career Fair that was geared towards
• Practical solutions on how to bring
underrepresented minorities from over
teams together
30 local universities.
In 2022, nearly 60% of our senior leaders
completed the course, and we continue
to offer it in 2023 to encourage further
participation from this group.WORKFORCE EMPOWERMENT | 12
Benchmarking our global workforce
A critical component of our approach to building a diverse workforce is measuring and disclosing our progress. The following provides a snapshot of our global workforce at the end of 2022 and a prior"
2022-cme-group-esg-report.txt,"y 60% of our senior leaders
completed the course, and we continue
to offer it in 2023 to encourage further
participation from this group.WORKFORCE EMPOWERMENT | 12
Benchmarking our global workforce
A critical component of our approach to building a diverse workforce is measuring and disclosing our progress. The following provides a snapshot of our global workforce at the end of 2022 and a prior
year comparison.
A LETTER FROM
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER
TOTAL EMPLOYEES SENIOR MANAGING
TOTAL WORKFORCE PEOPLE MANAGERS DIRECTORS & ABOVE"
2022-cme-group-esg-report.txt,"ther
participation from this group.WORKFORCE EMPOWERMENT | 12
Benchmarking our global workforce
A critical component of our approach to building a diverse workforce is measuring and disclosing our progress. The following provides a snapshot of our global workforce at the end of 2022 and a prior
year comparison.
A LETTER FROM
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER
TOTAL EMPLOYEES SENIOR MANAGING
TOTAL WORKFORCE PEOPLE MANAGERS DIRECTORS & ABOVE
80%
ABOUT CME GROUP
71%
70%
3,460 3,480 70% 68% 69%
WORKFORCE"
2022-cme-group-esg-report.txt,"32% 31%
30% 29%
COMMUNITY 30%
COMMITMENT
20%
CORPORATE U.S. ETHNICITY 2022 2021
STEWARDSHIP 10%
American Indian or Native Alaskan 0.1% 0.1%
Asian 23.7% 22.8%
0%
APPENDIX
Black or African American 5.9% 6.4% 2022 2021 2022 2021 2022 2021
Hispanic or Latino 6.3% 6.2%
Native Hawaiian or other Pacific Islander 0.1% 0.1%
Female Male
White 54.7% 55.9%
Two or More Races 1.6% 1.5%
To further enhance our transparency, we have published our Equal Employment Opportunity (EEO-1) data
Not Reported 7.6% 7.0%
for the U.S. here.WORKFORCE EMPOWERMENT | 13"
2022-cme-group-esg-report.txt,"Indian or Native Alaskan 0.1% 0.1%
Asian 23.7% 22.8%
0%
APPENDIX
Black or African American 5.9% 6.4% 2022 2021 2022 2021 2022 2021
Hispanic or Latino 6.3% 6.2%
Native Hawaiian or other Pacific Islander 0.1% 0.1%
Female Male
White 54.7% 55.9%
Two or More Races 1.6% 1.5%
To further enhance our transparency, we have published our Equal Employment Opportunity (EEO-1) data
Not Reported 7.6% 7.0%
for the U.S. here.WORKFORCE EMPOWERMENT | 13
Encouraging connection through our employee resource groups
To nurture our diverse workforce, we support and promote our ERGs, which are environments where employees can examine critical issues within our communities and Increasing supplier"
2022-cme-group-esg-report.txt,"EEO-1) data
Not Reported 7.6% 7.0%
for the U.S. here.WORKFORCE EMPOWERMENT | 13
Encouraging connection through our employee resource groups
To nurture our diverse workforce, we support and promote our ERGs, which are environments where employees can examine critical issues within our communities and Increasing supplier
find connection with colleagues through shared professional and personal interests. Currently, we have 11 ERGs that span various identities and backgrounds. In 2022, we
diversity
introduced our newest ERG, Differently Abled Workforce Network (DAWN), and our ERGs hosted more than 80 education, career development, wellness and volunteer"
2022-cme-group-esg-report.txt,"ervice Members & Veterans (2015):
with external diversity associations like
ABOUT CME GROUP Development (2016): BOLD strives to Wellness (2019): FLOW supports SERVE provides a forum for military
U.K. Minority Supplier Diversity Council
advance development, leadership and employees’ health, happiness and veterans and service members to build
and Women’s Business Enterprise National
career opportunities for Black employees self-worth. The group unites employees relationships, explore professional
WORKFORCE and employees of African heritage by who share a mutual passion for and development opportunities and Council to understand their resources and"
2022-cme-group-esg-report.txt,"yee base, opportunities. and seeks ways to better manage the
in addition to promoting education company’s sustainability risk.
CORPORATE around Asian culture and heritage, 2022
STEWARDSHIP and the role APAC plays in our global LAUNCH (2014): LAUNCH supports
business. employees who are early in their Women’s Initiative Network (2012):
18.5M+
career, new to CME Group or the WIN is a community supporting women
APPENDIX derivatives industry or who have a of all titles, ages and geographic locations
Differently Abled Workforce Network general interest in meeting others. that offers support, guidance, direction"
2022-cme-group-esg-report.txt,"on providing and networking.
support and awareness for CME Group
colleagues, family members and Promoting Rights, Inclusion, Diversity 2%
friends living with diverse physical & Equality (2015): PRIDE focuses on Women in Technology (2020):
and mental abilities. LGBTQ+ topics, helping to ensure WIT is a community supporting
that CME Group is at the forefront of female information technology OF TOTAL CME GROUP SUPPLIER SPEND
recognizing, retaining and providing for employees, helping them further
its entire diverse workforce. develop their careers at the company"
2022-cme-group-esg-report.txt,"logy (2020):
and mental abilities. LGBTQ+ topics, helping to ensure WIT is a community supporting
that CME Group is at the forefront of female information technology OF TOTAL CME GROUP SUPPLIER SPEND
recognizing, retaining and providing for employees, helping them further
its entire diverse workforce. develop their careers at the company
57
and network with colleagues of
similar interests—professionally
and personally.
CME GROUP DIVERSE SUPPLIERSWORKFORCE EMPOWERMENT | 14
ENGAGING OUR EMPLOYEES
To keep a pulse on the perspectives of our workforce, we sponsor regular employee engagement surveys and THIS YEAR’S RESULTS REVEALED THE FOLLOWING:"
2022-cme-group-esg-report.txt,"us identify new ways we can inspire, support and motivate our employees. AGREE THEY HAVE
THE TRAINING, FIND THE
FEEL THEIR
87% 81% RESOURCES AND 77% COMPANY’S
MANAGERS
COLLABORATION COMMUNICATIONS
ARE EFFECTIVE
A LETTER FROM 10.2% Hearing from our employees NEEDED TO DO EFFECTIVE
THEIR JOBS
OUR CHAIRMAN &
The primary avenue through which we collect
CHIEF EXECUTIVE
OFFICER employee feedback is our employee experience
VOLUNTARY TURNOVER
survey, which allows us to better understand the
BELIEVE IN
ABOUT CME GROUP (10.4% IN 2021) evolving needs of our workforce and identify 83% THE FUTURE 77% HAVE TRUST 75% FEEL"
2022-cme-group-esg-report.txt,"ees NEEDED TO DO EFFECTIVE
THEIR JOBS
OUR CHAIRMAN &
The primary avenue through which we collect
CHIEF EXECUTIVE
OFFICER employee feedback is our employee experience
VOLUNTARY TURNOVER
survey, which allows us to better understand the
BELIEVE IN
ABOUT CME GROUP (10.4% IN 2021) evolving needs of our workforce and identify 83% THE FUTURE 77% HAVE TRUST 75% FEEL
IN DIVISIONAL
opportunities to help bridge the gap. Our 2022 OF THE VALUED
LEADERSHIP
survey achieved a 79% participation rate and COMPANY
WORKFORCE indicated that our employees feel positively"
2022-cme-group-esg-report.txt,"SUSTAINABLE of 72%.
SOLUTIONS
OF OPEN ROLES We value the feedback our employees provide
and prioritize being transparent about what the
FILLED WITH INTERNAL
COMMUNITY
results tell us. Detailed division and department
COMMITMENT CANDIDATES
breakdowns are shared with the appropriate
(53.5% IN 2021)
leaders so they can explore them in detail with
CORPORATE their respective teams and identify areas of
STEWARDSHIP
opportunity to increase employee engagement
with assistance from Human Resources. When
APPENDIX sharing the findings with our workforce, we"
2022-cme-group-esg-report.txt,"il with
CORPORATE their respective teams and identify areas of
STEWARDSHIP
opportunity to increase employee engagement
with assistance from Human Resources. When
APPENDIX sharing the findings with our workforce, we
21.5% proactively present resulting actions and solutions,
particularly for areas with lower engagement or
higher turnover, to demonstrate our commitment
OF EMPLOYEES PROMOTED to listening to our employees. In doing so, we
believe we can help boost employee morale and
(11.6% IN 2021)
contribute to a more open and transparent culture.WORKFORCE EMPOWERMENT | 15"
2022-cme-group-esg-report.txt,"portunity to increase employee engagement
with assistance from Human Resources. When
APPENDIX sharing the findings with our workforce, we
21.5% proactively present resulting actions and solutions,
particularly for areas with lower engagement or
higher turnover, to demonstrate our commitment
OF EMPLOYEES PROMOTED to listening to our employees. In doing so, we
believe we can help boost employee morale and
(11.6% IN 2021)
contribute to a more open and transparent culture.WORKFORCE EMPOWERMENT | 15
Managing workforce performance Partnering with Google Cloud"
2022-cme-group-esg-report.txt,"ce goals from our performance review process, challenge but also a shift to a new product operating
we provide a variety of avenues to grow their expertise beyond their regular work responsibilities and model that will bring our business and technology
collaborate with industry-leading experts. teams closer together to focus on delivering new
ABOUT CME GROUP
value and efficiencies to our clients. Through this
Examples of these offerings include:
partnership, we can tap into Google’s engineering
WORKFORCE teams and culture of innovation to enhance our own"
2022-cme-group-esg-report.txt,"orporates sustainability and ESG
considerations, we continue to innovate to meet these emerging needs and the diverse business goals of our
A LETTER FROM
OUR CHAIRMAN & global client base.
CHIEF EXECUTIVE
OFFICER In 2022, we continued to expand our products and services to provide new environmental offerings:
ABOUT CME GROUP
Our E-mini S&P 500 ESG futures set new records in 2022, with volumes 47% higher
year-over-year and open interest up 12%, reinforcing its position as one of the world's most
WORKFORCE widely used ESG equity futures contracts."
2022-cme-group-esg-report.txt,"issions Offset (GEO) futures, the first standardized
contract for carbon offsets across multiple project types and geographies, and Nature-Based Global Emissions Offset (N-GEO) futures, which relates to agricultural, opportunities as different
A LETTER FROM
forestry and other land-use projects.
OUR CHAIRMAN & entities and governments
CHIEF EXECUTIVE
OFFICER adapt to rapid changes
in policy, technology and
OFFSETS TRADING & DELIVERY
ABOUT CME GROUP
consumer preferences.
CME Group is committed to
WORKFORCE"
2022-cme-group-esg-report.txt,"ubgroup
OUR CHAIRMAN &
Sustainable Stock Exchanges (SSE), an initiative
CHIEF EXECUTIVE The International Regulatory Strategy
OFFICER to build the capacity of stock exchanges and
Group’s ESG Workstream
securities market regulators to promote responsible
investment in sustainable development. The Taskforce on Scaling Voluntary Carbon
ABOUT CME GROUP
Markets
In 2022, our Managing Director of Research and
The International Organization of Securities
Product Development, Owain Johnson, participated
WORKFORCE"
2022-cme-group-esg-report.txt,"hods. For our full 2022 GHG Inventory, see the Appendix.
and inventive thinking around how to create of 80 new patents with awards made
CHIEF EXECUTIVE
OFFICER additional value for our clients and business. under our innovation program totaling
more than $270,000.
Engaging colleagues across all levels, departments
ABOUT CME GROUP and functions of our organization, the focus of
80
the Lab remains on differentiating CME Group by
GLOBAL GHG EMISSIONS1
keeping a pulse on market needs and responding
WORKFORCE"
2022-cme-group-esg-report.txt,"rk with site owners to manage
does not own or control, but indirectly impact our value chain. and reduce our environmental impact in
leased locations.
A LETTER FROM 0.8%
1.2%
OUR CHAIRMAN & 0.1% 1.3%
9.5%
CHIEF EXECUTIVE OF OUR OCCUPIED OFFICE
OFFICER 3.5% Fuel and Energy Related 87% SPACE IN BUILDINGS HAS
LEED, BREEAM OR OTHER
Business Travel (Air Flights)
SIMILAR GREEN CREDENTIALS.
ABOUT CME GROUP Employee Commuting
17.4% Purchased Goods and Services
66.2%
OF OUR OCCUPIED OFFICE
Capital Goods
WORKFORCE SPACE HAS COMPOSTING"
2022-cme-group-esg-report.txt,"resources to empower to support causes they care about in their
OFFICER future generations through education, communities, and also includes our annual Program include:
equipping today’s students for charitable support of St. Jude Children’s
MILLION
Funded the initial installment of our $1 million
tomorrow’s challenges. Research Hospital through the CME Group
ABOUT CME GROUP in total giving
five-year commitment to The Obama Foundation
Tour Championship.
to support programming for Chicago youth.
WORKFORCE"
2022-cme-group-esg-report.txt,"o the George W. Bush Foundation
for research on school leadership and its impact
on schools.
CORPORATE
THOUSAND
STEWARDSHIP
Contributed nearly $300,000 in matching gifts to in matching gifts
charities around the world.
APPENDIX
340
PAID DAYS OFF
utilized by employees for
volunteering
CME Group Bangalore employees volunteering.COMMUNITY COMMITMENT | 22
EMPOWERING YOUTH THROUGH THE
CME GROUP FOUNDATION
Overall, the CME Group Foundation allocated the following across its giving priorities in 2022:
The CME Group Foundation contributes to the creation of a workforce for the future that is equipped with"
2022-cme-group-esg-report.txt,"ull potential and keep pace with dramatically evolving technology.
Specifically, the CME Group Foundation is focused on the following priorities: $1.80 $1.80
A LETTER FROM
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER Helping students from low-income families succeed in college and their careers. MILLION MILLION
Higher education, college K-12 education
and career success
ABOUT CME GROUP Ensuring children who are typically underrepresented in STEM have access to programs and
resources in STEM pathways.
WORKFORCE"
2022-cme-group-esg-report.txt,"Impact
Early Childhood Education
A LETTER FROM
Something Good in Englewood/Little Angels
OUR CHAIRMAN & $75,000 One year to provide mental health support to preschoolers and their families
Learning Center
CHIEF EXECUTIVE
OFFICER
One year to build early childhood educator pipelines, focused on English
Latino Policy Reform $100,000
learners and bilingual students
ABOUT CME GROUP
Over two years for a research study on the impact of Chicago’s universal
Northwestern University $150,000
pre-K rollout
WORKFORCE"
2022-cme-group-esg-report.txt,"-time jobs at CME Group upon graduation. In 2022, a number of the CME Group
OFFICER
Foundation Scholars participated in our internship program. Additionally, four Scholars were hired into full-
time roles within the company.
ABOUT CME GROUP
Our employees also play a tremendous role in the Foundation Scholars Program by reviewing applications for AIAH RADWAN
potential Scholars, speaking on panels for the Scholars, holding resume review workshops and more. CME Group Foundation Scholar, University
WORKFORCE of Illinois Urbana-Champaign, Class of ’23"
2022-cme-group-esg-report.txt,"nt
practices aligned with our diversity and inclusion objectives.
SUSTAINABLE
SOLUTIONS
Since 2019, the
COMMUNITY
COMMITMENT
CME Group Foundation
Scholars Program has
CORPORATE
STEWARDSHIP awarded:
APPENDIX
$2.5
MILLION
in scholarships to 69 students.
CME Group Foundation Board Member, Howard Siegel, with
a Scholar.COMMUNITY COMMITMENT | 25
STRENGTHENING OUR COMMUNITIES
THROUGH CORPORATE GIVING
Complementing the work of the CME Group Foundation, our Corporate Giving Program expands the reach of
our philanthropic efforts and community investments by engaging our workforce to contribute to programs"
2022-cme-group-esg-report.txt,"ROM Encouraging employee giving
OUR CHAIRMAN &
CHIEF EXECUTIVE Our Matching Gift Program matches gifts to Select ERG charitable recipient organizations from
OFFICER
eligible charitable organizations of $25 or more, 2022 included:
up to $1,500 per calendar year per employee. In
Action Mental Health Mujeres Latinas en
ABOUT CME GROUP 2022, we contributed nearly $300,000 in matching
Acción
gifts across the global communities where we live
Boys and Girls Club
and work. of Chicago Tragedy Assistance
WORKFORCE"
2022-cme-group-esg-report.txt,"lamp making and rangoli (floor art) competitions for over 100 children at a
re-engage with their local communities in the following ways:
government school.
A LETTER FROM
OUR CHAIRMAN &
Belfast: Employees partnered with the Action for Children annual toy drive to provide gifts for low-income children and their
CHIEF EXECUTIVE
OFFICER families in the U.K.
ABOUT CME GROUP
Chicago: Employees spent afternoons sorting food donations for Nourishing Hope, an organization focused on eliminating hunger
WORKFORCE"
2022-cme-group-esg-report.txt,"major at one
Through our support of women in business and women in sports, our tournament rewards world-class golfers of the Chicago Star Scholarship Program colleges We are grateful for
ABOUT CME GROUP
while also creating more equity within the sport. We are honored to recognize St. Jude for the critical work or universities. All award recipients must be recent
their partnership and
they do every day to save lives and ensure brighter futures. graduates from the City Colleges of Chicago with a
WORKFORCE cumulative GPA of 3.0 or higher. The Star Scholarship shared mission that"
2022-cme-group-esg-report.txt,"riculum for a wide variety of audiences. The goal of the site is
A LETTER FROM to make financial education an engaging experience for anyone, regardless of how well versed they are
OUR CHAIRMAN &
in finance.
CHIEF EXECUTIVE
OFFICER
In addition to Futures Fundamentals, we offer the Econ Essentials program, a collaboration between Futures
Fundamentals and Discovery Education that provides teachers with resources to explain basic economic
ABOUT CME GROUP principles through real-world applications.
WORKFORCE"
2022-cme-group-esg-report.txt,"erve our clients
and conduct ourselves every day. By aligning our
governance approach with best practices, we
are able to strengthen board and management
A LETTER FROM
OUR CHAIRMAN & accountability, promote long-term shareholder
CHIEF EXECUTIVE value and sustain continued success. We are
OFFICER
proud of the trust we have built with our clients,
employees, regulators and shareholders globally—
ABOUT CME GROUP a trust that is maintained by operating our business
according to our five key values:
WORKFORCE"
2022-cme-group-esg-report.txt,"two
ability to create long-
directors retiring. These directors bring gender and racial diversity to the Board, with combined experience in global financial services, public policy, audit, ESG and
term value. We continue cybersecurity-related matters.
to make diversity in
A LETTER FROM
OUR CHAIRMAN &
background, experience
CHIEF EXECUTIVE
OFFICER
and identity a priority in
OUR BOARD AT A GLANCE (2022) BOARD QUALIFICATIONS AND EXPERIENCES
our searches for director
ABOUT CME GROUP
candidates.
11
WORKFORCE"
2022-cme-group-esg-report.txt,"sk Our Nominating and Governance Committee is
practices throughout the organization.
OFFICER Committee tasked with reviewing, assessing and responsible for assisting the Board in overseeing the
providing oversight of our overall risk management Furthermore, we use the three lines of defense succession planning process and our Compensation
ABOUT CME GROUP practices, including approving the ERM framework model (management, risk and compliance functions Committee is regularly updated on key talent
and risk universe. The Risk Committee also assists and internal audit) to manage and mitigate our indicators for the overall workforce, including"
2022-cme-group-esg-report.txt,"n planning process and our Compensation
ABOUT CME GROUP practices, including approving the ERM framework model (management, risk and compliance functions Committee is regularly updated on key talent
and risk universe. The Risk Committee also assists and internal audit) to manage and mitigate our indicators for the overall workforce, including
the full Board in its oversight of the effectiveness of enterprise risk. Key risk owners, including the Chief voluntary attrition, engagement, performance
WORKFORCE"
2022-cme-group-esg-report.txt,"Key
OUR CHAIRMAN &
elements of the program include written policies and procedures, risk assessments, monitoring, education
CHIEF EXECUTIVE
OFFICER and communications. It is led by our Managing Director, Chief Enterprise Risk Management and Compliance
Officer and supported by a cross-functional team of senior leaders with oversight by the Risk Committee.
External compliance and legal experts are also regularly consulted.
ABOUT CME GROUP
Upholding our Code of Conduct Promoting a speak up culture
WORKFORCE"
2022-cme-group-esg-report.txt,"operate.
of equality and opportunity guide us in the way we is provided to applicable colleagues in accordance without exception, regardless of local business
ABOUT CME GROUP treat each other, as well as the way we work with with regulatory requirements. culture or practice. It also means that we compete
Ability to Organize
our clients and other stakeholders. hard, but fairly, and in accordance with all
Rulebooks for our futures and options on futures
applicable antitrust and competition laws.
WORKFORCE We must continually draw upon our resources to"
2022-cme-group-esg-report.txt,"ur core values. We
reinforce these expectations with education and targeted communications.
Security Awareness and Phishing Trading Best Practices
In 2022, we provided a variety of employee-focused education programs in
A LETTER FROM the following areas with assignments based on an individual’s role within the
OUR CHAIRMAN &
organization: Speaking Up Global Anti-money Laundering
CHIEF EXECUTIVE
OFFICER
Gift and Entertainment Policy and Global
EU Market Abuse
ABOUT CME GROUP Marketing Guidelines
WORKFORCE"
2022-cme-group-esg-report.txt,"d health data as we supported reopening our offices and applicable vaccination and testing
Our Board and Risk Committee receive regular updates and education from our Chief Information Security
requirements. Our privacy program is subject to periodic internal audits and external assessments.
ABOUT CME GROUP Officer regarding the activities and effectiveness of the GIS Program.
For more information on our cybersecurity and data privacy efforts, see our Confidentiality and Data
Protection Policy.
WORKFORCE"
2022-cme-group-esg-report.txt,"y advocacy and educational initiatives.
Analysis and Resilience Center International Organization of Securities
Commissions’ Affiliate Members Consultative
A LETTER FROM Committee (IOSCO)
Clearing House and Exchange Forum
OUR CHAIRMAN &
CHIEF EXECUTIVE
OFFICER Managed Funds Association (MFA)
Commodity Markets Council (CMC)
Overseas Security Advisory Council
ABOUT CME GROUP Electronic Debt Markets Association Europe
Securities Industry Financial Markets
Financial Services Information Sharing and
WORKFORCE"
2022-cme-group-esg-report.txt,"omy and healthy capital markets.
Insurance-Based Investment Products (PRIIPs) regulation. With that in mind, we have created a suite of Key
A LETTER FROM
OUR CHAIRMAN & See our Policy Engagement Statement for more information. Information Documents—called KIDs—which cover certain products. KIDs provide the product information
CHIEF EXECUTIVE required by law to help clients understand the nature, risks, costs and potential gains of the product, and
OFFICER compare it with others.
ABOUT CME GROUP
WORKFORCE"
2022-cme-group-esg-report.txt,"ces for our clients’ evolving risk management needs, including the increasing focus on ESG information and services. As a global
ABOUT CME GROUP companies to
business operating in a complex environment, we understand the importance of developing both innovative and sustainable business solutions.
publicly disclose
environmental, Our ESG-related contracts and services are designed to help global customers manage price risk in today’s energy, metals and agricultural ecosystems as they develop new
WORKFORCE social, and technologies and other initiatives to meet market movement towards alternative sources of cleaner energy and sustainable agriculture. We are continuously in conversations with"
2022-cme-group-esg-report.txt,"up and Class B members
CHIEF EXECUTIVE associated with
of CBOT, allege breach of contract and breach of implied covenant of good faith and fair dealing for violations of their core rights granted in the defendants’ respective Certificate
OFFICER fraud, insider
of Incorporation. Based on investigation to date, the company believes that it has strong factual and legal defenses to the claims.
trading, anti-trust,
anti-competitive
ABOUT CME GROUP
behavior, market
manipulation,
malpractice, or other
WORKFORCE"
2022-cme-group-esg-report.txt,"to the Code of Conduct and the Conflicts of Interest Policy on an annual basis. CME Group Board members are subject to the Board of Directors Code
of Ethics, which requires that Board members avoid any circumstance that creates or appears to create a conflict between a Board member’s own interests and the interests of the
company. The Nominating and Governance Committee is responsible for compliance with the Board of Directors Code of Ethics. Board members must certify to this Code of Ethics on
WORKFORCE an annual basis."
2022-cme-group-esg-report.txt,"ription CME Group Response
Managing Business Continuity & Technology Risks
FN-EX-550a.1 (1) Number of During 2022, CME Group’s markets did not have any significant market disruptions.
significant market
disruptions and
A LETTER FROM
OUR CHAIRMAN & (2) duration of
CHIEF EXECUTIVE downtime
OFFICER
FN-EX-550a.2 (1) Number of No material data breaches that required reporting under data privacy laws occurred during 2022.
data breaches,
ABOUT CME GROUP
(2) percentage
involving personally
identifiable
WORKFORCE"
2022-cme-group-esg-report.txt,"gence feeds allowing the company to efficiently manage, quickly
investigate and respond to cybersecurity events. CME Group’s Global Information Security team conducts analysis and collaborates to effectively prevent, detect and respond to any
ABOUT CME GROUP
systemic events that might threaten our industry or the economy.
The Information Security program is led by CME Group’s Chief Information Security Officer (CISO) who reports to our Chief Information Officer, a member of our Management Team.
WORKFORCE"
2022-cme-group-esg-report.txt,"e. The TPRM Program coordinates with Procurement, Legal, Information Security, Information Governance and Privacy and OpRes teams, allowing our contracts
and vendor renewals to align to our risk management posture, provide adequate assurance and meet regulatory requirements. The OpRes team works with TPRM to help provide
assurances that third-party vendors impacting our critical operations have business continuity and disaster recovery plans to minimize service interruptions and control issues,
WORKFORCE whenever unforeseen disturbances arise involving a third party’s operation."
2022-cme-group-esg-report.txt,"ode Description CME Group Response
Activity Measures
FN-EX-000.A Average daily volume FUTURES AND OPTIONS ON FUTURES CONTRACTS (in thousands)
traded, by product or The following summarizes average daily contract volume for 2022.
asset class
A LETTER FROM
Aggregate Average Daily Volume: 23,291
OUR CHAIRMAN &
CHIEF EXECUTIVE Average Daily Volume by Product Line:
OFFICER
Interest rates: 10,818
Equity indexes: 7,650
ABOUT CME GROUP Foreign exchange: 987
Agricultural commodities: 1,289
Energy: 2,026
WORKFORCE Metals: 521"
2022-cme-group-esg-report.txt,"Scope and Category
Emissions % of Total Emissions % of Total
Scope Category Total Usage Units
A LETTER FROM (MT CO2e)—Location (Scopes 1 + 2 + 3) (MT CO2e)—Market (Scopes 1 + 2 + 3)
OUR CHAIRMAN &
CHIEF EXECUTIVE 1 Direct Emissions from Owned of Controlled Sources 134 0.1% 134 0.1%
OFFICER
1 Natural Gas 692,215 kWh 125 0.1% 125 0.1%
1 Diesel 3,448 kWh 1 0.0% 1 0.0%
ABOUT CME GROUP
1 Mobile Combustion 32,297 miles 8 0.0% 8 0.0%
2 Indirect Emissions from Purchased Energy 19,574 11.8% 18,962 11.7%
WORKFORCE"
2022_ESG_Report-fastenal.txt,"Forward Looking About This
GRI Index SASB Index TCFD Index SDG Index
Statements Report
Occupational Health and Safety
Occupational health and safety ISO 45001:2018 Certificate
403-1 Occupational Health and Safety
management system People (Social): Health & Safety
Hazard identification, risk
403-2 Occupational Health and Safety assessment, and incident People (Social): Health & Safety
investigation
403-3 Occupational Health and Safety Occupational health services People (Social): Health & Safety
Worker participation,"
2022_ESG_Report-fastenal.txt,":2018 Certificate
403-1 Occupational Health and Safety
management system People (Social): Health & Safety
Hazard identification, risk
403-2 Occupational Health and Safety assessment, and incident People (Social): Health & Safety
investigation
403-3 Occupational Health and Safety Occupational health services People (Social): Health & Safety
Worker participation,
consultation, and
403-4 Occupational Health and Safety People (Social): Health & Safety
communication on occupational
health and safety
Worker training on occupational"
2022_ESG_Report-fastenal.txt,"ication, risk
403-2 Occupational Health and Safety assessment, and incident People (Social): Health & Safety
investigation
403-3 Occupational Health and Safety Occupational health services People (Social): Health & Safety
Worker participation,
consultation, and
403-4 Occupational Health and Safety People (Social): Health & Safety
communication on occupational
health and safety
Worker training on occupational
403-5 Occupational Health and Safety People (Social): Health & Safety
health and safety
403-6 Occupational Health and Safety Promotion of worker health People (Social): Health & Safety"
2022_ESG_Report-fastenal.txt,"uild a dedicated ESG team. Their responsibilities taking time to learn about Fastenal's ESG progress
specifics are important – they bring structure and encompass five main areas: in 2021. Our ""Blue Team"" is working hard to be a
rigor to our efforts – but it’s also important to step force for positive change – in our business, for our
1. Expand benchmark reporting to incorporate
back and appreciate the big picture. We are an customers, and across global supply chains – and
additional frameworks.
organization that prioritizes employee development, we're proud to share their story."
2022_ESG_Report-fastenal.txt,"continuity of supply
improve communities and the planet. naturally aligns with the environmental for our strategic partners even in times
Because we believe in human potential priorities of our stakeholders. It starts with of global disruption. But we don’t just
(versus fixed talents), we invest in our own span of the supply chain, where help organizations keep running. We
career-long learning resources for every structural changes in our physical footprint help them move forward with solutions
employee. We empower them to make and our use of vehicle fuel have led to to drive their most important business"
2022_ESG_Report-fastenal.txt,"inable.
leaders in our organization. to continue the journey.
4OOuurr EESSGG Sustainability
Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
Fastenal at a Glance: Key Stats Regarding Our Global Business in 2021
20,507 627,000 520+
People Employees Fastenal School of Business Highly-Trained Specialists
71% directly serve our customers Trainings Completed engineering, safety, Lean Six
17 hours of training per FT employee and 9 Sigma, metalworking, construction,"
2022_ESG_Report-fastenal.txt,"ustainability
Governance People Planet Appendix / 2022 ESG Report
JJoouurrnneeyy Solutions
Our Inaugural The Values Behind Fastenal at a
Who We Are
ESG Report Our Vision Glance
Fastenal at a Glance: Key Stats Regarding Our Global Business in 2021
20,507 627,000 520+
People Employees Fastenal School of Business Highly-Trained Specialists
71% directly serve our customers Trainings Completed engineering, safety, Lean Six
17 hours of training per FT employee and 9 Sigma, metalworking, construction,
hours of training per PT employee (on average) solutions, national accounts"
2022_ESG_Report-fastenal.txt,"o become, and maintain good standing as, a supplier to Fastenal for any supplied material
or service. We evaluate suppliers’ compliance with these standards in determining whether to grant or continue preferred status. Suppliers that do not
comply with our code of conduct may be disqualified from preferred status and/or have their business relationship with Fastenal terminated. To learn
about our supplier terms and code of conduct, visit Fastenal’s Legal Information page.
Policies and Trainings
New employee orientation includes a review and acceptance of our policies and procedures guide as well as standards of conduct that include applicable"
2022_ESG_Report-fastenal.txt,"dards in determining whether to grant or continue preferred status. Suppliers that do not
comply with our code of conduct may be disqualified from preferred status and/or have their business relationship with Fastenal terminated. To learn
about our supplier terms and code of conduct, visit Fastenal’s Legal Information page.
Policies and Trainings
New employee orientation includes a review and acceptance of our policies and procedures guide as well as standards of conduct that include applicable
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cyber security, and employee health and safety."
2022_ESG_Report-fastenal.txt,"/or have their business relationship with Fastenal terminated. To learn
about our supplier terms and code of conduct, visit Fastenal’s Legal Information page.
Policies and Trainings
New employee orientation includes a review and acceptance of our policies and procedures guide as well as standards of conduct that include applicable
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cyber security, and employee health and safety.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development, including training focused"
2022_ESG_Report-fastenal.txt,"ion page.
Policies and Trainings
New employee orientation includes a review and acceptance of our policies and procedures guide as well as standards of conduct that include applicable
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cyber security, and employee health and safety.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development, including training focused
on the environment, ethics, and labor and human rights. Below is a summary of employee participation in trainings related to these topics in 2021."
2022_ESG_Report-fastenal.txt,"with their peers, and immediate application of skills, but they’re able to do so with
a much more focused and flexible time commitment. Our virtual training expansion has coincided with an
acceleration in training participation. Put another way, employees are gaining skills and knowledge earlier
in their careers and at a faster pace over time. There’s also an environmental benefit: A higher proportion of
virtual (versus classroom) instruction translates to less business travel.
Virtual Training
Role-specific training plans have been developed to help each employee focus on the knowledge and skills"
2022_ESG_Report-fastenal.txt,"luence, and emotional intelligence, our leaders become more confident
and skilled in creating an inclusive environment of growth for their teams.
1199Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Workplace Health & Safety
We’ve taken a multi-faceted approach to safety that helps us understand and reduce hazards in
our business. Trainings, audits, inspections, risk assessments, safety coaching, and employee"
2022_ESG_Report-fastenal.txt,"an inclusive environment of growth for their teams.
1199Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Workplace Health & Safety
We’ve taken a multi-faceted approach to safety that helps us understand and reduce hazards in
our business. Trainings, audits, inspections, risk assessments, safety coaching, and employee
engagement are all programs that help us consistently manage our facility and employee safety."
2022_ESG_Report-fastenal.txt,"nderstand and reduce hazards in
our business. Trainings, audits, inspections, risk assessments, safety coaching, and employee
engagement are all programs that help us consistently manage our facility and employee safety.
Our internal scorecard system and safety management system are designed to help us maintain
focus on a variety of risks while we sustain an inclusive safety environment that contributes to
innovation and improved performance. We continue to expand and evolve our safety programs
to better meet our employee needs and workplace conditions as our business grows."
2022_ESG_Report-fastenal.txt,"s to improve air purity. Additional days
of leave were provided for full-time and part-time employees to cope with the health and family impacts of Covid-19. Our Business Continuity team
maintained regular communication regarding the impacts of the pandemic as well as the necessary steps to adhere to health and safety protocols
and procedures. And Fastenal continued to work with customers to maintain continuity of service while meeting their specific health and safety
requirements.
Our Approach
Proactive employee engagement is the key to Fastenal’s safety culture. Programs such as job safety observations, near-miss reporting, toolbox talks,"
2022_ESG_Report-fastenal.txt,"ovid-19. Our Business Continuity team
maintained regular communication regarding the impacts of the pandemic as well as the necessary steps to adhere to health and safety protocols
and procedures. And Fastenal continued to work with customers to maintain continuity of service while meeting their specific health and safety
requirements.
Our Approach
Proactive employee engagement is the key to Fastenal’s safety culture. Programs such as job safety observations, near-miss reporting, toolbox talks,
and trainings promote employee engagement and participation. A prime example: Our near-miss program incentivizes employees to report potential"
2022_ESG_Report-fastenal.txt,"adhere to health and safety protocols
and procedures. And Fastenal continued to work with customers to maintain continuity of service while meeting their specific health and safety
requirements.
Our Approach
Proactive employee engagement is the key to Fastenal’s safety culture. Programs such as job safety observations, near-miss reporting, toolbox talks,
and trainings promote employee engagement and participation. A prime example: Our near-miss program incentivizes employees to report potential
hazards to management before they lead to injury-related incidents. In 2021, there was a 31.7% increase in employee participation in the near-miss"
2022_ESG_Report-fastenal.txt,"epaca ntn ielya s-g otne o-r t h. yeP oirh -upo art n o dineg mbra icop -rxeh s,e p sr oi: n gsL enu k ue p S hh ear rr ee .tt/Bloomberg 1/7 effective Covid-19 response. the top 22 companies in our peer group. Management Technical Committee.
Go to Safety Solutions
2200Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Proactive Employee Engagement"
2022_ESG_Report-fastenal.txt,"t h. yeP oirh -upo art n o dineg mbra icop -rxeh s,e p sr oi: n gsL enu k ue p S hh ear rr ee .tt/Bloomberg 1/7 effective Covid-19 response. the top 22 companies in our peer group. Management Technical Committee.
Go to Safety Solutions
2200Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
Proactive Employee Engagement
In keeping with our people-centered culture, we believe employee participation and feedback are central to workplace safety. 100% of our large (non-"
2022_ESG_Report-fastenal.txt,"ent
Proactive Employee Engagement
In keeping with our people-centered culture, we believe employee participation and feedback are central to workplace safety. 100% of our large (non-
branch) facilities have formed EHS committees and first response teams made up of local personnel. In all, these committees include hundreds of
employees ranging from new part-time employees to tenured full-time leads.
In addition, more than 2,700 North American locations participated in regular monthly assessments
of work practices, workplace conditions (hazard identification), employee onboarding, safe driving,"
2022_ESG_Report-fastenal.txt,"employees ranging from new part-time employees to tenured full-time leads.
In addition, more than 2,700 North American locations participated in regular monthly assessments
of work practices, workplace conditions (hazard identification), employee onboarding, safe driving,
In 2021, the most
emergency preparedness, and housekeeping, among other areas of focus. This process also gives
employees an opportunity to provide feedback and ask questions specific to their facilities. recent year for which
In 2021, the EHS & Sustainability team focused on improving employee engagement through this figure has been"
2022_ESG_Report-fastenal.txt,"es and incidents, and reinforce best American operations).
practices.
Occupational Health and Safety Management Systems
In 2021, Fastenal started the process to attain third-party certification to the ISO 45001: 2018
Occupational Health and Safety Management System (and we went on to achieve this certification in 2022). Working within this best practices
framework, we collaborate across the organization to continually learn, adapt, and improve. Our EHS Management System team helps determine EHS
objectives, and employee representatives from various aspects of the business participate in our EHS Management System annual team meeting to"
2022_ESG_Report-fastenal.txt,"compromising quality or safety).
38Our ESG SSuussttaaiinnaabbiilliittyy
Governance People Planet Appendix / 2022 ESG Report
Journey SSoolluuttiioonnss
Our Green Safety
Category Industrial Total Cost of FMI Tool Tool & Cutter Recycling Supplier Global Supply Chain
Sustainability E Products S Specialist G eCommerce
Management Services Ownership Technology Repair Grinding Programs Diversity Sourcing Resiliency
Solutions Program Program
Total Cost of Ownership
Case Study:
Gorman-Rupp
(TCO) Analysis
Reducing Waste, Boosting Employee Morale"
2022_ESG_Report-fastenal.txt,"there are green benefits as well. For example, through our
inventory management service, we’re able to reduce stocking
levels in customer facilities by an average of 29%*. This represents
direct resource reduction. It also frees up productive space in
the customer’s building, forestalling the need for expansion (and
accompanying resource consumption). Consolidating vendors
leads to fewer and larger shipments, which can reduce the use Fastenal invested in this partnership with a dedicated Onsite
of fuel and packaging material. Perhaps the most direct impact is stocking location, a tenured employee to manage the supply"
2022_ESG_Report-fastenal.txt,"on
Remote Inventory Monitoring Access Controls
The devices are equipped with sensing technologies to Several of our devices allow organizations to set role-
digitally report the current inventory level in each stocking specific controls so their employees only have access
location. This eliminates the need for Fastenal employees to products relevant to their jobs (not to all the products
to drive to customer sites in order to visually check in the device). Managers can also set frequency limits
their inventory status. Further upstream, it allows our so that, for example, an employee can only dispense a"
2022_ESG_Report-fastenal.txt,"consumption. user, helping to prevent loss and theft. The devices can
also be integrated with a Fastenal industrial services
program to refurbish (rather than replace) tools.
Usage Traceability
Each dispensed item can be traced to a person, place,
time, and cost center. This reporting fosters a culture of
accountability and illuminates opportunities to reduce
Go to FMI Technology
future consumption (for example, by switching to a longer-
lasting glove, or by providing additional training to an
employee who is over-using a certain tool)."
2022_ESG_Report-fastenal.txt,"ety
impacts directly linked by
business relationships
Workers covered by an
403-8 Occupational Health and Safety occupational health and safety People (Social): Health & Safety
management system
403-9 Occupational Health and Safety Work-related injuries People (Social): Health & Safety
403-10 Occupational Health and Safety Work-related ill health People (Social): Health & Safety
Training and Education
Average hours of training per
404-1 Training and Education People: Fastenal School of Business
year per employee"
2022_ESG_Report-fastenal.txt,"elationships
Workers covered by an
403-8 Occupational Health and Safety occupational health and safety People (Social): Health & Safety
management system
403-9 Occupational Health and Safety Work-related injuries People (Social): Health & Safety
403-10 Occupational Health and Safety Work-related ill health People (Social): Health & Safety
Training and Education
Average hours of training per
404-1 Training and Education People: Fastenal School of Business
year per employee
Programs for upgrading
404-2 Training and Education employee skills and transition People: Fastenal School of Business"
2022_ESG_Report-fastenal.txt,"have never lost sight of a foundational belief – that “ordinary” people can accomplish extraordinary things when provided with trust
and opportunity along with training and support. Our people-centered strategy can be summarized with some simple thoughts:
Find great people.
Invite them to join.
Challenge them to teach,
learn, and be willing to change.
Remind everyone that no single
group of people has a monopoly
on talent, ambition, or ability.
Give people a
reason to stay.
Promote from within.
This approach fosters a workforce that is not only"
2022_ESG_Report-fastenal.txt,"origin or citizenship status, disability, age, genetic information, marital
status, status with regard to public assistance, sexual orientation, gender identity, familial status, veteran status, or any other protected classifications.
Diversity Data & Reporting
Our EEO-1 data shows steady improvement over time in terms of Fastenal’s proportion of female and minority employees. The below EEO-1 data was
initially published in 2020 and contains data through calendar year 2021 in the United States.
As indicated in the chart, women and minorities constituted 24.2% and 21.0%, respectively, of our United States workforce in 2021. Based on U.S."
2022_ESG_Report-fastenal.txt,"mprovement over time in terms of Fastenal’s proportion of female and minority employees. The below EEO-1 data was
initially published in 2020 and contains data through calendar year 2021 in the United States.
As indicated in the chart, women and minorities constituted 24.2% and 21.0%, respectively, of our United States workforce in 2021. Based on U.S.
Bureau of Labor Statistics data, our mix of female and minority employees is generally consistent with that of the manufacturing and construction
industries. These two industries traditionally represent about 80% of our United States sales, providing useful context for our workforce recruiting pool,"
2022_ESG_Report-fastenal.txt,"r 2021 in the United States.
As indicated in the chart, women and minorities constituted 24.2% and 21.0%, respectively, of our United States workforce in 2021. Based on U.S.
Bureau of Labor Statistics data, our mix of female and minority employees is generally consistent with that of the manufacturing and construction
industries. These two industries traditionally represent about 80% of our United States sales, providing useful context for our workforce recruiting pool,
composition, and trends.
The proportion of women and minorities in our United States workforce declined"
2022_ESG_Report-fastenal.txt,"These two industries traditionally represent about 80% of our United States sales, providing useful context for our workforce recruiting pool,
composition, and trends.
The proportion of women and minorities in our United States workforce declined
U.S. Data (2012 - 2021)
slightly in 2020. It is difficult to quantify the impact of the severe social disruption
Minority
Year Males White Minority Females White Minority caused by Covid-19 during this period. In 2021, as the societal impacts of
Total
Covid-19 continued, we lost some additional ground with our female workforce"
2022_ESG_Report-fastenal.txt,"orce recruiting pool,
composition, and trends.
The proportion of women and minorities in our United States workforce declined
U.S. Data (2012 - 2021)
slightly in 2020. It is difficult to quantify the impact of the severe social disruption
Minority
Year Males White Minority Females White Minority caused by Covid-19 during this period. In 2021, as the societal impacts of
Total
Covid-19 continued, we lost some additional ground with our female workforce
2012 82.3% 72.3% 9.9% 17.7% 15.5% 2.2% 12.1%
composition; however, our positive minority workforce composition trend"
2022_ESG_Report-fastenal.txt,"2.1%
composition; however, our positive minority workforce composition trend
2013 81.2% 70.4% 10.8% 18.7% 15.9% 2.8% 13.6%
resumed. That said, we believe the data is best viewed over time rather than
2014 80.1% 68.6% 11.5% 19.8% 16.4% 3.4% 14.9%
year to year. On this basis, there is a clear trend toward greater diversity in our
2015 78.9% 66.3% 12.6% 21.0% 17.2% 3.8% 16.4%
business. Our female and minority workforces have grown 2.7x and 3.8x faster,
2016 78.0% 64.4% 13.5% 21.9% 17.6% 4.2% 17.7%
respectively, than our overall U.S. workforce over the last nine years."
2022_ESG_Report-fastenal.txt,"n decentralized decision-
making, empowering employees to make local decisions for their customers, for the organization, and also for their communities. Today, this spirit
shines through in local markets across the globe where our employees strive to be active in their communities through volunteering and donation
efforts. To provide resources and structure for those efforts, we're working to build a sustainable community strategy focused on the following areas.
Pillars of Community Engagement
Youth Economic Workforce Community Fire, Police,"
2022_ESG_Report-fastenal.txt,"mic response. We continue to deliver donated items to the Habitat for Humanity Restore for
community use, and we keep them front of mind when considering alternative waste/reuse streams.
2222Our ESG Sustainability
Governance PPeeooppllee Planet Appendix / 2022 ESG Report
Journey Solutions
Diversity, Equity, Training and Workplace Health Community
Our Approach Employment
and Inclusion Development and Safety Engagement
BK5K
Through our BK5K Road Race program,
Fastenal employees organize community
events across the globe, working with Workforce Development"
2023 Corporate Responsibility Report.txt,"age • Solar Farms • Hydroelectric Plants
Everest submits prospective clients to a thorough application and screening process before
• Green Hydrogen Facilities • Energy Conversion Risks
providing them with environmental insurance coverage. Potential clients are evaluated based on
their disposal practices, types of contaminants on site, and internal protocols, among other criteria.
Loss Control
Our loss control teams work with our clients and policyholders in a variety of industries to implement
loss prevention practices, promote worker safety, and integrate the latest environmentally"
2023 Corporate Responsibility Report.txt,"vity and fosters development in emerging
markets, enabling IFC to extend over $7 billion in medium- and
• Conduct due diligence on our outsourcing partners on anti-bribery, corruption, and money
laundering. long-term lending to commercial banks and non-bank financial
• Consider the ESG policies of insureds as part of our screening process for providing D&O institutions over the next six years. The agreement will support
coverage. economic growth, job creation, and poverty reduction and increase
• Consider insureds’ culture and worker satisfaction before providing coverage. lending to women-owned businesses."
2023 Corporate Responsibility Report.txt,"ibuted Economic Performance, pg. 11
Tables, pgs. 63-65
2023 Corporate Responsibility Report:
Climate RIsk Management, pgs. 16-17 GRI 403: 403-1 Occupational health and safety 2023 Corporate Responsibility Report:
Underwriting and Catastrophe Modeling, pg. 18 Occupational management system Health and Safety, pg. 37
201-2 Financial implications and other risks
and opportunities due to climate change Other ESG-related Underwriting Activities, Health and Safety 2023 Corporate Responsibility Report:
pgs. 19-21 403-6 Promotion of worker health"
2023 Corporate Responsibility Report.txt,"ds a more sustainable future.
report offers important information on how our
3,000 colleagues and the distinctive culture
environmental, social, and governance initiatives Thank you,
that we have built and maintained, even as we
and progress align with our rejuvenated brand.
have evolved into a global organization. We
At Everest, we seek to amplify the positive are intentional about creating a workplace that
impacts of our business and create value for helps our employees thrive. From investing
our clients. Within our underwriting business, in employee development and education"
2023 Corporate Responsibility Report.txt,"es
societal and community impact around the into all we do helps us create long-term value
world. From hunger to climate to justice, Everest for all stakeholders, including our high-caliber
3 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORT2023 ESG Highlights
3 New Colleague Over 50 charitable events
Resource Groups:
held across 16+ office locations
Jewish Culture, Veterans, and Working
Over $500,000 donated
Parents and Caregivers
to charitable organizations through corporate donations,
Implemented employee contributions, and our Matching Gifts Program"
2023 Corporate Responsibility Report.txt,"e 35 events for colleagues to engage, network, and
women or members of racial/ethnic minority groups appreciate the myriad cultures at Everest
 33% of the Board are Women and 45% of our global  Formed ESG Working Group, led by the General
workforce is female Counsel, to coordinate and collaborate on ESG matters
and communications, discuss key trends, and provide
 Everest employees completed 50,827 hours of recommendations to senior management
training, development, and DEI courses, averaging
16.4 hours per employee  Implemented rotating chairs for Board committees"
2023 Corporate Responsibility Report.txt,"ent practices, including the management of physical, litigation, regulatory, and other
climate-related risks, ensure that we have appropriate risk appetite and tolerance levels.
We are striving to identify opportunities within our operations and our underwriting and
Supporting Energy
investments portfolios to support the transition of societies to clean energy and to help mitigate
Transition
climate change.
The health and safety of our employees is critical to facilitating a productive and safe
Employee Health"
2023 Corporate Responsibility Report.txt,"fety of our employees is critical to facilitating a productive and safe
Employee Health
work environment.
and Wellness
Fostering an inclusive work environment and diverse community helps us attract and retain a
Diversity, Equity, and diverse workplace that values colleagues of all backgrounds and confers on our business the
Inclusion benefits of diverse perspectives in operational and strategic decision-making.
Our contributions to our employees’ development and skill sets improve the Company’s
Employee Training"
2023 Corporate Responsibility Report.txt,"consultants, we identified key
ESG topics to inform our management of ESG issues. We identify those issues below.
We view the following topics as priorities in ensuring Everest’s ability to generate long-term value.
Everest continually evaluates and revisits the relative importance of these topics as we engage with
stakeholders and assess emerging risks and opportunities, trends, and regulatory requirements.
Climate Risks and Workforce and Transparency and
Opportunities Community Accountability
Reducing GHG Emissions Employee Health and Wellness Corporate Governace"
2023 Corporate Responsibility Report.txt,"ing Everest’s ability to generate long-term value.
Everest continually evaluates and revisits the relative importance of these topics as we engage with
stakeholders and assess emerging risks and opportunities, trends, and regulatory requirements.
Climate Risks and Workforce and Transparency and
Opportunities Community Accountability
Reducing GHG Emissions Employee Health and Wellness Corporate Governace
Supporting Energy Transition Diversity, Equity, and Inclusion Business Ethics
and Compliance
Environmental Compliance Employee Training and"
2023 Corporate Responsibility Report.txt,"rformance in the DEI space using metrics such as focus groups,
50 years of underwriting opportunity at Everest, we
federal reporting metrics, and CRG feedback.
witnessed our commitment to foster an inclusive
Global DEI Council
culture, designing and implementing strategic DEI
Formed in 2020, the DEI Council is an essential contributor to Everest’s progress in DEI. The Global initiatives at scale.”
DEI Council Council oversees Company-wide DEI initiatives and is involved in supporting our global
focus areas related to employee development and career progression, talent acquisition, and Jhan D. Doughty, Ed.D."
2023 Corporate Responsibility Report.txt,"oups (BRGs) host events designed
to enhance our culture and build an inclusive community where colleagues come together for
learning, development, and community service opportunities. Each group is designed to foster an
Investing in people across the business
inclusive workplace and provide space for employees who share common backgrounds, interests,
or experiences and to build a sense of community.
Everest invests in all its colleagues by offering cultural inclusivity
Colleague Resource Groups
Everest officially renamed its “Employee Resource Groups” to “Colleague Resource Groups” to initiatives, employee development, and education on inclusion"
2023 Corporate Responsibility Report.txt,"sense of community
Innovation: The Power of Inclusion,” which explored how collective action shapes inclusive cultures
among women, and provide opportunities for personal and professional
and innovative solutions to global challenges.
development tailored toward women and allies. Everest senior leaders routinely
The Dive In Festival featured over 100 virtual and hybrid events across 37 countries covering a wide participate in various panel discussions and networking events for the organization.
An Everest employee serves as a Member of NAWA’s Board of Directors."
2023 Corporate Responsibility Report.txt,"ny of our program offerings feature facilitated workshops, curated
self-learning paths, and resources to help build important business and professional skills such as
time management and critical thinking. These programs support Everest employees by:
1. Promoting a culture of continuous learning
2. Providing opportunities for learning, coaching, and mentorship
3. Developing Everest ’s talent through succession planning, building “bench strength,” performance
consulting, and development planning
35 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTBusiness Area, Functional, and Technical Development Employee Training"
2023 Corporate Responsibility Report.txt,"ion planning, building “bench strength,” performance
consulting, and development planning
35 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTBusiness Area, Functional, and Technical Development Employee Training
Our Talent Development team further partners with our business units to provide learning
Our employees completed over 50,800 hours of training in 2023.8 All Everest employees have
opportunities focused on data and analytical skills, risk management, insurance industry knowledge,
received training through Workday, with each employee receiving approximately 16.4 hours of"
2023 Corporate Responsibility Report.txt,"gers and employees to incorporate a practice of continuous
feedback within the workplace. This is a key element in successful performance and provides
significant benefits to all involved. At Everest, employees can share feedback in a variety of ways: in
6,225 total hours
person or in writing through direct written communication or by using our feedback tool.
Performance Assessment of DEI training completed
In addition to continuous feedback, we conduct formal annual performance assessments for
each employee at Everest.7 Our performance assessment process is one of the most important"
2023 Corporate Responsibility Report.txt,"pleted
In addition to continuous feedback, we conduct formal annual performance assessments for
each employee at Everest.7 Our performance assessment process is one of the most important
Average of
development initiatives because it gives employees an opportunity to reflect on their professional
growth and goals for the future. Annually, employees complete a self-assessment reflecting on their 2.1 hours
performance against goals established in the prior year. Once completed, managers review the
self-assessments and complete manager assessments, which help them provide a two-dimensional of DEl training per employee"
2023 Corporate Responsibility Report.txt,"Our performance assessment process is one of the most important
Average of
development initiatives because it gives employees an opportunity to reflect on their professional
growth and goals for the future. Annually, employees complete a self-assessment reflecting on their 2.1 hours
performance against goals established in the prior year. Once completed, managers review the
self-assessments and complete manager assessments, which help them provide a two-dimensional of DEl training per employee
rating based on each employee’s development in their role and overall performance. Managers and"
2023 Corporate Responsibility Report.txt,"ments and complete manager assessments, which help them provide a two-dimensional of DEl training per employee
rating based on each employee’s development in their role and overall performance. Managers and
employees discuss performance and establish goals for the next year during follow-up discussion
meetings. This process enables employees to highlight their achievements and accomplishments,
identify areas for learning and development, and create measurable, impactful goals for the
next year.
Employee Engagement"
2023 Corporate Responsibility Report.txt,"r professional development opportunities. 7 92% of employees received regular performance reviews in 2023.
8 Excluding external training courses not captured in Workday.
36 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTBenefits and Wellness
- Wellness Room: Most Everest offices have a dedicated wellness room, in compliance with
At Everest, we have carefully designed our benefits to enhance our
local and state laws.
employees’ financial, physical, and mental well-being, as well as meet
Employee Discounts"
2023 Corporate Responsibility Report.txt,"ide a safe and healthy workplace for employees by minimizing risks of injury
helping pay for wellness-related expenses. Employees can use their LSA for a range of well-
and creating an inclusive environment. For example, we aim to maintain safe systems of work, safe
being and fitness-related products and services, including recreational activities, nutrition,
means of entering and leaving workplaces, an environment without risks to health and adequate
spa services, and more.
welfare facilities.
- Employee Assistance Program (EAP): The EAP is available in local languages for all Everest"
2023 Corporate Responsibility Report.txt,"ent
We strive to be a strong corporate citizen committed to philanthropic efforts
and values that are important to our colleagues and our communities. We
believe it is important to give back to our global communities and help those
in need by supporting projects and initiatives targeting education, health,
social, and environmental issues that impact our neighbors.
38 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORT2023 Giving Highlights
To celebrate Earth Day, Everest matched
Over Over
all employee donations to environmental"
2023 Corporate Responsibility Report.txt,"SPONSIBILITY REPORT2023 Giving Highlights
To celebrate Earth Day, Everest matched
Over Over
all employee donations to environmental
$500,000 donated $85,000 donated
organizations two-for-one throughout
the month of April. Employees donated
by Everest and its employees through the Corporate Matching Gifts Program
to organizations such as The Nature
Conservancy, One Tree Planted, the World
Wildlife Fund, and many more.
Over 1,500+ 35 charities
100,000 meals Generating support for catastrophic and
employee supported"
2023 Corporate Responsibility Report.txt,"orate ESG principles in their work.
45 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTStakeholder Outreach
At Everest, we believe that stakeholder outreach is crucial to building trust and understanding our
stakeholders’ perspectives. Everest defines its stakeholder groups by determining which entities,
organizations, and individuals have the greatest impact on our business and professional operations.
Through this process, we have identified the following stakeholder groups.
Employees
We engage with our employees every day, no matter where they are located. Via employee"
2023 Corporate Responsibility Report.txt,"Y REPORTStakeholder Outreach
At Everest, we believe that stakeholder outreach is crucial to building trust and understanding our
stakeholders’ perspectives. Everest defines its stakeholder groups by determining which entities,
organizations, and individuals have the greatest impact on our business and professional operations.
Through this process, we have identified the following stakeholder groups.
Employees
We engage with our employees every day, no matter where they are located. Via employee
newsletters, employee groups, events, and surveys, we maintain a continuous dialogue with our"
2023 Corporate Responsibility Report.txt,"marks for the next three years. The event was well attended
impact on our communities. and broadcasted to a wide audience and received positive feedback from both
investors and analysts.
46 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTBusiness Ethics, Compliance, and Integrity
Ethics and integrity are a cornerstone of all that we do at Everest. Our shareholders, clients, and the
various governmental entities that oversee the Company all expect us to act ethically. This is why we hold
every employee accountable for exercising the highest ethical standards when conducting business"
2023 Corporate Responsibility Report.txt,"he Ethics Guidelines when necessary. These reviews and updates Our policy states that directors, officers, and Company personnel should avoid actual or apparent
enable us to reflect on evolving industry standards, comply with all laws, rules, and regulations, and conflicts of interest, which arise when personal interests outside of the Company are or are perceived
uphold our commitment to integrity. to have been placed ahead of obligations to the Company and its customers. Conflicts of interest
also arise when an employee, officer or director, or a member of their families receives improper"
2023 Corporate Responsibility Report.txt,"nor hold any other position in any outside business enterprise – without prior
Everest’s policies regarding anti-corruption are communicated to all directors and employees.
approval from the Company.
Everest’s operations are assessed for risks related to corruption by our Law/Compliance Department
on an ongoing basis. Everest’s anti-corruption policies and procedures are reviewed by the Company 2. Involvement in any outside business activity is unacceptable when it interferes with a director’s,
on an annual basis. officer’s, or employee’s ability to perform the duties of their jobs."
2023 Corporate Responsibility Report.txt,"ue to the
Competitive Behavior
nature of insurance and reinsurance underwriting and contracts and because of controls that are in
Everest is firmly committed to conducting all our activities honestly, ethically, fairly, and in compliance
place for economic Sanctions and money laundering globally, Everest knows its customers and has
with the letter and the spirit of all anti-trust and business practice laws. Our anti-trust compliance
a low level of money laundering and Sanctions compliance risk.
depends on the commitment of every employee to learn about and carry out the Company’s anti-"
2023 Corporate Responsibility Report.txt,"es can contact Human Resources to
The Board’s Audit Committee has established processes for receiving, retaining, and treating
speak with representatives. Human Resources representatives are available to speak to concerned
complaints related to internal accounting controls, auditing matters, and the confidential,
employees about subjects ranging from job concerns to personal issues. Considerable resources
anonymous submission of concerns regarding accounting practices or auditing matters. Under
are available to our employees through the Human Resources Department to resolve employee"
2023 Corporate Responsibility Report.txt,"r receiving, retaining, and treating
speak with representatives. Human Resources representatives are available to speak to concerned
complaints related to internal accounting controls, auditing matters, and the confidential,
employees about subjects ranging from job concerns to personal issues. Considerable resources
anonymous submission of concerns regarding accounting practices or auditing matters. Under
are available to our employees through the Human Resources Department to resolve employee
the Employee Complaint Procedures for Accounting and Auditing Matters, employees may submit"
2023 Corporate Responsibility Report.txt,"restglobal.com/us-en/investor-
its document retention policy. The internal procedures followed by the CAO in conducting such
relations/governance.
investigations are available to all Everest employees on its intranet.
We maintain confidentiality to the extent possible, consistent with the need to conduct an adequate
review. The Audit Committee prescribes prompt and appropriate corrective action if deemed
necessary. The Company will not discharge, demote, suspend, threaten, harass, or in any way
discriminate against any employee based on any lawful actions of such employee concerning good-"
2023 Corporate Responsibility Report.txt,"ive Officer. Company officers and personnel may make political contributions on their The Compliance Department focuses on several subject areas, including:
own behalf. Company officers and personnel are also free to seek and hold an elective or appointive
• OFAC Sanctions and money laundering
public office, provided that they not do so as a representative of the Company.
• Insurance and Reinsurance Law and Regulation
• Anti-Trust
• Anti-Fraud
• Conduct, Ethics Guidelines, Conflicts of Interest
• Employee Stock Trading"
2023 Corporate Responsibility Report.txt,"rance and Reinsurance Law and Regulation
• Anti-Trust
• Anti-Fraud
• Conduct, Ethics Guidelines, Conflicts of Interest
• Employee Stock Trading
• Privacy and Data Security, Cybersecurity
• Records Management
51 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTCybersecurity and Data Privacy
Everest is committed to safeguarding the data we collect, receive, transfer, and store while conducting
business around the world. We maintain a comprehensive cybersecurity program that includes strong
oversight, employee training, and policies that are designed to manage risks and protect against"
2023 Corporate Responsibility Report.txt,"ernal penetration testing, internal phishing testing, and conducting red
team exercises and cyber incident response exercises to ensure the effectiveness of the overall
cybersecurity control environment.
54 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTAppendix A: Greenhouse Gas Emissions
Greenhouse gas (GHG) emissions Greenhouse gas (GHG) emissions Scope 2 Greenhouse gas (GHG)
by activity YTE YTE by activity YTE YTE emissions by U.S. and overseas YTE YTE
2023 2022 2023 2022 2023 2022
Scope 1—Direct emissions (U.S. and Category 7—Employee Commuting Scope 2—Indirect emissions—U.S.1"
2023 Corporate Responsibility Report.txt,"nment.
54 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTAppendix A: Greenhouse Gas Emissions
Greenhouse gas (GHG) emissions Greenhouse gas (GHG) emissions Scope 2 Greenhouse gas (GHG)
by activity YTE YTE by activity YTE YTE emissions by U.S. and overseas YTE YTE
2023 2022 2023 2022 2023 2022
Scope 1—Direct emissions (U.S. and Category 7—Employee Commuting Scope 2—Indirect emissions—U.S.1
overseas operations1 (market based) (U.S. only) tCO e 6,300.7 5,665.0
2 Purchased Electricity—U.S.
Stationary combustion tCO e 0.0 0.0 Employee Commuting (U.S. (location based)1* tCO e 1,664.2 1,610.6"
2023 Corporate Responsibility Report.txt,"ble.
Scope 3 (other indirect GHG emissions): Including: Category 1—Purchased Goods and Services;
Category 2—Capital Goods; Category 5—Waste Generation in Operations, including only a limited
number of facilities, for which data was available (excluding all other facilities), Category 6—Business
Travel, including by air (both commercial airlines and private jets), rail, public transit, and private
passenger vehicle (including taxi, coach, short term vehicle rentals, and mileage claims for use of
personal vehicles); Category 7—Employee Commuting, including both emissions from in office or"
2023 Corporate Responsibility Report.txt,"s;
Category 2—Capital Goods; Category 5—Waste Generation in Operations, including only a limited
number of facilities, for which data was available (excluding all other facilities), Category 6—Business
Travel, including by air (both commercial airlines and private jets), rail, public transit, and private
passenger vehicle (including taxi, coach, short term vehicle rentals, and mileage claims for use of
personal vehicles); Category 7—Employee Commuting, including both emissions from in office or
hybrid employee commutes, and additional energy use by hybrid and remote employees while"
2023 Corporate Responsibility Report.txt,"N/A* 103 180 54 258 16 0 59 0 4 N/A* N/A*
*data not available for reporting year.
Rate of Employees Hired (%)
By Gender By Age By Region
Male Female Not declared <30 30–50 >50 U.S. Canada S. America Europe Asia Bermuda Oceana Mexico
2023 17 14 <1 8 18 6 19 1 1 8 1 <1 <1 <1
2022 21 18 N/A* 10 22 8 27 1 1 1 1 <1 N/A* N/A*
2021 13 12 N/A* 8 13 5 20 1 0 4 0 0 N/A* N/A*
2020 10 8 N/A* 6 9 3 13 1 0 3 0 0 N/A* N/A*
2019 11 10 N/A* 7 11 3 16 1 0 4 0 <1 N/A* N/A*
*data not available for reporting year.
Total Employee Turnover: 317 employees"
2023 Corporate Responsibility Report.txt,"9 3 13 1 0 3 0 0 N/A* N/A*
2019 11 10 N/A* 7 11 3 16 1 0 4 0 <1 N/A* N/A*
*data not available for reporting year.
Total Employee Turnover: 317 employees
By Gender By Age By Region
Male Female Not declared <30 30–50 >50 U.S. Canada S. America Europe Asia Bermuda Oceana
2023 167 141 9 82 135 100 213 13 7 17 9 2 1
2022 192 170 9 150 129 92 307 15 2 39 2 6 N/A*
2021 133 135 N/A* 55 130 88 226 9 1 27 3 7 N/A*
2020 76 72 N/A* 28 75 47 115 7 0 23 2 3 N/A*
2019 78 74 N/A* 32 71 49 123 11 0 16 1 1 N/A*
Rate of Employee Turnover (%)"
2023 Corporate Responsibility Report.txt,"53 47 0 16 48 36 63 0 16 7 9 0 N/A* 1 N/A*
2020 53 47 0 15 47 38 67 0 15 7 9 0 N/A* 2 N/A*
2019 52 48 0 14 48 38 67 0 16 7 8 <1 N/A* 1 N/A*
*data not available for reporting year.
Benefits Provided to U.S. Employees
Life Insurance Healthcare Disability and Parental Leave Retirement Stock Ownership Other
Invalidity Provision
Full-Time X X X X X X
Employees
Part-Time X X X X X
2023
Employees
Temporary
Employees
Full-Time X X X X X X
Employees
Part-Time X X X X X
2022
Employees
Temporary
Employees
Full-Time X X X X X X PTO, paid parental leave, employee discounts, employee assistance program, genetic testing,"
2023 Corporate Responsibility Report.txt,"esponsibility Report:
managing impacts ESG Governance, pgs. 45 2-29 Approach to stakeholder engagement Stakeholder Outreach, pg. 46
2024 Proxy Statement, pgs. 18-30 None of our employees are covered by
2-30 Collective bargaining agreements
collective bargaining agreements.
69 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTGRI STANDARD Disclosure Location GRI STANDARD Disclosure Location
GRI 3: Material 2023 Corporate Responsibility Report: GRI 401: 2023 Corporate Responsibility Report:
3-1 Process to determine material topics 401-1 New employee hires and employee"
2023 Corporate Responsibility Report.txt,"eling, pg. 18 Occupational management system Health and Safety, pg. 37
201-2 Financial implications and other risks
and opportunities due to climate change Other ESG-related Underwriting Activities, Health and Safety 2023 Corporate Responsibility Report:
pgs. 19-21 403-6 Promotion of worker health
2018 Benefits and Wellness, pg. 37
Responsible Investing, pgs. 22-23
Operational Impact, pgs. 24-25 GRI 404: Training 404-1 Average hours of training per year per 2023 Corporate Responsibility Report:
GRI 205: Anti- 2023 Corporate Responsibility Report: and Education employee Employee Training, pg. 36"
2023 Corporate Responsibility Report.txt,"change Other ESG-related Underwriting Activities, Health and Safety 2023 Corporate Responsibility Report:
pgs. 19-21 403-6 Promotion of worker health
2018 Benefits and Wellness, pg. 37
Responsible Investing, pgs. 22-23
Operational Impact, pgs. 24-25 GRI 404: Training 404-1 Average hours of training per year per 2023 Corporate Responsibility Report:
GRI 205: Anti- 2023 Corporate Responsibility Report: and Education employee Employee Training, pg. 36
205-1 Operations assessed for risks related to
corruption 2016 corruption Business Ethics, Compliance, and Integrity, 2016 404-2 Programs for upgrading employee skills 2023 Corporate Responsibility Report:"
2023 Corporate Responsibility Report.txt,"le Investing .................................................................................................................................................................................................................................... 22
Operational Impact ........................................................................................................................................................................................................................................ 24
Workforce and Community ...................................................................................................................................................................................... 26"
2023 Corporate Responsibility Report.txt,"rd Committees are
Resource Group
Chaired by Women
4 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORT 66% of all new U.S. hires and 57% of all new U.S.  Everest’s Colleague Resource Groups hosted over
hires at the level of Vice President or above were 35 events for colleagues to engage, network, and
women or members of racial/ethnic minority groups appreciate the myriad cultures at Everest
 33% of the Board are Women and 45% of our global  Formed ESG Working Group, led by the General
workforce is female Counsel, to coordinate and collaborate on ESG matters"
2023 Corporate Responsibility Report.txt,"rnal and external
stakeholders, our ESG ratings and trends, as well as the expertise of consultants, we identified key
ESG topics to inform our management of ESG issues. We identify those issues below.
We view the following topics as priorities in ensuring Everest’s ability to generate long-term value.
Everest continually evaluates and revisits the relative importance of these topics as we engage with
stakeholders and assess emerging risks and opportunities, trends, and regulatory requirements.
Climate Risks and Workforce and Transparency and"
2023 Corporate Responsibility Report.txt,"ormed leadership structure, we now have teams providing critical
functional support to areas such as operations, Colleague Resource Groups, and Business Resource I want to make sure that people of all backgrounds
Groups. This new leadership structure has enabled us to expand our DEI initiatives and introduce can experience all that it has to offer. In order for us
additional capabilities and infrastructure to support our growing global company. to continue to be a great company, we need to have
a diverse workforce that can bring all opinions to the"
2023 Corporate Responsibility Report.txt,"uture.
the national conference and has partnered with HBCUs, including Xavier University
of Louisiana and Bennet College, with outreach and recruitment initiatives. Everest
34 EVEREST GROUP, LTD. 2023 CORPORATE RESPONSIBILITY REPORTTalent Attraction and Development
The continued development of all colleagues is a core value that
“I am honored to be the inaugural hire of this
exemplifies our culture. Attracting and developing a diverse, talented
incredible program. Veterans bring a unique set of
workforce is an essential part of enacting that value. Our strength as an"
2023 Corporate Responsibility Report.txt,"s with our talent.
am proud to be part of this organization.”
Talent Acquisition
Patrick Toohey
Vice President, Insurance
Experienced Veterans Hiring Initiative
Everest’s Experienced Veterans Hiring Initiative is a bespoke training program designed to attract
individuals with longstanding military careers into the Company and convey the fundamentals of
insurance, reinsurance, and Everest’s culture.
We also have a dedicated Veteran Education Portal that hosts information for veterans at Everest,
including transitioning to civilian workforce and business-unit learning in insurance and reinsurance"
2023 ESG REPORT.txt,"rk to manage evolving and health, are shaped by risk assessments, frequent surveys - Employee assistance programs and
supplemental resources that provide
emerging health and safety risks by providing a system to and employee feedback sessions. In 2023, our well-being
confidential, 24/7 critical mental
identify, assess, and address the health and safety risks programs focused on cardiovascular, musculoskeletal and
health support;
employees face in their day-to-day work activities. mental health.
For worker-related injuries and ill health data see ""ESG"
2023 ESG REPORT.txt,"Report (page 24); IBMer Learning and Development 404-2, 404-3
Total employee learning hours worldwide (M) 22.5 24.3 23.1 TC-SI-330a.2
Average learning hours per regular/full time employee 84 86 85 404-1 TC-SI-330a.2
403-3, 403-4,
Health, safety, and well-being 2023 IBM Impact Report (page 26); IBM Health and Safety Report 403-5, 403-6, 3
403-7
403-1, 403-2,
Health and safety management system IBM Health and Safety Policy; IBM Business Conduct Guidelines; IBM ISO Management Certifications
403-8
Worker-related injuries 403-9"
2023 ESG REPORT.txt,"injuries 5 1 1
Rate of high-consequence work-related injuries1 0.0082 0.0018 0.0018
Number of recordable work-related injuries2 38 9 32
Rate of recordable work-related injuries 0.0625 0.0159 0.0588
Number of hours worked 607,952,000 564,650,000 544,558,000
Slips, trips and falls, automobile and struck Struck by/strike against an object, slips and Struck by/strike against an object, slips and
Main types of work-related injuries
by/strike against an object falls, overexertion falls, overexertion
Worker-related ill health 403-10"
2023 ESG REPORT.txt,"2023 ESG REPORT
I B M I m p a c t
--------
- - - --
- -- - -- - --- ----
-----
___ , _ IXIContents
Introduction About this Report
Governance
Social
Environment
This report covers our progress and performance in 2023. The current year data presented covers our global
Appendix
The content of this report is informed by collaboration and operations from January 1, 2023 to December 31, 2023.
engagement with communities, clients, stockholders, and Certain employee-related data and programs presented"
2023 ESG REPORT.txt,"pollution, and minimize
for everyone by focusing on
climate-related risks
diversity, equity and inclusivity
within IBM, as well as globally
IBM 2023
ESG Report 6Contents
Introduction Our ESG Goals As detailed throughout this report, our commitment to creating Ethical
Impact, Equitable Impact, and Environmental Impact includes goals.
Governance
Progress for a subset of these goals for calendar year 2023 is as follows:
Social (1 of 2)
Environment Ethical Impact
Appendix
Topic Goal Progress Status
Business Ethics Achieve 100% employee participation in our annual Business Conduct Guidelines (BCG) We attained 100% employee participation in our annual BCG program in 2023. ACHIEVED IN 2023"
2023 ESG REPORT.txt,"The Board and its committees have The Directors and Corporate Governance Committee: Oversees policies and
oversight responsibility for ESG-related practices related to corporate social responsibility, sustainability and other
Social for ESG at IBM of Directors matters and are continuously engaged environmental, social and governance matters.
with senior management on risk
Environment
management and activities, policies, and
The Executive Compensation and Management Resources Committee: Oversees
IBM’s compensation programs and employee engagement as an indicator of"
2023 ESG REPORT.txt,"olitics
business partners and others to raise concerns. Learning about issues and
- Workforce diversity - Human rights principles
concerns allows us to intervene early, investigate and remediate.
- Health and safety - Global employment standards
Our annual Global Integrity Survey enables employees to provide feedback - Data privacy - Cognitive principles
on their perception of ethics and integrity within IBM. The insights gained
- Diverse business relationships - Statements on individual issues
from the survey help us gauge employee sentiment regarding speaking up,"
2023 ESG REPORT.txt,"next
within IBM, it connects IBMers to certification programs, as
generation learning strategy deeply centers on skills
well as coaching and mentoring to supplement
growth. We have refreshed our learning program to better
their development.
align with this strategy. Our enterprise-wide shift
emphasizes learning and experiences to build skills and
expertise critical to job roles and internal mobility. With our
refreshed programs, IBMers will accelerate skills growth 85 Average Learning Hours Per
and gain more relevant skills in a more efficient and Regular, Full Time Employee"
2023 ESG REPORT.txt,"mentoring to supplement
growth. We have refreshed our learning program to better
their development.
align with this strategy. Our enterprise-wide shift
emphasizes learning and experiences to build skills and
expertise critical to job roles and internal mobility. With our
refreshed programs, IBMers will accelerate skills growth 85 Average Learning Hours Per
and gain more relevant skills in a more efficient and Regular, Full Time Employee
personalized manner, allowing for deeper learning in less
time. For additional employee learning data see ""ESG Data"
2023 ESG REPORT.txt,"ieve our employees perform their best at work, at
At IBM, mental health has always been and will
Environment
compliance with country legal requirements, both of which home and in the communities where they live and work
continue to be a priority. All employees worldwide
Appendix are implemented through IBM’s Health & Safety when their well-being is supported. Our well-being have access to:
Management System (HSMS). Established in 1999, our programs, which include physical, mental, and financial
HSMS provides a framework to manage evolving and health, are shaped by risk assessments, frequent surveys - Employee assistance programs and"
2023 ESG REPORT.txt,"n the communities where they live and work
continue to be a priority. All employees worldwide
Appendix are implemented through IBM’s Health & Safety when their well-being is supported. Our well-being have access to:
Management System (HSMS). Established in 1999, our programs, which include physical, mental, and financial
HSMS provides a framework to manage evolving and health, are shaped by risk assessments, frequent surveys - Employee assistance programs and
supplemental resources that provide
emerging health and safety risks by providing a system to and employee feedback sessions. In 2023, our well-being"
2023 ESG REPORT.txt,"k and
life demands.
Benefits
IBM is committed to helping our employees
achieve balance while fostering success by
providing them with an array of benefits, such as
paid leave and programs to support health and
well-being.
We offer a comprehensive benefits program
designed to support IBM employees and
their families across multiple dimensions of
health – physical, mental, social and financial.
Benefits vary from country to country.
IBM 2023
ESG Report 26Contents
Introduction Diversity
Governance
Social and Inclusion Employee Experience Accountability"
2023 ESG REPORT.txt,"ork. We aspire to create a sense of
belonging for all by building a more diverse
workforce, cultivating a flexible work
environment and advocating for equity,
both inside and outside of IBM.
Our four strategic
priorities measure
our progress
through actions
and outcomes
Advocacy Allyship
We work to drive systemic change We provide training and support to
that creates opportunity for help every IBMer be an upstander
diverse communities. through inclusive behaviors.
IBM 2023
ESG Report 27Contents
Employee Experience"
2023 ESG REPORT.txt,"ironment
where employees feel supported. IBM’s Inclusive
Workplace Design initiative continued in 2023 which
included all-gender restrooms, reflection and prayer
rooms, lactation rooms, increased aisle widths and turning
radius and tonal contrast materials for the visually
impaired. These design elements will be included in all
new workplace projects going forward. The guidelines also
include baseline Inclusive Design elements which are
required at IBM legacy locations.
Business Resource Groups
Business Resource Groups are volunteer, employee-led"
2023 ESG REPORT.txt,"ross genders globally and across races and - 5% self-identified as People with
ethnicities in the U.S. In 2023, all countries where IBM has Diverse Abilities
employees were included in our pay equity analysis. The were women and,
pay equity data represents total compensation, including 40.8%
of our U.S.
base, bonus and equity.
promotions,
The privacy of our employees is a chief concern.
We are proud of the results: overall, IBM pays equitably for We comply with all applicable legal requirements
when handling employee information. Self-"
2023 ESG REPORT.txt,")
21 22 23
*%1.43 *%4.03 %4.33
Black
(U.S.)
21 22 23
*%0.01 *%8.8
%5.5
Hispanic
(U.S.)
21 22 23
*%1.8
*%0.4
%2.01
Native American
(U.S.)
21 22 23
*%5.0 *%0.0 %0.0
Native Hawaiian/
Pacific Islander
(U.S.)
21 22 23
%3.0 %4.0 %0.0
Pan-Asian
(U.S.)
21 22 23
*%4.91 *%9.22 %3.72
Multi-race
(U.S.)
21 22 23
*%3.0 *%0.0 %0.0
Contents
Introduction
Governance
Social
Environment
Appendix
Management includes all executives and people managers. IBM hired over 30,000 employees in 2023.
Data excludes students.
* For 2023, IBM revised the definition of employee categories to improve consistency and prior results have been restated to align with these definitions. IBM has also included an additional racial category for Native Hawaiian/Pacific Islander with prior"
2023 ESG REPORT.txt,"0
Native Hawaiian/
Pacific Islander
(U.S.)
21 22 23
%4.0 %0.0 %0.0
Pan-Asian
(U.S.)
21 22 23
%0.02 *%5.02 %4.82
Multi-race
(U.S.)
21 22 23
%0.0
*%9.1
%0.0
Contents
Introduction
Governance
Social
Environment
Appendix
Executive includes Director level and above. As noted in the Proxy, excluding Red Hat, executive representation of women globally, as well as Black and Hispanic executives in the U.S., changed by
+1.1 points, -0.2 points and +0.6 points, respectively in 2023.
Data excludes students.
* For 2023, IBM revised the definition of employee categories to improve consistency and prior results have been restated to align with these definitions. IBM has also included an additional racial category for Native Hawaiian/Pacific Islander with prior"
2023 ESG REPORT.txt,"technology, and cash to support our
volunteering, collectively logging over 543,000
CSR mission and priorities in education and skills,
volunteer hours.
sustainability and other areas. Our giving strategy is global
and focuses on areas where IBM seeks to make a IBM is deeply committed to supporting organizations
significant impact on those with the greatest need. and communities in need. In 2023, the Disaster Relief
Volunteering Hours 2022 2023 Program offered IBMers the opportunity to support
Worldwide retiree and employee 431,000† 543,000 For the breakdown of our total contributions worldwide see communities around the world through charitable"
2023 ESG REPORT.txt,"ting organizations
significant impact on those with the greatest need. and communities in need. In 2023, the Disaster Relief
Volunteering Hours 2022 2023 Program offered IBMers the opportunity to support
Worldwide retiree and employee 431,000† 543,000 For the breakdown of our total contributions worldwide see communities around the world through charitable
volunteer hours ""ESG Data Summary"" on page 66. giving. Through this program, IBM also establishes
charitable giving campaigns where we match
† Restatement from prior year to reflect calculation correction. employee donations 1:1."
2023 ESG REPORT.txt,"about our ESG programs, policies and metrics in reference to the following voluntary reporting frameworks and
initiatives: The Global Reporting Initiative (GRI); the Sustainability Accounting Standards Board (SASB) Software & IT Services industry standards; and
Environment
the United Nations Sustainable Development Goals (SDGs).
Appendix
General
Description GRI SASB SDGs
Organization name International Business Machines Corporation 2-1
Location of headquarters Armonk, NY 2-1
Reporting practice
The current year data presented covers our global operations. Certain supplier and employee-related data and programs presented may not"
2023 ESG REPORT.txt,"n-independent directors 1 1 1
Independent directors 11 11 12
Gender and ethnic diversity 33% 33% 38% 405-1 5
Director nominees with <5 year tenure 8 6 6
Director nominees with 5-10 year tenure 2 4 5
Director nominees with >10 year tenure 2 2 2
Risk management, business ethics, and compliance
TC-SI-550a.1,
Business continuity risks related to disruptions of operations 2024 Impact Report (page 15); 2023 IBM Proxy Statement; IBM CDP Disclosures; 2023 IBM 10-K (pages 3-11) 201-2, 205-1
TC-SI-550a.2
As a company with a substantial employee population and with clients in more than 175 countries, IBM is involved, either as plaintiff or"
2023 ESG REPORT.txt,"and of its business. As a publicly traded company, IBM discloses pending, material legal matters deemed reportable under the U.S. GAAP and
monopoly practices U.S. Securities and Exchange Commission regulations in IBM’s Forms 2023 10-K, 10-Q, 8-K or other required filings with the U.S. Securities 206-1 TC-SI-520a.1
and Exchange Commission.
2023 IBM 10-K
Communication and training about anti-corruption policies
2023 IBM Impact Report (page 16); IBM Business Conduct Guidelines 205-2
and procedures
As a company with a substantial employee population and with clients in more than 175 countries, IBM is involved, either as plaintiff or"
2023 ESG REPORT.txt,"t (page 15) 2-7, 2-8
Social Total employees (in thousands)
IBM/wholly owned subsidiaries 282.1 288.3 282.2
Environment
Less-than-wholly owned subsidiaries 9.8 8.2 8.7
Appendix Complementary 15.7 14.8 14.4
Employees responded to the annual Engagement Survey 170,000 185,000 187,000 TC-SI-330a.2
Employees that indicated that they were engaged at work 8 out of 10 8 out of 10 8 out of 10 TC-SI-330a.2
Career and development 2023 IBM Impact Report (page 24); IBMer Learning and Development 404-2, 404-3
Total employee learning hours worldwide (M) 22.5 24.3 23.1 TC-SI-330a.2"
2023 ESG REPORT.txt,"ned subsidiaries 282.1 288.3 282.2
Environment
Less-than-wholly owned subsidiaries 9.8 8.2 8.7
Appendix Complementary 15.7 14.8 14.4
Employees responded to the annual Engagement Survey 170,000 185,000 187,000 TC-SI-330a.2
Employees that indicated that they were engaged at work 8 out of 10 8 out of 10 8 out of 10 TC-SI-330a.2
Career and development 2023 IBM Impact Report (page 24); IBMer Learning and Development 404-2, 404-3
Total employee learning hours worldwide (M) 22.5 24.3 23.1 TC-SI-330a.2
Average learning hours per regular/full time employee 84 86 85 404-1 TC-SI-330a.2"
2023 ESG REPORT.txt,"Multi-race (U.S.) 0.0% 1.9% 0.0%
Diversity and international experience are crucial for IBM, which operates in more than 175 countries. Our business success is derived from
Proportion of senior management hired from the an understanding of diverse business environments and economic conditions, and a broad perspective on global business opportunities. We
202-2
local community support local management in implementing our business strategy, programs and initiatives.
IBM Global Employment Standards
1 Restated to include Red Hat and to align with 2023 revision of definition of employee categories to improve consistency."
2023 ESG REPORT.txt,"ption 2021 2022 2023 GRI SASB SDGs
Governance
203-1, 203-2,
Community development 2023 IBM Impact Report (pages 35-38) 2, 6, 7, 11
Social 413-1
Total contributions worldwide ($M)1 $474.1 $447.9 $386.9
Environment
Contributions by type
Appendix Technology $387.8 $338.4 $307.8
Services $42.1 $64.7 $52.4
Cash $44.2 $44.8 $26.7
Contributions by region
Europe, Middle East, Africa $167.9 $151.1 $144.7
Asia Pacific $150.4 $103.3 $105.2
North America $109.4 $171.6 $116.8
Latin America $46.4 $21.8 $20.1
Worldwide retiree and employee volunteer hours 440,000 431,000 543,000"
2023 ESG REPORT.txt,"electricity in IBM-managed locations 434,000 240,000 198,000 170,000 139,000
Use of purchased energy commodities 26,000 22,000 23,000 13,000 11,000
Scope 2 (location-based) 546,000 413,000 356,000 330,000 306,000 305-2
Scope 3 (indirect emissions) 305-3
Purchased goods and services6 251,000 234,000 176,000 169,000 143,000
Use of sold products7 287,000 291,000 272,000 264,000 297,000
Upstream leased assets8 40,000 13,000 13,000 18,000 13,000
Business travel9 393,000 85,000 37,000 125,000 117,000
Employee commuting10 119,000 42,000 15,000 10,000 15,000"
2023 ESG REPORT.txt,"essary and important part of ensuring that IBM understands our clients' needs and delivers the best client experience possible.
We have worked with rental car companies to require that they offer more fuel-efficient vehicles to our employees while traveling for business. IBMers can reduce the need for travel by taking advantage of strategic collaboration and meeting tools that allow them
to easily engage with clients and their colleagues to have productive meetings, without the need for travel.
10 Employee commuting: Our reported figure for employee commuting emissions only includes estimations made for our U.S. employees since this is the population for which we can make credible assumptions around their commuting behavior and we have access"
2023 ESG REPORT.txt,"0.
responsible, transparent and explainable AI
workflows. In addition, IBM and Meta announced the These and other initiatives earned IBM various
formation of the AI Alliance, a group of more than honors, including recognition by Ethisphere as one of
seventy industry and academic leaders joining the World’s Most Ethical Companies and by Time
together to advance open, safe and responsible AI. Magazine as one of the 100 Most Influential
Companies.
We recognize that promoting equitable access to AI
skills is also crucial to tomorrow's workforce. As our progress in 2023 showed, IBM is committed"
2023 ESG REPORT.txt,"s In 2023, we released watsonx.governance, a component of watsonx designed to accelerate ACHIEVED IN 2023
for Trust and Transparency. responsible, transparent and explainable AI workflows, and led the creation of the AI ✔
Alliance, an open community to accelerate responsible AI innovation.
Policy Advocacy Engage in responsible policy advocacy to drive growth and innovation across the globe on In 2023, IBM advanced a risk-based approach to the regulation of AI and a skills-first ACHIEVED IN 2023
topics including, AI, cybersecurity, trade, data privacy and workforce skills. approach to filling critical tech jobs through activities such as publishing a policymaker’s ✔"
2023 ESG REPORT.txt,"ate responsible AI innovation.
Policy Advocacy Engage in responsible policy advocacy to drive growth and innovation across the globe on In 2023, IBM advanced a risk-based approach to the regulation of AI and a skills-first ACHIEVED IN 2023
topics including, AI, cybersecurity, trade, data privacy and workforce skills. approach to filling critical tech jobs through activities such as publishing a policymaker’s ✔
guide to responsible AI foundation models and supporting the introduction of two U.S.
bipartisan workforce development bills."
2023 ESG REPORT.txt,"ng and role plays, are leveraged to drive engagement
IBM Policies
and participation.
Govern internal and external company-wide actions including:
Our internal reporting channel enables employees to report concerns or
- Business conduct and ethics - Quality
suspected violations of our BCGs and unethical or unlawful behavior within
IBM. Similar reporting channels have been established for suppliers, - Reciprocity - Politics
business partners and others to raise concerns. Learning about issues and
- Workforce diversity - Human rights principles"
2023 ESG REPORT.txt,"es the team responsible for leading enterprise-wide
IBM Chief Information
IBM’s Computer Security Incident Response Team (CSIRT), information security strategy, policy, standards,
Security Officer (CISO)
that relies primarily on internal expertise to respond to architecture and processes for IBM’s internal systems
cybersecurity threats and attacks. We utilize a combination of
online training, educational tools, videos and other awareness
initiatives to foster a culture of security awareness and
responsibility among our workforce, including responsibility for"
2023 ESG REPORT.txt,"ate practices on lobbying and political spending, Chief Privacy and Trust Officer
including from the Center for Political Accountability and Christina Montgomery;
We engage policymakers and leaders globally to promote Transparency International UK.
ideas that can help spur growth and innovation with new
- Attendance by IBM SVP & Director of Research
technologies or address societal challenges, such as IBM is also committed to advocating for policies that Dario Gil at the AI Safety Summit in the
building a skilled and diverse workforce. We do this by advance diversity and inclusion globally. For information on United Kingdom;"
2023 ESG REPORT.txt,"d technology to
develop clear and actionable policy recommendations that - Joining as a signatory on the Government of
leverage technology to help tackle some of today’s most Canada’s voluntary AI code of conduct.
pressing issues. In 2023, the IBM Policy Lab released
papers covering: - Advancing a skills-first approach to filling critical tech
jobs - especially in key areas such as cybersecurity
- How governments can strengthen their cloud and AI - by supporting the release of the Office of the
policies globally; National Cyber Director’s National Cyber Workforce"
2023 ESG REPORT.txt,"’s voluntary AI code of conduct.
pressing issues. In 2023, the IBM Policy Lab released
papers covering: - Advancing a skills-first approach to filling critical tech
jobs - especially in key areas such as cybersecurity
- How governments can strengthen their cloud and AI - by supporting the release of the Office of the
policies globally; National Cyber Director’s National Cyber Workforce
and Education Strategy, supporting the introduction of
- The role of technology companies in the fight against
two bipartisan workforce development bills in the U.S."
2023 ESG REPORT.txt,"eir cloud and AI - by supporting the release of the Office of the
policies globally; National Cyber Director’s National Cyber Workforce
and Education Strategy, supporting the introduction of
- The role of technology companies in the fight against
two bipartisan workforce development bills in the U.S.
climate change;
House of Representatives, and with testimony before
- A policymaker’s guide to AI foundation models; the U.S. House of Representatives Education and the
- Digital skills for the EU;
Workforce Committee."
2023 ESG REPORT.txt,"supporting the release of the Office of the
policies globally; National Cyber Director’s National Cyber Workforce
and Education Strategy, supporting the introduction of
- The role of technology companies in the fight against
two bipartisan workforce development bills in the U.S.
climate change;
House of Representatives, and with testimony before
- A policymaker’s guide to AI foundation models; the U.S. House of Representatives Education and the
- Digital skills for the EU;
Workforce Committee.
- A technology workforce playbook for the U.S.; and"
2023 ESG REPORT.txt,"ampions of inclusion, enabling We harness data transparency to enable
Appendix diverse communities of IBMers to thrive accountability, action and outcomes for
and grow. increased diversity representation and
inclusion at every level of our company.
At IBM, we foster a culture of conscious
inclusion and active allyship, where every
IBMer can make a positive impact on
society while bringing their authentic selves
to work. We aspire to create a sense of
belonging for all by building a more diverse
workforce, cultivating a flexible work"
2023 ESG REPORT.txt,"unched in 2017,
to work in technology's fastest-growing areas, like AI. This
the program began with software engineering
Policy Advocacy policy and what we call our ""new-collar"" programs provide
and has expanded to 35 job roles, including
an entry point into IBM for people with relevant skills, but
data science, cybersecurity, and design. We
In 2023, we supported several bills brought forth to the without advanced degrees, therefore expanding ways for
have hired nearly 1,000 apprentices through
U.S. Congress and state legislatures in support of our people to enter the workforce. Our new-collar programs,"
2023 ESG REPORT.txt,"tted to
protections to the LGBTQ+ community investing $250 million in apprenticeship and new-collar
IBM Tech Re-Entry Program
programs by 2025, towards which we have invested
- The Dream Act and the American Dream and
$100.3 million. Our continued investment in
Promise Act, to provide protections and Our re-entry program serves people looking to
apprenticeships and new-collar programs globally helps to
certainty for Deferred Action for Childhood
ensure the next decade in tech is more inclusive.
rejoin the workforce after a career break. This"
2023 ESG REPORT.txt,"nd ground transportation booking, and
coordinates accommodation support throughout the
travel experience.
IBM 2023
ESG Report 30Contents
Accountability
Introduction
Governance IBM harnesses data transparency to enable accountability, Diversity-Linked Executive Compensation Opportunities for Self-Identification
action and outcomes for increased diversity representation
Social
and inclusion at every level of our company. To reinforce our focus on attracting and retaining diverse IBM believes that
Environment talent in our workforce that represents our clients and the providing opportunities for self-"
2023 ESG REPORT.txt,"e representation for women globally and self-identifying, we show awareness
discrimination—regardless of gender or race—is not underrepresented minority (URM) groups (specifically, and may leverage differences by
optional. It is a mandate that aligns with our values. IBM Black and Hispanic) in the U.S. Our goal remains to creating solutions and network
has a longstanding practice of pay equity and is firmly improve and close the gap in representation. We believe a opportunities for a successful
committed to equal pay for equal work. It has been part of diverse workforce drives creativity and innovation in our company. Of employees who self-"
2023 ESG REPORT.txt,"novative technology solutions to nonprofit
The program supports active and retired IBMers who Diversity & Inclusion Communities that fostered an
organizations, aiding populations especially vulnerable
donate their time and talents to academia, grassroots environment of conscious inclusivity where differences
to environmental threats and producing outcomes that
initiatives, and organizations helping to build our are embraced and IBMers could make a positive
will lead to a more sustainable world.
communities. IBM routinely brings our workforce together impact on society."
2023 ESG REPORT.txt,"tablishes
charitable giving campaigns where we match
† Restatement from prior year to reflect calculation correction. employee donations 1:1.
IBM Giving
IBMers are committed to engaging with purpose-driven
initiatives through our signature volunteer programs that
align with both the enterprise and our CSR priority areas of $386.9M Total
education, skills and sustainability. Our signature volunteer contributions
programs include:
2023 worldwide
- IBM SkillsBuild & P-TECH: IBM volunteers champion
education equity and workforce inclusion by sharing"
2023 ESG REPORT.txt,"d supply chain responsibility. IBM has received
recognition and awards from numerous advocacy groups, governments, and NGOs for its corporate responsibility efforts. Among IBM’s memberships
and associations are the Climate Registry, the UN Science-Policy Business Forum on the Environment (UN-SPBF), and the Responsible Business
Membership associations Alliance, of which IBM is a founding member. IBM is a core partner of the New York Climate Exchange, focused on building a climate education, 2-28
workforce development and research center in New York City. IBM is also a member of MIT Climate and Sustainability Consortium. IBM has"
2023 ESG REPORT.txt,"evelopment 2023 IBM Impact Report (pages 35-38) 2, 6, 7, 11
Social 413-1
Total contributions worldwide ($M)1 $474.1 $447.9 $386.9
Environment
Contributions by type
Appendix Technology $387.8 $338.4 $307.8
Services $42.1 $64.7 $52.4
Cash $44.2 $44.8 $26.7
Contributions by region
Europe, Middle East, Africa $167.9 $151.1 $144.7
Asia Pacific $150.4 $103.3 $105.2
North America $109.4 $171.6 $116.8
Latin America $46.4 $21.8 $20.1
Worldwide retiree and employee volunteer hours 440,000 431,000 543,000
IBM operates in more than 175 countries and in many of them our workforce is represented by unions and collective bargaining agreements"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"company’s values and Supplier Code of Conduct, the importance
206 Eyes Open Audits in 2023, which
Guided by Cummins’ Code of Business
represented a 34% increase from 2022. expectations and treat their stakeholders in of compliance and how to maintain
These reviews, typically completed during Conduct, the company builds upon its a manner consistent with those values. ethical practices within the supply chain.
visits to suppliers on contract performance,
strong ethical reputation by doing what is
look specifically for problems in worker health, Training sessions cover a wide range of"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"represented a 34% increase from 2022. expectations and treat their stakeholders in of compliance and how to maintain
These reviews, typically completed during Conduct, the company builds upon its a manner consistent with those values. ethical practices within the supply chain.
visits to suppliers on contract performance,
strong ethical reputation by doing what is
look specifically for problems in worker health, Training sessions cover a wide range of
The Supplier Code of Conduct contains clear
worker safety, protecting Cummins’ information, right and keeping commitments. Integrity,"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"lifelong learning opportunities. aim to reflect the communities in which we
worked across a wide variety of community
Through both external initiatives and focused, internal live and work, and it starts at the top. We
initiatives, finding opportunities that leverage the
• Using natural resources in the unique skills of our colleagues worldwide through efforts, we are helping to ensure both current and have the most diverse leadership team in the
future Cummins employees and communities at large
most sustainable way employee-led engagement and our focused efforts company’s history. As Cummins’ diversity"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"nd communities at large
most sustainable way employee-led engagement and our focused efforts company’s history. As Cummins’ diversity
acquire the knowledge and in-demand skills that will
on three global strategic priorities of education,
prepare them for the jobs of the future. We recognize has increased, so too have our innovation,
• Creating better communities equity and the environment.
that good jobs are pathways into the economy —
because we are there community impact and business results.
Our Every Employee Every Community (EEEC) affecting entire families — and appreciate our role"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ompany’s history. As Cummins’ diversity
acquire the knowledge and in-demand skills that will
on three global strategic priorities of education,
prepare them for the jobs of the future. We recognize has increased, so too have our innovation,
• Creating better communities equity and the environment.
that good jobs are pathways into the economy —
because we are there community impact and business results.
Our Every Employee Every Community (EEEC) affecting entire families — and appreciate our role
program enables each employee to use at least in contributing to this change. It is how we win with the power of difference."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"nd customer needs.
positively impact our communities and protect our
ambitious near-term sustainability goals and long-
A constant amidst this time of change is our planet for generations to come.
term aspirations through innovation, dedication and
commitment to creating an inclusive work
continuous demonstration of our Cummins values. JENNIFER RUMSEY, CHAIR AND CEO
environment in which all employees thrive,
can reach their full potential and are connected
to our purpose as well as one another.
An employee in South Africa participates"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"s.
because of the company’s successful execution
36.4%
This includes adhering to ethical practices, of its business strategies.
$1.4 billion
advocating for impactful policies, and investing
Named to the 100 Best Corporate Citizens list recognizing
in its business growth strategy and people.
outstanding environmental, social and governance (ESG)
Board diversity transparency and performance among the 1,000 largest
Research and development
U.S. public companies. The ranking is based on 180 factors
% OF WOMEN around the environment and climate change, employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,", Audit Committee; and the Governance and instance, prompted the addition of historic data back to
the 2018 baseline for locations over which Cummins now
Cummins’ values focused on producing Nominating Committee. Leaders also review
• The CDP’s (formerly the Carbon possesses operational control. Similarly, data for Atmus,
engines that reduced environmental impact, the ESG strategy and progress with the full Disclosure Project) Water and Climate which was divested by Cummins in 2024, was removed
platforms (2019, 2020, 2021, 2022). from Cummins’ reporting scope. Reports on employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ly the Carbon possesses operational control. Similarly, data for Atmus,
engines that reduced environmental impact, the ESG strategy and progress with the full Disclosure Project) Water and Climate which was divested by Cummins in 2024, was removed
platforms (2019, 2020, 2021, 2022). from Cummins’ reporting scope. Reports on employee
supporting healthier communities and board at least once per year. The company’s
data include Meritor in the 2023–2024 reporting
• The Task Force on Climate-Related
embracing diversity and inclusion. Executive Director - Global Risk provides cycle. The employee data for Corporate Responsibility"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"s. Cummins
led the Commercial Vehicles and Machinery category and
GHG Emissions Scope 2
finished No. 123 out of 937 in the overall ranking of just
market-based business behavior. READ MORE
THOUSANDS OF METRIC TONS OF CO 2e Ranked as one of the 100 Best Corporate Citizens,
which recognizes outstanding environmental, social and
governance (ESG) transparency and performance among
the 1,000 largest U.S. public companies. The ranking is based
on 180 factors around the environment and climate change,
employee relations, governance, human rights, stakeholders"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"sterial (CEM), a high-level global
forum to promote policies and programs that advance
clean energy technology, to share lessons learned and best
practices and to encourage the transition to a global clean
energy economy. READ MOREWEIVREVO
2023–2024 SUSTAINABILITY PROGRESS REPORT | Overview Return to Contents | Cummins Inc. | 15
WEIVREVO
Cummins’ commitment: and behaviors and establish a commitment to
lifelong learning and continuous improvement.
Keeping people at the center
INCLUSION IN ACTION
Our active network of more than 150 global employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"provement.
Keeping people at the center
INCLUSION IN ACTION
Our active network of more than 150 global employee
resource groups plays a vital role in fostering a
By blending unwavering innovation and business success
profound sense of belonging at Cummins. We are
intentional about attracting top talent with diverse
with a people-centered approach, we aspire to make
backgrounds, thoughts and ideas, ensuring they
feel fully included when they join the company.
Cummins a unique career destination.
Employee resource groups are organized around"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"and business success
profound sense of belonging at Cummins. We are
intentional about attracting top talent with diverse
with a people-centered approach, we aspire to make
backgrounds, thoughts and ideas, ensuring they
feel fully included when they join the company.
Cummins a unique career destination.
Employee resource groups are organized around
multiple dimensions of diversity and provide safe
spaces for mentoring, celebration and development
opportunities that help to foster community among
WHY CUMMINS? INVESTING IN EMPLOYEE"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"d approach, we aspire to make
backgrounds, thoughts and ideas, ensuring they
feel fully included when they join the company.
Cummins a unique career destination.
Employee resource groups are organized around
multiple dimensions of diversity and provide safe
spaces for mentoring, celebration and development
opportunities that help to foster community among
WHY CUMMINS? INVESTING IN EMPLOYEE
our employees.
WELLNESS AND DEVELOPMENT
At Cummins, we hold a
causes. We strive to develop employees to be
strong reputation as a We are committed to a holistic approach to employee Furthermore, we remain committed to tracking"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ples in everything we conversations around mental health. This initiative competitive differentiator for us as a company.
do, including how to attract, has resonated with employees around the globe THE FUTURE IS BRIGHT
retain and develop our talent. and has now evolved to encompass all aspects of IMPACT BEYOND THE BOTTOM LINE Over the last two decades, Cummins has grown
As I reflect on my 25-plus- wellness, including physical, emotional, financial five times in revenue through global expansion,
Driven by our community engagement and employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"nior leadership skills, develop a
personal connection to Cummins’ leadership culture opportunity to apply for grants from the Cummins MARVIN BOAKYE, VICE PRESIDENT
Foundation for various community projects and AND CHIEF HUMAN RESOURCES OFFICERWEIVREVO
2023–2024 SUSTAINABILITY PROGRESS REPORT | Overview Return to Contents | Cummins Inc. | 16
WEIVREVO
RECENT ACCOLADES:
SOCIAL ASPECT
Given the progress the company has made and the
40% 0.37
27.5% direct correlation between increased business growth
and employee diversity, Cummins was recognized"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"f Corporate Directors (NACD)
Women in Vice Presidents Case Rate* 2023 Diversity, Equity & Inclusion Award READ MORE
the workforce
and above
HEALTH AND SAFETY 2023 Best Place to Work for Disability Inclusion
Social issues ranging from (third consecutive year) READ MORE
community engagement Ranked number four in 2023 on Forbes’ annual
America’s Best Employer for Women READ MORE
to the health and safety
38.9% 3.2 million Top Hispanic Employer by Diversity Magazine READ MORE
of employees are key to
Cummins’ sustainability. Named a winner of Glassdoor’s Employee’s Choice Awards,"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ted by
2023 Bronze-level Military Friendly Employer READ MORE
in U.S. workforce** community giving in 2023
Best Company for LGBTQ+ Employees on Corporate
Equality Index (second consecutive year) READ MORE
LEARN MORE
America’s Top Corporations for Women’s Business
To read more about Cummins’ Enterprises in 2023 (1 of 66 companies) READ MORE
0.78 79%
workforce, see the 2024 Human
Capital Management Report.
World 50 Group’s Shortlist for the 2024
Inclusion & Diversity (I&D) Impact Awards READ MORE
Recordable Every Employee Gold Employer by the India Workplace"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"GBTQ+ Employees on Corporate
Equality Index (second consecutive year) READ MORE
LEARN MORE
America’s Top Corporations for Women’s Business
To read more about Cummins’ Enterprises in 2023 (1 of 66 companies) READ MORE
0.78 79%
workforce, see the 2024 Human
Capital Management Report.
World 50 Group’s Shortlist for the 2024
Inclusion & Diversity (I&D) Impact Awards READ MORE
Recordable Every Employee Gold Employer by the India Workplace
Incidence Rate* Every Community Equality Index 2023 READ MORE
HEALTH AND SAFETY EMPLOYEE PARTICIPATION Inclusive Workplace for Women Award by the"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"and In March, Accelera announced that Marshall and customers around the globe, but
Electrolyzers can be used to produce while leveraging and enhancing County, Mississippi (U.S.), had been also through strategic partnerships
hydrogen gas to power applications employees’ expertise. selected as the future site of advanced and joint ventures.
battery cell manufacturing for the joint
Unique relationships with key players like
venture with Daimler Trucks & Buses US
Daimler Trucks & Buses, PACCAR, EVE
An Accelera employee works on one of the Holding LLC and PACCAR, Amplify Cell"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"data and tools company recently launched Cummins READY with the advancement of technology and
including artificial intelligence, forecasting to power the pathway for inclusive, equitable, industry, including an enhanced focus on
skills and capability needs while harnessing high-quality learning opportunities for tools, skills and talent for the future.
COMPANY 791
the diverse backgrounds and experiences communities around the world. The goal is to The work of Destination Zero starts now RECORD
of their global teams to solve complex help at least one million learners and workers and involves every Cummins employee. 800"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"products by 25%.
3 Partner with customers to reduce
Scope 3 GHG emissions from products
in the field by 55 million metric tons.
4 Reduce emissions of volatile organic
compounds from paint and coating
operations by 50%.
5 Create a circular lifecycle plan for every
part to use less, use better, use again.
6 Generate 25% less waste in facilities and
operations as a percent of revenue.
7 Reuse or responsibly recycle 100%
of packaging plastics and eliminate
single-use plastics in dining facilities,
at employee events and as amenities."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ss
the company in 2024, adoption will be
measured to track progress toward the
2030 goal. Future measurement phases
will concentrate on assessing the extent
to which the end-of-life intentions are
effectively realized within Cummins’
remanufacturing business and
service channels.
CREATING A LIFECYCLE
PLAN FOR EVERY PART
FOUR STEPS TO CREATE A
LIFECYCLE PLAN FOR EACH PART
1 Identify parts type and
determine use profile
2 Select end-of-life intent
Plan for unique parts
3
Alignment and execution
4
A Cummins employee assesses remanufactured parts"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"he
company’s supply chain, click here.TNEMNORIVNE
2023–2024 SUSTAINABILITY PROGRESS REPORT | Environment Return to Contents | Cummins Inc. | 32
Single-use plastics
These are defined as petroleum or
Reuse or responsibly
nonbiodegradable plastics designed to be
recycle 100% of
used one time before they are thrown away
packaging plastics
or recycled, excluding materials required to
and eliminate single-
be used for health and safety, regulatory
use plastics in dining
requirements or Cummins rules.
facilities, at employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"dentified two their site’s unique needs and challenges.
By Q4 of 2023, 21 sites reported to have primary focus areas for plastic
eliminated single-use plastics in their dining
management — packaging
ELIMINATION
2020
facilities, excluding individually packaged COMMITMENT
plastics and single-use plastics.
food items.
Efforts are underway to extend the roadmap
to 17 additional sites from recent acquisitions
that have dining facilities. In line with the
single-use plastics action timeline, targeted
roadmaps for amenity areas and employee SUP ELIMINATED"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"are underway to extend the roadmap
to 17 additional sites from recent acquisitions
that have dining facilities. In line with the
single-use plastics action timeline, targeted
roadmaps for amenity areas and employee SUP ELIMINATED
AMENITIES 2026 (AMENITIES)
events will be launched in future years.
EVENTS 2028 CLOSE GAPS
2030
7
.ON
LAOG
PLANET 2050 GOALS FOR 2030 Packaging plastics Cummins cannot achieve single-use
plastic elimination without the help
Product packaging plastics, including shrink
of employees. To drive employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ion timeline, targeted
roadmaps for amenity areas and employee SUP ELIMINATED
AMENITIES 2026 (AMENITIES)
events will be launched in future years.
EVENTS 2028 CLOSE GAPS
2030
7
.ON
LAOG
PLANET 2050 GOALS FOR 2030 Packaging plastics Cummins cannot achieve single-use
plastic elimination without the help
Product packaging plastics, including shrink
of employees. To drive employee
wrap, stretch wrap and Vapor Corrosion
engagement in the goal, a single-use
Inhibitor (VCI) bags, are used by Cummins to
plastic employee education program was"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"on benefits that exceed
(GHG) emissions GHG emissions reduce Scope 3 compounds from every part to use and operations as packaging plastics in facilities and Cummins’ annual
from facilities from newly sold GHG emissions paint and coating less, use better, a percentage and eliminate operations by 30%. water use in all
and operations products by 25%. from products in the operations by 50%. use again. of revenue. single-use plastics Cummins regions.
by 50%. field by 55 million in dining facilities,
metric tons. at employee events"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"QUITY: Increasing opportunity
electric motor and two 12V batteries.
and equity for those most in need.
HOURS VOLUNTEERED
ENVIRONMENT: Ensuring that
everything Cummins does leads to a
cleaner, healthier and safer environment. 343,000 hours, organizing 11,000 community CUMMINS’ IMPACT
GRANTMAKING IN 2023
events and partnering with 3,300 nonprofits.
Cummins employees volunteer in
3.2M
Percentage of grants by priority area.
their communities through the company’s Coupled with this robust grassroots
Every Employee Every Community (EEEC) model is a company focus on large-scale"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"HTLAEHTNEMNORIVNE
DNA
YTEFAS
,HTLAEH
2023–2024 SUSTAINABILITY PROGRESS REPORT | Health, Safety and Environment Return to Contents | Cummins Inc. | 43
Clear accountability for safety performance This structure supports the long-term
is being reinforced through a regular cadence strategy that serves as a framework
of communications, progress to plans and to improve performance.
common metrics.
These pillars were defined following
extensive interviews with all levels
Driving continuous improvement
of leadership and employee groups,"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"up to 100%. UNDER 20 1.0%2023–2024 SUSTAINABILITY PROGRESS REPORT | Diversity, Equity and Inclusion
NOISULCNI
DNA
YTIUQE
,YTISREVID
2023–2024 SUSTAINABILITY PROGRESS REPORT | Diversity, Equity and Inclusion Return to Contents | Cummins Inc. | 46
DIVING DEEPER ON THE COMPANY’S DIVERSITY EFFORTS LEARNING AND DEVELOPMENT
In 2024, Cummins announced the global rollout of
In 2023, Cummins advanced its DE&I framework by prioritizing the establishment of
the Values Difference proficiency for employees
equitable experiences throughout the employee life cycle of under-represented groups at all levels to recognize the value that different"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"REPRESENTATION GOALS DISABILITY INCLUSION listening systems. Cummins’ newly announced
visible and invisible identities, privilege, biases
aspirational employment representation goals
Cummins’ worldwide gender aspirational goal is Committed to and cultural preferences.
for people with disabilities, along with advancing
50% women in the workforce. Additionally, in the promoting a
neurodivergent hiring pilot programs, will help realize
U.S., a goal has been set for Black and Latino more inclusive
EMPLOYEE RESOURCE GROUPS"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"as well as networking
of underrepresented groups like: Cummins RePower related features integrated into global building
inclusion and support veterans and their families.
events for employees globally.
program for female engineers and technical standards and expand its portfolio of accessible
Along with the new aspirational goals for veteran
professionals, robust training for people managers and technology solutions for employees with disabilities.
employment representation at all levels of the
more than 150 employee resource groups (ERGs). Cummins’ building standards improvements include ADVANCEMENTS IN GENDER EQUITY"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"d with the
inaugural award in 2022. Daniel is now using his voice to contribute to the
development of a natural gas engine that reduces emissions.
Learn more about Daniel’s story.
Cummins’ DE&I leaders gather with representatives
from Juntos in San Luis Potosí, Mexico.2023–2024 SUSTAINABILITY PROGRESS REPORT | Board of Directors Return to Contents | Cummins Inc. | 48
Cummins Board helps to ensure Working with company leadership,
the board engages on a wide range of
the interconnectedness of the
sustainability matters, including employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"compliance initiatives are reflective of the to core policies that are
10 Ethical Principles in the Code of Business Conduct and are translated into seventeen
widely published in physical offices and plants, as well as on languages. These policies set
Cummins believes ethical behavior on the part of every internal websites. These principles are regularly reviewed as part forth the company’s ethical
of formal training and informal conversations across the enterprise: and compliance expectations
employee, contractor, supplier and other business stakeholders and are available on an internal"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"d Compliance function.
1 We will follow the law everywhere.
More than 30 policies
are summarized at the
Cummins is committed to doing business the right way, competing fairly and honestly
2 We will embrace diverse perspectives and backgrounds site, ranging from Cummins’
and following the law everywhere; the 10 Ethical Principles in the Cummins Code of and treat all people with dignity and respect. Anti-Bribery and Prohibited
Payments Policy to the
Business Conduct touch every aspect of Cummins.
3 We will compete fairly and honestly. Employee Non-Retaliation"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"port ethics
to preventing money laundering, data The Ethics and Compliance program
concerns via ethics.cummins.com.
privacy and preventing sexual harassment. includes an annual Ethical Champion
ETHICS CERTIFICATION SURVEY
Cummins has a strict no-retaliation Award that globally recognizes efforts by
The function communicates frequently with
policy protecting employees who make business segments, functions or regional Each year, Cummins requires the exempt
employees about how they play a critical
reports in good faith. Employees can teams that are actively enhancing their employee population to certify that they"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"e and the company’s no- Code of Business Conduct, the Supplier
speaking up when they have concerns. acquisitions and organically, the Ethics
retaliation policy on multiple internal and Code of Conduct, or any underlying policies.
Cummins has a global investigations and Compliance function plays a critical
external platforms. Senior leaders reinforce
team designed to respond to concerns role in ensuring new leaders and the The annual process refreshes and
this by regularly engaging in Ethics and
or suspected violations of the Code of company’s growing employee base are reinforces every employee’s commitment"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ew of the case records that help steward
Conflicts of Interest 31,813 proactive issue identification and risk mitigation.
Data Privacy Training 5,830
Doing Business Ethically 5,797
50% 49% 36%
Export Controls 6,108
Fair Competition 6,015
2,570 CASES IN CASES INSIDE U.S. CASES REPORTED
Protecting Human Rights in the Supply Chain 14,740 NORTH AMERICA ANONYMOUSLY
Treatment of Each Other at Work 31,278
TOTAL CASES 52% 46% 31
Total 138,962
*Anti-money laundering training was being refreshed in 2023.
CASES SUBSTANTIATED EMPLOYEE TERMINATIONS MEDIAN DAYS TO CLOSEECNAILPMOC"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"itted to protecting its Information Technology (IT)
Directors’ Audit Committee on cybersecurity incident management and the status of
assets and the data stored within these assets. This commitment risks. Through these updates, the Audit relevant product cybersecurity activities.
Committee receives a cybersecurity
includes the protection of IT assets relevant to operations, stakeholder The board and its committees are
dashboard illustrating the status of key
engaged in the oversight of Cummins’
data (including employee, customer and supplier data), intellectual"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"s of key which is designed to assess and manage
senior leaders who have functional cybersecurity initiatives and is responsible cybersecurity risks posed by third parties.
responsibility for the mitigation of for the company’s response to material This process is administered by the
enterprise cybersecurity and product cybersecurity incidents. Enterprise Cybersecurity function.
cybersecurity risks. These leaders meet
In addition, the company has a Product
with the committees on a regular basis,
Employee engagement"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"n the company’s
at least four times per year, and provide Cybersecurity Road show to educate their
(Product Cybersecurity MRG), which The best defense against cybersecurity colleagues about the importance of being
dashboards or reports which summarize
cyber smart.
functions as a steering committee to
attacks is having informed and engaged
cybersecurity risks and action plans.
provide oversight and strategic direction
employees. Education and training start
for the product cybersecurity program.
from the moment an employee joins the"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"e technology, trained security functional partnerships that ensure
personnel, access control measures and Cummins’ resiliency.
advanced CCTV surveillance systems to
PRINCIPAL MANUFACTURING SITES2023–2024 SUSTAINABILITY PROGRESS REPORT | Government Relations Return to Contents | Cummins Inc. | 61
Actively shaping policies that advance POLITICAL CONTRIBUTIONS
In the U.S., political contributions are made by the
the company’s strategy and mission
Cummins Inc. Political Action Committee (CIPAC) and
funded solely by voluntary employee contributions."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"licies and bylaws that state:
state, federal and international policy issues in 2023. From setting and pursuing the company’s
• CIPAC contributions are strictly voluntary.
• Employees will not be reimbursed directly or indirectly for
Destination Zero goals to promoting racial equity, Cummins strives to use its voice to shape
political contributions.
• Employees will not be pressured to contribute to CIPAC or make any other
policies that benefit all stakeholders. personal political contribution.
• Failure to contribute to CIPAC shall not disadvantage an employee’s career."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ducts.
and dependability. Materials also have direct
impact on environmental sustainability, One specific process involves software
making it important to optimize the using products’ bill of materials, material
selection to meet product requirements with standards and production methods to
the least environmental impact. Cummins estimate the carbon footprint of Cummins’
invests in lifecycle assessment tools and products down to the assembly and part
level. This technology will be combined with
An employee on the floor of the Chongqing"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ata Cummins also shared the Innovation Gateway Gateway panel for consideration, and a set of Entrepreneurs gain exposure working with Cummins
concept with Minority Supplier Development in the finalists is selected. At the Innovation Gateway finals as they share their ideas on a large stage and partner
from multiple source systems, and enables
U.K. (MSDUK). MSDUK unites innovative and fast- competition, finalists have 10 minutes to present their with Cummins business leaders to evaluate, develop
a strategic shift to using potential customer growing ethnic minority businesses with global idea to a panel of Cummins procurement leaders, and scale innovative concepts. Cummins employee"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"CLIMATE CHANGE MITIGATION Scope 3 emissions Environment – Goal #3 13
Facility emissions Environment – Goal #1 7 13
MATERIAL TOPICS
Low-emissions products Innovation 9 13 17
The results of the double materiality POLLUTION OF AIR Environment and Innovation 13
assessment largely confirmed the
previously identified material impact areas. WATER CONSUMPTION Environment – Goal #8 6 14
Climate change was the top impact WATER WITHDRAWAL Environment – Goal #9 6 1 14 15
area, with human capital management
and other workforce-related matters"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"oducts Innovation 9 13 17
The results of the double materiality POLLUTION OF AIR Environment and Innovation 13
assessment largely confirmed the
previously identified material impact areas. WATER CONSUMPTION Environment – Goal #8 6 14
Climate change was the top impact WATER WITHDRAWAL Environment – Goal #9 6 1 14 15
area, with human capital management
and other workforce-related matters
RESOURCE USE AND CIRCULAR ECONOMY Resource inflows including resource use Environment Goal #5, #6 and #7 12 15
identified as additional high-impact areas. OWN WORKFORCE Working conditions General Workforce 8"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"he
previously identified material impact areas. WATER CONSUMPTION Environment – Goal #8 6 14
Climate change was the top impact WATER WITHDRAWAL Environment – Goal #9 6 1 14 15
area, with human capital management
and other workforce-related matters
RESOURCE USE AND CIRCULAR ECONOMY Resource inflows including resource use Environment Goal #5, #6 and #7 12 15
identified as additional high-impact areas. OWN WORKFORCE Working conditions General Workforce 8
Regarding business continuity, stakeholders
are eager to learn how the company’s Human Capital Management (HCM) General Workforce, HCM 8"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"6 1 14 15
area, with human capital management
and other workforce-related matters
RESOURCE USE AND CIRCULAR ECONOMY Resource inflows including resource use Environment Goal #5, #6 and #7 12 15
identified as additional high-impact areas. OWN WORKFORCE Working conditions General Workforce 8
Regarding business continuity, stakeholders
are eager to learn how the company’s Human Capital Management (HCM) General Workforce, HCM 8
product decarbonization strategy and
portfolio mix will ensure Cummins’
Equal treatment and opportunities for all General Workforce, HCM 5 8"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"l #5, #6 and #7 12 15
identified as additional high-impact areas. OWN WORKFORCE Working conditions General Workforce 8
Regarding business continuity, stakeholders
are eager to learn how the company’s Human Capital Management (HCM) General Workforce, HCM 8
product decarbonization strategy and
portfolio mix will ensure Cummins’
Equal treatment and opportunities for all General Workforce, HCM 5 8
continued and future success. Diversity, equity and inclusion (DE&I) Diversity, Equity and Inclusion 5
Health and safety and community impact Training and skills development General Workforce"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"is a customer-driven, multi- TALENT, TECHNOLOGY AND TOOLS
solution approach that advances engine-based
As Chief Technical Officer (CTO) at Cummins, solutions now while innovating for the future by As CTO, my team and I are ultimately responsible I am incredibly proud of the way we work to lessen
I get to live out my purpose and passion every day, developing new zero-emissions solutions for the for tracking toward and achieving the company’s our environmental impact while doing so in a socially
seeing how our engineering and environmental diverse applications we serve. environmental goals, driven by the work our technical responsible way. As our business and workforce"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"tted to a holistic approach to employee Furthermore, we remain committed to tracking
leaders not only within our company but also in
values-driven organization. wellbeing that encompasses financial, physical and our aspirational representation goals along various
their communities. Potential candidates who are
Integrity, diversity and mental health, which we refer to as Total Rewards. dimensions of diversity. These goals hold us accountable
passionate about making a difference in the world will
inclusion, caring, excellence Since 2020, Cummins has championed “It’s OK,” a for building a workforce that closely resembles"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"S REPORT | Overview Return to Contents | Cummins Inc. | 16
WEIVREVO
RECENT ACCOLADES:
SOCIAL ASPECT
Given the progress the company has made and the
40% 0.37
27.5% direct correlation between increased business growth
and employee diversity, Cummins was recognized
with a number of distinctions in 2023, including:
KEY PERFORMANCE INDICATORS
SOCIAL Women Severity National Association of Corporate Directors (NACD)
Women in Vice Presidents Case Rate* 2023 Diversity, Equity & Inclusion Award READ MORE
the workforce"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"nging from (third consecutive year) READ MORE
community engagement Ranked number four in 2023 on Forbes’ annual
America’s Best Employer for Women READ MORE
to the health and safety
38.9% 3.2 million Top Hispanic Employer by Diversity Magazine READ MORE
of employees are key to
Cummins’ sustainability. Named a winner of Glassdoor’s Employee’s Choice Awards,
honoring the Best Places to Work in 2024. READ MORE
People of Color People impacted by
2023 Bronze-level Military Friendly Employer READ MORE
in U.S. workforce** community giving in 2023"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"tainability. Named a winner of Glassdoor’s Employee’s Choice Awards,
honoring the Best Places to Work in 2024. READ MORE
People of Color People impacted by
2023 Bronze-level Military Friendly Employer READ MORE
in U.S. workforce** community giving in 2023
Best Company for LGBTQ+ Employees on Corporate
Equality Index (second consecutive year) READ MORE
LEARN MORE
America’s Top Corporations for Women’s Business
To read more about Cummins’ Enterprises in 2023 (1 of 66 companies) READ MORE
0.78 79%
workforce, see the 2024 Human"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"advantages is the deep technical expertise
that will play a critical role in delivering
on the PLANET 2050 commitments and
advancing the Destination Zero strategy. RECORD YEAR FOR PATENTS
Cummins is focused on attracting,
In 2023, Cummins reached a record 791 patents.
developing and retaining the needed talent
Teams of engineers, technologists and intellectual
for the business to be successful today property experts around the world work together
every day to innovate and advance the company’s
and for years to come. Leaders now need To support the future workforce, the An evolving workforce is necessary to align"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"s
to help address the worldwide education of this industry before, and now
600
are highly transferable and consistent for 623
crisis by leveraging its global footprint, long-
we’ll do it again. In this new chapter
other technologies. Much of the technical 564
standing commitment to communities, 500
of innovating for low-carbon
knowledge within disciplines and throughout
and the unique skills and expertise of the
a product lifecycle can be applied across the technologies, there is no company 400
company’s talented workforce, particularly"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ummins employees helped a local school in
around an impactful community engagement
the UK partner with an orphanage in Uzbekistan
to build an electric car. The children from the
model, identifying opportunities the company EDUCATION: Improving educational
primary school near Cummins’ manufacturing EMPLOYEES VOLUNTEERED*
systems to ensure that all are ready plant in Darlington, England, connected virtually
has a unique ability to address using both the
with the children from the orphanage on the
for the workforce of tomorrow."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"864 services Fridley, MN
Based on these successes, Cummins CARE expanded in to Black-owned enterprises
LEARN MORE Detroit, MI
2023 with the launch of Cummins CARE Latino, which
Cummins Advocating
will focus initially on predominantly Latino communities Total number of
law and policy 28 changes for Racial Equity Indianapolis, IN
where the company operates — Dallas and El Paso, Texas; changes achieved
Nashville, Tennessee; and central Indiana, in the areas Columbus, IN Rocky Mount, NC
Seymour, IN
of business growth and sustainability, workforce Total number of advocacy efforts 63 efforts Nashville, TN"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"anagement system and
to drive continuous improvement.
processes Cummins uses to plan, design
and sustain continuous improvement in
The three strategic pillars that serve
HSE operations and facilities. It ensures
as the basis of the strategy are:
effective management of change as the
• Empower a culture of HSE excellence company adapts to changing conditions,
Employees at a Cummins plant The company is enhancing structured risk • Reduce risk relentlessly adopts new technology and responds to the
demonstrate the company's reduction through a focus on key sites needs of changing workforce demographics."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"LITY PROGRESS REPORT | Diversity, Equity and Inclusion RReettuurrnn ttoo CCoonntteennttss || CCuummmmiinnss IInncc.. || 4444
Winning with the
power of difference
Diversity, equity and inclusion (DE&I) power innovation
and success among Cummins’ employees, help gain
competitive advantage and guide the company’s actions
and contributions to communities around the world.
As Cummins’ diversity has increased, Meeting the evolving needs of Cummins’
Cummins employees participate in Pride events around
so, too, have the company’s innovation, workforce, the company continuously the world, including in Indianapolis, Indiana (U.S.). LEARN MORE"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"storically been denied access their authentic selves.”
CUMMINS CEO JENNIFER RUMSEY
about the business and moral case for to opportunity, including women, racial WAS APPOINTED AS THE COMPANY’S JENNIFER RUMSEY, CHAIR AND CEO
BOARD CHAIR IN JULY 2023, THE FIRST
diversity, equity and inclusion.
WOMAN TO SERVE IN EITHER ROLE.
NOISULCNI
DNA
YTIUQE
,YTISREVIDNOISULCNI
DNA
YTIUQE
,YTISREVID
2023–2024 SUSTAINABILITY PROGRESS REPORT | Diversity, Equity and Inclusion Return to Contents | Cummins Inc. | 45
GENDER WOMEN IN CUMMINS WORKFORCE RACE AND ETHNICITY IN THE U.S."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"laried / exempt 29.3% 29.4% Salaried / exempt 21.5% 7.2% 8.6% 59.7% 0.4% 1.3% 1.2%
Directors and Executive Directors 27.2% 27.7% Directors and Executive Directors 15.4% 7.3% 7.4% 68.1% 0.4% 0.8% 0.5%
WOMEN ON THE 14-MEMBER
CUMMINS LEADERSHIP TEAM Vice President and above (officers) 40.7% 40.0% Vice President and above (officers) 4.7% 20.9% 9.3% 65.1% 0.0% 0.0% 0.0%
As of Dec. 31, 2023. * Overall includes Exempt, Hourly and Students. Contingent workers not included. * Includes Meritor employees.
NOTE: Based on workforce as of Dec. 31 in both years. NOTE: Based on self-identification as of Dec. 31, 2023."
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ncludes Exempt, Hourly and Students. Contingent workers not included. * Includes Meritor employees.
NOTE: Based on workforce as of Dec. 31 in both years. NOTE: Based on self-identification as of Dec. 31, 2023.
4/5 CUMMINS’ BUSINESS SEGMENTS LED BY
WOMEN — ACCELERA, COMPONENTS,
POWER SYSTEMS AND DISTRIBUTION ASSIGNMENT COUNTRIES REPRESENTATION LANGUAGES SPOKEN AGE
Nearly 60% of Cummins About a third of Cummins employees were Nearly a quarter of Cummins employees self - More than half of Cummins’
employees work outside the U.S. represented by a union as of Dec. 31, 2023. identify as speaking more than one language. workforce was under 40 as"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"tives on which to focus: employees can reach their full potential. Cummins
also offers several trainings and resources to
encourage employees to be conscious of their
ASPIRATIONAL REPRESENTATION GOALS DISABILITY INCLUSION listening systems. Cummins’ newly announced
visible and invisible identities, privilege, biases
aspirational employment representation goals
Cummins’ worldwide gender aspirational goal is Committed to and cultural preferences.
for people with disabilities, along with advancing
50% women in the workforce. Additionally, in the promoting a"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ABILITY INCLUSION listening systems. Cummins’ newly announced
visible and invisible identities, privilege, biases
aspirational employment representation goals
Cummins’ worldwide gender aspirational goal is Committed to and cultural preferences.
for people with disabilities, along with advancing
50% women in the workforce. Additionally, in the promoting a
neurodivergent hiring pilot programs, will help realize
U.S., a goal has been set for Black and Latino more inclusive
EMPLOYEE RESOURCE GROUPS
the company’s objective of a workforce that is"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"round the world.
and a regional-specific aspirational goal of 5% the company
inclusion at Cummins These groups are designed to be safe spaces and
for veterans. This commitment to increase global continues to VETERAN INCLUSION
foster a sense of belonging for employees.
diversity includes multiple initiatives focused on the enhance the
Cummins is accelerating its strategy and engagement
ERGs offer mentoring, training and leadership
attraction, retention, development and advancement accessibility-
for the veteran initiative to improve workforce"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"ciations (ATA) diversity is crucial to their success.
Diversity Equity and Inclusion (DEI) Change Leader Eskenazi Health
Award encourages ATA members to implement a “When I interviewed with Cummins on campus, I could
DEI program or continue to improve an established see that the other people interviewing at the booth
Soldiers’ Angels
company DEI program. “ATA is leading the charge represented different backgrounds,” Daniel says.
to make the trucking industry more diverse, and soldiersangels.org
part of that is recognizing carriers and companies “It’s not just that the workforce is"
2023-2024-Cummins-Sustainability-Progress-Report.txt,"The legislators were impressed
Tim Frazier, speaks at the groundbreaking ceremony.
Behind him is the Cummins truck that will drive over
with CARE’s efforts and investments
the test bed in a pilot expected to begin in 2025.2023–2024 SUSTAINABILITY PROGRESS REPORT | Government Relations Return to Contents | Cummins Inc. | 63
SNOITALER
TNEMNREVOG
in advocating for affordable housing, becoming a person of influence and
accessibility to digital, food and water highlighting ways to create meaningful
resources, workforce development and personal and professional networks."
2023-Allstate-Sustainability-Report-Final.txt,"vercome barriers to thriving-wage employment
and entrepreneurs advancing equity through innovative workforce
development strategies. In 2023, we increased access to workforce training
and preparation programs, expanded advancement opportunities for diverse
leaders and supported workplaces for entrepreneurs. The total contributions
in 2023 for the racial equity pillar were $8.0 million.
Racial Equity Open Funding Opportunity
In 2023, the Foundation released a request for proposals for nonprofits
creating racial equity and inclusivity in the green economy, worker-centric"
2023-Allstate-Sustainability-Report-Final.txt,"ility.com The Allstate Corporation55
Our Ethics and Values Code of Conduct
Allstate’s chief compliance officer reports to the We foster a respectful and inclusive workplace and
chief ethics and privacy officer and oversees the cultivate an environment of respect. Allstate’s Global
Ethics, Regulatory Compliance and Privacy programs. Code of Business Conduct prohibits unlawful harassment,
The Ethics Program protects Allstate’s high ethical discrimination or retaliation in the workplace by anyone:
standards in business practices and values-based employee, vendor, intern, volunteer or contingent worker."
2023-Allstate-Sustainability-Report-Final.txt,"to our
and adaptation. customers while also improving communities
and creating opportunities for our team and
• We are committed to transitioning 100% of Allstate's
economic value for our shareholders. We invite
fleet to hybrid vehicles by 2025, with 58% of our vehicles
you to read more about our progress in this
already being hybrid at year-end 2023.
report and join us on this journey.
• Approximately 6% of Allstate’s procurement spend was
with minority-, women-, and veteran-owned businesses.
• Allstate's employee engagement scores rebounded"
2023-Allstate-Sustainability-Report-Final.txt,"essing a favorable view of engagement, surpassing
industry benchmarks.
ELLIOT STULTZ
Chief Sustainability Officer
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation4
Our Integrated
Approach
Our Shared Purpose is to empower customers with
protection to help them achieve their hopes and
dreams. It’s the why behind everything we do. Our
purpose and values guide how we run the business, and
our strategies focus on people, planet and prosperity.
People Planet Prosperity
Customer protection and employee Allstate seeks to make insurance Allstate ensures customers have"
2023-Allstate-Sustainability-Report-Final.txt,"chain help us return for customers, employees,
better tomorrow.
better serve our employees and shareholders and communities.
customers. Allstate and The Allstate Weather related catastrophes Allstate is a leading digital insurer
Foundation continue to make a have been more severe, impacting and champion for data privacy. We
difference for the people in our customers and our business. have robust information security
communities. Our success relies on modeling, policies and systems that protect
pricing and managing climate- customer and employee data. We"
2023-Allstate-Sustainability-Report-Final.txt,"lent Management and Support
Results and Development
Inclusive
Capital and Diversity
The matrix illustrates the outcomes Risk Management and Equity P Inr no od vu ac tt is o nand
of our materiality assessment. The Decarbonization and Low
Carbon Economy
results strongly align with Allstate’s Public Policy
Compliance and Advocacy
existing Transformative Growth and Ethics
strategy, Societal Engagement Corporate Governance and
Board Composition
Framework and Our Shared Purpose, Financial Sustainable
Employee Health, Safety Inclusion Investment"
2023-Allstate-Sustainability-Report-Final.txt,"ow likely customers are to recommend Allstate, and 400 part-time employees, including about
was 51.2 at the end of 2023. We’re working to 27,700 full-time and 170 part-time Allstate
dramatically elevate our customer experience U.S. employees. In 2023, we cut our voluntary
relative to peers by meaningfully improving 20 turnover rate in half at Allstate U.S. year-over-year
million customer interactions annually to drive to 12%.
growth and retention.
• In 2023, Allstate conducted Allstate Asks, an
• In 2023, Allstate Identity Protection maintained employee survey for the global workforce. In"
2023-Allstate-Sustainability-Report-Final.txt,"matically elevate our customer experience U.S. employees. In 2023, we cut our voluntary
relative to peers by meaningfully improving 20 turnover rate in half at Allstate U.S. year-over-year
million customer interactions annually to drive to 12%.
growth and retention.
• In 2023, Allstate conducted Allstate Asks, an
• In 2023, Allstate Identity Protection maintained employee survey for the global workforce. In
a post-remediation satisfaction score of 98%. 2024, we aim to introduce four more global
In 2024, we have a goal to maintain or improve workforce pulse surveys on the employee"
2023-Allstate-Sustainability-Report-Final.txt,"aningfully improving 20 turnover rate in half at Allstate U.S. year-over-year
million customer interactions annually to drive to 12%.
growth and retention.
• In 2023, Allstate conducted Allstate Asks, an
• In 2023, Allstate Identity Protection maintained employee survey for the global workforce. In
a post-remediation satisfaction score of 98%. 2024, we aim to introduce four more global
In 2024, we have a goal to maintain or improve workforce pulse surveys on the employee
this score. experience.
• Allstate is increasing and enhancing customer • Allstate’s employee engagement scores have"
2023-Allstate-Sustainability-Report-Final.txt,"Allstate allocated $201 million to climate
investments in our investment portfolio across
climate mitigation and adaptation.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation11
We also track metrics related to material
issues for external stakeholders, including:
Decarbonization and Inclusive Diversity & Equity
Low Carbon Economy • In 2023, 55% of Allstate's U.S. workforce and 45%
• Allstate aims to achieve net zero Scope 1 and 2 of the management team were women.
emissions by 2030, with 93,521 mtCO₂e total Scope • Allstate’s employee engagement scores in the"
2023-Allstate-Sustainability-Report-Final.txt,"nizational culture
make an impact. We have an inclusive for approximately 53,000 full-time and 400 part-time Allstate
workplace, a diverse workforce employees. While full-time employees make up 99% of our workforce,
and equitable practices that help our organizational culture extends to employees of all types.
us better serve our employees,
We created a $10 million “2023 Connection Budget” for activities
customers and community. We
that bring Allstaters together for connection and belonging. We
invest in health and safety, employee"
2023-Allstate-Sustainability-Report-Final.txt,"have an inclusive for approximately 53,000 full-time and 400 part-time Allstate
workplace, a diverse workforce employees. While full-time employees make up 99% of our workforce,
and equitable practices that help our organizational culture extends to employees of all types.
us better serve our employees,
We created a $10 million “2023 Connection Budget” for activities
customers and community. We
that bring Allstaters together for connection and belonging. We
invest in health and safety, employee
ensured employee safety, enhancing occupational health and safety"
2023-Allstate-Sustainability-Report-Final.txt,"r workforce,
and equitable practices that help our organizational culture extends to employees of all types.
us better serve our employees,
We created a $10 million “2023 Connection Budget” for activities
customers and community. We
that bring Allstaters together for connection and belonging. We
invest in health and safety, employee
ensured employee safety, enhancing occupational health and safety
wellbeing, talent development,
training and office risk assessment resources. We modernized talent
employee engagement and more"
2023-Allstate-Sustainability-Report-Final.txt,"ere everyone can grow
and succeed. We doubled paid leave time for new parents to six weeks, offered
employees more financial support for surgeries and expanded
retirement savings options. We also offered employees a variety of
programs to support their mental, physical, emotional and financial
wellness.
These efforts helped us cut our voluntary turnover rate in half at
Allstate U.S. year-over-year to 12%, while our average calendar
year absentee rate of 3% stayed in line with national averages.
The percentage of Allstaters with favorable views of employee"
2023-Allstate-Sustainability-Report-Final.txt,"hese efforts helped us cut our voluntary turnover rate in half at
Allstate U.S. year-over-year to 12%, while our average calendar
year absentee rate of 3% stayed in line with national averages.
The percentage of Allstaters with favorable views of employee
engagement rebounded to pre-pandemic levels.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation19
Talent Strategy
Allstate provides employees with rewarding work,
professional growth and educational opportunities.
We deliver a meaningful employee experience by"
2023-Allstate-Sustainability-Report-Final.txt,"rship
team. Talent Management
• Building marketable skills and knowledge. Allstate is putting capabilities and skills at the center
of our talent practices. We’re nurturing continuous
• Creating a diverse and inclusive workforce.
learning, adapting to changing business demands
• Engaging and empowering employees to and aligning individual and team skills with the
perform at their best. organization's goals. We quickly identify skill strengths
and gaps and empower employees to gain new skills so
• Providing an exceptional employee experience."
2023-Allstate-Sustainability-Report-Final.txt,"ork-related environment for everyone, including contractors.
health and safety incidents and train employees to Allstate India identified and addressed potential
reduce them. We extend our OHS criteria beyond risks and hazards across all areas of operation.
internal operations to procurement and contractual Building systems that contribute to a strong
requirements. safety culture, encourage participation and
promote open communication enhanced
In 2023, we enhanced health and safety at Allstate.
employee engagement."
2023-Allstate-Sustainability-Report-Final.txt,"available
to all employees.
• We posted weekly Safety Food For Thought
memos on our internal site, AllConnect.
• We made ergonomic safety more visible to
employees on AllConnect.
• We launched safety training for field adjusters.
• We started a self-safety risk assessment
program for our low-risk sites. This allows Allstate
health and safety staff and third-party vendors to
prioritize assessing higher-risk sites.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation21
Benefits Employee Support Programs"
2023-Allstate-Sustainability-Report-Final.txt,"y developed offerings and
for employees’ mental, physical, financial and are moving content to one learning management
social needs. Employees who participate in certain system, Workday. We stopped courses with low
programs and track activities through Virgin Pulse attendance and reduced 40% of content volume,
can earn up to $200 in wellness incentives. saving about $1.2 million a year in vendor costs.
• RethinkCare: Digital mindfulness platform to In 2023, we increased the dollars invested and
support resilience, stress management, performance time spent on a full-time employee for training and"
2023-Allstate-Sustainability-Report-Final.txt,"1 2022 2023
recorded and available on demand.
Average dollar amount spent per
• Guided Meditations: Weekly live or virtual sessions. 599 582 629
FTE on training and development*
• Yoga: Weekly live or virtual sessions.
Average hours spent per FTE on
35 58 66
• Energy for Life: An extensive program where training and development**
employees can clarify their personal purpose,
develop skills to manage stress, and learn ways to *Allstate U.S., excludes National General and the family of companies.
get healthier in mind, body and spirit. Includes costs such as employee tuition reimbursement, workshops,"
2023-Allstate-Sustainability-Report-Final.txt,"many applications knowledge checks and surveys for learners’ feedback.
as those without. To strengthen the connections among For programs that are more intensive and require a
teams that may not work in the same place, we dedicated higher commitment, surveys are done immediately
$10 million to in-person and virtual social events, travel after the program, at 60 days and at 180 days. These
budgets and other activities. Flexible work also means are sent to the learner and their manager to assess
that when an employee moves for personal reasons, they how effective the learning was and how it applies to"
2023-Allstate-Sustainability-Report-Final.txt,"s are matched with employees and
use their social capital, networks and influence to advocate for them.
Leadership Programs
In 2023, we expanded leadership development with programs for first-
time leaders and mid-level leaders as part of a Leadership Academy with
world-class user experience. We piloted Leading at Allstate, our first such
enterprise-wide offering. Notably, over 250 leaders completed live sessions,
In 2023,
with feedback indicating a 95% willingness to recommend the learning and
~700 97% employee satisfaction with the content."
2023-Allstate-Sustainability-Report-Final.txt,"tity Protection. Degreed consolidates internal and third-party content,
including LinkedIn Learning, getAbstract, Harvard Spark and our newest
learning provider, Aperian (GlobeSmart), which helps employees work
more inclusively and increase their global mindsets and behaviors. In 2023,
Degreed delivered more than 450,000 hours of learning to 28,000 unique
learners at Allstate, who completed about 482,000 courses.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation24
Employee Engagement Simply put, data from Allstate Asks tells us what"
2023-Allstate-Sustainability-Report-Final.txt,"t 482,000 courses.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation24
Employee Engagement Simply put, data from Allstate Asks tells us what
employees like and don’t like.
When employees are engaged, they’re more fulfilled, • Thumbs-up for flexible work. There were no
which improves their wellbeing and the company’s meaningful differences in sentiment of home-based,
business success. In 2023, Allstate implemented hybrid and office workers, and employees appreciate
strategies that focused on flexible work, employee the flexibility of remote work."
2023-Allstate-Sustainability-Report-Final.txt,"preciate
strategies that focused on flexible work, employee the flexibility of remote work.
listening, inclusion, diversity, equity and recognition.
• Props for peer recognition. Getting recognition
For example, we have a Wellbeing Champion
from coworkers increases perceptions of growth
community that makes wellbeing accessible to
and development and attitudes toward rewards and
employees and embeds it into the culture. In 2024,
recognition.
Wellbeing Champions will expand to global offices and
integrate with employee onboarding. • Kudos for inclusive and diverse culture. There were"
2023-Allstate-Sustainability-Report-Final.txt,".
listening, inclusion, diversity, equity and recognition.
• Props for peer recognition. Getting recognition
For example, we have a Wellbeing Champion
from coworkers increases perceptions of growth
community that makes wellbeing accessible to
and development and attitudes toward rewards and
employees and embeds it into the culture. In 2024,
recognition.
Wellbeing Champions will expand to global offices and
integrate with employee onboarding. • Kudos for inclusive and diverse culture. There were
no meaningful differences in employee sentiment"
2023-Allstate-Sustainability-Report-Final.txt,"rs increases perceptions of growth
community that makes wellbeing accessible to
and development and attitudes toward rewards and
employees and embeds it into the culture. In 2024,
recognition.
Wellbeing Champions will expand to global offices and
integrate with employee onboarding. • Kudos for inclusive and diverse culture. There were
no meaningful differences in employee sentiment
Allstate Asks across gender or racial groups. Employees praised
our inclusive culture and commitment to diversity.
So how do we measure employee engagement?"
2023-Allstate-Sustainability-Report-Final.txt,"es and embeds it into the culture. In 2024,
recognition.
Wellbeing Champions will expand to global offices and
integrate with employee onboarding. • Kudos for inclusive and diverse culture. There were
no meaningful differences in employee sentiment
Allstate Asks across gender or racial groups. Employees praised
our inclusive culture and commitment to diversity.
So how do we measure employee engagement?
Diversity training is viewed positively.
Through Allstate Asks, a survey that goes out in the
second quarter of each year. Our previous employee • Our managers and team members are supportive"
2023-Allstate-Sustainability-Report-Final.txt,"praised
our inclusive culture and commitment to diversity.
So how do we measure employee engagement?
Diversity training is viewed positively.
Through Allstate Asks, a survey that goes out in the
second quarter of each year. Our previous employee • Our managers and team members are supportive
survey, Inspire, was restructured in 2023 to capture and caring. Many employees expressed appreciation
better results and renamed Allstate Asks. It assesses for their direct managers, who provide coaching,
employee sentiment around topics like their sense are open to feedback and care about employee"
2023-Allstate-Sustainability-Report-Final.txt,"ck in 2023, and culture of collaboration.
engagement has rebounded to pre-pandemic (2020)
What are employees not so excited about? They want
levels. In 2023, 83.5% of respondents had a favorable
updated tools and processes, more clarity of vision from
view of engagement at Allstate, up 1.5 percentage
senior leadership, workloads that are more manageable
points over the prior year and higher than other
and better support with career development. We’ll work
industry benchmarks, which average 79%.
on these to keep improving employee engagement."
2023-Allstate-Sustainability-Report-Final.txt,"a In 2023, we significantly advanced our IDE strategy to hire quality
core value at Allstate, and it's brought talent, enable and expand leadership strength, and build market-
to life by our purpose-driven employees. ready capabilities with an engaged and high-performing workforce.
So why do we call it Inclusive Diversity We made great strides to foster a resilient workforce while prioritizing
& Equity? Because being inclusive is talent development, retention and mobility practices that empower
essential to diversity and equity. If we’re every employee to reach their career aspirations."
2023-Allstate-Sustainability-Report-Final.txt,"guides who we are and how we
organizations for IDE progress, including Fair360 (formerly
conduct ourselves. We work to attract,
DiversityInc), Black Enterprise and Forbes. Allstate was again
nurture and retain a diverse and skilled
named to the Fair360 Top 50 Companies for Diversity. The list
workforce that reflects our customers and
recognizes large U.S. employers that model fairness in their
communities. We do so by capitalizing
talent strategy, workplace and supplier diversity practices and
on our employee-centered programs and"
2023-Allstate-Sustainability-Report-Final.txt,"s. We work to attract,
DiversityInc), Black Enterprise and Forbes. Allstate was again
nurture and retain a diverse and skilled
named to the Fair360 Top 50 Companies for Diversity. The list
workforce that reflects our customers and
recognizes large U.S. employers that model fairness in their
communities. We do so by capitalizing
talent strategy, workplace and supplier diversity practices and
on our employee-centered programs and
philanthropic engagement.
practices, many of which are described in
the Organizational Culture section of this • Employee engagement scores: Allstate is well above industry"
2023-Allstate-Sustainability-Report-Final.txt,"3, about 50% of
our new hires didn’t have bachelor’s degrees, an increase of about
20 percentage points over the prior year.
Compensation
To ensure fair and equitable compensation practices, every year
we complete a pay equity analysis comparing the pay of men and
women, and non-minorities and minorities in similar jobs. If we find
statistically significant gaps, we correct them. External analyses
found that Allstate’s results compared well to benchmarks for
companies of similar size and scope.
Employee Impact Groups"
2023-Allstate-Sustainability-Report-Final.txt,"mparing the pay of men and
women, and non-minorities and minorities in similar jobs. If we find
statistically significant gaps, we correct them. External analyses
found that Allstate’s results compared well to benchmarks for
companies of similar size and scope.
Employee Impact Groups
Our people work at Allstate because it’s more than just a job or a
paycheck. It gives them opportunities. To be part of a community.
Allstate EIGs in
To help others feel like they belong. To collaborate on business
solutions. That’s why Allstate supports and funds nine Employee"
2023-Allstate-Sustainability-Report-Final.txt,"them. External analyses
found that Allstate’s results compared well to benchmarks for
companies of similar size and scope.
Employee Impact Groups
Our people work at Allstate because it’s more than just a job or a
paycheck. It gives them opportunities. To be part of a community.
Allstate EIGs in
To help others feel like they belong. To collaborate on business
solutions. That’s why Allstate supports and funds nine Employee
the Community
Impact Groups (EIGs) and two Business Impact Groups (BIGs).
EIGs are voluntary employee-led groups that promote inclusivity,"
2023-Allstate-Sustainability-Report-Final.txt,"o be part of a community.
Allstate EIGs in
To help others feel like they belong. To collaborate on business
solutions. That’s why Allstate supports and funds nine Employee
the Community
Impact Groups (EIGs) and two Business Impact Groups (BIGs).
EIGs are voluntary employee-led groups that promote inclusivity,
We participated in three
diversity and equity. They strengthen communities through
Pride parades and festivals
connection, inclusive support and career development. EIGs
celebrating LGBTQ+
increase employee engagement and retention, expand networking"
2023-Allstate-Sustainability-Report-Final.txt,"ipated in at least one EIG.
steps on the parade routes,
In 2023, employees created Native American Peoples at Allstate, which generated donations to
the first new EIG since 2016. Native helps members with career local nonprofits focusing on
development and celebrates Native American cultures. It also LGBTQ+ community resources
works to make Allstate a premier employer for Native American and services.
people.
Inclusive Diversity Index
One of the reasons our employees are engaged is our focus on
Inclusive Diversity & Equity. Employee engagement scores in"
2023-Allstate-Sustainability-Report-Final.txt,"ability.com The Allstate Corporation30
Our Global
Impact
Allstate India
Allstate India was awarded the
2023 Diversity, Equity and Inclusion
Champions Award for Excellence
in Women's Inclusion at the 15th
NASSCOM Global Inclusion Summit.
This award recognizes Allstate
India's efforts in empowering
women from underserved communities through the
AllMama and Women's “I” Network group. AllMama
offers new and expectant mothers physical, mental and
transitional support to help them return to work. The
Allstate Women's “I” Network is an Employee Impact"
2023-Allstate-Sustainability-Report-Final.txt,"Council (CAMSC), helping us to identify diverse suppliers
for inclusion in local sourcing opportunities. We also collaborated with Indspire (a national charity that
invests in the education of First Nations, Inuit and Métis people) on the Building Brighter Futures Bursary
program. It supports our commitment to the Truth and Reconciliation Commission of Canada's Call to
Action #92 by sponsoring the education of Indigenous youth to bolster the Indigenous workforce and
create a larger talent pool.
We established an Employee Impact Group to help engage and retain LGBTQ+ employees at Allstate"
2023-Allstate-Sustainability-Report-Final.txt,"loyees, the
planet and the community. ANI was the first company in the
United Kingdom and Ireland to earn the Gold Diversity Mark
for building an inclusive and diverse workplace.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation31
Community
Impact
Our Ambition Our Progress in 2023
The Allstate Foundation works to make an impact In 2023, the Foundation examined its work
across three pillars — empowering youth, ending and priorities and refined its vision, goals and
relationship abuse and closing the racial wage gap measurement. An increased focus on employee"
2023-Allstate-Sustainability-Report-Final.txt,"its work
across three pillars — empowering youth, ending and priorities and refined its vision, goals and
relationship abuse and closing the racial wage gap measurement. An increased focus on employee
— using trust-based philanthropy. This approach and consumer participation strengthened the
is unique among foundations and empowers those Foundation’s impact and achievements in each pillar.
closest to the issues to use grant funds where they’ll
have the most impact. The Foundation also supports
and encourages employee and agent volunteerism,"
2023-Allstate-Sustainability-Report-Final.txt,"lunteering events, employees and agents used their
skills and expertise to help 47 nonprofits within the Foundation’s pillars solve
critical challenges. Cumulatively, Allstate employees and agents donated
more than 1,400 hours of their time and expertise.
Nonprofit Leadership Center
Since 2014, The Allstate Foundation has partnered with the Kellogg School of
Management’s Center for Nonprofit Management at Northwestern University.
The Foundation makes free development programs available to every
nonprofit employee in the nation through the Nonprofit Leadership Center. In"
2023-Allstate-Sustainability-Report-Final.txt,"over 186,000
volunteer hours. Recognizing their specialized skills and the value
they offer, we encourage and support skills-based volunteerism
and pro bono programs. In 2023, more than 600 Allstaters
participated. Through the Allstate Officer Nonprofit Board
Program, officers contribute to the boards of nonprofits whose
missions align with the Foundation’s strategic social impact areas.
In 2023, 63 nonprofit organizations benefited from Allstate officers
serving on their boards.
Helping Hands
The Helping Hands program inspires employee and agent giving"
2023-Allstate-Sustainability-Report-Final.txt,"hed its strategic
plan for social impact, with a more targeted mission to foster
an environment of inclusion, involvement and empowerment
for those who face barriers to financial independence. The
Allstate Foundation of Canada supported registered charitable
organizations championing inclusive and accessible housing and
disrupting the cycle of domestic abuse, and empowered Allstate
Canada employees to make an impact in their community.
Between The Allstate Foundation of Canada and corporate and
employee contributions, a total of $634,124 (U.S.) was donated"
2023-Allstate-Sustainability-Report-Final.txt,"mework,
employees and customers.
governance structure and decision-making.
In assessing climate change and its substantive
• Allstate’s chief risk officer is responsible for
impact on the company, Allstate considers multiple
the design and execution of Allstate’s risk
factors such as the pace of change, potential impact
management program, including the management
and relationship to strategic goals. Allstate’s risk
of climate-related risks.
analysis incorporates the full value chain, including
financial, customer, employee, agent, reputation, Read more about Allstate’s climate-related scenario"
2023-Allstate-Sustainability-Report-Final.txt,", with the vast majority of these coming from two categories: purchased
goods and services (Category 1) and capital goods (Category 2).
2022 Scope 3 Emissions (mtCO₂e): Upstream transportation and distribution
Scope 3 Category 1: 444,869 Scope 3 Category 5: 1,625
500,000
444,869
Purchased goods and services Waste generated in operations
400,000
Scope 3 Category 2: 24,780 Scope 3 Category 6: 9,119
Capital goods Business travel
300,000
Scope 3 Category 3: 30,465 Scope 3 Category 7: 13,198
200,000
Fuel- and energy-related activities Employee commuting"
2023-Allstate-Sustainability-Report-Final.txt,"Scope 3 Category 1: 444,869 Scope 3 Category 5: 1,625
500,000
444,869
Purchased goods and services Waste generated in operations
400,000
Scope 3 Category 2: 24,780 Scope 3 Category 6: 9,119
Capital goods Business travel
300,000
Scope 3 Category 3: 30,465 Scope 3 Category 7: 13,198
200,000
Fuel- and energy-related activities Employee commuting
Scope 3 Category 4: 13,869
100,000
24,780 30,465 13,869 1,625 9,119 13,198
0
Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7
Purchased goods Capital goods Fuel and energy- Upstream transportation Waste generated Business travel Employee"
2023-Allstate-Sustainability-Report-Final.txt,"gory 2 Category 3 Category 4 Category 5 Category 6 Category 7
Purchased goods Capital goods Fuel and energy- Upstream transportation Waste generated Business travel Employee
and services related activities and distribution in operations commuting
2021 Scope 3 Emissions (mtCO₂e): Scope 3 Category 5: 59
Scope 3 Category 1: 405,075 Waste generated in operations
Purchased goods and services Scope 3 Category 6: 6,990
Scope 3 Category 2: 10,103 Business travel
Capital goods Scope 3 Category 7: 54,566
Scope 3 Category 3: 16,573 Employee commuting"
2023-Allstate-Sustainability-Report-Final.txt,"tegory 2: 10,103 Business travel
Capital goods Scope 3 Category 7: 54,566
Scope 3 Category 3: 16,573 Employee commuting
Fuel- and energy-related activities
Scope 3 Category 4: 29,947
Upstream transportation and distribution
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation
e₂OCtm
Scope 3 Category
e₂OCtm
500,000
405,075
400,000
300,000
200,000
100,000
54,566
29,947
10,103 16,573 59 6,990
0
Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7
Purchased goods Capital goods Fuel and energy- Upstream transportation Waste generated Business travel Employee"
2023-Allstate-Sustainability-Report-Final.txt,", air quality, rights and community chain management,
energy management, water and wastewater relations, customer privacy, business model resilience,
management, waste and hazardous materials data security, access and product life cycle and
management, ecological impacts and physical affordability, product quality design, business ethics,
impacts of climate change. and safety, customer welfare, competitive behavior,
selling practices, labor regulatory and legal
The immediate business impacts of
practices, employee health environment and risk"
2023-Allstate-Sustainability-Report-Final.txt,"er relations, customer privacy, business model resilience,
management, waste and hazardous materials data security, access and product life cycle and
management, ecological impacts and physical affordability, product quality design, business ethics,
impacts of climate change. and safety, customer welfare, competitive behavior,
selling practices, labor regulatory and legal
The immediate business impacts of
practices, employee health environment and risk
environmental factors such as biodiversity
and safety and employee management."
2023-Allstate-Sustainability-Report-Final.txt,"or Older Adults
the balance between enabling PI use and programs included 10,026 kids (about a 2.4x increase from
managing it. Privacy differentiates us 2022) and 667 adults (a 14% increase from 2022). We’ve
from competitors and enhances customer delivered trainings across the lifetime of all Allstate Cyber
experiences, choices and protections. Safety programs to over 30,000 individuals worldwide.
Allstate Information Security protects • We expanded Allstaters’ understanding of phishing and how
customer and employee data from being to report it, reducing our human risk factor in preventing a"
2023-Allstate-Sustainability-Report-Final.txt,"ility.com The Allstate Corporation55
Our Ethics and Values Code of Conduct
Allstate’s chief compliance officer reports to the We foster a respectful and inclusive workplace and
chief ethics and privacy officer and oversees the cultivate an environment of respect. Allstate’s Global
Ethics, Regulatory Compliance and Privacy programs. Code of Business Conduct prohibits unlawful harassment,
The Ethics Program protects Allstate’s high ethical discrimination or retaliation in the workplace by anyone:
standards in business practices and values-based employee, vendor, intern, volunteer or contingent worker."
2023-Allstate-Sustainability-Report-Final.txt,"Global Code of Employees who engage in these behaviors can be fired.
Business Conduct by:
The Global Code of Business Conduct also outlines
• Establishing and monitoring standards and Allstate’s commitment to protecting confidential and
procedures. restricted information. This commitment pertains to
many types of data, including customer data.
• Educating employees.
• Leading the Speak Up and Annual Code
Human Rights
Certification processes.
We don’t look the other way when we see human rights
Our annual employee surveys measure the ethical"
2023-Allstate-Sustainability-Report-Final.txt,"migrant workers. This process
covers risk identification in:
• Our operations.
• Our value chain or other activities related to our
business.
• New business relations (mergers, acquisitions, joint
ventures, etc.).
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation56
We also perform a due diligence risk identification • Providing a phone hotline and electronic reporting
process to ensure freedom of association, the mechanism, including an anonymous option, to every
right to collective bargaining, equal pay and anti- employee who has a concern."
2023-Allstate-Sustainability-Report-Final.txt,"ach to human rights and working Two categories of reports are referred to the chief
conditions. legal officer (CLO) for investigation: Concerns about
a possible violation of the law and complaints about
• Expecting suppliers to comply with all applicable
disclosure, accounting, auditing or other financial or
safety and health laws and regulations in the
reporting practices. The CLO may refer these to the Audit
countries where they operate.
Committee. Allstate policy prohibits anyone, co-workers
• Requiring all employees to complete an annual or managers, from retaliating against an employee"
2023-Allstate-Sustainability-Report-Final.txt,"applicable
disclosure, accounting, auditing or other financial or
safety and health laws and regulations in the
reporting practices. The CLO may refer these to the Audit
countries where they operate.
Committee. Allstate policy prohibits anyone, co-workers
• Requiring all employees to complete an annual or managers, from retaliating against an employee
compliance confirmation of the Global Code of who raises an issue. Retaliation may result in discipline,
Business Conduct. including termination.
Employee: Action"
2023-Allstate-Sustainability-Report-Final.txt,"s,
and protect Allstate’s brands and reputation.
Our suppliers have to comply with all laws and regulations. This includes:
• Human rights: Suppliers must uphold principles surrounding
freedom of association, unlawful detention, forced or voluntary labor
practices and safe and sanitary work environments, including rest
and eating facilities. We do not permit, condone or accept any form
of slavery or human trafficking by employees, suppliers, agents or
other entities Allstate does business with.
• Fair compensation: A supplier’s employee should be paid at least"
2023-Allstate-Sustainability-Report-Final.txt,"o
*Allstate and The Allstate Foundation also support international causes via organizations based in the United States. For example, The Allstate
Foundation supported Ukraine in 2023 by donating to the American National Red Cross & Center for Disaster Philanthropy Inc. Geographical financial
assistance is reported using the location(s) of the organization(s) that receive funding directly from Allstate and The Allstate Foundation, rather than by
where that funding is ultimately used or provided.
**As of December 31, 2023. “Employees per country” does not include employee counts for countries with less than 20 employees. All part-time and"
2023-Allstate-Sustainability-Report-Final.txt,"loyees are included in the “Total global employees.”
*** Information security breaches are defined as unauthorized access to computer data, applications, networks, devices, protected systems and data.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation64
Policies
Allstate policies pertaining to governance of sustainability-related topics. Internal policies are noted but not linked.
Publicly-available policies are noted and linked.
Policy
Fair Remuneration Policy Yes
Employee Training Policy Yes"
2023-Allstate-Sustainability-Report-Final.txt,", protected systems and data.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation64
Policies
Allstate policies pertaining to governance of sustainability-related topics. Internal policies are noted but not linked.
Publicly-available policies are noted and linked.
Policy
Fair Remuneration Policy Yes
Employee Training Policy Yes
Equal Opportunity Policy Yes
Human Rights Policy Yes
Policy Against Child Labor Yes
Business Ethics Policy Yes
Anti-Bribery Ethics Policy Yes
Employee Privacy Statement Yes"
2023-Allstate-Sustainability-Report-Final.txt,"023 Sustainability Report | AllstateSustainability.com The Allstate Corporation64
Policies
Allstate policies pertaining to governance of sustainability-related topics. Internal policies are noted but not linked.
Publicly-available policies are noted and linked.
Policy
Fair Remuneration Policy Yes
Employee Training Policy Yes
Equal Opportunity Policy Yes
Human Rights Policy Yes
Policy Against Child Labor Yes
Business Ethics Policy Yes
Anti-Bribery Ethics Policy Yes
Employee Privacy Statement Yes
Employee Protection / Whistle Blower Policy Yes"
2023-Allstate-Sustainability-Report-Final.txt,"d
providers. The data below represents hours from four of Allstate’s 2023 Degreed
learning and development providers (getAbstract, LinkedIn Learning, Spark and
Udemy) and does not include non-required learning hours or partial completions. Data
coverage is communicated per breakdown type in consideration of Allstate and the
Allstate family of companies.
The Organizational Culture section of this report includes additional detail pertaining to
learning, training and development data at Allstate.
Average hours per employee of learning and Average hours per employee of learning and"
2023-Allstate-Sustainability-Report-Final.txt,"g hours or partial completions. Data
coverage is communicated per breakdown type in consideration of Allstate and the
Allstate family of companies.
The Organizational Culture section of this report includes additional detail pertaining to
learning, training and development data at Allstate.
Average hours per employee of learning and Average hours per employee of learning and
development, broken down by learning provider development by gender
Learning & Average Hours per Average Hours per Global
Development Provider Global Employee Gender Employee (excluding"
2023-Allstate-Sustainability-Report-Final.txt,"tional Culture section of this report includes additional detail pertaining to
learning, training and development data at Allstate.
Average hours per employee of learning and Average hours per employee of learning and
development, broken down by learning provider development by gender
Learning & Average Hours per Average Hours per Global
Development Provider Global Employee Gender Employee (excluding
Allstate Canada)
getAbstract 0
Female 9.2
LinkedIn Learning 2.55
Male 8.6
Spark 0.06
Udemy 0.23
Average hours per employee of learning and"
2023-Allstate-Sustainability-Report-Final.txt,"Allstate.
Average hours per employee of learning and Average hours per employee of learning and
development, broken down by learning provider development by gender
Learning & Average Hours per Average Hours per Global
Development Provider Global Employee Gender Employee (excluding
Allstate Canada)
getAbstract 0
Female 9.2
LinkedIn Learning 2.55
Male 8.6
Spark 0.06
Udemy 0.23
Average hours per employee of learning and
Total 2.84
development by management level
Management Average Hours per Global
Average hours per employee of learning and Level Employee"
2023-Allstate-Sustainability-Report-Final.txt,"velopment by gender
Learning & Average Hours per Average Hours per Global
Development Provider Global Employee Gender Employee (excluding
Allstate Canada)
getAbstract 0
Female 9.2
LinkedIn Learning 2.55
Male 8.6
Spark 0.06
Udemy 0.23
Average hours per employee of learning and
Total 2.84
development by management level
Management Average Hours per Global
Average hours per employee of learning and Level Employee
development by age group
Global Officer 1.4
Average Hours per Global
Global Manager 4
Generation Employee (excluding AIP,"
2023-Allstate-Sustainability-Report-Final.txt,"p
Global Officer 1.4
Average Hours per Global
Global Manager 4
Generation Employee (excluding AIP,
APP, ASPL) Global Individual
9.3
Contributor
Boomers (1946 - 1963) 5.1
Generation X (1964 - 1978) 5.9
Generation Y (1979 - 1994) 7.1
Generation Z (from 1995) 9
Total 6.7
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation66
Human Capital Return on Investment
We track the value that our talent strategy and talent management programs deliver to our business using a human
capital return on investment (ROI) metric. We calculate this by dividing total revenue, less non-employee-related"
2023-Allstate-Sustainability-Report-Final.txt,"al Individual
9.3
Contributor
Boomers (1946 - 1963) 5.1
Generation X (1964 - 1978) 5.9
Generation Y (1979 - 1994) 7.1
Generation Z (from 1995) 9
Total 6.7
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation66
Human Capital Return on Investment
We track the value that our talent strategy and talent management programs deliver to our business using a human
capital return on investment (ROI) metric. We calculate this by dividing total revenue, less non-employee-related
expenses, by employee-related expenses. It looks at profitability in relation to human capital costs. It also reflects"
2023-Allstate-Sustainability-Report-Final.txt,"eneration Z (from 1995) 9
Total 6.7
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation66
Human Capital Return on Investment
We track the value that our talent strategy and talent management programs deliver to our business using a human
capital return on investment (ROI) metric. We calculate this by dividing total revenue, less non-employee-related
expenses, by employee-related expenses. It looks at profitability in relation to human capital costs. It also reflects
the incremental revenue Allstate might get from investing an additional $1 per employee. The table below details"
2023-Allstate-Sustainability-Report-Final.txt,"$1 per employee. The table below details
our inputs and resulting human capital ROI over the past three years. Notably, the 2023 human capital ROI of 12+
is materially different than previous reporting for fiscal year 2021 and year 2022 of 9+. This is primarily driven by
premium growth with revenues up more than 10% combined with lower overall costs in 2023.
Human Capital ROI 2020 2021 2022 2023
Total Revenue ($B) $41.91 $50.60 $51.41 $57.09
Total Operating Expenses ($B) $5.49 $7.26 $7.45 $7.14
Total Employee-Related Expenses ($B)* $4.01 $4.85 $5.00 $4.52"
2023-Allstate-Sustainability-Report-Final.txt,"ort | AllstateSustainability.com The Allstate Corporation3
Dear Stakeholders,
At Allstate, sustainability matters. It drives long-term value
creation and enables us to empower our customers with
affordable, simple, connected protection to help them
achieve their hopes and dreams. We are creating the future
of protection while also supporting a safer, more sustainable
world for future generations by focusing on People, Planet,
and Prosperity.
• People: Our inclusive culture and diverse, purpose-
driven workforce leverages differences to strengthen"
2023-Allstate-Sustainability-Report-Final.txt,"ow likely customers are to recommend Allstate, and 400 part-time employees, including about
was 51.2 at the end of 2023. We’re working to 27,700 full-time and 170 part-time Allstate
dramatically elevate our customer experience U.S. employees. In 2023, we cut our voluntary
relative to peers by meaningfully improving 20 turnover rate in half at Allstate U.S. year-over-year
million customer interactions annually to drive to 12%.
growth and retention.
• In 2023, Allstate conducted Allstate Asks, an
• In 2023, Allstate Identity Protection maintained employee survey for the global workforce. In"
2023-Allstate-Sustainability-Report-Final.txt,"matically elevate our customer experience U.S. employees. In 2023, we cut our voluntary
relative to peers by meaningfully improving 20 turnover rate in half at Allstate U.S. year-over-year
million customer interactions annually to drive to 12%.
growth and retention.
• In 2023, Allstate conducted Allstate Asks, an
• In 2023, Allstate Identity Protection maintained employee survey for the global workforce. In
a post-remediation satisfaction score of 98%. 2024, we aim to introduce four more global
In 2024, we have a goal to maintain or improve workforce pulse surveys on the employee"
2023-Allstate-Sustainability-Report-Final.txt,"olio) as
of Dec 31, 2022. We expect to increase the year-
end 2023 $7.7 billion allocation to responsible
investments over the next three years.
• In 2023, Allstate allocated $201 million to climate
investments in our investment portfolio across
climate mitigation and adaptation.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation11
We also track metrics related to material
issues for external stakeholders, including:
Decarbonization and Inclusive Diversity & Equity
Low Carbon Economy • In 2023, 55% of Allstate's U.S. workforce and 45%"
2023-Allstate-Sustainability-Report-Final.txt,"tion,
see the Privacy and Information Security section.
2023 Sustainability Report | AllstateSustainability.com TThhee AAllllssttaattee CCoorrppoorraattiioonn18
Organizational
Culture
Our Ambition Our Progress in 2023
At Allstate, employees can connect In 2023, we continued to invest in the core elements of
and belong, learn and grow, and Transformative Growth, enhancing the organizational culture
make an impact. We have an inclusive for approximately 53,000 full-time and 400 part-time Allstate
workplace, a diverse workforce employees. While full-time employees make up 99% of our workforce,"
2023-Allstate-Sustainability-Report-Final.txt,"iver a meaningful employee experience by
offering development opportunities, modernizing
our reward and talent structure and embracing
flexible work.
We want employees to feel connected and valued.
To achieve this, we focus on:
• Attracting and retaining high-quality talent.
• Developing and strengthening our leadership
team. Talent Management
• Building marketable skills and knowledge. Allstate is putting capabilities and skills at the center
of our talent practices. We’re nurturing continuous
• Creating a diverse and inclusive workforce."
2023-Allstate-Sustainability-Report-Final.txt,"ng, adapting to changing business demands
• Engaging and empowering employees to and aligning individual and team skills with the
perform at their best. organization's goals. We quickly identify skill strengths
and gaps and empower employees to gain new skills so
• Providing an exceptional employee experience.
they’re ready for the future.
As part of our commitment to advancing digital
In 2023, Allstate set the stage to unlock the full value
transformation at Allstate, we continued to invest in
of our global workforce. We created a consistent way"
2023-Allstate-Sustainability-Report-Final.txt,"eveloping the talent we have and recruiting
we have and need. Human Resources works with
more talent. In 2023, Allstate U.S. filled 28% of its
Enterprise Risk and Return Management to measure,
vacancies internally.
monitor and mitigate talent-related risks like skill gaps
and training needs. We evaluated skills for 3,600 jobs
Talent Recruitment to understand what we need and to identify emerging
In 2023, Allstate saw a 20% increase in job skills for future roles. We assessed 39,000 employees to
applications. Why? Because we have a flexible understand the skills of Allstate’s current workforce."
2023-Allstate-Sustainability-Report-Final.txt,"ning was and how it applies to
can stay with Allstate. their job.
It’s not just Allstaters who love our workplace. In 2023,
our CEO was honored in the Forbes Future of Work 50, we
won a VIBE Award as one of the best companies for work
flexibility, and we were recognized by Fortune magazine
for our flexible work policy.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation23
Talent Pipeline Programs
We streamlined initiatives to concentrate on four high-impact programs
for building an inclusive and diverse workforce and expanding the pool of"
2023-Allstate-Sustainability-Report-Final.txt,"en, get new laptops,
fund coffee habits and more. Allstate Asks survey
results show that receiving and giving Applause
enhances engagement.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation25
Inclusive Diversity & Equity
Our Ambition Our Progress in 2023
Inclusive Diversity & Equity (IDE) is a In 2023, we significantly advanced our IDE strategy to hire quality
core value at Allstate, and it's brought talent, enable and expand leadership strength, and build market-
to life by our purpose-driven employees. ready capabilities with an engaged and high-performing workforce."
2023-Allstate-Sustainability-Report-Final.txt,"ng Applause
enhances engagement.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation25
Inclusive Diversity & Equity
Our Ambition Our Progress in 2023
Inclusive Diversity & Equity (IDE) is a In 2023, we significantly advanced our IDE strategy to hire quality
core value at Allstate, and it's brought talent, enable and expand leadership strength, and build market-
to life by our purpose-driven employees. ready capabilities with an engaged and high-performing workforce.
So why do we call it Inclusive Diversity We made great strides to foster a resilient workforce while prioritizing"
2023-Allstate-Sustainability-Report-Final.txt,"purpose-driven employees. ready capabilities with an engaged and high-performing workforce.
So why do we call it Inclusive Diversity We made great strides to foster a resilient workforce while prioritizing
& Equity? Because being inclusive is talent development, retention and mobility practices that empower
essential to diversity and equity. If we’re every employee to reach their career aspirations.
not inclusive, then diversity and equity
Some highlights:
can be just stats, a company checking
a box. But by putting inclusion first, • Diverse workforce: In 2023, 55% of our U.S. workforce were women"
2023-Allstate-Sustainability-Report-Final.txt,"call it Inclusive Diversity We made great strides to foster a resilient workforce while prioritizing
& Equity? Because being inclusive is talent development, retention and mobility practices that empower
essential to diversity and equity. If we’re every employee to reach their career aspirations.
not inclusive, then diversity and equity
Some highlights:
can be just stats, a company checking
a box. But by putting inclusion first, • Diverse workforce: In 2023, 55% of our U.S. workforce were women
we’re fully embracing the breadth of our and 40% of our U.S. workforce were racially or ethnically diverse."
2023-Allstate-Sustainability-Report-Final.txt,"racing the breadth of our and 40% of our U.S. workforce were racially or ethnically diverse.
differences and the benefits of diversity.
• Recognition: In 2023, Allstate was recognized by several global
IDE guides who we are and how we
organizations for IDE progress, including Fair360 (formerly
conduct ourselves. We work to attract,
DiversityInc), Black Enterprise and Forbes. Allstate was again
nurture and retain a diverse and skilled
named to the Fair360 Top 50 Companies for Diversity. The list
workforce that reflects our customers and"
2023-Allstate-Sustainability-Report-Final.txt,"nt IDE Directors
SMART goals. At the end of 2023, business units had
accomplished over 75% of their goals. % of Board of Directors
25% 27% 33% 38%
who are female
To ensure an inclusive and globally aware leadership
team, we embedded tools like Aperian GlobeSmart
% of Board of Directors
into our business area strategies. We’re promoting
who are racially or 25% 27% 33% 31%
the development of skills and mindsets necessary to ethnically diverse
lead diverse teams effectively. We want our culture to
reflect and celebrate the richness of our workforce. Data includes Allstate’s chair, president and CEO. 2021-2023 data is"
2023-Allstate-Sustainability-Report-Final.txt,". We’re promoting
who are racially or 25% 27% 33% 31%
the development of skills and mindsets necessary to ethnically diverse
lead diverse teams effectively. We want our culture to
reflect and celebrate the richness of our workforce. Data includes Allstate’s chair, president and CEO. 2021-2023 data is
as of year-end. 2024 data is as of April 1, 2024. View Allstate’s current
Board Leadership at AllstateCorporation.com.
Our Inclusive Workplace
Allstate also seeks greater opportunities for women in
We offer all employees a robust learning and our workforce overall. Our recent stats:"
2023-Allstate-Sustainability-Report-Final.txt,"a is as of Feb. 1 in management positions
each year and is aligned with reporting on executive
officers in Allstate’s annual Form 10-K. % of women in senior
30% 30% 36%
management positions
2021 2022 2023 2024
% of women in management
Number of executive positions in revenue-generating 33% 46% 56%
13 11 11 11
officers functions
Number of female % of women in STEM-related
4 2 2 2 40% 40% 42%
executive officers positions
% of executive officers % of women in Allstate’s
31% 18% 18% 18% 57% 58% 55%
who are female workforce"
2023-Allstate-Sustainability-Report-Final.txt,"omen in management
Number of executive positions in revenue-generating 33% 46% 56%
13 11 11 11
officers functions
Number of female % of women in STEM-related
4 2 2 2 40% 40% 42%
executive officers positions
% of executive officers % of women in Allstate’s
31% 18% 18% 18% 57% 58% 55%
who are female workforce
Data includes Allstate U.S. employees.
2023 Sustainability Report | AllstateSustainability.com The Allstate Corporation27
Our hiring strategy is straightforward: We select the best candidate
for each role. In 2023, 40% of our workforce and 28% of our"
2023-Allstate-Sustainability-Report-Final.txt,"en communities through
Pride parades and festivals
connection, inclusive support and career development. EIGs
celebrating LGBTQ+
increase employee engagement and retention, expand networking
acceptance and achievements
and collaboration across divisions and help communities. Analysis
in three U.S. cities and two
from 2023 shows that EIG members at Allstate have a 25% higher
countries. Over 150 Allstaters
promotion rate and 37% lower turnover than non-members. In 2023,
took more than one million
28% of our Allstate U.S. workforce participated in at least one EIG."
2023-Allstate-Sustainability-Report-Final.txt,"tate Canada’s business diversity focus, Allstate was invited to serve on the board
of the Canadian Aboriginal Minority Supplier Council (CAMSC), helping us to identify diverse suppliers
for inclusion in local sourcing opportunities. We also collaborated with Indspire (a national charity that
invests in the education of First Nations, Inuit and Métis people) on the Building Brighter Futures Bursary
program. It supports our commitment to the Truth and Reconciliation Commission of Canada's Call to
Action #92 by sponsoring the education of Indigenous youth to bolster the Indigenous workforce and"
2023-Allstate-Sustainability-Report-Final.txt,"ganizations. This took place during the first-ever convening of all federally
recognized domestic violence cultural resource centers, including with
Foundation partners: Esperanza United, National Center on Violence Against
Women in the Black Community and Asian Pacific Institute on Gender-Based
Violence and Trafficking.
Advancing Racial Equity
The Foundation is working to close the racial opportunity gap. By investing in
nonprofits that help people overcome barriers to thriving-wage employment
and entrepreneurs advancing equity through innovative workforce"
2023-Allstate-Sustainability-Report-Final.txt,"all federally
recognized domestic violence cultural resource centers, including with
Foundation partners: Esperanza United, National Center on Violence Against
Women in the Black Community and Asian Pacific Institute on Gender-Based
Violence and Trafficking.
Advancing Racial Equity
The Foundation is working to close the racial opportunity gap. By investing in
nonprofits that help people overcome barriers to thriving-wage employment
and entrepreneurs advancing equity through innovative workforce
development strategies. In 2023, we increased access to workforce training"
2023-Allstate-Sustainability-Report-Final.txt,"ty. In 2023, we
In 2023, the Administration and Real Estate (ARE)
developed a strategy to reduce emissions in our supply
and Sourcing & Procurement Solutions (SPS) teams
chain. That strategy will primarily target Scope 3
implemented greenhouse gas (GHG) emissions
Category 1 (purchased goods and services) emissions,
reduction efforts.
which represents about 80% of Allstate’s total reported
2022 Scope 3 emissions.
Real Estate Emissions Reductions
The strategy includes developing capacity-building
Through leveraging a remote workforce, real estate"
2023-cf-industries-esg-report.txt,"r shareholders is critical
Gender1 Male Female Male Female Male Female Male Female *Each site provided the number of contractors whose work is controlled by a CF manager/supervisor. 27; “Corporate Governance – Leadership of the Board,” page 27-28; “Corporate to CF Industries’ success. We value the views of, and regularly communicate
Governance – Committees of the Board,” pages 28-30. with, our shareholders on a variety of topics, such as our financial performance,
U.S. 1709 306 0 3 — — 1709 309
i. Most common non-employee worker are contractors who have contracted environmental, social, and governance initiatives, executive compensation,"
2023-cf-industries-esg-report.txt,"past, current, and future/
reinforced. All locations developed content and conducted daily discussions to ensure and discussion about safe and at-risk behaviors, perceptions, barriers, and
planned activities. All EHS hazards are assessed to determine risk potential and
mental and physical readiness, held ergonomic “find and fix” events to hone obstacles. HPR involves observations and interactions between two or more
priority, based on the likelihood of occurrence and the potential impact of the
our employee’s ability to see ergonomic risks and continuously improve our worker(s) while a task is being performed and focuses on behaviors. Coaching"
2023-cf-industries-esg-report.txt,"formed and focuses on behaviors. Coaching
consequences.
approach, and reviewed existing physical demands requirements for essential or feedback conversations must occur immediately following the observation
job functions to ensure accuracy and understanding. with the intent of: reinforcing observed safe behaviors or developing a mutually
Risk management controls are then put in place to minimize risk to as low as
403-3
agreeable action plan to correct any observed behaviors that placed or could
reasonably practicable. These controls are regularly monitored for effectiveness OCCUPATIONAL HEALTH SERVICES Some additional Location-Specific 2023 Start Right highlights included: have placed the worker or others at risk. This process helps to ensure the"
2023-cf-industries-esg-report.txt,"igation, and prompt incident response, demonstrates
to location management or their designated representative. All incidents/
or exceeds regulatory requirements and utilizes the services of a licensed
safety excellence in actions and words, provides clear direction, positive
near misses/hazards are investigated and appropriate corrective actions healthcare professional in the development and on-going execution of this 403-4 recognition, and feedback on safe performance of tasks holding the team
implemented. Location management works with the investigation team to program. Each location has established an Occupational Exposure Assessment WORKER PARTICIPATION, CONSULTATION AND COMMUNICATION ON accountable for safety. We set SLA goals annually to ensure that we have regular"
2023-cf-industries-esg-report.txt,"mwork among employees while The Wilson Award for Safety Excellence was established in 2015 and is an
CF Industries has partnered with a third party provider to conduct contractor pursuing safety excellence. annual recognition of safety excellence. Each year, employees across CF
pre-qualification and on-going monitoring as a component of our risk Industries implement impactful safety innovations and improvements. These
Where there is a potential for exposure to chemical or physical (e.g., noise)
assessment efforts. CF proactively uses these services to reduce risk, agents covered by specific governmental regulations, the location maintains The joint health and safety committees consist of worker and management invaluable contributions to our organization not only improve our ways of"
2023-cf-industries-esg-report.txt,"Expo, and Safety & Wellness Activities across all locations. All activities
incidents.
fit-testing, etc.)
CF INDUSTRIES • ESG REPORT 2023 92FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
The 2023 Wilson Award Winner: Courtright Complex: Keep Plugging Away 403-6 403-8 403-10
– Drain Clearing Done Right. Maintaining process piping requires carefully PROMOTION OF WORKER HEALTH WORKERS COVERED BY AN OCCUPATIONAL HEALTH AND SAFETY WORK-RELATED ILL HEALTH"
2023-cf-industries-esg-report.txt,"ach
location and the specific risk being assessed. This information is used to develop
CF Industries has partnered with Health & Wellness providers to establish an an annual internal audit schedule.
employer-sponsored Health Center at each of our manufacturing locations
and off-site services for each of our distribution locations. This provides CF
403-5 Our Health & Safety Management Systems are aligned with the ISO45001
employees access to total well- being solutions, including weight loss and
WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY standard and have received OSHA Voluntary Protection Programs (VPP)"
2023-cf-industries-esg-report.txt,"-driven and others to promote a safe
▷ Significant margin advantage compared to local minimum
industry averages North America located in emission reduction goals, with environment for our employees
through low-cost North wage (U.S.)
demand centers a net-zero by 2050 target and the broader communities
American natural gas ▷ Continual investment in our
▷ 30.54 average training hours
nine manufacturing facilities ▷ 3 million tons of storage ▷ First commercial-scale ▷ In 2023, our locations donated
▷ Disciplined capital per North American employee"
2023-cf-industries-esg-report.txt,"ta eeg ie ano n ou drs dcly eo roa tpn oed dr a aec tleit vi v wee ri l tty hh s eae lble sek ts d atk i sv eoe hlr uos te ldi op ene r.srs . pectives,
WVIEE WDO ▷ O exu pr eo rp iee nra ct eio s,n as
n
a dr e
id
p er ao sd .uctive and efficient.
$2.76B $3.86B $2.87B
Operating Activities IT WELL ▷▷ OWuer fgoocauls is o onu etxsetacnudtiionng afinnda nrecsiaull tpse.rformance.
▷ We are flexible in order to deliver the best solution.
▷ Our decisions are made on the basis of the data and analysis.
▷ We are committed to employee development, building a diverse"
2023-cf-industries-esg-report.txt,"erations are productive and efficient.
▷ We collaborate and cooperate with all stakeholders.
For more information on the Company’s financial performance, please review CF Industries’ WE ITV T IWEAWK EE LL A ▷ ▷ W We e a ar re e a fln e h xio bn lee s int a on rdd e re r l ti oab dle e lp iva er rt n te hr e. best solution.
LONG-TERM ▷ Our goal is outstanding financial performance.
2023 Annual Report. ▷ We collaborate and cooperate with all stakeholders.
VIEW ▷ We focus on execution and results.
▷ We are committed to employee development, building a diverse"
2023-cf-industries-esg-report.txt,"lease review CF Industries’ WE ITV T IWEAWK EE LL A ▷ ▷ W We e a ar re e a fln e h xio bn lee s int a on rdd e re r l ti oab dle e lp iva er rt n te hr e. best solution.
LONG-TERM ▷ Our goal is outstanding financial performance.
2023 Annual Report. ▷ We collaborate and cooperate with all stakeholders.
VIEW ▷ We focus on execution and results.
▷ We are committed to employee development, building a diverse
▷ Our goal is outstanding financial performance.
and inclusive organization for the future.
▷ We are committed to employee development, building a diverse"
2023-cf-industries-esg-report.txt,"-
LONG-TERM
CF INDUSTRIES • ESG REPORT 2023 tion of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures. ▷ We collaborate and cooperate with all stakeholders. 11
VIEW
4 Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See “Reporting and Data” in this Report for a reconciliation of free cash flow to the most directly comparable GAAP measure.
▷ Our goal is outstanding financial performance.
▷ We are committed to employee development, building a diverse"
2023-cf-industries-esg-report.txt,"NANCE & POLICY ENGAGEMENT & DATA
Management of ESG issues at
At CF Industries, our ESG
CF Industries
priorities are fundamental to the
MANAGEMENT AND OVERSIGHT OF ESG AT CF INDUSTRIES
sustainability of our operations
Our approach to ESG is embedded across our
and business and support our business operations, and we believe every CF Industries Board of Directors
individual — from those serving on our Board of Review, advise, and approve ESG goals and progress
corporate strategy of leveraging our
Directors Board to each employee — plays a role"
2023-cf-industries-esg-report.txt,"▷ Investor calls/conferences ▷ Biannual outreach campaigns ▷ Regular meetings and events ▷ Open dialogue with community leaders
▷ Proxy/ESG meetings with investors ▷ Annual Shareholder Meeting ▷ Company accounts ▷ Community engagement efforts, such as
volunteering and information-sharing with
▷ Earnings calls ▷ Relationship-owner ongoing communications
▷ Annual Report local first responders
Industry Associations Civil Society and
Employees Government Officials
and Coalitions Environmental NGOs
▷ Quarterly all-employee town hall meetings ▷ Partnerships and active engagement ▷ Partnerships on key issues ▷ Regular and direct communication on"
2023-cf-industries-esg-report.txt,"ITY GOVERNANCE & POLICY ENGAGEMENT & DATA
ESG Goals
OUR WORKPLACE AND COMMUNITIES
With an ESG strategy that is firmly rooted in our Core Values while also being aligned with and embedded
in our corporate strategy, we have established goals with achievable, yet challenging, milestones to guide Goal Goal Status
our Company towards a sustainable, ethical, and net-zero future. We have mapped our ESG goals to our
materiality assessment.
Create additional pathways to long-term professional growth for
traditionally underrepresented employee groups by the end of 2021 with the"
2023-cf-industries-esg-report.txt,"he ESG Steering Committee and Senior Leadership Team (SLT) met to review our ESG goals. As a
In Progress
result of the discussion, the Company decided to retire goals that had been achieved, refresh and update goal ultimate goal of increasing the hiring and promotion of underrepresented
language where necessary, and add new goals where appropriate. Our goals are presented below. groups.
Our ESG goals hold us accountable for the issues deemed critical to our business. Each year, the ESG Steering
Achieve 25% employee participation in Volunteer Time Off (VTO) program by"
2023-cf-industries-esg-report.txt,"EPPOORRTT 22002233 3333FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Goal Goal Status
Our people and the communities in Beyond safety, we promote
Create additional pathways to long-term professional growth for
which we operate are at the heart of employees’ well-being with
traditionally underrepresented employee groups by the end of 2021 with the"
2023-cf-industries-esg-report.txt,"g-term professional growth for
which we operate are at the heart of employees’ well-being with
traditionally underrepresented employee groups by the end of 2021 with the
our Do It Right culture. competitive salaries, comprehensive In Progress
ultimate goal of increasing the hiring and promotion of underrepresented
benefits, career growth, development
groups.
The foundation of our culture is an
opportunities, and by upholding a
unwavering focus on occupational
culture of inclusion and belonging.
Achieve 25% employee participation in Volunteer Time Off (VTO) program by"
2023-cf-industries-esg-report.txt,"round experiences,
insights, and feedback to inform the majority of our policies. This
Our commitment to safety excellence is documented in our
approach cultivates a workplace that prioritizes the safety and health
Environmental, Health Safety, and Security (EHS) Policy, internal EHS
of our employees, contractors, customers, partners, and neighboring
Management Manual, and Code of Corporate Conduct. Our EHS
communities.
PRACTICES
program utilizes a comprehensive and data-driven approach to risk
assessment, staff training and engagement, continuous improvement, At the end of 2023, our employee recordable incident rate (RIR) per Ability to"
2023-cf-industries-esg-report.txt,"ntial
address specific and emergency
safety risk and took action to develop a flange management system that issues and services strategies and
challenges best practices
resulted in zero flange releases in 2023. This system was adopted at other
sites, and we have seen a notable decrease in flange leaks across our
operations as a result. Examples of other systems we have implemented
to improve process safety include an alarm rationalization program and
Do It Right
enhanced leak detection methods.
Employee Culture"
2023-cf-industries-esg-report.txt,"E FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Safety Training
To fully embody our Do It Right culture, employees and contractors
must know what ‘Right’ is. We ensure this by clearly and regularly
communicating our safety expectations and by providing a variety of
training programs. Employees are required to participate in regular
EHS training, including hazard recognition and response, emergency
response procedures, occupational employee health training, workplace"
2023-cf-industries-esg-report.txt,"ent from our previous mentorship Veteran’s Day Celebration.
our team members but helps ensure we are
so that site-specific data can eventually be rolled programs, this nine-month program
better equipped to achieve our mission to feed
▶ Launched a new social
up for aggregate quarterly leadership reviews. focuses on personal development and
and fuel the world sustainably by attracting
media campaign to increase
its relation to professional development.
and retaining top talent, improving business
▶ Partnered with diversity-focused recruiting employee engagement,"
2023-cf-industries-esg-report.txt,"ecruiting employee engagement,
All mentors have some knowledge of
efficiency, bolstering the overall resilience of
platforms to expand our job listing reach: including a spotlight on
or experience in the ID&E field and
our workforce, and driving greater collaboration
employees across different
mentees are sent monthly articles,
and innovation. ▷ Data People: A software that supports our
sites. As a result, we have
resources, and videos on topics such
efforts to improve job descriptions with the
seen an increase in employee"
2023-cf-industries-esg-report.txt,"EWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
GLOBAL GENDER US RACE AND ETHNICITY14
Our management of ID&E is both data-driven and based on industry best practices. Our ID&E management
team engages with trade associations to capture and implement industry best practices. We also implement
Female Male Person of Color Non-Person of Color
employee surveys and utilize dashboards for data collection to assess our program’s successes and identify"
2023-cf-industries-esg-report.txt,"E AND ETHNICITY14
Our management of ID&E is both data-driven and based on industry best practices. Our ID&E management
team engages with trade associations to capture and implement industry best practices. We also implement
Female Male Person of Color Non-Person of Color
employee surveys and utilize dashboards for data collection to assess our program’s successes and identify
opportunities.
In 2023, to better understand employees’ sense of inclusion at CF Industries, we implemented a program of
employee lifecycle surveys aimed at our new hires, distributing surveys on the 7th, 30th, 45th, and 90th day"
2023-cf-industries-esg-report.txt,"anagement
team engages with trade associations to capture and implement industry best practices. We also implement
Female Male Person of Color Non-Person of Color
employee surveys and utilize dashboards for data collection to assess our program’s successes and identify
opportunities.
In 2023, to better understand employees’ sense of inclusion at CF Industries, we implemented a program of
employee lifecycle surveys aimed at our new hires, distributing surveys on the 7th, 30th, 45th, and 90th day
of work as well as upon an exit. Through employee life cycle surveys, we aim to understand how new hires"
2023-cf-industries-esg-report.txt,"a program of
employee lifecycle surveys aimed at our new hires, distributing surveys on the 7th, 30th, 45th, and 90th day
of work as well as upon an exit. Through employee life cycle surveys, we aim to understand how new hires
16% 84% 17% 83%
are feeling about their experience settling in and their sense of belonging at CF Industries. Similarly, through
exit surveys, we identify opportunities for improvement across the organization to help build a culture that is
representative and innovative.
Our IRG enhances our ID&E efforts as an active, employee-led forum that allows employees to construct"
2023-cf-industries-esg-report.txt,"es and persons of color held 37% of senior
leadership roles (director level and above) in the Company, ahead of
our goal to reach at least 30% by 2025.
CF INDUSTRIES • ESG REPORT 2023 14 2022 EEQ - 1 Report 41FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Engaging Employees
We understand regular employee engagement is crucial to building a culture that prioritizes retaining and"
2023-cf-industries-esg-report.txt,"GY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Engaging Employees
We understand regular employee engagement is crucial to building a culture that prioritizes retaining and
attracting top talent, driving effective and safe business operations, and reducing risk. Regular engagement
activities include:
▶ Quarterly all-employee town hall meetings with questions submitted by employees and answered by our"
2023-cf-industries-esg-report.txt,"to building a culture that prioritizes retaining and
attracting top talent, driving effective and safe business operations, and reducing risk. Regular engagement
activities include:
▶ Quarterly all-employee town hall meetings with questions submitted by employees and answered by our
Senior Leadership team
▶ Quarterly site visits and town hall meetings by Senior Leadership Team members
▶ Weekly newsletter distributed to all employees that business updates, safety items, and notable activities at
our sites, such as employee profiles, fundraising activities, and other milestones"
2023-cf-industries-esg-report.txt,"ning and
development opportunities
▶ Internal conferences, such as our annual Technical Conference that is a forum for employees to learn from
internal experts on areas of focus for the CF Industries manufacturing team
▶ “Bite-Sized Learning,” our monthly program for employees to learn more about different aspects of the
Company, including our clean energy initiatives, how we sell our products, and how different teams
contribute to CF Industries’ progress
▶ Digital signage, videos, and podcasts
We have established a cross-functional working group to develop and execute a 2024 employee Pulse survey to"
2023-cf-industries-esg-report.txt,"ompany, including our clean energy initiatives, how we sell our products, and how different teams
contribute to CF Industries’ progress
▶ Digital signage, videos, and podcasts
We have established a cross-functional working group to develop and execute a 2024 employee Pulse survey to
capture meaningful feedback from employees. Focus areas will include capturing employees’ opinions on CF
Industries as a place to work, CF Industries’ support of the communities in which we do business, if employees
feel that they have a sense of belonging at work, and if managers value different employee perspectives."
2023-cf-industries-esg-report.txt,"evelopment and career growth at CF industries. Our
The most popular skills studied
programming is designed to reach employees based on their interests, time, and career goals. These programs
shifted in 2023 from technical
complement direct career coaching and career mapping.
26,830 Videos viewed
skills to interpersonal and personal
LinkedIn Learning development skills.
22,018 Videos completed
An online platform where employees can select professional courses of interest (e.g., data analysis and
presentation skills). Employee use of this tool grew in 2023, reaching 51% utilization and exceeding our"
2023-cf-industries-esg-report.txt,"(e.g., data analysis and
presentation skills). Employee use of this tool grew in 2023, reaching 51% utilization and exceeding our
2022 benchmark. This success was driven in part by the 2023 LinkedIn Learning Challenge we hosted
wherein employees were incentivized to complete courses.
Mentoring@CF
In addition to learning opportunities, we offer several talent development programs, employ an annual review
CF has two mentorship programs: Career Development Mentorship and Inclusion Mentorship. The
process, track professional development, and use results from employee pulse surveys to regularly respond to"
2023-cf-industries-esg-report.txt,"rning Challenge we hosted
wherein employees were incentivized to complete courses.
Mentoring@CF
In addition to learning opportunities, we offer several talent development programs, employ an annual review
CF has two mentorship programs: Career Development Mentorship and Inclusion Mentorship. The
process, track professional development, and use results from employee pulse surveys to regularly respond to
programs include mentor-mentee matches who spend time coaching and learning from one another.
key indicators related to employee sentiment."
2023-cf-industries-esg-report.txt,"o
programs include mentor-mentee matches who spend time coaching and learning from one another.
key indicators related to employee sentiment.
The new Inclusion Mentorship program offers resources on important topics such as Psychological
Safety and Unconscious Bias.
Through our annual review process, we seek to provide visibility to employees regarding their potential based
on current performance, demonstrated leadership competencies, the potential for being successful in a role
Core Curriculum
that goes beyond their current responsibilities, as well as the employee’s career aspirations. Taking these factors"
2023-cf-industries-esg-report.txt,"r 1, 2023 • For suppliers that have multiple offices or non-local mailboxes (e.g., Siemens), we include the supplier
16 Geographic definition of “local”: office; serving the CF Industries site if it is located within the 50-mile / 81-kilometer radius is included
CF INDUSTRIES • ESG REPORT 2023 • Spend is made with suppliers within a 50-mile / 81-kilometer radius from the site based on postal code; • Service providers with the majority of employees residing within 50-mile / 81-kilometer; and, 45
• Utilities serving the facility are within the 50-mile / 81-kilometer radius; • Employee reimbursements are not included. Does not include natural gasFOOD SECURITY,"
2023-cf-industries-esg-report.txt,"of
Improving access to nutritious, affordable food that members of all communities canned goods through a Chili Cookoff competition at our Yazoo City, Mississippi, facility and partner with
— including low-income communities and communities of color — need to grow Meals on Wheels to package and deliver food to community members across several of our sites.
and thrive.
Local Community Advancement This year, our philanthropic engagements were primarily focused on supporting local communities. We
Making a difference in local communities where CF Industries employees live and have seen a notable increase in employee community engagement, as our IRG participation has grown"
2023-cf-industries-esg-report.txt,"kes an annual review and revision process for CF Industries governance policies trainings are available and tracked through our Learning Management System (LMS) and require a 100%
to ensure they are current and reflect best practices. All policies are made available to our employees, and most participation rate. These mandatory trainings ensure our employees are aware, educated, and in agreement
are externally available on the Company’s website. with stated policies. Required trainings include:
▶ Employee Code of Corporate Conduct ▶ Human Rights Policy ▶ Employee Code of Corporate Conduct ▶ Inclusion, Diversity & Equity"
2023-cf-industries-esg-report.txt,"th oversight of strategy
to receive a majority vote to remain on the Board.
and progress toward net-zero carbon emissions, sustainability activities and reporting, and the Company’s
The Chairman of the Board and Chair of the Governance Committee lead an active process to regularly assess active involvement in the communities in which it operates. This committee meets five times per year.
board composition and attributes as well as succession planning. When identifying nominees for Directors, we
▶ Our Compensation and Management Development Committee oversees our ID&E and employee"
2023-cf-industries-esg-report.txt,"ENGAGEMENT & DATA
Management Oversight of ESG Goals and Progress
Our shareholders elect our Directors to oversee management and ensure proper governance across all
business functions. Our leadership team is responsible for delivering on our strategy, creating our culture,
establishing accountability, and managing risk across the entire business and at every level within the
organization.
CF Industries incorporates the management of ESG issues across the entire business and at every level within
the organization. We want every employee to play a role in meeting our ESG goals, as they are central to our"
2023-cf-industries-esg-report.txt,"TIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Key Historical Metrics ESG Goal Metrics
Key EHS Metrics Unit 2023 2022 2021 2020 2019 2018 2017 ESG Goal 2023 2022 2021
Greenhouse Gas Emissions Our Workplaces & Communities
Increase representation of females and persons of color in senior leadership roles
Scope 1 Emissions tonnes CO 2e 17,800,000 17,700,000 17,200,000 18,800,000 19,400,000 17,600,000 18,600,000 (director level and above) to at least 30% by end of 2025 37% 38% 38%
Scope 2 Emissions tonnes CO 2e 707,000 711,000 694,000 828,000 922,000 919,000 897,000 Achieve 25% employee participation in VTO program by the end of 2025 (%) 22% 9% #N/A"
2023-cf-industries-esg-report.txt,"ation of females and persons of color in senior leadership roles
Scope 1 Emissions tonnes CO 2e 17,800,000 17,700,000 17,200,000 18,800,000 19,400,000 17,600,000 18,600,000 (director level and above) to at least 30% by end of 2025 37% 38% 38%
Scope 2 Emissions tonnes CO 2e 707,000 711,000 694,000 828,000 922,000 919,000 897,000 Achieve 25% employee participation in VTO program by the end of 2025 (%) 22% 9% #N/A
Scope 3 Emissions tonnes COe 45,680,000 46,670,000 49,480,000 51,940,000 --* --* --*
2 Achieve 25% employee participation in VTO program by the end of 2025 (hrs) 4,267 3,300 #N/A"
2023-cf-industries-esg-report.txt,"oach for further discussion.
GRI 202: Market Presence, Management
Approach GRI 413: Community, 413- 2:
Discussion of engagement processes to manage risks and Discussion and
Community Relations n/a RT-CH-210a.1 Operations with significant actual and
opportunities associated with community interests Analysis
potential negative impacts on local
communities
(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) GRI 403: Occupational Health and Safety,
Quantitative Rate RT-CH-320a.1
direct employees and (b) contract employee 403-9: Work- related injuries"
2023-cf-industries-esg-report.txt,"r shareholders is critical
Gender1 Male Female Male Female Male Female Male Female *Each site provided the number of contractors whose work is controlled by a CF manager/supervisor. 27; “Corporate Governance – Leadership of the Board,” page 27-28; “Corporate to CF Industries’ success. We value the views of, and regularly communicate
Governance – Committees of the Board,” pages 28-30. with, our shareholders on a variety of topics, such as our financial performance,
U.S. 1709 306 0 3 — — 1709 309
i. Most common non-employee worker are contractors who have contracted environmental, social, and governance initiatives, executive compensation,"
2023-cf-industries-esg-report.txt,"chairman, our committee chairs, and
in maintenance, operations, administration and specific project work. 2-10
other members of the Board may also be available to participate in meetings
Total 2249 398 1 6 2 1 2252 405 NOMINATION AND SELECTION OF THE HIGHEST GOVERNANCE BODY with shareholders as appropriate. Requests for such a meeting are considered
B. Data represents headcount as of 12/31/2023.
Previously GRI 102-24. on a case-by-case basis. Our engagement activities have resulted in valuable
Data includes regular and temporary employee types. C. CF Industries has significant swings in the number of contractors across feedback that has contributed to our decision-making with respect to these"
2023-cf-industries-esg-report.txt,"nduct shareholder outreach campaigns in the spring and in the fall.
avoid double counting. Non-guaranteed hours employees are not applicable to CF.
– Criteria for Board Membership,” pages 17-18 Our engagements in the spring are primarily focused on ballot items up
for a shareholder vote at our annual meeting. Our engagements in the fall
All data in this section is as of December 31 of the reporting year and reported by
generally focus on voting outcomes from our prior annual meeting — including
headcount. The total UK employee population saw a reduction in force in 2023"
2023-cf-industries-esg-report.txt,"ering, reviewing and monitoring the Previously GRI 102-27.
• Partnerships with NGOs company’s general strategy and objectives relating to ESC Committee Matters;
• Engagement with government officials assessing the effectiveness of and advising the Board on the company’s See 2024 Proxy Statement, “Proposal 1: Election of Directors – Criteria for Board
programs and initiatives related to ESC Committee Matters; reviewing and Membership,” pages 17-18, “Proposal 1: Election of Directors – Summary of
• Employee surveys and town hall meetings 2-14"
2023-cf-industries-esg-report.txt,"“ESG at CF Industries”, pages 17-21 and “Ethics and including the ESG report and the sustainability report. The committee met five
Governance”, pages 63-64. times in 2023. See 2024 Proxy Statement, “Corporate Governance – Leadership of the Board
2-15
– Annual Board and Committee Self-Evaluations and Director Peer Evaluations,”
CONFLICTS OF INTEREST
Reviewing the Effectiveness of Organizational Processes to Identify and Manage The Board’s Compensation and Management Development Committee page 28
Economic, Environmental, and Social Impacts has oversight of ID&E and employee well-being initiatives. See also 2024 Previously GRI 102-25."
2023-cf-industries-esg-report.txt,"ernance – Leadership of the Board
2-15
– Annual Board and Committee Self-Evaluations and Director Peer Evaluations,”
CONFLICTS OF INTEREST
Reviewing the Effectiveness of Organizational Processes to Identify and Manage The Board’s Compensation and Management Development Committee page 28
Economic, Environmental, and Social Impacts has oversight of ID&E and employee well-being initiatives. See also 2024 Previously GRI 102-25.
Proxy Statement, “Corporate Governance -- Our Approach to Human Capital
See 2023 ESG Report, “Message from the CEO”, pages 2-5 and “Energy, Management,” pages 32-33. The Board has made an affirmative determination that all of our non-employee"
2023-cf-industries-esg-report.txt,"nomic, Environmental, and Social Impacts has oversight of ID&E and employee well-being initiatives. See also 2024 Previously GRI 102-25.
Proxy Statement, “Corporate Governance -- Our Approach to Human Capital
See 2023 ESG Report, “Message from the CEO”, pages 2-5 and “Energy, Management,” pages 32-33. The Board has made an affirmative determination that all of our non-employee
Emissions and Climate Change,” page 23. directors who served in 2022 or are currently serving as directors and all 2-19
See 2023 ESG Report, Management of ESG Issues at CF Industries, page of our non-employee director nominees have no material relationship with REMUNERATION POLICIES"
2023-cf-industries-esg-report.txt,"using a number of key metrics, including
reporting, and the Company’s active involvement in the communities in which injury rates, near miss and hazard identification reports, and safety leadership See 2024 Proxy Statement, “Corporate Governance – Director Independence,”
it operates. This committee meets five times per year. Our Compensation activities. Every two weeks, leaders of our locations meet specifically to discuss page 27 and “Policy Regarding Related Person Transactions,” pages 43-44
and Management Development Committee oversees our ID&E and employee EHS performance, challenges, and issues on a conference call. Local teams"
2023-cf-industries-esg-report.txt,"d Compliance,” pages 59-60. Conduct, page 3. Socioeconomic Compliance
the median annual total compensation for all countries is 92:1 with a ratio of
Socioeconomic compliance is governed by CF’s Code of Corporate Conduct,
percentage increase in annual total compensation of 2.8:1. Our Values
which acts as a guide to help all CF employees and affiliated parties make good
https://www.cfindustries.com/who-we-are/our-values
decisions, maintain the trust we have built with our stakeholders, and ensure
Employee annual total compensation, for purposes of this calculation, includes our business success. It also reaffirms the company’s long-standing practice"
2023-cf-industries-esg-report.txt,"the seven indirect jobs are created in the local community. When we undertake HR (USD) 7.25 - 17.00 $23.12 $20.20 $25.48 $28.85 $3.19 $2.79
major maintenance projects, such as turnarounds, or expand a nitrogen
potential impact on our reputation and broader goals. We will not undertake
See 2023 Form 10-K, page 1 complex, we create additional significant positive economic impacts. Canada
planning that is contrived or artificial.
Range/HR 14.00 - 16.55 $34.75 $25.80 $38.73 $28.85 $2.48 $1.84
(CAD)
Our in-kind and monetary donations and employee volunteerism help develop"
2023-cf-industries-esg-report.txt,"page 19
In 2024 we will be updating the procurement sustainability maturity review, • Service providers with the majority of employees residing within 50-mile /
In 2023, the CF Industries Foundation made a $50,000 grant to a local public which we will use to prioritize and set objectives for our teams to further 81-kilometer; and,
high school focused on agricultural sciences and announced a grant of $120,000 improve sustainable procurement in CF. See CF’s Code of Corporate Conduct, pages 22-23
• Employee reimbursements are not included. Does not include natural gas"
2023-cf-industries-esg-report.txt,"ry restrictions which vary by
packaging from spare parts and equipment. jurisdiction. CF does not use or own equipment to treat or transport any waste.
CF INDUSTRIES • ESG REPORT 2023 89FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
SOCIAL
401 EMPLOYMENT 401-1 401-2
Regular
NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BENEFITS PROVIDED TO FULL-TIME EMPLOYEES Type of Benefit (UK) Apprentices"
2023-cf-industries-esg-report.txt,"quarter. Leaders travel to CF Industries facilities U.S. 72 21 85 29 19 6 176 56 insurance and other costs associated with CF- sponsored health and welfare
or hold town hall meetings with employees to answer questions about company plans are borne by the company. Participation in the retirement plans is Long Term Incentive – Equity Program O X
performance and initiatives and gather feedback. Canada 3 4 19 5 3 0 25 9 automatic in all countries. Short Term Incentive – Variable Incentive Plan O X
UK 9 0 7 7 3 0 19 7 Employee Assistance Program X X"
2023-cf-industries-esg-report.txt,"w turnover rates, while continuing to attract talented people in search Paternity and Adoption
Health Care X X
of challenging careers with opportunities to develop and grow. Thanks to All data in this section is as of December 31 of the reporting year. Organizational Leave and Payment – Sickness,
the expansion of new roles across the organization, we now have multiple Data includes employees who were hired and terminated in the same year. Life Insurance X X Maternity, Paternity and Adoption O X
generations of employees working side-by-side. Data includes regular and temporary employee types."
2023-cf-industries-esg-report.txt,"and Payment – Sickness,
the expansion of new roles across the organization, we now have multiple Data includes employees who were hired and terminated in the same year. Life Insurance X X Maternity, Paternity and Adoption O X
generations of employees working side-by-side. Data includes regular and temporary employee types.
AD&D Insurance X X Statutory Parental Leave X X
We offer employees a safe, challenging and rewarding workplace environment, Disability Coverage X X Holiday Leave and Pay X X
attractive salaries, competitive health, retirement, and lifestyle benefits. Our EMPLOYEE TURNOVER BY AGE GROUP, GENDER AND REGION (ALL LOCATIONS"
2023-cf-industries-esg-report.txt,"nated in the same year. Life Insurance X X Maternity, Paternity and Adoption O X
generations of employees working side-by-side. Data includes regular and temporary employee types.
AD&D Insurance X X Statutory Parental Leave X X
We offer employees a safe, challenging and rewarding workplace environment, Disability Coverage X X Holiday Leave and Pay X X
attractive salaries, competitive health, retirement, and lifestyle benefits. Our EMPLOYEE TURNOVER BY AGE GROUP, GENDER AND REGION (ALL LOCATIONS
Employee Assistance Program X X Pension Scheme X X"
2023-cf-industries-esg-report.txt,"s Canada 1 1 14 3 13 4 28 8 Long Term Incentives X X individual performance. Benefits are not restricted to those who work full-time
incentives for completing health activities and challenges; access to chronic only; they are provided on an equal basis to those who work part-time too. In
condition management programs; annual health risk assessments; on-site clinic UK 8 — 33 3 25 4 66 7 Short Term Incentive – Variable X X addition, CF Fertilisers contributes toward pension schemes, which include
services at most manufacturing sites; and an employee assistance program. Total 30 7 119 20 84 22 233 49 Incentive Plan X X closed defined-benefit pension plans and open defined-contribution plans."
2023-cf-industries-esg-report.txt,"g sites; and an employee assistance program. Total 30 7 119 20 84 22 233 49 Incentive Plan X X closed defined-benefit pension plans and open defined-contribution plans.
The majority of administrative, insurance and other costs associated with CF-
Formal Wellness Plan X O sponsored health and welfare plans is borne by the company. Participation in the
All data in this section is as of December 31 of the reporting year.
pension scheme is subject to a minimum of auto- enrollment legislation in the
Data includes regular and temporary employee types. Maternity Leave X X"
2023-cf-industries-esg-report.txt,"ANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
401-3 402 LABOR/MANAGEMENT RELATIONS 403 OCCUPATIONAL HEALTH AND SAFETY 403-1
PARENTAL LEAVE OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
3-3 3-3
In the U.S., UK, and Canada, CF offers a Parental Leave program for all employees. MANAGEMENT APPROACH MANAGEMENT APPROACH CF Industries has established a robust Environmental, Health, Safety, and
Security (EHS) Management System that sets the framework for the Health &
We recognize and respect employee rights to join any lawful organization of CF Industries is advancing a culture of Environmental, Health, Safety, and Safety activities, establishes minimum company Health & Safety requirements,"
2023-cf-industries-esg-report.txt,"by:
reporting period after parental 82 10 3 3 15 0 Knowing What’s Right through robust systems that provide clear direction and
leave ended We provide a minimum number of weeks’ notice to employees prior to Some Location-Specific 2023 Safety Highlights included: performance standards; ensuring the Ability to Do It Right through efficient and
implementing significant operational changes that could substantially affect effective safety practices and tools that add value to the business; and Do It
Billingham had no employee recordable injuries in 2023."
2023-cf-industries-esg-report.txt,"ty Highlights included: performance standards; ensuring the Ability to Do It Right through efficient and
implementing significant operational changes that could substantially affect effective safety practices and tools that add value to the business; and Do It
Billingham had no employee recordable injuries in 2023.
Total number of employees them in accordance with local requirements in the different locations where we Right Every Time through a high-performing culture and engaged workforce that
who returned to work in the operate. Each of our locations also has regular meetings with all site employees Courtright had no employee or contractor recordable injuries in 2023. drives continuous improvement of our safety performance and culture. This"
2023-cf-industries-esg-report.txt,"d Do It
Billingham had no employee recordable injuries in 2023.
Total number of employees them in accordance with local requirements in the different locations where we Right Every Time through a high-performing culture and engaged workforce that
who returned to work in the operate. Each of our locations also has regular meetings with all site employees Courtright had no employee or contractor recordable injuries in 2023. drives continuous improvement of our safety performance and culture. This
reporting period after parental 79 10 3 3 14 0 to provide information on business changes. We also have quarterly all employee Port Neal had no contractor recordable injuries in 2023. system has been established through a number of documented statements"
2023-cf-industries-esg-report.txt,"urned to work in the operate. Each of our locations also has regular meetings with all site employees Courtright had no employee or contractor recordable injuries in 2023. drives continuous improvement of our safety performance and culture. This
reporting period after parental 79 10 3 3 14 0 to provide information on business changes. We also have quarterly all employee Port Neal had no contractor recordable injuries in 2023. system has been established through a number of documented statements
leave ended who were still “town hall” meetings via webcast led by our CEO and senior leadership team to Verdigris had no employee recordable injuries in 2023. and is applicable to all employees and contractors, activities and workplaces."
2023-cf-industries-esg-report.txt,"past, current, and future/
reinforced. All locations developed content and conducted daily discussions to ensure and discussion about safe and at-risk behaviors, perceptions, barriers, and
planned activities. All EHS hazards are assessed to determine risk potential and
mental and physical readiness, held ergonomic “find and fix” events to hone obstacles. HPR involves observations and interactions between two or more
priority, based on the likelihood of occurrence and the potential impact of the
our employee’s ability to see ergonomic risks and continuously improve our worker(s) while a task is being performed and focuses on behaviors. Coaching"
2023-cf-industries-esg-report.txt,"ow as
403-3
agreeable action plan to correct any observed behaviors that placed or could
reasonably practicable. These controls are regularly monitored for effectiveness OCCUPATIONAL HEALTH SERVICES Some additional Location-Specific 2023 Start Right highlights included: have placed the worker or others at risk. This process helps to ensure the
and updated to respond to changing conditions or activities. Process controls, successful planning and execution of the mental and physical activities to
mechanical integrity assurance processes, and sound maintenance and SASB Topic: Workforce Health & Safety, Code: RT-CH-320a.2 • Billingham distributed insulated water bottles to all employee to encourage consistently achieve the intended safe objectives. We set HPR goals annually to"
2023-cf-industries-esg-report.txt,"he worker or others at risk. This process helps to ensure the
and updated to respond to changing conditions or activities. Process controls, successful planning and execution of the mental and physical activities to
mechanical integrity assurance processes, and sound maintenance and SASB Topic: Workforce Health & Safety, Code: RT-CH-320a.2 • Billingham distributed insulated water bottles to all employee to encourage consistently achieve the intended safe objectives. We set HPR goals annually to
inspection procedures have been established by each location to allow staying hydrated. ensure that we have many regular employee-to-employee interactions, which"
2023-cf-industries-esg-report.txt,"isses/hazards are investigated and appropriate corrective actions healthcare professional in the development and on-going execution of this 403-4 recognition, and feedback on safe performance of tasks holding the team
implemented. Location management works with the investigation team to program. Each location has established an Occupational Exposure Assessment WORKER PARTICIPATION, CONSULTATION AND COMMUNICATION ON accountable for safety. We set SLA goals annually to ensure that we have regular
appropriately communicate lessons learned within the organization, including to Program to identify potential exposures of employees to chemical or physical OCCUPATIONAL HEALTH AND SAFETY leader-to-employee interactions to ensure our safety leaders are engaged. We"
2023-cf-industries-esg-report.txt,"y specific governmental regulations, the location maintains The joint health and safety committees consist of worker and management invaluable contributions to our organization not only improve our ways of
streamline the qualification process, promote transparency and our culture of monitoring programs that comply with requirements of governmental representatives who meet on a regular basis to deal with health and safety working but promote the safety of our friends and coworkers. We do not see
safety excellence. An online contractor management platform enables us to regulations. Monitoring programs for other substances or agents have been issues. These committees provide a forum for ensuring employee feedback, safety improvements as proprietary information. We reward safety innovation"
2023-cf-industries-esg-report.txt,"at each of our manufacturing locations Month to broaden our understanding of safety excellence and strengthen our finalists are chosen by a cross-functional selection committee. Then, our Senior
Management Information System (EMIS) to report hazards, near misses, or and off-site services for each of our distribution locations. This enables CF safety culture. Our Safety Month events focus on physical safety, organizational Leadership Team selects the winner based on impact on safety performance
incidents. In addition, regular employee meetings and toolbox talks provide employees to receive exceptional primary and occupational health care safety, and social safety and we recognize that anyone, no matter what role, and culture, transferability to other sites, ability to be sustained and improved"
2023-cf-industries-esg-report.txt,"ring Done Right. Maintaining process piping requires carefully PROMOTION OF WORKER HEALTH WORKERS COVERED BY AN OCCUPATIONAL HEALTH AND SAFETY WORK-RELATED ILL HEALTH
depressurizing and draining equipment. Bleed valves are used to release MANAGEMENT SYSTEM
remaining pressure and drain materials from piping. But occasionally clogs can We offer high-quality, affordable healthcare benefits, including medical, dental, For work-related hazards that pose a risk of ill health, see GRI Disclosure 403-3
prevent proper drainage. That is why CF Courtright identified a way to clear drain and vision coverage, to ensure you and your family have comprehensive See GRI Disclosure 403-7 — Prevention and mitigation of occupational health – Occupational health services. This year continues our record of no employee"
2023-cf-industries-esg-report.txt,"force Health & Safety, Code: RT-CH-320a.1
In addition to onboarding and appropriate task training, all employees receive We also offer paid time off programs to help you relax and recharge, including
training on safety systems and safe operational & maintenance procedures that vacation, sick time, scheduled and floating holidays, and time off to volunteer.
“Health, Safety and Security Management Unit 1 2023 2022 2021
are specific to their role. For additional information go to CF Total Rewards.
Employee"
2023-cf-industries-esg-report.txt,"the risks involved and can properly utilize within a single firm. Because a common base and a specific period of time are involved these rates
appropriate risk control measures. Competency testing is conducted to ensure can help determine both problem areas and progress in preventing work-related injuries and illnesses.
that all trainees understand the proper procedures associated with those critical An incidence rate of injuries and illnesses may be computed from the following formula: (Number
of injuries and illnesses X 200,000)/ Employee hours worked = Incidence rate. The 200,000 figure in"
2023-cf-industries-esg-report.txt,"2022) recordable injury rate for the
fertilizer industry is 1.3 injuries per 200,000 hours.
CF INDUSTRIES • ESG REPORT 2023 93FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
404 TRAINING AND EDUCATION 404-1 We also provide support and training for employees whose employment
AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE is terminated due to a reduction in force or job elimination. We offer"
2023-cf-industries-esg-report.txt,"career coaching and recruiter outreach.
Region Units 2023 2022 2021 In the U.S. and Canada, CF Industries provides retiring employees access to
Building and strengthening the skill and capabilities of our employees is as
financial calculators, planning tools and articles via our third-party vendors. This
important as making capital improvements to our plants. That is why we avg hours/
North America 30.54 37.53 42.71 includes optional services providing advice on fund values, state offerings and
invest extensively in recruitment, training, and professional development for employee"
2023-cf-industries-esg-report.txt,"al calculators, planning tools and articles via our third-party vendors. This
important as making capital improvements to our plants. That is why we avg hours/
North America 30.54 37.53 42.71 includes optional services providing advice on fund values, state offerings and
invest extensively in recruitment, training, and professional development for employee
analysis based on the timelines involved for retirement.
our employees. All new CF Industries employees begin their experience by
avg hours/
participating in a 90-day New Employee Integration Program (NEI). At the heart United Kingdom employee 13.64 81.80 41.60"
2023-cf-industries-esg-report.txt,"yees with our business, values, Data is effective 12/31/2023 employability and the management of career endings resulting from retirement
or termination of employment. Prior to employees retiring, employees have
culture, and people processes. The Core Curriculum aligns with our CF Industries
access to financial advice via external pension providers.
Leadership Competency Model leader levels and provides new and current
employees with a consistent understanding of who we are, what we do, and how
we do it. In addition, each new employee is assigned a peer coach to help them 404-2"
2023-cf-industries-esg-report.txt,"nagement of career endings resulting from retirement
or termination of employment. Prior to employees retiring, employees have
culture, and people processes. The Core Curriculum aligns with our CF Industries
access to financial advice via external pension providers.
Leadership Competency Model leader levels and provides new and current
employees with a consistent understanding of who we are, what we do, and how
we do it. In addition, each new employee is assigned a peer coach to help them 404-2
learn about their role, meet key work partners, learn the CF Industries culture, PROGRAMS FOR UPGRADING EMPLOYEE SKILLS AND TRANSITION"
2023-cf-industries-esg-report.txt,"unity to apply employees, always prioritizing health and safety. Internal manufacturing learning AND CAREER DEVELOPMENT REVIEWS
what they are learning in the classroom on the job at sites across CF Industries. and development is focused on acquiring and developing skills required to
In Canada and the UK, we offer apprenticeship programs that combine formal successfully perform in specific roles. Structured programs use a blended Our performance management process applies to 100% of employees at
learning with paid, on-the-job training. At the end of the program, graduates may learning approach comprised of online learning, instructor led training, and on CF. It includes annual goal setting aligned to business goals, an employee-"
2023-cf-industries-esg-report.txt,"s or role
change. Depending upon the circumstances, we offer outplacement support via
a third-party organization to employees whose employment is terminated to
support their job search efforts.
CF INDUSTRIES • ESG REPORT 2023 94FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
405 DIVERSITY AND EQUAL OPPORTUNITY Anti-Discrimination Policy: We work together to make sure our workplace is a Employee Diversity 406 NON-DISCRIMINATION"
2023-cf-industries-esg-report.txt,"but also because a tolerant, collaborative company is more competitive in the each situation and the incidents are no longer subject to review.
CF Industries’ ID&E strategy provides direction to our ongoing efforts to marketplace. We strive to create an environment where everyone can live up to
strengthen our culture of inclusive leadership. Our strategy focuses on three key his or her potential. Accordingly, we do not tolerate any form of harassment. Total EE % Male % Female %< 30 %30-50 %> 50
areas: employee education and skill development, representation, and belonging."
2023-cf-industries-esg-report.txt,"we do not tolerate any form of harassment. Total EE % Male % Female %< 30 %30-50 %> 50
areas: employee education and skill development, representation, and belonging.
CF Industries has a dedicated team to help guide our ID&E initiatives. We have 2,684 84% 16% 14% 59% 27%
Harassment may be any verbal or physical conduct by any individual that
established our Inclusion Council to champion the company’s ID&E strategy,
disrupts, offends or interferes with another’s work performance, or that creates
the Inclusion Resource Group to drive ID&E programming that fosters a diverse, Data includes regular and temporary employee types. Co-ops, interns, and contingent workers are"
2023-cf-industries-esg-report.txt,"nt,
leads the development and implementation of our strategy and coordinates
up to and including termination of employment. We also take appropriate action
ID&E efforts across the organization.
against anyone not employed or engaged by the company who violates this
policy.
405-2
More specifically, these initiatives include annual ID&E training for all employees
RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN
and leaders, talent acquisition strategies aligned to increase representation of
underrepresented groups, an employee listening strategy that includes regular CF strives to use salary ranges that are competitive with market pay ranges for"
2023-cf-industries-esg-report.txt,"&E efforts across the organization.
against anyone not employed or engaged by the company who violates this
policy.
405-2
More specifically, these initiatives include annual ID&E training for all employees
RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN
and leaders, talent acquisition strategies aligned to increase representation of
underrepresented groups, an employee listening strategy that includes regular CF strives to use salary ranges that are competitive with market pay ranges for
feedback loops throughout an employee’s lifecycle, and frequent programming positions of comparable responsibility, functional knowledge, impact and other"
2023-cf-industries-esg-report.txt,"port and publicly reported our most recently
Count % Count % Count %
filed U.S. Federal Employer Information Report EEO-1 on our website. We are
on a journey to build a culture of belonging where it is safe to be yourself – a
30-50 — —% — —% — —%
workplace where everyone feels welcomed, valued, empowered, and inspired
to do their best work. We believe we have made significant progress in these
efforts while also recognizing that there is much work to do to create new Over 50 9 69% 4 31% 13 100%
opportunities and growth for traditionally underrepresented employee groups."
2023-cf-industries-esg-report.txt,"MPULSORY LABOR 410 SECURITY PRACTICES
BARGAINING
3-3 3-3 3-3
MANAGEMENT APPROACH MANAGEMENT APPROACH MANAGEMENT APPROACH
3-3
MANAGEMENT APPROACH CF is committed to the protection and advancement of human rights in See GRI Disclosure 408 – Child Labor – Management Approach Our approach to security starts with detailed risk assessments of our operations
its global operations. Our views are informed by the working standards and and supply chain. We implement programs to manage these risks and have
We recognize and respect employee rights to join or not join any lawful"
2023-cf-industries-esg-report.txt,"practices management approach involves
association and collective bargaining are identified as a significant risk. Further,
and in a manner that keeps our employees and communities safe. CF expects continuous monitoring of the risk environments as well as performance of
CF is not aware of suppliers where these rights are at risk. Per our Human Rights
all third parties and their respective employees, agents and subcontractors the security program. These elements are accomplished through security
Policy, we recognize and respect employee rights to join or not join any lawful"
2023-cf-industries-esg-report.txt,"ents, suppliers
during the reporting period. In addition, our operations in the UK have a policy on development opportunities and philanthropic support for local causes. are expected to be in full compliance with all applicable anti-corruption laws,
Modern Slavery and we conduct reviews to ensure compliance by our suppliers. including but not limited to the Foreign Corrupt Practices Act, anti-boycott laws
and trade sanctions.
413-2
412-2 OPERATIONS WITH SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE
EMPLOYEE TRAINING ON HUMAN RIGHTS POLICES OR PROCEDURES IMPACTS ON LOCAL COMMUNITIES 414-2"
2023-cf-industries-esg-report.txt,"mer information.
products and that information is shared on product safety data sheets and in whom we supply and contain the requisite information about the environmental Regular audits and assessments are conducted to verify compliance with
The CF global public affairs team identifies current and emerging public policy other product literature. impact of our products, including information about safe use and disposal. applicable privacy regulations and industry standards. We continually invest
risks and opportunities to assist the corporation in achieving its business goals. in technology and employee training to enhance data security and prevent"
2023-cf-industries-esg-report.txt,"ective actions is the foundation for an
concerns to achieve quantifiable results. Please see GRI Disclosure 2-28 – optimized allocation of resources
Membership of associations for a list of the industry organizations of which CF
is a member. 417-2 418-1
INCIDENTS OF NON-COMPLIANCE CONCERNING PRODUCT AND SUBSTANTIATED COMPLAINTS CONCERNING BREACHES OF
SERVICE INFORMATION AND LABELING CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA
The company has a political action committee, the CF Employees’ Good
Government Fund (CF Fund) that is funded solely through voluntary employee 416-1 CF received no warning(s) related to product registration in a U.S. state Company has not identified any substantiated complaints concerning breaches"
2023-cf-industries-esg-report.txt,"e of terrestrial ecosystems, sustainably
and opinion as part of our strategic roadmap. We have exceeded our goal of at least 30% manage forests, combat deforestation, and halt and reverse land degradation and halt
representation of females and persons of color in senior leadership roles by 2025, and we biodiversity loss
continue to implement programs that create additional pathways to long-term professional
Most of our products are used in farming applications to produce higher yields, allowing
growth through the hiring and promotion of traditionally underrepresented employee"
2023-cf-industries-esg-report.txt,"rates management of programs delivered to our employees to educate
Protocol (GHGP). The Company discloses Scope 1, Scope 2, and Scope 3 emissions, including measuring Scope them on the Company’s Code of Conduct; corporate policies; environment, health, safety, and security; inclu-
1 emissions as direct emissions from sources that are owned or operated by CF Industries, and Scope 2 emis- sion, diversity, and equity; information technology and data security; and professional development. We track
sions based on the average emissions intensity of electricity grids where CF Industries’ facilities procure or average hours of training per year per employee, in addition to other relevant metrics."
2023-cf-industries-esg-report.txt,"s with stakeholder groups. Product Stewardship, Nature, & Biodiversity;
Climate Change Environmental Compliance
Upon completion of the materiality assessment, and Ethics & Governance.
CF Industries identified 16 material topics.
The four dimensions serve as a functional Water Management Food Security
Since that original assessment, we continue to framework to help prioritize and manage
prioritize collecting and monitoring stakeholder each material topic, including identifying Product Design for
Workforce Health & Safety"
2023-cf-industries-esg-report.txt,"tup review. Ongoing
feel seen, heard, and valued.
efforts through the launch of the CF
Industries Foundation.
Achieved 2023;
Complete safety critical equipment inspections per schedule.
Ongoing
CF INDUSTRIES • ESG REPORT 2023 34FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Workforce Health & Safety"
2023-cf-industries-esg-report.txt,"e CF
Industries Foundation.
Achieved 2023;
Complete safety critical equipment inspections per schedule.
Ongoing
CF INDUSTRIES • ESG REPORT 2023 34FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
Workforce Health & Safety
Culture of Environmental, Health, and Safety Excellence
Workplace and workforce safety is embedded into our culture and We empower all employees to promote a culture of EHS excellence"
2023-cf-industries-esg-report.txt,"al
up for aggregate quarterly leadership reviews. focuses on personal development and
and fuel the world sustainably by attracting
media campaign to increase
its relation to professional development.
and retaining top talent, improving business
▶ Partnered with diversity-focused recruiting employee engagement,
All mentors have some knowledge of
efficiency, bolstering the overall resilience of
platforms to expand our job listing reach: including a spotlight on
or experience in the ID&E field and
our workforce, and driving greater collaboration"
2023-cf-industries-esg-report.txt,"luate the structure of our executive
compensation program annually to ensure that executive compensation remains in line with our business
strategy and ESG objectives. In 2023, executive compensation was tied to the following ESG goals and metrics:
1. Clean energy performance, which included developing the Company’s decarbonization plan to achieve our
2030 and 2050 GHG emissions goals and achieving mechanical completion of the electroyzer for the
Donaldsonville ammonia project by year-end 2023;
2. Workforce Health and Safety, which included the completion of critical safety equipment inspections on"
2023-cf-industries-esg-report.txt,"pages 9-15; ”ESG at CF Industries, “ pages 16-21, “Energy, Emissions & Climate Change,”
See also 2023 ESG Report, “A Message from our CEO,” pages 2-5; “ESG at CF Industries — Management of ESG Issues at CF Industries,” page 17, “Energy, Emissions and
pages 23-32 and “Food Security, Product Stewardship, Nature and Biodiversity,” pages 48-57.
Climate Change,” pages 22-32; “Food Security, Product Stewardship, Nature and Biodiversity,” pages 48-57; “Ethics and Governance -- Governance -- Management
Oversight of ESG Goals and Progress”, page 64 and “Our Workplace & Communities -- Workforce Health and Safety--Oversight of Safety at CF Industries,” page 36."
2023-cf-industries-esg-report.txt,"h GRI 413: Community, 413- 2:
Discussion of engagement processes to manage risks and Discussion and
Community Relations n/a RT-CH-210a.1 Operations with significant actual and
opportunities associated with community interests Analysis
potential negative impacts on local
communities
(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) GRI 403: Occupational Health and Safety,
Quantitative Rate RT-CH-320a.1
direct employees and (b) contract employee 403-9: Work- related injuries
Workforce Health &"
2023-cf-industries-esg-report.txt,"ess success. It also reaffirms the company’s long-standing practice
base salary, actual bonus paid and total target fair value of all annual long-term CF’s Code of Corporate Conduct of conducting its business in full compliance with the letter and spirit of all
incentives from the current and/or prior reporting periods. Due to the variability https://www.cfindustries.com/globalassets/cf-industries/media/documents/ applicable laws, rules, and regulations, and in accordance with the highest level
of the annual earnings for our hourly workforce and our performance-based cfindustries-code-of-corporate-conduct of ethical standards."
2023-cf-industries-esg-report.txt,"RT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
2-28 2 STAKEHOLDER ENGAGEMENT 2-30 3 DISCLOSURES ON MATERIAL TOPICS
MEMBERSHIP ASSOCIATIONS COLLECTIVE BARGAINING AGREEMENTS
2-29 3-1
4R Plus APPROACH TO STAKEHOLDER ENGAGEMENT Previously GRI 102-41. PROCESS TO DETERMINE MATERIAL TOPICS
U.K. Agricultural Industries Confederation Agricultural Nutrient Policy Council
Previously GRI 102-40, 102-42, 102-43. Previously GRI 102-46.
Approximately 5 percent of CF’s total workforce were covered by a collective"
2023-cf-industries-esg-report.txt,"Courtright 22,567,803 57,899,243 39%
See CF’s Code of Corporate Conduct, pages 22-23
Northbrook 102,825,208 252,570,049 41%
203-2
SIGNIFICANT INDIRECT ECONOMIC IMPACTS Donaldsonville 419,604,141 565,959,299 74%
See 2023 ESG Report, “Our Workplaces & Communities,” pages 34-47 and “Food Medicine Hat 23,824,811 94,021,690 25% 205-3
Security, Product Stewardship, Nature and Biodiversity,” pages 48-57. See also CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN
Port Neal 43,175,273 101,217,013 43%
2023 Sustainability Summary, “Workforce,” pages 26-31, and “Community,”"
2023-cf-industries-esg-report.txt,"ent to treat or transport any waste.
CF INDUSTRIES • ESG REPORT 2023 89FOOD SECURITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
SOCIAL
401 EMPLOYMENT 401-1 401-2
Regular
NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BENEFITS PROVIDED TO FULL-TIME EMPLOYEES Type of Benefit (UK) Apprentices
3-3 Workforce"
2023-cf-industries-esg-report.txt,"NS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
SOCIAL
401 EMPLOYMENT 401-1 401-2
Regular
NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BENEFITS PROVIDED TO FULL-TIME EMPLOYEES Type of Benefit (UK) Apprentices
3-3 Workforce
MANAGEMENT APPROACH In the United States and Canada, CF provides competitive compensation and
WORKFORCE BY AGE AND GENDER (ALL LOCATIONS): Private Medical Insurance O X"
2023-cf-industries-esg-report.txt,"tribution plans.
The majority of administrative, insurance and other costs associated with CF-
Formal Wellness Plan X O sponsored health and welfare plans is borne by the company. Participation in the
All data in this section is as of December 31 of the reporting year.
pension scheme is subject to a minimum of auto- enrollment legislation in the
Data includes regular and temporary employee types. Maternity Leave X X
UK. The only group not entitled to all benefits are our apprentices. We have 10
Paternity Leave X X apprentices out of a total workforce of 196 employees."
2023-cf-industries-esg-report.txt,"ng What’s Right through robust systems that provide clear direction and
leave ended We provide a minimum number of weeks’ notice to employees prior to Some Location-Specific 2023 Safety Highlights included: performance standards; ensuring the Ability to Do It Right through efficient and
implementing significant operational changes that could substantially affect effective safety practices and tools that add value to the business; and Do It
Billingham had no employee recordable injuries in 2023.
Total number of employees them in accordance with local requirements in the different locations where we Right Every Time through a high-performing culture and engaged workforce that"
2023-cf-industries-esg-report.txt,"ow as
403-3
agreeable action plan to correct any observed behaviors that placed or could
reasonably practicable. These controls are regularly monitored for effectiveness OCCUPATIONAL HEALTH SERVICES Some additional Location-Specific 2023 Start Right highlights included: have placed the worker or others at risk. This process helps to ensure the
and updated to respond to changing conditions or activities. Process controls, successful planning and execution of the mental and physical activities to
mechanical integrity assurance processes, and sound maintenance and SASB Topic: Workforce Health & Safety, Code: RT-CH-320a.2 • Billingham distributed insulated water bottles to all employee to encourage consistently achieve the intended safe objectives. We set HPR goals annually to"
2023-cf-industries-esg-report.txt,"g that promotes general EHS awareness, reinforces
our EHS policy and management system, and develops or maintains appropriate In addition to our on-site health centers, CF employees also have access to
403-9
personnel skill and knowledge levels required for a safe, healthful, secure, and online tools and resources to help employees meet their physical, financial,
WORK-RELATED INJURIES
environmentally sound operation. emotional, educational, and work-related goals. As our employees achieve their
goals, they can also earn rewards through our well-being incentive programs. SASB Topic: Workforce Health & Safety, Code: RT-CH-320a.1"
2023-cf-industries-esg-report.txt,"URITY,
ESG AT ENERGY, EMISSIONS OUR WORKPLACE PRODUCT STEWARDSHIP, ETHICS & COALITIONS, PARTNERSHIPS REPORTING
MESSAGE FROM CEO ABOUT THIS REPORT OUR BUSINESS CF INDUSTRIES & CLIMATE CHANGE & COMMUNITIES NATURE & BIODIVERSITY GOVERNANCE & POLICY ENGAGEMENT & DATA
405 DIVERSITY AND EQUAL OPPORTUNITY Anti-Discrimination Policy: We work together to make sure our workplace is a Employee Diversity 406 NON-DISCRIMINATION
respectful, inclusive, and productive one. This means that our organization will
3-3 never unlawfully discriminate against any person on any basis in our operations. Workforce by Age and Gender (All Locations): 3-3"
2023-cf-industries-esg-report.txt,"ined as the Company’s ongoing effort to foster an environment where all CF Indus-
pany, with most of these indirect emissions associated with crop nutrient application/use by farmers.
tries’ members are treated equitably, enabling them to contribute fully to our business and their own profes-
2. Energy Management is defined as management practices associated with Company-wide energy consump- sional and personal development. We maintain anti-discrimination and anti-harassment policies while also
tion. We measure the total energy consumed by all our facilities, along with percentages associated with grid tracking the diversity of our workforce and board of directors by age, gender, and ethnicity."
2023-cf-industries-esg-report.txt,"ular audits, while also evaluating suppliers for potential risks related to environmental compliance.
and use. We measure total water withdrawals along with total and net water consumption, including water
13. Food Security is based on society’s access to a sufficient quantity of affordable food. CF Industries remains
that we treat and return to its original source, among other metrics.
committed not only to producing essential soil nutrients but also to supporting food security sustainably via
6. Workforce Health & Safety relates to the Company’s efforts to assess, monitor, and reduce occupational expo- the expanded adoption of enhanced conservation practices and nutrient management techniques. We aim"
2023-cf-industries-sustainability-report.txt,"ings
for the right reasons. Today, this takes shape through our efforts to decarbonize our ammonia
Industries production process while also addressing other issues important to CF Industries and its
stakeholders, including safety, inclusion and diversity, food security, nutrient management,
biodiversity, and community involvement.
President and
How does safety fit in your sustainability agenda?
CEO Tony Will
Safety is the foundation of our culture, and everything else we do builds on it. We are
extremely proud of how our safety excellence is in many ways employee-led, demonstrated"
2023-cf-industries-sustainability-report.txt,"th opportunity
by 10% by 2030 (compared to a for the Company to meet new
2020 baseline). demand for its core product.
We are seeking to achieve these
goals through investments to reduce
emissions from current operations
and advance new project builds
and partnerships with other leading
companies.
CF INDUSTRIES | 2023 SUSTAINABILITY REPORT 7Our Team
Our Core Values – We Do It Right, We Do It Well, We Execute as a Team, and
We Take a Long-Term View – drive everything we do at CF Industries. These
values provide the foundation of each employee’s experience and how we serve"
2023-cf-industries-sustainability-report.txt,"into a repeatable and customizable practice based on job
function. This includes stretching, core strengthening, ergonomic, and
mental health modules. We also facilitated on-site physical therapist
sessions to aid with employees’ mobility.
We have in-house initiatives that train our employees and contractors
to act in accordance with our corporate safety philosophy.
Recordable
Incident Rate (RIR)
0.11 Days Away Restricted or
0.36
Transferred (DART) Incident Rate
workplace injuries or illnesses
that result in an employee"
2023-cf-industries-sustainability-report.txt,"t in an employee
incidents per
being away from work.
200,000 hours.
Lost Time Incident Rate (LTIR)
0.04
workplace incidents that result
in time lost at work.
OUT OF OFFICE
24 CF INDUSTRIES | 2023 SUSTAINABILITY REPORTSafety
Fostering a Culture of Safety Excellence 2023 Winner
Wilson Award for
Be
• Plan for continuous improvement in safety Safety Excellence
Strategic • Know and act on safety data trends
• Align management systems to support safety
Each year, we recognize
Be • Model “Do It Right”
employee safety innovations"
2023-cf-industries-sustainability-report.txt,"g and developing diverse talent. For more
information on our workforce, please read our 2023 ESG Report.
Recognized as one of Forbes’ World’s
Best Employers and World’s Best
Mid-Sized Employers, Newsweek’s
Most Responsible Companies, and
WSJ’s Management Top 250.
Launched a career planning
Create additional pathways to long-term Increase representation of females framework that provides additional
professional growth for traditionally and persons of color in senior support to career progression
underrepresented employee groups leadership roles (director level and"
2023-cf-industries-sustainability-report.txt,"ety of Women Engineers, and
underrepresented groups. the Society of Professional Engineers.
Partnership with datapeople Partnership with Jopwell
Implemented software to improve Utilized a recruiting platform that
job descriptions with the goal of connects us with diverse professionals
increasing the number of diverse and students, focusing on areas such as
candidates. finance and IT.
CF INDUSTRIES | 2023 SUSTAINABILITY REPORT 29Workforce
2023 ID&E Learning Supporting Our Employees
Opportunities
Benefits and Employee Retention"
2023-cf-industries-sustainability-report.txt,"ships, made its first grants in 2023. These
include $50,000 to the Chicago High
communicate with key stakeholders, and partner with first responders and
School of Agricultural Science, a
others to promote a safe environment for all.
Chicago Public School focused on
preparing students for opportunities
in agriculture, and a $120,000 grant
over three years to Second Harvest
Food Bank of Greater New Orleans
and Acadiana to support the
organization’s programs to improve
food access in the Waggaman,
Achieve 25% employee participation Increase and maintain ongoing Louisiana, area of Jefferson Parish."
2023-cf-industries-sustainability-report.txt,"ns, we launched the CF relief to victims of both natural and man- Oklahoma, near our Woodward Complex,
Industries Foundation in late 2022, made disasters along the Gulf Coast. and leading engineering classes at
a not-for-profit corporation founded Donaldsonville High School in Louisiana,
and supported by the Company to home to our largest facility.
advance philanthropic goals and
develop programs that further our
Healthy Food Access Local Community Advancement
charitable objectives. To maximize
CF Industries expanded our partnership 2023 saw a notable increase in employee"
2023-cf-industries-sustainability-report.txt,"CF Industries 2023:
Sustainability SummaryTable of Contents
3 About Our Sustainability Summary
4 A Conversation with CF Industries President and CEO Tony Will
6 Our Business
8 Our Team
10 What Sustainability Means at CF Industries
12 What Our Sustainability Efforts Mean for the World
14 Environment
22 Safety
26 Workforce"
2023-cf-industries-sustainability-report.txt,"her leading
companies.
CF INDUSTRIES | 2023 SUSTAINABILITY REPORT 7Our Team
Our Core Values – We Do It Right, We Do It Well, We Execute as a Team, and
We Take a Long-Term View – drive everything we do at CF Industries. These
values provide the foundation of each employee’s experience and how we serve
those who touch our business. Supported by our Core Values, CF Industries’
Vision, Mission, and Strategy guide our daily activities and set the framework for
executing our clean energy initiatives.
58% of our workforce has"
2023-cf-industries-sustainability-report.txt,"Y REPORT 25Workforce
CF Industries is committed to creating a culture where all employees feel
safe to respectfully voice their ideas and bring their fully authentic selves to
work – to feel seen, heard, and valued. We are also focused on promoting
employees’ health and well-being with competitive salaries, comprehensive
benefits, career growth, development opportunities, and by upholding a
culture of inclusion and belonging.
We strive to be an employer of choice, working to organize our global
workforce around a collaborative spirit that delivers steady progress against"
2023-cf-industries-sustainability-report.txt,"feel seen, heard, and valued. We are also focused on promoting
employees’ health and well-being with competitive salaries, comprehensive
benefits, career growth, development opportunities, and by upholding a
culture of inclusion and belonging.
We strive to be an employer of choice, working to organize our global
workforce around a collaborative spirit that delivers steady progress against
our goals while supporting every member of our team.
26 CF INDUSTRIES | 2023 SUSTAINABILITY REPORTWorkforce
Our Workforce Goals Emerging Projects"
2023-cf-industries-sustainability-report.txt,"omoting
employees’ health and well-being with competitive salaries, comprehensive
benefits, career growth, development opportunities, and by upholding a
culture of inclusion and belonging.
We strive to be an employer of choice, working to organize our global
workforce around a collaborative spirit that delivers steady progress against
our goals while supporting every member of our team.
26 CF INDUSTRIES | 2023 SUSTAINABILITY REPORTWorkforce
Our Workforce Goals Emerging Projects
and Partnerships
We are committed to supporting our existing workforce while devoting for our Workforce"
2023-cf-industries-sustainability-report.txt,"inclusion and belonging.
We strive to be an employer of choice, working to organize our global
workforce around a collaborative spirit that delivers steady progress against
our goals while supporting every member of our team.
26 CF INDUSTRIES | 2023 SUSTAINABILITY REPORTWorkforce
Our Workforce Goals Emerging Projects
and Partnerships
We are committed to supporting our existing workforce while devoting for our Workforce
significant resources toward hiring and developing diverse talent. For more
information on our workforce, please read our 2023 ESG Report."
2023-cf-industries-sustainability-report.txt,"o
create an inclusive workplace, from
150 employees to 670 employees.
CF INDUSTRIES | 2023 SUSTAINABILITY REPORT 27Workforce
Inclusion, Diversity & Equity
Through our ID&E initiatives, we prioritize elevating diverse perspectives and creating
an inclusive, equitable working environment. We believe this not only brings out the
best in all our team members, but helps ensure we are better equipped to achieve our
mission to feed and fuel the world sustainably by attracting and retaining top talent,
improving business efficiency, bolstering the overall resilience of our workforce, and"
2023-cme-group-esg-report.txt,"2 0 2 3 E S G R E P O R T
WORKFORCE SUSTAINABLE COMMUNITY CORPORATE
EMPOWERMENT SOLUTIONS COMMITMENT STEWARDSHIPTABLE OF CONTENTS
03 04 07 15 21 30 39
MESSAGE FROM ABOUT WORKFORCE SUSTAINABLE COMMUNITY CORPORATE APPENDIX
OUR CHAIRMAN CME GROUP EMPOWERMENT SOLUTIONS COMMITMENT STEWARDSHIP
& CHIEF
SASB Index
EXECUTIVE
Employee Global Sustainable CME Group Corporate"
2023-cme-group-esg-report.txt,"RISTIN WOOD MEG WRIGHTMessage From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 07
WORKFORCE EMPOWERMENT
CME Group employees embody the essence of our
company’s commitment to excellence and innovation,
and they are the driving force behind our success. We
2023 Highlights
invest in our employees by fostering a workplace that
not only nurtures their professional development, but
Launched an interactive Employee Orientation Program that helps new employees in all of"
2023-cme-group-esg-report.txt,"rovides opportunities to advance within their
our offices across the globe to onboard quickly and perform effectively in their first 90 days.
roles and careers.
Announced a new, market-leading and inclusive family building benefit during 2023 U.S.
Benefits Open Enrollment for the 2024 plan year.
Continued to invest in our 10-year partnership with Google Cloud to provide cloud
technology training and certification programs for employees.
87% 5.6% 38% $1M
OF EMPLOYEES VOLUNTARY OF EMPLOYEES SPENT
feel they have access to TURNOVER belong to an Employee on cloud technology"
2023-cme-group-esg-report.txt,"lding benefit during 2023 U.S.
Benefits Open Enrollment for the 2024 plan year.
Continued to invest in our 10-year partnership with Google Cloud to provide cloud
technology training and certification programs for employees.
87% 5.6% 38% $1M
OF EMPLOYEES VOLUNTARY OF EMPLOYEES SPENT
feel they have access to TURNOVER belong to an Employee on cloud technology
the resources needed to down nearly 50% from Resource Group (ERG) training and
IN THIS SECTION
do their jobs effectively 2022 certifications
› Employee Engagement and"
2023-cme-group-esg-report.txt,"om Resource Group (ERG) training and
IN THIS SECTION
do their jobs effectively 2022 certifications
› Employee Engagement and
WORKPLACE AWARDS
Development
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08"
2023-cme-group-esg-report.txt,"ment and
WORKPLACE AWARDS
Development
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT
Employee Engagement and Development"
2023-cme-group-esg-report.txt,"t
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT
Employee Engagement and Development
Employee feedback is a critical input into the evolution of our employee development"
2023-cme-group-esg-report.txt,"n Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT
Employee Engagement and Development
Employee feedback is a critical input into the evolution of our employee development
GAUGING THE EMPLOYEE EXPERIENCE:"
2023-cme-group-esg-report.txt,"aces to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT
Employee Engagement and Development
Employee feedback is a critical input into the evolution of our employee development
GAUGING THE EMPLOYEE EXPERIENCE:
programs and resources. We regularly assess the employee experience through engagement"
2023-cme-group-esg-report.txt,"force Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT
Employee Engagement and Development
Employee feedback is a critical input into the evolution of our employee development
GAUGING THE EMPLOYEE EXPERIENCE:
programs and resources. We regularly assess the employee experience through engagement
Message From
Our Chairman surveys and onboarding and exit interviews to better understand employee perspectives and"
2023-cme-group-esg-report.txt,"continuous improvement.
FEEL THEY HAVE ACCESS TO
87% THE RESOURCES NEEDED TO
About CME Group DO THEIR JOBS EFFECTIVELY
MEASURING KEY CORPORATE METRICS
Workforce
Empowerment
5.6% 30.4% 17.1%
Sustainable
Solutions 76% FEEL VALUED
VOLUNTARY OPEN ROLES FILLED EMPLOYEES
TURNOVER WITH INTERNAL PROMOTED
Community (10.2% in 2022) CANDIDATES (21.5% in 2022)
Commitment
(43.7% in 2022)
Corporate
Stewardship CAN MAINTAIN A HEALTHY
Listening to our employees 76% BALANCE BETWEEN THEIR
WORK AND PERSONAL LIVES
Appendix In 2023, we administered a pulse employee experience survey. This shortened survey was"
2023-cme-group-esg-report.txt,"ironment that supports our employees’ professional development is vital The Essentials for
to our success. We encourage the pursuit of continued education, intentional goal-setting
New People Managers
and constructive feedback, providing on-the-job training and resources to support these
Program was
endeavors.
challenging, practical
Examples of our professional and leadership development offerings include:
and hands-on. It was a
Message From
Our Chairman
real education for the
& Chief Executive
Officer Enhanced Employee Orientation Program that is globally consistent and"
2023-cme-group-esg-report.txt,"tunities to obtain Google
Corporate virtual, instructor-led
Stewardship Cloud professional certificates. workshop
Appendix
Cloud is a whole new world to many of us. As we migrate hundreds of applications and
innovate with new technologies, the Cloud Digital Leader certification enables us to think about
our business use cases and how cloud solutions support our enterprise.
KEVIN KRANZ
Director, FinOps, ChicagoWORKFORCE EMPOWERMENT 11
Global Diversity and Inclusion Building community through our
Employee Resource Groups (ERGs)"
2023-cme-group-esg-report.txt,"ss and best serve 38%
Message From insights and experiences to improve our
Our Chairman the communities in which we live and work.
& Chief Executive hiring, retention and development efforts.
Officer Our cross-functional Diversity and Inclusion (D&I) Council is responsible for driving our Each of our 11 ERGs is focused on specific
OF EMPLOYEES
corporate D&I strategy and ensuring we have the right resources in place to support and grow belong to at least community associations or identifications
About CME Group our diverse employee population. The D&I Council comprises members of our Management one ERG and membership is open to all employees"
2023-cme-group-esg-report.txt,"applicants, including those support, mentee-mentor orientation
& Chief Executive
from underrepresented groups. sessions and curated resources and
Officer
Launched a new interview trainings.
scorecard to create consistent
About CME Group Supporting diverse suppliers:
evaluation categories and reduce
bias in the recruitment process. Increased diverse supplier
Workforce participation in our request for
Empowerment Provided potential candidates
proposal process.
visibility into our company culture
by sharing employee testimonials, Continued to raise awareness of"
2023-cme-group-esg-report.txt,"52.9% 54.7% 55.9%
About CME Group
Not Reported 8.0% 7.6% 7.0%
Workforce
Empowerment
Sustainable TOTAL WORKFORCE PEOPLE MANAGERS SENIOR MANAGING DIRECTORS AND ABOVE
Solutions
32% 30% 54%
2023 2023 2023
Community
68% 70% 46%
Commitment
32% 30% 44%
2022 2022 2022
68% 70% 56%
Corporate
Stewardship
31% 29% 43%
2021 2021 2021
69% 71% 57%
Appendix
Female Male
To further enhance our transparency, we have published our Equal Employment Opportunity (EEO-1) data for the U.S. here..WORKFORCE EMPOWERMENT 14
Employee health and well-being"
2023-cme-group-esg-report.txt,"ed a new inclusive family building benefit in the U.S. for the 2024
About CME Group
plan year. Through this unique program, employees can receive medical
benefits related to infertility in a holistic manner with access to state-of-the-
art medical testing and without annual limits on medications. Additionally,
Workforce
Empowerment we added surrogacy coverage for the first time and enhanced our adoption
and parental leave benefits. Our ERGs are instrumental in helping us enhance the
Sustainable
employee experience and improve our hiring, retention"
2023-cme-group-esg-report.txt,"veraged the partnership to conduct several educational
Women in Technology and PRIDE ERGs, we extended our
sessions, such as a workshop for managers to help them recognize and
Corporate respond to mental crises. family building benefits, creating a more inclusive
Stewardship
offering. Year after year, we remain committed
to ensuring that our benefits offerings effectively cater to
Appendix
Championing young girls’ mental health: As part of the programming for
the diverse needs of our employees.
our fourth annual global Employee Well-being Week, we hosted a panel"
2023-cme-group-esg-report.txt,"munity
Commitment The Taskforce on Scaling Voluntary Carbon Markets
Corporate
Stewardship
The International Organization of Securities Commissions (IOSCO) Affiliate Members
Advisory Committee and its Sustainability Taskforce
Appendix
Futures Industry Association U.S. Commodities Climate Risk Working Group
Owain Johnson participating in an SSE panel discussion at COP28.
For more information on our industry participation, see Corporate Stewardship.SUSTAINABLE SOLUTIONS 18
CME Group Innovation Lab
Our Employee Innovation Program"
2023-cme-group-esg-report.txt,"OPE5 (MWh)
Scope 3 emissions are the result of activities from assets CME Group
50,000,000 47,115
does not own or control, but indirectly impact our value chain.
Message From 45,000,000
Our Chairman
40,000,000
& Chief Executive
Officer 2% 35,000,000
1%
1%
3% 30,000,000 27,510
4% 0%
About CME Group 25,000,000 46,419
Purchased Goods 20,000,000
and Services
15,000,000
26,120
Workforce
Capital Goods
10,000,000
Empowerment
20% Waste
5,000,000 696 1,390
Business Travel (Air Flights)
0
69%
Sustainable
Employee Commuting 2022 2023"
2023-cme-group-esg-report.txt,"ing our workforce to contribute to programs and causes that are
meaningful to them. It also encompasses our longstanding relationship with the LPGA
I really appreciate the
and St. Jude Children’s Research Hospital, as well as the Chicago Star Scholars Program.
Matching Gift Program,
Engaging employees through impact
Message From as it demonstrates tangible
Our Chairman
& Chief Executive Part of what it means to offer a rich In addition to our Matching Gift Program, and direct support of
Officer
employee experience includes providing each of our 11 ERGs is allocated $5,000"
2023-cme-group-esg-report.txt,"of
Officer
employee experience includes providing each of our 11 ERGs is allocated $5,000
CME Group employees
our people with opportunities to give annually to donate to eligible nonprofit
About CME Group back to their communities – both organizations that align with their interests. and the causes that are
monetarily and through volunteering. Select recipient organizations from 2023
important to them. The
Workforce Our Matching Gift Program matches included:
Empowerment program is very easy to
employee donations to eligible charitable"
2023-cme-group-esg-report.txt,"give annually to donate to eligible nonprofit
About CME Group back to their communities – both organizations that align with their interests. and the causes that are
monetarily and through volunteering. Select recipient organizations from 2023
important to them. The
Workforce Our Matching Gift Program matches included:
Empowerment program is very easy to
employee donations to eligible charitable
Attention Deficit Disorder Association
organizations of $25 or more, up to use and only takes a few
Sustainable $1,500 per calendar year per employee. Beyond the Battlefield"
2023-cme-group-esg-report.txt,"others, which contribute to the prevention of technology incidents.
Commitment and market
disruptions INFORMATION SECURITY
Our Global Information Security Program is designed and operated to mitigate information security risks and threats to the company. Its intent is to safeguard the confidentiality,
Corporate integrity and availability of CME Group’s information and services. The program is designed to strengthen the integrity of the global markets we support, protect CME Group’s
Stewardship
information assets, maintain client and employee trust, support our pursuit of strategic objectives, contribute to shareholder value and preserve our reputation and brand. The program"
2023-cme-group-esg-report.txt,"2%
About CME Group
1 Mobile Combustion miles 33,382 7 0.0% 7 0.0%
2 Indirect Emissions from Purchased Energy 10,448 8.7% 10,417 11.4%
Workforce
Empowerment 2 Electricity MWh 26,120 9,564 8.0% 9,533 10.4%
2 District Cooling (Chilled Water) Ton-hours 1,389,189 884 0.7% 884 1.0%
Sustainable 3 All Other Indirect Emissions 108,793 91.0% 80,753 88.3%
Solutions
3 Fuel and Energy Related var. - 580 0.5% 580 0.6%
3 Business Travel (Air Flights) miles 13,675,991 2,119 1.8% 2,119 2.3%
Community
Commitment
3 Employee Commuting var. - 1,380 1.2% 1,380 1.5%"
2023-cme-group-esg-report.txt,"2 0 2 3 E S G R E P O R T
WORKFORCE SUSTAINABLE COMMUNITY CORPORATE"
2023-cme-group-esg-report.txt,"2 0 2 3 E S G R E P O R T
WORKFORCE SUSTAINABLE COMMUNITY CORPORATE
EMPOWERMENT SOLUTIONS COMMITMENT STEWARDSHIPTABLE OF CONTENTS
03 04 07 15 21 30 39
MESSAGE FROM ABOUT WORKFORCE SUSTAINABLE COMMUNITY CORPORATE APPENDIX"
2023-cme-group-esg-report.txt,"FICER
As the world’s leading derivatives marketplace, CME Group plays a significant role in
2023 FACTS & FIGURES
the global economy. In fact, 2023 marked the strongest year in our history. Our high
standing means we have an important responsibility to support our clients, employees and
Message From 3,565 200 24.4M
communities around the world.
Our Chairman
& Chief Executive
Officer It is through this lens that we approach our commitments to developing sustainable
EMPLOYEES COUNTRIES & CONTRACTS
solutions, empowering our workforce, making a philanthropic impact and governing our"
2023-cme-group-esg-report.txt,"Officer It is through this lens that we approach our commitments to developing sustainable
EMPLOYEES COUNTRIES & CONTRACTS
solutions, empowering our workforce, making a philanthropic impact and governing our
TERRITORIES in overall average
About CME Group business. In the pages of this report, you’ll find a snapshot of our efforts throughout 2023, where CME Group daily volume reached
futures and options – a company record1
with a particular focus on highlighting key metrics.
contracts are traded
Workforce"
2023-cme-group-esg-report.txt,", cash and OTC products,
OTHER COMPANY
optimize portfolios and analyze data
AWARDS
Message From – empowering market participants
Our Chairman
worldwide to efficiently manage risk
& Chief Executive
Officer and capture opportunities. CME Group Americas Derivatives Clearing House
exchanges offer the widest range of of the Year
global benchmark products across all Global Capital
About CME Group
major asset classes based on interest
rates, equity indexes, foreign exchange Best Exchange Data Provider
Workforce"
2023-cme-group-esg-report.txt,"pital Markets
clearing house operates one of the
KEY 2023 ACCOLADES
world's leading central counterparty
Top 500 Brands in the U.S.
clearing providers.
Exchange of Global World’s Most Brand Finance
the Year Derivatives Valuable
Risk Magazine Exchange Exchange Brand
of the Year Brand Finance For a complete list of our company
Global Capital awards, see here.ABOUT CME GROUP 05
About this report
Our annual Environmental, Social and Governance (ESG) report details the oversight and execution of our
strategic framework that guides and tracks how we empower our workforce, develop sustainable solutions,"
2023-cme-group-esg-report.txt,"govern our business. Importantly, this framework is designed to support
our growth strategy by enabling us to be more adaptive to the ever-evolving business environment in which
we operate. We are mindful of our stakeholders' priorities2 and remain resolute in our commitment to engaging
with them to better understand their diverse needs so that we may adapt our approach accordingly.
Message From
Our Chairman
Our strategy is focused on four key pillars:
& Chief Executive
Officer
About CME Group
Workforce"
2023-cme-group-esg-report.txt,"r business. Importantly, this framework is designed to support
our growth strategy by enabling us to be more adaptive to the ever-evolving business environment in which
we operate. We are mindful of our stakeholders' priorities2 and remain resolute in our commitment to engaging
with them to better understand their diverse needs so that we may adapt our approach accordingly.
Message From
Our Chairman
Our strategy is focused on four key pillars:
& Chief Executive
Officer
About CME Group
Workforce
Empowerment Workforce Sustainable"
2023-cme-group-esg-report.txt,"ment refinements.
The Working Group co-leads report to our Chairman & Chief Executive Officer and Board of Directors' Executive Committee to ensure alignment
and support at the highest levels. The full Board maintains oversight of ESG-related risks within our Enterprise Risk Management (ERM) Program
and other committees of our Board oversee specific elements of our ESG program.
Message From
Our Chairman
& Chief Executive
Officer
About CME Group EXECUTIVE COMMITTEE | CME GROUP BOARD OF DIRECTORS
Workforce"
2023-cme-group-esg-report.txt,"Counsel
Commitment
SUPPORT
Corporate
Stewardship
Finance/Investor Relations Information Security Facilities Client Development & Research
LYNNE FITZPATRICK DAN MANLEY KEVIN LENNON OWAIN JOHNSON
Appendix
ADAM MINICK JULIE WINKLER
Human Resources Strategy Government Relations Products & Services
HILDA HARRIS PIELL DAVID WONG GAVIN PARKE PETER KEAVEY
FRANCIE SISUL LINDA RICH DEREK SAMMANN
Operational Resilience Communications/ Compliance/Governance
BETHANY NETZEL Charitable Giving CARRIE DI SANTO
KRISTIN WOOD MEG WRIGHTMessage From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 07"
2023-cme-group-esg-report.txt,"ADAM MINICK JULIE WINKLER
Human Resources Strategy Government Relations Products & Services
HILDA HARRIS PIELL DAVID WONG GAVIN PARKE PETER KEAVEY
FRANCIE SISUL LINDA RICH DEREK SAMMANN
Operational Resilience Communications/ Compliance/Governance
BETHANY NETZEL Charitable Giving CARRIE DI SANTO
KRISTIN WOOD MEG WRIGHTMessage From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 07
WORKFORCE EMPOWERMENT"
2023-cme-group-esg-report.txt,"$1M
OF EMPLOYEES VOLUNTARY OF EMPLOYEES SPENT
feel they have access to TURNOVER belong to an Employee on cloud technology
the resources needed to down nearly 50% from Resource Group (ERG) training and
IN THIS SECTION
do their jobs effectively 2022 certifications
› Employee Engagement and
WORKPLACE AWARDS
Development
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work"
2023-cme-group-esg-report.txt,"om Resource Group (ERG) training and
IN THIS SECTION
do their jobs effectively 2022 certifications
› Employee Engagement and
WORKPLACE AWARDS
Development
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08"
2023-cme-group-esg-report.txt,"ions
› Employee Engagement and
WORKPLACE AWARDS
Development
› Global Diversity and Inclusion
Computerworld’s CME Group earned a perfect American Heart CME Group's India
Best Places to score in The Human Rights Association’s office was Great
Work in IT Campaign Foundation Workforce Well- Place to Work
Corporate Equality Index Being Platinum CertifiedTM
(CEI), making us an Equality Recognition
100 winner
See more about our employee value proposition on our Careers website.WORKFORCE EMPOWERMENT 08
WORKFORCE EMPOWERMENT"
2023-cme-group-esg-report.txt,"assess the employee experience through engagement
Message From
Our Chairman surveys and onboarding and exit interviews to better understand employee perspectives and
& Chief Executive
improve our processes and offerings. Tracking our performance metrics allows us to identify
Officer
what we are doing well and where we need to focus our efforts on continuous improvement.
FEEL THEY HAVE ACCESS TO
87% THE RESOURCES NEEDED TO
About CME Group DO THEIR JOBS EFFECTIVELY
MEASURING KEY CORPORATE METRICS
Workforce"
2023-cme-group-esg-report.txt,"engagement survey showed an overall
engagement score of 70% and indicated employees feel positively about a number of factors
– notably that 87% feel they have access to the resources needed to do their jobs effectively FEEL THEY ARE APPROPRIATELY
73% INVOLVED IN THE DECISIONS
and 76% feel valued.
THAT AFFECT THEIR WORK
Detailed division and department breakdowns of the survey results are shared with the
appropriate leaders to explore and identify key areas to address with assistance from Human
Resources. We also share the findings with our workforce and proactively develop solutions for"
2023-cme-group-esg-report.txt,"vely about a number of factors
– notably that 87% feel they have access to the resources needed to do their jobs effectively FEEL THEY ARE APPROPRIATELY
73% INVOLVED IN THE DECISIONS
and 76% feel valued.
THAT AFFECT THEIR WORK
Detailed division and department breakdowns of the survey results are shared with the
appropriate leaders to explore and identify key areas to address with assistance from Human
Resources. We also share the findings with our workforce and proactively develop solutions for
areas that received lower levels of engagement or satisfaction.WORKFORCE EMPOWERMENT 09"
2023-cme-group-esg-report.txt,"needed to do their jobs effectively FEEL THEY ARE APPROPRIATELY
73% INVOLVED IN THE DECISIONS
and 76% feel valued.
THAT AFFECT THEIR WORK
Detailed division and department breakdowns of the survey results are shared with the
appropriate leaders to explore and identify key areas to address with assistance from Human
Resources. We also share the findings with our workforce and proactively develop solutions for
areas that received lower levels of engagement or satisfaction.WORKFORCE EMPOWERMENT 09
Developing our workforce"
2023-cme-group-esg-report.txt,"raining and resources to support these
Program was
endeavors.
challenging, practical
Examples of our professional and leadership development offerings include:
and hands-on. It was a
Message From
Our Chairman
real education for the
& Chief Executive
Officer Enhanced Employee Orientation Program that is globally consistent and
job we do as people
interactive to help new employees onboard quickly and perform effectively
in their first 90 days. managers. I was
About CME Group
encouraged to lean in
Workforce and participate, which"
2023-cme-group-esg-report.txt,"ipate, which
Empowerment Onsite and virtual-led professional development training courses and
seminars. was refreshing!
Sustainable
Solutions
JAN BODEY
More than 10,000 online educational courses focused on leadership and Director, Software Engineering, London
Community
technical skills.
Commitment
Corporate
Stewardship The Essentials for New People Managers Program—designed to help
first-time managers at CME Group gain the confidence and skills necessary
to succeed in their new roles.
Appendix
Tuition assistance for continuing education.WORKFORCE EMPOWERMENT 10"
2023-cme-group-esg-report.txt,"g for
SPENT
our employees. CME Group invested approximately $1 million in cloud technology training and
on cloud technology
certifications in 2023. Specific Google Cloud upskilling initiatives included: training and certifications
Message From
Our Chairman
& Chief Executive
Officer
Learning Tracks: Developed 15 different learning tracks for Google Cloud training. 233
About CME Group
EMPLOYEES
Virtual Instructor-Led Workshops: Focused on building technical skills to support across six Cloud Hero
Workforce"
2023-cme-group-esg-report.txt,"ght resources in place to support and grow belong to at least community associations or identifications
About CME Group our diverse employee population. The D&I Council comprises members of our Management one ERG and membership is open to all employees
Team in addition to employees from across the organization representing a wide variety of globally. In 2023, we implemented a
backgrounds and perspectives. Leading the D&I Council are our Chief Human Resources standardized ERG board structure and
Workforce"
2023-cme-group-esg-report.txt,"ates on D&I progress. leaders to further support them in making a
Sustainable positive impact.
Solutions
Our employees continued to engage with
our ERGs in 2023, and we actively
Community
Commitment promoted social and networking ERG
events on matters of importance
throughout the year, including Black History
Corporate
Stewardship Month, International Women’s Day, Earth
Day, Asian American and Pacific Island
Heritage Month, Pride Month and more.
Appendix
To learn more about our ERG communities,
visit our website.WORKFORCE EMPOWERMENT 12"
2023-cme-group-esg-report.txt,"o be more intentional Mentoring Program that included
about attracting all qualified thoughtful in-house matching
Message From
Our Chairman applicants, including those support, mentee-mentor orientation
& Chief Executive
from underrepresented groups. sessions and curated resources and
Officer
Launched a new interview trainings.
scorecard to create consistent
About CME Group Supporting diverse suppliers:
evaluation categories and reduce
bias in the recruitment process. Increased diverse supplier
Workforce participation in our request for"
2023-cme-group-esg-report.txt,"Program
and rolling out our ERG landing throughout the organization and
page on our external careers site with prospective supplier partners.
Community
that highlights how these groups
Commitment
Worked to align our Supplier
advance a more diverse and
Diversity Program with our
inclusive workplace.
corporate D&I Council strategy.
Corporate
Stewardship
Appendix
$16.2M 1.6% 64
CME GROUP DIVERSE OF TOTAL NUMBER OF
SUPPLIER SPEND CME GROUP CME GROUP
($18.5M in 2022) SUPPLIER SPEND DIVERSE SUPPLIERS
(2% in 2022) (57 in 2022)WORKFORCE EMPOWERMENT 13"
2023-cme-group-esg-report.txt,"the organization and
page on our external careers site with prospective supplier partners.
Community
that highlights how these groups
Commitment
Worked to align our Supplier
advance a more diverse and
Diversity Program with our
inclusive workplace.
corporate D&I Council strategy.
Corporate
Stewardship
Appendix
$16.2M 1.6% 64
CME GROUP DIVERSE OF TOTAL NUMBER OF
SUPPLIER SPEND CME GROUP CME GROUP
($18.5M in 2022) SUPPLIER SPEND DIVERSE SUPPLIERS
(2% in 2022) (57 in 2022)WORKFORCE EMPOWERMENT 13
Benchmarking our global workforce"
2023-cme-group-esg-report.txt,"022)WORKFORCE EMPOWERMENT 13
Benchmarking our global workforce
TOTAL EMPLOYEES U.S. ETHNICITY 2023 2022 2021
American Indian or Native Alaskan 0.1% 0.1% 0.1%
Asian 25.1% 23.7% 22.8%
3,565 3,460 3,480
Black or African American 5.5% 5.9% 6.4%
Message From Hispanic or Latino 6.4% 6.3% 6.2%
Our Chairman
& Chief Executive Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
2023 2022 2021
Officer
Two or More Races 1.7% 1.6% 1.5%
White 52.9% 54.7% 55.9%
About CME Group
Not Reported 8.0% 7.6% 7.0%
Workforce"
2023-cme-group-esg-report.txt,"ENT 13
Benchmarking our global workforce
TOTAL EMPLOYEES U.S. ETHNICITY 2023 2022 2021
American Indian or Native Alaskan 0.1% 0.1% 0.1%
Asian 25.1% 23.7% 22.8%
3,565 3,460 3,480
Black or African American 5.5% 5.9% 6.4%
Message From Hispanic or Latino 6.4% 6.3% 6.2%
Our Chairman
& Chief Executive Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
2023 2022 2021
Officer
Two or More Races 1.7% 1.6% 1.5%
White 52.9% 54.7% 55.9%
About CME Group
Not Reported 8.0% 7.6% 7.0%
Workforce
Empowerment
Sustainable TOTAL WORKFORCE PEOPLE MANAGERS SENIOR MANAGING DIRECTORS AND ABOVE"
2023-cme-group-esg-report.txt,"hairman
& Chief Executive Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
2023 2022 2021
Officer
Two or More Races 1.7% 1.6% 1.5%
White 52.9% 54.7% 55.9%
About CME Group
Not Reported 8.0% 7.6% 7.0%
Workforce
Empowerment
Sustainable TOTAL WORKFORCE PEOPLE MANAGERS SENIOR MANAGING DIRECTORS AND ABOVE
Solutions
32% 30% 54%
2023 2023 2023
Community
68% 70% 46%
Commitment
32% 30% 44%
2022 2022 2022
68% 70% 56%
Corporate
Stewardship
31% 29% 43%
2021 2021 2021
69% 71% 57%
Appendix
Female Male
To further enhance our transparency, we have published our Equal Employment Opportunity (EEO-1) data for the U.S. here..WORKFORCE EMPOWERMENT 14"
2023-cme-group-esg-report.txt,"ial well-being.
Examples of 2023 efforts include:
Message From
Our Chairman
& Chief Executive
Officer
Supporting inclusive family building: During 2023 Benefits Open Enrollment,
we announced a new inclusive family building benefit in the U.S. for the 2024
About CME Group
plan year. Through this unique program, employees can receive medical
benefits related to infertility in a holistic manner with access to state-of-the-
art medical testing and without annual limits on medications. Additionally,
Workforce"
2023-cme-group-esg-report.txt,"eive medical
benefits related to infertility in a holistic manner with access to state-of-the-
art medical testing and without annual limits on medications. Additionally,
Workforce
Empowerment we added surrogacy coverage for the first time and enhanced our adoption
and parental leave benefits. Our ERGs are instrumental in helping us enhance the
Sustainable
employee experience and improve our hiring, retention
Solutions
Providing access to mental well-being benefits: We continued our partnership
and workforce development. For example, after"
2023-cme-group-esg-report.txt,"er to
Appendix
Championing young girls’ mental health: As part of the programming for
the diverse needs of our employees.
our fourth annual global Employee Well-being Week, we hosted a panel
discussion between local experts on the mental health challenges young girls
face, moderated by Eva Giglio, Executive Director, CME Group Foundation.
HILDA HARRIS PIELL
For more information on our efforts to support young girls’ mental health, see Community
Commitment. Chief Human Resources Officer, Chicago
For additional information on our benefits, see our Careers website.Message From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 15"
2023-cme-group-esg-report.txt,"we are
developing tools to provide greater access, price discovery and risk management in this area.
Message From
Market participants
Our Chairman
& Chief Executive In 2023, we continued to expand our sustainable products and provide new offerings:
continue to seek
Officer
solutions that help
About CME Group
better manage evolving
Experienced strong growth across our battery metals suite. Open interest
across our product complex grew 170% year-over-year. Trading volume also risks that emerge as
Workforce"
2023-cme-group-esg-report.txt,"changes in climate
Message From innovation and the transition of markets toward net zero. with and learn from other industry players
Our Chairman
& Chief Executive
In addition to the SSE, our representatives actively participate in the following working groups, committees are so crucial.
Officer
and taskforces:
About CME Group OWAIN JOHNSON
The World Federation of Exchanges’ Sustainability Working Group and its ESG Definitions Managing Director, Research and Product Development, London
Subgroup
Workforce"
2023-cme-group-esg-report.txt,"h Google Cloud in leveraging cloud and cloud-
Message From awards totaling nearly $200,000. based analytics in ways that benefit our clients.
Our Chairman
& Chief Executive
Some examples of key activities in 2023 include:
Officer
84
About CME Group
Historical Market Data Access: We enabled clients to access our market data from 2014 to the present day via Google
NEW PATENTS
Analytics Hub. This allows them to efficiently query and share data between teams in a reliable and cost-efficient manner.
Workforce in 2023 (75 in the U.S. and 9"
2023-cme-group-esg-report.txt,"for and respond to climate events that
Our Chairman 120,000
could impact our markets or our company.
& Chief Executive
Officer 100,000 91,479
We continue to track and manage our energy usage, implementing a software tool 143,120
80,000
to more efficiently track our emissions data and other key metrics, while also better
About CME Group
identifying opportunities for future emissions reduction efforts. 60,000
80,753
40,000
Our year-over-year inventories inform our emissions reduction strategy and
Workforce"
2023-cme-group-esg-report.txt,"reduced by some margin.
AppendixSUSTAINABLE SOLUTIONS 20
2023 SCOPE 3 EMISSIONS (MARKET-BASED) ELECTRICITY CONSUMPTION BY SCOPE5 (MWh)
Scope 3 emissions are the result of activities from assets CME Group
50,000,000 47,115
does not own or control, but indirectly impact our value chain.
Message From 45,000,000
Our Chairman
40,000,000
& Chief Executive
Officer 2% 35,000,000
1%
1%
3% 30,000,000 27,510
4% 0%
About CME Group 25,000,000 46,419
Purchased Goods 20,000,000
and Services
15,000,000
26,120
Workforce"
2023-cme-group-esg-report.txt,"ssets
Commitment
5 Scope 1 includes natural gas and diesel; Scope 2 includes purchased electricity.
Corporate
Stewardship
Appendix
FACILITIES
We carefully manage our environmental impact
OF OUR OCCUPIED OFFICE OF OUR OCCUPIED OFFICE SPACE HAS
in owned spaces and work with site owners to 79% SPACE IN BUILDINGS HAS 84% COMPOSTING PROGRAMS, IN ADDITION
LEED, BREEAM OR OTHER TO OUR ONGOING RECYCLING EFFORTS
manage and reduce our environmental impact in
SIMILAR GREEN CREDENTIALS ACROSS OUR LOCATIONS
leased locations.Message From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 21"
2023-cme-group-esg-report.txt,"Group Tour Expanded the Futures Fundamentals
Contributed nearly $240,000 in matching
learning initiative with new digital lessons
Championship.
gifts to charities around the world
and the launch of a trading simulator
platform
IN THIS SECTION
$8M $745K $240K 428
› CME Group Foundation
› Corporate Giving IN TOTAL GIVING IN TOTAL IN MATCHING GIFTS PAID DAYS OFF
SCHOLARSHIPS utilized by employees for
› Markets Education
volunteeringCOMMUNITY COMMITMENT 22
COMMUNITY COMMITMENT
CME Group Foundation
The CME Group Foundation aims to contribute to the workforce of the future by equipping"
2023-cme-group-esg-report.txt,"gCOMMUNITY COMMITMENT 22
COMMUNITY COMMITMENT
CME Group Foundation
The CME Group Foundation aims to contribute to the workforce of the future by equipping
students with the skills and support needed to meet tomorrow’s global challenges.
Message From
Our Chairman
& Chief Executive Specifically, the CME Group Foundation is focused on the following priorities:
Officer
About CME Group
Helping students from low-income backgrounds succeed in college and their
careers.
2023 CME GROUP FOUNDATION GRANTS
Workforce"
2023-cme-group-esg-report.txt,"ing on Womanhood, a Supporting student success
Officer Bridging Academic and
Carole culturally responsive, trauma- Hope coaches in high schools with
Social Emotional Supports in Youth $150,000
Robertson $500,000 informed counseling and clinical Chicago the process of preparing for
$200,000 Kindergarten initiative and Guidance
About CME Group Center for the development of innovative mentoring program for girls and postsecondary success
Learning young women
program models
Providing individualized
Workforce Computer academic, personal, financial"
2023-cme-group-esg-report.txt,"ng women impacted by trauma and
like a special reward for
Message From violence in Chicago. This new initiative aims
Our Chairman
& Chief Executive to reduce the impact of adverse childhood my hard work and efforts,
Officer
experiences by expanding the reach of
but it also feels like a
mentors and mental health service providers
reminder...that even
About CME Group to young women and girls, promoting
innovation in trauma responsiveness and though women like
social-emotional learning and driving
Workforce me are still highly"
2023-cme-group-esg-report.txt,"the Scholars Program expanding to 33 for
Polished Pebbles
the 2023-24 academic year.
Union League Boys and Girls Club
Participating scholars also receive access to fellowship and internship opportunities and are encouraged to apply for full-time jobs at
Youth Guidance
CME Group upon graduation. We are pleased to count several Foundation Scholar alumni among our colleagues.COMMUNITY COMMITMENT 25
Corporate Giving
Our Corporate Giving Program is multifaceted and expands the reach of our community
efforts by empowering our workforce to contribute to programs and causes that are"
2023-cme-group-esg-report.txt,"hat it means to offer a rich In addition to our Matching Gift Program, and direct support of
Officer
employee experience includes providing each of our 11 ERGs is allocated $5,000
CME Group employees
our people with opportunities to give annually to donate to eligible nonprofit
About CME Group back to their communities – both organizations that align with their interests. and the causes that are
monetarily and through volunteering. Select recipient organizations from 2023
important to them. The
Workforce Our Matching Gift Program matches included:"
2023-cme-group-esg-report.txt,"at benefit
those in need worldwide. Below are some examples of how our global colleagues supported
their local communities throughout 2023:
Bangalore: Continued advancing our relationship with Akshaya Patra
Foundation, a group that strives to eliminate classroom hunger by providing
fresh and nutritious lunches.
Message From
Our Chairman
& Chief Executive
Officer
Belfast: Partnered with Simon Community to support people experiencing or
About CME Group
at risk of homelessness in Northern Ireland.
Workforce"
2023-cme-group-esg-report.txt,"company-sponsored initiatives include:
Message From
The Chicago Star Scholars Program, which helps make attaining a bachelor's
Our Chairman
& Chief Executive degree more affordable by awarding high-achieving students from Chicago
Officer
City Colleges with scholarships to help them continue their education at a
four-year college or university. In 2023, 32 Star Scholars received the CME
About CME Group Group Star Partnership Mayoral Award, which provides $5,000 over two years
to each recipient.
Workforce"
2023-cme-group-esg-report.txt,"through 2025. Beginning in 2024, the
Tour Championship will offer an enhanced total purse of $11 million. In addition, the winner will take home a record $4 million first-place prize – the largest
About CME Group
single prize in women's sports. Moreover, every competitor who qualifies will be awarded at least $55,000, which is a first for a women's tournament.
We are proud to continue our steadfast support for women in business and sports, at the same time we honor St. Jude for their invaluable
Workforce"
2023-cme-group-esg-report.txt,"rs and insights on by CME Group alongside industry partners to provide web-based
market trends, we are empowering traders and others interested in interactive tools and content for derivatives education. Designed to STUDENTS
About CME Group
learning about the futures and options markets to better navigate simplify and explain complex market topics, Futures Fundamentals reached to date
and excel in the dynamic trading landscape. aims to make financial education an engaging experience for anyone,
Workforce"
2023-cme-group-esg-report.txt,"ding simulator platform that
ACTIVITIES
enables private trading challenges for up to 500 participants. Participants are
DOWNLOADED
now able to trade on real-time data as well as access products beyond the
by educators
existing CME Group suite. In September 2023, we supported a four-day pilot
trading challenge with Future Fundamentals, which included participants across
CME Group, the Futures Industry Association, the Institute of Financial Markets
Learn more at
and National Futures Association.
futuresfundamentals.org.Message From Our Chairman & Chief Executive Officer | About CME Group | Workforce Empowerment | Sustainable Solutions | Community Commitment | Corporate Stewardship | Appendix | 30"
2023-cme-group-esg-report.txt,"including
& Chief Executive
programs, and evolve existing ones, to make CME Group a better company. By aligning our
Officer the Global Information Security Program.
governance approach with best practices, our company strengthens board and management
accountability, promotes long-term shareholder value and sustains continued success.
About CME Group
Positioning CME Group to deliver long-term revenue growth by strengthening
client engagement and delivering effective risk management solutions and
Workforce innovative products and services."
2023-cme-group-esg-report.txt,"he company based on all business needs.
In 2023, we welcomed Kathryn Benesh and Harold Ford Jr. to our Board, bringing gender and racial diversity, as well as relevant and extensive experience across industries.
Message From
Our Chairman OUR BOARD AT A GLANCE BOARD QUALIFICATIONS AND EXPERIENCES
& Chief Executive
I was thrilled to join
Officer
the CME Group Board
11
About CME Group and collaborate with
WOMEN (EQUITY
29% 100% ETHICS AND 39% CORPORATE
DIRECTORS) such esteemed
INTEGRITY GOVERNANCE
Workforce GENDER"
2023-cme-group-esg-report.txt,"the full Board regarding matters reviewed by their house, compliance, financial, operational, reputational and
Senior management is responsible for managing day- respective committees at the Board’s regular business strategic and commercial. The profile of this risk universe
About CME Group
to-day risk and regularly engaging with our Board. The meetings. and our associated responses are reported to the Board and
Board holds management accountable for maintaining an senior management quarterly.
Workforce"
2023-cme-group-esg-report.txt,"to critical processes and activities – and to
• Clearing House • Credit, Market
Our Chairman
Political, Legislative
& Chief Executive Operations and Industry optimize for maximum achievable benefits from that relationship or engagement.
Officer and Regulatory
• Legal Managing succession planning
About CME Group
Providing effective continuity of leadership is vital to the success of our company and central
to our long-term strategy. The entire Board is responsible for succession planning for the
Workforce OPERATIONAL REPUTATIONAL"
2023-cme-group-esg-report.txt,"es understand the behaviors expected of them to uphold the integrity of our
Officer regular duties and stay
operations. Following the survey, we took the opportunity to communicate the results to our employees and to provide them with
enhanced transparency with respect to the program’s allegation intake and investigation and disciplinary processes in support of
focused on leading with
About CME Group our speak up culture.
conviction and integrity
Upholding a culture of integrity
and have earned
Workforce"
2023-cme-group-esg-report.txt,"and in line with our core values, as well as to uphold the other policies that are
part of our Compliance and Ethics Program. Throughout 2023, we sought to provide effective
communications and risk-based training on various aspects of our Compliance and Ethics
Program related to:
Message From
Our Chairman
Awareness of our Information Security Program, including how to identify
& Chief Executive
Officer phishing attempts
About CME Group
How to protect our confidential and proprietary information
Workforce"
2023-cme-group-esg-report.txt,"s and results of compliance and practices. Moreover, our Data Privacy team plays a
Officer
third-party evaluations. The CISO reports to the Chief vital role in advising on the responsible collection
Information Officer, a member of the CME Group and use of personal data. Our Privacy Program
About CME Group
Management Team, and provides quarterly reports undergoes periodic internal audits and external
to and meets annually in a private session with the assessments to ensure its effectiveness and
Workforce"
2023-cme-group-esg-report.txt,"ur Government Relations team operates on multiple fronts, engaging policymakers at federal, Association (ISDA)
About CME Group state, city, regulatory and international levels, including Congress, the Commodity Futures Clearing House and Exchange Forum
Trading Commission (CFTC), the Securities and Exchange Commission (SEC), Treasury, the Managed Funds Association (MFA)
Federal Reserve, the Illinois General Assembly and multiple international regulatory bodies and Commodity Markets Council (CMC)
Workforce"
2023-cme-group-esg-report.txt,"e long term. Use of SASB standards is voluntary. The following disclosure
is based on SASB’s “Security and Commodity Exchanges” industry-specific standard. While not all disclosure topics within the “Security & Commodity Exchanges” industry-specific standard may be
relevant to CME Group’s “sustainability” (as defined by SASB), in the interest of transparency, the below table provides requested information on a best efforts basis for 2023.
About CME Group
SASB Code Description CME Group Response
Workforce"
2023-cme-group-esg-report.txt,"nd the importance of developing both innovative and sustainable business solutions.
About CME Group publicly disclose
environmental, social Our ESG-related contracts and services are designed to help global customers manage price risk in today’s energy, metals and agricultural ecosystems as they develop new
and governance technologies and other initiatives to meet market movement towards alternative sources of cleaner energy and sustainable agriculture. We are continuously in conversations with
Workforce"
2023-cme-group-esg-report.txt,"nflicts of Interest Policy on an annual basis. CME Group Board
About CME Group members are subject to the Board of Directors Code of Ethics, which requires that Board members avoid any circumstance that creates or appears to create a conflict between a
Board member’s own interests and the interests of the company. The Nominating and Governance Committee is responsible for compliance with the Board of Directors Code of Ethics.
Board members must certify to this Code of Ethics on an annual basis.
Workforce"
2023-cme-group-esg-report.txt,"Response
Managing Business Continuity & Technology Risks
FN-EX-550a.1 (1) Number of During 2023, CME Group’s markets did not have any significant market disruptions.
significant market
disruptions and
(2) duration of
Message From
downtime
Our Chairman
& Chief Executive
Officer FN-EX-550a.2 (1) Number of No material data breaches that required reporting under data privacy laws occurred during 2023.
data breaches,
(2) percentage
About CME Group
involving personally
identifiable
information (PII),
Workforce"
2023-cme-group-esg-report.txt,"al Information Security team conducts analysis and aims to prevent, detect and respond to systemic events that
About CME Group might threaten our company, industry or the economy.
The Information Security Program is led by CME Group’s Chief Information Security Officer (CISO) who reports to our Chief Information Officer, a member of our Management Team.
The program is overseen by the Risk Committee of the CME Group Board of Directors and the CISO has an indirect reporting line to the committee.
Workforce"
2023-cme-group-esg-report.txt,"on Governance/Privacy and OpRes teams, allowing our contracts
About CME Group and vendor renewals to align to our risk management posture, provide adequate assurance and meet regulatory requirements. The OpRes team works with TPRM to help provide
assurances that third-party vendors impacting our critical operations have business continuity and disaster recovery plans to minimize service interruptions and control issues,
whenever unforeseen disturbances arise involving a third party’s operation.
Workforce"
2023-cme-group-esg-report.txt,"g activity in its futures contracts by volume. Volume is calculated by counting the number of contracts that have been bought and sold over a given time.
product or asset class The following summarizes average daily contract volume for 2023.
Message From Aggregate Average Daily Volume: 24,394
Our Chairman
& Chief Executive Average Daily Volume by Product Line:
Officer
Interest rates: 12,517
Equity indexes: 6,698
Foreign exchange: 954
About CME Group
Agricultural commodities: 1,508
Energy: 2,118
Workforce Metals: 599"
2023-cme-group-esg-report.txt,"ns by Scope and Category7
Emissions % of Total Emissions % of Total
Scope Units Total Usage
(MT COe) – Location (Scopes 1 + 2 + 3) (MT COe) – Market (Scopes 1 + 2 + 3)
2 2
Message From
Our Chairman 1 Direct Emissions from Owned or Controlled Sources 309 0.3% 309 0.3%
& Chief Executive
Officer 1 Natural Gas MWh 669 121 0.1% 121 0.1%
1 Diesel MWh 721 181 0.2% 181 0.2%
About CME Group
1 Mobile Combustion miles 33,382 7 0.0% 7 0.0%
2 Indirect Emissions from Purchased Energy 10,448 8.7% 10,417 11.4%
Workforce"
2023-sustainability-report.txt,"2023
Sustainability
Report
Fifth Third Bancorp2023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Contents
Introduction Delivering our Governance
Commitment to Employees
A Message from our Leaders 3 Corporate Governance 105
A Message from the Board of Directors 5 Business Ethics 109
Strategic Priorities 60
About This Report 7 Public Policy and Government Relations 111
Employee Voices Matter 61"
2023-sustainability-report.txt,"Fifth Third Bancorp2023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Contents
Introduction Delivering our Governance
Commitment to Employees
A Message from our Leaders 3 Corporate Governance 105
A Message from the Board of Directors 5 Business Ethics 109
Strategic Priorities 60
About This Report 7 Public Policy and Government Relations 111
Employee Voices Matter 61
Our Approach to Sustainability 9 Enterprise Risk Management 112
Empowering Employee Development 62"
2023-sustainability-report.txt,"Talent Management Process 67
Compensation 68 Appendix
Strengthening
Caring for Employees 69
our Communities
Keeping the Customer
Accelerating Racial Equality, Equity and Inclusion 23
Community Impact 28 at the Center
Financial Education, Access and Stability 36
Business Segments 73
Corporate Citizenship and Philanthropy 43
Innovative and Inclusive Products 75
Responsible Banking 81
Promoting
Inclusion and Diversity
Addressing Climate Change
Fostering an Inclusive Culture 49
Climate Strategy 86
Employee Demographics 50"
2023-sustainability-report.txt,"program. As a Fifth Third also supports our communities
delivered a total of $3.7 billion in support of
we’re a relational company, which means our result, we also extended the technical through direct investment of time and
our aspirations under AREEI.
success begins and ends with personal assistance aspect of the program to a fourth resources. In 2023, our total philanthropic
32023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
We also continued our leadership in supplier In our 2023 Employee Viewpoints survey, extra time to make a deposit and avoid are facing so that we may continue to be a"
2023-sustainability-report.txt,"more than three years. Credit Programs to increase homeownership include reducing our location based scope 1
named “Best of the Decade” for our supplier and access for low-income borrowers. In early and 2 GHG emissions by 75% and continuing
diversity program by Minority and Keeping the 2024, we launched our own SPCP that is to purchase 100% renewable power. Recent
achievements include expansion of our
Multicultural Business News. Customer at the Center helping to open the doors of new homes for
employee and customer electric vehicle"
2023-sustainability-report.txt,"oduct’s Early Pay second largest residential solar lender in the
collaborate, create and innovate to make a feature, which enables customers to get United States, providing over $6 billion in
difference in the lives of others. access to their paychecks up to two days renewable energy and energy-efficient
lending toward our goal.
early, was expanded in 2023 to include tax
Last year, we invested to strengthen our
refunds. The feature enabled access to tax Recognizing climate change as an emerging
employee experience and value proposition."
2023-sustainability-report.txt,"cedures and controls to ensure they “Fifth Third Bank is committed to “Protecting our customers’ financial and
meet our standard of excellence. This generating and maintaining sustainable information assets is a top priority at
“We are committed to delivering on our
oversight is vital to foster value for all stakeholders. Through a Fifth Third. We are focused on
commitments to our workforce,
accountability and transparency, a key collaborative, One Bank approach, we continuous innovation in the
including strengthening the employee"
2023-sustainability-report.txt,"ce. This generating and maintaining sustainable information assets is a top priority at
“We are committed to delivering on our
oversight is vital to foster value for all stakeholders. Through a Fifth Third. We are focused on
commitments to our workforce,
accountability and transparency, a key collaborative, One Bank approach, we continuous innovation in the
including strengthening the employee
part of commitment to leadership in consistently validate the soundness and assessment, monitoring and
experience and employee value"
2023-sustainability-report.txt,"ey, executive leadership
communications, learning programs,
business resource groups and inclusion
councils, performance and development
initiatives, and corporate intranet.
Employees
Third-party management Environmental sustainability Inclusion & diversity
National Community Advisory Forum,
periodic Community Needs Assessments,
financial education and outreach programs,
philanthropic investments, civic
memberships, volunteerism and nonprofit
Communities
board engagement, and corporate website.
Public policy & Enterprise risk management & Employee engagement"
2023-sustainability-report.txt,"Diversity Percentage2 % 44% 36% 40% 105
Women in workforce % 57% 58% 59% 50
Pay Equity for women (adjusted) % 99% 99% 99% 100% 68
Persons of color in workforce % 29% 28% 27% 50
Promoting Inclusion
Pay equity for persons of color (adjusted) % 100% 100% 99% 100% 68
and Diversity
Supplier diversity % of addressable spending % 11.2% 11.0% 8.6% 10% by 2025 56-57
Employees enrolled in at least one BRG or inclusion council # 5,192 4,518 3,909 54
Full-time equivalent employees # 18,724 19,319 19,112 14
Employee Viewpoints Survey - Participation % 80% 77% 72% 61"
2023-sustainability-report.txt,"s of color in workforce % 29% 28% 27% 50
Promoting Inclusion
Pay equity for persons of color (adjusted) % 100% 100% 99% 100% 68
and Diversity
Supplier diversity % of addressable spending % 11.2% 11.0% 8.6% 10% by 2025 56-57
Employees enrolled in at least one BRG or inclusion council # 5,192 4,518 3,909 54
Full-time equivalent employees # 18,724 19,319 19,112 14
Employee Viewpoints Survey - Participation % 80% 77% 72% 61
401(k) participation % 81% 80% 84% 68
Minimum wage $ per hour $20 $20 $18
#
Delivering our Employee training hours (thousands) 780 776 765 62-64"
2023-sustainability-report.txt,"of color (adjusted) % 100% 100% 99% 100% 68
and Diversity
Supplier diversity % of addressable spending % 11.2% 11.0% 8.6% 10% by 2025 56-57
Employees enrolled in at least one BRG or inclusion council # 5,192 4,518 3,909 54
Full-time equivalent employees # 18,724 19,319 19,112 14
Employee Viewpoints Survey - Participation % 80% 77% 72% 61
401(k) participation % 81% 80% 84% 68
Minimum wage $ per hour $20 $20 $18
#
Delivering our Employee training hours (thousands) 780 776 765 62-64
Commitment to
Employees Employee turnover % 16.9% 21% 21% 66"
2023-sustainability-report.txt,"ce strong and diversified fee to Southeast markets.
• Adapt quickly to regulatory changes. total revenue mix. • Leverage our footprint to capitalize on
• Maintain expense discipline through lean resurgence of domestic manufacturing
process automation and end-to-end and infrastructure spending.
value stream efforts. • Tech-enabled product innovation.
Continuing to focus on these strategic principles will enable Fifth Third to continue to deliver sustainable value for our stakeholders, including:
Consistent and strong financial Consistent customer acquisition Consistent employee engagement, Consistent strengthening of the"
2023-sustainability-report.txt,"2023. Fortune World’s Most Admired Companies, 2024.
2024, 2023, 2022, 2021, 2019.
The World’s Best Companies 2023 ranking by TIME Fifth Third earned inclusion in this ranking of the world’s
Fifth Third Bank was recognized by the Ethisphere and Statista Inc. identified the top performing most admired companies based on investment value,
Institute, a global leader in defining and advancing the companies across the globe. Organizations were quality of management and products, social responsibility
standards of ethical business practices. Fifth Third was chosen based on three primary dimensions: employee and ability to attract talent."
2023-sustainability-report.txt,"m also has been extended another year to ensure
program maturity and sustainability.
From 2021-2023,
the Bank delivered
$ $ $ $
2.8 B 776 M 69.3 M 40 M
$
3.7
Loan Capital Community Financial Philanthropic
BILLION
Investments Accessibility Efforts Efforts
toward the AREEI goal
Goal: $2.2 Billion Goal: $500 Million Goal: $60 Million Goal: $40 Million
232023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employees Listening Strategy
In 2023, Fifth Third completed its three-year employee"
2023-sustainability-report.txt,"ILLION
Investments Accessibility Efforts Efforts
toward the AREEI goal
Goal: $2.2 Billion Goal: $500 Million Goal: $60 Million Goal: $40 Million
232023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employees Listening Strategy
In 2023, Fifth Third completed its three-year employee
“Our broad-based AREEI initiative
For employees, Fifth Third’s efforts under AREEI focused listening strategy. In partnership with a leading marketing
has benefited all of Fifth Third on improving the recruiting process, employee career strategy and research organization, we facilitated 53 listening"
2023-sustainability-report.txt,"3 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employees Listening Strategy
In 2023, Fifth Third completed its three-year employee
“Our broad-based AREEI initiative
For employees, Fifth Third’s efforts under AREEI focused listening strategy. In partnership with a leading marketing
has benefited all of Fifth Third on improving the recruiting process, employee career strategy and research organization, we facilitated 53 listening
stakeholders in an extremely mobility and the employee experience to increase sessions with over 600 participants from Oct 2021 to Oct 2023."
2023-sustainability-report.txt,"rspectives.
and relate to each other and have Recruiting
Insights and sentiments gleaned from the sessions informed
more opportunity in our own Fifth Third continued to make meaningful enhancements our path forward.
workplace. There is more access to to our recruiting process, including: Additionally, a root cause analysis was conducted to identify
• Expanded inclusion and diversity recruiting strategies the key attrition drivers of employees voluntarily exiting and
economic opportunity for our
beyond HBCUs to broaden talent pools for campus hires. provided insights on how to reduce voluntary employee attrition."
2023-sustainability-report.txt,"ir in Orlando and connected with a job coach
achieve economic independence by providing a network of who not only helped him optimize his LinkedIn profile and
support, professional attire and the development tools to help resume, but who also helped him align his faith, work skills and
women thrive in work and in life.” personal strengths with a company that shared his values.
Fifth Third’s involvement includes volunteerism and outreach “She helped me to see who I am and where I can truly serve
as well as board membership. Employee volunteers help train people,” Silas said of his coach. While visiting a local thrift store"
2023-sustainability-report.txt,"and crises strike. We provide financial support and
corporate giving dollars,” said Fifth Third encourages philanthropy and donations by our
also deploy our resources into the communities where we can
Melissa Blount-Garner, senior vice employees in support of organizations and causes they
help—whether that be with basic and immediate needs of food,
president & Head, CRO Strategic support. Through the Fifth Third Foundation, we are able to
water and shelter or more long-term needs like accessing
support employee giving to institutes of higher learning"
2023-sustainability-report.txt,"um total per
The Fifth Third Chicagoland Foundation serves the 2023. Our President & CEO Tim Spence earned The Medical donor of $1,500 in a calendar year. The matching donation
philanthropic needs of the Chicago area in housing and Mutual Pillar Award for Community Service as published in the program enables Fifth Third to increase the value of
employees’ personal donations. In 2023, the Fifth Third
economic development, education, health and human services philanthropy Issue of Smart Business.
Foundation matched employee gifts totaling over $107,600."
2023-sustainability-report.txt,"Fifth Third has long believed that fostering an inclusive experience for employees,
suppliers, customers and communities is essential to our broader purpose of
creating an inclusive future with equal access and opportunity to thrive for all.
We strive to uphold the highest principles of diversity, equity, inclusion and
belonging in our relationships with others and to create products and experiences
that reflect the diversity of those we serve.
IN THIS SECTION
Fostering an Inclusive Culture 49
Employee Demographics 50"
2023-sustainability-report.txt,"ing an Inclusive Culture 49
Employee Demographics 50
Multicultural Recruitment Strategy 51
Empowering Individuals with Disabilities 52
Connecting and Serving 53
Supplier Diversity 56
482023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Fostering an Inclusive Culture
Fifth Third has been recognized as a
Our accolades include:
leader in building an engaging, inclusive
• A 100% rating on the Corporate Equality Index administered by
employee experience, a strong supplier"
2023-sustainability-report.txt,"mean that individual employment decisions or
contracts with third parties may ever be made on the basis of
race, gender, ethnicity, nor any immutable characteristic, nor
may they be considered as a positive or negative factor in any
decision. The purpose of our goals and aspirations is to
ensure equal employment opportunity for applicants,
employees, and third party suppliers.
492023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Demographics"
2023-sustainability-report.txt,"ms for
personal story, including his military service,
individuals with and without intellectual and
and also spoke about his focus on staying in
developmental disabilities.
the moment and enjoying every day.
532023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Inclusion Councils and
Business Resource Groups
Fifth Third’s BRGs
Our business resource groups connect thousands of
employees who activate the three pillars of our BRGs:
employee development, community involvement and"
2023-sustainability-report.txt,"Governance Appendix
Inclusion Councils and
Business Resource Groups
Fifth Third’s BRGs
Our business resource groups connect thousands of
employees who activate the three pillars of our BRGs:
employee development, community involvement and
business innovation. The pillars are in place to advance
networking opportunities, personal growth and
development, celebrate cultural moments, and offer an
outlet for community outreach and volunteerism. They
also provide a forum to celebrate and embrace each
employee’s individuality and our collective diversity."
2023-sustainability-report.txt,"r. In Cincinnati, sergeant in the Ohio Army National
the Fifth Third Museum also featured special exhibits on Guard, serves as the executive advocate
Veterans Day and Memorial Day to honor employees past for the Military BRG in Central Ohio and
and present who have served their country. The museum was part of the team that planned the
along with the Cincinnati Military BRG also supports Bank-wide event.
Operation Remembrance by visiting 17 Greater Cincinnati “The event is a great opportunity to
cemeteries to mark the graves of 46 employee veterans with bring awareness to a hidden treasure in"
2023-sustainability-report.txt,"proud history of military service, both in peace
banking services on Veterans Day. The number is now and wartime.”
available 24 hours a day year-round for active military and Fifth Third has deepened its relationship with the NVMM to
veterans to ask questions about their accounts. A specialized help it achieve its vision to honor, connect, inspire, educate
team supports this service. and create national networks that empower and provide Among those at the National Veterans Memorial and Museum’s
In 2023, as we worked to establish the new social service opportunities for veterans. Veteran Employee Resource Group Summit were, from left, George"
2023-sustainability-report.txt,"e national networks that empower and provide Among those at the National Veterans Memorial and Museum’s
In 2023, as we worked to establish the new social service opportunities for veterans. Veteran Employee Resource Group Summit were, from left, George
offerings available on our eBus, Fifth Third ensured that In September 2023, the NVMM hosted its second annual Leugers, Business Banking market executive and Central Ohio Military
BRG executive advocate; Krista Rackley, Enterprise Risk Management
military resources would be part of our platform. The Veteran Employee Resource Group Summit, emphasizing"
2023-sustainability-report.txt,"Delivering our Commitment to Employees
The talent, passion and commitment of our employees have always been at the
center of our success. Who they are and how they perform is what helps us build
great relationships with our customers and the communities we serve. Their
individual and collective contributions, meaningful connections, innovative ideas,
inclusion, collaboration and commitment drive our ambition to be the One Bank
people most value and trust.
IN THIS SECTION
Strategic Priorities 60
Employee Voices Matter 61"
2023-sustainability-report.txt,"to Employees
The talent, passion and commitment of our employees have always been at the
center of our success. Who they are and how they perform is what helps us build
great relationships with our customers and the communities we serve. Their
individual and collective contributions, meaningful connections, innovative ideas,
inclusion, collaboration and commitment drive our ambition to be the One Bank
people most value and trust.
IN THIS SECTION
Strategic Priorities 60
Employee Voices Matter 61
Empowering Employee 62"
2023-sustainability-report.txt,"and commitment drive our ambition to be the One Bank
people most value and trust.
IN THIS SECTION
Strategic Priorities 60
Employee Voices Matter 61
Empowering Employee 62
Development
Recruiting the Best and Brightest 65
Performance Management 66
Talent Management Process 67
Compensation 68
Caring for Employees 69
592023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Strategic Priorities
Accolades for Human
Capital and Fifth Third
Keeping Our Employees at the Center “A vibrant employee experience is vital Fifth Third was named a National Top"
2023-sustainability-report.txt,"nt employee experience is vital Fifth Third was named a National Top
Workplaces USA by Energage in 2023 for
Our people are the driving force behind our ability to to our success. In 2023, we worked to the third year in a row. The Bank participates
deliver innovative and sustainable long-term value to all foster a culture of connection, annually in Energage’s Top Workplaces
we serve. We have made significant investments in program. Additional recognition included:
belonging and performance where
strengthening our employee experience and employee • Industry Award for Financial Services."
2023-sustainability-report.txt,"ank participates
deliver innovative and sustainable long-term value to all foster a culture of connection, annually in Energage’s Top Workplaces
we serve. We have made significant investments in program. Additional recognition included:
belonging and performance where
strengthening our employee experience and employee • Industry Award for Financial Services.
value proposition, deepening our focus on career mobility employees feel valued. Our culture has
• Culture Award for Innovation, Work-Life
and development opportunities, and continuing to offer long been a differentiator and our Flexibility, Leadership, Employee Well-being,"
2023-sustainability-report.txt,"investments in program. Additional recognition included:
belonging and performance where
strengthening our employee experience and employee • Industry Award for Financial Services.
value proposition, deepening our focus on career mobility employees feel valued. Our culture has
• Culture Award for Innovation, Work-Life
and development opportunities, and continuing to offer long been a differentiator and our Flexibility, Leadership, Employee Well-being,
competitive pay and comprehensive benefits.
Human Capital team is committed to Employee Appreciation and Professional"
2023-sustainability-report.txt,"egic priorities, processes employees can continue to develop, markets: Charlotte Metro; Chicago; Northeast Ohio;
and business controls are guided by our Core Values grow and thrive.” Toledo Metro; Greater Columbus; Michigan; Greater
and our ambition to be the One Bank people most value Cincinnati/Northern Kentucky; Central Indiana;
and trust. Greater Louisville; Central Florida, Metro Jacksonville
Our strategic priorities to attract and retain top talent, to and South Florida; Middle Tennessee.
amplify employee and Fifth Third’s success and to foster Brandon Hall Awards"
2023-sustainability-report.txt,"Central Florida, Metro Jacksonville
Our strategic priorities to attract and retain top talent, to and South Florida; Middle Tennessee.
amplify employee and Fifth Third’s success and to foster Brandon Hall Awards
an inclusive and equitable culture enabled us to deliver Silver Award for Critical Conversations as Best Unique
exceptional experiences for employees and customers, or Innovative Leadership Development Program.
and to help make Fifth Third an employer of choice.
Degreed Visionary Awards
In 2023, we activated our employee value proposition and"
2023-sustainability-report.txt,"y Campaign.
talent, capabilities and organizational structure to support
• Gold Award: Mental Well-being Resources Campaign.
business needs now and in the future. Human Capital
plans are developed in conjunction with line of business • Honorable mention: Learning & Development
and division leaders. Continuous Learner Campaign.
In 2023, Human Capital continued to support the Bank’s • Honorable mention: A Grammy Winner Among Us.
platform modernization strategy that will deliver new
Wellness Award
customer and employee technology platforms with speed"
2023-sustainability-report.txt,"continued to support the Bank’s • Honorable mention: A Grammy Winner Among Us.
platform modernization strategy that will deliver new
Wellness Award
customer and employee technology platforms with speed
National Best and Brightest in Wellness for the second
and scale. Over 500 employees are spending at least 30%
consecutive year.
of their time supporting the multiyear strategy.
602023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Voices Matter"
2023-sustainability-report.txt,"ammy Winner Among Us.
platform modernization strategy that will deliver new
Wellness Award
customer and employee technology platforms with speed
National Best and Brightest in Wellness for the second
and scale. Over 500 employees are spending at least 30%
consecutive year.
of their time supporting the multiyear strategy.
602023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Voices Matter
New Methodology Provides Holistic
View of Full Employee Experience"
2023-sustainability-report.txt,"and scale. Over 500 employees are spending at least 30%
consecutive year.
of their time supporting the multiyear strategy.
602023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Voices Matter
New Methodology Provides Holistic
View of Full Employee Experience
Listening, engaging and connecting with employees improves their experience and
strengthens our organization. Fifth Third’s continuous listening strategy is grounded
in this philosophy and is foundational to the employee experience and our culture."
2023-sustainability-report.txt,"time supporting the multiyear strategy.
602023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Voices Matter
New Methodology Provides Holistic
View of Full Employee Experience
Listening, engaging and connecting with employees improves their experience and
strengthens our organization. Fifth Third’s continuous listening strategy is grounded
in this philosophy and is foundational to the employee experience and our culture.
Our approach to collecting, measuring and responding to employee feedback ensures"
2023-sustainability-report.txt,"roduction Communities Inclusion Employees Customer Climate Governance Appendix
Employee Voices Matter
New Methodology Provides Holistic
View of Full Employee Experience
Listening, engaging and connecting with employees improves their experience and
strengthens our organization. Fifth Third’s continuous listening strategy is grounded
in this philosophy and is foundational to the employee experience and our culture.
Our approach to collecting, measuring and responding to employee feedback ensures
that we engage with employees at key moments in the employee lifecycle and during"
2023-sustainability-report.txt,"mproves their experience and
strengthens our organization. Fifth Third’s continuous listening strategy is grounded
in this philosophy and is foundational to the employee experience and our culture.
Our approach to collecting, measuring and responding to employee feedback ensures
that we engage with employees at key moments in the employee lifecycle and during
times of change in our business or work environment.
To further strengthen our continuous listening strategy, Fifth Third moved to a more
holistic methodology to analyze and measure the employee experience. The"
2023-sustainability-report.txt,"continuous listening strategy is grounded
in this philosophy and is foundational to the employee experience and our culture.
Our approach to collecting, measuring and responding to employee feedback ensures
that we engage with employees at key moments in the employee lifecycle and during
times of change in our business or work environment.
To further strengthen our continuous listening strategy, Fifth Third moved to a more
holistic methodology to analyze and measure the employee experience. The
methodology assesses the broader employee experience, provides more insightful"
2023-sustainability-report.txt,"l to the employee experience and our culture.
Our approach to collecting, measuring and responding to employee feedback ensures
that we engage with employees at key moments in the employee lifecycle and during
times of change in our business or work environment.
To further strengthen our continuous listening strategy, Fifth Third moved to a more
holistic methodology to analyze and measure the employee experience. The
methodology assesses the broader employee experience, provides more insightful
data and better aligns with our focus to understand the full employee experience."
2023-sustainability-report.txt,"business or work environment.
To further strengthen our continuous listening strategy, Fifth Third moved to a more
holistic methodology to analyze and measure the employee experience. The
methodology assesses the broader employee experience, provides more insightful
data and better aligns with our focus to understand the full employee experience.
The 2023 results provided new baseline measures, also referred to as Key
Performance Indicators (KPIs). Overall, results showed that three out of four
employees say they have a positive employee experience."
2023-sustainability-report.txt,"e employee experience.
Other highlights from the survey include:
• 91% of employees believe their experience at Fifth Third is either meeting or
exceeding expectations.
• Three out of four employees say they intend to stay at Fifth Third for three or
more years, citing they enjoy their work, have quality teams and colleagues, and
are optimistic about their growth.
• Employees also identified that managers are providing constructive feedback
and creating a safe space to voice ideas and opinions.
Fifth Third collects employee feedback during the onboarding process and when"
2023-sustainability-report.txt,"intend to stay at Fifth Third for three or
more years, citing they enjoy their work, have quality teams and colleagues, and
are optimistic about their growth.
• Employees also identified that managers are providing constructive feedback
and creating a safe space to voice ideas and opinions.
Fifth Third collects employee feedback during the onboarding process and when
employees exit the organization. Additional pulse surveys help us to better Employees celebrate Fifth Third's 165th anniversary.
understand employee perspectives on timely topics, to ensure two-way dialogue and"
2023-sustainability-report.txt,"rk, have quality teams and colleagues, and
are optimistic about their growth.
• Employees also identified that managers are providing constructive feedback
and creating a safe space to voice ideas and opinions.
Fifth Third collects employee feedback during the onboarding process and when
employees exit the organization. Additional pulse surveys help us to better Employees celebrate Fifth Third's 165th anniversary.
understand employee perspectives on timely topics, to ensure two-way dialogue and
to learn from employee feedback. With this rich set of data, we identify key themes"
2023-sustainability-report.txt,"g the onboarding process and when
employees exit the organization. Additional pulse surveys help us to better Employees celebrate Fifth Third's 165th anniversary.
understand employee perspectives on timely topics, to ensure two-way dialogue and
to learn from employee feedback. With this rich set of data, we identify key themes
and pull insights to continuously evolve our culture and meet employees’ changing
needs.
As we continue to sustain our commitment to ethics and integrity, an optional 10-
question employee pulse survey was conducted in December 2023. For more"
2023-sustainability-report.txt,"With this rich set of data, we identify key themes
and pull insights to continuously evolve our culture and meet employees’ changing
needs.
As we continue to sustain our commitment to ethics and integrity, an optional 10-
question employee pulse survey was conducted in December 2023. For more
information on our commitment to ethics and our accolades in this area, see
page 109.
612023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Empowering Employee Development"
2023-sustainability-report.txt,"dentify key themes
and pull insights to continuously evolve our culture and meet employees’ changing
needs.
As we continue to sustain our commitment to ethics and integrity, an optional 10-
question employee pulse survey was conducted in December 2023. For more
information on our commitment to ethics and our accolades in this area, see
page 109.
612023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Empowering Employee Development
When we invest in employee Career Mobility Developing Our People"
2023-sustainability-report.txt,"g them was a new Banking Basics course
learning and development strategy goals, cultivate their talents and enable their success by designed to help Fifth Third employees understand the
providing access to the skill-building, experiences, and tools banking industry and how their daily work adds value to our
ensures that employees have the skills
and resources that support mobility. We listened to our customers and communities. The course can be personalized
they need to build fulfilling careers
employees and launched a career mobility initiative with based on an employee’s industry expertise, including whether"
2023-sustainability-report.txt,"ach individual employees in early 2023. The augmented learning experience
for details. and encourages employees to take steps to build a career focuses on mitigating unconscious bias, strategies for allyship
and reinforcing behaviors that demonstrate an inclusive
development plan, expand their network, leverage other
organization.
learning and development tools, and refine development
goals. In July 2023, Fifth Third, for the first time, randomly
surveyed 750 employees who completed a course on
The initiative will enhance the employee experience and"
2023-sustainability-report.txt,"owing down, pausing and
reflecting before reacting.
• 93% of employees reported actively listening to
understand another’s perspective.
• 90% reported paying more attention to underrepresented
“It covered all of the banking basics that someone working for a groups and speaking up to ensure all voices are heard.
bank should understand, even if they work in IT and not a financial
center supporting customer needs. It provides a solid foundation for
talking about who we serve and for what purpose.”
Fifth Third Employee in response to Banking Basics post-course survey"
2023-sustainability-report.txt,"g for a groups and speaking up to ensure all voices are heard.
bank should understand, even if they work in IT and not a financial
center supporting customer needs. It provides a solid foundation for
talking about who we serve and for what purpose.”
Fifth Third Employee in response to Banking Basics post-course survey
622023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Compliance Training Fueling What’s Next Navigating Critical
Each year, Fifth Third requires all employees to complete Every employee has a unique journey, and we want each of Conversations for Leaders"
2023-sustainability-report.txt,"ting Harassment and Discrimination. interpersonal skills through a blend of best-in-class self-directed
• Privacy Compliance Basics. learning and interactive sessions. The sessions allow learners to
gain practical insights that foster a positive organizational
• Risk Management at 53.
climate, enhance team dynamics and inspire others through
Compliance officers and executives of each line of authentic and emotionally intelligent leadership practices.
business approve all training specific to an
employee’s role. In addition, Fifth Third requires"
2023-sustainability-report.txt,"rtunities for encourage career development. We provide assistance for
Chris Price created a comprehensive,
professionals who are new to the industry, students, and external education, through tuition reimbursement to full-
blended training program called
recent graduates. The opportunities include both direct-hire and part-time employees of up to $5,250 and $2,500,
Disputes Resolution Learning Experience
roles and six Leadership Programs. The programs are Audit, respectively, per calendar year.
that has resulted in increased employee"
2023-sustainability-report.txt,"ness and
provides employees with a starting point
function sponsors, teams researched topics like sustainable
to consider whether they want to stay
procurement, renewable energy investments, community
and develop in their current role, move to
involvement and reducing materials waste.
a similar role or explore something completely different.
From its launch in October 2023 to April 2024,
approximately 2,800 employees have used the tool. Users
have given the tool positive feedback, including one
employee stating that it’s the “best development tool she’s"
2023-sustainability-report.txt,"ssigned to
population. These partnerships provide talent cross-functional teams to develop a social
acquisition services for professional and media reel capturing their experience as an
nonprofessional positions that solve intern at Fifth Third. The reels creatively
compliance, scalability, cost, quality featured Fifth Third’s work environment,
and other recruiting challenges. amenities, and relationship-building
Additionally, in 2023, we focused on opportunities through events, mentorship, and
promoting our employee value proposition peer and client interactions."
2023-sustainability-report.txt,"3 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Performance Management
Fifth Third asks all employees to reflect on how they’re doing
today, where they want to be tomorrow and what they value
most in their work and relationships. We also encourage
employees to be intentional about the experiences, exposure
to others, education opportunities and work environment that
will increase their learning and help them achieve
their goals.
Recognizing the value and impact of employee performance is vital to maintaining a strong"
2023-sustainability-report.txt,"ent that
will increase their learning and help them achieve
their goals.
Recognizing the value and impact of employee performance is vital to maintaining a strong
culture and helps optimize both individual and collective success to balance both what and how
results are achieved.
Managers engage with their employees in regular performance and development conversations
to ensure the employees understand expectations, share the value and impact of their
contributions, and focus on their potential.
At year-end, individual performance is evaluated not just by what an employee accomplished"
2023-sustainability-report.txt,"ployees who reach their 25-year anniversary. In 2023,
62 employees achieved this milestone including (from left to right) Paula Cobb, Thomas Neltner
role in engaging in performance and development conversations and to take actions that positively
and Julie Fite.
impact their goals and overall experience.
Our philosophy is that performance conversations are distinct from development conversations
and there is greater benefit for these types of conversations to occur at different, dedicated times
throughout the year. Performance conversations are typically related to an employee’s current"
2023-sustainability-report.txt,"ccessful
recruitment of proven market talent. Twenty-one commercial
bankers (relationship managers and team leads) were
successfully added to the market in 2023. Additionally, a team
Talent Management
was established in Birmingham, Alabama and will continue to
Our formal talent management process includes an annual grow in 2024. In W&AM, 15 employees were added in our
talent review and periodic updates. We analyze strategic Private Bank.
business objectives and needs and the talent necessary to
achieve our goals. We assess employee potential, determine"
2023-sustainability-report.txt,"reation of long-
salary ranges for job postings in states where required, and for
term shareholder value.
virtual roles. 25-year Club members from the class of 2023
Our 2023 analysis shows that, on average, women are paid
99% of what men are paid, and minorities are paid at parity of
what non-minorities are paid. In the unlikely event we
encounter a pay disparity that is not explained by job-related
factors, an adjustment is made.
Fifth Third offers a 401(k) retirement plan that pays a match up
to 7% of an employee’s compensation. Employee participation"
2023-sustainability-report.txt,"rage feature.
682023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Caring for Employees
Fifth Third believes that Enhancements in 2023 include: • A new volunteer policy to help ensure In the first half of 2024, Fifth
nurturing and investing in • Fifth Third announced in 2023 that we that all employees are equally Third implemented the
supported in giving back to the places
would increase our company following enhancements to its
employee well-being is vital we live and work. The policy annually"
2023-sustainability-report.txt,"It’s effective in 2024. time employees four hours of paid time • Enhanced paid time away to support
employees through the loss of a loved
one of the many reasons • Wellness resources were refreshed to away from work to make a difference in one. Eligible employees who
ensure employees were aware of and our communities.
Fifth Third strives to using the tools and resources available. experience the death of a spouse,
• Expansion of assistance parameters in partner or child, including the loss of a
provide benefits that are • When an employee passes away, minor The Fifth Third Cares Fund, funded by child during pregnancy, are eligible for"
2023-sustainability-report.txt,"al benefit amount is by the Community Foundation of • Adoption reimbursement increased
from $10,000 to $15,000. Also, instead
supportive of the overall capped at $30,000 per family if there Middle Tennessee. In 2024, we
of a one-time lifetime maximum,
are multiple minor children. expanded the program to include life-
well-being of employees. employees can use the reimbursement
• A broadened travel benefit for medical threatening or serious injury or illness of
up to three times for a maximum of
plan covered services if an employee the employee, spouse, partner,"
2023-sustainability-report.txt,"r,
In 2023, Fifth Third $45,000.
does not have access to an in-network dependent or certain household
continued to evaluate its provider within 150 miles of their members impacted by catastrophic • Introduced a new wellness provider
that will offer a more modern interface
residence. circumstances such as fire, crime or
benefits offerings to
and improved coaching to help
other circumstances beyond their
employees and made control. (Death and natural disaster employees reach their wellness goals.
adjustments that drive were already categories within the • Introduced a new Employee"
2023-sustainability-report.txt,"out
period. for assistance.
692023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
MyWellness Financial Wellness Family-friendly Benefits
Transition to Each year, employees who The Financial Wellness program to Balance Work and Life
Paid Time Off focus on their wellness are offers employees and their • Paid parental bonding leave provides a
rewarded through our spouses or partners personal
minimum of four continuous weeks of time
After analyzing employee feedback, myWellness program. By taking financial coaching, educational"
2023-sustainability-report.txt,"onfidential calls with unbiased certified financial
volunteer paid time off and paid time employees who volunteer as wellness planners, digital lessons and personalized • Additional six-week to eight-week medical
off for medical leave, the PTO champions. suggestions on next steps. Fifth Third offers a leave benefit to physically recover from
program offers employees more birth of child.
401(k) retirement plan that provides a match up
control and flexibility in managing • Adoption reimbursement.
to 7% of an employee’s compensation up to the"
2023-sustainability-report.txt,"ibility in managing • Adoption reimbursement.
to 7% of an employee’s compensation up to the
their time away for different types of Physical Health IRS limit. • Infertility coverage.
absences such as sickness, vacation
• Competitive and • Paid military leave policy provides 100%
and personal time and supports
comprehensive traditional paid leave per year up to 20 days for any
employees’ needs outside of work.
benefits, including medical, Mental Health military duty including drills and training.
dental and vision plans. We encourage employees to Beyond 20 days, the employee is eligible for a"
2023-sustainability-report.txt,".
• Medical plans cover preventive screenings focus on their mental and
at no cost to the participant. Our emotional health and the well- • Bright Horizons Back-up Care provides all
preventive screening rates for breast being of their families. To support employees’ child and adult in-home or
cancer, colon cancer, cervical cancer, and mental health, Fifth Third center-based backup care. All employees
prostate specific antigen exceed industry provides: are eligible for 15 days of backup care per
benchmarks. • An Employee Assistance Program offering year with nominal co-payments. 1,345"
2023-sustainability-report.txt,"ng
We are responsible for ensuring that our status or a consumer’s exercise of credit commitment to both the letter and spirit of financial products and services available to
products and services are accessible to all protection rights. the CRA and other laws and regulations that prospective and existing customers on a fair
customers, in all markets, and that the right We strive to act in our customers’ best prohibit behavior and practices that could be and responsible basis. These courses are
types of responsible products and services interest. Fair and honest business practices deemed unethical, discriminatory or predatory required no matter what an employee’s role is"
2023-sustainability-report.txt,"uct Reviews Fifth Third has implemented a Consumer and Business Compensation
Practices Compliance Policy, which requires compliance with
Introduction of new products as well as product expansions To support our consultative sales and service approach, our
various laws, regulations and regulatory guidance that seek
and modifications are carefully reviewed to ensure compliance compensation and goal structure is centered on providing
to ensure fair, transparent and equitable treatment of all Fifth
with applicable rules and regulations, and customer suitability. the best solutions for our customers. We align our employee"
2023-sustainability-report.txt,"customers. An
Assessments of new products and changes to existing incentives with industry best practices and do not impose
enterprise-wide Consumer and Business Practices
products are reviewed by the risk management committees. sales quotas or product specific goals, nor do we require
Compliance Program governed by the Compliance Risk
Additionally, we want to ensure that existing products Management framework outlines Fifth Third’s commitment to customers to open a certain number of accounts.
continue to be delivered to customers as intended, meeting both the letter and spirit of laws that encourage Approximately 90% of a retail employee’s compensation is"
2023-sustainability-report.txt,"nagement Policy and Framework.
customer loyalty. Our results for these customers satisfied with their relationship
measures remained high and consistent manager in 2023. Governance includes ensuring that the
throughout the year. 96% complaint management system is designed
to enable proper complaint capture, routing
93% of consumers share that they are satisfied Commercial Relationship
and resolution. It also includes annual
with their retail branch experience, a result that Manager Satisfaction
compliance training for every employee and"
2023-sustainability-report.txt,"n While our customer satisfaction scores are process. If gaps are identified, teams are
high for all lines of business, we are constantly retrained and future adherence to policy and
looking for ways to improve. Customer procedures is monitored.
satisfaction results are an indicator of how • Education, focusing on complaint
well our products and services meet the identification, capture, resolution and
needs of our customers. Results are leveraged escalation.
to understand market-by-market best
Every employee completes a required training"
2023-sustainability-report.txt,"e Customer Experience team to prioritize
All complaints referencing the principles of
and execute the improvements identified.
93% UDAAP, Federal Housing Administration
Feedback is also requested from our Private Customer care teams, including the Office of (FHA) and Equal Credit Opportunity Act
Bank customers via a relationship study. the President, keep our customers at the (ECOA) are reviewed by Compliance.
Results include customer feedback on the center by treating them with kindness, being
Complaints referencing employee behavior,"
2023-sustainability-report.txt,"DAAP, Federal Housing Administration
Feedback is also requested from our Private Customer care teams, including the Office of (FHA) and Equal Credit Opportunity Act
Bank customers via a relationship study. the President, keep our customers at the (ECOA) are reviewed by Compliance.
Results include customer feedback on the center by treating them with kindness, being
Complaints referencing employee behavior,
Private Bank advisor as well as with the Bank consistent and providing timely resolution.
including reports that an employee has acted"
2023-sustainability-report.txt,"of to a more sustainable, lower-carbon future. October 2022 that details the use of
use, electric forklifts emit 120,000 fewer pounds of carbon proceeds according to our eligible project
than internal combustion-powered forklifts2. Electric forklifts, criteria and the impact of these projects on
with zero local emissions, ensure cleaner, more healthful air, our goal of building a sustainable future.
indoors and out. This is good not only for the environment,
For additional details, refer to the
but also for employee health. In 2023, Fifth Third leased"
2023-sustainability-report.txt,"only for the environment,
For additional details, refer to the
but also for employee health. In 2023, Fifth Third leased
Sustainability Bonds page on the investor
over $50 million to customers for electric forklifts.
relations website.
2Electric Forklift Conversion Transforms Building Products Manufacturer” Electric Power Research Institute, article 3002000292, December 2013.
882023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Environmental Sustainability In 2023, Fifth Third again hosted employee-focused"
2023-sustainability-report.txt,"of Fifth Third
15,000 people registered for
Bank. We also made a donation to the Columbus Zoo
the event.
Conservation Fund. The Fund supports saving wildlife
Fifth Third also celebrated Arbor Day 2023 by throughout their range locally, nationally, and worldwide.
encouraging employees to plant trees. Over a thousand
“We are proud to partner with Fifth Third on this exciting nest
tree saplings were distributed to employees in our second
egg campaign. Not only does it encourage nurturing families
annual employee giveaway event, which reached"
2023-sustainability-report.txt,"ximately 10,000 trees.
Our relationship with Common Orchard enables our
“Reforestation is an incredibly effective tool for addressing climate change,” said Jeremy employees to volunteer their time throughout our community, often in partnership with United
Faust, director of environmental sustainability, Fifth Third Bank. “We are proud to partner Way and the Green Umbrella Regional Sustainability Alliance.
with Mastercard on their innovative and unique initiative that is creating jobs as well as
In 2023, our employee members of the Fifth Third Enterprise Sustainability Business Resource"
2023-sustainability-report.txt,"oud to partner Way and the Green Umbrella Regional Sustainability Alliance.
with Mastercard on their innovative and unique initiative that is creating jobs as well as
In 2023, our employee members of the Fifth Third Enterprise Sustainability Business Resource
having a positive, measurable effect on our natural environment.”
Group volunteered for tree-planting events at five local Cincinnati public schools.
One of the Coalition’s global projects is located in the Commonwealth of Kentucky, one of
In April, our employee volunteers worked at Common Orchard’s Camp Washington Urban Farm"
2023-sustainability-report.txt,"ity to integrate climate solutions into our business. Future efforts will focus on the
Scope 3: Fuel- and energy-related activities (category 3)
need to ensure the Bank’s financed emissions reporting continues to align with industry best
Scope 3: Upstream transportation/distribution (category 4)
practices, supports third-party and regulatory expectations, and enables high-quality internal
Scope 3: Waste generated in operations (category 5)
decision making.9
Scope 3: Business travel (category 6)
Scope 3: Employee commuting (category 7)"
2023-sustainability-report.txt,"enerated by the project.10 In 2023, the solar power benchmarking properties through the U.S. Environmental more than 6,000 charging sessions on the Bank’s charging
network and over 140,000 kWh in energy use. Fifth Third
generation from the project was more than 190,000 MWh, Protection Agency’s Portfolio Manager tool. In doing so,
retired 143 MWh in RECs to offset the energy consumption
enough to power over 25,000 homes, or the equivalent of we identified many locations that qualified for ENERGY
emissions from over 29,000 passenger vehicles.11 STAR® certification and have had 150 locations from employee vehicle charging. Fifth Third plans to"
2023-sustainability-report.txt,"ed with a leading carbon registry,
“SEM Power is proud and honored to
independently verified, aligned geographically
provide solar power for Fifth Third Bank
with the Bank’s footprint, and timed with the
emissions that are being offset, all in on its branches in Florida,” said Scott
accordance with industry best practices. McIntyre, commercial division senior vice
The carbon offsets for Fifth Third’s 2023
emissions were purchased from two projects14
in partnership with ClimeCo, a leading global
environmental credit project developer. The An A-Gas employee collects recovered refrigerant at"
2023-sustainability-report.txt,"2e 8,669 10,357 10,538 10,983 10,803
Diesel Mt CO 2e 53 96 94 86 62
Refrigerant Mt CO 2e 111 56 974 1,363 1,042
Corporate Vehicles Mt CO 2e 11 11 13 8 8
Corporate Jet Mt CO 2e 1,015 1,125 860 557 1,317
Total Scope 1 emissions Mt CO 2e 9,859 11,645 12,479 12,995 13,232
Scope 2 emissions (Location-based) Mt CO 2e 60,284 65,075 64,927 72,695 79,417
Green-e Renewable Energy Certificates retired MWh 154,574 140,992 147,048 153,164 149,408
Total Scope 2 emissions (Market-based) Mt CO 2e 0 0 0 0 2,108
Scope 3 emissions from employee business travel (category 6) Mt CO 2e 12,742 11,187 7,109 3,952 12,271"
2023-sustainability-report.txt,"pe 3 emissions:
Purchased goods and services (category 1) Mt CO 2e 181,497 204,470 297,277 N/A N/A
Capital goods (category 2) Mt CO 2e 53,623 38,768 58,754 N/A N/A
Fuel- and energy-related activities (category 3) Mt CO 2e 13,447 20,069 21,989 N/A N/A
Upstream transportation/distribution (category 4) Mt CO 2e 3,772 716 3,060 N/A N/A
Waste generated in operations (category 5) Mt CO 2e 2,900 2,604 3,294 N/A N/A
Business travel (category 6) Mt CO 2e See above See above See above See above See above
Employee commuting (category 7) Mt CO 2e 21,033 19,574 14,436 N/A N/A"
2023-sustainability-report.txt,"et
vs. Peers
+ or - Based
Individual Capital
on Individual
Opportunity Levels vs.
Adjusted Return Loan to Deposit Performance Final Payout
Target = % Required
25% and Risk
Assets (ROA) vs. Target Ratio vs. Target
of Base Salary Levels
Assessment
Rating
Sustainability
Adjusted Efficiency Ratio
25% and Stewardship
vs. Target
Assessment
1082023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Business Ethics
Ethics Office Foundational
Doing the right thing is Code of Business Conduct and Ethics Employee Code"
2023-sustainability-report.txt,"orkforce and the foundation of our Ethics program which approved guide for
vibrant communities. It is the foundation of was recognized as one of the 2024 World’s employees to implement our Core Values in Written Governance and
Fifth Third’s reputation as a respected Most Ethical Companies®. This honor came our daily work: Work as One Bank, Take Standard Ethical Culture
corporate citizen, and this commitment begins from the highly respected Ethisphere Accountability, Be Respectful and Inclusive,
with each Fifth Third employee doing the right Institute, a global leader in defining and and Act with Integrity. It outlines our"
2023-sustainability-report.txt,"the highly respected Ethisphere Accountability, Be Respectful and Inclusive,
with each Fifth Third employee doing the right Institute, a global leader in defining and and Act with Integrity. It outlines our
thing. advancing the standards of ethical business responsibility to do the right thing, serve with
practices. It puts us in elite company, as only honesty and integrity, and act in compliance
Ethics Program
136 organizations around the globe— with both the letter and the spirit of the law.
Fifth Third’s ethics program is administered including only two U.S. based banks—earned Every employee is required to read, comply"
2023-sustainability-report.txt,"and contractors
Directors. Information reported includes of the World’s Most Ethical Companies® in
are required to complete ethics training on
EthicsLine (hotline) activity and resolutions, 2019, 2021, 2022 and 2023.
an annual basis. In 2023, 99.9% of all
conflicts of interest matters, and culture and
employees completed required compliance
conduct risk reporting.
training modules, which include ethics and
In addition, the Ethics Office develops ethics Code training. Further, ethics training is
training, employee communications on ethics incorporated into other training modules"
2023-sustainability-report.txt,"s of interest matters, and culture and
employees completed required compliance
conduct risk reporting.
training modules, which include ethics and
In addition, the Ethics Office develops ethics Code training. Further, ethics training is
training, employee communications on ethics incorporated into other training modules
matters and conducts ethics program required of employees and contractors
assessments. Training includes two required depending on specific roles and positions Incident Conflicts
annual all-employee and contractor courses: within the Bank. Fifth Third’s Directors also Management Management"
2023-sustainability-report.txt,"thics receive annual ethics training.
Course and a module in Doing the Right Thing
at Fifth Third. Our robust communication plan
is reviewed annually and contains periodic,
event specific, and seasonally appropriate
1092023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Ethics Hotline any Fifth Third policy or procedure, or any an individual having been a victim of
law or regulation. domestic violence, sexual assault or abuse, an
Every Fifth Third employee has a Prohibited activities include:"
2023-sustainability-report.txt,"ng the Right Thing
at Fifth Third. Our robust communication plan
is reviewed annually and contains periodic,
event specific, and seasonally appropriate
1092023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Ethics Hotline any Fifth Third policy or procedure, or any an individual having been a victim of
law or regulation. domestic violence, sexual assault or abuse, an
Every Fifth Third employee has a Prohibited activities include:
To ensure that Fifth Third’s practices are employee’s or dependent’s reproductive"
2023-sustainability-report.txt,"ng line with whom they feel outlines Fifth Third’s position on anti- • Use of competitors’ confidential or employment2.
comfortable talking. competitive activities. Antitrust laws, also proprietary information.
In addition, employees have access to their referred to as “competition laws,” are rules • Engaging in any other Human Rights
human resources business partner, the developed by the U.S. government to protect anticompetitive behavior, including Striving to be the One Bank that people most
Employee Relations Resource Group, consumers from predatory business disparaging or making false value and trust requires operating at the"
2023-sustainability-report.txt,"oose to remain anonymous. All reports are conducted with great care to ensure shareholders. We support fundamental
investigated and taken seriously, and we compliance with all laws and regulations. principles of human rights as set forth in the
protect confidentiality to the fullest extent We are responsible for adhering to anti- United Nations Universal Declaration of
possible. If an investigation determines bribery and anti-corruption regulations of the Human Rights, which is reflected in our
employee misconduct has occurred, prompt countries in which we operate. This includes Discrimination and Harassment Human Rights Statement, available on our"
2023-sustainability-report.txt,"isk
risk-taking and drive balanced decision- managed or monitored.
management practices by setting
making. Our goal is to ensure that
expectations for appropriate conduct and • Provide transparency of risk to our
accountability across the organization. aggregate residual risks do not exceed management and Board and escalate risks Capital Strategic
Fifth Third’s risk appetite, and that risks
Our approach to sound risk management is and issues as necessary. Plan Plan
we take support our portfolio
grounded in each employee living by our • Ensure Fifth Third’s products and services"
2023-sustainability-report.txt,"a management, cyberattack response services,
partnership among various teams at Fifth The Bank’s privacy and data threat intelligence, endpoint security, secure implementation of a new
Third, with Information Security, Data Privacy security controls have been development and more. simplified authentication
built to meet regulatory technology, enhanced threat
and Financial Crimes as the key players. As the threat landscape evolves, so does
requirements, industry best detection capabilities, and
Moreover, each Bank employee and third party risk. Providing appropriate"
2023-sustainability-report.txt,"man, CEO and President Kala Gibson, Chief Corporate Responsibility Officer
ambition to be the One Bank We are focused on creating affordable
housing, developing inclusive and sustainable
people most value and trust.
economies, creating opportunities for
year to ensure the work we’ve done with our giving was $35.3 million, and our employees
financial access, providing education and
Great banks also deliver for their stakeholders: nine neighborhoods is sustainable. logged 110,697 volunteer hours.
stability, and developing the workforce."
2023-sustainability-report.txt,"employees
financial access, providing education and
Great banks also deliver for their stakeholders: nine neighborhoods is sustainable. logged 110,697 volunteer hours.
stability, and developing the workforce.
investors, communities, customers and We also laid the groundwork in 2023 for We financed $19.6 billion in social projects as
employees. In 2023 we delivered top quartile We continued our focus on funding significant progress toward our financial part of our $100 billion environmental and
profitability, the best core deposit growth and investments and loans that support the education and workforce commitments, social target. This included over $177 million"
2023-sustainability-report.txt,"ility, the best core deposit growth and investments and loans that support the education and workforce commitments, social target. This included over $177 million
the best shareholder return among all regional creation and revitalization of housing including a $1 million grant to the National financed for essential services to low- and
peers who did not participate in a FDIC- properties. Many of these developments are Urban League to continue a comprehensive moderate-income communities and over
assisted transaction. This allowed us to invest providing homes to low- and moderate- workforce development program. $1 billion for employment generation."
2023-sustainability-report.txt,"ittee met four times.
and other employment practices The
oversight of Fifth Third’s policies,
HCC Committee met five times in 2023.
procedures and controls to ensure they “Fifth Third Bank is committed to “Protecting our customers’ financial and
meet our standard of excellence. This generating and maintaining sustainable information assets is a top priority at
“We are committed to delivering on our
oversight is vital to foster value for all stakeholders. Through a Fifth Third. We are focused on
commitments to our workforce,"
2023-sustainability-report.txt,"yment assistance $ (millions) $4.5 $3.6 $4.1 31
Community development lending $ (billions) $0.9 $0.9 $1.3 31-35
Strengthening our
Communities Community development investments $ (millions) $358.2 $596.0 $339.9 31-35
Philanthropic donations $ (millions) $35.3 $38.8 $40.6 43-47
Meals provided to community # (millions) 11 8.4 4.6 46
People financially educated # 162,001 165,805 164,000 36-37
Hours of community service # 110,697 117,688 97,058 43, 46-47
Board Diversity Percentage2 % 44% 36% 40% 105
Women in workforce % 57% 58% 59% 50"
2023-sustainability-report.txt,"$0.9 $0.9 $1.3 31-35
Strengthening our
Communities Community development investments $ (millions) $358.2 $596.0 $339.9 31-35
Philanthropic donations $ (millions) $35.3 $38.8 $40.6 43-47
Meals provided to community # (millions) 11 8.4 4.6 46
People financially educated # 162,001 165,805 164,000 36-37
Hours of community service # 110,697 117,688 97,058 43, 46-47
Board Diversity Percentage2 % 44% 36% 40% 105
Women in workforce % 57% 58% 59% 50
Pay Equity for women (adjusted) % 99% 99% 99% 100% 68
Persons of color in workforce % 29% 28% 27% 50"
2023-sustainability-report.txt,"as our corporate responsibility as well as our privilege.
We set the bar high for our corporate citizenship because it is critical to being the One Bank people most value
and trust. We need to do more than just offer the right products and services to meet the financial needs of our
stakeholders. We seek to be a trusted advisor in our communities and want to bring our social capital and
commitment to bear on major projects and initiatives that will create affordable housing, spur inclusive and
sustainable economic development, deliver financial access, education and stability, and advance workforce"
2023-sustainability-report.txt,"capital and
commitment to bear on major projects and initiatives that will create affordable housing, spur inclusive and
sustainable economic development, deliver financial access, education and stability, and advance workforce
development, especially for underserved communities.
IN THIS SECTION
Accelerating Racial Equality, Equity and Inclusion 23
National Community Advisory Forum 27
Community Impact 28
Affordable Housing 31
Economic Development 33
Financial Education, Access and Stability 36
Workforce Development 40"
2023-sustainability-report.txt,"of the Comptroller of the
Our efforts in the community were designed to bring about
Currency’s Roundtable for Economic Access and Change
systemic change by increasing access to financial centers and
(REACh) initiative in 2021. This collaborative effort involves
solutions for the unbanked and underbanked as well as
leaders from banking, business, technology and national civil
expanding investments for neighborhood revitalization and
rights organizations to remove structural barriers to financial
workforce development."
2023-sustainability-report.txt,"to improve and
Our commitment to financial inclusion and education helps
expand its programs, financing products and services to meet
ensure that our consumers and business owners have
the needs of today’s MBEs.
access to the financial resources and education they need
to be successful and grow.
Philanthropy
Members of Fifth Third’s Corporate Responsibility Office stand
Fifth Third and the Fifth Third Foundation took significant
with Marc Morial, center (red tie), at the National Urban League’s
steps through both a new workforce development Women of Power Luncheon in 2023."
2023-sustainability-report.txt,"revised the National Community
Advisory Forum charter and instituted new membership Mary Ehrsam | Operation Hope | Atlanta.
for the 2024-2026 term. The charter states that members Steven Hall | LISC | Chicago.
will offer Fifth Third a diverse perspective on various
Fifth Third Chairman, CEO and President Tim Jill Houghton | DisabilityIn | Alexandria, Virginia.
topics, including the financial needs of customers,
Spence met with National Community
Susan Ifill | NeighborWorks America | Washington.
businesses and communities as well as existing workforce Advisory Forum members in Cincinnati in"
2023-sustainability-report.txt,", inclusion and diversity, corporate
Ying McGuire | National Minority Supplier Development Council | New York.
sustainability (environmental, social and governance), and the
Community Reinvestment Act. The National CAF works to Fred Mitchell | United Negro College Fund | New York.
help Fifth Third deliver on its five sustainability priorities, Carol Naughton | Purpose Built Communities | Atlanta.
with particular emphasis on affordable housing, economic
Pamela Prince-Eason | WEBENC | Washington.
development, financial accessibility and workforce"
2023-sustainability-report.txt,"s we serve so that we can view the impact results. The Responsibility Office leads the effort to
opportunities from the same perspective as residents and reverse negative cycles among low- and moderate-income
community leaders. Americans to help build strong foundations for the future.
We also conduct a regular Community Needs Assessment
with community-based organizations. Our latest survey
deployed in January 2024 and the results confirmed our
focus on affordable housing, economic development,
financial access, education and stability, and workforce"
2023-sustainability-report.txt,"00 in down payment assistance if they our communities.”
human right and has made solving the crisis suggests, the 53 Community Special Purpose purchase in a low income census tract.
one of our top priorities. Credit Program is a special credit program for Qualified purchasers in a moderate income
It is a fact that the need for housing is great borrowers who need alternative terms to tract can receive up to $1,295.
across the nation—from subsidized, purchase a home. Fifth Third also participated
affordable, workforce, semi-permanent and in 2023 in the SPCPs of Freddie Mac and Community Development"
2023-sustainability-report.txt,"grams for very low to
“Affordable
credit program for residential mortgages and low-income purchase borrowers. In 2023,
housing
other programs for low- and moderate- Fifth Third made loans through these and its
developments,
income communities. Loans and investments own programs worth more than $279 million.
Investments
whether they be
through our Community Development
Banking Group are facilitating major housing Down Payment Assistance subsidized, Fifth Third specializes in financing affordable
workforce, senior,"
2023-sustainability-report.txt,"ide receiving services and help. • Financial Accessibility:
throughout our footprint, often in partnership with nonprofit ◦ Financial counseling.
Banking To Go
and other community organizations. The eBus also has ◦ Student Loan counseling.
traveled to areas needing relief from natural disasters. The eBus works in tandem with our Banking to Go kit, which ◦ Income Tax Assistance.
In 2023, the eBus made 120 event stops and served nearly is a customizable, full-service alternative for smaller-scale
• Workforce Development:"
2023-sustainability-report.txt,"ble to meet individuals where they financial education services to over 1,100 people.
are—and not just physically by traveling to their • Disaster Relief.
neighborhoods. The eBus’ technology enhancements and • Military Resources.
functionality also gives bankers the ability to assess their
financial health as well as help address other social and
emotional and immediate needs.
392023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Workforce Development"
2023-sustainability-report.txt,"s where they financial education services to over 1,100 people.
are—and not just physically by traveling to their • Disaster Relief.
neighborhoods. The eBus’ technology enhancements and • Military Resources.
functionality also gives bankers the ability to assess their
financial health as well as help address other social and
emotional and immediate needs.
392023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Workforce Development
The ability to gain meaningful employment is fundamental • Urban Techs Jobs Program, which trains unemployed 2023 Workforce Development"
2023-sustainability-report.txt,"ial health as well as help address other social and
emotional and immediate needs.
392023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Workforce Development
The ability to gain meaningful employment is fundamental • Urban Techs Jobs Program, which trains unemployed 2023 Workforce Development
in helping community members achieve their goals for life. individuals for middle-skill occupations in the Information
Partnership Results
That’s why workforce development is one of Fifth Third’s Technology sector."
2023-sustainability-report.txt,"Youth Program, an evidence-based program
boost economic mobility throughout our communities. with a focus on education and employment for youths
aged 16-24 who have either experienced the criminal 1,154 1,249
Urban League Partnership
justice system or who are disadvantaged.
In 2023, Fifth Third set the “We are pleased to deepen our relationship with the National Communities Total Job
stage for a continuation of Urban League again to continue a successful initiative that
Impacted Seekers Served
a successful workforce provides a foundation for individuals to develop and refine"
2023-sustainability-report.txt,"Impacted Seekers Served
a successful workforce provides a foundation for individuals to develop and refine
partnership with the their skills,” said Kala Gibson, chief corporate responsibility
National Urban League. The officer. “Programs that address career readiness are
Fifth Third Foundation announced a $1 million grant to the fundamental to leveling the playing field and giving
organization in 2021 to create a two-year signature marginalized individuals a better chance to succeed.” 63 1,081
workforce development program. In 2024, in recognition"
2023-sustainability-report.txt,"organization in 2021 to create a two-year signature marginalized individuals a better chance to succeed.” 63 1,081
workforce development program. In 2024, in recognition
Community Partner Program
of the many lives changed through the league’s program,
the Fifth Third Foundation will again donate $1 million, Fifth Third and NextJob, a national reemployment Community Job Seeker
payable from 2024-2026, to build upon that success. company, collaborated again in 2023 on a community Partners Toolkit
The Urban League’s workforce development program partner program in which we worked to empower our Empowered Registrations"
2023-sustainability-report.txt,"ed workers through registered apprenticeship Professional Brand and Triage Coaching & Resume Review.
and pre-apprenticeship programs.
• The Urban Reentry Program, which provides formerly Toolkit Hires
incarcerated adults with the necessary skills and training to
successfully reenter the job market with positions that pay a
living wage and that can potentially lead to a career.
402023 Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Regional Workforce Initiatives"
2023-sustainability-report.txt,"Sustainability Report Contents Introduction Communities Inclusion Employees Customer Climate Governance Appendix
Regional Workforce Initiatives
Fifth Third is an investor in the Nashville Area Chamber of
Commerce’s Partnership 2030, a regional public-private
initiative dedicated to Middle Tennessee’s long-term economic
prosperity. The Partnership is leading a strategy to maintain
and grow the Nashville region’s economy by creating jobs
through relocating and expanding businesses and building a
talented and creative workforce. Fifth Third made a five-year"
2023-sustainability-report.txt,"l Workforce Initiatives
Fifth Third is an investor in the Nashville Area Chamber of
Commerce’s Partnership 2030, a regional public-private
initiative dedicated to Middle Tennessee’s long-term economic
prosperity. The Partnership is leading a strategy to maintain
and grow the Nashville region’s economy by creating jobs
through relocating and expanding businesses and building a
talented and creative workforce. Fifth Third made a five-year
investment of $270,000 from 2021-2026 in Partnership 2030.
Key areas of focus for workforce development are up-skilling"
2023-sustainability-report.txt,"hville Area Chamber of
Commerce’s Partnership 2030, a regional public-private
initiative dedicated to Middle Tennessee’s long-term economic
prosperity. The Partnership is leading a strategy to maintain
and grow the Nashville region’s economy by creating jobs
through relocating and expanding businesses and building a
talented and creative workforce. Fifth Third made a five-year
investment of $270,000 from 2021-2026 in Partnership 2030.
Key areas of focus for workforce development are up-skilling
and re-skilling the current workforce, creating a talent pipeline"
2023-sustainability-report.txt,"hird Corporate Giving
The Fifth Third Foundation
$13.17 million
supports communities served by
Fifth Third Bank in the areas of
health and human services, = Community Development: Other Support:
community development, arts Affordable Housing Arts & Culture
and culture, and education. In
Economic Development Civic and
2023, the Foundation made Fifth Third Giving
Revitalize/Stabilize LMI Community
$21.0 million in donations, $35.29 Million
Communities Emergency
Heidi Jark including the following:
Workforce Development Relief"
2023-sustainability-report.txt,"Governance Appendix
Employee Demographics
Because of our commitment to a more inclusive workplace, Fifth Third has been at the forefront of publishing demographic diversity statistics since 2017. It is of utmost importance at every
level of our Company, from our Board of Directors to our executive team for our 18,499 full-time and 649 part-time employees as of Dec. 31, 2023. The purpose of publishing this data is to
understand where we are in our journey to create equal opportunities for all.
4
2023 Workforce Diversity"
2023-sustainability-report.txt,"equitable, inclusive
and fosters growth for all employees.
Our journey is ever evolving, and our focus and progress in creating an
Black/ Hawaiian/
inclusive workplace for all employees is critical to our success. The data we
Persons of Color African American Pacific Two or
share is also a powerful tool for us to understand our progress in our efforts
Breakout (%) Asian American Hispanic Indian Islander More Races
to achieve goals over time.
Exec/Senior
Managers 4.6 3.2 1.7 0.3 0.0 0.6
Persons
Workforce Diversity (%)4 Men Women White of Color First/Mid level"
2023-sustainability-report.txt,"ving our of Conduct
The chief ethics officer may also escalate
vision to be the One Bank The Code of Business
ethics matters directly to the Board. The
Conduct and Ethics,
people most value and trust. Ethics program is audited and examined as
part of the Fifth Third Audit schedule and the anchored by our Fifth
Our vision is a commitment that inspires our schedule of its examiners. Third Compass, is a
employees to create a great customer The Code of Business Conduct and Ethics is critical Board-
experience, an engaging workforce and the foundation of our Ethics program which approved guide for"
2023-sustainability-report.txt,"relies on third
data to maintain our satisfactory control ratings, is evidence of the IDENTITY AND ACCESS
parties with whom we have chosen to
customers’ confidence about continued positive momentum of our efforts partner. These partners assist in our data loss MANAGEMENT: Improvements
to protect customer data. in identity and access
prevention, DDoS, or distributed denial of
their financial futures.
functionality for the Bank’s
service, protections, document lifecycle
Privacy and Data Security
workforce through"
2023-sustainability-report.txt,"d data privacy risk protect data through appropriate retention and defensible
management, as well as third-party technology risk deletions once it has reached the end of its lifecycle based on
management. the Corporate Records Retention Schedule. Application owners
and managers are required to provide access to data through
least privilege and certify that access on an annual basis.
To support the Bank’s objective of protecting data, the
Information Security team has established and maintains a
qualified and representative workforce, ensuring that the right"
2023_Baxter_Corporate_Responsibility_Report.txt,"tary customer or user data. Learn more.
Employee Development Investment in continued employee professional development and educational opportunities. Ability of employees to envision and put professional goals into action,
and Retention leading to career advancement opportunities in a company. Learn more.
Employee Health and Safety Measures taken to promote employee health and safety within the companyʼs facilities and across the supply chain, including mental health and well-being. Learn more.
Human Rights and Labor Workplace labor standards, basic worker rights, fair wages and benefits, and relationship with organized labor. Includes company and suppliers’ direct and indirect impact(s)"
2023_Baxter_Corporate_Responsibility_Report.txt,"ers,
Baxter’s Corporate Responsibility Council. For example, the strategic priorities in 2023 included: Visit Baxter’s website for information
and, beginning in February 2023, the CHC Committee and links related to our corporate
• Patient safety and quality, including product safety and
assumed responsibility for certain human capital CORPORATE RESPONSIBILITY COUNCIL governance practices, including:
quality systems
management matters. The QRC Committee oversees
• Corporate Governance Guidelines
issues related to environmental, health and employee Baxter’s Corporate Responsibility Council is composed of • Best place to work, including diversity in the workforce,"
2023_Baxter_Corporate_Responsibility_Report.txt,"istics on Jan. 1, 2023 (the beginning of the reporting period).
APPROACH AND PROGRESS having Baxter’s critically needed, long-dated APPROACH AND PROGRESS
products year-round
Giving back is central to who we are and furthers Baxter’s At Baxter we aim for a zero-harm workplace. We prioritize
• Supporting U.S. medical teams traveling overseas to
Mission to Save and Sustain Lives. Through product injury risk reduction19 through ongoing initiatives,
provide charitable care to underserved populations
donations and charitable financial investments from including digital analytics and employee training and"
2023_Baxter_Corporate_Responsibility_Report.txt,"d manufacturing and supply chain
plans. In 2023, we supplemented our existing
engineering and math (STEM) education; and promote management through regular touch points that cover compared with one major and 16 severe workplace
partnership with Americares and established new
community resilience, primarily through initiatives around safety performance, trends and actions. We regularly incidents in 2022. We continue to share lessons learned
global partnerships with International Health Partners,
disaster relief and diversity, equity and inclusion (DE&I). engage cross-functional teams to analyze incidents and about employee injury trends, implement actions across"
2023_Baxter_Corporate_Responsibility_Report.txt,"fort to reduce injury and
with support in response to earthquakes in Morocco,
illness rates and improve workplace safety performance.
The Foundation also supports and amplifies the giving Turkey and Syria, flooding in Libya and wildfires In 2023, we continued engaging our operational workforce
and volunteer efforts of Baxter’s employees through in Hawaii, among other natural disasters. We also to improve hazard/near-miss identification and assign BeWell@Baxter: Through BeWell@Baxter, our global
its Matching Gift and Dollars for Doers programs. provided humanitarian aid for Gaza, Israel and Ukraine. corrective actions where appropriate. We also focused on employee health and wellness program, we promote"
2023_Baxter_Corporate_Responsibility_Report.txt,"o support the goal. Leadership role is defined as director and above. (See endnotes 22 and 23 for additional detail.)
PERFORMANCE PERFORMANCE
As of Dec. 31, 2023, 37% of people in leadership roles at Baxter globally were women, As of Dec. 31, 2023, 23% of people in leadership roles at Baxter in the United States were
up from 35% in 2022. ethnic minorities, up from 22% in 2022.
APPROACH AND PROGRESS
Diversity metrics and goals: One critical way Baxter’s Business Resource Groups play an important
Baxter supports DE&I is through a holistic and role in strengthening employee engagement and"
2023_Baxter_Corporate_Responsibility_Report.txt,"roups play an important
Baxter supports DE&I is through a holistic and role in strengthening employee engagement and
comprehensive analysis of workforce diversity advancing a culture that continues to make a
metrics. We track the representation of women meaningful impact in the lives of our patients.
globally and underrepresented minorities in the
We have metrics and reporting in place to assess
United States at every career level throughout the
and share progress in this area. This measurement
employee life cycle from hiring through exit."
2023_Baxter_Corporate_Responsibility_Report.txt,"athering and verifying data moving forward.
See the Data Summary for additional diversity data.
We aim to achieve our diversity representation goals
by continuing our efforts to attract, retain and develop
diverse talent and foster an inclusive workplace.
Inclusive culture: In addition to our aspirational
diversity representation goals, we are equally
focused on advancing an inclusive culture where
all people feel they belong and feel seen, heard
and valued. Inclusion is a critical component of
our company culture and helps to drive employee"
2023_Baxter_Corporate_Responsibility_Report.txt,"• Post-incident review meetings and reports provide
prioritize following legal requirements, being honest and monitor new and existing third parties for compliance the security of our infrastructure and products. This insight into how we can update our response strategies.
fair, encouraging questions and valuing discussion. In with our anticorruption expectations. In 2023, we updated commitment is reinforced through executive oversight,
• Our proactive threat-hunting process, including the use
2023, we updated our policies and procedures to adhere the program to refine our risk-based approach and policies and standards, and mandatory employee training."
2023_Baxter_Corporate_Responsibility_Report.txt,"Act and promote orderly and timely response to cyber incidents.
our employees, including the company’s Chief Executive similar laws that are being enacted in other states, as well
Compliance monitoring: Baxter uses a data-analytics- • Our policies and processes for asset management
Officer (CEO) and other senior management, and define as China’s Personal Information Protection Law and other
promote proper management of data on retired hardware.
based monitoring system to review compliance risk
the core principles that govern employee behavior and legal developments in geographies where we do business. In"
2023_Baxter_Corporate_Responsibility_Report.txt,"e of tools to secure our assets, reduce detection time Training: We continue to raise privacy and security
appropriate remediation was or is being implemented
Baxter’s strict prohibition of off-label promotion is and improve resilience. awareness with Baxter employees through annual
where warranted. In substantiated cases involving
included in our annual training to the Sales organization. • We conduct scenario-based activities with Baxter mandatory training4 and recurring reinforcement through
employee misconduct, employees received appropriate"
2023_Baxter_Corporate_Responsibility_Report.txt,"annual
where warranted. In substantiated cases involving
included in our annual training to the Sales organization. • We conduct scenario-based activities with Baxter mandatory training4 and recurring reinforcement through
employee misconduct, employees received appropriate
In addition, we provide training to all third parties that executives, simulating major enterprise cyber incidents, virtual events and updated materials. For example,
disciplinary action based on the nature of the misconduct
undergo our due diligence process. to test our incident response plan and prepare in 2023, we provided employee training related to the"
2023_Baxter_Corporate_Responsibility_Report.txt,"cluding the
businesses. A third-party review estimates that our
all individuals. Baxter provides employees with training, tools and
Compensation and Human Capital Committee) and
spending with diverse suppliers directly supported
resources to build cultural awareness and competence
Fostering human rights takes many forms at Baxter leadership teams, who influence and inspire our desired $716 million in economic output as well as $156 million
to engage more authentically. To reinforce the value of
and is reflected in our policies and initiatives in areas culture and drive greater representation throughout the in employee income and more than 2,000 jobs.5"
2023_Baxter_Corporate_Responsibility_Report.txt,"ectly supported
resources to build cultural awareness and competence
Fostering human rights takes many forms at Baxter leadership teams, who influence and inspire our desired $716 million in economic output as well as $156 million
to engage more authentically. To reinforce the value of
and is reflected in our policies and initiatives in areas culture and drive greater representation throughout the in employee income and more than 2,000 jobs.5
inclusion throughout the company, we conduct surveys
including workplace inclusion, employee safety, supply organization. See information regarding Board diversity in"
2023_Baxter_Corporate_Responsibility_Report.txt,"and drive greater representation throughout the in employee income and more than 2,000 jobs.5
inclusion throughout the company, we conduct surveys
including workplace inclusion, employee safety, supply organization. See information regarding Board diversity in
to measure manager effectiveness, including inclusive Marketplace: We strive to adopt inclusive product
chain labor practices, ethical conduct, access to Baxter’s 2023 Proxy Statement.
leadership. design from concept to launch and enhance
healthcare, and patient, employee and customer privacy."
2023_Baxter_Corporate_Responsibility_Report.txt,"gement
communities where target beneficiaries are external to the organization, including contributions to charities, nongovernmental organizations and research institutes, funds
and Philanthropy
to support community infrastructure such as recreational facilities, social programs, and arts and educational events. Learn more.
Data Privacy and Cybersecurity Risk management related to the collection, retention and use of sensitive, confidential and/or proprietary customer or user data. Learn more.
Employee Development Investment in continued employee professional development and educational opportunities. Ability of employees to envision and put professional goals into action,"
2023_Baxter_Corporate_Responsibility_Report.txt,"cial programs, and arts and educational events. Learn more.
Data Privacy and Cybersecurity Risk management related to the collection, retention and use of sensitive, confidential and/or proprietary customer or user data. Learn more.
Employee Development Investment in continued employee professional development and educational opportunities. Ability of employees to envision and put professional goals into action,
and Retention leading to career advancement opportunities in a company. Learn more.
Employee Health and Safety Measures taken to promote employee health and safety within the companyʼs facilities and across the supply chain, including mental health and well-being. Learn more."
2023_Baxter_Corporate_Responsibility_Report.txt,"ritable Giving19, 33 ($ millions) (continued) Achieve Top Quartile Workplace Safety Performance3, 37 (continued) Diversity, Equity and Inclusion46 (continued)
The Baxter International Foundation Contributions $12.04 $12.08 $10.26 Sources of Recordable Injury and Serious Incidents (as a % of total) Economic Impact of Spending with Diverse Suppliers51
Within the United States (including U.S. Territories) $11.48 $11.66 $9.85 Ergonomic 22% 22% 24% Direct: Economic Output ($ millions) $257 $691 $716
Grants35 $10.13 $9.91 $7.69 Illness 9% 5% 0% Direct: Employee Income ($ millions) $72 $135 $156"
2023_Baxter_Corporate_Responsibility_Report.txt,"cluding U.S. Territories) $11.48 $11.66 $9.85 Ergonomic 22% 22% 24% Direct: Economic Output ($ millions) $257 $691 $716
Grants35 $10.13 $9.91 $7.69 Illness 9% 5% 0% Direct: Employee Income ($ millions) $72 $135 $156
Involving the Body (nonergonomic) 9% 1% 1%
Matching Gifts and Dollars for Doers $0.75 $0.95 $1.25 Direct: Jobs 1,190 1,729 2,027
Punctures 7% 8% 13%
Scholarships $0.47 $0.47 $0.60 Estimated Indirect and Induced: Economic Output ($ millions) $180 $327 $359
Struck by Object 12% 15% 7%
Prize Programs $0.13 $0.33 $0.31 Estimated Indirect and Induced: Employee Income ($ millions) $68 $117 $127"
2023_Baxter_Corporate_Responsibility_Report.txt,"Trips and Falls 24% 24% 26%
Outside the United States $0.56 $0.42 $0.41 Caught In, On or Between 7% 12% 14% Estimated Indirect and Induced: Jobs 1,255 1,744 1,915
Grants $0.24 $0.08 $0.00
Forklifts and Other Vehicles 2% 3% 3% Additional Workforce Disclosures3
Scholarships $0.32 $0.34 $0.41
Other 8% 11% 12% Global Workforce by Job Level (as a % of total)
Scholarships Awarded 263 281 349 Facilities That Participated in the Exercise Challenge (%) 63% 81% 78% Vice President and Above 0.3% 0.3% 0.3%
Employee Volunteer Hours 22,000 16,800 13,700 Employees Who Completed a Personal Wellness Profile43 (%) 32% 27% 22% Director 1.7% 1.7% 1.7%"
2023_Baxter_Corporate_Responsibility_Report.txt,"Jobs 1,255 1,744 1,915
Grants $0.24 $0.08 $0.00
Forklifts and Other Vehicles 2% 3% 3% Additional Workforce Disclosures3
Scholarships $0.32 $0.34 $0.41
Other 8% 11% 12% Global Workforce by Job Level (as a % of total)
Scholarships Awarded 263 281 349 Facilities That Participated in the Exercise Challenge (%) 63% 81% 78% Vice President and Above 0.3% 0.3% 0.3%
Employee Volunteer Hours 22,000 16,800 13,700 Employees Who Completed a Personal Wellness Profile43 (%) 32% 27% 22% Director 1.7% 1.7% 1.7%
Value of Employee Volunteer Hours36 ($) $659,000 $534,000 $459,000 Virtual Sessions Held Related to Monthly Wellness Days – 48 42 Manager 9.2% 9.8% 9.8%"
2023_Baxter_Corporate_Responsibility_Report.txt,"15 9.29 4.44 diverse backgrounds 80% 80% – Inclusion 77% 77% 79%
EMEA 3.96 5.10 11.66 I am comfortable voicing my ideas and opinions, even if they Leadership 72% 70% –
76% 76% –
Asia Pacific 0.30 2.93 0.80 are different from others
Organization 76% 76% –
Restricted Days Rate41 3.89 5.15 5.22 My direct manager cares about me as a person 78% 79% –
Rewards 64% 61% –
Americas 6.68 8.95 8.58 I feel I belong at Baxter49 – 77% –
Workplace 78% 78% –
EMEA 0.68 0.89 1.55 Supplier Diversity50 ($ millions)
Total Employee/Contractor Training Hours54 2,200,000 2,530,000 2,460,000"
2023_Baxter_Corporate_Responsibility_Report.txt,"ey Leadership 72% 70% –
76% 76% –
Asia Pacific 0.30 2.93 0.80 are different from others
Organization 76% 76% –
Restricted Days Rate41 3.89 5.15 5.22 My direct manager cares about me as a person 78% 79% –
Rewards 64% 61% –
Americas 6.68 8.95 8.58 I feel I belong at Baxter49 – 77% –
Workplace 78% 78% –
EMEA 0.68 0.89 1.55 Supplier Diversity50 ($ millions)
Total Employee/Contractor Training Hours54 2,200,000 2,530,000 2,460,000
Asia Pacific 1.19 0.00 0.03 Spend with Small Businesses $190 $598 $563
Training Hours Per Employee/Contractor54 (average) 30 30 29"
2023_Baxter_Corporate_Responsibility_Report.txt,"n 78% 79% –
Rewards 64% 61% –
Americas 6.68 8.95 8.58 I feel I belong at Baxter49 – 77% –
Workplace 78% 78% –
EMEA 0.68 0.89 1.55 Supplier Diversity50 ($ millions)
Total Employee/Contractor Training Hours54 2,200,000 2,530,000 2,460,000
Asia Pacific 1.19 0.00 0.03 Spend with Small Businesses $190 $598 $563
Training Hours Per Employee/Contractor54 (average) 30 30 29
Days Away (Lost), Restricted or Transferred Rate (DART)42 8.04 12.08 10.41 Spend with Small Disadvantaged Businesses $2.3 $3.6 $3.2
Voluntary Employee Turnover Rate 14.0% 15.3% 12.8%"
2023_Baxter_Corporate_Responsibility_Report.txt,"8% 78% –
EMEA 0.68 0.89 1.55 Supplier Diversity50 ($ millions)
Total Employee/Contractor Training Hours54 2,200,000 2,530,000 2,460,000
Asia Pacific 1.19 0.00 0.03 Spend with Small Businesses $190 $598 $563
Training Hours Per Employee/Contractor54 (average) 30 30 29
Days Away (Lost), Restricted or Transferred Rate (DART)42 8.04 12.08 10.41 Spend with Small Disadvantaged Businesses $2.3 $3.6 $3.2
Voluntary Employee Turnover Rate 14.0% 15.3% 12.8%
Spend with Minority-Owned Businesses $73 $97 $134
Employee/Contractor Major or Severe Incidents (total number) 4/0 17/0 11/0"
2023_Baxter_Corporate_Responsibility_Report.txt,"ic 1.19 0.00 0.03 Spend with Small Businesses $190 $598 $563
Training Hours Per Employee/Contractor54 (average) 30 30 29
Days Away (Lost), Restricted or Transferred Rate (DART)42 8.04 12.08 10.41 Spend with Small Disadvantaged Businesses $2.3 $3.6 $3.2
Voluntary Employee Turnover Rate 14.0% 15.3% 12.8%
Spend with Minority-Owned Businesses $73 $97 $134
Employee/Contractor Major or Severe Incidents (total number) 4/0 17/0 11/0
Political Contributions
Spend with Women-Owned Businesses $90 $77 $148
Employee/Contractor Fatalities (total number) 0/0 1/0 0/0"
2023_Baxter_Corporate_Responsibility_Report.txt,"0 595 570
Scope 3 Emissions8
Purchased Goods and Services (Category 1)9 n/a n/a n/a n/a n/a n/a 1,380 1,802 1,538
Capital Goods (Category 2)10 n/a n/a n/a n/a n/a n/a 256 199 154
Fuel- and Energy-Related Activities (Category 3)11 n/a n/a n/a n/a n/a n/a 150 149 143
Upstream Transportation and Distribution (Category 4)12 n/a n/a n/a n/a n/a n/a 442 438 397
Waste Generated in Operations (Category 5)13 n/a n/a n/a n/a n/a n/a 28 26 28
Business Travel (Category 6)14 n/a n/a n/a n/a n/a n/a 17 27 46
Employee Commuting (Category 7)15 n/a n/a n/a n/a n/a n/a 35 35 35"
2023_Baxter_Corporate_Responsibility_Report.txt,"Solutions business, which was divested at the end of the third quarter of 2023.2023 CORPORATE RESPONSIBILITY REPORT 30
Appendix: Additional Disclosures
Invest in Underserved Communities Globally Ethics and Compliance
BAXTER GLOBAL CHARITABLE GIVING, 2023* ITEMS REPORTED TO THE ETHICS AND COMPLIANCE HELPLINE IN 2023*
In 2023, Baxter logged 743 reports from 36 countries** into our Ethics and Compliance Helpline system and closed 705 cases
that were received through 2023.***
CATEGORY† % OF TOTAL††
Work Environment/Employee Relations 72%"
2023_Baxter_Corporate_Responsibility_Report.txt,"air emissions X 232023 CORPORATE RESPONSIBILITY REPORT 33
Appendix: GRI Content Index (continued)
DISCLOSURE 2023 REPORTING 2022 REPORTING DISCLOSURE 2023 REPORTING DISCLOSURE 2023 REPORTING
GRI 306: Waste 2020 GRI 404: Training and Education 2016 GRI 416: Customer Health and Safety 2016
Management Approach 13 Management Approach 17, 18, Career Development Management Approach 11
306-3 Waste generated 22, 23 404-1 Average hours of training per year 24 416-1 Assessment of the health and safety 11
per employee"
2023_Baxter_Corporate_Responsibility_Report.txt,"33
Appendix: GRI Content Index (continued)
DISCLOSURE 2023 REPORTING 2022 REPORTING DISCLOSURE 2023 REPORTING DISCLOSURE 2023 REPORTING
GRI 306: Waste 2020 GRI 404: Training and Education 2016 GRI 416: Customer Health and Safety 2016
Management Approach 13 Management Approach 17, 18, Career Development Management Approach 11
306-3 Waste generated 22, 23 404-1 Average hours of training per year 24 416-1 Assessment of the health and safety 11
per employee
impacts of product and service
categories
306-4 Waste diverted from disposal 23 Programs for upgrading employee skills"
2023_Baxter_Corporate_Responsibility_Report.txt,"l Report on Form 10-K
Standards for Baxter Suppliers in the social and economic area
Negative environmental impacts in the
308-2 12, 13, 25, 29 Operations and suppliers at significant
supply chain and actions taken 408-1 29
risk for incidents of child labor
GRI 401: Employment 2016 GRI 409: Forced or Compulsory Labor 2016
Management Approach 18, Benefits Management Approach 13, 29, Baxter Global Human Rights Policy,
Baxter Code of Conduct, Global Supplier
Standards Manual, Ethics and Compliance
401-1 New employee hires and employee turnover 24"
2023_Baxter_Corporate_Responsibility_Report.txt,"xpected impact where no immediate action is required)
More specifically, Baxter’s approach to addressing climate-related risks includes the following.
Global facilities: Baxter’s business segments lead systematic risk-based mitigation planning for the company’s facilities, including for risks related to climate change such
as natural disasters, including hurricanes. Business continuity plans, developed for all facilities based on an assessment of local and other risks, include steps to be taken
during an event and those needed for recovery, such as employee protection planning and communications planning. These plans are developed by a core team of multiple"
2023_Baxter_Corporate_Responsibility_Report.txt,"lassify or
3 Parametric release helps demonstrate that our sterile products maintain high quality standards throughout the entire manufacturing process. We use this report injuries by gender. Supervised contracted employees are included in the injury statistics reported and are not tracked separately. Independent
program to get products to patients faster while assuring the highest quality. contractors are not included in Baxter’s injury data, because they are supervised by other organizations.
Achieve Carbon Neutrality for Direct Operations by 2040 21 Major incidents are defined as those that result in death of a Baxter employee, contractor or visitor associated with work being performed at a Baxter"
2023_Baxter_Corporate_Responsibility_Report.txt,"ted employees are included in the injury statistics reported and are not tracked separately. Independent
program to get products to patients faster while assuring the highest quality. contractors are not included in Baxter’s injury data, because they are supervised by other organizations.
Achieve Carbon Neutrality for Direct Operations by 2040 21 Major incidents are defined as those that result in death of a Baxter employee, contractor or visitor associated with work being performed at a Baxter
facility, or are directly caused by visiting a Baxter facility, or associated with work or travel activities while a Baxter employee is away on company"
2023_Baxter_Corporate_Responsibility_Report.txt,"ludes COVID-19
Low-Med: Between 10% and 20% of the water available to agricultural, domestic and industrial users is withdrawn annually. cases. Public health guidance varies around the world concerning isolation and quarantine days for COVID-19. Probable work-related COVID-19 cases
Med-High: Between 20% and 40% of the water available to agricultural, domestic and industrial users is withdrawn annually. average 10 days lost per CDC guidance and account for days away from work due to the illness.
High: Between 40% and 80% of the water available to agricultural, domestic and industrial users is withdrawn annually. 39 Work-related injuries or illnesses that cause an employee to lose at least one full day after the date of the incident."
2023_Baxter_Corporate_Responsibility_Report.txt,"0% of the water available to agricultural, domestic and industrial users is withdrawn annually. 40 The number of days lost (including weekends and holidays) recommended by the most authoritative physician’s opinion due to work-related injuries or
18 Estimated total water pollutant levels for treated wastewater discharged directly into waterways, for the six Baxter sites that have direct discharges. BOD illnesses. We do not count the date of injury and date of return to full duty as lost days.
5
refers to five-day biological oxygen demand; COD refers to chemical oxygen demand; TSS refers to total suspended solids. When actual performance data 41 The number of days recommended by the most authoritative physician’s opinion that an employee or supervised contractor is unable to work full duty"
2023_Baxter_Corporate_Responsibility_Report.txt,"ndnote 4 to the left for detail.
2
53 Scores indicate the percentage of survey participants who responded favorably to statements related to each of the categories listed. Baxter did not
administer a Best Place to Work survey in 2023 due to large-scale organizational changes. Engagement and Inclusion questions were added to the 2023 FACILITIES WITH ISO 14001, ISO 45001, ISO 50001 AND GREEN BUILDING CERTIFICATIONS
Manager Effectiveness survey administered in November 2023.
1 As of Dec. 31, 2023.
54 This data includes training hours for employees and contractors. It does not represent all employee and contractor training and development but does"
2023_Baxter_Corporate_Responsibility_Report.txt,"ers,
Baxter’s Corporate Responsibility Council. For example, the strategic priorities in 2023 included: Visit Baxter’s website for information
and, beginning in February 2023, the CHC Committee and links related to our corporate
• Patient safety and quality, including product safety and
assumed responsibility for certain human capital CORPORATE RESPONSIBILITY COUNCIL governance practices, including:
quality systems
management matters. The QRC Committee oversees
• Corporate Governance Guidelines
issues related to environmental, health and employee Baxter’s Corporate Responsibility Council is composed of • Best place to work, including diversity in the workforce,"
2023_Baxter_Corporate_Responsibility_Report.txt,"Corps and the UNICEF USA Every
The Foundation makes long-term investments in these trends and to formulate mitigation strategies, which are the Baxter network to drive improvement and engage
Child Fund. During the year, Baxter provided partners
areas through its Signature Partnerships worldwide. shared broadly across the organization. operational leaders in an effort to reduce injury and
with support in response to earthquakes in Morocco,
illness rates and improve workplace safety performance.
The Foundation also supports and amplifies the giving Turkey and Syria, flooding in Libya and wildfires In 2023, we continued engaging our operational workforce"
2023_Baxter_Corporate_Responsibility_Report.txt,"for additional detail.)
PERFORMANCE PERFORMANCE
As of Dec. 31, 2023, 37% of people in leadership roles at Baxter globally were women, As of Dec. 31, 2023, 23% of people in leadership roles at Baxter in the United States were
up from 35% in 2022. ethnic minorities, up from 22% in 2022.
APPROACH AND PROGRESS
Diversity metrics and goals: One critical way Baxter’s Business Resource Groups play an important
Baxter supports DE&I is through a holistic and role in strengthening employee engagement and
comprehensive analysis of workforce diversity advancing a culture that continues to make a"
2023_Baxter_Corporate_Responsibility_Report.txt,"ity, equity and inclusion (DE&I) across all of diverse leaders from across Baxter fosters relationships with small and diverse suppliers
the rights of our employees, our suppliers’ workers, aspects of our business. We focus on four strategic pillars: understanding and engagement and champions as we strive to increase the diversity of our
our customers and the patients who rely on our products. change by listening, building awareness, advocating supplier base. In 2023, we spent $563 million with
Workforce: Increasing the diversity of our workforce"
2023_Baxter_Corporate_Responsibility_Report.txt,"ngagement and compliance at large. Includes compliance with regulations, including those related to ESG, trade, government contracting, Food
and Drug Administration (FDA), state and local, etc. Learn more.
Business Model Innovation Ability to meet new market demands and access new customer segments, as well as long-term business model planning and responsiveness to resource and climate
and Resilience constraints. Includes circular economy, cradle to cradle and zero waste frameworks. Learn more.
Diversity, Equity and Inclusion Efforts to diversify workforce, provide equal access to opportunity and create a sense of belonging. Learn more."
2023_Baxter_Corporate_Responsibility_Report.txt,"Disposal 2.3% 5.6% 9.2% Products Tested (cumulative) 173 539 583 Other31 2.1% 1.8% 2.1%
Electronic Equipment Recovered by Vendors in the EU on Baxter’s 110 83 127 Parts Tested (cumulative) 16,500+ 25,300+ 30,700+ Manager (as a % of total, U.S. and Puerto Rico only)
Behalf25 (metric tons)
Asian 14.1% 12.7% 13.2%
Increase Representation of Women and Ethnic Minorities in Leadership Roles3
PVC and Aluminum Recycling Programs for Hospitals and Dialysis Clinics26
Black/African American 3.9% 3.7% 3.5%
Australia Global Workforce by Gender (as a % of total)"
2023_Baxter_Corporate_Responsibility_Report.txt,"rican 5.8% 11.6% 11.4%
Participating Hospitals – 23 30 Hispanic/Latino 15.3% 19.7% 21.3%
Representation of Women by Job Level (as a % of total)
Aluminum Bottles Recycled (metric tons) – 0.2 0.1 White 68.0% 59.9% 57.6%
Vice President and Above 31.6% 31.3% 34.9%
Participating Hospitals – 4 5 Other31 2.4% 2.3% 2.6%
Director 37.1% 36.1% 37.4%
Colombia
Manager 42.1% 40.4% 40.2% See the Baxter 2021 Employer Information Report (EEO-1), Baxter 2022 EEO-1 Report
PVC Recycled (metric tons) 69.4 44.5 69.2
Professional30 47.8% 48.3% 48.0% and Baxter 2023 EEO-1 Report for additional workforce diversity data."
2023_Baxter_Corporate_Responsibility_Report.txt,"0.95 $1.25 Direct: Jobs 1,190 1,729 2,027
Punctures 7% 8% 13%
Scholarships $0.47 $0.47 $0.60 Estimated Indirect and Induced: Economic Output ($ millions) $180 $327 $359
Struck by Object 12% 15% 7%
Prize Programs $0.13 $0.33 $0.31 Estimated Indirect and Induced: Employee Income ($ millions) $68 $117 $127
Slips, Trips and Falls 24% 24% 26%
Outside the United States $0.56 $0.42 $0.41 Caught In, On or Between 7% 12% 14% Estimated Indirect and Induced: Jobs 1,255 1,744 1,915
Grants $0.24 $0.08 $0.00
Forklifts and Other Vehicles 2% 3% 3% Additional Workforce Disclosures3"
2023_Baxter_Corporate_Responsibility_Report.txt,"Indirect and Induced: Economic Output ($ millions) $180 $327 $359
Struck by Object 12% 15% 7%
Prize Programs $0.13 $0.33 $0.31 Estimated Indirect and Induced: Employee Income ($ millions) $68 $117 $127
Slips, Trips and Falls 24% 24% 26%
Outside the United States $0.56 $0.42 $0.41 Caught In, On or Between 7% 12% 14% Estimated Indirect and Induced: Jobs 1,255 1,744 1,915
Grants $0.24 $0.08 $0.00
Forklifts and Other Vehicles 2% 3% 3% Additional Workforce Disclosures3
Scholarships $0.32 $0.34 $0.41
Other 8% 11% 12% Global Workforce by Job Level (as a % of total)"
2023_Baxter_Corporate_Responsibility_Report.txt,"ed a Personal Wellness Profile43 (%) 32% 27% 22% Director 1.7% 1.7% 1.7%
Value of Employee Volunteer Hours36 ($) $659,000 $534,000 $459,000 Virtual Sessions Held Related to Monthly Wellness Days – 48 42 Manager 9.2% 9.8% 9.8%
Facilities That Took Part in Healthy Eating Month (%) 92% 92% 95% Professional30 26.1% 27.2% 27.2%
Achieve Top Quartile Workplace Safety Performance3, 37
Smoke-Free Campuses44 (%) 100% 99% 99% Technical/Clerical52 62.8% 61.0% 61.1%
Recordable Incident Rate38 0.33 0.40 0.35
Employees Worldwide Who Received Free Seasonal Flu Vaccinations45 12,000 10,000 8,300 Global Workforce by Region (as a % of total)"
2024 Sustainability Report Publish.txt,"er positioned today than ever, and we are focused on long-term
success. We will continue to work hard to deliver the results our stakeholders have come to expect
from Extra Space Storage as we move forward in excellence in 2024 and beyond.
JOE MARGOLIS
CEO, EXTRA SPACE STORAGE
1SUSTAINABILITY
HIGHLIGHTS
74 GRESB SCORE
A Grade GRESB Public Disclosure Rating &
46.3 GWhs
of Solar Production
79%
Less Carbon Emissions than the Real Estate Sector Average
$4.9 MILLION
in HVAC Retrofitting Projects
79%
Employee Engagement Score"
2024 Sustainability Report Publish.txt,"se solar projects generate 6.5-megawatts that will
power over 1,400 nearby homes.
8SOCIAL
REPORT
Our greatest asset is our people. We strongly believe in training and retaining talented employees and
having management at all levels engage with our employees, our customers, our board, and other
stakeholders. At Extra Space Storage, we believe that if we take care of our employees, they will take
care of our customers, our facilities, and our communities. We take care of our employees by focusing
on employee engagement, learning and development, wellness, safety, diversity, equity, and inclusion."
2024 Sustainability Report Publish.txt,"2
Solar Builder: Solar Project of the Year
2020
Glassdoor: Best Places to Work
2020
Forbes: America’s Best Employers for Diversity
2019
Glassdoor: Top CEO
10SOCIAL
REPORT
DIVERSITY, EQUITY, & INCLUSION
At Extra Space Storage, our commitment to diversity, equity, and inclusion isn't just a goal—it's a
fundamental part of who we are. We understand that our vision for a better tomorrow can only be
achieved by fostering a workplace culture that respects and celebrates the unique attributes of every
individual, whether they're an employee, a customer, an investor, or a member of the community we"
2024 Sustainability Report Publish.txt,"butes of every
individual, whether they're an employee, a customer, an investor, or a member of the community we
serve.
Extra Space has had a formalized Diversity and Inclusion commitment and program since 2018. The
program is led by a committee of Extra Space team members within the organization who are
passionate about DEI in the workplace. Since the program’s founding, the committee has focused its
efforts on company self-evaluations, DEI education and training, community social involvement,
employee resource groups (ERGs), and more."
2024 Sustainability Report Publish.txt,"ere promoted
to District Team Lead, and 16 District Team Leads were promoted to District Manager positions.
100% OF EMPLOYEES
RECEIVED TRAINING IN 2023
123,000+ 47,000+
total hours of training companywide additional total training hours from
July - December for Life Storage New Hires
82 HOURS
98 HOURS
of training on average for operations
new hires of training on average for call-center
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee"
2024 Sustainability Report Publish.txt,"trict Manager positions.
100% OF EMPLOYEES
RECEIVED TRAINING IN 2023
123,000+ 47,000+
total hours of training companywide additional total training hours from
July - December for Life Storage New Hires
82 HOURS
98 HOURS
of training on average for operations
new hires of training on average for call-center
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT"
2024 Sustainability Report Publish.txt,"ions.
100% OF EMPLOYEES
RECEIVED TRAINING IN 2023
123,000+ 47,000+
total hours of training companywide additional total training hours from
July - December for Life Storage New Hires
82 HOURS
98 HOURS
of training on average for operations
new hires of training on average for call-center
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements"
2024 Sustainability Report Publish.txt,"anywide additional total training hours from
July - December for Life Storage New Hires
82 HOURS
98 HOURS
of training on average for operations
new hires of training on average for call-center
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements
where needed. We conduct an annual, anonymous employee engagement survey of all team members"
2024 Sustainability Report Publish.txt,"URS
98 HOURS
of training on average for operations
new hires of training on average for call-center
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements
where needed. We conduct an annual, anonymous employee engagement survey of all team members
through an independent third party that seeks feedback regarding employee satisfaction, employee"
2024 Sustainability Report Publish.txt,"er
(LSI transition excluded) new hires
(LSI transition excluded)
95%
16 HOURS
of employees received ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements
where needed. We conduct an annual, anonymous employee engagement survey of all team members
through an independent third party that seeks feedback regarding employee satisfaction, employee
views of management, inclusion, and numerous other categories of employee engagement. In our 2023"
2024 Sustainability Report Publish.txt,"d ESG training
average of training per employee
(i.e. code of conduct, DEI, etc…)
15SOCIAL
REPORT
EMPLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements
where needed. We conduct an annual, anonymous employee engagement survey of all team members
through an independent third party that seeks feedback regarding employee satisfaction, employee
views of management, inclusion, and numerous other categories of employee engagement. In our 2023
employee engagement survey, we had a participation rate of 95%, with an employee satisfaction score"
2024 Sustainability Report Publish.txt,"PLOYEE SENTIMENT
Extra Space Storage is committed to listening and using employee feedback to make improvements
where needed. We conduct an annual, anonymous employee engagement survey of all team members
through an independent third party that seeks feedback regarding employee satisfaction, employee
views of management, inclusion, and numerous other categories of employee engagement. In our 2023
employee engagement survey, we had a participation rate of 95%, with an employee satisfaction score
of 79% and an inclusion score of 81%. Overall, our employee satisfaction score was 6% higher than the"
2024 Sustainability Report Publish.txt,"egories of employee engagement. In our 2023
employee engagement survey, we had a participation rate of 95%, with an employee satisfaction score
of 79% and an inclusion score of 81%. Overall, our employee satisfaction score was 6% higher than the
US Overall Average, showing that Extra Space employees are engaged in their work. We regularly
revise practices and policies based on feedback received through the annual engagement survey, so
our employees know we are listening and take their feedback.
2023 Employee Satisfaction Employee Satisfaction Score"
2024 Sustainability Report Publish.txt,"ore of 81%. Overall, our employee satisfaction score was 6% higher than the
US Overall Average, showing that Extra Space employees are engaged in their work. We regularly
revise practices and policies based on feedback received through the annual engagement survey, so
our employees know we are listening and take their feedback.
2023 Employee Satisfaction Employee Satisfaction Score
Inclusion Score 81%
79%
Equip Factor (feel equipped to do their job) 85%
Manager Effectiveness 83%
16SOCIAL
REPORT
EMPLOYEE WELLNESS"
2024 Sustainability Report Publish.txt,"revise practices and policies based on feedback received through the annual engagement survey, so
our employees know we are listening and take their feedback.
2023 Employee Satisfaction Employee Satisfaction Score
Inclusion Score 81%
79%
Equip Factor (feel equipped to do their job) 85%
Manager Effectiveness 83%
16SOCIAL
REPORT
EMPLOYEE WELLNESS
We believe in cultivating a workplace atmosphere that promotes wellness, healthy practices, and a
positive work-life balance.
Wellness benefits include:
• Employee Assistance Program (EAP)"
2024 Sustainability Report Publish.txt,"cultivating a workplace atmosphere that promotes wellness, healthy practices, and a
positive work-life balance.
Wellness benefits include:
• Employee Assistance Program (EAP)
• Flexible work schedules
• Competitive health benefits
• Generous paid-time-off benefits
• Paid parental leave policy
• Generous bereavement policy
• Annual FIT Challenge that rewards employees for meeting exercise goals
• Reimbursement program for exercise-related purchases
• Smoking cessation program
• Health screenings
• Extensive employee discount program"
2024 Sustainability Report Publish.txt,"• Competitive health benefits
• Generous paid-time-off benefits
• Paid parental leave policy
• Generous bereavement policy
• Annual FIT Challenge that rewards employees for meeting exercise goals
• Reimbursement program for exercise-related purchases
• Smoking cessation program
• Health screenings
• Extensive employee discount program
• Reduced medical insurance premium with participation in the Extra Space Wellness Program
• Monetary incentives for participating in the Wellness Program rewards
• Building improvements to increase the level of natural light for all employee workspaces"
2024 Sustainability Report Publish.txt,"our efforts pay off. These scores aggregate feedback from our three brands, Extra
Space Storage, Life Storage, and Storage Express, which shows that customers receive a consistent
experience regardless of where they rent. We are committed to quality and service across the board.
2023 Customer Satisfaction Net Promoter Score
New Customers 95.2%
57.5
Existing Customers 86.7%
Move-out Customers 90.5%
Our store managers’ incentive program includes a Customer Experience or “CX Score” category, that
ties employee bonuses directly to customer service metrics, incentivizing taking care of customers. The"
2024 Sustainability Report Publish.txt,"cess is mutually dependent with that of the communities we operate, and
we are proud to be a part of local communities in 42 states, and Washington, D.C. Our community
impact focuses on creating quality employment, addressing community needs and interests, building
strong and positive relationships with our community partners, and providing economic opportunities
through asset-building and workforce development.
We have programs in place to encourage and empower team members to give back to our
communities through volunteerism, charitable giving, and community-centric employee engagement."
2024 Sustainability Report Publish.txt,"r
communities through volunteerism, charitable giving, and community-centric employee engagement.
Corporate employees receive paid volunteer time off (VTO) to volunteer for causes that are important to
them. We have a companywide volunteer recognition program where we highlight our employees for
their dedication to making their communities a better place by rewarding them with a personal bonus
and donation to the charity they volunteered with. In addition, we have other initiatives that empower
our team to engage with the community such as an employer donation matching program, employee"
2024 Sustainability Report Publish.txt,"emain much lower than most asset classes. To
address these risks, we continue to monitor utility consumption and emissions, and implement changes
to reduce emissions, primarily through lighting retrofits, our solar program, and the installation of higher
efficiency building materials and HVAC systems.
2774 GRESB SCORE
A Grade GRESB Public Disclosure Rating &
46.3 GWhs
of Solar Production
79%
Less Carbon Emissions than the Real Estate Sector Average
$4.9 MILLION
in HVAC Retrofitting Projects
79%
Employee Engagement Score"
2024 Sustainability Report Publish.txt,"r our properties, which are
evaluated annually.
Percentage of Portfolio with Significant to High Risk From Extreme Weather Events
6.1% 15.1% 0.3% 19.1% 8.3% 47.7% 1.2%
Flood Seismic Tsunami Wind Hail Tornado Wildfire
*Data coverage 100% of REIT sites, 96% of JV sites, and 34% of third-party owned site
2874 GRESB SCORE
A Grade GRESB Public Disclosure Rating &
46.3 GWhs
of Solar Production
79%
Less Carbon Emissions than the Real Estate Sector Average
$4.9 MILLION
in HVAC Retrofitting Projects
79%
Employee Engagement Score"
2024 Sustainability Report Publish.txt,"D!
Energy energy generation across the
Generation portfolio by 2025 using 2018 116% increase over baseline
as a baseline
GhG Emissions 26% reduction in like-for-like
IN PROGRESS
(Scope 1 & 2) GhG Emissions by 2025
using 2019 as a baseline.* 24.56% reduction from baseline
*GhG emissions target is based on SBTi 1.5C scenario criteria. The company has not
submitted a target for validation as of the date of this report.
30ESG
TARGETS
UN Sustainable
Progress Initiative Goal Progress
Development Goal
Employee Health Maintain Health and"
2024 Sustainability Report Publish.txt,"over baseline
as a baseline
GhG Emissions 26% reduction in like-for-like
IN PROGRESS
(Scope 1 & 2) GhG Emissions by 2025
using 2019 as a baseline.* 24.56% reduction from baseline
*GhG emissions target is based on SBTi 1.5C scenario criteria. The company has not
submitted a target for validation as of the date of this report.
30ESG
TARGETS
UN Sustainable
Progress Initiative Goal Progress
Development Goal
Employee Health Maintain Health and
ONGOING
& Wellness Wellness Benefits above
peer average
Gender Diversity Employee Gender Balance"
2024 Sustainability Report Publish.txt,"of the date of this report.
30ESG
TARGETS
UN Sustainable
Progress Initiative Goal Progress
Development Goal
Employee Health Maintain Health and
ONGOING
& Wellness Wellness Benefits above
peer average
Gender Diversity Employee Gender Balance
ACHIEVED!
& Inclusion with over 20% of senior
leadership identifying as
women
Learning & Create opportunities
ONGOING
Development internally and externally for
Opportunities employees to gain additional Robust internal L&D
education programming is available
Employee Maintain over 80% Employee"
2024 Sustainability Report Publish.txt,"pact,
believing that our core values extend beyond business transactions and into the communities where we
serve. We recognize our success is mutually dependent with that of the communities we operate, and
we are proud to be a part of local communities in 42 states, and Washington, D.C. Our community
impact focuses on creating quality employment, addressing community needs and interests, building
strong and positive relationships with our community partners, and providing economic opportunities
through asset-building and workforce development."
2024-esg-report-full-res-final-fastenal.txt,"ing
308-1 Supplier Environmental Assessment Supplier Code of Conduct
environmental criteria
Occupational Health and Safety 2018
403-1 Occupational Health and Safety Occupational health and safety management system ISO 45001 Certificate
Hazard identification, risk assessment, and incident
403-2 Occupational Health and Safety Empowering People: Workplace Health and Safety
investigation
403-3 Occupational Health and Safety Occupational health services Empowering People: Workplace Health and Safety
Worker participation, consultation, and"
2024-esg-report-full-res-final-fastenal.txt,"ional health and safety management system ISO 45001 Certificate
Hazard identification, risk assessment, and incident
403-2 Occupational Health and Safety Empowering People: Workplace Health and Safety
investigation
403-3 Occupational Health and Safety Occupational health services Empowering People: Workplace Health and Safety
Worker participation, consultation, and
403-4 Occupational Health and Safety Empowering People: Workplace Health and Safety
communication on occupational health and safety
403-5 Occupational Health and Safety Worker training on occupational health and safety Empowering People: Workplace Health and Safety"
2024-esg-report-full-res-final-fastenal.txt,"l Health and Safety Empowering People: Workplace Health and Safety
investigation
403-3 Occupational Health and Safety Occupational health services Empowering People: Workplace Health and Safety
Worker participation, consultation, and
403-4 Occupational Health and Safety Empowering People: Workplace Health and Safety
communication on occupational health and safety
403-5 Occupational Health and Safety Worker training on occupational health and safety Empowering People: Workplace Health and Safety
403-6 Occupational Health and Safety Promotion of worker health Empowering People: Workplace Health and Safety"
2024-esg-report-full-res-final-fastenal.txt,"g Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
ESG Strategy and Vision
Our ESG Vision
As a catalyst for innovation and positive change, we strive to provide exceptional value to our customers by empowering people, preserving our world,
and serving as a trusted supply chain partner.
Strategic Objectives Relevant Topics
We foster a safe and welcoming workplace
for all, prioritize employee development,"
2024-esg-report-full-res-final-fastenal.txt,"ESG Report
Journey People Our World Trusted Partner
A Letter from our ESG Strategy Fastenal at
Who We Are
President and CEO and Vision a Glance
ESG Strategy and Vision
Our ESG Vision
As a catalyst for innovation and positive change, we strive to provide exceptional value to our customers by empowering people, preserving our world,
and serving as a trusted supply chain partner.
Strategic Objectives Relevant Topics
We foster a safe and welcoming workplace
for all, prioritize employee development,
Empowering • Employee safety/wellbeing"
2024-esg-report-full-res-final-fastenal.txt,"in reviews.
Supply Chain Security Policy
As both an importer and exporter, Fastenal has been a member of the United States Customs and Border Protection
Agency’s Customs Trade Partnership Against Terrorism (CTPAT) program since 2009. This supply chain security
partnership program is designed to secure and facilitate the movement of legitimate international trade and improve
security throughout the supply chain, from the point of cargo origin to the final import destination. The program provides
a foundation for Fastenal’s risk-based approach to supply chain security. It guides our employee training curriculums,"
2024-esg-report-full-res-final-fastenal.txt,"to become, and maintain good standing as, a supplier to Fastenal of any supplied material
or service. We evaluate suppliers’ compliance with these standards in determining whether to grant or continue preferred status. Suppliers that do not
comply with our code of conduct may be disqualified from preferred status and/or have their business relationship with Fastenal terminated. To learn
about our supplier terms and code of conduct, visit Fastenal’s Legal Information page.
Policies and Trainings
New employee orientation involves a review and acceptance of our policies and procedures guide and our standards of conduct, which include applicable"
2024-esg-report-full-res-final-fastenal.txt,"rred status and/or have their business relationship with Fastenal terminated. To learn
about our supplier terms and code of conduct, visit Fastenal’s Legal Information page.
Policies and Trainings
New employee orientation involves a review and acceptance of our policies and procedures guide and our standards of conduct, which include applicable
policies and expectations regarding human rights, business ethics, anti-bribery, anti-corruption, cybersecurity, workplace harassment, unconscious bias,
and employee health and safety. The standards of conduct and applicable policies are reinforced for hiring managers through additional trainings within"
2024-esg-report-full-res-final-fastenal.txt,"bias,
and employee health and safety. The standards of conduct and applicable policies are reinforced for hiring managers through additional trainings within
our Leadership Training Plan, a manager-focused curriculum developed by our internal training department, the Fastenal School of Business. Managers
are automatically enrolled in this curriculum, which includes trainings on coaching, business ethics, recruiting, and other topics related to fair and effective
leadership.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development through the Fastenal School"
2024-esg-report-full-res-final-fastenal.txt,"s within
our Leadership Training Plan, a manager-focused curriculum developed by our internal training department, the Fastenal School of Business. Managers
are automatically enrolled in this curriculum, which includes trainings on coaching, business ethics, recruiting, and other topics related to fair and effective
leadership.
Compliance Trainings
As part of our people-centered culture, Fastenal invests in comprehensive, career-long employee training and development through the Fastenal School
of Business, including training focused on the environment, ethics, and labor and human rights. Below is a summary of employee participation in"
2024-esg-report-full-res-final-fastenal.txt,"ople and
serves as a fitting lead-in to the social Find great Invite them
1 2
aspects of our ESG program. Because people to join
we value people (as unique human
beings, not just human capital), we
prioritize safety, we foster a culture of
equity and respect, and we strive to
improve our communities. Because
Promote Challenge them to
we believe in human potential (versus 6 3
from within teach, learn, and be
fixed talents), we invest in career-
willing to change
long learning resources for every
employee. We empower employees"
2024-esg-report-full-res-final-fastenal.txt,"vide useful context for our workforce recruiting pool, composition, and trends.
In reviewing the table, a few trends stand out. First, following a steady rise from
U.S. Data (2013–2023)
2013 to 2019, the proportion of women in our workforce has declined slightly in
Minority each of the past four years (starting in 2020, a year of sweeping social disruption).
Year Males White Minority Females White Minority
Total
It has been a frustrating trend, but we’re taking steps to regain our momentum. For
2023 76.0% 58.8% 17.2% 24.0% 17.6% 6.4% 23.6% example, we’ve made family-friendly improvements to our U.S. employee benefits"
2024-esg-report-full-res-final-fastenal.txt,"and effective leadership. It includes our flagship LDR450:
Leadership Enhancement Program (which covers topics like dilemma
management, leader influence, and emotional intelligence) as well as
Training & Development our long-standing leadership course titled LDR210: Coaching.
In the third quarter of 2023, two new leadership courses were
Fastenal School of Business introduced. The first course is LDR410: Leading Talent Planning and
Development, which focuses on talent planning, assessing future
Fastenal continues to invest in employee training and development"
2024-esg-report-full-res-final-fastenal.txt,"ng Talent Planning and
Development, which focuses on talent planning, assessing future
Fastenal continues to invest in employee training and development
potential, succession planning, collaborating on individual development
through our corporate university, the Fastenal School of Business (FSB).
plans, and having development conversations to build a strong
FSB’s professional staff focuses on course research, design, instruction,
future. The second course, LDR209: Mentoring Practices for Shared
and employee advising to continually develop, maintain, and deliver"
2024-esg-report-full-res-final-fastenal.txt,"leadership, products, distribution, human
resources, and safety. We also encourage employees to participate in
Measuring Training Effectiveness
additional training for specialized or technical areas outside of what FSB
offers. In 2023, employees completed more than 874,000 FSB trainings As we strive to consistently develop and deliver effective, efficient,
(in addition to outside trainings). This involved, on average, 25 hours of and engaging training, it’s important that we methodically assess
training per full-time employee and 23 hours of training per part-time our training to determine if we’re meeting that goal and uncover"
2024-esg-report-full-res-final-fastenal.txt,"iveness
additional training for specialized or technical areas outside of what FSB
offers. In 2023, employees completed more than 874,000 FSB trainings As we strive to consistently develop and deliver effective, efficient,
(in addition to outside trainings). This involved, on average, 25 hours of and engaging training, it’s important that we methodically assess
training per full-time employee and 23 hours of training per part-time our training to determine if we’re meeting that goal and uncover
employee during the year. opportunities for improvement. For each training, we use several"
2024-esg-report-full-res-final-fastenal.txt,"In 2023, employees completed more than 874,000 FSB trainings As we strive to consistently develop and deliver effective, efficient,
(in addition to outside trainings). This involved, on average, 25 hours of and engaging training, it’s important that we methodically assess
training per full-time employee and 23 hours of training per part-time our training to determine if we’re meeting that goal and uncover
employee during the year. opportunities for improvement. For each training, we use several
methods to gauge employee knowledge and skill progression. These"
2024-esg-report-full-res-final-fastenal.txt,"current roles and to prepare for future roles. and valuable to our employees.
2200Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Workplace Health & Safety
Our employees continue to distinguish Fastenal as a leader in workplace health and safety. We continually encourage safety participation through
new-employee trainings and ongoing coaching, audits, inspections, risk assessments, safety committee meetings, and first-responder programs. In"
2024-esg-report-full-res-final-fastenal.txt,"ivities, an increase of 7% compared to 2022. In addition to engaging 23,000-plus employees
across the organization, our environmental health and safety (EHS) & sustainability team continually strives to reduce risk by improving facility
conditions and operational processes. The high-level goal is to reduce our total recordable incident rate (TRIR) by 5% annually.
Branch & Onsite Programs
Our network of more than 3,400 in-market operating units continues to be a key focus of our safety programs.
Employee onboarding, a 90-day new hire program, leadership development, and facility condition assessments"
2024-esg-report-full-res-final-fastenal.txt,"ization, our environmental health and safety (EHS) & sustainability team continually strives to reduce risk by improving facility
conditions and operational processes. The high-level goal is to reduce our total recordable incident rate (TRIR) by 5% annually.
Branch & Onsite Programs
Our network of more than 3,400 in-market operating units continues to be a key focus of our safety programs.
Employee onboarding, a 90-day new hire program, leadership development, and facility condition assessments
all play a role in instituting safe standards and practices. Through our onsite employee safety program, we strive"
2024-esg-report-full-res-final-fastenal.txt,"afety programs.
Employee onboarding, a 90-day new hire program, leadership development, and facility condition assessments
all play a role in instituting safe standards and practices. Through our onsite employee safety program, we strive
to meet customer expectations and vetting requirements, which can include working with third-party verifiers to
develop individual risk site assessments and site safety plans to minimize safety risks related to our employees.
Operations & Manufacturing Programs
Proactive employee engagement is the key to Fastenal’s safety culture. Programs such as job safety observations,"
2024-esg-report-full-res-final-fastenal.txt,"sessments
all play a role in instituting safe standards and practices. Through our onsite employee safety program, we strive
to meet customer expectations and vetting requirements, which can include working with third-party verifiers to
develop individual risk site assessments and site safety plans to minimize safety risks related to our employees.
Operations & Manufacturing Programs
Proactive employee engagement is the key to Fastenal’s safety culture. Programs such as job safety observations,
near-miss reporting, toolbox talks, and trainings promote employee engagement and participation. A prime"
2024-esg-report-full-res-final-fastenal.txt,"yees
(and others) on the road. In 2023, employees completed a total of 21,897 transportation safety trainings, defensive
driver trainings, and job safety observations, a 33.5% increase versus 2022.
View Our 2024 EHS Report
2211Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Health and Safety Impact
2
Our focus on employee engagement is producing"
2024-esg-report-full-res-final-fastenal.txt,"to Reducing Consumption
Remote Inventory Monitoring Access Controls
The devices are equipped with sensing technologies to Several of our devices allow organizations to set
digitally report the current inventory level in each stocking role-specific controls so their employees only have
location. This eliminates the need for Fastenal employees access to products relevant to their jobs (not to
to drive to customer sites in order to visually check all products in the device). Managers can also set
their inventory status. Further upstream, it allows our frequency limits so that, for example, an employee"
2024-esg-report-full-res-final-fastenal.txt,"st recent user, helping to prevent material waste
resulting from loss or theft. The devices can also be
Usage Traceability
integrated with a Fastenal industrial services program
Each dispensed item can be traced to a person, place, to refurbish (rather than replace) tools.
time, and cost center. This reporting fosters a culture of
accountability and illuminates opportunities to reduce
future consumption (for example, by switching to a
longer-lasting glove, or by providing additional training to
an employee who is over-using a certain tool)."
2024-esg-report-full-res-final-fastenal.txt,"ustomer needs, changes in fuel or commodity prices, product and transportation inflation, inclement weather, changes in foreign currency
exchange rates, difficulty in adapting our business model to different foreign business environments, failure to accurately predict the market potential of our business strategies,
the introduction or expansion of new business strategies, increased competition (including with respect to our FMI or Onsite operations), our ability to attract and retain employees
and increase our employee diversity demographics, weak acceptance or adoption of our FMI offering or Onsite business models, difficulty in maintaining installation quality as our"
2024-esg-report-full-res-final-fastenal.txt,"fety impacts directly linked by business Empowering People: Workplace Health and Safety
relationships
Workers covered by an occupational health and safety
403-8 Occupational Health and Safety Empowering People: Workplace Health and Safety
management system
403-9 Occupational Health and Safety Work-related injuries Empowering People: Workplace Health and Safety
403-10 Occupational Health and Safety Work-related ill health Empowering People: Workplace Health and Safety
Training and Education 2016
404-1 Training and Education Average hours of training per year per employee Empowering People: Training and Development"
2024-esg-report-full-res-final-fastenal.txt,"an occupational health and safety
403-8 Occupational Health and Safety Empowering People: Workplace Health and Safety
management system
403-9 Occupational Health and Safety Work-related injuries Empowering People: Workplace Health and Safety
403-10 Occupational Health and Safety Work-related ill health Empowering People: Workplace Health and Safety
Training and Education 2016
404-1 Training and Education Average hours of training per year per employee Empowering People: Training and Development
Programs for upgrading employee skills and transition"
2024-esg-report-full-res-final-fastenal.txt,"long with speed of onset,
likelihood, and impact. During this process, we define substantive financial or strategically impactful risks as risks which have an 2023 CDP Section C1, C2
Risk Management
inherent quantitative (financial) risk factor of 3 or higher on a 4 point scale or a quantitative and qualitative blended inherent risk of 2 10K Item 1A: Risk Factors
or higher on a 4 point scale. During our risk assessment process, we consider financial impact, shareholder value, reputational risk,
legal/regulatory risk, customer impact, employee risk, and operational risks. We then apply additional factors to quantify our residual"
2024-esg-report-full-res-final-fastenal.txt,"laws
and regulations in every country and jurisdiction in which we operate. These include
but are not limited to: antiharassment and discrimination in all aspects of employment;
employees' freedom of association and the right to collectively bargain; prohibitions
on child labor, forced labor, or any form of human trafficking; and fair wage and hours
requirements. Fastenal also expects its suppliers and vendors to comply with all
applicable laws and regulations.
Diversity, Equity, and Inclusion
The approach described on the preceding page fosters a workforce"
2024-esg-report-full-res-final-fastenal.txt,"tus with regard to public
assistance, sexual orientation, gender identity, familial status,
veteran status, or any other protected classifications.
View our Equal Employment Opportunity/Affirmative Action
Policy Statement.
1166Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Diversity Data & Reporting
As indicated in the EEO-1 data below, women and minorities constituted 24.0% and 23.6%, respectively, of our United States workforce at year-end"
2024-esg-report-full-res-final-fastenal.txt,"24 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Diversity Data & Reporting
As indicated in the EEO-1 data below, women and minorities constituted 24.0% and 23.6%, respectively, of our United States workforce at year-end
2023. Based on U.S. Bureau of Labor Statistics data, our mix of female and minority employees is generally consistent with that of the manufacturing
and construction industries, which, as our primary end markets, provide useful context for our workforce recruiting pool, composition, and trends."
2024-esg-report-full-res-final-fastenal.txt,"minorities constituted 24.0% and 23.6%, respectively, of our United States workforce at year-end
2023. Based on U.S. Bureau of Labor Statistics data, our mix of female and minority employees is generally consistent with that of the manufacturing
and construction industries, which, as our primary end markets, provide useful context for our workforce recruiting pool, composition, and trends.
In reviewing the table, a few trends stand out. First, following a steady rise from
U.S. Data (2013–2023)
2013 to 2019, the proportion of women in our workforce has declined slightly in"
2024-esg-report-full-res-final-fastenal.txt,"75.8% 60.6% 15.2% 24.2% 18.4% 5.8% 21.0%
effective January 1, 2024.) We’ve also focused our recruiting and retention efforts,
2020 75.5% 60.6% 14.8% 24.4% 18.7% 5.6% 20.4%
which includes an expansion of our recruiting team to engage with a larger talent
2019 75.4% 60.3% 15.1% 24.5% 18.8% 5.7% 20.8%
pool on the local level.
2018 76.1% 61.2% 14.8% 23.8% 18.6% 5.2% 20.0%
2017 77.2% 63.1% 14.1% 22.7% 18.0% 4.6% 18.7% Second, and on a more positive note, we saw another significant improvement in our
minority workforce composition in 2023. And third, viewed over time, there is a clear"
2024-esg-report-full-res-final-fastenal.txt,".4% 60.3% 15.1% 24.5% 18.8% 5.7% 20.8%
pool on the local level.
2018 76.1% 61.2% 14.8% 23.8% 18.6% 5.2% 20.0%
2017 77.2% 63.1% 14.1% 22.7% 18.0% 4.6% 18.7% Second, and on a more positive note, we saw another significant improvement in our
minority workforce composition in 2023. And third, viewed over time, there is a clear
2016 78.0% 64.4% 13.5% 21.9% 17.6% 4.2% 17.7%
trend toward greater diversity in our business. Our female and minority workforces
2015 78.9% 66.3% 12.6% 21.0% 17.2% 3.8% 16.4%
have grown 2.2x and 3.8x faster, respectively, than our overall U.S. workforce over"
2024-esg-report-full-res-final-fastenal.txt,"and minority workforces
2015 78.9% 66.3% 12.6% 21.0% 17.2% 3.8% 16.4%
have grown 2.2x and 3.8x faster, respectively, than our overall U.S. workforce over
2014 80.1% 68.6% 11.5% 19.8% 16.4% 3.4% 14.9%
the last ten years.
2013 81.2% 70.4% 10.8% 18.7% 15.9% 2.8% 13.6%
This progress reflects a few core trends in our business. One is our concerted effort
to standardize and improve our hiring practices (more on this to follow). Another is our ongoing geographic expansion, which has made our footprint
much less Midwest-centric over time, in turn making our U.S. workforce more reflective of the country as a whole. A third trend is our evolution from a"
2024-esg-report-full-res-final-fastenal.txt,"trends in our business. One is our concerted effort
to standardize and improve our hiring practices (more on this to follow). Another is our ongoing geographic expansion, which has made our footprint
much less Midwest-centric over time, in turn making our U.S. workforce more reflective of the country as a whole. A third trend is our evolution from a
fastener-centric distribution company to a technology-driven supply chain solutions provider, which may appeal to a more diverse applicant pool. In
light of these long-term dynamics, we expect the trend toward greater diversity in our workforce to continue over time."
2024-esg-report-full-res-final-fastenal.txt,"or Success methods include (but are not limited to) knowledge checks, simulations,
To meet the needs of employees across the planet, FSB provides training role plays, quizzes, tests, and business plans. Many of our classroom
through various delivery methods and strives to accommodate all styles trainings are followed by on-the-job assignments, which allow
of learning. That said, there is a globally consistent goal: continually employees to apply learned skills in their daily business and submit
enhance the knowledge and skills of our workforce, thus improving responses to their instructor for feedback and assessment. We also"
2024-esg-report-full-res-final-fastenal.txt,"f the spotlight. They also believed in
decentralized decision-making, which included empowering local employees to take the lead in company-sponsored community efforts. Today, this
spirit shines through in local markets across the planet where our employees contribute to their communities through volunteering and donations. To
provide resources and structure for these efforts, we're working to build a sustainable community strategy focused on the following areas.
Pillars of Community Engagement
Youth Workforce Community Veterans & First"
2024-esg-report-full-res-final-fastenal.txt,"e blood drive events. In 2023, employees used this paid-time option to contribute more
than 1,900 volunteer hours to this life-saving cause.
Akron, Ohio Bangalore, India Edwardsville, Kansas
Modesto, California Salt Lake City, Utah Winona, Minnesota
2244Our ESG Empowering Preserving Serving as a
Governance Appendix / 2024 ESG Report
Journey People Our World Trusted Partner
Empowering Human Rights Training and Workplace Health Community
Employment
People and DEI Development and Safety Engagement
Workforce Development"
2024-esg-report-full-res-final-fastenal.txt,") education program
that provides manufacturing machinist training and jobs for Native Americans in economically
disadvantaged areas of northern Minnesota. Since 2016, we have awarded $320,000 in scholarship
funds for Wells Academy, providing significant financial support for the ongoing operation of this one-
year program. Wells Academy was founded by Andy Wells, CEO and founder of Wells Technology, a
high-precision fastener manufacturer in Bemidji, Minnesota.
Connecting Students With Industry
Fastenal’s workforce development efforts including supporting school programs and events that provide"
2024-esg-report-full-res-final-fastenal.txt,"lso complete the Free
Application for Federal Student Aid (FAFSA). The program funds tuition expenses not
covered by state or federal grants and also provides additional funds for books and other
supplies. By making post-secondary education affordable for all students, the program
removes the most common barrier to attending college. It reflects our belief in people,
our focus on education, and our commitment to create opportunities for others.
Today’s Students May Be Tomorrow’s Company Leaders
The regional operation managers at our distribution centers continue to build workforce development partnerships"
2024-esg-report-full-res-final-fastenal.txt,"development partnerships
with technical colleges in their communities. A great example is our distribution center in Atlanta, Georgia, which
has developed a longstanding relationship with West Georgia Technical College. In 2023, we donated $10,000
to support the expansion of its Commercial Driver’s License (CDL) program. Fastenal proudly employs several
graduates of the program, including employees who have grown into leadership positions within our organization.
Making Learning Part of the Job
Workforce development also includes investing in our current workforce. Fastenal leadership encourages"
3m-global-impact-report-2023.txt,"lopment and
STEM investment 4.91M
1 In 2021, 3M updated the goal maturity date to 2030 from 2025. See
3M’s 2021 Global Diversity, Equity & Inclusion Report for more details. On pace – Invest $50 million to address racial training instances
2 Underrepresented groups in our 3M U.S. workforce include Black/ opportunity gaps in the U.S. through workforce
African American and Hispanic/Latino employees. Outpacing – Provide training to 5 million people
development and STEM education initiatives by the
3 3M defines underrepresented individuals in the U.S. using National globally on worker and patient safety"
3m-global-impact-report-2023.txt,"ssuring human rights, Environmental, health, and safety Drive supply chain sustainability
of employees and workplace safety, and well-being within our workplace management through targeted raw material
contractors and supply chain is derived from the 3M Code of Conduct. traceability and supplier
Human rights
We implement these programs through our global policies, performance assurance by 2025
1
management system, assessments, audits, training, and Suppliers
Provide training to 5 million people
Human rights and labor metrics tracking. 3M’s Code of Conduct globally on worker and patient safety 8.7, 8.8"
3m-global-impact-report-2023.txt,"nstitute for 10th
Supplier diversity consecutive year
3
Community health, We identify potential risks to the environment and to the Communities Invest cash and products for
safety, and well-being health and safety of our employees and communities, and education, community, and
Customer-inspired innovation
we take steps to update processes, product design, and environmental programs by 2025
2
standards to address these risks. Environmental, health, and safety
Provide training to 5 million people
Infectious disease and For the global health care industry, we take a patient- management globally on worker and patient safety"
3m-global-impact-report-2023.txt,"ects health, safety, and
Our Human Rights Policy’s clause on the freedom Slavery Statement. Although permissible hiring age
the environment. See 3M’s Respectful Work
of association states that we respect “the ability of may vary based on local laws, 3M has adopted global
Environment Principle.
employees to choose whether or not to join unions expectations regarding the hiring of minors. Even if
and engage in collective bargaining, as permitted local law permits it, 3M will not hire any employee
by applicable laws in the countries where 3M or contingent worker below the age of 16 for any"
3m-global-impact-report-2023.txt,"ly or
who may require medical treatment while traveling
at a 3M location to improve their workspace.
outside their home country.
Machine guarding
Employee health and safety
during the pandemic To help identify potential hazards related to contact
with objects and equipment in our global facilities, we
We’re committed to continuing to respond to the use a Guarding Assessment and Prioritization (GAP)
ongoing and evolving health and safety challenges tool as part of our machine guarding assessment
of the COVID-19 pandemic. 3M’s global disease process. GAP assesses worker exposure to machine"
3m-global-impact-report-2023.txt,".
employees. Each site is ultimately ranked based on the
associated with higher-risk activities that have
risk it poses to the company, and we take necessary
greater potential to result in an SIE. Each 3M site has a contractor coordinator who
steps to minimize potential risks. We especially focus
is the main 3M contact for working with contractors
SIE is broadly defined by impairment, disability, on EHS issues. We ask contractors to submit notice on bringing acquisitions into alignment with our
and other considerations. It also includes significant of worker hours and any EHS incidents experienced protocols, standards, and training."
3m-global-impact-report-2023.txt,"hts About report Innovation management | 3M 2023 Global Impact Report 103
In 3M’s integrated innovation model, the application 3M Ventures An SVC can also stem from a core purpose the
of science and engineering creates new technologies, product addresses, such as an environmental or social
As a global company with a leadership position in many
and the application of the technologies creates new challenge like improving air quality, reducing GHG
industries, we work to advance 3M’s innovation and
products. The technology foundation for this model emissions, or improving patient and worker safety in"
3m-global-impact-report-2023.txt,"and tomorrow Help our customers Reduced
while driving sustainable growth for 3M. Whether reduce their GHGs 121M
it’s technology, manufacturing, global capabilities, by 250 million metric
or our brand, we’re committed to connecting our tons of CO2 equivalent
fundamental strengths to create value for emissions through the metric tons
our customers. use of 3M products
by 2025
Our most successful
products are infused with
Our impact
Provide training to 5 million people globally on customer insights
worker and patient safety by 2025"
3m-global-impact-report-2023.txt,"and
cost of wound care by 25%. In addition, it gives us a
personal safety. We aim to equip our customers not
window into patients’ lives, yielding insights that help
only with needed products but with knowledge on
us shape future innovation.
best practices and effective application. This is in
line with our efforts to advance the UN Sustainable
3M™ Fluency Direct™ – When doctors talk into this
Development Goals (SDGs) focused on health care,
device, it translates their words into medical notes.
worker safety, and economic growth."
3m-global-impact-report-2023.txt,"and public facilities working
together to address environmental issues in the
Sagamihara area.
• Every year, 3M Sagamihara donates and distributes 3M
products at the Sagamihara Cherry Blossom Festival.
Starting in 2023, 3M Sagamihara will expand the
risk assessment process to include 3M’s Guarding
Employee food drive
Assessment and Prioritization (GAP) tool into its
collected nearly
machine guarding assessment process. This will help
the site better assess the risk level of its machines and 200
take proactive steps toward worker safety."
3m-global-impact-report-2023.txt,"onal changes Employee programs 59
GRI 403 Occupational health and safety 2018 - -
3-3 Management of material topics Environmental, health, and safety management 65
403-1 Occupational health and safety management system Environmental, health, and safety management 65
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 43
investigation
Environmental, health, and safety management 65
403-3 Occupational health services Environmental, health, and safety management 65
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 65"
3m-global-impact-report-2023.txt,"safety management 65
403-1 Occupational health and safety management system Environmental, health, and safety management 65
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 43
investigation
Environmental, health, and safety management 65
403-3 Occupational health services Environmental, health, and safety management 65
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 65
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 65"
3m-global-impact-report-2023.txt,"safety management 65
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 43
investigation
Environmental, health, and safety management 65
403-3 Occupational health services Environmental, health, and safety management 65
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 65
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 65
403-6 Promotion of worker health Environmental, health, and safety management 65"
3m-global-impact-report-2023.txt,"on Brownwood, Texas 115 About report,
Executive Officer 4 governance 37 management 101 scope, and
Leading with Sagamihara, Japan 117
boundaries 122
Gayle Schueller, Chief purpose 8 Enterprise risk 41 Customer-inspired
Ranjangaon, India 119
Sustainability Officer 4 Sustainability goals innovation 109 GRI index 126
Corporate
and progress 12
Code of Conduct 43 SASB index 140
Communities 26
Human rights 50 Assurance
Diversity, equity, statement 143
Compensation 56
and inclusion 33
Metric tables 147
Employee"
3m-global-impact-report-2023.txt,"alized populations.
4 Goal was initiated in 2019. Skills-based volunteering is primarily Learn more Learn more
delivered through the 3M Impact program. 2021 2025 goal 2015 2025 goalWho we are How we work What we create Site spotlights About report Leading with purpose | 3M 2023 Global Impact Report 15
Stakeholder engagement How we work with stakeholders
Stakeholder engagement and collaborative efforts Stakeholder How we engage More information
on our priority topics are core to how we drive our
Employees and • Respecting human rights and diversity, equity, and inclusion Employee programs"
3m-global-impact-report-2023.txt,"and use of renewables
topics from two angles, called “double materiality.” It
• Ethical and transparent business practices
assessed how environmental and social issues impact
• Chemical management2
3M’s financial performance and value, as well as how
3M’s activities impact a broad range of stakeholders. • Safety of products and services1
The materiality assessment also explored stakeholder • Health and safety of employees and contractors
perceptions of our sustainability strategy and its three
pillars: Science for Circular, Science for Climate, and 2 • Employee diversity, equity, and inclusion"
3m-global-impact-report-2023.txt,"presented 3M’s four business groups and all
• Community health, safety, and well-being1
areas of operation.
• Responsible sourcing and supplier sustainability1
Following the 2022 assessment, we analyzed the • Human rights and labor practices in the supply chain1
insights and inputs from stakeholders and developed
• R&D investment1
our Sustainability Priority Matrix. The matrix shows our
• STEM education, training, and workforce development
priority topics and demonstrates how our sustainability
goals align with the United Nations 2030 Agenda • Employee training, development, and well-being1"
3m-global-impact-report-2023.txt,"nities Invest cash and products for
safety, and well-being health and safety of our employees and communities, and education, community, and
Customer-inspired innovation
we take steps to update processes, product design, and environmental programs by 2025
2
standards to address these risks. Environmental, health, and safety
Provide training to 5 million people
Infectious disease and For the global health care industry, we take a patient- management globally on worker and patient safety
3.c, 3.8
public health issues centered approach to innovation and develop reliable, quality Employee programs by 2025"
3m-global-impact-report-2023.txt,"th, and safety
Provide training to 5 million people
Infectious disease and For the global health care industry, we take a patient- management globally on worker and patient safety
3.c, 3.8
public health issues centered approach to innovation and develop reliable, quality Employee programs by 2025
2 products and solutions. In 2020, we launched 3M Impact Innovation management Provide 300,000 work hours of
Health Care to use our health care expertise to help address
skills-based volunteerism by 3M
Employee training, health care inequities. Our partnership with Clean Air Asia"
3m-global-impact-report-2023.txt,"behaviors that foster an inclusive workplace, and COVID-19
we provide competitive benefits and recognition programs
to support employees throughout their career. Work Your Mitigating the Risk of Infectious
Way is our trust-based flexible work model that drives well- Disease Spread Through
being and productivity in ways that enable our business and Contamination Prevention
performance goals.
3M promotes a culture of health and well-being for our
employees through disease prevention programs, on-
site clinical services, employee assistance programs, and"
3m-global-impact-report-2023.txt,"ntion
performance goals.
3M promotes a culture of health and well-being for our
employees through disease prevention programs, on-
site clinical services, employee assistance programs, and
comprehensive health care benefits.Who we are How we work What we create Site spotlights About report Leading with purpose | 3M 2023 Global Impact Report 22
3M Sustainability Priority Matrix: Science for Community (cont.)
Priority topic & tier Our actions Additional information Goals & commitments Related SDG
Employee diversity, We advance meaningful actions toward a more equitable Diversity, equity, and inclusion Invest $50 million to address"
3m-global-impact-report-2023.txt,"linical services, employee assistance programs, and
comprehensive health care benefits.Who we are How we work What we create Site spotlights About report Leading with purpose | 3M 2023 Global Impact Report 22
3M Sustainability Priority Matrix: Science for Community (cont.)
Priority topic & tier Our actions Additional information Goals & commitments Related SDG
Employee diversity, We advance meaningful actions toward a more equitable Diversity, equity, and inclusion Invest $50 million to address
equity, and inclusion future for our global employee base, including training, racial opportunity gaps in the U.S."
3m-global-impact-report-2023.txt,"cs stakeholders think 3M should address. Within
the ERM process, climate change risk was previously
• Emerging issues new to 2022 include product the following Tier 2 and 3 issues were worthy of
integrated as part of several existing high-risk areas,
innovation to solve climate, health, and safety higher priority:
such as material vulnerability, product stewardship,
challenges; safety of products and services; R&D; • Biodiversity and ecosystems and operating safety, but in 2022 we added it as a
designing products with less or no waste; employee"
3m-global-impact-report-2023.txt,"al Learn more about 3M’s overall risk management in
justice and inequality; and supplier diversity • Plastic packaging and waste the Enterprise risk section and more about how
• Health and safety of employees and contractors and • Air and water quality we mitigate climate risk, including TCFD (Task
ethical business moved from Tier 2 to Tier 1 in 2022 Force on Climate-Related Financial Disclosures)
The interviewed stakeholders further suggested recommendations, in the Climate and energy section.
• Employee diversity moved from Tier 3 to Tier 2"
3m-global-impact-report-2023.txt,"munities | 3M 2023 Global Impact Report 27
As part of our Science for Community pillar of To assure our support benefits the communities being for educational experiences to gain traction. Students
3M’s Strategic Sustainability Framework, we help served, 3M and 3M Foundation provide financial need a foundation of stable housing, consistent
address social and economic disparities around support to key partners and initiatives to help evaluate nourishment, and necessary school supplies if they’re
the world. Through a variety of new and existing the outcomes of prospective grants and employee to truly benefit from learning opportunities. In 2021,"
3m-global-impact-report-2023.txt,"hts the
National Coalition of Certification Centers (NC3) – pervasiveness of health care inequities and the
3M and NC3 awarded 50 $1,000 scholarships to importance of this work.
students who participated in the NC3 National Career
Big hearts, matched
and Technical Education Letter of Intent Signing Day.
Learn more at 3M and the National Coalition of With the 3M Volunteer Match program, 3M donates
Certification Centers award national scholarships. money to eligible nonprofit organizations when a
U.S.-based 3M employee or retiree volunteers in"
3m-global-impact-report-2023.txt,"volunteer programs that promote a circularWho we are How we work What we create Site spotlights About report Communities | 3M 2023 Global Impact Report 31
Giving that starts at home Looking forward
3M amplifies employees’ philanthropic impact through
relevant matching gift programs. In the United States,
the 3M Community Giving Match and College &
We believe 3M is positioned to bring our full
University Match programs matched up to $1,000 per
capabilities to advance equity and inclusion in our
employee gift in 2022 plus an added level of matching"
3m-global-impact-report-2023.txt,"n times of need. For an example of our
efforts, see 3Mers push Ukraine giving past $2M.Who we are How we work What we create Site spotlights About report Communities | 3M 2023 Global Impact Report 32
2022 giving in review
3M and 3M Foundation work to improve lives in 3M communities with investments that
drive equity in STEM and skilled trades, volunteer activities that leverage the skills and
Total giving: 2022
talents of 3M employees, and the deployment of 3M products for social impact.
$82.1M
Advance economic equity Employee empowerment 3M product deployment"
3m-global-impact-report-2023.txt,"rning experiences, putting us well
since 2019
on track to deliver on our goal to create $1.3M
$23.9M Our employees shared their skills,
5 million learning experiences by the end
experience, and energy to make a FIRST® Robotics
of the 2025-2026 school year.
difference in our global communities. Our donation of products for
invested in education 3M Manufacturing and Academic robotics kits enhanced student
Partnership program (MAP) $3.98M total experiences.
To build a pipeline of diverse talent in
73% 27% employee contributions and $12.2M"
3m-global-impact-report-2023.txt,"rkforce2,3
definitions of diversity. 3M aims to reflect the diversity
Achieved
of our customers, suppliers, and community partners.
Increased to Increased to
100%
In addition, we’re committed to advancing equity
45.1% 9.02%
across our organization at all levels and to creating an
inclusive culture where all feel welcome.
equity
Our impact Double the representation of underrepresented
groups in management positions in our U.S.
workforce2,3
Increased to
We advance meaningful actions toward a more
equitable future for our global employee base, 6.39%"
3m-global-impact-report-2023.txt,"equity by comparing
employees in the same job category, job grade, and
location, a process that’s produced excellent results.
In 2022, we continued to have 100% gender pay equity
globally and 100% pay equity for racial/ethnic groups
in the U.S.
Learn more in the
Compensation section.Who we are How we work What we create Site spotlights About report 3M 2023 Global Impact Report 36
How
we work
Corporate governance 37
Enterprise risk 41
Corporate Code of Conduct 43
Human rights 50
Compensation 56
Employee programs 59"
3m-global-impact-report-2023.txt,"e hold all 3M employees, including supervisors,
over many decades, and no one at 3M is free to managers, and other leaders, responsible for
compromise it. knowing and following the ethical, legal, and policy
requirements that apply to their job and for reporting
any suspected violations of law or the Code of
Conduct. We expect leaders to create an inclusive
Our impact
workplace environment that encourages asking
questions and raising concerns.
Again in 2022, all over the world, we held Ethics &
Compliance Week events to further build employee"
3m-global-impact-report-2023.txt,"es 3M’s efforts to assure cover all areas of our compliance program. Recent
• A core set of business conduct principles
that we have an effective world-class compliance examples include Preventing Bribery & Corruption and
• Awareness campaigns through education, training, program — one that’s agile and anticipates changes Confidential Information & Computer Security. Each
and communication in both internal business strategy and the external course starts with a series of questions that identify
• Periodic evaluations, audits, risk assessment, and landscape. Similar business conduct committees exist the employee’s knowledge level. The employee is then"
3m-global-impact-report-2023.txt,"and the external course starts with a series of questions that identify
• Periodic evaluations, audits, risk assessment, and landscape. Similar business conduct committees exist the employee’s knowledge level. The employee is then
procedures to measure and assess the compliance at country, regional, and area levels to prioritize and presented with scenario-based questions tailored to
program’s effectiveness operationalize compliance activities. this knowledge level. To successfully complete the
course, the employee must demonstrate proficiency"
3m-global-impact-report-2023.txt,"e spotlights About report Corporate Code of Conduct | 3M 2023 Global Impact Report 45
Training enhancements receive a letter from our chief ethics & compliance Substantiated matters may result in disciplinary
officer. New in 2022, recipients also receive points actions. Discipline may take many forms consistent
Our online adaptive learning training platform
that can be redeemed through the 3M corporate with similar past violations, from warnings to
continues to be well-received by employees. By
employee recognition platform, Everyday Wins. suspensions to termination. Disciplinary actions"
3m-global-impact-report-2023.txt,"ay. At
3M, we make it clear that speaking up is the right The Ethics & Compliance Department is responsible
thing to do. The “Speak Up” poster that encompasses for reviewing every reported business conduct 3MEthics.com is a 24-hour
many of our most frequently used languages concern and deciding which require an investigation.
continues to be widely used globally. If an investigation is needed, the department assigns confidential and anonymous
an appropriate investigative resource. Investigation
Every quarter, the Ethics & Compliance Department results may indicate a need for focused employee (where permitted by local"
3m-global-impact-report-2023.txt,"in legal, audit, sales,
maintain anonymity. If the reporter expresses concern marketing, export, and global trading.
that they’re a target of retaliation, the investigations
team will start a separate investigation or take other 3M’s commitment to anti-corruption is also reflected
action to assure the reporter is protected. 3M takes a in our management of third-party intermediaries and
strong position against retaliation, which is reflected in other business partners. 3M conducts due diligence
our Non-Retaliation Policy and within 3M’s Employee reviews of our third parties based on an assessment"
3m-global-impact-report-2023.txt,"we are How we work What we create Site spotlights About report Corporate Code of Conduct | 3M 2023 Global Impact Report 47
Assessments Global Ethics &
3M’s Ethics & Compliance Department conducts “ Our commitment to unwavering integrity in all Compliance Week
t hat we do is clear and stems from the top of
periodic compliance and anti-bribery evaluations
our organization. It has been the foundation Again in 2022, all over the world, we held Ethics &
of various 3M businesses, business models, and
of the company for more than a century.” Compliance Week events to further build employee"
3m-global-impact-report-2023.txt,"rochure provides another way for 3M to
communicate with our business partners regarding
our commitment to combat global bribery.Who we are How we work What we create Site spotlights About report Corporate Code of Conduct | 3M 2023 Global Impact Report 48
Communications to support Data analysis and metrics
our employees, leaders, The Ethics & Compliance Department continues to
make strides in data science. We created enhanced
and middle management
metrics dashboards for analyzing emerging issues
We engage with senior leadership by providing across different employee populations (e.g., seniority,"
3m-global-impact-report-2023.txt,"ding conflicts of interest, retaliation, third-party
We again implemented an ethical culture survey for In 2022, we implemented enhancements to improve
risks, and managing business courtesies. We used data
3M sales and marketing teams. Through analyzing management engagement in the notification of
and collaborated with other departments to develop
the survey results, we were able to correlate the approval process, and we developed a dashboard
new tools and case studies to get information to our
frequency of manager-employee engagement to bring visibility and action to transactions that are"
3m-global-impact-report-2023.txt,"ns.
and improving controllership. We implemented a
who interact regularly with 3M business partners.
comprehensive and formalized monitoring program,
further standardizing the ways in which our third
parties are reviewed for risk. Our third-party due
diligence platform was enhanced to formalize the
documentation and review of second-tier
business partners.
We created enhanced metrics dashboards for analyzing
Finally, in 2022 we moved to a new policy
management platform that’s more user-friendly
emerging issues across different employee populations."
3m-global-impact-report-2023.txt,"isk Areas
• United Nations Convention Against Corruption
Further, the 3M Code of Conduct and its underlying
Respect for principles require compliance with all applicable laws
human rights and respect for internationally recognized human
is deeply rights in all global operations.
ingrained in
our cultureWho we are How we work What we create Site spotlights About report Human rights | 3M 2023 Global Impact Report 51
Human rights in To support this, we offer a comprehensive suite of Modern slavery
employee benefits, including options for employees to"
3m-global-impact-report-2023.txt,"ed human
is deeply rights in all global operations.
ingrained in
our cultureWho we are How we work What we create Site spotlights About report Human rights | 3M 2023 Global Impact Report 51
Human rights in To support this, we offer a comprehensive suite of Modern slavery
employee benefits, including options for employees to
the workplace Modern slavery encompasses several human rights
work remotely and flexibly. Learn more about benefits
issues including forced labor, bonded labor, child labor,
and our Work Your Way model in the Employee"
3m-global-impact-report-2023.txt,"nt for over a century and apply to all stance against these practices is robust.
our employees globally, demonstrate our commitment
Working hours and wages
to upholding human rights in the workplace: Our Modern Slavery Statement, the 3M Supplier
Not only does 3M comply with minimum wage Responsibility Code, and our labor, employment, and
• We respect the dignity and worth of all individuals
legislation globally, but we aim to exceed the legal business conduct policies all reflect our commitment
• We encourage the initiative of each employee minimum wage. Our compensation reflects our to acting ethically and with integrity in our business"
3m-global-impact-report-2023.txt,"t to collective bargaining
evident in our Human Rights Policy and Modern
activities in a way that protects health, safety, and
Our Human Rights Policy’s clause on the freedom Slavery Statement. Although permissible hiring age
the environment. See 3M’s Respectful Work
of association states that we respect “the ability of may vary based on local laws, 3M has adopted global
Environment Principle.
employees to choose whether or not to join unions expectations regarding the hiring of minors. Even if
and engage in collective bargaining, as permitted local law permits it, 3M will not hire any employee"
3m-global-impact-report-2023.txt,"te Site spotlights About report Human rights | 3M 2023 Global Impact Report 52
Forced and compulsory labor report misconduct or potential misconduct. They can
do so anonymously where local law permits.
3M complies with all applicable laws and employment
regulations and does not engage or participate in Employees also receive training around channels for
forced labor. We expect the same of all our suppliers. reporting and resolving concerns, such as:
In addition, we do not allow financial burden
• Employee’s management"
3m-global-impact-report-2023.txt,"Visit Ethics & Compliance for more information
for details. or to report a concern. More information is also in
the Corporate Code of Conduct section.
Human trafficking
Our approach to human trafficking is simple: We do
not tolerate it. We are committed to using effective 3 M prohibits retaliation against anyone
systems and controls to prevent human trafficking who, in good faith, asks a question, reports
from taking place anywhere within our business or a concern, or participates in a company
supply chains. This applies to 3M and its subsidiaries investigation. Learn more in 3M’s Employee"
3m-global-impact-report-2023.txt,"s regardless of where they’re identified within the
When employees or others have concerns related to
value chain.
human rights, labor practices, or environmental or
safety issues, we encourage them to raise questions orWho we are How we work What we create Site spotlights About report Human rights | 3M 2023 Global Impact Report 53
Potential salient risks and prevention plans Human resource assessments
and audits
We’ve proactively developed plans to prevent potential salient human rights risks.
To help protect our employees’ rights, our Employee"
3m-global-impact-report-2023.txt,"Our commitment Director and executive
compensation
Working with an independent compensation
3M creates a professional work environment that
consultant, the Nominating and Governance
promotes innovation and rewards performance.
Committee annually reviews the status of the Board of
We rely on our global compensation principles to
Directors’ compensation in relation to peer companies
provide fair and equitable pay that’s competitive in
and recommends to the Board any changes in
the current market.
compensation for non-employee directors."
3m-global-impact-report-2023.txt,"do business.Who we are How we work What we create Site spotlights About report Compensation | 3M 2023 Global Impact Report 58
Looking forward
In the year ahead, we’re looking forward to
overall good health as a company due to the
diversity of our businesses. This will support our
ability to keep providing market-competitive
pay. We’ll continue to adhere to our established
compensation principles — competitive pay,
equitable pay, transparency, and pay for
performance — as we work to maintain our
global pay equity.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 59"
3m-global-impact-report-2023.txt,"ward
In the year ahead, we’re looking forward to
overall good health as a company due to the
diversity of our businesses. This will support our
ability to keep providing market-competitive
pay. We’ll continue to adhere to our established
compensation principles — competitive pay,
equitable pay, transparency, and pay for
performance — as we work to maintain our
global pay equity.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 59
Employee programs"
3m-global-impact-report-2023.txt,".
bring innovation into their work and focus on making
an impact in the world.
In 2022, we introduced a new integrated learning and
development platform called 3M Learn. 3M Learn
replaces several disparate learning platforms and
consolidates them into one flexible central system. By
retiring many of our legacy platforms and streamlining
the experience, we’ve made it easy for employees to
access and explore personalized learning content
and resources.
We aim to have
100%
of employees engaging in
development activitiesWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 60"
3m-global-impact-report-2023.txt,"cross 46,000 learning assets and attended based development can play in helping employees
defining the hiring need to onboarding. It provides
over 25,000 in-person or virtual events in 2022 navigate our culture and environment, take advantage
consistency and transparency in the process for all
(approximately 610,000 hours of learning). of opportunities, and thrive in their career. That’s why
locations, helping 3M hire the top diverse candidates.
we offer mentorship opportunities to nearly every
In 2022, for every full-time equivalent employee, individual, from executive to entry-level. The nature of"
3m-global-impact-report-2023.txt,"arose from working in a virtual or hybrid format.
compliance training) of learning and development or cause-based. No matter what, when employees
While our flexible work options have been very
experience with a focus on experiential learning and learn from each other and share their experiences, they
popular among our employees, we’ve had to adjust
skill-building. However, the number of training hours accelerate collaboration and professional growth.
to the new environment and how it may change
and the training cost per employee are not our leading"
3m-global-impact-report-2023.txt,"hnical development and learning visit 3M’s Diversity, Equity & Inclusion (DEI) Report.
Employees
completed over 3M’s Tech Forum is a self-directed and self-organized
1M catalyst for interaction, growth, and development
among our technical community. Members benefit
from an environment where they can share research
online learning and exchange ideas on any number of topics, whether
experiences related to their role at 3M or not. Learn more about
collaboration through Tech Forum in the Innovation
management section.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 61"
3m-global-impact-report-2023.txt,"yees are on track to reach their — and
our — goals.
15% Culture
For over 70 years, 3M’s unique 15% Culture has
encouraged our people to set aside 15% of their work
time to pursue and cultivate ideas that excite them. 15%
Whether the time is used to experiment with a new
technology, form a special interest group around a
Culture gives
fresh idea, or improve a process, our 15% Culture
employees time
gives employees in all areas the space to reimagine
what’s possible. to pursue and
cultivate ideas
that excite themWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 62"
3m-global-impact-report-2023.txt,"set aside 15% of their work
time to pursue and cultivate ideas that excite them. 15%
Whether the time is used to experiment with a new
technology, form a special interest group around a
Culture gives
fresh idea, or improve a process, our 15% Culture
employees time
gives employees in all areas the space to reimagine
what’s possible. to pursue and
cultivate ideas
that excite themWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 62
Learning from listening Employee footprint Benefits to support our employees"
3m-global-impact-report-2023.txt,"gives
fresh idea, or improve a process, our 15% Culture
employees time
gives employees in all areas the space to reimagine
what’s possible. to pursue and
cultivate ideas
that excite themWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 62
Learning from listening Employee footprint Benefits to support our employees
For more than 50 years, 3M has conducted surveys to and staying power 3M offers many resources to enhance employees’
solicit employee observations, attitudes, and opinions. lives, including:"
3m-global-impact-report-2023.txt,"ves employees in all areas the space to reimagine
what’s possible. to pursue and
cultivate ideas
that excite themWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 62
Learning from listening Employee footprint Benefits to support our employees
For more than 50 years, 3M has conducted surveys to and staying power 3M offers many resources to enhance employees’
solicit employee observations, attitudes, and opinions. lives, including:
Employee headcount as of December 31, 2022,"
3m-global-impact-report-2023.txt,"agine
what’s possible. to pursue and
cultivate ideas
that excite themWho we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 62
Learning from listening Employee footprint Benefits to support our employees
For more than 50 years, 3M has conducted surveys to and staying power 3M offers many resources to enhance employees’
solicit employee observations, attitudes, and opinions. lives, including:
Employee headcount as of December 31, 2022,
Our biggest survey, the 3M Voice of Employee Survey • Medical, dental, and vision plan options"
3m-global-impact-report-2023.txt,"s to and staying power 3M offers many resources to enhance employees’
solicit employee observations, attitudes, and opinions. lives, including:
Employee headcount as of December 31, 2022,
Our biggest survey, the 3M Voice of Employee Survey • Medical, dental, and vision plan options
was approximately 92,000. See additional
(3M VoE), is conducted every year and includes all
information in our metric tables and the • Savings and retirement plans
global employees. In 2022, the response rate for the
Employee demographics tab of ESG metrics,"
3m-global-impact-report-2023.txt,"urces to enhance employees’
solicit employee observations, attitudes, and opinions. lives, including:
Employee headcount as of December 31, 2022,
Our biggest survey, the 3M Voice of Employee Survey • Medical, dental, and vision plan options
was approximately 92,000. See additional
(3M VoE), is conducted every year and includes all
information in our metric tables and the • Savings and retirement plans
global employees. In 2022, the response rate for the
Employee demographics tab of ESG metrics,
3M VoE Survey was 57%. • 3M employee stock purchase plan"
3m-global-impact-report-2023.txt,"metric tables and the • Savings and retirement plans
global employees. In 2022, the response rate for the
Employee demographics tab of ESG metrics,
3M VoE Survey was 57%. • 3M employee stock purchase plan
which also includes more detailed analysis. Visit
• 3M Healthy Living Program for wellness resources
The 3M VoE Survey approach provides a broad our Diversity, Equity & Inclusion (DEI) Report
and discounts
perspective across the enterprise. This serves as a for diversity-related demographics.
baseline from which we can regularly assess employee"
3m-global-impact-report-2023.txt,"ealthy Living Program for wellness resources
The 3M VoE Survey approach provides a broad our Diversity, Equity & Inclusion (DEI) Report
and discounts
perspective across the enterprise. This serves as a for diversity-related demographics.
baseline from which we can regularly assess employee
All regular full-time employees in the United States
Like most organizations, 3M experienced an increase
engagement and other workplace factors critical to
are eligible, as well as regular part-time employees
in our global employee-initiated turnover rate in"
3m-global-impact-report-2023.txt,"onging, and assuring
action plan to address identified issues. The process competitive pay and benefits.
Learn more at Working at 3M: Benefits.
includes supports that make it easier to bring about
3M follows all applicable local laws and regulations
successful change, such as accountability checks and
regarding notice periods in the event of business
tools for acting on the results.
operations changes.
Outside of the 3M VoE Survey process, we deploy
3M’s Human Resources (HR) Department benefits
other relevant employee surveys, often focusing on"
3m-global-impact-report-2023.txt,"em to track HR information.
major transformation initiatives, such as advancing
At every 3M site around the globe, we have instant
our company culture or reinventing performance
access to this information through our global
management.
reporting tool.
In addition to the main survey system, we have and
Highly competitive pay,
continue to use an innovative crowdsourcing platform
that enables more direct input by employees through
rewards, and services
open-ended suggestions that can be themed and
ranked by usefulness. This is a cycle of continual The more an employee contributes to 3M’s"
3m-global-impact-report-2023.txt,"nd services
open-ended suggestions that can be themed and
ranked by usefulness. This is a cycle of continual The more an employee contributes to 3M’s
improvement: We measure, assess, and adapt year success, the more they contribute to their own
after year to assure our surveys support sustainable success. We offer competitive base pay and,
corporate success. depending on the position, variable incentive pay
linked to company and individual performance.
Learn more in the Compensation section and
at Working at 3M: Your pay.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 63"
3m-global-impact-report-2023.txt,"n
are eligible for up to 20 weeks (10 weeks paid and 10
Guided by our culture and performance-focused
weeks unpaid) of parental leave. In 2022, 1,240 U.S.
approach, Work Your Way emphasizes four key pillars:
U.S. military leave
eligible employees participated, including 366 women
and 869 men. 3M strives to be a premier employer for the military • Founded in trust – Employees are empowered to
work in ways that support their role and preference
community, with paid leave benefits that reflect our
U.S. employee parental leave commitment to veterans. 3M offers up to four weeks • Built on virtual first – Virtual collaboration through"
3m-global-impact-report-2023.txt,"lity valued above location
384 female employees 366 female employees COVID-19 forever changed the way we work. It For nonproduction employees, Work Your Way
taught us that we can and need to reimagine how offers three broad options (depending on local
3M operates. We learned that a more flexible way of laws, regulations, work agreements, or other local
888 male employees 869 male employees
working is essential for 3M’s continued growth and conditions): mainly on-site, hybrid, or remote (near or
employee well-being. The result was Work Your Way, distant). This approach also empowers employees to"
3m-global-impact-report-2023.txt,"rowth and conditions): mainly on-site, hybrid, or remote (near or
employee well-being. The result was Work Your Way, distant). This approach also empowers employees to
a trust-based work model that drives well-being and structure their day in a way that balances maximum
productivity in ways that enable our business and productivity with personal preferences. Allowing 3M’s
performance goals. workforce to make choices that benefit them, their
work, their global team members, and their friends and
family makes 3M more competitive and agile.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 64"
3m-global-impact-report-2023.txt,"lexibility, including shift swapping, culture is a top priority. At its core, culture is how we
adjustable start/end times, part-time models, job do things at 3M, and it belongs to all of us equally.
rotations, flexible break times, and flexibility around As change occurs, we’re engaging our employees
vacations, volunteering, school events, etc., with some by continually broadening our listening strategies.
options varying by site and geography. We’ll continue to refine our performance approach
to improve the employee experience. And we’ll keep"
3m-global-impact-report-2023.txt,"ms.Who we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 66
Staff professional development In addition, we recognize sites that achieve sustained
periods of EHS performance excellence with our
As part of our commitment to maintain high-quality
quarterly CEO Environment, Health, and Safety
EHS professional development of our teams, the
Award, which recognizes sites that display excellence
global EHS team hosts topic-specific meetings and
in employee safety, compliance, spill prevention,"
3m-global-impact-report-2023.txt,"al Impact Report 66
Staff professional development In addition, we recognize sites that achieve sustained
periods of EHS performance excellence with our
As part of our commitment to maintain high-quality
quarterly CEO Environment, Health, and Safety
EHS professional development of our teams, the
Award, which recognizes sites that display excellence
global EHS team hosts topic-specific meetings and
in employee safety, compliance, spill prevention,
workshops where we share our knowledge and learn
employee wellness, and advancing EHS culture. Other"
3m-global-impact-report-2023.txt,"ribes our EHS Management System (EMS) framework, which providing homes for bees and bats or clearing out
commitments, including how we contribute to the provides structure and consistency for implementing non-native plants, this work to help protect local
health, safety, and well-being of our communities our programs and helps us be proactive rather wildlife and ecology reflects our larger organizational
than reactive in our environmental focus. We have commitment to improving our environmental
• 3M’s Employee Obligations and Reporting"
3m-global-impact-report-2023.txt,"leted over
retention, and record destruction. This standard
ISO 14001-certified sites account for 66.9% of transfer
assures that 3M medical information is handled 200
value of shipments (TVOS) or the total value of all
in a manner consistent with the 3M Data Privacy
shipped unfinished and finished goods.
Principle and all applicable legal requirements
environmental
site assessmentsWho we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 68
3M to exit PFAS 3M’s products, including those containing PFAS, Employee health and"
3m-global-impact-report-2023.txt,"io by the end of 2025: We have cafeterias, on-site fitness centers and medical care,
They are found in many important parts of modern already reduced our use of PFAS over the past three telehealth, adoption and foster care support, and the
life, including: years through ongoing research and development Work Your Way program, which encourages a healthy
and will continue to innovate new solutions balance between work and personal life. Learn more
• Automobiles, including electric and conventional
for customers about Work Your Way in the Employee programs"
3m-global-impact-report-2023.txt,"Impact Report 69
International travel health In 2019, we required all manufacturing sites to
complete an ergonomic footprint assessment and
We help prepare 3M employees for international
establish yearly reduction targets. In 2022, we
business travel through comprehensive travel health
eliminated over 1,200 high exposures, exceeding our
consultations that include a personal health history
internal target. Online office ergonomics training,
review, immunizations, appropriate travel medications,
available 24/7 to any employee with access to 3M’s"
3m-global-impact-report-2023.txt,"ted over 1,200 high exposures, exceeding our
consultations that include a personal health history
internal target. Online office ergonomics training,
review, immunizations, appropriate travel medications,
available 24/7 to any employee with access to 3M’s
and travel health education. We assist all employees
intranet, encourages employees working remotely or
who may require medical treatment while traveling
at a 3M location to improve their workspace.
outside their home country.
Machine guarding
Employee health and safety"
3m-global-impact-report-2023.txt,"EHS 360
assess ergonomic risk in the industrial and
called Radpro to help us maintain a global inventory of
office environment.
radiation devices and progress toward a truly global
standard.Who we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 70
Process safety that increase the risk of work-related stress and can
lead to psychological or physical harm.
3M is committed to rigorously managing the risks In 2022, of our processes involving
associated with hazardous processes, such as those 91% potential workplace With the potential to affect every employee — their"
3m-global-impact-report-2023.txt,"reemptively discover and correct potential
and measure injury and illness rates worldwide. At all
noncompliance with 3M and government
On a regular basis, the EHS&PS executive committee sites within our operational control, 3M employees
EHS requirements
reviews audit findings and the 3M Science, Technology and contingent employees are covered by our injury
• Identify and manage EHS risks & Sustainability Committee of the Board of Directors and illness recordkeeping rules. See incident rate data
• Promote an EHS culture of self-discovery and is updated on the overall status of the audit program. in our metric tables and the Employee health & safety"
3m-global-impact-report-2023.txt,"ies,
Auditor Guidelines. 3M EHS professionals are assigned understanding of the holistic system, and more
to an audit team or lead auditor to provide support on consistent reporting requirements for 3M’s
the auditing process and/or a specific subject during global operations.
the audit.Who we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 72
Significant Injuries and on 3M premises. This process includes reviewing the Incident and crisis
Events (SIE) rates contractor’s employee injury/illness rates, experience"
3m-global-impact-report-2023.txt,"tic system, and more
to an audit team or lead auditor to provide support on consistent reporting requirements for 3M’s
the auditing process and/or a specific subject during global operations.
the audit.Who we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 72
Significant Injuries and on 3M premises. This process includes reviewing the Incident and crisis
Events (SIE) rates contractor’s employee injury/illness rates, experience
management
modification rates, employee training records, and"
3m-global-impact-report-2023.txt,"facturing site, distribution center, and
and non-COVID-19 communicable disease outbreaks incidents are reported in the 3M EHS 360 incident
administrative site has a business resilience plan that
like measles or mumps. We track SIEs not only for management system.
covers EHS, security, IT continuity, business continuity,
3M employees but also contractors and contingent
and medical response. While we hope to never use
workers. Workplace and
them, it’s critically important to have current plans in
Every week, any SIEs and potential SIEs identified employee security place and for employees to understand what to do in"
3m-global-impact-report-2023.txt,"by the Mandate and follows
In addition, the 3M™ On Demand Bonding System — “It was such an honor to work alongside my UN Sustainable Development Goal 6.
designed to work with the Nordson® ProBond™ 3M colleagues in Lima. Watching them use
System — eliminates liners and container waste. their unique skill sets to make such impactful Conserving water in our operations
change was beyond inspiring.”
3M’s total water usage includes sanitary, process,
See more examples in our Global Impact Highlights
brochure. — Stacey Claessens, global employee heating, cooling, remediation, and other sources."
3m-global-impact-report-2023.txt,"re • 2022 was 3M’s third year of our five-year
local incident management and response
integral elements of our Strategic Energy Management partnership with Clean Air Asia, an international
teams worldwide.
Plan, which guides our priorities and goals. nongovernmental organization focused on air
quality solutions for New Delhi, India, and Manila,
Corporate, functional, and local plans consider the
In 2022, 3M experts spoke at several energy industry Philippines. In New Delhi, a Clean Construction
risk of natural disasters, infectious disease, employee"
3m-global-impact-report-2023.txt,"nd science, in 2019 we developed seize opportunities to increase their energy efficiency
methodologies to calculate our emissions for Scope 3 and move from loosely organizing energy projects
Categories 9–12. to managing them with a structured system. By
integrating the systematic ISO-based management
The first step was to compile data for our more than framework of plan-do-check-act, our sites have
55,000 products, including quantity sold, product saved on energy costs and consumption, expanded
size or mass, and use applications. Next, working with employee engagement, and increased visibility into"
3m-global-impact-report-2023.txt,"y giving,
volatile organic compound emissions. 3M Brownwood and its employees award close
to $40,000 to local nonprofit organizations.
Where we can’t eliminate solvent usage, we recycle
or reuse as much as we can. For example, 3M
Brownwood’s solvent recovery area distills cleaning
solvent for reuse around the plant, helping reduce new
solvent purchase and use.Who we are How we work What we create Site spotlights About report Sagamihara, Japan | 3M 2023 Global Impact Report 117
Sagamihara, Japan
3M Sagamihara, a bustling 1,000-employee site in Safety assurance The site conducts risk assessments for work activities"
3m-global-impact-report-2023.txt,"ihara reflect 3M’s
commitment to support our operating communities
through several local activities:
• Through the 3M Visiting Wizards program, site
employees connect with upper-grade elementary
school students. Throughout the years, employees have
volunteered to conduct remote scientific experiments
to bring the fun of science to life for the students. They
have demonstrated and coached students through
experiments the students could do from home, making
the experience friendly and accessible.
• 3M Sagamihara conducted an employee food drive,"
3m-global-impact-report-2023.txt,"arly 200 food items such as
rice, snacks, cup noodles, and canned goods.
• The site has consistently supported the Sagamihara
Environment Improvement Society, which consists of
several local companies and public facilities working
together to address environmental issues in the
Sagamihara area.
• Every year, 3M Sagamihara donates and distributes 3M
products at the Sagamihara Cherry Blossom Festival.
Starting in 2023, 3M Sagamihara will expand the
risk assessment process to include 3M’s Guarding
Employee food drive"
3m-global-impact-report-2023.txt,"lect EHS data through the functional integration schedule over time; (8) the
corporatewide EHS reporting systems; (4) 3M’s carbon impact of acquisitions, strategic alliances, divestitures,
emissions and renewable energy data as it relates to and other unusual events resulting from portfolio
renewable energy contracts with third parties and management actions and other evolving business
utility-controlled generation or distribution networks. strategies, and possible organizational restructuring;
(5) social data as relates to employee metrics, social and (9) statements about actions of contractors and"
3m-global-impact-report-2023.txt,"k and collect environmental, health, and safety unduly influenced by changes to our organizational
10-Q) in Part I, Item 2; and Part II, Item 1A, as updated data through the corporatewide EHS reporting structure. However, in the case of our greenhouse gas
by applicable Current Reports on Form 8-K. systems (e.g., Environmental Targets Database, EHS emission data, 3M follows the World Resource Institute
360, etc.). (WRI) and World Business Council for Sustainable
Development (WBCSD) GHG Protocol.
• Social data – The data related to employee metrics,"
3m-global-impact-report-2023.txt,"Leading with purpose
Ownership and legal form: Annual Report on Form 10-K
2-2 Entities included in the organization’s sustainability reporting About report 122
2-3 Reporting period, frequency and contact point About report 122
Sustainability@mmm.com
2-4 Restatements of information About report 122
2-5 External assurance Assurance statement 143
2-6 Activities, value chain and other business relationships 3M.com
122
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
109
Employee programs 59"
3m-global-impact-report-2023.txt,"Sustainability@mmm.com
2-4 Restatements of information About report 122
2-5 External assurance Assurance statement 143
2-6 Activities, value chain and other business relationships 3M.com
122
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
109
Employee programs 59
Suppliers 94Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 127
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
2-7 Employees ESG metrics, Employee demographics tab"
3m-global-impact-report-2023.txt,"rance statement 143
2-6 Activities, value chain and other business relationships 3M.com
122
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
109
Employee programs 59
Suppliers 94Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 127
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 59"
3m-global-impact-report-2023.txt,"oyee programs 59
Suppliers 94Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 127
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 59
Annual Report on Form 10-K, Item 1 – Resources – Human Capital
Environmental, health, and safety management 65
Metric tables: social performance, employees
2-8 Workers who are not employees ESG metrics, Employee demographics tab"
3m-global-impact-report-2023.txt,"lights About report GRI index | 3M 2023 Global Impact Report 127
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 59
Annual Report on Form 10-K, Item 1 – Resources – Human Capital
Environmental, health, and safety management 65
Metric tables: social performance, employees
2-8 Workers who are not employees ESG metrics, Employee demographics tab
59
Employee programs"
3m-global-impact-report-2023.txt,"ee Charter
Proxy Statement, Director compensation and Executive compensation
2-21 Annual total compensation ratio Proxy Statement, Executive compensation – Pay ratio
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. The breakdown to calculate the median percentage increase does not accurately
reflect our workforce levels and process at 3M to assure equitable remuneration.
Additional details on our process can be found in the Compensation and the Employee"
3m-global-impact-report-2023.txt,"plans Annual Report on Form 10-K, Item 8 – Note 13 : Pension and Postretirement Benefit Plans
201-4 Financial assistance received from government Annual Report on Form 10-K, Item 8 – Note 1: Significant Accounting Policies
GRI 202 Market Presence 2016 - -
3-3 Management of material topics Communities 26Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 130
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
202-1 Ratios of standard entry-level wage by gender compared to Employee programs 59"
3m-global-impact-report-2023.txt,"material topics Communities 26Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 130
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
202-1 Ratios of standard entry-level wage by gender compared to Employee programs 59
local minimum wage
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. Find more about our process in the Compensation and the Employee programs"
3m-global-impact-report-2023.txt,"to disposal ESG metrics, Environmental tab
Circular materials 74
Metric tables: environmental performance, waste 147
GRI 308 Supplier environmental assessment 2016 - -
3-3 Management of material topics Suppliers 94
Supplier Responsibility Code
308-1 New suppliers that were screened using Suppliers 94
environmental criteria
Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 94
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 59Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 135"
3m-global-impact-report-2023.txt,"1 New suppliers that were screened using Suppliers 94
environmental criteria
Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 94
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 59Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 135
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab"
3m-global-impact-report-2023.txt,"Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 94
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 59Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 135
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab
Employee programs 59"
3m-global-impact-report-2023.txt,"-3 Management of material topics Employee programs 59Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 135
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab
Employee programs 59
Confidentiality constraints. We can provide total turnover rate of 16.9% but are not able to
provide breakdown by age group, gender, and region.
Total turnover includes employee-initiated turnover and all other forms of turnover (e.g.,"
3m-global-impact-report-2023.txt,"Site spotlights About report GRI index | 3M 2023 Global Impact Report 135
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab
Employee programs 59
Confidentiality constraints. We can provide total turnover rate of 16.9% but are not able to
provide breakdown by age group, gender, and region.
Total turnover includes employee-initiated turnover and all other forms of turnover (e.g.,
due to restructuring, poor performance, retirement, etc.). Our total employee turnover"
3m-global-impact-report-2023.txt,"rograms 59
Confidentiality constraints. We can provide total turnover rate of 16.9% but are not able to
provide breakdown by age group, gender, and region.
Total turnover includes employee-initiated turnover and all other forms of turnover (e.g.,
due to restructuring, poor performance, retirement, etc.). Our total employee turnover
rate is an annualized rate that measures terminated or retired 3M employees during the
calendar year, excluding foreign service employees and 3M temporary employees.
401-2 Benefits provided to full-time employees that are not provided Employee programs 59"
3m-global-impact-report-2023.txt,"ge group, gender, and region.
Total turnover includes employee-initiated turnover and all other forms of turnover (e.g.,
due to restructuring, poor performance, retirement, etc.). Our total employee turnover
rate is an annualized rate that measures terminated or retired 3M employees during the
calendar year, excluding foreign service employees and 3M temporary employees.
401-2 Benefits provided to full-time employees that are not provided Employee programs 59
to temporary or part-time employees
401-3 Parental leave Employee programs 59"
3m-global-impact-report-2023.txt,"all other forms of turnover (e.g.,
due to restructuring, poor performance, retirement, etc.). Our total employee turnover
rate is an annualized rate that measures terminated or retired 3M employees during the
calendar year, excluding foreign service employees and 3M temporary employees.
401-2 Benefits provided to full-time employees that are not provided Employee programs 59
to temporary or part-time employees
401-3 Parental leave Employee programs 59
GRI 402 Labor/management relations 2016 - -
3-3 Management of material topics Employee programs 59"
3m-global-impact-report-2023.txt,", poor performance, retirement, etc.). Our total employee turnover
rate is an annualized rate that measures terminated or retired 3M employees during the
calendar year, excluding foreign service employees and 3M temporary employees.
401-2 Benefits provided to full-time employees that are not provided Employee programs 59
to temporary or part-time employees
401-3 Parental leave Employee programs 59
GRI 402 Labor/management relations 2016 - -
3-3 Management of material topics Employee programs 59
402-1 Minimum notice periods regarding operational changes Employee programs 59"
3m-global-impact-report-2023.txt,"icipation, consultation, and communication on Environmental, health, and safety management 65
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 65
403-6 Promotion of worker health Environmental, health, and safety management 65
403-7 Prevention and mitigation of occupational health and safety Environmental, health, and safety management 65
impacts directly linked by business relationships
Innovation management 101
403-8 Workers covered by an occupational health and safety Employee programs 59"
3m-global-impact-report-2023.txt,"on occupational health and safety Environmental, health, and safety management 65
403-6 Promotion of worker health Environmental, health, and safety management 65
403-7 Prevention and mitigation of occupational health and safety Environmental, health, and safety management 65
impacts directly linked by business relationships
Innovation management 101
403-8 Workers covered by an occupational health and safety Employee programs 59
management system
Environmental, health, and safety management 65
403-9 Work-related injuries ESG metrics, Employee health & safety tab"
3m-global-impact-report-2023.txt,"tional health and safety Employee programs 59
management system
Environmental, health, and safety management 65
403-9 Work-related injuries ESG metrics, Employee health & safety tab
Environmental, health, and safety management 65
Metric tables: health and safety; historical metrics, health and safety 147Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 136
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab"
3m-global-impact-report-2023.txt,"tables: health and safety; historical metrics, health and safety 147Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 136
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 65
Metric tables: health and safety; historical metrics, health and safety 147
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 59"
3m-global-impact-report-2023.txt,"nd safety 147Who we are How we work What we create Site spotlights About report GRI index | 3M 2023 Global Impact Report 136
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 65
Metric tables: health and safety; historical metrics, health and safety 147
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 59
404-1 Average hours of training per year per employee Employee programs 59"
3m-global-impact-report-2023.txt,"port GRI index | 3M 2023 Global Impact Report 136
Disclosure
Description Cross-reference (hyperlinks) or direct answer Page #
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 65
Metric tables: health and safety; historical metrics, health and safety 147
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 59
404-1 Average hours of training per year per employee Employee programs 59
404-2 Programs for upgrading employee skills and transition Employee programs 59"
3m-global-impact-report-2023.txt,") or direct answer Page #
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 65
Metric tables: health and safety; historical metrics, health and safety 147
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 59
404-1 Average hours of training per year per employee Employee programs 59
404-2 Programs for upgrading employee skills and transition Employee programs 59
assistance program
404-3 Percentage of employees receiving regular performance and Employee programs 59"
3m-global-impact-report-2023.txt,"agement 101
Social capital Customer welfare Customer-inspired innovation 109
Innovation management 101
Product Safety, Quality, and Stewardship Principle
Social capital Selling products and product labeling Advertising and Product Representation Policy
Customer-inspired innovation 109
Innovation management 101
Product Safety, Quality, and Stewardship Principle
Human Labor Practices Corporate Code of Conduct 43
capital
Ethics & Compliance
Human rights 50
Suppliers 94
Supplier Responsibility Code
Human Employee health and safety ESG metrics, Employee, health & safety tab"
3m-global-impact-report-2023.txt,"oduct labeling Advertising and Product Representation Policy
Customer-inspired innovation 109
Innovation management 101
Product Safety, Quality, and Stewardship Principle
Human Labor Practices Corporate Code of Conduct 43
capital
Ethics & Compliance
Human rights 50
Suppliers 94
Supplier Responsibility Code
Human Employee health and safety ESG metrics, Employee, health & safety tab
capital
Environmental, health, and safety management 65
Metric tables: 3M historical metrics; health and safety 147
Human Employee engagement, diversity, and inclusion 3M Diversity, Equity & Inclusion (DEI) Report"
3m-global-impact-report-2023.txt,"pstream Transportation and Metric Tons CO2e 1,490,000
% W oU rn kd foe rr cre ep (r ee ns te ryn -t le ed v eG l r to ou mps a nin a 3 geM m U e. nS t. ) % 9.02 Offsite Recycle Metric Tons 122,000 Renewable Energy % Total Electricity Use 51.9 Category 5 - Waste Generated in Operations Metric Tons CO2e 199,000
% W oU rn kd foe rr cre ep (r me ase nn at ge ed m g er no tu )ps in 3M U.S. % 6.39 Category 6 - Business Travel Metric Tons CO2e 31,500
Water Metrics Units Value Other Metrics Units Value
Total Water Use (Absolute) Million Cubic Meters 37.3 C Pru os dto um cte Ur sG eH - G C uA mvo ui ld aa tin vc ee s t ih nr co eu 2g 0h 1 3 5M M COil 2li eon Metric Tons 121 Category 7 - Employee Commuting Metric Tons CO2e 261,000"
3m-global-impact-report-2023.txt,"social, and governance
metrics, charts, and a glossary of terms.
Values reflect calendar years, which align with 3M’s fiscal years. Where attainable and justified, metrics are rounded to three significant figures. Some totaled metrics may
not match metrics summed together after rounding. Restatements are made when changes are + or - 5% of the original data point. For additional details about organizational
boundaries, data collection, adjustments, and verification, see the About report section.
Employee demographics"
3m-global-impact-report-2023.txt,"e significant figures. Some totaled metrics may
not match metrics summed together after rounding. Restatements are made when changes are + or - 5% of the original data point. For additional details about organizational
boundaries, data collection, adjustments, and verification, see the About report section.
Employee demographics
Metric Metric units RY-2022 RY-2021 RY-2020 2021-2022 Boundary & scope
annual
change, %
Global full-time equivalent employees Total number 91,600 94,700 95,500 -3.3 N/A
Global employee (headcount) Total number 92,100 95,300 96,100 -3.4 N/A"
3m-global-impact-report-2023.txt,"y. 2020 and 2021 results have not been
recalculated to account for this shift in emissions.
Scope 3, Category 6 Metric tons CO2e 31,500 20,500 21,400 53.7 Calculated from 3M primary data on business travel.
(business travel) In 2022, boundary was expanded to include personal car
mileage traveled for business purposes. 2020 and 2021
results were recalculated based on this change.
Scope 3, Category 7 Metric tons CO2e 261,000 357,000 352,000 N/A In 2022, boundary was expanded to include contingent
(employee commuting) workers regularly reporting to a 3M location. 2020 and"
3m-global-impact-report-2023.txt,"lience
Coalition to help define net water positive and drive
progress as a member of the leadership committee.
To advance our social commitments, we created the
position of director of environmental justice. With a
dedicated leader in this important area, we now have a
Mike Roman Gayle Schueller full complement of equity-based community initiatives,
Chairman of the Board and Chief Executive Officer Senior Vice President and Chief Sustainability Officer which include programs for STEM education,
workforce upskilling, social justice, and giving and"
3m-global-impact-report-2023.txt,"ee.
To advance our social commitments, we created the
position of director of environmental justice. With a
dedicated leader in this important area, we now have a
Mike Roman Gayle Schueller full complement of equity-based community initiatives,
Chairman of the Board and Chief Executive Officer Senior Vice President and Chief Sustainability Officer which include programs for STEM education,
workforce upskilling, social justice, and giving and
volunteering. At the same time, we press forward with
Last year marked the 120-year anniversary of 3M. Looking back on 2022, I’m proud of the strides 3M made our diversity goals for 3M’s workforce through our"
3m-global-impact-report-2023.txt,"1970s 1980s 1990s 2000s 2020s
1975 – Pollution Prevention 2019–2021 – We accelerate our
Pays (3P) program starts. ambitions by announcing 12 new or
We’ve completed more expanded goals across all three pillars,
than 16,300 3P 1996 – With including requiring a Sustainability
projects, preventing formalization of our Value Commitment for 100% of new
more than 2.88 Life Cycle Management products, achieving carbon neutrality
million short tons of System, we embed in our operations, and investing $50
pollution and saving environmental, health, million toward equitable workforce"
3m-global-impact-report-2023.txt,"l to stay below 50% of our 2002 2 location-based GHG
baseline, meaning 3M’s 2030 Scope 1 and 2 emissions will now be
emissions since 2002
reduced by more than 85% from 2002 levels. 2019 is the baseline
measurement year.Who we are How we work What we create Site spotlights About report Leading with purpose | 3M 2023 Global Impact Report 14
45.1% 1.04M
diverse talent in
management learning experiences
On pace – Double the pipeline of diverse talent in On pace – Advance economic equity by creating
management globally to build a diverse workforce 5 million unique STEM and skilled trades learning"
3m-global-impact-report-2023.txt,"About report Leading with purpose | 3M 2023 Global Impact Report 14
45.1% 1.04M
diverse talent in
management learning experiences
On pace – Double the pipeline of diverse talent in On pace – Advance economic equity by creating
management globally to build a diverse workforce 5 million unique STEM and skilled trades learning
Science for
by 20301 experiences for underrepresented individuals by the
end of the 2025-26 school year3
Learn more
Community
2015 2030 goal
Learn more
9.02% 2021 2025 goal
Create a more positive world workforce diversity"
3m-global-impact-report-2023.txt,"uals by the
end of the 2025-26 school year3
Learn more
Community
2015 2030 goal
Learn more
9.02% 2021 2025 goal
Create a more positive world workforce diversity
On pace – Double the representation of
through science and inspire $82.1M
underrepresented groups from entry-level through
invested in cash
management in our U.S. workforce2
and products
people to join us
Learn more On pace – Invest cash and products for education,
2020 Ongoing goal community, and environmental programs
6.39%
Learn more
workforce diversity 2015 2025 goal"
3m-global-impact-report-2023.txt,"15 2025 goal
On pace – Double the representation of
underrepresented groups in management positions
in our U.S. workforce2
81.8K
skills-based
2022 goal results Learn more
work hours
2020 Ongoing goal
On pace – Provide 300,000 work hours of skills-
100%
based volunteerism by 3M employees to improve
pay equity globally lives and help solve society’s toughest challenges by
the end of 20254
On pace – Maintain or achieve 100% pay equity globally
Learn more Learn more
2020 Ongoing goal 2019 2025 goal
workforce"
3m-global-impact-report-2023.txt,"lunteerism by 3M employees to improve
pay equity globally lives and help solve society’s toughest challenges by
the end of 20254
On pace – Maintain or achieve 100% pay equity globally
Learn more Learn more
2020 Ongoing goal 2019 2025 goal
workforce
$23.6M
development and
STEM investment 4.91M
1 In 2021, 3M updated the goal maturity date to 2030 from 2025. See
3M’s 2021 Global Diversity, Equity & Inclusion Report for more details. On pace – Invest $50 million to address racial training instances
2 Underrepresented groups in our 3M U.S. workforce include Black/ opportunity gaps in the U.S. through workforce"
3m-global-impact-report-2023.txt,"with less or no waste1
media, finance, trade associations, and think tanks, and • Manufacturing waste
they represented 3M’s four business groups and all
• Community health, safety, and well-being1
areas of operation.
• Responsible sourcing and supplier sustainability1
Following the 2022 assessment, we analyzed the • Human rights and labor practices in the supply chain1
insights and inputs from stakeholders and developed
• R&D investment1
our Sustainability Priority Matrix. The matrix shows our
• STEM education, training, and workforce development"
3m-global-impact-report-2023.txt,"te spotlights About report Leading with purpose | 3M 2023 Global Impact Report 22
3M Sustainability Priority Matrix: Science for Community (cont.)
Priority topic & tier Our actions Additional information Goals & commitments Related SDG
Employee diversity, We advance meaningful actions toward a more equitable Diversity, equity, and inclusion Invest $50 million to address
equity, and inclusion future for our global employee base, including training, racial opportunity gaps in the U.S.
Communities
development, and recruitment efforts focused on through workforce development"
3m-global-impact-report-2023.txt,"equitable Diversity, equity, and inclusion Invest $50 million to address
equity, and inclusion future for our global employee base, including training, racial opportunity gaps in the U.S.
Communities
development, and recruitment efforts focused on through workforce development
2
underrepresented populations. We foster an inclusive 3M Diversity, Equity & Inclusion and STEM education initiatives by
STEM education, culture that supports and appreciates differences and (DEI) Report the end of 20255
training, and workforce provides fair and equal opportunities for everyone. Equity & Community website Double the pipeline of diverse talent 4.4, 4.5, 4.c"
3m-global-impact-report-2023.txt,"workforce development
2
underrepresented populations. We foster an inclusive 3M Diversity, Equity & Inclusion and STEM education initiatives by
STEM education, culture that supports and appreciates differences and (DEI) Report the end of 20255
training, and workforce provides fair and equal opportunities for everyone. Equity & Community website Double the pipeline of diverse talent 4.4, 4.5, 4.c
development And we continue our efforts toward building a diverse in management globally to build a
workforce around the world. 3M helps ‘industrial’ athletes chase"
3m-global-impact-report-2023.txt,"an inclusive 3M Diversity, Equity & Inclusion and STEM education initiatives by
STEM education, culture that supports and appreciates differences and (DEI) Report the end of 20255
training, and workforce provides fair and equal opportunities for everyone. Equity & Community website Double the pipeline of diverse talent 4.4, 4.5, 4.c
development And we continue our efforts toward building a diverse in management globally to build a
workforce around the world. 3M helps ‘industrial’ athletes chase
diverse workforce by 20308"
3m-global-impact-report-2023.txt,"elivered through the 3M Impact program.
7 Expands our previous 2025 goal to stay below 50% of our 2002 baseline, meaning 3M’s 2030 Scope 1 and 2 emissions will now be reduced by more than 85% from 2002 levels. 2019 is the baseline measurement year.
8 In 2021, 3M updated the goal maturity date to 2030 from 2025. See 3M’s 2021 Global Diversity, Equity & Inclusion Report for more details.
9 Established in 2020 to drive trend and trajectory progress over time. 2020 is the baseline measurement year.
10Underrepresented groups in our 3M U.S. workforce include Black/African American and Hispanic/Latino employees."
3m-global-impact-report-2023.txt,"full capabilities to bear in
advancing meaningful impact.Who we are How we work What we create Site spotlights About report Communities | 3M 2023 Global Impact Report 26
Communities
Our commitment Our sustainability goals
Building and nurturing meaningful connections
with our local communities is fundamental to our Invest $50 million to address Invest cash and products for Invested
sustainability strategy. We’re committed to leveraging racial opportunity gaps in education, community, and
$82.1M
our people, products, and philanthropy to support the U.S. through workforce environmental programs by 2025"
3m-global-impact-report-2023.txt,"ur commitment Our sustainability goals
Building and nurturing meaningful connections
with our local communities is fundamental to our Invest $50 million to address Invest cash and products for Invested
sustainability strategy. We’re committed to leveraging racial opportunity gaps in education, community, and
$82.1M
our people, products, and philanthropy to support the U.S. through workforce environmental programs by 2025
communities through science, technology, engineering, development and STEM
and mathematics (STEM) education, workforce education initiatives by the"
3m-global-impact-report-2023.txt,"e leverage research on social impact $50 million commitment over five years Cities United Way and the Saint Paul & Minnesota
to inform investment decisions and collaborate with Foundation, to provide culturally specific holistic
In 2022, 3M continued to work toward our goal
our community partners to track outcomes, minimize support for diverse families in the community
to invest $50 million to address racial opportunity
barriers, and expand future opportunities for surrounding our headquarters.
gaps in the U.S. through workforce development"
3m-global-impact-report-2023.txt,"rojected $35 million in social
3M employees worldwide who volunteer to make value returns (increased wages, additional taxes paid,
a difference. Since 1953, 3M and 3M Foundation avoided justice system costs, etc.).
have invested $1.98 billion in cash and product
contributions in communities where 3M operates. As a science-based manufacturing company, we’re
motivated to support a more equitable pathway
3M and 3M Foundation develop and implement to science, manufacturing, and skilled trades jobs.
strategies and partnerships with leading community Education and workforce development are key to"
3m-global-impact-report-2023.txt,"more positive world through science to inspire and
Community training resources – As manufacturing
empower our employees to drive change. In 2022, we 3M and NC3 awarded 50
evolves and companies like 3M invest in facilities of the
resumed our global activity after a two-year hiatus due
future, it’s essential to help our local technical schools
$1,000
to COVID-19. We provided 30,100 work hours of skills-
and high schools access appropriate technologies
based volunteerism by 3M employees in 2022.
and training. To keep the workforce pipeline flowing,"
3m-global-impact-report-2023.txt,"nstrated that
3M employees and retirees volunteer
all 50 states, Puerto Rico, the every $1 we invest in the community
in alignment with their passions,
U.S. Virgin Islands, and over generates nearly $3 in social impact. This 1 Chief Executives for Corporate
and we support them through 3M’s Purpose.© Giving in Numbers: 2022
28 amplifies our actions as we work toward Matching Gifts programs in the U.S. Edition™: cecp.co/home/resources/
our goal to increase racial equity in STEM giving-in-numbers/
countries education and the workforce.Who we are How we work What we create Site spotlights About report Diversity, equity, and inclusion | 3M 2023 Global Impact Report 33"
3m-global-impact-report-2023.txt,"or Corporate
and we support them through 3M’s Purpose.© Giving in Numbers: 2022
28 amplifies our actions as we work toward Matching Gifts programs in the U.S. Edition™: cecp.co/home/resources/
our goal to increase racial equity in STEM giving-in-numbers/
countries education and the workforce.Who we are How we work What we create Site spotlights About report Diversity, equity, and inclusion | 3M 2023 Global Impact Report 33
Diversity, equity, and inclusion
Our commitment Our sustainability goals
Recruiting and retaining a diverse global workforce is a"
3m-global-impact-report-2023.txt,"ort Diversity, equity, and inclusion | 3M 2023 Global Impact Report 33
Diversity, equity, and inclusion
Our commitment Our sustainability goals
Recruiting and retaining a diverse global workforce is a
Double the pipeline of diverse Maintain or achieve 100% Double the representation of under-
core part of 3M’s sustainability strategy. We recognize
talent in management globally to pay equity globally2 represented groups from entry-level through
that different countries and cultures have different
build a diverse workforce by 20301 management in our U.S. workforce2,3"
3m-global-impact-report-2023.txt,"here all feel welcome.
equity
Our impact Double the representation of underrepresented
groups in management positions in our U.S.
workforce2,3
Increased to
We advance meaningful actions toward a more
equitable future for our global employee base, 6.39%
including training, development, and recruitment
efforts focused on underrepresented populations.
We foster an inclusive culture that supports and
appreciates differences and provides fair and equal
opportunities for everyone. And we continue our
efforts toward building a diverse workforce around"
3m-global-impact-report-2023.txt,"e
equitable future for our global employee base, 6.39%
including training, development, and recruitment
efforts focused on underrepresented populations.
We foster an inclusive culture that supports and
appreciates differences and provides fair and equal
opportunities for everyone. And we continue our
efforts toward building a diverse workforce around
the world.
1 In 2021, 3M updated the goal maturity date to 2030 from 2025.
2 Established in 2020 to drive trend and trajectory progress
over time.
3 Underrepresented groups in our 3M U.S. workforce include Black/"
3m-global-impact-report-2023.txt,"s, personalities, styles, and
ways of thinking help us better understand the needs
In addition to the below, learn more about our
of 3M customers, suppliers, and community partners
diversity, equity, and inclusion efforts, including We anticipate even more progress in the coming
around the world.
key highlights and actions taken in 2022, at 3M’s year as we continue to advance our efforts in hiring,
Diversity, Equity & Inclusion (DEI) Report. retaining, and developing talent. Indeed, nurturing a
Our diverse workforce"
3m-global-impact-report-2023.txt,"n (DEI) Report. retaining, and developing talent. Indeed, nurturing a
Our diverse workforce
talent acquisition pipeline is critical to achieving and
Diversity, equity, and We’re building on our foundation by taking steps to maintaining our representation goals. To strengthen
advance the representation of underrepresented that pipeline, 3M has several programs that provide
inclusion governance
groups at 3M. We continue to work toward bringing valuable research, work, and professional development
To foster a workplace that reflects the 3M Respectful the demographics of 3M’s workforce in line with opportunities to underserved STEM students in higher"
3m-global-impact-report-2023.txt,"ity, equity, and We’re building on our foundation by taking steps to maintaining our representation goals. To strengthen
advance the representation of underrepresented that pipeline, 3M has several programs that provide
inclusion governance
groups at 3M. We continue to work toward bringing valuable research, work, and professional development
To foster a workplace that reflects the 3M Respectful the demographics of 3M’s workforce in line with opportunities to underserved STEM students in higher
Work Environment Principle, we follow U.S. Equal broader workforce availability. education. Learn more about these programs in the"
3m-global-impact-report-2023.txt,"r progress on the global Diversity Index and
religion, sex, national origin, age, disability, veteran
is diverse across a wide spectrum of dimensions, hiring metrics, as well as data on supplier diversity and
status, pregnancy, genetic information, sexual
including gender, nationality, race/ethnicity, disability, community investments.
orientation, marital status, citizenship status, status
U.S. military veterans, and LGBTQI+. Since 2015, we’ve
with regard to public assistance, gender identity/
improved our global Diversity Index by 12.5 points, Learn more about 3M’s diverse workforce at our"
3m-global-impact-report-2023.txt,"’ve made good progress on our goal
equity in our workplaces, business practices, and opportunity for all individuals, and we’re committed to
to double the representation of underrepresented
communities globally. This holistic cross-functional advocating for human rights and removing barriers to
employees in the U.S. Since 2020, we’ve improved
organization connects our teams and strategies across equity. 3M has signed the Human Rights Campaign’s
our U.S. representation of underrepresented groups
the areas of diversity and inclusion in our workforce. Business Coalition for the Equality Act, joining other"
3m-global-impact-report-2023.txt,"e Audit Committee Charter states that the
of the major risks facing the company and works
committee will discuss policies and procedures with
with executives to assess those risks and develop
respect to risk assessment and risk management,
appropriate mitigation plans. To assure business
the company’s major risk exposures, and the steps
continuity through global economic and geopolitical
management has taken to mitigate and monitor
challenges, we prioritize the well-being of our
such exposures.
workforce, resiliency of our global supply chain,"
3m-global-impact-report-2023.txt,"ce, resiliency of our global supply chain,
environmental stewardship, and efficiency in The Audit Committee has direct oversight of the work
our operations. of two senior vice president positions, the general
auditor and the chief ethics & compliance officer, that
both report to the chair of the Audit Committee. The
general auditor, Corporate Audit, is responsible for
leading the formal risk assessment and management
process within the company and annually reports the
results to the full Board.
. . . we prioritized the well-being of our workforce, resiliency of our global supply chain, environmental stewardship, and"
3m-global-impact-report-2023.txt,"tent
3M Learn is the new home for Learning Tracks, our
is organized and aligned to directly support our Inclusion advocacy
program for upskilling and reskilling all 3M employees.
organizational priorities, and employees receive
Created in response to feedback about career We build inclusive behaviors and create
recommended content based on their role. This
and development from 3M employees, Learning cultural agility through inclusion events and
customized, centralized environment lets employees
Tracks continually trains our entire workforce with activities as well as training and leadership"
3m-global-impact-report-2023.txt,"Learning cultural agility through inclusion events and
customized, centralized environment lets employees
Tracks continually trains our entire workforce with activities as well as training and leadership
own their development and find the resources they
culture-related skills, core or power skills, critical development programs. Learning Tracks now
need to grow in their career. 3M Learn reaches our
and emerging leadership skills, and business-specific has modules on inclusive behaviors skills-
entire global workforce."
3m-global-impact-report-2023.txt,"technical skills. building, including REAL Allyship training.
We aim to have 100% of employees engaging in
We regularly track engagement, consumption, and We also provide training content to our hiring
development activities. In 2022 alone, we’ve seen
satisfaction of our learning programs. We aim for a managers and others on implicit bias and how to
96% of our global production and nonproduction
90% completion rate among participating employees. approach it. For example, 3M’s Global Recruitment
workforce engage in self-directed training on"
3m-global-impact-report-2023.txt,"o company and individual performance.
Learn more in the Compensation section and
at Working at 3M: Your pay.Who we are How we work What we create Site spotlights About report Employee programs | 3M 2023 Global Impact Report 63
Everyday Wins Parental leave retention
Everyday Wins is 3M’s global point-based recognition
In 2021: In 2022*:
tool. It makes it easy and convenient to recognize
fellow employees or groups at 3M when they embody 1,280 1,270
our culture elements or go above and beyond. Our
entire workforce, both production and nonproduction"
3m-global-impact-report-2023.txt,"regulations, work agreements, or other local
888 male employees 869 male employees
working is essential for 3M’s continued growth and conditions): mainly on-site, hybrid, or remote (near or
employee well-being. The result was Work Your Way, distant). This approach also empowers employees to
a trust-based work model that drives well-being and structure their day in a way that balances maximum
productivity in ways that enable our business and productivity with personal preferences. Allowing 3M’s
performance goals. workforce to make choices that benefit them, their"
3m-global-impact-report-2023.txt,"e’ll keep
3M takes pride in how our employees have been able focusing on creating space for authentic, respectful,
to adapt, innovate, and produce results while working and candid conversations as part of our efforts to
their way. 3M continues to support flexible work build inclusive behaviors and continue our work on
arrangements, even as other companies try to apply inclusion advocacy.
one-size-fits-all approaches to where and when people
work. It’s just another way we innovate and experiment
to attract and retain a high-quality workforce.Who we are How we work What we create Site spotlights About report EHS management | 3M 2023 Global Impact Report 65"
3m-global-impact-report-2023.txt,"general auditor, Corporate Audit, is responsible for leading the formal risk assessment and management
monitoring process within the company and annually reports the results to the full Board.
3M will assess climate-related risks as a part of our analysis of physical risk to our manufacturing as climate modeling advances and as acquisitions or
divestitures require. 3M’s business continuity and crisis management planning help manage risks facing the company’s physical operations, supply chains,
and workforce. Programs are reviewed at least annually."
3m-global-impact-report-2023.txt,"cability. and local ethical and legal rules and regulations.
partners, we can better innovate to serve their unique The research must also be in accordance with three
• GEM (Graduate Degrees for Minorities in
needs. This is one of many important reasons we principles, as described in the Belmont Report:
Engineering) Consortium – The mission of the
continue to set goals and work toward diversifying our respect for person, justice, and beneficence.
U.S.-based National GEM Consortium is to enhance
workforce at every level."
3m-global-impact-report-2023.txt,"Process to determine remuneration Compensation 56
Compensation and Talent Committee Charter
Proxy Statement, Director compensation and Executive compensation
2-21 Annual total compensation ratio Proxy Statement, Executive compensation – Pay ratio
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. The breakdown to calculate the median percentage increase does not accurately
reflect our workforce levels and process at 3M to assure equitable remuneration."
3m-global-impact-report-2023.txt,"to social and sustainability goals. Corporately, the 3M
assessment to identify and engage stakeholders. Some of the stakeholder groups that 3M Foundation provides funding to targeted non-profit organizations in the U.S. and within their
identified to include in their sustainability processes were 3M executive leadership, 3M global footprint. 3M engagement extends to the facility level and local communities.
employees, customers, non-governmental organizations, investors and the public. 3M also
 3M has committed to diversity and inclusion within their workforce and in community support."
3m-global-impact-report-2023.txt,"disabilities, U.S. military veterans,
and people who identify as lesbian, gay, bisexual,
transgender, questioning, and intersex (LGBTQI+).
Baseline year is 2015 (32.6%) and goal is 65.2%.Who we are How we work What we create Site spotlights About report Metric tables | 3M 2023 Global Impact Report 148
Metric Metric units RY-2022 RY-2021 RY-2020 2021-2022 Boundary & scope
annual
change, %
Underrepresented groups in our % 9.02 8.58 8.13 5.1 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino"
3m-global-impact-report-2023.txt,"r is 2015 (32.6%) and goal is 65.2%.Who we are How we work What we create Site spotlights About report Metric tables | 3M 2023 Global Impact Report 148
Metric Metric units RY-2022 RY-2021 RY-2020 2021-2022 Boundary & scope
annual
change, %
Underrepresented groups in our % 9.02 8.58 8.13 5.1 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce."
3m-global-impact-report-2023.txt,"ric units RY-2022 RY-2021 RY-2020 2021-2022 Boundary & scope
annual
change, %
Underrepresented groups in our % 9.02 8.58 8.13 5.1 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce.
Goal is 16.2%.
Underrepresented groups in our % 6.39 6.19 5.55 3.2 Subset of above. 3M job grades 13 to 17.
U.S. workforce (management) Underrepresented groups is defined as Black/African"
3m-global-impact-report-2023.txt,"U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce.
Goal is 16.2%.
Underrepresented groups in our % 6.39 6.19 5.55 3.2 Subset of above. 3M job grades 13 to 17.
U.S. workforce (management) Underrepresented groups is defined as Black/African
American and Hispanic/Latino employees. Double the
representation of URGs in management positions in our
U.S. workforce. Goal is 11.2%."
3m-global-impact-report-2024.txt,"arn more Learn more
2020 Ongoing goal 2019 2025 goal
workforce
$39.4M
development and
STEM investment 8.44M
1. In 2021, 3M updated the goal maturity date to 2030 from 2025. On pace – Invest $50 million to address racial training instances
2. Underrepresented groups in our 3M U.S. workforce include Black/ opportunity gaps in the U.S. through workforce
African American and Hispanic/Latino employees. Outpacing – Provide training to 5 million people
development and STEM education initiatives by the
3. 3M defines underrepresented individuals in the U.S. using National globally on worker and patient safety"
3m-global-impact-report-2024.txt,"in sustainability
of employees and and human rights within our own business is guided by the through targeted raw material
Safety and Health Policy
contractors 3M Code of Conduct. We implement our human rights and traceability and supplier
workplace safety programs through our global policies, EHS Management Standard performance assurance by 2025
management system, assessments, audits, training, and
3M’s Code of Conduct Provide training to 5 million
2 Human rights and metrics tracking. 8.7, 8.8
people globally on worker and"
3m-global-impact-report-2024.txt,"rs and the public.
2 Community health, We identify potential risks to the environment and to the EHS Management Standard Invest cash and products for
safety, and well-being health and safety of our employees and communities, and education, community, and
Our partnership with Clean Air
we take steps to update processes, product design, and environmental programs by 2025
Asia
standards to address these risks.
Provide training to 5 million
2 Infectious disease and Mitigating the Risk of Infectious
For the global health care industry, we take a patient- people globally on worker and"
3m-global-impact-report-2024.txt,"rldwide. evident in our Human Rights Policy and Modern
Slavery Statement. Although permissible hiring age
• We provide equal opportunity for development
In the event of business operations changes, we follow may vary based on local laws, 3M has adopted global
A respectful work environment all applicable local laws and regulations regarding expectations regarding the hiring of minors. Even if
consultation and notice periods for both represented local law permits it, 3M will not hire any employee
We strive for a work environment where people and nonrepresented employees. or contingent worker below the age of 16 for any"
3m-global-impact-report-2024.txt,"Site spotlights About report EHS management | 3M 2024 Global Impact Report 63
Significant Injuries and Events (SIEs) Each 3M site has a contractor coordinator who Site-level risk assessment
is the main 3M contact for working with contractors
Over the last five years, we’ve conducted over We look carefully at each 3M site and new acquisition
on EHS issues. We ask contractors to submit notice
96,000 internal risk assessments, resulting in the and perform a risk assessment that includes potential
of worker hours and any EHS incidents experienced"
3m-global-impact-report-2024.txt,"s opportunity • Social equity
better meet our customers’ needs.
An SVC can also stem from a core purpose the
In addition, our internal business-building team
product addresses, such as an environmental or
works to advance collaborations with our portfolio
Qualify social challenge like improving air quality, reducing
companies while also incubating new opportunities
greenhouse gas emissions, advancing racial equity
Identify differentiated product
within 3M. An example of our business building is
and inclusion, or improving patient and worker"
3m-global-impact-report-2024.txt,"t to this ecosystem has accelerated over the past
industries and markets, including health care and
three decades, 3M has a long history of innovating
personal safety. We aim to equip our customers not
materials that make technology work.
only with needed products but with knowledge on best
In the early 2010s, manufacturers of AR and VR practices and effective application. This is in line with
headsets were looking to create the best possible our efforts to advance the UN SDGs focused on health
viewing experience while maintaining a thinner care, worker safety, and economic growth."
3m-global-impact-report-2024.txt,"onal changes Employee programs 52
GRI 403 Occupational health and safety 2018 - -
3-3 Management of material topics Environmental, health, and safety management 57
403-1 Occupational health and safety management system Environmental, health, and safety management 57
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 40
investigation
Environmental, health, and safety management 57
403-3 Occupational health services Environmental, health, and safety management 57
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 57"
3m-global-impact-report-2024.txt,"safety management 57
403-1 Occupational health and safety management system Environmental, health, and safety management 57
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 40
investigation
Environmental, health, and safety management 57
403-3 Occupational health services Environmental, health, and safety management 57
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 57
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 57"
3m-global-impact-report-2024.txt,"safety management 57
403-2 Hazard identification, risk assessment, and incident Corporate Code of Conduct 40
investigation
Environmental, health, and safety management 57
403-3 Occupational health services Environmental, health, and safety management 57
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 57
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 57
403-6 Promotion of worker health Environmental, health, and safety management 57"
3m-global-impact-report-2024.txt,"34 Innovation Aycliffe, U.K. 98 About report, scope,
Executive Officer 3 management 85 and boundaries 103
Leading with purpose 8 Enterprise risk 38 Chiba, Japan 99
Gayle Schueller, Chief S ustainability goals Customer-inspired GRI index 107
Corporate Tilloy, France 100
Sustainability Officer 3 and progress 11 innovation 93
Code of Conduct 40 SASB index 121
Looking ahead 4 Communities 24
Human rights 45 Assurance
Diversity, equity, statement 124
Compensation 50
and inclusion 30
Metric tables 128
Employee programs 52"
3m-global-impact-report-2024.txt,"e and trend data,
migrated systems, and designed a robust ethics and
compliance function based on 3M’s commitment to
anti-corruption, all to create a solid foundation for
Solventum — the new health care company — while
positioning 3M to move forward with strength and
confidence.
What’s next
In 2024, we’re taking action across the enterprise
to reinvent the company. 3M’s innovation engine is
strong and will remain the heart of our business as
we deliver value for our customers. In alignment with
this, we’re updating our approaches to employee and"
3m-global-impact-report-2024.txt,"equity, and inclusion strategy continues
investing in data management systems and processes
to evolve as we advance our efforts to attract and
to improve the granularity, accuracy, and accessibility
retain diverse talent that reflects our communities
of our data. For example, we’re preparing for new
and our markets. We know that diversity unlocks
regulations around plastics and extended producer
innovation — the heart of 3M. We continually work to
responsibility by moving toward one centralized
create an employee ecosystem that supports diversity"
3m-global-impact-report-2024.txt,"pulations.
Learn more Learn more
4. Goal was initiated in 2019. Skills-based volunteering is primarily
delivered through the 3M Impact program. 2020 2025 goal 2015 2025 goalWho we are How we work What we create Site spotlights About report Leading with purpose | 3M 2024 Global Impact Report 14
Stakeholder engagement
Stakeholder How we engage
Stakeholder engagement and collaborative efforts Employees and job seekers • Train and educate employees in company sustainability practices and procedures
on our priority topics are core to how we drive our • Conduct surveys to gather employee feedback and use a crowdsourcing platform"
3m-global-impact-report-2024.txt,"and use of renewables
topics from two angles, called “double materiality.” It
• Ethical and transparent business practices
assessed how environmental and social issues impact
• Chemical management2
3M’s financial performance and value, as well as how
3M’s activities impact a broad range of stakeholders. • Safety of products and services1
The materiality assessment also explored stakeholder • Health and safety of employees and contractors
perceptions of our sustainability strategy and its three
2 • Employee diversity, equity, and inclusion"
3m-global-impact-report-2024.txt,"y represented 3M’s four business groups and all
• Community health, safety, and well-being1
areas of operation.
• Responsible sourcing and supplier sustainability1
Following the 2022 assessment, we analyzed the • Human rights and labor practices in the supply chain1
insights and inputs from stakeholders and developed
• R&D investment1
our sustainability priorities. The table on the next page
• STEM education, training, and workforce development
shows our priority topics and demonstrates how our
sustainability goals align with the United Nations 2030 • Employee training, development, and well-being1"
3m-global-impact-report-2024.txt,"update processes, product design, and environmental programs by 2025
Asia
standards to address these risks.
Provide training to 5 million
2 Infectious disease and Mitigating the Risk of Infectious
For the global health care industry, we take a patient- people globally on worker and
public health issues Disease Spread Through 3.c, 3.8
centered approach to innovation and develop reliable, quality patient safety by 2025
Contamination Prevention
products and solutions.
Provide 300,000 work hours of
3 Employee training, 3M invests in our people’s success by fostering a culture of skills-based volunteerism by 3M"
3m-global-impact-report-2024.txt,"velop the skills of employees to improve lives and
well-being tomorrow. We reinforce behaviors that foster an inclusive help solve society’s toughest
workplace, and we provide competitive benefits and challenges by the end of 20256
recognition programs to support employees throughout their
career. Work Your Way is our trust-based flexible work model
that enables well-being and productivity.
3M promotes a culture of health and well-being for our
employees through disease prevention programs, on-
site clinical services, employee assistance programs, and"
3m-global-impact-report-2024.txt,"model
that enables well-being and productivity.
3M promotes a culture of health and well-being for our
employees through disease prevention programs, on-
site clinical services, employee assistance programs, and
comprehensive health care benefits.Who we are How we work What we create Site spotlights About report Leading with purpose | 3M 2024 Global Impact Report 21
Sustainability priorities (cont.)
Science for Community
Tier Topic Our actions Policies & context Goals & commitments Related SDG
2 Employee diversity, We advance meaningful actions toward a more equitable 3M Diversity, Equity & Inclusion Invest $50 million to address"
3m-global-impact-report-2024.txt,"the survey analysis. They generally
information focusing on items with high potential
• New topics included product innovation to agreed with the placement of Tier 1 topics but felt that
to impact 3M’s reputation and items that are of
solve climate, health, and safety challenges; the following Tier 2 and 3 topics were worthy of
the greatest importance to internal and external
safety of products and services; R&D; designing higher priority:
stakeholders as defined by the materiality assessment.
products with less or no waste; employee training,"
3m-global-impact-report-2024.txt,", reskilling indicators relevant to various sectors of the company
inequality; and supplier diversity of marginalized communities, and STEM education are also included in the report. 3M’s executive-
• Health and safety of employees and contractors • Plastic packaging and waste level Corporate Environmental Responsibility and
and ethical business moved from Tier 2 to Tier 1 • Air and water quality Sustainability Committee reviews and approves
priority topics covered in this Global Impact Report.
• Employee diversity moved from Tier 3 to Tier 2"
3m-global-impact-report-2024.txt,"ops and implements strategies and $2.05B
partnerships with leading community organizations
committed to advancing equitable outcomes in our
community. The 3Mgives Advisory Board guides
investment in cash and product
this work and comprises a diverse set of senior-level
contributions in communities
company executives.
where 3M operates
To ensure our support benefits the communities being
served, 3M provides financial support to key partners
and initiatives to help evaluate the outcomes of grants
and employee engagement initiatives."
3m-global-impact-report-2024.txt,"s. A large part of this effort
local community. involves donating excess inventory to leverage
Giving that starts at home products in meaningful ways. For example, our
Big hearts, matched strategic partnership with the Kids in Need Foundation
3M amplifies employees’ philanthropic impact through
helped to provide 3M products to under-resourced
With the 3M Volunteer Match program, 3M donates relevant matching gift programs. In the United States,
K–12 teachers and students across the U.S. In 2023,
money to eligible nonprofit organizations when a 3M matching gift programs match employee gifts"
3m-global-impact-report-2024.txt,"l ways. For example, our
Big hearts, matched strategic partnership with the Kids in Need Foundation
3M amplifies employees’ philanthropic impact through
helped to provide 3M products to under-resourced
With the 3M Volunteer Match program, 3M donates relevant matching gift programs. In the United States,
K–12 teachers and students across the U.S. In 2023,
money to eligible nonprofit organizations when a 3M matching gift programs match employee gifts
3M donated $29.8 million in products globally.
U.S.-based 3M employee or retiree volunteers in and volunteer time. In 2023, employees contributed"
3m-global-impact-report-2024.txt,"ing Anti-LGBTQ State
improved our global Diversity Index by 12.5 points, Legislation organized by the Human Rights Campaign
moving from 32.6% to 45.1% as we progress toward our and the Freedom for All Americans Education Fund.
2030 goal of 65.2% — or double our 2015 percentage. We also continue to support the United Nations LGBTI
Standards of Conduct for Business.Who we are How we work What we create Site spotlights About report Diversity, equity, and inclusion | 3M 2024 Global Impact Report 32
Employee Resource Networks – To advance a culture"
3m-global-impact-report-2024.txt,"d by the Human Rights Campaign
moving from 32.6% to 45.1% as we progress toward our and the Freedom for All Americans Education Fund.
2030 goal of 65.2% — or double our 2015 percentage. We also continue to support the United Nations LGBTI
Standards of Conduct for Business.Who we are How we work What we create Site spotlights About report Diversity, equity, and inclusion | 3M 2024 Global Impact Report 32
Employee Resource Networks – To advance a culture
3M earned a top score of 100 in the annual
of inclusion, we sponsor employee-led Employee"
3m-global-impact-report-2024.txt,"ernal
postings for jobs located in the U.S. In doing so, we
joined companies across the country that are at the
forefront of advancing pay equity through proactive
and transparent practices. It’s one more way we’re
reinventing our impact for people inside and outside
our walls.WWhhoo wwe are HHoow we work WWhat we create Site spotlights About report 3M 2024 Global Impact Report 33
How
we work
Corporate governance 34
Enterprise risk 38
Corporate Code of Conduct 40
Human rights 45
Compensation 50
Employee programs 52"
3m-global-impact-report-2024.txt,"encourages asking
Our impact
questions and raising concerns.
Global compliance program
We continually work to update our training program
3M’s Ethics & Compliance Department manages and
and engage with senior leaders, middle management,
administers our global compliance program, which is
and employees around the Code of Conduct. In 2023,
led by our chief ethics & compliance officer, a senior
we held an Ethics & Compliance Day event to further
vice president role. The department is staffed with
build employee engagement around our commitment"
3m-global-impact-report-2024.txt,"ogram cover all areas of our compliance program. Recent
employees, customers, vendors, and other external — one that’s agile and anticipates changes in both examples include Preventing Bribery & Corruption,
parties can report concerns and ask questions internal business strategy and the external landscape. Data Privacy, and Promoting Fair Competition. Each
(anonymously in most countries) Similar business conduct committees exist at country, course starts with a series of questions that identify
• Risk-based due diligence on business partners, regional, and area levels to prioritize and operationalize the employee’s knowledge level. The employee is then"
3m-global-impact-report-2024.txt,"n most countries) Similar business conduct committees exist at country, course starts with a series of questions that identify
• Risk-based due diligence on business partners, regional, and area levels to prioritize and operationalize the employee’s knowledge level. The employee is then
potential acquisitions, equity investments, and compliance activities. presented with scenario-based questions tailored to
candidates for hiring and promoting this level. To successfully complete the course, the
The chief ethics & compliance officer provides employee must demonstrate proficiency in the topic."
3m-global-impact-report-2024.txt,"thics & Compliance Department is responsible
Upholding 3M’s Code of Conduct is the responsibility
for reviewing every reported business conduct
of everyone acting on 3M’s behalf. We encourage our
concern and deciding which require an investigation.
employees to ask questions and report concerns to
If an investigation is needed, we assign an appropriate
management, 3M’s Ethics & Compliance Department,
investigative resource. The results may indicate
3M legal counsel, 3MEthics.com, their assigned
a need for focused employee training or process"
3m-global-impact-report-2024.txt,"intain anonymity. If the reporter expresses concern
secure internet portal that does not trace or show that they’re a target of retaliation, the investigations
user screen names. In further support of anonymous team will start a separate investigation or take other
reporting, a feature was implemented to allow a action to ensure the reporter is protected. 3M takes a
reporter to enter their email address (not visible to 3MEthics.com is a strong position against retaliation, which is reflected in
anyone in the system) to receive communications from 24-hour confidential our Non-Retaliation Policy and within 3M’s Employee"
3m-global-impact-report-2024.txt,"ociations working to improve help identify risks in the target company before Global Ethics &
compliance controls and reduce legal risk. an acquisition or investment is initiated and help
Compliance event
accelerate our efforts to integrate an acquired
3M’s Code of Conduct requires compliance with
company’s employees into 3M’s compliance program
In 2023, we held a global Ethics & Compliance Day
all applicable anti-bribery laws, including the U.S.
and culture. Ultimately, the Ethics & Compliance
event to further build employee engagement around"
3m-global-impact-report-2024.txt,"teams around the globe
to identified risks with specific actions, such as a tone of ethical business conduct for their teams. promoted and amplified the event, with some local
training, the inclusion of relevant contractual terms, Evaluation interviews delve into understanding this and leaders taking the opportunity to explore the value of
and other risk-mitigating controls. Once approved, identifying opportunities for improvement. Evaluations unwavering integrity at 3M with their teams. These
we have an active monitoring program for third-party can be executed in person (on-site) or virtually while activities resulted in one of our highest employee"
3m-global-impact-report-2024.txt,"d beyond to bring the 3M Code of Conduct to life
The Ethics & Compliance Department manages a
in the work they do and the decisions they make.
centralized global system that automates the process
Recipients of the Living the Code Award receive a
for preapproving and documenting the offering and
letter from our chief ethics & compliance officer.
receiving of gifts, entertainment, meals, sponsorships,
Recipients also receive points that can be redeemed
and charitable contributions. Through system
through the 3M corporate employee recognition"
3m-global-impact-report-2024.txt,"nd process by clarifying the required information for
appropriate review of requests.
Data analysis and metrics
Engaging employees The Ethics & Compliance Department continues to Finally, in 2023 we collaborated with the data privacy
legal team to update our conflict-of-interest reporting
make strides in data science. We leverage enhanced
in compliance and management process, as well as our hotline
metrics dashboards to analyze emerging issues
reporting platform, to ensure alignment with global
In 2023, our engagement communications each across different employee populations (seniority,"
3m-global-impact-report-2024.txt,"abor organization or controls so these practices do not occur within our
our employees globally, demonstrate our commitment
covered by a labor agreement.1 In some countries, organization or supply chains.
to upholding human rights in the work environment:
collective bargaining rights are not protected or
• We respect the dignity and worth of all individuals recognized. Nevertheless, 3M assures employees that Child labor and minimum hiring age
the freedom of association and collective bargaining
• We encourage the initiative of each employee Our commitment to helping abolish child labor is"
3m-global-impact-report-2024.txt,"is
aspects of our Human Rights Policy apply to all 3M
• We challenge individual capabilities employees worldwide. evident in our Human Rights Policy and Modern
Slavery Statement. Although permissible hiring age
• We provide equal opportunity for development
In the event of business operations changes, we follow may vary based on local laws, 3M has adopted global
A respectful work environment all applicable local laws and regulations regarding expectations regarding the hiring of minors. Even if
consultation and notice periods for both represented local law permits it, 3M will not hire any employee"
3m-global-impact-report-2024.txt,"ws impose a minimum age
activities in a way that protects health, safety, and Modern slavery requirement higher than 16, we follow that stricter
the environment. See 3M’s Respectful Work standard. See our Supplier Responsibility Code for
Modern slavery encompasses several human rights
Environment Principle. details on supplier requirements.
issues, including forced labor, bonded labor, child
To support this, we offer a comprehensive suite of labor, human trafficking, and slavery-like practices.
employee benefits, including options for employees to Our stance against these practices is robust."
3m-global-impact-report-2024.txt,"onment. See 3M’s Respectful Work standard. See our Supplier Responsibility Code for
Modern slavery encompasses several human rights
Environment Principle. details on supplier requirements.
issues, including forced labor, bonded labor, child
To support this, we offer a comprehensive suite of labor, human trafficking, and slavery-like practices.
employee benefits, including options for employees to Our stance against these practices is robust.
work remotely and flexibly. Learn more about benefits
and our Work Your Way model in the Employee"
3m-global-impact-report-2024.txt,"nd human rights, labor practices, or environmental or
related regulations. As we become aware of potential safety issues, we encourage them to raise questions
risks from specific regions or countries, we review our or report misconduct, potential misconduct, or
relationships and businesses to determine if we need concerning behaviors.
to take further action.
Employees also receive training around channels for
See our Human Rights Policy, Modern Slavery reporting and resolving concerns, such as:
Statement, and Supplier Responsibility Code • Employee’s management"
3m-global-impact-report-2024.txt,"rgers, and
or to report a concern. More information is also in
divestitures — to identify salient human rights issues
the Corporate Code of Conduct section.
relevant to our business.
3M prohibits retaliation against anyone who, in
These evaluations are integrated into other assessment
good faith, asks a question, reports a concern, or
and management processes and are based on material
participates in a company investigation. Learn more in
issues regardless of where they’re identified within the
3M’s Employee Obligations and Reporting Principle."
3m-global-impact-report-2024.txt,"d faith, asks a question, reports a concern, or
and management processes and are based on material
participates in a company investigation. Learn more in
issues regardless of where they’re identified within the
3M’s Employee Obligations and Reporting Principle.
value chain.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Human rights | 3M 2024 Global Impact Report 48
Potential salient risks and prevention plans Human resource assessments
and audits
Segment Potential salient risk1 Prevention plan To help protect our employees’ rights, our Employee"
3m-global-impact-report-2024.txt,"Our commitment Director and executive
compensation
Working with an independent compensation
3M creates a professional work environment that
consultant, the Nominating and Governance
promotes innovation and rewards performance.
Committee annually reviews the status of the Board of
We rely on our global compensation principles to
Directors’ compensation in relation to peer companies
provide fair and equitable pay that’s competitive in
and recommends to the Board any changes in
the current market.
compensation for non-employee directors."
3m-global-impact-report-2024.txt,"uity incentives in the form of annual
restricted stock units (RSUs), stock options, stock
appreciation rights (SARs), and/or performance-
based awards
The proportion of total rewards aligned with incentive
pay increases with job grade and reflects the job
Our “Unwavering integrity” element
grade’s influence on both short- and long-term
company results. specifically calls for us to deepen our
dedication to sustainability and to our
For more information on 3M’s compensation and
global communities
benefits, visit Working at 3M: Benefits.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 52"
3m-global-impact-report-2024.txt,"ed with incentive
pay increases with job grade and reflects the job
Our “Unwavering integrity” element
grade’s influence on both short- and long-term
company results. specifically calls for us to deepen our
dedication to sustainability and to our
For more information on 3M’s compensation and
global communities
benefits, visit Working at 3M: Benefits.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 52
Employee programs"
3m-global-impact-report-2024.txt,"We empower our employees to
bring innovation into their work and focus on making
Through 3M Learn, our integrated learning and
an impact in the world.
development platform, employees can access and
explore personalized learning content and curated
resources. 3M Learn contains tens of thousands
of learning resources in more than 30 languages.
Content is organized and aligned to directly support
our organizational priorities, and employees receive
recommended content based on their role. 3M Learn
reaches our entire global workforce.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 53"
3m-global-impact-report-2024.txt,"rmats. In 2023, 3M offered
3M’s Tech Forum is a self-directed and self-organized
more than 100 internships in the United States.
catalyst for interaction, growth, and development
among our technical community. Members benefit
from sharing research and exchanging ideas on any
number of topics, whether related to their role at 3M
or not. Tech Forum comprises dozens of topic-specific
chapters across the globe, including for sustainability
and climate.
Employees completed almost
775Konline learning
experiencesWWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 54"
3m-global-impact-report-2024.txt,"th, and development
among our technical community. Members benefit
from sharing research and exchanging ideas on any
number of topics, whether related to their role at 3M
or not. Tech Forum comprises dozens of topic-specific
chapters across the globe, including for sustainability
and climate.
Employees completed almost
775Konline learning
experiencesWWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 54
Setting new employees up for success Global executive and leadership The employee engagement survey provides a broad"
3m-global-impact-report-2024.txt,"apters across the globe, including for sustainability
and climate.
Employees completed almost
775Konline learning
experiencesWWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 54
Setting new employees up for success Global executive and leadership The employee engagement survey provides a broad
coaching perspective across the enterprise and serves as a
We invest in onboarding new employees so they have
baseline for regularly assessing employee engagement"
3m-global-impact-report-2024.txt,"r employees, and execute an
action plan to address identified issues. The process
15% Culture
Performance management includes supports that make it easier to bring about
For over 70 years, 3M’s unique 15% Culture has successful change, such as accountability checks and
encouraged our people to set aside 15% of their work Our approach to performance management, called tools for acting on the results.
Performance Everyday, empowers employees to
time to pursue and cultivate ideas that excite them.
think about performance beyond midyear and year- Outside of the employee engagement survey, we"
3m-global-impact-report-2024.txt,"mployees were rated, ranked. This is a cycle of continual improvement: We
technologies and delivery methods. We offer many
and these employees and their supervisors received measure, assess, and adapt year after year to ensure
development opportunities and programs throughout
tasks to complete the year-end process in the our surveys support sustainable corporate success.
a leader’s career, spanning every geographic area and
performance system.
3M business. Programs include a range of self-paced
Employee footprint and"
3m-global-impact-report-2024.txt,"throughout
tasks to complete the year-end process in the our surveys support sustainable corporate success.
a leader’s career, spanning every geographic area and
performance system.
3M business. Programs include a range of self-paced
Employee footprint and
online offerings that cover core skill development
Learning from listening
aligned to business priorities and 3M’s culture. They staying power
also focus on the future by embedding inclusive
For more than 50 years, 3M has conducted surveys to
leadership strategies, promoting development through Employee headcount as of December 31, 2023,"
3m-global-impact-report-2024.txt,"e success.
a leader’s career, spanning every geographic area and
performance system.
3M business. Programs include a range of self-paced
Employee footprint and
online offerings that cover core skill development
Learning from listening
aligned to business priorities and 3M’s culture. They staying power
also focus on the future by embedding inclusive
For more than 50 years, 3M has conducted surveys to
leadership strategies, promoting development through Employee headcount as of December 31, 2023,
gather employee observations, attitudes, and opinions,"
3m-global-impact-report-2024.txt,"focus on the future by embedding inclusive
For more than 50 years, 3M has conducted surveys to
leadership strategies, promoting development through Employee headcount as of December 31, 2023,
gather employee observations, attitudes, and opinions,
corporate social responsibility, and offering mentoring was approximately 85,000. See additional
including an annual engagement survey that seeks
opportunities. information in our metric tables and the
input from global employees. In 2023, the response
Employee demographics tab of ESG metrics,"
3m-global-impact-report-2024.txt,"ns,
corporate social responsibility, and offering mentoring was approximately 85,000. See additional
including an annual engagement survey that seeks
opportunities. information in our metric tables and the
input from global employees. In 2023, the response
Employee demographics tab of ESG metrics,
rate for the engagement survey was 53%.
which also includes more detailed analysis. Visit
Leadership development is a our Diversity, Equity & Inclusion (DEI) Report
for diversity-related demographics.
competitive advantage for 3MWWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 55"
3m-global-impact-report-2024.txt,"in our metric tables and the
input from global employees. In 2023, the response
Employee demographics tab of ESG metrics,
rate for the engagement survey was 53%.
which also includes more detailed analysis. Visit
Leadership development is a our Diversity, Equity & Inclusion (DEI) Report
for diversity-related demographics.
competitive advantage for 3MWWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 55
3M experienced a decrease in our global employee- All regular full-time employees in the United States In 2023, the equivalent of more than $30 million in"
3m-global-impact-report-2024.txt,"es it easy and convenient to recognize fellow 3M on leave for annual encampment or training may be
access to this information through our global employees when they embody our culture or go above entitled to differential pay for the difference between
reporting tool. and beyond. Our entire workforce, both production their 3M pay and their military pay.
and nonproduction employees, can give and receive
recognition points in real time on the platform.
Highly competitive pay,
rewards, and services
The more an employee contributes to 3M’s"
3m-global-impact-report-2024.txt,"earn more in the Compensation section and work and thriving as
at Working at 3M: Your pay. a family. All eligible 31% 32%
2023 1,220 1,280
U.S. employees who
Benefits to support our employees 69% 68%
have newborn or newly
3M offers many resources to enhance employees’ adopted children are
lives, including: eligible for up to 20
weeks (10 weeks paid
• Medical, dental, and vision plan options
and 10 weeks unpaid)
• Savings and retirement plans of parental leave. In
2023, 1,220 (rounded to 30% 31%
• 3M employee stock purchase plan"
3m-global-impact-report-2024.txt,"esources to enhance employees’ adopted children are
lives, including: eligible for up to 20
weeks (10 weeks paid
• Medical, dental, and vision plan options
and 10 weeks unpaid)
• Savings and retirement plans of parental leave. In
2023, 1,220 (rounded to 30% 31%
• 3M employee stock purchase plan
three significant figures) 2022 1,240 1,270
• 3M Healthy Living Program for wellness resources U.S.-eligible employees 70% 69%
and discounts
participated, including
373 women and 844 men.
■ Female ■ Male
1. N umbers for ""Employees returning from leave"" may include those who started leave in the previous year and returned in the indicated year.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 56"
3m-global-impact-report-2024.txt,"ear and returned in the indicated year.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 56
Work Your Way and flexibility While flexibility looks different for production
employees because of the nature of their
COVID-19 showed us that a more flexible way of
responsibilities, our objective to help support
working is essential for 3M’s continued growth and
well-being remains, and we continue to explore
employee well-being. The result was Work Your Way,"
3m-global-impact-report-2024.txt,"conference – In 2023
we held a first-of-its-kind global EHS conference
As part of our commitment to maintain high-quality In 2023, we used this proven culture initiative in a for site leaders. Site managers and EHS leaders
EHS professional development of our teams, the global effort to drive two priorities: attended together to learn how to “Drive Responsible
global EHS team hosts topic-specific meetings and • Clarify EHS accountability, leadership, and Operations and Create Meaningful Change.”
workshops where we share our knowledge and learn employee engagement expectations across all Participants gained clarity on how to contribute to"
3m-global-impact-report-2024.txt,"dards, authentic engagement,
and relevant resources and tools. Instead of using the
standard model of one global conference, we localized
the conference across eight separate weeklong
cohorts all over the world. By the end of the year,
leaders from manufacturing sites, distribution centers,
and R&D operations had attended, as well as their
senior operational and EHS leadership — nearly 400
leaders in all.
EHS awards – Our quarterly CEO Environment,
Health, and Safety Award recognizes sites that
display excellence in employee safety, compliance,"
3m-global-impact-report-2024.txt,"and tools. Instead of using the
standard model of one global conference, we localized
the conference across eight separate weeklong
cohorts all over the world. By the end of the year,
leaders from manufacturing sites, distribution centers,
and R&D operations had attended, as well as their
senior operational and EHS leadership — nearly 400
leaders in all.
EHS awards – Our quarterly CEO Environment,
Health, and Safety Award recognizes sites that
display excellence in employee safety, compliance,
spill prevention, employee well-being, and advancing"
3m-global-impact-report-2024.txt,"ty Award recognizes sites that
display excellence in employee safety, compliance,
spill prevention, employee well-being, and advancing
EHS culture. Other EHS awards include the 3M EHS
Achievement Award for innovation and leadership, the
3M Noise Control Award, the 3M Applied Ergonomics
Innovation Award, and the 3M Pollution Prevention
Pays (3P) program.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report EHS management | 3M 2024 Global Impact Report 59
EHS capital investments • Employee Obligations and Reporting Principle Environmental site assessments"
3m-global-impact-report-2024.txt,"EHS management and performance,
• Safety and Health Policy applies to 3M operations
including a full range of environmental compliance and
everywhere, including new acquisitions.
operational performance metrics.
• Workplace EHS Principle describes our EHS
commitments, including how we contribute to the
health, safety, and well-being of our communities.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report EHS management | 3M 2024 Global Impact Report 60
Applying ISO 14001 Employee health and Workplace safety"
3m-global-impact-report-2024.txt,"e free 3M’s Ergonomics Risk Reduction Process is a
in our global learning system. We offer web-based vaccinations, healthy cafeteria options, on-site fitness comprehensive global program that identifies and
courses on general awareness, internal auditors, centers and medical care, telehealth, adoption and assesses ergonomic risk in industrial and office
leadership management, and more. foster care support, and the flexible Work Your Way workspaces.
program. Learn more about Work Your Way in the
Employee programs section. In 2019, we required all manufacturing sites to"
3m-global-impact-report-2024.txt,"travel health education. We assist all employees standard.
who may require medical treatment while traveling
outside their home country.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report EHS management | 3M 2024 Global Impact Report 61
Process safety In 2023, of our processes involving that increase the risk of work-related stress and can
91% potential workplace lead to psychological or physical harm.
3M is committed to rigorously managing the risks
associated with hazardous processes, such as those exposure to chemicals or With the potential to affect every employee — their"
3m-global-impact-report-2024.txt,"to record
EHS requirements
and measure injury and illness rates worldwide. At all
• Identify and manage EHS risks On a regular basis, the EHS&PS executive committee sites within our operational control, 3M employees
• Promote an EHS culture of self-discovery and reviews audit findings and the 3M Science, Technology and contingent employees are covered by our injury
continual improvement & Sustainability Committee of the Board of Directors and illness recordkeeping rules. See incident rate data
is updated on the overall status of the audit program. in our metric tables and the Employee health & safety"
3m-global-impact-report-2024.txt,"ack SIEs not only for 3M employees
and medical response. While we hope to never use resilience plan to help prevent and prepare for,
but also contractors and contingent workers.
them, it’s critically important to have current plans respond to, and recover from incidents, emergencies,
Every week, any SIEs and potential SIEs identified in place. and serious, severe, or crisis situations. We prepare
in our global operations are reviewed by executive all plans in accordance with standard practices,
Workplace and employee security"
3m-global-impact-report-2024.txt,"supports local operations in severe situations. The enterprisewide business continuity program for
For example, contractors must complete a
GSOC also facilitates travel safety and security and 3M. Along with our incident and crisis management
prequalification process before they perform work
coordinates emergency care and support for workers. protocols, the business continuity program has been
on 3M premises. This process includes reviewing the
critical in guiding us through the Russia-Ukraine
contractor’s employee injury/illness rates, experience 3M sites are accessible with badge access and"
3m-global-impact-report-2024.txt,"facilitates travel safety and security and 3M. Along with our incident and crisis management
prequalification process before they perform work
coordinates emergency care and support for workers. protocols, the business continuity program has been
on 3M premises. This process includes reviewing the
critical in guiding us through the Russia-Ukraine
contractor’s employee injury/illness rates, experience 3M sites are accessible with badge access and
war and natural and other disasters affecting our
modification rates, employee training records, and protected by other physical security mechanisms."
3m-global-impact-report-2024.txt,"ffe, U.K.
3M Aycliffe is a flagship manufacturing site in the In addition, 3M Aycliffe is currently implementing Giving to the community
U.K. with over 270 employees. Since opening in 1966, projects to increase recycling throughout the site, as
it’s become a market leader in the development and well as to reduce waste in all production areas. 3M Aycliffe supports its local community in several
global supply of disposable and reusable respirators ways, including with volunteer work, fundraising,
and filter materials. 3M Aycliffe’s production levels Employee engagement charitable donations, and social events. Highlights in"
3m-global-impact-report-2024.txt,"ildren at Christmas, donating
funds for troubled youth and homeless people,
cancer research, and more. For the site’s most recent
Volunteer Day in September 2023, more than 25% of
Workplace safety
employees volunteered 120 collective hours to local
organizations whose missions range from improving
Health and safety are paramount at 3M Tilloy. The site
literacy skills to caring for abandoned pets.
has implemented a number of ergonomic and safety
improvement programs in its continual drive toward
employee well-being."
3m-global-impact-report-2024.txt,"ollect EHS&PS data through the assumptions and expectations of future events and
corporatewide EHS&PS reporting systems; (4) 3M’s trends that are subject to risks and uncertainties.
carbon emissions and renewable energy data as it Actual future results and trends may differ materially
relates to renewable energy contracts with third from historical results or those reflected in any such
parties and utility-controlled generation or distribution forward-looking statement depending on a variety of
networks; (5) social data as it relates to employee factors and circumstances, some of which are outside"
3m-global-impact-report-2024.txt,"cting through A2LA — a signatory to the International track and collect environmental, health, and safety
3M is located in 3M’s Annual Report on Form 10-K Laboratory Accreditation Cooperation Mutual data through the corporatewide EHS reporting
under “Cautionary Note Concerning Factors That May Recognition Arrangement (ILAC MRA). Although systems (e.g., Environmental Targets Database, EHS
Affect Future Results” and “Risk Factors” in Part I, it’s not possible to put 3M’s GHG inventory 360, etc.).
Items 1 and 1A; and in 3M’s Quarterly Reports (Form methodology on the lab’s scope of accreditation, • Social data – The data related to employee metrics,"
3m-global-impact-report-2024.txt,"44-1000, United States
Ownership and legal form: Annual Report on Form 10-K
2-2 Entities included in the organization’s sustainability reporting About report 103
2-3 Reporting period, frequency and contact point About report 103
Sustainability@mmm.com
2-4 Restatements of information About report 103
2-5 External assurance Assurance statement 124
2-6 Activities, value chain and other business relationships 3M.com
103
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
93
Employee programs 52"
3m-global-impact-report-2024.txt,"bout report 103
Sustainability@mmm.com
2-4 Restatements of information About report 103
2-5 External assurance Assurance statement 124
2-6 Activities, value chain and other business relationships 3M.com
103
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
93
Employee programs 52
Suppliers 79Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 108
Disclosure
Description Cross-reference or direct answer Page
number
2-7 Employees ESG metrics, Employee demographics tab"
3m-global-impact-report-2024.txt,"l assurance Assurance statement 124
2-6 Activities, value chain and other business relationships 3M.com
103
About report
Annual Report on Form 10-K, Item 1
Customer-inspired innovation
93
Employee programs 52
Suppliers 79Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 108
Disclosure
Description Cross-reference or direct answer Page
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 52"
3m-global-impact-report-2024.txt,"Employee programs 52
Suppliers 79Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 108
Disclosure
Description Cross-reference or direct answer Page
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 52
Annual Report on Form 10-K, Item 1. Business – Resources – Human Capital
Environmental, health, and safety management 57
Metric tables: social performance, employees
2-8 Workers who are not employees ESG metrics, Employee demographics tab"
3m-global-impact-report-2024.txt,"spotlights About report GRI index | 3M 2024 Global Impact Report 108
Disclosure
Description Cross-reference or direct answer Page
number
2-7 Employees ESG metrics, Employee demographics tab
3M Diversity, Equity & Inclusion (DEI) Report
Employee programs 52
Annual Report on Form 10-K, Item 1. Business – Resources – Human Capital
Environmental, health, and safety management 57
Metric tables: social performance, employees
2-8 Workers who are not employees ESG metrics, Employee demographics tab
52
Employee programs"
3m-global-impact-report-2024.txt,"ee Charter
Proxy Statement, Director compensation and Executive compensation
2-21 Annual total compensation ratio Proxy Statement, Executive compensation – Pay ratio
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. The breakdown to calculate the median percentage increase does not accurately
reflect our workforce levels and process at 3M to assure equitable remuneration.
Additional details on our process can be found in the Compensation and the Employee"
3m-global-impact-report-2024.txt,"other retirement plans Annual Report on Form 10-K, Item 8 – Note 14: Pension and Postretirement Benefit Plans
201-4 Financial assistance received from government Annual Report on Form 10-K, Item 8 – Note 1: Significant Accounting Policies
GRI 202 Market Presence 2016 - -
3-3 Management of material topics Communities 24Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 111
Disclosure
Description Cross-reference or direct answer Page
number
202-1 Ratios of standard entry-level wage by gender compared to Employee programs 52"
3m-global-impact-report-2024.txt,"3 Management of material topics Communities 24Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 111
Disclosure
Description Cross-reference or direct answer Page
number
202-1 Ratios of standard entry-level wage by gender compared to Employee programs 52
local minimum wage
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. Find more about our process in the Compensation and the Employee programs"
3m-global-impact-report-2024.txt,"irected to disposal ESG metrics, Environmental tab
Circular materials 64
Metric tables: environmental performance 128
GRI 308 Supplier environmental assessment 2016 - -
3-3 Management of material topics Suppliers 79
Supplier Responsibility Code
308-1 New suppliers that were screened using Suppliers 79
environmental criteria
Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 79
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 52Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 116"
3m-global-impact-report-2024.txt,"ility Code
308-1 New suppliers that were screened using Suppliers 79
environmental criteria
Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 79
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 52Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 116
Disclosure
Description Cross-reference or direct answer Page
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab"
3m-global-impact-report-2024.txt,"Report 116
Disclosure
Description Cross-reference or direct answer Page
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab
3M does not classify divestiture turnover differently from other types of workforce
reduction. In 2023, we conducted processes related to the spinoff of our Health Care
business that affect our total turnover rate. For this reason, we are not providing the rate
for 2023 but expect to report for 2024 in our 2025 Global Impact Report.
401-2 Benefits provided to full-time employees that are not provided Employee programs 52"
3m-global-impact-report-2024.txt,"ESG metrics, Employee demographics tab
3M does not classify divestiture turnover differently from other types of workforce
reduction. In 2023, we conducted processes related to the spinoff of our Health Care
business that affect our total turnover rate. For this reason, we are not providing the rate
for 2023 but expect to report for 2024 in our 2025 Global Impact Report.
401-2 Benefits provided to full-time employees that are not provided Employee programs 52
to temporary or part-time employees
401-3 Parental leave Employee programs 52"
3m-global-impact-report-2024.txt,"rently from other types of workforce
reduction. In 2023, we conducted processes related to the spinoff of our Health Care
business that affect our total turnover rate. For this reason, we are not providing the rate
for 2023 but expect to report for 2024 in our 2025 Global Impact Report.
401-2 Benefits provided to full-time employees that are not provided Employee programs 52
to temporary or part-time employees
401-3 Parental leave Employee programs 52
GRI 402 Labor/management relations 2016 - -
3-3 Management of material topics Employee programs 52"
3m-global-impact-report-2024.txt,", we conducted processes related to the spinoff of our Health Care
business that affect our total turnover rate. For this reason, we are not providing the rate
for 2023 but expect to report for 2024 in our 2025 Global Impact Report.
401-2 Benefits provided to full-time employees that are not provided Employee programs 52
to temporary or part-time employees
401-3 Parental leave Employee programs 52
GRI 402 Labor/management relations 2016 - -
3-3 Management of material topics Employee programs 52
402-1 Minimum notice periods regarding operational changes Employee programs 52"
3m-global-impact-report-2024.txt,"ticipation, consultation, and communication on Environmental, health, and safety management 57
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 57
403-6 Promotion of worker health Environmental, health, and safety management 57
403-7 Prevention and mitigation of occupational health and safety Environmental, health, and safety management 57
impacts directly linked by business relationships
Innovation management 85
403-8 Workers covered by an occupational health and safety Employee programs 52"
3m-global-impact-report-2024.txt,"g on occupational health and safety Environmental, health, and safety management 57
403-6 Promotion of worker health Environmental, health, and safety management 57
403-7 Prevention and mitigation of occupational health and safety Environmental, health, and safety management 57
impacts directly linked by business relationships
Innovation management 85
403-8 Workers covered by an occupational health and safety Employee programs 52
management system
Environmental, health, and safety management 57
403-9 Work-related injuries ESG metrics, Employee health & safety tab"
3m-global-impact-report-2024.txt,"ed by an occupational health and safety Employee programs 52
management system
Environmental, health, and safety management 57
403-9 Work-related injuries ESG metrics, Employee health & safety tab
Environmental, health, and safety management 57
Metric tables: health and safety; historical metrics, health and safety 128Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 117
Disclosure
Description Cross-reference or direct answer Page
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab"
3m-global-impact-report-2024.txt,"ment 57
Metric tables: health and safety; historical metrics, health and safety 128Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 117
Disclosure
Description Cross-reference or direct answer Page
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 57
Metric tables: health and safety; historical metrics, health and safety 128
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 52"
3m-global-impact-report-2024.txt,"trics, health and safety 128Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 117
Disclosure
Description Cross-reference or direct answer Page
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 57
Metric tables: health and safety; historical metrics, health and safety 128
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 52
404-1 Average hours of training per year per employee Employee programs 52"
3m-global-impact-report-2024.txt,"lights About report GRI index | 3M 2024 Global Impact Report 117
Disclosure
Description Cross-reference or direct answer Page
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 57
Metric tables: health and safety; historical metrics, health and safety 128
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 52
404-1 Average hours of training per year per employee Employee programs 52
404-2 Programs for upgrading employee skills and transition Employee programs 52"
3m-global-impact-report-2024.txt,"nce or direct answer Page
number
403-10 Work-related ill health ESG metrics, Employee health & safety tab
Environmental, health, and safety management 57
Metric tables: health and safety; historical metrics, health and safety 128
GRI 404 Training and education 2016 - -
3-3 Management of material topics Employee programs 52
404-1 Average hours of training per year per employee Employee programs 52
404-2 Programs for upgrading employee skills and transition Employee programs 52
assistance program
404-3 Percentage of employees receiving regular performance and Employee programs 52"
3m-global-impact-report-2024.txt,"n management 85
Social capital Customer welfare Customer-inspired innovation 93
Innovation management 85
Product Safety, Quality, and Stewardship Principle
Social capital Selling products and product labeling Advertising and Product Representation Policy
Customer-inspired innovation 93
Innovation management 85
Product Safety, Quality, and Stewardship Principle
Human Labor practices Corporate Code of Conduct 40
capital
Ethics & Compliance
Human rights 45
Suppliers 79
Supplier Responsibility Code
Human Employee health and safety ESG metrics, Employee, health & safety tab"
3m-global-impact-report-2024.txt,"product labeling Advertising and Product Representation Policy
Customer-inspired innovation 93
Innovation management 85
Product Safety, Quality, and Stewardship Principle
Human Labor practices Corporate Code of Conduct 40
capital
Ethics & Compliance
Human rights 45
Suppliers 79
Supplier Responsibility Code
Human Employee health and safety ESG metrics, Employee, health & safety tab
capital
Environmental, health, and safety management 57
Metric tables: 3M historical metrics; health and safety 128
Human Employee engagement, diversity, and inclusion 3M Diversity, Equity & Inclusion (DEI) Report"
3m-global-impact-report-2024.txt,"usivity, materiality, responsiveness, and impact sources for the corporate and manufacturing facilities, installation of renewable energy
as discussed below. production on 3M sites, as well as obtaining associated renewable energy credits for the
direct procurement of renewable electricity.
Inclusivity
▪ 3M has reached out globally to present a wide variety of training opportunities to targeted
Based on discussions with 3M, their processes appear to be inclusive of stakeholders. Team
audiences.
member communication is initiated through Yammer from the Employee Sustainability Group."
3m-global-impact-report-2024.txt,"pstream Transportation and Metric Tons CO2e 1,220,000
% W oU rn kd foe rr cre ep (r ee ns te ryn -t le ed v eG l r to ou mps a nin a 3 geM m U e. nS t. ) % 8.98 Offsite Recycle Metric Tons 117,000 Renewable Energy % Total Electricity Use 56.2 Category 5 - Waste Generated in Operations Metric Tons CO2e 182,000
% W oU rn kd foe rr cre ep (r me ase nn at ge ed m g er no tu )ps in 3M U.S. % 6.33 Category 6 - Business Travel Metric Tons CO2e 31,400
Water Metrics Units Value Other Metrics Units Value
Total Water Use (Absolute) Million Cubic Meters 34.8 C Pru os dto um cte Ur sG eH -G C uA mvo ui ld aa tn ivc ee s t ih nr co eu 2g 0h 1 3 5M M COil 2li eon Metric Tons 135 Category 7 - Employee Commuting Metric Tons CO2e 208,000"
3m-global-impact-report-2024.txt,"social, and governance
metrics, charts, and a glossary of terms.
Values reflect calendar years, which align with 3M’s fiscal years. Where attainable and justified, metrics are rounded to three significant figures. Some totaled metrics may
not match metrics summed together after rounding. Restatements are made when changes are + or - 5% of the original data point. For additional details about organizational
boundaries, data collection, adjustments, and verification, see the About report section.
Employee demographics"
3m-global-impact-report-2024.txt,"significant figures. Some totaled metrics may
not match metrics summed together after rounding. Restatements are made when changes are + or - 5% of the original data point. For additional details about organizational
boundaries, data collection, adjustments, and verification, see the About report section.
Employee demographics
Metric Metric units RY-2023 RY-2022 RY-2021 2022-2023 Boundary & scope
annual
change, %
Global full-time equivalent employees Total number 84,900 91,600 94,700 -7.31 N/A
Global employee (headcount) Total number 85,300 92,100 95,300 -7.38 N/A"
3m-global-impact-report-2024.txt,"3 boundary. 2021 results have not yet been
recalculated to account for this shift in emissions.
Scope 3, category 6 Metric tons CO2e 31,400 31,500 20,500 -0.317 Calculated from 3M primary data on business travel.
(business travel) In 2022, boundary was expanded to include personal
car mileage traveled for business purposes. 2021 results
were recalculated based on this change.
Scope 3, category 7 Metric tons CO2e 208,000 261,000 357,000 -20.3 In 2022, boundary was expanded to include contingent
(employee commuting) workers regularly reporting to a 3M location. 2021"
3m-global-impact-report-2024.txt,"our previous 2025 goal to stay below 50% of our 2002
emissions since 2002
baseline, meaning 3M’s 2030 scope 1 and 2 emissions will now
be reduced by more than 85% from 2002 levels. 2019 is the
baseline measurement year.Who we are How we work What we create Site spotlights About report Leading with purpose | 3M 2024 Global Impact Report 13
45.1% 2.28M
global management
diversity learning experiences
On pace – Double the pipeline of diverse talent in On pace – Advance economic equity by creating
management globally to build a diverse workforce 5 million unique STEM and skilled trades learning"
3m-global-impact-report-2024.txt,"sented individuals by the
end of the 2025-26 school year3
Learn more
Community
2015 2030 goal
Learn more
6.33% 2021 2025 goal
U.S. management
diversity
On pace – Double the representation of
underrepresented groups in management positions
$70.2M
Create a more positive invested in cash
in our U.S. workforce2
and products
world through science Learn more On pace – Invest cash and products for education,
2020 Ongoing goal community, and environmental programs
and inspire people to
8.98%
Learn more
join us U.S. workforce diversity 2015 2025 goal"
3m-global-impact-report-2024.txt,"l
On pace – Double the representation of
underrepresented groups from entry-level through
management in our U.S. workforce2
108K
skills-based
Learn more
2023 goal results work hours
2020 Ongoing goal
On pace – Provide 300,000 work hours of skills-
100%
based volunteerism by 3M employees to improve
pay equity globally lives and help solve society’s toughest challenges by
the end of 20254
On pace – Maintain or achieve 100% pay equity globally
Learn more Learn more
2020 Ongoing goal 2019 2025 goal
workforce"
3m-global-impact-report-2024.txt,"Ongoing goal
On pace – Provide 300,000 work hours of skills-
100%
based volunteerism by 3M employees to improve
pay equity globally lives and help solve society’s toughest challenges by
the end of 20254
On pace – Maintain or achieve 100% pay equity globally
Learn more Learn more
2020 Ongoing goal 2019 2025 goal
workforce
$39.4M
development and
STEM investment 8.44M
1. In 2021, 3M updated the goal maturity date to 2030 from 2025. On pace – Invest $50 million to address racial training instances
2. Underrepresented groups in our 3M U.S. workforce include Black/ opportunity gaps in the U.S. through workforce"
3m-global-impact-report-2024.txt,"with less or no waste1
media, finance, trade associations, and think tanks, and • Manufacturing waste
they represented 3M’s four business groups and all
• Community health, safety, and well-being1
areas of operation.
• Responsible sourcing and supplier sustainability1
Following the 2022 assessment, we analyzed the • Human rights and labor practices in the supply chain1
insights and inputs from stakeholders and developed
• R&D investment1
our sustainability priorities. The table on the next page
• STEM education, training, and workforce development"
3m-global-impact-report-2024.txt,"we work What we create Site spotlights About report Leading with purpose | 3M 2024 Global Impact Report 21
Sustainability priorities (cont.)
Science for Community
Tier Topic Our actions Policies & context Goals & commitments Related SDG
2 Employee diversity, We advance meaningful actions toward a more equitable 3M Diversity, Equity & Inclusion Invest $50 million to address
equity, and inclusion future for our employees around the world, including (DEI) Report racial opportunity gaps in the U.S.
training, development, and recruitment efforts focused on through workforce development"
3m-global-impact-report-2024.txt,"racial opportunity gaps in the U.S.
training, development, and recruitment efforts focused on through workforce development
Equity & Community website
underrepresented populations. We foster an inclusive culture and STEM education initiatives by
2 STEM education, that provides fair and equal opportunities for everyone. And 3M Respectful Work Environment the end of 20255
training, and we continue our efforts toward building a diverse global Principle 4.4, 4.5, 4.c
Double the pipeline of diverse
workforce workforce."
3m-global-impact-report-2024.txt,"used on through workforce development
Equity & Community website
underrepresented populations. We foster an inclusive culture and STEM education initiatives by
2 STEM education, that provides fair and equal opportunities for everyone. And 3M Respectful Work Environment the end of 20255
training, and we continue our efforts toward building a diverse global Principle 4.4, 4.5, 4.c
Double the pipeline of diverse
workforce workforce.
3M “Skilled” docuseries talent in management globally
development
3M supports education initiatives that advance equitable to build a diverse workforce by"
3m-global-impact-report-2024.txt,"p solve shared global challenges. We
continually look to our stakeholders to help us increase our
understanding and awareness, seek technical input and
expertise, and evaluate possible collaborations and strategic 17.16
relationships.
1 Ethical and Acting with unwavering integrity and transparency is core 3M’s Code of Conduct Double the pipeline of diverse
transparent business to who we are. Our commitment to transparency is evident talent in management globally
3M Diversity, Equity & Inclusion
practices in many ways, including the publication of this annual Global to build a diverse workforce"
3m-global-impact-report-2024.txt,".
6. Goal was initiated in 2019. Skills-based volunteering is primarily delivered through the 3M Impact program.
7. Expands our previous 2025 goal to stay below 50% of our 2002 baseline, meaning 3M’s 2030 scope 1 and 2 emissions will now be reduced by more than 85% from 2002 levels. 2019 is the baseline measurement year.
8. In 2021, 3M updated the goal maturity date to 2030 from 2025.
9. Established in 2020 to drive trend and trajectory progress over time. 2020 is the baseline measurement year.
10. Underrepresented groups in our 3M U.S. workforce include Black/African American and Hispanic/Latino employees."
3m-global-impact-report-2024.txt,"quitable
with our local communities is fundamental to our outcomes far into the future. We leverage research
sustainability strategy. We’re committed to leveraging on social impact to inform investment decisions and
our people, products, and philanthropy to support collaborate with our community partners to track
communities through science, technology, engineering, outcomes, minimize barriers, and expand future
and mathematics (STEM) education, a robust skilled opportunities for 3M engagement.
trades workforce, and community and environmental"
3m-global-impact-report-2024.txt,"ork and comprises a diverse set of senior-level
contributions in communities
company executives.
where 3M operates
To ensure our support benefits the communities being
served, 3M provides financial support to key partners
and initiatives to help evaluate the outcomes of grants
and employee engagement initiatives.
As a science-based manufacturing company, we’re
motivated to support a more equitable pathway
$50 million commitment over five years
to science, manufacturing, and skilled trades jobs.
In 2023, 3M continued to work toward our goal Education and workforce development are key to"
3m-global-impact-report-2024.txt,"support to key partners
and initiatives to help evaluate the outcomes of grants
and employee engagement initiatives.
As a science-based manufacturing company, we’re
motivated to support a more equitable pathway
$50 million commitment over five years
to science, manufacturing, and skilled trades jobs.
In 2023, 3M continued to work toward our goal Education and workforce development are key to
to invest $50 million to address racial opportunity broadening access to these careers for all students,
gaps in the U.S. through workforce development especially those from underrepresented groups."
3m-global-impact-report-2024.txt,"udents a path to
Community training resources – As manufacturing a well-paying job. • 3M Impact Small Business Hackathon – Using a
evolves and companies like 3M invest in facilities of hackathon approach, employees provide quick-hit
the future, it’s essential to help our local technical National Coalition of Certification Centers (NC3) – solutions for small minority-owned businesses in
and high schools access appropriate technologies 3M and NC3 awarded 50 $1,000 scholarships to the Twin Cities.
and training. To keep the workforce pipeline flowing, students who participated in the NC3 National Career"
3m-global-impact-report-2024.txt,"Lahaina wildfires.Who we are How we work What we create Site spotlights About report Diversity, equity, and inclusion | 3M 2024 Global Impact Report 30
Diversity, equity, and inclusion
Our commitment As a science-based company with a purpose to
reimagine what’s possible, it’s our imperative to
become the most inclusive enterprise we can be.
Inclusion leads to engagement, engagement fosters
Fostering an inclusive environment for our global creativity, creativity sparks innovation, and innovation
workforce is a core part of 3M’s strategy. We recognize produces growth."
3m-global-impact-report-2024.txt,"our employees around the world, against applicants, employees, vendors, contractors,
including training, development, and recruitment or customers on the basis of race, color, creed,
efforts focused on underrepresented populations. religion, sex, national origin, age, disability, veteran
We foster an inclusive culture that provides fair and status, pregnancy, genetic information, sexual
equal opportunities for everyone. And we continue our orientation, marital status, citizenship status, status
efforts toward building a diverse global workforce. with regard to public assistance, gender identity/"
3m-global-impact-report-2024.txt,"f thinking help us better understand the needs to double the representation of underrepresented transparency, we share an internal quarterly scorecard
of 3M customers, suppliers, and community partners employees in the U.S. Since 2020, we’ve improved of our progress on the global Diversity Index and
around the world. our U.S. representation of underrepresented groups hiring metrics, as well as data on supplier diversity and
from entry-level through management, moving from community investments.
Our diverse workforce 8.13% to 8.98%. At the same time, we’ve improved our"
3m-global-impact-report-2024.txt,"of underrepresented transparency, we share an internal quarterly scorecard
of 3M customers, suppliers, and community partners employees in the U.S. Since 2020, we’ve improved of our progress on the global Diversity Index and
around the world. our U.S. representation of underrepresented groups hiring metrics, as well as data on supplier diversity and
from entry-level through management, moving from community investments.
Our diverse workforce 8.13% to 8.98%. At the same time, we’ve improved our
U.S. representation of underrepresented groups in Learn more about 3M’s diverse workforce at our"
3m-global-impact-report-2024.txt,"iverse workforce 8.13% to 8.98%. At the same time, we’ve improved our
U.S. representation of underrepresented groups in Learn more about 3M’s diverse workforce at our
We’re building on our foundation by taking steps to
management positions, moving from 5.55% to 6.33%. Diversity, Equity & Inclusion (DEI) Report.
advance the representation of underrepresented
groups at 3M. We continue to work toward bringing
We continue to advance our efforts in hiring, retaining, Equity and inclusion initiatives
the demographics of 3M’s workforce in line with"
3m-global-impact-report-2024.txt,"represented groups in Learn more about 3M’s diverse workforce at our
We’re building on our foundation by taking steps to
management positions, moving from 5.55% to 6.33%. Diversity, Equity & Inclusion (DEI) Report.
advance the representation of underrepresented
groups at 3M. We continue to work toward bringing
We continue to advance our efforts in hiring, retaining, Equity and inclusion initiatives
the demographics of 3M’s workforce in line with
and developing talent. Indeed, nurturing a talent
broader workforce availability. At 3M, we believe in fair treatment, access, and"
3m-global-impact-report-2024.txt,"We empower our employees to
bring innovation into their work and focus on making
Through 3M Learn, our integrated learning and
an impact in the world.
development platform, employees can access and
explore personalized learning content and curated
resources. 3M Learn contains tens of thousands
of learning resources in more than 30 languages.
Content is organized and aligned to directly support
our organizational priorities, and employees receive
recommended content based on their role. 3M Learn
reaches our entire global workforce.WWhhoo wwee aarree HHooww wwee wwoorrkk WWhhaatt wwee ccrreeaattee Site spotlights About report Employee programs | 3M 2024 Global Impact Report 53"
3m-global-impact-report-2024.txt,"ill completed nearly 775,000 online learning
We build inclusive behaviors and create cultural
experiences for an average of over 4,500 unique
agility through inclusion events and activities as well
courses each month. As the pace of business continues
as training and leadership development programs.
to accelerate, 3M Learn provides flexible learning
3M Learn offers modules on inclusive behaviors
opportunities with curated content to develop our
skills-building, including REAL Allyship training.
entire workforce with culture-related skills, core or"
3m-global-impact-report-2024.txt,"pport eligible 3M employees in the U.S.
using one global system to track HR information. A global point-based recognition tool, Everyday Wins National Guard or Reserve units. Eligible employees
At every 3M site around the globe, we have instant makes it easy and convenient to recognize fellow 3M on leave for annual encampment or training may be
access to this information through our global employees when they embody our culture or go above entitled to differential pay for the difference between
reporting tool. and beyond. Our entire workforce, both production their 3M pay and their military pay."
3m-global-impact-report-2024.txt,"pride in how our employees have been able
to adapt, innovate, and produce results while working
• Built on virtual first – Virtual collaboration through
their way. We continue to support flexible work
the use of technology is the standard
arrangements, even as other companies try to apply
• Meet with purpose – Employees are encouraged to one-size-fits-all approaches to where and when people
come together for moments that matter — virtually work. It’s just another way we innovate and experiment
or in person to attract and retain a high-quality workforce."
3m-global-impact-report-2024.txt,"general auditor, Corporate Audit, is responsible for leading the formal risk assessment and management
monitoring process within the company and annually reports the results to the full Board.
3M will assess climate-related risks as a part of our analysis of physical risk to our manufacturing as climate modeling advances and as acquisitions or
divestitures require. 3M’s business continuity and crisis management planning help manage risks facing the company’s physical operations, supply chains,
and workforce. Programs are reviewed at least annually."
3m-global-impact-report-2024.txt,"a collaboration of different
backgrounds, experiences, and perspectives only
3M’s Circle of Technical Excellence & Innovation –
made possible through diverse teams. When we reflect
This prestigious internal recognition program honors
the diversity of our customers, suppliers, and channel
individuals and teams whose achievements set the
partners, we can better innovate to serve their needs.
standard for 3M technical excellence and innovation.
This is one of many important reasons we continue to
set goals and work toward diversifying our workforce"
3m-global-impact-report-2024.txt,"Process to determine remuneration Compensation 50
Compensation and Talent Committee Charter
Proxy Statement, Director compensation and Executive compensation
2-21 Annual total compensation ratio Proxy Statement, Executive compensation – Pay ratio
Not applicable. Disclosure does not cover the specific impacts that make the topic
material. 3M has an established process to assure our commitment to fair and equitable
pay. The breakdown to calculate the median percentage increase does not accurately
reflect our workforce levels and process at 3M to assure equitable remuneration."
3m-global-impact-report-2024.txt,"teria
Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 79
actions taken
Supplier Responsibility Code
GRI 401 Employment 2016 - -
3-3 Management of material topics Employee programs 52Who we are How we work What we create Site spotlights About report GRI index | 3M 2024 Global Impact Report 116
Disclosure
Description Cross-reference or direct answer Page
number
401-1 New employee hires and employee turnover ESG metrics, Employee demographics tab
3M does not classify divestiture turnover differently from other types of workforce"
3m-global-impact-report-2024.txt,"he
▪ Community outreach and support is aligned with the 3M sustainability pillars to demonstrate
overall commitment and direction to social and sustainability goals. Corporately, 3M
Docuseries on Green Jobs, STEM programs and Skilled Trades. It provides strong support of
provides funding to targeted non-profit organizations in the U.S. footprint. 3M engagement
STEM programs and programs supporting underrepresented groups.
extends to the facility level and local communities globally.
Materiality
▪ 3M has committed to diversity and inclusion within its workforce and in community support."
3m-global-impact-report-2024.txt,"abilities, U.S. military veterans,
and people who identify as lesbian, gay, bisexual,
transgender, questioning, and intersex (LGBTQI+).
Baseline year is 2015 (32.6%) and goal is 65.2%.Who we are How we work What we create Site spotlights About report Metric tables | 3M 2024 Global Impact Report 129
Metric Metric units RY-2023 RY-2022 RY-2021 2022-2023 Boundary & scope
annual
change, %
Underrepresented groups in our % 8.98 9.02 8.58 -0.0400 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino"
3m-global-impact-report-2024.txt,"2015 (32.6%) and goal is 65.2%.Who we are How we work What we create Site spotlights About report Metric tables | 3M 2024 Global Impact Report 129
Metric Metric units RY-2023 RY-2022 RY-2021 2022-2023 Boundary & scope
annual
change, %
Underrepresented groups in our % 8.98 9.02 8.58 -0.0400 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce."
3m-global-impact-report-2024.txt,"2022-2023 Boundary & scope
annual
change, %
Underrepresented groups in our % 8.98 9.02 8.58 -0.0400 3M job grades 7 to 17. Underrepresented groups (URG) is
U.S. workforce (entry-level through defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce.
Baseline year is 2020 and goal is 16.2%.
Underrepresented groups in our % 6.33 6.39 6.19 -0.0600 Subset of above. 3M job grades 13 to 17.
U.S. workforce (management) Underrepresented groups is defined as Black/African"
3m-global-impact-report-2024.txt,"hrough defined as Black/African American and Hispanic/Latino
management) employees. Double the representation of URGs from
entry level through management in our U.S. workforce.
Baseline year is 2020 and goal is 16.2%.
Underrepresented groups in our % 6.33 6.39 6.19 -0.0600 Subset of above. 3M job grades 13 to 17.
U.S. workforce (management) Underrepresented groups is defined as Black/African
American and Hispanic/Latino employees. Double the
representation of URGs in management positions in our
U.S. workforce. Baseline year is 2020 and goal is 11.2%."
abbvie-esg-action-report.txt,"countries in 2023.
Lake County, ILOur Approach to ESG Environmental Social Governance 86
2023 ESG Action Report
Supplier Sustainability Supplier Code of Conduct or services that are patient-facing or are applicable across
multiple AbbVie brands. We also consider suppliers that
Our Supplier Code of Conduct defines our expectations
Our Supplier Sustainability program requires our
provide materials or services that are technically complex
for all suppliers doing business with AbbVie. We expect all
suppliers to maintain fair labor practices, foster worker"
abbvie-esg-action-report.txt,"iers
In 2023, we refined our global Environmental and Supplier
our operations, which ultimately benefits our patients and
maintain a quality management system that assures
Sustainability Survey to further align with our sustainability
customers.
consistent conformance of their products and services to
goals, targets and initiatives, and the response rate from
our specified requirements. This encompasses product
Human Rights in Our Supply Chain
our suppliers and partners to this more streamlined
quality, labor practices, worker health and safety, availability"
abbvie-esg-action-report.txt,"anding execution. We are a company that values
medicines at no cost.
I’m pleased to share our 2023 Environmental, Social & innovation, new ideas, diverse perspectives and treats
Governance (ESG) Action Report. This report highlights our Serving our communities has and will continue to be a everyone with dignity and respect.
efforts across our three foundational ESG pillars: delivering major part of our legacy. In 2023 alone, we raised $24.7
I am incredibly proud of our company’s journey and the
innovative medicines, unlocking the potential of our diverse million for nonprofits around the world through employee"
abbvie-esg-action-report.txt,"hieve through our ESG framework.
Looking ahead, we are in the process of conducting a double
materiality assessment and will update our ESG framework and
Our ESG Pillars
material drivers in due course.
Our ESG framework is built around three foundational pillars that align with our enterprise goals and principles.
These were developed from an analysis of our material issues, considering the topics of most relevance to our
company and our stakeholders.
Product Innovation
Human Capital Management
• Employee Recruiting,"
abbvie-esg-action-report.txt,"improve the health of our
business and society, in alignment with our ESG framework.
Nearly
26.4% 218,000+ $1.03 14,000
reduction U.S. patients billion employees
in absolute Scope 1 and 2 greenhouse gas gained access to medicine at no cost through spent working with approximately 2,500 small participated during AbbVie’s global week
(GHG) emissions compared to 2021 baseline our patient assistance programs and diverse businesses in the United States of volunteering
and Puerto Rico
29% $24.7 7 81%
reduction million major product employee engagement"
abbvie-esg-action-report.txt,"gas gained access to medicine at no cost through spent working with approximately 2,500 small participated during AbbVie’s global week
(GHG) emissions compared to 2021 baseline our patient assistance programs and diverse businesses in the United States of volunteering
and Puerto Rico
29% $24.7 7 81%
reduction million major product employee engagement
in total hazardous and non-hazardous waste raised for 13,720 nonprofit organizations and/or indication approvals rate according to the 2023 AbbVie
generation compared to 2015 baseline, through our Employee Giving Campaign Employee Survey"
abbvie-esg-action-report.txt,"t
in total hazardous and non-hazardous waste raised for 13,720 nonprofit organizations and/or indication approvals rate according to the 2023 AbbVie
generation compared to 2015 baseline, through our Employee Giving Campaign Employee Survey
surpassing our target of 20%
AbbVie further improved the
55.5% $7.8 Diversity of its 82%
board of directors
active sourcing billion of employees
of renewable electricity in adjusted R&D investment in 20231 in 2023 feel included at AbbVie according to the 2023
AbbVie Employee Survey"
abbvie-esg-action-report.txt,"iative (SBTi) in March 2023.
² In 2021, we performed a recalculation exercise of the metrics for our environmental sustainability targets and our 2015 baseline to include both Allergan and AbbVie data.
³ Includes waste disposed of in the following manner: beneficial use, recycled, composted, treated, incinerated with energy recovery and incinerated without energy recovery. Sligo, IrelandOur Approach to ESG Environmental Social Governance 16
2023 ESG Action Report
Environmental Management System
Employee Engagement and Our Environmental Management System (EMS) is Team Evergreen"
abbvie-esg-action-report.txt,"pollution, while ISO 50001 aims to help
Sustainable Business Awards. This team is dedicated to
companies use energy more efficiently. Our approach
With about 1,000 attendees, the Environmental
delivering innovative energy management and environmental
ensures environmental risks are thoroughly assessed,
Sustainability Speaker Series saw experts
sustainability programs with a focus on decarbonization, waste
operational controls are in place and systematic
from across the company host discussions
reduction, employee engagement with a focus replicability"
abbvie-esg-action-report.txt,"plan and a green area with
drought-resistant plants.Our Approach to ESG Environmental Social Governance 28
2023 ESG Action Report
Social
2023 Highlights
As a global health care company, we put patients at the
center of our work and support patient communities
through research, engagement, assistance and access
218,000+ $24.7
to our products.
U.S. patients million
We create innovative medicines and solutions with the
provided medicine at no cost through raised for 13,720 nonprofit organizations
highest standard of quality and safety to positively our patient assistance programs through our Employee Giving Campaign"
abbvie-esg-action-report.txt,"ts.
U.S. patients million
We create innovative medicines and solutions with the
provided medicine at no cost through raised for 13,720 nonprofit organizations
highest standard of quality and safety to positively our patient assistance programs through our Employee Giving Campaign
impact the lives of our patients. We achieve this by
having a strong, caring organizational culture, constantly
working to attract the best talent and providing them
81% 7
with opportunities for growth and development.
employee engagement major product"
abbvie-esg-action-report.txt,"izations
highest standard of quality and safety to positively our patient assistance programs through our Employee Giving Campaign
impact the lives of our patients. We achieve this by
having a strong, caring organizational culture, constantly
working to attract the best talent and providing them
81% 7
with opportunities for growth and development.
employee engagement major product
We have implemented strategies to create an inclusive
rate according to the 2023 AbbVie and/or indication approvals
workplace, improve employee well-being and prioritize"
abbvie-esg-action-report.txt,"itively our patient assistance programs through our Employee Giving Campaign
impact the lives of our patients. We achieve this by
having a strong, caring organizational culture, constantly
working to attract the best talent and providing them
81% 7
with opportunities for growth and development.
employee engagement major product
We have implemented strategies to create an inclusive
rate according to the 2023 AbbVie and/or indication approvals
workplace, improve employee well-being and prioritize
Employee Survey"
abbvie-esg-action-report.txt,"roviding them
81% 7
with opportunities for growth and development.
employee engagement major product
We have implemented strategies to create an inclusive
rate according to the 2023 AbbVie and/or indication approvals
workplace, improve employee well-being and prioritize
Employee Survey
health and safety. We also support our communities
through volunteering and philanthropy.
Nearly
82% 14,000
of employees employees
feel included at AbbVie according to the participated during AbbVie’s global week
2023 AbbVie Employee Survey of volunteeringOur Approach to ESG Environmental Social Governance 29"
abbvie-esg-action-report.txt,"QS is key to providing confidence that we are producing falsified medicines to the relevant authorities.
Through executive management reviews, details of our high-quality products and minimizing the risk of recalls
quality performance and compliance are presented to or drug shortages. Our Quality Council—made up of
AbbVie’s CEO, and the Public Policy & Sustainability Senior Quality Leadership from Operations and R&D—isOur Approach to ESG Environmental Social Governance 42
2023 ESG Action Report
Employee Training"
abbvie-esg-action-report.txt,"idated Learning
focus – to protect the patient – is achieved by analyzing
Management System (LMS) to manage all applicable
potential hazards and applying appropriate mitigation.
global standards and regulations for Good Manufacturing
AbbVie takes an integrated approach to QRM, with
Practices (GxP) and product safety training for around
interdisciplinary teams incorporating risk management
18,400 employees and contractors. The LMS allows us
principles into processes and procedures as applicable.
to assign training in line with each employee’s HR profile,"
abbvie-esg-action-report.txt,"7
Programs
Low- and Middle-Income Countries that have Received Product Donations1,2 - 63 76
¹ KPI first introduced for the 2022 ESG Action Report. AbbVie is only reporting data from 2022 onward for this KPI.
² As defined by the World Bank, including low income, lower middle income and upper middle income countries.Our Approach to ESG Environmental Social Governance 55
2023 ESG Action Report
Human Capital Management
We take a holistic approach to managing our people, emphasizing professional and
leadership development, employee well-being and a culture that unleashes the full potential"
abbvie-esg-action-report.txt,"50,000 employees helps shape and
define our path forward, to make a real difference in people’s lives.
Our Approach
Decisions related to human capital management are made
Attracting, recruiting and retaining the best talent and by our executive leadership and amplified at functional
enhancing strategic and leadership capabilities through levels. Additional councils and committees also govern
meaningful learning and development opportunities key functions, such as the retirement plan investment
are critical to a sustainable talent pipeline, and effective committees that regularly advise on budget, and employee"
abbvie-esg-action-report.txt,"nth
role or location, is evaluated at year end against their goal
annual LDP Week. Throughout the year, more than 30,000
achievement and their demonstration of our Ways We Work.
employees visited our LDP site.
The resulting performance ratings guide merit-based pay
increases, and for those eligible, annual bonus payouts and
long-term incentive stock grants.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 58
2023 ESG Action Report
Advancing Our Culture:
Washington, D.C.
Employee Engagement"
abbvie-esg-action-report.txt,". Throughout the year, more than 30,000
achievement and their demonstration of our Ways We Work.
employees visited our LDP site.
The resulting performance ratings guide merit-based pay
increases, and for those eligible, annual bonus payouts and
long-term incentive stock grants.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 58
2023 ESG Action Report
Advancing Our Culture:
Washington, D.C.
Employee Engagement
AbbVie is recognized as a top employer based on positive
92%
employee feedback, competitive benefits and development"
abbvie-esg-action-report.txt,"ted our LDP site.
The resulting performance ratings guide merit-based pay
increases, and for those eligible, annual bonus payouts and
long-term incentive stock grants.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 58
2023 ESG Action Report
Advancing Our Culture:
Washington, D.C.
Employee Engagement
AbbVie is recognized as a top employer based on positive
92%
employee feedback, competitive benefits and development
opportunities, among other robust offerings. Measuring
Overall employee survey response rate"
abbvie-esg-action-report.txt,"hose eligible, annual bonus payouts and
long-term incentive stock grants.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 58
2023 ESG Action Report
Advancing Our Culture:
Washington, D.C.
Employee Engagement
AbbVie is recognized as a top employer based on positive
92%
employee feedback, competitive benefits and development
opportunities, among other robust offerings. Measuring
Overall employee survey response rate
our impact is the first step in continuous improvement.
Our global Employee Survey, conducted every two years,"
abbvie-esg-action-report.txt,"58
2023 ESG Action Report
Advancing Our Culture:
Washington, D.C.
Employee Engagement
AbbVie is recognized as a top employer based on positive
92%
employee feedback, competitive benefits and development
opportunities, among other robust offerings. Measuring
Overall employee survey response rate
our impact is the first step in continuous improvement.
Our global Employee Survey, conducted every two years,
is designed specifically to gather feedback from across
Percentage of AbbVie employees who:
multiple dimensions of the employee experience, such as"
abbvie-esg-action-report.txt,"rvey response rate
our impact is the first step in continuous improvement.
Our global Employee Survey, conducted every two years,
is designed specifically to gather feedback from across
Percentage of AbbVie employees who:
multiple dimensions of the employee experience, such as
culture, trust, work-life integration, well-being, development are engaged – believe that feel good about
and innovation. having energy AbbVie is building the ways AbbVie
and commitment the culture that contributes to the
2023 Employee Survey to AbbVie: we want to create: community:"
abbvie-esg-action-report.txt,"improvement.
Our global Employee Survey, conducted every two years,
is designed specifically to gather feedback from across
Percentage of AbbVie employees who:
multiple dimensions of the employee experience, such as
culture, trust, work-life integration, well-being, development are engaged – believe that feel good about
and innovation. having energy AbbVie is building the ways AbbVie
and commitment the culture that contributes to the
2023 Employee Survey to AbbVie: we want to create: community:
Our latest Employee Survey confirmed that 81% of 81% 79% 91%"
abbvie-esg-action-report.txt,"nt are engaged – believe that feel good about
and innovation. having energy AbbVie is building the ways AbbVie
and commitment the culture that contributes to the
2023 Employee Survey to AbbVie: we want to create: community:
Our latest Employee Survey confirmed that 81% of 81% 79% 91%
employees feel engaged in their work, with high levels
of energy and commitment to AbbVie. Additionally, 79%
of our employees view our culture favorably, showing an
Increased scores across the following dimensions:
increase of 19 percentage points since our first Employee"
abbvie-esg-action-report.txt,"mployee Survey to AbbVie: we want to create: community:
Our latest Employee Survey confirmed that 81% of 81% 79% 91%
employees feel engaged in their work, with high levels
of energy and commitment to AbbVie. Additionally, 79%
of our employees view our culture favorably, showing an
Increased scores across the following dimensions:
increase of 19 percentage points since our first Employee
Accountability, development, inclusion, innovation, people
Survey in 2013. leadership, transparency and trust
In addition to the global Employee Survey, at least annually, Other strong results:"
abbvie-esg-action-report.txt,". Additionally, 79%
of our employees view our culture favorably, showing an
Increased scores across the following dimensions:
increase of 19 percentage points since our first Employee
Accountability, development, inclusion, innovation, people
Survey in 2013. leadership, transparency and trust
In addition to the global Employee Survey, at least annually, Other strong results:
we gather feedback through a variety of listening methods, Alignment, ethics, patient centricity and work-life well-being
to ensure that employee experience remains a priority."
abbvie-esg-action-report.txt,"ransparency and trust
In addition to the global Employee Survey, at least annually, Other strong results:
we gather feedback through a variety of listening methods, Alignment, ethics, patient centricity and work-life well-being
to ensure that employee experience remains a priority.
We use voice sessions, pulse surveys and external vendor
partners to check that our culture remains strong, as
reported by those who know it best: our people.
To validate our results, we rely on industry-leading best
practices and benchmarks from our Employee Survey"
abbvie-esg-action-report.txt,"life-changing medicines
to patients requires diversity of thought, which comes from
Voluntary Turnover Rate 8% 8% 6%
a diverse workplace. We serve a wide variety of patient
populations worldwide and it is essential that we strive to
New Hires 8,000 7,500 6,100
reflect their diversity and represent their voices. Our EEDI
strategy includes specific priority areas to ensure we foster
Open Positions Filled by Internal Candidates 30% 29% 31%
an inclusive community that works for our people, patients
and business. Employee Engagement Rate¹ 82% - 81%"
abbvie-esg-action-report.txt,"diversity and represent their voices. Our EEDI
strategy includes specific priority areas to ensure we foster
Open Positions Filled by Internal Candidates 30% 29% 31%
an inclusive community that works for our people, patients
and business. Employee Engagement Rate¹ 82% - 81%
Our Principles in Action
Employees Who Indicate That AbbVie Equips Them Well to Perform in
76% - 77%
Their Role¹
Our EEDI commitment is grounded in Our Principles –
specifically embracing diversity and inclusion. Our global
¹ AbbVie Employee Survey, 2021 and 2023. The AbbVie Employee Survey is conducted every two years. The survey was not conducted in 2022."
abbvie-esg-action-report.txt,"necessity – our commitment to equity, equality, diversity and inclusion is
any kind. We promote, ensure, support and require equal
fundamental to who we are, how we operate and how we treat each other. This focus
opportunity for all persons, without regard to race, color,
strengthens our ability to innovate and is critical to our ability to deliver now and into
religion, sex, sexual orientation, gender identity, national
origin and all other traits protected by law. Our vision for the future.”
“One AbbVie – Inclusively” is that every employee can"
abbvie-esg-action-report.txt,"s and accountability.
meaningful observances around the world. The calendar
self-branding, career management and equity, and
includes a brief summary of each event’s history and
empowers women to pursue their professional We continued to build more equitable and inclusive
cultural traditions.
ambitions. The objective is to create a network leadership behaviors related to how leaders operate
that will assist women with developing skills for themselves and how they assess and develop their teams.
• EEDI Employee Voice Sessions"
abbvie-esg-action-report.txt,"brief summary of each event’s history and
empowers women to pursue their professional We continued to build more equitable and inclusive
cultural traditions.
ambitions. The objective is to create a network leadership behaviors related to how leaders operate
that will assist women with developing skills for themselves and how they assess and develop their teams.
• EEDI Employee Voice Sessions
advancement within AbbVie, by fostering career In support of this aim, we launched and piloted a formal
We continued to build on our series of employee voice"
abbvie-esg-action-report.txt,"e-leader competency among our people leaders,
assumptions, mindset and practices; reflect upon
with an emphasis on understanding, skill building,
and reinforce concepts, learnings and commitments;
ownership and accountability.
continue critical skill-building to ensure a culture of full
inclusion at AbbVie; and take action to lead AbbVie’s
inclusion evolution.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 61
2023 ESG Action Report
Cultivating Diversity and Inclusion:
Employee Resource Groups"
abbvie-esg-action-report.txt,"mptions, mindset and practices; reflect upon
with an emphasis on understanding, skill building,
and reinforce concepts, learnings and commitments;
ownership and accountability.
continue critical skill-building to ensure a culture of full
inclusion at AbbVie; and take action to lead AbbVie’s
inclusion evolution.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 61
2023 ESG Action Report
Cultivating Diversity and Inclusion:
Employee Resource Groups
Our ERGs’ Impact in 2023
Our Employee Resource Groups (ERGs) and Communities"
abbvie-esg-action-report.txt,"reness and fostering a diverse and inclusive
professional workforce of interns, employees and
environment. Open to all employees, they activate inclusion and
resilient leaders.
accelerate belonging to create an important sense of community
Increased chapter engagement and membership
and support for one another. AbbVie’s seven ERGs are company
at a local and global level. This was exemplified by
sponsored with executive leadership team support.
the celebration of PRIDE events in Austin, Chicago,
In addition, AbbVie Communities are employee-created groups"
abbvie-esg-action-report.txt,"and International Women’s Day
campaign to reduce the stigma associated with
300+
celebrations, a health equity education series and
mental illness and support mental well-being.
collaborations with other ERGs and women’s groups.
AbbVie
CommunitiesOur Approach to ESG Environmental Social Governance 62
2023 ESG Action Report
AbbVie Way Ambassadors of Culture
Key Performance Indicators: 2021 2022 2023
The AbbVie Way Ambassadors of Culture is a cross-
Equity, Equality, Diversity & Inclusion (EEDI)
functional team of 284 employee volunteers in 50 countries"
abbvie-esg-action-report.txt,"P-level women and above, including AbbVie’s Board of Directors.
³ KPI adjusted from 2022 ESG Action Report to align with internal categorizations.
4 Represents a new KPI in the 2023 ESG Action Report
5 “Revenue-generating functions” means a position with AbbVie’s commercial organization.Our Approach to ESG Environmental Social Governance 63
2023 ESG Action Report
• Total Body Blueprint is our month-long, self-paced Workplace flexibility in where and when we work has always
Health and Well-Being
program that provides education and resources to reduce been at the core of AbbVie’s commitment to employee work-"
abbvie-esg-action-report.txt,"and programs vary across customers. Our hybrid work model, Where We Work, enables
for all global well-being programs. It includes on-demand
the globe. AbbVie Vitality, our global well-being initiative, eligible employees to work remotely on average two days
fitness classes, cooking demonstrations, meditations,
offers numerous resources and programs to support all per week, helping sustain high performance, productivity
videos, articles and other resources.
employees year-round. and engagement.
• AbbVie Vitality’s Employee Assistance Program (EAP) is"
abbvie-esg-action-report.txt,"kplace Safety 2021 2022 2023
areas that are core to AbbVie. For example, in 2023, we
introduced eye exams during our biometric screenings
Recordable Incident Rate (Per 200,000 Hours Worked) 0.16 0.18 0.18¹
and flu shot event. In addition, we developed a migraine
management checklist that helps employees talk to their
Lost Time Injury Frequency Rate (Per 200,000 Hours Worked) 0.04 0.05 0.07¹
doctor, understand what a treatment plan might look like
and find ways to combat stress, a common trigger
Work-Related Employee and Contractor Fatalities 0 0 0"
abbvie-esg-action-report.txt,"s employees talk to their
Lost Time Injury Frequency Rate (Per 200,000 Hours Worked) 0.04 0.05 0.07¹
doctor, understand what a treatment plan might look like
and find ways to combat stress, a common trigger
Work-Related Employee and Contractor Fatalities 0 0 0
for migraines.
¹ The hours worked methodology was updated in 2023 to increase the accuracy of reporting.
Protecting Our Workforce
The safety of our employees across our workplace is a We are committed to improving our best-in-class safety
cornerstone commitment to our employee community and programs and since we became an independent company With 50% of people with cancer afraid to"
abbvie-esg-action-report.txt,"ur manufacturing sites (four of which are shared R&D
facilities) and one commercial affiliate office outside of the
United States are certified to the international standards for
safety associated with ISO 45001.Our Approach to ESG Environmental Social Governance 65
2023 ESG Action Report
Total Rewards
AbbVie is committed to providing a comprehensive and competitive total rewards package, covering In 2023, we extended our U.S. fertility benefits
to no longer require an infertility diagnosis and
every phase of an employee’s life and career with us. This helps attract, retain and engage the talent"
abbvie-esg-action-report.txt,"ct, retain and engage the talent
introduced the AbbVie Inclusive Benefits Guide,
we need to drive our business growth. We offer our modern workforce a combination of robust and
which communicates what is available for our
meaningful benefits, compensation and well-being programs including, but not limited to:¹
LGBTQIA+² population, persons with disabilities,
military and veterans, and caregivers. We also
make professional help and guidance available
to employees seeking gender-affirmative care.
A gender-neutral parental Family caregiver leave Expanded access to Employee"
abbvie-esg-action-report.txt,"ourses at personal days
their responsibilities and accredited institutions, for
workloads, and pass on their regular employees with at least
knowledge to colleagues one year’s experience working at
least 20 hours a week
Our Total Rewards Package
¹ This list summarizes primarily U.S.-centric benefits.
² Lesbian, gay, bisexual, transgender, queer/questioning, intersex, asexual and other (such as non-binary and pansexual)Our Approach to ESG Environmental Social Governance 66
2023 ESG Action Report
Employee Support"
abbvie-esg-action-report.txt,"es with at least
knowledge to colleagues one year’s experience working at
least 20 hours a week
Our Total Rewards Package
¹ This list summarizes primarily U.S.-centric benefits.
² Lesbian, gay, bisexual, transgender, queer/questioning, intersex, asexual and other (such as non-binary and pansexual)Our Approach to ESG Environmental Social Governance 66
2023 ESG Action Report
Employee Support
The AbbVie Foundation is committed to assisting our
people and their families in times of need. The AbbVie
Employee Relief Program, which is funded and managed"
abbvie-esg-action-report.txt,"ommitted to assisting our
people and their families in times of need. The AbbVie
Employee Relief Program, which is funded and managed
by the Foundation, provides critical financial relief to
employees in the wake of disasters and personal hardship.
Additionally, the AbbVie Possibilities Scholarship Program,
funded by the AbbVie Foundation, alleviates the financial
strain of tuition costs so that the children of AbbVie
employees can achieve their full potential through post-
secondary education.
Possibilities Scholarship Employee Relief"
abbvie-esg-action-report.txt,"proach to ESG Environmental Social Governance 67
2023 ESG Action Report
Community Engagement
Since our founding, we have led with purpose to make a lasting impact for patients, communities and society. We engage closely with
communities because we believe that is where meaningful change begins. We listen and learn from communities and our partners,
empowering them to determine the best solutions for their most pressing needs.
Our Approach Our philanthropic work is also supported through a range
of community grants, partnerships and employee giving"
abbvie-esg-action-report.txt,"We listen and learn from communities and our partners,
empowering them to determine the best solutions for their most pressing needs.
Our Approach Our philanthropic work is also supported through a range
of community grants, partnerships and employee giving
Our culture of giving is reflected in our philanthropic efforts,
and volunteering programs via the AbbVie Foundation. This
as well as the ways our employees around the world support
501(c)(3) nonprofit, which celebrated its 10th anniversary
communities through employee giving and volunteering."
abbvie-esg-action-report.txt,"ng and volunteering.
in January 2023, is working to drive meaningful change
Over the past decade, we have focused our philanthropic
in communities worldwide so that everyone can live their
giving on three priority areas that are grounded in advancing
healthiest life.
health equity:
AbbVie employees are passionate about making a
Strengthening Health Care Systems by collaborating with
difference in their communities and strengthen our impact
nonprofits that are advancing health equity and driving
through their participation in the Foundation’s employee"
abbvie-esg-action-report.txt,"w Jersey with technical and
professional skills and real-world work experience
• National Urban League:
Expanded its signature Project Ready Mentor program to We are now three years into these five-year partnerships
keep 3,000 young people in 17 U.S. cities engaged with and our partners continue to scale their racial equity work,
school and employment expanding the reach of their programs and sharing key
learnings with other nonprofits. In addition to the above, the
• Providence St. Mel School:
AbbVie Foundation matches employee donations 3:1 for"
abbvie-esg-action-report.txt,"eep 3,000 young people in 17 U.S. cities engaged with and our partners continue to scale their racial equity work,
school and employment expanding the reach of their programs and sharing key
learnings with other nonprofits. In addition to the above, the
• Providence St. Mel School:
AbbVie Foundation matches employee donations 3:1 for
Funded 47 scholarships to high school students and
select civil rights nonprofits whose primary mission is to
expanded its Academic Intervention Model, which seeks
advance racial equity. Learn more in our Employee Giving"
abbvie-esg-action-report.txt,"and Gaza • Academic Model Providing Access to Healthcare
In October 2023, AbbVie Foundation donated $1 million Supported community-centered programs from
to help those directly affected by the conflict in Israel health education groups for mothers and children, to
and Gaza, supporting the humanitarian relief work of four expanding the capabilities and reach of community-
trusted nonprofit partners health workers- to reduce mortality and improve the
health of an estimated 70,000 people in Kenya
In 2023, the AbbVie Foundation matched employee"
abbvie-esg-action-report.txt,"Ireland, and relief efforts in Turkey, access and outcomes for approximately 1,100 patients
Syria, Israel and Gaza.
• Direct Relief
In response to these tragic events and others around Provided financial assistance to around 600
the world and, as part of our commitment, we provided underserved families with children with cancer
critical relief and financial support to colleagues and in Chiapas, Mexico, to assist with their
their immediate families as needed through the AbbVie non-medical needs
Foundation Employee Relief Program.Our Approach to ESG Environmental Social Governance 72"
abbvie-esg-action-report.txt,"za.
• Direct Relief
In response to these tragic events and others around Provided financial assistance to around 600
the world and, as part of our commitment, we provided underserved families with children with cancer
critical relief and financial support to colleagues and in Chiapas, Mexico, to assist with their
their immediate families as needed through the AbbVie non-medical needs
Foundation Employee Relief Program.Our Approach to ESG Environmental Social Governance 72
2023 ESG Action Report
Employee Giving and Employee Volunteering employees in 56 countries and territories volunteered"
abbvie-esg-action-report.txt,"ion’s collective impact, giving generously of their
volunteered nearly 300,000 hours in their local communities.
nonprofit partners to refurbish schools and donate books
time, expertise and resources to make a difference in their
and equipment; revitalize community spaces through waste
communities. Through our industry-leading programs,
The AbbVie Foundation leads and coordinates AbbVie’s
collections, river and beach cleanups, and tree planting;
employees directly support our mission to advance
signature employee volunteering programs, including our"
abbvie-esg-action-report.txt,"ups, and tree planting;
employees directly support our mission to advance
signature employee volunteering programs, including our
renovate and build housing; and provide food and basic
health equity.
annual Week of Possibilities, uniting our teams around the
needs kits for those in need.
world in community service. In June 2023, we held our
eighth annual Week of Possibilities. Nearly 14,000 AbbVie
Ludwigshafen, GermanyOur Approach to ESG Environmental Social Governance 73
2023 ESG Action Report
Employee Giving"
abbvie-esg-action-report.txt,"anting;
employees directly support our mission to advance
signature employee volunteering programs, including our
renovate and build housing; and provide food and basic
health equity.
annual Week of Possibilities, uniting our teams around the
needs kits for those in need.
world in community service. In June 2023, we held our
eighth annual Week of Possibilities. Nearly 14,000 AbbVie
Ludwigshafen, GermanyOur Approach to ESG Environmental Social Governance 73
2023 ESG Action Report
Employee Giving
Through the AbbVie Foundation’s Employee"
abbvie-esg-action-report.txt,"ssion to advance
signature employee volunteering programs, including our
renovate and build housing; and provide food and basic
health equity.
annual Week of Possibilities, uniting our teams around the
needs kits for those in need.
world in community service. In June 2023, we held our
eighth annual Week of Possibilities. Nearly 14,000 AbbVie
Ludwigshafen, GermanyOur Approach to ESG Environmental Social Governance 73
2023 ESG Action Report
Employee Giving
Through the AbbVie Foundation’s Employee
We support thousands of nonprofits through our Employee Giving and Matching program:"
abbvie-esg-action-report.txt,"annual Week of Possibilities, uniting our teams around the
needs kits for those in need.
world in community service. In June 2023, we held our
eighth annual Week of Possibilities. Nearly 14,000 AbbVie
Ludwigshafen, GermanyOur Approach to ESG Environmental Social Governance 73
2023 ESG Action Report
Employee Giving
Through the AbbVie Foundation’s Employee
We support thousands of nonprofits through our Employee Giving and Matching program:
Giving Campaign, raising tens of millions of dollars each
year through employee donations matched by the AbbVie"
abbvie-esg-action-report.txt,"was a record-breaking year, with more
than 22,000 employees in 55 countries and territories
raising more than $24.7 million (including the AbbVie’s million
Foundation’s match) for 13,720 charities and nonprofit raised for
organizations around the world. Through donations
13,720 $138
matched by the AbbVie Foundation, employees have raised
more than $138 million since the program’s inception.
charities million+
In addition, as part of our racial equity philanthropic
in 2023 raised through matched
commitment, the AbbVie Foundation matches employee"
abbvie-esg-action-report.txt,"3:1 for select civil rights nonprofits whose
primary mission is to advance racial equity. Since 2020,
more than $3.2 million (including the AbbVie Foundation’s
Bangalore, India
match) has been raised for nonprofits committed to racial
equity and justice.
Key Performance Indicators: Volunteerism & Philanthropy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding Product
$1.2 $1.5 $4.7
Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7"
abbvie-esg-action-report.txt,"equity. Since 2020,
more than $3.2 million (including the AbbVie Foundation’s
Bangalore, India
match) has been raised for nonprofits committed to racial
equity and justice.
Key Performance Indicators: Volunteerism & Philanthropy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding Product
$1.2 $1.5 $4.7
Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Our 2023 Employee Giving Campaign"
abbvie-esg-action-report.txt,"2 million (including the AbbVie Foundation’s
Bangalore, India
match) has been raised for nonprofits committed to racial
equity and justice.
Key Performance Indicators: Volunteerism & Philanthropy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding Product
$1.2 $1.5 $4.7
Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Our 2023 Employee Giving Campaign
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197"
abbvie-esg-action-report.txt,"onations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding Product
$1.2 $1.5 $4.7
Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Our 2023 Employee Giving Campaign
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197
¹ P hilanthropic donations are charitable cash donations made by AbbVie Corporate and the AbbVie Foundation and exclude donations to disaster relief organizations.
² This donation amount excludes matching donations from AbbVie Foundation for employee donations made to disaster relief organizations."
abbvie-esg-action-report.txt,"ions (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Our 2023 Employee Giving Campaign
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197
¹ P hilanthropic donations are charitable cash donations made by AbbVie Corporate and the AbbVie Foundation and exclude donations to disaster relief organizations.
² This donation amount excludes matching donations from AbbVie Foundation for employee donations made to disaster relief organizations.
³ AbbVie updated its approach for calculating the funds raised during our employee giving campaign in 2023. For consistency purposes, our 2021 and 2022 values for this KPI have been restated to use this new methodology."
abbvie-esg-action-report.txt,"n pursue our passion for solving the
discuss compliance matters, including adherence to legal
world’s toughest health care challenges. We act as one
and regulatory obligations and commitments, assessment
AbbVie team to make good decisions, empower people to
of our compliance program, changes in the legal and
raise concerns and respect other perspectives, protect
regulatory environment, risk areas and best practices, and
our employees and our environment, and support
improvements to the program.
employee privacy."
abbvie-esg-action-report.txt,"ing.
Compliance Risk Assessment
Our Compliance Global Risk Assessment process includes Our approach for our annual/biannual enterprise training
participation and input from all of AbbVie’s affiliates is based on function, location and job responsibilities, as
globally. This flexible and iterative program is designed to employees take mandatory training on relevant topics such
continually assess risks specific to pharmaceutical and life as anti-corruption, anti-bribery and conflicts of interest,
sciences compliance and tailored to the market in which with additional training tailored by each employee’s job"
abbvie-esg-action-report.txt,"sentatives to maintain an open dialogue.
Conduct describe the ways in which we ensure respect for
all people, including our employees, contractors, suppliers
Around 25% of our employees are represented by an
and patients. We absolutely prohibit child labor, forced
independent trade union or covered by collective bargaining
labor, involuntary labor, human trafficking and unfair wages
agreements. For example, in Europe, our AbbVie European
and benefits, both from our own operations and within our
Employee Forum represents more than 10,000 employees."
abbvie-esg-action-report.txt,"tients. We absolutely prohibit child labor, forced
independent trade union or covered by collective bargaining
labor, involuntary labor, human trafficking and unfair wages
agreements. For example, in Europe, our AbbVie European
and benefits, both from our own operations and within our
Employee Forum represents more than 10,000 employees.
supply chain. We do not tolerate harassment, discrimination
It provides a forum to share information and build
or intimidation of any kind and are committed to
constructive dialogue with employee representatives in"
abbvie-esg-action-report.txt,"e Privacy Center.Our Approach to ESG Environmental Social Governance 83
2023 ESG Action Report
Cybersecurity
Oversight Cybersecurity Training & Periodic
Assessments
Our cybersecurity program is led by our Chief Information
We rely on complex information technology systems and
Security Officer, who is responsible for assessing and
various software applications to operate our business, and We have implemented a cybersecurity awareness program
managing our information security and technology risks
as such, we have developed a comprehensive cybersecurity designed to educate and train our entire employee network"
abbvie-esg-action-report.txt,"sity & Inclusion (EEDI) priorities across our teams
and device programs¹ reflects our commitment to
and geographies and, looking ahead, we will continue to
helping patients for generations to come and is critical to Richard A. Gonzalez
enhance inclusion and belonging, scale our EEDI impact
sustaining our future growth.We continue to increase our Chairman and
across our communities and business, and build a diverse
investment in R&D to record levels and to pursue business Chief Executive Officer
workforce for the future."
abbvie-esg-action-report.txt,"ty
Transparency, Accountability
& Reporting
MODERATE
Community & Partner
Engagement and Impact
Environmental Sustainability
Impact to AbbVieOur Approach to ESG Environmental Social Governance 10
2023 ESG Action Report
Our material drivers are as follows:
In addition, we prioritize Environmental Sustainability.
Product Product Quality Patient Health and
We are focused on reducing our environmental footprint,
Innovation and Safety Engagement
growing sustainability through inspiring innovation and
engaging our workforce to steward the same."
abbvie-esg-action-report.txt,"of rewards and benefits helps
us hire, retain and engage the talent we need to drive our
business forward.
Lake County, IllinoisOur Approach to ESG Environmental Social Governance 56
2023 ESG Action Report
Our Culture Attracting Talent
Our proactive approach to attracting, engaging and hiring
Our workplace culture is built upon three fundamental guideposts:
people governs our talent strategy and is applied across
all stages of the recruitment pipeline, from early career to
executive leadership.
Our multi-year roadmap for talent acquisition and workforce"
abbvie-esg-action-report.txt,"t, shared accountability, and inclusion in the Raise
from around the world serving as content specialists and
The Bar process. Reinforcing the importance of our Ways
guests, these resources can be used to improve current
We Work behaviors at AbbVie, we have embedded them
performance, as well as support growth for future positions.
into many of our talent practices, including performance
In 2023, nearly 11,000 employees (around 21% of our
reviews. All employees’ performance, regardless of level,
workforce) participated in 135 events during our seventh"
abbvie-esg-action-report.txt,"nternal Candidates 30% 29% 31%
an inclusive community that works for our people, patients
and business. Employee Engagement Rate¹ 82% - 81%
Our Principles in Action
Employees Who Indicate That AbbVie Equips Them Well to Perform in
76% - 77%
Their Role¹
Our EEDI commitment is grounded in Our Principles –
specifically embracing diversity and inclusion. Our global
¹ AbbVie Employee Survey, 2021 and 2023. The AbbVie Employee Survey is conducted every two years. The survey was not conducted in 2022.
workforce, which represents diverse backgrounds and"
abbvie-esg-action-report.txt,"ll to Perform in
76% - 77%
Their Role¹
Our EEDI commitment is grounded in Our Principles –
specifically embracing diversity and inclusion. Our global
¹ AbbVie Employee Survey, 2021 and 2023. The AbbVie Employee Survey is conducted every two years. The survey was not conducted in 2022.
workforce, which represents diverse backgrounds and
perspectives, aligns with our company values of treating
everyone equally, with dignity and respect, which we believe
“
allows us to achieve our collective best.
At AbbVie, we believe having a diverse workforce and an inclusive culture is a"
abbvie-esg-action-report.txt,"ident, Chief Equity Officer
I make a difference.”Our Approach to ESG Environmental Social Governance 60
2023 ESG Action Report
Our Global Strategy: EEDI Strategic Priorities We also strengthened the impact of inclusion by addressing
opportunities across the enterprise and functionally, with a
PowerHer: A Mentoring Program
Across the enterprise, our aligned global EEDI strategy
focus on belonging and well-being. Examples include:
for Women focusing on the following key areas in 2023: realizing a
diverse workforce; building people leader capabilities;"
abbvie-esg-action-report.txt,"ensure a culture of full
inclusion at AbbVie; and take action to lead AbbVie’s
inclusion evolution.
Lake County , IllinoisOur Approach to ESG Environmental Social Governance 61
2023 ESG Action Report
Cultivating Diversity and Inclusion:
Employee Resource Groups
Our ERGs’ Impact in 2023
Our Employee Resource Groups (ERGs) and Communities
strengthen our company culture and enrich our workplace by
Empowered and cultivated a Hispanic/Latinx
promoting awareness and fostering a diverse and inclusive
professional workforce of interns, employees and"
abbvie-esg-action-report.txt,"rams. It includes on-demand
the globe. AbbVie Vitality, our global well-being initiative, eligible employees to work remotely on average two days
fitness classes, cooking demonstrations, meditations,
offers numerous resources and programs to support all per week, helping sustain high performance, productivity
videos, articles and other resources.
employees year-round. and engagement.
• AbbVie Vitality’s Employee Assistance Program (EAP) is
available to all AbbVie employees, their dependents and
Key Performance Indicators: Share in total workforce Share in all management positions"
abbvie-esg-action-report.txt,"ays
fitness classes, cooking demonstrations, meditations,
offers numerous resources and programs to support all per week, helping sustain high performance, productivity
videos, articles and other resources.
employees year-round. and engagement.
• AbbVie Vitality’s Employee Assistance Program (EAP) is
available to all AbbVie employees, their dependents and
Key Performance Indicators: Share in total workforce Share in all management positions
household members around the world. It provides mental
(as % of total workforce) (manager level and above as %"
abbvie-esg-action-report.txt,",
offers numerous resources and programs to support all per week, helping sustain high performance, productivity
videos, articles and other resources.
employees year-round. and engagement.
• AbbVie Vitality’s Employee Assistance Program (EAP) is
available to all AbbVie employees, their dependents and
Key Performance Indicators: Share in total workforce Share in all management positions
household members around the world. It provides mental
(as % of total workforce) (manager level and above as %
U.S. Workforce by"
abbvie-esg-action-report.txt,"tain high performance, productivity
videos, articles and other resources.
employees year-round. and engagement.
• AbbVie Vitality’s Employee Assistance Program (EAP) is
available to all AbbVie employees, their dependents and
Key Performance Indicators: Share in total workforce Share in all management positions
household members around the world. It provides mental
(as % of total workforce) (manager level and above as %
U.S. Workforce by
health support, community referrals to legal and financial
of total management workforce)"
abbvie-esg-action-report.txt,"ate (Per 200,000 Hours Worked) 0.16 0.18 0.18¹
and flu shot event. In addition, we developed a migraine
management checklist that helps employees talk to their
Lost Time Injury Frequency Rate (Per 200,000 Hours Worked) 0.04 0.05 0.07¹
doctor, understand what a treatment plan might look like
and find ways to combat stress, a common trigger
Work-Related Employee and Contractor Fatalities 0 0 0
for migraines.
¹ The hours worked methodology was updated in 2023 to increase the accuracy of reporting.
Protecting Our Workforce"
abbvie-esg-action-report.txt,"international standards for
safety associated with ISO 45001.Our Approach to ESG Environmental Social Governance 65
2023 ESG Action Report
Total Rewards
AbbVie is committed to providing a comprehensive and competitive total rewards package, covering In 2023, we extended our U.S. fertility benefits
to no longer require an infertility diagnosis and
every phase of an employee’s life and career with us. This helps attract, retain and engage the talent
introduced the AbbVie Inclusive Benefits Guide,
we need to drive our business growth. We offer our modern workforce a combination of robust and"
abbvie-esg-action-report.txt,". The progress
of partners is tracked and reported each year, including
through our annual ESG Action Report.
Chicago, IllinoisOur Approach to ESG Environmental Social Governance 70
2023 ESG Action Report
Advancing Racial Equity in • United Negro College Fund:
Enabled Black professionals to pursue careers in health
Health and Education
care, providing scholarships and support services to
more than 800 students through its Healthcare Diversity
In 2020, the AbbVie Foundation made a five-year, $50
Workforce Program"
abbvie-esg-action-report.txt,"students through its Healthcare Diversity
In 2020, the AbbVie Foundation made a five-year, $50
Workforce Program
million commitment to advance health and education
equity in Black and other marginalized communities across • University of Chicago Medicine’s Urban Health Initiative:
the United States. Our six nonprofit partners have made Trained community health workers helped more than
significant strides to advance racial equity by reducing 27,000 residents in Chicago's south side navigate and
health disparities and providing educational and workforce- access health and social service resources through its"
abbvie-esg-action-report.txt,"pproach to ESG Environmental Social Governance 75
2023 ESG Action Report
Corporate Governance
Our board is committed to strong corporate governance to enhance long-term shareholder value.
• Board independence:
Board Diversity
Twelve of our 13 directors are independent, including
AbbVie is committed to a board with diversity of thought,
the chairs and all members of the Audit, Compensation,
experiences, identities and perspectives. We believe that
Public Policy & Sustainability and Nominations &
diversity on the board, and throughout our workforce,"
abbvie-esg-action-report.txt,"y-based Relationship
assessment and monitoring and
extension of our own operations in achieving this. To ensure that our suppliers
controls management
stratification assessment
share and uphold our standards, we maintain a comprehensive supplier
management program built around four central components:
Assurance of Supply for production volumes on a monthly basis. This informs Lake County, IL
decision making about the need to expand capacity,
Because AbbVie delivers vital lifesaving medicines to
introduce new technology or invest in our workforce well"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Compensation — Other Compensation — 401(k) Savings and Profit Sharing Plan, page 55
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53
Aflac does not disclose this information.
72 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ents and innovation within our U.S. platform, in
Our growth strategy remains consistent and is strongly aligned to
response to rapidly changing market trends. We believe our
the market opportunity. We continue to make strategic
platform investments will contribute to improved persistency and
advancements to our business model and are pleased with the
high customer experience and satisfaction levels. We have also
progress we have made.
continued our One Digital Aflac strategy to create a digital
experience across the employee, customer and distribution"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"establish a
with our customers and stakeholders. These expectations are
strong foundation, we must also ensure that our ethics and
rooted in our Aflac Way values of Teamwork, Respect, Fairness,
compliance program operates effectively in practice. We use
Honesty, Integrity and Responsibility, the same values upon which
many tools to gauge the health of our program, including a
the Aflac co-founders built our company more than 67 years ago.
periodic ethics and culture survey. The anonymous survey
Our Code of Business Conduct and Ethics shows us how to take provides invaluable information regarding employee awareness of"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"y’s SmartGreen® philosophy. Its efforts are centered on the environment
implementing innovative practices across our company to reduce
our greenhouse gas emissions, ensure efficient use of resources,
and help our employees be good stewards of our
natural surroundings.
Aflac SmartGreen Philosophy: Wisely choose, use and dispose
of the resources we use each day and focus these actions in
five categories:
Business Waste
operations management
Facilities Strategic sourcing
management and procurement
Employee"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"984 metric tons of mixed paper,
Design (LEED) Gold-certified buildings in the U.S. and Japan.
metals, plastic, and electronics from the landfill and incineration in
2021. The percentage of waste used and recycled increased to
89% in 2021.
44 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Engagement • Free Cycle Event
The Green Committee sponsors an easy way for Aflac’s
employees and departments to pick up supplies through the
Employee Engagement Free Cycle Office Supply Event and save the company money."
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ment Free Cycle Office Supply Event and save the company money.
While cleaning out unused cubicles, we collected piles of
Aflac is committed to maintaining a sustainable work environment
paper clips, binders, binder clips, rubber bands, post-it notes
that promotes environmental awareness and contributes to the
file folders, and much more. In its twelfth year, the Free Cycle
health and well-being of our employees and the community. Our
Office Supply Event has helped us avoid more than $40,000 in
goal is for every employee to understand global environmental"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"oods These are embedded emissions with the capital goods purchased. No 3,727
3. Fuel-and-energy-related activities These are emissions associated with production and distribution No 3,507
(not included in Scope 1 or 2) of purchased electricity.
5. Waste generated in operations These are emissions generated through the disposal and Yes 153
treatment of waste generated in on-site operations.
6. Business travel These are emissions generated from traveling for Yes 3,072
business-related activities.
7. Employee commuting The Company generates emissions through staff commuting and Yes 2,809"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"(Category 10), use of sold products (Category 11), end-of-life treatment of sold products (Category 12), downstream leased assets
(Category 13) and franchises (Category 14).
46 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Workforce
We know doing the right thing is good for business, and we do that every day by investing first in
our Aflac family. In both Japan and the United States, the company strives to develop an engaged
employee culture by supporting career development, emphasizing work/life balance, listening to"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"he right thing is good for business, and we do that every day by investing first in
our Aflac family. In both Japan and the United States, the company strives to develop an engaged
employee culture by supporting career development, emphasizing work/life balance, listening to
our employees’ feedback and ideas, and ensuring we show our appreciation for their hard work.
Our overarching human capital philosophy is, “If you take care of your employees, your employees
will take care of the business.”
Employee Wellness and • Ergonomics resources, including standing desks and chairs, to"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"esources, including standing desks and chairs, to
assist in creating the most effective and comfortable
Work/Life Balance
work environment.
Our employees are central to everything we do, and Aflac is • On-site fitness centers that are available to most employees,
committed to fostering a safe and healthy environment that allows along with fitness classes held throughout the year.
them to excel professionally and personally, as well as keep a
• Reduced-price memberships to private gym facilities
healthy mind and body. Employee wellness is more than just an"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,", and Aflac is • On-site fitness centers that are available to most employees,
committed to fostering a safe and healthy environment that allows along with fitness classes held throughout the year.
them to excel professionally and personally, as well as keep a
• Reduced-price memberships to private gym facilities
healthy mind and body. Employee wellness is more than just an
throughout the U.S. to accommodate our remote employees
isolated program or initiative; moreover, it is purpose-driven and
woven into the fabric of our company’s values and the employee"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"he employee
experience. We prioritize health and well-being across our
organization, beginning with our employees and extending
throughout their organizations, families, and larger community.
In the U.S., our comprehensive approach to wellness
encompasses five dimensions: physical, emotional, social,
spiritual and financial. Each dimension is unique, but all five are
key to employees’ overall well-being. Our goal is to provide our
employees with the resources, services, and tools that cover all
five dimensions of employee wellness. This includes:"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"larger community.
In the U.S., our comprehensive approach to wellness
encompasses five dimensions: physical, emotional, social,
spiritual and financial. Each dimension is unique, but all five are
key to employees’ overall well-being. Our goal is to provide our
employees with the resources, services, and tools that cover all
five dimensions of employee wellness. This includes:
• A monthly health and wellness newsletter that covers all the
latest happenings to support your health and well-being,
including employee health benefits, current events, healthy"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"for continual improvement.
• Offering preventive screenings to identify and monitor health
conditions such as cancers.
• Walking trails that are available on multiple campuses for
employees to use to take a breath of fresh air and re-energize.
• Healthy activities and challenges that are incentivizing our
employees to be more physically active.
• Two on-site childcare centers.
47 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
• Multiple employee health care facilities, known as the Aflac Care Aflac Japan All Ribbons"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ctive.
• Two on-site childcare centers.
47 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
• Multiple employee health care facilities, known as the Aflac Care Aflac Japan All Ribbons
Clinics, that offer sick care, health coaching, health assessments,
and more.
• Offering programs from benefit partners that allow employees, no
matter where they are located across the country, to participate in
a full and robust wellness program.
• The Employee Assistance Program (EAP), which helps employees"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ployee Assistance Program (EAP), which helps employees
cope with some of life’s struggles including substance abuse,
family matters, marital concerns, and financial and legal problems.
• On-site chaplains that are available in person and virtually to
support the mental and spiritual well-being of Aflac employees.
• Financial coaching to help manage budgetary commitments,
meet financial goals, protect against risks, save for contingencies
or future needs like college or retirement, and cope with
financial shocks. In 2017, Aflac Japan pioneered a volunteer peer-based employee"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"e. Our commitment to wellness is just one colleagues who have experienced various types of cancer. The All
way we strive to create a highly effective and engaged workplace. To Ribbons group members provide support to fellow employees
take its health management initiatives to the next level, Aflac Japan battling cancer and struggling to balance treatment and work. All
launched “Health Management 2024” in preparation for its 50th
Ribbons participants are provided with opportunities to share their
anniversary in 2024. In an effort to identify employee health issues"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ide support to fellow employees
take its health management initiatives to the next level, Aflac Japan battling cancer and struggling to balance treatment and work. All
launched “Health Management 2024” in preparation for its 50th
Ribbons participants are provided with opportunities to share their
anniversary in 2024. In an effort to identify employee health issues
unique experiences battling cancer, including tips for remaining
and areas for improvement, Aflac Japan analyzed health-related data
balanced in their work life. Employee consulting services are also"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"and
provided. In addition to these support activities, the All Ribbons
resources under “Health Management 2024” to help employees
maintain and improve their health, including: group also hosts panel discussions which often take place at the
“All Ribbons Café” which is a meeting place for employees where
• Setting personal goals from five themes: exercise, mental health,
cancer services information is available.
diet, drinking, and smoking cessation. Approximately 50% of
employees participated.
Employee Appreciation"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"through a walking campaign in
which employees set a target step-count and shared those Our core philosophy of caring for our employees is central to why
numbers with colleagues via a smartphone app; the campaign Aflac places such an emphasis on engagement and appreciation.
encouraged exercise and energized team communication. Throughout each year, the company offers a variety of events and
Approximately 60% of employees participated. activities to celebrate our employees. For example, our Aflac
• Fostering employee peace of mind through a “Workplace Support Feathers program allows employees to recognize their peers and"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Feathers program allows employees to recognize their peers and
Program for Cancer Patients & the Sick/Injured.” designed to leaders by nominating them when they go above and beyond to
support those employees in need as they work and seek balance uphold the seven commitments of the Aflac Way. By collecting
with medical treatment. points from these nominations, employees earn recognition and
can redeem points for special items.
Aflac Japan is also certified as a Health and Productivity Management
Organization by Japan’s Ministry of Economy, Trade and Industry Employee Appreciation Week (EAW) is an annual week-long"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"d the seven commitments of the Aflac Way. By collecting
with medical treatment. points from these nominations, employees earn recognition and
can redeem points for special items.
Aflac Japan is also certified as a Health and Productivity Management
Organization by Japan’s Ministry of Economy, Trade and Industry Employee Appreciation Week (EAW) is an annual week-long
(METI) for the fifth consecutive year. This certification is awarded for tradition that includes daily drawings for prizes, games,
best practices in employee health management, strategically entertainment, snacks, community outreach opportunities and"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"secutive year. This certification is awarded for tradition that includes daily drawings for prizes, games,
best practices in employee health management, strategically entertainment, snacks, community outreach opportunities and
focused work style and development of a socially appreciative
other activities to celebrate the company’s greatest assets — its
work environment.
employees. EAW is held the first week of May in the U.S. following
the celebration of Founders Week and each November in Japan
Aflac Japan offers an on-site to coincide with Aflac Japan’s anniversary. Every day of Employee"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"of Founders Week and each November in Japan
Aflac Japan offers an on-site to coincide with Aflac Japan’s anniversary. Every day of Employee
childcare center and Appreciation Week is designed to show employees how much
provides support for different
Aflac appreciates them.
parenting stages: prenatal,
childbirth/child care leave,
and balancing work and
parental responsibilities.
48 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Employee Engagement Aflac Japan also provides challenging assignments, opportunities"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Japan also provides challenging assignments, opportunities
to advance and career support in the form of individual training
While celebrating our employees is important, it is not the only
and Career Development Plans. All Aflac Japan managers receive
way to drive engagement. We strive to create an environment
human capital management training, and are offered resources
where employees can realize their fullest potential. To do so, Aflac
through a variety of means, including webinars and micro-
prioritizes employee engagement and conducts regular surveys to"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"vance and career support in the form of individual training
While celebrating our employees is important, it is not the only
and Career Development Plans. All Aflac Japan managers receive
way to drive engagement. We strive to create an environment
human capital management training, and are offered resources
where employees can realize their fullest potential. To do so, Aflac
through a variety of means, including webinars and micro-
prioritizes employee engagement and conducts regular surveys to
learning, to support employee career development. Aflac Japan is"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"o employees across the U.S.
employees for extraordinary efforts. Other activities that drive
through its Career Success Centers. U.S. employees can meet
engagement include our diversity councils in the U.S. and Japan,
with career consultants who provide mentoring, coaching,
volunteer opportunities in local communities where we operate
résumé-writing support, mock interviews, career consultations,
and access to a variety of support resources including non-
exam proctoring and talent assessments.
denominational faith leaders and a dedicated team of Employee"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"toring and talent assessments.
denominational faith leaders and a dedicated team of Employee
Advocates, whose role is to be a support resource for employees. Mentoring
The mission of Aflac U.S.’s mentoring program, TEACH, is to
Talent Development excite and empower employees to pursue self-development and
provide an opportunity to tap into useful skills and experiences of
At Aflac, we know our human capital is our greatest competitive
others for growth and development. TEACH allows employees to
advantage. Employee development is a core focus, with programs"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"tees are “matched” for the program based on career
alignment and development focus. The program offers organized
activities and encourages the pairs to build a working relationship
that goes beyond the length of the formal program.
49 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Japan Work SMART
Aflac Japan promotes workstyle reform through its “Aflac Work SMART” initiative. This initiative aims to maximize organization-wide
performance by supporting employee work-life balance through the development of systems and supporting infrastructure that allow"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ncourages the pairs to build a working relationship
that goes beyond the length of the formal program.
49 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Japan Work SMART
Aflac Japan promotes workstyle reform through its “Aflac Work SMART” initiative. This initiative aims to maximize organization-wide
performance by supporting employee work-life balance through the development of systems and supporting infrastructure that allow
each employee to review their own workstyle and achieve a way of working not limited by “time” or “place.”"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"kstyle reform through its “Aflac Work SMART” initiative. This initiative aims to maximize organization-wide
performance by supporting employee work-life balance through the development of systems and supporting infrastructure that allow
each employee to review their own workstyle and achieve a way of working not limited by “time” or “place.”
Workstyles not constrained by “Time” Aflac Japan strives to create an environment where employees
can realize work-life management, and we continue to make
Aflac Japan offers every employee the opportunity to work a"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"here eligible employees can choose among 12 different
• Of the employees who could choose to work shorter hours due
working hour options that may combine reduced work hours and
to childcare, in 2021 only 24.9% of employees chose to do so,
shift work.
compared to 53.4% in 2015 (i.e., more flexible workstyles are
Workstyles not constrained by “Place” enabling employees to more effectively balance their personal
and professional time).
Aflac Japan provides a work system and environment that enable
every employee to work from home. Aflac Japan provided all"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ym stands for:
S M A R T
See the Big Maintain Act with Respect Think
Picture Focus Initiative Dialogue Time Value
50 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Our Workforce Diversity
Aflac’s culture is rooted in caring for others and creating a sense
of belonging for all employees. In 2001, Aflac Incorporated
Chairman & CEO Dan Amos, led the cause to create the first
diversity council at Aflac. Though time has passed, our
commitment to diversity continues to this day with nine employee-"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ty and inclusion. It is reflected in the
to gain a broad knowledge of the organization through on-the-
makeup of our workforce, the equity of our pay policies and the
job experiences.
initiatives we continually undertake to make every person feel
welcomed and valued. There is no doubt that we are building a
Accountability
stronger company, but we recognize there is more that we can do.
Recognizing that diversity and inclusion is a business imperative, Still, we believe we are on the right path.
in 2021 Aflac committed to employee (leadership) diversity goals"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ROLES WHO ARE WOMEN
Aflac U.S.’s goal is to increase
66% 50% 31%
diversity within senior
management by 5% by 2026.
EMPLOYEES PEOPLE OF COLOR IN SENIOR MANAGEMENT WHO
WHO ARE PEOPLE LEADERSHIP ROLES ARE PEOPLE
OF COLOR OF COLOR
49% 30% 29%
Board of WOMEN
AND PEOPLE
Directors
OF COLOR
64%
*General manager or manager positions at Aflac Life Insurance Japan, not other subsidiaries.
54 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
U.S. Employee New Hires • In 2021, 375 job titles held by both men and women at Aflac"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"for consultation and events related to pediatric cancer.
Since the Aflac Parents House locations first opened their doors,
we have provided support to more than 149,000 people.
Many executives, employees, group companies, and sales
agents support the operation of Parents House by donating
hygiene products and daily necessities, as well as remote
volunteer activities so that children and their families can stay
in the building with peace of mind even as concerns over
COVID-19 infection continue.
In 2022, employee volunteers resumed activities for the first time"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"he Global Gold September Campaign, Aflac Japan hosted
a classical music charity concert that brought together
stakeholders. At the venue, Aflac Japan communicated the
importance of supporting the treatment of childhood cancer and
raised funds to raise awareness of childhood cancer.
The Gold Ribbon Walking
Approximately 1,700 people, including employees, associates,
alliance partners, children fighting childhood cancer, and their
families, participated in the Gold Ribbon Walking held in October.
On the day of the event, employee volunteers also participated in"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"cope 2022 CPD Report 1, Scope 2, Scope 3 GHG Emissions, page 48
GHG emissions 2022 CPD Report
2022 TCFD Report
305-5 Reduction of GHG emissions Environment — Progress on Greenhouse Gas Reductions, pages 45-46
2022 TCFD Report
2022 Proxy Statement: Voting Roadmap — Corporate Social Responsibility and Sustainability Highlights —
Environment, page 12
2022 CPD Report
GRI 306: WASTE 2020
305-4 Waste diverted from disposal Environment — Waste Prevention and Reduction, page 46
GRI 401: EMPLOYMENT 2016
401-1 New employee hires and ESG Highlights — Workforce Diversity, page 31; Social — Human Capital Management — Our Workforce Diversity —"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"sions Environment — Progress on Greenhouse Gas Reductions, pages 45-46
2022 TCFD Report
2022 Proxy Statement: Voting Roadmap — Corporate Social Responsibility and Sustainability Highlights —
Environment, page 12
2022 CPD Report
GRI 306: WASTE 2020
305-4 Waste diverted from disposal Environment — Waste Prevention and Reduction, page 46
GRI 401: EMPLOYMENT 2016
401-1 New employee hires and ESG Highlights — Workforce Diversity, page 31; Social — Human Capital Management — Our Workforce Diversity —
employee turnover U.S. Employee Demographics, page 58"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Compensation — Other Compensation — 401(k) Savings and Profit Sharing Plan, page 55
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53
Aflac does not disclose this information.
72 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"pplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53
Aflac does not disclose this information.
72 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —
Employee Wellness and Work/Life Management, page 52"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"& SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —
Employee Wellness and Work/Life Management, page 52
2022 Form 10-K: Item 1. Business — Human Capital — Health and Wellness, page 10
ESG Policies and Statements
GRI 404: TRAINING AND EDUCATION 2016
404-2 Programs for upgrading employee skills Workforce — Talent Development, page 52; Workforce — Japan Work SMART, page 53"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"The Aflac Way: Making a
difference while balancing
purpose and profit
2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"position to give
back and help improve our communities where we can with our philanthropic commitments, including
helping children who are facing cancer and other serious illnesses. 26 Sustainability
Highlights
Aflac Incorporated’s Goal 30 Governance
To provide customers with the best value in
35 Protecting Our
Customers and Data
supplemental insurance products in the
with Cybersecurity
United States and Japan. 37 Political Activity
Report
38 Investments
Long-Term Growth Strategy
42 Environment
47 Workforce"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"lity
Highlights
Aflac Incorporated’s Goal 30 Governance
To provide customers with the best value in
35 Protecting Our
Customers and Data
supplemental insurance products in the
with Cybersecurity
United States and Japan. 37 Political Activity
Report
38 Investments
Long-Term Growth Strategy
42 Environment
47 Workforce
57 Care on Purpose:
Aflac’s Strategic
RELEVANT EXPANSIVE Philanthropy
CUSTOMERS
PRODUCTS DISTRIBUTION
68 Appendix
* LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report
1 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"oducts and
solutions; all things being equal, we believe most people prefer
doing business with a company that is also a good corporate
citizen. We refer to this as “The Aflac Way.”
The Aflac Way serves as a set of guiding principles that are
woven into our culture, daily operations, and interactions with the
communities we serve and in which we live. Whether it is being
there for our policyholders when they need us most, helping
families facing childhood cancer, providing opportunities for our
diverse workforce and distribution channels, being mindful of our"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"licyholders when they need us
most—just as we promise. From an overall standpoint, pandemic
conditions impacted operations in Japan, especially in the first
half of 2022, but they are gradually improving. Meanwhile,
pandemic conditions in the U.S. have largely subsided.
I’m proud of what we have accomplished by delivering solid
“All things being equal,
earnings and in terms of our social purpose.
we believe most people
prefer doing business with
a company that is also a
good corporate citizen.”
2 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"eriod foreign currency impact are net earnings and net earnings per share, respectively. Adjusted earnings of $5.67 per share excludes per share adjusted net
investment gains of $0.70, income tax benefit on items excluded from adjusted earnings of $0.56, and foreign currency impact of $0.34.
In this document, we may refer to Aflac Incorporated’s businesses collectively as “Aflac” or the “Company,” the Company’s U.S. businesses as “Aflac U.S.” and the Company’s Japan
businesses as “Aflac Japan.”
3 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Our strategy for growing the business, since our inception, has
included making a concerted effort and direct investments in what it from that approach also
takes to be a good corporate citizen. Being recognized with hard- connects us to the marketplace
earned accolades illustrates how caring on purpose aligns our value
and gives us greater potential
proposition for consumers and for shareholders of our company.
to succeed.”
Fred Crawford
AFLAC INCORPORATED PRESIDENT AND
CHIEF OPERATING OFFICER
4 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"r environmental, social and governance
strategies, progress, data and performance for the 2022 fiscal
Business and Sustainability Report integrates a
year (January 1 to December 31) unless otherwise noted. All
review of our operations and financial results
financial information is presented in U.S. dollars, unless otherwise
with how we measure and manage the impact noted. For additional corporate sustainability activities and
disclosures, please visit Sustainability under the Investor Relations
we have on our workforce, customers,"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"orate sustainability activities and
disclosures, please visit Sustainability under the Investor Relations
we have on our workforce, customers,
section of our website.
investors, communities and planet.
In this report, the terms “Aflac,” “we,” or “our” refer to Aflac
Incorporated. The term “Aflac U.S.” refers collectively to the
Company’s United States insurance subsidiaries, American Family
Life Assurance Company of Columbus and its wholly-owned
subsidiary American Family Life Assurance Company
5 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"” “will,” “assumes,”
“potential,” “target,” “outlook” or similar words as well as specific
projections of future results, generally qualify as forward-looking.
Aflac undertakes no obligation to update such forward-looking
statements. For a discussion of assumptions, risks, uncertainties
and other important factors that could cause actual results to differ
materially from those expressed in the forward-looking
statements, see our most recent reports on Form 10-K and Form
10-Q filed with the SEC.
6 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"PRETAX ADJUSTED EARNINGS (in billions)
#1
65% 35% 70% 30%
$12.3 $6.5 $3.1 $1.3
PROVIDER OF SUPPLEMENTAL
Japan U.S. Japan U.S.
HEALTH INSURANCE AT THE
WORKSITE IN THE UNITED STATES
#1
MARKET CAP
$44.7
1 2022 NET EARNED PREMIUMS BY SEGMENT
billion
JAPAN U.S.
7%
FY22 REVENUE
29% Life Insurance
$19.5 45%
billion 79% Medical and 17% Accident/
50% Other Other Health Disability
Third Sector Health
Cancer
FY22 EMPLOYEES
21%
31%
~12,800
Life Insurance Critical Care
1 As of December 31, 2022, close price
7 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"new service that provides comprehensive support
the new cancer insurance product, “WINGS,” which covers the from diagnosis through treatment and recovery. In addition, Aflac
latest cancer treatments, and a work leave insurance product. Japan is deepening its collaborative relationships with business
Despite a challenging external environment, Aflac Japan was partners while supporting our sales agents.
able to achieve 2022 new policy annualized premiums in line
with the previous year's results.
8 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"EARNED PREMIUMS* TOTAL ADJUSTED REVENUE TOTAL BENEFIT RATIO INCREASED
DECREASED 4.2% TO DECREASED 2.2% TO 170 BASIS POINTS TO
¥1.2 ¥1.6 68.9%
trillion trillion
ADJUSTED NET INVESTMENT INCOME TOTAL ADJUSTED EXPENSE RATIO THIRD SECTOR BENEFIT RATIO
INCREASED 5.5% TO REMAINED FLAT AT INCREASED 260 BASIS POINTS TO
¥351.5 21.5% 59.2%
billion
PRETAX ADJUSTED EARNINGS PRETAX PROFIT MARGIN
DECREASED 3.1% TO DECREASED 30 BASIS POINTS TO
¥399.3 24.9%
billion
* Net earned premiums are net of reinsurance.
9 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"al number of banks
is also increasingly being used in conjunction with existing face-
in Japan.
to-face sales methods, for example, to guide customers in remote
* Includes individual agencies, independent corporate agencies and
areas where it is difficult to visit a physical shop. Aflac Japan is
affiliated corporate agencies
considering expanding online consultation to other channels in
the future, which we believe will further enhance our strength of
having various channels with our customers.
10 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ake strides as the
issue and the risk of being unable to work grows among young leading company in creating “living in your own way.”
and middle-aged people. While their market volume is smaller
than that of medical or cancer insurance, these areas have the
potential for growth. Aflac Japan intends to expand the market
through continued promotion of ""Aflac Reliable Nursing Care
Insurance"" (September 2021 launch) and ""Aflac Work Leave
Insurance for Supporting Working People"" (March 2022 launch).
11 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"e
In early 2002, Aflac introduced EVER, a standalone, whole-life medical
product, as a solution to help Japanese citizens with rising copayments
related to Japan’s universal health care coverage. Within one year of the
introduction of EVER, Aflac became the leading seller of medical
insurance in Japan at that time. In January 2021, Aflac Japan introduced
its new EVER Prime product, which offers enhanced coverage through a
wide range of riders to meet policyholder needs at different life stages.
12 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"fit at the time of a child’s entry into high
GIFT
school and an educational annuity for each of the four years of
In February 2017, we introduced a revised version. Upon the college.
death of the insured, this product provides beneficiaries, typically
* Aflac Japan sells asset-formation products with the primary objective of
family members, with a monthly benefit until the insured would
offering comprehensive protection proposals with the third sector products.
have reached a predetermined age.
13 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"t with AI to offer new
products and sales associates. Despite being virtual, this activity customers opportunities to purchase its products. Specifically,
deepens the customer experience and can help the customer among new customers who do not have an Aflac policy, Aflac
more clearly remember the agent. Japan uses AI to identify customers who are likely to benefit from
insurance, and provides the information to associates, thereby
offering new customers the opportunity to purchase its products.
14 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"CE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Japan Awards
Aflac receives highest
“Chairman’s Award” at
22nd Telework Promotion
Awards sponsored by Japan
Telework Association
Recognized as one of “2022 Leading
Companies in Health and Productivity
Management” by the Nippon Kenko
Kaigi and the Ministry of Economy, Trade
and Industry
Aflac receives “Minister
of Health, Labour and
Welfare Award First
Prize” in “FY2021
Leading Companies in
Promoting Cancer
Control Measures
Awards”
15 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Women
Aflac recognized in Strategy
Division of Contact Center Japan
Awards 2022
Aflac wins “Gold Award” in “2022
Company Newsletter Awards”
Aflac wins “IT Award” Won the Gold
for 2nd Straight Year
Award in the “PRIDE
from Japan Institute
Index 2022*”
of Information
Technology
*An evaluation index
for initiatives supporting
sexual minorities in
the workplace
Aflac wins
“Excellence
Award” in
Aflac awarded at 2022 Telework
“Insurance Asia Awards
Promotion
2022” for the 3rd
Awards
consecutive year
16 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report
2022 Aflac U.S. Financial Highlights
NET EARNED PREMIUMS* ADJUSTED NET PRETAX ADJUSTED
DECREASED 0.8% TO INVESTMENT INCOME EARNINGS DECREASED
INCREASED 0.1 % TO 10.4% TO
$5.6 $755.0 $1.3
billion million billion
TOTAL BENEFIT RATIO TOTAL ADJUSTED EXPENSE PRETAX PROFIT MARGIN
INCREASED 20 BASIS RATIO INCREASED 240 DECREASED 240 BASIS
POINTS TO BASIS POINTS TO POINTS TO
43.8% 41.9% 20.4%
* Net earned premiums are net of reinsurance.
17 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"feature every Saturday during the college
football matches — from experiential activities at big games to
social media, television, digital, social and more. The partnerships
with Coach Prime and Coach Saban put Aflac at the center of
college football conversation this season with strong results
across the board.
• 9 billion earned and paid impressions
• 297 million completed video views
• 904,000 people reached on-site
• Coach Saban and Coach Prime were featured on ESPN to
discuss the campaign
18 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"roup basis and long-term disability benefits on a group basis.
Our plans provide coverage for covered injury, illness or mental Life (Term and Whole)
health conditions. Aflac U.S. offers term- and whole-life policies on both an
individual and group basis.
Critical Illness Insurance
Aflac U.S. offers coverage for critical illness plans on both an
individual and group basis. These policies are designed to pay
cash benefits in the event of critical illnesses such as heart attack,
stroke or cancer.
19 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"and we are well positioned to capitalize on that most requested policies after health insurance, with over two-
opportunity. Health care costs continue to rise with minimal wage thirds of small businesses offering these products. With these
growth, and Aflac is here to help solve the significant challenge of added products, Aflac is able to provide a more complete offering
coming up with cash for out-of-pocket expenses. Within the U.S. to employers. During 2022, the Aflac Dental Network became
workforce of approximately 156 million workers, Aflac has access the fastest growing network with the addition of nearly 19,000"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ution
also launched a fully digital direct channel to reach consumers alliance with Trupanion, Inc., a leader in the quickly growing
beyond the typical worksite model. To complement our value market of medical insurance for cats and dogs. This alliance
expansion efforts, we continue to work to be where people want will leverage Aflac’s strong brand and broad U.S. worksite
to buy insurance and believe we are well positioned to meet the distribution network, including its digital Consumer Markets
needs of the 156 million workers in the U.S. workforce. channel, and Trupanion’s expertise and leadership in"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"growing
beyond the typical worksite model. To complement our value market of medical insurance for cats and dogs. This alliance
expansion efforts, we continue to work to be where people want will leverage Aflac’s strong brand and broad U.S. worksite
to buy insurance and believe we are well positioned to meet the distribution network, including its digital Consumer Markets
needs of the 156 million workers in the U.S. workforce. channel, and Trupanion’s expertise and leadership in
pet insurance.
20 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Ethical
Dow Jones Sustainability
Companies by
North America Index
Ethisphere for the 17th
(9th year)
consecutive year
One of the first signatories
Signatory of the of the Hispanic Promise,
Principles for Responsible a pledge to hire, promote,
Investment (PRI) retain and celebrate
Hispanics in the workplace
Forbes list of America’s
CEO Action for Diversity
Best Employers
and Inclusion
for Diversity (4th year)
The Civic 50 Points of
Business Roundtable
Light (5th year)
Latina Style 50
(22nd year)
21 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"e 375,960 shares valued at more than $27 million and received $601,356 in dividends.
67 48 $44.7 40
years years billion years
SINCE FOUNDING ON NYSE MARKET CAP OF CONSECUTIVE
DIVIDEND
INCREASES
Total Shareholder Return
including reinvested dividends SHAREHOLDER MIX
Individual
300.0%
Investors
245.3% 32%
250.0%
200.0%
Percentage of
outstanding shares
150.0%
owned by
100.0% 85.0%
46.9%
50.0%
Institutional
0.0%
Investors
Over the last Over the last Over the last
68%
three years five years 10 years
22 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"- - -
subsidiaries hold among the highest financial strength ratings Company of New York
in the industry. These important ratings reflect our ability to Continental American
A+ - - - -
pay claims. We’re proud that rating agencies continue to Insurance Company
recognize the strength of our balance sheet.
Aflac Re Bermuda Ltd. - - - AA -
* As of 3/1/23; for both primary insurance subsidiaries: Aflac of
Columbus and Aflac Life Insurance Japan, Ltd.
For more information, visit investors.aflac.com.
23 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"656 6,922 4,576 5,316 3,958
Shareholders’ equity 22,365 33,253 33,559 28,959 23,462
Total liabilities and shareholders’ equity $ 131,017 $ 157,542 $ 165,086 $ 152,768 $ 140,406
SUPPLEMENTAL DATA
Stock price range: High $ 72.70 $ 53.46 $ 57.18 $ 48.19 $ 44.91
Low 52.07 23.07 44.28 41.41 33.25
Close 71.94 44.47 52.90 45.56 43.89
Yen/dollar exchange rate at year-end (yen) ¥ 132.70 ¥ 115.02 ¥ 103.50 ¥ 109.56 ¥ 111.00
Weighted-average yen/dollar exchange rate (yen) 130.17 109.79 106.86 109.07 110.39
24 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"T AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Key Operational Metrics
2022 2021 2020
AFLAC JAPAN
Policies and riders in force* 37,877 38,537 39,064
Annualized premiums in force** ¥ 1,300,951 ¥ 1,360,624 ¥ 1,426,546
New annualized premiums** ¥ 54,765 ¥ 54,764 ¥ 50,852
AFLAC U.S.
Policies and certificates in force* 13,119 13,090 13,145
Annualized premiums in force** $ 5,967 $ 6,003 $ 6,099
New annualized premiums** $ 1,483 $ 1,278 $ 1,093
* In thousands
** In millions
25 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"d Inclusion (DEI) Filled 25.3% of Aflac Life Insurance Japan’s manager or general
manager positions with women.
• Aflac Life Insurance Japan has a longer-term
plan to increase women in management roles 47% of Aflac U.S. senior management positions were diverse, an
to 30% by 2025. increase of 4% in 2022.
• Aflac U.S. aims to increase overall diversity in Increased the percentage of females and people of color in
our senior management by 5% by 2026. senior management to 28% and 27%, respectively.
26 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"regulations.
Distributed business unit scorecards to senior leadership to
provide a quarterly view of divisional performance against key
security controls.
Completed Cyber Incident Response Global Tabletop Exercise
to validate the Global Crisis Management Plan.
Expanded Management’s Global Risk Committee platform to
extend integrated risk management capabilities for seven new
use cases.
Matured and extended existing controls to address outcomes of
2021 Global Ransomware Preparedness Assessment.
27 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"icity for owned and controlled facilities from
electricity used for owned and controlled facilities renewable resources.
from renewable resources and submission of a formal Mapped a path to 100% renewable electricity by 2030.
path to 100% by 2030.
Climate Risk & Reporting— Report Scope Received attestation for green house gas emissions, not only Scopes 1 and 2
1-3 emissions and attestation, including at least 3 but also 5 categories of Scope 3: 1, 5, 6, 7 and 8.
categories of Scope 3 emissions.
28 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,".
from renewable resources and submission of a formal Mapped a path to 100% renewable electricity by 2030.
path to 100% by 2030.
Climate Risk & Reporting— Report Scope Received attestation for green house gas emissions, not only Scopes 1 and 2
1-3 emissions and attestation, including at least 3 but also 5 categories of Scope 3: 1, 5, 6, 7 and 8.
categories of Scope 3 emissions.
28 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Workforce Diversity Community Investment"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"roles. In
• 149,000 pediatric patients and their family members who
2022, 62% of new hires located in the U.S. were people of color
have called Aflac Parents House a home-away-from-home
and 69% were women.
while receiving treatment for serious illnesses, like cancer.
• $165 million in support of the Aflac Cancer and Blood
Disorders Center of Children’s Healthcare of Atlanta,
helping to make it one of the top pediatric cancer programs
in the United States according to U.S. News and
World Report.
29 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"olitical Action Committee
• Aflac Supplier Code of Conduct
""We sell a promise to be there for
our customers when they are in
need, and that promise requires
trust that we will do the right
thing at the time of claim. Being
transparent, acting with integrity
and honesty, and just being a
good corporate citizen earns the
trust of our stakeholders and
illustrates our commitment to
always doing the right thing.""
— Audrey Boone Tillman
EXECUTIVE VICE PRESIDENT AND GENERAL
COUNSEL, AFLAC INCORPORATED
30 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ween Aflac Incorporated’s direct and indirect
corporate governance framework to meet the expectations of
subsidiaries in accordance with Japanese and U.S. laws
stakeholders through the appropriate oversight of the
and regulations.
GENDER/RACIAL DIVERSITY AVERAGE TENURE
9.9 7
years years
for full Board for independent directors
4
11 Women AVERAGE AGE INDEPENDENT
1 Black or 65.5 91%
BOARD
MEMBERS African
7 American
Men
2 Asian
1 Black or
African American
Aflac Incorporated Global Governance & ESG
31 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"porate Governance
Committee to incorporate diversity, equity, and inclusion efforts
with regard to the Company’s policies and principles relating to
succession planning and management development. The Audit
and Risk Committee oversees the Company’s policies, process,
and structure related to enterprise risk engagement and
management, which includes ESG risks and opportunities.
Through the CSR&S Committee, ESG-related risks are integrated
into organizational strategy, plans of action, management
32 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"cy and
and standards, ESG rating agency reports, and local, national and
Informational Security, and Ethical Marketing and Promotion.
international ESG-related regulations to inform our decision-
Topics related to employees (e.g., Human Capital Management
making on our most important ESG issues and their prioritization.
and Corporate Culture and Diversity, Equity, and Inclusion) were
also predominately in the top. However, as a life insurer,
Environmental topics, which tend to rank higher among
33 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"employees of principles that may not be common
knowledge. Providing relevant training to leaders and employees
is a key factor in the long-term effectiveness of our ethics and
compliance program. Simply put, everyone at Aflac plays a vital
role in maintaining our strong ethical culture; therefore, we ensure
that each individual has the knowledge and the tools to succeed.
Code of Business Conduct and Ethics training is mandatory for all
new employees, and annually for all of our teams across the
34 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Institute of Standards captured in the form of an impact assessment and business
and Technology Cybersecurity Frameworks (NIST CSF). Policies continuity plans are developed to support proper response to
are reviewed and approved annually to ensure the organization is disruptive events. Impact assessments and business continuity
up to date with changing cybersecurity and privacy regulations, as plans are updated annually, at minimum.
well as any changes to technology and industry best practices.
35 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ns, portal stories, contests, panels and
educational events covering a myriad of topics related to
Aflac’s all-hazard business resilience program is based on leading
cybersecurity. For Privacy Awareness Week and National
practices and industry standards, primarily ISO22301. The
Cybersecurity Awareness Month, we hosted events attracting
program implements controls and measures to prepare the
participation from over 2,150 individuals.
Organization to manage disruptive events. It is a company-wide
36 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"rocess; as an entity that is regulated
at the federal and state levels, it’s important that
we engage with elected officials to help us keep
the Aflac promise to our policyholders.
Read more about the Political Activity Report.
“We make it a priority to be
transparent in what we do and
how we operate. I think you start
with asking the question, ‘What’s
the right thing to do?’ When you
ask that question first, the other
things fall in line.”
— Brad Knox
SENIOR VICE PRESIDENT OF FEDERAL
RELATIONS
37 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"our External
Manager Platform where our investment team identifies
specialized strategies and third-party asset managers that can
meet our return objectives and diversification standards. Our
teams have a presence in global capital markets, investing in both
Japanese yen and U.S. dollar currencies in support of Aflac’s
policyholder obligations. Our global team of derivatives experts
develops and manages strategies to optimize our exposure to
global interest rates and foreign currency exposures.
38 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ts portfolio.
funded over $4.5 billion of Sustainable and DEI investments,
including an incremental $1.5 billion during 2022. These In 2022, sustainable investments increased by over
investments span multiple asset classes in Japanese yen and U.S.
$1.5B
dollars including:
• Private and public bonds and infrastructure debt supporting
renewable energy initiatives, including solar power in Japan;
• Commercial Real Estate loans in low-income, underserved and/
or economically distressed communities;
39 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"into investment and ownership decisions. As allocation. We continue to advance our reporting framework for climate
a PRI signatory, we reinforce our commitment to incorporating risks and opportunities in compliance with the TCFD standards. See
Responsible Investment factors into our investment process. Aflac Incorporated’s ESG policies and Statements and 2022
TCFD Report.
To learn more about related policies and statements, please visit investors.aflac.com and click on the “Sustainability” tab.
40 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"verages Aflac’s
industry expertise and network to help its portfolio companies
grow and succeed. Some of the notable investments made by
Aflac include Sharecare, a health and wellness company; Pagaya,
a fintech company that uses AI-driven credit analysis; Mental
Health Technologies, a Japan based company engaged in mental
health solutions; and ExaWizards, also a Japan-based company
providing AI planning, designing and development services for
industrial innovation and social problems solutions.
41 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"our greenhouse gas emissions, ensure efficient use of resources,
and help our employees be good stewards of our
natural surroundings.
Aflac SmartGreen Philosophy: Wisely choose, use and dispose
of the resources we use each day and focus these actions in
five categories:
Business Waste
operations management
Facilities Strategic sourcing
management and procurement
Employee
engagement
Aflac’s Paul S. Amos campus has a tranquil
duck pond where employees and visitors
can watch live ducks in action.
42 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"8 metric tons
COe. This is a 95% reduction from base year emissions.
2
43 2022 BUSINESS & SUSTAINABILITY REPORT
E0C
snoT
cirteM
2
Aflac invests in smart environmental solutions
that contribute to a sustainable future. This is a
solar array at the Paul S. Amos campus which
was installed in 2022. The Company is in the
process of significantly expanding the solar
array in 2023 at the same location.
7,683 3,200 4,050 2,093 2,038
¢ Scope 2 Market Based (metric tons CO2e)
¢ Scope 1 (metric tons CO2e)
— 2030 75% Reduction GoalABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"and
Efficiency
Waste Prevention and
In addition to increasing our renewable energy use, Aflac is
Reduction
committed to conserving energy and increasing energy efficiency.
As of 2022, we have Leadership in Energy and Environmental
Aflac Inc. diverted more than 984 metric tons of mixed paper,
Design (LEED) Gold-certified buildings in the U.S. and Japan.
metals, plastic, and electronics from the landfill and incineration in
2021. The percentage of waste used and recycled increased to
89% in 2021.
44 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"to employment and job
support for people with disabilities.
1 A subsidiary of Aflac Japan that promotes the hiring of employees
with disabilities.
Supplier Engagement
We believe it is important to seek feedback from stakeholders in
the communities in which we operate. In 2022, Aflac sent out
surveys to our suppliers in the U.S. and Japan to better
understand suppliers’ climate-related initiatives. Supplier
engagement will help influence supplier behaviors and support
our net zero emission goal.
45 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Financed
generate emissions. Emissions methodology
Total 216,752
The above table includes all Scope 3 categories where the company had emissions and excludes categories where the company had
zero emissions. Categories with zero emissions are upstream transportation and distribution (Category 4), processing of sold products
(Category 10), use of sold products (Category 11), end-of-life treatment of sold products (Category 12), downstream leased assets
(Category 13) and franchises (Category 14).
46 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"the company had emissions and excludes categories where the company had
zero emissions. Categories with zero emissions are upstream transportation and distribution (Category 4), processing of sold products
(Category 10), use of sold products (Category 11), end-of-life treatment of sold products (Category 12), downstream leased assets
(Category 13) and franchises (Category 14).
46 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Workforce"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"nally and personally.
• Annual biometric screenings that enable employees to track
their health progress and find areas for continual improvement.
• Offering preventive screenings to identify and monitor health
conditions such as cancers.
• Walking trails that are available on multiple campuses for
employees to use to take a breath of fresh air and re-energize.
• Healthy activities and challenges that are incentivizing our
employees to be more physically active.
• Two on-site childcare centers.
47 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"atest assets — its
work environment.
employees. EAW is held the first week of May in the U.S. following
the celebration of Founders Week and each November in Japan
Aflac Japan offers an on-site to coincide with Aflac Japan’s anniversary. Every day of Employee
childcare center and Appreciation Week is designed to show employees how much
provides support for different
Aflac appreciates them.
parenting stages: prenatal,
childbirth/child care leave,
and balancing work and
parental responsibilities.
48 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ealize “an environment in
which diverse human capital can work autonomously, utilize and
maximize their strengths, and form their own careers.”
TEACH mentors are leaders across the organization who
volunteer for a six-month program to mentor employees. Mentors
and mentees are “matched” for the program based on career
alignment and development focus. The program offers organized
activities and encourages the pairs to build a working relationship
that goes beyond the length of the formal program.
49 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"nd initiatives on its intranet.
monitor and improve Aflac Work SMART implementation across
Aflac Japan understands the value of in-person and remote work, the company.
and has established “Principles for Working with Corona” (i.e.,
working in the COVID-19 environment) to achieve a hybrid work
style that best balances the benefits of on-site and remote work.
The Aflac Work SMART acronym stands for:
S M A R T
See the Big Maintain Act with Respect Think
Picture Focus Initiative Dialogue Time Value
50 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"value of in-person and remote work, the company.
and has established “Principles for Working with Corona” (i.e.,
working in the COVID-19 environment) to achieve a hybrid work
style that best balances the benefits of on-site and remote work.
The Aflac Work SMART acronym stands for:
S M A R T
See the Big Maintain Act with Respect Think
Picture Focus Initiative Dialogue Time Value
50 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Our Workforce Diversity"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Japan, we have created diversity councils
that include employees from various levels who meet regularly to
discuss activities and initiatives. The councils are designed to
create avenues in which people can communicate and appreciate
one another’s differences.
In 2022, to continue and sustain this legacy, Aflac U.S. honed our
DEI strategy to focus on four pillars of work: Awareness,
Community, Talent and Accountability.
Awareness
At Aflac, we strive to create diversity programs that continue to
foster a respectful, inclusive and diverse workforce. The Aflac"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"tunities that support our DEI initiatives and
help us extend this vision externally into the community and with
our customers. In 2022, these councils produced or hosted over
14 workshops/events with 1,700+ participants focusing on diversity
and inclusion. For our independent sales agents, we also
launched our first Field Diversity Council to better engage our
field agents in diversity dialogue. In 2022, we expanded our
DEI learnings for all leadership, including ways to foster
inclusive teams.
51 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"any values and brand through a surge in social
action initiatives. In 2021, we launched a global investments At the highest levels of Aflac’s
strategy that supports minority partners and identifies investments
leadership and throughout our
that drive DEI and support social justice. In 2022, our GI teams
organization, we are committed to
sourced over $1.7 billion in Sustainability and DEI Investments.
fostering a diverse and inclusive
Last year, more than 50% of our corporate donations addressed
workforce, just as we have for"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"over 50% of our total
donations approved impact and address disparities in diverse
communities including people of color, veterans, and lower-
income populations.
We increased our support for our employees in the LGBTQ+
community with our first corporate participation in the Atlanta
PRIDE parade. We proudly encouraged celebration and reflection
with our first companywide Juneteenth holiday. In 2022, we
expanded our DEI learnings for all leadership, which included
ways to foster inclusive teams.
52 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"r, veterans, and lower-
income populations.
We increased our support for our employees in the LGBTQ+
community with our first corporate participation in the Atlanta
PRIDE parade. We proudly encouraged celebration and reflection
with our first companywide Juneteenth holiday. In 2022, we
expanded our DEI learnings for all leadership, which included
ways to foster inclusive teams.
52 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Talent Our workforce represents the"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"rship Development our diversity promotion efforts, for example, by increasing the
Program, Aflac targets female manager-and-above-level leaders number of women in leadership positions.
across the CFO organizations to participate in up to three
At Aflac, our commitment goes beyond talking about diversity to
rotations for about two years across key business lines globally
actions that foster equity and inclusion. It is reflected in the
to gain a broad knowledge of the organization through on-the-
makeup of our workforce, the equity of our pay policies and the"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ve, Still, we believe we are on the right path.
in 2021 Aflac committed to employee (leadership) diversity goals
with accountability. Our aspiration is to increase the overall
diversity of our senior management* population by 5% by 2026. In
2022, we inched closer to our goal with an increase of 4%. We
met our 2022 goal to increase overall diversity in senior
management by 2%.
At the highest levels of Aflac’s leadership and throughout our
organization, we are committed to fostering a diverse and
inclusive workforce, just as we have for decades. Fostering"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"goal to increase overall diversity in senior
management by 2%.
At the highest levels of Aflac’s leadership and throughout our
organization, we are committed to fostering a diverse and
inclusive workforce, just as we have for decades. Fostering
diversity isn’t only the right approach to take; it also makes good
business sense. In order to accomplish our goals and serve the
communities where we have a presence, we must surround
ourselves with people who bring different perspectives to
the table.
53 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"manager or general manager
positions by 2025.
Aflac U.S. EMPLOYEES WHO WOMEN IN SENIOR MANAGEMENT
ARE WOMEN LEADERSHIP ROLES WHO ARE WOMEN
Aflac U.S.’s goal is to increase
66% 50% 31%
diversity within senior
management by 5% by 2026.
EMPLOYEES PEOPLE OF COLOR IN SENIOR MANAGEMENT WHO
WHO ARE PEOPLE LEADERSHIP ROLES ARE PEOPLE
OF COLOR OF COLOR
49% 30% 29%
Board of WOMEN
AND PEOPLE
Directors
OF COLOR
64%
*General manager or manager positions at Aflac Life Insurance Japan, not other subsidiaries.
54 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"tives based on the concept of ""total rewards"" to
report for Aflac U.S. available here.
motivate employees to take on challenging goals and contribute
• The pay data is collected from all Aflac U.S. employees and to growth. Based on a reward system that rewards ""duties"" and
does not include global information. ""results,"" Aflac Japan offers competitive compensation in line with
• The job categories in the EEO-1 report are not reflective of major Japanese companies, which were used as a benchmark,
our workforce or compensation system. EEO-1 job groups and determines the compensation for each job based on the"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ngoing analysis
to ensure fair pay irrespective of gender, age or race/ethnicity. We
will continue to perform pay equity assessments moving forward
and close any identified gaps. Pay equity is defined as the
average pay gap between employees of different genders or
races/ethnicities in the same or similar roles after accounting for
legitimate business factors that can explain differences in pay
such as location, time at grade level, tenure, education, and
experience, among other considerations.
55 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ces in pay
such as location, time at grade level, tenure, education, and
experience, among other considerations.
55 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Japan communicates the importance of
promoting diversity to society by participating in
various events and speaking at lectures. Yoko
Kijima, Director, Executive Vice President (at the
time), giving a speech at Global Diversity
Conference 2022 in November 2022.
Developing an inclusive workforce In addition, Aflac Japan established Aflac Heartful Services Co.,"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"operators regarding the employment of persons with
specific functional areas have created development programs disabilities” (Monisu System) in November 2021. Of Aflac Heartful
designed to build the pipeline of female leadership deeper into Services’ 154 employees as of December 31, 2022, 123 have
the organization. disability certificates and five have experienced pediatric cancer.
Aflac Heartful Services respects the individuality of its diverse
employees and supports their long-term careers.
56 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ater than 80% today. This worthwhile cause is very near and U.S. News and World Report.
dear to the hearts of the Aflac family, including the Aflac Foundation,
Aflac’s commitment is not only positively impacting kids with
Inc., the Aflac Childhood Cancer Foundation, Inc., our executives, our
childhood cancer but also those with rare blood disorders, including
employees and the sales force, whose generous contributions help to
sickle cell disease—a disease that is not widely known or understood.
57 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ipated in NYSE’s 99th Annual Tree Lighting.
Aflac Braves Night
Aflac's annual Atlanta Braves night is a tradition where Aflac
Cancer and Blood Disorders Center patients, families and staff
come together for a welcome break and to cheer on the World
Series Champions. After a brief hiatus due to the pandemic Aflac
Incorporated President and Chief Operating Officer Fred Crawford
was thrilled to host the 25th annual Braves Night, which included
face painting, ping pong, cornhole, coloring and more.
58 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"s coping delivered directly to them through Aflac’s partner and My Special
mechanisms anytime, anywhere, for anyone. Aflac Duck creator, Sproutel. In fact, in 2022, we were able to ship
139 to the homes of children facing cancer and sickle cell disease,
Each year, more than 15,000 children are diagnosed with cancer
through the new Direct To Family program.
in the United States. Aflac’s goal is to gift each child with cancer or
a blood disorder such as sickle cell in the United States, age three
59 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"tals and
facilities in 2022.
Delivering My Special Aflac Duck with Coach Prime: In October
2022, Aflac and then Jackson State University (JSU) Head Coach
Deion “Prime” Sanders delivered My Special Aflac Ducks to
patients at Children’s of Mississippi Hospital ahead of JSU
homecoming. Following remarks to the media, Coach Prime and
President of Aflac U.S., Virgil Miller, spent time with children
undergoing treatment in the Cancer and Blood Disorder Unit and
distributed the My Special Aflac Ducks.
60 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"people.
Many executives, employees, group companies, and sales
agents support the operation of Parents House by donating
hygiene products and daily necessities, as well as remote
volunteer activities so that children and their families can stay
in the building with peace of mind even as concerns over
COVID-19 infection continue.
In 2022, employee volunteers resumed activities for the first time
in three years, and many employees participated while taking
thorough infection prevention measures.
61 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"sts,
based on ethnic background, when it pertains to finding a
matching donor for lifesaving blood stem cell or marrow
transplants. Together, Aflac and Be The Match will conduct an
ongoing digital registration drive aimed at adding Aflac employees
and sales agents to the national registry of volunteer blood stem
cell and marrow donors. Together, the two companies worked
alongside NBA player Marcus Smart, who lost his brother and
mother to blood cancer, to shine a light on health care inequities
62 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"onnection to
blood cancers: white for survivorship, yellow in memory of those
Provides a place where people who have experienced cancer, lost, and red to support ending blood cancers.
their families and friends can relax just by visiting there and regain
their strength through nursing and psychological support.
Gen-chan House
Located in Kanazawa City, Ishikawa Prefecture, a place where
people with cancer and their families can connect with people in
the same situation and medical professionals.
63 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"that brought together
stakeholders. At the venue, Aflac Japan communicated the
importance of supporting the treatment of childhood cancer and
raised funds to raise awareness of childhood cancer.
The Gold Ribbon Walking
Approximately 1,700 people, including employees, associates,
alliance partners, children fighting childhood cancer, and their
families, participated in the Gold Ribbon Walking held in October.
On the day of the event, employee volunteers also participated in
the walking activity.
64 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"last year's professional draft came from an HBCU. burden of cardiovascular disease in Harlan County by increasing
residents’ access to disease education and providing access to
AEDs (automated external defibrillators). Aflac and ARH
commemorated the initiative's first grant with a check presentation
and ribbon-cutting for the Aflac Park Bench just around the corner
from the hospital at Dressen Park, and were joined by regional
Aflac staff, hospital employees and members of the local
community.
65 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"this weren’t enough, John had a fall a year ago that forced the testing and biopsies for underserved individuals who are not
Shadock family to seek round-the-clock care and lean even more covered under their insurance or do not have insurance.
on family’s and friends’ support. Their motto is “strong all along''
and the $5,000 support they received from Aflac was extremely
useful in keeping the family on their feet so that the Shadocks
could continually focus on John’s care, not their finances.
66 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"s being a part of a company dedicated to
making a difference in the communities where we live and work. Habitat for Humanity has been a part of Aflac’s mission of giving back for
more than 16 years and is a testament not only to our company’s commitment, but also to our employees, who again have shown us the
true meaning of teamwork. This home could not have been built in six weeks without the hard work and commitment of more than 200
Aflac employees and the fantastic Habitat for Humanity crew.
67 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"and Aflac Japan — 2022 Aflac Japan Financial Highlights, pages 9-10; Aflac U.S. Products,
pages 21-22
2022 Form 10-K: Item 1. Business — Aflac Japan — Distribution Channels, pages 4-5; Aflac U.S. — Distribution
Channels, pages 6-7
2-7 Employees About Aflac U.S. and Aflac Japan — Leading Provider of High-Quality, Supplemental Insurance, page 7
2022 Form 10-K: Item 1. Business — Human Capital, pages 10-12
2022 CPD Report
2-8 Workers who are not employees Aflac does not disclose this information.
68 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"eport
2-14 Role of the highest governance body in Governance — Aflac Incorporated Global Governance & ESG — Board Oversight of ESG, page 34
sustainability reporting 2022 Proxy Statement: Corporate Governance Matters — Our Board and Committees — Committee Structure, pages 24-27;
Board Responsibilities — Commitment to Corporate Social Responsibility and Sustainability, page 30
2022 CPD Report
2-15 Conflicts of interest 2022 Proxy Statement: Audit Matters — Related Person Transactions, pages 72-73
69 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Incorporated Global Governance & ESG — Board Oversight of ESG, page 34
2022 Proxy Statement: Corporate Governance Matters — Board Responsibilities — Governance Documents —
Code of Business Conduct and Ethics, page 32
2-24 Embedding policy commitments ESG Policies and Statements
Code of Conduct
Supplier Code of Conduct
Governance — Aflac Incorporated Global Governance & ESG — Ethics and Compliance, pages 34-35
2-25 Processes to remediate Aflac does not disclose this information.
negative impacts
70 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"G — Ethics and Compliance, pages 34-35
Code of Conduct
Supplier Code of Conduct
ESG Policies and Statements
ESG Highlights, pages 28-31; Governance — Aflac Incorporated Global Governance & ESG — Ethics and Compliance, pages
34-35; Protecting Our Customers and Data with Cybersecurity — Security Awareness and Training, pages 37-38
Environment — Scope 1, Scope 2, Scope 3 GHG Emissions, page 48
ESG Highlights, pages 28-31; Environment — Greenhous Gas Reduction Goals, page 45; Social — Human Capital
Management — Our Workforce Diversity — Accountability, page 56; Our workforce represents the communities we"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Protecting Our Customers and Data with Cybersecurity — Security Awareness and Training, pages 37-38
Environment — Scope 1, Scope 2, Scope 3 GHG Emissions, page 48
ESG Highlights, pages 28-31; Environment — Greenhous Gas Reduction Goals, page 45; Social — Human Capital
Management — Our Workforce Diversity — Accountability, page 56; Our workforce represents the communities we
serve, pages 56-57
ESG Highlights, pages 28-31; Environment — Progress on Greenhouse Gas Reductions, pages 45-46; Social —
Human Capital Management — Our Workforce Diversity — Accountability, page 56; Developing an inclusive workforce,"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"-73
2022 Proxy Statement: Voting Roadmap — Corporate Social Responsibility and Sustainability Highlights, page 12
2022 Sustainability Bond Report: Sustainability Bond Framework Summary, page 3; Use of Proceeds and Impact,
pages 3-4; Investment Highlights. pages 5-8
201-2 Financial implications and other risks 2022 Form 10-K: Item 1A. Risk Factors — General Risk Factors, pages 25-27
and opportunities due to 2022 CPD Report
climate change 2022 TCFD Report
Aflac does not disclose this information.
71 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"cope 2022 CPD Report 1, Scope 2, Scope 3 GHG Emissions, page 48
GHG emissions 2022 CPD Report
2022 TCFD Report
305-5 Reduction of GHG emissions Environment — Progress on Greenhouse Gas Reductions, pages 45-46
2022 TCFD Report
2022 Proxy Statement: Voting Roadmap — Corporate Social Responsibility and Sustainability Highlights —
Environment, page 12
2022 CPD Report
GRI 306: WASTE 2020
305-4 Waste diverted from disposal Environment — Waste Prevention and Reduction, page 46
GRI 401: EMPLOYMENT 2016
401-1 New employee hires and ESG Highlights — Workforce Diversity, page 31; Social — Human Capital Management — Our Workforce Diversity —"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"— Corporate Social Responsibility and Sustainability Highlights, page 12
2022 Form 10-K: Item 1. Business — Human Capital — Diversity, Equity & Inclusion, page 11
Aflac does not disclose this information.
401-2 Benefits provided to full-time 2022 Proxy Statement: Executive Compensation — Compensation Discussion and Analysis — 2021 Executive
employees that are not provided to Compensation — Other Compensation — Other Benefits, page 55
temporary or part-time employees ESG Policies and Statements
Social — Human Capital Management — Workforce: Aflac Japan — Japan Work Smart, page 54"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"tements
Social — Human Capital Management — Workforce: Aflac Japan — Japan Work Smart, page 54
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans, pages 170-174
2022 Proxy Statement: Executive Compensation — Compensation Discussion and Analysis — 2021 Executive
Compensation — Other Compensation — 401(k) Savings and Profit Sharing Plan, page 55
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"m 8. Financial Statements and Supplementary Data — 14. Benefit Plans, pages 170-174
2022 Proxy Statement: Executive Compensation — Compensation Discussion and Analysis — 2021 Executive
Compensation — Other Compensation — 401(k) Savings and Profit Sharing Plan, page 55
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53
Aflac does not disclose this information.
72 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"Compensation — Other Compensation — 401(k) Savings and Profit Sharing Plan, page 55
2022 Form 10-K: Item 8. Financial Statements and Supplementary Data — 14. Benefit Plans — Stock Bonus Plan,
page 174
401-3 Parental leave Workforce: Aflac Japan — Japan Work Smart, page 53
Aflac does not disclose this information.
72 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"& SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Disclosure Location
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-6 Promotion of worker health Workforce: Aflac U.S. — Employee Wellness and Work/Life Balance, pages 49-50; Workforce: Aflac Japan —
Employee Wellness and Work/Life Management, page 52
2022 Form 10-K: Item 1. Business — Human Capital — Health and Wellness, page 10
ESG Policies and Statements
GRI 404: TRAINING AND EDUCATION 2016
404-2 Programs for upgrading employee skills Workforce — Talent Development, page 52; Workforce — Japan Work SMART, page 53"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"—
Employee Wellness and Work/Life Management, page 52
2022 Form 10-K: Item 1. Business — Human Capital — Health and Wellness, page 10
ESG Policies and Statements
GRI 404: TRAINING AND EDUCATION 2016
404-2 Programs for upgrading employee skills Workforce — Talent Development, page 52; Workforce — Japan Work SMART, page 53
and transition assistance programs
2022 Form 10-K: Item 1. Business — Human Capital — Talent, page 10
ESG Policies and Statements
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
405-1 Diversity of governance bodies ESG Highlights — Workforce Diversity, page 31; Governance, pages 32-35; Social — Human Capital Management — Our"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"nd Statements
GRI 404: TRAINING AND EDUCATION 2016
404-2 Programs for upgrading employee skills Workforce — Talent Development, page 52; Workforce — Japan Work SMART, page 53
and transition assistance programs
2022 Form 10-K: Item 1. Business — Human Capital — Talent, page 10
ESG Policies and Statements
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
405-1 Diversity of governance bodies ESG Highlights — Workforce Diversity, page 31; Governance, pages 32-35; Social — Human Capital Management — Our
and employees Workforce Diversity — Accountability, page 56; Our workforce represents the communities we serve, pages 56-57"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"s the communities we serve, pages 56-57
2022 Form 10-K: Item 1. Business — Human Capital — Diversity, Equity & Inclusion, page 11
2022 Proxy Statement: Voting Roadmap — Director Nominees Summary, pages 8-9; Corporate Social Responsibility and
Sustainability Highlights, page 12; Corporate Governance Matters — Board Composition — Board of Director Nominees
Skills, Experience, and Diversity, page 20; Board Succession Planning and Refreshment Process — Board Changes
since 2017, page 20
EEO-1 Report
Governance, pages 32-35; Workforce — Our Workforce Diversity, Our workforce represents the communities we serve,"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"cession Planning and Refreshment Process — Board Changes
since 2017, page 20
EEO-1 Report
Governance, pages 32-35; Workforce — Our Workforce Diversity, Our workforce represents the communities we serve,
pages 56-57
2022 Proxy Statement: Voting Roadmap — Director Nominees Summary, pages 8-9; Corporate Governance Matters —
Board Composition — Board of Director Nominees Skills, Experience, and Diversity, page 20; Board Succession
Planning and Refreshment Process — Board Changes since 2017, page 20
ESG Highlights — Workforce Diversity, page 31; Workforce — Our Workforce Diversity, Our workforce represents the"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"ector Nominees Summary, pages 8-9; Corporate Governance Matters —
Board Composition — Board of Director Nominees Skills, Experience, and Diversity, page 20; Board Succession
Planning and Refreshment Process — Board Changes since 2017, page 20
ESG Highlights — Workforce Diversity, page 31; Workforce — Our Workforce Diversity, Our workforce represents the
communities we serve, pages 56-57
2022 Proxy Statement: Voting Roadmap — Corporate Social Responsibility and Sustainability Highlights, page 12
405-2 Ratio of basic salary and remuneration Workforce — Our Workforce Diversity, Our workforce represents the communities we serve, pages 56-57"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"serve, pages 56-57
of women to men
GRI 415: PUBLIC POLICY 2016
415-1 Political contributions 2022 Aflac Political Activity Report
GRI 417: MARKETING AND LABELING 2016
417-3 Incidents of non-compliance None
concerning marketing communications
About the Business — Aflac U.S. Marketing Strategy, page 19
GRI 418: CUSTOMER PRIVACY 2016
418-1 Substantiated complaints concerning None
breaches of customer privacy and
Protecting Our Customers and Data with Cybersecurity, page 36
losses of customer data
73 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"inability Bond Framework, pages 11-16
Aflac Incorporated ESG Policies and
Statements: Aflac Incorporated Responsible
Investment Policy
Policies Designed to Net premiums written related to energy Quantitative Reporting FN-IN-410b.1 N/A
Incentivize Responsible efficiency and low carbon technology currency
Behavior Discussion of products and/or product Discussion n/a FN-IN-410b.2 N/A
features that incentivize health, safety, and Analysis
and/ or environmentally responsible
actions and/or behaviors
74 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"rting FN-IN-550a.2 N/A
collateral assets currency
Description of approach to managing Discussion n/a FN-IN-550a.3 N/A
capital and liquidity-related risks and Analysis
associated with systemic non-insurance
activities
Table 2. Activity Metrics
Unit of
Activity Metric Category Measure Code Response or Location
Number of policies in force, by segment: (1) property and casualty, Quantitative Number FN-IN-000.A Financial Highlights — Key Operational
(2) life, (3) assumed reinsurance Metrics, page 27
75 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"mate-related Risks and Opportunities — Climate-related
Risks and Opportunities, page 5; Business and Strategy Impact, page 6;
Products and Services, pages 6-7; Financial Planning Impact, pages 7-8;
Strategy Resilience, page 8
2022 CDP Report: C2. Risks and opportunities — C2.3a
c. Describe the resilience of the organization’s 2022 CDP Report: C3. Business Strategy — C3.1, C3.2, C3.3, C3.4
strategy, taking into consideration different
climate-related scenarios, including a 2°C or
lower scenario.
76 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"6.3, C6.5,
c. Describe the targets used by the organization to Environment — Greenhouse Gas Reduction Goals, page 45; Progress on
manage climate-related risks and opportunities Greenhouse Gas Reductions, page 45; Scope 1, Scope 2, Scope 3 GHG
and performance against targets. Emissions, page 48
2022 Task Force on Climate-related Financial Disclosures Report: Climate-
related Metrics and Targets — Targets, pages 15-16
2022 CDP Report: C4. Targets and performance — C4.1a, C4.2, C4.2a, C4.2b,
C4.2c
77 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated-2022-business-and-sustainability-report-3-16-23-2.txt,"J.Pete Kelso Tohru Futami Koichiro Yoshizumi
Executive Vice President and Global Director, Executive Vice President Executive Vice President, Director of Sales
Chief Information Officer Chief Transformation Officer and Marketing, Alliance Strategy
Aflac Incorporated Chief Digital Information Officer Aflac Life Insurance Japan
Aflac Life Insurance Japan
Shinsuke Morimoto
Director, Executive Vice President;
Corporate Division, Human Capital
Management, General Affairs, Aflac Life
Insurance Japan
78 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX"
aflac-incorporated_tcfd-2024-report_08122024.txt,". EPA
trips per state to reach an average. For states
eGRID 2021 (released January 2024) were used
with no relevant trips, the total mileage was
for US teleworking.
divided by the total number of trips, and that
Category 7 –
total average was used. Commuting
Employee Japan: Database on Emissions Intensities for
method was estimated based on the 2022
Commuting Calculating Greenhouse Gas Emissions, etc.
Bureau of Transportation Statistics data. For
through a Supply Chain Ver. 3.3 (Ministry of the
teleworking, worker designations were"
aflac-incorporated_tcfd-2024-report_08122024.txt,"ess toward
achievement of the Company’s goals. This committee is charged with monitoring and
reviewing the Company’s policies, procedures and practices to foster the sustainable
growth of the Company on a global basis, including climate change. The CSR&S
Committee also oversees all climate matters and supports the company’s SmartGreen®
goals and philosophy to wisely choose, use and dispose of the resources we use each
day and focus on five categories: business operations, strategic sourcing and
procurement, facilities management, waste management, and employee management."
aflac-incorporated_tcfd-2024-report_08122024.txt,"and distribution of Yes 3,039
Activities
purchased electricity.
These are emissions generated
4. Upstream Transportation and
through transportation and Yes 7,038
Distribution
distribution of purchased products.
These are emissions generated
through the disposal and treatment
5. Waste Generated in Operations Yes 208
of waste generated in on-site
operations.
These are emissions generated
6. Business Travel from traveling for business-related Yes 11,069
activities.
The Company generates emissions
7. Employee Commuting through staff commuting and from Yes 4,336"
aflac-incorporated_tcfd-2024-report_08122024.txt,"d) 1,856 5,705 7,562
Total Scope 1 and 2 (market-based) Emissions 6 3,494 3,499
Retired Carbon Offsets 6 3,494 3,499
Scope 3 Emissions (Metric Tons CO e)
2
Category 1 – Purchased Goods and Services 99,140 71,425 170,565
Category 2 – Capital Goods 6,101 611 6,712
Category 3 – Fuel-and -Energy-Related Activities 1 3,038 3,039
Category 4 – Upstream Transportation and Distribution 5,744 1,295 7,038
Category 5 – Waste Generated in Operations 25 184 208
Category 6 – Business Travel 5,894 5,175 11,069
Category 7 – Employee Commuting 813 3,522 4,336"
aflac-incorporated_tcfd-2024-report_08122024.txt,"tor vehicles and aircraft,
sustainable aviation fuel from aircraft, and refrigerant loss from buildings. Scope 2 GHG emissions
represent emissions from purchased electricity consumed by the Company, including applied
renewable energy credits (RECs) with zero emission factors. Scope 3 GHG emissions represent
emissions that occur from purchased goods and services (excluding agent commission-related
cost), capital goods, fuel-and energy related activities, upstream transportation and distribution,
waste generated in operations, business travel, employee commuting, and upstream leased"
aflac-incorporated_tcfd-2024-report_08122024.txt,"assifications specified in
the Waste Disposal and Public Cleaning Law
and other waste-related laws and regulations.
8Aflac U.S.: The air travel emissions are based
on vendor provided mileage. Hotel emissions
are vendor provided and nights stayed.
US: The commercial air travel is calculated based Rental car CO2 emissions are directly
on the Greenhouse Gas Protocol and US provided by Avis Budget Group, Enterprise
Environmental Protection Agency Emission Mobility, and Hertz. Reimbursed mileage for
Factors for Greenhouse Gas Inventories business use of employee cars was obtained"
aflac-incorporated_tcfd-2024-report_08122024.txt,"ste-related laws and regulations.
8Aflac U.S.: The air travel emissions are based
on vendor provided mileage. Hotel emissions
are vendor provided and nights stayed.
US: The commercial air travel is calculated based Rental car CO2 emissions are directly
on the Greenhouse Gas Protocol and US provided by Avis Budget Group, Enterprise
Environmental Protection Agency Emission Mobility, and Hertz. Reimbursed mileage for
Factors for Greenhouse Gas Inventories business use of employee cars was obtained
(February 13, 2024) Table 10. from employee expense reimbursements"
aflac-incorporated_tcfd-2024-report_08122024.txt,"tz. Reimbursed mileage for
Factors for Greenhouse Gas Inventories business use of employee cars was obtained
(February 13, 2024) Table 10. from employee expense reimbursements
US Environmental Protection Agency from the accounting system. Data is based
Emission Factors for Greenhouse Gas on the date the trip was taken. The
Inventories (February 13, 2024) Tables 2 & 3 percentage of emissions calculated using
were used for rental cars. Table 10 was used data obtained from suppliers or other value
for business use of employee vehicle chain partners is 94.2%."
aflac-incorporated_tcfd-2024-report_08122024.txt,"of Japan) nights stayed in the hotel. Air travel, train
rides, leased & rental cars, bus & ferry rides,
hired cars, and lodging data are extracted
from Concur, the platform used by Aflac
Japan for expense reimbursement.
Aflac U.S. includes commuting emissions
from all employees, including home office
emissions for employees who telework. An
average-based method is used to determine
commuting methods the mileage was
calculated based on the badge swipe count
all over the year and the and distance
travelled.by each employee."
aflac-incorporated_tcfd-2024-report_08122024.txt,"g distance was calculated using
Emission Factors for Greenhouse Gas
mapping software. The total was then added
Inventories (February 13, 2024) were used for US
up per state and divided by the number of
commuting (assumed to be Passenger Car). EPA
trips per state to reach an average. For states
eGRID 2021 (released January 2024) were used
with no relevant trips, the total mileage was
for US teleworking.
divided by the total number of trips, and that
Category 7 –
total average was used. Commuting
Employee Japan: Database on Emissions Intensities for"
aflac-incorporated_tcfd-2024-report_08122024.txt,"2021 (released January 2024) were used
with no relevant trips, the total mileage was
for US teleworking.
divided by the total number of trips, and that
Category 7 –
total average was used. Commuting
Employee Japan: Database on Emissions Intensities for
method was estimated based on the 2022
Commuting Calculating Greenhouse Gas Emissions, etc.
Bureau of Transportation Statistics data. For
through a Supply Chain Ver. 3.3 (Ministry of the
teleworking, worker designations were
Environment of Japan)
extracted from the employee list from SAP."
aflac-incorporated_tcfd-2024-report_08122024.txt,"Fifth Assessment Report
Vendors provided emissions. UPS
use of AR5 in their emissions
Scope 3 Category 4 – Upstream
IPCC Fourth Assessment Report calculations is documented. It is
Transportation and Distribution
likely that the other vendors use
AR5 since AR5 is now generally
accepted
Scope 3 Category 5 – Waste IPCC Fifth Assessment Report
IPCC Fifth Assessment Report
- other than lodging
Scope 3 Category 6 – Business Travel IPCC Fifth Assessment Report -
IPCC Fourth Assessment Report
- lodging
Scope 3 Category 7 – Employee"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ustainability Program.
• Expanding and diversifying our carbon credit purchases,
including increasing purchases from nature-based emissions removal projects.
• Launching pilot programs across the UK, France, and the United States to help our Hosts
make their homes more energy efficient.
Additional information regarding our work to make our company and community more sustainable is
included below.
1. Unless stated otherwise, references to Airbnb’s Scope 2), 3.5 Waste generated in operations, 3.6
“emissions” means Airbnb’s corporate, absolute Business travel, 3.7 Employee commuting, and"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"electricity locally in certain markets
consumption associated with the offices that
due to lack of availability and low volumes. In
are considered upstream leased assets (Scope
these instances, the energy attribute certifi-
3, Category 8) even though these purchases
cates were procured from reasonably compara-
are not able to be reflected as Scope 3 emis-
ble and geographically near markets outside of
sions reductions under current GHG Protocol
the RE100 guidance on market boundaries.
guidance.
5. We are addressing employee work-from-home"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"sing ingredients. To reduce emissions and support our local
communities, the team aims to purchase food primarily from local vendors located within a
100-mile radius of offices.
We strive to avoid sending waste to landfills. In addition to our food composting efforts and our
recycling programs at all offices directly operated by Airbnb, we seek to donate to nonprofits or
allow employees to take home items no longer needed by the company, such as kitchen supplies
and IT equipment, when possible.
Employee Business Travel and Commuting"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"nd support our local
communities, the team aims to purchase food primarily from local vendors located within a
100-mile radius of offices.
We strive to avoid sending waste to landfills. In addition to our food composting efforts and our
recycling programs at all offices directly operated by Airbnb, we seek to donate to nonprofits or
allow employees to take home items no longer needed by the company, such as kitchen supplies
and IT equipment, when possible.
Employee Business Travel and Commuting
With many employees now choosing to work from home, emissions from employee commut-"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"es directly operated by Airbnb, we seek to donate to nonprofits or
allow employees to take home items no longer needed by the company, such as kitchen supplies
and IT equipment, when possible.
Employee Business Travel and Commuting
With many employees now choosing to work from home, emissions from employee commut-
ing have significantly decreased from pre-pandemic levels. Additionally, we have evolved our
business travel policies and purchased nature-based emissions removal credits to cover 100
percent of our 2022 employee business travel emissions. We intend to take this step again for all"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ems no longer needed by the company, such as kitchen supplies
and IT equipment, when possible.
Employee Business Travel and Commuting
With many employees now choosing to work from home, emissions from employee commut-
ing have significantly decreased from pre-pandemic levels. Additionally, we have evolved our
business travel policies and purchased nature-based emissions removal credits to cover 100
percent of our 2022 employee business travel emissions. We intend to take this step again for all
employee business travel in 2023."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"es other than carbon dioxide. Some of
these gases are hundreds of times more damaging than carbon dioxide and, unlike carbon
dioxide, cannot at scale be absorbed naturally or removed from the atmosphere with capture
technology.
• Continued our participation in the LEAF Coalition, helping to accelerate funding of efforts to
address tropical deforestation in sub-Saharan Africa through high-quality carbon credits.
• Purchased enough nature-based emissions removal credits to account for all of 2022
employee business travel."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"lated as revenue minus cost of
50% higher than 2021 due to changes of report-
revenue as reported in Airbnb’s Annual Report
ing boundary and measurement methods.
on Form 10-K.
11. Scope 3 emissions intensity measured using
the economic intensity method as set by SBTi’s
Greenhouse Gas Emissions per Value Added
(GEVA). SBTi provides that the term “value
added” can be defined as gross profit, operat-
ing profit, revenue minus the cost of purchased
goods and services, or earnings before interest,
7
taxes, depreciation, and amortization (EBITDA)Some Scope 3 emissions categories, such as employee business travel, are expected to"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"s footprint.
• Integrating more primary data into our emissions measurement, including utility data and
onsite electricity generation (Scope 2) and supplier-specific emissions data (Scope 3,
Category 1). In future years, we plan to incorporate even more primary data into our emis-
sions measurement given efforts currently underway to implement a utility usage data
tracking system to centralize this data.
• Updating our methodology to reflect changes of our working models over time. For example,
to account for the shift from office-based to remote work in 2020, we added employee work"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"s
Scope 3 MTCO2e/$1M in 84 53 47†
Emissions Intensity gross profit
†We engaged PricewaterhouseCoopers LLP (PwC) to provide limited assurance over this metric. Their
report is available in Appendix B.
12. Airbnb’s Scope 3 emissions measurement only 13. See Footnote 12.
includes the following categories defined by
the GHG Protocol: 3.1 Purchased goods and
services, 3.2 Capital goods, 3.3 Fuel- and ener-
gy-related activities (not included in Scope 1 or
Scope 2), 3.5 Waste generated in operations,
3.6 Business travel, 3.7 Employee commuting,"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"or
Other Pacific
Islander
Tech18
80%
59.5%
60%
40% 28.3%
20%
7.9%
10%
3.1% 2.4% 1.9% 2.9%
** 0.3%
0%
Asian and White Hispanic or Black or African Native American Two or more Two or more Decline to state
Asian-American Latinx American Hawaiian or Indian or races (URM) races
Other Pacific Alaska Native (non-URM)
Islander
16. Race and ethnicity data is self-reported by population of Airbnb employees who identify
employees, and Airbnb seeks to honor our as underrepresented minorities, however, each
employees’ self-identification. As such, employ- employee is counted only once."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"c or Black or African Native American Two or more Two or more Decline to state
Asian-American Latinx American Hawaiian or Indian or races (URM) races
Other Pacific Alaska Native (non-URM)
Islander
16. Race and ethnicity data is self-reported by population of Airbnb employees who identify
employees, and Airbnb seeks to honor our as underrepresented minorities, however, each
employees’ self-identification. As such, employ- employee is counted only once.
ees who select more than one race/ethnicity
17. ** In categories that have at least one employee"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"races
Other Pacific Alaska Native (non-URM)
Islander
16. Race and ethnicity data is self-reported by population of Airbnb employees who identify
employees, and Airbnb seeks to honor our as underrepresented minorities, however, each
employees’ self-identification. As such, employ- employee is counted only once.
ees who select more than one race/ethnicity
17. ** In categories that have at least one employee
category are counted in each category they
but are still representatively small, data has
select. For example, if an employee selects"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"entify
employees, and Airbnb seeks to honor our as underrepresented minorities, however, each
employees’ self-identification. As such, employ- employee is counted only once.
ees who select more than one race/ethnicity
17. ** In categories that have at least one employee
category are counted in each category they
but are still representatively small, data has
select. For example, if an employee selects
been redacted to protect individual privacy.
both “Black” and “Hispanic,” they are included in
both categories. As a result, the total repre- 18. ** In categories that have at least one employee"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"itable and inclusive
culture at Airbnb, including:
• Conducting annual pay equity analyses.
• Sharing base pay ranges with all employees to maintain a culture of trust and accountability,
and sharing base pay hiring ranges on US job postings.
• Providing learning programs geared toward blocking bias and furthering allyship.
• Offering over a dozen programs to further the growth and development of our diverse
employees—from centralized sponsorship, mentorship and coaching programs to highly-tai-
lored employee-centric programs."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"irbnb, including:
• Conducting annual pay equity analyses.
• Sharing base pay ranges with all employees to maintain a culture of trust and accountability,
and sharing base pay hiring ranges on US job postings.
• Providing learning programs geared toward blocking bias and furthering allyship.
• Offering over a dozen programs to further the growth and development of our diverse
employees—from centralized sponsorship, mentorship and coaching programs to highly-tai-
lored employee-centric programs.
• Supporting 17 employee resource groups (ERGs), or “Airfinity” groups, that foster a sense of"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"belonging at work. Each group is sponsored by at least one senior member of
our leadership team, including executive team members.
• Supporting non-traditional career paths through our engineering apprenticeship program,
Connect, to provide people from non-traditional technical backgrounds with an entry point to
an engineering career at Airbnb. In 2021 and 2022, 100 percent of participants became full-
time Airbnb employees.
Additional details on these programs are available here.
People Forum
In 2022, we launched a new People Forum, hosted quarterly, where our Head of Global Employee"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ngineering apprenticeship program,
Connect, to provide people from non-traditional technical backgrounds with an entry point to
an engineering career at Airbnb. In 2021 and 2022, 100 percent of participants became full-
time Airbnb employees.
Additional details on these programs are available here.
People Forum
In 2022, we launched a new People Forum, hosted quarterly, where our Head of Global Employee
Experience and Head of Diversity and Belonging answer questions and provide updates to Airbnb
employees regarding employee experiences, our people practices, and our evolving people data."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ecame full-
time Airbnb employees.
Additional details on these programs are available here.
People Forum
In 2022, we launched a new People Forum, hosted quarterly, where our Head of Global Employee
Experience and Head of Diversity and Belonging answer questions and provide updates to Airbnb
employees regarding employee experiences, our people practices, and our evolving people data.
Executive Oversight
Our diversity, inclusion, equity and belonging programs are led by Airbnb’s Head of Diversity
and Belonging, who reports to our Head of Global Employee Experience, a member of the exec-"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"to Live and Work Anywhere, a program designed
to combine the best of the digital world with the meaningful connection and collaboration that
happens when people are in the same room.
As we continue to grow, we want to hire and retain the best people in the world and the best peo-
ple live everywhere, not concentrated in one area. Our Live and Work Anywhere program unlocks
a more diverse set of communities to recruit from, providing the opportunity for us to become an
even more diverse company.
Employee Engagement"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ywhere, a program designed
to combine the best of the digital world with the meaningful connection and collaboration that
happens when people are in the same room.
As we continue to grow, we want to hire and retain the best people in the world and the best peo-
ple live everywhere, not concentrated in one area. Our Live and Work Anywhere program unlocks
a more diverse set of communities to recruit from, providing the opportunity for us to become an
even more diverse company.
Employee Engagement
As part of our commitment to employee engagement, we survey all employees at least annually."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ction and collaboration that
happens when people are in the same room.
As we continue to grow, we want to hire and retain the best people in the world and the best peo-
ple live everywhere, not concentrated in one area. Our Live and Work Anywhere program unlocks
a more diverse set of communities to recruit from, providing the opportunity for us to become an
even more diverse company.
Employee Engagement
As part of our commitment to employee engagement, we survey all employees at least annually.
In 2022, our employee engagement survey covered areas including belonging, values alignment,"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ot concentrated in one area. Our Live and Work Anywhere program unlocks
a more diverse set of communities to recruit from, providing the opportunity for us to become an
even more diverse company.
Employee Engagement
As part of our commitment to employee engagement, we survey all employees at least annually.
In 2022, our employee engagement survey covered areas including belonging, values alignment,
diversity, inclusion, opportunity, intent to stay at Airbnb, community, growth, and impact, among
others. Surveys are one of the critical ways we listen and gather employee feedback, and we"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"nment where employ-
ees feel empowered to innovate, collaborate, and deepen their expertise. We also know that
being able to take care of oneself and one’s loved ones is key to doing one’s best work—however
one’s life is shaped. We provide the following to our eligible employees:19
Compensation • Competitive base compensation, the
opportunity to participate in applicable annual
bonus or incentive plans, and equity awards to
eligible full-time employees.
• Single pay tiers per country—meaning an
employee can move anywhere in-country and"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"s best work—however
one’s life is shaped. We provide the following to our eligible employees:19
Compensation • Competitive base compensation, the
opportunity to participate in applicable annual
bonus or incentive plans, and equity awards to
eligible full-time employees.
• Single pay tiers per country—meaning an
employee can move anywhere in-country and
their gross compensation will not change.
• Retirement savings plans (e.g., US 401(k)) and
access to financial planning tools, where applicable.
• Access to an employee stock purchase plan"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"bonus or incentive plans, and equity awards to
eligible full-time employees.
• Single pay tiers per country—meaning an
employee can move anywhere in-country and
their gross compensation will not change.
• Retirement savings plans (e.g., US 401(k)) and
access to financial planning tools, where applicable.
• Access to an employee stock purchase plan
(ESPP), where permissible.
Live and Work • Flexibility to work from home or the office, and to
Anywhere travel and work almost anywhere in the world.
• Quarterly Employee Travel Credit to use on Airbnb."
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"le full-time employees.
• Single pay tiers per country—meaning an
employee can move anywhere in-country and
their gross compensation will not change.
• Retirement savings plans (e.g., US 401(k)) and
access to financial planning tools, where applicable.
• Access to an employee stock purchase plan
(ESPP), where permissible.
Live and Work • Flexibility to work from home or the office, and to
Anywhere travel and work almost anywhere in the world.
• Quarterly Employee Travel Credit to use on Airbnb.
• Allowances to help support employee wellness,"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"areers website.
23Promoting an Ethical Workplace
Airbnb has a Code of Ethics that applies to all employees, officers, and directors of Airbnb, Inc.
and its subsidiaries. It articulates the principles we must practice to live up to our values and
guides our work to build a culture where everyone acts with integrity.
Our Code of Ethics also describes a resource we have developed to help Airbnb employees
navigate potential ethical dilemmas—Airbnb Ethics Advisors. These are trustworthy, responsible
employee advisors who receive specialized ethics training and can help when an employee is not"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"from a human rights perspective.
27Combating Human Trafficking & Child Sexual Exploitation
We are committed to using Airbnb’s global reach to support efforts around the world that seek to
end trafficking and exploitation.
In 2022, we announced the Trust and Safety Advisory Coalition (TSAC), a body of over twenty
expert organizations that work to advise on Airbnb’s community policies that govern the plat-
form, as well as products, Community Support workflows, educational resources for Hosts and
guests, and employee training. Our TSAC partners include organizations and law enforcement"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"f their work includes:
• Providing mandatory ethics training for all employees.
• Overseeing attestation to the Code of Ethics by all Airbnb employees, officers, and directors.
• Engaging in proactive outreach to employees, including executives, through a variety of chan-
nels to facilitate ethics awareness throughout the company.
• Maintaining an internal Ethics and Compliance online hub with important information such as
ethics policies, ways to report concerns, training, and other resources.
• Training and overseeing a team of Employee “Ethics Advisors” to help employees interpret"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"Scope 1 or stationary fuel sources, pur-
Scope 2) chased electricity, purchased
electricity from diesel gener-
ators, and purchased district
heat usage, and T&D losses
that occur as a result of pur-
chased electricity and district
heat usage.
Scope 3, Category 5: Indirect emissions generated 168† 33† 68†
Waste generated in from third-party disposal of
operations waste, which includes waste
disposed in landfills and waste
recycled.
Scope 3, Category 6: Indirect emissions from 2,605† 220† 2,258†
Business travel employee travel for business"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"losses
that occur as a result of pur-
chased electricity and district
heat usage.
Scope 3, Category 5: Indirect emissions generated 168† 33† 68†
Waste generated in from third-party disposal of
operations waste, which includes waste
disposed in landfills and waste
recycled.
Scope 3, Category 6: Indirect emissions from 2,605† 220† 2,258†
Business travel employee travel for business
and WTT emissions associ-
ated with aviation fuel.
Scope 3, Category 7: Indirect emissions from 3,472† 2,889† 4,420†
Employee commuting employees commuting, WTT"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"erated from third-party 168 33 68 [2022], (ii) where the GWP is embedded in the emission factor but the emission factor by individual gas is not disclosed,
Waste generated in disposal of waste, which includes waste disposed in the embedded GWP is applied, or (iii) where the GWP is embedded in the emission factor and the emission factor by
operations landfills and waste recycled.10 individual gas is disclosed, for 2022 only, the embedded GWP is converted to AR 6. CO2e emissions are calculated by
Scope 3, Category 6: Indirect emissions from employee travel for business 2,605 220 2,258 multiplying actual or estimated energy/fuel usage or refrigerant gas losses by relevant emission factors and/or GWP. All"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"are calculated by
Scope 3, Category 6: Indirect emissions from employee travel for business 2,605 220 2,258 multiplying actual or estimated energy/fuel usage or refrigerant gas losses by relevant emission factors and/or GWP. All
Business travel and WTT emissions associated with aviation fuel.11,16 emission factors are updated bi-annually where applicable.
Scope 3, Category 7: Indirect emissions from employees commuting, WTT 3,472 2,889 4,420 4. MTCO2e = metric tons of carbon dioxide equivalent.
Employee commuting emissions associated with passenger cars and public 5. Scope 1 emissions from stationary combustion and refrigerants:"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"electricity generated from diesel generators. managers. For 2022, where emissions could not be calculated based on distance traveled and cabin class alone,
o Purchased district heat: jet fuel consumption was estimated based on distance traveled and average fuel consumption of the aircraft flown
▪ District heat usage was estimated using the median monthly heating fuel intensity from the DOE’s as provided by Airbnb's third-party travel managers and as published by Aircraft Bluebook, respectively.
BPD (June 2022) for MMBTU per square foot multiplied by the location’s square footage per the ● Other travel-related employee expenses, excluding accommodations booked through the Airbnb platform, was"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"latform, was
lease agreement and months leased for the reporting year. calculated based on spend from Airbnb’s general ledger.
● Energy attribute certificates (EACs) purchased and retired by Airbnb were applied in calculating Scope 2 market- ● WTT emissions associated with aviation fuel from air travel (2022 only) were calculated based on air travel activity
based emissions for the years ended December 31, 2021 and December 31, 2022. Sourcing and retirement of as described within this footnote.
EACs consider guidelines on geography, vintage, certification and retirement established by the GHG Protocol and 12. Scope 3, category 7: employee commuting emissions:"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"as working remotely.
o Usage: Calculated based on monthly virtual central processing unit (vCPU) data by machine type as ○ For 2022, Airbnb implemented the Live and Work Anywhere program granting employees more flexibility
provided by the cloud service providers. Where processing data was not available, calculated based on regarding their work location.
cloud-related spend from Airbnb’s general ledger. ■ The percentage of employees commuting to an office was determined using badge scan entries
o T&D losses: Calculated based on total purchased cloud electricity usage as described within this footnote. divided by employees mapped to an office. An employee was only mapped to an office if they lived"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"s: Calculated based on spend from Airbnb’s remotely.
general ledger. ● Commuting:
o Spend categories not included in the analysis are those outside Airbnb’s operational control and/or where ○ Energy use related to commuting (passenger cars and public transit) was calculated based on the number
Airbnb determined that there are not significant emissions associated with them: foreign exchange of employees who commuted on a daily basis by office location for the applicable reporting year multiplied
differences, employee wages and payouts, interest payments, tax, benefit allocations, legal payments, by the associated commute mix for their office location, the associated average commute distance by"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"cates the most recent year the source
single-family homes from the DOE’s BPD (June 2022) for MMBTU per square foot for purchased was updated. Emission factors noted with a G have an embedded GWP which was converted to AR6.
district heat multiplied by the number of months of working remotely, the number of employees GHG Emissions Source Emission Factors
working remotely, the total home square footage, and the percentage of home energy usage Emissions
attributable to working remotely (15%). Scope
■ Airbnb assumed 15% of total home energy usage was attributable to an employee working Scope 1 Natural gas 2020, 2021: U.S. EPA 2021 Emission Factors for Greenhouse Gas"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"A 2022 Emission Factors for Greenhouse Gas Inventories
Scope 3, WTT from purchased 2022: BEIS 2021 U.K. Government GHG Conversion Factors for Company (2022)
Category 3: electricity and Reporting (2022) Where emissions were calculated based on distance traveled and cabin
Fuel- and purchased electricity class:
energy- T&D losses 2022: BEIS 2022 U.K. Government GHG Conversion Factors for
related Company Reporting (2022)G
activities (not Scope 3, Other travel-related 2020: U.S. EPA EEIO v1.1 (2020)
included in Category 6: employee expenses 2021: U.S. EPA EEIO v2.0 (2021)"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"missions Rates (2021) Category 6: Reporting (2022)
Fuel- and 2022: Green-e® Residual Mix Emissions Rates (2022)G
Business
energy- Australia:
related 2020, 2021: TCR 2021 Default Emission Factors (2021) travel
activities (not 2022: Australian Government Department of Climate Change, Energy, Scope 3, Commuting - 2020, 2021: U.S. EPA 2021 Emission Factors for Greenhouse Gas
included in the Environment and Water 2022 National Greenhouse Accounts Factors Category 7: Passenger cars Inventories (2021)
Scope 1 or (2023) Employee 2022: U.S. EPA 2022 Emission Factors for Greenhouse Gas Inventories"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"Water 2022 National Greenhouse Accounts Factors Category 7: Passenger cars Inventories (2021)
Scope 1 or (2023) Employee 2022: U.S. EPA 2022 Emission Factors for Greenhouse Gas Inventories
Scope 2) Brazil: commuting (2022)
2020: Ecoinvent’s Database 3.7 (2020) Scope 3, Commuting - Public 2020, 2021: Weighted average emission factor based on commute mix data
2021, 2022: Ecoinvent’s Database 3.8 (2021) Category 7: transit from the National Transit Database (2018 service data report) and emission
Canada: Employee factors from public transportation sources published in the U.S. EPA 2018"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"r Greenhouse Gas Inventories
Scope 2) Brazil: commuting (2022)
2020: Ecoinvent’s Database 3.7 (2020) Scope 3, Commuting - Public 2020, 2021: Weighted average emission factor based on commute mix data
2021, 2022: Ecoinvent’s Database 3.8 (2021) Category 7: transit from the National Transit Database (2018 service data report) and emission
Canada: Employee factors from public transportation sources published in the U.S. EPA 2018
commuting Emission Factors for Greenhouse Gas Inventories (2018)
9 10
462022: Weighted average emission factor based on commute mix data from Employee"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"l 1 so, ot h2 ue0 rcr2 e2 s st) a, (to 2ioi 0l n, 2 ac 2o r )ya l, d p Ti u &s rt Dcri h c la ot s sh e se eda s t d, (ia s 2tn 0rd i 2c 2t )h eat
Scope 3, Working remotely - U.S. - Kansas & Vermont: Scope 3, Working remotely – 2022: Same as the Scope 3, Category 3 WTT emission factors for purchased
Category 7: Purchased electricity 2020: U.S. EPA eGRID 2019 factors by sub-region (2021) Category 7: WTT from purchased electricity and purchased electricity T&D losses based on the country in which
E com mp mlo uy te ine g a e (bn le ad c s tp eriu dcr i oc tyh n a T ts h&e eDd c l oo uss ne trs y U.S.2 2 -0 0 A2 21 2 ll : : o G G thr r ee e re e sn n t- - ae e t® ® es R R ae e ns s di id d tu u ea a rrl l itM M ori ix x ie E E s:m m i is ss si io on ns s R Ra at te es s ( (2 20 02 21 2) ) G E com mp mlo uy te ine g e p Tl u &e r Dc ct h r li a oc ssit sey ed a s en ld e ctricity the employee was working remotely"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ectricity and purchased electricity T&D losses based on the country in which
E com mp mlo uy te ine g a e (bn le ad c s tp eriu dcr i oc tyh n a T ts h&e eDd c l oo uss ne trs y U.S.2 2 -0 0 A2 21 2 ll : : o G G thr r ee e re e sn n t- - ae e t® ® es R R ae e ns s di id d tu u ea a rrl l itM M ori ix x ie E E s:m m i is ss si io on ns s R Ra at te es s ( (2 20 02 21 2) ) G E com mp mlo uy te ine g e p Tl u &e r Dc ct h r li a oc ssit sey ed a s en ld e ctricity the employee was working remotely
in which the employee 2020, 2021: Green-e® Residual Mix Emissions Rates (2021) Scope 3, Natural gas, oil, coal, 2022: Same as the Scope 1 emission factors for natural gas, oil, coal, and"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"ty usage that was not associated with a REC was converted to 16. In 2022, Airbnb changed certain of its reporting boundaries, measurement methods, and criteria used to calculate
emissions using the emission factors above.12 certain Scope 1, Scope 2, and Scope 3 emissions metrics. The changes were not reflected in the comparative information
Scope 3, Working remotely - 2022: Same as the Scope 2 purchased district heat emission factors based for reporting years prior to 2022. The changes include:
Category 7: Purchased district heat on the country in which the employee was working remote ● Scope 1: Stationary combustion and refrigerants:"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"s travel:
o Air travel emissions: Airbnb expanded its reporting boundary to include additional cabin classes of travel
using the methodology described in footnote 11.
o WTT emissions: Airbnb expanded its reporting boundary to include WTT emissions associated with
aviation fuel from air travel, including the additional cabin classes of travel, using the methodology
described in footnote 11.
o The 2022 Scope 3, category 6 emissions were approximately 29% higher due to the changes described
above.
● Scope 3, category 7: employee commuting:"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"all backgrounds, identities,
and experiences can succeed and thrive. Our diverse global team brings creative, varied, and
authentic perspectives to bear on everything we do, and helps us understand and better reflect
our stakeholders. Airbnb connects Hosts and guests in more than 220+ countries and regions
around the world, and is available in over 60 languages and dialects. We believe a diverse team
helps us build an inclusive and accessible platform to serve these stakeholders and the commu-
nities they call home. A diverse workforce and an inclusive culture also help us attract and retain"
Airbnb-SustainabilityandCommunityUpdate-2023-111623.txt,"han 220+ countries and regions
around the world, and is available in over 60 languages and dialects. We believe a diverse team
helps us build an inclusive and accessible platform to serve these stakeholders and the commu-
nities they call home. A diverse workforce and an inclusive culture also help us attract and retain
top talent, identify and work to address challenges and opportunities as they evolve over time,
and build products and services that we believe position us for long-term growth.
Workforce Diversity"
Allegion_ESG_Sustainability_Update.txt,"rnance goals
By 2030, achieve 25% reduction0 in Socially responsible product quality and Maintain Board oversight of our risk
greenhouse gas (GHG) emissions intensity product safety management system, including information
technology, cybersecurity, privacy and
disruptive technology matters; our ESG system
By 2030, use 100% carbon-free electricity Offer a best-in-class supplier diversity and issues; and the ethics and compliance
program (U.S.) program
Extend the ethics and compliance program to
By 2030, achieve 20% reduction in water World-class employee safety management,"
Allegion_ESG_Sustainability_Update.txt,"ystem
By 2030, use 100% carbon-free electricity Offer a best-in-class supplier diversity and issues; and the ethics and compliance
program (U.S.) program
Extend the ethics and compliance program to
By 2030, achieve 20% reduction in water World-class employee safety management,
all employees, contingent workforce, suppliers
usage and total waste to landfill in line with National Safety Council principles
and business partners, and resolve allegations /
complaints in an average of 60 days or less
By 2035, make interim progress toward our By 2030, reach top quartile employee Deliver code of conduct training to all"
Allegion_ESG_Sustainability_Update.txt,"years and are a Republic, Schlage, Stanley Access Ives, LCN,Republic,Schlage, Learn more about materials
prerequisite to developing EPDs. Technologies, Steelcraft, TGP, Steelcraft and Von Duprin. traceability and material declarations.
VonDuprinand Zero brands.
11Social Goals & Progress
Investments in social priorities provide better
shareholder returns through productivity, customer
satisfaction, talent retention and innovation.
Our key goals
In 2021, Allegion was named winner of the Robert W.
World-class employee safety management, in line"
Allegion_ESG_Sustainability_Update.txt,"ions.
VonDuprinand Zero brands.
11Social Goals & Progress
Investments in social priorities provide better
shareholder returns through productivity, customer
satisfaction, talent retention and innovation.
Our key goals
In 2021, Allegion was named winner of the Robert W.
World-class employee safety management, in line
with National Safety Council principles Campbell Award, a prestigious honor recognizing
excellence in environment, health and safety.
Socially responsible product quality and safety
One of our key business drivers – employee"
Allegion_ESG_Sustainability_Update.txt,"d innovation.
Our key goals
In 2021, Allegion was named winner of the Robert W.
World-class employee safety management, in line
with National Safety Council principles Campbell Award, a prestigious honor recognizing
excellence in environment, health and safety.
Socially responsible product quality and safety
One of our key business drivers – employee
Offer a best-in-class supplier diversity program (U.S.)
engagement – is at an all-time high, meaning steady
progress toward our top-quartile goal.
By 2030, reach top quartile employee engagement in the"
Allegion_ESG_Sustainability_Update.txt,"advancement and retention of diverse
talent at all levels and is actively working to build the pipeline
of available, representative talent ready for leadership
opportunities.
The Compensation and Human Capital Committee assists
the Board in its oversight of our key human capital programs,
policies and strategies, including DEI.
Senior executives sponsor the DEI Steering Committee,
which is responsible for developing the DEI strategy and
working with cross-functional subject matter experts and
employee-led resource groups to progress goals and monitor"
Allegion_ESG_Sustainability_Update.txt,"-1 summary report on the
corporate ESG web portal.
13Employee Safety
& Engagement
Allegion is committed to fostering a safe and
healthy work environment in accordance with our
core values, especially “be safe, be healthy.” From
peer-to-peer safety programs to reduce workplace
In 2023, Allegion launched unconscious bias In 2023, Allegion’s EHS team launched a new
injuries to an internal organization focused on
development courses alongside a campaign quarterly global awards program, the Allegion
employee wellness, Allegion prides itself on having"
Allegion_ESG_Sustainability_Update.txt,"nd global initiatives, we proactively
communications staff worldwide have access to a
identify and address physical safety hazards while
professional development program on inclusive content
promoting psychological safety. Our Good Catch
creation, sales and marketing practices, and the
Program encourages manufacturing employees to
opportunity to learn from peers.
share potential safety hazards and ideas for injury
prevention, and we recognize their
contributions. We value feedback on ethics and
safety from work teams and the annual employee"
Allegion_ESG_Sustainability_Update.txt,"d chair, we split the roles of CEO and chair of the Board. John H. Stone
(president & CEO) is a member of the Board, and Kirk Hachigian is its independent chair.
▪ Starting in 2023, we updated our annual incentive plan to include an ESG scorecard for executive officers.
▪ We have refreshed our Board by adding six new directors since 2020, and 60% of Board is diverse.
▪ We continue to update our ESG disclosures, sharing steps taken to support our long-term strategy and commitments.
1199Footnotes
* Data is normalized to hours worked. To the extent actual hours worked are not available for any full-time employee, an average of 40 hours per week is used."
Allegion_ESG_Sustainability_Update.txt,"lected for manufacturing facilities and certain warehouses globally. For all other facilities, data is based on certain estimates as indicated below. From
Apr. 1, 2020, through Dec. 31, 2021, a 50% reduction was applied to the below estimates for water usage and waste to landfill in office type locations to account for the
remote work environment during the COVID-19 pandemic.
0As of April 2023, the GHG emissions intensity goal has changed from a10% reduction by the year 2030 to a 25% reduction.
1 Assumes an average of 15 gallons (or 57 litres) of water used per employee per workday."
Allegion_ESG_Sustainability_Update.txt,"o a 25% reduction.
1 Assumes an average of 15 gallons (or 57 litres) of water used per employee per workday.
2 Calculation includes all scope 1 and 2 emissions except for the company vehicle fleet. Where actual data is not collected, assumes an average of 2,000 BTU of gas
usage and 0.6 Kilowatt-hours (""KwH"") of electricity usage per square footage per month for warehouse locations and 2,700 BTU of gas usage and 1.5 KwH of electricity
usage per square footage per month for office type locations.
3 Assumes an average of 40 lbs. (18 kilograms) of non-hazardous waste per employee per month."
Allegion_ESG_Sustainability_Update.txt,"lity and Maintain Board oversight of our risk
greenhouse gas (GHG) emissions intensity product safety management system, including information
technology, cybersecurity, privacy and
disruptive technology matters; our ESG system
By 2030, use 100% carbon-free electricity Offer a best-in-class supplier diversity and issues; and the ethics and compliance
program (U.S.) program
Extend the ethics and compliance program to
By 2030, achieve 20% reduction in water World-class employee safety management,
all employees, contingent workforce, suppliers"
Allegion_ESG_Sustainability_Update.txt,", including DEI.
Senior executives sponsor the DEI Steering Committee,
which is responsible for developing the DEI strategy and
working with cross-functional subject matter experts and
employee-led resource groups to progress goals and monitor
progress. It provides biennial updates to the Board and our
Executive Leadership team.
Strategic action priorities:
§ Building and sustaining equitable policies and procedures
§ Creating an inclusive culture
§ Elevating DEI in our industry and communities
View detailed workforce diversity information and"
Allegion_ESG_Sustainability_Update.txt,"r business partners and contractors.
Our key goals Among other things, our Code of Conduct includes the
obligation to speak up and protects against retaliation.
Maintain Board oversight of our risk management system,
including information technology (IT), cybersecurity, privacy and
disruptive technology matters; our ESG system and issues; and
the ethics and compliance program
Key policies and reference documents on the Allegion
website:
Extend the ethics and compliance program to all employees,
contingent workforce, suppliers and business partners"
american_tower_2023_sustainability_executive_report.txt,"ion of the Company’s data center segment could have a material impact on the Company’s ability to achieve its science-based targets. AMERICAN TOWER | 2023 SUSTAINABILITY EXECUTIVE REPORTLETTER FROM OUR ABOUT OUR APPROACH
10 PRESIDENT AND CEO AMERICAN TOWER TO SUSTAINABILITY ENVIRONMENT SSOOCCIIAALL GOVERNANCE ABOUT THIS REPORT
Social
Aligning With the UN SDGs Our Approach
We recognize the importance of supporting and creating opportunities
for our employees and the communities where we operate.
Our Social pillar encompasses a range of initiatives, including employee development and wellness programs, safety and"
american_tower_2023_sustainability_executive_report.txt,"ity initiatives supported by the American Tower Foundation, volunteer activities
and our Digital Communities program, among other philanthropic endeavors. We are proud to generate shared value by
enabling digital access and creating benefits for our business and stakeholders.
• P rofessional Development: We provide extensive • DEI: We foster and cultivate DEI through targeted
professional development and training opportunities recruitment efforts, conscious inclusion training,
Aligning With the
for employees at all levels of the organization, employee resource groups and regional DEI councils."
american_tower_2023_sustainability_executive_report.txt,"ecurity and Expanded DEI programming for employees
employees, an indication of crisis management, as part of our commitment to the with allyship education sessions, mentorship
the support and development employees promoted security of our people, assets and operations programs, speaker series, and heritage
the Company provides month programs and celebrations
Achieved an impressive 88% 88%
Proudly employed a workforce comprised of response rate in the company- Opened 144 Digital Communities, 144
approximately 30% women in an industry in wide employee engagement response rate in bringing the total to more than"
american_tower_2023_sustainability_executive_report.txt,"d operations programs, speaker series, and heritage
the Company provides month programs and celebrations
Achieved an impressive 88% 88%
Proudly employed a workforce comprised of response rate in the company- Opened 144 Digital Communities, 144
approximately 30% women in an industry in wide employee engagement response rate in bringing the total to more than
which women continue to be underrepresented; survey, with an outstanding company-wide 580, which have served more Digital
engagement survey
additionally, in 2023, 38% of all employees promoted 85% overall employee than 720,000 people across 15 Communities"
american_tower_2023_sustainability_executive_report.txt,"female, which exceeds the female engagement favorability score; countries—Argentina, Brazil, Chile, opened
representation in our workforce notably, 94% of employees confirmed their belief in Colombia, Costa Rica, Ghana, India,
managerial honesty and ethical practices, while an Kenya, Mexico, Nigeria, Paraguay, Peru, South Africa,
impressive 96% aligned with our company values Uganda and the U.S.—with more than 450,000
As an enhancement to our $5M+ training course certificates awarded since the
Employee Development Center, program’s inception"
american_tower_2023_sustainability_executive_report.txt,"entation in our workforce notably, 94% of employees confirmed their belief in Colombia, Costa Rica, Ghana, India,
managerial honesty and ethical practices, while an Kenya, Mexico, Nigeria, Paraguay, Peru, South Africa,
impressive 96% aligned with our company values Uganda and the U.S.—with more than 450,000
As an enhancement to our $5M+ training course certificates awarded since the
Employee Development Center, program’s inception
launched ATC YOU, a global Distributed more than $4 million $4M+
invested in employee"
american_tower_2023_sustainability_executive_report.txt,"tificates awarded since the
Employee Development Center, program’s inception
launched ATC YOU, a global Distributed more than $4 million $4M+
invested in employee
learning university focused development globally through our workplace
on advancing our people and giving and matching programs, distributed globally Achieved over 37% in spending with small and
preparing our teams for the future, and invested more volunteer events, disaster-relief diverse businesses in the U.S., including those owned
than $5 million in employee development and tuition donations and financial contributions from the by individuals who identify as minorities, women,"
american_tower_2023_sustainability_executive_report.txt,"e ensure a strong
proclaimed human rights; Board through the Audit Committee.
corporate governance framework that delineates
the roles and responsibilities of our Board, provides • S takeholder Engagement: We maintain strong
PRINCIPLE 2
comprehensive oversight of our strategic initiatives and relationships with our stakeholders through
Make sure that they are not complicit in
operations, and ensures regulatory compliance. comprehensive engagement programs. This includes
human rights abuses; and
conducting employee engagement surveys, participating"
american_tower_2023_sustainability_executive_report.txt,"RNANCE ABOUT THIS REPORT
Social 2023 Highlights
Promoted over 500 500+ Enhanced global policies related to security and Expanded DEI programming for employees
employees, an indication of crisis management, as part of our commitment to the with allyship education sessions, mentorship
the support and development employees promoted security of our people, assets and operations programs, speaker series, and heritage
the Company provides month programs and celebrations
Achieved an impressive 88% 88%
Proudly employed a workforce comprised of response rate in the company- Opened 144 Digital Communities, 144"
american_tower_2023_sustainability_executive_report.txt,"s, 144
approximately 30% women in an industry in wide employee engagement response rate in bringing the total to more than
which women continue to be underrepresented; survey, with an outstanding company-wide 580, which have served more Digital
engagement survey
additionally, in 2023, 38% of all employees promoted 85% overall employee than 720,000 people across 15 Communities
globally were female, which exceeds the female engagement favorability score; countries—Argentina, Brazil, Chile, opened
representation in our workforce notably, 94% of employees confirmed their belief in Colombia, Costa Rica, Ghana, India,"
ametek_sustainability_report-2023.txt,"available. If material is single-sourced, we utilize mitigation plans for the continuity of supply. This is
accomplished through 1) our Strategic Supply Chain organization, which constantly monitors market availability and geopolitical
concerns, 2) our stocking strategies for material that is deemed ‘at risk’, and 3) our efforts to qualify multiple sources for material
whenever possible. In all situations, we implement appropriate risk mitigation efforts for the availability of material supply.
AMETEK has adopted its Supplier Code of Conduct, which sets clear expectations related to employment standards, worker safety,"
ametek_sustainability_report-2023.txt,"2023 Sustainability ReportIntroduction About AMETEK Solutions Governance Environment People Communities Appendix
| Table of Contents
Introduction 3 Governance 20 People 36
Message from the Chairman and CEO 3 Corporate Governance Structure 21 Diversity and Inclusion 37
Key Sustainability Highlights 5 Board Diversity 22 Safeguarding Human Rights 39
Risk Management 23 Human Capital Management 40
About AMETEK 6 Cybersecurity 23 Employee Benefits and Well-Being 43"
ametek_sustainability_report-2023.txt,"my colleagues, I am delighted to present AMETEK’s 2023 Sustainability Report, which
serves as a comprehensive overview of the significant progress we are making on our sustainability Investing in Our People
journey. This report highlights the key elements which form the basis of our sustainability efforts —
Our people are the most essential resource in driving AMETEK’s long-term success and in achieving
upholding sound governance, protecting our environment, investing in our people, partnering
our sustainability ambitions. We are continually expanding our employee development, engagement,"
ametek_sustainability_report-2023.txt,"tivate strong and lasting
solutions supports important accountability, and ethical and steps towards environmental greatest asset. Through strategic relationships with the communities
sustainability initiatives. Through responsible decision-making is management and sustainability, investments in talent acquisition, in which we operate, actively
collaborative partnerships with demonstrated through our core and are firmly committed to learning and development, and contributing to their social and
our customers, we develop values, corporate governance reducing our carbon footprint. employee well-being, we foster economic prosperity. Through"
ametek_sustainability_report-2023.txt,"ic relationships with the communities
sustainability initiatives. Through responsible decision-making is management and sustainability, investments in talent acquisition, in which we operate, actively
collaborative partnerships with demonstrated through our core and are firmly committed to learning and development, and contributing to their social and
our customers, we develop values, corporate governance reducing our carbon footprint. employee well-being, we foster economic prosperity. Through
solutions which help reduce structure, compliance measures, From emissions reduction a culture of empowerment, employee volunteerism, financial"
ametek_sustainability_report-2023.txt,"rious and incentive goals for key employees. Evaluates, recommends, selects,
• Annual Board self-evaluation process.
aspects related to auditing and financial Reviews and monitors management and oversees the Board of Directors
• All stockholders have equal voting rights.
reporting, and to risk generally. development and succession plans. and Committees. Additionally, the GNC
Periodically reviews compensation oversees management’s sustainability
Additional details on the Board and its Committees
of non-employee directors. efforts, our Corporate Governance"
ametek_sustainability_report-2023.txt,"CEO and Senior Financial Officers.
AMETEK Hotline
As part of our commitment to doing the right thing for all stakeholders and fostering an
environment of ethical behavior, the company promotes open communication between AMETEK
colleagues, their managers, and senior management. We encourage employees to report any
concerns regarding conduct, policy violations, financial matters, safety issues, or other topics
directly to their managers, Human Resources, or anonymously through the AMETEK Hotline.
The AMETEK Hotline channels are communicated to every employee through the Code of Ethics"
ametek_sustainability_report-2023.txt,"he % reduction in
site reduced energy consumption
energy intensity since 2019 by 7%. fleet fuel usage since 2019
2023 Sustainability Report 32Introduction About AMETEK Solutions Governance Environment People Communities Appendix
Waste Management
Over the past two years, we implemented various initiatives aimed at reducing waste
and improving our recycling efforts. These include our Operational Excellence program,
which focuses on reducing waste throughout our operations, with a particular focus
on hazardous waste management and reduction. We have also increased employee"
ametek_sustainability_report-2023.txt,"ities Appendix
| Diversity and Inclusion
Building an Inclusive Culture AMETEK recognizes
that sustainable
We understand the importance of developing a diverse and inclusive culture where
everyone feels comfortable sharing their thoughts, ideas, and perspectives. Diverse and
growth relies on
inclusive behavior drives innovation, growth, and greater opportunities for all employees.
fostering a diverse
In 2022, AMETEK made significant progress in promoting diversity and inclusion in the workplace.
The company started quarterly awareness training on diversity and inclusion, which was followed employee base."
ametek_sustainability_report-2023.txt,"helmingly positive, further amplifying our global culture of inclusion.
Committee
Inclusion Council
Key initiatives of the
AMETEK Inclusion Council:
AMETEK’s Inclusion Council is made up of a diverse group of AMETEK colleagues who
coordinate initiatives that promote AMETEK’s core value of diversity and inclusion. The • Expand mentoring programs globally
Inclusion Council members represent various ages, businesses, functions, and geographies. for all employees.
• Increase diversity awareness and
AMETEK recognizes that sustainable growth relies on fostering a diverse employee base that brings"
ametek_sustainability_report-2023.txt,"es heard, and are provided with ample opportunities for growth and
ensure training on our diversity and
development. The AMETEK Inclusion Council, along with its resource groups, plays a significant role
inclusion initiatives.
in nurturing relationships, facilitating meaningful conversations, and enhancing representation across
• Improve inclusion of working parents
the company. These groups drive initiatives focused on mentorship, education, and career guidance,
and single heads of households.
elevating the level of employee engagement."
ametek_sustainability_report-2023.txt,"TIn igi
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increasing the representation of women and minorities in S FICTEM-related fields. Our compensation programs are designed to provide co FICmpetitive salaries
RI RI
and benefit programs to attract, retain, and motivate a woTrld-class workforce. Eligible employees participate in short- and long-term inTcentive programs
C C
E E
R that align employee and shareholder interests and promotEeL long-term retention. EL"
ametek_sustainability_report-2023.txt,"ce 2016 were diverse.
42%
58% * Diverse is defined as female employees worldwide plus U.S.
male diverse employees. Female employees are 31% of total
AMETEK employees. As of 8/31/2023.
** Diverse management includes female employees worldwide
plus U.S. male diverse employees who are part of AMETEK's
Management Incentive Plan. As of 8/31/2023.
Non-diverse Diverse 17 18 19 20 21 22 23 *** As of 8/31/2023.
2023 Sustainability Report 38
%52
%73
We foster diversity
and inclusion
throughout the entire
employee lifecycle.Introduction About AMETEK Solutions Governance Environment People Communities Appendix"
ametek_sustainability_report-2023.txt,"nscious bias training, conduct global pay equity reviews, and have hiring
programs aimed at increasing diversity.
We communicate AMETEK’s approach to
diversity, inclusion, and other workplace-related
human rights through training and the activities of
our business councils.
2023 Sustainability Report 3399Introduction About AMETEK Solutions Governance Environment People Communities Appendix
| Human Capital Management
Our Board regularly receives updates and presentations on key topics, including
sustainability, compliance, diversity and inclusion, and employee development and"
ametek_sustainability_report-2023.txt,"classroom instruction, tuition reimbursement, leadership development
programs, eLearning courses, one-to-one mentoring programs, and on-the-job training. These are designed to develop and prepare our employees
Through offering attractive benefits and for expanded roles within the company including future leadership roles. In addition to on-the-job training, our employees received on average 15 hours
implementing robust training and development of formal training in 2022 to enhance their skills.
programs, we foster strong employee"
ametek_sustainability_report-2023.txt,"ursement, leadership development
programs, eLearning courses, one-to-one mentoring programs, and on-the-job training. These are designed to develop and prepare our employees
Through offering attractive benefits and for expanded roles within the company including future leadership roles. In addition to on-the-job training, our employees received on average 15 hours
implementing robust training and development of formal training in 2022 to enhance their skills.
programs, we foster strong employee
engagement and cultivate a sense of pride We have a longstanding commitment to employee development and communications. We have an established leadership development program for"
ametek_sustainability_report-2023.txt,"ment to employee development and communications. We have an established leadership development program for
and ownership in their roles. By doing so, employees on track to become profit and loss (P&L) leaders in the company. This focused and intensive program involves both internal and external training
we are confident in our ability to attract on leadership effectiveness as well as specific job-related skills. In addition, participants receive hands-on experience in key AMETEK business system
top-quality talent. processes such as growth kaizens and acquisition due diligence. Each employee is provided with annual performance goals which are reviewed in"
ametek_sustainability_report-2023.txt,"track to become profit and loss (P&L) leaders in the company. This focused and intensive program involves both internal and external training
we are confident in our ability to attract on leadership effectiveness as well as specific job-related skills. In addition, participants receive hands-on experience in key AMETEK business system
top-quality talent. processes such as growth kaizens and acquisition due diligence. Each employee is provided with annual performance goals which are reviewed in
a performance review with their manager. Employee feedback is actively encouraged through an open-door policy for all managers, regular town hall/all"
ametek_sustainability_report-2023.txt,"e. Each employee is provided with annual performance goals which are reviewed in
a performance review with their manager. Employee feedback is actively encouraged through an open-door policy for all managers, regular town hall/all
hands meetings, executive presentations with Q&A sessions, a regular CEO podcast for all employees, and a hotline that can be used to report complaints.
2023 Sustainability Report 40Introduction About AMETEK Solutions Governance Environment People Communities Appendix
Employee Development Programs"
ametek_sustainability_report-2023.txt,"entity, and promoting a workplace where everyone can thrive and achieve
their full potential. Our efforts in retention and engagement reflect this commitment. By listening to
our employees and incorporating their feedback, we have implemented policies and programs that
support diversity and inclusion, including mentorship and sponsorship programs, affinity groups,
and flexible work arrangements.
A crucial component of our retention strategy involves utilizing surveys to gather valuable feedback
from employees anonymously. Many of our business units conduct employee engagement surveys"
ametek_sustainability_report-2023.txt,"ity and inclusion, including mentorship and sponsorship programs, affinity groups,
and flexible work arrangements.
A crucial component of our retention strategy involves utilizing surveys to gather valuable feedback
from employees anonymously. Many of our business units conduct employee engagement surveys
on a regular basis. Each survey is unique to the business unit and the management team reviews
the feedback received in each case. This feedback serves as a foundation for developing effective
retention and engagement strategies. Additionally, we have numerous site-level employee"
ametek_sustainability_report-2023.txt,"nvolvement programs and teams in areas such as sustainability, diversity and inclusion, and safety.
AMETEK's overall retention rates are outstanding
and well above the relevant industry benchmarks,
with retention rates for our Corporate Officers
of 99% over the past 5 years.
Colleagues creating the AMETEK
“ ” at the opening of the Subotica,
Serbia facility.
22002233 SSuussttaaiinnaabbiilliittyy RReeppoorrtt 42Introduction About AMETEK Solutions Governance Environment People Communities Appendix
| Employee Benefits and Well-Being"
ametek_sustainability_report-2023.txt,"facility.
22002233 SSuussttaaiinnaabbiilliittyy RReeppoorrtt 42Introduction About AMETEK Solutions Governance Environment People Communities Appendix
| Employee Benefits and Well-Being
AMETEK focuses on the overall well-being of our employees by providing a comprehensive range of competitive non-compensation benefits tailored to support them in various aspects of
their lives. These benefits may vary by country, business unit, and work location.
Comprehensive Medical Coverage Retirement Savings
Our healthcare package includes healthcare, dental, vision, short-term AMETEK contributes to employee retirement savings through statutory"
ametek_sustainability_report-2023.txt,"ent planning efforts.
Education Benefits Flexible Work Arrangements
We provide financial assistance and support to employees and their families Depending on their role, employees enjoy flexibility in their work schedule.
to pursue educational opportunities. This encompasses tuition reimbursement, This can include options such as flextime (flexible start and end times).
scholarships, grants, and other forms of assistance that help individuals further
their education and professional development.
Paid Parental Leave Employee Assistance Program"
ametek_sustainability_report-2023.txt,"e Work Arrangements
We provide financial assistance and support to employees and their families Depending on their role, employees enjoy flexibility in their work schedule.
to pursue educational opportunities. This encompasses tuition reimbursement, This can include options such as flextime (flexible start and end times).
scholarships, grants, and other forms of assistance that help individuals further
their education and professional development.
Paid Parental Leave Employee Assistance Program
We offer employees the opportunity to take time off from work to care for a AMETEK’s Employee Assistance Program offers a variety of resources"
ametek_sustainability_report-2023.txt,"e (flexible start and end times).
scholarships, grants, and other forms of assistance that help individuals further
their education and professional development.
Paid Parental Leave Employee Assistance Program
We offer employees the opportunity to take time off from work to care for a AMETEK’s Employee Assistance Program offers a variety of resources
newborn or newly adopted child. During this period, we continue to pay the and services to our employees to help navigate various life challenges.
employee’s salary, ensuring they have the time to bond with their child and Services include emotional well-being support, counseling, legal and"
ametek_sustainability_report-2023.txt,"responsible for
enforcing health and safety standards.
126 AMETEK sites experienced
Our safety focus enables a sustainable workforce for today and the future. We are very pleased with
our results and improvements, both overall and as benchmarked against industry standards. Our
zero lost time incidents in 2022.
Lost Workday Incident Rate has steadily decreased over the years. 2022 was our lowest lost-time
incident rate on record and is over 80% below the industry average. We continue to maintain
an excellent track record and had zero employee fatalities in 2022."
ametek_sustainability_report-2023.txt,"ur Operational Impact 32
Aerospace Sustainability 18 About this Report 56
Protecting Biodiversity 34
Advancing Healthcare 19
Elizabeth R. Varet Sustainability Award 35
2023 Sustainability Report 2Introduction About AMETEK Solutions Governance Environment People Communities Appendix
| Message from the Chairman and CEO
At AMETEK, our shared purpose to make a safer, sustainable, and more productive world a reality remains unwavering. We are driven by our mission to design, develop, and manufacture
specialized technology solutions to solve our customers most complex challenges Our diverse global workforce, made up of world-class talent, works diligently to embody our shared"
ametek_sustainability_report-2023.txt,", partnering
our sustainability ambitions. We are continually expanding our employee development, engagement,
with our communities, and driving sustainable product solutions.
and training initiatives to provide opportunities for our colleagues and help ensure we have the talent
in place to support AMETEK’s growth. With a continued focus on advancing diversity and inclusion
Upholding Sound Governance
across the company, the AMETEK Inclusion Council is helping to drive our commitment to fostering
Our commitment to sustainability is underpinned by our core values, which promote transparency, an inclusive and engaged workforce."
ametek_sustainability_report-2023.txt,"sion we make as a global organization. AMETEK’s core values are ingrained across our company and are aligned with the distributed
nature of our business model. They are based on doing what is right for our employees, customers, suppliers, and investors, as well as the communities where we operate.
AMETEK’s global scale and business structure allow our colleagues to pursue a variety of meaningful opportunities to help further their industry knowledge and advance within the company. The diversity
of our workforce encourages team-oriented collaboration and the sharing of new ideas and perspectives to help drive innovation."
ametek_sustainability_report-2023.txt,"gr
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Environmentally Conscious Strong Customer Relationships DDII
Community-Focused Supply Chain Flexibility
Ethical Business Practices Socially Responsible Processes
Introduction About AMETEK Solutions Governance Environment People Communities Appendix
Strengthening Workforce Diversity"
ametek_sustainability_report-2023.txt,"te
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Environmentally Conscious Strong Customer Relationships DDII
Community-Focused Supply Chain Flexibility
Ethical Business Practices Socially Responsible Processes
Introduction About AMETEK Solutions Governance Environment People Communities Appendix
Strengthening Workforce Diversity
We believe that diversity and inclusion are critical for our continued growth, and seek to advance diversity in our workforce. Our approach to diversity and inclusion spans the entire employment"
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increasing the representation of women and minorities in S FICTEM-related fields. Our compensation programs are designed to provide co FICmpetitive salaries
RI RI
and benefit programs to attract, retain, and motivate a woTrld-class workforce. Eligible employees participate in short- and long-term inTcentive programs"
ametek_sustainability_report-2023.txt,"AMETEK is opposed
to child labor and is committed to complying with all applicable laws.
Anti-Discrimination
We maintain appropriate standards of conduct in the workplace and are sensitive to the concerns
of our diverse group of colleagues. Employment discrimination based on gender, race, ethnicity,
disability, national origin, religion, age, or sexual orientation is prohibited. We recognize that even
where anti-discrimination laws exist, the gender wage gap and underrepresentation of women and
minority groups in the workforce have proven to be persistent social problems. To address these"
ametek_sustainability_report-2023.txt,"financial guidance, and work-life support, such as resources to assist
with childcare and college planning.
2023 Sustainability Report 43Introduction About AMETEK Solutions Governance Environment People Communities Appendix
| Workplace Health and Safety
AMETEK takes the health and safety of our employees very seriously. Our ultimate goal is
zero accidents in the workplace. Every member of our leadership team is responsible for
enforcing health and safety standards.
126 AMETEK sites experienced
Our safety focus enables a sustainable workforce for today and the future. We are very pleased with"
ametek_sustainability_report-2023.txt,"nt by establishing to achieve personal growth and take advantage
and promoting higher levels of accessibility health care quality improvements, shared experiences and a shared sense of of opportunities that extend beyond basic
for more people around the world. The wellness, and cost containment. place. The AMETEK Foundation supports needs. In this regard, the AMETEK Foundation
AMETEK Foundation supports educational programs that focus on promoting access supports programs that focus on economic
initiatives, especially those with an to cultural opportunities that advocate and workforce development in underserved"
atc_2023_global_reporting_initiative_content_index.txt,"gence, and the ability to monitor and support employee travel worldwide.
403-2 Hazard identification, risk When a health and safety incident occurs, those injured receive immediate medical attention and the incident is immediately reported
assessment and incident to the appropriate supervisor, as well as to the local health and safety team. The incident is then investigated, corrective actions are
investigation recommended and as needed, controls are put in place to prevent or limit recurrence.
403-5 Worker training on American Tower provides occupational health and safety training to our employees—and in some markets to our contractors—on a"
atc_2023_global_reporting_initiative_content_index.txt,"tees. See the GRI disclosure related to Board Oversight and the Corporate Governance section in the
highest governance body 2024 Proxy Statement.
2-19 Remuneration policies See the Corporate Governance and the Compensation and Other Information Concerning Directors and Officers sections in the
2024 Proxy Statement.
2-20 Process to determine See the Corporate Governance and the Compensation and Other Information Concerning Directors and Officers sections in the
remuneration 2024 Proxy Statement.
2-21 Annual total The ratio of annual compensation for our CEO to our median employee is 329 to 1. See the Compensation and Other Information"
atc_2023_global_reporting_initiative_content_index.txt,"he Company’s
disbursements and support totaled more than $4 million through the Foundation, our workplace giving and matching program, regional
philanthropic programs, disaster-relief donations and other financial contributions.
In addition, the American Tower Foundation has pledged $2 million in grants to social justice and equity organizations worldwide. These
grants are recommended by our Social Justice Committee (SJC). Additionally, we have allocated $1 million over five years (2021 – 2025)
for scholarships at two Historically Black Colleges and Universities. The SJC allocates funds based on employee nominations reviewed"
atc_2023_global_reporting_initiative_content_index.txt,"are of critical importance to American Tower. Additionally,
ensuring the protection of American Tower property from actions and events that could cause damage or loss is a top priority. Effective
management of this topic ensures we will be an employer of choice and solidifies our reputation with customers that their equipment
will be installed on structurally compliant infrastructure and will not introduce any liabilities to their business as a result of their
relationship with American Tower.
Employee health and safety and physical security are managed at the market level, with consideration given to local requirements and"
atc_2023_global_reporting_initiative_content_index.txt,"s and other critical events. To ensure a consistent approach across markets, our corporate security team, led by
our Chief Security Officer, implements and oversees our global security risk management program. Our Global Security Policy provides
a threat-based approach to security management and establishes global standards for the protection of our people, assets and
operations. Complementing this policy, our business traveler assistance program features a 24/7 emergency hotline, trip-specific
travel advice, threat intelligence, and the ability to monitor and support employee travel worldwide."
atc_2023_global_reporting_initiative_content_index.txt,"recordable incident rate (TRIR)3 0.07 0.25 0.21
Lost time injury rate (LTIR)3 0.02 0.15 0.15
1 Data from the U.S. Bureau of Labor Statistics. As of the preparation of this report, 2023 data had not been released; 2022 industry data is used. Our North American Industry Classification System code is 23713 – power and communication line and
related structure construction.
2 Employees who joined the American Tower team as part of the CoreSite Realty Corporation acquisition in 2021 are not included.
3 Rates calculated as number of incidents per 200,000 hours of full-time equivalent employee work."
atc_2023_global_reporting_initiative_content_index.txt,"s number of incidents per 200,000 hours of full-time equivalent employee work.
American Tower | 2023 Sustainability ReportThe American Tower material topic “Diversity, Equity and Inclusion” corresponds to the GRI Standards “401: Employment,” “405: Diversity and Equal Opportunity” and “406:
Non-discrimination.”
GRI 3: Material Topics 2021
3-3 Management of material topics The Chief Human Resources Officer, reporting to our CEO, and the regional and country-level heads of Human Resources (HR) are
ultimately responsible for human capital management. These HR leaders oversee employee training and development, compliance-"
atc_2023_global_reporting_initiative_content_index.txt,"ee employee training and development, compliance-
related issues, and diversity and inclusion. Our Chief DEI Officer (CDEIO), reporting directly to our CEO, leads our DEI strategy.
These topics are primarily managed at the market level, with consideration given to local customs, norms and regulations. Progress on
these topics is monitored regularly through a variety of methods, including employment engagement surveys, benchmarking studies,
and participation in training and development programs.
DEI-related training is an integral component of our employee onboarding and continuing education programs. All new employees are"
atc_2023_global_reporting_initiative_content_index.txt,"ice-disabled veterans, LGBTQ+ or disabled. In 2024, we have a new
goal in the U.S. of 39% small and diverse vendor spend. We also work with NATE to highlight diverse vendors within their directory for
use in the U.S. and collaborate internally to identify opportunities for increasing the percentage of diverse business contract awards.
See the American Tower Promoting Diversity, Equity and Inclusion webpage for more information.
American Tower | 2023 Sustainability ReportGRI 401: Employment 2016
401-1 New employee hires and employee New Hires in 2023"
atc_2023_global_reporting_initiative_content_index.txt,".
American Tower | 2023 Sustainability ReportGRI 401: Employment 2016
401-1 New employee hires and employee New Hires in 2023
turnover
Region Gender Under 30 Years Old 30 - 50 Years Old Above 50 Years Old
Women 60% 3 40% 2 0% 0
Asia-
Pacific
Men 0% 0 95% 20 5% 1
Women 27% 13 56% 27 17% 8
Europe
Men 21% 15 59% 42 20% 14
Women 19% 4 81% 17 0% 0
Africa
Men 17% 8 79% 37 4% 2
Women 36% 16 62% 27 2% 1
Latin
America
Men 38% 15 58% 23 4% 2
Women 46% 13 46% 13 8% 2
U.S. and
Canada
Men 48% 25 50% 26 2% 1
American Tower | 2023 Sustainability Report401-1 New employee hires and Employee Turnover in 2023"
atc_2023_global_reporting_initiative_content_index.txt,"employee New Hires in 2023
turnover
Region Gender Under 30 Years Old 30 - 50 Years Old Above 50 Years Old
Women 60% 3 40% 2 0% 0
Asia-
Pacific
Men 0% 0 95% 20 5% 1
Women 27% 13 56% 27 17% 8
Europe
Men 21% 15 59% 42 20% 14
Women 19% 4 81% 17 0% 0
Africa
Men 17% 8 79% 37 4% 2
Women 36% 16 62% 27 2% 1
Latin
America
Men 38% 15 58% 23 4% 2
Women 46% 13 46% 13 8% 2
U.S. and
Canada
Men 48% 25 50% 26 2% 1
American Tower | 2023 Sustainability Report401-1 New employee hires and Employee Turnover in 2023
employee turnover"
atc_2023_global_reporting_initiative_content_index.txt,"ded to full-time Our success is rooted in the efforts of more than 5,600 employees, in 25 countries across six continents, all working toward building a more
employees that are not provided connected world. In support of this vision, we provide a positive and inclusive workplace by attracting, developing, engaging and retaining
to temporary or part-time strong talent throughout all our markets. As part of this strategy, we focus on offering opportunities for development and career growth across
employees all levels of the organization, while also providing competitive benefits that foster employee wellbeing."
atc_2023_global_reporting_initiative_content_index.txt,"nents, all working toward building a more
employees that are not provided connected world. In support of this vision, we provide a positive and inclusive workplace by attracting, developing, engaging and retaining
to temporary or part-time strong talent throughout all our markets. As part of this strategy, we focus on offering opportunities for development and career growth across
employees all levels of the organization, while also providing competitive benefits that foster employee wellbeing.
Employee Engagement"
atc_2023_global_reporting_initiative_content_index.txt,"workplace by attracting, developing, engaging and retaining
to temporary or part-time strong talent throughout all our markets. As part of this strategy, we focus on offering opportunities for development and career growth across
employees all levels of the organization, while also providing competitive benefits that foster employee wellbeing.
Employee Engagement
Our leadership connects with employees through a variety of channels, including regular town hall meetings, local team meetings, our
employee intranet, networking and team-building events, monthly emails, focus groups and surveys."
atc_2023_global_reporting_initiative_content_index.txt,"nt throughout all our markets. As part of this strategy, we focus on offering opportunities for development and career growth across
employees all levels of the organization, while also providing competitive benefits that foster employee wellbeing.
Employee Engagement
Our leadership connects with employees through a variety of channels, including regular town hall meetings, local team meetings, our
employee intranet, networking and team-building events, monthly emails, focus groups and surveys.
Our biennial employee survey was completed in 2023 and is a key method for gathering employee feedback. We achieved an impressive 88%"
atc_2023_global_reporting_initiative_content_index.txt,"mployees all levels of the organization, while also providing competitive benefits that foster employee wellbeing.
Employee Engagement
Our leadership connects with employees through a variety of channels, including regular town hall meetings, local team meetings, our
employee intranet, networking and team-building events, monthly emails, focus groups and surveys.
Our biennial employee survey was completed in 2023 and is a key method for gathering employee feedback. We achieved an impressive 88%
response rate, with an outstanding 85% overall employee engagement favorability score; notably, 94% of employees confirmed their belief in"
atc_2023_global_reporting_initiative_content_index.txt,"American Tower provides competitive total rewards in all markets where we operate. Given the varying regulations and cultures across our
global footprint, our markets offer tailored benefits packages unique to each country.
American Tower supports healthy lifestyles and wellbeing through various wellness programs, including health expense reimbursements,
regular wellness sessions and access to digital mental health services. We also promote financial wellbeing with retirement savings plans and
the Employee Stock Purchase Program (ESPP), which offers discounted American Tower stock to help employees invest in their financial"
atc_2023_global_reporting_initiative_content_index.txt,"d wellbeing through various wellness programs, including health expense reimbursements,
regular wellness sessions and access to digital mental health services. We also promote financial wellbeing with retirement savings plans and
the Employee Stock Purchase Program (ESPP), which offers discounted American Tower stock to help employees invest in their financial
future. In 2023, 41% of our global employees participated in the ESPP and 97% of U.S. employees invested in the retirement savings plan.
See the American Tower Benefits webpage for more information on U.S. employee benefits."
atc_2023_global_reporting_initiative_content_index.txt,"rental leave following additions to their families, and 97% of this group returned to work.
American Tower | 2023 Sustainability ReportGRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies In early 2022, American Tower adopted the UN WEPs as part of our goal to promote gender equality and women’s empowerment in the
and employees workplace and community, and we have facilitated several partnerships, programs and initiatives to enhance opportunities for women leaders.
For example, our global employee resource group, Women & Allies of American Tower Climb Higher (WAATCH), aims to cultivate an"
atc_2023_global_reporting_initiative_content_index.txt,"ion of senior management and/or the Board.
corrective actions taken
American Tower | 2023 Sustainability ReportTalent Recruitment, Development and Retention
The American Tower material topic “Talent Recruitment, Development and Retention” corresponds to the GRI Standard “404: Training and Education.”
GRI 3: Material Topics 2021
3-3 Management of material topics The Chief HR Officer, reporting to our CEO, and the regional and country-level heads of HR are ultimately responsible for human capital
management. These HR leaders oversee recruitment efforts, employee training and development, and compliance-related issues. Our CDEIO,"
atc_2023_global_reporting_initiative_content_index.txt,"-3 Management of material topics The Chief HR Officer, reporting to our CEO, and the regional and country-level heads of HR are ultimately responsible for human capital
management. These HR leaders oversee recruitment efforts, employee training and development, and compliance-related issues. Our CDEIO,
reporting directly to our CEO, leads our DEI strategy.
These topics are primarily managed at the country level, with consideration given to local customs, norms and regulations. Progress on these
topics is monitored regularly through a variety of methods, including employee engagement surveys, benchmarking studies, and participation"
atc_2023_global_reporting_initiative_content_index.txt,"ty and North Carolina Central University, contributing to scholarship funds as part of our commitment to donating a total of $1
million by 2026.
See our Equal Employment Opportunity Policy, Equal Employment Opportunity Policy Statement and Diversity Statement for additional
information.
GRI 404: Training and Education 2016
404-1 Average hours of training per To help our employees thrive, we support them through a variety of methods, including professional onboarding, ongoing training and career
year per employee development opportunities. In 2023, the Company invested over $5 million in employee development programs, roughly $1,000 per employee.1"
atc_2023_global_reporting_initiative_content_index.txt,", including professional onboarding, ongoing training and career
year per employee development opportunities. In 2023, the Company invested over $5 million in employee development programs, roughly $1,000 per employee.1
Through our new global online university ATC YOU, American Tower employees have access to over 40,000 learning resources, including 9,600
online courses, in up to five languages, ranging from specific on-the-job training to career development. In total, the Company’s global team
completed more than 80,000 hours of internal training, averaging approximately 16 hours per employee for both men and women, an almost"
atc_2023_global_reporting_initiative_content_index.txt,"ately 16 hours per employee for both men and women, an almost
20% increase from 2022.
To enhance awareness of sustainability, the Company launched an Introduction to Sustainability at American Tower course in our Development
Center. This course aims to familiarize employees with key sustainability concepts, the pillars of American Tower’s program and our global
approach, while also providing access to additional sustainability resources. Approximately 200 employees completed the course in 2023.
In early 2024, American Tower set a new global development goal: 24 in ’24, or 24 training hours per employee in 2024."
atc_2023_global_reporting_initiative_content_index.txt,"sustainability concepts, the pillars of American Tower’s program and our global
approach, while also providing access to additional sustainability resources. Approximately 200 employees completed the course in 2023.
In early 2024, American Tower set a new global development goal: 24 in ’24, or 24 training hours per employee in 2024.
404-2 Programs for upgrading We offer a variety of programs and workshops, specific to each region and focused on management and leadership development, for current
employee skills and transition and prospective leaders. These programs include online and live training modules, workshops with top business schools and action-learning"
atc_2023_global_reporting_initiative_content_index.txt,"We offer a variety of programs and workshops, specific to each region and focused on management and leadership development, for current
employee skills and transition and prospective leaders. These programs include online and live training modules, workshops with top business schools and action-learning
assistance programs projects; all aimed at enhancing skills in team management, global strategy, innovation and leadership for new managers, senior leaders and
key employees across our markets.
1 2023 employee training and development spend includes our data centers segment."
atc_2023_global_reporting_initiative_content_index.txt,"an Tower 2023 Sustainability Executive Report and the Corporate Governance section
in the 2024 Proxy Statement for additional detail.
American Tower | 2023 Sustainability ReportStakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• Company-wide surveys
• Employee town halls"
atc_2023_global_reporting_initiative_content_index.txt,"bility Executive Report and the Corporate Governance section
in the 2024 Proxy Statement for additional detail.
American Tower | 2023 Sustainability ReportStakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• Company-wide surveys
• Employee town halls
• Employee hotlines"
atc_2023_global_reporting_initiative_content_index.txt,"ort and the Corporate Governance section
in the 2024 Proxy Statement for additional detail.
American Tower | 2023 Sustainability ReportStakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• Company-wide surveys
• Employee town halls
• Employee hotlines
• Employee resource groups (e.g., WAATCH)"
atc_2023_global_reporting_initiative_content_index.txt,"n the 2024 Proxy Statement for additional detail.
American Tower | 2023 Sustainability ReportStakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• Company-wide surveys
• Employee town halls
• Employee hotlines
• Employee resource groups (e.g., WAATCH)
• Employee intranet"
atc_2023_global_reporting_initiative_content_index.txt,"tement for additional detail.
American Tower | 2023 Sustainability ReportStakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• Company-wide surveys
• Employee town halls
• Employee hotlines
• Employee resource groups (e.g., WAATCH)
• Employee intranet
• Sustainability operational committees and other employee-led committees"
atc_2023_global_reporting_initiative_content_index.txt,"dures
• Supplier and landlord portals
• Additional touchpoints with critical suppliers
Local Communities
We are responsible participants in the communities where we operate, and we actively seek input and feedback from community members. In
2023, we completed over 3,000 engagements with local communities via the following channels:
• Meetings
• Surveys
• Newspaper and flyer announcements
• Philanthropic initiatives, such as Digital Communities, Girls in ICT Day and the American Tower Foundation
• Employee volunteering"
atc_2023_global_reporting_initiative_content_index.txt,"ructure and show how the neutral-host tower model is inherently more sustainable.
Many of the trade associations and coalitions in which we participate engage in lobbying efforts. Our Public Affairs team has oversight of
political, lobbying and compliance activities and has set effective internal reporting, accounting and compliance procedures to closely monitor
our expenditures related to such matters. The American Tower Code of Conduct states, as a matter of policy, it does not make political
contributions in support of any party or candidate in any election. The Code of Conduct prohibits any employee or director of American Tower"
atc_2023_global_reporting_initiative_content_index.txt,"articipate engage in lobbying efforts. Our Public Affairs team has oversight of
political, lobbying and compliance activities and has set effective internal reporting, accounting and compliance procedures to closely monitor
our expenditures related to such matters. The American Tower Code of Conduct states, as a matter of policy, it does not make political
contributions in support of any party or candidate in any election. The Code of Conduct prohibits any employee or director of American Tower
from directing or requiring any other employee or director to contribute to any political party, cause, organization or candidate. The Company"
atc_2023_global_reporting_initiative_content_index.txt,"goal to promote gender equality and women’s empowerment in the
and employees workplace and community, and we have facilitated several partnerships, programs and initiatives to enhance opportunities for women leaders.
For example, our global employee resource group, Women & Allies of American Tower Climb Higher (WAATCH), aims to cultivate an
environment that supports and empowers women on their career journeys at American Tower through mentorship, professional development
and social connection.
American Tower is proud to have made progress on the development and promotion of women in our workforce. In 2023, approximately 30% of"
atc_2023_global_reporting_initiative_content_index.txt,"artnerships, programs and initiatives to enhance opportunities for women leaders.
For example, our global employee resource group, Women & Allies of American Tower Climb Higher (WAATCH), aims to cultivate an
environment that supports and empowers women on their career journeys at American Tower through mentorship, professional development
and social connection.
American Tower is proud to have made progress on the development and promotion of women in our workforce. In 2023, approximately 30% of
our workforce identified as women; however, women accounted for a proportionally higher 38% of our global promotions. We also continued"
atc_2023_global_reporting_initiative_content_index.txt,"& Allies of American Tower Climb Higher (WAATCH), aims to cultivate an
environment that supports and empowers women on their career journeys at American Tower through mentorship, professional development
and social connection.
American Tower is proud to have made progress on the development and promotion of women in our workforce. In 2023, approximately 30% of
our workforce identified as women; however, women accounted for a proportionally higher 38% of our global promotions. We also continued
efforts to increase representation of women across our global workforce, with approximately 39% of new hires identifying as women in 2023."
atc_2023_global_reporting_initiative_content_index.txt,"se candidate pipelines and promote a culture that supports a diverse team of global
employees. Many of our markets have set diversity recruiting goals, including increasing the representation of women candidates for open
roles. Additionally, we focus on attracting diverse leaders through our Leadership Development Program and partnerships with Historically
Black Colleges and Universities (HBCUs), providing financial support, serving on college advisory boards and supporting internships, thereby
creating opportunities for a more diverse workforce. In 2023, we continued our financial support of our HBCU partners, North Carolina A&T"
atc_responsibility_american_tower_2022_sustainability_report.txt,"d-party wildlife expert, who guides us in performing the work with minimal to no program. It exemplifies
disturbance. Additionally, through this program, we lead an effective industry partnership to share
how American Tower is
migratory bird knowledge, resources and best practices. The group has increased awareness of what
bird species are nesting on towers, how to identify signs of an active nest and how to safely work operating the right way
without disrupting birds during the nesting season.
and sustainably by prioritizing worker"
atc_responsibility_american_tower_2022_sustainability_report.txt,"arket structure. Our Chief Security Officer oversees our physical security programs.
We regularly monitor safety reports, identify systemic issues requiring corrective actions, and implement new policies and procedures where necessary.
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety See the Health and Safety Management section.
management system
403-2 Hazard identification, risk assessment and See the Health and Safety Management section.
incident investigation
403-5 Worker training on occupational health See the Health and Safety Management section."
atc_responsibility_american_tower_2022_sustainability_report.txt,"es talent from all backgrounds. This
digital infrastructure across our markets around the world, commitment starts with our Board—which has tied executive
while minimizing our environmental impact and operating compensation directly to developing talent, with a special
sustainably. As we continue to grow our business, creating focus on underrepresented groups—and flows through to
an equitable and inclusive experience for our employees, all levels of the organization. Our mentorship programs and
enhancing the sustainability of our operations, anticipating the employee resource groups support and advance our progress"
atc_responsibility_american_tower_2022_sustainability_report.txt,"STTAAIINNAABBIILLIITTYY AATT PRINCIPLES OF REPORTING
9 ABOUT AMERICAN TOWER PRESIDENT AND CEO AAMMEERRIICCAANN TTOOWWEERR GOVERNANCE SOCIAL ENVIRONMENT AND INDICES
Social
Aligning With the UN SDGs Our Approach 2022 Highlights
At American Tower, we believe in the importance of providing • P roudly employed a workforce
support and opportunities for both our employees and the that is nearly 30% women in an
communities where we operate. Our Social pillar encompasses industry in which women continue
our employee development programs; community initiatives, to be underrepresented"
atc_responsibility_american_tower_2022_sustainability_report.txt,"At American Tower, we believe in the importance of providing • P roudly employed a workforce
support and opportunities for both our employees and the that is nearly 30% women in an
communities where we operate. Our Social pillar encompasses industry in which women continue
our employee development programs; community initiatives, to be underrepresented
including financial contributions from the American Tower
• I nvested more than $5 million in
Foundation and volunteer efforts; and our Digital
employee development and support"
atc_responsibility_american_tower_2022_sustainability_report.txt,"nities
opportunities through reimbursements
where we operate by enabling access to the digital world and
• P romoted over 800 employees,
creating value for our business and stakeholders.
Aligning With the UNGC Principles an indication of the support and
• Foster and cultivate diversity, equity and inclusion (DEI) development the Company provides1
PRINCIPLE 3
through recruitment efforts, conscious inclusion training,
• P rovided performance reviews to 100%
Businesses should uphold the freedom of
employee resource groups and regional DEI councils"
atc_responsibility_american_tower_2022_sustainability_report.txt,"rmance metrics into
• Provide multiple channels for employees and other stakeholders to report
each executive officer’s
PRINCIPLE 10 violations, track all reported incidents of misconduct and manage resolutions;
annual incentive plan
Work against corruption in all its forms, substantive matters are reported to the Board through the Audit Committee
• Amended our Corporate
including extortion and bribery.
• Maintain strong stakeholder relationships and engagement programs
Governance Guidelines to
by conducting employee engagement surveys, participating in industry"
atc_responsibility_american_tower_2022_sustainability_report.txt,"and Corporate Governance Committee (Nominating Committee) oversees
part of a racial or ethnic minority group.
the management of risks associated with Board and committee composition, the skill
sets of directors, the Company’s corporate governance structure, and ESG programs
and reporting, as detailed in the Sustainability Governance section. The Compensation
Committee oversees the management of risks related to human capital management, For more information on our governance and risk management
compensation practices and programs, and employee training and development, framework, please see our 2023 Proxy Statement."
atc_responsibility_american_tower_2022_sustainability_report.txt,"uccess is rooted in the more than 6,000 employees, in 26 countries
across six continents, who are working toward building a more connected world.1 In
support of this vision, we provide a positive and inclusive workplace by attracting,
developing, engaging and retaining strong talent throughout all our markets. As part
of this strategy, we focus on offering opportunities for development and career growth
across all levels of the organization, while also providing competitive benefits that foster
employee wellbeing."
atc_responsibility_american_tower_2022_sustainability_report.txt,"and expertise of our employees. As the American Tower
telecommunications industry evolves, we want to empower our employees with the skill
Development Center
sets and knowledge they need for continued success. To help our employees thrive, we
support them through a variety of methods, including professional onboarding, ongoing
In 2022, we launched our new and enhanced
training and career development opportunities. In 2022, the Company invested over
Development Center, which provides a localized
$5 million in employee development programs, roughly $800 per employee, which is a"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ith the skill
Development Center
sets and knowledge they need for continued success. To help our employees thrive, we
support them through a variety of methods, including professional onboarding, ongoing
In 2022, we launched our new and enhanced
training and career development opportunities. In 2022, the Company invested over
Development Center, which provides a localized
$5 million in employee development programs, roughly $800 per employee, which is a
experience for our global team members to
23% increase in spending per employee from 2021.1"
atc_responsibility_american_tower_2022_sustainability_report.txt,"pment opportunities. In 2022, the Company invested over
Development Center, which provides a localized
$5 million in employee development programs, roughly $800 per employee, which is a
experience for our global team members to
23% increase in spending per employee from 2021.1
select and complete courses related to skill
23%
development and technical training.
Our support for employees begins during the onboarding and
increase in spending
new hire orientation process. All new employees complete
per employee"
atc_responsibility_american_tower_2022_sustainability_report.txt,"n many of our markets, new employees
Through our Development Center, American Tower offers all employees more
participate in Welcome Days, where they learn about the Company’s history, mission,
than 9,600 learning resources and over 39,000 resources to managers, in up to
vision, culture and other important topics about our business model.
five languages, ranging from specific on-the-job training to career development.
In total, the Company’s global team completed nearly 80,000 hours of internal
training, averaging approximately 13.5 hours per employee for both men and"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ages, ranging from specific on-the-job training to career development.
In total, the Company’s global team completed nearly 80,000 hours of internal
training, averaging approximately 13.5 hours per employee for both men and
women, an 11% increase from 2021. The Company also offers Rosetta Stone®
language training programs in six languages for employees looking to improve
their language skills.
7,000 ~80,000
online courses hours of internal training
13.5 11%
hours of training increase in average
per employee training hours from 2021"
atc_responsibility_american_tower_2022_sustainability_report.txt,"training to career development.
In total, the Company’s global team completed nearly 80,000 hours of internal
training, averaging approximately 13.5 hours per employee for both men and
women, an 11% increase from 2021. The Company also offers Rosetta Stone®
language training programs in six languages for employees looking to improve
their language skills.
7,000 ~80,000
online courses hours of internal training
13.5 11%
hours of training increase in average
per employee training hours from 2021
1. 2022 employee training and development spend includes our data centers segment."
atc_responsibility_american_tower_2022_sustainability_report.txt,"Association of State Boards of of our employees received an annual performance and career
and career development
Accountancy, we support our employees in continuing professional education programs. development review. review in 2022
AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
28 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Supporting Our People
Management and Leadership Development
An integral part of the employee experience is having"
atc_responsibility_american_tower_2022_sustainability_report.txt,"is team exemplified our Core Principles through
their work to make this integration a success.
Ludovic N.
Manager, Communications and General Services, France
2022 TowerStar Celebration
Ludovic has demonstrated an unwavering commitment
to the Company and his team members. He has been For the first time since the COVID-19 pandemic, our TowerStar winners were able
instrumental in coordinating impactful events to enhance to come from all over the world to Boston, our Company headquarters location,
employee engagement. His colleagues, in a show of their to celebrate their accomplishments. Our 2022 TowerStar winners met members of"
atc_responsibility_american_tower_2022_sustainability_report.txt,"CIPLES OF REPORTING
30 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Supporting Our People
Connecting With Our Employees Benefits and Wellness
Engaging directly with our employees is essential to providing a workplace where people feel valued, We believe providing our employees with comprehensive
included and inspired. Our leadership connects with employees through a variety of channels, benefits packages is fundamental to supporting their
including regular town hall meetings, local team meetings, our employee intranet, networking and overall wellbeing, as well as allowing the Company to retain"
atc_responsibility_american_tower_2022_sustainability_report.txt,"workplace where people feel valued, We believe providing our employees with comprehensive
included and inspired. Our leadership connects with employees through a variety of channels, benefits packages is fundamental to supporting their
including regular town hall meetings, local team meetings, our employee intranet, networking and overall wellbeing, as well as allowing the Company to retain
team-building events, CEO listening sessions, monthly emails, focus groups and surveys. talented people.
Our biennial employee survey was most recently completed in 2021 and is a key method for American Tower provides competitive"
atc_responsibility_american_tower_2022_sustainability_report.txt,"connects with employees through a variety of channels, benefits packages is fundamental to supporting their
including regular town hall meetings, local team meetings, our employee intranet, networking and overall wellbeing, as well as allowing the Company to retain
team-building events, CEO listening sessions, monthly emails, focus groups and surveys. talented people.
Our biennial employee survey was most recently completed in 2021 and is a key method for American Tower provides competitive
98%
gathering employee feedback. total rewards in all the markets"
atc_responsibility_american_tower_2022_sustainability_report.txt,"pleted in 2021 and is a key method for American Tower provides competitive
98%
gathering employee feedback. total rewards in all the markets
where we operate. Given the varying
of employees who took
With a response rate of 91%, the teamwork and leadership
regulations and cultures across our parental leave in 2022
returned to work
categories both scored 89% favorable. global footprint, our markets offer
tailored benefits packages unique to
each country. We are proud to offer medical and parental
Also, despite the impact of the COVID-19 pandemic, the employee engagement category achieved"
atc_responsibility_american_tower_2022_sustainability_report.txt,"d to offer medical and parental
Also, despite the impact of the COVID-19 pandemic, the employee engagement category achieved
benefits to all full-time employees across all markets, with
an 87% favorable rate. In response to feedback received from the survey, the U.S. team created a
some local variation. In 2022, approximately 250 employees
cross-functional Culture Committee tasked with identifying barriers to engagement and ideating
took parental leave following additions to their families, and
how to best address these issues. Additionally, we continue to improve our employee intranet (the"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ith identifying barriers to engagement and ideating
took parental leave following additions to their families, and
how to best address these issues. Additionally, we continue to improve our employee intranet (the
98% of this group returned to work.
Portal) as a resource to connect with employees globally. The Portal is a platform for employees
to share information and updates across regions and markets, as well as read local news and
Promoting financial wellbeing is another critical part of our
information, and quickly access employee-focused tools and resources."
atc_responsibility_american_tower_2022_sustainability_report.txt,"dress these issues. Additionally, we continue to improve our employee intranet (the
98% of this group returned to work.
Portal) as a resource to connect with employees globally. The Portal is a platform for employees
to share information and updates across regions and markets, as well as read local news and
Promoting financial wellbeing is another critical part of our
information, and quickly access employee-focused tools and resources.
benefits and wellness programs and includes our retirement
savings plans and Employee Stock Purchase Program"
atc_responsibility_american_tower_2022_sustainability_report.txt,"will drive DEI
business opportunities; find and develop talent;
and connect with the communities where we initiatives that align with our Company strategy.
live, work and do business
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34 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Promoting DEI
DEI Recruiting, Onboarding DEI-related training is an
and Development integral component of our
Our recruiting efforts include strategies employee onboarding"
atc_responsibility_american_tower_2022_sustainability_report.txt,"opment and promotion of women in our workforce.
early 2022, American Tower adopted the UN WEPs as part of our goal to promote of our workforce In 2022, approximately 30% of our workforce identified as
were women in 2022
gender equality and women’s empowerment in the workplace and community, and we women; however, women accounted for a proportionally
have facilitated several partnerships, programs and initiatives to enhance opportunities higher 35% of our global promotions. We also continued
35%
for women leaders. For example, our global employee resource group, Women & Allies efforts to increase representation of women across our"
atc_responsibility_american_tower_2022_sustainability_report.txt,"significantly lower than the industry averages of 1.6 and 0.6, reportable team, led by our Chief Security Officer, implements and
injury rate and lost time injury rate, respectively.1,2 We attribute these rates to our safety-first mindset, active oversees our global security risk management program.
communication, strong focus on safety training and certifications, compliance with relevant regulations and
In 2022, we enhanced our security
consistent oversight.
governance framework and developed
Employee Health and Safety Performance Trends an updated Global Security Policy, with"
atc_responsibility_american_tower_2022_sustainability_report.txt,"roach to security
Total number of fatalities 0 0 1 management and establishes global standards for the
protection of our people, assets and operations. We also
Total number of reportable injuries/illness 8 4 15
implemented an improved business traveler assistance program,
Total number of lost time injuries/illness 6 1 9 which features a 24/7 emergency hotline, trip-specific travel
advice and threat intelligence, and the ability to monitor and
Total recordable incident rate (TRIR) 0.14 0.07 0.25
support employee travel worldwide."
atc_responsibility_american_tower_2022_sustainability_report.txt,"edness in Nigeria
In Nigeria, approximately 100 field-based employees took part in Hostile Environment Awareness Training, a two-day
course guided by a global risk management firm, to help them gain the knowledge and hands-on experience needed
to safely navigate dangerous situations they may encounter in the field. These employees received instruction on several topics,
including basic medical training, mitigating risk, de-escalation techniques and what to do in unlikely but serious situations.
1. Rates calculated as number of incidents per 200,000 hours of full-time equivalent employee work."
atc_responsibility_american_tower_2022_sustainability_report.txt,"T AND INDICES
Connecting With Communities
Connecting With Communities
The American Tower Foundation
Since its inception in 2017,
Our culture is rooted in strengthening global communities through the cornerstones of our engagement
the American Tower
program—reliable and inclusive connectivity, diversity and inclusion in the ICT industry, social justice
Foundation has provided
and disaster relief. We create positive impacts by supporting digital connectivity in underserved
nearly $10 million to a
communities, actively engaging through employee volunteerism and providing financial support."
atc_responsibility_american_tower_2022_sustainability_report.txt,"served
nearly $10 million to a
communities, actively engaging through employee volunteerism and providing financial support.
variety of charitable organizations that benefit a
diverse range of causes and
In 2022, the Company’s disbursements and support totaled
communities. Donations have ~$10M
more than $3.5 million through the American Tower
included $3.5 million for disaster
Foundation, our workplace giving and matching program, relief efforts; over $2.1 million provided to charity
since 2017
matched in employee giving"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ions.” volunteered to work with 450 students, providing mentorship and
training to help the students develop their teams’ business ideas.
– Yahaya Nasamu Yunusa, Chief Executive Officer, ATC Ghana
1. 3 things to know about women in STEM fields, World Economic Forum AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
49 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Connecting With Communities
Philanthropy and Employee Volunteerism"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ave been established with local organizations. For example,
in Brazil, employees raised money for multiple organizations, including Casa do Zezinho, which offers
development opportunities for children and young people living in challenging socioeconomic situations.
AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
50 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Connecting With Communities
Employee Volunteerism Programs ~2,000"
atc_responsibility_american_tower_2022_sustainability_report.txt,"for multiple organizations, including Casa do Zezinho, which offers
development opportunities for children and young people living in challenging socioeconomic situations.
AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
50 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Connecting With Communities
Employee Volunteerism Programs ~2,000
American Tower employees demonstrated their commitment
employee volunteers"
atc_responsibility_american_tower_2022_sustainability_report.txt,"India, where we hosted a Season of Service event over a five-week
period. More than 700 employees participated, volunteering
for nearly 2,000 hours on projects, such as cleaning up public
87%
spaces, distributing food to those in need and spending time with
homeless children. volunteerism increase
Social Justice
We believe our communities are strongest when The Social Justice Committee allocates the
everyone has equitable access to opportunities. Foundation’s funds, in part, through nominations
American Tower is committed to driving positive from employees that are reviewed by employee"
atc_responsibility_american_tower_2022_sustainability_report.txt,"mittees. See the Board Oversight
highest governance body section in this report and the Corporate Governance section in the 2023 Proxy Statement.
2-19 Remuneration policies See the Corporate Governance and the Compensation and Other Information Concerning Directors and Officers sections in the 2023 Proxy Statement.
2-20 Process to determine remuneration See the Corporate Governance and the Compensation and Other Information Concerning Directors and Officers sections in the 2023 Proxy Statement.
2-21 Annual total compensation ratio The ratio of annual compensation for our CEO to our median employee is 374 to 1. See the Compensation and Other Information Concerning Directors and Officers section in the"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
82 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SOCIAL ENVIRONMENT AAPNPDE INNDDIICCEESS
GRI Content Index
Occupational Health and Safety and Physical Security
The American Tower material topics “Occupational Health and Safety” and “Physical Security” correspond to the GRI Standard “403: Occupational Health and Safety.” For additional detail, see the Health and Safety Management section.
GRI 3: Material Topics 2021
3-3 Management of material topics Employee, customer and contractor health, safety and security, in addition to ensuring the protection of American Tower property from actions and events that could cause damage or"
atc_responsibility_american_tower_2022_sustainability_report.txt,"fety and security, in addition to ensuring the protection of American Tower property from actions and events that could cause damage or
loss, are of critical importance to American Tower. Effective management of the topic ensures we will be an employer of choice and solidifies our reputation with customers that their
equipment will be installed on structurally compliant infrastructure and will not introduce any liabilities to their business as a result of their relationship with American Tower.
Employee health and safety and physical security are managed at the market level, with consideration given to local requirements and regulations. Health and safety roles are part of"
atc_responsibility_american_tower_2022_sustainability_report.txt,"Equity and Inclusion
The American Tower material topic “Diversity, Equity and Inclusion” corresponds to the GRI Standards “401: Employment,” “405: Diversity and Equal Opportunity” and “406: Non-discrimination.” For additional detail, see the Supporting Our
People section.
GRI 3: Material Topics 2021
3-3 Management of material topics The Chief HR Officer, reporting to our CEO, and the regional and country-level heads of HR are ultimately responsible for human capital management. These HR leaders
oversee employee training and development, compliance-related issues, and diversity and inclusion. Our Chief Diversity, Equity and Inclusion (DEI) Officer, reporting directly"
atc_responsibility_american_tower_2022_sustainability_report.txt,"t and Diversity Statement for additional details. Progress on these topics is monitored regularly through a variety of methods,
including employment engagement surveys, benchmarking studies, and participation in training and development programs.
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83 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SOCIAL ENVIRONMENT AAPNPDE INNDDIICCEESS
GRI Content Index
GRI 401: Employment 2016
401-1 New employee hires and employee New hires in 2022:"
atc_responsibility_american_tower_2022_sustainability_report.txt,"DE INNDDIICCEESS
GRI Content Index
GRI 401: Employment 2016
401-1 New employee hires and employee New hires in 2022:
turnover
Region Gender Under 30 Years Old 30-50 Years Old Above 50 Years Old
Asia-Pacific Women 27% 16 70% 42 3% 2
Men 12% 13 83% 91 5% 6
Europe Women 18% 12 64% 43 18% 12
Men 26% 16 44% 27 31% 19
Africa Women 28% 13 72% 33 0% 0
Men 20% 14 76% 53 4% 3
Latin America Women 41% 27 59% 39 0% 0
Men 27% 21 70% 55 4% 3
U.S. and Canada Women 31% 42 58% 78 10% 14
Men 35% 74 54% 113 11% 23
Employee turnover in 2022:"
atc_responsibility_american_tower_2022_sustainability_report.txt,"S
GRI Content Index
Talent Recruitment, Development and Retention
The American Tower material topic “Talent Recruitment, Development and Retention” corresponds to the GRI Standard “404: Training and Education.” For additional detail, see the Supporting Our People section.
GRI 3: Material Topics 2021
3-3 Management of material topics The Chief HR Officer, reporting to our CEO, and the regional and country-level heads of HR are ultimately responsible for human capital management. These HR leaders
oversee recruitment efforts, employee training and development, and compliance-related issues. Our Chief DEI Officer, reporting directly to our CEO, leads our DEI strategy."
atc_responsibility_american_tower_2022_sustainability_report.txt,"itment efforts, employee training and development, and compliance-related issues. Our Chief DEI Officer, reporting directly to our CEO, leads our DEI strategy.
These topics are primarily managed at the country level, with consideration given to local customs, norms and regulations. See our Equal Employment Opportunity Policy,
Equal Employment Opportunity Policy Statement and Diversity Statement for additional details. Progress on these topics is monitored regularly through a variety of methods,
including employee engagement surveys, benchmarking studies, and participation in training and development programs."
atc_responsibility_american_tower_2022_sustainability_report.txt,"ven to local customs, norms and regulations. See our Equal Employment Opportunity Policy,
Equal Employment Opportunity Policy Statement and Diversity Statement for additional details. Progress on these topics is monitored regularly through a variety of methods,
including employee engagement surveys, benchmarking studies, and participation in training and development programs.
GRI 404: Training and Education 2016
404-1 Average hours of training per year per See the Supporting Our People section.
employee"
atc_responsibility_american_tower_2022_sustainability_report.txt,"cal customs, norms and regulations. See our Equal Employment Opportunity Policy,
Equal Employment Opportunity Policy Statement and Diversity Statement for additional details. Progress on these topics is monitored regularly through a variety of methods,
including employee engagement surveys, benchmarking studies, and participation in training and development programs.
GRI 404: Training and Education 2016
404-1 Average hours of training per year per See the Supporting Our People section.
employee
404-2 Programs for upgrading employee skills and See the Supporting Our People section."
atc_responsibility_american_tower_2022_sustainability_report.txt,"CAN TOWER GOVERNANCE SOCIAL ENVIRONMENT AAPNPDE INNDDIICCEESS
GRI Content Index
Stakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard. For additional detail, see the Engaging With Key Stakeholders section.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• C EO listening sessions
• Company-wide surveys
• Employee town halls"
atc_responsibility_american_tower_2022_sustainability_report.txt,"OCIAL ENVIRONMENT AAPNPDE INNDDIICCEESS
GRI Content Index
Stakeholder Engagement
American Tower material topic “Stakeholder Engagement” does not correspond directly to a GRI Standard. For additional detail, see the Engaging With Key Stakeholders section.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• C EO listening sessions
• Company-wide surveys
• Employee town halls
• Employee hotlines"
atc_responsibility_american_tower_2022_sustainability_report.txt,"For additional detail, see the Engaging With Key Stakeholders section.
GRI 3: Material Topics 2021
3-3 Management of material topics Employees
Our employees are our greatest asset. We actively engage with and solicit feedback from them through:
• C EO listening sessions
• Company-wide surveys
• Employee town halls
• Employee hotlines
• E mployee resource groups (e.g., Women & Allies of American Tower Climb Higher)
• E mployee-led committees (e.g., DEI Advisory Council, local office green teams)
• Employee intranet"
atc_responsibility_american_tower_2022_sustainability_report.txt,"AAPNPDE INNDDIICCEESS
GRI Content Index
3-3 Management of material topics (continued) Local Communities
We are responsible participants in the communities where we operate, and we actively seek input and feedback from community members. In 2022, we completed over 2,000
engagements with local communities via the following channels:
• Meetings
• Surveys
• Newspaper and flyer announcements
• P hilanthropic initiatives, such as Digital Communities, Girls in ICT Day and the American Tower Foundation
• Employee volunteering"
atc_responsibility_american_tower_2022_sustainability_report.txt,"and compliance procedures to closely monitor our expenditures related to such matters.1
American Tower’s Global Public Affairs Committee annually reviews the costs and benefits of membership, as well as each organization’s alignment with our public policy
goals. The Board of Directors also regularly reviews our participation in trade associations and other tax-exempt organizations that engage in lobbying to determine whether
our involvement is consistent with the Company’s business objectives.
1. T he American Tower Code of Conduct states that, as a matter of policy, it does not make political contributions in support of any party or candidate in any election. The Code of Conduct prohibits any employee or director of American Tower from directing or requiring any other employee or"
atc_responsibility_american_tower_2022_sustainability_report.txt,"proximately 95% compared to similar diesel-generator- President and Chief Executive Officer
and personally, by offering training and development dependent, off-grid sites.
opportunities at all levels. Through talent, culture and
We have invested in a range of solutions to reduce
wellbeing initiatives, we aim to create a workplace that
greenhouse gas emissions across our operations, focusing
celebrates our teams, upskilling them and giving them
on improving energy efficiency and renewable energy
valuable opportunities to grow and thrive. As our workforce"
atc_responsibility_american_tower_2022_sustainability_report.txt,"nhouse gas emissions across our operations, focusing
celebrates our teams, upskilling them and giving them
on improving energy efficiency and renewable energy
valuable opportunities to grow and thrive. As our workforce
solutions, as we work to make progress against our science-
transitions to a post-pandemic new normal, we are offering
based emissions reductions targets. Our investments in
many programs to support new ways of working.
energy solutions, like solar arrays, on-site energy storage,
We believe a diverse and inclusive workforce sparks LED lighting and digital tools with artificial intelligence,"
atc_responsibility_american_tower_2022_sustainability_report.txt,"d using the market-based method per The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Progress against our climate targets is measured using the market-based method. AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SSUUSSTTAAIINNAABBIILLIITTYY AATT PRINCIPLES OF REPORTING
9 ABOUT AMERICAN TOWER PRESIDENT AND CEO AAMMEERRIICCAANN TTOOWWEERR GOVERNANCE SOCIAL ENVIRONMENT AND INDICES
Social
Aligning With the UN SDGs Our Approach 2022 Highlights
At American Tower, we believe in the importance of providing • P roudly employed a workforce"
atc_responsibility_american_tower_2022_sustainability_report.txt,"e operate by enabling access to the digital world and
• P romoted over 800 employees,
creating value for our business and stakeholders.
Aligning With the UNGC Principles an indication of the support and
• Foster and cultivate diversity, equity and inclusion (DEI) development the Company provides1
PRINCIPLE 3
through recruitment efforts, conscious inclusion training,
• P rovided performance reviews to 100%
Businesses should uphold the freedom of
employee resource groups and regional DEI councils
of our workforce, a key process in career"
atc_responsibility_american_tower_2022_sustainability_report.txt,"BILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
33 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Promoting DEI
Promoting DEI
UNGC PRINCIPLE 6
Businesses should uphold the elimination of discrimination
At American Tower, we are committed to creating a culture that values DEI throughout all
in respect of employment and occupation.
aspects of our business. Our inclusive philosophy guides how we interact with each other,
hire and manage our people, and serve our customers. We recognize a diverse workforce Recruiting, developing, empowering and retaining diverse employees"
atc_responsibility_american_tower_2022_sustainability_report.txt,"lusion
partnership with their teams.
Ensure an inclusive working environment
AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
35 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Promoting DEI
Supporting Historically Black Colleges
and Universities
American Tower is committed to advancing our partnerships with Historically
Black Colleges and Universities (HBCUs), at both the undergraduate and
graduate levels, to create opportunities for a more diverse workforce. We"
atc_responsibility_american_tower_2022_sustainability_report.txt,"ith an overall
infrastructure upgrades industry and support research collaboration.
commitment of $800,000
AMERICAN TOWER | 2022 SUSTAINABILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
36 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Promoting DEI
Promoting Gender Diversity
We believe gender diversity across our organization, including at the leadership level, ~30% American Tower is proud to have made progress on the
makes us a stronger company; as such, it has been a key focus of our DEI efforts. In development and promotion of women in our workforce."
atc_responsibility_american_tower_2022_sustainability_report.txt,"ILITY REPORTLETTER FROM OUR SUSTAINABILITY AT PRINCIPLES OF REPORTING
36 ABOUT AMERICAN TOWER PRESIDENT AND CEO AMERICAN TOWER GOVERNANCE SSOOCCIIAALL ENVIRONMENT AND INDICES
Promoting DEI
Promoting Gender Diversity
We believe gender diversity across our organization, including at the leadership level, ~30% American Tower is proud to have made progress on the
makes us a stronger company; as such, it has been a key focus of our DEI efforts. In development and promotion of women in our workforce.
early 2022, American Tower adopted the UN WEPs as part of our goal to promote of our workforce In 2022, approximately 30% of our workforce identified as"
atc_responsibility_american_tower_2022_sustainability_report.txt,"orce In 2022, approximately 30% of our workforce identified as
were women in 2022
gender equality and women’s empowerment in the workplace and community, and we women; however, women accounted for a proportionally
have facilitated several partnerships, programs and initiatives to enhance opportunities higher 35% of our global promotions. We also continued
35%
for women leaders. For example, our global employee resource group, Women & Allies efforts to increase representation of women across our
of American Tower Climb Higher (WAATCH), aims to cultivate an environment that of global promotions global workforce, with approximately 41% of new hires"
atc_responsibility_american_tower_2022_sustainability_report.txt,"h a
our procurement team in France has
diverse range of backgrounds.
committed to increasing the use of vendors
with a disability status.
Our Vendor Code of Conduct serves as an extension
of our DEI practices, and it explicitly prohibits
In the U.S., to raise awareness
discrimination in hiring and employment practices by
and recognize the important role
our vendors; it states our vendors must use their best
people with disabilities play in a
efforts to identify, promote and procure products and
diverse and inclusive workforce, we"
Axon_ForceForGood_Report_Nov2023.txt,"through evidence 49
Investing in the ecosystem: partnerships and
strategic investments 50
301 02 03 04 05 06
Contents
04
Making the right things easier and the
wrong things harder 52
Our responsibility for our products
Our approach to ethical design 54
Innovating through robotics 58
Environmental and sustainable practices 62
Supply chain 64
Data privacy and security 65
05
Cultivating sharp, adaptable, unstoppable
talent 70
Our responsibility to our people
Our people 72
Professional development
and employee recognition 74"
Axon_ForceForGood_Report_Nov2023.txt,"nology Core supporting principle:
to do its intended good while When inspired people respectfully
rigorously addressing come together, remarkable things
misuse concerns. can happen.
1501 02 03 04 05 06
Supporting the United Nations
Sustainable Development Goals
Axon's efforts support several United Nations DEVELOPMENT GOAL 5: GENDER EQUALITY
Sustainable Development Goals (SDGs). The 17 U.N.
SDGs represent a global call to action to address poverty, + Axon provides an environment that encourages
injustice and inequality; tackle climate change; and every employee to flourish. Through various on-site"
Axon_ForceForGood_Report_Nov2023.txt,"y building the public used in helping public safety tackle issues such as
safety operating system that leads the future of domestic violence.
modern policing. Axon’s philanthropic arm, Axon Aid,
provides mental health resources to first responders DEVELOPMENT GOAL 8: DECENT WORK AND
and communities at no cost to them. We have ECONOMIC GROWTH
created resources for first responders, their families
and communities that cover topics such as mental + Axon contributes to economic growth in many ways.
wellness, establishing support systems and building Whether it’s employee professional growth through"
Axon_ForceForGood_Report_Nov2023.txt,"A drone's aerial livestream can help identify families. It has grown its email subscribers and
victims in need of help and guide first responders to increased the available content to these users by
quickly bring aid. 30% in 2022.
In the aftermath of Hurricane Ian in October + PHILANTHROPY
2022, the Axon Aid team deployed by request to
assist local departments in immediate response and Axon Aid pays particular attention to the needs
recovery needs. of first responders through cash donations and
employee charity events. Law enforcement is"
Axon_ForceForGood_Report_Nov2023.txt,"e, Axon committed financial directly supports the families of recently deceased
resources to ensure the volunteer teams had the law enforcement agents. The Fallen Officer Fund
supplies needed to support officers impacted by this has supported more than 100 families to date and,
historic storm. in 2022, provided more than $30,000 in charitable
contributions to support families of fallen officers.
Additionally, Axon joined forces with local agencies The fund has coordinated more than 130 hours of
and the National Fraternal Order of Police to provide employee volunteer work."
Axon_ForceForGood_Report_Nov2023.txt,"cal testing is a critical component to the product
development process and is conducted at least one
to two years in advance of a product release. This is
SAFETY AT THE CORE
inclusive of cardiac testing, physiologic and metabolic
testing, effectiveness testing and probe wound profile
Product safety is truly core to Axon's mission, starting
testing, the latter three of which involve human
with the facilities in which our products are built. To
volunteers. We perform other testing on an as-needed
ensure manufacturing employee safety, Axon has"
Axon_ForceForGood_Report_Nov2023.txt,"siologic and metabolic
testing, effectiveness testing and probe wound profile
Product safety is truly core to Axon's mission, starting
testing, the latter three of which involve human
with the facilities in which our products are built. To
volunteers. We perform other testing on an as-needed
ensure manufacturing employee safety, Axon has
basis or when there’s a topic we would like studied for
implemented a formal management of change program
educational purposes, and we maintain proprietary raw
with dedicated safety specialists focused on employee"
Axon_ForceForGood_Report_Nov2023.txt,"d. After a natural disaster, the
of the time, they’ll reach a scene before an officer ground can become impassable. UAVs and UGVs are
can. Drones can help us clear a lot of calls and reduce increasingly supplementing search and rescue and
the number of officers needed per call. The future is helping to save lives.
bright for this technology in law enforcement.”
– Chad Karlewicz, Commander of Special
Operations, Renton Police Department
6101 02 03 04 05 06
Environmental and
sustainable practices
THE BIG PICTURE + Committing to reducing employee air travel and"
Axon_ForceForGood_Report_Nov2023.txt,"ISP provides overall guidance and
professionals to lead our efforts to protect Axon’s direction to ensure risks to Axon data and systems are
systems and customer data. We have dedicated and understood and effectively mitigated. The ISP also is
specialized teams for privacy, security compliance, consistent with applicable laws and regulations.
security engineering, product security, and security
operations. We also provide regular ongoing and
comprehensive security and privacy training to every
Axon employee, including rigorous phishing simulations"
Axon_ForceForGood_Report_Nov2023.txt,"ations
as they mature their digital evidence strategies.
Axon’s investments in data applications and
security go further than security. Axon has
partnered with Hatebase.org to automatically
detect offensive words in body camera video, and
agencies can customize additional relevant keywords
to their department. Supervisors always have
opportunity to review video with their own eyes
and make their own assessment.
69C01 ul02tiva03 tin04 g 05 06
05
sharp,
adaptable,
unstoppable
talent
Our people 72
Professional development and employee recognition 74"
Axon_ForceForGood_Report_Nov2023.txt,"ppable
talent
Our people 72
Professional development and employee recognition 74
Health, safety and wellness 77
Justice, equity, diversity and inclusion 79
70Cultivating sharp, adaptable, unstoppable talent
Our responsibility to our people
What we are responsible for
Attracting the best and brightest to our mission to promote diverse
approaches to problem-solving.
Core supporting principle
When inspired people respectfully come together, remarkable
things can happen.
Where we focus
+ Our people
+ Professional development and employee recognition"
Axon_ForceForGood_Report_Nov2023.txt,"le—it gets us to the right answer faster. We
strive to be the best version of ourselves and the best
company we can be, and that means being able to
offer and receive critical feedback.
+ JOIN FORCES
Act as one global team. Creating the future is
a team sport. When a company scales globally
with multiple technology stacks ranging from
wearables and cloud to electronic weapons, you
need teamwork. We're one global team committed
to an audacious vision.
7301 02 03 04 05 06
Professional development
and employee recognition"
Axon_ForceForGood_Report_Nov2023.txt,"t answer faster. We
strive to be the best version of ourselves and the best
company we can be, and that means being able to
offer and receive critical feedback.
+ JOIN FORCES
Act as one global team. Creating the future is
a team sport. When a company scales globally
with multiple technology stacks ranging from
wearables and cloud to electronic weapons, you
need teamwork. We're one global team committed
to an audacious vision.
7301 02 03 04 05 06
Professional development
and employee recognition
THE BIG PICTURE GUIDED BY DIRECT EMPLOYEE FEEDBACK"
Axon_ForceForGood_Report_Nov2023.txt,"template for managers to
our employees to flourish. actively seek feedback.
APPROACH + Company-wide AMA sessions with senior
leadership team.
Axon management values open communication and
transparency with employees. We believe in creating + Senior leadership-conducted roundtables
open forums for individuals to have their voice heard, across teams.
ask tough questions and constantly challenge our
leadership to think with our employees in mind. + Monthly pulse-check surveys to promote continuous
employee feedback."
Axon_ForceForGood_Report_Nov2023.txt,"nderscore
our culture for development, continuous improvement
and compliance. In 2022, the organization invested in
continuing to enhance the learning and development
function. This work enhanced our standard compliance
training to offer various learning opportunities, including
through LinkedIn Learning as well as engineering boot
camps for research and development professionals,
sales training, a new-manager development program,
LIIFT, and a Leadership Development Program.
7401 02 03 04 05 06
Employee survey results"
Axon_ForceForGood_Report_Nov2023.txt,"not only save lives, but they will
also have an opportunity to change the fabric and
the culture of our country and beyond. Providing our
employees the tools and resources to allow them to
thrive throughout isn’t optional—it is mission critical.”
ELIZABETH HART
EXECUTIVE VICE PRESIDENT, PEOPLE OPERATIONS, AXON
778801 02 03 04 05 06
Justice, equity,
diversity and Inclusion
THE BIG PICTURE Women at Axon, founded in 2018 was our pioneering
group, blazing the train for our ongoing JEDI initiatives.
Our vision is to build a more just, diverse, and inclusive As we transition from Affinity Groups (AGs) to Employee"
Axon_ForceForGood_Report_Nov2023.txt,"ace, including learning and development,
corporate social responsibility, community engagement,
supplier diversity, and more.
Axon is committed to fostering an environment
where employees feel a sense of community and can
engage with one another on a variety of commonalities.
We have committed to prioritizing diversity, equity and
inclusion and, as such, created a strategic JEDI plan to
be part of our regular business decisions, processes,
products and actions.
7901 02 03 04 05 06
WOMEN AT AXON
Mission–Increase employee engagement by providing opportunities for"
Axon_ForceForGood_Report_Nov2023.txt,"th our aspiration to cultivate a ultimate vision, bringing us closer to our moonshot goal,
performance-driven and inclusive culture. This culture, and creating a workplace that embodies the values of
rooted in our values and characterized by respect, justice, equity, diversity and inclusion.
results, and accountability, is integral to our pursuit of
the audacious moonshot goal we’ve set.
Our starting point to JEDI success includes several
strategic initiatives, beginning with the implementation
of an employee data metrics dashboard. This tool will"
Axon_ForceForGood_Report_Nov2023.txt,"arp, adaptable, unstoppable talent
Our responsibility to our people
What we are responsible for
Attracting the best and brightest to our mission to promote diverse
approaches to problem-solving.
Core supporting principle
When inspired people respectfully come together, remarkable
things can happen.
Where we focus
+ Our people
+ Professional development and employee recognition
+ Health, safety and wellness
+ Justice, equity, diversity and inclusion
7101 02 03 04 05 06
Our people
THE BIG PICTURE
Being a force for good starts with our workforce. Axon’s mission-driven focus attracts great people, and fostering"
Axon_ForceForGood_Report_Nov2023.txt,"or API-affiliated employees and allies
to share experiences and discuss ideas. We aim to empower API-affiliated
employees by providing career development opportunities, celebrating
accomplishments, educating the broader community about API culture, and
serving as advocates for the API community.
HISPANIC ORIGIN AND LATIN AMERICAN GROUP (HOLA)
M ission–Create development opportunities and awareness of the experiences
and contributions of the Hispanic/Latinx employees at Axon.
8001 02 03 04 05 06
Global workforce statistics"
Axon_ForceForGood_Report_Nov2023.txt,"aim to empower API-affiliated
employees by providing career development opportunities, celebrating
accomplishments, educating the broader community about API culture, and
serving as advocates for the API community.
HISPANIC ORIGIN AND LATIN AMERICAN GROUP (HOLA)
M ission–Create development opportunities and awareness of the experiences
and contributions of the Hispanic/Latinx employees at Axon.
8001 02 03 04 05 06
Global workforce statistics
Gender – Board of Gender – Total Gender – Leadership
Directors Workforce"
Axon_ForceForGood_Report_Nov2023.txt,"ing
accomplishments, educating the broader community about API culture, and
serving as advocates for the API community.
HISPANIC ORIGIN AND LATIN AMERICAN GROUP (HOLA)
M ission–Create development opportunities and awareness of the experiences
and contributions of the Hispanic/Latinx employees at Axon.
8001 02 03 04 05 06
Global workforce statistics
Gender – Board of Gender – Total Gender – Leadership
Directors Workforce
33%
44%
50% 50%
67% 56%
Women Men Women Men Women Men
*Excluding Rick Smith
Race/Ethnicity – Total Workforce"
Axon_ForceForGood_Report_Nov2023.txt,"tinx employees at Axon.
8001 02 03 04 05 06
Global workforce statistics
Gender – Board of Gender – Total Gender – Leadership
Directors Workforce
33%
44%
50% 50%
67% 56%
Women Men Women Men Women Men
*Excluding Rick Smith
Race/Ethnicity – Total Workforce
0.68%
20.12%
0.03%
3.09%
48.89%
12.13%
2.41%
12.22%
0.42%
American Indian or Alaska Native H ispanic/Latino Other
Black or African American Not Specified White
Native Hawaiian or Other Pacific Islander Two or More Races Asian
8101 02 03 04 05 06
How JEDI plays into our workforce"
Axon_ForceForGood_Report_Nov2023.txt,"ging us closer to our moonshot goal,
performance-driven and inclusive culture. This culture, and creating a workplace that embodies the values of
rooted in our values and characterized by respect, justice, equity, diversity and inclusion.
results, and accountability, is integral to our pursuit of
the audacious moonshot goal we’ve set.
Our starting point to JEDI success includes several
strategic initiatives, beginning with the implementation
of an employee data metrics dashboard. This tool will
enhance our ability to monitor workforce diversity,"
Brown-Forman_ESG_Scorecard_FY2022.txt,"2022
ESG SCORECARDFY22
COMPANY HIGHLIGHTS
Overview
Metrics
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
SUSTAINABILITY
GHG & Energy
Water
BOLD THINKING.
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"eve that it
for the resources we share with our is our duty to make sure our products
community, and nurturing what we are being marketed and enjoyed
Overview have for those who come after us. responsibly by encouraging awareness
PORTFOLIO and empowering mindful choices.
ALM Ce Ot Hri Ocs
L RESPONSIBILITY
ENVI
SUR
SO TN AIM NE AN BT IA LIL T Y RESP OA NL SC
I
BO IH
LIO
TL
Y
ENVIRONMENTAL
INVESTMENT GEOGRAPHY
SUSTAINABILITY
GHG & Energy
Water R E LC AO M TIM OU NN SITY DI &V IE NR CSI LT UY SION
EMPLOYEE RELATIONS PEOPLE"
Brown-Forman_ESG_Scorecard_FY2022.txt,"s the biggest potential to
contribute to the SDGs given our areas of expertise, strategic priorities, and ESG initiatives:OUR GLOBAL
FY22
Perspective
COMPANY HIGHLIGHTS
 Overview
Metrics
5,200 170+ 51% 25+
ALCOHOL RESPONSIBILITY EMPLOYEES COUNTRIES OF SALES PRODUCTION
on 6 continents where our outside the U.S. FACILITIES
brands our sold
around the world
ENVIRONMENTAL
SUSTAINABILITY
We employed approximately 5,200 people, excluding those employed on a part-time or temporary basis.
GHG & Energy
Top employee locations: U.S., Mexico, and U.K."
Brown-Forman_ESG_Scorecard_FY2022.txt,"en our areas of expertise, strategic priorities, and ESG initiatives:OUR GLOBAL
FY22
Perspective
COMPANY HIGHLIGHTS
 Overview
Metrics
5,200 170+ 51% 25+
ALCOHOL RESPONSIBILITY EMPLOYEES COUNTRIES OF SALES PRODUCTION
on 6 continents where our outside the U.S. FACILITIES
brands our sold
around the world
ENVIRONMENTAL
SUSTAINABILITY
We employed approximately 5,200 people, excluding those employed on a part-time or temporary basis.
GHG & Energy
Top employee locations: U.S., Mexico, and U.K.
Water
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"temporary basis.
GHG & Energy
Top employee locations: U.S., Mexico, and U.K.
Water
EMPLOYEE RELATIONS
& DIVERSITY
Turnover &
Supplier Diversity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22
COMPANY HIGHLIGHTS
Overview Diluted Earnings Per Share* Cash Distributed to Stakeholders**
 Metrics
1.88
1.73 1.72 1.74 3% <1%
ALCOHOL RESPONSIBILITY 1.48  Governments
 Investor
17%
 Employees
 Lenders
ENVIRONMENTAL 50%
 Communities
SUSTAINABILITY
30%
2018 2019 2020 2021 2022
GHG & Energy
Water
EMPLOYEE RELATIONS Total Shareholder Return vs. Index***"
Brown-Forman_ESG_Scorecard_FY2022.txt,"Informal Resolution of Complaint under reference 2201-C.3882.
ENVIRONMENTAL
SUSTAINABILITY
GHG & Energy
Alcohol Responsibility in Advertising (% media impressions LDA and above, U.S.)
Water
Brown-Forman complies with all relevant beverage alcohol advertising codes, including the DISCUS Code where at least 71.6% of the viewers of each media placement is
legal drinking age (LDA). Our buys on these compliant platforms generate cumulative total impressions of LDA viewers above 80% in each category.
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"sibility HereFY22
Greenhouse Gas Emissions* Energy Use**
Metric tons by direct, indirect, optional Total Use, MMBTUS***
COMPANY HIGHLIGHTS
10.7%
Overview
186,913 28.2% 3,250,388 3,180,886
Metrics 155,728 2,841,377
111,766
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
SUSTAINABILITY
2019 2020 2021 2019 2020 2021
 GHG & Energy
Water  Direct (Scope 1)  Coal  Fuel Oil  Biogas
 Indirect (Scope 2)  Wood  Electricity  Specialty Fuel
 Optional: Business Travel (Scope 3)  Natural Gas  Diesel  Other
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"llions)
COMPANY HIGHLIGHTS
933
Overview
913
Metrics
852 7%
ALCOHOL RESPONSIBILITY
2019 2020 2021
ENVIRONMENTAL
SUSTAINABILITY
* Water use includes water withdrawn for production use in the U.S., Mexico, and International owned production
operations. Data excludes field offices and vineyard irrigation use. Our 2021 water use reflects the sale of our
GHG & Energy
Canadian Mist operations as well as water efficiency improvements at our Jack Daniel Distillery and Casa
Herradura operations.
 Water
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ion use. Our 2021 water use reflects the sale of our
GHG & Energy
Canadian Mist operations as well as water efficiency improvements at our Jack Daniel Distillery and Casa
Herradura operations.
 Water
EMPLOYEE RELATIONS
Read More About Our
& DIVERSITY Water Use Here
Turnover &
Supplier Diversity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22 Global Voluntary Turnover*
9.8%
COMPANY HIGHLIGHTS
7.2% 6.8%
Overview
Metrics
ALCOHOL RESPONSIBILITY 2020 2021 2022
ENVIRONMENTAL Read More About Our
Employee Engagement Here"
Brown-Forman_ESG_Scorecard_FY2022.txt,"lery and Casa
Herradura operations.
 Water
EMPLOYEE RELATIONS
Read More About Our
& DIVERSITY Water Use Here
Turnover &
Supplier Diversity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22 Global Voluntary Turnover*
9.8%
COMPANY HIGHLIGHTS
7.2% 6.8%
Overview
Metrics
ALCOHOL RESPONSIBILITY 2020 2021 2022
ENVIRONMENTAL Read More About Our
Employee Engagement Here
SUSTAINABILITY
* Turnover for full-time hourly and salaried, regular and expats. Includes voluntary retirements.
GHG & Energy
Water
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"2019 2020 2021
Recordable injuries, including any work-related accident involving, global production, our global supply chain
and Louisville corporate personnel, have decreased over the past four years as a result of capital investments
ENVIRONMENTAL
and continuous improvement to address specific injuries and illnesses in the production environment. We have
experienced no work-related fatalities globally during this time period.
SUSTAINABILITY
GHG & Energy
Water Global Workforce (in percent)
1%
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ries and illnesses in the production environment. We have
experienced no work-related fatalities globally during this time period.
SUSTAINABILITY
GHG & Energy
Water Global Workforce (in percent)
1%
EMPLOYEE RELATIONS
7%
18% 14%
& DIVERSITY
37%
Turnover & Job Type* Location** 51% Age** 62% Gender
24% 63%
Supplier Diversity
31%
 Safety & Workforce
92%
Gender & Diversity
 Full-time  U.S.  30-50  Male
 Temp/Seasonal  International  Over 50  Female
COMMUNITY  Part-time  Mexico  Under 30
* Full Time and Part Time categories include regular and expat employees. Temporary/seasonal includes all other employee types besides regular and expats."
Brown-Forman_ESG_Scorecard_FY2022.txt,"s all other employee types besides regular and expats.
** Includes regular and expats, salaried and hourly, full-time employees.
Numbers may not add to 100% due to rounding.
Read More About Our D&I
Commitments HereFY22
COMPANY HIGHLIGHTS
Overview
Metrics
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
U.S. WORKFORCE DEMOGRAPHICS*
SUSTAINABILITY Percentage of Total Employees
GHG & Energy BLACK OR
CATEGORY FEMALE MALE WHITE AFRICAN
OH RIS LP AA TN INIC
O ASIAN OTHER
Water AMERICAN
BOARD 27% 73% 91% 9% — — —
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"LITY Percentage of Total Employees
GHG & Energy BLACK OR
CATEGORY FEMALE MALE WHITE AFRICAN
OH RIS LP AA TN INIC
O ASIAN OTHER
Water AMERICAN
BOARD 27% 73% 91% 9% — — —
EMPLOYEE RELATIONS
EXECUTIVE LEADER 34% 66% 79% 10% 6% 5% —
& DIVERSITY
BUSINESS LEADER 47% 53% 80% 9% 8% 3% —
Turnover &
Supplier Diversity LEADER 47% 53% 83% 7% 5% 2% 3%
Safety & Workforce PROFESSIONAL 64% 36% 78% 10% 6% 3% 3%
 Gender & Diversity PRODUCTION 18% 82% 78% 15% 5% — 2%
TEMPORARY/SEASONAL 70% 30% 74% 10% 10% 3% 4%
COMMUNITY * Diversity data of all employees working in the U.S. as of April 30, 2022. Ethnicity data is based on self-disclosed employee information. Board data includes all Directors"
Brown-Forman_ESG_Scorecard_FY2022.txt,"races, Native American, Alaskan Indian, or categories left blank.
Read More About Our D&I
Commitments Here$6.5M
FY22 Giving by Focus Area
(Brown-Forman Corporate and Foundation)
BROWN-FORMAN
COMPANY HIGHLIGHTS CORPORATE CHARITABLE Empower Responsible
Enhance Arts
and Sustainable Living
CONTRIBUTIONS and Cultural 19% 21%
Overview
Living
Metrics
$4.0M
ALCOHOL RESPONSIBILITY
60%
BROWN-FORMAN FOUNDATION
Ensure Essential
ENVIRONMENTAL CONTRIBUTIONS Living Standards
SUSTAINABILITY
GHG & Energy
Water
EMPLOYEE RELATIONS"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ENTAL CONTRIBUTIONS Living Standards
SUSTAINABILITY
GHG & Energy
Water
EMPLOYEE RELATIONS
Read More About Our Commitment
& DIVERSITY
to Community Relations Here
Turnover &
Supplier Diversity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22 Forward-Looking Statement Information. Certain matters discussed executive leadership, employees, Board of Directors, family stockholders,
in this report contain statements, estimates, and projections that are operations, business performance, or prospects
“forward- looking statements” as defined under U.S. federal securities • Failure to attract or retain key executive or employee talent"
Brown-Forman_ESG_Scorecard_FY2022.txt,"sales, temporarily
Water disrupt the marketing or sale of our products, or result in higher fixed costs and the unpredictability and suddenness with which they can occur
• Decline in the social acceptability of beverage alcohol in significant markets
• Disruption of our distribution network or inventory fluctuations in our
products by distributors, wholesalers, or retailers • Significant additional labeling or warning requirements or limitations on
availability of our beverage alcohol products
EMPLOYEE RELATIONS • Changes in consumer preferences, consumption, or purchase patterns –"
Brown-Forman_ESG_Scorecard_FY2022.txt,"2022
ESG SCORECARDFY22
COMPANY HIGHLIGHTS
Overview
Metrics
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
SUSTAINABILITY
GHG & Energy
Water
BOLD THINKING.
EMPLOYEE RELATIONS
& DIVERSITY INNOVATIVE IDEAS.
Turnover &
Diverse Points of View.
Supplier Diversity
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ITY DI &V IE NR CSI LT UY SION
EMPLOYEE RELATIONS PEOPLE
& DIVERSITY COMMITTED TO OUR NEIGHBORS. COMMITTED TO PEOPLE.
INVESTING IN OUR BEST SPIRIT. MANY SPIRITS. ONE B-F.
Turnover & We’re committed to doing our part in the Our deep familial roots inspire our
communities that share the places we commitment to people. We believe
Supplier Diversity
call home. Whether it’s a matter of everyone should get what is needed
sustainability, alcohol responsibility, or most — a sense of belonging, of being
Safety & Workforce community engagement, there’s a reason heard, of counting. Whoever you are,"
Brown-Forman_ESG_Scorecard_FY2022.txt,"iatives:OUR GLOBAL
FY22
Perspective
COMPANY HIGHLIGHTS
 Overview
Metrics
5,200 170+ 51% 25+
ALCOHOL RESPONSIBILITY EMPLOYEES COUNTRIES OF SALES PRODUCTION
on 6 continents where our outside the U.S. FACILITIES
brands our sold
around the world
ENVIRONMENTAL
SUSTAINABILITY
We employed approximately 5,200 people, excluding those employed on a part-time or temporary basis.
GHG & Energy
Top employee locations: U.S., Mexico, and U.K.
Water
EMPLOYEE RELATIONS
& DIVERSITY
Turnover &
Supplier Diversity
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"rsity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22
COMPANY HIGHLIGHTS
Overview Diluted Earnings Per Share* Cash Distributed to Stakeholders**
 Metrics
1.88
1.73 1.72 1.74 3% <1%
ALCOHOL RESPONSIBILITY 1.48  Governments
 Investor
17%
 Employees
 Lenders
ENVIRONMENTAL 50%
 Communities
SUSTAINABILITY
30%
2018 2019 2020 2021 2022
GHG & Energy
Water
EMPLOYEE RELATIONS Total Shareholder Return vs. Index***
& DIVERSITY
 Brown-Forman  S&P 500
$215
Turnover &
$195
Supplier Diversity
$174
Safety & Workforce $153 $147 $189 $190"
Brown-Forman_ESG_Scorecard_FY2022.txt,"(% media impressions LDA and above, U.S.)
Water
Brown-Forman complies with all relevant beverage alcohol advertising codes, including the DISCUS Code where at least 71.6% of the viewers of each media placement is
legal drinking age (LDA). Our buys on these compliant platforms generate cumulative total impressions of LDA viewers above 80% in each category.
EMPLOYEE RELATIONS
& DIVERSITY TV Radio Magazine Newspaper Digital
Turnover &
Supplier Diversity 91 91 91 87 86 87 96 92 91 93 94 93 90 90 89
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"er details of our greenhouse gas inventory are available on the CDP website.
Turnover &
Direct emissions include use of fuel for stationary and mobile uses, including biogas, natural gas, and diesel. Indirect emissions include use of electricity. Optional
Supplier Diversity
emissions are emissions associated with business travel. For direct emissions from use of fuels, we continue to invest in projects such as fuel switching and energy
efficiency, aimed at lowering our greenhouse gas footprint.
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ENVIRONMENTAL
SUSTAINABILITY
* Water use includes water withdrawn for production use in the U.S., Mexico, and International owned production
operations. Data excludes field offices and vineyard irrigation use. Our 2021 water use reflects the sale of our
GHG & Energy
Canadian Mist operations as well as water efficiency improvements at our Jack Daniel Distillery and Casa
Herradura operations.
 Water
EMPLOYEE RELATIONS
Read More About Our
& DIVERSITY Water Use Here
Turnover &
Supplier Diversity
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ere
Turnover &
Supplier Diversity
Safety & Workforce
Gender & Diversity
COMMUNITYFY22 Global Voluntary Turnover*
9.8%
COMPANY HIGHLIGHTS
7.2% 6.8%
Overview
Metrics
ALCOHOL RESPONSIBILITY 2020 2021 2022
ENVIRONMENTAL Read More About Our
Employee Engagement Here
SUSTAINABILITY
* Turnover for full-time hourly and salaried, regular and expats. Includes voluntary retirements.
GHG & Energy
Water
EMPLOYEE RELATIONS
Supplier Diversity, U.S.
& DIVERSITY
2022 GOAL
 Turnover &
14% 16%
Supplier Diversity
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"0 0 0
ALCOHOL RESPONSIBILITY 2017 2018 2019 2020 2021
Recordable injuries, including any work-related accident involving, global production, our global supply chain
and Louisville corporate personnel, have decreased over the past four years as a result of capital investments
ENVIRONMENTAL
and continuous improvement to address specific injuries and illnesses in the production environment. We have
experienced no work-related fatalities globally during this time period.
SUSTAINABILITY
GHG & Energy
Water Global Workforce (in percent)"
Brown-Forman_ESG_Scorecard_FY2022.txt,"Louisville corporate personnel, have decreased over the past four years as a result of capital investments
ENVIRONMENTAL
and continuous improvement to address specific injuries and illnesses in the production environment. We have
experienced no work-related fatalities globally during this time period.
SUSTAINABILITY
GHG & Energy
Water Global Workforce (in percent)
1%
EMPLOYEE RELATIONS
7%
18% 14%
& DIVERSITY
37%
Turnover & Job Type* Location** 51% Age** 62% Gender
24% 63%
Supplier Diversity
31%
 Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt," 30-50  Male
 Temp/Seasonal  International  Over 50  Female
COMMUNITY  Part-time  Mexico  Under 30
* Full Time and Part Time categories include regular and expat employees. Temporary/seasonal includes all other employee types besides regular and expats.
** Includes regular and expats, salaried and hourly, full-time employees.
Numbers may not add to 100% due to rounding.
Read More About Our D&I
Commitments HereFY22
COMPANY HIGHLIGHTS
Overview
Metrics
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
U.S. WORKFORCE DEMOGRAPHICS*"
Brown-Forman_ESG_Scorecard_FY2022.txt,".
Read More About Our D&I
Commitments HereFY22
COMPANY HIGHLIGHTS
Overview
Metrics
ALCOHOL RESPONSIBILITY
ENVIRONMENTAL
U.S. WORKFORCE DEMOGRAPHICS*
SUSTAINABILITY Percentage of Total Employees
GHG & Energy BLACK OR
CATEGORY FEMALE MALE WHITE AFRICAN
OH RIS LP AA TN INIC
O ASIAN OTHER
Water AMERICAN
BOARD 27% 73% 91% 9% — — —
EMPLOYEE RELATIONS
EXECUTIVE LEADER 34% 66% 79% 10% 6% 5% —
& DIVERSITY
BUSINESS LEADER 47% 53% 80% 9% 8% 3% —
Turnover &
Supplier Diversity LEADER 47% 53% 83% 7% 5% 2% 3%
Safety & Workforce PROFESSIONAL 64% 36% 78% 10% 6% 3% 3%"
Brown-Forman_ESG_Scorecard_FY2022.txt,"ving by Focus Area
(Brown-Forman Corporate and Foundation)
BROWN-FORMAN
COMPANY HIGHLIGHTS CORPORATE CHARITABLE Empower Responsible
Enhance Arts
and Sustainable Living
CONTRIBUTIONS and Cultural 19% 21%
Overview
Living
Metrics
$4.0M
ALCOHOL RESPONSIBILITY
60%
BROWN-FORMAN FOUNDATION
Ensure Essential
ENVIRONMENTAL CONTRIBUTIONS Living Standards
SUSTAINABILITY
GHG & Energy
Water
EMPLOYEE RELATIONS
Read More About Our Commitment
& DIVERSITY
to Community Relations Here
Turnover &
Supplier Diversity
Safety & Workforce"
Brown-Forman_ESG_Scorecard_FY2022.txt,"systems or those of our suppliers, customers, or direct and indirect
or other on-premise declines; shifts in demographic or health and wellness
business partners, or failure to comply with personal data protection laws
Supplier Diversity trends; or unfavorable consumer reaction to new products, line extensions,
package changes, product reformulations, or other product innovation • Our status as a family “controlled company” under New York Stock Exchange
rules, and our dual-class share structure
Safety & Workforce • Production facility, aging warehouse, or supply chain disruption"
cdw-2023-esg-report-final.txt,"and office locations, including alerts about external
events such as natural hazards, transportation disruptions and security concerns.
2023 ESG REPORT 33Introduction People Planet Partnerships & Portfolio Practices
A Holistic Approach to Wellbeing
CDW’s holistic approach to wellbeing is rooted in our coworker-driven culture. We offer resources and benefits
for our coworkers that address four dimensions of wellness: Physical, Emotional, Financial and Social.
Physical Emotional Financial Social
▪ Educational resources ▪ Employee Assistance Plan ▪ Market-competitive total ▪ Various internal communication"
cdw-2023-esg-report-final.txt,"ognition awards
our internal messaging platform. Harold
and informed decision-making to create an
exemplify our commitment to collective success.
either responds with a solution or
optimal workplace experience.
promptly routes tickets to the relevant
EMPOWERING COWORKER SUCCESS AND teams. The chatbot also proactively
OPERATIONAL EXCELLENCE shares important information such as
cyber threat alerts. Harold operates
Our Coworker Success (CWS) model, introduced in 24/7 and can manage multiple issues
2023, equips our workforce with the tools and support simultaneously, ensuring an exceptional"
cdw-2023-esg-report-final.txt,"0-week, paid summer
internship program. Our inaugural cohort
completed their second summer internship
in 2023, and our second cohort will begin a
new, one-year program in May 2024. We have
awarded scholarships to 50 students from the
Thurgood Marshall College Fund’s participating
publicly funded universities, covering the
2022–2023 and 2023–2024 academic years.
Of the students in our first LEP cohort, 100%
who were offered a full-time position when
the program ended signed offer letters to join
CDW’s full-time workforce."
cdw-2023-esg-report-final.txt,"w and current empowered to overcome any barriers they within the community.
wellbeing, we strive to create a workplace
veterans within CDW. face. We strive to enable everyone to be the
Overall, love and equality win. where each coworker can thrive both
best version of themselves while at work.
personally and professionally.
Through compassion, empathy, and open
mindedness, we can make a difference.
2023 ESG REPORT 26Introduction People Planet Partnerships & Portfolio Practices
OUR COMMITMENT TO
AN INCLUSIVE WORKFORCE"
cdw-2023-esg-report-final.txt,"ce is underpinned by our
foundational beliefs that everyone should have equitable opportunities and
be able to experience the unlimited possibilities that technology unlocks.
As a leader in the technology sector, we believe it’s our responsibility to do
what we can to make this a reality by: We seek to create sustainable and equitable change in the world by:
engaging empowering elevating
▪ Providing access to technology
our coworkers our communities our impact
▪ Supporting education initiatives
▪ Building a workforce reflective of our world"
cdw-2023-esg-report-final.txt,"o create sustainable and equitable change in the world by:
engaging empowering elevating
▪ Providing access to technology
our coworkers our communities our impact
▪ Supporting education initiatives
▪ Building a workforce reflective of our world
With a steadfast focus on digital equity, we continue to drive meaningful
progress across the strategic imperatives of our global Social Impact We will continue to advance digital equity by:
program by doing the following:
Providing Supporting Building a
access education workforce"
cdw-2023-esg-report-final.txt,"equity.
We know that we cannot do this work in isolation. Through
collective-impact, long-term thinking and leading with our values,
we will continue to address digital equity by:
▪ Providing access: We help ensure people have access to the
technology they need, including computers, software and
internet connectivity.
▪ Supporting education: We power initiatives that excite learners
about science, technology, engineering and mathematics (STEM), as
well as computer science and digital literacy.
▪ Building our workforce: We’re committed to diversity and inclusion"
cdw-2023-esg-report-final.txt,"NG DIGITAL EQUITY
▪ All Star Code workshop: CDW has supported All Star Code,
a nonprofit committed to closing the racial opportunity gap
in tech, since 2021 through funding its core programming,
serving as a host site partner of the Summer Intensive
At CDW, we are committed to addressing digital equity. Our digital
Program and providing laptops, hotspots, headphones and
inclusion efforts focus on providing access, supporting education and
software so students bear no financial burden. In summer
building the workforce of the future."
Cintas_2022_ESGReport.txt,"man rights protected INTERNATIONAL LABOUR
work is being performed if that’s higher than 16. The use
by law or statute.
ORGANIZATION CONVENTIONS of child labor by Cintas’ Global Supply Chain Suppliers
We aim to create opportunities for individuals to is strictly prohibited, and they must only employ workers
The Human Rights Policy in our Vendor Code
challenge themselves while working in supportive who meet the minimum age requirements in their area.
of Conduct incorporates many key International
environments that afford each worker an opportunity"
Cintas_2022_ESGReport.txt,"FORCED LABOR
or trafficked labor; discrimination and harassment; We strictly prohibit the use of prison labor, forced
and right to organize and workplace freedom. labor, enslaved labor, or trafficked labor. Our Vendor
Code of Conduct also prohibits our suppliers from
We also support international human rights
knowingly utilizing or purchasing materials or products
principles, including the United Nations
manufactured from companies that use these types of
Declaration of Human Rights, the United
labor, or from companies requiring any worker to remain"
Cintas_2022_ESGReport.txt,"rgain.
AT-RISK LOCATIONS
Cintas has not identified any locations under our
operation where our employee-partners’ rights to
freedom of association and collective bargaining may
be at risk. Our Vendor Code of Conduct also requires
our Global Supply Chain Supplier operations to respect
these conventions.
MINIMUM NOTICE
In cases where operational changes are set to occur, we
make every effort to provide as much notice as possible
to our affected operations, given the scope of the
imminent changes.
In cases where a Worker Adjustment and Retraining"
Cintas_2022_ESGReport.txt,"onal health and safety management system Social > Safety and Health > Occupational Safety and Health Management System
403-02 Hazard identification, risk assessment, and incident investigation Social > Safety and Health > Annual CHSMS Evaluations
Social > Safety and Health > Ongoing Monitoring
403-03 Occupational health services Social > Compensation and Benefits > Employee-Partner Benefits
Social > Safety and Health > Occupational Health Initiatives
Social > Safety and Health > Ergo Excellence
403-04 Worker participation, consultation, and communication on occupational health Social > Safety and Health > Employee-Partners Central To Identifying Concerns"
Cintas_2022_ESGReport.txt,"Social > Compensation and Benefits > Employee-Partner Benefits
Social > Safety and Health > Occupational Health Initiatives
Social > Safety and Health > Ergo Excellence
403-04 Worker participation, consultation, and communication on occupational health Social > Safety and Health > Employee-Partners Central To Identifying Concerns
and safety Social > Safety and Health > Awareness, Training and Development
Social > Safety and Health > Ergo Excellence
Social > Safety and Health > Commitment to VPP
403-05 Worker training on occupational health and safety Social > Safety and Health > Awareness, Training and Development"
Cintas_2022_ESGReport.txt,"s
Social > Safety and Health > Ergo Excellence
403-04 Worker participation, consultation, and communication on occupational health Social > Safety and Health > Employee-Partners Central To Identifying Concerns
and safety Social > Safety and Health > Awareness, Training and Development
Social > Safety and Health > Ergo Excellence
Social > Safety and Health > Commitment to VPP
403-05 Worker training on occupational health and safety Social > Safety and Health > Awareness, Training and Development
403-06 Promotion of worker health Social > Compensation and Benefits > Employee-Partner Benefits"
Cintas_2022_ESGReport.txt,"ements or to otherwise update
any forward-looking statements, whether as a result of new information or
to reflect events, circumstances, or any other unanticipated developments
arising after the date on which such statements are made, except otherwise
as required by law. The risks and uncertainties described herein are not
44.2% Developed -7.5% the only ones we may face. Additional risks and uncertainties presently not
known to us or that we currently believe to be immaterial may also harm our
of our employee-partners a new internal Environmental, Lowered our emissions intensity business. Investors should not interpret the disclosure of any risk factor to"
Cintas_2022_ESGReport.txt,"In this ESG Report you will find an expanded depth 16 Impact Priorities 59 Compensation and Benefits
and breadth to our reporting. The report also 17 Our Market Advantage: Sustainable Products 63 Performance and Advancement
and Services
incorporates new data and information relating to: 65 Training and Development
18 CORNERSTONE: The Spirit Is the Difference
68 SPOTLIGHT: PBRGs: Supporting Partner Development
• Climate: Emissions and Energy 20 CORNERSTONE: Operational Excellence and Reliability
69 Employee-Partner Engagement"
Cintas_2022_ESGReport.txt,"tner Development
• Climate: Emissions and Energy 20 CORNERSTONE: Operational Excellence and Reliability
69 Employee-Partner Engagement
• Water Stewardship 70 Safety and Health
ENVIRONMENT
• Chemical Use and Safety 74 SPOTLIGHT: Ergo Excellence
24 Overview and Approach 75 Global Supply Chain and Supplier Relations
• Diversity, Equity & Inclusion
26 Climate, Emissions, and Energy 77 Supplier Diversity
• Safety and Health 28 SPOTLIGHT: SmartTruck Routing Cintas 78 Community Impact and Philanthropy
• Employee-Partner Development into the Future 82 SPOTLIGHT: Cintas Partner Assistance Fund"
Cintas_2022_ESGReport.txt,"er information about which represents the first complete fiscal year following Our environmental performance has demonstrated
data and calculations referenced in this report and are the full integration of G&K Services, which we acquired continued intensity improvements since our FY’19
detailed in the Appendix: Citations, References, and during FY’17. base year. However, the COVID-19 pandemic’s
Annotations; and Reporting Notes and Methodologies. full effect on our performance and data cannot be
Our references to employee-partners1 represent all of"
Cintas_2022_ESGReport.txt,"cleaning supplies
We provide a host of products and services to help
aggregate environmental impact of our products and businesses open their doors with confidence. Our • First aid and safety products
services, promote sustainability and a common respect,
company portfolio includes a range of environmentally • Stocked workplace first aid cabinets
and manage our business in a responsible, ethical way.
and socially focused products that promote a cleaner
• Automated external defibrillators (AEDs)
Approximately 43,000 employee-partners service our environment, an ethical supply chain, and the safety"
Cintas_2022_ESGReport.txt,"Cintas common
stock is traded on the Nasdaq Global Select Market
$7.85B $1.24B +1M
under the symbol CTAS. Cintas is a component of both
the Standard & Poor’s 500 Index and the Nasdaq-100
revenue net income customers
Index. The company has been ranked on the last
five editions of the Fortune 500 list, making every list
since 2018.
For more information, visit cintas.com, or follow us
on our corporate social media accounts on LinkedIn,
Facebook, Twitter, Instagram, and TikTok.
+11,000 ~43,000 462
local delivery routes employee-partners operational facilities"
Cintas_2022_ESGReport.txt,"a handbook describing how we run
“Dick” Farmer’s new uniform rental programs launched. our business.
The programs utilized an exclusive new fabric that
WHO WE ARE Over time, Dick’s central themes of collaboration and
extended the life of work uniforms, and cleaned them
common respect – for both our people and the world
in more efficient processes than families could at
around us – have led to:
home. On top of the customer-centric service model he
ESG concepts have been engrained in our company
developed, Dick’s uniform rental concept anchored the • Fantastic employee-partner engagement,"
Cintas_2022_ESGReport.txt,"ency, flexibility, and
speed to accommodate customers as issues or concerns AWARDS,
arise, keeping them always Ready for the Workday®,
LOOK AT CINTAS
no matter what. And our dedication to positive
HONORS, AND
discontent means we always work together to strive to
be better than we are now and commit ourselves to
ESG principles are engrained in our past, integral to
ever greater impact. ACHIEVEMENTS
our present, and destined to drive our business in the
future. At Cintas, we:
REFRESHING OUR BRAND
• Focus on maximizing value for our key stakeholders Recently we have begun to shift our focus more to why Cintas and its employee-partners strive to operate"
Cintas_2022_ESGReport.txt,"ludes a 74 line-
provide customers with the health and safety products conduct their business in safer, cleaner environments. item assessment of the entire facility, including:
and services needed to remain open for business,
Another important benefit Cintas has provided its • Evaluation of the disinfection efficiency of
especially those in essential service industries. Cintas’
customers is consistency. Cintas customers have laundry chemicals
structure and agility buoyed our pivot to meet these
received consistent service visits, and our employee-"
Cintas_2022_ESGReport.txt,"Environmental Year in Review 18 CORNERSTONE: The Spirit Is the Difference
13 Our Path to Net Zero 20 CORNERSTONE: Operational Excellence
14 SPOTLIGHT: EV Pilot Hits the Road and Reliability
15 Stakeholder Engagement
9CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
A MESSAGE FROM We’ve placed a heavy emphasis on technology’s integration
and influence on our business. It’s helped us to create
tremendous efficiencies and to improve our customers’,
OUR CEO
shareholders’, and employee-partners’ experiences, as"
Cintas_2022_ESGReport.txt,"bout how far we have come and eager to As we move forward in our ESG Journey, we will continue
see how our ESG strategy develops in the coming years. to build on our company’s sustainable business model and
It’s also a key reason we’re confident in our collective maintain our core focuses on our people, our customers, our
ability to pursue initiatives that advance our ESG Journey. shareholders, and our communities to grow our company
and create lasting impact. To do so, we will continue to rely
Our employee-partners have embraced an important"
Cintas_2022_ESGReport.txt,"a better
greater things are ahead for us. tomorrow for us all.
We’ve begun expressing Cintas’ ambitions in this space We’re proud of the work we’ve done to advance our ESG
as “A Shared Drive for Better.” With ESG priorities ambitions. This work has created better outcomes for
helping influence our strategic decisions, we have the us all, and we know our continued attention to affecting
opportunity to contribute to a better tomorrow for us more sustainable solutions is critical for our continued
all: Cintas, our employee-partners, our customers, our success. And we believe gaining our stakeholders’"
Cintas_2022_ESGReport.txt,"technology can support.
President and CEO
10CCIINNTTAASS 22002222 EESSGG RREEPPOORRTT AABBOOUUTT CCIINNTTAASS OOUURR EESSGG JJOOUURRNNEEYY EENNVVIRIROONNMMEENNTATL SSOOCCIIAALL GGOOVVEERRNNAANNCCEE AAPPPPEENNDDIIXX
A MESSAGE We have also continued to make strides in our safety
journey, lowering our total recordable incident rate to
1.61 and increasing the number of locations awarded
FROM OUR VICE
Star Certification under OSHA’s Voluntary Protection
Program to 127. We have also launched two new
PRESIDENT OF resource groups: IMPACT for our LGBTQ+ employee-"
Cintas_2022_ESGReport.txt,"in raw material usage,
energy, water, and waste – than the alternatives. But
OFFICER we still strive to do better and to develop business
processes that are even more efficient. As we proceed
into the future, we will continue to evaluate ways to
At Cintas, we are driven to help sustain the world we reduce our impact on the environment.
live in, to build on our culture of respect and inclusion,
As we advance in these areas, we will also continue
and to hold ourselves accountable with world-class
to enhance the experiences of our employee-partners"
Cintas_2022_ESGReport.txt,"even more efficient. As we proceed
into the future, we will continue to evaluate ways to
At Cintas, we are driven to help sustain the world we reduce our impact on the environment.
live in, to build on our culture of respect and inclusion,
As we advance in these areas, we will also continue
and to hold ourselves accountable with world-class
to enhance the experiences of our employee-partners
business practices. This approach permeates everything
and continue to develop new products and services
we do as a company. We encourage our employee-"
Cintas_2022_ESGReport.txt,"r shared drive for better.
12CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PATH PROGRAM FOCUSES
We believe there are three key functional business areas
TO NET ZERO we must address to remain on our Path to Net Zero.
In September 2021, Cintas announced its ambition
to achieve Net Zero GHG emissions by 2050.
When the company made this announcement, it
didn’t do so lightly. Cintas understood the decision
meant a reimagined operational framework that
would impact multiple generations of employee-"
Cintas_2022_ESGReport.txt,"leet to gather lighting, can help further reduce
Purchased goods and
services, commuting, data to optimize routes and our our energy use
and business travel number of commercial vehicles
13CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SPOTLIGHT
EV PILOT HITS • Work with original equipment manufacturers By focusing our pilot on a limited number of diverse
(OEMs) to identify opportunities, technologies, locations, we are optimizing both the training of
and use cases that can maximize EV utilization employee-partners and our charging infrastructure."
Cintas_2022_ESGReport.txt,"e engage
Our Principal Objective clearly identifies the three We are civically active in the communities we serve, and
with each of these groups. Cintas representatives
groups we consider our company’s primary stakeholders: we strive to be respected for our broader contributions
interact with counterparts from these groups to respond
as an employer, community member, and partner.
• Customers to inquiries, provide proactive updates about our
business, and solicit and receive feedback on specific
• Employee-partners Philanthropic, Not-For-Profit,"
Cintas_2022_ESGReport.txt,"years, ESG themes
and Non-Governmental Organizations
• Shareholders have become more prominent discussion points in
These relationships allow us to give back in meaningful
these interactions.
Each is equal at Cintas, and our Board of Directors ways, and to learn from and network with other
formally adopted the Principal Objective as a foundation businesses, thought leaders, and community stewards.
for our company’s decision-making in 1979. OUR STAKEHOLDER GROUPS
Government and Regulatory Bodies
Employee-Partners"
Cintas_2022_ESGReport.txt,"Directors ways, and to learn from and network with other
formally adopted the Principal Objective as a foundation businesses, thought leaders, and community stewards.
for our company’s decision-making in 1979. OUR STAKEHOLDER GROUPS
Government and Regulatory Bodies
Employee-Partners
“We will exceed our customers’ We take an active role in understanding the prevailing
We continue to identify opportunities to educate priorities in the communities we serve and help to
expectations to maximize the
and inform our employee-partners about ESG inform policy-makers about Cintas’ economic and"
Cintas_2022_ESGReport.txt,"ers are actively engaged in ESG-related
topics, and many interactions include discussions
about our strategy, initiatives, and ambitions in these
areas. We work together to identify opportunities
to share our efforts with other shareholder and
financial organizations.
15CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
IMPACT The results of this assessment helped us identify our SOCIAL
ESG Impact Priorities, which include:
• Diversity, Equity & Inclusion
PRIORITIES • Employee-partner development"
Cintas_2022_ESGReport.txt,"better understand what topics
• Reducing waste As we continue along our ESG Journey, we expect
matter most to our stakeholders.
to identify and develop strategy, programming, and
The assessment used information and findings from Our three environmental Impact Priorities appear key initiatives to further support efforts relating to our
a variety of sources to help determine our Impact separate, but their impacts are intertwined within the Impact Priorities. Our initial focus on these issues will
Priorities, including considerations raised by employee- context of our sustainable business model. By focusing help us identify opportunities, create timebound goals,"
Cintas_2022_ESGReport.txt,"DIX
OUR MARKET ADVANTAGE:
SUSTAINABLE PRODUCTS AND SERVICES
COMPANY INITIATIVES UNIFORM RENTAL FACILITY SERVICES
• Supplier compliance programs set • Targeted recruiting and leadership- • Maintain and recycle wearers’ • Offer Green Seal-certified products
expectations of our vendors’ societal development programs expand and apparel to reduce customers’ overall • Provide Design for the Environment
impact and monitor compliance with retain workforce diversity material requirements (DfE) chemicals
those expectations • Competitive compensation, employee- • Wash chemistry utilizes U.S. • Refillable dispensers and package-"
Cintas_2022_ESGReport.txt,"RIT IS THE
DIFFERENCE
To best appreciate Cintas’ approach to our interactions
with the people and entities important to our business,
it’s important to understand the foundation upon which
we operate our business: our Corporate Culture.
Cintas’ guiding principles are carefully outlined in
The Spirit Is The Difference, a book based on the
personal insights of our Founder, Richard “Dick” Farmer.
The publication is frequently referenced by executive
leadership and management, and a printed copy is
given to new employee-partners on their first day"
Cintas_2022_ESGReport.txt,"CS
people and the communities that we serve, we should
look more deeply at the second element of our
Corporate Culture: our corporate character.
Honesty and integrity in everything we do Professional appearance
Our Corporate Character defines the set of We don’t cheat each other, our customers, or We believe outward appearances – of our people,
characteristics and behaviors we believe are incumbent our communities. We give honest answers and our facilities, and our vehicles – say a lot about us
on our employee-partners in our pursuit of our Principal are accountable. and our company."
Cintas_2022_ESGReport.txt,"o maximize the long-term value of Cintas for its High ethical and moral values Courtesy
shareholders and working partners.” We don’t want to do anything that could As a service-focused business, we appreciate the
cause us to lose our objectivity or place us in opportunity to help others. We believe courtesy is
These characteristics guide our business considerations a compromising position. contagious and politeness and good manners go
and decisions, and most especially, they provide a long way.
employee-partners with a standard framework of how Full compliance with all governmental laws"
Cintas_2022_ESGReport.txt,"regulations that Positive attitudes and optimism are musts in a fast-
they’re working. we face in our business. paced environment like ours, and they go a long way
in cultivating success.
In recent years, as societal perspectives on work have Thoroughness
evolved, we believe our commitment to nurturing our If it’s worth doing, it deserves thorough attention, Competitive urgency
Corporate Character is more important than ever. so it’s done right. We believe it’s a simple, overriding necessity to
exceed our customers’ and fellow employee-"
Cintas_2022_ESGReport.txt,"hey go a long way
in cultivating success.
In recent years, as societal perspectives on work have Thoroughness
evolved, we believe our commitment to nurturing our If it’s worth doing, it deserves thorough attention, Competitive urgency
Corporate Character is more important than ever. so it’s done right. We believe it’s a simple, overriding necessity to
exceed our customers’ and fellow employee-
Our Talent Acquisition strategy seeks to identify, A spartan attitude to our business partners’ needs.
recruit, and hire employee-partners whose careers We look at every cost very carefully and ask"
Cintas_2022_ESGReport.txt,"refully and ask
and experiences exemplify these character traits ourselves, “If I were spending my own money, would Positive discontent
and behaviors. I spend it on this?” We’re always seeking improvements to our
processes, systems, products, and services. We’re
Doing what’s right, not what’s expedient never satisfied with the status quo, or content to
We don’t target short-term gains at the expense
leave things as they are.
of long-term value. Instead, we focus on what’s
the right thing to do.
Humility and respect for all employee-partners"
Cintas_2022_ESGReport.txt,"my own money, would Positive discontent
and behaviors. I spend it on this?” We’re always seeking improvements to our
processes, systems, products, and services. We’re
Doing what’s right, not what’s expedient never satisfied with the status quo, or content to
We don’t target short-term gains at the expense
leave things as they are.
of long-term value. Instead, we focus on what’s
the right thing to do.
Humility and respect for all employee-partners
We recognize the potential in every human being.
We want every employee-partner to be confident and"
Cintas_2022_ESGReport.txt,"d
these improvements make dramatic impacts. prestigious Uptime Award for Best Reliability Program –
efficiently maximizing and extending the useful life of
the organization’s top honor – at its International
our equipment continues to yield such gains.
Technology has had a large role in helping reduce our
Maintenance Conference. This followed previous
water and energy needs, GHG emissions intensity,
raw materials requirements, and waste. However,
more effective processes – layered over improved
technology and increased employee-partner training"
Cintas_2022_ESGReport.txt,"iency of our wash alley, optimize our
late in FY’20 and formalized in FY’21 to define our existing plants and equipment, and maximize our
process efficiency activities more accurately using an locations’ capacities. Ultimately this helps lower our
academic lens. water, energy, and chemical usage.
The onset of the global pandemic advanced the This ongoing initiative helps plant management
initiative at a faster rate than may have otherwise identify inefficient wash-sling-loading processes, holds
occurred. Pandemic-related travel restrictions prevented employee-partners accountable, and ultimately helps"
Cintas_2022_ESGReport.txt,"require in our plants
Every layer of contributory factors helps us extend our
• The amount of energy we use in our
ability to grow our business while using less.
laundering process
• The amount of waste we generate
• Our need for raw materials
24CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ENVIRONMENTAL POLICY AND POSITIONS TRAINING AND MONITORING Managers, Maintenance Supervisors, and Maintenance
Technicians. Further, these groups must take annual
As an enterprise, we utilize systemic checks and We stress that all employee-partners must understand"
Cintas_2022_ESGReport.txt,"n FY’22, our Environmental Policy was updated to environment, specific training is included in our efficiencies, which can lead to meaningful reductions
more directly reflect goals that will help us successfully company’s certification process for all new Plant on our environmental footprint.
operate our business in a more sustainable manner.
It reiterates our company’s preference to conserve
natural resources, minimize waste in our operations,
and support our customers’ sustainability efforts.
Further, it underlines that all employee-partners have"
Cintas_2022_ESGReport.txt,"natural resources, minimize waste in our operations,
and support our customers’ sustainability efforts.
Further, it underlines that all employee-partners have
a responsibility to support Cintas’ positions outlined in
our Environmental Policy and Climate Change, Energy,
Water, Waste, and Biodiversity position statements.
ENVIRONMENTAL MANAGEMENT SYSTEM
Our Environmental Management System (EMS)
builds off our Code of Conduct and Business Ethics
Compliance policy. This details our expectation that
all employee-partners perform their work in an ethical"
Cintas_2022_ESGReport.txt,"Code of Conduct and Business Ethics
Compliance policy. This details our expectation that
all employee-partners perform their work in an ethical
and law-abiding manner, including compliance with all
pertinent environmental laws and regulations.
Our EMS is outlined in our Environmental Policy. The
system designates the responsibility for identification
and compliance with applicable environmental
regulations (federal, state, provincial, and local)
to location leaders. Our EMS empowers all Cintas
employee-partners to notify Cintas’ Corporate Chemical"
Cintas_2022_ESGReport.txt,"on of process opportunity: process efficiency improvements and wash
technologies and efficiencies that help further reduce chemistry. We work collaboratively with our capital
our water use equipment manufacturers and our wash chemistry
partners to improve our operational footprint, and to
• Implementation of water-reuse technologies
realize the combined impacts of engineering efficiencies
Throughout our water journey, we’ve fostered a culture and chemical improvements on our water requirements.
of innovation among our employee-partners and"
Cintas_2022_ESGReport.txt,"rdship
With wash chemistry programmed to meet specific
in areas experiencing water stress. Since FY’19, we’ve
product load weights, our washers and dryers are
Water Intensity Decreases Since FY’19 lessened our water withdrawn in these regions by
more efficient – requiring less water and energy and
11.7%. In FY’22, our business withdrew 18.7% of our
As our business has continued to grow and fewer chemicals to clean, and less energy to dry. Our
total water withdrawal in stressed regions, but only
we’ve processed more product volume, we’ve employee-partners continue to work with our wash"
Cintas_2022_ESGReport.txt,"eaning solvents,
of our work. originating at a customer’s place of business. This we use NPE10-free detergents that are more
process begins at the earliest stage of a new customer environmentally friendly.
Our Uniform Rental business requires the use of
relationship, starting during the sales process.
chemicals in our wash process, maintenance activities, We are the first industrial launderer to employ
boilers, and wastewater treatment. We may also washing standards that are 100% free from NPE,
EMPLOYEE-PARTNER SAFETY"
Cintas_2022_ESGReport.txt,"ess begins at the earliest stage of a new customer environmentally friendly.
Our Uniform Rental business requires the use of
relationship, starting during the sales process.
chemicals in our wash process, maintenance activities, We are the first industrial launderer to employ
boilers, and wastewater treatment. We may also washing standards that are 100% free from NPE,
EMPLOYEE-PARTNER SAFETY
encounter chemicals that enter our facilities on soiled phosphates, and EDTA11 in all our North American
uniforms and bulk items. Additionally, products and Our locations provide PPE to our employee-partners to laundry facilities."
Cintas_2022_ESGReport.txt,"zards encountered while on
and Fire Protection segments also utilize chemicals, the job. We perform annual PPE hazard assessments for
compounds, and formulations to work effectively. all potential hazards that may be associated with our
processes and the chemicals used in our operations, as
As our business’s interactions with chemicals and well as chemicals used by our customers.
chemical substances have increased over the years,
we’ve established procedures and operational
COMMUNITY PROTECTION
requirements to identify and control our employee-"
Cintas_2022_ESGReport.txt,"remain TRUE
Our Scranton distribution center posted our highest
Certified by Green Business Certification, Inc. This
PROJECT diversion rate of 96.8%. The eight participating
means they divert at least 90% of their waste from
locations produced an overall average diversion rate
landfills each year.
of 93.16%. Together these locations divert a total of
2,428.00 tons of waste from landfills, including:
Cintas has established several waste-reduction The success of our Zero Waste Program is defined
programs throughout its operations. These initiatives by our employee-partners’ commitment to our"
Cintas_2022_ESGReport.txt,"Zero Waste Program’s
be destined for landfills.
goals throughout their location • 32.96 tons of fabric and trimming
The success of existing waste-reduction and • Tracks their location’s waste and • 15.73 tons of pallets
recycling initiatives is leading us to explore more
diversion performances • 50.59 tons of paper
comprehensive programs. These are intended to
• Educates, motivates, and supports our
help us minimize our company’s waste and expand Part of our diversion efforts in FY’22 included
employee-partners’ efforts to reduce,"
Cintas_2022_ESGReport.txt,"gh Accelerating Circularity, Design Collective
We are currently participating in several initiatives
has designed t-shirt and twill pant samples
to act on this opportunity. One of those is our
constructed from circular textiles that can be
Accelerating Circularity Program.
included in our product offerings.
46CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SOCIAL
48 Overview and Approach 68 SPOTLIGHT: PBRGs: Supporting Partner
49 Our People Development
51 Human Rights 69 Employee-Partner Engagement"
Cintas_2022_ESGReport.txt,"lier Relations
58 Talent Recruitment and Retention Data 77 Supplier Diversity
59 Compensation and Benefits 78 Community Impact and Philanthropy
63 Performance and Advancement 82 SPOTLIGHT: Cintas Partner Assistance Fund
65 Training and Development 83 Impacts of Our Products and Services
47CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OVERVIEW AND every day and help our customers get Ready for the We are committed to an overall culture that values the
Workday®. Our people – and the way they bring our human rights of not only our employee-partners, but"
Cintas_2022_ESGReport.txt,"rights of not only our employee-partners, but
Corporate Culture to life day-in and day-out – have also our customers, the communities we serve, and all
APPROACH
ultimately helped define Cintas and what we stand for. those in our value chain.
Our goal is to foster a working environment where We strive to perpetuate a safe and healthy workplace
We are intentional about our Corporate Culture and everyone feels their contributions help empower our that encourages and celebrates Diversity, Equity &
how we’ve interpreted and evolved it through the years. collective success. We firmly believe an engaged and Inclusion so our employee-partners have a sense"
Cintas_2022_ESGReport.txt,"power our that encourages and celebrates Diversity, Equity &
how we’ve interpreted and evolved it through the years. collective success. We firmly believe an engaged and Inclusion so our employee-partners have a sense
It’s the foundation of our company and continues to fulfilled workforce is a harbinger of our ongoing success of belonging and purpose while they’re on the job
guide our growth and business decisions. Our dynamic and growth. at Cintas.
policies and procedures inform our management
To help ensure our employee-partners understand Our goal is to foster a working environment where"
Cintas_2022_ESGReport.txt,"ey’re on the job
guide our growth and business decisions. Our dynamic and growth. at Cintas.
policies and procedures inform our management
To help ensure our employee-partners understand Our goal is to foster a working environment where
activities and help us maintain our quality service as our
how impactful they are to our overall success, everyone feels their contributions help empower our
customers’ expectations and needs evolve.
we place tremendous importance on treating collective success.
At the heart of our company sit our employee-partners, them fairly and ethically and providing ongoing,"
Cintas_2022_ESGReport.txt,"eaningful opportunities.
48CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PEOPLE
FY’22 WORKFORCE HIGHLIGHTS16
“It is important to recognize the 36Gender +64+A 44Minority Status +56+A
potential in every human being.
It is important to involve everyone,
and to make everyone a confident,
contributing member of the team.”
44.2%
35.7%
Dick Farmer, The Spirit Is The Difference Self-Reported
Women
Minority
Dick Farmer’s philosophy continues to inform our
approach to our employee-partners: one that prioritizes"
Cintas_2022_ESGReport.txt,"CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PEOPLE
FY’22 WORKFORCE HIGHLIGHTS16
“It is important to recognize the 36Gender +64+A 44Minority Status +56+A
potential in every human being.
It is important to involve everyone,
and to make everyone a confident,
contributing member of the team.”
44.2%
35.7%
Dick Farmer, The Spirit Is The Difference Self-Reported
Women
Minority
Dick Farmer’s philosophy continues to inform our
approach to our employee-partners: one that prioritizes
our employee-partners’ needs, incentivizes their"
Cintas_2022_ESGReport.txt,"armer’s philosophy continues to inform our
approach to our employee-partners: one that prioritizes
our employee-partners’ needs, incentivizes their
success, and supports their ongoing development. We
do this with a keen eye on consistency and fairness.
Our management system helps guide and inform our
interactions with our people and those with whom we
Women Men Self-Reported Self-Report
do business. 35.7% 64.3% Minority Non-Minority
44.2% 55.8%
At Cintas, we’re fortunate to have almost 43,00015
employee-partners in the United States and Canada"
Cintas_2022_ESGReport.txt,"oyee-partners’ needs, incentivizes their
success, and supports their ongoing development. We
do this with a keen eye on consistency and fairness.
Our management system helps guide and inform our
interactions with our people and those with whom we
Women Men Self-Reported Self-Report
do business. 35.7% 64.3% Minority Non-Minority
44.2% 55.8%
At Cintas, we’re fortunate to have almost 43,00015
employee-partners in the United States and Canada
who reflect our corporate character, giving our business
an incredibly strong foundation. All our employee- Employment Type Associated Partners Geographic Location"
Cintas_2022_ESGReport.txt,"e
Women Men Self-Reported Self-Report
do business. 35.7% 64.3% Minority Non-Minority
44.2% 55.8%
At Cintas, we’re fortunate to have almost 43,00015
employee-partners in the United States and Canada
who reflect our corporate character, giving our business
an incredibly strong foundation. All our employee- Employment Type Associated Partners Geographic Location
99+1+A 98+2+A 92+8+A
partners are employed on a full-time or part-time
basis, helping to create an even deeper connection
to our company.
We believe our employee-partners are our best advocates"
Cintas_2022_ESGReport.txt,"to our company.
We believe our employee-partners are our best advocates
and brand representatives, primarily because they are
engaged in and feel fulfilled through their careers.
Full-Time Partners Non-Unionized Partners U.S.-Based Partners
99.4% 97.9% 92.2%
Part-Time Partners Unionized Partners Canada-Based Partners
0.6% 2.1% 7.8%
49CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRUSTING, RESPECTFUL, AND SHARING IN OUR SUCCESS ASSOCIATIONS AT CINTAS
SUPPORTIVE MANAGEMENT Because we value our employee-partners and their We recognize and respect the principles of freedom"
Cintas_2022_ESGReport.txt,"are
engaged in and feel fulfilled through their careers.
Full-Time Partners Non-Unionized Partners U.S.-Based Partners
99.4% 97.9% 92.2%
Part-Time Partners Unionized Partners Canada-Based Partners
0.6% 2.1% 7.8%
49CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRUSTING, RESPECTFUL, AND SHARING IN OUR SUCCESS ASSOCIATIONS AT CINTAS
SUPPORTIVE MANAGEMENT Because we value our employee-partners and their We recognize and respect the principles of freedom
Our management philosophy is based on managers contributions to our collective success, we share our of association and our employee-partners’ right to"
Cintas_2022_ESGReport.txt,"ners Unionized Partners Canada-Based Partners
0.6% 2.1% 7.8%
49CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRUSTING, RESPECTFUL, AND SHARING IN OUR SUCCESS ASSOCIATIONS AT CINTAS
SUPPORTIVE MANAGEMENT Because we value our employee-partners and their We recognize and respect the principles of freedom
Our management philosophy is based on managers contributions to our collective success, we share our of association and our employee-partners’ right to
and supervisors interacting with our employee-partners accomplishments with them. We collectively enjoy collective bargaining in accordance with applicable"
Cintas_2022_ESGReport.txt,"respect the principles of freedom
Our management philosophy is based on managers contributions to our collective success, we share our of association and our employee-partners’ right to
and supervisors interacting with our employee-partners accomplishments with them. We collectively enjoy collective bargaining in accordance with applicable
every day. We expect our managers to walk around our ownership in the company we’ve helped grow through national laws. We adhere to the protocols established
locations, talk with our employee-partners daily, and our Employee Stock Ownership Program (ESOP) and by the U.S. National Labor Relations Board and the"
Cintas_2022_ESGReport.txt,"ning in accordance with applicable
every day. We expect our managers to walk around our ownership in the company we’ve helped grow through national laws. We adhere to the protocols established
locations, talk with our employee-partners daily, and our Employee Stock Ownership Program (ESOP) and by the U.S. National Labor Relations Board and the
maintain an “open door” to their offices in order to be profit-sharing. These are components of our three- Canada Labour Relations Program to support our
available to their staff. part Partners Plan, in which every employee-partner is partners’ rights to exercise their freedom of association"
Cintas_2022_ESGReport.txt,"ESOP) and by the U.S. National Labor Relations Board and the
maintain an “open door” to their offices in order to be profit-sharing. These are components of our three- Canada Labour Relations Program to support our
available to their staff. part Partners Plan, in which every employee-partner is partners’ rights to exercise their freedom of association
eligible to participate17 after they have been employed and collective bargaining.
We believe these ongoing exchanges facilitate an
for one year.
environment of open communication and help us create All our employee-partners are vital to our success. We"
Cintas_2022_ESGReport.txt,"ective bargaining.
We believe these ongoing exchanges facilitate an
for one year.
environment of open communication and help us create All our employee-partners are vital to our success. We
strong relationships built on trust and respect. In addition to our competitive pay and benefit value their opinions and feedback, no matter their role
packages, we have programs to support the physical in the company. We are committed to promoting fair
We also promote world-class safety and health practices
health and wellness of our employee-partners and labor practices and safe working conditions; providing"
Cintas_2022_ESGReport.txt,"lth and wellness of our employee-partners and labor practices and safe working conditions; providing
throughout our organization. We’ve been repeatedly
their families. competitive pay, comprehensive benefits, and ongoing
recognized and honored for our processes and
career development opportunities; and maintaining
commitment to safe work environments – most notably
our management philosophy, which not only promotes
DEVELOPING AND SUPPORTING
with the Occupational Safety and Health Administration
accountability and employee-partner access but also"
Cintas_2022_ESGReport.txt,"and honored for our processes and
career development opportunities; and maintaining
commitment to safe work environments – most notably
our management philosophy, which not only promotes
DEVELOPING AND SUPPORTING
with the Occupational Safety and Health Administration
accountability and employee-partner access but also
OUR FUTURE
(OSHA)’s recognition for workplace safety: the Voluntary
articulates our ethical expectations.
Protection Program (VPP). We prioritize the growth and development of our
employee-partners, and our strong preference is to We hold that all these tenets – and more – have helped"
Cintas_2022_ESGReport.txt,"afety and Health Administration
accountability and employee-partner access but also
OUR FUTURE
(OSHA)’s recognition for workplace safety: the Voluntary
articulates our ethical expectations.
Protection Program (VPP). We prioritize the growth and development of our
employee-partners, and our strong preference is to We hold that all these tenets – and more – have helped
promote from within. With our diverse businesses and us foster and perpetuate a strong, open environment
EMPOWERING OUR WORKFORCE
corporate functions, employee-partners can continue where our employee-partners feel valued, supported,"
Cintas_2022_ESGReport.txt,"t of our
employee-partners, and our strong preference is to We hold that all these tenets – and more – have helped
promote from within. With our diverse businesses and us foster and perpetuate a strong, open environment
EMPOWERING OUR WORKFORCE
corporate functions, employee-partners can continue where our employee-partners feel valued, supported,
We’ve worked hard to foster an environment where
growing their careers and experiences with us. The and positioned to thrive. And we believe that this
every employee-partner is positioned to use their"
Cintas_2022_ESGReport.txt,"nce is to We hold that all these tenets – and more – have helped
promote from within. With our diverse businesses and us foster and perpetuate a strong, open environment
EMPOWERING OUR WORKFORCE
corporate functions, employee-partners can continue where our employee-partners feel valued, supported,
We’ve worked hard to foster an environment where
growing their careers and experiences with us. The and positioned to thrive. And we believe that this
every employee-partner is positioned to use their
diversity of our jobs also helps us better retain our is why, in almost all instances, when our employee-"
Cintas_2022_ESGReport.txt,"environment
EMPOWERING OUR WORKFORCE
corporate functions, employee-partners can continue where our employee-partners feel valued, supported,
We’ve worked hard to foster an environment where
growing their careers and experiences with us. The and positioned to thrive. And we believe that this
every employee-partner is positioned to use their
diversity of our jobs also helps us better retain our is why, in almost all instances, when our employee-
strengths and talents to help us meet our business
employee-partners’ knowledge and skills so they can partners have had the opportunity to cast their votes"
Cintas_2022_ESGReport.txt,"s also helps us better retain our is why, in almost all instances, when our employee-
strengths and talents to help us meet our business
employee-partners’ knowledge and skills so they can partners have had the opportunity to cast their votes
goals, and to create a place where they feel supported
continue to make Cintas better and stronger. for association in private, government-supervised
and championed in pursuit of their professional and
elections, they’ve voted against association and union
personal goals. When our employee-partners are The depth and breadth of our Learning & Development"
Cintas_2022_ESGReport.txt,"s meet our business
employee-partners’ knowledge and skills so they can partners have had the opportunity to cast their votes
goals, and to create a place where they feel supported
continue to make Cintas better and stronger. for association in private, government-supervised
and championed in pursuit of their professional and
elections, they’ve voted against association and union
personal goals. When our employee-partners are The depth and breadth of our Learning & Development
representation.18
engaged and feel connected to our overall success, we offerings help employee-partners attain and refine"
Cintas_2022_ESGReport.txt,"to cast their votes
goals, and to create a place where they feel supported
continue to make Cintas better and stronger. for association in private, government-supervised
and championed in pursuit of their professional and
elections, they’ve voted against association and union
personal goals. When our employee-partners are The depth and breadth of our Learning & Development
representation.18
engaged and feel connected to our overall success, we offerings help employee-partners attain and refine
believe they’re more likely to remain at Cintas to grow important knowledge and skills that further support their In areas where our employee-partners have voted"
Cintas_2022_ESGReport.txt,"to our overall success, we offerings help employee-partners attain and refine
believe they’re more likely to remain at Cintas to grow important knowledge and skills that further support their In areas where our employee-partners have voted
their careers. ongoing career and personal growth. We also facilitate for union representation, we satisfy our bargaining
training and certifications as positions require. obligations as defined by the law.
We continue to monitor and mentor our workforce and
to identify new opportunities for our employee-partners"
Cintas_2022_ESGReport.txt,"support the United We require that workers be paid at least the legal
Nations and the various legal entities’ requirements minimum wage. While we understand that overtime is
Cintas respects the value and worth of all human beings. and laws that establish and promote the fair treatment occasionally necessary to meet production demands,
We pride ourselves on our Corporate Culture, and our of all people. Further, this responsibility doesn’t just workers must be allowed a reasonable amount of time
position on human rights throughout our value chain is fall on Cintas and its employee-partners: we have the off from their duties to afford humane and productive"
Cintas_2022_ESGReport.txt,"which they operate.
our own workforce and the workforces of those entities throughout the world. Our Vendor Code of Conduct
with whom we conduct business around the world. requires our Global Supply Chain Suppliers19 to meet
CHILD LABOR
our standards and requirements to do business with us.
Our Code of Conduct and Business Ethics and our
Cintas defines child labor as any work performed by
other corporate employment practices policies prohibit
individuals under the age of 16, or those under the
discrimination or harassment of any employee-partner"
Cintas_2022_ESGReport.txt,"re traveling to start employment.
Our Global Supply Chain Suppliers are also expected
to commit to this.
51CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Additionally, in FY’21, we identified Global Supply Chain
Suppliers who have been known to conduct business
in China and the Eastern Hemisphere. We required
them to attest that they do not work with or source
from vendors or suppliers in China’s Xinjiang Uygur
Autonomous Region.
COLLECTIVE BARGAINING
We respect our employee-partners’ rights to collective"
Cintas_2022_ESGReport.txt,"rights to collective
bargaining and association. We believe workers must
have the right to make an informed decision on these
matters; have the right to free, fair, and government-
supervised elections; and to not be subject to
representation that has been adopted unilaterally.
We expect our Global Supply Chain Suppliers to also
uphold their workers’ freedom of association and their
rights to organize and collectively bargain.
AT-RISK LOCATIONS
Cintas has not identified any locations under our
operation where our employee-partners’ rights to"
Cintas_2022_ESGReport.txt,"EPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY Fundamentally, we want our workforce to reflect the
communities in which we do business. We believe this
RECOGNITION FOR OUR EFFORTS
leads to ideas, solutions, and improved outcomes that
& INCLUSION
better serve our customers, shareholders, and other In recent years, our efforts to promote a diverse
stakeholders in the long term. workforce have been recognized with a host of
awards and honors, including:
We seek to foster a diverse workplace where employee- Having a broad range of experiences to lean on also"
Cintas_2022_ESGReport.txt,"er a diverse workplace where employee- Having a broad range of experiences to lean on also
partners of different backgrounds can come together helps us enter new markets and gain new customers. • Forbes’ “America’s Best Employers
to identify and champion opportunities, all while Our diverse workforce helps us better understand how for Diversity”
feeling a sense of equality, inclusion, and belonging. our products and services are viewed, how they meet
• DiversityPlus Magazine’s “Top 30 Champions
Our Founder, Dick Farmer, stressed every employee- our customers’ needs, and what innovations may benefit"
Cintas_2022_ESGReport.txt,"mer, stressed every employee- our customers’ needs, and what innovations may benefit
of Diversity”
partner’s importance to the company – regardless of our business.
• “Influencer Award” from Autism Speaks
their position or role. This has been a fundamental
belief at Cintas since the beginning. UPDATING OUR DEI STRATEGY • “Best Place to Work for Disability Inclusion”
by Disability Equality Index
We’ve made a committed effort to foster a diverse Our constituents – both internally and externally –
workforce of employee-partners. We believe our have shown significant interest in our programs, • Military Friendly® as a Bronze Employer and"
Cintas_2022_ESGReport.txt,"made a committed effort to foster a diverse Our constituents – both internally and externally –
workforce of employee-partners. We believe our have shown significant interest in our programs, • Military Friendly® as a Bronze Employer and
systematic approach to diversity, equity & inclusion opportunities, challenges, and progress in DEI, making for Military Friendly Supplier Diversity
(DEI) fosters a greater sense of belonging and purpose this area an Impact Priority. In late FY’21, we began an
for our employee-partners, which further supports ongoing assessment of our DEI strategy as a component"
Cintas_2022_ESGReport.txt,"ce of employee-partners. We believe our have shown significant interest in our programs, • Military Friendly® as a Bronze Employer and
systematic approach to diversity, equity & inclusion opportunities, challenges, and progress in DEI, making for Military Friendly Supplier Diversity
(DEI) fosters a greater sense of belonging and purpose this area an Impact Priority. In late FY’21, we began an
for our employee-partners, which further supports ongoing assessment of our DEI strategy as a component
our business results. Bringing together employee- of our overall organizational review."
Cintas_2022_ESGReport.txt,"guide our human
strategy in FY’22. Notably, this included the transition
successes are compounded through the increased resources management and practices, and helps further
of our existing Diversity & Inclusion (D&I) programming
exchange of perspectives and experiences, and provide position DEI priorities in our overall corporate and
under the broader umbrella of our refreshed
a forum for deeper insight, understanding, empathy, business strategy. Our updated DEI strategy includes
DEI strategy.
and compassion. five components that can impact employee-partners"
Cintas_2022_ESGReport.txt,"t also introduced DEI metrics as
commitment to CEO Action after Scott Farmer initially
non-financial goals in our executives’ annual
signed on in 2015 during his tenure as CEO and
compensation packages – components which still
Chairman of the Board.
exist in those packages today.
53CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Recruiting Strategy underrepresented groups. We also have implemented The holistic review of our DEI strategy helped identify
a new process to further support employee-partners new opportunities for these groups. Each group"
Cintas_2022_ESGReport.txt,"oups. We also have implemented The holistic review of our DEI strategy helped identify
a new process to further support employee-partners new opportunities for these groups. Each group
We have created a new recruiting structure that places
following promotion and transfer interviews, which transitioned its leadership, and the groups were all
additional emphasis on identifying and recruiting
provide beneficial feedback and action plans to help assigned goals intended to help better support their
potential employee-partners from underrepresented"
Cintas_2022_ESGReport.txt,"nagement
connections, and productive networking opportunities.
Trainee program, our Advanced Management Partners, Training and Education
and our leadership positions. Our refreshed DEI training curriculum was launched
at the start of FY’23. This is required instruction for DEI Communications
We have expanded our team of Campus Talent
all managers with direct reports, as well as all Human Cintas’ DEI team also launched an ongoing initiative to
Acquisition Managers. This has allowed us to further
Resources employee-partners. regularly communicate to our workforce about our DEI"
Cintas_2022_ESGReport.txt,"hip
workforce become more familiar with Cintas’ DEI
Challenge, which was formed by the Congressional Further curriculum development is underway to develop
goals, opportunities, and challenges. This included
Bipartisan HBCU Caucus. By joining this group training courses in unconscious bias and cultural
video messages from executives on their perspectives
of 94 companies, we’ve accepted the challenge competency. These are expected to become training
about DEI and experiences at Cintas, as well as
to form meaningful partnerships with HBCUs and requirements for various groups of employee-partners,"
Cintas_2022_ESGReport.txt,"this group training courses in unconscious bias and cultural
video messages from executives on their perspectives
of 94 companies, we’ve accepted the challenge competency. These are expected to become training
about DEI and experiences at Cintas, as well as
to form meaningful partnerships with HBCUs and requirements for various groups of employee-partners,
regular features and profiles highlighting our diverse
acknowledged that HBCUs are part of our diversity including managers and supervisors.
employee-partners."
Cintas_2022_ESGReport.txt,"bias and cultural
video messages from executives on their perspectives
of 94 companies, we’ve accepted the challenge competency. These are expected to become training
about DEI and experiences at Cintas, as well as
to form meaningful partnerships with HBCUs and requirements for various groups of employee-partners,
regular features and profiles highlighting our diverse
acknowledged that HBCUs are part of our diversity including managers and supervisors.
employee-partners.
and inclusion efforts.
To reach employee-partners without a computer"
Cintas_2022_ESGReport.txt,"d profiles highlighting our diverse
acknowledged that HBCUs are part of our diversity including managers and supervisors.
employee-partners.
and inclusion efforts.
To reach employee-partners without a computer
Our recruiting strategy also includes an ongoing focus Partner Business Resource Groups
connection these pieces were also produced in a
on outreach and recruiting efforts to veterans and Our Partner Business Resource Groups (PBRGs) serve
manner that could be shared directly with frontline
military-affiliated candidates. This includes identifying broad employee-partner populations, both at a"
Cintas_2022_ESGReport.txt,"ed directly with frontline
military-affiliated candidates. This includes identifying broad employee-partner populations, both at a
partners at the location level.
opportunities for Junior Military Officers and other corporate level and through smaller regional chapters
commissioned and reserve enlisted candidates. throughout the United States and Canada.
In FY’22, we expanded our PBRG offerings from four to
Partner Advancement
six groups. These are:
We have placed additional focus on DEI in our
• IMPACT: LGBTQ+ employee-partners and allies (new"
Cintas_2022_ESGReport.txt,"rtunities for Junior Military Officers and other corporate level and through smaller regional chapters
commissioned and reserve enlisted candidates. throughout the United States and Canada.
In FY’22, we expanded our PBRG offerings from four to
Partner Advancement
six groups. These are:
We have placed additional focus on DEI in our
• IMPACT: LGBTQ+ employee-partners and allies (new
annual succession planning and partner-development
in FY’22)
cycles. This includes the identification of additional
development opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners"
Cintas_2022_ESGReport.txt,"ters
commissioned and reserve enlisted candidates. throughout the United States and Canada.
In FY’22, we expanded our PBRG offerings from four to
Partner Advancement
six groups. These are:
We have placed additional focus on DEI in our
• IMPACT: LGBTQ+ employee-partners and allies (new
annual succession planning and partner-development
in FY’22)
cycles. This includes the identification of additional
development opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners
employee-partners from underrepresented groups, (new in FY’22)"
Cintas_2022_ESGReport.txt,"PBRG offerings from four to
Partner Advancement
six groups. These are:
We have placed additional focus on DEI in our
• IMPACT: LGBTQ+ employee-partners and allies (new
annual succession planning and partner-development
in FY’22)
cycles. This includes the identification of additional
development opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners
employee-partners from underrepresented groups, (new in FY’22)
including expanded access to our Executive Leadership
• RISE2: Black/African American employee-partners"
Cintas_2022_ESGReport.txt,"on DEI in our
• IMPACT: LGBTQ+ employee-partners and allies (new
annual succession planning and partner-development
in FY’22)
cycles. This includes the identification of additional
development opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners
employee-partners from underrepresented groups, (new in FY’22)
including expanded access to our Executive Leadership
• RISE2: Black/African American employee-partners
Program (ELP) and additional mentorship connections.
• TODOS: Hispanic and Latin employee-partners"
Cintas_2022_ESGReport.txt,"g and partner-development
in FY’22)
cycles. This includes the identification of additional
development opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners
employee-partners from underrepresented groups, (new in FY’22)
including expanded access to our Executive Leadership
• RISE2: Black/African American employee-partners
Program (ELP) and additional mentorship connections.
• TODOS: Hispanic and Latin employee-partners
Our leadership team is engaged with relevant
• VALOR: military-affiliated employee-partners"
Cintas_2022_ESGReport.txt,"ent opportunities for high-potential • LEAD: Asian and Pacific Islander employee-partners
employee-partners from underrepresented groups, (new in FY’22)
including expanded access to our Executive Leadership
• RISE2: Black/African American employee-partners
Program (ELP) and additional mentorship connections.
• TODOS: Hispanic and Latin employee-partners
Our leadership team is engaged with relevant
• VALOR: military-affiliated employee-partners
organizations to help identify hiring and promotion
opportunities for employee-partners from • WAVE: female employee-partners"
Cintas_2022_ESGReport.txt,"gram (ELP) and additional mentorship connections.
• TODOS: Hispanic and Latin employee-partners
Our leadership team is engaged with relevant
• VALOR: military-affiliated employee-partners
organizations to help identify hiring and promotion
opportunities for employee-partners from • WAVE: female employee-partners
54CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WORKFORCE DATA
CINTAS CINTAS FY’21 FY’22
CORPORATION FY’21 PCT FY’22 PCT CORPORATION PCT PCT
Employee-Partners23 EEO-1 Demographic Breakdown of U.S. Workforce24"
Cintas_2022_ESGReport.txt,"ANCE APPENDIX
TALENT EXPANDING OUR TEAM ATTRACTING THE BEST TALENT
We’ve invested heavily in our talent pipeline and To maintain our competitive advantage and generate
RECRUITMENT have created many new full-time jobs to support our a diverse and qualified applicant pool, we post our
company’s ongoing and forecasted growth. During positions both internally and externally across career
FY’22 alone, we expanded our workforce by 6.29%, sites, job boards, and social media platforms. To
AND RETENTION
finishing the year with almost 43,000 employee-partners. support our general hiring efforts, we expanded our"
Cintas_2022_ESGReport.txt,"g the year with almost 43,000 employee-partners. support our general hiring efforts, we expanded our
recruiting efforts by hiring a team of in-house recruiters
As we continue to grow, we understand the need
to specifically target various roles and functions in the
We firmly believe Cintas is an employer of choice in to better position Cintas among a crowded field of United States and Canada.
the United States and Canada because of the care and employers, and help our company better stand out to
support we offer our employee-partners. top talent. To facilitate this, we’ve expanded our Talent We continue to leverage external agencies that"
Cintas_2022_ESGReport.txt,"anada.
the United States and Canada because of the care and employers, and help our company better stand out to
support we offer our employee-partners. top talent. To facilitate this, we’ve expanded our Talent We continue to leverage external agencies that
and Employment Solutions team, and created a new specialize in specific industries or geographies.
Our preference is to create full-time roles and hire Vice President of Talent Acquisition role. Further, we work with a wide group of minority-
employee-partners on a full-time basis. We offer focused commerce groups and business organizations"
Cintas_2022_ESGReport.txt,"we work with a wide group of minority-
employee-partners on a full-time basis. We offer focused commerce groups and business organizations
competitive salaries and wages with an attractive This new leader will: around the country to source and recruit applicants for
benefits package as well as ongoing opportunities for • Champion our efforts to refine our Talent many roles.
advancement and career development. We also provide
Acquisition strategy
significant opportunities to further champion our
employee value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues"
Cintas_2022_ESGReport.txt,"ps and business organizations
competitive salaries and wages with an attractive This new leader will: around the country to source and recruit applicants for
benefits package as well as ongoing opportunities for • Champion our efforts to refine our Talent many roles.
advancement and career development. We also provide
Acquisition strategy
significant opportunities to further champion our
employee value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues
employee-partners. to source and secure talent to support our"
Cintas_2022_ESGReport.txt,"This new leader will: around the country to source and recruit applicants for
benefits package as well as ongoing opportunities for • Champion our efforts to refine our Talent many roles.
advancement and career development. We also provide
Acquisition strategy
significant opportunities to further champion our
employee value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues
employee-partners. to source and secure talent to support our
growing workforce
“Cintas is a really, really powerful – • Articulate the company’s employee value proposition"
Cintas_2022_ESGReport.txt,"any roles.
advancement and career development. We also provide
Acquisition strategy
significant opportunities to further champion our
employee value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues
employee-partners. to source and secure talent to support our
growing workforce
“Cintas is a really, really powerful – • Articulate the company’s employee value proposition
in new and refreshed manners to better reflect our
but incredibly humble – industry
holistic approach to our employee-partners"
Cintas_2022_ESGReport.txt,"value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues
employee-partners. to source and secure talent to support our
growing workforce
“Cintas is a really, really powerful – • Articulate the company’s employee value proposition
in new and refreshed manners to better reflect our
but incredibly humble – industry
holistic approach to our employee-partners
leader. It can feel like people don’t
always know much about us, what
we do, and what we offer our
employee-partners unless they work"
Cintas_2022_ESGReport.txt,"offer our
employee-partners unless they work
here. Our goal is to change that
and make sure more recruits know
Cintas is an incredible brand and an
unbelievable employer.”
David Coe, Vice President of Talent Acquisition
56CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ON-CAMPUS RECRUITING INTERNAL RECRUITING PROFESSIONAL
We use a broad on-campus recruiting network for some Our organizational structure presents opportunities for DEVELOPMENT PHILOSOPHY
of our positions, including our Management Trainee and employee-partners to pursue new work experiences We offer a flexible path to a long-term meaningful"
Cintas_2022_ESGReport.txt,"evable employer.”
David Coe, Vice President of Talent Acquisition
56CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ON-CAMPUS RECRUITING INTERNAL RECRUITING PROFESSIONAL
We use a broad on-campus recruiting network for some Our organizational structure presents opportunities for DEVELOPMENT PHILOSOPHY
of our positions, including our Management Trainee and employee-partners to pursue new work experiences We offer a flexible path to a long-term meaningful
undergraduate internship programs. We’ve fostered while remaining Cintas employee-partners. Aligning career. We call this our “career jungle gym.” This"
Cintas_2022_ESGReport.txt,"le, individuals can apply for open positions on
At Cintas, we can offer different careers and job
the HACU. our website.
opportunities to meet someone’s professional needs
In FY’22, our corporate recruiting teams participated in Additionally, hiring managers have tools to recruit at every stage of their career, with both lateral and
almost 1,000 on-campus recruiting events in the United internally and identify potential team members from our upward opportunities that continue to provide support
States and Canada. These included career fairs, diversity existing workforce. Each year, employee-partners are alongside ongoing company investment in their"
Cintas_2022_ESGReport.txt,"pport
States and Canada. These included career fairs, diversity existing workforce. Each year, employee-partners are alongside ongoing company investment in their
events, case studies/role play competitions, professional asked to update their in-depth personal profiles – which development. Between our various business divisions,
development events (resume reviews, table talks, mock include career objectives, skills, and special assignments, corporate departments, and locations across the United
interviews, etc.), and advisory board sessions. among other categories – in our human resource States and Canada, we can provide employee-partners"
Cintas_2022_ESGReport.txt,"see the entire spectrum of a defining characteristic at Cintas and has been a key
students and exposes them to all facets of our business.
talent at Cintas and source internal candidates who may factor in helping us retain the best talent.
We offer competitive wages, extensive training, and
not otherwise be aware of available opportunities.
work experience in one area of Cintas, along with the
potential to transition directly into our Management
TALENT RETENTION
Trainee program upon graduation.
Approximately 43,000 employee-partners company-"
Cintas_2022_ESGReport.txt,"r in helping us retain the best talent.
We offer competitive wages, extensive training, and
not otherwise be aware of available opportunities.
work experience in one area of Cintas, along with the
potential to transition directly into our Management
TALENT RETENTION
Trainee program upon graduation.
Approximately 43,000 employee-partners company-
We’ve also developed competitive apprenticeship and
wide, we have a dynamic and talented workforce.
shadow programs with a small group of universities.
Our goal is to provide employee-partners with"
Cintas_2022_ESGReport.txt,"irectly into our Management
TALENT RETENTION
Trainee program upon graduation.
Approximately 43,000 employee-partners company-
We’ve also developed competitive apprenticeship and
wide, we have a dynamic and talented workforce.
shadow programs with a small group of universities.
Our goal is to provide employee-partners with
These allow potential applicants the opportunity to
opportunities to stay engaged and support their growth
learn more about our business from local management
and development.
employee-partners before applying for positions."
Cintas_2022_ESGReport.txt,"portunities to stay engaged and support their growth
learn more about our business from local management
and development.
employee-partners before applying for positions.
Our competitive salaries and comprehensive benefits
are attractive to our partners. But we stand out for our
METICULOUS HIRING
focus on professional development. Further, our Partner
Our hiring managers must complete our Meticulous
Business Resource Groups (PBRGs) are important
Hiring curriculum before they evaluate candidates
resources for employee-partners who seek a cultural"
Cintas_2022_ESGReport.txt,"learn more about our business from local management
and development.
employee-partners before applying for positions.
Our competitive salaries and comprehensive benefits
are attractive to our partners. But we stand out for our
METICULOUS HIRING
focus on professional development. Further, our Partner
Our hiring managers must complete our Meticulous
Business Resource Groups (PBRGs) are important
Hiring curriculum before they evaluate candidates
resources for employee-partners who seek a cultural
and hire new employee-partners. Our systemic hiring"
Cintas_2022_ESGReport.txt,"RING
focus on professional development. Further, our Partner
Our hiring managers must complete our Meticulous
Business Resource Groups (PBRGs) are important
Hiring curriculum before they evaluate candidates
resources for employee-partners who seek a cultural
and hire new employee-partners. Our systemic hiring
connection to others at work.
process helps create a consistent recruiting and hiring
experience across our organization with documented We’ve evaluated the value proposition of working at
hiring processes and centralized hiring profiles. Cintas at every stage of an employee-partner’s career"
Cintas_2022_ESGReport.txt,"resources for employee-partners who seek a cultural
and hire new employee-partners. Our systemic hiring
connection to others at work.
process helps create a consistent recruiting and hiring
experience across our organization with documented We’ve evaluated the value proposition of working at
hiring processes and centralized hiring profiles. Cintas at every stage of an employee-partner’s career
and in every operational area. We found that our
Our hiring process is detailed and leverages a series
employee-partners value the opportunity to gain new"
Cintas_2022_ESGReport.txt,"30 2,511 22.3%
Women Under 30 1,606 10.8% Women Under 30 1,113 9.9%
30–50 7,123 47.7% 30–50 5,914 52.5%
Men 30–50 4,634 31.0% Men 30–50 3,934 34.9%
Women 30–50 2,489 16.7% Women 30–50 1,980 17.6%
Over 50 2,122 14.2% Over 50 1,736 15.4%
Men Over 50 1,012 6.8% Men Over 50 877 7.8%
Women Over 50 1,110 7.4% Women Over 50 859 7.6%
58CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION PAY EQUITY Our latest annual review continued to confirm that our
compensation practices pay our employee-partners"
Cintas_2022_ESGReport.txt,"loyer. We aim to develop a workforce of diverse
factors like position, experience, education and
talent, and we reward our associates equitably. All
training, Cintas tenure, and geographic location, and
personnel decisions, including those relating to pay, are
applies regardless of gender, race, ethnicity, or other
made without regard to race, religion, color, veteran
Cintas is proud to offer a competitive, robust
identifying characteristics.
status, national origin, citizenship, gender, sexual
compensation package to its employee-partners – both"
Cintas_2022_ESGReport.txt,"compensation orientation or gender identity, age, or disability. We also use our annual performance review process
package includes regular salaries and wages, a to consider market factors – like competitiveness
We review our compensation practices annually
comprehensive benefits package, and a generous and geography changes – and make compensation
and leverage outside, third-party consultants to
retirement program. adjustments, if necessary.
evaluate our overall compensation programs. We also
Cintas and employee-partners share the expense of incorporate market and geographic analysis in our Employee-partners who meet the necessary"
Cintas_2022_ESGReport.txt,"changes – and make compensation
and leverage outside, third-party consultants to
retirement program. adjustments, if necessary.
evaluate our overall compensation programs. We also
Cintas and employee-partners share the expense of incorporate market and geographic analysis in our Employee-partners who meet the necessary
some components of our benefits package, with the annual evaluations. qualifications are eligible for annual merit increases.
company bearing a large portion of that expense. The
company also contributes to its employee-partners’"
Cintas_2022_ESGReport.txt,"ent program. adjustments, if necessary.
evaluate our overall compensation programs. We also
Cintas and employee-partners share the expense of incorporate market and geographic analysis in our Employee-partners who meet the necessary
some components of our benefits package, with the annual evaluations. qualifications are eligible for annual merit increases.
company bearing a large portion of that expense. The
company also contributes to its employee-partners’
retirement plans.
SALARIES AND WAGES
Our employee-partners are paid on a weekly basis."
Cintas_2022_ESGReport.txt,"et and geographic analysis in our Employee-partners who meet the necessary
some components of our benefits package, with the annual evaluations. qualifications are eligible for annual merit increases.
company bearing a large portion of that expense. The
company also contributes to its employee-partners’
retirement plans.
SALARIES AND WAGES
Our employee-partners are paid on a weekly basis.
We abide by all prevailing employment laws, including
federal, state/provincial, and municipal regulations.
U.S.- and Canada-based employee-partners who work"
Cintas_2022_ESGReport.txt,"to its employee-partners’
retirement plans.
SALARIES AND WAGES
Our employee-partners are paid on a weekly basis.
We abide by all prevailing employment laws, including
federal, state/provincial, and municipal regulations.
U.S.- and Canada-based employee-partners who work
in positions that meet the standards and responsibilities
required for an exemption are paid their annual
salary. Those in non-exempt and/or hourly positions
receive overtime payment for time worked above the
standard workweek.
For those U.S.-based employee-partners who are paid"
Cintas_2022_ESGReport.txt,"egulations.
U.S.- and Canada-based employee-partners who work
in positions that meet the standards and responsibilities
required for an exemption are paid their annual
salary. Those in non-exempt and/or hourly positions
receive overtime payment for time worked above the
standard workweek.
For those U.S.-based employee-partners who are paid
on an hourly basis, our entry-level minimum wage is
at least $15.00 per hour. This figure is adjusted, as
necessary, based on work experience, the geographic
location of the employee-partner’s work facility and/"
Cintas_2022_ESGReport.txt,"d employee-partners who are paid
on an hourly basis, our entry-level minimum wage is
at least $15.00 per hour. This figure is adjusted, as
necessary, based on work experience, the geographic
location of the employee-partner’s work facility and/
or other overriding local or state minimum wage
requirements. This figure is higher than the current
U.S. federal minimum wage for non-tipped employees
($7.25 per hour), which went into effect in 2009. The
entry-level minimum wage for our Canadian hourly
employee-partners is at least $15.00 CAD per hour"
Cintas_2022_ESGReport.txt,"ployees
($7.25 per hour), which went into effect in 2009. The
entry-level minimum wage for our Canadian hourly
employee-partners is at least $15.00 CAD per hour
and may also be adjusted as necessary.
59CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EXECUTIVE COMPENSATION COLLECTIVE REWARDS FOR • Health insurance plans, including medical,
prescription drug, dental, and vision components
Our executive compensation plan is designed to COMPANY PERFORMANCE
support the company’s Principal Objective to exceed Our compensation plan rewards our employee-partners • The Partners’ Plan, including retirement savings"
Cintas_2022_ESGReport.txt,"s
Our executive compensation plan is designed to COMPANY PERFORMANCE
support the company’s Principal Objective to exceed Our compensation plan rewards our employee-partners • The Partners’ Plan, including retirement savings
our customers’ expectations by maximizing the long- for the company’s overall financial performance and options with a company match, and other
term value of Cintas for its shareholders and working health. The company has established a robust retirement company contributions
employee-partners. The Compensation Committee savings and investment program – The Partners Plan –"
Cintas_2022_ESGReport.txt,"health. The company has established a robust retirement company contributions
employee-partners. The Compensation Committee savings and investment program – The Partners Plan –
• Retirement savings and company contributions
of the Board of Directors, which is composed of all which includes three components: a traditional 401(k)
• Paid time off
independent Directors, conducts an annual review of account, profit sharing, and an ESOP.
our executive compensation strategy. This includes • Paid leave
Every employee-partner is eligible to participate in the"
Cintas_2022_ESGReport.txt,"centives, annual cash payments, our ESOP and profit sharing. • Basic life insurance
and long-term equity incentives, as well as health,
Each year, the Board of Directors allocates the company’s We also offer free programs designed to support
retirement, and other benefits.
discretionary contributions to The Partners Plan based healthy living, preparing for parenthood, and
Further, the Board of Directors reviews the results on the prior year’s financial performance, and those commuting expenses.
of our annual “say-on-pay” vote for insight into our funds are distributed to qualified employee-partners’"
Cintas_2022_ESGReport.txt,"efits.
discretionary contributions to The Partners Plan based healthy living, preparing for parenthood, and
Further, the Board of Directors reviews the results on the prior year’s financial performance, and those commuting expenses.
of our annual “say-on-pay” vote for insight into our funds are distributed to qualified employee-partners’
shareholders’ views on our executive compensation. plans annually. Medical and Health Insurance Programs
This vote is monitored, and the shareholders’ opinions
Cintas provides employee-partners with access to"
Cintas_2022_ESGReport.txt,"muting expenses.
of our annual “say-on-pay” vote for insight into our funds are distributed to qualified employee-partners’
shareholders’ views on our executive compensation. plans annually. Medical and Health Insurance Programs
This vote is monitored, and the shareholders’ opinions
Cintas provides employee-partners with access to
Additionally, a certain percentage of management-level
are taken into account. These factors, as well as the
multiple medical insurance plans, along with prescription
employee-partners have compensation plans that include"
Cintas_2022_ESGReport.txt,"hareholders’ opinions
Cintas provides employee-partners with access to
Additionally, a certain percentage of management-level
are taken into account. These factors, as well as the
multiple medical insurance plans, along with prescription
employee-partners have compensation plans that include
program’s effectiveness and alignment with the annual
drug, dental, and vision insurance coverage.
components tied to the company’s annual and long-term
review of business practices, are considered when the
Compensation Committee reviews changes to the performance and individually defined performance goals U.S.-based employee-partners can choose to participate"
Cintas_2022_ESGReport.txt,"o the company’s annual and long-term
review of business practices, are considered when the
Compensation Committee reviews changes to the performance and individually defined performance goals U.S.-based employee-partners can choose to participate
executive compensation program. for initiatives like safety and leadership development. in a selection of national health care plans that offer
varying levels and combinations of co-pays, deductibles,
To support the goals of this program, the Board has
EMPLOYEE-PARTNER BENEFITS and out-of-pocket expenses, including a free health"
Cintas_2022_ESGReport.txt,"the performance and individually defined performance goals U.S.-based employee-partners can choose to participate
executive compensation program. for initiatives like safety and leadership development. in a selection of national health care plans that offer
varying levels and combinations of co-pays, deductibles,
To support the goals of this program, the Board has
EMPLOYEE-PARTNER BENEFITS and out-of-pocket expenses, including a free health
adopted an anti-hedging policy and a claw-back policy.
insurance option. Canada-based employee-partners can"
Cintas_2022_ESGReport.txt,"goals U.S.-based employee-partners can choose to participate
executive compensation program. for initiatives like safety and leadership development. in a selection of national health care plans that offer
varying levels and combinations of co-pays, deductibles,
To support the goals of this program, the Board has
EMPLOYEE-PARTNER BENEFITS and out-of-pocket expenses, including a free health
adopted an anti-hedging policy and a claw-back policy.
insurance option. Canada-based employee-partners can
All full-time and part-time employee-partners can enroll"
Cintas_2022_ESGReport.txt,"d part-time employee-partners can enroll
It also has established standards for executive payment
elect to participate in Cintas-provided medical insurance
in our comprehensive benefits program, and they
upon termination, retirement, and death or disability.
plans that supplement the country’s universal health
can decide to enroll in the entire program or choose
care system.
More information about our Board and executive components a la carte.
compensation strategy is available in our 2022 Proxy
Employee-partners may also elect to open a Health"
Cintas_2022_ESGReport.txt,"as established standards for executive payment
elect to participate in Cintas-provided medical insurance
in our comprehensive benefits program, and they
upon termination, retirement, and death or disability.
plans that supplement the country’s universal health
can decide to enroll in the entire program or choose
care system.
More information about our Board and executive components a la carte.
compensation strategy is available in our 2022 Proxy
Employee-partners may also elect to open a Health
Employee-partners become eligible for most contributory"
Cintas_2022_ESGReport.txt,"egy is available in our 2022 Proxy
Employee-partners may also elect to open a Health
Employee-partners become eligible for most contributory
Statement. This includes specific information on the
Care Flexible Spending Account or Health Savings
benefit options after 30 days of employment, while our
programs, how they are determined and reviewed,
Account with eligibility based on their medical plan
retirement package has different eligibility criteria.
our executives’ annual compensation goals and
elections. These savings plans allow employee-partners"
Cintas_2022_ESGReport.txt,"y also elect to open a Health
Employee-partners become eligible for most contributory
Statement. This includes specific information on the
Care Flexible Spending Account or Health Savings
benefit options after 30 days of employment, while our
programs, how they are determined and reviewed,
Account with eligibility based on their medical plan
retirement package has different eligibility criteria.
our executives’ annual compensation goals and
elections. These savings plans allow employee-partners
performance, and compensation ratios. Our benefits program seeks to support our employee- to put pre-tax dollars aside for medical co-payments,"
Cintas_2022_ESGReport.txt,"on goals and
elections. These savings plans allow employee-partners
performance, and compensation ratios. Our benefits program seeks to support our employee- to put pre-tax dollars aside for medical co-payments,
partners’ holistic health, including their physical health, prescription co-pays, deductible payments, and other
mental health, and financial health, and includes: eligible health care expenses.
60CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Our employee-partners can reduce their health PARTNERS PLAN AND"
Cintas_2022_ESGReport.txt,"l co-payments,
partners’ holistic health, including their physical health, prescription co-pays, deductible payments, and other
mental health, and financial health, and includes: eligible health care expenses.
60CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Our employee-partners can reduce their health PARTNERS PLAN AND
insurance contributions by participating in confidential
RETIREMENT SUPPORT
annual personal health evaluations and health screening,
Our employee-partners are eligible for The Partners"
Cintas_2022_ESGReport.txt,"R ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Our employee-partners can reduce their health PARTNERS PLAN AND
insurance contributions by participating in confidential
RETIREMENT SUPPORT
annual personal health evaluations and health screening,
Our employee-partners are eligible for The Partners
including basic preventive blood tests.
Plan, a three-part retirement program including a
For many years, we’ve offered our Live Well program traditional 401(k) investment account, ESOP, and profit
and encouraged our employee-partners to make sharing. After three months of service, all employee-"
Cintas_2022_ESGReport.txt,"ersonal health evaluations and health screening,
Our employee-partners are eligible for The Partners
including basic preventive blood tests.
Plan, a three-part retirement program including a
For many years, we’ve offered our Live Well program traditional 401(k) investment account, ESOP, and profit
and encouraged our employee-partners to make sharing. After three months of service, all employee-
progress on their health and wellness journeys. The partners are automatically enrolled in our 401(k)
company provides a free annual biometric screening, program. Employee-partners can adjust their percentage"
Cintas_2022_ESGReport.txt,"employee-partners to make sharing. After three months of service, all employee-
progress on their health and wellness journeys. The partners are automatically enrolled in our 401(k)
company provides a free annual biometric screening, program. Employee-partners can adjust their percentage
free annual flu vaccines, free COVID-19 vaccines, of contribution any time before or after enrollment.
and access to free tobacco-cessation and discounted
Based on eligibility,22 company matching contributions
weight-loss programs. Further, our Employee Assistance"
Cintas_2022_ESGReport.txt,"of service, all employee-
progress on their health and wellness journeys. The partners are automatically enrolled in our 401(k)
company provides a free annual biometric screening, program. Employee-partners can adjust their percentage
free annual flu vaccines, free COVID-19 vaccines, of contribution any time before or after enrollment.
and access to free tobacco-cessation and discounted
Based on eligibility,22 company matching contributions
weight-loss programs. Further, our Employee Assistance
are allocated up to the first 10% of employee-partners’"
Cintas_2022_ESGReport.txt,"olled in our 401(k)
company provides a free annual biometric screening, program. Employee-partners can adjust their percentage
free annual flu vaccines, free COVID-19 vaccines, of contribution any time before or after enrollment.
and access to free tobacco-cessation and discounted
Based on eligibility,22 company matching contributions
weight-loss programs. Further, our Employee Assistance
are allocated up to the first 10% of employee-partners’
Program provides complimentary access to counseling
contributions to their 401(k) accounts. Employee-"
Cintas_2022_ESGReport.txt,"co-cessation and discounted
Based on eligibility,22 company matching contributions
weight-loss programs. Further, our Employee Assistance
are allocated up to the first 10% of employee-partners’
Program provides complimentary access to counseling
contributions to their 401(k) accounts. Employee-
for mental health, legal, and financial issues.
partners’ own 401(k) contributions are vested
Cintas provides alternative benefit programs to our immediately, while the company’s contributions fully vest
employee-partners whose benefits packages are after five years."
Cintas_2022_ESGReport.txt,"provides complimentary access to counseling
contributions to their 401(k) accounts. Employee-
for mental health, legal, and financial issues.
partners’ own 401(k) contributions are vested
Cintas provides alternative benefit programs to our immediately, while the company’s contributions fully vest
employee-partners whose benefits packages are after five years.
negotiated separately through their respective collective
Cintas also makes annual discretionary contributions to
bargaining agreements.
employee-partners’ individual retirement accounts in"
Cintas_2022_ESGReport.txt,"butions fully vest
employee-partners whose benefits packages are after five years.
negotiated separately through their respective collective
Cintas also makes annual discretionary contributions to
bargaining agreements.
employee-partners’ individual retirement accounts in
the form of profit sharing and its ESOP. Contributions
Plan Offerings are approved by the Board of Directors based on the
Cintas offers four different health and medical plan company’s financial performance and are distributed
options to support a broad range of personal situations. based on a point system weighted by an employee-"
Cintas_2022_ESGReport.txt,"hrough their respective collective
Cintas also makes annual discretionary contributions to
bargaining agreements.
employee-partners’ individual retirement accounts in
the form of profit sharing and its ESOP. Contributions
Plan Offerings are approved by the Board of Directors based on the
Cintas offers four different health and medical plan company’s financial performance and are distributed
options to support a broad range of personal situations. based on a point system weighted by an employee-
These include plans that cover the employee-partner partner’s company tenure and compensation. Both"
Cintas_2022_ESGReport.txt,"g agreements.
employee-partners’ individual retirement accounts in
the form of profit sharing and its ESOP. Contributions
Plan Offerings are approved by the Board of Directors based on the
Cintas offers four different health and medical plan company’s financial performance and are distributed
options to support a broad range of personal situations. based on a point system weighted by an employee-
These include plans that cover the employee-partner partner’s company tenure and compensation. Both
only, the employee-partner and their spouse, the contributions are made automatically and fully vest"
Cintas_2022_ESGReport.txt,"ESOP. Contributions
Plan Offerings are approved by the Board of Directors based on the
Cintas offers four different health and medical plan company’s financial performance and are distributed
options to support a broad range of personal situations. based on a point system weighted by an employee-
These include plans that cover the employee-partner partner’s company tenure and compensation. Both
only, the employee-partner and their spouse, the contributions are made automatically and fully vest
employee-partner and their child(ren), and the after five years at Cintas."
Cintas_2022_ESGReport.txt,"based on the
Cintas offers four different health and medical plan company’s financial performance and are distributed
options to support a broad range of personal situations. based on a point system weighted by an employee-
These include plans that cover the employee-partner partner’s company tenure and compensation. Both
only, the employee-partner and their spouse, the contributions are made automatically and fully vest
employee-partner and their child(ren), and the after five years at Cintas.
employee-partner and their spouse and child(ren)."
Cintas_2022_ESGReport.txt,"Both
only, the employee-partner and their spouse, the contributions are made automatically and fully vest
employee-partner and their child(ren), and the after five years at Cintas.
employee-partner and their spouse and child(ren).
Since FY’15, Cintas has increased its annual discretionary
Our plans also cover married same-sex domestic contributions. From FY’21 to FY’22, Cintas increased its
partners and grandfathered unmarried same-sex contributions into the U.S. Partners Plan from $73 million
domestic partners who were covered by their employee- to $85 million. Cintas also contributed $4.3 million to"
Cintas_2022_ESGReport.txt,"sed its annual discretionary
Our plans also cover married same-sex domestic contributions. From FY’21 to FY’22, Cintas increased its
partners and grandfathered unmarried same-sex contributions into the U.S. Partners Plan from $73 million
domestic partners who were covered by their employee- to $85 million. Cintas also contributed $4.3 million to
partners’ plans before January 1, 2021, when a spousal its Canadian profit sharing and Registered Retirement
requirement was implemented. Savings Plan.
Of tenure-eligible employee-partners, 100% participate"
Cintas_2022_ESGReport.txt,"s before January 1, 2021, when a spousal its Canadian profit sharing and Registered Retirement
requirement was implemented. Savings Plan.
Of tenure-eligible employee-partners, 100% participate
in the Partners Plan, while our associated workers’
participation rates in their designated 401(k) plans range
from 34% to 60%.
61CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DEFINED-BENEFIT PROGRAMS The company provides an additional seven paid OTHER BENEFITS
holidays (office closures) to U.S.-based employee-"
Cintas_2022_ESGReport.txt,"an profit sharing and Registered Retirement
requirement was implemented. Savings Plan.
Of tenure-eligible employee-partners, 100% participate
in the Partners Plan, while our associated workers’
participation rates in their designated 401(k) plans range
from 34% to 60%.
61CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DEFINED-BENEFIT PROGRAMS The company provides an additional seven paid OTHER BENEFITS
holidays (office closures) to U.S.-based employee-
A select number of our employee-partners covered by Cintas provides a host of other benefits, including basic"
Cintas_2022_ESGReport.txt,"to 60%.
61CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DEFINED-BENEFIT PROGRAMS The company provides an additional seven paid OTHER BENEFITS
holidays (office closures) to U.S.-based employee-
A select number of our employee-partners covered by Cintas provides a host of other benefits, including basic
partners and a minimum of seven paid holidays for
collective bargaining agreements have other retirement life/accidental death and dismemberment (AD&D)
Canada-based employee-partners, including New Year’s"
Cintas_2022_ESGReport.txt,"JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DEFINED-BENEFIT PROGRAMS The company provides an additional seven paid OTHER BENEFITS
holidays (office closures) to U.S.-based employee-
A select number of our employee-partners covered by Cintas provides a host of other benefits, including basic
partners and a minimum of seven paid holidays for
collective bargaining agreements have other retirement life/accidental death and dismemberment (AD&D)
Canada-based employee-partners, including New Year’s
programs in place that Cintas supports, including a insurance to all employee-partners at no cost, as well"
Cintas_2022_ESGReport.txt,"ment life/accidental death and dismemberment (AD&D)
Canada-based employee-partners, including New Year’s
programs in place that Cintas supports, including a insurance to all employee-partners at no cost, as well
Day and Christmas Day. In the United States, Memorial
defined benefit plan that requires employer-partner as voluntary life/AD&D insurance, spouse life/AD&D
Day, Fourth of July, Labor Day, and Thanksgiving are
participation if eligible. insurance, child life/AD&D insurance, and business
also paid holidays. Employee-partners are also afforded"
Cintas_2022_ESGReport.txt,"da-based employee-partners, including New Year’s
programs in place that Cintas supports, including a insurance to all employee-partners at no cost, as well
Day and Christmas Day. In the United States, Memorial
defined benefit plan that requires employer-partner as voluntary life/AD&D insurance, spouse life/AD&D
Day, Fourth of July, Labor Day, and Thanksgiving are
participation if eligible. insurance, child life/AD&D insurance, and business
also paid holidays. Employee-partners are also afforded
travel accident coverage. Employee-partners are"
Cintas_2022_ESGReport.txt,"as voluntary life/AD&D insurance, spouse life/AD&D
Day, Fourth of July, Labor Day, and Thanksgiving are
participation if eligible. insurance, child life/AD&D insurance, and business
also paid holidays. Employee-partners are also afforded
travel accident coverage. Employee-partners are
Additionally, a limited number of partners who remain at an additional day of PTO for their birthdays.
also eligible for short-term disability and long-term
Cintas after joining the company through an acquisition
Employee-partners are also eligible for additional disability coverage."
Cintas_2022_ESGReport.txt,", and business
also paid holidays. Employee-partners are also afforded
travel accident coverage. Employee-partners are
Additionally, a limited number of partners who remain at an additional day of PTO for their birthdays.
also eligible for short-term disability and long-term
Cintas after joining the company through an acquisition
Employee-partners are also eligible for additional disability coverage.
are also beneficiaries of defined benefit plans
bereavement pay, jury duty and witness pay, and
established by their previous companies. Those plans U.S.-based employee-partners can also elect to open"
Cintas_2022_ESGReport.txt,"ys.
also eligible for short-term disability and long-term
Cintas after joining the company through an acquisition
Employee-partners are also eligible for additional disability coverage.
are also beneficiaries of defined benefit plans
bereavement pay, jury duty and witness pay, and
established by their previous companies. Those plans U.S.-based employee-partners can also elect to open
sick pay.
have been frozen and are no longer accruing benefits, a Dependent Care Flexible Spending Account which
but the impacted employee-partners are eligible for The allows parents or caregivers to direct pre-tax dollars to"
Cintas_2022_ESGReport.txt,"ployee-partners can also elect to open
sick pay.
have been frozen and are no longer accruing benefits, a Dependent Care Flexible Spending Account which
but the impacted employee-partners are eligible for The allows parents or caregivers to direct pre-tax dollars to
Partners Plan to augment the defined plan benefits later Maternity and Parental Leave pay for eligible dependent expenses like day-care or
due to them. Cintas has a parental leave policy for all U.S.-based after-school program costs.
employee-partners that encompasses maternity leave,"
Cintas_2022_ESGReport.txt,"e been frozen and are no longer accruing benefits, a Dependent Care Flexible Spending Account which
but the impacted employee-partners are eligible for The allows parents or caregivers to direct pre-tax dollars to
Partners Plan to augment the defined plan benefits later Maternity and Parental Leave pay for eligible dependent expenses like day-care or
due to them. Cintas has a parental leave policy for all U.S.-based after-school program costs.
employee-partners that encompasses maternity leave,
More information about the assets and liabilities of We also offer to our U.S.-based employee-partners a"
Cintas_2022_ESGReport.txt,"rs are eligible for The allows parents or caregivers to direct pre-tax dollars to
Partners Plan to augment the defined plan benefits later Maternity and Parental Leave pay for eligible dependent expenses like day-care or
due to them. Cintas has a parental leave policy for all U.S.-based after-school program costs.
employee-partners that encompasses maternity leave,
More information about the assets and liabilities of We also offer to our U.S.-based employee-partners a
as well as parental leave.
Cintas’ existing defined benefits plans is available in commuter program to assist employee-partners who use"
Cintas_2022_ESGReport.txt,"e defined plan benefits later Maternity and Parental Leave pay for eligible dependent expenses like day-care or
due to them. Cintas has a parental leave policy for all U.S.-based after-school program costs.
employee-partners that encompasses maternity leave,
More information about the assets and liabilities of We also offer to our U.S.-based employee-partners a
as well as parental leave.
Cintas’ existing defined benefits plans is available in commuter program to assist employee-partners who use
our FY’22 Cintas Form 10-K. Maternity leave is available to employee-partners who public transportation to work or those who must pay for"
Cintas_2022_ESGReport.txt,"y leave,
More information about the assets and liabilities of We also offer to our U.S.-based employee-partners a
as well as parental leave.
Cintas’ existing defined benefits plans is available in commuter program to assist employee-partners who use
our FY’22 Cintas Form 10-K. Maternity leave is available to employee-partners who public transportation to work or those who must pay for
meet the eligibility for short-term disability leave after parking. This program allows them to purchase bus or
giving birth to a child. Employee-partners on maternity train tickets or parking permits with pre-tax dollars."
Cintas_2022_ESGReport.txt,"ilable in commuter program to assist employee-partners who use
our FY’22 Cintas Form 10-K. Maternity leave is available to employee-partners who public transportation to work or those who must pay for
meet the eligibility for short-term disability leave after parking. This program allows them to purchase bus or
giving birth to a child. Employee-partners on maternity train tickets or parking permits with pre-tax dollars.
PAID TIME OFF AND LEAVE
leave are eligible for six weeks of 100% pay. Those
Cintas offers employee-partners several paid time off"
Cintas_2022_ESGReport.txt,"who use
our FY’22 Cintas Form 10-K. Maternity leave is available to employee-partners who public transportation to work or those who must pay for
meet the eligibility for short-term disability leave after parking. This program allows them to purchase bus or
giving birth to a child. Employee-partners on maternity train tickets or parking permits with pre-tax dollars.
PAID TIME OFF AND LEAVE
leave are eligible for six weeks of 100% pay. Those
Cintas offers employee-partners several paid time off
employee-partners who have been approved for a"
Cintas_2022_ESGReport.txt,"n maternity train tickets or parking permits with pre-tax dollars.
PAID TIME OFF AND LEAVE
leave are eligible for six weeks of 100% pay. Those
Cintas offers employee-partners several paid time off
employee-partners who have been approved for a
(PTO) and leave benefits to both enjoy time away from
maternity leave longer than six weeks are also eligible
work and attend to personal matters.
for short-term disability pay; they may use PTO in lieu
of short-term disability if they wish.
Paid Time Off
Eligible U.S.-based employee-partners may also take"
Cintas_2022_ESGReport.txt,"e-tax dollars.
PAID TIME OFF AND LEAVE
leave are eligible for six weeks of 100% pay. Those
Cintas offers employee-partners several paid time off
employee-partners who have been approved for a
(PTO) and leave benefits to both enjoy time away from
maternity leave longer than six weeks are also eligible
work and attend to personal matters.
for short-term disability pay; they may use PTO in lieu
of short-term disability if they wish.
Paid Time Off
Eligible U.S.-based employee-partners may also take
All employee-partners are eligible for PTO, which is"
Cintas_2022_ESGReport.txt,"rtners who have been approved for a
(PTO) and leave benefits to both enjoy time away from
maternity leave longer than six weeks are also eligible
work and attend to personal matters.
for short-term disability pay; they may use PTO in lieu
of short-term disability if they wish.
Paid Time Off
Eligible U.S.-based employee-partners may also take
All employee-partners are eligible for PTO, which is
unpaid leave through the Family Medical Leave Act
classified as vacation in Canada. The amount of time
(FMLA). Cintas affords employee-partners a total of"
Cintas_2022_ESGReport.txt,"benefits to both enjoy time away from
maternity leave longer than six weeks are also eligible
work and attend to personal matters.
for short-term disability pay; they may use PTO in lieu
of short-term disability if they wish.
Paid Time Off
Eligible U.S.-based employee-partners may also take
All employee-partners are eligible for PTO, which is
unpaid leave through the Family Medical Leave Act
classified as vacation in Canada. The amount of time
(FMLA). Cintas affords employee-partners a total of
employee-partners are eligible to receive each year is"
Cintas_2022_ESGReport.txt,"hey wish.
Paid Time Off
Eligible U.S.-based employee-partners may also take
All employee-partners are eligible for PTO, which is
unpaid leave through the Family Medical Leave Act
classified as vacation in Canada. The amount of time
(FMLA). Cintas affords employee-partners a total of
employee-partners are eligible to receive each year is
16 weeks of unpaid leave under FMLA (which runs
based on their Cintas tenure and job classification. PTO
concurrently with paid maternity leave). In addition to
allocations for part-time employee-partners are adjusted"
Cintas_2022_ESGReport.txt,"ners may also take
All employee-partners are eligible for PTO, which is
unpaid leave through the Family Medical Leave Act
classified as vacation in Canada. The amount of time
(FMLA). Cintas affords employee-partners a total of
employee-partners are eligible to receive each year is
16 weeks of unpaid leave under FMLA (which runs
based on their Cintas tenure and job classification. PTO
concurrently with paid maternity leave). In addition to
allocations for part-time employee-partners are adjusted
FMLA leave, employee-partners may take two weeks"
Cintas_2022_ESGReport.txt,"ation in Canada. The amount of time
(FMLA). Cintas affords employee-partners a total of
employee-partners are eligible to receive each year is
16 weeks of unpaid leave under FMLA (which runs
based on their Cintas tenure and job classification. PTO
concurrently with paid maternity leave). In addition to
allocations for part-time employee-partners are adjusted
FMLA leave, employee-partners may take two weeks
based on their standard hours worked.
of unpaid parental leave, which is a two-week leave
On June 1, each employee-partner is credited with a that can be utilized if they need time off to care for a"
Cintas_2022_ESGReport.txt,"TO
concurrently with paid maternity leave). In addition to
allocations for part-time employee-partners are adjusted
FMLA leave, employee-partners may take two weeks
based on their standard hours worked.
of unpaid parental leave, which is a two-week leave
On June 1, each employee-partner is credited with a that can be utilized if they need time off to care for a
full year’s worth of PTO, and the total hours credited newborn or adopted child.
are based on the year of service they will attain that
Canada-based employee-partners are eligible for at"
Cintas_2022_ESGReport.txt,"tion to
allocations for part-time employee-partners are adjusted
FMLA leave, employee-partners may take two weeks
based on their standard hours worked.
of unpaid parental leave, which is a two-week leave
On June 1, each employee-partner is credited with a that can be utilized if they need time off to care for a
full year’s worth of PTO, and the total hours credited newborn or adopted child.
are based on the year of service they will attain that
Canada-based employee-partners are eligible for at
year. Additionally, employee-partners may carry"
Cintas_2022_ESGReport.txt,"ave
On June 1, each employee-partner is credited with a that can be utilized if they need time off to care for a
full year’s worth of PTO, and the total hours credited newborn or adopted child.
are based on the year of service they will attain that
Canada-based employee-partners are eligible for at
year. Additionally, employee-partners may carry
least 16 weeks of parental leave, as mandated by their
over a portion of their prior year’s unused PTO. New
respective federal and provincial policies.
employee-partners receive credit for PTO, prorated"
Cintas_2022_ESGReport.txt,"partners are eligible for at
year. Additionally, employee-partners may carry
least 16 weeks of parental leave, as mandated by their
over a portion of their prior year’s unused PTO. New
respective federal and provincial policies.
employee-partners receive credit for PTO, prorated
based on their start date, on their first day of work.
62CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE Managers have access to a wide selection of Hourly Partners
developmental tools and resources to help employee-"
Cintas_2022_ESGReport.txt,"loyee-partners may carry
least 16 weeks of parental leave, as mandated by their
over a portion of their prior year’s unused PTO. New
respective federal and provincial policies.
employee-partners receive credit for PTO, prorated
based on their start date, on their first day of work.
62CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE Managers have access to a wide selection of Hourly Partners
developmental tools and resources to help employee-
Hourly employee-partners and their managers"
Cintas_2022_ESGReport.txt,"heir prior year’s unused PTO. New
respective federal and provincial policies.
employee-partners receive credit for PTO, prorated
based on their start date, on their first day of work.
62CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PERFORMANCE Managers have access to a wide selection of Hourly Partners
developmental tools and resources to help employee-
Hourly employee-partners and their managers
partners improve in many different areas of leadership
AND must also meet annually to review the employee-"
Cintas_2022_ESGReport.txt,"o help employee-
Hourly employee-partners and their managers
partners improve in many different areas of leadership
AND must also meet annually to review the employee-
and other skills, including emotional intelligence,
partners’ performance, as well as ongoing goals
public speaking, delegation, and conflict resolution.
and expectations.
ADVANCEMENT
The performance review process also serves as a
These discussions also include conversations around
platform for potential compensation adjustments
compensation changes, as well as the employee-"
Cintas_2022_ESGReport.txt,"pensation adjustments
compensation changes, as well as the employee-
through merit increases, market adjustments,
Our business relies on the passion, expertise, and the partners’ career progression, including promotional
promotions, and position or responsibility changes.
dedication of our people, and our commitment to their and training opportunities and position and
career development is vital to our company’s success. responsibility changes.
Each year, we undertake a holistic approach to our
employee-partners’ performance and advancement."
Cintas_2022_ESGReport.txt,"et adjustments,
Our business relies on the passion, expertise, and the partners’ career progression, including promotional
promotions, and position or responsibility changes.
dedication of our people, and our commitment to their and training opportunities and position and
career development is vital to our company’s success. responsibility changes.
Each year, we undertake a holistic approach to our
employee-partners’ performance and advancement.
This supports our immediate company and personnel
goals and helps position our employee-partners to"
Cintas_2022_ESGReport.txt,"nsibility changes.
dedication of our people, and our commitment to their and training opportunities and position and
career development is vital to our company’s success. responsibility changes.
Each year, we undertake a holistic approach to our
employee-partners’ performance and advancement.
This supports our immediate company and personnel
goals and helps position our employee-partners to
maximize their performance at Cintas, both today and
throughout their careers.
ANNUAL PERFORMANCE REVIEWS
Corporate policy requires that every employee-partner"
Cintas_2022_ESGReport.txt,"e company and personnel
goals and helps position our employee-partners to
maximize their performance at Cintas, both today and
throughout their careers.
ANNUAL PERFORMANCE REVIEWS
Corporate policy requires that every employee-partner
partake in an annual review of their performance with
their supervisor.
Salaried Partners
For salaried partners, the review process includes
both a self-assessment and a manager assessment of
their performance against their business goals and
developmental targets.
Additionally, salaried employee-partners and their"
Cintas_2022_ESGReport.txt,"s for the coming
year. These typically include two or three measurable
business goals along with individual development plans.
63CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SUCCESSION PLANNING our annual review process and succession planning preferences, including their willingness to relocate
help identify skill and knowledge opportunities. for a new role. This gives managers and supervisors
Succession planning is an integral part of our business
For the company, the results of this comprehensive deeper insight into employee-partners already within"
Cintas_2022_ESGReport.txt,"Succession planning at Cintas is designed to provide a strategy – for both internal candidate development
In addition to our performance review program,
human capital road map for the company for the next and external candidate sourcing.
Cintas management leads an annual succession
three to five years. The process provides leadership
Succession planning also helps us identify and develop planning process. In FY’22, leadership reviewed and
with a detailed analysis of our people and their skills,
the company’s future leaders. Once an employee- discussed the succession plans for more than 70% of"
Cintas_2022_ESGReport.txt,"human capital road map for the company for the next and external candidate sourcing.
Cintas management leads an annual succession
three to five years. The process provides leadership
Succession planning also helps us identify and develop planning process. In FY’22, leadership reviewed and
with a detailed analysis of our people and their skills,
the company’s future leaders. Once an employee- discussed the succession plans for more than 70% of
capabilities, professional interests, and goals. The
partner is identified as having high potential or aptitude, management-level employee-partners."
Cintas_2022_ESGReport.txt,"e, management-level employee-partners.
process is detailed and deliberate, requiring time,
they are offered additional resources and opportunities
attention, and careful consideration from our managers More information about our succession planning
specifically developed to continue their accelerated
and executives alike. and talent development for our CEO and other
career path at Cintas.
executive officers is available in our Corporate
In addition to identifying leadership potential within our
Employee-partners also maintain updated personal Governance Guidelines."
Cintas_2022_ESGReport.txt,"elerated
and executives alike. and talent development for our CEO and other
career path at Cintas.
executive officers is available in our Corporate
In addition to identifying leadership potential within our
Employee-partners also maintain updated personal Governance Guidelines.
organization, it also helps us detect potential knowledge
information about their background, education, awards
or skill gaps that have developed within the last year
and honors, interests, skills, and other professional
as our leadership tree evolves. For employee-partners,"
Cintas_2022_ESGReport.txt,"or our CEO and other
career path at Cintas.
executive officers is available in our Corporate
In addition to identifying leadership potential within our
Employee-partners also maintain updated personal Governance Guidelines.
organization, it also helps us detect potential knowledge
information about their background, education, awards
or skill gaps that have developed within the last year
and honors, interests, skills, and other professional
as our leadership tree evolves. For employee-partners,
EMPLOYEE-PARTNER DEVELOPMENT CYCLE"
Cintas_2022_ESGReport.txt,"and or
w
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Our Employee-Partner Development Cycle helps g"
Cintas_2022_ESGReport.txt,"2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TRAINING AND TRAINING AND CERTIFICATIONS (SSRs), Sales Managers, Service Managers, Production
Supervisors, Production Managers, and General
Frontline partners receive continual training in a
Managers. Each of these training and certification
DEVELOPMENT variety of areas specific to their positions, including
programs lasts several weeks and provides additional
safety training and awareness, position and process
knowledge and background for employee-partners"
Cintas_2022_ESGReport.txt,"ers, and General
Frontline partners receive continual training in a
Managers. Each of these training and certification
DEVELOPMENT variety of areas specific to their positions, including
programs lasts several weeks and provides additional
safety training and awareness, position and process
knowledge and background for employee-partners
certifications, and professional certifications. These may
preparing for, or just entering, these roles.
include Cintas’ award-winning certification program for
Training and development – as well as an employee-"
Cintas_2022_ESGReport.txt,"al training in a
Managers. Each of these training and certification
DEVELOPMENT variety of areas specific to their positions, including
programs lasts several weeks and provides additional
safety training and awareness, position and process
knowledge and background for employee-partners
certifications, and professional certifications. These may
preparing for, or just entering, these roles.
include Cintas’ award-winning certification program for
Training and development – as well as an employee-
partner’s growth resulting from ongoing professional maintenance employee-partners, as well as other federal All production partners who work in our Rental plants"
Cintas_2022_ESGReport.txt,"award-winning certification program for
Training and development – as well as an employee-
partner’s growth resulting from ongoing professional maintenance employee-partners, as well as other federal All production partners who work in our Rental plants
development – is a major component of our or state certifications required for specific positions. and distribution centers undergo a lengthy safety
career development process at Cintas, including training curriculum that includes functional and
Employee-partners in our Rental, First Aid & Safety, and"
Cintas_2022_ESGReport.txt,"ions. and distribution centers undergo a lengthy safety
career development process at Cintas, including training curriculum that includes functional and
Employee-partners in our Rental, First Aid & Safety, and
succession planning. necessary training and awareness coursework to help
Fire Protection divisions all have division-specific training
them perform their jobs in a safe, healthy environment.
curricula to keep them up to date on the latest product
Ongoing training and development are major
components of a Cintas employee-partner’s career and service offerings. They also have specific safety and Employee-partners who drive Cintas vehicles and those"
Cintas_2022_ESGReport.txt,"-partners in our Rental, First Aid & Safety, and
succession planning. necessary training and awareness coursework to help
Fire Protection divisions all have division-specific training
them perform their jobs in a safe, healthy environment.
curricula to keep them up to date on the latest product
Ongoing training and development are major
components of a Cintas employee-partner’s career and service offerings. They also have specific safety and Employee-partners who drive Cintas vehicles and those
path. Each year, throughout the Employee-Partner business trainings to increase their functional knowledge who participate in the company’s personal vehicle"
Cintas_2022_ESGReport.txt,"division-specific training
them perform their jobs in a safe, healthy environment.
curricula to keep them up to date on the latest product
Ongoing training and development are major
components of a Cintas employee-partner’s career and service offerings. They also have specific safety and Employee-partners who drive Cintas vehicles and those
path. Each year, throughout the Employee-Partner business trainings to increase their functional knowledge who participate in the company’s personal vehicle
Development Cycle, managers and employee-partners of the nuances in their respective business lines. lease-back program must participate in a year-round"
Cintas_2022_ESGReport.txt,"pate in the company’s personal vehicle
Development Cycle, managers and employee-partners of the nuances in their respective business lines. lease-back program must participate in a year-round
discuss skills and competencies that can be further Smith System® safe-driving program. This 12-part
Our field partners undergo a rigorous training
established and enhanced. Specific development tracks program provides ongoing safety training, and those
curriculum early on in their Cintas careers, and this
available to help the employee-partner close gaps in lessons are reinforced with our fleet drivers through"
Cintas_2022_ESGReport.txt,"ing, and those
curriculum early on in their Cintas careers, and this
available to help the employee-partner close gaps in lessons are reinforced with our fleet drivers through
program continues as they prepare for each new role
their individual competencies or help them acquire new monthly live driving assessments with a certified Smith
at the company.
knowledge or skills needed for career growth are shared System trainer.
during this process. Each of our divisions also trains and certifies its
employee-partners for various roles in its organization,"
Cintas_2022_ESGReport.txt,"quire new monthly live driving assessments with a certified Smith
at the company.
knowledge or skills needed for career growth are shared System trainer.
during this process. Each of our divisions also trains and certifies its
employee-partners for various roles in its organization,
Every position has a required curriculum or learning
including our Service and Sales Representatives
plan that includes specific trainings and/or certifications,
which Cintas provides and facilitates at no charge to
the employee-partner. At the close of FY’22, there"
Cintas_2022_ESGReport.txt,"culum or learning
including our Service and Sales Representatives
plan that includes specific trainings and/or certifications,
which Cintas provides and facilitates at no charge to
the employee-partner. At the close of FY’22, there
were almost 660 different learning plans created and
associated with each of the company’s existing job codes.
In addition to Cintas’ internal training programs, the
company makes available a wealth of general skill,
proficiency, and aptitude courses and learnings to
employee-partners from third-party and independent"
Cintas_2022_ESGReport.txt,"epresentatives
plan that includes specific trainings and/or certifications,
which Cintas provides and facilitates at no charge to
the employee-partner. At the close of FY’22, there
were almost 660 different learning plans created and
associated with each of the company’s existing job codes.
In addition to Cintas’ internal training programs, the
company makes available a wealth of general skill,
proficiency, and aptitude courses and learnings to
employee-partners from third-party and independent
resources at no cost to employee-partners."
Cintas_2022_ESGReport.txt,"trainings and/or certifications,
which Cintas provides and facilitates at no charge to
the employee-partner. At the close of FY’22, there
were almost 660 different learning plans created and
associated with each of the company’s existing job codes.
In addition to Cintas’ internal training programs, the
company makes available a wealth of general skill,
proficiency, and aptitude courses and learnings to
employee-partners from third-party and independent
resources at no cost to employee-partners.
In FY’22, Cintas employee-partners accumulated more"
Cintas_2022_ESGReport.txt,"ach of the company’s existing job codes.
In addition to Cintas’ internal training programs, the
company makes available a wealth of general skill,
proficiency, and aptitude courses and learnings to
employee-partners from third-party and independent
resources at no cost to employee-partners.
In FY’22, Cintas employee-partners accumulated more
than 865,000 hours of documented training through
Cintas’ Learning & Development (L&D) Department’s
online portal, averaging more than 17 hours of training
per Cintas employee-partner."
Cintas_2022_ESGReport.txt,"raging more than 17 hours of training
per Cintas employee-partner.
65CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PROFESSIONAL AND INSTRUCTIONAL FORMATS Management Trainee Program
DEVELOPMENT TRAINING L&D trainings are offered in a variety of formats, Many of our top leaders began their careers in our
Our L&D group offers a broad range of trainings, including immersive, multiple-day, in-person sessions; Management Trainee (MT) program. Our Executive
seminars, and learning modules to help employee- full-day or half-day seminars; live virtual classes, and Chairman, Scott Farmer, was a member of the very"
Cintas_2022_ESGReport.txt,"our top leaders began their careers in our
Our L&D group offers a broad range of trainings, including immersive, multiple-day, in-person sessions; Management Trainee (MT) program. Our Executive
seminars, and learning modules to help employee- full-day or half-day seminars; live virtual classes, and Chairman, Scott Farmer, was a member of the very
partners learn or further develop skills and enhance online training-on-demand (TOD) modules. These first class of MTs in 1982. President and CEO Todd
their knowledge. While employee-partners are sessions bring employee-partners together from across Schneider and our First Aid & Safety President and"
Cintas_2022_ESGReport.txt,"ott Farmer, was a member of the very
partners learn or further develop skills and enhance online training-on-demand (TOD) modules. These first class of MTs in 1982. President and CEO Todd
their knowledge. While employee-partners are sessions bring employee-partners together from across Schneider and our First Aid & Safety President and
assigned annual curricula based on their current jobs, the United States and Canada. Most of the multiple- Chief Operating Officer, Mark Carter, are also program
the full catalog of course offerings is available to most day classes have historically been taught in person at graduates. Overall, 21 employee-partners currently"
Cintas_2022_ESGReport.txt,"President and CEO Todd
their knowledge. While employee-partners are sessions bring employee-partners together from across Schneider and our First Aid & Safety President and
assigned annual curricula based on their current jobs, the United States and Canada. Most of the multiple- Chief Operating Officer, Mark Carter, are also program
the full catalog of course offerings is available to most day classes have historically been taught in person at graduates. Overall, 21 employee-partners currently
employee-partners who wish to expand their knowledge the company’s corporate headquarters located just in a Vice President role, equivalent role, or higher"
Cintas_2022_ESGReport.txt,"o most day classes have historically been taught in person at graduates. Overall, 21 employee-partners currently
employee-partners who wish to expand their knowledge the company’s corporate headquarters located just in a Vice President role, equivalent role, or higher
base or skill sets. outside Cincinnati. are graduates of our MT program.
These are generally taught by trained Cintas Human The onset of the COVID-19 pandemic in the spring of Management Trainees at Cintas are typically hired upon
Resources and L&D staff, as well as other employee- 2020 forced much of the L&D catalog to be reimagined graduation from college, but some recruits have some"
Cintas_2022_ESGReport.txt,"re typically hired upon
Resources and L&D staff, as well as other employee- 2020 forced much of the L&D catalog to be reimagined graduation from college, but some recruits have some
partners who are specifically trained and certified to so instruction could continue remotely and online, post-graduate work experience already. Our robust
teach different topics and trainings to fellow Cintas either as live virtual classes or as TODs. Because of the campus recruiting program identifies potential MT
employee-partners. program’s success in reaching, engaging, and instructing candidates each year, and the program helps create a"
Cintas_2022_ESGReport.txt,"graduation from college, but some recruits have some
partners who are specifically trained and certified to so instruction could continue remotely and online, post-graduate work experience already. Our robust
teach different topics and trainings to fellow Cintas either as live virtual classes or as TODs. Because of the campus recruiting program identifies potential MT
employee-partners. program’s success in reaching, engaging, and instructing candidates each year, and the program helps create a
employee-partners through virtual class offerings, the sustainable leadership pipeline for the company."
Cintas_2022_ESGReport.txt,"T
employee-partners. program’s success in reaching, engaging, and instructing candidates each year, and the program helps create a
employee-partners through virtual class offerings, the sustainable leadership pipeline for the company.
L&D team continues to offer many of its non-core course
COURSE OFFERINGS MTs gain the skills, tools, and knowledge they need
offerings through virtual means.
The L&D team facilitates a range of department- and to succeed at Cintas through on-the-job training, with
division-specific learning opportunities as new products, To help attendees interact with fellow employee- an intensive, hands-on rotation through many areas"
Cintas_2022_ESGReport.txt,"kills, tools, and knowledge they need
offerings through virtual means.
The L&D team facilitates a range of department- and to succeed at Cintas through on-the-job training, with
division-specific learning opportunities as new products, To help attendees interact with fellow employee- an intensive, hands-on rotation through many areas
initiatives, and campaigns are rolled out. Its centralized partners both in and outside the classroom the L&D of our company, including Sales, Service, Production,
learning portal gives employee-partners access to the team has also begun offering key, multiple-day courses Operations, and Administration. They also have an"
Cintas_2022_ESGReport.txt,", Service, Production,
learning portal gives employee-partners access to the team has also begun offering key, multiple-day courses Operations, and Administration. They also have an
information in a consolidated and convenient manner in the curriculum exclusively through in-person sessions. extensive training curriculum that gives them a wide
and allows them to learn more about our business. background of our entire organization, including each
business division.
OTHER DEVELOPMENT OPPORTUNITIES
Management-track employee-partners take"
Cintas_2022_ESGReport.txt,"consolidated and convenient manner in the curriculum exclusively through in-person sessions. extensive training curriculum that gives them a wide
and allows them to learn more about our business. background of our entire organization, including each
business division.
OTHER DEVELOPMENT OPPORTUNITIES
Management-track employee-partners take
additional class-based training sessions so they are Beyond formal training and certifications, we offer and At the end of the 15-month program, Cintas works
better positioned to lead and manage at Cintas. facilitate other opportunities for employee-partners to with trainees to place them in full-time positions, which"
Cintas_2022_ESGReport.txt,"to learn more about our business. background of our entire organization, including each
business division.
OTHER DEVELOPMENT OPPORTUNITIES
Management-track employee-partners take
additional class-based training sessions so they are Beyond formal training and certifications, we offer and At the end of the 15-month program, Cintas works
better positioned to lead and manage at Cintas. facilitate other opportunities for employee-partners to with trainees to place them in full-time positions, which
New managers, or employee-partners who have gain further insight, experience, and support on the job. usually include field sales or service positions and then"
Cintas_2022_ESGReport.txt,"in full-time positions, which
New managers, or employee-partners who have gain further insight, experience, and support on the job. usually include field sales or service positions and then
demonstrated leadership or management potential, can These include our Management Trainee program, our management roles. This progression of responsibilities
also enroll in training courses that help them effectively ELP, and our mentor program. Additionally, we offer six helps accelerate their career paths.
manage their locations. In addition, these employee- PBRGs that support our employee-partners in all stages"
Cintas_2022_ESGReport.txt,"o enroll in training courses that help them effectively ELP, and our mentor program. Additionally, we offer six helps accelerate their career paths.
manage their locations. In addition, these employee- PBRGs that support our employee-partners in all stages
The MT class that entered the program in FY’22
partners can also participate in division-specific of their careers.
comprises 251 members, including 32% women
bootcamps to gain the knowledge they need to lead
and 21% with diverse backgrounds.
other employee-partners to success."
Cintas_2022_ESGReport.txt,"% women
bootcamps to gain the knowledge they need to lead
and 21% with diverse backgrounds.
other employee-partners to success.
66CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
Executive Leadership Program Mentoring believe each unique mentor–mentee relationship
should have a specific and defined purpose, as well as
We launched our ELP in 2015 to help identify and Cintas is an advocate of professional mentoring, and it
objectives, goals, and outcomes.
increase the pool of diverse employee-partners best forms a universal element of our development strategy."
Cintas_2022_ESGReport.txt,"ns they enter the program with a strong
mentee relationships should be professional and
and General Manager roles at our locations across
understanding of the process, its application, and when
situationally based, and that the mentee’s current
the organization.
to recognize that a mentor–mentee relationship has
development needs are focused upon. We feel strongly
come to its natural end.
Initially, one ELP class was conducted annually, exposing that when a formal mentoring process is followed,
about 25 employee-partners a year to the advanced the mentee receives the greatest benefits from"
Cintas_2022_ESGReport.txt,"al Manager roles at our locations across
understanding of the process, its application, and when
situationally based, and that the mentee’s current
the organization.
to recognize that a mentor–mentee relationship has
development needs are focused upon. We feel strongly
come to its natural end.
Initially, one ELP class was conducted annually, exposing that when a formal mentoring process is followed,
about 25 employee-partners a year to the advanced the mentee receives the greatest benefits from
Employee-partners may be paired with a mentor to help"
Cintas_2022_ESGReport.txt,"that a mentor–mentee relationship has
development needs are focused upon. We feel strongly
come to its natural end.
Initially, one ELP class was conducted annually, exposing that when a formal mentoring process is followed,
about 25 employee-partners a year to the advanced the mentee receives the greatest benefits from
Employee-partners may be paired with a mentor to help
curriculum. In 2021, we began running two concurrent the relationship.
assist acclimation to a new role or department, or to
sessions and increased participation to 35-40 employee-"
Cintas_2022_ESGReport.txt,"when a formal mentoring process is followed,
about 25 employee-partners a year to the advanced the mentee receives the greatest benefits from
Employee-partners may be paired with a mentor to help
curriculum. In 2021, we began running two concurrent the relationship.
assist acclimation to a new role or department, or to
sessions and increased participation to 35-40 employee-
help seed relationships in a complementary discipline.
Much consideration goes into creating mentorship
partners per year.
Employee-partners often begin with one mentor, and"
Cintas_2022_ESGReport.txt,"best position mentors to
then change mentors as they develop in their roles,
The goal of the 10-month program is to further guide their mentees on their current career path and
change positions, or advance in leadership. The cycle
enhance participants’ leadership skills, Cintas business help them obtain the necessary skills, knowledge,
continues when they become mentors themselves and
knowledge, and visibility to our company’s top leaders professional relationships, and insight to take the next
guide newer employee-partners starting their Cintas"
Cintas_2022_ESGReport.txt,"p them obtain the necessary skills, knowledge,
continues when they become mentors themselves and
knowledge, and visibility to our company’s top leaders professional relationships, and insight to take the next
guide newer employee-partners starting their Cintas
at a key stage of their management careers. Participants steps in their careers. Mentor–mentee relationships are
careers. Most members of our leadership team continue
are nominated by company leaders. formed to support professional goals.
to mentor employee-partners and are trusted to"
Cintas_2022_ESGReport.txt,"f leaders.
philosophies, and general business strategies. The L&D helping develop our current and future leaders. We
Organizational Development Team, in coordination
with company executives, has created three unique
leadership seminars for the ELP.
Each participant also works directly with an executive
mentor during the program for additional one-on-
one advice. Program participants undertake a 360°
assessment and receive personalized feedback as
part of their ongoing development. Overall, more
than 150 employee-partners have graduated from our"
Cintas_2022_ESGReport.txt,"evelopment. Overall, more
than 150 employee-partners have graduated from our
ELP. Women represent more than 45% of program
graduates, while more than 40% of graduates are from
diverse backgrounds. At the start of FY’23, more than
20 who were in General Manager or corporate Director-
level positions are ELP graduates.
67CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
PBRG s: CAREER DEVELOPMENT
Our PBRG missions not only align with our
Employee-partners"
Cintas_2022_ESGReport.txt,"ates are from
diverse backgrounds. At the start of FY’23, more than
20 who were in General Manager or corporate Director-
level positions are ELP graduates.
67CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
PBRG s: CAREER DEVELOPMENT
Our PBRG missions not only align with our
Employee-partners
SUPPORTING business objectives and help us secure continued in the LGBTQ+
competitiveness, but also provide a platform for community and allies
our employee-partners to grow and connect with"
Cintas_2022_ESGReport.txt,"VERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
PBRG s: CAREER DEVELOPMENT
Our PBRG missions not only align with our
Employee-partners
SUPPORTING business objectives and help us secure continued in the LGBTQ+
competitiveness, but also provide a platform for community and allies
our employee-partners to grow and connect with
PARTNER
partners from similar backgrounds.
While our mentor program is built on skill- and job- Asian and Pacific
DEVELOPMENT Island (API)
based criteria, our PBRGs are based on common
employee-partners"
Cintas_2022_ESGReport.txt,"T
Our PBRG missions not only align with our
Employee-partners
SUPPORTING business objectives and help us secure continued in the LGBTQ+
competitiveness, but also provide a platform for community and allies
our employee-partners to grow and connect with
PARTNER
partners from similar backgrounds.
While our mentor program is built on skill- and job- Asian and Pacific
DEVELOPMENT Island (API)
based criteria, our PBRGs are based on common
employee-partners
backgrounds and shared experiences. We also
believe that the PBRGs give our employee-partners"
Cintas_2022_ESGReport.txt,"r program is built on skill- and job- Asian and Pacific
DEVELOPMENT Island (API)
based criteria, our PBRGs are based on common
employee-partners
backgrounds and shared experiences. We also
believe that the PBRGs give our employee-partners
Our Partner Business Resource Groups (PBRGs),
a louder voice, additional leadership opportunities,
Cintas’ workplace affinity groups, are an important Black and
and greater access to management.
African American
element in our overall human resources and human
employee-partners"
Cintas_2022_ESGReport.txt,"d criteria, our PBRGs are based on common
employee-partners
backgrounds and shared experiences. We also
believe that the PBRGs give our employee-partners
Our Partner Business Resource Groups (PBRGs),
a louder voice, additional leadership opportunities,
Cintas’ workplace affinity groups, are an important Black and
and greater access to management.
African American
element in our overall human resources and human
employee-partners
capital strategy. PBRG leadership, past and present, is active and
visible throughout our organization. Employee-"
Cintas_2022_ESGReport.txt,"-partners
Our Partner Business Resource Groups (PBRGs),
a louder voice, additional leadership opportunities,
Cintas’ workplace affinity groups, are an important Black and
and greater access to management.
African American
element in our overall human resources and human
employee-partners
capital strategy. PBRG leadership, past and present, is active and
visible throughout our organization. Employee-
Cintas has established six PBRGs to support specific
partners who accept PBRG leadership roles –
groups of employee-partners. These include IMPACT"
Cintas_2022_ESGReport.txt,"rican
element in our overall human resources and human
employee-partners
capital strategy. PBRG leadership, past and present, is active and
visible throughout our organization. Employee-
Cintas has established six PBRGs to support specific
partners who accept PBRG leadership roles –
groups of employee-partners. These include IMPACT
including president, vice president, and committee
Hispanic and Latin
for our LGBTQ+ community and their allies, LEAD
assignments – are actively engaged with a broad
employee-partners"
Cintas_2022_ESGReport.txt,"o support specific
partners who accept PBRG leadership roles –
groups of employee-partners. These include IMPACT
including president, vice president, and committee
Hispanic and Latin
for our LGBTQ+ community and their allies, LEAD
assignments – are actively engaged with a broad
employee-partners
for our partners from Asian and Pacific Island (API)
cross-section of our company, from the field all
heritages; RISE2 for our Black and African American
the way up to the executive offices. Many of our
employee-partners; TODOS for our Hispanic and"
Cintas_2022_ESGReport.txt,"include IMPACT
including president, vice president, and committee
Hispanic and Latin
for our LGBTQ+ community and their allies, LEAD
assignments – are actively engaged with a broad
employee-partners
for our partners from Asian and Pacific Island (API)
cross-section of our company, from the field all
heritages; RISE2 for our Black and African American
the way up to the executive offices. Many of our
employee-partners; TODOS for our Hispanic and
PBRGs also have field chapters that help bring the
Latin employee-partners; VALOR for our veteran and"
Cintas_2022_ESGReport.txt,"eir allies, LEAD
assignments – are actively engaged with a broad
employee-partners
for our partners from Asian and Pacific Island (API)
cross-section of our company, from the field all
heritages; RISE2 for our Black and African American
the way up to the executive offices. Many of our
employee-partners; TODOS for our Hispanic and
PBRGs also have field chapters that help bring the
Latin employee-partners; VALOR for our veteran and
goals and ambitions of formalized development
Military-affiliated
military-affiliated employee-partners; and WAVE for"
Cintas_2022_ESGReport.txt,"with a broad
employee-partners
for our partners from Asian and Pacific Island (API)
cross-section of our company, from the field all
heritages; RISE2 for our Black and African American
the way up to the executive offices. Many of our
employee-partners; TODOS for our Hispanic and
PBRGs also have field chapters that help bring the
Latin employee-partners; VALOR for our veteran and
goals and ambitions of formalized development
Military-affiliated
military-affiliated employee-partners; and WAVE for
to employee-partners throughout the United employee-partners"
Cintas_2022_ESGReport.txt,"d Pacific Island (API)
cross-section of our company, from the field all
heritages; RISE2 for our Black and African American
the way up to the executive offices. Many of our
employee-partners; TODOS for our Hispanic and
PBRGs also have field chapters that help bring the
Latin employee-partners; VALOR for our veteran and
goals and ambitions of formalized development
Military-affiliated
military-affiliated employee-partners; and WAVE for
to employee-partners throughout the United employee-partners
our female employee-partners."
Cintas_2022_ESGReport.txt,"nic and
PBRGs also have field chapters that help bring the
Latin employee-partners; VALOR for our veteran and
goals and ambitions of formalized development
Military-affiliated
military-affiliated employee-partners; and WAVE for
to employee-partners throughout the United employee-partners
our female employee-partners.
States and Canada. This helps to promote stronger
connections to our corporate development strategy
IMPACT and LEAD were created in 2022 in
and goals, and makes connections between
response to our company’s growing employee-"
Cintas_2022_ESGReport.txt,"help bring the
Latin employee-partners; VALOR for our veteran and
goals and ambitions of formalized development
Military-affiliated
military-affiliated employee-partners; and WAVE for
to employee-partners throughout the United employee-partners
our female employee-partners.
States and Canada. This helps to promote stronger
connections to our corporate development strategy
IMPACT and LEAD were created in 2022 in
and goals, and makes connections between
response to our company’s growing employee-
employee-partners across our company who may"
Cintas_2022_ESGReport.txt,"velopment
Military-affiliated
military-affiliated employee-partners; and WAVE for
to employee-partners throughout the United employee-partners
our female employee-partners.
States and Canada. This helps to promote stronger
connections to our corporate development strategy
IMPACT and LEAD were created in 2022 in
and goals, and makes connections between
response to our company’s growing employee-
employee-partners across our company who may
partner populations and their appetite for group- Female
based, collaborative development resources. not otherwise have the chance to cross paths. employee-partners"
Cintas_2022_ESGReport.txt,"EAD were created in 2022 in
and goals, and makes connections between
response to our company’s growing employee-
employee-partners across our company who may
partner populations and their appetite for group- Female
based, collaborative development resources. not otherwise have the chance to cross paths. employee-partners
Our PBRGs have gained national attention. For
PBRGs provide members with outlets to lend
example, TODOS – our PBRG to support our
their voices and perspectives, and with spaces
Hispanic and Latin employee-partners – is a two-"
Cintas_2022_ESGReport.txt,"development resources. not otherwise have the chance to cross paths. employee-partners
Our PBRGs have gained national attention. For
PBRGs provide members with outlets to lend
example, TODOS – our PBRG to support our
their voices and perspectives, and with spaces
Hispanic and Latin employee-partners – is a two-
where they can share experiences and support
time finalist (2020 and 2021) in the U.S. Hispanic
one another. They also provide a platform for
Chamber of Commerce Annual Conference’s ERG
management to hear from our employee-partners"
Cintas_2022_ESGReport.txt,"chance to cross paths. employee-partners
Our PBRGs have gained national attention. For
PBRGs provide members with outlets to lend
example, TODOS – our PBRG to support our
their voices and perspectives, and with spaces
Hispanic and Latin employee-partners – is a two-
where they can share experiences and support
time finalist (2020 and 2021) in the U.S. Hispanic
one another. They also provide a platform for
Chamber of Commerce Annual Conference’s ERG
management to hear from our employee-partners
(Employee Resource Group) Challenge."
Cintas_2022_ESGReport.txt,"loyee-partners – is a two-
where they can share experiences and support
time finalist (2020 and 2021) in the U.S. Hispanic
one another. They also provide a platform for
Chamber of Commerce Annual Conference’s ERG
management to hear from our employee-partners
(Employee Resource Group) Challenge.
directly about the issues that matter most to
them. It’s a two-way dialogue that we believe
benefits everyone.
68CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE- We monitor the general engagement of our workforce In the Fall of 2022, we launched our most recent"
Cintas_2022_ESGReport.txt,".S. Hispanic
one another. They also provide a platform for
Chamber of Commerce Annual Conference’s ERG
management to hear from our employee-partners
(Employee Resource Group) Challenge.
directly about the issues that matter most to
them. It’s a two-way dialogue that we believe
benefits everyone.
68CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE- We monitor the general engagement of our workforce In the Fall of 2022, we launched our most recent
through surveys to stay abreast of our employee- company-wide engagement survey. The anonymous,"
Cintas_2022_ESGReport.txt,"’s ERG
management to hear from our employee-partners
(Employee Resource Group) Challenge.
directly about the issues that matter most to
them. It’s a two-way dialogue that we believe
benefits everyone.
68CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE- We monitor the general engagement of our workforce In the Fall of 2022, we launched our most recent
through surveys to stay abreast of our employee- company-wide engagement survey. The anonymous,
partners’ current attitudes and opinions. We then review 26-question survey took employee-partners"
Cintas_2022_ESGReport.txt,"titudes and opinions. We then review 26-question survey took employee-partners
PARTNER
the results and identify adjustments that can help drive approximately 10 minutes to complete.
deeper engagement. We partner with Willis Towers
Since our last survey, which was administered in 2018,
ENGAGEMENT Watson (WTW) to administer those engagement surveys.
the world has changed as a result of the COVID-19
Our surveys include corporate- and location-based pandemic. We recognize those changes and that new
questions to help gauge our employee-partners’ challenges and opportunities now face the company,"
Cintas_2022_ESGReport.txt,"and identify adjustments that can help drive approximately 10 minutes to complete.
deeper engagement. We partner with Willis Towers
Since our last survey, which was administered in 2018,
ENGAGEMENT Watson (WTW) to administer those engagement surveys.
the world has changed as a result of the COVID-19
Our surveys include corporate- and location-based pandemic. We recognize those changes and that new
questions to help gauge our employee-partners’ challenges and opportunities now face the company,
We believe that our employee-partners reach their full"
Cintas_2022_ESGReport.txt,"tely 10 minutes to complete.
deeper engagement. We partner with Willis Towers
Since our last survey, which was administered in 2018,
ENGAGEMENT Watson (WTW) to administer those engagement surveys.
the world has changed as a result of the COVID-19
Our surveys include corporate- and location-based pandemic. We recognize those changes and that new
questions to help gauge our employee-partners’ challenges and opportunities now face the company,
We believe that our employee-partners reach their full
feelings about the company as a whole and their our employee-partners, and the workforce. This year’s"
Cintas_2022_ESGReport.txt,"pandemic. We recognize those changes and that new
questions to help gauge our employee-partners’ challenges and opportunities now face the company,
We believe that our employee-partners reach their full
feelings about the company as a whole and their our employee-partners, and the workforce. This year’s
potential in an inclusive environment, and that they do
specific worksites. survey reflected those changes and set out with six
their best work when they are highly engaged with the
main goals:
company and their fellow employee-partners. After the surveys are completed, WTW analyzes and"
Cintas_2022_ESGReport.txt,"y are highly engaged with the
main goals:
company and their fellow employee-partners. After the surveys are completed, WTW analyzes and
evaluates the data with focuses on both the corporate 1. Understand our current culture in the context
As a service provider, we’ve seen the benefit of an
and location level, and provides our management team of internal and external influences since 2019
engaged and fulfilled workforce, and what it means
with the results. Once the results are delivered, company
for our customers. Further, academic and industry 2. Measure our employee-partners’ level"
Cintas_2022_ESGReport.txt,"it of an
and location level, and provides our management team of internal and external influences since 2019
engaged and fulfilled workforce, and what it means
with the results. Once the results are delivered, company
for our customers. Further, academic and industry 2. Measure our employee-partners’ level
leadership develops cooperative action plans with both
research has proven the direct connection between of engagement and what we can do to
corporate department and location management teams
employee loyalty and engagement on crucial company impact engagement"
Cintas_2022_ESGReport.txt,"rs. Further, academic and industry 2. Measure our employee-partners’ level
leadership develops cooperative action plans with both
research has proven the direct connection between of engagement and what we can do to
corporate department and location management teams
employee loyalty and engagement on crucial company impact engagement
to address opportunities identified by the survey results.
performance indicators such as customer loyalty, return 3. Better understand what may attract and retain
on investment, and financial performance. employee-partners to Cintas"
Cintas_2022_ESGReport.txt,"ur Cintas Health and Safety Management Engaged leaders prioritize safety and make the
System (CHSMS) is modeled after the ISO 45001 achievement of safety excellence possible. Partners
and OSHA VPP safety and health management emulate the safety leadership and engagement
Safety has always been important to us – it’s part systems. It’s been developed to identify hazards exhibited by their leaders.
of our desire to run our company ethically and to and safety concerns; implement safer processes and
2. Frontline employee-partner engagement"
Cintas_2022_ESGReport.txt,"gaged leaders prioritize safety and make the
System (CHSMS) is modeled after the ISO 45001 achievement of safety excellence possible. Partners
and OSHA VPP safety and health management emulate the safety leadership and engagement
Safety has always been important to us – it’s part systems. It’s been developed to identify hazards exhibited by their leaders.
of our desire to run our company ethically and to and safety concerns; implement safer processes and
2. Frontline employee-partner engagement
support the work our employee-partners do on our improvements; and monitor our organization for safety-"
Cintas_2022_ESGReport.txt,"s always been important to us – it’s part systems. It’s been developed to identify hazards exhibited by their leaders.
of our desire to run our company ethically and to and safety concerns; implement safer processes and
2. Frontline employee-partner engagement
support the work our employee-partners do on our improvements; and monitor our organization for safety-
Engagement is essential to achieve safety excellence.
behalf. We prioritize an organization-wide culture of enhancement opportunities.
Frontline employee-partners are consulted in the"
Cintas_2022_ESGReport.txt,"their leaders.
of our desire to run our company ethically and to and safety concerns; implement safer processes and
2. Frontline employee-partner engagement
support the work our employee-partners do on our improvements; and monitor our organization for safety-
Engagement is essential to achieve safety excellence.
behalf. We prioritize an organization-wide culture of enhancement opportunities.
Frontline employee-partners are consulted in the
safety that constantly innovates better and safer ways
Our CHSMS system applies to all Cintas employee- development of the CHSMS, and participate in the"
Cintas_2022_ESGReport.txt,"tices, and
partners, contractors, vendors, and visitors at our processes to plan, support, operate, and continually
recognizes ongoing improvements in our practices
facilities, as well traveling to and from – and working evaluate its effectiveness.
and performance.
at – our customer locations. Our CHSMS also
3. Hazard and incident prevention
We’re exceptionally proud of Cintas’ reputation for complements our Corporate Culture, fulfilling deeper By identifying and trying to eliminate hazards and
our world-class management of – and innovation in – employee-partner engagement, buy-in, participation incidents, we get closer to our vision of an injury-"
Cintas_2022_ESGReport.txt,"ractices
facilities, as well traveling to and from – and working evaluate its effectiveness.
and performance.
at – our customer locations. Our CHSMS also
3. Hazard and incident prevention
We’re exceptionally proud of Cintas’ reputation for complements our Corporate Culture, fulfilling deeper By identifying and trying to eliminate hazards and
our world-class management of – and innovation in – employee-partner engagement, buy-in, participation incidents, we get closer to our vision of an injury-
employee-partner safety and health. It’s a commitment and accountability. free workplace."
Cintas_2022_ESGReport.txt,"in our CHSMS are based on relevant 4. Safety responsiveness
spelled out in our ambitious Safety Vision.
international, federal, and local laws and regulations; Our collective response to an injury, near miss or
With the added focus on safety for nearly the last applicable standards, including the American National safety hazard helps underscore the importance of
15 years, we’ve lowered our incident rates dramatically, Standards Institute (ANSI), The CSA Group (formerly the safety at a location.
creating, hand in hand with our employee-partners, Canadian Standards Association), and the International"
Cintas_2022_ESGReport.txt,"local laws and regulations; Our collective response to an injury, near miss or
With the added focus on safety for nearly the last applicable standards, including the American National safety hazard helps underscore the importance of
15 years, we’ve lowered our incident rates dramatically, Standards Institute (ANSI), The CSA Group (formerly the safety at a location.
creating, hand in hand with our employee-partners, Canadian Standards Association), and the International
5. Organizational culture
a safer workplace. Involving our frontline workers has Organization for Standardization (ISO); and technical How a location fosters and grows employee-partner"
Cintas_2022_ESGReport.txt,"ng the American National safety hazard helps underscore the importance of
15 years, we’ve lowered our incident rates dramatically, Standards Institute (ANSI), The CSA Group (formerly the safety at a location.
creating, hand in hand with our employee-partners, Canadian Standards Association), and the International
5. Organizational culture
a safer workplace. Involving our frontline workers has Organization for Standardization (ISO); and technical How a location fosters and grows employee-partner
been vital to these efforts. body directives and guidelines from the National Institute engagement and effectiveness can affect employee-"
Cintas_2022_ESGReport.txt,"d Health (NIOSH), OSHA, the
partners’ collective care for one another – which is an
Canadian Centre for Occupational Health and Safety, and
important part of a strong safety program.
OUR SAFETY VISION the European Agency for Safety and Health at Work.
6. Safety programs and compliance
We developed our Safety Vision in 2008 and it Our CHSMS incorporates compliance audits
ANNUAL CHSMS EVALUATIONS
continues to serve as the touchstone for our efforts in safety and health, transportation, and driver
and programs promoting safer and healthier Our CHSMS is evaluated annually and incorporates safety, including employee-partner competency"
Cintas_2022_ESGReport.txt,"OSHA’s VPP Program has set commitment to hazard prevention and control,
these efforts.
a new standard for U.S. companies. A total of 127 perform ongoing analysis, and implement effective
Cintas sites were recognized by OSHA as VPP Star training programs. Every location that earns VPP Locations self-assess against safety and health protocols
certified as of September 2022, a total that outpaces certification must provide OSHA with annual detailed and undergo routine evaluations by our corporate
every American company. reports outlining their safety and health process Safety and Health team. Employee-partners who are"
Cintas_2022_ESGReport.txt,"nd employees
pursue VPP Star certifications across our organization safety journey, each of our business divisions holds
work cooperatively – and proactively – to prevent
and maintain our certifications once we achieve them. regular meetings with our Safety and Health team.
workplace accidents. They must display a joint
These are supported at each location level by routine
assessments to evaluate safety and health operations
and work on action items from the location’s Cintas 7
Keys assessment.
EMPLOYEE-PARTNERS CENTRAL"
Cintas_2022_ESGReport.txt,"isions holds
work cooperatively – and proactively – to prevent
and maintain our certifications once we achieve them. regular meetings with our Safety and Health team.
workplace accidents. They must display a joint
These are supported at each location level by routine
assessments to evaluate safety and health operations
and work on action items from the location’s Cintas 7
Keys assessment.
EMPLOYEE-PARTNERS CENTRAL
TO IDENTIFYING CONCERNS
3
A key element of our safety and health success is our
4
2 5 employee-partners’ continued personal investment in"
Cintas_2022_ESGReport.txt,"hese are supported at each location level by routine
assessments to evaluate safety and health operations
and work on action items from the location’s Cintas 7
Keys assessment.
EMPLOYEE-PARTNERS CENTRAL
TO IDENTIFYING CONCERNS
3
A key element of our safety and health success is our
4
2 5 employee-partners’ continued personal investment in
3 6 2 3 3 2 3 our journey. Safety is truly a team effort at Cintas, and
6 3 2 5 has helped us create a deeper, more direct connection
2 2 with our people.
2
2
While they are on the job, our employee-partners are"
Cintas_2022_ESGReport.txt,"as, and
6 3 2 5 has helped us create a deeper, more direct connection
2 2 with our people.
2
2
While they are on the job, our employee-partners are
3
3 2 trained to identify risks and issues in their work area and
3 to report issues immediately. Further, they are trained to
2
not perform dangerous work or work in conditions that
could cause injury or harm. They are also coached to
report near misses.
2 2
2 Field locations have a designated Safety and
Improvement Committee which includes trained
employee-partners from across the location’s"
Cintas_2022_ESGReport.txt,"sent
the number of VPP Star Certified locations in each locale.
71CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
AWARENESS, TRAINING, Our Cintas Ergonomics training was designed with Our award-winning Ergonomics team, recognized by
the Cintas culture of engagement and specific hazards OSHA and the International Ergonomics Association,
AND DEVELOPMENT
in mind. It has been recognized by the International supports our workforce to help identify solutions
Employee-partners are trained in more than 50 safety"
Cintas_2022_ESGReport.txt,"ociation,
AND DEVELOPMENT
in mind. It has been recognized by the International supports our workforce to help identify solutions
Employee-partners are trained in more than 50 safety
Ergonomics Association and has resulted in double- that can reduce occupational injuries like strains and
and health topics each year – offered in-person or
digit decreases in ergonomics-related injuries for two sprains. Ergonomics evaluations and training are
online, or available on-demand – with specific trainings
consecutive years. available to all employee-partners, and palliative"
Cintas_2022_ESGReport.txt,"fy solutions
Employee-partners are trained in more than 50 safety
Ergonomics Association and has resulted in double- that can reduce occupational injuries like strains and
and health topics each year – offered in-person or
digit decreases in ergonomics-related injuries for two sprains. Ergonomics evaluations and training are
online, or available on-demand – with specific trainings
consecutive years. available to all employee-partners, and palliative
assigned by job and work scope. They are then
accommodations are provided to employee-partners"
Cintas_2022_ESGReport.txt,"e than 50 safety
Ergonomics Association and has resulted in double- that can reduce occupational injuries like strains and
and health topics each year – offered in-person or
digit decreases in ergonomics-related injuries for two sprains. Ergonomics evaluations and training are
online, or available on-demand – with specific trainings
consecutive years. available to all employee-partners, and palliative
assigned by job and work scope. They are then
accommodations are provided to employee-partners
evaluated by written, verbal, or skill-based assessments, Our frontline employee-partners are not the only ones"
Cintas_2022_ESGReport.txt,"riculum. program that focuses on our frontline partners’ ideas
The training is reinforced with signage and posters
and solutions to join our problem-solving efforts.
designed in the predominant languages at our field
locations, displayed throughout our facilities. OCCUPATIONAL HEALTH INITIATIVES In FY’22, our corporate Ergonomics team helped
Our goal of supporting a workforce of healthy, engaged our Rental organization save more than 773 million
Most of our training curriculum has been designed
employee-partners also includes programming and motions – and helped reduce susceptibility to repetitive-"
Cintas_2022_ESGReport.txt,"e Ergonomics team helped
Our goal of supporting a workforce of healthy, engaged our Rental organization save more than 773 million
Most of our training curriculum has been designed
employee-partners also includes programming and motions – and helped reduce susceptibility to repetitive-
in cooperation with industry experts and focuses on
benefits around physical and mental health. Cintas use musculoskeletal injuries – though the use of more
situations specific to Cintas. These include the Cintas
employee-partners are eligible for our benefits package, than 3,000 ergonomic solution integrations across"
Cintas_2022_ESGReport.txt,"on
benefits around physical and mental health. Cintas use musculoskeletal injuries – though the use of more
situations specific to Cintas. These include the Cintas
employee-partners are eligible for our benefits package, than 3,000 ergonomic solution integrations across
Maintenance Safety Certification, which was recognized
which includes a host of medical insurance programs the division.
by the International Maintenance Conference in 2017
and health-focused offerings, as well as other programs
and 2019. All maintenance and engineering employee- As the pandemic continued into its third year, we"
Cintas_2022_ESGReport.txt,"more
situations specific to Cintas. These include the Cintas
employee-partners are eligible for our benefits package, than 3,000 ergonomic solution integrations across
Maintenance Safety Certification, which was recognized
which includes a host of medical insurance programs the division.
by the International Maintenance Conference in 2017
and health-focused offerings, as well as other programs
and 2019. All maintenance and engineering employee- As the pandemic continued into its third year, we
to support our employee-partners’ financial, career, and"
Cintas_2022_ESGReport.txt,"ce and engineering employee- As the pandemic continued into its third year, we
to support our employee-partners’ financial, career, and
partners must successfully complete the written and continued to update our COVID-19 Preparedness
community health.
performance test to earn certification. Plan with ongoing Centers for Disease Control and
In addition to job-specific training required by their Prevention (CDC), Health Canada, and OSHA advisories
Safe driving is imperative at Cintas. Through our
roles, our field employee-partners also receive ongoing and related publications as guidance."
Cintas_2022_ESGReport.txt,"field employee-partners also receive ongoing and related publications as guidance.
partnerships, we offer enhanced driver training,
education and awareness training in a variety of topics,
on-the-road evaluations, and driver drills to better On top of maintaining enhanced cleaning protocols at
including nutrition, flexibility, fitness, performing in
coach and assess driving skills. To reinforce our safe- our facilities and locations, implemented at the start
extreme temperatures, and hydration.
driving policies, our executive leaders deliver regular of the pandemic, employee-partners also perform"
Cintas_2022_ESGReport.txt,"ced cleaning protocols at
including nutrition, flexibility, fitness, performing in
coach and assess driving skills. To reinforce our safe- our facilities and locations, implemented at the start
extreme temperatures, and hydration.
driving policies, our executive leaders deliver regular of the pandemic, employee-partners also perform
reminders about safe-driving practices as we strive to Cintas locations partner with local third-party medical daily health assessments and are expected to maintain
be recognized as a top performer by the Network of and wellness providers to enhance our employee- elevated personal hygiene and hand-washing practices."
Cintas_2022_ESGReport.txt,"elp monitor return-to-work programs distance, and adhere to capacity reductions in public
and requirements. and shared areas.
72CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OPERATIONALIZING SAFETY WORK-RELATED INJURIES AND ILLNESS Each business division conducts regular safety and
health meetings, which include a review of the
AND HEALTH Cintas tracks the total number of injuries suffered by our
company’s work-related injuries and trends, as well as
Our Safety and Health team isn’t just focused on our employee-partners while on the job, as well as fatalities"
Cintas_2022_ESGReport.txt,"TAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OPERATIONALIZING SAFETY WORK-RELATED INJURIES AND ILLNESS Each business division conducts regular safety and
health meetings, which include a review of the
AND HEALTH Cintas tracks the total number of injuries suffered by our
company’s work-related injuries and trends, as well as
Our Safety and Health team isn’t just focused on our employee-partners while on the job, as well as fatalities
corrective actions.
employee-partners’ daily routines. It consults a broad suffered because of work-related injury. Incidents are"
Cintas_2022_ESGReport.txt,"dedication to raising world-class safety and health
Hours Worked 91,270,940 87,899,328 77,795,740 82,856,412
standards doesn’t stop at our doors. Members of
our award-winning Safety and Health team regularly * The fatality was the result of a vehicular chain-reaction accident on a highway where a tractor trailer collided with
offer ongoing education sessions at conferences and another tractor trailer from behind at high speed, which triggered a chain reaction including a Cintas vehicle that was
symposiums around the world, and serve on influential stopped or slowed in traffic. Our employee-partner driving the Cintas vehicle suffered fatal injuries from the impact."
Cintas_2022_ESGReport.txt,"s vehicle suffered fatal injuries from the impact.
professional boards, panels, and committees.
73CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
ERGO • The Ergo Cup – Judged by a panel of academic
and industry judges
EXCELLENCE • The Excellence Awards – Judged by more than
800 conference attendees
Since 2018, Cintas has won six awards at the
Our award-winning Ergonomics program helps
event – four Ergo Cups and two Excellence Awards.
our employee-partners perform their jobs in a"
Cintas_2022_ESGReport.txt,"2 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
ERGO • The Ergo Cup – Judged by a panel of academic
and industry judges
EXCELLENCE • The Excellence Awards – Judged by more than
800 conference attendees
Since 2018, Cintas has won six awards at the
Our award-winning Ergonomics program helps
event – four Ergo Cups and two Excellence Awards.
our employee-partners perform their jobs in a
safer and more efficient manner. At the same time,
AEC AWARDS
our employee-partners get personally involved"
Cintas_2022_ESGReport.txt,"team, company executives, and nationally 2022 Ergo Cup Davana Pilczuk “How to
Award and Glenn Flood Build an
renowned ergonomics experts and corporate
Army”
ergonomics leaders.
Excellence Mike Medina Hand
Competition winners also have the chance to enter Award Sanitizer
national and international ergonomics competitions Stand
where they compete against employees of other
Additional awards include 2018 Practitioner of
companies around the globe.
the Year at AEC for Cintas Director of Safety and
Our employee-partners have earned great acclaim Health Stephen Jenkins and the 2020 Institute of"
Cintas_2022_ESGReport.txt,"de of Conduct requirements.
We procure goods and products from a global network
that includes vendors in the United States, as well
as from China, Colombia, Costa Rica, Dominican
Republic, Egypt, El Salvador, Ethiopia, Guatemala, Haiti,
Honduras, India, Kenya, Malaysia, Mexico, Nicaragua,
Pakistan, the Philippines, and Vietnam.
75CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ASSESSING AND MONITORING NEW FY’22 MONITORING AND RESULTS REPORTING CONCERNS
GLOBAL SUPPLY CHAIN SUPPLIERS Suppliers with a contract to manufacture for Cintas We provide several means for both Cintas employee-"
Cintas_2022_ESGReport.txt,"thical working standards and treat their an alternative certification from WRAP, SA8000, Bureau
Anyone can report an anonymous concern using
employees fairly. Our sourcing group identifies the Veritas, Intertek, SGS, or Sedex.
the Cintas Direct Line – online, or via phone or text
potential new supplier or facility and triggers a social
In FY’22, we conducted 78 such supplier audits with in- message – which is staffed 24/7 by an independent
compliance exam. Some situations – including geographic
person visits by third-party auditors. We also confirmed third party. Cintas employee-partners can also report"
Cintas_2022_ESGReport.txt,"hich includes more than 300 points were highlighted as Below Minimum Standards or • Through their relationships with category managers
of business. Following the conclusion of the assessment, Immediate Action and addressed appropriately. and field engineers
Cintas works with the supplier to produce the required • As part of annual supplier business review meetings
compliance documentation and explain any actions TRAINING ON SUPPLY CHAIN ISSUES
needed to comply with our VCOC through a Corrective
Employee-partners with direct responsibility for supply CONFLICT MINERALS"
Cintas_2022_ESGReport.txt,"is conflict minerals.
from an independent certification agency (such as helps learners understand human trafficking risks and
WRAP, Intertek, SA8000, or another recognized body), formulate a plan to identify and address trafficked labor. Those identified are enrolled in our Conflict Mineral
Training seminar so they understand our Conflict
those certifications generally satisfy our requirements.
Through Cintas’ anti-corruption training program,
Minerals Policy and must also report their conflict
Once a supplier is certified as a GSC Supplier, they are GSC employee-partners who are directly involved in minerals use to us. We then submit that information"
Cintas_2022_ESGReport.txt,"on Commission (SEC).
audits are typically conducted in person by independent training. This annual training is overseen by our Chief
inspectors who are trained on local labor laws and Compliance Officer and is separate from other GSC GSC Suppliers that do not comply with our annual
requirements, are fluent in the language(s) spoken by training modules. conflict minerals review are subject to penalties, up to
and including denial of Cintas business.
management and employees, engage directly with
facility leadership, and conduct employee interviews."
Cintas_2022_ESGReport.txt,"% of our total U.S.
supplier spend. Diverse Supplier Spend $277.9M $247.8M $387.7M23 $318.1M
% of U.S. Spend 12.7% 11.4% 16.9% 13.0%
We continue to look for additional ways to include
diverse suppliers in our supply chain. While we aim to
increase our year-over-year spend with diverse suppliers
overall, we’re also looking to increase our spend with
veteran- and service-disabled-veteran-owned businesses.
77CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMMUNITY Our Canadian employee-partners engage and support CORPORATE PARTNERSHIPS"
Cintas_2022_ESGReport.txt,"hain. While we aim to
increase our year-over-year spend with diverse suppliers
overall, we’re also looking to increase our spend with
veteran- and service-disabled-veteran-owned businesses.
77CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMMUNITY Our Canadian employee-partners engage and support CORPORATE PARTNERSHIPS
local organizations concerned with cancer, diabetes, and
heart health.
IMPACT AND
A key component of our philanthropic success is the
passion our employee-partners have for giving back."
Cintas_2022_ESGReport.txt,"nner of Cintas Cares. for, and commitments to, these national partnerships.
The organization’s disaster response includes a Cintas-
Cintas has six enterprise-wide philanthropic initiatives branded van, which we donated to assist with their
that are managed at the corporate level by the Corporate In FY’22, Cintas’ charitable on-the-ground efforts in disaster areas.
Affairs Department, and which allow involvement from monetary and in-kind donations In the past, we have also partnered with Matthew
our U.S. locations and employee-partners. These include"
Cintas_2022_ESGReport.txt,"ional partnerships.
The organization’s disaster response includes a Cintas-
Cintas has six enterprise-wide philanthropic initiatives branded van, which we donated to assist with their
that are managed at the corporate level by the Corporate In FY’22, Cintas’ charitable on-the-ground efforts in disaster areas.
Affairs Department, and which allow involvement from monetary and in-kind donations In the past, we have also partnered with Matthew
our U.S. locations and employee-partners. These include
25: Ministries to send Cintas employee-partners on"
Cintas_2022_ESGReport.txt,"donations In the past, we have also partnered with Matthew
our U.S. locations and employee-partners. These include
25: Ministries to send Cintas employee-partners on
to our corporate philanthropy
relationships with the American Cancer Society, American
mission trips to Haiti and the Appalachian area of West
Diabetes Association, American Heart Association, partners totaled $1,933,704. Virginia, as part of our annual Clothe the Kids campaign.
National Fallen Firefighters Foundation, and Matthew
Through that program, our employee-partners have"
Cintas_2022_ESGReport.txt,"hropic relationships,
through national Relay for Life and Making Strides about diabetes among underserved and minority dating back to 2005. Cintas partners with the AHA as a
Against Breast Cancer events. We also support the communities. Through this partnership, the American provider of CPR, first aid, and AED training nationwide,
organization with a company-wide apparel sale each Diabetes Association also has a business partnership with and certified trainers in our First Aid & Safety division
fall, with the proceeds from our Canadian employee- our First Aid & Safety division to produce health kits with teach AHA’s certification curriculum in their courses."
Cintas_2022_ESGReport.txt,"the proceeds from our Canadian employee- our First Aid & Safety division to produce health kits with teach AHA’s certification curriculum in their courses.
partners’ purchases directed to the Canadian Cancer first aid items frequently needed by diabetics. Since 2016, we have trained and certified more than
Society. Since 2020, Cintas has provided more 900,000 people in lifesaving CPR and first aid.
The American Diabetes Association provides free,
than $112,000 in direct support to the American
confidential diabetes risk-testing to our employee- Each year, Cintas employee-partners across the United"
Cintas_2022_ESGReport.txt,"frequently needed by diabetics. Since 2016, we have trained and certified more than
Society. Since 2020, Cintas has provided more 900,000 people in lifesaving CPR and first aid.
The American Diabetes Association provides free,
than $112,000 in direct support to the American
confidential diabetes risk-testing to our employee- Each year, Cintas employee-partners across the United
Cancer Society.
partners so they can understand their potential for States participate in both the Heart Mini-Marathon
Through this partnership, our employee-partners have developing Type 2 diabetes. It also provides access to its and Walk and the national Heart Walk. More than 400"
Cintas_2022_ESGReport.txt,"nd first aid.
The American Diabetes Association provides free,
than $112,000 in direct support to the American
confidential diabetes risk-testing to our employee- Each year, Cintas employee-partners across the United
Cancer Society.
partners so they can understand their potential for States participate in both the Heart Mini-Marathon
Through this partnership, our employee-partners have developing Type 2 diabetes. It also provides access to its and Walk and the national Heart Walk. More than 400
access to some of the American Cancer Society’s support Diabetes Food Hub app with recipe and meal-planning employee-partners participated in the 2022 events,"
Cintas_2022_ESGReport.txt,"od Hub app with recipe and meal-planning employee-partners participated in the 2022 events,
resources, including the Road To Recovery® program, options for those living with diabetes. raising more than $56,000. Cintas is also a sponsor of
24/7 live online patient support, live cancer-prevention the organization’s Go Red for Women campaign.
webinars with medical experts, and access to Hope
Lodge if they need to travel out of town for treatment.
Although our corporate relationship was established
recently, Cintas’ employee-partners have long supported"
Cintas_2022_ESGReport.txt,"ign.
webinars with medical experts, and access to Hope
Lodge if they need to travel out of town for treatment.
Although our corporate relationship was established
recently, Cintas’ employee-partners have long supported
the American Cancer Society at a grassroots level. Over
the years, we have helped raise more than $1 million
across our locations.
79CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
IMPACT: CORPORATE PHILANTHROPIC PARTNERSHIPS SINCE FY’19
EMPLOYEE-"
Cintas_2022_ESGReport.txt,"nclude Boys Hope Girls Hope, Cincinnati
successful programs supported by our corporate our current corporate philanthropy strategy and evolve
USA Regional Chamber, Disabled American Veterans
headquarters in Cincinnati. These include relationships our program to further align with our leadership team’s
5K, Easterseals, All About Women, Toys for Tots,
with Adopt A Class, where teams of volunteer business goals and priorities, as well as our ESG goals
Hispanic Chamber Cincinnati USA, Ohio Minority
employee-partners present weekly lessons in local and initiatives. The strategy review is expected to begin"
Cintas_2022_ESGReport.txt,"pplier Development Council, Paloozanoire, the Urban
classrooms; the United Way of Greater Cincinnati; in FY’23 and continue into FY’24.
League of Greater Southwestern Ohio, and the YWCA
and Dress for Success in Cincinnati.
of Greater Cincinnati. Once this review is complete, we hope to launch a
refreshed philanthropic program that outlines specific
Our field locations across the United States and
community impact objectives, establishes annual
Canada are also encouraged to get involved and form
fundraising and donation targets, tracks employee-"
Cintas_2022_ESGReport.txt,"oughout
our organization.
81CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SSPPOOTTLLIIGGHHTT
CINTAS PARTNER The mission of the CPAF aligns with our company’s
ambition to reduce its environmental impact and
support global efforts to mitigate climate change.
ASSISTANCE
With catastrophic weather events rising across
North America – and with all types of natural
FUND disasters causing greater harm and damage –
we recognize the need to provide support for
our employee-partners when these challenging"
Cintas_2022_ESGReport.txt,"s with our company’s
ambition to reduce its environmental impact and
support global efforts to mitigate climate change.
ASSISTANCE
With catastrophic weather events rising across
North America – and with all types of natural
FUND disasters causing greater harm and damage –
we recognize the need to provide support for
our employee-partners when these challenging
We launched the Cintas Partner Assistance Fund situations occur, many times unexpectedly.
(CPAF) in 2019 to provide financial assistance
to our own employee-partners who have been SUPPORTING PARTNERS IN TIMES"
Cintas_2022_ESGReport.txt,"cross
North America – and with all types of natural
FUND disasters causing greater harm and damage –
we recognize the need to provide support for
our employee-partners when these challenging
We launched the Cintas Partner Assistance Fund situations occur, many times unexpectedly.
(CPAF) in 2019 to provide financial assistance
to our own employee-partners who have been SUPPORTING PARTNERS IN TIMES
negatively affected by natural disasters. What
OF DISASTER
started with $500,000 in seed money from
Employee-partners can apply for both short-"
Cintas_2022_ESGReport.txt,"ance Fund situations occur, many times unexpectedly.
(CPAF) in 2019 to provide financial assistance
to our own employee-partners who have been SUPPORTING PARTNERS IN TIMES
negatively affected by natural disasters. What
OF DISASTER
started with $500,000 in seed money from
Employee-partners can apply for both short-
Cintas is now valued at more than $4 million.
term grants to help immediately resettle after a
This total includes ongoing donations from
catastrophe and long-term assistance for more
our own employee-partners, as well as one-"
Cintas_2022_ESGReport.txt,"by natural disasters. What
OF DISASTER
started with $500,000 in seed money from
Employee-partners can apply for both short-
Cintas is now valued at more than $4 million.
term grants to help immediately resettle after a
This total includes ongoing donations from
catastrophe and long-term assistance for more
our own employee-partners, as well as one-
expansive reparative property needs. Through
time contributions from company executives
FY’22, a total of 343 grants were provided to
and partners.
employee-partners who applied for assistance"
Cintas_2022_ESGReport.txt,"re than $4 million.
term grants to help immediately resettle after a
This total includes ongoing donations from
catastrophe and long-term assistance for more
our own employee-partners, as well as one-
expansive reparative property needs. Through
time contributions from company executives
FY’22, a total of 343 grants were provided to
and partners.
employee-partners who applied for assistance
after they were impacted by catastrophic or
natural disasters.
$4M+
FURTHER AIDING OUR
was raised by CPAF
through fundraising and EMPLOYEE-PARTNERS"
Cintas_2022_ESGReport.txt,"ations from
catastrophe and long-term assistance for more
our own employee-partners, as well as one-
expansive reparative property needs. Through
time contributions from company executives
FY’22, a total of 343 grants were provided to
and partners.
employee-partners who applied for assistance
after they were impacted by catastrophic or
natural disasters.
$4M+
FURTHER AIDING OUR
was raised by CPAF
through fundraising and EMPLOYEE-PARTNERS
grants awarded25
CPAF has continued to grow thanks to the
generosity of our employee-partners’ giving and"
Cintas_2022_ESGReport.txt,"for assistance
after they were impacted by catastrophic or
natural disasters.
$4M+
FURTHER AIDING OUR
was raised by CPAF
through fundraising and EMPLOYEE-PARTNERS
grants awarded25
CPAF has continued to grow thanks to the
generosity of our employee-partners’ giving and
our investment strategy. The fund’s size has now
provided us with the opportunity to expand CPAF
343 grants
grant eligibility to include other personal life events
were provided to as defined by the U.S. Internal Revenue Service,
employee-partners which will allow us to further aid our employee-"
Cintas_2022_ESGReport.txt,"• Bump caps
landfills. Design Collective’s catalog includes a variety of
STANDARD 100 by OEKO-TEX® certified products as well. Through our First Aid & Safety division, Cintas offers
We have a vast catalog of products and services that first aid cabinets that include over the counter (OTC)
Likewise, our Facility Services offerings help our
provide our customers with sustainable solutions and medications, bleeding control kits, and other items that
customers operate cleaner, healthier, and safer
programs. We also support our customers’ safety journeys help our customers and employee-partners respond to"
Cintas_2022_ESGReport.txt,"ACH
Scott D. Farmer
As we consider our business decisions, we leverage
Executive Chairman
internal processes that include disciplined due diligence
Executive Committee
Strong and ethical governance is a primary foundation and risk assessment to evaluate potential outcomes. Our
of our Principal Objective: to exceed our customers’ Principal Objective and our strategic plans also factor Joseph Scaminace
expectations to maximize the long-term value of Cintas heavily into our planning. Lead Director
for our shareholders and employee-partners. And our Chair, Executive Committee; Chair,"
Cintas_2022_ESGReport.txt,"hat aims Gerald S. Adolph
CODE OF CONDUCT to reduce, mitigate, or eliminate our impact and risks in Chair, Compensation Committee;
Our governance and management structure are these areas. Nominating and Corporate
guided, first and foremost, by our Code of Conduct Governance Committee
and Business Ethics. This outlines clear and consistent
GOVERNANCE STRUCTURE
John F. Barrett
expectations for decision-making by all Cintas Directors
The Board of Directors is our highest governing Audit Committee,
and employee-partners, and requires adherence to laws"
Cintas_2022_ESGReport.txt,"consistent
GOVERNANCE STRUCTURE
John F. Barrett
expectations for decision-making by all Cintas Directors
The Board of Directors is our highest governing Audit Committee,
and employee-partners, and requires adherence to laws
body. Elected annually by a one-for-one vote Nominating and Corporate
and regulations.
of Cintas shareholders, the Board oversees the Governance Committee
Upon joining the company, each Director, executive, management of our company, as spelled out in our
Melanie W. Barstad
manager, and employee-partner is required to undergo Corporate Governance Guidelines. These guidelines"
Cintas_2022_ESGReport.txt,"company’s commitment and accountability.
our coordinated ESG efforts. This position, which
reports to our Senior Vice President and Secretary, In FY’22, Ms. Nageleisen built a new integrated ESG
The Board of Directors oversees our ESG-related General Counsel, has been tasked with developing team to support existing ESG initiatives and related
strategies and initiatives, which we include as a our enterprise-wide ESG strategy and supporting our goals. She also brought together a cross-functional
component of our risk oversight and management ongoing ESG initiatives. group of employee-partners to form the PACE Team."
Cintas_2022_ESGReport.txt,"o discuss environmental
The VP of ESG and Chief Compliance Officer, Christy
committee because of its importance to the company initiatives and ways to address energy, waste, water,
Nageleisen, works with business and functional leaders
and our overall business strategy. and other environmental impacts at Cintas.
across our company to develop and enhance our
The Board oversees and monitors ESG-related matters,
including our:
• Environmental programs
• Workplace conduct
• Training and development
• Employee-partner health and wellness"
Cintas_2022_ESGReport.txt,"TION, FRAUD, ANTI-BRIBERY, Further, our Risk & Compliance Department provides
appropriate guidance to vendors working with our
AND ANTI-COMPETITIVE BEHAVIOR
GSC so the vendors are aware of our policies and
INTEGRITY We pride ourselves on operating our business in
expectations. These are captured in our Vendor Code
an ethical and lawful manner – a cornerstone of
of Conduct. Our vendors’ compliance is monitored
our Corporate Culture. We strive to ensure that our
through annual third-party audits.
company and our employee-partners comply with laws"
Cintas_2022_ESGReport.txt,"ropriate guidance to vendors working with our
AND ANTI-COMPETITIVE BEHAVIOR
GSC so the vendors are aware of our policies and
INTEGRITY We pride ourselves on operating our business in
expectations. These are captured in our Vendor Code
an ethical and lawful manner – a cornerstone of
of Conduct. Our vendors’ compliance is monitored
our Corporate Culture. We strive to ensure that our
through annual third-party audits.
company and our employee-partners comply with laws
“Cintas has a reputation as a
and regulations, including those that promote free Every year, we identify employee-partners directly"
Cintas_2022_ESGReport.txt,"gh annual third-party audits.
company and our employee-partners comply with laws
“Cintas has a reputation as a
and regulations, including those that promote free Every year, we identify employee-partners directly
company that operates with strong and fair competition in the marketplace. Our company involved in our business activities in markets where
has established a robust culture of governance to help bribery or corruption activities are more prevalent.
moral principles and excellent values.
mitigate instances of corruption, fraud, or other illegal Those employee-partners are required to undergo"
Cintas_2022_ESGReport.txt,"i-Corruption Policy, and Vendor Should a critical concern be identified, it would be
Todd Schneider, President and CEO Code of Conduct. presented to the Audit Committee and then immediately
reported to the full Board. No critical concerns were
Topics in this area are also included in our Code of
Cintas is committed to operating our business – identified or raised to the Audit Committee in FY’22.
Conduct and Business Ethics annual training, which is
including our interactions with our customers,
required of all employee-partners."
Cintas_2022_ESGReport.txt,"uld a critical concern be identified, it would be
Todd Schneider, President and CEO Code of Conduct. presented to the Audit Committee and then immediately
reported to the full Board. No critical concerns were
Topics in this area are also included in our Code of
Cintas is committed to operating our business – identified or raised to the Audit Committee in FY’22.
Conduct and Business Ethics annual training, which is
including our interactions with our customers,
required of all employee-partners.
employee-partners, competitors, shareholders,"
Cintas_2022_ESGReport.txt,"also aim to do so in full compliance with regulatory Under the direction of our senior management’s annual
and legal requirements, and expect our partners to be Enterprise Risk Assessment, our Internal Audit and Risk
accountable for their actions. & Compliance Departments conduct annual reviews of
our business operation for corruption risks.
Our governance structure promotes the awareness
of, and responsibility to adhere to, our policies and Activities or processes that have been identified as
procedures by all our employee-partners, from our potential corruption risks include our GSC operations,"
Cintas_2022_ESGReport.txt,"and rules. international suppliers, and potential vendor or third-
party relationships.
Together, our policies and training help us promote an
enterprise-wide culture of compliance and help us raise We have not identified any known instances of
awareness about our stakeholders’ understanding and corruption during this process.
expectations related to ethics and integrity.
88CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ETHICS AND COMPLIANCE TRAINING
Cintas employee-partners receive our Code of Conduct REPORTING CONCERNS"
Cintas_2022_ESGReport.txt,"eholders’ understanding and corruption during this process.
expectations related to ethics and integrity.
88CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
ETHICS AND COMPLIANCE TRAINING
Cintas employee-partners receive our Code of Conduct REPORTING CONCERNS
and Business Ethics training on their first official day
Cintas is committed to maintaining an ethical, of anyone requesting guidance or reporting
of employment with us. They also receive a booklet
responsible workplace. Both employee-partners questionable behavior and/or a possible violation."
Cintas_2022_ESGReport.txt,"and Business Ethics training on their first official day
Cintas is committed to maintaining an ethical, of anyone requesting guidance or reporting
of employment with us. They also receive a booklet
responsible workplace. Both employee-partners questionable behavior and/or a possible violation.
containing the Code – available in English, Spanish, or
and external parties have access to several Company policy prohibits retaliation against any
Canadian French – at their orientation session and must
mechanisms to report questions or concerns. employee-partner raising or reporting a business"
Cintas_2022_ESGReport.txt,"able behavior and/or a possible violation.
containing the Code – available in English, Spanish, or
and external parties have access to several Company policy prohibits retaliation against any
Canadian French – at their orientation session and must
mechanisms to report questions or concerns. employee-partner raising or reporting a business
sign an acknowledgment that they have received and
conduct or ethical issue or a perceived violation
understand the training.
of policies or laws.
Direct Line
Additionally, employee-partners must complete three"
Cintas_2022_ESGReport.txt,"s or concerns. employee-partner raising or reporting a business
sign an acknowledgment that they have received and
conduct or ethical issue or a perceived violation
understand the training.
of policies or laws.
Direct Line
Additionally, employee-partners must complete three
Anyone can report any violations or concerns
different annual training courses focused on ethics
through our Direct Line, a confidential third-party Lines of Communications
and integrity: Code of Conduct and Business Ethics,
resource dedicated to Cintas’ stakeholders and In addition to the Direct Line, our employee-partners"
Cintas_2022_ESGReport.txt,"cated to Cintas’ stakeholders and In addition to the Direct Line, our employee-partners
Workplace Harassment Prevention, and Workplace
operated 24 hours a day, seven days a week. It is have a structured avenue to report concerns.
Violence Prevention.
accessible globally, and includes submission options This process begins with their supervisors, HR, or
These are either completed through an online TOD available online, via phone call, or through text compliance departments, and includes approved
platform or conducted in person for employee-partners message. Submissions can be received in more than escalation channels if necessary. External parties also"
Cintas_2022_ESGReport.txt,"or conducted in person for employee-partners message. Submissions can be received in more than escalation channels if necessary. External parties also
who do not have computer access at work. Our annual 50 languages. have their own direct communications channels in
training results are reported to the Board of Directors to which they can register concerns.
We document concerns and strive to maintain, within
confirm we’re maintaining compliance.
the limits allowed by the law, the confidentiality
Further, management-track employee-partners also"
Cintas_2022_ESGReport.txt,"to the Board of Directors to which they can register concerns.
We document concerns and strive to maintain, within
confirm we’re maintaining compliance.
the limits allowed by the law, the confidentiality
Further, management-track employee-partners also
receive a copy of The Spirit Is The Difference, which further
articulates our Corporate Culture and how it functions
within our Code of Conduct and Business Ethics.
COMPLIANCE TRAINING DATA
Additional compliance training is required annually for
employee-partners whose positions or responsibilities"
Cintas_2022_ESGReport.txt,"lity
Further, management-track employee-partners also
receive a copy of The Spirit Is The Difference, which further
articulates our Corporate Culture and how it functions
within our Code of Conduct and Business Ethics.
COMPLIANCE TRAINING DATA
Additional compliance training is required annually for
employee-partners whose positions or responsibilities
require additional compliance and monitoring.
REQUIRED COMPLIANCE COMPLETION PERCENTAGE27
This includes:
TRAINING MODULES FY’19 FY’20 FY’21 FY’22
• Information Security Awareness for employee- Code of Conduct and Business Ethics 100% 100% 100% 100%"
Cintas_2022_ESGReport.txt,"and Business Ethics.
COMPLIANCE TRAINING DATA
Additional compliance training is required annually for
employee-partners whose positions or responsibilities
require additional compliance and monitoring.
REQUIRED COMPLIANCE COMPLETION PERCENTAGE27
This includes:
TRAINING MODULES FY’19 FY’20 FY’21 FY’22
• Information Security Awareness for employee- Code of Conduct and Business Ethics 100% 100% 100% 100%
partners who have computer access at work
Workplace Harassment Prevention 100% 100% 100% 100%
• Anti-Corruption training for employee-partners"
Cintas_2022_ESGReport.txt,"G MODULES FY’19 FY’20 FY’21 FY’22
• Information Security Awareness for employee- Code of Conduct and Business Ethics 100% 100% 100% 100%
partners who have computer access at work
Workplace Harassment Prevention 100% 100% 100% 100%
• Anti-Corruption training for employee-partners
Workplace Violence Prevention28 100% - 100% 100%
who could potentially interact with a foreign official
Information Security Awareness29 100% 100% 100% 100%
or representative
Anti-Corruption Training 100% 100% 100% 100%
• PCI training for employee-partners who could have"
Cintas_2022_ESGReport.txt,"partners who have computer access at work
Workplace Harassment Prevention 100% 100% 100% 100%
• Anti-Corruption training for employee-partners
Workplace Violence Prevention28 100% - 100% 100%
who could potentially interact with a foreign official
Information Security Awareness29 100% 100% 100% 100%
or representative
Anti-Corruption Training 100% 100% 100% 100%
• PCI training for employee-partners who could have
access to credit card data PCI Training29 100% 100% 100% 100%
AB182530 100% - 100% -
Cintas also requires its California-resident employee-"
Cintas_2022_ESGReport.txt,"assment Prevention 100% 100% 100% 100%
• Anti-Corruption training for employee-partners
Workplace Violence Prevention28 100% - 100% 100%
who could potentially interact with a foreign official
Information Security Awareness29 100% 100% 100% 100%
or representative
Anti-Corruption Training 100% 100% 100% 100%
• PCI training for employee-partners who could have
access to credit card data PCI Training29 100% 100% 100% 100%
AB182530 100% - 100% -
Cintas also requires its California-resident employee-
partners (and partners who manage employee-partners"
Cintas_2022_ESGReport.txt,"opportunities
Risk Assessment. to more than 150 Native Americans who live on or
near an Indian reservation in the United States.
If tax-related risks are identified, they are communicated TAX ADVOCACY
to senior management to help ensure they are managed • Federal Empowerment Zone (EZ) Credit: Several of
We actively engage registered, third-party
appropriately and according to applicable law. our locations are located in Federal EZs. We hired
representatives to assist our advocacy and education
more than 115 new employee-partners who also live"
Cintas_2022_ESGReport.txt,"T ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
PUBLIC POLICY The VP of Corporate Affairs also monitors political Local Strategic Relationships
contributions made to political figures and organizations
We strongly encourage leaders in our local markets
by the Cintas Partners Political Action Committee
AND ADVOCACY to develop strategic relationships with key leaders in
(Partners PAC). The Partners PAC is funded entirely
their communities. We understand that local political,
by our employee-partners’ voluntary donations – not"
Cintas_2022_ESGReport.txt,"ues important to our business. We encourage
Other Public Official Interactions our local leaders to identify decision-makers, thought
Cintas regularly and proactively advocates for our
business and our industry. We conduct our advocacy Outside of our company’s formal advocacy efforts, we’ve leaders, and agencies who can help Cintas demonstrate
efforts and political action activities through a variety established a formal process that prescribes limitations and amplify our community commitments.
of means, including face-to-face meetings, facility and guidelines on how our company and our employee-"
Cintas_2022_ESGReport.txt,"We support our local leaders with counsel and other
and location tours, memos and position papers, and partners may engage with public officials – including
resources for their networking efforts, including
memberships in associations and organizations. those from government and regulatory organizations –
suggested outreach assets and best practices from
on the company’s behalf. To help the company and our
other locations’ civic involvement.
We collaborate with various corporate, industry, and
employee-partners avoid the perception of impropriety,"
Cintas_2022_ESGReport.txt,"pertinent third-party
advocate relationships and procedures to maintain
compliance with the company’s official political
advocacy process.
To help further maintain accountability and compliance,
the VP of Corporate Affairs coordinates and monitors all
communications related to public policy between Cintas
stakeholders, registered third-party advocacy agencies,
and government and policy representatives.
91CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
POLITICAL CONTRIBUTIONS Employee-Partner Political Contributions The Partners PAC is funded entirely by voluntary"
Cintas_2022_ESGReport.txt,"litical
advocacy process.
To help further maintain accountability and compliance,
the VP of Corporate Affairs coordinates and monitors all
communications related to public policy between Cintas
stakeholders, registered third-party advocacy agencies,
and government and policy representatives.
91CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
POLITICAL CONTRIBUTIONS Employee-Partner Political Contributions The Partners PAC is funded entirely by voluntary
donations made by our employee-partners. The non-"
Cintas_2022_ESGReport.txt,"registered third-party advocacy agencies,
and government and policy representatives.
91CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
POLITICAL CONTRIBUTIONS Employee-Partner Political Contributions The Partners PAC is funded entirely by voluntary
donations made by our employee-partners. The non-
Our Anti-Corruption Policy outlines the manner in Neither Cintas nor the Partners PAC governs or restricts
partisan executive committee reviews and approves
which we may engage with political candidates and political contributions made by our individual employee-"
Cintas_2022_ESGReport.txt,"litical candidates and political contributions made by our individual employee-
potential political contributions to individual candidates
representatives. As a company, Cintas Corporation partners. This includes those made by members
using six criteria:
generally does not make political contributions to of our Board of Directors on their own behalf from
government officials, political candidates, or political their personal funds and for their personal reasons. • Strategies important to Cintas
parties and any exceptions to this require the prior Employee-partners’ personal political contributions are"
Cintas_2022_ESGReport.txt,"reasonably high level of approval in their
the use of donating our locations or services to public district/state
PARTNERS PAC
officials, candidates for political offices, political parties,
A 12-person executive committee operates the Partners • Supported legislation or voted in a manner that is
official election campaigns, or other political issue or
PAC, an independent organization that was created favorable to Cintas’ continued economic growth
referendum campaigns. The approval requirement
to represent employee-partners’ perspectives from • Maintained integrity and professional dealings in"
Cintas_2022_ESGReport.txt,"gn system connectivity. They also further
to scan for potential vulnerabilities and to help prevent
outline our management of user accounts, computer
and detect malicious activities. These include automated
PRIVACY room security, and role-based security practices.
prevention measures and requiring system users and
administrators to use multi-factor authentication, and
single sign-on when available, to access network and IT SECURITY AWARENESS TRAINING
Cintas operates in a connected economy, with
connected services. All Cintas employee-partners who access our company"
Cintas_2022_ESGReport.txt,"nd IT SECURITY AWARENESS TRAINING
Cintas operates in a connected economy, with
connected services. All Cintas employee-partners who access our company
computers and network services around the globe
networks through devices or other systems are required
creating the foundation for our business. We rely We have partnered with a trusted third-party
to complete annual Information Security Awareness
extensively on complex, integrated computer systems, cybersecurity vendor to provide 24/7 monitoring
training. Employee-partners who may have access to"
Cintas_2022_ESGReport.txt,"maintain information, and manage our businesses. Data Security Team and helps improve and expand
PCI Training.
our capabilities. Additional cybersecurity practices
While technology has helped us identify and amplify
conducted through third-party providers include program Training completion and success is monitored, with
efficiencies, it also inherently adds a layer of risk to
assessments, maturity assessments, and penetration the results submitted to the Board of Directors’ Audit
our business.
testing. These are in addition to control effectivity self- Committee. Employee-partners who fail to complete"
Cintas_2022_ESGReport.txt,"disclosure of information, as
In early FY’23, Cintas implemented industry-leading
outlined in our corporate polices. We have significantly tools to help improve enterprise security awareness and CYBERSECURITY DATA
invested in our Information Technology (IT) Department,
email security. In FY’22, Cintas did not experience any confirmed
and in IT and data security infrastructure to maintain
successful breaches, leaks, thefts, or losses of customer,
effective cybersecurity. We have also implemented
company, or employee-partner data."
Cintas_2022_ESGReport.txt,".
information about other legal proceedings is available
ourselves at all times with integrity Across the United States and Canada, we paid less in our FY’22 Form 10-K.
than $25,000 for various wastewater pretreatment
and in full compliance with the laws
compliance violations. None of these local issues
and regulations that govern our
business activities.”
Cintas Code of Conduct and Business Ethics
Cintas’ Code of Conduct and Business Ethics clearly
stipulates the company’s expectation that our
employee-partners and those who conduct business on"
Cintas_2022_ESGReport.txt,"rements.
As required by the FDA, we also maintain a strict
REGULATORY PROCESSES process for receiving product complaints or reports
To help meet regulations set by the U.S. Food of injury, illness, death, or adverse reaction to the
and Drug Administration (FDA) and Health use of a product distributed by Cintas First Aid
Canada, we maintain Good Manufacturing & Safety. If any such report is received, we have
Practices (GMPs) and provide appropriate GMP appropriate processes implemented to ensure
training to our employee-partners. Our employee- proper and complete documentation of the"
Cintas_2022_ESGReport.txt,"ing, and standardized investigation, resolution,
handling, and repackaging of OTC medications and remediation.
and medical devices.
95CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
APPENDIX
97 Citations, References, and Annotations
98 Notes and Methodologies
99 GRI Index
108 SASB Index
111 UN Sustainable Development Goals
96CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
CITATIONS, REFERENCES, AND ANNOTATIONS
1 We define employee-partners as personnel who are employed in full-time or part-time roles 17 ESOP and Profit Sharing: To be eligible to become a participant, an active employee-partner"
Cintas_2022_ESGReport.txt,"NVIRONMENT SOCIAL GOVERNANCE APPENDIX
APPENDIX
97 Citations, References, and Annotations
98 Notes and Methodologies
99 GRI Index
108 SASB Index
111 UN Sustainable Development Goals
96CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
CITATIONS, REFERENCES, AND ANNOTATIONS
1 We define employee-partners as personnel who are employed in full-time or part-time roles 17 ESOP and Profit Sharing: To be eligible to become a participant, an active employee-partner
in the United States and Canada. The total referenced through the report, 42,693, does not must be credited with at least 1,000 hours of service. Once an employee-partner is credited"
Cintas_2022_ESGReport.txt,"ed through the report, 42,693, does not must be credited with at least 1,000 hours of service. Once an employee-partner is credited
include workers who support our business in irregular business capacities, such as those who with 1,000 hours of service, they automatically become a participant in the Profit Sharing and
serve as seasonal or temporary workers or act as interns. Our business sometimes utilizes ESOP portions of the Plan on the same date they are credited with 1,000 hours of service.
contract-based workers, but the situations giving rise to contract-based work is limited and To receive an allocation for both Profit Sharing and ESOP, an employee-partner must be an"
Cintas_2022_ESGReport.txt,"last day of the fiscal year and have service credit of at least
2 In our 2021 report, the energy, emissions, and water data reported represented only Cintas’ 1,000 hours during the plan year for which the contribution is made. The contribution is
U.S. Uniform Rental and Facility Services locations in operation during the reporting periods determined based off a formula that factors in eligible compensation in the prior plan year,
and their associated fleet vehicles. as well as years of service.
3 See page 98 of appendix for science-based algorithmic model methodology used to 18 Our employee-partners who are currently unionized joined their associations while working for"
Cintas_2022_ESGReport.txt,"e plan year for which the contribution is made. The contribution is
U.S. Uniform Rental and Facility Services locations in operation during the reporting periods determined based off a formula that factors in eligible compensation in the prior plan year,
and their associated fleet vehicles. as well as years of service.
3 See page 98 of appendix for science-based algorithmic model methodology used to 18 Our employee-partners who are currently unionized joined their associations while working for
approximate utility data. a company that we later acquired. The majority of our currently associated employee-partners"
Cintas_2022_ESGReport.txt,"actor of total company revenue in millions: (MTCO2e/$M)
21 Figures relate only to our employees in the United States. This is because Cintas does
7 Cintas’ intensity metrics are calculated based on Cintas Corporation’s annual revenue.
not collect this data for partners based in Canada due to regulation on the collection of
(FY’22: $7,854M; FY’21: $7,116M, FY’20: $7,085M, FY’19: $6,892M)
demographic data.
8 Our energy intensity is calculated as our company’s total energy use as a factor of total
22 To be eligible for the company’s discretionary 401(k) match, employee-partners must:"
Cintas_2022_ESGReport.txt,"ds of repurposed products and garments donated to
Matthew 25: Ministries.
14 Ellen MacArthur Foundation, 2017, A New Textiles Economy: Redesigning Fashion’s Future.
A New Textiles Economy: Redesigning Fashion’s Future (ellenmacarthurfoundation.org). 25 The Cintas Partner Assistance Fund is tracked by calendar year, not by fiscal year. Cintas
Accessed by Accelerating Circularity in 2020. Partner Assistance Fund 2022 totals are disclosed through the end of Cintas’ FY’22, which
ended May 31, 2022.
15 The references to “almost” or “approximately” 43,000 employee-partners throughout this"
Cintas_2022_ESGReport.txt,"ur Foundation, 2017, A New Textiles Economy: Redesigning Fashion’s Future.
A New Textiles Economy: Redesigning Fashion’s Future (ellenmacarthurfoundation.org). 25 The Cintas Partner Assistance Fund is tracked by calendar year, not by fiscal year. Cintas
Accessed by Accelerating Circularity in 2020. Partner Assistance Fund 2022 totals are disclosed through the end of Cintas’ FY’22, which
ended May 31, 2022.
15 The references to “almost” or “approximately” 43,000 employee-partners throughout this
report cite the 42,693 employee-partners based in roles in the United States and Canada, 26 More information about our Board members, including biographical information and"
Cintas_2022_ESGReport.txt,"Partner Assistance Fund is tracked by calendar year, not by fiscal year. Cintas
Accessed by Accelerating Circularity in 2020. Partner Assistance Fund 2022 totals are disclosed through the end of Cintas’ FY’22, which
ended May 31, 2022.
15 The references to “almost” or “approximately” 43,000 employee-partners throughout this
report cite the 42,693 employee-partners based in roles in the United States and Canada, 26 More information about our Board members, including biographical information and
which is the scope of this report. Other employee-partner workforce totals referenced in our professional affiliations, is available in our 2022 Proxy Statement."
Cintas_2022_ESGReport.txt,"are disclosed through the end of Cintas’ FY’22, which
ended May 31, 2022.
15 The references to “almost” or “approximately” 43,000 employee-partners throughout this
report cite the 42,693 employee-partners based in roles in the United States and Canada, 26 More information about our Board members, including biographical information and
which is the scope of this report. Other employee-partner workforce totals referenced in our professional affiliations, is available in our 2022 Proxy Statement.
financial filings include the approximately 1,000 employee-partners in roles based in Mexico, 27 Partners who were assigned training, but who were no longer employed by Cintas prior to"
Cintas_2022_ESGReport.txt,"us require significant changes to, and restatements of, our data in future years. a location’s utility information was not available, a science-based, algorithmic model
Further, in some areas of our social data, we have chosen to align our disclosures was used based on the location’s square footage to best approximate and compete
with the GRI requirements, rather than the EEO-1 reporting requirements of the U.S. the data set. Please note that Cintas complies with air permitting requirements for
federal government (e.g., employee age brackets). As further and continued guidance applicable operations that include emissions of other pollutants, however they are not"
Cintas_2022_ESGReport.txt,"pacts Environment > Waste
Environment > Waste > Zero Waste Project
Environment > Waste > Technology’s Role in Managing Waste Materials
306-03 Waste generated Environment > Waste
Environment > Waste > Zero Waste Project
Environment > Waste > Technology’s Role in Managing Waste Materials
306-04 Waste diverted from disposal Environment > Waste
Environment > Waste > Zero Waste Project
306-05 Waste directed to disposal Environment > Waste
Environment > Waste > Zero Waste Project
401: Employment 2016
401-01 New employee hires and employee turnover Social > Workforce Recruitment and Retention Data"
Cintas_2022_ESGReport.txt,"y’s Role in Managing Waste Materials
306-03 Waste generated Environment > Waste
Environment > Waste > Zero Waste Project
Environment > Waste > Technology’s Role in Managing Waste Materials
306-04 Waste diverted from disposal Environment > Waste
Environment > Waste > Zero Waste Project
306-05 Waste directed to disposal Environment > Waste
Environment > Waste > Zero Waste Project
401: Employment 2016
401-01 New employee hires and employee turnover Social > Workforce Recruitment and Retention Data
401-02 Benefits provided to full-time employees that are not provided to temporary or Social > Compensation and Benefits > Employee-Partner Benefits"
Cintas_2022_ESGReport.txt,"S 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DISCLOSURE DESCRIPTION PAGE NUMBER(S), URL(S) AND/OR INFORMATION
403: Occupational Health & Safety 2016
403-01 Occupational health and safety management system Social > Safety and Health > Occupational Safety and Health Management System
403-02 Hazard identification, risk assessment, and incident investigation Social > Safety and Health > Annual CHSMS Evaluations
Social > Safety and Health > Ongoing Monitoring
403-03 Occupational health services Social > Compensation and Benefits > Employee-Partner Benefits"
Cintas_2022_ESGReport.txt,"onal health and safety management system Social > Safety and Health > Occupational Safety and Health Management System
403-02 Hazard identification, risk assessment, and incident investigation Social > Safety and Health > Annual CHSMS Evaluations
Social > Safety and Health > Ongoing Monitoring
403-03 Occupational health services Social > Compensation and Benefits > Employee-Partner Benefits
Social > Safety and Health > Occupational Health Initiatives
Social > Safety and Health > Ergo Excellence
403-04 Worker participation, consultation, and communication on occupational health Social > Safety and Health > Employee-Partners Central To Identifying Concerns"
Cintas_2022_ESGReport.txt,"s
Social > Safety and Health > Ergo Excellence
403-04 Worker participation, consultation, and communication on occupational health Social > Safety and Health > Employee-Partners Central To Identifying Concerns
and safety Social > Safety and Health > Awareness, Training and Development
Social > Safety and Health > Ergo Excellence
Social > Safety and Health > Commitment to VPP
403-05 Worker training on occupational health and safety Social > Safety and Health > Awareness, Training and Development
403-06 Promotion of worker health Social > Compensation and Benefits > Employee-Partner Benefits"
Cintas_2022_ESGReport.txt,"s relationships Social > Safety and Health > Ergo Excellence
Social > Safety and Health > Operationalizing Safety and Health
403-08 Workers covered by an occupational health and safety management system Social > Safety and Health > Occupational Safety and Health Management System
403-09 Work-related injuries Social > Safety and Health > Work-related Injuries and Illness
403-10 Work-related ill health Social > Safety and Health > Work-related Injuries and Illness
404: Training and Education 2016
404-01 Average hours of training per year per employee Social > Training and Development"
Cintas_2022_ESGReport.txt,"Operationalizing Safety and Health
403-08 Workers covered by an occupational health and safety management system Social > Safety and Health > Occupational Safety and Health Management System
403-09 Work-related injuries Social > Safety and Health > Work-related Injuries and Illness
403-10 Work-related ill health Social > Safety and Health > Work-related Injuries and Illness
404: Training and Education 2016
404-01 Average hours of training per year per employee Social > Training and Development
404-02 Programs for upgrading employee skills and transition assistance programs Social > Training and Development"
Cintas_2022_ESGReport.txt,"s a multiple-tiered approach to Governance > Cybersecurity and
identifying and addressing and Analysis system security. We utilize software programs Data Privacy
data security risks to identify potential system security risks,
and perform a regular analysis of the system
updates. We regularly audit and review our
processes. In addition, Cintas performs regular
security maintenance, including issuing system
patches, performing penetration testing, and
monitoring data flow throughout the company,
among other security efforts. Cintas’ employee-"
Cintas_2022_ESGReport.txt,"NCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Pct FY’22 Total Workforce by Gender Social > Diversity, Equity & Inclusion
Diversity and and racial/ethnic group Female = 35.7% > Workforce Data
Engagement representation for total Male = 64.3%
workforce
FY’22 Total U.S. Workforce by
EEO-1 Designations
White = 55.8%
Latin/Hispanic = 21.7%
Black/African American = 15.2%
Asian = 4.0%
Two or More Races = 2.5%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.4%
SV-PS-330a.3 Employee engagement as Quantitative Pct Results of the 2022 Employee Engagement Social > Employee-Partner"
Cintas_2022_ESGReport.txt,"= 35.7% > Workforce Data
Engagement representation for total Male = 64.3%
workforce
FY’22 Total U.S. Workforce by
EEO-1 Designations
White = 55.8%
Latin/Hispanic = 21.7%
Black/African American = 15.2%
Asian = 4.0%
Two or More Races = 2.5%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.4%
SV-PS-330a.3 Employee engagement as Quantitative Pct Results of the 2022 Employee Engagement Social > Employee-Partner
a percentage Survey were not available at the time of this Engagement
report’s preparation. The last employee Cintas 2021 ESG Report > Social >"
Cintas_2022_ESGReport.txt,"workforce
FY’22 Total U.S. Workforce by
EEO-1 Designations
White = 55.8%
Latin/Hispanic = 21.7%
Black/African American = 15.2%
Asian = 4.0%
Two or More Races = 2.5%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.4%
SV-PS-330a.3 Employee engagement as Quantitative Pct Results of the 2022 Employee Engagement Social > Employee-Partner
a percentage Survey were not available at the time of this Engagement
report’s preparation. The last employee Cintas 2021 ESG Report > Social >
engagement survey in 2019 reported a 90% Employee-Partner Engagement"
Cintas_2022_ESGReport.txt,"5.8%
Latin/Hispanic = 21.7%
Black/African American = 15.2%
Asian = 4.0%
Two or More Races = 2.5%
Native American/Alaskan = 0.4%
Native Hawaiian/Pacific Islander = 0.4%
SV-PS-330a.3 Employee engagement as Quantitative Pct Results of the 2022 Employee Engagement Social > Employee-Partner
a percentage Survey were not available at the time of this Engagement
report’s preparation. The last employee Cintas 2021 ESG Report > Social >
engagement survey in 2019 reported a 90% Employee-Partner Engagement
employee engagement rate. Category-specific"
Cintas_2022_ESGReport.txt,"SG strategy against the United Nations (UN) Sustainable Development Goals (SDGs),
a global framework which aims to address some of the world’s most pressing environmental, social and governance
challenges. Our current ESG work aligns closely with 3 SDGs:
SDG 6: CLEAN WATER SDG 7: AFFORDABLE SDG 12: RESPONSIBLE
AND SANITATION AND CLEAN ENERGY CONSUMPTION AND
PRODUCTION
Water is a prime input in our business, and With our ambition to achieve Net Zero GHG Consistent with our Corporate Culture, our
we have placed significant effort on lessening emissions by 2050, we are committed to employee-partners are expected to adhere to"
Cintas_2022_ESGReport.txt,"ities laws.
Readers should not place undue reliance on the information set forth
in this ESG Report.
2CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR ESG JOURNEY SOCIAL
WELCOME
10 A Message from Our CEO 48 Overview and Approach
11 A Message from Our Vice President of ESG 49 Our People
and Chief Compliance Officer 51 Human Rights
Our 2022 Environmental, Social, and Governance 12 2022: Our Environmental Year in Review 53 Diversity, Equity & Inclusion
(ESG) Report shares stories and updates from our 13 Our Path to Net Zero 55 Workforce Data"
Cintas_2022_ESGReport.txt,"AL
WELCOME
10 A Message from Our CEO 48 Overview and Approach
11 A Message from Our Vice President of ESG 49 Our People
and Chief Compliance Officer 51 Human Rights
Our 2022 Environmental, Social, and Governance 12 2022: Our Environmental Year in Review 53 Diversity, Equity & Inclusion
(ESG) Report shares stories and updates from our 13 Our Path to Net Zero 55 Workforce Data
ongoing ESG Journey – including our performance, 14 SPOTLIGHT: EV Pilot Hits the Road 56 Talent Recruitment and Retention
successes, and opportunities. 15 Stakeholder Engagement 58 Workforce Recruitment and Retention Data"
Cintas_2022_ESGReport.txt,"chmarking.
16CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR MARKET ADVANTAGE:
SUSTAINABLE PRODUCTS AND SERVICES
COMPANY INITIATIVES UNIFORM RENTAL FACILITY SERVICES
• Supplier compliance programs set • Targeted recruiting and leadership- • Maintain and recycle wearers’ • Offer Green Seal-certified products
expectations of our vendors’ societal development programs expand and apparel to reduce customers’ overall • Provide Design for the Environment
impact and monitor compliance with retain workforce diversity material requirements (DfE) chemicals"
Cintas_2022_ESGReport.txt,"has designed t-shirt and twill pant samples
to act on this opportunity. One of those is our
constructed from circular textiles that can be
Accelerating Circularity Program.
included in our product offerings.
46CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
SOCIAL
48 Overview and Approach 68 SPOTLIGHT: PBRGs: Supporting Partner
49 Our People Development
51 Human Rights 69 Employee-Partner Engagement
53 Diversity, Equity & Inclusion 70 Safety and Health
55 Workforce Data 74 SPOTLIGHT: Ergo Excellence"
Cintas_2022_ESGReport.txt,"OACH
ultimately helped define Cintas and what we stand for. those in our value chain.
Our goal is to foster a working environment where We strive to perpetuate a safe and healthy workplace
We are intentional about our Corporate Culture and everyone feels their contributions help empower our that encourages and celebrates Diversity, Equity &
how we’ve interpreted and evolved it through the years. collective success. We firmly believe an engaged and Inclusion so our employee-partners have a sense
It’s the foundation of our company and continues to fulfilled workforce is a harbinger of our ongoing success of belonging and purpose while they’re on the job"
Cintas_2022_ESGReport.txt,"s our
how impactful they are to our overall success, everyone feels their contributions help empower our
customers’ expectations and needs evolve.
we place tremendous importance on treating collective success.
At the heart of our company sit our employee-partners, them fairly and ethically and providing ongoing,
who are our best representatives. They are in the field meaningful opportunities.
48CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
OUR PEOPLE
FY’22 WORKFORCE HIGHLIGHTS16"
Cintas_2022_ESGReport.txt,"G
with the Occupational Safety and Health Administration
accountability and employee-partner access but also
OUR FUTURE
(OSHA)’s recognition for workplace safety: the Voluntary
articulates our ethical expectations.
Protection Program (VPP). We prioritize the growth and development of our
employee-partners, and our strong preference is to We hold that all these tenets – and more – have helped
promote from within. With our diverse businesses and us foster and perpetuate a strong, open environment
EMPOWERING OUR WORKFORCE"
Cintas_2022_ESGReport.txt,"lopment
representation.18
engaged and feel connected to our overall success, we offerings help employee-partners attain and refine
believe they’re more likely to remain at Cintas to grow important knowledge and skills that further support their In areas where our employee-partners have voted
their careers. ongoing career and personal growth. We also facilitate for union representation, we satisfy our bargaining
training and certifications as positions require. obligations as defined by the law.
We continue to monitor and mentor our workforce and"
Cintas_2022_ESGReport.txt,"oductive
a natural extension of those tenets. same expectations of our external suppliers, contractors, working conditions. Further, we expect our Global
and business partners. Supply Chain Suppliers to comply with all applicable
Cintas is committed to promoting and upholding the
laws and regulations regarding working hours, wages,
human rights, workplace rights, and workplace safety of We know that cultural and societal differences exist
and overtime pay in the countries in which they operate.
our own workforce and the workforces of those entities throughout the world. Our Vendor Code of Conduct"
Cintas_2022_ESGReport.txt,"ns, given the scope of the
imminent changes.
In cases where a Worker Adjustment and Retraining
Notification (WARN) is required in the United States,
we provide at least the minimum required notice
of 60 days to affected operation(s). Our U.S.-based
collective bargaining agreements include standard
60-day notification periods as required by law, unless
negotiated otherwise for a different length of time.
52CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY Fundamentally, we want our workforce to reflect the"
Cintas_2022_ESGReport.txt,"periods as required by law, unless
negotiated otherwise for a different length of time.
52CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
DIVERSITY, EQUITY Fundamentally, we want our workforce to reflect the
communities in which we do business. We believe this
RECOGNITION FOR OUR EFFORTS
leads to ideas, solutions, and improved outcomes that
& INCLUSION
better serve our customers, shareholders, and other In recent years, our efforts to promote a diverse
stakeholders in the long term. workforce have been recognized with a host of"
Cintas_2022_ESGReport.txt,"tions, and improved outcomes that
& INCLUSION
better serve our customers, shareholders, and other In recent years, our efforts to promote a diverse
stakeholders in the long term. workforce have been recognized with a host of
awards and honors, including:
We seek to foster a diverse workplace where employee- Having a broad range of experiences to lean on also
partners of different backgrounds can come together helps us enter new markets and gain new customers. • Forbes’ “America’s Best Employers
to identify and champion opportunities, all while Our diverse workforce helps us better understand how for Diversity”"
Cintas_2022_ESGReport.txt,"mer, stressed every employee- our customers’ needs, and what innovations may benefit
of Diversity”
partner’s importance to the company – regardless of our business.
• “Influencer Award” from Autism Speaks
their position or role. This has been a fundamental
belief at Cintas since the beginning. UPDATING OUR DEI STRATEGY • “Best Place to Work for Disability Inclusion”
by Disability Equality Index
We’ve made a committed effort to foster a diverse Our constituents – both internally and externally –
workforce of employee-partners. We believe our have shown significant interest in our programs, • Military Friendly® as a Bronze Employer and"
Cintas_2022_ESGReport.txt,"ies in our overall corporate and
under the broader umbrella of our refreshed
a forum for deeper insight, understanding, empathy, business strategy. Our updated DEI strategy includes
DEI strategy.
and compassion. five components that can impact employee-partners
We expanded our dedicated DEI team to help broaden throughout their Cintas careers. These are:
its focus and impact on our overall corporate strategy,
• Recruiting
and amplified our diverse recruiting, diversity training,
CHAMPIONING DEI
and ongoing workforce education. • Partner Advancement"
Cintas_2022_ESGReport.txt,"CEO and President at the start • Training and Education
almost 20 years, when then-newly appointed
of FY’22 – agreed to the CEO Action for Diversity & • Partner Business Resource Groups
Chief Executive Officer Scott Farmer – now our
Inclusion™ Pledge, which positions Cintas among a
Executive Chairman – championed Diversity & • DEI Communications
wide group of corporate and not-for-profit leaders.
Inclusion. Scott Farmer not only endorsed and
This allows the company to collaborate and benchmark
codified Cintas’ efforts to expand its workforce"
Cintas_2022_ESGReport.txt,"nagement
connections, and productive networking opportunities.
Trainee program, our Advanced Management Partners, Training and Education
and our leadership positions. Our refreshed DEI training curriculum was launched
at the start of FY’23. This is required instruction for DEI Communications
We have expanded our team of Campus Talent
all managers with direct reports, as well as all Human Cintas’ DEI team also launched an ongoing initiative to
Acquisition Managers. This has allowed us to further
Resources employee-partners. regularly communicate to our workforce about our DEI"
Cintas_2022_ESGReport.txt,"ally, our Meticulous Hiring curriculum – required
Hispanic Association of Colleges and Universities for all hiring managers – has been reviewed to include Building on established recognition months, cultural
(HACU), and other Hispanic-serving institutions. updated DEI priorities and considerations that have holidays, and milestones, the DEI team produced
been implemented in Cintas’ hiring process. weekly and monthly content series to help our entire
In March 2022, we joined the HBCU Partnership
workforce become more familiar with Cintas’ DEI"
Cintas_2022_ESGReport.txt,"nded access to our Executive Leadership
• RISE2: Black/African American employee-partners
Program (ELP) and additional mentorship connections.
• TODOS: Hispanic and Latin employee-partners
Our leadership team is engaged with relevant
• VALOR: military-affiliated employee-partners
organizations to help identify hiring and promotion
opportunities for employee-partners from • WAVE: female employee-partners
54CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WORKFORCE DATA"
Cintas_2022_ESGReport.txt,"n Over 50 5,105 12.7% 5,525 12.9%
55CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TALENT EXPANDING OUR TEAM ATTRACTING THE BEST TALENT
We’ve invested heavily in our talent pipeline and To maintain our competitive advantage and generate
RECRUITMENT have created many new full-time jobs to support our a diverse and qualified applicant pool, we post our
company’s ongoing and forecasted growth. During positions both internally and externally across career
FY’22 alone, we expanded our workforce by 6.29%, sites, job boards, and social media platforms. To"
Cintas_2022_ESGReport.txt,"ith an attractive This new leader will: around the country to source and recruit applicants for
benefits package as well as ongoing opportunities for • Champion our efforts to refine our Talent many roles.
advancement and career development. We also provide
Acquisition strategy
significant opportunities to further champion our
employee value proposition to potential – and current – • Identify new, overlooked, or underutilized avenues
employee-partners. to source and secure talent to support our
growing workforce"
Cintas_2022_ESGReport.txt,"le, individuals can apply for open positions on
At Cintas, we can offer different careers and job
the HACU. our website.
opportunities to meet someone’s professional needs
In FY’22, our corporate recruiting teams participated in Additionally, hiring managers have tools to recruit at every stage of their career, with both lateral and
almost 1,000 on-campus recruiting events in the United internally and identify potential team members from our upward opportunities that continue to provide support
States and Canada. These included career fairs, diversity existing workforce. Each year, employee-partners are alongside ongoing company investment in their"
Cintas_2022_ESGReport.txt,"es them to all facets of our business.
talent at Cintas and source internal candidates who may factor in helping us retain the best talent.
We offer competitive wages, extensive training, and
not otherwise be aware of available opportunities.
work experience in one area of Cintas, along with the
potential to transition directly into our Management
TALENT RETENTION
Trainee program upon graduation.
Approximately 43,000 employee-partners company-
We’ve also developed competitive apprenticeship and
wide, we have a dynamic and talented workforce."
Cintas_2022_ESGReport.txt,"rational area. We found that our
Our hiring process is detailed and leverages a series
employee-partners value the opportunity to gain new
of introductory and in-depth behavioral interviews,
skills, do new jobs more frequently, and grow their
plus job trials when appropriate. This process helps us
careers faster.
understand candidates’ work experiences and the skills
and acumen they may bring to Cintas.
57CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
WORKFORCE RECRUITMENT DATA WORKFORCE RETENTION DATA"
Cintas_2022_ESGReport.txt,"omen 30–50 2,489 16.7% Women 30–50 1,980 17.6%
Over 50 2,122 14.2% Over 50 1,736 15.4%
Men Over 50 1,012 6.8% Men Over 50 877 7.8%
Women Over 50 1,110 7.4% Women Over 50 859 7.6%
58CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
COMPENSATION PAY EQUITY Our latest annual review continued to confirm that our
compensation practices pay our employee-partners
Cintas will continue to be an equal opportunity
equally. This includes the consideration of related
AND BENEFITS employer. We aim to develop a workforce of diverse"
Cintas_2022_ESGReport.txt,"loyee-partners – is a two-
where they can share experiences and support
time finalist (2020 and 2021) in the U.S. Hispanic
one another. They also provide a platform for
Chamber of Commerce Annual Conference’s ERG
management to hear from our employee-partners
(Employee Resource Group) Challenge.
directly about the issues that matter most to
them. It’s a two-way dialogue that we believe
benefits everyone.
68CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
EMPLOYEE- We monitor the general engagement of our workforce In the Fall of 2022, we launched our most recent"
Cintas_2022_ESGReport.txt,"tely 10 minutes to complete.
deeper engagement. We partner with Willis Towers
Since our last survey, which was administered in 2018,
ENGAGEMENT Watson (WTW) to administer those engagement surveys.
the world has changed as a result of the COVID-19
Our surveys include corporate- and location-based pandemic. We recognize those changes and that new
questions to help gauge our employee-partners’ challenges and opportunities now face the company,
We believe that our employee-partners reach their full
feelings about the company as a whole and their our employee-partners, and the workforce. This year’s"
Cintas_2022_ESGReport.txt,"that they do
specific worksites. survey reflected those changes and set out with six
their best work when they are highly engaged with the
main goals:
company and their fellow employee-partners. After the surveys are completed, WTW analyzes and
evaluates the data with focuses on both the corporate 1. Understand our current culture in the context
As a service provider, we’ve seen the benefit of an
and location level, and provides our management team of internal and external influences since 2019
engaged and fulfilled workforce, and what it means"
Cintas_2022_ESGReport.txt,"departments, as well as the local management team.
NOTE: The numbers appearing in the orange pins represent
the number of VPP Star Certified locations in each locale.
71CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
AWARENESS, TRAINING, Our Cintas Ergonomics training was designed with Our award-winning Ergonomics team, recognized by
the Cintas culture of engagement and specific hazards OSHA and the International Ergonomics Association,
AND DEVELOPMENT
in mind. It has been recognized by the International supports our workforce to help identify solutions"
Cintas_2022_ESGReport.txt,"ht by external experts. is featured in the Harvard T.H. Chan School of Public designing and implementing a corporate Ergonomics
Health safety and health curriculum. program that focuses on our frontline partners’ ideas
The training is reinforced with signage and posters
and solutions to join our problem-solving efforts.
designed in the predominant languages at our field
locations, displayed throughout our facilities. OCCUPATIONAL HEALTH INITIATIVES In FY’22, our corporate Ergonomics team helped
Our goal of supporting a workforce of healthy, engaged our Rental organization save more than 773 million"
Cintas_2022_ESGReport.txt,"Partner Assistance Fund is tracked by calendar year, not by fiscal year. Cintas
Accessed by Accelerating Circularity in 2020. Partner Assistance Fund 2022 totals are disclosed through the end of Cintas’ FY’22, which
ended May 31, 2022.
15 The references to “almost” or “approximately” 43,000 employee-partners throughout this
report cite the 42,693 employee-partners based in roles in the United States and Canada, 26 More information about our Board members, including biographical information and
which is the scope of this report. Other employee-partner workforce totals referenced in our professional affiliations, is available in our 2022 Proxy Statement."
Cintas_2022_ESGReport.txt,"orting About This Report
2-3 Reporting period, frequency and contact point About This Report
2-4 Restatements of information About This Report
2-5 External assurance Cintas did not pursue external assurance for its 2022 ESG Report.
Activities and Workers
2-6 Activities, value chain and other business relationships This is Cintas
Social > Global Supply Chain and Supplier Relations
Governance > Public Policy and Advocacy
Social > Community Impact and Philanthropy
2-7 Employees Social > Our People
Social > Diversity, Equity & Inclusion > Workforce Data"
Cintas_2022_ESGReport.txt,"pacts Environment > Waste
Environment > Waste > Zero Waste Project
Environment > Waste > Technology’s Role in Managing Waste Materials
306-03 Waste generated Environment > Waste
Environment > Waste > Zero Waste Project
Environment > Waste > Technology’s Role in Managing Waste Materials
306-04 Waste diverted from disposal Environment > Waste
Environment > Waste > Zero Waste Project
306-05 Waste directed to disposal Environment > Waste
Environment > Waste > Zero Waste Project
401: Employment 2016
401-01 New employee hires and employee turnover Social > Workforce Recruitment and Retention Data"
Cintas_2022_ESGReport.txt,"Act
SV-PS-230a.3 (1) Number of data Quantitative Qty., Pct FY’22: Governance > Cybersecurity and
breaches, (2) percentage (1) Zero Data Privacy
involving customers' (2) 0%
confidential business (3) Zero
information (CBI) or
personally identifiable
information (PII), (3) number
of customers affected
108CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Pct FY’22 Total Workforce by Gender Social > Diversity, Equity & Inclusion"
Cintas_2022_ESGReport.txt,"Data Privacy
involving customers' (2) 0%
confidential business (3) Zero
information (CBI) or
personally identifiable
information (PII), (3) number
of customers affected
108CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Pct FY’22 Total Workforce by Gender Social > Diversity, Equity & Inclusion
Diversity and and racial/ethnic group Female = 35.7% > Workforce Data"
Cintas_2022_ESGReport.txt,"formation (PII), (3) number
of customers affected
108CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Pct FY’22 Total Workforce by Gender Social > Diversity, Equity & Inclusion
Diversity and and racial/ethnic group Female = 35.7% > Workforce Data
Engagement representation for total Male = 64.3%
workforce"
Cintas_2022_ESGReport.txt,"(PII), (3) number
of customers affected
108CINTAS 2022 ESG REPORT ABOUT CINTAS OUR ESG JOURNEY ENVIRONMENT SOCIAL GOVERNANCE APPENDIX
TOPIC CODE ACCOUNTING METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Workforce SV-PS-330a.1 Percentage of gender Quantitative Pct FY’22 Total Workforce by Gender Social > Diversity, Equity & Inclusion
Diversity and and racial/ethnic group Female = 35.7% > Workforce Data
Engagement representation for total Male = 64.3%
workforce
FY’22 Total U.S. Workforce by"
Cintas_2022_ESGReport.txt,"ance > Ethics and Integrity
Integrity to ensuring professional and Analysis Code of Conduct and
integrity Business Ethics
SV-PS-510a.2 Total amount of monetary Quantitative US$ FY’22: $0 FY’22 Form 10-K (pg. 16)
losses as a result of legal
proceedings associated
with professional integrity
ACTIVITY METRIC CATEGORY UNIT OF MEASURE DATA AND ADDITIONAL INFORMATION REFERENCE LOCATION
Number of employees by: (1) full-time and part-time, Quantitative Qty. FY’22: Social > Diversity, Equity & Inclusion
(2) temporary, and (3) contract Full-time: 42,445 > Workforce Data"
CLX-2022-Integrated-Full-Report.txt,"tent and profitable growth over time; build a stronger, more
benefits and programs to support the physical, mental and financial well- resilient company; and create long-term value for stakeholders. Clorox has
being of our people, including implementing a new flexible time off policy, succeeded over the last 109 years by evolving and adapting as challenges
announcing enhanced family-forming benefits and providing a health and opportunities have presented themselves, and I have no doubt that our
savings account option to our U.S. teammates. Importantly, as employee best years lie ahead."
CLX-2022-Integrated-Full-Report.txt,"ase liabilities 78 81 64
rate excluding the identified U.S. GAAP items); and less after-tax profit attributable Income taxes payable — — 25
to noncontrolling interests, and less a capital charge (calculated as average capital Long-term operating lease liabilities 314 301 278
employed multiplied by a cost of capital rate). EP is a key financial metric that the Other liabilities viii 778 819 755
company’s management uses to evaluate business performance and allocate Deferred income taxes 66 67 62
resources and is a component in determining employee incentive compensation. Noninterest-bearing liabilities 2,699 2,938 2,511"
CLX-2022-Integrated-Full-Report.txt,"sumer-meaningful information through industry initiatives
Set initial goal focus on the development of cleaning
Increase sales of products with targeted certifications and
products with U.S. EPA Safer Choice program and
product transparency affiliations 100% by CY25, compared New target
Design for the Environment certifications and/or
to CY20 baseline***
USDA BioPreferred Program affiliation
Employees
Achieved/
Maintain our recordable incident rate of <1.02 0.56
ongoing
• Overall employees: 64%
Enhance employee financial literacy as measured by"
CLX-2022-Integrated-Full-Report.txt,"et
Design for the Environment certifications and/or
to CY20 baseline***
USDA BioPreferred Program affiliation
Employees
Achieved/
Maintain our recordable incident rate of <1.02 0.56
ongoing
• Overall employees: 64%
Enhance employee financial literacy as measured by
income replacement ratio exceeding Vanguard 401(k) • Production employees: 69% In progress
client average of 55%, with aspiration of 75% stated target3
• Nonproduction employees: 58%
Enhance health and well-being outcomes as measured
by employee utilization of preventive health screenings"
CLX-2022-Integrated-Full-Report.txt,"nental U.S. In 2022, the program was expanded
internationally in four languages. With an increase in complexity,
attrition and cumulative fatigue of the broader labor force, we
reported a recordable incident rate, or RIR, of 0.56 in the fiscal
year. Although an increase from the previous year, our RIR is still
significantly lower than our goal of 1.0 and the 3.1 RIR for goods-
producing manufacturing companies in 2020, which is the latest
available data from the U.S. Bureau of Labor Statistics.
Advancing our IGNITE commitment to employee health and well-being,"
CLX-2022-Integrated-Full-Report.txt,"ur languages. With an increase in complexity,
attrition and cumulative fatigue of the broader labor force, we
reported a recordable incident rate, or RIR, of 0.56 in the fiscal
year. Although an increase from the previous year, our RIR is still
significantly lower than our goal of 1.0 and the 3.1 RIR for goods-
producing manufacturing companies in 2020, which is the latest
available data from the U.S. Bureau of Labor Statistics.
Advancing our IGNITE commitment to employee health and well-being,
in fiscal year 2022 we set a target to measure and encourage employee"
CLX-2022-Integrated-Full-Report.txt,"the U.S. Bureau of Labor Statistics.
Advancing our IGNITE commitment to employee health and well-being,
in fiscal year 2022 we set a target to measure and encourage employee
utilization of preventive screenings in the areas of adult wellness, mammography,
cervical cancer and colon cancer to contribute to improved health outcomes.
Recognizing the prolonged effects of the pandemic, we’ve also focused increasingly
on supporting mental health. We enhanced our offering to provide quicker access and
more comprehensive care by launching a partnership with a new employee assistance"
CLX-2022-Integrated-Full-Report.txt,"ess and
more comprehensive care by launching a partnership with a new employee assistance
program partner that enables coverage globally.
To help our people be better prepared for retirement, we continued to advance our goal of
enhancing financial literacy, as measured by a metric called the income replacement ratio.
We accomplished that by offering third-party financial planning services and a 401(k) plan
that’s above market relative to the industry average, with the company contributing up to
10% of an employee’s annual salary."
CLX-2022-Integrated-Full-Report.txt,"gender globally and races/
Confirmed in FY22 Achieved/ongoing
ethnicities in the U.S.10
Commitment to establishing targets
Achieve gender and race/ethnicity representation target11 In progress
in FY23
Achieve inclusion index goals: Parity across total company • Women (global): 78% Achieved/ongoing
(76%12 in FY22) vs. women and people of color***, 12 • POC (U.S.): 72% On track
Set targets related to manager capabilities and
Evaluating potential targets In progress
workforce experience
82% $182M
employee engagement, in in spending with"
CLX-2022-Integrated-Full-Report.txt,"eve gender and race/ethnicity representation target11 In progress
in FY23
Achieve inclusion index goals: Parity across total company • Women (global): 78% Achieved/ongoing
(76%12 in FY22) vs. women and people of color***, 12 • POC (U.S.): 72% On track
Set targets related to manager capabilities and
Evaluating potential targets In progress
workforce experience
82% $182M
employee engagement, in in spending with
line with the 50th percentile diverse suppliers14
of Fortune 500 companies12
4,000 46%
nonprofit participation in employee"
CLX-2022-Integrated-Full-Report.txt,"ages 53-54 for a comprehensive update on our IGNITE ESG goals and pages 68-69 for ESG metric endnotes; visit our ESG Data Hub to view progress over time.
** As of June 30, 2022.
***Based on survey conducted February-March 2022.
31
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Investing in our people and culture
An emphasis on employee well-being is critical to our efforts to drive growth and deliver on our"
CLX-2022-Integrated-Full-Report.txt,"on survey conducted February-March 2022.
31
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Investing in our people and culture
An emphasis on employee well-being is critical to our efforts to drive growth and deliver on our
corporate purpose. Like many other companies, we experienced elevated turnover in fiscal
year 2022. To retain top talent, we regularly assess employee sentiment and retention risk"
CLX-2022-Integrated-Full-Report.txt,"s the pandemic evolves and we move to new ways of working, we’ve anchored
to a set of core beliefs: 1) there’s value in being together — some of the time; 2) the
future of work is hybrid; and 3) the Clorox experience must be good for our people
and our business. These beliefs influenced the design of our hybrid work experience
implemented in fiscal year 2022. Instead of specifying on-site hours, we’re being
intentional about the quality moments that matter, such as coming together for strategic
planning, problem-solving and culture-building moments. Our focus is on the employee"
CLX-2022-Integrated-Full-Report.txt,"nce inclusion
and diversity in fiscal year 2022. Key among them was creating
a new chief diversity and social impact officer role to lead our
I&D strategy development and execution beginning in fiscal
year 2023. This individual is serving as a member of the Clorox
Executive Committee and reporting to our chief executive
officer. CEC members also participated in training to equip
and inspire them to foster inclusive environments built on
mutual respect and trusting relationships. Building on the
foundational work of our employee resource groups that"
CLX-2022-Integrated-Full-Report.txt,"ated mindset, we conduct an ongoing
fairly, regardless of race, ethnicity or gender, is listening strategy to gauge
central to creating an equitable work environment. teammates’ perceptions of
As part of that commitment, we continue to Clorox as a place to work as well
conduct pay equity analyses annually for our as understand their views of
leadership, our IGNITE strategy
nonproduction teammates, partnering with a
and their sense of inclusion. In
third-party labor economist to review potential
fiscal year 2022, our employee"
CLX-2022-Integrated-Full-Report.txt,"a basic human right.
$80M
The foundation is addressing this signature theme through a focus on 13
programs in three areas: 1) community wellness, 2) disease prevention
U.S. corporate
and 3) disaster relief and preparedness. Using this framework, our
product donations
foundation is bringing our purpose to life in new and innovative ways, such
as the launch this year of the Healthy Parks Project, an environmental justice
campaign with an initial $200,000 investment in parks organizations where we
have large employee bases. The project involved volunteer events, employee giving seeded by"
CLX-2022-Integrated-Full-Report.txt,"ct donations provide us with another tool to support community well-being. To help with
recovery efforts from the severe 2021 hurricane season, our Professional Products business partnered
with Convoy of Hope to donate and distribute 7,000 Clorox TurboPro Handheld Electrostatic Sprayers,
which are specially engineered to disinfect large spaces quickly and easily. The business also deployed
$3M
15
hundreds of truckloads of CloroxPro disinfectants across multiple impacted states, including ready-
to-use bleach products that clean, kill, and control mold and mildew. To support COVID relief and or 102,500 employee"
CLX-2022-Integrated-Full-Report.txt,") Noncontrolling Stockholders’
except per share data Amount (000) Capital Earnings Amount (000) Income interests Equity
Balance as of June 30, 2019 $ 159 158,741 $ 1,046 $ 3,150 $ (3,194) (33,055) $ (602) $ — $ 559
Cumulative effect of accounting changes1 — — — 22 — — — — 22
Net earnings — — — 939 — — — — 939
Other comprehensive (loss) income — — — — — — (38) — (38)
Dividends to Clorox stockholders
— — — (544) — — — — (544)
($4.29 per share declared)
Stock-based compensation — — 50 — — — — — 50
Other employee stock plan activities — — 41 — 121 2,043 — — 162"
CLX-2022-Integrated-Full-Report.txt,"ased — — — — (242) (1,531) — — (242)
Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908
Net earnings — — — 710 — — — 9 719
Other comprehensive (loss) income — — — — — — 94 — 94
Dividends to Clorox stockholders
— — — (564) — — — — (564)
($4.49 per share declared)
Dividends to noncontrolling interests — — — — — — — (26) (26)
Business combinations including purchase
— — — — — — — 198 198
accounting adjustments
Stock-based compensation — — 50 — — — — — 50
Other employee stock plan activities — — (1) (37) 156 1,340 — — 118"
CLX-2022-Integrated-Full-Report.txt,"sury stock purchased — — — — (905) (4,758) — — (905)
Treasury stock retirement (28) (28,000) — (2,640) 2,668 28,000 — — —
Balance as of June 30, 2021 $ 131 130,741 $ 1,186 $ 1,036 $ (1,396) (7,961) $ (546) $ 181 $ 592
Net earnings — — — 462 — — — 9 471
Other comprehensive (loss) income — — — — — — 67 — 67
Dividends to Clorox stockholders
— — — (430) — — — — (430)
($3.48 per share declared)
Dividends to noncontrolling interests — — — — — — — (17) (17)
Stock-based compensation — — 52 — — — — — 52
Other employee stock plan activities — — (36) (20) 75 524 — — 19"
CLX-2022-Integrated-Full-Report.txt,"S
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Years ended June 30
2022 2021 2020
Dollars in millions
Financing activities:
Notes and loans payable, net 237 — (396)
Long-term debt repayments (1,405) — —
Long-term debt borrowings, net of issuance costs paid 1,085 — 492
Treasury stock purchased (25) (905) (248)
Cash dividends paid to Clorox stockholders (571) (558) (533)
Cash dividends paid to noncontrolling interests (15) (31) —
Issuance of common stock for employee stock plans and other 5 103 162"
CLX-2022-Integrated-Full-Report.txt,"agers, U.S.11, 15, 17 U.S. Only 32%
any race that is not white (Asian; Black; Latino; Native American; Native
Hawaiian; or Two or More).
POC Senior Executives, U.S.11, 15, 17 U.S. Only 17%
Total recordable incident rate12, 15 Global Rate of 0.56 GRI Standard 403-9a.iii.
recordable
work-related Occupational Safety and Health Administration (OSHA) Regulation
injuries (Standards-29 CFR), Part 1904 “Recording and Reporting Occupational
Injuries and Illness” defines recordable work-related injuries.
Employee engagement13, 15 Global Percent (%) 82% Sustainability Accounting Standards Board (SASB) TC-IM-330a.2."
CLX-2022-Integrated-Full-Report.txt,"ower purchase agreements (VPPAs), RECs
purchased on the open market, and International RECs (I-RECs) purchased through an energy service provider. The accounting for these contractual instruments is in alignment with the GHG Protocol
Scope 2 Guidance Quality Criteria. These instruments were specific to facilities in the U.S., Canada, and Colombia in the 2021 reporting year.
6. Percent change in GHG emissions from the 2020 baseline year utilizes values as reported in Clorox’s 2021 Annual Report.
7. Scope 3 includes Category 4, finished goods transportation, in the U.S. only, and Category 6, global employee business travel. Category 4 emissions is 411,386 tCO2e and Category 6 emissions is"
CLX-2022-Integrated-Full-Report.txt,"is in alignment with the GHG Protocol
Scope 2 Guidance Quality Criteria. These instruments were specific to facilities in the U.S., Canada, and Colombia in the 2021 reporting year.
6. Percent change in GHG emissions from the 2020 baseline year utilizes values as reported in Clorox’s 2021 Annual Report.
7. Scope 3 includes Category 4, finished goods transportation, in the U.S. only, and Category 6, global employee business travel. Category 4 emissions is 411,386 tCO2e and Category 6 emissions is
1,161 tCO2e of the consolidated Scope 3 Category 4 and Category 6 Emissions. Category 6 - Employee business travel includes emissions from commercial air flights and rental car use by Clorox’s"
CLX-2022-Integrated-Full-Report.txt,"wable electricity procured
from renewable energy sources in the U.S. and Canada by total electricity usage in the U.S. and Canada.
10. Water withdrawal includes water at all global manufacturing sites, offices, and research development centers used in 1) products sold to customers, 2) the manufacturing process, 3) irrigation and 4)
water withdrawn by employees during office hours for personal needs (e.g., restrooms, break rooms). Water sources include city/municipal, well, lake and river water.
11. Based on headcount data of employees with reported gender and ethnicities. “Manager” is defined as an employee at Grade 27 or above for U.S. employees and Grade 26 or above for"
CLX-2022-Integrated-Full-Report.txt,"manufacturing sites, offices, and research development centers used in 1) products sold to customers, 2) the manufacturing process, 3) irrigation and 4)
water withdrawn by employees during office hours for personal needs (e.g., restrooms, break rooms). Water sources include city/municipal, well, lake and river water.
11. Based on headcount data of employees with reported gender and ethnicities. “Manager” is defined as an employee at Grade 27 or above for U.S. employees and Grade 26 or above for
international employees with regards to the Company’s Human Resources compensation structure. “Senior Executive” is defined as employee at Grade 32 or Grade EX for both U.S. employees"
CLX-2022-Integrated-Full-Report.txt,"June 30, 2022. The RIR includes all reportable incidents that occurred at the Company facilities globally and
remote workers. The RIR excludes workers at offices with fewer than 10 employees. Recordable incident rate is calculated based upon employees self-reporting work related injuries or illnesses which
may be affected by culture, societal norms, and/or regulations. To the extent a recordable incident is not self-reported, it would not be included in the recordable incident rate calculation.
13. Employee engagement is measured by four questions within a survey that was administered by a third-party, Perceptyx, Inc. The survey took place from February 25, 2022 through March 18, 2022 and"
CLX-2022-Integrated-Full-Report.txt,"incident is not self-reported, it would not be included in the recordable incident rate calculation.
13. Employee engagement is measured by four questions within a survey that was administered by a third-party, Perceptyx, Inc. The survey took place from February 25, 2022 through March 18, 2022 and
6,527 Company employees responded to the survey. Responses were scored on a scale of 1 to 5 as follows: 5: Strongly agree, 4: Agree, 3: Neither agree or disagree, 2: Disagree, or 1: Strongly disagree.
A response of 5 or 4 is considered a favorable response representing active employee engagement. The employee engagement percentage is then calculated as the weighted average of actively"
CLX-2022-Integrated-Full-Report.txt,"tered by a third-party, Perceptyx, Inc. The survey took place from February 25, 2022 through March 18, 2022 and
6,527 Company employees responded to the survey. Responses were scored on a scale of 1 to 5 as follows: 5: Strongly agree, 4: Agree, 3: Neither agree or disagree, 2: Disagree, or 1: Strongly disagree.
A response of 5 or 4 is considered a favorable response representing active employee engagement. The employee engagement percentage is then calculated as the weighted average of actively
engaged responses across the four survey questions. Employee engagement is based upon employees self-reporting. To the extent that the employees do not respond to the survey, the data would"
CLX-2022-Integrated-Full-Report.txt,"ale of 1 to 5 as follows: 5: Strongly agree, 4: Agree, 3: Neither agree or disagree, 2: Disagree, or 1: Strongly disagree.
A response of 5 or 4 is considered a favorable response representing active employee engagement. The employee engagement percentage is then calculated as the weighted average of actively
engaged responses across the four survey questions. Employee engagement is based upon employees self-reporting. To the extent that the employees do not respond to the survey, the data would
not be included in the employee engagement calculation."
CLX-2022-Integrated-Full-Report.txt,"ts Virgin raw materials
• Health and Wellness • Enterprisewide strategy
Capital expenditures (including renewable resources)
• Household integrating ESG priorities
Raw material costs and other expenses Reused or recycled materials
• Lifestyle • Strong execution
Cost-savings program Energy (including 100% renewable
• International • Sustainability Center
electricity in U.S. and Canada)
embedding ESG into
Water
business units
4 OUTCOMES*** 3
OUTPUTS**
Profit and cash flows Sales Inclusive culture
Employee professional growth Transformed financial operations and Diverse representation"
CLX-2022-Integrated-Full-Report.txt,"ls
• Lifestyle • Strong execution
Cost-savings program Energy (including 100% renewable
• International • Sustainability Center
electricity in U.S. and Canada)
embedding ESG into
Water
business units
4 OUTCOMES*** 3
OUTPUTS**
Profit and cash flows Sales Inclusive culture
Employee professional growth Transformed financial operations and Diverse representation
and engagement reporting with automated processes Engaged employees
Brand equity and enhanced planning capabilities Seamless, tech-enabled
Innovation Patents employee experience"
CLX-2022-Integrated-Full-Report.txt,"y and privacy
and peer ESG efforts. We developed an initial prioritized • Consumer engagement on sustainability
list of topics, then conducted interviews with internal and • Advocacy and public practices
• Product accessibility and affordability
external stakeholders to share their perspectives and
validate our findings. We then refined the list based on
their input, resulting in a prioritization of ESG topics.
• Human and labor rights in the supply chain
• Responsible marketing and advertising
Finally, we referenced these findings against our existing • Employee engagement and development"
CLX-2022-Integrated-Full-Report.txt,"our IGNITE strategy to ensure
• Community impact
we’re focusing on the areas that will have the most • Operational and supply chain waste
meaningful outcomes.
For more information on our ESG materiality process • Packaging and plastic
and stakeholder engagement approach, visit • Product and ingredient safety and transparency
thecloroxcompany.com. • Product environmental impact
• Sustainable product innovation and growth
• Ethical and transparent governance and business practices
• GHG emissions
• Employee diversity, equity and inclusion"
CLX-2022-Integrated-Full-Report.txt,"mpact
we’re focusing on the areas that will have the most • Operational and supply chain waste
meaningful outcomes.
For more information on our ESG materiality process • Packaging and plastic
and stakeholder engagement approach, visit • Product and ingredient safety and transparency
thecloroxcompany.com. • Product environmental impact
• Sustainable product innovation and growth
• Ethical and transparent governance and business practices
• GHG emissions
• Employee diversity, equity and inclusion
• Employee health safety and well-being"
CLX-2022-Integrated-Full-Report.txt,"ns
• Employee diversity, equity and inclusion
• Employee health safety and well-being
• Public health
52
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG reporting
FY22 IGNITE ESG progress table: Healthy Lives
Progress
IGNITE ESG goal/target
(metrics are global and as of June 30, 2022, unless stated otherwise)
Employee well-being: Maintain our recordable incident rate of <1.0 with a comprehensive safety Achieved <1.0 RIR every year since goal was announced. In FY22, RIR"
CLX-2022-Integrated-Full-Report.txt,"AGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG reporting
FY22 IGNITE ESG progress table: Healthy Lives
Progress
IGNITE ESG goal/target
(metrics are global and as of June 30, 2022, unless stated otherwise)
Employee well-being: Maintain our recordable incident rate of <1.0 with a comprehensive safety Achieved <1.0 RIR every year since goal was announced. In FY22, RIR
management effort striving for an injury-free workplace2 was 0.56
Employee well-being: Enhance health and well-being outcomes as measured by employee Composite score of 29% exceeded CPG benchmark of 26% while we are still"
CLX-2022-Integrated-Full-Report.txt,"able incident rate of <1.0 with a comprehensive safety Achieved <1.0 RIR every year since goal was announced. In FY22, RIR
management effort striving for an injury-free workplace2 was 0.56
Employee well-being: Enhance health and well-being outcomes as measured by employee Composite score of 29% exceeded CPG benchmark of 26% while we are still
utilization of preventive health screenings exceeding UnitedHealthcare’s CPG benchmark, with working to achieve target
aspiration of 33% composite target4
Employee well-being: Enhance financial literacy of our employees to enable better planning All employee groups exceeded Vanguard 401(k) client average of 55%, while still"
CLX-2022-Integrated-Full-Report.txt,"29% exceeded CPG benchmark of 26% while we are still
utilization of preventive health screenings exceeding UnitedHealthcare’s CPG benchmark, with working to achieve target
aspiration of 33% composite target4
Employee well-being: Enhance financial literacy of our employees to enable better planning All employee groups exceeded Vanguard 401(k) client average of 55%, while still
and superior retirement readiness as measured by income replacement ratio, with a target of aspiring to achieve target:
75% (Vanguard’s stated target)3 • Overall employee average: 64%"
CLX-2022-Integrated-Full-Report.txt,"nd
for race/ethnicity in the U.S. based on annual pay equity analysis for
nonproduction teammates
Employees: Achieve our gender and race/ethnicity representation targets Commitment to establishing representation targets in FY23. See page 34
for our inclusion and diversity snapshot and visit our ESG Data Hub to view
progress over time
Employees: Achieve our inclusion index goals: parity across total company, women, people Commitment to continue annually measuring and publicly reporting inclusion
of color11, 12 scores for three employee groups:"
CLX-2022-Integrated-Full-Report.txt,"Clean World section: pages 24-29; CDP Climate
Change Report Section C6.5, C8.2; Clorox website:
Clean World — Energy
Greenhouse Gas Emissions Gross global scope 1, 2 and 3 emissions FB-AG-110a.1 Scope 1 and 2 (market-based method): 99,226
absolute metric tons carbon dioxide equivalent
(tCO2e) in CY218
Scope 3 (categories 4 and 6): 412,547 tCO2e in CY21
See Clean World section, pages 24-29; CDP Climate
Change Report Sections C6.10; Clorox website: Clean
World — Reducing greenhouse gas emissions8
Employee Engagement Employee engagement as a percentage CG-EC-330a.1 82% as of June 30, 202212"
CLX-2022-Integrated-Full-Report.txt,"tions C4-C9; Clorox website: Taking Climate Action
Scope 1, 2 and 3 GHG Scope 1: 72,784 metric tons CO2e for CY21, 75,164 for CY20 and 64,484 for CY19.
emissions8 Scope 2 (market based): 26,442 metric tons CO2e for CY21, 184,379 for CY20 and 170,370 for CY19.
Scope 3, combined categories 4 and 6: 412,547 metric tons CO2e for CY21, 370,159 for CY20 and 283,651 for CY19.
Scope 3, category 4 U.S. finished goods distribution: 411,386 metric tons CO2e for CY21, 369,042 for CY20 and 276,768 for CY19.
Scope 3, category 6 employee business travel: 1,161 metric tons CO2e for CY21, 1,117 for CY20 and 6.883 for CY19."
CLX-2022-Integrated-Full-Report.txt,"also embedded in our IGNITE strategy. We continue to focus on increasing the diversity of
our people and driving a stronger culture of inclusion. We also have made a commitment to ensuring pay equity
Principle 6: the elimination of and conducting annual reviews to ensure equitable pay among genders and racial/ethnic groups.
discrimination in respect of
employment and occupation. We respect the rights of workers to freely associate, organize and bargain collectively in accordance with applicable
laws and the customs of the countries in which they are employed, as outlined in our Policy on Employee Freedom of"
CLX-2022-Integrated-Full-Report.txt,"mmunities in need13.
We also continued to enhance the physical and mental health benefits offered to our employees.
• Expanded Brita partnership program with municipalities replacing
This included introducing a flexible time off policy and announcing enhanced family-forming
lead service lines to include over 30 communities that have been
benefits beginning in CY23, supplementing our existing paid parental leave, adoption resources
provided with cost-effective, short-term solutions while longer-
and subsidized childcare. And we set a target to measure and promote employee utilization of"
CLX-2022-Integrated-Full-Report.txt,"unities that have been
benefits beginning in CY23, supplementing our existing paid parental leave, adoption resources
provided with cost-effective, short-term solutions while longer-
and subsidized childcare. And we set a target to measure and promote employee utilization of
term infrastructure improvements are being made. These efforts
preventive screenings.✪ Recognizing the prolonged effects of the pandemic, we’ve also focused
contributed to the brand’s expanded goal to deliver clean water to
increasingly on supporting mental health through a partnership with a new global employee"
CLX-2022-Integrated-Full-Report.txt,"a target to measure and promote employee utilization of
term infrastructure improvements are being made. These efforts
preventive screenings.✪ Recognizing the prolonged effects of the pandemic, we’ve also focused
contributed to the brand’s expanded goal to deliver clean water to
increasingly on supporting mental health through a partnership with a new global employee
5 million households in need by 2030.
assistance program that enables global coverage. This supplements our ongoing benefits and
commitment to support our employees’ retirement readiness. • Supported financial well-being, achieving 64% employee income"
CLX-2022-Integrated-Full-Report.txt,"sed
contributed to the brand’s expanded goal to deliver clean water to
increasingly on supporting mental health through a partnership with a new global employee
5 million households in need by 2030.
assistance program that enables global coverage. This supplements our ongoing benefits and
commitment to support our employees’ retirement readiness. • Supported financial well-being, achieving 64% employee income
replacement ratio, including U.S. employees participating in Clorox
401(k) program.✪ 3
See Healthy Lives section, pages 20-23, and Thriving Communities section, pages 30-35; Clorox website: Consumer Health & Well-being, Employee Safety & Well-being"
CLX-2022-Integrated-Full-Report.txt,"tside income sources or personal savings outside 2019 were not recalculated.
of Clorox 401(k) (unless provided to Vanguard by participant). Vanguard’s target • Scope 2 emissions reported are calculated using the market-based method.
benchmark of 75% is defined as the percentage of preretirement income required Beginning in 2021, scope 2 market-based method emissions utilized various
to maintain one’s lifestyle at retirement. environmental attributes from renewable energy credits associated with
4 Employee utilization of preventive screenings: Metric is based on U.S. Clorox virtual power purchase agreements, RECs purchased on the open market"
CLX-2022-Integrated-Full-Report.txt,"g
• For our SBTs, we’re focusing on different scope 3 categories for our reduction
guidelines and applicable populations.
efforts than in our previous goal periods. These include category 1, purchased
goods and services, and category 11, use of sold products (direct). In prior
The CPG benchmark of 26% is based on UHC’s average across 21 consumer-
goal periods, we defined scope 3 to include category 4, U.S. finished goods
packaged goods employers. The target of 33% is based on the expectation to
distribution, and category 6, employee business travel. Categories are defined"
CLX-2022-Integrated-Full-Report.txt,"is estimated based on CY18
purchases of packaging, adjusted to account for sales growth in CY21.
68
CLOROX | 2022 INTEGRATED REPORTCEO IGNITE COMPANY GROWTH & HEALTHY CLEAN THRIVING STRONG FINANCIAL VALUE ESG ABOUT THIS
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG endnotes
9 Energy: Through our first VPPA and other market purchases of RECs, Clorox met would recommend the company as a good place to work. Inclusion index and
our 100% renewable electricity goal beginning in January 2021, four years ahead employee engagement data were measured through an FY22 engagement"
CLX-2022-Integrated-Full-Report.txt,"e measured through an FY22 engagement
of the original target date. Our first VPPA for 70 megawatts was executed in 2019 survey administered by Perceptyx between February and March 2022, and 6,527
and began producing renewable energy for Clorox in January 2021. Our second employees participated. Perceptyx’s Fortune 500 benchmark is comprised of
VPPA for 47 MW was executed in April 2022 and is expected to begin producing 98 companies and 9.1 million survey responses from Fortune magazine’s annual
renewable energy for Clorox in January 2023. Each VPPA is estimated to deliver Fortune Global 500 list. The Perceptyx CPG benchmark comprises employee"
CLX-2022-Integrated-Full-Report.txt,"ptyx’s Fortune 500 benchmark is comprised of
VPPA for 47 MW was executed in April 2022 and is expected to begin producing 98 companies and 9.1 million survey responses from Fortune magazine’s annual
renewable energy for Clorox in January 2023. Each VPPA is estimated to deliver Fortune Global 500 list. The Perceptyx CPG benchmark comprises employee
about half of Clorox’s 100% renewable electricity goal for U.S. and Canadian survey results from organizations that produce consumer goods, including
operations annually. results from 43 companies and 2 million survey responses. Employee inclusion"
CLX-2022-Integrated-Full-Report.txt,"r U.S. and Canadian survey results from organizations that produce consumer goods, including
operations annually. results from 43 companies and 2 million survey responses. Employee inclusion
• Total global energy consumption for 2018 (the baseline year for our energy and engagement is based upon employees’ self-reporting. To the extent that
efficiency goal) was recalculated to reflect the energy consumption associated employees do not respond to the survey, the data would not be included in the
with acquisition of a majority share in our Kingdom of Saudi Arabia joint ventures employee engagement calculation."
CLX-2022-Integrated-Full-Report.txt,"pending with diverse suppliers: Metric reflects spending with diverse suppliers,
self-identification basis. To the extent that the employees do not voluntarily
including minority, women, service-disabled and veteran-owned business
report, the data would not be included in the diversity calculation. Management’s
enterprises as well as gay, lesbian, bisexual and transgender business owners in the
breakdown of job categories and demographic information provided is as follows:
U.S. and Puerto Rico.
“Senior Executive” is defined as an employee at Grade 32 and above. “Manager” is"
CLX-2022-Integrated-Full-Report.txt,"self-identification basis. To the extent that the employees do not voluntarily
including minority, women, service-disabled and veteran-owned business
report, the data would not be included in the diversity calculation. Management’s
enterprises as well as gay, lesbian, bisexual and transgender business owners in the
breakdown of job categories and demographic information provided is as follows:
U.S. and Puerto Rico.
“Senior Executive” is defined as an employee at Grade 32 and above. “Manager” is
15 Employee volunteerism: Calculated on a calendar year basis. Financial equivalent"
CLX-2022-Integrated-Full-Report.txt,"ding minority, women, service-disabled and veteran-owned business
report, the data would not be included in the diversity calculation. Management’s
enterprises as well as gay, lesbian, bisexual and transgender business owners in the
breakdown of job categories and demographic information provided is as follows:
U.S. and Puerto Rico.
“Senior Executive” is defined as an employee at Grade 32 and above. “Manager” is
15 Employee volunteerism: Calculated on a calendar year basis. Financial equivalent
defined as an employee at Grade 27 to 31 for U.S. employees and Grade 26 to 31"
CLX-2022-Integrated-Full-Report.txt,"s well as gay, lesbian, bisexual and transgender business owners in the
breakdown of job categories and demographic information provided is as follows:
U.S. and Puerto Rico.
“Senior Executive” is defined as an employee at Grade 32 and above. “Manager” is
15 Employee volunteerism: Calculated on a calendar year basis. Financial equivalent
defined as an employee at Grade 27 to 31 for U.S. employees and Grade 26 to 31
of number of volunteer hours multiplied by the value of volunteer time in current
for international employees. “Other Nonproduction Employee” is defined as an"
CLX-2022-Integrated-Full-Report.txt,". and Puerto Rico.
“Senior Executive” is defined as an employee at Grade 32 and above. “Manager” is
15 Employee volunteerism: Calculated on a calendar year basis. Financial equivalent
defined as an employee at Grade 27 to 31 for U.S. employees and Grade 26 to 31
of number of volunteer hours multiplied by the value of volunteer time in current
for international employees. “Other Nonproduction Employee” is defined as an
year, determined by IndependentSector.org. Less than 5% of these hours are by
employee who works at an office location and is at Grade 26 and below for U.S."
CLX-2022-Integrated-Full-Report.txt,"employees and Grade 26 to 31
of number of volunteer hours multiplied by the value of volunteer time in current
for international employees. “Other Nonproduction Employee” is defined as an
year, determined by IndependentSector.org. Less than 5% of these hours are by
employee who works at an office location and is at Grade 26 and below for U.S.
employees outside the U.S., but all are calculated using the U.S. average rate.
employees and Grade 25 and below for International employees. “Production
Employee” is defined as an employee who works at a production location and is"
CLX-2022-Integrated-Full-Report.txt,"de the U.S., but all are calculated using the U.S. average rate.
employees and Grade 25 and below for International employees. “Production
Employee” is defined as an employee who works at a production location and is
ESG reports
at Grade 19 or below (International and U.S.). Grade levels are defined by Clorox’s
16 Global manufacturing plants where we have greater than 50% operational control.
compensation structure.
17 SASB standards used: In addition to reporting against Consumer Goods Sector:
12 Inclusion index and employee engagement: Inclusion index data is expressed"
CLX-2022-Integrated-Full-Report.txt,"g Foundation prepare for their consolidation into the IFRS
party to review the following nonfinancial key performance indicators, Foundation to support the new International Sustainability Standards Board
selected based on their priority to Clorox: global GHG emissions, renewable and drive connectivity to financial statements. We’ll continue to evaluate the
electricity consumption, energy consumption, water consumption, evolution of nonfinancial data disclosures and potential related changes in
recordable incident rate, employee engagement, diverse representation ESG reporting frameworks."
CLX-2022-Integrated-Full-Report.txt,"loyees
Ensure pay equity across gender globally and races/
Confirmed in FY22 Achieved/ongoing
ethnicities in the U.S.10
Commitment to establishing targets
Achieve gender and race/ethnicity representation target11 In progress
in FY23
Achieve inclusion index goals: Parity across total company • Women (global): 78% Achieved/ongoing
(76%12 in FY22) vs. women and people of color***, 12 • POC (U.S.): 72% On track
Set targets related to manager capabilities and
Evaluating potential targets In progress
workforce experience"
CLX-2022-Integrated-Full-Report.txt,"gram
(stock price and dividends) Radically enhanced forecasting and Reusable, recyclable or
Partnerships manufacturing capabilities to deliver the compostable materials
(industry, ESG, supply chain) right product at the right time in the Waste to landfill/energy
Consumer satisfaction • right place Wastewater
Brand loyalty Meaningful analytics and insights with Emissions
Healthy Lives, Clean World, Thriving integrated data across systems
Communities, Strong Governance and functions
(ESG pillars)
Financial Innovation Operations Workforce Business Partners Environment Internal External"
CLX-2022-Integrated-Full-Report.txt,"ur gender and race/ethnicity representation targets Commitment to establishing representation targets in FY23. See page 34
for our inclusion and diversity snapshot and visit our ESG Data Hub to view
progress over time
Employees: Achieve our inclusion index goals: parity across total company, women, people Commitment to continue annually measuring and publicly reporting inclusion
of color11, 12 scores for three employee groups:
• Women (Global): 78%
• POC (U.S.): 72%
• Total Clorox (Global): 76%
Employees: Set targets related to manager capabilities and workforce experience Evaluating potential targets"
CLX-2022-Integrated-Full-Report.txt,"and shipped. U.S. product donations
10 Pay equity: There are no statistically significant differences (at a confidence level
include donations made by the company’s U.S divisions and were determined
of 95%) in pay by gender globally and race/ethnicity in the U.S., accounting for
based on available documentation as of July 31, 2022, for the fiscal year ended
relevant factors such as grade level, location and experience.
June 30, 2022. In FY22, Clorox’s value of product donations was higher than
11 Workforce representation: Management defines people of color as any race that"
CLX-2022-Integrated-Full-Report.txt,"s believe
standards to align with the issues that we consider to be priorities to us, based
that all employees have the opportunity to be successful at Clorox regardless of
on a 2021 materiality assessment [Food & Beverage: Agricultural Products
diversity characteristics, that their manager encourages diverse perspectives,
Standards; Consumer Goods: Building Products & Furnishings Standards and
that senior leadership visibly demonstrates that having a diverse and inclusive
Industry E-commerce].
workforce is important for Clorox’s business success, that teams openly discuss"
CLX-FY23-Annual-Report_full-report.txt,"o collaborate more effectively, work smarter and make
faster, more informed decisions.
• Achieved pay equity for nonproduction teammates for A STREAMLINED
gender globally and race and ethnicity in the U.S.* OPERATING MODEL
• Offered seven mentoring programs to develop our This year we began implementation of a
talent — enrolling 973 teammates — for general and more streamlined operating model to create
specialized audiences, including a group program designed a faster, leaner, consumer-obsessed
for our women’s employee resource group members. company designed to enhance our ability"
CLX-FY23-Annual-Report_full-report.txt,"troduced “Recharge Weeks,” allowing
teammates to take vacation at the same time so everyone can truly disconnect
and return to work refreshed. To ensure production teammates can also take
the time off they need, we added additional Flex days to their time-off benefit.
We also implemented comprehensive and inclusive family-forming benefits,
supplemental health benefits for additional financial protection and a preventive
health screening campaign. We continued to support the mental well-being of
teammates and their families through our partnership with a global employee"
CLX-FY23-Annual-Report_full-report.txt,"ensure production teammates can also take
the time off they need, we added additional Flex days to their time-off benefit.
We also implemented comprehensive and inclusive family-forming benefits,
supplemental health benefits for additional financial protection and a preventive
health screening campaign. We continued to support the mental well-being of
teammates and their families through our partnership with a global employee
assistance program, including educational webinars and communications
campaigns coordinated closely with our Mental Health Champions employee"
CLX-FY23-Annual-Report_full-report.txt,"— a week filled with programming, events participated in inclusive leadership training. This
and engaging content. Teammates could delve deeper provided valuable insights and skill-building sessions to
into IDEA strategy elements, connect with each other and help cultivate trust, value differences, embrace unique
participate in authentic and safe discussions with external perspectives and address personal biases.
speakers and company leaders.
We continue to take great pride in more than a dozen
employee resource groups, or ERG, which play a pivotal role"
CLX-FY23-Annual-Report_full-report.txt,"d in purchased packaging. Our efforts have resulted in an increase from 93% in CY21
to 99% in CY22, just short of our 100% goal.
Our commitment to greater sustainability extends to enhancing biodiversity, fueling economic
growth and championing human and labor rights in our supply chains, in particular those with
vulnerable populations. Through Clorox’s continued support of Earthworm Foundation’s Aceh
Landscape Project, the organization collaborated on a landscape collective action to train and
coach four local companies — employing 893 workers — on improved labor procedures, employee"
CLX-FY23-Annual-Report_full-report.txt,"fornia’s Central Valley, home to 80% of the world’s almond
supply. The partnership has impacted over 200 growers and nearly 60,000 hives in California,
creating better conditions for bees and growers.
19 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
COMMUNITY IMPACT HIGHLIGHTS*
$0.5M 127,000
u.s. cause employee"
CLX-FY23-Annual-Report_full-report.txt,"nd nearly 60,000 hives in California,
creating better conditions for bees and growers.
19 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
COMMUNITY IMPACT HIGHLIGHTS*
$0.5M 127,000
u.s. cause employee
marketing volunteer hours
or $4M in CY22D15
$4.4M
53%
foundation &
corporate participation in
community employee giving"
CLX-FY23-Annual-Report_full-report.txt,"O IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
COMMUNITY IMPACT HIGHLIGHTS*
$0.5M 127,000
u.s. cause employee
marketing volunteer hours
or $4M in CY22D15
$4.4M
53%
foundation &
corporate participation in
community employee giving
cash grants campaign
$44.5M 4,516
u.s. corporate nonprofit
product beneficiaries
donationsD13
82%
$201.3M
employee"
CLX-FY23-Annual-Report_full-report.txt,"made with a Professional Products business supplier.
statements presented in accordance with GAAP; and may vi Represents an $82 noncash net gain from the remeasurement of the Company’s
previously held investment in its Saudi joint venture.
not be the same as similar measures provided by other
vii Reflects the restructuring and related costs, net incurred by the company for
companies due to potential differences in methods of
implementation of the streamlined operating model. These expenses were
calculation or differences in which items are incorporated primarily attributable to employee-related costs and other associated costs."
CLX-FY23-Annual-Report_full-report.txt,"erest expense; less income taxes (calculated based on the Other liabilitiesvi 804 778 819
Company’s effective tax rate excluding the identified U.S. GAAP items), and less
after tax profit attributable to noncontrolling interests, and less a capital charge Deferred income taxes 28 66 67
(calculated as average capital employed multiplied by a cost of capital rate).EP is
a key financial metric that the Company’s management uses to evaluate business Noninterest-bearing liabilities 3,000 2,699 2,938
performance and allocate resources, and is a component in determining employee"
CLX-FY23-Annual-Report_full-report.txt,"mount Shares Income Interests Equity
Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908
Net earnings — — — 710 — — — 9 719
Other comprehensive (loss) income — — — — — — 94 — 94
Dividends to Clorox stockholders
— — — (564) — — — — (564)
($4.49 per share declared)
Dividends to noncontrolling interests — — — — — — — (26) (26)
Business combinations including
— — — — — — — 198 198
purchase accounting adjustments
Stock-based compensation — — 50 — — — — — 50
Other employee stock plan activities — — (1) (37) 156 1,340 — — 118"
CLX-FY23-Annual-Report_full-report.txt,"sury stock purchased — — — — (905) (4,758) — — (905)
Treasury stock retirement (28) (28,000) — (2,640) 2,668 28,000 — — —
Balance as of June 30, 2021 $ 131 130,741 $ 1,186 $ 1,036 $ (1,396) (7,961) $ (546) $ 181 $ 592
Net earnings — — — 462 — — — 9 471
Other comprehensive (loss) income — — — — — — 67 — 67
Dividends to Clorox stockholders
— — — (430) — — — — (430)
($3.48 per share declared)
Dividends to noncontrolling interests — — — — — — — (17) (17)
Stock-based compensation — — 52 — — — — — 52
Other employee stock plan activities — — (36) (20) 75 524 — — 19"
CLX-FY23-Annual-Report_full-report.txt,"ther employee stock plan activities — — (36) (20) 75 524 — — 19
Treasury stock purchased — — — — (25) (152) — — (25)
Balance as of June 30, 2022 $ 131 130,741 $ 1,202 $ 1,048 $ (1,346) (7,589) $ (479) $ 173 $ 729
Net earnings — — — 149 — — — 12 161
Other comprehensive (loss) income — — — — — — (14) — (14)
Dividends to Clorox stockholders
— — — (588) — — — — (588)
($4.72 per share declared)
Dividends to noncontrolling interests — — — — — — — (17) (17)
Stock-based compensation — — 73 — — — — — 73
Other employee stock plan activities — — (30) (26) 100 668 — — 44"
CLX-FY23-Annual-Report_full-report.txt,"Performance Governance Statements Creation Reporting About
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
YEARS ENDED JUNE 30
2023 2022 2021
DOLLARS IN MILLIONS
Financing activities:
Notes and loans payable, net (188) 237 —
Long-term debt repayments — (1,405) —
Long-term debt borrowings, net of issuance costs paid — 1,085 —
Treasury stock purchased — (25) (905)
Cash dividends paid to Clorox stockholders (583) (571) (558)
Cash dividends paid to noncontrolling interests (15) (15) (31)
Issuance of common stock for employee stock plans and other 33 5 103"
CLX-FY23-Annual-Report_full-report.txt,"orporate Standard
Change in Scope 2 LBM GHG emissions -6% WRI/WBCSD GHG Protocol Corporate Standard,
from 2020 baseline year8 GHG Protocol Scope 2 Guidance
Change in Scope 2 MBM GHG emissions -86% GHG Protocol Scope 3 Technical Guidance
from 2020 baseline year8
Change in combined Scope 1 and -65%
Scope 2 MBM GHG emissions from
2020 baseline year8
Scope 3 (Category 4 and Category 6) tCOe 286,073
2
GHG emissions4, 9, 10 Scope 3 includes Category 4, finished
goods transportation, in the U.S. only,
Change in Scope 3 (Category 4 Percent (%) -23% and Category 6, global employee"
CLX-FY23-Annual-Report_full-report.txt,"d Canada.
The reporting boundary includes all
facilities and offices in the U.S. and
Percentage of electricity from Percent (%) 100% Total renewable electricity procured from
renewable energy2, 15 renewable energy sources in the U.S. and Canada under the operational control
of Clorox.
Canada divided by the total electricity usage
in the U.S. and Canada.
Schedule of Selected Quantitative Performance Indicators for the year ended June 30, 2023
INDICATOR NAME UNIT VALUE CRITERIA REPORTING BOUNDARY
Employee Engagement Score16 Percent (%) 82% Total percentage of actively engaged Employee engagement levels include"
CLX-FY23-Annual-Report_full-report.txt,"x’s renewable electricity consumption data for the U.S. and Canada includes various
corporate team. For facilities that do not receive invoices or meter readings necessary contractual instruments, including RECs associated with VPPAs and RECs purchased
to obtain actual energy consumption, Clorox utilizes an estimation methodology that on the open market. RECs from the U.S. and Canada have been or are being certified
considers historical and known data. through the Green-e certification program.
3 Scope 1 emission sources include direct energy used by Clorox in its operations, 16 Employee engagement is measured by four questions within a survey that was"
CLX-FY23-Annual-Report_full-report.txt,"VOC) loss and direct wood pyrolysis. The last two sources 2023, through March 17th, 2023, and 7,053 of about 8,700 Company employees responded
relate mainly to Clorox’s Kingsford business unit. Process emissions outside of the to the survey. Responses were scored on a scale of 1 to 5 as follows: 5: Strongly agree, 4:
Kingsford business unit were identified as being immaterial as a source of emissions Agree, 3: Neither agree or disagree, 2: Disagree, or 1: Strongly disagree. A response of 5 or 4
within Clorox’s operational boundary. is considered a favorable response representing active employee engagement. Employee"
CLX-FY23-Annual-Report_full-report.txt,"llows: 5: Strongly agree, 4:
Kingsford business unit were identified as being immaterial as a source of emissions Agree, 3: Neither agree or disagree, 2: Disagree, or 1: Strongly disagree. A response of 5 or 4
within Clorox’s operational boundary. is considered a favorable response representing active employee engagement. Employee
4 Scope 1 emissions were calculated using 2023 EPA Center for Corporate Climate engagement is based upon employees self-reporting. To the extent that the employees do
Leadership Emission Factors for Greenhouse Gas Inventories (Published in 2023) and not respond to the survey, the data would not be included in the employee engagement"
CLX-FY23-Annual-Report_full-report.txt,"emissions were calculated using 2023 EPA Center for Corporate Climate engagement is based upon employees self-reporting. To the extent that the employees do
Leadership Emission Factors for Greenhouse Gas Inventories (Published in 2023) and not respond to the survey, the data would not be included in the employee engagement
Title 40 Part 98 Table C-2: Wood & Wood Residuals emission factors. Scope 2 emissions calculation. Clorox does not expect to receive survey responses from 100% of employees,
were calculated using 2020 International Energy Agency (IEA) emission factors as it is not mandatory for all employees to complete the survey. As such, the employee"
CLX-FY23-Annual-Report_full-report.txt,"ated using 2020 International Energy Agency (IEA) emission factors as it is not mandatory for all employees to complete the survey. As such, the employee
(published in 2022), 2021 eGRID emission factors (published in January 2023), 2020 engagement score is calculated only from responses to the Company’s annual survey.
emission factors from 2022 Canada National Inventory Report (NIR) Annex 23 for Ontario. 17 Other criteria included in TC-IM-330a.2 (i.e., distinct breakouts of the percent of each
Scope 3, Category 4 and Category 6 emissions were calculated using 2023 EPA Center employee engagement levels including not engaged, passive and actively disengaged.)"
CLX-FY23-Annual-Report_full-report.txt,"hing • Diverse health, well-being and Meaningful analytics and insights
• Put people at the center household essentials portfolio with integrated data across systems
• Play to win • Retail and professional and functions
customer base
Functions: Inclusive culture
• Best-in-class delivery of end-to-
• Finance
end supply chain solutions Diverse representation
• Enterprise Data and Tech
• U.S. focus with presence in key
• Legal, Government Affairs and Engaged employees
global markets
Internal Audit
• Enterprisewide strategy integrating Seamless, tech-enabled employee"
CLX-FY23-Annual-Report_full-report.txt,"rategy integrating Seamless, tech-enabled employee
• Marketing
ESG priorities experience
• People (Human Resources and
• Strong execution
Corporate Affairs) Supplier adherence to Business Partner
• ESG team driving sustainability
• Product Supply Code of Conduct
• Research & Development
Responsible sourcing program
Reusable, recyclable or compostable
4 OUTCOMES*** materials
Waste to landfill/energy
Profit and cash flows Simpler, faster, bolder Consumer satisfaction
Wastewater
and more inclusive
Employee professional Brand loyalty"
CLX-FY23-Annual-Report_full-report.txt,"and stakeholder engagement approach, visit
a full materiality assessment in 2015. During these
thecloroxcompany.com.
assessments, we considered inputs such as corporate
strategic choices, ESG reporting frameworks, ESG raters
Clorox’s ESG issue prioritization
HIGHEST PRIORITY
• Packaging and plastic
• Product and ingredient safety and transparency
• Product environmental impact
• Sustainable product innovation and growth
• Ethical and transparent governance and business practices
• GHG emissions
• Employee inclusion, diversity, equity and allyship"
CLX-FY23-Annual-Report_full-report.txt,"y assessment in 2015. During these
thecloroxcompany.com.
assessments, we considered inputs such as corporate
strategic choices, ESG reporting frameworks, ESG raters
Clorox’s ESG issue prioritization
HIGHEST PRIORITY
• Packaging and plastic
• Product and ingredient safety and transparency
• Product environmental impact
• Sustainable product innovation and growth
• Ethical and transparent governance and business practices
• GHG emissions
• Employee inclusion, diversity, equity and allyship
TIER 1
• Employee health, safety and well-being"
CLX-FY23-Annual-Report_full-report.txt,"Clorox’s ESG issue prioritization
HIGHEST PRIORITY
• Packaging and plastic
• Product and ingredient safety and transparency
• Product environmental impact
• Sustainable product innovation and growth
• Ethical and transparent governance and business practices
• GHG emissions
• Employee inclusion, diversity, equity and allyship
TIER 1
• Employee health, safety and well-being
• Public health
HIGHER PRIORITY
• Human and labor rights in the supply chain
TIER 2
• Responsible marketing and advertising
• Employee engagement and development"
CLX-FY23-Annual-Report_full-report.txt,"tements Creation Reporting About
ESG
PROGRESS KEY
Achieved: Met IGNITE goal
REPORTING
Achieved/ongoing: Met IGNITE goal this fiscal year; commitment to
continue meeting same goal annually through 2030
On track: Meeting internal milestones to achieve goal
In progress: Taking action to achieve goal or set targets; however,
internal milestones have not yet been met
HEALTHY LIVES
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics are global and as of June 30, 2023, STATUS PROGRESS
unless stated otherwise)
Employee well-being: Maintain our recordable incident"
CLX-FY23-Annual-Report_full-report.txt,"e goal
In progress: Taking action to achieve goal or set targets; however,
internal milestones have not yet been met
HEALTHY LIVES
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics are global and as of June 30, 2023, STATUS PROGRESS
unless stated otherwise)
Employee well-being: Maintain our recordable incident
Achieved <1.0 RIR every year since goal was
rate of <1.0 with a comprehensive safety management Achieved/ongoing
announced. In FY23, RIR was 0.55.
effort striving for an injury-free workplaceD1
Employee well-being: Enhance health and well-being Composite score of 29% exceeding"
CLX-FY23-Annual-Report_full-report.txt,"milestones have not yet been met
HEALTHY LIVES
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics are global and as of June 30, 2023, STATUS PROGRESS
unless stated otherwise)
Employee well-being: Maintain our recordable incident
Achieved <1.0 RIR every year since goal was
rate of <1.0 with a comprehensive safety management Achieved/ongoing
announced. In FY23, RIR was 0.55.
effort striving for an injury-free workplaceD1
Employee well-being: Enhance health and well-being Composite score of 29% exceeding
outcomes as measured by employee utilization of UnitedHealthcare’s CPG benchmark of 26%"
CLX-FY23-Annual-Report_full-report.txt,"y year since goal was
rate of <1.0 with a comprehensive safety management Achieved/ongoing
announced. In FY23, RIR was 0.55.
effort striving for an injury-free workplaceD1
Employee well-being: Enhance health and well-being Composite score of 29% exceeding
outcomes as measured by employee utilization of UnitedHealthcare’s CPG benchmark of 26%
On track
preventive health screenings, with an aspirational while we are still working to achieve target,
composite target of 33%D2 as of December 31, 2022
Employee well-being: Enhance financial literacy All employee groups met or exceeded Vanguard"
CLX-FY23-Annual-Report_full-report.txt,"enchmark of 26%
On track
preventive health screenings, with an aspirational while we are still working to achieve target,
composite target of 33%D2 as of December 31, 2022
Employee well-being: Enhance financial literacy All employee groups met or exceeded Vanguard
of our employees to enable better planning and 401(k) client average of 56%, while still aspiring to In progress
superior retirement readiness as measured by income achieve target:
replacement ratio, with an aspirational target of 75%
(Vanguard’s stated target)D3 • Overall employee average: 63%"
CLX-FY23-Annual-Report_full-report.txt,"ethnicity in the U.S. based on our annual pay
Achieved/ongoing
equity analysis for nonproduction employees after
making salary adjustments
Employees: Achieve our gender and race/ethnicity Launched Inclusion, Diversity, Equity and Allyship
representation targets strategy in FY23. See page 21 for our representation
In progress
snapshot and visit our ESG Data Hub to view
progress over time.
Employees: Achieve our inclusion index goals: parity Commitment to continue annually measuring Women:
Women:
across total company (76% in FY23) vs. women and total company, women, people of color employee"
CLX-FY23-Annual-Report_full-report.txt,"er market
purchases of renewable energy
credits supported the remaining half
of this goal in CY22. ✪ D9
See CDP Climate Change Report
Section C6.5, C8.2; Clorox website:
Clean World — Energy
Greenhouse Gas Emissions Gross global scope 1, 2 and 3 emissions FB-AG-110a.1 Scope 1 and 2 (market-based
method): 91,887 absolute metric tons
carbon dioxide equivalent (tCO2e)
in CY22D8
Scope 3: 3,080,818 absolute metric
tons CO2e in CY22
Scope 3: (combined categories
4 — U.S. finished goods distribution —
and 6 — employee business travel):"
CLX-FY23-Annual-Report_full-report.txt,"y
Greenhouse Gas Emissions Gross global scope 1, 2 and 3 emissions FB-AG-110a.1 Scope 1 and 2 (market-based
method): 91,887 absolute metric tons
carbon dioxide equivalent (tCO2e)
in CY22D8
Scope 3: 3,080,818 absolute metric
tons CO2e in CY22
Scope 3: (combined categories
4 — U.S. finished goods distribution —
and 6 — employee business travel):
286,073 absolute metric tons CO2e
in CY22D8
See CDP Climate Change Report
Sections C6.10; Clorox website: Clean
World — Reducing greenhouse gas
emissions
Employee Engagement Employee engagement as a TC-IM-330a.2 82% as of June 30, 2023D12"
CLX-FY23-Annual-Report_full-report.txt,"rotocol: A Corporate
Accounting and Reporting Standard (Revised Edition).
See CDP Climate Change Report sections C4-C9; Clorox website: Taking Climate Action
Scope 1, 2 and 3 • Scope 1: 65,205 metric tons of CO2e for CY22, 72,784 for CY21 and 75,164 for CY20.
GHG emissionsD8
• Scope 2 (market based): 26,682 metric tons of CO2e for CY22, 26,442 for CY21 and 184,379 for
CY20.
• Scope 3: 3,080,818 metric tons CO2e for CY22, not calculated for CY21 and 3,671,141 for CY20
Assured scope 3 categories:
• Scope 3, combined categories 4 — U.S. finished goods distribution and 6 — employee business"
CLX-FY23-Annual-Report_full-report.txt,"nsumers’) well-being as measured by the number of our
cost-effective, short-term solutions while longer-term
wellness-related product categories in U.S. homes, including
infrastructure improvements are being made. These efforts
natural personal care; vitamins, minerals and supplements;
✪ contributed to the brand’s goal to deliver clean water to
water filtration and hydration; and cleaning products. We
5 million households in need by 2030.
collaborate with organizations to support public health,
infection prevention and health through safe drinking water. • Achieved composite score of 29% for employee utilization"
CLX-FY23-Annual-Report_full-report.txt,"rough our foundations and brands, we support those of preventive health screenings, exceeding CPG benchmark
impacted by pandemics, hurricanes, earthquakes and other of 26%.
✪D2
natural disasters.
We also continue to enhance the physical and mental health
benefits offered to our employees. In FY23, we transitioned to
a flexible time-off policy and implemented inclusive family-
forming benefits, supplemental health benefits for additional
financial protection, and executed a campaign to promote
✪
employee utilization of preventive screenings. We continued"
CLX-FY23-Annual-Report_full-report.txt,"pandemics, hurricanes, earthquakes and other of 26%.
✪D2
natural disasters.
We also continue to enhance the physical and mental health
benefits offered to our employees. In FY23, we transitioned to
a flexible time-off policy and implemented inclusive family-
forming benefits, supplemental health benefits for additional
financial protection, and executed a campaign to promote
✪
employee utilization of preventive screenings. We continued
to support the mental well-being of our employees and their
families through our global employee assistance program."
CLX-FY23-Annual-Report_full-report.txt,"e the physical and mental health
benefits offered to our employees. In FY23, we transitioned to
a flexible time-off policy and implemented inclusive family-
forming benefits, supplemental health benefits for additional
financial protection, and executed a campaign to promote
✪
employee utilization of preventive screenings. We continued
to support the mental well-being of our employees and their
families through our global employee assistance program.
This supplements our other ongoing benefits.
See FY23 Integrated Annual Report; Clorox website: Consumer Health & Well-being, Employee Safety & Well-being"
CLX-FY23-Annual-Report_full-report.txt,"sparency by posting full pay ranges for all U.S.
our new chief diversity and social impact officer to Clorox job postings.
and evolved our strategy from inclusion and diversity, or
• Offered seven mentoring programs to develop our
I&D, to IDEA — inclusion, diversity, equity and allyship. We also
talent — enrolling 973 employees — for general and
continued to advance our internal representation goals and
more specialized audiences, including a group program
public pay equity and inclusion goals.
designed for our women-focused employee resource"
CLX-FY23-Annual-Report_full-report.txt,"en Clorox’s CFP 2020 baseline survey score • For our science based targets, we’re focusing on different
compared to a perfect CFP survey score. Scores are scope 3 categories for our reduction efforts than in our
calculated on a calendar year basis. previous goal periods. These include category 1, purchased
goods and services, and category 11, use of sold products
CLEAN WORLD (direct). In prior goal periods, we defined scope 3 to include
category 4, U.S. finished goods distribution, and category
6, employee business travel. Categories are defined by the"
CLX-FY23-Annual-Report_full-report.txt,"Asia CY22 data is estimated based on CY18 purchases of
packaging, adjusted to account for sales growth in CY22.
55 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
ESG ENDNOTES
D9 Energy: Through our first VPPA and other market purchases the company as a good place to work. Inclusion index and
of RECs, Clorox met our 100% renewable electricity goal employee engagement data were measured through"
CLX-FY23-Annual-Report_full-report.txt,"ginal an FY23 engagement survey administered by Perceptyx
target date. Our first VPPA for 70 megawatts was executed between February and March 2023, and 7,053 employees
in 2019 and began producing renewable energy for Clorox in participated. Perceptyx’s Fortune 500 benchmark is
January 2021. Our second VPPA for 47 MW was executed in comprised of 102 companies and 8.1 million survey
April 2022 and began producing renewable energy for Clorox responses from Fortune magazine’s annual Fortune Global
in January 2023, subsequent to the 2022 data reported. 500 list. The Perceptyx CPG benchmark comprises employee"
CLX-FY23-Annual-Report_full-report.txt,"02 companies and 8.1 million survey
April 2022 and began producing renewable energy for Clorox responses from Fortune magazine’s annual Fortune Global
in January 2023, subsequent to the 2022 data reported. 500 list. The Perceptyx CPG benchmark comprises employee
Each VPPA is estimated to deliver about half of Clorox’s 100% survey results from organizations that produce consumer
renewable electricity goal for U.S. and Canadian operations goods, including results from 78 companies and 1.7 million
annually beginning in 2023. survey responses. Employee inclusion and engagement is"
CLX-FY23-Annual-Report_full-report.txt,"Perceptyx CPG benchmark comprises employee
Each VPPA is estimated to deliver about half of Clorox’s 100% survey results from organizations that produce consumer
renewable electricity goal for U.S. and Canadian operations goods, including results from 78 companies and 1.7 million
annually beginning in 2023. survey responses. Employee inclusion and engagement is
based upon employees’ self-reporting. To the extent that
THRIVING COMMUNITIES
employees do not respond to the survey, the data would not
be included in the employee engagement calculation."
CLX-FY23-Annual-Report_full-report.txt,"ion.
D14 Spending with diverse suppliers: Metric reflects spending
During FY23, we updated our internal grade rank structure with diverse suppliers, including minority, women, service-
from previous years, resulting in additional grade levels to disabled and veteran-owned business enterprises as well as
be considered a “Manager.” Management’s breakdown of gay, lesbian, bisexual and transgender business owners in
job categories and demographic information provided is as the U.S. and Puerto Rico.
follows: “Senior Executive” is defined as an employee at Grade"
CLX-FY23-Annual-Report_full-report.txt,"ing
During FY23, we updated our internal grade rank structure with diverse suppliers, including minority, women, service-
from previous years, resulting in additional grade levels to disabled and veteran-owned business enterprises as well as
be considered a “Manager.” Management’s breakdown of gay, lesbian, bisexual and transgender business owners in
job categories and demographic information provided is as the U.S. and Puerto Rico.
follows: “Senior Executive” is defined as an employee at Grade
D15 Employee volunteerism: Calculated on a calendar year"
CLX-FY23-Annual-Report_full-report.txt,"vice-
from previous years, resulting in additional grade levels to disabled and veteran-owned business enterprises as well as
be considered a “Manager.” Management’s breakdown of gay, lesbian, bisexual and transgender business owners in
job categories and demographic information provided is as the U.S. and Puerto Rico.
follows: “Senior Executive” is defined as an employee at Grade
D15 Employee volunteerism: Calculated on a calendar year
32 and above (unchanged from previous years.) “Manager” is
basis and based on annual employee survey conducted in"
CLX-FY23-Annual-Report_full-report.txt,"e levels to disabled and veteran-owned business enterprises as well as
be considered a “Manager.” Management’s breakdown of gay, lesbian, bisexual and transgender business owners in
job categories and demographic information provided is as the U.S. and Puerto Rico.
follows: “Senior Executive” is defined as an employee at Grade
D15 Employee volunteerism: Calculated on a calendar year
32 and above (unchanged from previous years.) “Manager” is
basis and based on annual employee survey conducted in
defined as an employee at grade 26 to 31 for U.S. employees"
CLX-FY23-Annual-Report_full-report.txt,"Calculated on a calendar year
32 and above (unchanged from previous years.) “Manager” is
basis and based on annual employee survey conducted in
defined as an employee at grade 26 to 31 for U.S. employees
January 2023, value is the financial equivalent of number
(FY22 and prior: 27-31) and grade 25 to 31 for international
of volunteer hours multiplied by the value of volunteer time
employees (FY22 and prior: 26-31). “Other Nonproduction
in current year, determined by IndependentSector.org. Less
Employee” is defined as an employee who works at an office"
CLX-FY23-Annual-Report_full-report.txt,"rs multiplied by the value of volunteer time
employees (FY22 and prior: 26-31). “Other Nonproduction
in current year, determined by IndependentSector.org. Less
Employee” is defined as an employee who works at an office
than 5% of these hours are by employees outside the U.S.,
location and is at grade 25 and below for U.S. employees
but all are calculated using the U.S. average rate.
(FY22 and prior: 26 and below) and grade 24 and below for
International employees (FY22 and prior: 25 and below.)
“Production Employee” is defined as an employee who"
CLX-FY23-Annual-Report_full-report.txt,"ployees
but all are calculated using the U.S. average rate.
(FY22 and prior: 26 and below) and grade 24 and below for
International employees (FY22 and prior: 25 and below.)
“Production Employee” is defined as an employee who
ESG REPORTS
works at a production location and is at grade 19 or below
(International and U.S.; unchanged from previous years).
Grade levels are defined by Clorox’s compensation structure. D16 G lobal manufacturing plants where we have greater than
50% operational control.
D12 Inclusion index and employee engagement: Inclusion"
CLX-FY23-Annual-Report_full-report.txt,"rty to review above for this fiscal year, we continue to monitor ongoing
the following nonfinancial key performance indicators, changes in the ESG reporting industry as SASB, the
selected based on their priority to Clorox: global GHG International Integrated Reporting Council and the Value
emissions, renewable electricity consumption, energy Reporting Foundation have now consolidated into the
consumption, water consumption, recordable incident IFRS Foundation — which will also assume monitoring
rate, employee engagement, diverse representation responsibilities of TCFD — to support the new International"
CLX-FY23-Annual-Report_full-report.txt,"r the operational control
of Clorox with 10 or more employees
including remote workers.
38 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
Schedule of Selected Quantitative Performance Indicators for the year ended June 30, 2023 (continued)
INDICATOR NAME UNIT VALUE CRITERIA REPORTING BOUNDARY
Workforce Female managers, 49% Global female managers, divided by the total The reporting boundary for female"
CLX-FY23-Annual-Report_full-report.txt,"cing program
Reusable, recyclable or compostable
4 OUTCOMES*** materials
Waste to landfill/energy
Profit and cash flows Simpler, faster, bolder Consumer satisfaction
Wastewater
and more inclusive
Employee professional Brand loyalty
way of working Emissions
growth and
Healthy Lives,
engagement Shareholder value
Clean World,
(stock price and
Brand equity dividends) Thriving Communities,
Innovation Strong Governance
Partnerships (industry, (ESG pillars)
Employer brand ESG, supply chain)
reputation
Financial Innovation Operations Workforce Business Partners Environment Internal External"
CLX-FY23-Annual-Report_full-report.txt,"ss
snapshot and visit our ESG Data Hub to view
progress over time.
Employees: Achieve our inclusion index goals: parity Commitment to continue annually measuring Women:
Women:
across total company (76% in FY23) vs. women and total company, women, people of color employee
people of colorD12 groups: Achieved/ongoing
• Women (Global): 79% POC:
POC:
• POC (U.S.): 75%
On track
• Total Clorox (Global): 76%
Employees: Set targets related to manager capabilities
Evaluating potential targets In progress
and workforce experience"
CLX-FY23-Annual-Report_full-report.txt,"Standard, to provide greater transparency to
believe that all employees have the opportunity to be our stakeholders we have included select metrics from
successful at Clorox regardless of diversity characteristics, other SASB industry standards to align with the issues
that their manager encourages diverse perspectives, that that we consider to be priorities to us, based on a 2021
senior leadership visibly demonstrates that having a diverse materiality assessment [Food & Beverage: Agricultural
and inclusive workforce is important for Clorox’s business Products Standards; Consumer Goods: Building Products &"
cof_environmental-social-governance-report-2021.txt,"al Service Blue Earth
Category 4 - Upstream Transportation and Distribution ⁽¹⁾ 58,432 34,925 53,137
Carbon Accounting Platform.
Category 5 - Waste Generated in Operations ⁽²⁾ 1,846 2,588 2,091 2 Waste Generated in Operations emissions include landfill,
recycling, secure shred and compost emissions for U.S. locations
Category 6 - Business Travel 46,806 11,538 4,012 where Capital One is responsible for contracting waste removal.
International locations and leased locations with landlord-provided
Category 7 - Employee Commuting ⁽³⁾ 111,070 19,851 3,292 waste removal are not calculated at this time."
cof_environmental-social-governance-report-2021.txt,"this capacity, we multiple in-person and virtual options to
Our Total Rewards (Benefits and Pay) package foster care or surrogacy. Associates who give
increased our emotional well-being awareness encourage associates to care for their mental
cares for our associates’ well-being so that birth receive additional time off for healing for a
and support by providing virtual webinars health through our onsite health centers,
they can feel healthy all around — physically, total of 18 weeks paid leave.
and discussions on a variety of topical issues. employee assistance program and medical plans."
cof_environmental-social-governance-report-2021.txt,"₂e 58,432
below. This verification opinion declaration applies to
Boundaries of the reporting company GHG
• Scope 3 Emissions – Category 5 Waste Generated in Operations - USA Operations
the related information included within the scope of 1,846
emissions covered by the verification: (USA Landfilled Waste and Recycled Materials ) mt CO₂e
work described below.
• Scope 3 Emissions – Category 6 Business Travel – mt CO₂e 46,806
• Operational Control
The determination of the GHG emissions is the sole
• Scope 3 Emissions – Category 7 Employee Commuting – mtCO₂e 111,070"
cof_environmental-social-governance-report-2021.txt,"₂e 34,925
below. This verification opinion declaration applies to
Boundaries of the reporting company GHG
• Scope 3 Emissions – Category 5 Waste Generated in Operations - USA Operations
the related information included within the scope of 2,588
emissions covered by the verification: (USA Landfilled Waste and Recycled Materials ) mt CO₂e
work described below.
• Scope 3 Emissions – Category 6 Business Travel – mt CO₂e 11,538
• Operational Control
The determination of the GHG emissions is the sole
• Scope 3 Emissions – Category 7 Employee Commuting – mtCO₂e 19,851"
cof_environmental-social-governance-report-2021.txt,"O₂e 53,137
below. This verification opinion declaration applies to
Boundaries of the reporting company GHG
• Scope 3 Emissions – Category 5 Waste Generated in Operations - USA Operations
the related information included within the scope of 2,091
emissions covered by the verification: (USA Landfilled Waste and Recycled Materials ) mt CO₂e
work described below.
• Scope 3 Emissions – Category 6 Business Travel – mt CO₂e 4,012
• Operational Control
The determination of the GHG emissions is the sole
• Scope 3 Emissions – Category 7 Employee Commuting – mtCO₂e 3,292"
cof_environmental-social-governance-report-2021.txt,"ey with Capital One. We have helped customers establish background or identity. Our associate-led Business Resource community-minded companies in America.
a credit score, improve their score over time, understand and Groups provide forums for connection, engagement, cultural
In this report, I hope you get a richer understanding of — and
manage credit lines and payments and unleash the many celebration, professional development and community
appreciation for — the many ways Capital One is making
benefits that accompany an established credit history and a service. About 60 percent of our global workforce belongs to"
cof_environmental-social-governance-report-2021.txt,"has more than 6,000 active clients. While
harness technology to help people succeed. charge. Our Café Ambassadors give back through individual volunteerism, we’ve scaled the business nationally, our team remains embedded in local
charitable giving and local community partnerships. communities. Through New Markets Tax Credits, not-for-profit lending and
mission-driven agency financing in commercial real estate, we’re investing
Our national auto lending business provides consumer-focused digital
in workforce development, community services, affordable housing, food"
cof_environmental-social-governance-report-2021.txt,"ip
and communities. for six months with corporate organizations
like Capital One. Since Capital One began
Through a series of summits, skill-building
supporting Year Up in 2013, Capital One has
internship opportunities and cohort-based
hired over 80 Year Up interns into full-time
programming, we engage early and through non-
roles on teams across our enterprise.
traditional avenues to increase the likelihood that
candidates will find fulfilling careers. Learn more about our efforts to develop a
diverse workforce."
cof_environmental-social-governance-report-2021.txt,"cross our enterprise.
traditional avenues to increase the likelihood that
candidates will find fulfilling careers. Learn more about our efforts to develop a
diverse workforce.
Together we are building a better, stronger Capital One for everyone —
a place where people of all backgrounds and experiences can thrive.”
THERESITA RICHARD
Managing Vice President for Diversity,
Inclusion and Belonging
34 | Social | Workplace Diversity, Inclusion & BelongingABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Workforce Representation"
cof_environmental-social-governance-report-2021.txt,"he likelihood that
candidates will find fulfilling careers. Learn more about our efforts to develop a
diverse workforce.
Together we are building a better, stronger Capital One for everyone —
a place where people of all backgrounds and experiences can thrive.”
THERESITA RICHARD
Managing Vice President for Diversity,
Inclusion and Belonging
34 | Social | Workplace Diversity, Inclusion & BelongingABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Workforce Representation
2021 2020 2021 2020 2021 2020
Workforce by the numbers"
cof_environmental-social-governance-report-2021.txt,"and
MILITARY SERVICE (U.S.)
3.5% 5.3%
supported. Associates have voluntarily shared
LGBTQ+ (3.7 percent), military service (3.5 percent)
All Associates
LGBTQ+ and disability (10.9 percent) identities.
ASSOCIATES* (U.S.)
3.7%
* Following a successful self-identification campaign, associates voluntarily shared
LGBTQ+ identity enabling us to report this dimension of diversity for the first time.
35 | Social | Workplace Diversity, Inclusion & BelongingABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
U.S. Workforce by Job Category"
cof_environmental-social-governance-report-2021.txt,"16 16 19 0 0 6 6 0 0 1 1
Men 43 38 251 232 30 28 2 1 17 15 2 2 6 3
4-Sales Workers (3) 567 513
Women 25 23 163 137 14 16 0 0 10 13 0 0 4 5
Men 784 890 1,860 2,132 1,233 1,444 7 9 221 266 19 25 168 204
3-Administrative
15,801 17,471
Support Workers (4)
Women 1,721 1.887 4,075 4,410 4,617 4,972 36 39 536 575 68 82 456 536
Men 1,809 1,828 11,471 11,489 2,361 2,512 27 30 5,133 4,862 46 48 566 563
Grand Total 44,476 44,652
Women 2,408 2,502 10,577 10,608 6,014 6,226 52 55 3,167 3,024 94 105 751 800
NOTE: 2021 Workforce data are filed in Q2 2022 with the U.S. Equal Employment Opportunity Commission (EEOC) in accordance with current 1 Senior-Level Managers/Leadership are VP+ associates. 3 Professionals and Sales Workers are generally exempt"
cof_environmental-social-governance-report-2021.txt,"factors
and enrich our culture of belonging and deepen our
understanding of diverse cultures, people and experiences.
Each BRG is sponsored by a senior leader at Capital One
and supports Capital One’s commitment to attract, develop
and retain talent from all backgrounds and experiences.
There are currently more than 100 local BRG chapters
across our footprint, with 60 percent of associates (30,000+
associates) globally belonging to at least one BRG.
30,000+ 60% of Capital One 7 enterprise BRGs
associates in BRGs workforce are in BRGs and 4 Tech BRGs"
cof_environmental-social-governance-report-2021.txt,"life.
change. That begins with access to the a variety of ways including growth
aspect of our lives. It is more critical than ever
financial system and equitable opportunities • Racial Equity: Investing in diverse consulting and skills-based pro bono
for the private sector, the nonprofit community
to generate income. The Impact Initiative communities and businesses and support.
and the government to come together to build
focuses on: supporting organizations that expand
communities that thrive.
• Workforce Development: Helping"
cof_environmental-social-governance-report-2021.txt,"ntial READ THE FULL STORY
as technologists by helping them cultivate a greater interest in
computer science during a critical period in their development.
Since its launch in 2014, Capital One technologists have worked
Empowering Girls to See Themselves in
directly with more than 22,000 students to build a mentoring
relationship and inspire confidence as they explore technology Underrepresented Fields
through design thinking and coding.
In 2021, Capital One supported seven different technology,
Our programming strives to actively make computer science workforce or pro bono programs with Girls For A Change — a"
cof_environmental-social-governance-report-2021.txt,"ants have the opportunity to access
The Fortune Society’s programs that
In addition to providing employment,
support returning citizens.
education and health services, The Fortune
Society provides low-income threshold Additionally, between 2009 and 2018,
access to supportive emergency, transitional Capital One provided a total of $415,000
and permanent housing for justice involved in philanthropic support to The Fortune
people at an expanding network of Society to support peer-to-peer programs,
residences throughout New York City. workforce training, entrepreneurial"
cof_environmental-social-governance-report-2021.txt,"Y
financing from organizations including
Capital One. At the time, Capital One
provided $22 million in debt financing and
made a $17 million low-income housing tax
credit equity investment for the construction
of Castle Gardens.
63 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Small Business
Small businesses are a critical component of local
economies across the country, driving job growth and
innovation and employing nearly half of the nation’s
private workforce."
cof_environmental-social-governance-report-2021.txt,"six-
week course, participants learn to listen to
To adjust to disruptions brought on during the
their clients and respond appropriately — with
COVID-19 pandemic, she joined Capital One’s
industry-specific terms and phrases — to create
Supplier Diversity Mentorship Program, a
cultural understanding.
resource that provides tools, resources and
counsel for small business owners. READ THE FULL STORY
67 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Workforce Development"
cof_environmental-social-governance-report-2021.txt,"ticipants learn to listen to
To adjust to disruptions brought on during the
their clients and respond appropriately — with
COVID-19 pandemic, she joined Capital One’s
industry-specific terms and phrases — to create
Supplier Diversity Mentorship Program, a
cultural understanding.
resource that provides tools, resources and
counsel for small business owners. READ THE FULL STORY
67 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Workforce Development
Workforce development is a key driver for removing barriers"
cof_environmental-social-governance-report-2021.txt,"adults without postsecondary
credentials have steadily worsened. With few chances at well
paying jobs, millions of people give up on school and withdraw
from the labor force, often leading to long-term disconnection
and lifelong disadvantages.
We’re focused on closing the opportunity gap by cultivating
and investing in diverse talent to unleash innovation, economic
growth and community well-being.
68 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Our Workforce opportunity gap by ensuring that young adults Internal Talent Mobility Programs: fellowship, with participants considered"
cof_environmental-social-governance-report-2021.txt,"xperiences and support that will
One associates also lead mock interview operations centers and are ready to
Invest in career pathways for local empower them to reach their full potential
1 sessions for Year Up students that explore advancement opportunities. In
communities. through professional training, financial
simulate the feeling of being interviewed its 2021 pilot program, 18 participants
education and workplace mentoring.
by a prospective employer. each had the chance to rotate into two
Build a workforce development talent"
cof_environmental-social-governance-report-2021.txt,"the chance to rotate into two
Build a workforce development talent
2
roles — each for one year — and work
pipeline for Capital One. Hiring Our Heroes: This innovative program • In 2021, we supported Catapult
within either process management,
provides transitioning service members with a holistic strategy to reduce
3 Integrate and improve internal mobility project management or risk management.
with professional training and hands-on attrition rates, focusing on role
programs within Capital One.
experience in the civilian workforce. The types offered, check-in touchpoints Learn more about how Capital One is"
cof_environmental-social-governance-report-2021.txt,"for Capital One. Hiring Our Heroes: This innovative program • In 2021, we supported Catapult
within either process management,
provides transitioning service members with a holistic strategy to reduce
3 Integrate and improve internal mobility project management or risk management.
with professional training and hands-on attrition rates, focusing on role
programs within Capital One.
experience in the civilian workforce. The types offered, check-in touchpoints Learn more about how Capital One is
professional development offered through and in-depth associate support. supporting workforce development."
cof_environmental-social-governance-report-2021.txt,"rticipants joined the program
smooth transition into meaningful civilian
including youth, students and adults. in 2021. There are currently 45
careers. We have expanded our support to
Catapult alumni at Capital One.
We are prioritizing creating substantial roles new lines of business and role types, which
and establishing long-term conversion over showed strong early success. • Customer-Facing Associate Mobility
quantity of hires. We do this through external
Program: This program is intended to
workforce development channels that include:"
cof_environmental-social-governance-report-2021.txt,"pen new pathways for customer-facing
Year Up: This organization brings talented associates to advance their careers and
young adults and top companies together transition successfully into new roles. This
to launch careers, power businesses and program offers a combination of a three-
build communities. Its mission is to close the week learning academy and a six-month
69 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Read More about Capital One’s
Workforce Development Efforts:"
cof_environmental-social-governance-report-2021.txt,"fit
organizations, a conference center, and the
National Urban League’s Harlem
Urban Civil Rights Experience Museum.
Headquarters
“This is the most significant project built in
Capital One supported the development of the
Harlem in 50 years,” says Marc Morial, President
Urban League Empowerment Center for the
of the NUL. “Education is a passport to a better
National Urban League (NUL) in Harlem, New
life. It not only creates citizens who are ready for
York. The $242 million, 414,000-square-foot
the workforce but it also produces people who"
cof_environmental-social-governance-report-2021.txt,"nd. Additionally, Capital One makes corporate issues of importance to our communities and
an extraordinary mobilization of government
funds to make any direct independent contributions in states where permissible associates, including community support and
resources at the federal, state and local levels, and
expenditures on behalf of candidates running for under law. These contributions are directed to efforts that help achieve a more diverse and
we focused on policies impacting our customers,
office in 2021, nor did Capital One use any PAC statewide offices, state legislators and local inclusive workforce and society."
cof_environmental-social-governance-report-2021.txt,"reports on ESG information
2-3 Reporting period, frequency and contact point
annually.
Reporting Standards, pg. 6
2-4 Restatements of information Greenhouse Gas Emissions, pg. 18
GRI 2: General
Disclosures 2021 2-5 External assurance Reporting Standards, pg. 6
Company Profile, pg. 10
Business Overview, pg. 11
2-6 Activities, value chain and other
Sustainability Overview, pg. 13
business relationships
Community Engagement and Social Impact, pg. 48
Third Party Code of Business Conduct and Ethics
Workforce Representation, pg. 35"
cof_environmental-social-governance-report-2021.txt,"d, frequency and contact point
annually.
Reporting Standards, pg. 6
2-4 Restatements of information Greenhouse Gas Emissions, pg. 18
GRI 2: General
Disclosures 2021 2-5 External assurance Reporting Standards, pg. 6
Company Profile, pg. 10
Business Overview, pg. 11
2-6 Activities, value chain and other
Sustainability Overview, pg. 13
business relationships
Community Engagement and Social Impact, pg. 48
Third Party Code of Business Conduct and Ethics
Workforce Representation, pg. 35
2-7 Employees
U.S. Workforce by Job Category, pg. 36"
cof_environmental-social-governance-report-2021.txt,"eenhouse Gas Emissions, pg. 18
WASTE
GRI 3: Material Topics 2021 3-3 Management of material topics Consumption and Waste Reduction, pg. 20
306-3 Waste generated Consumption and Waste Reduction, pg. 20
GRI 306: Waste 2020
306-5 Waste directed to disposal Consumption and Waste Reduction, pg. 20
110 | Appendix | GRI Content IndexABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
GRI 2021 STANDARDS DISCLOSURE LOCATION
EMPLOYMENT
Human Capital, pg. 27
Workplace Diversity, Inclusion and Belonging, pg. 32
GRI 3: Material Topics 2021 3-3 Management of material topics Workforce Development, pg. 68"
Constellation-2022-Sustainability-Report.txt,"ellation actively participates on the board and
committees of various trade groups, including Chicago clean power future. Every day,
Women in Trades and Hire360. We also host mock interview America’s workforce grows
sessions and build partnerships with our major allies and
more diverse, and the IBEW
partner contractors for talent recruitment. Examples of
is committed to working with
community training programs we engage with include:
Constellation to ensure that
• Chicago Women in Trades (CWIT)
every worker has a place in"
Constellation-2022-Sustainability-Report.txt,"ty Report:
103-3: Evaluation of the management approach
Workforce > Health and Safety (p. 39)
403-1: Occupational health and Constellation 2022 Sustainability Report:
safety management system Workforce > Health and Safety (p. 39)
403-2: Hazard identification, risk Constellation 2022 Sustainability Report:
assessment, and incident investigation Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-3: Occupational health services
Workforce > Health and Safety (p. 39)
GRI 403: Occupational 403-5: Worker training on occupational Constellation 2022 Sustainability Report:"
Constellation-2022-Sustainability-Report.txt,"2 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)
GRI 403: Occupational Constellation 2022 Sustainability Report:
403-6: Promotion of worker health"
Constellation-2022-Sustainability-Report.txt,"agement Approach 2016 Workforce > Talent Attraction, Development
and its components
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Workforce > Talent Attraction, Development
and Retention (p. 41–44)
GRI 401-1: New employee hires Constellation 2022 Sustainability Report:
GRI 401: Employment 2016
and employee turnover Appendix > KPI Index (p. 58–64)
We are committed to complying with all
required notice periods set forth in the U.S.
Department of Labor Worker Adjustment and"
Constellation-2022-Sustainability-Report.txt,"blement
24 Policy Engagement and Advocacy
25 Environment
26 Environmental Management and Compliance
27 Water Management
28 Biodiversity Protection
30 Waste Management
31 Air Emissions
48 Governance
49 Corporate Governance
32 Society
50 Ethics and Compliance
33 Energy Equity and Environmental Justice 51 Risk Management
33 Community Engagement 52 Supply Chain Management
36 Public Safety
53 Appendix
38 Workforce
54 About This Report
39 Health and Safety 55 2021 Electric Generation by Major Station
40 Employee Well-Being 58 KPI Index"
Constellation-2022-Sustainability-Report.txt,"of the nation’s clean electricity of power served to Commercial customers[3]
32,400 MW
of capacity consisting of nuclear, wind, solar, hydroelectric power and natural gas
Serves 48 states 94.5%
and the District of Columbia capacity factor at nuclear plants[4]
$19.64 billion ~11,700
in operating revenues (expected to be a Fortune 200 company) employees nationwide
$215 million 124M MT
in local property taxes of carbon emissions avoided through our nuclear and renewable fleet[5]
$5 million 64,800
in employee donations to nonprofit organizations employee volunteer hours"
Constellation-2022-Sustainability-Report.txt,"nication methods.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix12 Constellation 2022 Sustainability Report
OUR STAKEHOLDERS ENGAGEMENT METHODS
• Community Members • Investors • Board Memberships • Investor Calls
• Customers • Media • Community and • Policy Advocacy
NGO Meetings
• Employees • Non-Governmental • Newsletters
Organizations (NGOs) • Company Publications
• Governments • Our Website
• Suppliers • Customer Service Calls
• Industry Groups • Social Media
• Employee and"
Constellation-2022-Sustainability-Report.txt,"ory agencies to install and maintain
monitoring equipment to collect data that can be used by
all interested parties in monitoring the health of various
watersheds. For more information on our water use, please Living Shoreline at the
see the Key Performance Indicators (KPI) Appendix. Croydon Generating Station
The Croydon Generating Station in Bristol, PA, began a
Biodiversity collaboration in 2020 with the Partnership for the Delaware
Estuary (PDE) to support the Living Shoreline project. The
Protection corporate and employee-funded initiative aims to explore"
Constellation-2022-Sustainability-Report.txt,"electricity around into three pillars:
the clock. By providing affordable clean energy to the grid
• Climate & Environment: Providing support for
for communities around the country we aim to support the
environmental stewardship and conservation
transition to a clean energy economy for all groups. Indeed,
if our stations were not providing continuous clean energy, • Equity & Education: Investing in education,
STEM and workforce development
in many places fossil plants would run more frequently,
causing harmful air pollution to increase in the communities • Employee Philanthropy & Volunteerism:"
Constellation-2022-Sustainability-Report.txt,"represented populations. For more information on
Justice Policy on our website. how we support local economies on a plant-by-plant
basis, please visit our website.
[1] Dobbins, J., & Tabuchi, H. (2021, February 16). Texas Blackouts Hit Minority Neighborhoods Especially Hard. The New York Times. https://www.nytimes.com/2021/02/16/climate/texas-
blackout-storm-minorities.html
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix34 Constellation 2022 Sustainability Report
Employee Philanthropy and Volunteerism"
Constellation-2022-Sustainability-Report.txt,"rk Times. https://www.nytimes.com/2021/02/16/climate/texas-
blackout-storm-minorities.html
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix34 Constellation 2022 Sustainability Report
Employee Philanthropy and Volunteerism
Constellation has a longstanding tradition of charitable giving and service to civic and nonprofit organizations. We encourage
employees to donate to our communities in dollars and time and wholeheartedly support their community outreach efforts.
Employee volunteerism is a vital component of our engaged workforce. Employees provided more than 64,800 hours of service"
Constellation-2022-Sustainability-Report.txt,"rams such as Habitat for Humanity and Operation Warm. Additionally, our employees donated
$5 million in charitable contributions last year.
$5 million
provided by Constellation in
philanthropic support
$5 million
80%
donated in direct support to
of company philanthropic giving occurred our communities by our employees
across 6 states (plus Washington D.C.)
180
4,000+
volunteers across 10 cities teamed up to
charities and organizations benefited from
build safe, affordable energy efficient homes
company and employee donations"
Constellation-2022-Sustainability-Report.txt,"0
volunteer hours serving letters of gratitude to coats donated through
our communities our Healthcare Heroes Operation Warm
342 20,000
Community Champion Awards students inspired through E2 Energy to
nominated by customers Educate STEM education awards
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix35 Constellation 2022 Sustainability Report
Community Programs
Constellation proactively engages with communities
where our employees live and work. By leveraging our
employee engagement and philanthropic investments, we"
Constellation-2022-Sustainability-Report.txt,"y engagement programs and partnerships. For amounts of up to $50,000, have reached nearly 250,000
more information on other community programs, please students across the U.S.
visit our website.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix36 Constellation 2022 Sustainability Report
Public Safety
Throughout our operational footprint, the health and safety
of our customers, employees, communities, neighbors
and the environment are our highest priorities. We work
diligently to protect employee and public safety and"
Constellation-2022-Sustainability-Report.txt,"ikely event of a disaster, along
• Maryland Science Center's Beyond the Classroom,
with regular emergency management drills with state and
Powered by Constellation, is a longstanding program
local agencies.
supporting free admission for all Maryland students
visiting on field trips. On our first day as a new,
Baltimore-based company, Constellation affirmed our
commitment to the Maryland region and STEM education We work diligently to protect
with a $1 million multi-year donation to the Maryland
employee and public safety"
Constellation-2022-Sustainability-Report.txt,"dents and teachers over the next five years.
operations, especially during
• Nuclear Summer Camp is a STEM awareness
scholarship program for local high school students to unexpected weather or
attend university and college summer camps. Volunteers operational emergencies.
from Constellation Nuclear host educational sessions at
six universities and colleges across four states, with over
250 students focusing on nuclear technology, nuclear
career pathways and work readiness skills. Nuclear Safety
In addition, Constellation proudly supports employee Most of Constellation’s clean energy generation in the"
Constellation-2022-Sustainability-Report.txt,"s four states, with over
250 students focusing on nuclear technology, nuclear
career pathways and work readiness skills. Nuclear Safety
In addition, Constellation proudly supports employee Most of Constellation’s clean energy generation in the
philanthropy through our Powering Communities platform, U.S. consists of our nuclear fleet. With an industry-leading
which includes: safety record, we are fully committed to maintaining strict
attention to the safety of our nuclear assets so that they can
• Our employee charitable match and awards program,"
Constellation-2022-Sustainability-Report.txt,"gy generation in the
philanthropy through our Powering Communities platform, U.S. consists of our nuclear fleet. With an industry-leading
which includes: safety record, we are fully committed to maintaining strict
attention to the safety of our nuclear assets so that they can
• Our employee charitable match and awards program,
continue to reliably supply our communities and customers
which matches contributions 1:1 to the charity of the
with clean energy. Nuclear energy plants consistently have
employee’s choice with an annual limit of $10,000"
Constellation-2022-Sustainability-Report.txt,"With an industry-leading
which includes: safety record, we are fully committed to maintaining strict
attention to the safety of our nuclear assets so that they can
• Our employee charitable match and awards program,
continue to reliably supply our communities and customers
which matches contributions 1:1 to the charity of the
with clean energy. Nuclear energy plants consistently have
employee’s choice with an annual limit of $10,000
the lowest recordable injury rates of all forms of electricity
per employee."
Constellation-2022-Sustainability-Report.txt,"l forms of electricity
per employee.
generation.[1] Line management provides a transparent
• Our Dollars for Doers grant program, which allows
safety culture at the plant level and plant operations
employees to earn $100 towards any eligible nonprofit
have multiple levels of oversight through our proprietary,
organization for every 10 hours volunteered, up to
fleet-wide Management Model. The Independent Nuclear
$1,000 per calendar year.
Safety Review Boards review each plant twice per year. Our
• Our employee volunteering efforts, which provide Nuclear Oversight Committee monitors performance and"
Constellation-2022-Sustainability-Report.txt,"civic organizations, schools and sporting events.
facilities from design to construction and operation.
• Community Information Nights: Several nuclear
Constellation has consistently met or exceeded NRC safety
sites host annual informational open houses. These
regulations, spending more than $400 million across our
well-attended events allow the public an opportunity
nuclear fleet to bolster defenses.
to meet plant representatives, ask questions and learn
about how nuclear energy is generated.
Every newly hired employee working within the operations"
Constellation-2022-Sustainability-Report.txt,"nings are designed to enhance
performance and deepen sector-specific knowledge and
technological expertise. Constellation has training facilities
in Pennsylvania, New York and Illinois, in addition to our
Midwest-based fire response training center. For more
information on how we protect our employees, please
see the section on Health and Safety.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix38 Constellation 2022 Sustainability Report
Workforce
Health and Safety
Employee Well-Being"
Constellation-2022-Sustainability-Report.txt,"HA) standards. Our
organization. While our workforce takes on a certain element
Safety Peer Group operates across our sites and locations
of risk in carrying out the tasks critical for electricity
and is tasked with the proactive development of pilot safety
generation, we are committed to ensuring that our workers
programs and protocols to catalyze H&S improvements
get home safely each and every day. The success of our
across the company.
H&S program begins with the individual responsibility of
each employee. We integrate safety training into our new We also advance our safety programs through technology by"
Constellation-2022-Sustainability-Report.txt,"ur sites and locations
of risk in carrying out the tasks critical for electricity
and is tasked with the proactive development of pilot safety
generation, we are committed to ensuring that our workers
programs and protocols to catalyze H&S improvements
get home safely each and every day. The success of our
across the company.
H&S program begins with the individual responsibility of
each employee. We integrate safety training into our new We also advance our safety programs through technology by
employee orientation and utilize leadership development testing innovative methods to improve safety performance."
Constellation-2022-Sustainability-Report.txt,"training into our new We also advance our safety programs through technology by
employee orientation and utilize leadership development testing innovative methods to improve safety performance.
programs to foster a company-wide safety culture. For example, we leverage thermal imaging to assist in
the detection of otherwise invisible problems using the
Teledyne FLIR ONE Pro tool. This thermal camera is used to
troubleshoot heating, ventilation and mechanical systems,
At Constellation, the health
find water damage and even screen employee temperatures"
Constellation-2022-Sustainability-Report.txt,"ty throughout
health and safety of our communities, please see the section
our organization.
on Public Safety.
Health and Safety Performance
Health and Safety Management We continually track key H&S metrics to evaluate
and improve our occupational safety performance and
H&S measures are incorporated throughout Constellation,
ultimately protect our workers. Our OSHA recordable
at all levels and at all times. We integrate safety training
safety performance is among the best in the industry[1] and
into our new employee orientation and utilize leadership"
Constellation-2022-Sustainability-Report.txt,"e see the section
our organization.
on Public Safety.
Health and Safety Performance
Health and Safety Management We continually track key H&S metrics to evaluate
and improve our occupational safety performance and
H&S measures are incorporated throughout Constellation,
ultimately protect our workers. Our OSHA recordable
at all levels and at all times. We integrate safety training
safety performance is among the best in the industry[1] and
into our new employee orientation and utilize leadership
in 2021, our employee OSHA recordable rate was 0.08 per"
Constellation-2022-Sustainability-Report.txt,"urs, a decrease of 53 percent compared
culture. In 2021, our employees received an estimated
to 2020. For more information on our safety performance,
450,000 hours of H&S training. We foster a proactive and
please see the KPI Appendix.
prevention-forward culture in our workforce to anticipate
and recognize potential hazards through our injury
prevention program. Reported events are thoroughly
investigated to ensure that preventive steps are put into 53%
place to prevent incidents in the future.
year-over-year decrease in employee"
Constellation-2022-Sustainability-Report.txt,"place to prevent incidents in the future.
year-over-year decrease in employee
OSHA recordable rate compared to 2020
[1] Based on U.S. Bureau of Labor Statistics incidence rates of nonfatal occupational injuries and illnesses by industry and case types, 2020 (TABLE 1. Incidence rates of nonfatal occupational
injuries and illnesses by industry and case types, 2020 (bls.gov).
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix40 Constellation 2022 Sustainability Report
Employee Well-Being • Back-Up Child and Elder Care: Constellation offers"
Constellation-2022-Sustainability-Report.txt,"others are eligible to receive up to 16 weeks of paid
achieve their professional and personal goals. The parental leave after giving birth and fathers and adoptive
company-provided benefits include comprehensive parents are eligible to receive up to eight weeks of paid
medical, dental and vision benefits, including a robust leave when a child arrives. Employees are also eligible to
wellness program; disability and life insurance; 401(k) receive up to two weeks of paid leave to care for a family
with company match; employee stock purchase member with a critical illness. Constellation approved 424"
Constellation-2022-Sustainability-Report.txt,"l and professional development. We reimburse
including personalized wellness content, walking and employees who are pursuing professional credentials up
nutrition challenges, health coaching and tracking of to $10,000 annually for undergraduate or professional
financial wellness goals. In 2021, nearly 41 percent[1] of certification courses and up to $15,000 annually for
employees registered for the digital wellness platform, graduate courses.
and about three-fourths of registered employees took
• Employee and Labor Relations: We respect and"
Constellation-2022-Sustainability-Report.txt,"hing and consistently giving feedback
employees to be their authentic selves. At Constellation,
to their employees. Employees are also encouraged to
our commitment to DEI is a foundational value and
continue their development by leveraging the available
an ethical obligation. We have created a DEI Center of
resources and opportunities.
Excellence to continuously strengthen our DEI commitments
The year-end review process provides managers and to meet the dynamic needs of our employees, customers
employees with the opportunity to focus on the employee's and communities. We respect and champion the diversity"
Constellation-2022-Sustainability-Report.txt,"nt by leveraging the available
an ethical obligation. We have created a DEI Center of
resources and opportunities.
Excellence to continuously strengthen our DEI commitments
The year-end review process provides managers and to meet the dynamic needs of our employees, customers
employees with the opportunity to focus on the employee's and communities. We respect and champion the diversity
impact and accomplishments for the year. The impact is of perspectives of our workforce and work to ensure an
measured by the employee's accomplishments in terms equitable and inclusive work environment for everyone. For"
Constellation-2022-Sustainability-Report.txt,"the right behaviors and more information, please visit Constellation's DEI website.
the ability to develop themselves and others. All exempt
and non-unionized/non-craft/non-exempt employees are
required to participate in our goal setting and year-end review
At Constellation, our
process. The introduction of workforce planning tools and
commitment to DEI is a
software such as Anaplan and PowerBI facilitate operational
development and provide real-time data to our leaders. foundational value and
The Employee Lifecycle Dashboard is one example of the an ethical obligation."
Constellation-2022-Sustainability-Report.txt,"n resources team
and leadership to provide insight into key people metrics,
including turnover.
Succession Planning
and Pipeline Development
Constellation emphasizes talent pipeline planning to ensure
we have a strong bench for critical leadership positions. The
talent planning process is aimed at providing an environment
for critical business talent conversations to help secure
long-term success for Constellation by ensuring that the
organization has a diverse and talented leadership team, now
and in the future. When evaluating an employee’s potential to"
Constellation-2022-Sustainability-Report.txt,"tellation by ensuring that the
organization has a diverse and talented leadership team, now
and in the future. When evaluating an employee’s potential to
excel as a leader, we look more closely at various leadership
attributes that help predict performance in future roles.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix45 Constellation 2022 Sustainability Report
Promoting Diversity,
Equity and Inclusion
We are all accountable for driving DEI at Constellation—from
our leadership and management to each and every employee"
Constellation-2022-Sustainability-Report.txt,"dix45 Constellation 2022 Sustainability Report
Promoting Diversity,
Equity and Inclusion
We are all accountable for driving DEI at Constellation—from
our leadership and management to each and every employee
through individual DEI performance goals. Constellation
operates in a world rich in diversity—in race, ethnicity,
gender identification, sexual orientation, abilities, experience
and thought. To expand inclusion, we offer DEI training for
all employees. As of December 31, 2021, 20 percent of
our employee population were female, and 17 percent were"
Constellation-2022-Sustainability-Report.txt,"ccess and advancing skills of workers from communities
that have historically been underrepresented in the energy sector. Invest $1 million in community partners that are
investing in women, minorities and underserved community members to create family sustaining careers. Amplify
our university, community college and technical college partnerships with a focus on improving diversity within STEM
majors. For more information, please see the section on Talent Attraction, Development and Retention.
Employee Resource Groups"
Constellation-2022-Sustainability-Report.txt,"s of workers from communities
that have historically been underrepresented in the energy sector. Invest $1 million in community partners that are
investing in women, minorities and underserved community members to create family sustaining careers. Amplify
our university, community college and technical college partnerships with a focus on improving diversity within STEM
majors. For more information, please see the section on Talent Attraction, Development and Retention.
Employee Resource Groups
Constellation is proud to support our employee resource groups (ERGs), which demonstrate our passion for enhancing DEI"
Constellation-2022-Sustainability-Report.txt,"thics and compliance program that can
We also manage business conduct and ethics in our
adapt to the changing risks we face and guide us as we
supply chain by implementing a Supplier Code of Conduct
deliver on our purpose.
and requiring vendors and contractors to adhere to the
principles of the Code that are described in the Supplier
Code of Conduct. For more information, please see the
In 2021, 99 percent of section on Supply Chain Management.
employees completed required
training on the Code.
[1] Given the separation of Constellation and Exelon in the first quarter of 2022, the 2021 employee training and certifications were for the Exelon Code of Business Conduct."
Constellation-2022-Sustainability-Report.txt,") 2
USD revenue[4]
[1] There are 17 potential Scope 3 categories. Constellation currently tracks and reports those most pertinent to our business and where we can most effectively take action today.
Additional information on Scope 3 accounting can be found at http://ghgprotocol.org/scope-3-technical-calculation-guidance.
[2] Includes owned and Power Purchase Agreement (PPA) renewables for which attributes may have been sold as RECs or retired for Renewable Portfolio Standards (RPS) obligations.
[3] Data unavailable for 2019 and 2020 as employee business travel and leased facility energy usage data was not tracked separately for legacy Constellation business units in"
Constellation-2022-Sustainability-Report.txt,"y Workforce Governance Appendix61 Constellation 2022 Sustainability Report
Diversity, Equity and Inclusion
Disclosure Unit 2021 GRI/SASB Indicator
Management
Female Number 320 GRI 405-1
People of Color Number 229 GRI 405-1
Aged <30 Number 49 GRI 405-1
Aged 30–50 Number 1,187 GRI 405-1
Aged >50 Number 758 GRI 405-1
Total Management Employees Number 1,994 GRI 405-1
Executive Committee
Female Number 3 GRI 405-1
People of Color Number 1 GRI 405-1
Total Executive Committee Members Number 9 GRI 405-1
Employee Turnover"
Constellation-2022-Sustainability-Report.txt,"occupational Constellation 2022 Sustainability Report:
health and safety management Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-9: Work-related injuries
Appendix > KPI Index (p. 58–64)
Constellation 2022 Sustainability Report:
403-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being"
Constellation-2022-Sustainability-Report.txt,"and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-9: Work-related injuries
Appendix > KPI Index (p. 58–64)
Constellation 2022 Sustainability Report:
403-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"3-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"ellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"ability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"3: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"aluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)
GRI 403: Occupational Constellation 2022 Sustainability Report:
403-6: Promotion of worker health
Health and Safety 2018 Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"2 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Talent Attraction, Development
and its Boundary
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-2: The management approach
GRI 103: Management Approach 2016 Workforce > Talent Attraction, Development
and its components
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Workforce > Talent Attraction, Development
and Retention (p. 41–44)
GRI 401-1: New employee hires Constellation 2022 Sustainability Report:"
Constellation-2022-Sustainability-Report.txt,"Development
and its Boundary
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-2: The management approach
GRI 103: Management Approach 2016 Workforce > Talent Attraction, Development
and its components
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Workforce > Talent Attraction, Development
and Retention (p. 41–44)
GRI 401-1: New employee hires Constellation 2022 Sustainability Report:
GRI 401: Employment 2016
and employee turnover Appendix > KPI Index (p. 58–64)"
Constellation-2022-Sustainability-Report.txt,"pendix > KPI Index (p. 58–64)
We are committed to complying with all
required notice periods set forth in the U.S.
Department of Labor Worker Adjustment and
GRI 402: Labor Management 402-1: Minimum notice periods
Retraining Notification Act (WARN) and local
Relations 2016 regarding operational changes
and state-specific laws. As such, we notify all
impacted employees of operational changes
as soon as practical.
Constellation 2022 Sustainability Report:
Workforce > Talent Attraction, Development
404-2: Programs for upgrading employee and Retention (p. 41–44)"
Constellation-2022-Sustainability-Report.txt,"ment and
GRI 402: Labor Management 402-1: Minimum notice periods
Retraining Notification Act (WARN) and local
Relations 2016 regarding operational changes
and state-specific laws. As such, we notify all
impacted employees of operational changes
as soon as practical.
Constellation 2022 Sustainability Report:
Workforce > Talent Attraction, Development
404-2: Programs for upgrading employee and Retention (p. 41–44)
skills and transition assistance programs
Constellation 2022 Sustainability Report:
GRI 404: Training and Eduction 2016 Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"tion 2022 Sustainability Report
Disclosure Report Section or Direct Response
Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016 103-3: Evaluation of the management approach Workforce > Diversity, Equity and Inclusion
(p. 44–47)
405-1: Diversity of governance Constellation 2022 Sustainability Report:
bodies and employees Appendix > KPI Index (p. 58–64)
GRI 405: Diversity and
Equal Opportunity 2016
405-2: Ratio of basic salary and Constellation 2022 Sustainability Report:
remuneration of women to men Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"Harmful Effects of Air Pollution
19 Clean, Safe and Reliable Energy
22 Innovation and Technology Enablement
24 Policy Engagement and Advocacy
25 Environment
26 Environmental Management and Compliance
27 Water Management
28 Biodiversity Protection
30 Waste Management
31 Air Emissions
48 Governance
49 Corporate Governance
32 Society
50 Ethics and Compliance
33 Energy Equity and Environmental Justice 51 Risk Management
33 Community Engagement 52 Supply Chain Management
36 Public Safety
53 Appendix
38 Workforce"
Constellation-2022-Sustainability-Report.txt,"lier of energy products and services to 2 million homes and businesses, including approximately three-fourths
of Fortune 100 companies. Our product offerings include energy efficiency, on- and off-site renewable energy and digital
technology aimed at helping customers better manage their energy use and track their emissions. Our leading customer
platform is No. 1 in market share for large businesses, and together with the nation’s largest clean energy fleet can help build
a carbon-free economy.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix02 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"st advanced, real-time carbon accounting solution of its kind, going beyond other net zero programs that
aggregate clean energy megawatts over time, and giving customers clearer and more accurate data on their emissions impact.
Empowering Our Communities
These and other emerging technologies hold the key to solving the climate crisis and transforming our economy. But as
we continue to invest in the future of our industry, we also recognize our responsibility to invest in our communities and the
workforce of tomorrow. In the year prior to our separation, Constellation provided $5.2 million to more than 1,000 nonprofits"
Constellation-2022-Sustainability-Report.txt,"vest in the future of our industry, we also recognize our responsibility to invest in our communities and the
workforce of tomorrow. In the year prior to our separation, Constellation provided $5.2 million to more than 1,000 nonprofits
across 31 states and our employees donated an additional $5 million. In addition to their dollars, our employees donated
64,800 hours of volunteer time. We also invest more than $300 million annually in state and local taxes that benefit the
communities we serve.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix03 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"00 hours of volunteer time. We also invest more than $300 million annually in state and local taxes that benefit the
communities we serve.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix03 Constellation 2022 Sustainability Report
Our commitment to DEI extends to our corporate giving and our inclusive leadership model. More than 84 percent of
Constellation’s giving went to organizations and programs that target diverse and underrepresented populations. A key focus
is on workforce development and promoting science, technology, engineering and math (STEM) education, especially among"
Constellation-2022-Sustainability-Report.txt,"cus
is on workforce development and promoting science, technology, engineering and math (STEM) education, especially among
women and minorities. We will maintain our focus on creating economic opportunities while ensuring that the benefits of our
transition to clean energy are shared equitably. In addition, our senior leaders have DEI performance goals, and we offer DEI
training to all employees. Among our priorities as a new company was to establish a DEI Center of Excellence focused on racial
and gender equity. In addition, we continually examine our hiring practices and workforce development programs to identify"
Constellation-2022-Sustainability-Report.txt,"lear energy is critical to meeting the climate challenge. The call for meaningful change is
undeniable and growing louder.
With the investments we are making in new technologies, we have an opportunity to further amplify the power of our reliable
clean generation fleet to address air pollution. And with our commitment to fostering equitable and sustainable economic
development, we will transform and empower our communities, as well.
Sincerely,
Joe Dominguez
President and Chief Executive Officer
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix04 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"er amplify the power of our reliable
clean generation fleet to address air pollution. And with our commitment to fostering equitable and sustainable economic
development, we will transform and empower our communities, as well.
Sincerely,
Joe Dominguez
President and Chief Executive Officer
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix04 Constellation 2022 Sustainability Report
About
Constellation
2021 By The Numbers
Our Business
Our Sustainable Business Strategy
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix05 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"s of load, including ~155 TWhs of primarily Commercial and Industrial retail and ~60 TWhs of wholesale volumes as of December 31, 2020.
[4] Capacity factor measures how often a power plant is running at maximum power. A plant with a capacity factor of 100% means it’s producing power all of the time.
[5] Estimated based on 175 TWhs of zero-emissions electricity generated by our nuclear and renewable fleet during 2021, using the U.S. Environmental Protection Agency's
GHG Equivalencies Calculator.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix06 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ncies Calculator.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix06 Constellation 2022 Sustainability Report
Our Business
Constellation Energy Corporation (Constellation, or the On February 24, 2021, Exelon announced plans to separate
Company) (NASDAQ: CEG) is the nation’s largest producer its competitive power generation and commercial businesses
of clean energy and provider of sustainable solutions. Our from its regulated utility business into a publicly traded
skilled workforce of approximately 11,700 employees, as company with the financial and strategic independence to"
Constellation-2022-Sustainability-Report.txt,"eadquartered in Baltimore, Maryland, the newly separated
more than 32,400 megawatts (MW). Constellation is also
Constellation has business operations in 48 U.S. states,
a leading supplier of generated power and energy products,
the District of Columbia and Canada. The following map
serving more than 20 million homes nationwide, while our
illustrates the locations of our generation facilities as of
retail business includes approximately three-quarters of
December 31, 2021.
Fortune 100 companies.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix07 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ity
Act With Integrity because respect for our colleagues, customers and communities compels us to be accountable
for everything we do.
We bring people together equitably so all voices can be heard and every perspective is valued.
Respect, Belonging, Diversity and Equity Respecting differences, collaborating and being inclusive. Bringing our whole self to the job, so
we can come together as one.
It’s about having an impact. Driving economic progress, improving lives and reflecting the diversity
Catalyst for Change of our society in our workforce. It’s a can-do attitude that says: Together, we can be a catalyst for"
Constellation-2022-Sustainability-Report.txt,"n come together as one.
It’s about having an impact. Driving economic progress, improving lives and reflecting the diversity
Catalyst for Change of our society in our workforce. It’s a can-do attitude that says: Together, we can be a catalyst for
positive change in communities across America.
Our role has never been more essential. Leading the transition to a clean energy economy.
Climate Champion Advocating for change. Preparing our communities for the future. We must be champions
for climate.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix08 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"inesses and
governments committed to setting ambitious carbon-reduction goals and seeking long-term solutions to the climate crisis. Our
disciplined capital allocation strategy supports a strong investment grade balance sheet. Constellation’s growth investment is
consistent with our corporate strategy, and our dividend policy ensures return of capital to owners. For more information on our
value proposition, please visit our website.
[1] Constellation Analyst Day Presentation, January 11, 2022.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix09 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ibutes of Clean Nuclear Generation
Air Quality Nuclear keeps the air clean as it does not release harmful air pollutants like mercury.
On one square mile, a nuclear reactor can generate 1,000 MW in the U.S. Wind and solar power
Land Footprint
need 360 and 75 times more land to generate the same amount of electricity, respectively.
Waste Nuclear energy produces one million times less waste than traditional forms of energy.
[1] https://www.energy.gov/ne/articles/5-fast-facts-about-nuclear-energy.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix10 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"r when considering investments.
100% 100% 100%
100% carbon-free 100% reduction in operational 100% of C&I customers
owned generation by 2040 emissions by 2040[2] provided with specific information
about their carbon impact
[1] Subject to policy support and technology advancements.
[2] Any emissions that cannot be technologically reduced by that time will be offset: Constellation commits to reducing methane emissions 30% from 2020 by 2030,
aligned with the Administration's global methane pledge.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix11 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ffecting our business stems from consistent and ongoing engagement
with our stakeholders to address their needs and concerns. The issues that affect our stakeholders are critical elements that
underline the development of our sustainability strategy and business plans. We hold biannual investor calls every spring and fall
for our largest institutional investors. Additionally, we reach out to other stakeholders through calls, meetings, publications and
surveys, among other communication methods.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix12 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"in trade associations and other organizations to further our
sustainability efforts. Our current association memberships include the Nuclear Energy Institute, The Clean Energy Group,
Center for Climate and Energy Solutions (C2ES), Ceres and Energy Strategy Coalition. As strong supporters of actions that
address the climate crisis, membership in these organizations allows us to advocate and influence industry positions on
clean energy and climate policies, as well as share safety best practices.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix13 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"decades.
operations to mitigate the impacts
• Providing 24/7 clean generation
of the climate crisis on our business,
capable of powering more than
the customers we serve and the
14.9 million homes.
communities we operate within,
including responsible water use and • Serving more than two million
protecting the habitat and biodiversity. retail customers, including
approximately three-fourths
Goal 13: Climate Action
of the Fortune 100.
Take urgent action to
combat climate change
and its impacts.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix14 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ity
with clean power when they need it, to
solutions to help more C&I
transformative solutions to integrate
customers meet their clean
clean fuels, we will continue to innovate
energy goals, with a focus on
Goal 7: Affordable in partnership with our customers.
24/7/365 carbon accounting.
and Clean Energy
Ensure access to affordable, • Supporting emissions reductions
reliable, sustainable and for retail natural gas customers
modern energy for all. through offsets and Renewable
Natural Gas (RNG).
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix15 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"e clean energy centers • Investing in companies exploring
that will not only satisfy the growing innovative energy technologies
demand for clean and flexible energy and business models through
but also, in certain instances, produce Constellation Technology Ventures.
clean hydrogen and power DAC.
• Piloting solutions like NET Power,
hydrogen and RNG that have the
potential to decarbonize natural
Goal 13: Climate Action gas generation.
Take urgent action to
combat climate change
and its impacts.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix16 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ers, Initiatives
employees, business partners and • Building relationships with Society > Energy Equity
communities benefit equitably community leaders through active and Environmental Justice
from social, environmental and participation at local events.
Society >
economic progress.
• Driving equitable Community Engagement
community investment
Foster DEI
and economic progress. Society > Public Safety
Our commitment to cultivating a
culture of DEI—ensuring a fair and • Recognizing the importance
Workforce > Diversity,"
Constellation-2022-Sustainability-Report.txt,"Society >
economic progress.
• Driving equitable Community Engagement
community investment
Foster DEI
and economic progress. Society > Public Safety
Our commitment to cultivating a
culture of DEI—ensuring a fair and • Recognizing the importance
Workforce > Diversity,
equitable experience for all—provides of environmental justice
Equity and Inclusion
us an advantage in the fight against the in the transition to a low
climate crisis. Our employees are our carbon economy. Governance > Supply Chain
greatest asset, and we will continue • Increasing workforce development Management > Supporting"
Constellation-2022-Sustainability-Report.txt,"and • Recognizing the importance
Workforce > Diversity,
equitable experience for all—provides of environmental justice
Equity and Inclusion
us an advantage in the fight against the in the transition to a low
climate crisis. Our employees are our carbon economy. Governance > Supply Chain
greatest asset, and we will continue • Increasing workforce development Management > Supporting
to invest in our communities and talent and creating family-sustaining jobs Diverse Suppliers
Goal 11: Sustainable
to ensure a strong workforce for in our communities."
Constellation-2022-Sustainability-Report.txt,"us an advantage in the fight against the in the transition to a low
climate crisis. Our employees are our carbon economy. Governance > Supply Chain
greatest asset, and we will continue • Increasing workforce development Management > Supporting
to invest in our communities and talent and creating family-sustaining jobs Diverse Suppliers
Goal 11: Sustainable
to ensure a strong workforce for in our communities.
Cities and Communities
the future.
Make cities and human • Fostering DEI in our culture
settlements inclusive, safe, Sustainable Supply Chain and workforce."
Constellation-2022-Sustainability-Report.txt,"Sustainable Supply Chain and workforce.
resilient and sustainable.
Constellation is working to build a • Providing meaningful philanthropic
sustainable supply chain that delivers and volunteer opportunities that
quality products and services, supports improve lives.
local and diverse businesses in the
• Expanding and growing
communities in which we operate,
supplier diversity in our supply
ensures supply chain continuity and
chain with small and diverse
upholds human rights.
business partners.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix17 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"xpanding and growing
communities in which we operate,
supplier diversity in our supply
ensures supply chain continuity and
chain with small and diverse
upholds human rights.
business partners.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix17 Constellation 2022 Sustainability Report
Clean Energy
Addressing the Climate Crisis and
the Harmful Effects of Air Pollution
Clean, Safe and Reliable Energy
Innovation and Technology Enablement
Policy Engagement and Advocacy
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix18 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ssions attributable
to our grid-supplied electric use based on how electricity is procured. In 2021, Constellation retired Emissions Free Energy
Certificates (EFECs) from nuclear generation to cover 100 percent of our grid supplied electric use in the PJM market territory.
Greenhouse Gas Emissions (thousand metric tons CO e)
2
2019 2020 2021 Scope 2 (market-based) GHGs
8,867 100,396
8,004 8,254 418 397 409 95,839 93,647
175
121
94
Scope 1 GHGs Scope 2 (location-based) GHGs Relevant Scope 3 GHGs
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix19 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"y
2025 and 80 percent by 2050 compared with 2005 levels, terawatt hours of zero-emissions electricity in 2021,
as well as obtaining at least 40 percent of electricity from in- enough to power 14.9 million homes.
state clean energy sources.
Production from our share of
nuclear reactors totaled 163 TWh
of zero-emissions electricity
in 2021, enough to power 14.9
million homes.
[1] International Atomic Energy Agency. (2020). Energy, Electricity and Nuclear Power Estimates for the Period up to 2050.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix20 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ctric Generating
for the U.S. to achieve its decarbonization goals, we need
Station is available 24/7 and can to preserve existing nuclear capacity and extend our plants'
respond to changes in demand life to 80 operational years through subsequent license
renewals. Constellation intends to apply for additional
to supply needed energy to the
20-year license renewals for its plants where there is policy
grid within 10 minutes.
and market support for the continued operation of clean
nuclear power.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix21 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"carbon option. These solutions currently include
off-site renewable energy to customers for a fixed price.
renewable natural gas and carbon offsets, and we expect to
The CORe product portfolio includes:
provide electrification conversion and conversion to clean
• CORe: CORe is designed to provide businesses access to hydrogen once the hydrogen economy reaches more
location-specific offsite renewable energy projects and wide-scale adoption.
RECs through the simplicity of a retail power contract.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix22 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"e hydrogen
production at scale, reducing local emissions and creating
new jobs.
Developing a hydrogen hub presents an opportunity to
engage closely with the local community and stakeholders
across the hydrogen value chain from production to end
use. Constellation is collaborating closely with these
stakeholders to create substantial job opportunities while
reducing emissions and creating a new sustainable, clean
product for our customers that supports the longevity of
our critical clean assets.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix23 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"t with the DOE to demonstrate hydrogen production, storage and on-site
use from nuclear power through a 1 MW electrolyzer powered by our Nine Mile Point Nuclear Station in Oswego, New York.
This project is on track to begin producing hydrogen before the end of 2022.
Power to X
H , e-methanol,
2
e-ammonia
Data Center
Clean Energy Center
Direct Air
Capture
Flexible Grid
Energy and
Capacity (24/7)
[1] REL. (2020). (rep.). The Technical and Economic Potential of the H2@Scale Concept within the U.S.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix24 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"an play in supporting
business has engaged with the broader clean energy transition, given that the funding
policymakers at the federal provided for hydrogen hubs stipulates that at least one is
to be built around nuclear energy.
and state levels to enact
comprehensive legislation that
drives decarbonatization and the
response to the climate crisis.
[1] The recently-enacted federal nuclear production tax credit contains provisions to ensure that the federal and state support are not duplicated.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix25 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"to enact
comprehensive legislation that
drives decarbonatization and the
response to the climate crisis.
[1] The recently-enacted federal nuclear production tax credit contains provisions to ensure that the federal and state support are not duplicated.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix25 Constellation 2022 Sustainability Report
Environment
Environmental Management and Compliance
Water Management
Biodiversity Protection
Waste Management
Air Emissions
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix26 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"th and Safety and EMS compliance assessments and independent third-party audits.
[1] For sites that are not owned, co-owned, and/or operated by Constellation, the full EMS Program is not applied. Adherence to aspects of the EMS and Management Model is expected.
The Everett-LNG facility is not fully incorporated into EMS or Management Model due to external regulatory organizations.
[2] Constellation maintains an internal process to ensure it meets all the requirements of the ISO-14000 standards.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix27 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ter Use
We use the World Resources Institute Aqueduct tool to aggregate water stress indicators for the power generation sector,
including water quantity and quality, reputational risk and regulatory measures. Constellation’s facilities with the greatest
consumptive use are located in low-medium risk areas of the Mid-Atlantic, Northeast and upper Midwest. Some of our solar
and wind power installations operate in high water risk areas; however, these assets have negligible consumptive water use.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix28 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"nhance
experts and regulatory agencies, collaborate on research
the ecological conditions of the Delaware River as well as
studies and provide educational opportunities for employees improve water quality, strengthen coastal resilience and
and community members. provide important scientific lessons to guide other projects
in the region. This project has the committed support of
Constellation, the PDE, Stantec Engineering, the Philadelphia
Water Department and other local community stakeholders.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix29 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ting Station 765
Nine Mile Point 900
James A Fitzpatrick Nuclear Power Plant 702
R.E. Ginna 426
Perryman Generation Station 5
Criterion Wind 117
Certified
Constellation has sought for many years to restore migratory species pathways along the Susquehanna River in Pennsylvania
and Maryland associated with the operations of the Conowingo and the Muddy Run Pumped Storage hydroelectric facilities.
Our efforts include habitat improvement projects such as restoring streams and building fish passages.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix30 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ocated for many years to Congress and
reactions remain inside the fuel. The entire amount of spent
federal agencies to find a solution that permanently removes
nuclear fuel ever produced in the U.S. since the late 1950s
spent nuclear fuel from dozens of sites across the U.S.
would fill one football field, 10 yards deep.[1] A single coal
Nuclear Fuel Is Extremely Energy Dense[2]
[1] Nuclear Energy Institute. (2019, November 22). Nuclear waste. nei.org.
[2] U.S. Energy Information Administration.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix31 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ontrol Plans and submit
electronic data reports on a quarterly basis. Compliance
responsibility, including certification of emission monitoring
reports and annual compliance certification, is managed
by a dedicated Constellation staff.
For more information on our air emissions, please see
the KPI Appendix.
[1] Based on the most recent Benchmarking Air Emissions Report published by MJ Bradley & Associates, published July 2021: https://www.mjbradley.com/reports/benchmarking-air-
emissions-report.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix32 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"edicated Constellation staff.
For more information on our air emissions, please see
the KPI Appendix.
[1] Based on the most recent Benchmarking Air Emissions Report published by MJ Bradley & Associates, published July 2021: https://www.mjbradley.com/reports/benchmarking-air-
emissions-report.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix32 Constellation 2022 Sustainability Report
Society
Energy Equity and Environmental Justice
Community Engagement
Public Safety
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix33 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"itizenship and philanthropy program is divided
by providing affordable, zero emissions electricity around into three pillars:
the clock. By providing affordable clean energy to the grid
• Climate & Environment: Providing support for
for communities around the country we aim to support the
environmental stewardship and conservation
transition to a clean energy economy for all groups. Indeed,
if our stations were not providing continuous clean energy, • Equity & Education: Investing in education,
STEM and workforce development"
Constellation-2022-Sustainability-Report.txt,"ronmental stewardship and conservation
transition to a clean energy economy for all groups. Indeed,
if our stations were not providing continuous clean energy, • Equity & Education: Investing in education,
STEM and workforce development
in many places fossil plants would run more frequently,
causing harmful air pollution to increase in the communities • Employee Philanthropy & Volunteerism:
where they are located. Likewise, through our investments Demonstrating leadership and passion for causes
in local businesses, workforce development, education and close to our hearts"
Constellation-2022-Sustainability-Report.txt,"on’s programs and events specifically targeted to diverse and
approach to energy equity, please see our Environmental underrepresented populations. For more information on
Justice Policy on our website. how we support local economies on a plant-by-plant
basis, please visit our website.
[1] Dobbins, J., & Tabuchi, H. (2021, February 16). Texas Blackouts Hit Minority Neighborhoods Especially Hard. The New York Times. https://www.nytimes.com/2021/02/16/climate/texas-
blackout-storm-minorities.html
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix34 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"rk Times. https://www.nytimes.com/2021/02/16/climate/texas-
blackout-storm-minorities.html
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix34 Constellation 2022 Sustainability Report
Employee Philanthropy and Volunteerism
Constellation has a longstanding tradition of charitable giving and service to civic and nonprofit organizations. We encourage
employees to donate to our communities in dollars and time and wholeheartedly support their community outreach efforts.
Employee volunteerism is a vital component of our engaged workforce. Employees provided more than 64,800 hours of service"
Constellation-2022-Sustainability-Report.txt,"6 states (plus Washington D.C.)
180
4,000+
volunteers across 10 cities teamed up to
charities and organizations benefited from
build safe, affordable energy efficient homes
company and employee donations
with Habitat for Humanity
64,800 1,000 300
volunteer hours serving letters of gratitude to coats donated through
our communities our Healthcare Heroes Operation Warm
342 20,000
Community Champion Awards students inspired through E2 Energy to
nominated by customers Educate STEM education awards
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix35 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"portunities for focusing on energy equity, sustainability as a lifestyle
underserved communities and help create a more inclusive and a sustainable world, reaching and inspiring 20,000
and equitable society. Below are some examples of our students. Since its inception, more than 186 awards, with
community engagement programs and partnerships. For amounts of up to $50,000, have reached nearly 250,000
more information on other community programs, please students across the U.S.
visit our website.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix36 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ich provide Nuclear Oversight Committee monitors performance and
employees the opportunity to create, manage and compliance at each of our nuclear facilities and reviews
join volunteer events in our communities. each plant every two years.
[1] Based on U.S. Bureau of Labor Statistics incidence rates of nonfatal occupational injuries and illnesses by industry and case types, 2020 (TABLE 1. Incidence rates of nonfatal occupational
injuries and illnesses by industry and case types, 2020 (bls.gov).
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix37 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"21 involved nine
and training by an INPO-certified instructor. Initial training of our nuclear facilities. They resulted in 18 tours provided to
programs last from nine months for skilled workers to 18 the public, more than 25 Speaker’s Bureau presentations and
40 community outreach events, which collectively reached
months for NRC-licensed nuclear control room operators.
over 65,000 members of the community and other
In 2021, we completed training and licensing for 93 control
key stakeholders.
room operators. After licensing, our workforce continues"
Constellation-2022-Sustainability-Report.txt,"stakeholders.
room operators. After licensing, our workforce continues
to regularly receive rigorous nuclear safety training at
each of our sites. Trainings are designed to enhance
performance and deepen sector-specific knowledge and
technological expertise. Constellation has training facilities
in Pennsylvania, New York and Illinois, in addition to our
Midwest-based fire response training center. For more
information on how we protect our employees, please
see the section on Health and Safety.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix38 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"g at
each of our sites. Trainings are designed to enhance
performance and deepen sector-specific knowledge and
technological expertise. Constellation has training facilities
in Pennsylvania, New York and Illinois, in addition to our
Midwest-based fire response training center. For more
information on how we protect our employees, please
see the section on Health and Safety.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix38 Constellation 2022 Sustainability Report
Workforce"
Constellation-2022-Sustainability-Report.txt,"expertise. Constellation has training facilities
in Pennsylvania, New York and Illinois, in addition to our
Midwest-based fire response training center. For more
information on how we protect our employees, please
see the section on Health and Safety.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix38 Constellation 2022 Sustainability Report
Workforce
Health and Safety
Employee Well-Being
Talent Attraction, Development and Retention
Diversity, Equity and Inclusion
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix39 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"Talent Attraction, Development and Retention
Diversity, Equity and Inclusion
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix39 Constellation 2022 Sustainability Report
Health and Safety Across Constellation, we conduct industry benchmarking,
targeted self-assessments and performance monitoring
to drive continuous improvement. In addition, third-party
At Constellation, the health and safety (H&S) of our
safety audits are conducted at each generating facility every
workforce is an unwavering core value, and we work"
Constellation-2022-Sustainability-Report.txt,"afety Across Constellation, we conduct industry benchmarking,
targeted self-assessments and performance monitoring
to drive continuous improvement. In addition, third-party
At Constellation, the health and safety (H&S) of our
safety audits are conducted at each generating facility every
workforce is an unwavering core value, and we work
three years to confirm compliance to U.S. Occupational
to embed a robust culture of safety throughout our
Safety and Health Administration (OSHA) standards. Our
organization. While our workforce takes on a certain element"
Constellation-2022-Sustainability-Report.txt,"s through technology by
employee orientation and utilize leadership development testing innovative methods to improve safety performance.
programs to foster a company-wide safety culture. For example, we leverage thermal imaging to assist in
the detection of otherwise invisible problems using the
Teledyne FLIR ONE Pro tool. This thermal camera is used to
troubleshoot heating, ventilation and mechanical systems,
At Constellation, the health
find water damage and even screen employee temperatures
and safety of our workforce is"
Constellation-2022-Sustainability-Report.txt,"egrate safety training
safety performance is among the best in the industry[1] and
into our new employee orientation and utilize leadership
in 2021, our employee OSHA recordable rate was 0.08 per
development programs to foster a company-wide safety
200,000 work hours, a decrease of 53 percent compared
culture. In 2021, our employees received an estimated
to 2020. For more information on our safety performance,
450,000 hours of H&S training. We foster a proactive and
please see the KPI Appendix.
prevention-forward culture in our workforce to anticipate"
Constellation-2022-Sustainability-Report.txt,"our injury
prevention program. Reported events are thoroughly
investigated to ensure that preventive steps are put into 53%
place to prevent incidents in the future.
year-over-year decrease in employee
OSHA recordable rate compared to 2020
[1] Based on U.S. Bureau of Labor Statistics incidence rates of nonfatal occupational injuries and illnesses by industry and case types, 2020 (TABLE 1. Incidence rates of nonfatal occupational
injuries and illnesses by industry and case types, 2020 (bls.gov).
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix40 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"helping our employees maintain and
employees have access to up to 10 days of backup care
improve their health and our approach includes physical,
each calendar year.
emotional, social and financial well-being. We provide our
• Paid Leave: Constellation is committed to offering
employees and their families with resources and support
industry-leading paid leave benefits for new parents
in addition to comprehensive benefits and progressive
and working caregivers to help our employees balance work
workforce policies to help them thrive at work and at home."
Constellation-2022-Sustainability-Report.txt,"ccess to these racial pay equity. We also review hiring and promotion
health care services are rendered unavailable as a matter processes to neutralize any unconscious bias and embed
of law, Constellation lawfully will cover certain travel equal pay efforts into broader enterprise-wide equity
expenses and provide needed assistance to employees initiatives. These actions reflect our commitment to
so that they may travel and access needed care. create an environment where all employees can thrive
• Health and Wellness Benefits: Constellation has made and advance as equal members of the workforce. For"
Constellation-2022-Sustainability-Report.txt,"ccess needed care. create an environment where all employees can thrive
• Health and Wellness Benefits: Constellation has made and advance as equal members of the workforce. For
significant investments to help employees manage more information on our efforts to increase equity, please
chronic conditions like diabetes, musculoskeletal pain see the section on Diversity, Equity and Inclusion.
and other health risks such as cancer through proven • Tuition Reimbursement: Continued education leads to
clinical management support programs at no cost to a more engaged, skilled and productive workforce. We"
Constellation-2022-Sustainability-Report.txt,"to $10,000 annually for undergraduate or professional
financial wellness goals. In 2021, nearly 41 percent[1] of certification courses and up to $15,000 annually for
employees registered for the digital wellness platform, graduate courses.
and about three-fourths of registered employees took
• Employee and Labor Relations: We respect and
the health assessment. To encourage healthy living at
support the right of our employees to seek to unionize
home, the program is also available to spouses and
and around 30 percent of our workforce are covered"
Constellation-2022-Sustainability-Report.txt,"respect and
the health assessment. To encourage healthy living at
support the right of our employees to seek to unionize
home, the program is also available to spouses and
and around 30 percent of our workforce are covered
domestic partners.
under collective bargaining agreements (CBAs). In 2021,
Constellation negotiated four CBAs of the 22 currently in
effect. CBAs are negotiated in good faith to balance the
[1] Reflects percentage of combined Exelon and Constellation employees who registered
pre-company split. needs of the workforce with those of Constellation."
Constellation-2022-Sustainability-Report.txt,"ort the right of our employees to seek to unionize
home, the program is also available to spouses and
and around 30 percent of our workforce are covered
domestic partners.
under collective bargaining agreements (CBAs). In 2021,
Constellation negotiated four CBAs of the 22 currently in
effect. CBAs are negotiated in good faith to balance the
[1] Reflects percentage of combined Exelon and Constellation employees who registered
pre-company split. needs of the workforce with those of Constellation.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix41 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ees who registered
pre-company split. needs of the workforce with those of Constellation.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix41 Constellation 2022 Sustainability Report
Addressing COVID-19 Talent Attraction,
Due to the global COVID-19 pandemic, in 2020 and 2021, Development
we were confronted with the need to abruptly rethink how
and Retention
work is done and were challenged with how to continue
being an employer of choice and manage around-the-clock
workforce operations while protecting the health of our Our employees are our greatest asset and form the foundation"
Constellation-2022-Sustainability-Report.txt,"gy Environment Society Workforce Governance Appendix41 Constellation 2022 Sustainability Report
Addressing COVID-19 Talent Attraction,
Due to the global COVID-19 pandemic, in 2020 and 2021, Development
we were confronted with the need to abruptly rethink how
and Retention
work is done and were challenged with how to continue
being an employer of choice and manage around-the-clock
workforce operations while protecting the health of our Our employees are our greatest asset and form the foundation
workforce. This led to discussions with our employees of our success. Constellation aims to attract, develop and"
Constellation-2022-Sustainability-Report.txt,"at accommodations should be implemented to engage employees who will best serve and represent our
enhance work-life balance and improve flexibility in our work. customers, partners and communities. This is possible by
As of May 2022, individual teams are implementing new cultivating a workplace culture where all individuals can grow
work formats comprising various combinations of working and develop to contribute to their full potential.
in the office, at home or in a remote satellite location.
Approximately 40 percent of our workforce will continue Attracting Top Talent"
Constellation-2022-Sustainability-Report.txt,"nuclear sites awarded $200,000 in
college scholarships to underrepresented minorities at the
post-secondary level.
In 2022, we hired approximately 175 interns with finance,
computer science, business, engineering and other technical
majors. This pipeline program provides the interns the
opportunity to immerse themselves in the company culture
and assess cultural fit while giving Constellation managers
the opportunity to develop, mentor and evaluate the interns’
readiness for regular employment.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix42 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"rtunity
diversity and improving opportunities for veterans and
for full-time employment.
individuals with disabilities to cultivate a diverse pool of
qualified candidates. We participate in various recruiting
events and career fairs to broaden our recruitment
efforts, including attending the Navy Transition Assistance “ The power professionals of
Program, where we provide job skills assistance to the International Brotherhood
veterans transitioning to civilian life.
of Electrical Workers (IBEW)
At Constellation, our dynamic workforce development are proud of our partnership"
Constellation-2022-Sustainability-Report.txt,"itment
efforts, including attending the Navy Transition Assistance “ The power professionals of
Program, where we provide job skills assistance to the International Brotherhood
veterans transitioning to civilian life.
of Electrical Workers (IBEW)
At Constellation, our dynamic workforce development are proud of our partnership
strategy will help advance the skills of workers currently with Constellation as we come
underrepresented in the energy sector through career
together to build the skilled
awareness, equitable access and workforce skills"
Constellation-2022-Sustainability-Report.txt,"sition Assistance “ The power professionals of
Program, where we provide job skills assistance to the International Brotherhood
veterans transitioning to civilian life.
of Electrical Workers (IBEW)
At Constellation, our dynamic workforce development are proud of our partnership
strategy will help advance the skills of workers currently with Constellation as we come
underrepresented in the energy sector through career
together to build the skilled
awareness, equitable access and workforce skills
energy workforce of tomorrow"
Constellation-2022-Sustainability-Report.txt,"proud of our partnership
strategy will help advance the skills of workers currently with Constellation as we come
underrepresented in the energy sector through career
together to build the skilled
awareness, equitable access and workforce skills
energy workforce of tomorrow
advancement. In addition to our educational partnerships,
and lead the transition to a
Constellation actively participates on the board and
committees of various trade groups, including Chicago clean power future. Every day,
Women in Trades and Hire360. We also host mock interview America’s workforce grows"
Constellation-2022-Sustainability-Report.txt,"ns and build partnerships with our major allies and
more diverse, and the IBEW
partner contractors for talent recruitment. Examples of
is committed to working with
community training programs we engage with include:
Constellation to ensure that
• Chicago Women in Trades (CWIT)
every worker has a place in
• Hire360
today’s energy industry.”
• Syracuse Build
Lonnie R. Stephenson,
• Philadelphia Works: The Women in Nontraditional
IBEW International President
Careers (WINC) Trades Readiness Program
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix43 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ed to working with
community training programs we engage with include:
Constellation to ensure that
• Chicago Women in Trades (CWIT)
every worker has a place in
• Hire360
today’s energy industry.”
• Syracuse Build
Lonnie R. Stephenson,
• Philadelphia Works: The Women in Nontraditional
IBEW International President
Careers (WINC) Trades Readiness Program
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix43 Constellation 2022 Sustainability Report
Developing Our Talent
We are committed to preparing our workforce for the future and helping our employees develop competencies to progress"
Constellation-2022-Sustainability-Report.txt,"Trades (CWIT)
every worker has a place in
• Hire360
today’s energy industry.”
• Syracuse Build
Lonnie R. Stephenson,
• Philadelphia Works: The Women in Nontraditional
IBEW International President
Careers (WINC) Trades Readiness Program
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix43 Constellation 2022 Sustainability Report
Developing Our Talent
We are committed to preparing our workforce for the future and helping our employees develop competencies to progress
in their careers. We strive to continuously increase the knowledge and skills of our workforce through formal assessments,"
Constellation-2022-Sustainability-Report.txt,"d sustaining performance.
Supervisory Leadership Program is designed to strengthen and increase participants’ leadership effectiveness, build business
insight and industry perspective, as well as foster cross functional relationships.
Constellation Leadership Academy is a training program for Nuclear mid-level managers and directors designed to strengthen their
leadership knowledge and skills, support professional development and improve bench-strength to ensure excellence in plant performance.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix44 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"s. Employees are also encouraged to
our commitment to DEI is a foundational value and
continue their development by leveraging the available
an ethical obligation. We have created a DEI Center of
resources and opportunities.
Excellence to continuously strengthen our DEI commitments
The year-end review process provides managers and to meet the dynamic needs of our employees, customers
employees with the opportunity to focus on the employee's and communities. We respect and champion the diversity
impact and accomplishments for the year. The impact is of perspectives of our workforce and work to ensure an"
Constellation-2022-Sustainability-Report.txt,"year. The impact is of perspectives of our workforce and work to ensure an
measured by the employee's accomplishments in terms equitable and inclusive work environment for everyone. For
of driving results, demonstrating the right behaviors and more information, please visit Constellation's DEI website.
the ability to develop themselves and others. All exempt
and non-unionized/non-craft/non-exempt employees are
required to participate in our goal setting and year-end review
At Constellation, our
process. The introduction of workforce planning tools and"
Constellation-2022-Sustainability-Report.txt,"planning to ensure
we have a strong bench for critical leadership positions. The
talent planning process is aimed at providing an environment
for critical business talent conversations to help secure
long-term success for Constellation by ensuring that the
organization has a diverse and talented leadership team, now
and in the future. When evaluating an employee’s potential to
excel as a leader, we look more closely at various leadership
attributes that help predict performance in future roles.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix45 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ntribute at our greatest potential.
Position Diversity
Executive Board of
Employees[1] Management[1]
Committee[2] Directors[2]
White Female: 16% White Female: 14% White Female: 33% White Female: 22%
Ethnically or Racially Ethnically or Racially Ethnically or Racially Ethnically or Racially
Diverse Male: 13% Diverse Male: 9% Diverse Male: 11% Diverse Male: 11%
Ethnically or Racially Ethnically or Racially
Diverse Female: 4% Diverse Female: 2%
[1] As of December 31, 2021.
[2] As of July 31, 2022.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix46 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ernance structure through the DEI Center of Excellence and create a DEI Advisory Board centered
around advancing diversity of thought, eliminating barriers and creating opportunities for our employees by
establishing a culture of belonging.
Strategic Talent Sourcing
To be intentional in our sourcing efforts to attract talent and focus more effectively on diverse populations via
relationships, technology and manual efforts to increase diversity in our talent pipelines, applicant pools, interview
slates and hires. We will grow our diverse candidate pool through new and unique sources including our workforce"
Constellation-2022-Sustainability-Report.txt,"f belonging.
Strategic Talent Sourcing
To be intentional in our sourcing efforts to attract talent and focus more effectively on diverse populations via
relationships, technology and manual efforts to increase diversity in our talent pipelines, applicant pools, interview
slates and hires. We will grow our diverse candidate pool through new and unique sources including our workforce
development efforts. For more information, please see the section on Talent Attraction, Development and Retention.
Workforce Development"
Constellation-2022-Sustainability-Report.txt,", please see the section on Talent Attraction, Development and Retention.
Employee Resource Groups
Constellation is proud to support our employee resource groups (ERGs), which demonstrate our passion for enhancing DEI
across our organization. Currently, we have nine ERGs with 64 chapters across our operational territories, with participation
constantly growing. See below for examples of activities our ERGs completed in 2021. For more information about each of
our ERGs, please visit our website.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix47 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"icans and the U.S.
resourcefulness and generosity in the workplace with prison boom. Peach Bottom further celebrated Black History
Constellation’s vice president of human resources, and in May Month by publishing weekly newsletters that included quizzes
the chapter organized a panel discussion with female senior for prizes to keep employees engaged in learning throughout
leaders called “Ask for what you want, Get what you need” the month.
focused on better advocating for women in the workplace.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix48 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ly newsletters that included quizzes
the chapter organized a panel discussion with female senior for prizes to keep employees engaged in learning throughout
leaders called “Ask for what you want, Get what you need” the month.
focused on better advocating for women in the workplace.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix48 Constellation 2022 Sustainability Report
Governance
Corporate Governance
Ethics and Compliance
Risk Management
Supply Chain Management
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix49 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"tive officers. The committee
interests. We also consider a diversity of backgrounds and
also monitors and reviews leadership and succession
perspectives, including with respect to age, gender, race,
planning for executive roles.
place of residence and specialized experience. Currently,
22 percent of Board members are women and 11 percent For more information on the Board, its committees and how
are deemed to be racially diverse under NASDAQ rules. to contact the Board, please visit our website.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix50 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"upplier Code of Conduct
deliver on our purpose.
and requiring vendors and contractors to adhere to the
principles of the Code that are described in the Supplier
Code of Conduct. For more information, please see the
In 2021, 99 percent of section on Supply Chain Management.
employees completed required
training on the Code.
[1] Given the separation of Constellation and Exelon in the first quarter of 2022, the 2021 employee training and certifications were for the Exelon Code of Business Conduct.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix51 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"necessary to supply
minimize unexpected performance variances and support
our generation fleet. Nuclear fuel is obtained predominantly
growth initiatives. The Board of Director’s Audit and Risk
through long-term supply contracts, while natural gas
Committee provides ultimate oversight for our enterprise
is procured through a combination of long-term and
risk management processes and reviews and approves
short-term contracts, as well as spot-market purchases.
our internal audit risk assessment.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix52 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"latility.
Our strategy is to be 100 percent contractually covered
Supporting Diverse Suppliers
at least two years prior to a scheduled refueling year, to
be insulated from unforeseen market volatility. There are Constellation serves customers across the U.S., including
a limited number of firms around the world that provide some of the nation’s largest and most ethnically diverse
certain nuclear fuel services, which is why we are urging geographic areas. This means our supplier base, as well as
federal policymakers to work with industry to immediately our workforce and culture, must reflect the diversity of our"
Constellation-2022-Sustainability-Report.txt,"sity-certified
businesses are valued partners in our efforts to serve our
We were the first U.S.-based energy company to join CDP’s
customers, and we believe that partnership will help diverse
Supply Chain Leadership Collaboration, and our work
business enterprises develop and grow.
includes the development of voluntary, consensus-based
standards for evaluating the environmental attributes of
key materials and services provided to the industry.
~$300 million
spent with diverse suppliers in 2021
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix53 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"oration, and our work
business enterprises develop and grow.
includes the development of voluntary, consensus-based
standards for evaluating the environmental attributes of
key materials and services provided to the industry.
~$300 million
spent with diverse suppliers in 2021
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix53 Constellation 2022 Sustainability Report
Appendix
About This Report
2021 Electric Generation by Major Station
KPI Index
GRI Index
SASB Index
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix54 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"the environmental attributes of
key materials and services provided to the industry.
~$300 million
spent with diverse suppliers in 2021
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix53 Constellation 2022 Sustainability Report
Appendix
About This Report
2021 Electric Generation by Major Station
KPI Index
GRI Index
SASB Index
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix54 Constellation 2022 Sustainability Report
About This Report
Constellation’s 2022 Sustainability Report discusses our strategy, goals and initiatives for key environmental, social, workforce"
Constellation-2022-Sustainability-Report.txt,"wer Generators Standard. For more information, please visit the GRI Index
and the SASB Index.
We also seek annual assurance of our GHG emission inventory. Lloyd’s Register Quality Assurance, Inc. (LRQA), an accredited
GHG verifier, provided verification of our 2021 inventory to a reasonable assurance level in accordance with ISAE 3000 and
ISAE 3410 standards. The verification statement for our Scope 1 and 2 emissions is available here, while our Scope 3 verification
statement is available here.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix55 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"rumore, PA
8 pumped-storage 1,070 1,270 1,870 1,851 – – – – Pumped storage
Susquehanna River
units(intermediate)
Avoided GHG Emissions
Conowingo Darlington, MD
11 hydro units (baseload) Susquehanna River
571 2,162 1,673 2,097 (thousand Metric Tons CO 2e)[8] Run-of-river
777
Wind[9] Avoided GHG Emissions
703 units – 776 2,450 1,930 2,083 (thousand Metric Tons CO 2e)[8] –
51– 100% 882
Solar[9] Avoided GHG Emissions
11 units[10] – 586 937 1,123 667 (thousand Metric Tons CO 2e)[8] –
50.1 – 100% 166
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix56 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"1974 2054 in operation
50.00% River
Quad Cities Cordova, IL
1 1973 2032 Dry cask storage
2 BWR units (baseload) Mississippi 1,403 11,615 11,784 11,805 6,493 Open
2 1973 2032 in operation
75.00% River
R.E. Ginna[14] Ontario, NY Dry cask storage
288 2,497 2,166 3,192 495 Open 1 1970 2029
1 PWR (baseload) Lake Ontario in operation
Lower Alloways
Salem
Creek Twp., NJ 1 1977 2036 Dry cask storage
2 PWR units (baseload) 995 7,266 6,876 8,118 3,009 Open
Delaware 2 1981 2040 in operation
42.59%
Estuary
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix57 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"owned a 50.01% membership interest in CENG, a joint venture with EDF, which wholly owns the Calvert Cliffs and R.E. Ginna nuclear stations and Nine
Mile Point Unit 1, in addition to an 82% undivided ownership interest in Nine Mile Point Unit 2. CENG is 100% consolidated in our financial statements.
[15] S upplemented with water from the Wadesville Mine Pool and the Still Creek Reservoir at Tamaqua via the Schuylkill River, and the Delaware River via the Bradshaw Reservoir,
and Perkiomen Creek.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix58 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ndicator
Thousand metric GRI 305-1
Scope 1 GHGs 8,867 8,004 8,254
tons CO 2e SASB IF-EU-110a.1
Thousand metric GRI 305-1
Scope 1 Biogenic CO Emissions 825 709 309
2 tons CO 2e SASB IF-EU-110a.1
Thousand metric
Scope 2 (Location-Based) GHGs 418 397 409 GRI 305-2
tons COe
2
Thousand metric
Scope 2 (Market-Based) GHGs 121 175 94[3] GRI 305-2
tons COe
2
[3] Due to the increased retirement of EFECs from our nuclear plants in 2021, our market-based Scope 2 emissions decreased by 46% compared to 2020.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix59 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"depicted in Constellation Energy Corporation's and Constellation Energy Generation, LLC's (formerly Exelon Generation
Company, LLC) Form 10-K.
Other Significant Air Emissions
Disclosure Unit 2019 2020 2021 GRI/SASB Indicator
GRI 305-7
NO Emissions Metric tons 1,401 1,006 820
X IF-EU-120a.1
GRI 305-7
NO Emissions Intensity kg/MWh 0.007 0.006 0.005
X IF-EU-120a.1
GRI 305-7
SO Emissions Metric tons 175 75 74
X IF-EU-120a.1
GRI 305-7
SO Emissions Intensity kg/MWh 0.0009 0.0004 0.0004
X IF-EU-120a.1
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix60 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ers 51,244,841 45,052,717 52,807,159 GRI 303-4
GRI 303-5
Total Water Consumption Megaliters 962,447 655,604 678,542
IF-EU-140a.1
Environmental Compliance
Disclosure Unit 2019 2020 2021 GRI/SASB Indicator
Total Permit Non-Compliances Number 4 3 1 GRI 307-1
Air Number 1 0 0 –
Land Number 0 0 0 –
Water Number 3 3 1 IF-EU-140a.2
Total Notice of Violations Number 18 19 10 GRI 307-1
Air Number 15 17 7 –
Land Number 0 0 0 –
Water Number 3 2 3 IF-EU-140a.2
Total Reportable Spills Number 5 5 8 GRI 306-3
Workforce"
Constellation-2022-Sustainability-Report.txt,"mber 3 3 1 IF-EU-140a.2
Total Notice of Violations Number 18 19 10 GRI 307-1
Air Number 15 17 7 –
Land Number 0 0 0 –
Water Number 3 2 3 IF-EU-140a.2
Total Reportable Spills Number 5 5 8 GRI 306-3
Workforce
Diversity, Equity and Inclusion
Disclosure Unit 2021 GRI/SASB Indicator
All Employees
Female Number 2,389 GRI 405-1
People of Color Number 2,030 GRI 405-1
Aged <30 Number 1,293 GRI 405-1
Aged 30–50 Number 6,399 GRI 405-1
Aged >50 Number 4,004 GRI 405-1
Total Employees Number 11,696 GRI 405-1
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix61 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"/SASB Indicator
Average Turnover Rate for All Employees for Last 3 Years
Retirement Age Percent 5.14% GRI 401-1
Voluntary Percent 4.31% GRI 401-1
Non-Voluntary Percent 1.34% GRI 401-1
Collective Bargaining Agreements (CBAs)
Disclosure Unit 2021 GRI/SASB Indicator
All Employees
Total Employees Covered by CBAs Number 3,274 GRI 102-41
Total # of CBAs Number 22 GRI 102-41
# of CBAs New
Number 4 GRI 102-41
and Renewed in 2021
Total Employees Under CBAs
Number 1,592 GRI 102-41
New and Renewed in 2021
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix62 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"le Number 2 GRI 405-1
Percent Female Percent 22% GRI 405-1
Total Racially-Diverse Number 1 GRI 405-1
Percent Racially-Diverse Percent 11% GRI 405-1
Supplier Diversity
Disclosure Unit 2020 2021 GRI/SASB Indicator
Total Diverse Supplier Spend Million USD $334.90 $298.70 GRI 204-1
% of Total Supplier Spend Percent 13.64% 12.79% GRI 204-1
Political Contributions
Disclosure Unit 2021 GRI/SASB Indicator
Total Political Contributions Attributed
USD $424,341 GRI 415-1
to Exelon Generation/Constellation
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix63 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"mocratic State
Senate Campaign Committee USD $2,500 GRI 415-1
(Administrative acct.)
Independent Power Producers
USD $2,500 GRI 415-1
of New York PAC
NY State Republican
Assembly Campaign Committee USD $1,000 GRI 415-1
(Administrative acct.)
Morris Community Foundation USD $500 GRI 415-1
Kennedy for Senate USD $500 GRI 415-1
Friends of Palmesano USD $300 GRI 415-1
Cusick for Assembly E USD $300 GRI 415-1
Pam Helming for State Senate USD $300 GRI 415-1
Mannion for State Senate USD $100 GRI 415-1
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix64 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"bon Dividends USD $217,800 GRI 415-1
Republican Governors
USD $34,000 GRI 415-1
Public Policy Committee
Democratic Governors Association USD $25,000 GRI 415-1
Climate Solutions Foundation[1] USD $43,560 GRI 415-1
American Council for
USD $10,890 GRI 415-1
Capital Formation[1]
Equality Illinois[1] USD $2,178 GRI 415-1
Fairmount Fire Co.[1] USD $218 GRI 415-1
[1] Contributions have been pro-rated using the MMF allocation formula pre-separation with a rate of 43.56% allocated to Exelon Generation.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix65 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"nance > Supply Chain Management
(p. 52)
102-10: Significant changes to the
Exelon Separation Facts
organization and its supply chain
Constellation 2022 Sustainability Report:
102-11: Precautionary principle or approach
Governance > Risk Management (pg. 51–52)
Constellation 2022 Sustainability Report:
102-12: External initiatives
About Constellation > Our Business (p. 06–07)
Constellation 2022 Sustainability Report:
102-13: Membership of associations
About Constellation > Our Business (p. 06–07)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix66 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"e
102-24: Nominating and selecting (p. 166–171)
the highest governance body
Corporate Governance Committee Charter
Corporate Governance Principles
102-25: Conflicts of interest Corporate Governance Principles
Corporate Governance Committee Charter
102-31: Review of economic,
Constellation 2022 Sustainability Report:
environmental, and social topics
Governance > Corporate Governance (p. 49–50)
102-32: Highest governance body’s
The Constellation Board of Directors
role in sustainability reporting
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix67 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"Report as Constellation. For more
information on the separation, please visit the
Exelon website.
102-50: Reporting period January 1, 2021 - December 31, 2021
This is our inaugural Sustainability Report
as Constellation. Please see our former
parent company’s (Exelon) 2020 Corporate
102-51: Date of most recent report Sustainability Report for information about
the former Exelon Generation and Constellation
business units’ sustainability initiatives prior
to 2021.
102-52: Reporting cycle Annual
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix68 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"approach
GRI 103: Management Approach 2016 Clean Energy > Clean, Safe and Reliable
and its components
Energy (p. 19–21)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Clean Energy > Clean, Safe and Reliable
Energy (p. 19–21)
Innovation and Technology Enablement
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
GRI 103: Management Approach 2016 Clean Energy > Innovation and Technology
and its Boundary
Enablement (p. 22–23)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix69 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"3-1: Interactions with water Constellation 2022 Sustainability Report:
as a shared resource Environment > Water Management (p. 27–28)
303-2: Management of water Constellation 2022 Sustainability Report:
discharge-related impacts Environment > Water Management (p. 27–28)
GRI 303: Water and Effluents 2018
Constellation 2022 Sustainability Report:
303-3: Water withdrawal
Appendix > KPI Index (p. 58–64)
Constellation 2022 Sustainability Report:
303-4: Water discharge
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix70 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ustainability Report:
GRI 305: Emissions 2016 X X
and other significant air emissions Appendix > KPI Index (p. 58–64)
Energy Equity and Environmental Justice
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Society > Energy Equity and Environmental
and its Boundary
Justice (p. 33)
GRI 103: Management Approach 2016
Constellation 2022 Sustainability Report:
103-2: The management approach
Society > Energy Equity and Environmental
and its components
Justice (p. 33)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix71 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"of the material topic Constellation 2022 Sustainability Report:
and its Boundary Society > Public Safety (p. 36–37)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Society > Public Safety (p. 36–37)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Society > Public Safety (p. 36–37)
Health and Safety
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Society > Public Safety (p. 36–37)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Society > Public Safety (p. 36–37)
Health and Safety
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Health and Safety (p. 39)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"lity Report:
103-3: Evaluation of the management approach
Society > Public Safety (p. 36–37)
Health and Safety
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Health and Safety (p. 39)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Health and Safety (p. 39)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Health and Safety (p. 39)
403-1: Occupational health and Constellation 2022 Sustainability Report:
safety management system Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"3-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Health and Safety (p. 39)
403-1: Occupational health and Constellation 2022 Sustainability Report:
safety management system Workforce > Health and Safety (p. 39)
403-2: Hazard identification, risk Constellation 2022 Sustainability Report:
assessment, and incident investigation Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"p. 39)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Health and Safety (p. 39)
403-1: Occupational health and Constellation 2022 Sustainability Report:
safety management system Workforce > Health and Safety (p. 39)
403-2: Hazard identification, risk Constellation 2022 Sustainability Report:
assessment, and incident investigation Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-3: Occupational health services
Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"cupational health and Constellation 2022 Sustainability Report:
safety management system Workforce > Health and Safety (p. 39)
403-2: Hazard identification, risk Constellation 2022 Sustainability Report:
assessment, and incident investigation Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-3: Occupational health services
Workforce > Health and Safety (p. 39)
GRI 403: Occupational 403-5: Worker training on occupational Constellation 2022 Sustainability Report:
Health and Safety 2018 health and safety Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"onstellation 2022 Sustainability Report:
assessment, and incident investigation Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-3: Occupational health services
Workforce > Health and Safety (p. 39)
GRI 403: Occupational 403-5: Worker training on occupational Constellation 2022 Sustainability Report:
Health and Safety 2018 health and safety Workforce > Health and Safety (p. 39)
403-8: Workers covered by an occupational Constellation 2022 Sustainability Report:
health and safety management Workforce > Health and Safety (p. 39)"
Constellation-2022-Sustainability-Report.txt,"ng on occupational Constellation 2022 Sustainability Report:
Health and Safety 2018 health and safety Workforce > Health and Safety (p. 39)
403-8: Workers covered by an occupational Constellation 2022 Sustainability Report:
health and safety management Workforce > Health and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-9: Work-related injuries
Appendix > KPI Index (p. 58–64)
Constellation 2022 Sustainability Report:
403-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"and Safety (p. 39)
Constellation 2022 Sustainability Report:
403-9: Work-related injuries
Appendix > KPI Index (p. 58–64)
Constellation 2022 Sustainability Report:
403-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"3-10: Work-related ill health
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix72 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"ellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Employee Well-Being
103-1: Explanation of the material topic Constellation 2022 Sustainability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"ability Report:
and its Boundary Workforce > Employee Well-being (p. 40–41)
103-2: The management approach Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"3: Management Approach 2016
and its components Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"aluation of the management approach
Workforce > Employee Well-being (p. 40–41)
401-2: Benefits provided to full-time
Constellation 2022 Sustainability Report:
employees that are not provided to temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)
GRI 403: Occupational Constellation 2022 Sustainability Report:
403-6: Promotion of worker health
Health and Safety 2018 Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"temporary
Workforce > Employee Well-being (p. 40–41)
or part-time employees
GRI 401: Employment 2016
Constellation 2022 Sustainability Report:
401-3: Parental leave
Workforce > Employee Well-being (p. 40–41)
GRI 403: Occupational Constellation 2022 Sustainability Report:
403-6: Promotion of worker health
Health and Safety 2018 Workforce > Employee Well-being (p. 40–41)
Talent Attraction, Development and Retention
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Talent Attraction, Development"
Constellation-2022-Sustainability-Report.txt,"leave
Workforce > Employee Well-being (p. 40–41)
GRI 403: Occupational Constellation 2022 Sustainability Report:
403-6: Promotion of worker health
Health and Safety 2018 Workforce > Employee Well-being (p. 40–41)
Talent Attraction, Development and Retention
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Talent Attraction, Development
and its Boundary
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-2: The management approach
GRI 103: Management Approach 2016 Workforce > Talent Attraction, Development"
Constellation-2022-Sustainability-Report.txt,"ty 2018 Workforce > Employee Well-being (p. 40–41)
Talent Attraction, Development and Retention
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Talent Attraction, Development
and its Boundary
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-2: The management approach
GRI 103: Management Approach 2016 Workforce > Talent Attraction, Development
and its components
and Retention (p. 41–44)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Workforce > Talent Attraction, Development"
Constellation-2022-Sustainability-Report.txt,"1: Employment 2016
and employee turnover Appendix > KPI Index (p. 58–64)
We are committed to complying with all
required notice periods set forth in the U.S.
Department of Labor Worker Adjustment and
GRI 402: Labor Management 402-1: Minimum notice periods
Retraining Notification Act (WARN) and local
Relations 2016 regarding operational changes
and state-specific laws. As such, we notify all
impacted employees of operational changes
as soon as practical.
Constellation 2022 Sustainability Report:
Workforce > Talent Attraction, Development"
Constellation-2022-Sustainability-Report.txt,"ment and
GRI 402: Labor Management 402-1: Minimum notice periods
Retraining Notification Act (WARN) and local
Relations 2016 regarding operational changes
and state-specific laws. As such, we notify all
impacted employees of operational changes
as soon as practical.
Constellation 2022 Sustainability Report:
Workforce > Talent Attraction, Development
404-2: Programs for upgrading employee and Retention (p. 41–44)
skills and transition assistance programs
Constellation 2022 Sustainability Report:
GRI 404: Training and Eduction 2016 Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"es
and state-specific laws. As such, we notify all
impacted employees of operational changes
as soon as practical.
Constellation 2022 Sustainability Report:
Workforce > Talent Attraction, Development
404-2: Programs for upgrading employee and Retention (p. 41–44)
skills and transition assistance programs
Constellation 2022 Sustainability Report:
GRI 404: Training and Eduction 2016 Workforce > Employee Well-being (p. 40–41)
404-3: Percentage of employees Constellation 2022 Sustainability Report:
receiving regular performance and Workforce > Talent Attraction, Development"
Constellation-2022-Sustainability-Report.txt,"etention (p. 41–44)
skills and transition assistance programs
Constellation 2022 Sustainability Report:
GRI 404: Training and Eduction 2016 Workforce > Employee Well-being (p. 40–41)
404-3: Percentage of employees Constellation 2022 Sustainability Report:
receiving regular performance and Workforce > Talent Attraction, Development
career development reviews and Retention (p. 41–44)
Diversity, Equity and Inclusion
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Diversity, Equity and Inclusion"
Constellation-2022-Sustainability-Report.txt,"41)
404-3: Percentage of employees Constellation 2022 Sustainability Report:
receiving regular performance and Workforce > Talent Attraction, Development
career development reviews and Retention (p. 41–44)
Diversity, Equity and Inclusion
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Diversity, Equity and Inclusion
and its Boundary
(p. 44–47)
GRI 103: Management Approach 2016
Constellation 2022 Sustainability Report:
103-2: The management approach
Workforce > Diversity, Equity and Inclusion"
Constellation-2022-Sustainability-Report.txt,"t:
receiving regular performance and Workforce > Talent Attraction, Development
career development reviews and Retention (p. 41–44)
Diversity, Equity and Inclusion
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Workforce > Diversity, Equity and Inclusion
and its Boundary
(p. 44–47)
GRI 103: Management Approach 2016
Constellation 2022 Sustainability Report:
103-2: The management approach
Workforce > Diversity, Equity and Inclusion
and its components
(p. 44–47)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix73 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"1: Explanation of the material topic
Workforce > Diversity, Equity and Inclusion
and its Boundary
(p. 44–47)
GRI 103: Management Approach 2016
Constellation 2022 Sustainability Report:
103-2: The management approach
Workforce > Diversity, Equity and Inclusion
and its components
(p. 44–47)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix73 Constellation 2022 Sustainability Report
Disclosure Report Section or Direct Response
Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016 103-3: Evaluation of the management approach Workforce > Diversity, Equity and Inclusion"
Constellation-2022-Sustainability-Report.txt,"tion 2022 Sustainability Report
Disclosure Report Section or Direct Response
Constellation 2022 Sustainability Report:
GRI 103: Management Approach 2016 103-3: Evaluation of the management approach Workforce > Diversity, Equity and Inclusion
(p. 44–47)
405-1: Diversity of governance Constellation 2022 Sustainability Report:
bodies and employees Appendix > KPI Index (p. 58–64)
GRI 405: Diversity and
Equal Opportunity 2016
405-2: Ratio of basic salary and Constellation 2022 Sustainability Report:
remuneration of women to men Workforce > Employee Well-being (p. 40–41)"
Constellation-2022-Sustainability-Report.txt,"016 103-3: Evaluation of the management approach Workforce > Diversity, Equity and Inclusion
(p. 44–47)
405-1: Diversity of governance Constellation 2022 Sustainability Report:
bodies and employees Appendix > KPI Index (p. 58–64)
GRI 405: Diversity and
Equal Opportunity 2016
405-2: Ratio of basic salary and Constellation 2022 Sustainability Report:
remuneration of women to men Workforce > Employee Well-being (p. 40–41)
Constellation 2022 Sustainability Report:
406-1: Incidents of discrimination
GRI 406: Non-Discrimination 2016 Workforce > Diversity, Equity and Inclusion"
Constellation-2022-Sustainability-Report.txt,"nt (p. 51–52)
customer data
Supply Chain Management
Constellation 2022 Sustainability Report:
103-1: Explanation of the material topic
Governance > Supply Chain Management
and its Boundary
(p. 52)
Constellation 2022 Sustainability Report:
103-2: The management approach
GRI 103: Management Approach 2016 Governance > Supply Chain Management
and its components
(p. 52)
Constellation 2022 Sustainability Report:
103-3: Evaluation of the management approach Governance > Supply Chain Management
(p. 52)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix74 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ctices 2016 204-1: Proportion of spending on local suppliers Governance > Supply Chain Management
(p. 52)
Constellation 2022 Sustainability Report:
GRI 308: Supplier Environmental 308-1: New suppliers that were
Governance > Supply Chain Management
Assessment 2016 screened using environmental criteria
(p. 52)
Constellation 2022 Sustainability Report:
GRI 414: Supplier Social 414-1: New suppliers that were
Governance > Supply Chain Management
Assessment 2016 screened using social criteria
(p. 52)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix75 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"f non-compliance
Constellation 2022 Sustainability Report:
IF-EU-140a.2 associated with water quantity and/or quality
Appendix > KPI Index (p. 58–64)
permits, standards, and regulations
Description of water management risks
Constellation 2022 Sustainability Report:
IF-EU-140a.3 and discussion of strategies and practices
Environment > Water Management (p. 27–28)
to mitigate those risks
[1] All of the “Total Customers Served” reported in the Customers table are based in states with RPS standards.
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix76 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"ot reported
2. Commercial
3. Industrial customers
Typical monthly electric bill for residential
customers for:
IF-EU-240a.2 Not reported
1. 500 kWh
2. 1,000 kWh of electricity delivered per month
Number of residential customer electric
IF-EU-240a.3 disconnections for non-payment, percentage Not reported
reconnected within 30 days
Discussion of impact of external factors on
IF-EU-240a.4 customer affordability of electricity, including the Not reported
economic conditions of the service territory
Workforce Health and Safety"
Constellation-2022-Sustainability-Report.txt,"y
Customer electricity savings from
IF-EU-420a.3 Not reported
efficiency measures, by market
Nuclear Safety and Emergency Management
Total number of nuclear power units, broken
Constellation 2022 Sustainability Report:
IF-EU-540a.1 down by U.S. Nuclear Regulatory Commission
Society > Public Safety (p.36–37)
(NRC) Action Matrix Column
Description of efforts to manage nuclear Constellation 2022 Sustainability Report:
IF-EU-540a.2
safety and emergency preparedness Society > Public Safety (p.36–37)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix77 Constellation 2022 Sustainability Report"
Constellation-2022-Sustainability-Report.txt,"tomers
1. Length of transmission and distribution lines
IF-EU-000.C Not applicable to Constellation
2. Length of distribution lines
Total electricity generated, percentage by: Constellation 2022 Sustainability Report:
Appendix > KPI Index (p. 58–64)
IF-EU-000.D 1. Major energy source,
Constellation 2021 Form 10-K: Item 1.
2. Percentage in regulated markets Business (p. 12)
Constellation 2022 Sustainability Report:
IF-EU-000.E Total wholesale electricity purchased
Appendix > KPI Index (p. 58–64)
CEO Letter About Clean Energy Environment Society Workforce Governance Appendix"
Constellation-2023-Sustainability-Report.txt,"m, hazard identification procedures and
standards. We also advance our safety programs
training relevant to its operations. We expect all
We foster a proactive safety culture to anticipate through technology by testing innovative methods
employees to abide by our safety procedures,
and recognize potential hazards through our injury to improve safety performance.
and we consistently update our systems to
prevention program. Every employee and contract
drive continuous improvement. We also expect
worker is empowered to stop work if they see We integrate safety training into our new employee"
Constellation-2023-Sustainability-Report.txt,"mplement our sustainability and
Key Links
environmental objectives across our operations,
we work collaboratively across our business to
• Board & Committees
minimize our environmental impact, foster an
• Corporate Governance Principles
inclusive culture, and support our employees and
• Ethics and Governance
communities.
• Board Diversity Matrix
• 2023 Proxy Statement
Introduction Clean Energy Future Environment Social Governance49
Sustainability Report 2023
Maintaining Ethical
Business Conduct
We are driven by our value to “Act with Integrity,” All new employees are required to attest to investigate nuclear plant worker concerns."
Constellation-2023-Sustainability-Report.txt,"Regional Greenhouse Gas Initiative (RGGI). We electrification of the built environment and
and Policy Advocacy
support strict federal controls on air pollutants transportation.
and carbon pollution from power plants and
For decades, Constellation has advocated before encourage the U.S. Environmental Protection We were also a strategic venture investor in NET
federal, state and local policymakers to support Agency (EPA) to adopt rigorous standards. Power, LLC, which recently went public through
the enactment of comprehensive legislation that Additionally, we have an employee-funded a business combination with special purpose"
Constellation-2023-Sustainability-Report.txt,"ropy and Volunteerism 2022 Impact Overview
and philanthropy program:
Constellation’s positive impacts go beyond providing
clean, carbon-free energy to our customers. We create
good-paying, family-sustaining careers that contribute
to the economic development of the communities where
we live and work, in addition to the taxes we pay to local
governments to fund schools, fire, police and other public $ $7.9 million
services. We also actively invest in community development
philanthropic donations
Climate & Environment through philanthropic giving and employee volunteerism. We"
Constellation-2023-Sustainability-Report.txt,"t of which supported
Equity & Education
organizations, programs and events specifically targeted
to underrepresented and underserved populations. We 80,000 hours volunteered
Investing in education, STEM and workforce
encourage our employees to support their communities
development supporting employees’ communities
33
through service and charitable giving, and in 2022,
through service
states
employees volunteered nearly 80,000 hours of their
time and made an additional $4.6 million in charitable
contributions. Constellation’s Employee Charitable match"
Constellation-2023-Sustainability-Report.txt,"populations. We 80,000 hours volunteered
Investing in education, STEM and workforce
encourage our employees to support their communities
development supporting employees’ communities
33
through service and charitable giving, and in 2022,
through service
states
employees volunteered nearly 80,000 hours of their
time and made an additional $4.6 million in charitable
contributions. Constellation’s Employee Charitable match
$
$4.6 million
program provides up to $10,000 in annual matching gifts for
every employee, matching dollar for dollar to any charity of"
Constellation-2023-Sustainability-Report.txt,"e our employees to support their communities
development supporting employees’ communities
33
through service and charitable giving, and in 2022,
through service
states
employees volunteered nearly 80,000 hours of their
time and made an additional $4.6 million in charitable
contributions. Constellation’s Employee Charitable match
$
$4.6 million
program provides up to $10,000 in annual matching gifts for
every employee, matching dollar for dollar to any charity of
made by employees in charitable
Employee Philanthropy & the employee’s choice. Other employee programs include contributions"
Constellation-2023-Sustainability-Report.txt,"through service and charitable giving, and in 2022,
through service
states
employees volunteered nearly 80,000 hours of their
time and made an additional $4.6 million in charitable
contributions. Constellation’s Employee Charitable match
$
$4.6 million
program provides up to $10,000 in annual matching gifts for
every employee, matching dollar for dollar to any charity of
made by employees in charitable
Employee Philanthropy & the employee’s choice. Other employee programs include contributions
the Dollars for Doers program which supports employee"
Constellation-2023-Sustainability-Report.txt,"e
states
employees volunteered nearly 80,000 hours of their
time and made an additional $4.6 million in charitable
contributions. Constellation’s Employee Charitable match
$
$4.6 million
program provides up to $10,000 in annual matching gifts for
every employee, matching dollar for dollar to any charity of
made by employees in charitable
Employee Philanthropy & the employee’s choice. Other employee programs include contributions
the Dollars for Doers program which supports employee
Volunteerism
volunteerism up $1,000 for 100 hours per employee, and the"
Constellation-2023-Sustainability-Report.txt,"t Social Governance35
Sustainability Report 2023
Supporting Health
and Safety
We are dedicated to safety and operate all aspects of our businesses in a manner that protects the safety and health of our
employees, contractors, customers and the general public. Each business unit tracks KPIs to measure progress against
internal goals to enhance our safe working environment. The Nuclear Oversight Committee of the Board oversees the
management of health and safety performance across the enterprise.
Safety Management health and safety issues. We implement employee- as appropriate, to ensure that proactive steps are"
Constellation-2023-Sustainability-Report.txt,"y and staff from Legal, Audit and other teams. Safety and Health Administration (OSHA)
program, hazard identification procedures and
standards. We also advance our safety programs
training relevant to its operations. We expect all
We foster a proactive safety culture to anticipate through technology by testing innovative methods
employees to abide by our safety procedures,
and recognize potential hazards through our injury to improve safety performance.
and we consistently update our systems to
prevention program. Every employee and contract"
Constellation-2023-Sustainability-Report.txt,"m, hazard identification procedures and
standards. We also advance our safety programs
training relevant to its operations. We expect all
We foster a proactive safety culture to anticipate through technology by testing innovative methods
employees to abide by our safety procedures,
and recognize potential hazards through our injury to improve safety performance.
and we consistently update our systems to
prevention program. Every employee and contract
drive continuous improvement. We also expect
worker is empowered to stop work if they see We integrate safety training into our new employee"
Constellation-2023-Sustainability-Report.txt,"on of newly placed leaders. To development and improve bench-strength to workforce development efforts are tied to our
enhance the quality of feedback and coaching ensure excellence in plant performance. DEI strategy, please see the Embedding Diversity,
employees receive, leaders and employees can Equity and Inclusion Throughout Our Business
also access Constellation’s Coach2CARE toolkit Performance Management and section.
for guidance, tips and best practices for delivering Succession Planning
timely, quality feedback, and coaching to Employee Engagement and Labor"
Constellation-2023-Sustainability-Report.txt,"e, leaders and employees can Equity and Inclusion Throughout Our Business
also access Constellation’s Coach2CARE toolkit Performance Management and section.
for guidance, tips and best practices for delivering Succession Planning
timely, quality feedback, and coaching to Employee Engagement and Labor
address performance gaps and reinforce positive Managers are responsible for conducting
Relations
behaviors. ongoing check-ins, providing coaching and
giving feedback to their employees in a timely
Constellation conducted an employee"
Constellation-2023-Sustainability-Report.txt,"erformance gaps and reinforce positive Managers are responsible for conducting
Relations
behaviors. ongoing check-ins, providing coaching and
giving feedback to their employees in a timely
Constellation conducted an employee
New employees participate in an enterprise New manner. The year-end review process provides
engagement survey at the end of 2022 to gain
Hire Orientation to build early engagement and managers and employees13 with the opportunity insight into engagement and job satisfaction
learn about our company values. Throughout to review the employee’s impact on the business, within our workforce. The results showed an"
Constellation-2023-Sustainability-Report.txt,"t employees and their families. leaders and employees to find a solution that
Employees and their families have access to works best for them, and it is the responsibility
• Careers digital physical therapy, expert medical opinion of the manager to consider job requirements,
• Community and cancer care services, a diabetes management performance history, individual work styles, quality
• Workforce Development program, digital and virtual mental health of communication, professional development,
resources, an employee assistance program that feedback and moments that matter when coming"
Constellation-2023-Sustainability-Report.txt,"ysical therapy, expert medical opinion of the manager to consider job requirements,
• Community and cancer care services, a diabetes management performance history, individual work styles, quality
• Workforce Development program, digital and virtual mental health of communication, professional development,
resources, an employee assistance program that feedback and moments that matter when coming
includes seven no-cost visits per topic per year, to a decision. We believe there are many benefits
Employee Wellbeing"
Constellation-2023-Sustainability-Report.txt,"4/7 nurse line. Employees are also eligible current employees, and enhancing our ability to
employees to care for themselves and their
for fitness cost reimbursement and fitness attract and retain top talent.
families now and in the future. Company-provided
discounts.
benefits include comprehensive medical, dental
and vision benefits, including a robust wellbeing
At Constellation, we believe that everyone
program; disability and life insurance; 401(k)
should have access to health care services,
with company match; employee stock purchase"
Constellation-2023-Sustainability-Report.txt,"dure or service
benefits to represented employees.
Introduction Clean Energy Future Environment Social Governance42
Sustainability Report 2023
Embedding Diversity, Equity and
Inclusion Throughout Our Business
Constellation operates in a world rich in diversity— In 2022, Constellation established our core values, on our DEI strategy, provides feedback on the 9
inclding race, ethnicity, gender identification, broadened our understanding of workplace implementation of DEI initiatives and serves as
sexual orientation, abilities, experience and diversity to be more inclusive based on employee a champion for our DEI progress. In addition,"
Constellation-2023-Sustainability-Report.txt,"3
Embedding Diversity, Equity and
Inclusion Throughout Our Business
Constellation operates in a world rich in diversity— In 2022, Constellation established our core values, on our DEI strategy, provides feedback on the 9
inclding race, ethnicity, gender identification, broadened our understanding of workplace implementation of DEI initiatives and serves as
sexual orientation, abilities, experience and diversity to be more inclusive based on employee a champion for our DEI progress. In addition,
thought. DEI at Constellation strengthens our feedback and updated our DEI performance Constellation has four Leadership Councils that Employee Resource Groups (ERGs)"
Constellation-2023-Sustainability-Report.txt,"n addition,
thought. DEI at Constellation strengthens our feedback and updated our DEI performance Constellation has four Leadership Councils that Employee Resource Groups (ERGs)
ability to achieve our vision by: goal to focus on belonging. These actions not empower diverse talent to work on advancing their
only reinforce our commitment to our core career goals. In our Commercial organization, 35
values, but also increase accountability for every Culture Ambassadors support leaders in planning,
employee and leader in our organization to foster tracking and executing DEI goals."
Constellation-2023-Sustainability-Report.txt,"stellation’s DEI Center of Excellence from across the business. The Communities will
employees who will best understand
continuously strengthens our strategy to meet collaborate to share best practices, help define
and serve our customers, partners and
the dynamic needs of our employees, customers strategies, and amplify current DEI and workforce
communities. ERG chapters nationally
and communities. Established in early 2023, our development efforts.
DEI Advisory Board, a cross-functional group
comprised of employees from all nine Employee"
Constellation-2023-Sustainability-Report.txt,"year-
round activities to address and support DEI in the workplace and
Equity and Belonging
our communities. Collaborators include Out & Equal, DisabilityIn,
National Organization on Disability, Women in Nuclear, Hispanics
To eliminate barriers to participation and create opportunities for
in Energy and the Center for Energy Workforce Development. We
our employees by establishing a culture of belonging.
Introduction Clean Energy Future Environment Social Governance44
Sustainability Report 2023
Employee Resource Groups Han, an anchor at local TV news station 6ABC in Workforce Diversity Our Commitment to Equity"
Constellation-2023-Sustainability-Report.txt,"he
As a component of our commitment to equity in
colleagues, create allies and move us all forward in
diverse American experience.
Gender Identity all our actions, we conduct an annual analysis on
ensuring a diverse and inclusive culture. Currently,
gender and racial pay equity. We also review hiring
we have nine ERGs with 67 chapters across our
In addition to ERGs, Constellation hosts a variety Female
and promotion processes to counter unconscious
operational territories, with three additional
of Employee Interest Groups based on employee Male"
Constellation-2023-Sustainability-Report.txt,"etter understand progress toward our
Black or African
people thrive and support organizations in internal goals and identify areas of opportunity.
Key Links
American
creating a culture of belonging for all. For additional workforce diversity metrics, please
Hispanic or Latino
see the Social section of our ESG Data Index &
• Our Commitment to DEI
Native Hawaiian or
In honor of Asian American and Pacific Islander Factsheet.
• DEI
Other Pacific Islanders
Heritage Month, our Asian American Resource
• Employee Resource Groups"
Constellation-2023-Sustainability-Report.txt,"confidential information, bribery and
Ethics Office email box and 24-hour Ethics Helpline
corruption, political contributions, and competing • Code of Business Conduct
(including anonymous reporting), for reporters to
with integrity. We also maintain policies against • Supplier Code of Conduct
voice concerns or ask questions through a phone
discrimination, harassment and retaliation, and • Ethics and Governance
and web portal option. We also have a Nuclear
sexual harassment. • Ethics Help Line
Employee Concerns Program to receive and"
Constellation-2023-Sustainability-Report.txt,"tents
01 / Introducing Constellation 07 / Clean Energy Future 31 / Social
Powering America’s Clean, Carbon-Free Energy Future Uplifting and Strengthening Our Communities
01 / About This Report
and Our People
08 / Generating Reliable, Equitable and Carbon-Free Electricity
02 / A Message From Our CEO
16 / Supporting Our Customers’ Clean Energy Transition 32 / Engaging With Communities
04 / Our Sustainable Business Strategy
19 / Investing in a Clean Energy Economy 35 / Supporting Health and Safety
38 / Building a World-Class Workforce"
Constellation-2023-Sustainability-Report.txt,"upstate New York, diversity, equity and inclusion perform better
which recently became the nation’s first nuclear- in terms of operational excellence, customer
We launched our company with a commitment to
powered hydrogen production facility of its size. retention and financial results. Since separation,
continue investing in the communities we serve.
Subject to regulatory support, we expect to invest we have hired more than 2,000 new employees
In our first full year, Constellation contributed
$900 million over the next three years to expand with a focus on building a workforce that reflects"
Constellation-2023-Sustainability-Report.txt,"than 2,000 new employees
In our first full year, Constellation contributed
$900 million over the next three years to expand with a focus on building a workforce that reflects
$7.9 million to nonprofits, with 87 percent of
clean hydrogen production to help clean up all our communities equitably. During that time,
our donations aimed at underrepresented and
difficult-to-decarbonize industries, like agriculture, we have increased the number of women in our
underserved communities. In addition, our
aviation and long-distance trucking. workforce by more than 5 percent and the number"
Constellation-2023-Sustainability-Report.txt,"ially diverse employees by 10
hours and contributed $4.6 million to charitable
Last year, Constellation also met its goal to provide percent, and we plan to continue this progress.
organizations in 2022.
100 percent of our commercial and industrial
customers with detailed data to help them track Reflecting on our first year, I remain convinced that
their GHG impact. As a next step, we have invested Our philanthropic priorities include building an Constellation creates a unique value that cannot
in the development of an hourly carbon-free equitable future through education and workforce be matched in the marketplace. We have the"
Constellation-2023-Sustainability-Report.txt,"st
produced clean energy every hour of every day. math (STEM), as well as skilled tradespeople. carbon-free nuclear fleet and our customer-
Constellation supports programs that provide facing business provide us with unparalleled
In June, we also announced our pending scholarships and support to students pursuing opportunities to grow clean energy supply,
acquisition of a 44 percent ownership stake in the STEM degrees and training. Our Powering Change decarbonize other businesses and industries
South Texas Project Electric Generating Station, a workforce development program, launched last and drive economic growth and prosperity in the"
Constellation-2023-Sustainability-Report.txt,"olders by combining next-generation
producer of clean, carbon-free energy in the energy products and services with the nation’s
country. Headquartered in Baltimore, Maryland, top-producing fleet of carbon-free generation
Constellation operates in 48 U.S. states, the assets. Our superior operational performance,
District of Columbia, Canada and the United nearly two decades of best-in-industry nuclear
Kingdom. Our business is supported by our skilled capacity factors and a strong customer-facing
workforce of over 13,000 employees. business enable us to be a leader in the clean"
Constellation-2023-Sustainability-Report.txt,"Sustainability Report 2023
Energy Equity and Constellation is also working to bring benefits The emissions-free nature of our nuclear fleet also provides important local air quality benefits
of the clean energy transition to communities to disadvantaged communities that have traditionally suffered from environmental injustices and
Environmental Justice
across the country through our investments poor environmental health related to the burning of fossil fuels. For instance, a recent study by the
in local businesses, workforce development, Brattle Group showed that shutting down four Illinois nuclear plants would result in an increase"
Constellation-2023-Sustainability-Report.txt,"Energy, has made financial commitments under the
Chicago, in collaboration with Swift Current Energy, to help meet
organizations. For instance, as part of the ongoing World Resources agreement to help fund job training, apprenticeships, educational
the mayor’s commitment to purchase renewable energy for all
Institute GHG Protocol standards update process, we submitted and other programs in Chicago that focus on the development of
City facilities and operations by 2025, making Chicago one of the
a detailed proposal for improving Scope 2 emissions accounting a diverse and sustainability-focused workforce."
Constellation-2023-Sustainability-Report.txt,"ial, environmental and economic progress.
Our corporate citizenship and philanthropy program is built 87% support
upon three pillars.
for organizations, programs and events
targeting underrepresented
In 2022, Constellation provided $7.9 million in philanthropic and underserved populations
donations across 33 states—87 percent of which supported
Equity & Education
organizations, programs and events specifically targeted
to underrepresented and underserved populations. We 80,000 hours volunteered
Investing in education, STEM and workforce"
Constellation-2023-Sustainability-Report.txt,"mmitted for scholarships over 10 years, supporting
opportunities for underrepresented and underserved communities. Energy to Educate STEM education awards since the program’s unrepresented and underserved students across the U.S.
inception in 2010.
Constellation partners with universities, colleges and nonprofit
$210,000
organizations to help young people attain careers in energy
$
and STEM fields through the Constellation Scholars program.
to be granted in scholarship awards over an eight-year
Constellation Scholars intersects with our workforce development 245 community education"
Constellation-2023-Sustainability-Report.txt,"s, maintenance and
section of our ESG Data Index & Factsheet. consistently meet or exceed safety requirements technical disciplines are accredited by National
from the NRC and INPO. Nuclear Accrediting Board and taught by INPO-
Nuclear Public Health certified instructors. Initial training programs last
Our nuclear operations also receive independent from nine months for skilled workers and up to 18
and Safety
oversight from Independent Nuclear Safety months for NRC-licensed nuclear control room
Review Boards, which review each plant twice operators. After initial training, our workforce"
Constellation-2023-Sustainability-Report.txt,"on’s plants have already permanently
shut down, and we submitted decommissioning
plans to the NRC, including decommissioning Key Links
cost estimates. Constellation currently operates
21 nuclear generating reactors, and although • Nuclear safety
we are many years away from completing • Decommissioning
decommissioning at these sites, we will continue • Nuclear Oversight Committee Charter
Introduction Clean Energy Future Environment Social Governance38
Sustainability Report 2023
Building a World–
Class Workforce"
Constellation-2023-Sustainability-Report.txt,"already permanently
shut down, and we submitted decommissioning
plans to the NRC, including decommissioning Key Links
cost estimates. Constellation currently operates
21 nuclear generating reactors, and although • Nuclear safety
we are many years away from completing • Decommissioning
decommissioning at these sites, we will continue • Nuclear Oversight Committee Charter
Introduction Clean Energy Future Environment Social Governance38
Sustainability Report 2023
Building a World–
Class Workforce
Constellation aims to attract, retain and advance a world-class workforce that effectively serves our"
Constellation-2023-Sustainability-Report.txt,"used
Business section.
efforts, we attended over 60 campus events and
organizations, including DisabilityIn, Recruit
career fairs at various universities and technical
Military, Society of Women Engineers and
schools. We also attended several military and
National Society of Black Engineers. Through
veterans career events, such as the Corporate
these collaborations, we participate in mentoring
Gray Military Virtual Fair, Recruit Military Job Fair
programs, conferences, career fairs and industry
and the Center for Energy Workforce Development"
Constellation-2023-Sustainability-Report.txt,"of Black Engineers. Through
veterans career events, such as the Corporate
these collaborations, we participate in mentoring
Gray Military Virtual Fair, Recruit Military Job Fair
programs, conferences, career fairs and industry
and the Center for Energy Workforce Development
events to recruit interns and full-time employees.
Troops to Energy Career Fair. In 2022, we hired
2,046 employees and 209 interns.
Introduction Clean Energy Future Environment Social Governance39
Sustainability Report 2023
Workforce Development Our flagship partners are Chicago Women in For more information on our community"
Constellation-2023-Sustainability-Report.txt,"Development
events to recruit interns and full-time employees.
Troops to Energy Career Fair. In 2022, we hired
2,046 employees and 209 interns.
Introduction Clean Energy Future Environment Social Governance39
Sustainability Report 2023
Workforce Development Our flagship partners are Chicago Women in For more information on our community
Trades, SkillsUSA, National Urban League, Vehicles development and STEM education initiatives,
for Change and INROADS. please see the Engaging with Communities
section and for additional workforce metrics,"
Constellation-2023-Sustainability-Report.txt,"tainability Report 2023
Workforce Development Our flagship partners are Chicago Women in For more information on our community
Trades, SkillsUSA, National Urban League, Vehicles development and STEM education initiatives,
for Change and INROADS. please see the Engaging with Communities
section and for additional workforce metrics,
In addition to the above, Constellation works with please see the Social section of our ESG Data
various community training, high school, technical Index & Factsheet.
We develop our future workforce by focusing on"
Constellation-2023-Sustainability-Report.txt,"ols and pre-apprenticeship programs
three main areas: elevating career awareness by
to provide exposure and access for populations
promoting STEM and energy career pathways;
Talent Development and
with historically limited access to careers within
fostering equitable access by reducing and
the energy sector. Constellation also participates
Retention
eliminating barriers; and advancing the skills of
in several early career development programs for
workers by investing in training, reskilling and
underrepresented and underserved communities. We strive to prepare our workforce for the future"
Constellation-2023-Sustainability-Report.txt,"and energy career pathways;
Talent Development and
with historically limited access to careers within
fostering equitable access by reducing and
the energy sector. Constellation also participates
Retention
eliminating barriers; and advancing the skills of
in several early career development programs for
workers by investing in training, reskilling and
underrepresented and underserved communities. We strive to prepare our workforce for the future
upskilling programs. To advance this strategy, in
Through our nuclear Local Workforce Development and help our employees develop competencies to"
Constellation-2023-Sustainability-Report.txt,"ng the skills of
in several early career development programs for
workers by investing in training, reskilling and
underrepresented and underserved communities. We strive to prepare our workforce for the future
upskilling programs. To advance this strategy, in
Through our nuclear Local Workforce Development and help our employees develop competencies to
2023, Constellation launched Powering Change,
Site investments, each nuclear site is granted progress in their careers. We work to continuously
a $1 million workforce development program that"
Constellation-2023-Sustainability-Report.txt,"ment programs for
workers by investing in training, reskilling and
underrepresented and underserved communities. We strive to prepare our workforce for the future
upskilling programs. To advance this strategy, in
Through our nuclear Local Workforce Development and help our employees develop competencies to
2023, Constellation launched Powering Change,
Site investments, each nuclear site is granted progress in their careers. We work to continuously
a $1 million workforce development program that
$25,000 to invest in scholarships and educational expand the knowledge and skills of our workforce"
Constellation-2023-Sustainability-Report.txt,"ance40
Sustainability Report 2023
Conducted by third parties, leadership Leadership Academy are training programs annually and enables long-term success for
assessments are used to support people leaders specifically designed for nuclear first-line and Constellation.
in identifying and addressing developmental mid-level managers and directors to strengthen
opportunities, as well as to support and accelerate their leadership skills, support professional For more information on how our talent and
the integration of newly placed leaders. To development and improve bench-strength to workforce development efforts are tied to our"
Constellation-2023-Sustainability-Report.txt,"erformance gaps and reinforce positive Managers are responsible for conducting
Relations
behaviors. ongoing check-ins, providing coaching and
giving feedback to their employees in a timely
Constellation conducted an employee
New employees participate in an enterprise New manner. The year-end review process provides
engagement survey at the end of 2022 to gain
Hire Orientation to build early engagement and managers and employees13 with the opportunity insight into engagement and job satisfaction
learn about our company values. Throughout to review the employee’s impact on the business, within our workforce. The results showed an"
Constellation-2023-Sustainability-Report.txt,"tes both centralized action
support formal development programs. Individual Development Plans. These suggestions for organization-wide issues and leader-led action
drive employees’ learning and growth and support for areas unique to their own work groups and/or
We also implement programs to help our leaders them in achieving their career objectives. business areas.
develop and strengthen their capabilities,
including the Emerging Leaders Program, THRIVE, To assist in the ongoing development and
Constellation’s Leadership Development Program advancement of our own workforce, we maintain"
Constellation-2023-Sustainability-Report.txt,"n-unionized/non-craft/non-exempt
employees are required to participate in our goal setting and year-
end review process.
Introduction Clean Energy Future Environment Social Governance41
Sustainability Report 2023
We respect the right of our employees to seek certification courses and up to $15,000 annually that is not available in-network within 100 miles
to unionize or not to unionize, and around 25 for graduate courses, adoption assistance, legal of a covered participant’s home. Reimbursement
percent of our workforce is covered under insurance, and backup child and elder care limits follow Internal Revenue Service guidelines"
Constellation-2023-Sustainability-Report.txt,"ing agreements (CBAs). In services.14 Employees are eligible for paid time off for lodging, transportation and companions with a
2022, Constellation negotiated one CBA of the for vacation, holidays, sick days, primary caregiver maximum of $4,000 per event.
21 currently in effect. CBAs are negotiated or leave for a family member with a critical health
extended in good faith to balance the needs of the condition and parental leave, including up to 16 At the end of 2021, we introduced an Alternate
workforce with those of Constellation. weeks for birthing mothers and up to eight weeks Work Arrangements Policy to give our employees"
Constellation-2023-Sustainability-Report.txt,"and we offer a variety of resources and leaders. The goal of the policy is to empower
Key Links to help support employees and their families. leaders and employees to find a solution that
Employees and their families have access to works best for them, and it is the responsibility
• Careers digital physical therapy, expert medical opinion of the manager to consider job requirements,
• Community and cancer care services, a diabetes management performance history, individual work styles, quality
• Workforce Development program, digital and virtual mental health of communication, professional development,"
Constellation-2023-Sustainability-Report.txt,"Commercial organization, 35
values, but also increase accountability for every Culture Ambassadors support leaders in planning,
employee and leader in our organization to foster tracking and executing DEI goals.
Integrating diversity as a business a workplace culture that upholds these values.
imperative and core value. At Constellation, managers and employees have In January 2023, our DEI Center of Excellence
individual DEI performance goals to maintain launched a DEI Community of Practice and
accountability for driving DEI within our business.15 Workforce Development Community of Practice"
Constellation-2023-Sustainability-Report.txt,"ance goals to maintain launched a DEI Community of Practice and
accountability for driving DEI within our business.15 Workforce Development Community of Practice
comprised of Constellation representatives
Attracting, retaining and advancing
67
Constellation’s DEI Center of Excellence from across the business. The Communities will
employees who will best understand
continuously strengthens our strategy to meet collaborate to share best practices, help define
and serve our customers, partners and
the dynamic needs of our employees, customers strategies, and amplify current DEI and workforce"
Constellation-2023-Sustainability-Report.txt,"on-based program that brings together a
diverse and inclusive cohort of high-potential Senior Managers and
For more information on how we embed DEI in our community
Strategic Talent Sourcing: Directors to prepare them for higher-level positions. THRIVE will
development and talent acquisition programs, please see the
foster equity in experiences through an accelerated development
Engaging With Communities and Building a World-Class
pathway that includes leadership assessments, virtual trainings,
Workforce sections."
Constellation-2023-Sustainability-Report.txt,"talent acquisition programs, please see the
foster equity in experiences through an accelerated development
Engaging With Communities and Building a World-Class
pathway that includes leadership assessments, virtual trainings,
Workforce sections.
To source talent with an enhanced focus on diverse populations
in-person courses and seminars, individual coaching and strategic
t hrough relationships, technology and intentional practices.
leadership challenges. The program will address how to lead a
diverse workforce, barriers facing diverse leaders, and pathways to"
Constellation-2023-Sustainability-Report.txt,"mmunities and Building a World-Class
pathway that includes leadership assessments, virtual trainings,
Workforce sections.
To source talent with an enhanced focus on diverse populations
in-person courses and seminars, individual coaching and strategic
t hrough relationships, technology and intentional practices.
leadership challenges. The program will address how to lead a
diverse workforce, barriers facing diverse leaders, and pathways to
Building Trades Diversity Pledge
allyship and belonging.
Workforce Development:"
Constellation-2023-Sustainability-Report.txt,"dge also sets standards to
u nderrepresented in the energy sector.
emerging topics that included Gender Identities and Belonging
eliminate bias and create a culture of belonging in all aspects
and Neurodiversity to encourage dialogue on current issues, and
of recruitment, hiring, training and retention practices.
our Executive DEI learning experience and awareness education
Signatories agree to report annually on the engagement,
initiative is designed to transform leaders’ and teams’ ability to
Supplier Diversity relationships formed with community leaders and workforce"
Constellation-2023-Sustainability-Report.txt,"ions dedicated to
o f our business.
professional development, community engagement and advocacy
for underrepresented populations. Through these strategic
collaborations, our ERGs and interest groups engage in year-
round activities to address and support DEI in the workplace and
Equity and Belonging
our communities. Collaborators include Out & Equal, DisabilityIn,
National Organization on Disability, Women in Nuclear, Hispanics
To eliminate barriers to participation and create opportunities for
in Energy and the Center for Energy Workforce Development. We"
Constellation-2023-Sustainability-Report.txt,"year-
round activities to address and support DEI in the workplace and
Equity and Belonging
our communities. Collaborators include Out & Equal, DisabilityIn,
National Organization on Disability, Women in Nuclear, Hispanics
To eliminate barriers to participation and create opportunities for
in Energy and the Center for Energy Workforce Development. We
our employees by establishing a culture of belonging.
Introduction Clean Energy Future Environment Social Governance44
Sustainability Report 2023
Employee Resource Groups Han, an anchor at local TV news station 6ABC in Workforce Diversity Our Commitment to Equity"
Constellation-2023-Sustainability-Report.txt,"le of Color
color, religion, sex, national origin, disability, age
shaped how ERGs will operate in the coming
in IT, Women in IT and ECO, an interest group at
or any other protected characteristics, as stated
year. Last year, the Constellation Latino Network
Constellation related to sustainability.
in Constellation’s Policy Against Discrimination,
celebrated Hispanic Heritage Month by facilitating Age Group
Harassment and Retaliation, and reinforced in
a fireside chat with CEO Joe Dominguez and
Workforce Diversity Metrics"
Constellation-2023-Sustainability-Report.txt,"to sustainability.
in Constellation’s Policy Against Discrimination,
celebrated Hispanic Heritage Month by facilitating Age Group
Harassment and Retaliation, and reinforced in
a fireside chat with CEO Joe Dominguez and
Workforce Diversity Metrics
Chief Diversity Officer Ray Stringer. These leaders Aged <30 our Equal Employment Opportunities Policy and
shared their personal experiences and thoughts on Constellation strives to maintain a diverse Aged 30-50 Workplace Accommodations Policy. We also
Hispanic heritage and the importance of DEI within workforce and increase diverse representation at Aged >50 prohibit any form of sexual harassment, as stated"
Constellation-2023-Sustainability-Report.txt,"importance of DEI within workforce and increase diverse representation at Aged >50 prohibit any form of sexual harassment, as stated
in our Policy Against Sexual Harassment, and we
Constellation and in our communities. all levels of our organization. Between the date
provide mandatory training on sexual harassment
of our separation from Exelon in February 2022
prevention on an annual basis. These actions
Additionally, five leaders from the Pride ERG and the end of that year, the number of women
attended the Out & Equal conference to learn best in our total workforce increased by 5.4 percent Racial/Ethnic Group reflect our commitment to create an environment"
Constellation-2023-Sustainability-Report.txt,"ent
of our separation from Exelon in February 2022
prevention on an annual basis. These actions
Additionally, five leaders from the Pride ERG and the end of that year, the number of women
attended the Out & Equal conference to learn best in our total workforce increased by 5.4 percent Racial/Ethnic Group reflect our commitment to create an environment
where all employees can thrive and advance as
practices on workplace equality, share experiences and the number of ethnically or racially diverse
American Indian or equal members of the workforce."
Constellation-2023-Sustainability-Report.txt,"ally diverse
American Indian or equal members of the workforce.
and build our Constellation network. Out & Equal individuals increased by 10 percent. We leverage
Alaska Native
is the premier organization working exclusively technology dashboards to track key performance
Asian
on LGBTQ+ workplace equality to help LGBTQ+ indicators, better understand progress toward our
Black or African
people thrive and support organizations in internal goals and identify areas of opportunity.
Key Links
American
creating a culture of belonging for all. For additional workforce diversity metrics, please"
Constellation-2023-Sustainability-Report.txt,"rds for ethical In 2022, we spent 19 percent of our total supplier
and equity into our supply chain as part of our conduct with which managed suppliers, their spend with diverse suppliers. We will leverage best
purpose to accelerate the transition to a carbon- subcontractors and their respective workforces practices and expand education and evaluation
free future. Our contractors, consultants, suppliers must comply when working with Constellation. internally across Constellation, and externally
and vendors (collectively, our suppliers) help us Suppliers must ensure their workforce, as with supplier diversity councils and external"
Constellation-2024-Sustainability-Report.txt,"policies increasing the increasing demand, the retirement of dispatchable fossil fuel
Nuclear Energy Highest in transparency and reliability of climate-related disclosures and assets and the expansion of intermittent, renewable generation
a Decade, Gallup.
risks. resources.
13 Leppert, Rebecca and Kennedy,
Brian. (2023, August 18). We provide our employees with opportunities to advocate for the Recent polls have found that Americans’ support for nuclear Pew Research:
Growing share of Americans
favor more nuclear power. Pew policies we support. Our employee advocacy group, Constellation energy is at the highest levels seen in a decade. For instance,"
Constellation-2024-Sustainability-Report.txt,"nnedy,
Brian. (2023, August 18). We provide our employees with opportunities to advocate for the Recent polls have found that Americans’ support for nuclear Pew Research:
Growing share of Americans
favor more nuclear power. Pew policies we support. Our employee advocacy group, Constellation energy is at the highest levels seen in a decade. For instance,
57%
Research Center. Nation, empowers employees with tools and opportunities to Potential Energy found that 61 percent of Americans support the
advocate for clean energy policies. Constellation’s employee use of the latest nuclear technologies to generate electricity.11"
Constellation-2024-Sustainability-Report.txt,"aceted approach to track and the Code to include expectations around additional topics
We believe that high ethical standards are essential for enhance the effectiveness of our ethics and compliance including human rights, anti-money laundering and trade
Integity
building trust, maintaining accountability, fostering strong program. Reported case statistics are documented and laws.
relationships and ensuring the long-term sustainability of our presented to the Audit and Risk Committee for review
business. From top-level decision-making to daily operations, quarterly. Additionally, we conduct various employee training"
Constellation-2024-Sustainability-Report.txt,"s are essential for enhance the effectiveness of our ethics and compliance including human rights, anti-money laundering and trade
Integity
building trust, maintaining accountability, fostering strong program. Reported case statistics are documented and laws.
relationships and ensuring the long-term sustainability of our presented to the Audit and Risk Committee for review
business. From top-level decision-making to daily operations, quarterly. Additionally, we conduct various employee training
Employee Training"
Constellation-2024-Sustainability-Report.txt,"ation channels for stakeholders,
we aim to extend this training to a broader range of
such as employees and local community members,
employees in 2024.
to report concerns or ask questions. This includes
our Ethics Office email box and a 24-hour Ethics
Our commitment to responsible business practices
Help Line, which has an anonymous reporting option
extends beyond our direct operations and we aim
available via phone and web portal. Additionally,
to work with suppliers who align with our values.
the Nuclear Employee Concerns Program provides"
Constellation-2024-Sustainability-Report.txt,"please see the Board Governance section.
the North American Electric Reliability Corporation Critical For more information on our cybersecurity approach, please
Infrastructure Protection standards and Nuclear Regulatory Our strategy is enhanced by regular exercises of business see Item 1C. Cybersecurity in our 2023 Form 10-K.
Commission Cybersecurity Rule (10 CFR 73.54). continuity plans conducted every two years and annual cyber
drills. To continuously improve our efforts, we conduct internal
Employee Training"
Constellation-2024-Sustainability-Report.txt,"ion Cybersecurity Rule (10 CFR 73.54). continuity plans conducted every two years and annual cyber
drills. To continuously improve our efforts, we conduct internal
Employee Training
Cybersecurity Oversight and assessments of our security controls program and beginning
in 2024, we plan to undertake an external assessment of the Cybersecurity is a collective responsibility for all Constellation
Management
cybersecurity program every two years. employees. Beyond our strong technical safeguards, we
place a high priority on employee awareness and mandate"
Constellation-2024-Sustainability-Report.txt,"t in the communities we serve. The
actively engage with communities to address challenges across the three Foundation aligns its support with our three pillars and amplifies our
pillars of our citizenship and philanthropy program: commitment to creating positive change. In 2023, Constellation and
the Constellation Foundation donated $13.6 million and provided direct
community support across 31 states and Washington, D.C. 81 percent
of the company’s $8.1 million in direct grant funding supported
Climate & Equity & Employee Philanthropy"
Constellation-2024-Sustainability-Report.txt,"sitive change
for all.
Providing support for Investing in education, Demonstrating leadership
environmental conservation STEM and workforce and passion for causes
and stewardship development close to our hearts We also encourage and support our employees to get involved in
their communities. In 2023, employees contributed $5.1 million in
charitable donations and volunteered over 102,000 hours to support
community causes, representing a 28 percent increase in volunteer
102,000 hours $5.1 million
hours from 2022. Our Employee Charitable Match program offers up"
Constellation-2024-Sustainability-Report.txt,"emonstrating leadership
environmental conservation STEM and workforce and passion for causes
and stewardship development close to our hearts We also encourage and support our employees to get involved in
their communities. In 2023, employees contributed $5.1 million in
charitable donations and volunteered over 102,000 hours to support
community causes, representing a 28 percent increase in volunteer
102,000 hours $5.1 million
hours from 2022. Our Employee Charitable Match program offers up
2023
to $10,000 in annual matching gifts for every employee to charities of"
Constellation-2024-Sustainability-Report.txt,"lunteered over 102,000 hours to support
community causes, representing a 28 percent increase in volunteer
102,000 hours $5.1 million
hours from 2022. Our Employee Charitable Match program offers up
2023
to $10,000 in annual matching gifts for every employee to charities of
Figures volunteered by employees of charitable contributions
made by employees their choice. Additionally, initiatives like our Dollars for Doers program
incentivize volunteerism by providing financial support of up to $1,000
for every 100 hours volunteered by an employee and our Impact"
Constellation-2024-Sustainability-Report.txt,"esenting a 28 percent increase in volunteer
102,000 hours $5.1 million
hours from 2022. Our Employee Charitable Match program offers up
2023
to $10,000 in annual matching gifts for every employee to charities of
Figures volunteered by employees of charitable contributions
made by employees their choice. Additionally, initiatives like our Dollars for Doers program
incentivize volunteerism by providing financial support of up to $1,000
for every 100 hours volunteered by an employee and our Impact
Leaders program rewards employee volunteer leadership with an"
Constellation-2024-Sustainability-Report.txt,"ves as the foundation for our values. The introduction of our quarterly DEI Spotlight enriches our workplace culture. To achieve this, we promote
efforts, addressing the evolving needs of employees and Awards celebrates both individual contributors and leaders inclusion and diversity through our Self ID campaign, which is
communities. Our DEI Advisory Board, founded in 2023, nominated by their peers for their consistent championing of a three-part series that encourages employees to voluntarily
comprises employees from all nine Employee Resource DEI. In February 2023, we launched THRIVE, a nomination- self-identify and provide demographic data so we can more"
Constellation-2024-Sustainability-Report.txt,"nvironmental Justice attendees participated in our inaugural ERG
on sexual harassment prevention on an annual basis.
and the Just Transition and Our Efforts to Recruit, Develop and Support a Thriving Summit for a multi-day program to share
Workforce sections. best practices, plan initiativ es and recognize
Constellation follows applicable minimum wage, overtime wage, child and forced
outstanding contributions.
labor and other wage and hour laws and regulations. We also follow our Policy Against
Employee Resource Groups Discrimination, Harassment and Retaliation and Policy Against Sexual Harassment to"
Constellation-2024-Sustainability-Report.txt,"t work in an atmosphere built on respect and inclusivity.
fostering dialogue and collaboration. This year, the ERGs focused on the theme of
KEY LINKS
intersectionality, and we hosted our inaugural ERG Summit since our separation
from Exelon. The Summit brought together 120 attendees including sponsors,
Our Commitment to DEI
Board members and participants from various ERGs for a multi-day program in
Community
Baltimore where participants could share best practices, plan initiatives and recognize
outstanding contributions. Employee Resource Groups"
Constellation-2024-Sustainability-Report.txt,"eer fairs and industry events. In 2023, we and in 2023 we attended multiple military-specific career
and Support a and invests in our communities for the future. Our employees attended the national conferences and career fairs for the fairs and military base visits to connect with qualified veteran
drive our success, so we nurture a workplace that encourages Society of Hispanic Professional Engineers, the Society of candidates in their transition to civilian careers. In 2023,
Thriving Workforce
employee well-being in all dimensions, treats employees fairly Asian Scientists and Engineers, the National Society of Black 16 percent of total hires were veterans and 24 percent of"
Constellation-2024-Sustainability-Report.txt,"rected,
which are nomination-based and aimed
ensure excellence in plant performance.
professional development that includes interactive learning opportunities through
at supporting professional development
formal assessments, feedback, coaching, platforms, including Talent and Development
for a diverse and inclusive cohort of senior
mentoring, training, leadership development Webinars and LinkedIn Learning, to sharpen
managers and directors.
and targeted developmental experiences. their skills.
These opportunities increase employee"
Constellation-2024-Sustainability-Report.txt,"and directors.
and targeted developmental experiences. their skills.
These opportunities increase employee
Tuition Reimbursement:
engagement, improve retention and enhance
our value proposition. Programs offered
Energize Your Career: Certain employees are eligible to receive
include:
annual tuition reimbursement for pursuing
A six-session webinar series that helps equip
undergraduate or graduate degrees or
and empower employees to drive their careers
professional certificates.
at Constellation.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 58Performance Employees participate in the year-end review process to Employee Engagement • Improve internal job opportunity communication"
Constellation-2024-Sustainability-Report.txt,"areer: Certain employees are eligible to receive
include:
annual tuition reimbursement for pursuing
A six-session webinar series that helps equip
undergraduate or graduate degrees or
and empower employees to drive their careers
professional certificates.
at Constellation.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 58Performance Employees participate in the year-end review process to Employee Engagement • Improve internal job opportunity communication
gauge the effectiveness of employee performance against for role changes."
Constellation-2024-Sustainability-Report.txt,"LITY REPORT 2024 58Performance Employees participate in the year-end review process to Employee Engagement • Improve internal job opportunity communication
gauge the effectiveness of employee performance against for role changes.
and Labor Relations
Management and
expectations.20 Through this process, we evaluate what
Succession Planning employees have achieved against their performance goals, Our human capital management strategy is informed by • Encourage authenticity and promote inclusion by
as well as whether these goals have been achieved through formal and informal employee feedback mechanisms. reiterating voluntary self-identification options."
Constellation-2024-Sustainability-Report.txt,"ations.20 Through this process, we evaluate what
Succession Planning employees have achieved against their performance goals, Our human capital management strategy is informed by • Encourage authenticity and promote inclusion by
as well as whether these goals have been achieved through formal and informal employee feedback mechanisms. reiterating voluntary self-identification options.
behaviors consistent with Constellation’s values and core We promote an open feedback culture and listen to our
competencies. The year-end review process includes a focus employees’ perspectives through our biennial employee • Enhance recognition and appreciation methods"
Constellation-2024-Sustainability-Report.txt,"reer objectives. Managers check-in meetings, focus groups and special Candid
have meaningful, quality conversations with their direct Conversation sessions with C-suite leaders. Executive • Develop and distribute key messages on the value
reports to enable high performance in their current roles and Committee members and teams are responsible for of company-provided benefits.
help prepare them for future roles. To enhance the quality developing action plans based on the results of the survey to
of feedback and coaching received, employees can access improve the employee experience. These plans integrate both • Evaluate flexibility options to achieve work/life"
Constellation-2024-Sustainability-Report.txt,"and operational excellence.
development portal. actions for areas unique to specific teams or business areas.
Externally, we gather feedback through public websites
To enable our employees’ career progression, we encourage such as Glassdoor and Indeed.com, where current, previous
We also conduct periodic pulse surveys in between our full
internal mobility through our internal job posting site. and future employees can provide anonymous reviews
engagement surveys to measure engagement and track
We also talent map all first-level supervisors through vice related to employee experience. We engage with these"
Constellation-2024-Sustainability-Report.txt,"veys to measure engagement and track
We also talent map all first-level supervisors through vice related to employee experience. We engage with these
progress against our action plans. Additionally, executives
presidents, conduct succession planning for executive-level external feedback mechanisms to benchmark and align our
created recorded videos specifically tailored to address
roles and review our talent pipeline annually to enable our performance related to the experiences we aim to create,
employee concerns identified through our engagement"
Constellation-2024-Sustainability-Report.txt,"our action plans. Additionally, executives
presidents, conduct succession planning for executive-level external feedback mechanisms to benchmark and align our
created recorded videos specifically tailored to address
roles and review our talent pipeline annually to enable our performance related to the experiences we aim to create,
employee concerns identified through our engagement
long-term business success and continuity. To support and and we plan to share themes and updates with leadership
20 All exempt and non-unionized/ surveys. Based on the employee insights gathered through"
Constellation-2024-Sustainability-Report.txt,"tell others I work here (at
Constellation).”
89%
Constellation employees answered
favorably that “I’m proud to tell others I
work here.”
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 60Employee Benefits
and Wellbeing
At Constellation, we are
focused on a culture of Physical Health Life & Financial
care for our employees and
& Wellbeing Family Wellbeing
their families. Our wellbeing
programs are designed
to promote holistic health
through proven clinical
− Medical, dental, vision and prescription drug − Virtual physical therapy, mental health − Parental leave for up to 16 weeks for birthing mothers − Employee stock purchase program"
Constellation-2024-Sustainability-Report.txt,"sick days and
primary caregiver leave for a family member with a − Financial planning
Our comprehensive benefits − 401(k) with company match − Diabetes management program
critical health condition
package is designed with an
− Health care flexible spending account and − Support for menopause, fertility, pregnancy
− Backup child and elder care services
overall focus on well-being health savings account and parenting
including mental and physical − Tuition reimbursement up to $10,000 annually for
− Employee assistance program − Program for smoking, tobacco and nicotine"
Constellation-2024-Sustainability-Report.txt,"k the opportunity to find a flexible working solution
that works best for them. The policy outlines the various alternate work
arrangements, expectations of employees in these arrangements and
requirements for managers and leaders.
KEY LINKS
Careers
Community
Workforce Development
Benefits
Policy Against Discrimination, Harassment and Retaliation
Policy Against Sexual Harassment
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 62Promoting Health
and Safety
At Constellation, safety is our first and most critical obligation (or an approved equivalent), and we require contractors to Employee Engagement in Our"
Constellation-2024-Sustainability-Report.txt,"Sexual Harassment
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 62Promoting Health
and Safety
At Constellation, safety is our first and most critical obligation (or an approved equivalent), and we require contractors to Employee Engagement in Our
Overview
to our employees, contract workers, business partners and screen their employees for safety risks prior to working at
Safety Culture
communities. We maintain goals across each business unit our sites.
in pursuit of safety and regulatory compliance, measured Employee empowerment is essential to prevent injuries"
Constellation-2024-Sustainability-Report.txt,"omoting Health
and Safety
At Constellation, safety is our first and most critical obligation (or an approved equivalent), and we require contractors to Employee Engagement in Our
Overview
to our employees, contract workers, business partners and screen their employees for safety risks prior to working at
Safety Culture
communities. We maintain goals across each business unit our sites.
in pursuit of safety and regulatory compliance, measured Employee empowerment is essential to prevent injuries
At the site level, we implement employee-led safety"
Constellation-2024-Sustainability-Report.txt,"nd comprised of the vice presidents of health and safety,
to their supervisors, our Ethics Office or through our safety
legal, audit and other key leadership.
Workforce Safety Culture, behavior observation program. We investigate all reported
incidents, as appropriate, to ensure that corrective action
Management and Oversight To proactively drive continuous improvement, Constellation
is taken to resolve hazards. Nuclear plant workers can also
monitors our performance, conducts risk assessments,
raise concerns around safety through our Nuclear Employee"
Constellation-2024-Sustainability-Report.txt,"to safety leverages industry benchmarking and evaluates novel safety
Concerns Program.
and the protection of our stakeholders by incorporating safety monitoring technology. Additionally, third-party safety audits
into our sustainable business strategy. This extends to each at select facilities monitor compliance with U.S. Occupational
Our New Hire Orientation includes safety modules, and
business unit, which maintain safety management programs, Safety and Health Administration (OSHA) standards.
employee training is supplemented by continuous leadership"
Constellation-2024-Sustainability-Report.txt,"alies. We also prepare extensively for natural disasters,
The U.S. Nuclear Regulatory Commission (NRC) closely as the NRC requires all nuclear plants to be able to withstand
regulates nuclear operations, requiring all operators to the most severe natural phenomena historically reported in a
maintain programs to proactively identify, report and 200-mile radius around each plant.
resolve nuclear safety, security and operational hazards. Our
reporting tools enable employees and contract workers to
Employee Training"
Constellation-2024-Sustainability-Report.txt,"we meet all the requirements of the ISO-14001
standards. Our nuclear ISO certification statement can be viewed here.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 70Additionally, we assess suppliers against environmental
criteria throughout the vetting process to understand their
initiatives and goals. For more information on how we manage
environmental impacts in our supply chain, please see the
Building a Responsible and Diverse Supply Chain section.
Employee Training"
Constellation-2024-Sustainability-Report.txt,"ts to enhance biodiversity and wildlife habitats at our
protect the species surrounding our operations, is guided by our Biodiversity generation sites. We have 14 program certifications, covering approximately
Policy. This policy is informed and managed through continuous engagement 140 projects across almost 34,000 acres that include pollinator gardens,
with stakeholders, such as expert and regulatory agencies, and through habitat restoration for a variety of species, fish and water management
activities such as research collaborations and community and employee projects, bat and insect houses, special events and more. Through an"
Constellation-2024-Sustainability-Report.txt,"16 / Accelerating the Clean Energy Future 41 / Prioritizing Responsible Leadership and Governance
08 / Our Purpose, Values and Principles
34 / Managing Our Climate Impacts 44 / Maintaining Ethical Business Conduct
10 / Our Sustainable Business Strategy
46 / Protecting Cybersecurity
04 / Communities 05 / Environment 06 / About
Uplifting and Strengthening Our Communities
Fostering Environmental Stewardship 78 / About this Report
48 / Engaging With Communities
70 / Managing Environmental Programs
52 / Building a World-Class Workforce"
Constellation-2024-Sustainability-Report.txt,"tributed
the capacity of those nuclear plants by 158 megawatts, and nearly one-fifth of all the commercial and industrial demand
$18.7 million in combined giving to charities -- $13.6 million by
we are considering similar projects at other plants that could in the U.S. and three-fourths of Fortune 100 companies -- puts
the company and its foundation, and another $5.1 million by
collectively result in up to one gigawatt of additional new us in the best position to meet the needs of our customers
our workforce, who volunteered more than 102,000 hours in"
Constellation-2024-Sustainability-Report.txt,"on Navigator, a platform that guides commercial
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 5A Message From Constellation is a catalyst for economic growth and progress Our robust governance and ethical business practices help
in our communities. We are especially proud of the family- ensure we honor our commitments to our communities,
Our CEO
sustaining jobs that we support. Our $1.25 million Powering employees and customers. In 2023, we advanced and
Change investment and other workforce development strengthened our practices by developing our Responsible"
Constellation-2024-Sustainability-Report.txt,"f to the job, so we
communities and our shareholders. at the core of everything we do. can come together as one.
Our values are the shared ideals that
help our people function as a team and
work towards Constellation’s common We are motivated by the challenge. To be the It’s about having an impact. Driving economic
Competitive Catalyst For
purpose: accelerating the transition to best operators. To deliver new technology to the progress, improving lives and reflecting the diversity
Spirit Change
a carbon-free future. market. To continuously improve and relentlessly of our society in our workforce. It’s a can-do attitude"
Constellation-2024-Sustainability-Report.txt,"lude expected sustainability metrics
related to eligible projects.
KEY LINKS
About Constellation Investor Relations 2023 Form 10-K
Business Strategy Values & Sustainability Principles 2024 Proxy Statement
Our Purpose
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 13Constellation 2023-2024
Awards and Recognition
GREAT PLACE
Ranked ninth on Barron’s 100 Most Sustainable U.S.
BARRON’S Earned a 2023 Great Place to Work® Certification.
Companies 2024. TO WORK
CENTER FOR ENERGY Named a 2023 recipient of the Center for Energy Workforce"
Constellation-2024-Sustainability-Report.txt,"y Statement
Our Purpose
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 13Constellation 2023-2024
Awards and Recognition
GREAT PLACE
Ranked ninth on Barron’s 100 Most Sustainable U.S.
BARRON’S Earned a 2023 Great Place to Work® Certification.
Companies 2024. TO WORK
CENTER FOR ENERGY Named a 2023 recipient of the Center for Energy Workforce
Named to JUST Capital’s 2024 JUST100, which measures how
Development’s Community Partnership Award for our impactful
JUST CAPITAL the nation’s largest corporations are performing on the business WORKFORCE"
Constellation-2024-Sustainability-Report.txt,"TAINABILITY REPORT 2024 13Constellation 2023-2024
Awards and Recognition
GREAT PLACE
Ranked ninth on Barron’s 100 Most Sustainable U.S.
BARRON’S Earned a 2023 Great Place to Work® Certification.
Companies 2024. TO WORK
CENTER FOR ENERGY Named a 2023 recipient of the Center for Energy Workforce
Named to JUST Capital’s 2024 JUST100, which measures how
Development’s Community Partnership Award for our impactful
JUST CAPITAL the nation’s largest corporations are performing on the business WORKFORCE
work through our Powering Change workforce development"
Constellation-2024-Sustainability-Report.txt,"deployment and retention of clean, carbon- We work with policymakers to ensure the unique clean and
61%
New Nuclear: Findings from a
free energy resources. We engage with policymakers on reliable attributes of nuclear generation resources can continue
Comprehensive Evaluation of
the World’s Understanding and critical components of the just energy transition, including to operate through mid-century. The preservation and expansion
Support for Advanced Nuclear. 61 percent of Americans support use
comprehensive workforce development and transition programs, of nuclear generation is critical to maintaining grid reliability"
Constellation-2024-Sustainability-Report.txt,"nd trade
Integity
building trust, maintaining accountability, fostering strong program. Reported case statistics are documented and laws.
relationships and ensuring the long-term sustainability of our presented to the Audit and Risk Committee for review
business. From top-level decision-making to daily operations, quarterly. Additionally, we conduct various employee training
Employee Training
our robust ethics and compliance program guides our courses and share relevant communications on ethics
actions and interactions with our colleagues, customers and topics across our workforce. We assess our ethical culture All employees, directors, officers, subsidiaries and relevant"
Constellation-2024-Sustainability-Report.txt,"of cybersecurity risks to its Nuclear
new tools and data, we can adopt data-informed strategies
Oversight and Audit and Risk Committees. The Nuclear
that prioritize and mitigate critical risk areas in the future.
Oversight Committee is tasked with overseeing compliance
with policies and procedures to manage and mitigate
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 464
Communities
Uplifting and Strengthening
Our Communities
48 / Engaging Our Communities
52 / Building a World-Class Workforce"
Constellation-2024-Sustainability-Report.txt,"commits to contributing
each site. Our nuclear sites host State of the Plant events annually, inviting
to energy equity, affordability and the just transition by promoting energy
key officials and community leaders to receive updates on plant performance,
access, reducing barriers to good paying clean energy jobs and serving under-
current and upcoming projects, potential challenges and opportunities
resourced communities.
for community involvement. Additionally, several nuclear facilities host
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 48Environmental Justice Initiatives Workforce Development for the Just Transition the launch of the new Chris Crane High School to Work program,"
Constellation-2024-Sustainability-Report.txt,"skill and reskill workers,
support to pursue an associate degree while participating in a paid
justice in these communities is inspired by the federal Justice40 including those displaced from polluting industries, to fill the need
internship at Constellation. This program honors the late Chris Crane,
Initiative, which seeks to directly invest in marginalized, for highly skilled labor for emerging clean energy technology sectors.
a transformative leader within the nuclear industry and a tireless
underserved and overburdened communities. As such, we use This adaptability is evident in our workforce’s ability to learn and"
Constellation-2024-Sustainability-Report.txt,"clean energy economy. For example, Constellation’s
trades schools and pre-apprenticeship programs to provide career
Promoting environmental justice is a priority across all of achievement in breaking the industry record for blending carbon-
exposure and access for populations with historically limited
Constellation’s activities. At the site level, listening to community free hydrogen with natural gas highlights the effectiveness of our
access to employment within the energy sector. For example,
concerns is vital, and our local government affairs and site workforce in embracing new technologies and driving innovation in"
Constellation-2024-Sustainability-Report.txt,"ion Home business offers a four-year paid heating,
leadership team members are accessible to personally hear clean energy.
ventilation, and air conditioning (HVAC) apprenticeship program for
feedback brought by elected officials and community members.
unemployed, underemployed and/or individuals from disadvantaged
Federal public policy engagement is also crucial, and we Constellation also continues to advance Powering Change, our
communities. In 2024, 18 apprentices graduated from this program.
are committed to advancing policy positions that equitably signature workforce development initiative. This program provides"
Constellation-2024-Sustainability-Report.txt,"ntilation, and air conditioning (HVAC) apprenticeship program for
feedback brought by elected officials and community members.
unemployed, underemployed and/or individuals from disadvantaged
Federal public policy engagement is also crucial, and we Constellation also continues to advance Powering Change, our
communities. In 2024, 18 apprentices graduated from this program.
are committed to advancing policy positions that equitably signature workforce development initiative. This program provides
In recognition of our work towards building a skilled energy workforce"
Constellation-2024-Sustainability-Report.txt,"ealth and well-being. Further, we seek opportunities $1.25 million annually in grants to six nonprofits that increase
and establishing impactful relationships in our local communities,
to collaborate with and fund institutions serving marginalized access to science, technology, engineering and math (STEM)
we received the Community Partnership Award from The Center for
communities, incubators and accelerators with a focus on diverse learning opportunities and create economic access, generational
Energy Workforce Development in 2023."
Constellation-2024-Sustainability-Report.txt,"opportunities $1.25 million annually in grants to six nonprofits that increase
and establishing impactful relationships in our local communities,
to collaborate with and fund institutions serving marginalized access to science, technology, engineering and math (STEM)
we received the Community Partnership Award from The Center for
communities, incubators and accelerators with a focus on diverse learning opportunities and create economic access, generational
Energy Workforce Development in 2023.
startups that play a crucial role in energy innovation. wealth and family supporting careers. Through our Local Workforce"
Constellation-2024-Sustainability-Report.txt,"ons serving marginalized access to science, technology, engineering and math (STEM)
we received the Community Partnership Award from The Center for
communities, incubators and accelerators with a focus on diverse learning opportunities and create economic access, generational
Energy Workforce Development in 2023.
startups that play a crucial role in energy innovation. wealth and family supporting careers. Through our Local Workforce
Development Site program, each nuclear site is granted $25,000
We also implemented a Workforce Development Partnerships"
Constellation-2024-Sustainability-Report.txt,"ion. wealth and family supporting careers. Through our Local Workforce
Development Site program, each nuclear site is granted $25,000
We also implemented a Workforce Development Partnerships
For more information on how we support DEI throughout our to invest in scholarships and educational programs across local
Dashboard to measure and monitor our community impact and
business, please see the Shaping the Future Through Diversity, community organizations and high schools that aid underserved and
key workforce development metrics. For more information on our"
Constellation-2024-Sustainability-Report.txt,"d monitor our community impact and
business, please see the Shaping the Future Through Diversity, community organizations and high schools that aid underserved and
key workforce development metrics. For more information on our
Equity and Inclusion and Support for Diverse and Small Suppliers underrepresented communities, first generation students or students
talent development programs, please see the Our Efforts to Recruit,
sections. with unmet financial needs. For instance, our Braidwood Clean
Develop and Support a Thriving Workforce section."
Constellation-2024-Sustainability-Report.txt,"lation and
the Constellation Foundation donated $13.6 million and provided direct
community support across 31 states and Washington, D.C. 81 percent
of the company’s $8.1 million in direct grant funding supported
Climate & Equity & Employee Philanthropy
organizations, programs or events that served underrepresented
Environment Education & Volunteerism
populations, reflecting our commitment to driving positive change
for all.
Providing support for Investing in education, Demonstrating leadership
environmental conservation STEM and workforce and passion for causes"
Constellation-2024-Sustainability-Report.txt,"additional mentorship opportunities for
Community
scholarship recipients.
Community Champions This program provides funding to our customers for causes that are important to their communities. Extra
consideration is given to requests that focus on education, the environment or youth. Since the program’s inception in
2013, we have funded over $1.5 million through over 3,100 projects.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 51Building a World-Class
Workforce"
Constellation-2024-Sustainability-Report.txt,"s funding to our customers for causes that are important to their communities. Extra
consideration is given to requests that focus on education, the environment or youth. Since the program’s inception in
2013, we have funded over $1.5 million through over 3,100 projects.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 51Building a World-Class
Workforce
To effectively serve our customers and communities, Constellation strives to recruit, retain and nurture
a world-class workforce that is passionate about fulfilling our purpose. We work toward this objective by"
Constellation-2024-Sustainability-Report.txt,"r customers and communities, Constellation strives to recruit, retain and nurture
a world-class workforce that is passionate about fulfilling our purpose. We work toward this objective by
developing and sourcing from a diverse talent pipeline and fostering an inclusive culture where the worth
Our DEI Strategic Pillars
and dignity of everyone is respected and all individuals can develop to reach their full potential.
Shaping the Future Through
• Integrating diversity as a business imperative and
Strategic Talent Sourcing Workforce Development"
Constellation-2024-Sustainability-Report.txt,"chain that
• Creating and fostering an inclusive purchasing
and create opportunities for all employees enables, equips and empowers diverse
environment while building an ecosystem of sustainable
by establishing a culture of inclusion businesses, including small businesses, to
relationships, expanding opportunities and cultivating the
and belonging. thrive in our marketplaces.
growth of diverse businesses, including small businesses,
which add value to Constellation and the communities
we serve.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 52Core Values We believe that the responsibility for creating a workplace enhance ongoing DEI and workforce development initiatives. refining our strategies to promote DEI within our organization."
Constellation-2024-Sustainability-Report.txt,"o Constellation and the communities
we serve.
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 52Core Values We believe that the responsibility for creating a workplace enhance ongoing DEI and workforce development initiatives. refining our strategies to promote DEI within our organization.
culture aligned with our core values extends to every member In 2023, the Communities of Practice engaged on several An example of this includes the newly formed Outage
of our workforce. To promote accountability and ensure that topics including DEI webinars, workforce development barrier Job Shadow Program launching in Spring 2024, which"
Constellation-2024-Sustainability-Report.txt,"he evolving needs of employees and Awards celebrates both individual contributors and leaders inclusion and diversity through our Self ID campaign, which is
communities. Our DEI Advisory Board, founded in 2023, nominated by their peers for their consistent championing of a three-part series that encourages employees to voluntarily
comprises employees from all nine Employee Resource DEI. In February 2023, we launched THRIVE, a nomination- self-identify and provide demographic data so we can more
Groups (ERGs) and representatives from across business based program that brings together a diverse and inclusive accurately understand the diversity of our workforce. In"
Constellation-2024-Sustainability-Report.txt,"ng Trades Diversity examples aligned with the Americans with Disabilities Act. The
non-craft/non-exempt employees
have individual DEI performance Pledge, we established an oversight committee in 2023 that third aspect of the campaign enables employees to voluntarily
goals, focused on behaviors that
In January 2023, our DEI Center of Excellence initiated will set annual goals aligned with the pledge commitments report their veteran status and branch of service.
promote respect, inclusion, equity
and belonging. collaborative DEI and Workforce Development Communities and share best practices. Through this initiative, we aim to"
Constellation-2024-Sustainability-Report.txt,"I performance Pledge, we established an oversight committee in 2023 that third aspect of the campaign enables employees to voluntarily
goals, focused on behaviors that
In January 2023, our DEI Center of Excellence initiated will set annual goals aligned with the pledge commitments report their veteran status and branch of service.
promote respect, inclusion, equity
and belonging. collaborative DEI and Workforce Development Communities and share best practices. Through this initiative, we aim to
of Practice, which united over 50 thought leaders from across promote equitable access within the energy industry and For workforce DEI metrics, please see the Sustainability Data"
Constellation-2024-Sustainability-Report.txt,"hiring and promotion processes to avoid unconscious bias and include equal
we cover DEI topics in our quarterly DEI Webinar Series, while our Executive DEI
pay efforts in broader company-wide equity initiatives. These actions help to create
learning initiative targets enhancing leaders’ and teams’ ability to connect across
an environment where all employees can thrive and advance as equal members of the 35
differences. In 2023, we hosted a three-part allyship series, which attracted over 1,000
workforce."
Constellation-2024-Sustainability-Report.txt,"rohibit any form of sexual harassment,
For additional details on how we integrate DEI in our community development and
as stated in our Policy Against Sexual Harassment, and we provide mandatory training
talent management programs, please see the Championing Environmental Justice attendees participated in our inaugural ERG
on sexual harassment prevention on an annual basis.
and the Just Transition and Our Efforts to Recruit, Develop and Support a Thriving Summit for a multi-day program to share
Workforce sections. best practices, plan initiativ es and recognize"
Constellation-2024-Sustainability-Report.txt,"fe conferences, career fairs and industry events. In 2023, we and in 2023 we attended multiple military-specific career
and Support a and invests in our communities for the future. Our employees attended the national conferences and career fairs for the fairs and military base visits to connect with qualified veteran
drive our success, so we nurture a workplace that encourages Society of Hispanic Professional Engineers, the Society of candidates in their transition to civilian careers. In 2023,
Thriving Workforce"
Constellation-2024-Sustainability-Report.txt,"ace that encourages Society of Hispanic Professional Engineers, the Society of candidates in their transition to civilian careers. In 2023,
Thriving Workforce
employee well-being in all dimensions, treats employees fairly Asian Scientists and Engineers, the National Society of Black 16 percent of total hires were veterans and 24 percent of
and listens to feedback and takes action. We strive to be an Engineers and the Society of Women in Engineering. management and executive hires were veterans.
employer of choice and retain our talented workforce through"
Constellation-2024-Sustainability-Report.txt,"cientists and Engineers, the National Society of Black 16 percent of total hires were veterans and 24 percent of
and listens to feedback and takes action. We strive to be an Engineers and the Society of Women in Engineering. management and executive hires were veterans.
employer of choice and retain our talented workforce through
our inclusive culture, career development opportunities, Constellation’s PowerEd program amplifies our collaborations For more information on how we develop our future
engagement mechanisms and competitive wages and with universities, community colleges and technical workforce, please see the Championing Environmental"
Constellation-2024-Sustainability-Report.txt,"tellation and our career opportunities communities to improve diversity within STEM majors
across a diverse range of communities. We have established through programs such as InRoads HBCU+.
relationships with universities, technical schools and diversity,
disability and military organizations. These collaborations Constellation is a proud military friendly organization. Our
provide us access to a diverse pool of talent and help us tap military and veteran initiatives assist those who served our
into specialized skill sets. Through our efforts, we hired 1,519 country and are looking to re-enter the workforce. Former"
Constellation-2024-Sustainability-Report.txt,"-unionized/ surveys. Based on the employee insights gathered through
non-craft/non-exempt employees accelerate the integration of new leaders, we implement quarterly.
our most recent survey, Constellation has identified several
hired prior to October 1 are
third-party leadership assessments to identify and address
required to participate in our opportunities for improvement, including:
year-end review process. developmental opportunities. We respect and support the right of employees within our
workforce and value chain to seek union representation."
Constellation-2024-Sustainability-Report.txt,"ered through
non-craft/non-exempt employees accelerate the integration of new leaders, we implement quarterly.
our most recent survey, Constellation has identified several
hired prior to October 1 are
third-party leadership assessments to identify and address
required to participate in our opportunities for improvement, including:
year-end review process. developmental opportunities. We respect and support the right of employees within our
workforce and value chain to seek union representation.
Approximately 25 percent of our workforce is covered under"
Constellation-2024-Sustainability-Report.txt,"ic
health through proven clinical support programs—all offered at no cost.
We believe there are many benefits to providing flexible work arrangements
and our Alternate Work Arrangements Policy gives employees whose jobs
allow for remote work the opportunity to find a flexible working solution
that works best for them. The policy outlines the various alternate work
arrangements, expectations of employees in these arrangements and
requirements for managers and leaders.
KEY LINKS
Careers
Community
Workforce Development"
Constellation-2024-Sustainability-Report.txt,"program, in
partners. The Safety Peer Group reports to the Corporate
on our health and safety performance, please see the addition to practicing stop work authority in the presence of
Safety Council, sponsored by our Chief Generation Officer
Sustainability Data Index & Factsheet. unsafe working conditions. Employees can report incidents
and comprised of the vice presidents of health and safety,
to their supervisors, our Ethics Office or through our safety
legal, audit and other key leadership.
Workforce Safety Culture, behavior observation program. We investigate all reported"
Constellation-2024-Sustainability-Report.txt,"nistration (OSHA) standards.
employee training is supplemented by continuous leadership
hazard identification procedures and hazard-specific training.
development programs focused on Constellation’s safety
We expect all employees to abide by our safety procedures,
culture, as well as additional training for employees and
including their right and obligation to question, stop and
contract workers based on job requirements. In 2023, our
correct unsafe conditions or behaviors. Contract workers are
workforce received 220,000 hours of health and safety"
Constellation-2024-Sustainability-Report.txt,"by INPO-certified instructors. These trainings are
nuclear safety KPIs, which we use to monitor and evaluate comprehensive, lasting nine months for the initial training
real-time performance, in addition to metrics specific to program, to up to two years for NRC-licensed nuclear control
INTRODUCTION CLEAN ENERGY GOVERNANCE COMMUNITIES ENVIRONMENT SUSTAINABILITY REPORT 2024 64room operators. Supplemental trainings occur regularly to Incidents are unlikely; however, it is critical that community
keep our workforce abreast of current technological expertise, members also understand proper emergency procedures."
Constellation-2024-Sustainability-Report.txt,"to support respect and inclusion, health and safety, uphold human rights and
unneeded parts and equipment from across
support our commitment to the highest standards of safety, quality, reliability,
fair labor practices, maintain ethical business conduct and minimize negative
our fleet and corporate locations, the program
technical excellence and business (supplier) diversity.
environmental impacts, among other topics. Covered suppliers are required to
effectively reduces waste while generating
ensure their workforce undergoes mandated training, where relevant, and is"
copart-esg-report-2023.txt,"t Approach 2022 ESG Report, page 8
Assessment Copart Supplier Code of Conduct
308-1 New suppliers that were screened Copart Supplier Code of Conduct
using environmental criteria
Social
Employment 103 Management Approach Copart’s Workforce, page 1
Copart Annual Report, pages 12-13
103 Management Approach Health & Safety, page 14
Copart Supplier Code of Conduct
Copart Human Rights Policy
Occupational Health and 403-1 Occupational health and safety Health & Safety, page 14
Safety management system
403-6 Promotion of Worker Health Health & Safety, page 14"
copart-esg-report-2023.txt,",000 Copart employees throughout the U.S. and Canada
participated in training and development courses; and we also
As part of Copart’s commitment to diversity, equity, and provided many thousands of hours of job-specific field training
inclusion, we continue to invest in our military and veteran to employees at Copart’s yards.
hiring program. In 2023, our main focus included hiring
veterans in our transportation and CAT service areas. This To understand the needs and expectations of our current
resulted in hiring nearly 60 veterans during fiscal year 2023. employees, Copart conducts employee engagement"
copart-esg-report-2023.txt,"rt’s yards.
hiring program. In 2023, our main focus included hiring
veterans in our transportation and CAT service areas. This To understand the needs and expectations of our current
resulted in hiring nearly 60 veterans during fiscal year 2023. employees, Copart conducts employee engagement
surveys. In our most recently completed U.S. survey, 74%
Training, Engagement & Satisfaction of participating employees strongly agree that they had
opportunities to learn and grow at work. In the U.K., our
Copart believes that positive employee engagement and most recent survey indicated that 88% of employees would"
copart-esg-report-2023.txt,"on joined these events, hosted by our executives, who shared
their perspectives firsthand.
At each Town Hall meeting, we celebrated the commitment and
dedication of our hardworking employees who had achieved key
service milestones. We also extended our congratulations to the
children of Copart employees who had earned the prestigious
Willis Johnson Scholarship.
In addition, across the U.S., Copart hosts annual Family Fun Days
to bring our teams together, with their families, to connect with one
another outside of our workplace. These events boost employee"
copart-esg-report-2023.txt,"res the results with
the Audit Committee of the Board of Directors.
(1) Number of data breaches, (2) SV-PS-230a.3 No material data breaches in fiscal year 2022
percentage involving customers’
confidential business information (CBI) or
personally identifiable information (PII), (3)
number of customers affected
Workforce Diversity & Engagement
Percentage of gender and racial/ethnic SV-PS-330a.1 Page 13
group representation for (1) executive
management and (2) all other employees
Accounting Metric
Employee engagement as a percentage SV-PS-330a.3 Page 12"
copart-esg-report-2023.txt,"submit to, the
U.S. Securities and Exchange Commission, to authorities
in countries where we do business, and in other public
communications we make; compliance with applicable
governmental laws, rules, and regulations; prompt internal
reporting of violations of the Code to an appropriate person
or persons identified in the Code; and accountability for
adherence to the Code.
Total amount of monetary losses as a SV-PS-510a.2 None
result of legal proceedings associated
with professional integrity
Employee hours worked; percentage billable SV-PS-000.B Not applicable"
copart-esg-report-2023.txt,"port, pages 12-13
103 Management Approach Health & Safety, page 14
Copart Supplier Code of Conduct
Copart Human Rights Policy
Occupational Health and 403-1 Occupational health and safety Health & Safety, page 14
Safety management system
403-6 Promotion of Worker Health Health & Safety, page 14
403-8 Workers covered by an Health & Safety, page 14
occupational health and safety
management system
Training and Education 103 Management Approach Training, Engagement, and Satisfaction, pages
12 and 14
404-2 Programs for upgrading employee Training, Engagement, and Satisfaction, pages"
copart-esg-report-2023.txt,"ering the Employees Socioeconomic Responsible and
Circular Automotive Economy (pages 12-13) Mobility Reliable Partner
(pages 6-10) (page 15) (page 16)
We enable the avoidance We invest in our We enable more We strengthen the
of carbon emissions by employees, maintain affordable access to resiliency and adaptive
extending the life cycle of robust safety guidelines, mobility, leading to capacity of the
vehicles and components; we and promote inclusion economic development communities we serve and
innovate to reduce our own across our workforce. and social wellbeing. contribute to public health"
copart-esg-report-2023.txt,"resolution of insurance
Florida. Prior to the storm making landfall, Copart CAT members claims for policyholders and superior economic returns for our
from across the country arrived onsite to quickly and efficiently insurance clients.
500 trucks & 300 front end loaders capable of moving
thousands of impacted vehicles 500 drivers & 100 volunteer reserve team
8,000+ square feet of dedicated mobile facilities 2,000+ acres reserved to respond to CAT events
11Prioritizing & Empowering
Our Employees
Copart’s Workforce"
copart-esg-report-2023.txt,"ties to learn and grow at work. In the U.K., our
Copart believes that positive employee engagement and most recent survey indicated that 88% of employees would
satisfaction starts with the hiring process, by recruiting bright, recommend Copart as a place to work. Copart Finland also
motivated personnel and communicating transparently with conducts an annual well-being and job satisfaction survey and
them over the duration of their careers at Copart. aims to have a response rate of at least 90%.
122023 Workforce Diversity"
copart-esg-report-2023.txt,"that positive employee engagement and most recent survey indicated that 88% of employees would
satisfaction starts with the hiring process, by recruiting bright, recommend Copart as a place to work. Copart Finland also
motivated personnel and communicating transparently with conducts an annual well-being and job satisfaction survey and
them over the duration of their careers at Copart. aims to have a response rate of at least 90%.
122023 Workforce Diversity
In 2023, Copart Brazil was recognized
Total Workforce Management Level by Great Place To Work."
copart-esg-report-2023.txt,"rently with conducts an annual well-being and job satisfaction survey and
them over the duration of their careers at Copart. aims to have a response rate of at least 90%.
122023 Workforce Diversity
In 2023, Copart Brazil was recognized
Total Workforce Management Level by Great Place To Work.
Nearly 75% of our employees in Brazil recognized
Copart as having a positive work environment.
52% 61%
Men Men
---------------------- ----------------------
40% 36%
Women Women
8% Undisclosed 3% Undisclosed
Total Workforce Management Level"
copart-esg-report-2023.txt,"f customer information state, provincial, national, and international privacy laws and
regulations. Copart receives external validation of its data
protection practices each quarter and shares the results with
the Audit Committee of the Board of Directors.
(1) Number of data breaches, (2) SV-PS-230a.3 No material data breaches in fiscal year 2022
percentage involving customers’
confidential business information (CBI) or
personally identifiable information (PII), (3)
number of customers affected
Workforce Diversity & Engagement"
copart-esg-report-2023.txt,"ties, brands, products and About Copart
services Our Brands
Copart Annual Report, pages 1-11
102-3 Location of headquarters 14185 Dallas Parkway Suite 300, Dallas, Texas 75254
102-4 Location of operations Copart International Locations
Copart Annual Report, page 1 and 27
102-5 Ownership and legal form Copart Annual Report, page 1
SEC Filings
102-6 Markets served Copart International Locations
Copart Annual Report, pages 1-2 and 5-6
102-7 Scale of the organization Copart Annual Report, pages 5-6
102-8 Information on employees and Copart’s Workforce, pages 12-13"
copart-esg-report-2023.txt,"ESG Report, page 9
related impacts
306-4 Waste diverted from disposal 2022 ESG Report, page 9
Environmental Compliance 307 Management Approach 2022 ESG Report, page 4
307-1 Non-compliance with No material instances during the reporting
environmental laws and regulations period
Supplier Environmental 103 Management Approach 2022 ESG Report, page 8
Assessment Copart Supplier Code of Conduct
308-1 New suppliers that were screened Copart Supplier Code of Conduct
using environmental criteria
Social
Employment 103 Management Approach Copart’s Workforce, page 1"
corning-2023-sustainability-report.txt,"our Values and our commitment to positive
social, environmental, and economic impact.
We seek to mitigate risks and strengthen sustainability in
our global supply chain in three areas:
Environment: We strive to use sustainable procurement, eco-friendly
products, and suppliers that work to minimize their carbon footprints and
other environmental impacts.
Social: We are committed to respecting human rights; to responsible
sourcing of materials, including from diverse, small, and local suppliers;
and to supporting worker health and safety."
corning-2023-sustainability-report.txt,"ges Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67"
corning-2023-sustainability-report.txt,"42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43"
corning-2023-sustainability-report.txt,"Interview with our vice president 59 Data security and data privacy
of sustainability and climate
initiatives
Photo
02 05 07
Vital to progress People and communities Appendix
9 Our business Our people 61 Hemlock Semiconductor
11 Our stakeholders 36 Investing in our workforce 62 Stakeholder engagement
12 Our approach to sustainability 41 Respecting and protecting 64 Data tables
human rights and labor
15 Corning sustainability network 69 TCFD disclosure
standards
75 Climate change transition plan
42 Supporting employee safety"
corning-2023-sustainability-report.txt,"of sustainability and climate
initiatives
Photo
02 05 07
Vital to progress People and communities Appendix
9 Our business Our people 61 Hemlock Semiconductor
11 Our stakeholders 36 Investing in our workforce 62 Stakeholder engagement
12 Our approach to sustainability 41 Respecting and protecting 64 Data tables
human rights and labor
15 Corning sustainability network 69 TCFD disclosure
standards
75 Climate change transition plan
42 Supporting employee safety
03
Driven by innovation 76 GRI index
43 Supporting employee health"
corning-2023-sustainability-report.txt,"vering value through 45 Investing in community impact
products and technologies
Powerhouse South, which provides energy for many of
Corning's facilities in Corning, New York, stands between
the iconic Little Joe Tower and the Chemung River.Introduction
• Letter from our chief executive officer
Photo • About this report
01
• Sustainability highlights
• Interview with our vice president of sustainability and climate initiatives
Energy management is a crucial part of Corning’s sustainability plan.
Here, an employee monitors steam production in a powerhouse.From our CEO"
corning-2023-sustainability-report.txt,"rtable business
the data assurance process but are
segments for calendar year 2023 but peer-reviewed internally for accuracy. We are committed to providing
do not include our majority-owned annual updates on our sustainability
subsidiary Hemlock Semiconductor To provide timely reporting to our performance and strive to expand
(HSC), unless otherwise noted. All stakeholders, it is necessary to our disclosures in future reports.
financial figures are in U.S. dollars estimate certain environmental
unless otherwise noted. data for the fourth quarter of the Employee sustainability"
corning-2023-sustainability-report.txt,"lightly from what was reported
business. We have also aligned our
in our 2022 Sustainability Report.
disclosures with the Task Force on
Changes reflect not only the addition
Climate-related Financial Disclosures
of HSC, but increased data maturity,
(TCFD) recommendations as well
methodology improvements,
as relevant United Nations (UN)
market-based assessment of Scope
Sustainable Development Goals.
2 data, and the addition of previously
excluded emissions from small direct
and indirect sources.
In Reynosa, Mexico, this employee-made display of recycled bottle caps"
corning-2023-sustainability-report.txt,"no Salazar, digital transformation leader
Introduction | About this report 5Sustainability highlights ↑50% Introduced Corning® Viridian™
Vials, which can help drug
manufacturers improve
filling-line efficiency by up to
filling-line efficiency
50% while reducing
vial-manufacturing carbon-
Named an
>6,000
The Science Based Targets ↓30% dioxide-equivalent (CO₂e)
ENERGY STAR® initiative (SBTi) has approved emissions by up to 30%
employees participated in more Corning’s near-term
Partner of the Year
than 70 employee resource group science-based emissions"
corning-2023-sustainability-report.txt,"hat have consistently
we expect to provide enough cable solutions to lower carbon
achieved this distinction
renewable electricity for 100% of footprint by up to 60%
our European operations Joined the Scored 100 on the Disability
Equality Index® and named
Responsible Best Place to Work list by the
American Association of People
Business Alliance
with Disabilities and Disability:IN
Continued to advance the Named one of
development of Ribbon Ceramics, America’s Best
which could lead to smaller and
Large Employers 31,646 logged in employee"
corning-2023-sustainability-report.txt,"ore here.
150
Core Sales Research, Development & Engineering Investment (RD&E)
$13.6 $13.6$1
~
billion billion
~7% of our annual sales
Vital to progress | Our business 9Our Values
How we do things is
Quality
just as important as
what we accomplish.
Integrity
Corning is guided by core Values that define
our relationship with our stakeholders.
They are the foundation of who we are and
guide our actions and decisions – wherever
Performance
we are, whatever we do.
Leadership
Innovation
Independence
In 2023, we held a series of in-person and virtual employee discussions on"
corning-2023-sustainability-report.txt,"the manage those topics as close to the relevant OCEO level, we have organized our prioritized (including the vice president of sustainability
top of our organization. Six committees of our operations as possible. For instance, we sustainability topics into five categories and climate initiatives), these leads comprise
Board of Directors oversee the development locate supply chain sustainability within Global and created Advice & Consent Committees our Sustainability Center of Excellence (CoE),
and execution of our sustainability efforts, with Supply Management and employee-related (ACCs) to oversee each category. The ACCs which meets roughly weekly. The CoE enhances"
corning-2023-sustainability-report.txt,"31 entries from beverage bottles, disused optical
of Reducing Waste. Throughout the year, members shared best cable, delivery boxes, and discarded magazines.
practices and helped divert waste from landfill. Results included:
The Corning Green Commuter App – developed by CSN members –
>500 ~1
encourages more environmentally friendly commutes to the office.
metric ton
More than 130 employees from 40 locations logged over 42,000
kilometers (km) since the app’s launch in July 2023. The app compares
cumulative employee hours of recyclable materials and"
corning-2023-sustainability-report.txt,"educing Waste. Throughout the year, members shared best cable, delivery boxes, and discarded magazines.
practices and helped divert waste from landfill. Results included:
The Corning Green Commuter App – developed by CSN members –
>500 ~1
encourages more environmentally friendly commutes to the office.
metric ton
More than 130 employees from 40 locations logged over 42,000
kilometers (km) since the app’s launch in July 2023. The app compares
cumulative employee hours of recyclable materials and
the employee’s commute to one by a gas-powered car, calculating the"
corning-2023-sustainability-report.txt,"ecreasing GHG
Waste emissions by 136 metric tons
Environment | Sustainability in action 33People and
communities
When our people thrive, we thrive. Corning’s heart is made up
Photo of dedicated employees who care deeply about the communities in
05
which we operate. We invest in our people and communities to help
ensure more equitable opportunities for all, and therefore, a more
prosperous world.
Our people
• Investing in our workforce
• Respecting and protecting human rights and labor standards
• Supporting employee safety"
corning-2023-sustainability-report.txt,"by 136 metric tons
Environment | Sustainability in action 33People and
communities
When our people thrive, we thrive. Corning’s heart is made up
Photo of dedicated employees who care deeply about the communities in
05
which we operate. We invest in our people and communities to help
ensure more equitable opportunities for all, and therefore, a more
prosperous world.
Our people
• Investing in our workforce
• Respecting and protecting human rights and labor standards
• Supporting employee safety
• Supporting employee health"
corning-2023-sustainability-report.txt,"and protecting human rights and labor standards
• Supporting employee safety
• Supporting employee health
Our communities
• Investing in community impact
Through our Community Impact programs, we invest in initiatives that help improve physical health.>97% compliance Collaborated with
SUNY Corning
with Corning
Community
College to create
safety standard
People and communities the Mary Eliza
requirements Mahoney Nursing
2023 highlights
Education
across our
Scholarship
operations
31 646
$3 5M
,
.
logged in employee volunteer hours provided in charitable giving to 264 organizations"
corning-2023-sustainability-report.txt,"p, accessing and deploying increasingly diverse
talent pools, and enabling DE&I mindsets, we’re working to attract
and empower an agile and inclusive workforce.
Learn more in our 2023 DE&I report
People and communities | Diversity, equity, and inclusion 37Developing talent Caring for the whole person
It’s not enough to attract a skilled workforce. We continue to invest by providing our employees with access to training and We work to support the emotional, physical, and mental well-being of our
development opportunities to deepen their expertise in their current roles and grow their skills for the future. employees – at work and beyond. We continue to evolve our employee"
corning-2023-sustainability-report.txt,"t enough to attract a skilled workforce. We continue to invest by providing our employees with access to training and We work to support the emotional, physical, and mental well-being of our
development opportunities to deepen their expertise in their current roles and grow their skills for the future. employees – at work and beyond. We continue to evolve our employee
wellness offerings and strive to offer compensation and benefits that make
Corning an ideal place to build a career.
What we do:
Our comprehensive, holistic employee benefits program"
corning-2023-sustainability-report.txt,"gers, and senior management across smoking cessation, mental health, and work-life balance.
three tracks: leading self, leading others, and leading for results. In addition to virtual and in-person learning, employees have
access to coaching, mentoring, and regional and divisional training.
Total wealth
• Monthly learning campaigns on topics such as taking charge of your career.
We offer competitive pay opportunities that include innovative
and valuable benefits. We promote pay equity globally.
• Career development programs for a variety of employee populations, including women."
corning-2023-sustainability-report.txt,"coaching, mentoring, and regional and divisional training.
Total wealth
• Monthly learning campaigns on topics such as taking charge of your career.
We offer competitive pay opportunities that include innovative
and valuable benefits. We promote pay equity globally.
• Career development programs for a variety of employee populations, including women.
• Tuition assistance program, through which we invested more than $900,000 in 2023, helping employees pursue
educational opportunities.
Total self
We support each employee with a combination of work-life"
corning-2023-sustainability-report.txt,"7.
Our U.S. analysis also includes minority groups compared with white salaried
Launched Become a Leader@Corning, a five-week program to Introduced a continuous feedback tool that enables employees. We continue to monitor regularly and make adjustments where
help new supervisors build skills in areas such as active listening employees to request 360 feedback from peers, their appropriate to maintain our global gender pay equity.
and creating a collaborative culture managers, and their own teams
Learn more about our approach to employee wellness"
corning-2023-sustainability-report.txt,"Tomorrow awards for:
Family-friendly Best-of-the-Best
Recognized Partner
Management Corporations for
of Advancing
Company by the Recognized with
Inclusion by the
Korean Ministry Minorities’ Interest
Forbes Japan National Business
Best DEI Best DEI Best DEI Digital Best Women’s
of Gender Equality in Engineering
Women Award Enterprise Advocacy Application Empowerment Inclusion Consortium
and Family (Gold) and Innovation Enterprise
People and communities | Our people 39Our workforce by the numbers
Total employee numbers are based on standard headcount reporting, including employees"
corning-2023-sustainability-report.txt,"pan National Business
Best DEI Best DEI Best DEI Digital Best Women’s
of Gender Equality in Engineering
Women Award Enterprise Advocacy Application Empowerment Inclusion Consortium
and Family (Gold) and Innovation Enterprise
People and communities | Our people 39Our workforce by the numbers
Total employee numbers are based on standard headcount reporting, including employees
on active and paid leave and full- and part-time employees. Totals are rounded to the nearest
2023 Gender Representation*
hundred. Employee data from our subsidiary Hemlock Semiconductor (HSC) are not included."
corning-2023-sustainability-report.txt,"numbers
Total employee numbers are based on standard headcount reporting, including employees
on active and paid leave and full- and part-time employees. Totals are rounded to the nearest
2023 Gender Representation*
hundred. Employee data from our subsidiary Hemlock Semiconductor (HSC) are not included.
Administrative/ Management/ Production/
Total
Technical Professionals Maintenance
Total Employees
Female 36% 37% 30% 40%
70,000
Male 64% 63% 70% 60%
61,200
60,000 57,500 Other 0% 0% 0% 0%
50,100
49,500 *Fewer than 10 employees did not identify gender. Employee data from our subsidiary HSC are not included."
corning-2023-sustainability-report.txt,"Management/ Production/
Total
Technical Professionals Maintenance
American Indian/AK Native 0.3% 0.4% 0.2% 0.3%
Employees by Gender Employees by Region Asian 9.7% 3.4% 14.1% 6.7%
Black or African American 10% 5.6% 5.7% 15.7%
35%
64%
30% Hispanic or Latino 5% 4.5% 4.9% 5.1%
male 31%
29%
25%
27%
Native Hawaiian or Other Pacific Island 0.2% 0.1% 0.1% 0.2%
20%
15% White 73.8% 85% 74.2% 70.7%
10% 13%
36% Two or more races 1% 1% 0.9% 1.2%
5%
female
0% Not disclosed 0.0% 0% 0% 0%
APAC EMEA Latin North
America America *Data are presented in line with our definitions, which may differ from SASB definitions. Employee data from our subsidiary HSC are not included."
corning-2023-sustainability-report.txt,"unicate openly with
Compliance Council provides additional management regarding questions, concerns,
oversight and periodic reports to the Audit or suggestions to improve working conditions,
Committee. without fear of retaliation, harassment,
intimidation, or interference. Approximately
We seek to respect and support human rights
60% of Corning employees worldwide are
and labor standards in our operations and
represented by a union, works council, or
supply chain in alignment with standards and
other employee representative body."
corning-2023-sustainability-report.txt,"tigated 110
Code of Conduct guide our actions, including cases involving potential violations of Corning’s
the protection of human and labor rights Code of Conduct, 66 of which were related to
in the workplace. These expectations are human rights issues. Of these cases, 39 were
further supported by our Equal Employment dismissed, 27 cases substantiated, including
Opportunity Policy. Comparable expectations nine still being investigated.
for suppliers are set out in our Supplier Code
of Conduct.
A Corning employee filling an extruder with batch material at an"
corning-2023-sustainability-report.txt,"tection of human and labor rights Code of Conduct, 66 of which were related to
in the workplace. These expectations are human rights issues. Of these cases, 39 were
further supported by our Equal Employment dismissed, 27 cases substantiated, including
Opportunity Policy. Comparable expectations nine still being investigated.
for suppliers are set out in our Supplier Code
of Conduct.
A Corning employee filling an extruder with batch material at an
Environmental Technologies lab in Sullivan Park.
People and communities | Our people 41Supporting employee safety"
corning-2023-sustainability-report.txt,"sessment, industrial hygiene, respiratory protection, Fatalities 0 0 0 0 0
chemical exposure, ergonomics, hearing conservation,
Lost-time injuries/
and radiation protection. These standards describe 122 123 150 120 85
illnesses
regulatory and Corning policy requirements and how to
Recordable injuries/
achieve full and sustainable compliance with both. 297 269 319 309 109
illnesses We aim to achieve zero
All Corning employees are included in Corning’s
safety management system. In addition, every
employee completes mandatory safety training, with"
corning-2023-sustainability-report.txt,"protection. These standards describe 122 123 150 120 85
illnesses
regulatory and Corning policy requirements and how to
Recordable injuries/
achieve full and sustainable compliance with both. 297 269 319 309 109
illnesses We aim to achieve zero
All Corning employees are included in Corning’s
safety management system. In addition, every
employee completes mandatory safety training, with
Fatality rate 0.00 0.00 0.00 0.00 0.00 occupational injuries
content and frequency dependent on regulatory and
Corning requirements and each employee’s role and Lost-time injuries/"
corning-2023-sustainability-report.txt,"employees are included in Corning’s
safety management system. In addition, every
employee completes mandatory safety training, with
Fatality rate 0.00 0.00 0.00 0.00 0.00 occupational injuries
content and frequency dependent on regulatory and
Corning requirements and each employee’s role and Lost-time injuries/
0.21 0.22 0.24 0.18 0.15
illnesses rate
responsibilities.
Recordable injuries/ across all operations.
0.50 0.49 0.50 0.46 0.35
illnesses rate
*Includes employees and contingent workers.
People and communities | Our people 42Supporting employee health Sustainability in action"
corning-2023-sustainability-report.txt,"Health Services has Corning has over 300 automated
medical staff at more than 50 external defibrillators globally, with
locations globally and administers local teams trained to administer first
over 10,000 health surveillance aid and connect with local health Quality starts with the dedication of our employees.
exams annually. service providers. Here, a specialist in our Advanced Optics group
meticulously inspects a boule of glass.
Corning Health Services emphasizes Corning executes emergency
employee well-being with a corporate response drills with first responder"
corning-2023-sustainability-report.txt,"ministers local teams trained to administer first
over 10,000 health surveillance aid and connect with local health Quality starts with the dedication of our employees.
exams annually. service providers. Here, a specialist in our Advanced Optics group
meticulously inspects a boule of glass.
Corning Health Services emphasizes Corning executes emergency
employee well-being with a corporate response drills with first responder
24/7 Health & Safety program, promoting teams at each global site to be
a holistic approach to employee wellness. prepared for medical emergencies."
corning-2023-sustainability-report.txt,"lance aid and connect with local health Quality starts with the dedication of our employees.
exams annually. service providers. Here, a specialist in our Advanced Optics group
meticulously inspects a boule of glass.
Corning Health Services emphasizes Corning executes emergency
employee well-being with a corporate response drills with first responder
24/7 Health & Safety program, promoting teams at each global site to be
a holistic approach to employee wellness. prepared for medical emergencies.
More information on employee"
corning-2023-sustainability-report.txt,"esponse drills with first responder
24/7 Health & Safety program, promoting teams at each global site to be
a holistic approach to employee wellness. prepared for medical emergencies.
More information on employee
health can be found here.
Corning adheres to local
regulations respecting data privacy
for occupational health records.
© Christopher Payne / Esto People and communities | Our people 43Our communities
We invest in our communities
through our daily operations,
philanthropic efforts, and
employee giving."
corning-2023-sustainability-report.txt,"ties | Our people 43Our communities
We invest in our communities
through our daily operations,
philanthropic efforts, and
employee giving.
Employees in Kennebunk, Maine, collect cans and bottles for recycling.
Photo by David Snyder, facilities maintenance
People and communities | Our communities 44Employees help Corning maintain thriving environments where we
live, work, and learn. Here, they fix raised beds in a Corning, New York,
garden that serves the community.
Investing in community impact
Through philanthropic contributions, employee giving, and"
corning-2023-sustainability-report.txt,"eely offer their time and resources to the
community and commend those who do.
People and communities | Our communities 45Employee giving 2023 giving
Corning employees have a long history of giving back to their communities with time and money.
They volunteer as individuals and participate in events organized by the Corning Sustainability Network
(see page 15) and ERGs.
Total giving Matching gifts
Through our U.S. Matching Gifts program, we match individual charitable donations up to $7,500 per
employee annually. Employees can also nominate non-profit organizations for a $1,000 grant through our $3,540,830 in $1,304,383 to"
corning-2023-sustainability-report.txt,"giving 2023 giving
Corning employees have a long history of giving back to their communities with time and money.
They volunteer as individuals and participate in events organized by the Corning Sustainability Network
(see page 15) and ERGs.
Total giving Matching gifts
Through our U.S. Matching Gifts program, we match individual charitable donations up to $7,500 per
employee annually. Employees can also nominate non-profit organizations for a $1,000 grant through our $3,540,830 in $1,304,383 to
Employee Vibrant Community Grants. Our Employee Excellence in Volunteerism Awards allow employees charitable giving to 875 non-profit organizations"
corning-2023-sustainability-report.txt,"o $7,500 per
employee annually. Employees can also nominate non-profit organizations for a $1,000 grant through our $3,540,830 in $1,304,383 to
Employee Vibrant Community Grants. Our Employee Excellence in Volunteerism Awards allow employees charitable giving to 875 non-profit organizations
264 organizations
to honor their colleagues. Recipients choose a non-profit organization to receive a $1,000 grant.
Dollars for Doers Volunteer hours
$338,625 in grants to 374 31,646
non-profit organizations
Employee pledges across the United States"
corning-2023-sustainability-report.txt,"se Mainland United States
In addition, the Corning Research Center Taiwan and the National
Chung Hsing University recognized women studying STEM subjects Corning sponsored a primary school in a rural community in Wuhan near We funded FIRST Robotics teams, helping to inspire young people to thrive as
with the Outstanding Female Researcher Awards. our facility co-located with global display manufacturing leader BOE. Our science and technology leaders and innovators. Several teams included Corning
sponsorship helped renovate the school and provide new laptops for teachers. employee mentors, coaches, and other volunteers."
corning-2023-sustainability-report.txt,"tandards applicable to and access our disclosures
all employees worldwide. We do not tolerate any form of bribery, corruption, or anti-competitive
behavior among our employees, customers, or suppliers. Our compliance
• Employees receive annual mandatory training on our Code of Conduct;
program helps ensure compliance with anti-corruption laws everywhere we
managers receive additional training on how to receive and handle
operate. We require all mid-level and above salaried employees to complete
employee concerns."
corning-2023-sustainability-report.txt,"y at Corning. Our
cybersecurity risk management program is integrated into our enterprise risk management program, and they share common
systems, products, services,
methodologies, incident reporting channels, and governance processes. Our information security program is aligned with the
National Institute of Standards and Technology Cybersecurity Framework, which we use as a guide to help identify, prioritize,
and manage cybersecurity risks relevant to our business.
and programs for customers,
We host employee awareness events and campaigns on topics such as ransomware, identity theft, and mobile security. We"
corning-2023-sustainability-report.txt,"they share common
systems, products, services,
methodologies, incident reporting channels, and governance processes. Our information security program is aligned with the
National Institute of Standards and Technology Cybersecurity Framework, which we use as a guide to help identify, prioritize,
and manage cybersecurity risks relevant to our business.
and programs for customers,
We host employee awareness events and campaigns on topics such as ransomware, identity theft, and mobile security. We
also conduct phishing exercises to help strengthen employee resiliency against cyber threats."
corning-2023-sustainability-report.txt,"nd manage cybersecurity risks relevant to our business.
and programs for customers,
We host employee awareness events and campaigns on topics such as ransomware, identity theft, and mobile security. We
also conduct phishing exercises to help strengthen employee resiliency against cyber threats.
and the security of our
Led by our chief privacy officer, the Corning Data Privacy Office facilitates global protection of personal data through our
global policies and our Binding Corporate Rules (BCR).
employee, customer, and"
corning-2023-sustainability-report.txt,"standards to help employees access and use the technology in a way
that is safe and secure, and aligns with Corning’s Code of Conduct, Data Privacy Policy for Suppliers Privacy Notice for Customers
Corporate Values, and other policies. Privacy Policy Binding Corporate Rules
Governance | Data security and data privacy 59Appendix
• Hemlock Semiconductor
• Stakeholder engagement
• Data tables
Photo
• TCFD disclosure
07
• Climate transition plan
• GRI index
• SASB index
• Forward-looking statement
Employee monitoring powerhouse assets on a rooftop in Corning, New York.Hemlock Semiconductor"
corning-2023-sustainability-report.txt,"ossible
environmental impact
United States. HSC plays an essential role in the semiconductor and solar
industries, with the vision of becoming the preferred supplier of silicon-
• Continue learning from injuries and property incidents in order to advance
enabled technologies to the low-carbon, digital world. To achieve its goals,
Corning safety efforts
HSC draws on the talents of more than 1,350 employees and contractors.
• Continue strong corporate citizenship, and community financial support,
HSC polysilicon is used to make computer chips – the “brains” behind the and encourage increased employee volunteerism"
corning-2023-sustainability-report.txt,"r polysilicon on the planet.
The low embodied GHG emissions in HSC polysilicon materials facilitate the
production of ultra-low-carbon solar panels. These panels allow solar project
developers and owners to lower the embodied carbon of their projects by up
to 50%.
Appendix | Hemlock Semiconductor 61Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our sustainability goals and business strategy.
Stakeholder group
How we engage Key topics
Our people • Employee training and development • Career planning and development"
corning-2023-sustainability-report.txt,". These panels allow solar project
developers and owners to lower the embodied carbon of their projects by up
to 50%.
Appendix | Hemlock Semiconductor 61Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our sustainability goals and business strategy.
Stakeholder group
How we engage Key topics
Our people • Employee training and development • Career planning and development
• Corning intranet • Compensation, benefits, and related policies
• Manager-employee performance management process • Employee Assistance Program"
corning-2023-sustainability-report.txt,"arbon of their projects by up
to 50%.
Appendix | Hemlock Semiconductor 61Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our sustainability goals and business strategy.
Stakeholder group
How we engage Key topics
Our people • Employee training and development • Career planning and development
• Corning intranet • Compensation, benefits, and related policies
• Manager-employee performance management process • Employee Assistance Program
• Employee surveys (Voice to Action) • Mobility across business units and functions"
corning-2023-sustainability-report.txt,"d advise our sustainability goals and business strategy.
Stakeholder group
How we engage Key topics
Our people • Employee training and development • Career planning and development
• Corning intranet • Compensation, benefits, and related policies
• Manager-employee performance management process • Employee Assistance Program
• Employee surveys (Voice to Action) • Mobility across business units and functions
• Code of Conduct training • Performance feedback
• Manager briefings • Wellness support
• Quarterly employee communication meetings • Training and development"
corning-2023-sustainability-report.txt,"oup
How we engage Key topics
Our people • Employee training and development • Career planning and development
• Corning intranet • Compensation, benefits, and related policies
• Manager-employee performance management process • Employee Assistance Program
• Employee surveys (Voice to Action) • Mobility across business units and functions
• Code of Conduct training • Performance feedback
• Manager briefings • Wellness support
• Quarterly employee communication meetings • Training and development
• Corning Incorporated Foundation employee programs • Volunteerism"
corning-2023-sustainability-report.txt,"velopment
• Corning intranet • Compensation, benefits, and related policies
• Manager-employee performance management process • Employee Assistance Program
• Employee surveys (Voice to Action) • Mobility across business units and functions
• Code of Conduct training • Performance feedback
• Manager briefings • Wellness support
• Quarterly employee communication meetings • Training and development
• Corning Incorporated Foundation employee programs • Volunteerism
• Corning Sustainability Network
• Employee Resource Groups"
corning-2023-sustainability-report.txt,"ry and investor conferences
• Corning.com
Our communities • Activities, giving, and other support (e.g., business plans and strategy) by the Corning • Health and human services
Incorporated Foundation and Corning Enterprises • STEM education and cultural awareness
• Office of Racial Equality and Social Unity (ORESU) • Child care, housing, and economic development
• Local operations • Social value creation through volunteerism and grants
• Workforce development
• Diversity, equity, and inclusion
• Engagement of Employee Resource Groups"
corning-2023-sustainability-report.txt,"ory 2: Capital goods 376,977 255,612
Energy
Category 3: Fuel-and-energy-related activities (not included in Scope 1 or 2) 718,161 803,568
Total energy by type Units 2021 2022 2023
Category 4: Upstream transportation and distribution 558,155 463,357
Total energy consumption MWh 9,301,500 10,156,852 10,190,097
Category 5: Waste generated in operations 52,851 53,845
Natural gas MWh 3,688,609 3,483,898 3,324,697
Category 6: Business travel 17,152 24,930
Electricity MWh 5,537,369 6,470,611 6,585,545
Category 7: Employee commuting 111,488 113,551"
corning-2023-sustainability-report.txt,"Total
America America
Water consumption Units All locations Locations with All locations Locations with All locations Locations with
2021 1,900,011 109,207 49,857 1,258,138 3,317,212 water stress water stress water stress
2022 1,830,227 108,717 49,281 1,779,536 3,767,761 Total water m3 4,887,714 3,125,932 4,497,927 2,867,408 3,622,855 2,565,518
consumption
2023 1,817,489 117,085 35,990 1,850,759 3,821,323
Appendix | Data tables 65Data tables continued
People and communities
Employees Employment
Employee numbers are rounded to the nearest hundred and based on standard headcount reporting,"
corning-2023-sustainability-report.txt,"he totals. Hire and termination rates are based on standard Corning metrics, which use average
(rounded) America America
headcounts for the denominator.
Permanent employees 13,700 6,400 13,100 15,100 48,300
Salaried 6,800 2,400 2,100 8,600 19,900
Hourly 6,900 4,000 11,000 6,500 28,400
Part-time 0 200 100 100 400
Full-time 13,700 6,200 13,100 15,000 48,000
Temporary (contingent) 500 500 0 1,000 2,000
Total Workforce 14,200 6,900 13,100 16,100 50,300
Appendix | Data tables 66Data tables continued
Employee demographics/diversity Employee training"
corning-2023-sustainability-report.txt,"standard Corning metrics, which use average
(rounded) America America
headcounts for the denominator.
Permanent employees 13,700 6,400 13,100 15,100 48,300
Salaried 6,800 2,400 2,100 8,600 19,900
Hourly 6,900 4,000 11,000 6,500 28,400
Part-time 0 200 100 100 400
Full-time 13,700 6,200 13,100 15,000 48,000
Temporary (contingent) 500 500 0 1,000 2,000
Total Workforce 14,200 6,900 13,100 16,100 50,300
Appendix | Data tables 66Data tables continued
Employee demographics/diversity Employee training
Administrative/ Management/ Production/ Employee training 2023"
corning-2023-sustainability-report.txt,"America
headcounts for the denominator.
Permanent employees 13,700 6,400 13,100 15,100 48,300
Salaried 6,800 2,400 2,100 8,600 19,900
Hourly 6,900 4,000 11,000 6,500 28,400
Part-time 0 200 100 100 400
Full-time 13,700 6,200 13,100 15,000 48,000
Temporary (contingent) 500 500 0 1,000 2,000
Total Workforce 14,200 6,900 13,100 16,100 50,300
Appendix | Data tables 66Data tables continued
Employee demographics/diversity Employee training
Administrative/ Management/ Production/ Employee training 2023
2023 employee diversity Total"
corning-2023-sustainability-report.txt,",900
Hourly 6,900 4,000 11,000 6,500 28,400
Part-time 0 200 100 100 400
Full-time 13,700 6,200 13,100 15,000 48,000
Temporary (contingent) 500 500 0 1,000 2,000
Total Workforce 14,200 6,900 13,100 16,100 50,300
Appendix | Data tables 66Data tables continued
Employee demographics/diversity Employee training
Administrative/ Management/ Production/ Employee training 2023
2023 employee diversity Total
Technical (A&T) Professionals (M&P) Maintenance (P&M)
Total training hours 501,805
# % # % # % # %
Avg. training hours per employee 12"
corning-2023-sustainability-report.txt,"d all applicable Scope 3 emissions in our 2022 and 2023 Sustainability Reports. We now also track and report all applicable
2023 Sustainability
Scope 3 GHG emissions in our CDP response, along with total Scope 1 and Scope 2 (location- and market-based) emissions.
Report, p.25
The applicable Scope 3 emissions reported to CDP and included in the 2023 Sustainability Report are those in categories 1 through 7, 9, 10, 11, 12, and 15. These categories are: Purchased Goods and Services, Capital Goods,
Fuel- and Energy-Related Activities, Upstream Distribution and Transportation, Waste Generated in Operations, Business Travel, Employee Commuting, Downstream Distribution and Transportation, Processing of Sold Products,"
corning-2023-sustainability-report.txt,"ent, p.32
306-4 Waste diverted from disposal Waste management, p.32
306-5 Waste directed to disposal Waste management, p.32
308: Supplier environmental assessment
3-3 Management of material topics Sustainable supply chain, p.55
308-1 New suppliers that were screened using environmental criteria Sustainable supply chain, p.55
308-2 Negative environmental impacts in the supply chain and Sustainable supply chain, p.55
actions taken
401: Employment
3-3 Management of material topics Our people, p.36
401-1 New employee hires and employee turnover Our people, p.40; Data tables, p.66"
corning-2023-sustainability-report.txt,"ovided to full-time employees that are not provided Our people, p.38
to temporary or part-time employees
401-3 Parental leave Our people, p.38
402: Labor/management relations
3-3 Management of material topics Respecting and protecting human rights and labor standards, p.41
402-1 Minimum notice periods regarding operational changes Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"8
to temporary or part-time employees
401-3 Parental leave Our people, p.38
402: Labor/management relations
3-3 Management of material topics Respecting and protecting human rights and labor standards, p.41
402-1 Minimum notice periods regarding operational changes Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"anagement relations
3-3 Management of material topics Respecting and protecting human rights and labor standards, p.41
402-1 Minimum notice periods regarding operational changes Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"ndards, p.41
402-1 Minimum notice periods regarding operational changes Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"ges Respecting and protecting human rights and labor standards, p.41
Appendix | GRI index 80Disclosure References, comments in italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"italics
403: Occupational health and safety
3-3 Management of material topics Supporting employee safety, p.42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67"
corning-2023-sustainability-report.txt,"42
403-1 Occupational health and safety management system Supporting employee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43"
corning-2023-sustainability-report.txt,"mployee safety, p.42
403-2 Hazard identification, risk assessment, and incident Supporting employee safety, p.42
investigation
403-3 Occupational health services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43
403-7 Prevention and mitigation of occupational health and safety Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"lth services Supporting employee safety, p.42
403-4 Worker participation, consultation, and communication on Supporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43
403-7 Prevention and mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42"
corning-2023-sustainability-report.txt,"upporting employee safety, p.42
occupational health and safety
403-5 Worker training on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43
403-7 Prevention and mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67"
corning-2023-sustainability-report.txt,"ning on occupational health and safety Supporting employee safety, p.42; Data tables, p.67
403-6 Promotion of worker health Supporting employee safety, pp.42-43
403-7 Prevention and mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67"
corning-2023-sustainability-report.txt,"mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40
404-1 Average hours of training per year per employee Investing in our workforce, p.38; Data tables, p.67"
corning-2023-sustainability-report.txt,"usiness relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40
404-1 Average hours of training per year per employee Investing in our workforce, p.38; Data tables, p.67
404-2 Programs for upgrading employee skills and transition Investing in our workforce, p.38"
corning-2023-sustainability-report.txt,"agement of material topics Ethical business practices and compliance, p.53; Respecting and protecting human rights and labor standards, p.41; Sustainable supply chain, p.55. Please see our Code of
Conduct; Human Rights Policy
409-1 Operations and suppliers at significant risk for incidents of Sustainable supply chain, p.55. Please see our Code of Conduct; Human Rights Policy
forced or compulsory labor
410: Security practices
3-3 Management of material topics Data security and data privacy, p.59
410-1 Security personnel trained in human rights policies or Corning does not currently track this data for these employee types."
corning-2023-sustainability-report.txt,"veloped a set of investor-focused
sustainability accounting standards. In the table below, we reference SASB’s disclosures for the
Technology & Communications Sector – Hardware Industry. We do not fully report on all SASB disclosures
at this time and are working to improve our reporting in the future.
Topic Accounting metric Code 2023 reporting
Product Security Description of approach to identifying and addressing data security risks in products TC-HW-230a.1 Data security and data privacy, p.59
Employee Diversity & Inclusion Percentage of gender and racial/ethnic group representation for (1) management, (2) TC-HW-330a.1 Please refer to our People section on page 40 of this report. Further information can be found in our DE&I"
corning-2023-sustainability-report.txt,"ur chief 24 Our environmental strategy 53 Ethical business practices
executive officer and compliance
25 Energy and emissions
5 About this report 55 Sustainable supply chain
31 Water management
6 Sustainability highlights 58 Product quality and safety
32 Waste management
7 Interview with our vice president 59 Data security and data privacy
of sustainability and climate
initiatives
Photo
02 05 07
Vital to progress People and communities Appendix
9 Our business Our people 61 Hemlock Semiconductor
11 Our stakeholders 36 Investing in our workforce 62 Stakeholder engagement"
corning-2023-sustainability-report.txt,"2.5 metric tons
Water
cables that reduced packaging materials
by nearly 454 metric tons, decreasing GHG
Waste emissions by 136 metric tons
Environment | Sustainability in action 33People and
communities
When our people thrive, we thrive. Corning’s heart is made up
Photo of dedicated employees who care deeply about the communities in
05
which we operate. We invest in our people and communities to help
ensure more equitable opportunities for all, and therefore, a more
prosperous world.
Our people
• Investing in our workforce"
corning-2023-sustainability-report.txt,"yees viewed over
Employed Women’s Association to
100,000 courses and more than
fight the scourge of rabies in India
948,000 videos in our learning portal
6 000 Expanded U.S. parental leave
>
,
policy to provide 12 weeks
paid leave for all parents
employees participated in ERG chapters
adding a child to their family
around the world
People and communities 35Our people
Our people-first approach empowers Corning
to develop innovations that will help our
customers meet their most challenging needs.
Investing in our workforce"
corning-2023-sustainability-report.txt,"948,000 videos in our learning portal
6 000 Expanded U.S. parental leave
>
,
policy to provide 12 weeks
paid leave for all parents
employees participated in ERG chapters
adding a child to their family
around the world
People and communities 35Our people
Our people-first approach empowers Corning
to develop innovations that will help our
customers meet their most challenging needs.
Investing in our workforce
Approach
We are focused on attracting and empowering an agile and inclusive What we do:
workforce. Our chief human resources officer sets the direction for"
corning-2023-sustainability-report.txt,"usiness strategy, now and in the future. We seek to attract top requirements.
talent by inviting candidates at all stages of their careers, from all
backgrounds, to consider meaningful roles at Corning.
2023 Results
Through pre-collegiate partnerships, programs with underserved
communities, and recruitment from colleges and universities, we
work to attract early-career talent and build a diverse long-term 2,396 8 6.6%
years
pipeline. We also engage mid-career and strategic talent at all levels.
This includes people returning to the workforce after an absence,"
corning-2023-sustainability-report.txt,"and communities | Our people 36Diversity, equity,
and inclusion
DE&I is foundational to what we do. We believe in investing in the best
talent and are committed to creating an environment where all feel like
they belong.
Corning’s chief DE&I officer leads our Office of Global DE&I and strategy
within our Human Resources organization. With a focus on improving
diversity in leadership, accessing and deploying increasingly diverse
talent pools, and enabling DE&I mindsets, we’re working to attract
and empower an agile and inclusive workforce."
corning-2023-sustainability-report.txt,"t where all feel like
they belong.
Corning’s chief DE&I officer leads our Office of Global DE&I and strategy
within our Human Resources organization. With a focus on improving
diversity in leadership, accessing and deploying increasingly diverse
talent pools, and enabling DE&I mindsets, we’re working to attract
and empower an agile and inclusive workforce.
Learn more in our 2023 DE&I report
People and communities | Diversity, equity, and inclusion 37Developing talent Caring for the whole person
It’s not enough to attract a skilled workforce. We continue to invest by providing our employees with access to training and We work to support the emotional, physical, and mental well-being of our"
corning-2023-sustainability-report.txt,"rogram to Introduced a continuous feedback tool that enables employees. We continue to monitor regularly and make adjustments where
help new supervisors build skills in areas such as active listening employees to request 360 feedback from peers, their appropriate to maintain our global gender pay equity.
and creating a collaborative culture managers, and their own teams
Learn more about our approach to employee wellness
People and communities | Our people 382023 workplace awards and recognition
Our efforts to attract, develop, and retain a highly diverse workforce are"
corning-2023-sustainability-report.txt,"VETS Top 50
Indexes
Received Diversity for
Named Best
Japan Better Tomorrow awards for:
Family-friendly Best-of-the-Best
Recognized Partner
Management Corporations for
of Advancing
Company by the Recognized with
Inclusion by the
Korean Ministry Minorities’ Interest
Forbes Japan National Business
Best DEI Best DEI Best DEI Digital Best Women’s
of Gender Equality in Engineering
Women Award Enterprise Advocacy Application Empowerment Inclusion Consortium
and Family (Gold) and Innovation Enterprise
People and communities | Our people 39Our workforce by the numbers"
corning-2023-sustainability-report.txt,"ity & Social Unity Corning Enterprises
Community Impact & Investment
This centralizes our U.S. philanthropic contributions under a single organization, allowing us to
maximize our impact in the areas that align closely with our Values and business objectives. Outside
the United States, Corning subsidiaries support their communities through localized philanthropic
giving and volunteering.
Our focus areas
• Education: Invest in science, technology, engineering, and mathematics (STEM) and science,
technology, engineering, arts, and mathematics (STEAM) curricula and workforce development."
corning-2023-sustainability-report.txt,"l shareholder meetings
• Investor and analyst days
• Industry and investor conferences
• Corning.com
Our communities • Activities, giving, and other support (e.g., business plans and strategy) by the Corning • Health and human services
Incorporated Foundation and Corning Enterprises • STEM education and cultural awareness
• Office of Racial Equality and Social Unity (ORESU) • Child care, housing, and economic development
• Local operations • Social value creation through volunteerism and grants
• Workforce development"
corning-2023-sustainability-report.txt,"5 567 1,165 706 391 288 668 1,091 2,438
Salaried 6,200 13,700 0 19,900
Turnover rates 11.4% 12.3% 22% 9.3% 13.6% 5.7% 11.9% 29.1% 12.4% 12%
Hourly 11,300 17,000 0 28,300
Voluntary turnover 7.3% 6.3% 11.7% 4.6% 8.9% 3.7% 5.4% 9.9% 8.4% 6.6%
Part-time (estimated) 200 100 0 300 rate
Full-time 17,300 30,600 0 47,900 Voluntary turnover 5.3% 4.6% 11.7% 4.6% 1.9% 3.4% 4.9% 9.8% 4.6% 4.8%
rates without
retirements
Temporary (contingent) 2,000
Involuntary 3.1% 4.5% 9.2% 3.5% 2.9% 0.2% 1.2% 19% 3.9% 4.1%
Total Workforce 18,000 31,600 700 50,300"
corning-2023-sustainability-report.txt,"oyees by type Latin North
APAC EMEA Total temporary employees such as interns are excluded from the totals. Hire and termination rates are based on standard Corning metrics, which use average
(rounded) America America
headcounts for the denominator.
Permanent employees 13,700 6,400 13,100 15,100 48,300
Salaried 6,800 2,400 2,100 8,600 19,900
Hourly 6,900 4,000 11,000 6,500 28,400
Part-time 0 200 100 100 400
Full-time 13,700 6,200 13,100 15,000 48,000
Temporary (contingent) 500 500 0 1,000 2,000
Total Workforce 14,200 6,900 13,100 16,100 50,300"
corning-2023-sustainability-report.txt,"orker health Supporting employee safety, pp.42-43
403-7 Prevention and mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40"
corning-2023-sustainability-report.txt,"mitigation of occupational health and safety Supporting employee safety, p.42
impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40
404-1 Average hours of training per year per employee Investing in our workforce, p.38; Data tables, p.67"
corning-2023-sustainability-report.txt,"usiness relationships
403-8 Workers covered by an occupational health and safety Supporting employee safety, p.42
management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40
404-1 Average hours of training per year per employee Investing in our workforce, p.38; Data tables, p.67
404-2 Programs for upgrading employee skills and transition Investing in our workforce, p.38"
corning-2023-sustainability-report.txt,"management system
403-9 Work-related injuries Supporting employee safety, p.42; Data tables, p.67
403-10 Work-related ill health Supporting employee safety, p.42; Data tables, p.67
404: Training and education
3-3 Management of material topics Investing in our workforce, pp.36-40
404-1 Average hours of training per year per employee Investing in our workforce, p.38; Data tables, p.67
404-2 Programs for upgrading employee skills and transition Investing in our workforce, p.38
assistance programs
404-3 Percentage of employees receiving regular performance and Investing in our workforce, p.38"
Corning_2022_Sustainability_Report.txt,"strengthen sustainability in our global supply chain in three areas:
Environment Social Governance
We strive to use sustainable We are committed to respecting We strive to conduct our business
procurement, eco-friendly human rights; to responsible sourcing ethically and in compliance with
products, and suppliers that work of materials including from diverse, all applicable laws and regulations,
to minimize their carbon footprints small, and local suppliers; and to and we expect our suppliers to
and other environmental impacts. supporting worker health and safety. do the same."
Corning_2022_Sustainability_Report.txt,"agement of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,", p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"2022
Sustainability
ReportTable of
Contents
Introduction People and communities
4 About this report Our people
5 Letter from our chief executive officer 46 Building life-long careers
8 Letter from our VP of sustainability 55 Respecting and protecting human rights
and climate initiatives and labor standards
11 2022 sustainability highlights 57 Employee health and fulfillment"
Corning_2022_Sustainability_Report.txt,"2022
Sustainability
ReportTable of
Contents
Introduction People and communities
4 About this report Our people
5 Letter from our chief executive officer 46 Building life-long careers
8 Letter from our VP of sustainability 55 Respecting and protecting human rights
and climate initiatives and labor standards
11 2022 sustainability highlights 57 Employee health and fulfillment
58 Employee safety"
Corning_2022_Sustainability_Report.txt,"ility highlights
ENERGY
STAR®
Partner of the Year Best safety
>$66M total
For 9th consecutive year named an ENERGY record corporate giving
STAR® Partner of the Year by the U.S.
in company history
Environmental Protection Agency (EPA)
14 out of 15
Added >44 sustainability- 30% board members are independent
related questions of management/
professionals
to our supplier onboarding assessment globally are women
Earned a score of
100 on the Disability
Submitted targets Nearly $1.4M in
Equality Index
for validation employee donations"
Corning_2022_Sustainability_Report.txt,"ion”
Rights Benchmark
in the Information and Communication
Technology sector
95+%
Ranked 4th for corporate
compliance
solar energy usage1
with Corning corporate Scored 100%
within the U.S. manufacturing sector. health and safety
on the Human Rights Campaign
standards at Corning sites
Corporate Equality Index
Created the Building >6,000
Kicked off our
Generational Wealth Fund employees
Scope 3 plan
to support first-time Black home buyers through engaged with our 15
with suppliers who account for
our Office of Racial Equality and Social Unity. In Employee Resource"
Corning_2022_Sustainability_Report.txt,"Health & • Corning developed a revised safety goal for 2023. See page 58-60 for details.
metrics in the top quartile of our Safety • Recordable injuries/illness rate in 2022 was 0.46, the lowest rate for Corning
industry benchmark values SDG 8 on record.
Encourage increased volunteerism Community • The Corning Incorporated Foundation provided more than 256 SDG-related
efforts year over year by supporting, Involvement and grants totaling more than $3.6 million and matched nearly $1.4 million in
rewarding, and recognizing Partnership employee donations to charitable organizations"
Corning_2022_Sustainability_Report.txt,"es coordination of
sustainability program, which SWC, including review and toward the company's sustainability efforts and
includes GHG reduction approval of work efforts short-, medium-, and climate initiatives among the
programs. long-term sustainability sustainability and climate
goals and objectives initiatives department, key
Monitors strategies and
functional departments, and
policies in the areas of
the MAPs
public relations, reputation,
employment policy, human Monitors global trends in
capital management, employee sustainability and changing"
Corning_2022_Sustainability_Report.txt,"mmunity responsibility,
and environmental and social
matters.
*In 2023, we will revise and improve our SWC and SSC governance structure to provide stronger focus on our high-priority sustainability issues.
2022 Corning Sustainability Report 22Corning Sustainability Network
Our employees are passionate about making a positive impact on the world. They are also
essential to achieving our sustainability goals.
In 2022, Corning employees officially launched the Corning Sustainability Network (CSN),
an employee-led group working to accelerate the integration of sustainability into all parts"
Corning_2022_Sustainability_Report.txt,"prove our SWC and SSC governance structure to provide stronger focus on our high-priority sustainability issues.
2022 Corning Sustainability Report 22Corning Sustainability Network
Our employees are passionate about making a positive impact on the world. They are also
essential to achieving our sustainability goals.
In 2022, Corning employees officially launched the Corning Sustainability Network (CSN),
an employee-led group working to accelerate the integration of sustainability into all parts
of Corning through employee education and engagement."
Corning_2022_Sustainability_Report.txt,"natural
resource management in operations
Incorporate energy, water, and natural-resource
innovation in product development, product design,
and manufacturing processes
Engage employees and suppliers in energy, water,
and natural-resource management
Help ensure Corning meets customer requirements
regarding energy, water, and natural-resource
utilization
Analyze and communicate Corning’s progress and
success in energy, water, and natural-resource
innovation to internal and external stakeholders
A Corning Pharmaceutical Technologies employee loads vials in"
Corning_2022_Sustainability_Report.txt,"ing devices to accurately “New water recirculation
measure and track water use (incoming, through
systems are making a
processes, treatment, reuse, and discharge). We will track
water use monthly at each site through our Environment, noticeable difference. That is
Health & Safety (EHS) database and audit our data
annually. This data will direct future water efficiency important not only for our site,
projects.
but for the community in which
we operate and live.”
On a mission to reduce water use
- Corning Pharmaceutical Technologies employee"
Corning_2022_Sustainability_Report.txt,"in our glass products.
• Worked with external recyclers to repurpose glass waste
unsuitable to use as internal cullet within our products,
and now sends no glass waste, and only ~1% of all waste,
to landfill.
2022 Corning Sustainability Report 44People and
communities
By investing in our people and our
communities, we invest in our future and
those of future generations.
In this section:
Our people
People are vital to Corning's progress
Respecting and protecting human
rights and labor standards
Employee wellness and fulfillment"
Corning_2022_Sustainability_Report.txt,"th external recyclers to repurpose glass waste
unsuitable to use as internal cullet within our products,
and now sends no glass waste, and only ~1% of all waste,
to landfill.
2022 Corning Sustainability Report 44People and
communities
By investing in our people and our
communities, we invest in our future and
those of future generations.
In this section:
Our people
People are vital to Corning's progress
Respecting and protecting human
rights and labor standards
Employee wellness and fulfillment
Employee safety"
Corning_2022_Sustainability_Report.txt,"pipeline, distinctive can be found in books or online.
reach the broadest pool of talent, and support talent once Apprenticeship and experience are keys
onboard. We are investing in the creation, advancement,
to success. We want employees who will
and retention of our highly skilled and diverse workforce
join us for their entire careers. In return, we
which represents a rich mix of experiences, cultures,
promise a rewarding workplace where each
perspectives, and backgrounds. Diversity, Equity &
and every employee can grow, thrive, and"
Corning_2022_Sustainability_Report.txt,"Senior Leadership Team, we
continuously adapt our human capital pipeline programs,
processes, and tools with candidate experience and Addressing the shortage of skilled workers
alignment with our Values top of mind. This includes
Through our Technician Pipeline Program (TPP), cohorts
staying up to date on job seeker preferences and trends,
of trainees (selected from external candidates and
as well as conducting additional research to create a
contractors as well as Corning employees not already
compelling global employee value proposition for hiring"
Corning_2022_Sustainability_Report.txt,"o further integrate disability inclusion best
practices into our recruiting efforts.
Through our global DE&I strategy,
we are focused on:
Increasing diversity in leadership
Encouraging mindsets that benefit all
dimensions of diversity
Leveraging global and diverse talent
The TPP cohort celebrates 10 year anniversary.
2022 Corning Sustainability Report 47Supporting life-long learning
Corning is marked by a culture of continuous learning, backed by structured training and mentoring opportunities.
We continued to see strong employee demand for online learning via our I Learn@Corning portal, which provides access to"
Corning_2022_Sustainability_Report.txt,"g global and diverse talent
The TPP cohort celebrates 10 year anniversary.
2022 Corning Sustainability Report 47Supporting life-long learning
Corning is marked by a culture of continuous learning, backed by structured training and mentoring opportunities.
We continued to see strong employee demand for online learning via our I Learn@Corning portal, which provides access to
customized learning content aligned to relevant functions and roles. In less than two years, more than 22,000 accounts have
been established, representing two-thirds of Corning's global employee population."
Corning_2022_Sustainability_Report.txt,"gned to relevant functions and roles. In less than two years, more than 22,000 accounts have
been established, representing two-thirds of Corning's global employee population.
In 2022, Use of the externally Including required
I Learn@Corning hosted LinkedIn content, employees
was the #1 visited Learning resources accessed 1 million
site within Corning's increased over 40% learning videos,
enterprise collaboration compared to 2021; watching them to
network the average time each the end more than
employee spent on the 90% of the time"
Corning_2022_Sustainability_Report.txt,"ay equity
for our global salaried workforce.
2022 Corning Sustainability Report 49Driving continuous
conversations
At Corning, salaried employees co-own and initiate the
performance management process, becoming powerful
champions of their own growth. Employees draft their own
objectives, summarize their accomplishments, and review
their year in a discussion with their managers.
During these conversations, employees at all levels identify
professional development opportunities. In our 2022 Voice
to Action employee survey, 76% of employees agreed with"
Corning_2022_Sustainability_Report.txt,"nitiate the
performance management process, becoming powerful
champions of their own growth. Employees draft their own
objectives, summarize their accomplishments, and review
their year in a discussion with their managers.
During these conversations, employees at all levels identify
professional development opportunities. In our 2022 Voice
to Action employee survey, 76% of employees agreed with
the statement “I know what skills I will need in the future to
be a valuable contributor at Corning.”
To encourage high-quality manager and employee"
Corning_2022_Sustainability_Report.txt,"n setting, performance Luiz Antonio Nichelli, left, and Marcio Rodrigues da Silva, right, are both
management, feedback, and development. part of Optical Communications in Reynosa, Mexico.
Our Thrive@Corning program provides a consistent
approach to conversations that help managers build
stronger relationships with their direct reports, ensuring Strengthening our culture
that there is a common understanding of employees’
of inclusion
needs and priorities. Overall, the intention is to positively
impact retention and employee engagement, while"
Corning_2022_Sustainability_Report.txt,"ployees through focus groups and surveys, as well as looking at external
benchmarks.
In 2022, we refreshed the Value of The Individual to more fully reflect the unique experiences, thoughts, and ideas that every
individual brings to Corning. The new definition also applies gender-neutral language, replacing “his or her” with “their” to help
enable our colleagues who identify as non-binary to feel more fully included.
Inside Corning's Optical Communicaitons Headquarters
Image courtesy of Gensler
2022 Corning Sustainability Report 51Our 15 Employee Resource Groups (ERGs) provide an opportunity for"
Corning_2022_Sustainability_Report.txt,"orning China named
Great Place to Work certification Disability Equality Index and “Top Employer 2023” by
recognition as a “Best Place Top Employers Institute
Named to the Best-of-the-Best to Work” by the American
list of companies for Inclusion Association of People with
by the National LGBT Chamber Disabilities and Disability:IN
of Commerce
Hefei, China, where Corning operates
three large production facilities.
2022 Corning Sustainability Report 52Workplace data
2022 Annualized retention rate
Total employee numbers are based on standard headcount reporting, including employees on active and paid leave, full- and"
Corning_2022_Sustainability_Report.txt,"“Best Place Top Employers Institute
Named to the Best-of-the-Best to Work” by the American
list of companies for Inclusion Association of People with
by the National LGBT Chamber Disabilities and Disability:IN
of Commerce
Hefei, China, where Corning operates
three large production facilities.
2022 Corning Sustainability Report 52Workplace data
2022 Annualized retention rate
Total employee numbers are based on standard headcount reporting, including employees on active and paid leave, full- and
part-time employees, and temporary employees such as interns. Employee data from our subsidiary HSC are not included."
Corning_2022_Sustainability_Report.txt,"ate
Total employee numbers are based on standard headcount reporting, including employees on active and paid leave, full- and
part-time employees, and temporary employees such as interns. Employee data from our subsidiary HSC are not included.
97%
93%
2022 Annualized retention rate
Strategic Other salaried
talent professionals
Employees by region Average years of service
40% 10
34% 8.7
20% 25% 29% 5 7.5 7.1
4.7
12%
0% 0
APAC EMEA Latin North APAC EMEA Latin North
America America America America
2022 salaried employee turnover"
Corning_2022_Sustainability_Report.txt,"0% 10
34% 8.7
20% 25% 29% 5 7.5 7.1
4.7
12%
0% 0
APAC EMEA Latin North APAC EMEA Latin North
America America America America
2022 salaried employee turnover
Gender Region
APAC EMEA Latin North Total
Female Male Other Total
America America
Turnover rate 10.1% 10.0% 0.0% 10.0%
Turnover 9.0% 8.2% 13.8% 10.2% 10.0%
rate
2022 Corning Sustainability Report 53Total employees
70000
61,200
58,000
60000
51,900 50,400 50,100
50000
40000
2018 2019 2020 2021 2022
Workplace data continued
Employees by gender
Total employee numbers are based on standard"
Corning_2022_Sustainability_Report.txt,"egion
APAC EMEA Latin North Total
Female Male Other Total
America America
Turnover rate 10.1% 10.0% 0.0% 10.0%
Turnover 9.0% 8.2% 13.8% 10.2% 10.0%
rate
2022 Corning Sustainability Report 53Total employees
70000
61,200
58,000
60000
51,900 50,400 50,100
50000
40000
2018 2019 2020 2021 2022
Workplace data continued
Employees by gender
Total employee numbers are based on standard
headcount reporting, including employees on active and
paid leave, full- and part-time employees, and temporary
38% 62%
employees such as interns. Employee data from our"
Corning_2022_Sustainability_Report.txt,"2 Corning Sustainability Report 53Total employees
70000
61,200
58,000
60000
51,900 50,400 50,100
50000
40000
2018 2019 2020 2021 2022
Workplace data continued
Employees by gender
Total employee numbers are based on standard
headcount reporting, including employees on active and
paid leave, full- and part-time employees, and temporary
38% 62%
employees such as interns. Employee data from our
female male
subsidiary HSC are not included.
*Fewer than 10 employees did not identify as male or female.
Employee data from our subsidiary HSC are not included."
Corning_2022_Sustainability_Report.txt,"count reporting, including employees on active and
paid leave, full- and part-time employees, and temporary
38% 62%
employees such as interns. Employee data from our
female male
subsidiary HSC are not included.
*Fewer than 10 employees did not identify as male or female.
Employee data from our subsidiary HSC are not included.
2022 Gender representation
Total Administrative/ Management/ Production/
Technical Professionals Maintenance
Female 38% 34% 30% 42%
Male 62% 66% 70% 58%
Other* 0% 0% 0% 0%
*Fewer than 10 employees did not identify as male or female. Employee data from our subsidiary HSC are not included."
Corning_2022_Sustainability_Report.txt,"HSC are not included.
2022 Racial / ethnic group representation (U.S.-based employees only)*
Total Administrative/ Management/ Production/
Technical Professionals Maintenance
American Indian / AK Native 0.3% 0.4% 0.2% 0.3%
Asian 9.8% 3.4% 13.8% 7.6%
Black or African American 11.6% 5.9% 5.8% 18.4%
Hispanic or Latino 4.7% 4.0% 4.5% 5.1%
Native Hawaiian or Other Pacific Island 0.2% 0.2% 0.1% 0.2%
White 72.3% 85.3% 74.6% 67.0%
Two or more races 1.1% 0.7% 0.8% 1.4%
Not disclosed 0.0% 0.1% 0.0% 0.0%
*SASB TC-HW-330a.1 Data are presented in line with our definitions, which may differ from SASB definitions. Employee data from our subsidiary HSC are not included."
Corning_2022_Sustainability_Report.txt,"13.8% 7.6%
Black or African American 11.6% 5.9% 5.8% 18.4%
Hispanic or Latino 4.7% 4.0% 4.5% 5.1%
Native Hawaiian or Other Pacific Island 0.2% 0.2% 0.1% 0.2%
White 72.3% 85.3% 74.6% 67.0%
Two or more races 1.1% 0.7% 0.8% 1.4%
Not disclosed 0.0% 0.1% 0.0% 0.0%
*SASB TC-HW-330a.1 Data are presented in line with our definitions, which may differ from SASB definitions. Employee data from our subsidiary HSC are not included.
2022 Corning Sustainability Report 54A Corning Pharmaceutical Technologies
employee checks outgoing inventory."
Corning_2022_Sustainability_Report.txt,"pectations for suppliers are laid out in our Supplier Code of Conduct. These expectations are further supported
by our Equal Employment Opportunity Policy, which mandates that we treat all employees and applicants equally
and fairly.
Corning respects and supports human rights as set out in these leading global frameworks:
• UN Global Compact
• UN Guiding Principles on Business and Human Rights
• International Labour Organization (ILO)
2022 Corning Sustainability Report 55Respecting labor rights
A positive work environment that reflects the fundamental dignity of every employee and the"
Corning_2022_Sustainability_Report.txt,"quired breaks and rest periods.
Corning also respects the rights of our employees to peacefully and lawfully form, join, not join, or
leave workers’ associations of their own choosing. We encourage all employees to communicate
openly with management regarding questions, concerns, or suggestions to improve working
conditions, without fear of retaliation, harassment, intimidation, or interference. Approximately
60% of Corning employees worldwide are represented by a union, works council, or other
employee representative body."
Corning_2022_Sustainability_Report.txt,"agreements. Topics include: and sales
• Significant changes in technology or methods of • Employment levels and future forecasts
operation affecting working conditions
• Environment, health, and safety
• Workforce reductions, collective redundancies, or layoffs
• Ethics and compliance
• Sale, transfer, or discontinuation of businesses or
• Investments
operations in whole or part
• Organizational structure and anticipated changes
• Mergers and acquisitions
• Subcontracting or outsourcing of work
Additional communication and consultation with Corning’s transnational European Employee"
Corning_2022_Sustainability_Report.txt,"ale, transfer, or discontinuation of businesses or
• Investments
operations in whole or part
• Organizational structure and anticipated changes
• Mergers and acquisitions
• Subcontracting or outsourcing of work
Additional communication and consultation with Corning’s transnational European Employee
Committee may be required where significant changes impact more than one EU country.
Corning employees inspect
a sheet of glass.
2022 Corning Sustainability Report 56Employee wellness
and fulfillment
Our employee health programs"
Corning_2022_Sustainability_Report.txt,"hole or part
• Organizational structure and anticipated changes
• Mergers and acquisitions
• Subcontracting or outsourcing of work
Additional communication and consultation with Corning’s transnational European Employee
Committee may be required where significant changes impact more than one EU country.
Corning employees inspect
a sheet of glass.
2022 Corning Sustainability Report 56Employee wellness
and fulfillment
Our employee health programs
Corning’s success depends on the well-being of our
employees. We support them through our comprehensive Corning takes an active role in promoting employee"
Corning_2022_Sustainability_Report.txt,"ing or outsourcing of work
Additional communication and consultation with Corning’s transnational European Employee
Committee may be required where significant changes impact more than one EU country.
Corning employees inspect
a sheet of glass.
2022 Corning Sustainability Report 56Employee wellness
and fulfillment
Our employee health programs
Corning’s success depends on the well-being of our
employees. We support them through our comprehensive Corning takes an active role in promoting employee
employee benefits program focused on: health in the workplace, starting with our Employee"
Corning_2022_Sustainability_Report.txt,"rching goals:
• Total Health: Helping employees and their families get
and stay healthy
Save a life
• Total Wealth: Offering competitive pay opportunities
that include innovative and valuable benefits Protect Corning people
• Total Self: Encompassing a combination of work-life
Promote well-being
balance benefits and career development opportunities
Learn more about Corning Total Rewards.
Corning Health Services staff support medical emergency Corning programs address a variety of health topics,
response in the workplace. In any employee health crisis, including nutrition, physical exercise, weight management,"
Corning_2022_Sustainability_Report.txt,"Total Self: Encompassing a combination of work-life
Promote well-being
balance benefits and career development opportunities
Learn more about Corning Total Rewards.
Corning Health Services staff support medical emergency Corning programs address a variety of health topics,
response in the workplace. In any employee health crisis, including nutrition, physical exercise, weight management,
Corning procedures include quick evaluation of the smoking cessation, mental health, and work-life balance.
situation, prompt rallying of immediate resources, and Our employee wellness programs seek to educate and"
Corning_2022_Sustainability_Report.txt,"ergency Corning programs address a variety of health topics,
response in the workplace. In any employee health crisis, including nutrition, physical exercise, weight management,
Corning procedures include quick evaluation of the smoking cessation, mental health, and work-life balance.
situation, prompt rallying of immediate resources, and Our employee wellness programs seek to educate and
access to local or regional medical resources to address promote healthy choices and behaviors that benefit
the employee's need. Corning has on-site Health Services employees both at work and at home."
Corning_2022_Sustainability_Report.txt,"y employee health crisis, including nutrition, physical exercise, weight management,
Corning procedures include quick evaluation of the smoking cessation, mental health, and work-life balance.
situation, prompt rallying of immediate resources, and Our employee wellness programs seek to educate and
access to local or regional medical resources to address promote healthy choices and behaviors that benefit
the employee's need. Corning has on-site Health Services employees both at work and at home.
staff at more than 50 locations that monitor employee"
Corning_2022_Sustainability_Report.txt,"al or regional medical resources to address promote healthy choices and behaviors that benefit
the employee's need. Corning has on-site Health Services employees both at work and at home.
staff at more than 50 locations that monitor employee
In 2022, Corning continued to monitor the COVID-19
health using occupational health protocols.
virus. We shared information with employees, including
Corning recognizes the importance of satisfying availability of new bivalent vaccine boosters. Corning also
regulatory obligations in monitoring employee health. We empowered site leaders to adopt protected workplace"
Corning_2022_Sustainability_Report.txt,"ization, and elimination/mitigation >95% of at-risk condition/behavior objectives implemented across
of health and safety at-risk conditions and behaviors across all all operations
operations
Unyielding commitment to building a sustainable, interdependent >95% of safety management system utilization objectives
health and safety culture implemented across all operations
Consistent actions to support the internalization of health and Core Safety and Front-Line Leadership Safety Training developed
safety within each employee and released"
Corning_2022_Sustainability_Report.txt,"ry and Corning policy requirements that apply and Overall program effectiveness is assessed annually and
provide a roadmap for how to achieve full and sustainable opportunities for improvement are documented, assigned,
compliance. In 2022, we implemented an enhanced global and tracked to closure. While safety findings vary across
safety program specifically for office-based employees. our operation, our largest category of findings and
corrective actions in 2022 were in the areas of ergonomics,
Corning’s safety council drives employee participation in"
Corning_2022_Sustainability_Report.txt,"chemical management, contractor
the safety standard development and revision process.
safety, and industrial hygiene. We will be working to
Whenever a safety standard is developed or revised,
address these findings moving forward.
council representatives present the standard to employees
in their region or division and provide feedback to the Our safety training program exceeds local regulatory
standard’s author. Each month, Corning hosts global requirements and strives to ensure all employees
Learn and Leverage employee forums, where a subject- understand and are equipped to meet our safety"
Corning_2022_Sustainability_Report.txt,"se findings moving forward.
council representatives present the standard to employees
in their region or division and provide feedback to the Our safety training program exceeds local regulatory
standard’s author. Each month, Corning hosts global requirements and strives to ensure all employees
Learn and Leverage employee forums, where a subject- understand and are equipped to meet our safety
matter expert reviews the requirements of a standard. expectations. Training content and frequency vary
Afterward, employees from one or more operations who depending on each employee’s role and responsibility."
Corning_2022_Sustainability_Report.txt,"and re-defined our annual safety goal.
In 2022, Corning committed to our new goal of reducing
our total recordable case incident rate within the portion
of our operations that disproportionately contribute to our
overall recordable injury and illness rate by at least 10%. We
also hired a full-time program leader to oversee progress.
At the end of 2022, the weighted Total Recordable Incident
Rate (TRIR) of these five sites was 21% lower than the prior
year.
A Corning Pharmaceutical Technologies
employee packages bulk vials."
Corning_2022_Sustainability_Report.txt,"2 Corning Sustainability Report 60Our communities
Building strong, resilient
communities
Corning and our employees are committed to making
a difference in the communities in which we live and
work, not only through our innovations, but also
through investments and by giving back. Together with
our partners, we strive to overcome the most pressing
challenges and create a better tomorrow.
Our support includes commercial investments that
create local jobs and engage local suppliers, as well as our
philanthropy and employee giving."
Corning_2022_Sustainability_Report.txt,"ach
Corning Enterprises and the Foundation work together under the umbrella Community Engagement. They collaborate to
leverage each other’s strengths and skill sets to take on new initiatives and better meet the needs of our partners in the
community. This approach reflects Corning’s message of unity in the communities in which we operate. Through these
combined entities, Corning provided approximately $12 million to support nonprofits and helped boost the economies in
which we operate in 2022.
Employee giving"
Corning_2022_Sustainability_Report.txt,"ts to take on new initiatives and better meet the needs of our partners in the
community. This approach reflects Corning’s message of unity in the communities in which we operate. Through these
combined entities, Corning provided approximately $12 million to support nonprofits and helped boost the economies in
which we operate in 2022.
Employee giving
In 2022:
Corning employees have a long history of giving
• Corning matched nearly $1.4M in
back to their communities through both time and money.
employee donations, 11% more than"
Corning_2022_Sustainability_Report.txt,"roach reflects Corning’s message of unity in the communities in which we operate. Through these
combined entities, Corning provided approximately $12 million to support nonprofits and helped boost the economies in
which we operate in 2022.
Employee giving
In 2022:
Corning employees have a long history of giving
• Corning matched nearly $1.4M in
back to their communities through both time and money.
employee donations, 11% more than
Through our Matching Gifts program, we match individual in 2021
charitable donations up to $7,500 per employee annually. In"
Corning_2022_Sustainability_Report.txt,"in which we operate. Through these
combined entities, Corning provided approximately $12 million to support nonprofits and helped boost the economies in
which we operate in 2022.
Employee giving
In 2022:
Corning employees have a long history of giving
• Corning matched nearly $1.4M in
back to their communities through both time and money.
employee donations, 11% more than
Through our Matching Gifts program, we match individual in 2021
charitable donations up to $7,500 per employee annually. In
2022, we expanded the eligibility of non-profit organizations • 100 employee-nominated non-profit"
Corning_2022_Sustainability_Report.txt,"than
Through our Matching Gifts program, we match individual in 2021
charitable donations up to $7,500 per employee annually. In
2022, we expanded the eligibility of non-profit organizations • 100 employee-nominated non-profit
in both our Matching Gifts and Dollars for Doers programs organizations received Vibrant Community
and decreased the number of volunteer hours needed to and Excellence in Volunteerism
redeem a grant. This helped lead to a 24% increase in our Grants; in total, $100,000 was
employee participation in the Matching Gifts program and a distributed to 82 non-profit"
Corning_2022_Sustainability_Report.txt,"s
For more than 15 years, the all-volunteer Corning robotics program has helped turn technology into tradition for hundreds of
students in New York state’s Twin Tiers region. Each year, more than 100 students aged 6 to 18 get a chance to try leading-edge
technology, such as 3D printing and computer programming, and receive guidance from more than 50 Corning mentors. In
2022, we expanded the program to students living near Corning sites in Texas and North Carolina. Additionally, a grant from the
Corning Incorporated Foundation and administered by FIRST Robotics provided the Corning-employee supported teams with"
Corning_2022_Sustainability_Report.txt,"ast Africa.
Optical Communications
week of service
In 2022, Optical Communications sponsored a week
of service, helping to give back to local communities
around the world:
47 events in 21 locations
546 employees participated
1,876 volunteer hours
9,465 items donated
$17,440 raised
Employees in the Chinese mainland take part in Corning Optical
Communications' week of service.
2022 Corning Sustainability Report 652022 giving
Corporate giving: Matching gifts:
Total giving: nearly
$66 million $1.4M
Employee-logged volunteer hours: # of recipient non-profit organizations:"
Corning_2022_Sustainability_Report.txt,"t of $12,000 from the Foundation for robotics Foundation will use a $20,000 Corning Incorporated
equipment, the Science Technology Entrepreneurship Foundation grant to support life science literacy in
Leadership Academy (STELA) in Corning, New York, grades 6-12 through teacher training, curriculum
provided a one-week free robotics camp for more than development, workshops, mentoring, and
350 underserved children. Corning employees created lab-based lessons.
STELA and continue their involvement.
Members of the Corning Black Employee Network in In 2022, the Foundation began a relationship with the"
Corning_2022_Sustainability_Report.txt,"dation began a relationship with the
Wilmington, North Carolina, visited the Rachel Freeman Waccamaw Siouan STEM Studio program, whose mission
Elementary School of Engineering to talk about engineering is to teach tribal youth about STEM and give them the
and tutor students in reading, writing, and math. tools for success. The Waccamaw Siouan tribe is one of
eight state-recognized Native American tribes in North
Carolina, with its tribal homeland located just outside
Wilmington, North Carolina.
2022 Corning Sustainability Report 67Global community investments and employee giving"
Corning_2022_Sustainability_Report.txt,"re launched a campaign to collect to outstanding female researchers.
eyeglasses for people across Africa and Asia.
Turkey
Germany Employees in Gebze brought more than 40 kids from a
Volunteers in Berlin staffed a soup kitchen to serve people local orphanage to a fun-filled day at an aquatic park.
in need.
Israel
Supporting scientists and wildlife
Employees in Tel Aviv packaged food to support families
for Rosh Hashana. conservation in Africa
Korea Since 2010, Corning Gorilla Glass has supported
Through employee contributions matched by Corning, the Dian Fossey Gorilla Fund International’s"
Corning_2022_Sustainability_Report.txt,"red by the Gorilla Glass
Employees in Stryków organized a football game and a
charity relay run in which nearly 120 employees supported business. Within the Gorilla Glass lab, scientists can
people with disabilities. conduct groundbreaking studies in the areas of
gorilla physiology, nutrition, and genetics.
2022 Corning Sustainability Report 68Supporting basic needs
We work with partners to support the health and welfare
of those in need.
To help provide humanitarian relief to those in Ukraine,
we donated more than $250,000 through our employee"
Corning_2022_Sustainability_Report.txt,"ect Relief and Save the Children. Our
Optical Communications MAP also has provided work to
more than 350 Ukrainian employees at its operations in
Poland and helped identify and support shelters for family
members of employees.
To help those in need in the United States, our employees
in New York continue to support the United Way of the
Southern Tier, pledging more than $1.3 million in 2022.
In addition, the Foundation awarded a $560,000 grant
for the 2023 community campaign and paid all United
Way administrative costs for employee pledges. Corning"
Corning_2022_Sustainability_Report.txt,"olicies and resources, and
adding visual images and breakout boxes where additional Employees who have responded to 82% 85%
the Voice to Action survey indicating
information is available. Key topics in the refreshed Code
that they understand how to report
of Conduct include, among others, speaking up, avoiding violations
conflicts of interest, promoting respect, and ensuring a
safe Corning.
All employees receive training on Corning’s Code of
Conduct, and we enforce its standards through ongoing
employee communications and certifications. We provide"
Corning_2022_Sustainability_Report.txt,"nge provides us with better consecutive year.
data and insights on our program, a broader system of
potential suppliers, and helps us support suppliers who
need and want certifications.
2022 Corning Sustainability Report 78Data security and data privacy
Protecting data is essential to trusted relationships, and we are committed to diligently safeguarding information entrusted to us.
The Corning Data Privacy Office facilitates global protection of personal data through:
• Policies and procedures
• Employee training"
Corning_2022_Sustainability_Report.txt,", and digitalization strategy as well as significant
information, see our Data Privacy Supplier Program
investments to support information security. This
Overview.
committee also oversees issues and potential risks related
We require all employees to take privacy training. In 2022, to information technology systems, data integrity and
Corning’s Data Privacy Office instituted new, enterprise- protection, business continuity, and cybersecurity.
wide data privacy training, as well as a new privacy
We host employee awareness events and campaigns on"
Corning_2022_Sustainability_Report.txt,"employees to take privacy training. In 2022, to information technology systems, data integrity and
Corning’s Data Privacy Office instituted new, enterprise- protection, business continuity, and cybersecurity.
wide data privacy training, as well as a new privacy
We host employee awareness events and campaigns on
management platform to evaluate and manage Corning’s
topics such as ransomware, identity theft, and mobile
data privacy requirements.
security. We also conduct phishing exercises to help
strengthen employee resiliency against cyber threats."
Corning_2022_Sustainability_Report.txt,"ging inventions to people around the world. In our government affairs work, Corning is committed to ensuring its
public policy engagement meets high ethical standards, is aligned with our corporate interests and Values, and is conducted
in full compliance with applicable laws and corporate policies. This approach extends to Corning engagement on behalf of our
subsidiaries, including Hemlock Semiconductor.
Public policy advocacy Corning employees political
and lobbying action committee (COREPAC)
Corning’s Global Government Affairs organization Corning administers a voluntary U.S. employee-funded"
Corning_2022_Sustainability_Report.txt,"d a greener future by
lowest possible environmental impact.
supplying the rapidly growing solar power industry. In solar
cells, HSC’s polysilicon enables high efficiency and clean • Continue learning from injuries and property incidents to
conversion of solar energy into electricity, created with one advance Corning safety efforts
of the smallest carbon footprints for solar polysilicon on
• Continue strong corporate citizenship, community
the planet. The low embodied greenhouse gas emissions in
financial support, and encourage increased employee"
Corning_2022_Sustainability_Report.txt,"a more diverse, equitable
their projects by up to 50 percent. and inclusive culture while advancing underrepresented
people within the entire organization.
• Partner with suppliers to ensure compliance with its
Supplier Code of Conduct and reduce GHG emissions.
2022 Corning Sustainability Report 83Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our
sustainability goals and business strategy.
Stakeholder group How we engage Key topics
Our people Employee training and development Career planning and development"
Corning_2022_Sustainability_Report.txt,"ire organization.
• Partner with suppliers to ensure compliance with its
Supplier Code of Conduct and reduce GHG emissions.
2022 Corning Sustainability Report 83Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our
sustainability goals and business strategy.
Stakeholder group How we engage Key topics
Our people Employee training and development Career planning and development
Corning intranet Compensation, benefits, and related policies
Manager-employee performance Employee Assistance Program"
Corning_2022_Sustainability_Report.txt,"s.
2022 Corning Sustainability Report 83Stakeholder engagement
The following table highlights the multiple interactions we host to inform and advise our
sustainability goals and business strategy.
Stakeholder group How we engage Key topics
Our people Employee training and development Career planning and development
Corning intranet Compensation, benefits, and related policies
Manager-employee performance Employee Assistance Program
management process Mobility across business units and functions
Employee surveys (Voice to Action) Performance feedback"
Corning_2022_Sustainability_Report.txt,"advise our
sustainability goals and business strategy.
Stakeholder group How we engage Key topics
Our people Employee training and development Career planning and development
Corning intranet Compensation, benefits, and related policies
Manager-employee performance Employee Assistance Program
management process Mobility across business units and functions
Employee surveys (Voice to Action) Performance feedback
Code of Conduct training Wellness support
Manager briefings Training and development
Quarterly employee Volunteerism"
Corning_2022_Sustainability_Report.txt,"Stakeholder group How we engage Key topics
Our people Employee training and development Career planning and development
Corning intranet Compensation, benefits, and related policies
Manager-employee performance Employee Assistance Program
management process Mobility across business units and functions
Employee surveys (Voice to Action) Performance feedback
Code of Conduct training Wellness support
Manager briefings Training and development
Quarterly employee Volunteerism
communication meetings
Corning Incorporated Foundation employee"
Corning_2022_Sustainability_Report.txt,"lopment Career planning and development
Corning intranet Compensation, benefits, and related policies
Manager-employee performance Employee Assistance Program
management process Mobility across business units and functions
Employee surveys (Voice to Action) Performance feedback
Code of Conduct training Wellness support
Manager briefings Training and development
Quarterly employee Volunteerism
communication meetings
Corning Incorporated Foundation employee
programs
Corning Sustainability Network
Employee Resource Groups"
Corning_2022_Sustainability_Report.txt,"d analyst days
Industry and investor conferences
Corning.com
Our communities Activities, giving, and other support (e.g., Health and human services
business plans and strategy) by the Corning STEM education and cultural awareness
Incorporated Foundation and Corning
Enterprises Child care, housing, and economic development
Office of Racial Equality and Social Unity Social value creation through volunteerism and grants
(ORESU) Workforce development
Local operations Diversity, Equity and Inclusion
Engagement of Employee Resource Groups (ERGs)"
Corning_2022_Sustainability_Report.txt,") MT COe 2,488,331 2,967,817
2
Emissions intensity MT COe/1,000 0.24 0.26
2
$ revenue
2022 Corning Sustainability Report 85Data tables - continued
Scope 3 emissions* (MT CO e) 2021
2
Category 1: Purchased goods and services 3,749,225
Category 2: Capital goods 449,814
Category 3: Fuel- and energy-related activities (not included in Scope 1 or 2) 397,100
Category 4: Upstream transportation and distribution 548,863
Category 5: Waste generated in operations 56,518
Category 6: Business travel 17,152
Category 7: Employee commuting 111,488"
Corning_2022_Sustainability_Report.txt,"cations water stress
stress stress
Total water discharge 12,266,299 n/a 14,723,927 1,280,206 15,323,989 1,250,529
2020 2021* 2022*
Locations Locations
All All All Locations with
Water consumption m3 with water with water
locations locations locations water stress
stress stress
Total water consumption 3,697,107 n/a 3,658,735 273,442 4,573,639 199,710
*In 2021 we expanded our reporting boundaries to include Hemlock Semiconductor.
2022 Corning Sustainability Report 87People & Communities
Employees
Employee numbers are rounded to the nearest hundred and based on standard headcount reporting, including employees"
Corning_2022_Sustainability_Report.txt,"00
Total Workforce 60,800
*Fewer than 10 employees did not identify gender.
Employees by type APAC EMEA Latin America North America Total
Permanent employees 14,300 7,000 19,600 17,100 58,000
Salaried 6,900 2,700 1,900 9,300 20,800
Hourly 7,400 4,300 17,700 7,800 37,200
Part-time (estimated) 100 300 0 100 500
Full-time 14,200 6,700 19,600 17,000 57,500
Temporary (contingent) 500 700 100 1,500 2,800
Total Workforce 14,800 7,700 19,700 18,600 60,800
2022 Corning Sustainability Report 88Employment
Employee numbers are rounded to the nearest hundred and based on standard headcount reporting, including employees"
Corning_2022_Sustainability_Report.txt,"Service 6.4 6.9 2.4 6.6 12.4 7.5 7.1 4.7 8.7 6.8
*Attrition data includes Corning salaried employees only (Administrative/Technical and Management/Professional). Production/Maintenance employees
and temporary employees such as interns are excluded from the totals. Hire and termination rates are based on standard Corning metrics which use average
headcounts for the denominator.
**Fewer than 10 employees did not identify gender.
2022 Corning Sustainability Report 89Employee demographics/diversity
Employee numbers are based on standard headcount reporting, including employees on active and paid leave, full- and"
Corning_2022_Sustainability_Report.txt,"n rates are based on standard Corning metrics which use average
headcounts for the denominator.
**Fewer than 10 employees did not identify gender.
2022 Corning Sustainability Report 89Employee demographics/diversity
Employee numbers are based on standard headcount reporting, including employees on active and paid leave, full- and
part-time employees, and temporary employees such as interns. Hemlock Semiconductor employees are not included
in these totals.
Management/ Production/
Administrative/
2022 Employee diversity professionals maintenance Total"
Corning_2022_Sustainability_Report.txt,"e for overseeing
overall company sustainability initiatives with a specific focus on climate initiatives.
2022 Corning Sustainability Report 92Governance - Continued
Disclose the organization’s governance around climate-related risks and opportunities.
Recommended
disclosure Disclosure More information
G2 describe • Chief Strategy Officer: Responsible for overseeing overall company strategy and
management’s role connection of strategy to climate-related risks and opportunities.
in assessing and
• Senior Vice President, Human Resources: Responsible for overseeing employee"
Corning_2022_Sustainability_Report.txt,"lso track and report all
applicable Scope 3 GHG emissions in our CDP response, along with total Scope
1 and Scope 2 (location- and market-based) emissions. The applicable Scope
3 emissions reported to CDP and included in the 2022 sustainability report are
those in Categories 1 through 7, 9, 10, 12 and 15. These categories are: Purchased
Goods and Services, Capital Goods, Fuel and Energy-Related Activities, Upstream
Distribution and Transportation, Waste Generated in Operations, Business Travel,
Employee Commuting, Downstream Distribution and Transportation, Use of Sold"
Corning_2022_Sustainability_Report.txt,"of material topics Sustainable Supply Chain, p. 75-78
308-1 New suppliers that were screened using Sustainable Supply Chain, p. 75-78; Supplier Assessments and Audits, p. 77
environmental criteria
308-2 Negative environmental impacts in the Sustainable Supply Chain, p. 75-78; Supplier Assessments and Audits, p. 77
supply chain and actions taken
2022 Corning Sustainability Report 102Disclosure References, comments in italics
401: Employment
3-3 Management of material topics Our People, p. 45-48
401-1 New employee hires and employee Workplace data, p. 53"
Corning_2022_Sustainability_Report.txt,"of material topics Our People, p. 45-48
401-1 New employee hires and employee Workplace data, p. 53
turnover
401-2 Benefits provided to full-time employees Our People, p. 45-48
that are not provided to temporary or part-time
employees
401-3 Parental leave Our People, p. 45-48
402: Labor/management relations
3-3 Management of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"ires and employee Workplace data, p. 53
turnover
401-2 Benefits provided to full-time employees Our People, p. 45-48
that are not provided to temporary or part-time
employees
401-3 Parental leave Our People, p. 45-48
402: Labor/management relations
3-3 Management of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59"
Corning_2022_Sustainability_Report.txt,"time employees Our People, p. 45-48
that are not provided to temporary or part-time
employees
401-3 Parental leave Our People, p. 45-48
402: Labor/management relations
3-3 Management of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59"
Corning_2022_Sustainability_Report.txt,"Parental leave Our People, p. 45-48
402: Labor/management relations
3-3 Management of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57"
Corning_2022_Sustainability_Report.txt,"agement of material topics Respecting Labor Rights, p. 56
402-1 Minimum notice periods regarding Respecting Labor Rights, p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,", p. 56
operational changes
403: Occupational health and safety
3-3 Management of material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"material topics Employee Safety, p. 58-60
403-1 Occupational health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"l health and safety Employee Safety, p. 58-59
management system
403-2 Hazard identification, risk assessment, Employee Safety, p. 58-59
and incident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60
403-7 Prevention and mitigation of occupational Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"cident investigation
403-3 Occupational health services Employee Wellness and Fulfillment, p. 57
403-4 Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60
403-7 Prevention and mitigation of occupational Employee Safety, p. 58-60
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Employee Safety, p. 58-60"
Corning_2022_Sustainability_Report.txt,"Worker participation, consultation, and Employee Safety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60
403-7 Prevention and mitigation of occupational Employee Safety, p. 58-60
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Employee Safety, p. 58-60
health and safety management system
403-9 Work-related injuries Employee Safety, p. 60"
Corning_2022_Sustainability_Report.txt,"fety, p. 58-60
communication on occupational health and
safety
403-5 Worker training on occupational health Employee Safety, p. 58-60
and safety
403-6 Promotion of worker health Employee Safety, p. 58-60
403-7 Prevention and mitigation of occupational Employee Safety, p. 58-60
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Employee Safety, p. 58-60
health and safety management system
403-9 Work-related injuries Employee Safety, p. 60
403-10 Work-related ill health Employee Safety, p. 60"
Corning_2022_Sustainability_Report.txt,"ation of occupational Employee Safety, p. 58-60
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Employee Safety, p. 58-60
health and safety management system
403-9 Work-related injuries Employee Safety, p. 60
403-10 Work-related ill health Employee Safety, p. 60
404: Training and education
3-3 Management of material topics Our People, p. 46-48
404-1 Average hours of training per year per Corning does not currently track these metrics.
employee"
Corning_2022_Sustainability_Report.txt,"occupational Employee Safety, p. 58-60
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Employee Safety, p. 58-60
health and safety management system
403-9 Work-related injuries Employee Safety, p. 60
403-10 Work-related ill health Employee Safety, p. 60
404: Training and education
3-3 Management of material topics Our People, p. 46-48
404-1 Average hours of training per year per Corning does not currently track these metrics.
employee
404-2 Programs for upgrading employee skills Supporting life-long learning, p. 48"
Corning_2022_Sustainability_Report.txt,"rds. In the table below we reference SASB’s disclosures for the Technology
& Communications Sector — Hardware Industry. We do not fully report on all SASB disclosures at this time
and are working to improve our reporting in the future.
Topic Accounting metric Code 2022 reporting
Product security Description of approach to identifying and TC-HW- Our approach to Data Security and Privacy can be
addressing data security risks in products 230a.1 found in the Governance section of this report,
p. 79
Employee Percentage of gender and racial/ethnic group TC-HW- Please refer to our Employee demographics/"
Corning_2022_Sustainability_Report.txt,"to advance industries
and move the world forward, and in doing so, we position
ourselves to be catalysts for positive change.
2022 Corning Sustainability Report 8“At Corning, encompassed high-speed networks. And that’s why we’re working with
governments and industry leaders around the world to
in our definition of bridge the digital divide. We’re innovating solutions that
help network operators deploy fiber more cost effectively
sustainability is the idea
and easily.
that we serve the future as
And we’re actively advancing the industry’s workforce."
Corning_2022_Sustainability_Report.txt,"ll as the present. We’re In 2022, we joined forces with AT&T to launch an expert-
led Fiber Optic Training Program focused on equipping
working to ensure that all our
thousands of technicians and network specialists across
the industry with the skills crucial to design, engineer,
stakeholders – both today
install, and manage a growing fiber broadband network
and tomorrow – receive the across the United States.
benefits of another 170 years At the same time, as I noted, we’re always planning for
the future. To help build the workforce of tomorrow – for"
Corning_2022_Sustainability_Report.txt,"NIF’s 192 laser beams to its target chamber. Setting in
motion the unprecedented, energy-gaining fusion reaction.
U.S. Energy Secretary Jennifer Granholm hailed it as one of the most
impressive feats of the 21st century, on par with the Wright brothers' first flight at
Kitty Hawk.
Learn more in our Innovation and Product section.
U.S. Secretary of Energy Jennifer Granholm
shares the nuclear fusion news.
Our Communities
We rely on safe, stable, and thriving communities that provide an educated,
diverse workforce and local suppliers who meet our needs. We work to"
Corning_2022_Sustainability_Report.txt,"ging innovations is a primary reason for Commitment to our
people to join the company. long-term relationships
Our senior vice president of human resources is ultimately Very little of what makes Corning
responsible for our efforts to build our talent pipeline, distinctive can be found in books or online.
reach the broadest pool of talent, and support talent once Apprenticeship and experience are keys
onboard. We are investing in the creation, advancement,
to success. We want employees who will
and retention of our highly skilled and diverse workforce"
Corning_2022_Sustainability_Report.txt,"pent on the 90% of the time
platform was nearly three
hours
We invest in leadership development for all Corning employees, from first-line supervisors to senior management.
Examples include our Leadership Fundamentals for Program Managers and our Global Emerging Leaders Program,
which we developed with Harvard Executive Education in the Harvard Business School.
Employees take advantage of Corning's learning
tools to advance their professional growth and
enhance our culture of knowledge-sharing.
2022 Corning Sustainability Report 48Advancing women within our workforce"
Corning_2022_Sustainability_Report.txt,"rough Women’s Partnership for
mentorships, regional networking events, best-practice Growth networking event
in Korea.
sharing, and discussions with senior executives. The group
also offers job-shadowing opportunities to connect with
the next generation of women leaders in local colleges and
universities.
Sophie Cai, a seasoned leader, meets
with emerging talent as part of Rising
We believe in equal pay for equal work. In
Together's mentorship program.
2022, we maintained 100% gender pay equity
for our global salaried workforce."
Corning_2022_Sustainability_Report.txt,"am provides a consistent
approach to conversations that help managers build
stronger relationships with their direct reports, ensuring Strengthening our culture
that there is a common understanding of employees’
of inclusion
needs and priorities. Overall, the intention is to positively
impact retention and employee engagement, while
At Corning, we believe a culture of inclusion is one in
ensuring we are living our Value of The Individual
which all our employees — of any gender, race, ethnicity,
(see workforce data on page 53)."
Corning_2022_Sustainability_Report.txt,"ves to work and feel safe to
express aspects of themselves and perspectives that
may be different from their peers
• Will take action when someone is not being treated
equally or with respect
While we have made progress on our journey, we have
more to do. Our global DE&I education and awareness
efforts include a digital learning series and an online
resource center. In 2022, we introduced Unconscious
Bias training to our global hourly workers11 and Values and
In series of conversations, Corning
employees identify professional Inclusive Behavior training to our global salaried workforce."
Corning_2022_Sustainability_Report.txt,"ually or with respect
While we have made progress on our journey, we have
more to do. Our global DE&I education and awareness
efforts include a digital learning series and an online
resource center. In 2022, we introduced Unconscious
Bias training to our global hourly workers11 and Values and
In series of conversations, Corning
employees identify professional Inclusive Behavior training to our global salaried workforce.
development opportunities. We also expanded transgender awareness training.
11 We introduced Unconscious Bias training to our global salaried workforce in 2021."
Corning_2022_Sustainability_Report.txt,"o these matters:
and provide advance notice according to country-
• Economic and financial situation of the company
specific laws and regulations, internal policies, and, where
applicable, the provisions of collective bargaining and • Anticipated development of business, production,
works-council agreements. Topics include: and sales
• Significant changes in technology or methods of • Employment levels and future forecasts
operation affecting working conditions
• Environment, health, and safety
• Workforce reductions, collective redundancies, or layoffs"
Corning_2022_Sustainability_Report.txt,"ations and with community colleges and technical
optical fiber manufacturing facility in schools on a “train-the-trainer” program. Upon
Mszczonów, Poland, to completion, trainees will be ready to fill needed
meet growing demand for high-speed roles at carriers, construction firms, and
connectivity in the European Union broadband providers.
and surrounding areas. The facility,
one of the largest optical fiber plants
In the above two photos, in the region, adds approximately 250
Wendell P. Weeks,
employees to the company’s workforce"
Corning_2022_Sustainability_Report.txt,"support
including down payments and
appliances. Employees also
helped build homes.
2022 Corning Sustainability Report 63Investing in community engagement
Founded in 1952, the Corning Incorporated Foundation administers Corning’s charitable donations in U.S. communities
where Corning operates. By partnering with local nonprofits, providing grants for programming, and engaging employees,
the Foundation aims to create a sense of belonging, pride, and optimism.
The Foundation focuses in four areas:
• Education and workforce development to provide the"
Corning_2022_Sustainability_Report.txt,"g's people and leaders enable new
possibilities, like augmented reality glass.
2022 Corning Sustainability Report 72Ethical business practices
and compliance
Ethical behavior earns the trust of our customers, protects Corning maintains a robust compliance program in support
our business, and aligns with our Values. To maintain a of our Code of Conduct, including policies that strictly
culture of integrity at Corning, our Compliance Council prohibit discrimination and harassment. When we receive
oversees a centralized compliance program that aligns with allegations of such conduct involving our workforce, we"
Corning_2022_Sustainability_Report.txt,"U.S. Securities and Exchange Commission
Annual shareholder meetings
Investor and analyst days
Industry and investor conferences
Corning.com
Our communities Activities, giving, and other support (e.g., Health and human services
business plans and strategy) by the Corning STEM education and cultural awareness
Incorporated Foundation and Corning
Enterprises Child care, housing, and economic development
Office of Racial Equality and Social Unity Social value creation through volunteerism and grants
(ORESU) Workforce development"
Corning_2022_Sustainability_Report.txt,"e nearest hundred and based on standard headcount reporting, including employees
on active and paid leave, full- and part-time employees, and temporary employees such as interns. Hemlock Semiconductor
employees are not included in these totals.
Employees by type Female Male Other* Total
Permanent employees 22,000 36,000 0 58,000
Salaried 6,400 14,400 0 20,800
Hourly 15,600 21,600 0 37,200
Part-time (estimated) 200 300 0 500
Full-time 21,800 35,700 0 57,500
Temporary employees (contingent) 2,800
Total Workforce 60,800"
Corning_2022_Sustainability_Report.txt,"me (estimated) 200 300 0 500
Full-time 21,800 35,700 0 57,500
Temporary employees (contingent) 2,800
Total Workforce 60,800
*Fewer than 10 employees did not identify gender.
Employees by type APAC EMEA Latin America North America Total
Permanent employees 14,300 7,000 19,600 17,100 58,000
Salaried 6,900 2,700 1,900 9,300 20,800
Hourly 7,400 4,300 17,700 7,800 37,200
Part-time (estimated) 100 300 0 100 500
Full-time 14,200 6,700 19,600 17,000 57,500
Temporary (contingent) 500 700 100 1,500 2,800
Total Workforce 14,800 7,700 19,700 18,600 60,800"
Corning_2022_Sustainability_Report.txt,"ing Continuous Conversations, p. 50
regular performance and career development
reviews
2022 Corning Sustainability Report 103Disclosure References, comments in italics
405: Diversity and equal opportunity
3-3 Management of material topics Supporting life-long learning, p. 48; Strengthening our Culture of Inclusion, p. 50;
Championing DE&I in Local Communities; p. 63
405-1 Diversity of governance bodies and A Well-Qualified and Diverse Board, p. 72; Please see our 2023 Proxy Statement.
employees
405-2 Ratio of basic salary and remuneration of Advancing Women within our Workforce, p. 49"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"leave benefit. 85% of those employees SDG 5, SDG 8
Employment
were currently active as of the end of 2022.
Carrier ESG Report (Health & Safety)
403-1 Occupational health and safety management system SDG 8
Carrier ESG Report (Environment, Health & Safety Management)
Hazard identification, risk assessment
403-2 Carrier ESG Report (Health & Safety) SDG 8
and incident investigation
403-3 Occupational health services Carrier ESG Report (Occupational Health) SDG 8
Carrier ESG Report (Health & Safety)
Worker participation, consultation and"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ystem SDG 8
Carrier ESG Report (Environment, Health & Safety Management)
Hazard identification, risk assessment
403-2 Carrier ESG Report (Health & Safety) SDG 8
and incident investigation
403-3 Occupational health services Carrier ESG Report (Occupational Health) SDG 8
Carrier ESG Report (Health & Safety)
Worker participation, consultation and
403-4 Health and Safety SDG 8
GRI 403: communication on occupational health and safety Environment, Health & Safety Policy
Occupational Health and Safety
403-5 Worker training on occupational health and safety Carrier ESG Report (Training & Development) SDG 8"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"sment
403-2 Carrier ESG Report (Health & Safety) SDG 8
and incident investigation
403-3 Occupational health services Carrier ESG Report (Occupational Health) SDG 8
Carrier ESG Report (Health & Safety)
Worker participation, consultation and
403-4 Health and Safety SDG 8
GRI 403: communication on occupational health and safety Environment, Health & Safety Policy
Occupational Health and Safety
403-5 Worker training on occupational health and safety Carrier ESG Report (Training & Development) SDG 8
403-6 Promotion of worker health Carrier ESG Report (Occupational Health) SDG 3"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"(ESG) Report covers performance for calendar
year 2022. Where relevant, we include information from 2023. The information and data included
A Message From Our Chairman Inclusion & Diversity .......................................... 33
in this report are based on the best available information and data at publication and are subject to
& Chief Executive Officer .................................... 4 Development & Career Growth ...................... 37
change. In some cases, data is estimated.
About Carrier .......................................................... 5 Employee Well-Being ......................................... 39"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"to develop healthy, safe, sustainable and intelligent building and cold chain solutions
that incorporate sustainable design principles and reduce lifecycle impacts.
Achieve carbon neutral operations.
Reduce energy intensity by 10% across our operations.
Achieve water neutrality in our operations, prioritizing water-scarce locations.
Deliver zero waste to landfill from manufacturing locations.
Establish a responsible supply chain program and assess key factory suppliers against program criteria.
Exceed benchmark employee engagement."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"rbon neutral operations.
Reduce energy intensity by 10% across our operations.
Achieve water neutrality in our operations, prioritizing water-scarce locations.
Deliver zero waste to landfill from manufacturing locations.
Establish a responsible supply chain program and assess key factory suppliers against program criteria.
Exceed benchmark employee engagement.
Achieve gender parity in senior leadership roles.
Achieve a diverse workforce that represents the communities in which we live and work.
Foster the growth of Employee Resource Groups (ERGs) to drive social impact."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"rgy-efficiency • Invest in and deliver low-
99% of our carbon footprint, with GHG emissions sustainability programs and solutions carbon, energy-efficient
from our products in use representing the majority. Transparency & Engagement • Prioritize lower embodied • Eliminate fugitive technologies
carbon materials refrigerant emissions • Transition to lower GWP
Scope 1 and Scope 2 make up less than 1% of our Influence
• Facilitate sustainable • Convert fleet to alternative- and natural refrigerants
carbon footprint. Carrier annually discloses progress toward our employee commuting fuel vehicles • Optimize building performance"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ellence
The pillars of Carrier Excellence are culture, competency
and tools:
Culture: Carrier Excellence creates a culture where
opportunities for improvement are valued, enabling us to focus
Carrier Excellence is our continuous improvement framework that on delivering outstanding performance for our customers.
drives operational excellence across the company, enhances customer
Competency: The Carrier Excellence Certification Program
experiences, enables growth and engages employees in problem-
provides a framework for continuous employee learning to help"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ing purposes.
• Compliance with relevant EH&S regulatory requirements in the
locations we operate.
• A formalized EH&S risk management process. Total Waste (metric tons)
Waste & Recycling
• Data and document management, including performance Diverted Disposal
measurement, corrective action monitoring and metrics reporting. Our waste primarily includes
2020 59,626 6,612
metal, wood, paper and glass.
• Best practice sharing on EH&S topics and issues.
To reduce waste, we recycle, 2021 60,405 7,638
• Employee training and engagement."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"These principles guide the management of health and safety risks
management practices to understand and reduce sources of
across our global operations and service locations. Carrier’s EH&S
waste, including: 2020 2021 2022 Policy is reinforced by our EH&S Operating System. This system
supports our ability to maintain safety compliance and continuous
• Installing site storage in the appropriate locations with signage
Operational Waste improvement across our global facilities and field operations,
and employee training."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 28
Occupational Health Training & Development Responsible Supply Chains
GRI 403-3, 403-6, 403-7 GRI 403-5
Our suppliers are a critical part of the global Carrier team. From their
Carrier’s EH&S Operating System identifies critical actions for Carrier’s EH&S Operating System requires the creation and adoption
innovation to their commitment to quality, suppliers work with us every
maintaining occupational health, including employee health and of an annual training plan within our manufacturing and service"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"res the creation and adoption
innovation to their commitment to quality, suppliers work with us every
maintaining occupational health, including employee health and of an annual training plan within our manufacturing and service
day to meet and exceed customer needs. Our suppliers include small
medical surveillance testing and industrial hygiene assessments of operations that includes topics, methods of training, target audiences
to medium enterprises and multinational corporations that provide
hazards that may impact employee health. and training providers."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"o develop long-term business relationships
with our Carrier Preferred-level suppliers.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 30
People
At Carrier, our diverse ideas and perspectives are our
greatest source of innovation. We work as one global
team with The Carrier Way as our foundation.
Culture & Engagement .............. 31
Inclusion & Diversity ................ 33
Development & Career Growth ....... 37
Employee Well-Being ............... 39Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 31"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"company through ongoing communication and
fosters an inclusive and diverse culture. We Respect Integrity Inclusion Innovation Excellence
education on the behaviors that are critical to our
advance our workplace culture by developing and
success, such as having a passion for customers.
deploying best-in-class programs and practices,
providing enriching career opportunities, listening
Leading People The Carrier Way Our behaviors; how we work and win together, while never compromising our values.
to employee feedback and always challenging"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"always challenging
ourselves to do better. We introduced Leading People The Carrier Way –
Passion for Customers Achieve Results
our new talent philosophy anchored in one of The We win when our customers win. We perform, with integrity.
2022 Global Workforce Carrier Way’s key tenets – Build Best Teams. It Play to Win Dare to Disrupt
We strive to be #1 in everything we do. We innovate and pursue sustainable solutions.
was developed with input from leaders across the Choose Speed Build Best Teams
Region Gender company to support employee development and set We focus and move with a bias for action. We develop diverse teams, and empower to move faster."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ath.​
We DIFFERENTIATE based on contributions. Make it happen, together.
We recognize and reward both high performance and highpotential
through differentiated investment, development, compensation and
career progression.
1 I ncludes global voluntary turnover, including retirement and death-in-service,
for permanent employees; does not include temporary employees.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 32
Employee Engagement Engagement Score"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"response to the question, “How
feedback and take action
happy are you working at the company,” was 76, two points 76 Female Male
to drive performance
above benchmark.1
improvement and
increase the impact • 75% of our employees participated in the Pulse survey, U.S. People 72
of our programs. We up from 64% the previous year. of Color
conduct our Pulse global
engagement survey three Carrier
Overall
times a year in local languages. Pulse surveys are
an opportunity for employees to provide honest,
confidential feedback. Employee 74 79"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"Diversity & Belonging and measures progress with
an Inclusion Score. It is based on the question, “I feel a sense of
Going forward, Engagement and Inclusion Score 74
belonging at the company.” Female Male
questions will be asked on every Pulse survey,
as they give important insights and trends
2022 results showed that:
across surveys. U.S. People 68
• Inclusion Score was 74, continuing to exceed the global corporate of Color
benchmark1 of 70 and up from our score of 73 in 2021.
Carrier
Overall
Employee 74 75"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ees training, listening sessions and more
1 Global women and U.S. People of Color.
2 Does not include Toshiba Carrier Corp.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 34
Partnerships Develop & Sponsor
We are proud to partner with two top historically Black colleges and universities (HBCUs) – North Carolina Development and sponsorship are critical to our journey. A key part of our I&D philosophy is the focused
Agricultural and Technical State University and Spelman College – to strengthen our diverse talent pipeline. development of our affinity employee groups."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"arolina Agricultural and Technical State University helps students gain valuable
trajectory. Cohorts engage with internal and external professionals in multiple development experiences
skills and prepare them for future careers through development and mentorship. The five-year sponsorship
ranging from self-assessments to networking, learning sessions and more. Sponsoring managers participate
includes annual programming for career and recruitment initiatives, funding for several student academic
in key learning topics to enhance understanding and provide support for their employee’s journey."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ffiliates. Carrier is also a member of the Society of Hispanic Professional Engineers and the Since inception 160+ Since inception ~40
Society of Women Engineers. We lean forward into our commitments to I&D through participation in regional
in 2019: in 2020:
and national conferences, partnership events and other programming.
graduates across graduates
18
countriesTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 35
Employee Resource Groups"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"o a member of the Society of Hispanic Professional Engineers and the Since inception 160+ Since inception ~40
Society of Women Engineers. We lean forward into our commitments to I&D through participation in regional
in 2019: in 2020:
and national conferences, partnership events and other programming.
graduates across graduates
18
countriesTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 35
Employee Resource Groups
Our global Employee Resource Groups (ERGs)"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"h participation in regional
in 2019: in 2020:
and national conferences, partnership events and other programming.
graduates across graduates
18
countriesTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 35
Employee Resource Groups
Our global Employee Resource Groups (ERGs)
reflect the diversity of Carrier’s workforce and
help develop our affinity groups and are open to
membership for all Carrier employees. The ERGs
have five strategic working areas: education and United Carrier Asian Network Carrier Black Alliance Carrier Hispanics & Latinos Employee"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"wth. American employees. and leadership of Hispanic and Latinx employees.
structure, including a steering committee,
senior leadership sponsorship and a defined
mission statement that aligns with Carrier’s Hosted a series of seminars on cultural Filled backpacks with school supplies and Raised money to fund scholarships
business strategy. awareness, business strategy, problem-solving distributed them to youth in collaboration with awarded to Hispanic students.
and mental health. local agencies.
Employee Resource Groups lead grassroots"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"er hosted events around the world,
recognition of Veterans Day.
such as this one in China, to celebrate International Women’s Day.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 36
Drive Inclusion Lean Forward
The key to inclusion is to listen and learn, and We celebrate diversity, communicate authentically
to educate leaders and employees across the In 2022, 96% of our and transparently about our progress toward
organization. Through Employee Resource Groups, inclusion and continuously look for new ideas to"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"Parity, a coalition of business leaders dedicated to addressing the
corporate leadership gender gap. Carrier has pledged to achieve gender parity in senior leadership roles
by 2030.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 37
Development & Career Growth Capability & Skills Development
GRI 404-2
GRI 404-1, 404-2
Learning and development are core to Carrier’s culture. We provide employees with the knowledge,
Employee development and continuous learning programs are a priority for Carrier. We invest in our people so experience and perspective they need to achieve ever-higher levels of performance in their careers."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"nal Program: Recent graduates build skills through rotations in different disciplines In 2022, our non-production employees averaged approximately 12 hours of formal training, including ethics
within our Digital Technology, Engineering, Finance and Operations organizations. Through work experience, and compliance, management and professional development courses to align our teams to The Carrier Way.
seminars, mentoring and guidance from Carrier leaders and program alumni, the rotational program
develops employee capabilities, enhances learning and develops future leaders. Carrier Employee Scholar Program"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ntoring and guidance from Carrier leaders and program alumni, the rotational program
develops employee capabilities, enhances learning and develops future leaders. Carrier Employee Scholar Program
• U niversity Engagement: Through our on-campus recruiting program and strategic university partnership
Carrier is committed to the continued development and engagement of our people. We promote continuous
engagement, we focus on attracting the best talent and providing rewarding career opportunities.
learning through our Employee Scholar Program, covering the cost of an employee’s tuition, academic fees"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"university partnership
Carrier is committed to the continued development and engagement of our people. We promote continuous
engagement, we focus on attracting the best talent and providing rewarding career opportunities.
learning through our Employee Scholar Program, covering the cost of an employee’s tuition, academic fees
and books at approved universities.
In 2022, we welcomed:
90+ ~600+ ~$170M 50+ 8,600+ 400+
early career hires interns around INVESTED since COUNTRIES DEGREES EARNED CURRENT
for our leadership the world inception in 1996 with employee since inception PARTICIPANTS"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"cs critical to building leadership capability for mid-career talent and equips professionals with leaders with potential for growth into
Carrier’s success. early in one’s career. the mindset, skills and tools they need to achieve broader roles.
organizational and personal objectives.
300+ Carrier employees graduated from
one of our Talent Possible cohorts in 2022.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 39
Performance Management & Development Reviews Employee Well-Being"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"n 2022.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 39
Performance Management & Development Reviews Employee Well-Being
GRI 404-3
GRI 401-2
We are strengthening our approach to well-being by fostering dialogue between employees and their
managers and measuring well-being in Pulse engagement surveys.
Flexible Work
We enhanced Performance Connections, our performance management and development program, to foster
authentic, two-way conversations on employee well-being and overall engagement. The program sets the Carrier’s global flexible work philosophy is rooted in four key tenets."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"those employees whose roles and responsibilities allow for remote work. May be subject to location regulation or bargaining/consultation requirement.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 40
Health & Wellness
Carrier offers competitive benefits programs for all employees, The following benefits reflect our offerings in the United States for salaried and nonunion hourly employees. Benefits vary by region,
monitoring new market developments and enhancing our programs business alignment, union agreement and employee status:"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"overage • Accident insurance
In coordination with each country’s social welfare system, and in
addition to any required local healthcare participation, we may • Prescription drug coverage • Critical illness insurance
provide additional benefits based on the market competitiveness in • Health savings account (HSA) • Auto/home insurance
that country. We meet all local regulations related to benefits.
• Flexible spending account (FSA) • Pet insurance
• Legal insurance
Health and Wellness Resources
In 2022, we launched our Employee"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"rovides • Resources to compare medical service prices and doctor reviews • Paid vacation and paid holidays
• Medical protection for business travelers • Adoption/surrogacy assistance
access to resources and confidential
• Parental leave
support on work-life balance, family,
Financial Benefits and Resources
• Medical and family leave of absence
mental health and more.
• Retirement savings plan 401(k) • Bereavement leave
• Retirement investment guidance • Short- and long-term disability insurance
Additionally, to encourage preventive screenings and healthy behaviors, • Employee Scholar Program"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"rds of Monterrey and its metropolitan area, resulting in more than 8,000
that provide the public with real-time air quality information about tons of avoided soil erosion.
Communities pollution levels. Data is also available through a mobile app. The • I n the United States, to promote coastal resilience and
campaign provides tips on reducing pollution and organizes hands-on
conservation, Carrier employees planted 1,000 mangroves.
activities to educate and engage communities on actions they can
Employee volunteers also removed invasive plants from a"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"vernance ESG Indices Carrier 2023 ESG Report 44
Communities 2022 Community Impact
Habitat for Humanity $1.3M+ 1,100+
Carrier supported home builds across six U.S. cities as a signature
INVESTED IN COMMUNITIES ORGANIZATIONS
partner of Habitat for Humanity’s Home is the Key campaign to
through the Carrier Matching SUPPORTED
create safe and affordable housing. We also supported additional
Gifts Program, doubling through the Carrier
home builds across the country. Our involvement includes volunteer
employee donations Matching Gifts Program"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"pport the Ukrainian people, and contributions Humanity home builds in Indianapolis
providing educational resources on home safety, Kidde teamed up were matched dollar for dollar by Carrier. In addition, employees across six U.S. cities
with other organizations to donate fire safety products to communities participated in humanitarian efforts. Carrier also provided job
in need. opportunities to refugees who fled their homes and country, and
donated fire extinguishers to people in Ukraine.
7,500+
EMPLOYEE VOLUNTEER HOURS logged in the"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"stments to strategic and business initiatives, ERM policies and practices. Responsibility for the oversight of specific risk categories is allocated among the
including compliance, financial, geopolitical, legal, research and development, product design, Board and its committees as follows:
operational, regulatory, reputational and strategic. increased protections for our facilities and supply
Within these broad categories, specific risks include chain, and enhanced internal controls, including
climate impacts; cybersecurity; the competitive employee and contractor training. For example, in Full Board of Directors"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"lis Carrier. Almost a century later, the same ideals remain Code of Ethics
embedded in our culture.
We aim to be world-class in everything we do – including our compliance with all laws and regulations and our Code of Ethics, which
At Carrier, we expect high performance and high integrity from our
applies everywhere we do business. The Code of Ethics integrates our core values that serve as the foundation of our culture: respect,
employees and everyone with whom we conduct business. It is never
integrity, inclusion, innovation and excellence. Every employee is responsible for ensuring that Carrier’s business is conducted in"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ing Carrier to be collects, processes or transfers personal data. We take appropriate
The Carrier Way. We take robust and thorough measures to protect more efficient and more innovative. We compete vigorously and legally, steps to safeguard personal data under our control from unauthorized
our employees. We also promote positive change by encouraging our not only because it is good for our business, but because it is the right access, misuse, impermissible disclosure, alteration or unauthorized
business partners and communities to respect human rights as well. thing to do. Every employee is responsible to ensure Carrier complies destruction. Carrier discloses personal data only to employees and"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"authorized
business partners and communities to respect human rights as well. thing to do. Every employee is responsible to ensure Carrier complies destruction. Carrier discloses personal data only to employees and
In compliance with our Human Rights Policy, we ensure safe, with all applicable competition laws. third parties having a legitimate business need to know, as
healthy and sustainable working conditions; require a respectful, permitted by applicable law, and under appropriate legal and
harassment-free workplace; prohibit discrimination; deliver employee Cybersecurity contractual restrictions."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"the company and external stakeholders. Carrier • Inclusion and diversity
recognizes the ESG and sustainability disclosure landscape is rapidly
• Human and labor rights
evolving, and we will continue to reassess these reporting topics.
• Community engagement
and investmentTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 53
Stakeholder Engagement
GRI 2-25, 2-29, 413-1
Carrier advances the long-term interests of our
company and our shareowners by responsibly We encourage feedback from our employees through regular Pulse surveys, town hall meetings, Employee Resource"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"erted from disposal SDG 3, SDG 12
Carrier ESG Report (Waste)
ESG Summary Data (Waste) SDG 6, SDG 14,
306-5 Waste directed to disposal
Carrier ESG Report (Waste) SDG 15
New suppliers that were screened using
308-1 Carrier ESG Report (Engaging Our Supply Chain)
GRI 308: environmental criteria
Supplier Environmental Assessment Negative environmental impacts in the supply chain
308-2 Carrier ESG Report (Engaging Our Supply Chain)
and actions taken
Carrier ESG Report (Global Workforce) SDG 5, SDG 8,
401-1 New employee hires and employee turnover"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"e) SDG 6, SDG 14,
306-5 Waste directed to disposal
Carrier ESG Report (Waste) SDG 15
New suppliers that were screened using
308-1 Carrier ESG Report (Engaging Our Supply Chain)
GRI 308: environmental criteria
Supplier Environmental Assessment Negative environmental impacts in the supply chain
308-2 Carrier ESG Report (Engaging Our Supply Chain)
and actions taken
Carrier ESG Report (Global Workforce) SDG 5, SDG 8,
401-1 New employee hires and employee turnover
ESG Summary Data (Employees) SDG 10
Carrier ESG Report (Employee Well-Being)"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"covered by an occupational health and
403-8 Carrier ESG Report (Environment, Health & Safety Management) SDG 8
safety management system
ESG Summary Data (Employees) SDG 3, SDG 8,
403-9 Work-related injuries
Carrier ESG Report (Health & Safety) SDG 16Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 63
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
ESG Summary Data (Employees) SDG 4, SDG 5,
404-1 Average hours of training per year per employee"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"y management system
ESG Summary Data (Employees) SDG 3, SDG 8,
403-9 Work-related injuries
Carrier ESG Report (Health & Safety) SDG 16Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 63
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
ESG Summary Data (Employees) SDG 4, SDG 5,
404-1 Average hours of training per year per employee
Carrier ESG Report (Development & Career Growth) SDG 8, SDG 10
GRI 404: Programs for upgrading employee skills and"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"0 0
Total hazardous waste and nonhazardous
waste diverted:
On-site metric tons (t) 0 0 0
Off-site metric tons (t) 64,429 60,405 59,626Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 68
Employees
Region 2022 2021 2020 Region 2022 2021 2020
Americas 43% 34% 34% Americas 20.8% 16.7% 11.4%
EMEA 27% 37% 40% EMEA 9.4% 8.3% 6.1%
APAC 30% 29% 26% APAC 14.3% 15.9% 9.0%
GRI 2-7:
Employees GRI 401-1: Total 15.6% 13.3% 8.7%
Employee turnover"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"2021 2020 Region 2022 2021 2020
Americas 43% 34% 34% Americas 20.8% 16.7% 11.4%
EMEA 27% 37% 40% EMEA 9.4% 8.3% 6.1%
APAC 30% 29% 26% APAC 14.3% 15.9% 9.0%
GRI 2-7:
Employees GRI 401-1: Total 15.6% 13.3% 8.7%
Employee turnover
Gender 2022 2021 2020
Female 29% 27% 27%
Gender 2022 2021 2020
Male 71% 73% 73%
Female 18.6% 15.6% 9.7%
Male 14.4% 12.5% 8.0%
Total 15.6% 13.3% 8.7%
All non-production
Gender Executives Professionals
employees
GRI 404-1:
Average hours of
Female 12 13 12
training per year
per employee Male 10 12 12 Unit 2022 2021 2020"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ericas 20.8% 16.7% 11.4%
EMEA 27% 37% 40% EMEA 9.4% 8.3% 6.1%
APAC 30% 29% 26% APAC 14.3% 15.9% 9.0%
GRI 2-7:
Employees GRI 401-1: Total 15.6% 13.3% 8.7%
Employee turnover
Gender 2022 2021 2020
Female 29% 27% 27%
Gender 2022 2021 2020
Male 71% 73% 73%
Female 18.6% 15.6% 9.7%
Male 14.4% 12.5% 8.0%
Total 15.6% 13.3% 8.7%
All non-production
Gender Executives Professionals
employees
GRI 404-1:
Average hours of
Female 12 13 12
training per year
per employee Male 10 12 12 Unit 2022 2021 2020
for 2022
Employee 0 0 0"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"team works to make a positive difference for
by 2030. Importantly, the REPowerEU plan aims to
people and the planet – and together, we inspire
double heat pumps to 10 million units over the nextTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 5
About Carrier 2022 Net Sales Breakdown
Carrier is a global leader in intelligent climate and energy solutions, with a diverse and world-class
Net sales by business segment1
workforce. With more than a century of expertise, we drive innovation while putting our customers first,"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ment and external investments by
Up to
Carrier Ventures.
efficiency gains can be achieved Carrier’s Healthy Homes Program includes a suite of targeted solutions that can help improve
from smart buildings the overall health and safety of homes and the people inside. Our businesses continue to
ESG in Practice
introduce innovations that give people greater awareness and control of their home’s health.
~40%
Our 2030 ESG goals commit us to pursuing
decarbonized solutions and operations, an inclusive
of all perishable food loss could be and diverse workforce, and vibrant communities."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"that incorporate sustainable design principles and reduce lifecycle impacts.
Achieve carbon neutral operations.
Reduce energy intensity by 10% across our operations.
Achieve water neutrality in our operations, prioritizing water-scarce locations.
Deliver zero waste to landfill from manufacturing locations.
Establish a responsible supply chain program and assess key factory suppliers against program criteria.
Exceed benchmark employee engagement.
Achieve gender parity in senior leadership roles.
Achieve a diverse workforce that represents the communities in which we live and work."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,".......... 33
Development & Career Growth ....... 37
Employee Well-Being ............... 39Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 31
Culture & Engagement The Carrier Way
GRI 2-7, 2-29, 3-3, 401-1, 405-1 The Carrier Way is the foundation of everything Our aspiration; why we come to work every day.
we do. It defines our vision, reaffirms our values, Creating solutions that matter for people and our planet.
Global Workforce"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"a passion for customers.
deploying best-in-class programs and practices,
providing enriching career opportunities, listening
Leading People The Carrier Way Our behaviors; how we work and win together, while never compromising our values.
to employee feedback and always challenging
ourselves to do better. We introduced Leading People The Carrier Way –
Passion for Customers Achieve Results
our new talent philosophy anchored in one of The We win when our customers win. We perform, with integrity.
2022 Global Workforce Carrier Way’s key tenets – Build Best Teams. It Play to Win Dare to Disrupt"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ships with colleges, universities and professional
Our greatest strength is the diversity of our people and their ideas. We are
organizations; and hiring and promoting the most talented employees. We build an intentional connection
committed to a workplace that is truly and genuinely inclusive, one that inspires
between our talent practices and inclusion and diversity (I&D). While our efforts to build an inclusive and
and encourages everyone, everywhere, to bring their authentic selves to work,
diverse workforce have yielded results, we acknowledge that it is a journey and we have more work to do."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ssional Engineers and the Since inception 160+ Since inception ~40
Society of Women Engineers. We lean forward into our commitments to I&D through participation in regional
in 2019: in 2020:
and national conferences, partnership events and other programming.
graduates across graduates
18
countriesTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 35
Employee Resource Groups
Our global Employee Resource Groups (ERGs)
reflect the diversity of Carrier’s workforce and"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"a steering committee,
senior leadership sponsorship and a defined
mission statement that aligns with Carrier’s Hosted a series of seminars on cultural Filled backpacks with school supplies and Raised money to fund scholarships
business strategy. awareness, business strategy, problem-solving distributed them to youth in collaboration with awarded to Hispanic students.
and mental health. local agencies.
Employee Resource Groups lead grassroots
efforts to drive a culture of inclusion and celebrate
the diversity of our global workforce."
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"... 52
Stakeholder Engagement ............ 53
ESG Data .......................... 55Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 52
ESG Focus Areas
GRI 3-1, 3-2, 3-3
Carrier takes a transparent and data-driven approach to identifying
what is important to our business, stakeholders and the environment. Economic Environmental Products Social &
It informs our products, operations, investments and long-term vision
Workforce"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"GRI 2:
July 26, 2023
General Disclosures
Contact: corporateresponsibility@carrier.com
2-4 Restatements of information Carrier ESG Report (About This Report)
At this time, Carrier does not have our Environmental, Social & Governance Report
2-5 External assurance
externally assured.
Activities and workers
Form 10-K, p. 4 (Business)
Activities, value chain and other
2-6 Form 10-K, p. 7 (Raw Materials and Supplies)
business relationships
Form 10-K, p. 7 (Joint Ventures and Strategic Relationships)
2-7 Employees In 2022, excluding Toshiba Carrier Corp. employees, the workforce was ~47,000 (Global Workforce).Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 56"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"aste
SDG 15
ESG Summary Data (Waste)
306-4 Waste diverted from disposal SDG 3, SDG 12
Carrier ESG Report (Waste)
ESG Summary Data (Waste) SDG 6, SDG 14,
306-5 Waste directed to disposal
Carrier ESG Report (Waste) SDG 15
New suppliers that were screened using
308-1 Carrier ESG Report (Engaging Our Supply Chain)
GRI 308: environmental criteria
Supplier Environmental Assessment Negative environmental impacts in the supply chain
308-2 Carrier ESG Report (Engaging Our Supply Chain)
and actions taken
Carrier ESG Report (Global Workforce) SDG 5, SDG 8,"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ls and
404-2 Carrier ESG Report (Development & Career Growth) SDG 4, SDG 8
Training and Education transition assistance programs
Percentage of employees receiving regular SDG 4, SDG 8,
404-3 Carrier ESG Report (Performance Management & Development Reviews)
performance and career development reviews SDG 10
Carrier ESG Report (Reduce the Gap)
GRI 405:
405-1 Diversity of governance bodies and employees Carrier 2023 Proxy Statement, p. 3 (Board Nominees) SDG 5, SDG 8
Diversity and Equal Opportunity
Carrier ESG Report (Global Workforce)"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"rm 10-K) for Carrier. All data is as of
December 31, 2022 for calendar year 2022.
Topic Accounting Metric Code Unit of Measure Carrier 2022 Response
(1) Total energy consumed GJ 3,571,911
Energy Management (2) Percentage grid electricity RT-EE-130a.1, RT-IG-130a.1 Percentage 44%
(3) Percentage renewable Percentage 0.27%
Amount of hazardous waste generated Metric tons (t) 2,338
Hazardous Waste Management RT-EE-150a.1
Percentage recycled Percentage 52%
(1) Total recordable incident rate Rate 0.31
Workforce Health and Safety1 RT-IG-320a.1"
Corporate-Carrier-2023-ESG-Report-0723-English_tcm558-205336.txt,"ted with anticompetitive behavior regulations
RT-EE-510a.3 Reporting currency
associated with anticompetitive behavior regulations that would have a material impact on our company or
our stakeholders.
Remanufacturing Design
Revenue from remanufactured products and remanufacturing services RT-IG-440b.1 Reporting currency Carrier ESG Report (Circular Business Models)
& Services
In 2022, excluding Toshiba Carrier Corp. employees,
Activity Metrics Number of employees RT-EE-000.b, RT-IG-000.b Number
the workforce was ~47,000.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 71"
Corporate_Impact_Report_2023.txt,"Y
It is a mindset that guides not only how
we treat our customers and fellow as- WILL BE MORE LIKELY TO
sociates, but also how we care for our
communities. In 2023 we continued COMPLETE HIGH SCHOOL
our observance of Martin Luther King
Jr. Day as a paid holiday for our U.S. AND REALIZE THEIR DREAMS.
offices, with employees across the U.S.
donating their time, talent and financ- I CAN’T THINK OF A BETTER
es in their communities to promote
CAUSE TO GET BEHIND.”
change and make a difference. Garmin
matched all employee donations in"
Corporate_Impact_Report_2023.txt,"that shows that every
dream begins with reading. The film
debuted at the organization’s annual
07 fundraising gala.STRATEGIC FOCUS: OUR PEOPLE
IN 2024 GARMIN WAS RECOGNIZED FOR CAREER GROWTH AND RETENTION
globally diverse and inclusive work-
CREATING A BEST-IN-CLASS WORKPLACE:
force has been a key to our success.
We attribute much of our success to
hiring the best employees. Our efforts We continually look for new avenues
don’t stop at recruiting and hiring. We to create a diverse and inclusive
believe in developing each employee’s workforce. Our offices in Taiwan have"
Corporate_Impact_Report_2023.txt,"- and we believe they can make valu-
cant resources in our talent develop- able contributions to our company.
ment programs to provide employees We also partner with the Spinal Cord
with the training and education they Injury Group of Taiwan, which has
need to achieve their career goals, helped us find qualified candidates.
build relevant skills and bring value We have strategic investments in the
to their teams. To support this, we U.S. to broaden our recruiting pipeline
RANKED NO. 2 ON FORBES
provide employee benefits (which and have adjusted our outreach and"
Corporate_Impact_Report_2023.txt,"that shows that every
dream begins with reading. The film
debuted at the organization’s annual
07 fundraising gala.STRATEGIC FOCUS: OUR PEOPLE
IN 2024 GARMIN WAS RECOGNIZED FOR CAREER GROWTH AND RETENTION
globally diverse and inclusive work-
CREATING A BEST-IN-CLASS WORKPLACE:
force has been a key to our success.
We attribute much of our success to
hiring the best employees. Our efforts We continually look for new avenues
don’t stop at recruiting and hiring. We to create a diverse and inclusive
believe in developing each employee’s workforce. Our offices in Taiwan have"
Corporate_Impact_Report_2023.txt,"WING CORPORATE RANKINGS: development to help enhance their
skills and experience. We believe the
results of these efforts are reflected
NEWSWEEK MOST
in the long tenure of our employees.
TRUSTWORTHY COMPANIES During 2023 the average tenure across
the entire company was approximately
IN AMERICA 5 years.
WORKPLACE INCLUSION
FORBES BEST BRAND FOR
Garmin serves customers from all
SOCIAL IMPACT walks of life, experiences and back-
grounds. We believe it’s important We also have important investments
for our workforce to be diverse and in STEM initiatives that encourage"
Corporate_Impact_Report_2023.txt,"ity- and inclusion-focused
teams and thousands of teachers and workshops and provide peer mentor-
students from 18 counties in Taiwan ship through our BRGs. More infor-
and Ho Chi Minh City took part in mation on resource groups at Garmin
the competition. We believe that our and other diversity and inclusion
“WHEN I TAKE THESE GIRLS investments in STEM will, in the long efforts can be found on our Careers -
term, go a long way in promoting Diversity and Inclusion website.
FLYING AND ASK ‘DO YOU
diversity across our workforce."
csr-year-2022-pdf.txt,"ur customers, business partners and communities. To achieve our greatest potential, we
Inclusion (DEI)
must engage with and reflect the communities that we serve.
Our employees are our greatest asset. Employees who are invested in developing their careers at Exelon, and in engaging with the
Employee Engagement 8 communities that we serve, help us to develop programs and actions that support clean, affordable and reliable energy delivery
systems and promote positive social and economic outcomes.
We continually strive to minimize worker exposure to potential health and safety hazards. We also support employee wellness"
csr-year-2022-pdf.txt,"10 strategic initiatives in 2022 Administration (OSHA) recordable safety
safety management systems (SMS) and targeted to improve safety programs and safety training with performance in 2022 outperformed industry
strategic initiatives for continuous improvement a focus on safety methods and industrial hygiene standards, the one fatality previously discussed
in safety programs and safety culture. We conduct excellence, training excellence, and fostering a represents an unacceptable failure of our
risk assessments, track and investigate incidents learning organization that continuously seeks to commitment to ensure that every worker gets home"
csr-year-2022-pdf.txt,"ational Health and Safety Workplace Safety Management and Performance
GRI 403: Occupational
403-1 Occupational health and safety management system Workplace Safety Management and Performance
Health and Safety 2018
GRI 403: Occupational Health and Safety 2018 403-2 Hazard identification, risk assessment, and incident investigation Workplace Safety Management and Performance
GRI 403: Occupational Health and Safety 2018 403-3 Occupational health services Workplace Safety Management and Performance
GRI 403: Occupational 403-4 Worker participation, consultation, and communication on"
csr-year-2022-pdf.txt,"ational Health and Safety 2018 403-2 Hazard identification, risk assessment, and incident investigation Workplace Safety Management and Performance
GRI 403: Occupational Health and Safety 2018 403-3 Occupational health services Workplace Safety Management and Performance
GRI 403: Occupational 403-4 Worker participation, consultation, and communication on
Workplace Safety Management and Performance
Health and Safety 2018 occupational health and safety
GRI 403: Occupational Health
and Safety 2018
GRI 403: Occupational Health and Safety 2018 403-5 Worker training on occupational health and safety Workplace Safety Management and Performance"
csr-year-2022-pdf.txt,"ce
GRI 403: Occupational Health and Safety 2018 403-3 Occupational health services Workplace Safety Management and Performance
GRI 403: Occupational 403-4 Worker participation, consultation, and communication on
Workplace Safety Management and Performance
Health and Safety 2018 occupational health and safety
GRI 403: Occupational Health
and Safety 2018
GRI 403: Occupational Health and Safety 2018 403-5 Worker training on occupational health and safety Workplace Safety Management and Performance
GRI 403: Occupational Health and Safety 2018 403-6 Promotion of worker health Workplace Safety Management and Performance"
csr-year-2022-pdf.txt,"illiittyy RReeppoorrtt 22002222 44About Exelon
Delivering Sustainable Value
as the Premier T&D Utility
Addressing Climate Change
Through Transition and
About Exelon
Adaptation Planning
Advancing Clean Energy and
Affordable Energy Choices
Delivering a Top Tier
Customer Experience
Safely Powering Reliability
and Resilience
Supporting Communities
Environmental Responsibility
A Safe, Innovative and
Rewarding Workplace
Corporate Governance
AppendixBy the Numbers
9.1 million 97.0 percent $5.8 million
electric utility customers natural gas customers with advanced meters employee giving campaign"
csr-year-2022-pdf.txt,"Equity and Inclusion (DEI) is a core value at Exelon. Our commitment to DEI strengthens our ability to attract, retain and advance
Diversity, Equity and
5, 8, 10 employees who will best serve and represent our customers, business partners and communities. To achieve our greatest potential, we
Inclusion (DEI)
must engage with and reflect the communities that we serve.
Our employees are our greatest asset. Employees who are invested in developing their careers at Exelon, and in engaging with the
Employee Engagement 8 communities that we serve, help us to develop programs and actions that support clean, affordable and reliable energy delivery"
csr-year-2022-pdf.txt,"ur customers, business partners and communities. To achieve our greatest potential, we
Inclusion (DEI)
must engage with and reflect the communities that we serve.
Our employees are our greatest asset. Employees who are invested in developing their careers at Exelon, and in engaging with the
Employee Engagement 8 communities that we serve, help us to develop programs and actions that support clean, affordable and reliable energy delivery
systems and promote positive social and economic outcomes.
We continually strive to minimize worker exposure to potential health and safety hazards. We also support employee wellness"
csr-year-2022-pdf.txt,"ider other opportunities to enhance
sustainability interests and concerns to inform well as our plan and approach to sustainability Exelon’s sustainability performance and programs.
Our Stakeholders
Community Non-Governmental
Customers Employees
Members Organizations (NGOs)
Industry Groups
Investors Media Suppliers Governments
Powering a
Cleaner and
Brighter Future
Engagement Mechanisms
Board Investment Company Website and
Social Media
Memberships Community Calls Publications Digital Properties
Community and Customer Employee and"
csr-year-2022-pdf.txt,"ith respect to GHG emissions reductions. Fuel/Energy Related Activities 69,286 76,654 71,928
The breakdown of Exelon’s Scope 3 shows that
Upstream Transportation and Distribution 39 27 23
emissions associated with the upstream production
of the energy we deliver (emissions from generation Operational Waste 26 26 25
of grid supplied electricity and from the production
of natural gas) is the most significant category for us. Business Travel 6 2 5
The second highest category is the downstream end-
Employee Commute Not yet measured Not yet measured Not yet measured"
csr-year-2022-pdf.txt,"e restricted networks, segmented from the enterprise
vulnerability to physical attacks and unauthorized physical security team maintains effective working information technology (IT) environment and the
access to personnel, equipment, systems and relationships with law enforcement. internet, continuously monitored for malicious
materials at substations. Through our physical activity, and routinely evaluated for vulnerabilities.
security team, we identify and monitor critical sites Cybersecurity
and potential major threats to our operational assets Exelon applies stringent employee and contractor"
csr-year-2022-pdf.txt,"nd our efforts to develop local economies, in 2021,
Exelon announced its $36 million Racial Equity Capital Fund Environmental Responsibility
to support minority-owned businesses our communities.
A Safe, Innovative and
To help communities meet their sustainability and climate Rewarding Workplace
goals, we seek to ensure that access to new technologies
Corporate Governance
and clean energy opportunities are fair and accessible. Our
employees give back to the communities where we live and Appendix
work through employee philanthropy and volunteerism.Economic Development"
csr-year-2022-pdf.txt,"n current economic conditions. Exelon’s minority and Other Taxes
and community banking program, which began in
State and Local Taxes[2]
2003, is unique to the energy industry. Administered
by JP Morgan Chase since its inception, the program Delaware $38,061 $10,322 $48,383
now has 22 participating banks across the country—
District of Columbia $173,894 $28,123 $202,017
almost three times the original number.
Illinois $346,972 $576,793 $923,765
Exelon’s utilities currently invest $1.5 billion of
pension, employee savings plan and retiree Maryland $601,397 $256,960 $858,357"
csr-year-2022-pdf.txt,"ed and remitted, a total of almost
[2] State and local taxes include: Income and franchise; payroll; property; sales and use; and/or utility and other taxes as applicable in each jurisdiction.
$3.3 billion in taxes. Of this total, we paid over $1.6
billion in federal income and payroll taxes and
state income/franchise, payroll, property, sales/
use and utility taxes directly related to our business
operations. Exelon collected and remitted to
federal and state governments almost $1.7 billion in
additional taxes, such as employee payroll, sales/use"
csr-year-2022-pdf.txt,"oundation,
Hometown: Baltimore, MD
engage directly with people in our local communities provided more than $48 million in funding to
School: Mergenthaler
to make a positive difference in the areas that matter nonprofit organizations, with 90 percent of our total
Vocational Technical High
most to the customers and communities that we grants supporting organizations, programs or events
School (MERVO)
serve. Our engagement efforts span corporate giving, that serve the needs of diverse populations.
employee philanthropy and volunteerism. Our Tyree Georgie studied Computer-Aided"
csr-year-2022-pdf.txt,"will be working with will be willing to help
you because they want to see you succeed.
Everyone at BGE is a teacher and enjoys sharing
their knowledge and expertise,” says Tyree.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 9922Charitable Giving 2022 Charitable Giving Volunteer Hours[2]
dollars in millions by Program Area[1]
Exelon Foundations Corporate Donations
$48.1
$46.8
$42.0
$13.3 $14.4
$10.6
31.9% 10.4% 126.5
$33.5 $33.7
$31.4 Education Culture and Arts
97.8
17.2% 6.9%
Community and Employee"
csr-year-2022-pdf.txt,"on Foundations Corporate Donations
$48.1
$46.8
$42.0
$13.3 $14.4
$10.6
31.9% 10.4% 126.5
$33.5 $33.7
$31.4 Education Culture and Arts
97.8
17.2% 6.9%
Community and Employee
71.8
Economic Development Engagement
15.9% 3.6%
Health and Civic and
Social Services Public Affairs
14.0% 0.2%
Environment Disaster Relief
2020 2021 2022 2020 2021 2022
[1] Program areas outlined are from CECP (Chief Executives for Corporate Purpose) Giving in Numbers report, which is the standard for corporate philanthropy.
[2] Volunteer hours prior to 2022 reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure. Data for 2020–2021 has been recast to reflect the same"
csr-year-2022-pdf.txt,"0% 0.2%
Environment Disaster Relief
2020 2021 2022 2020 2021 2022
[1] Program areas outlined are from CECP (Chief Executives for Corporate Purpose) Giving in Numbers report, which is the standard for corporate philanthropy.
[2] Volunteer hours prior to 2022 reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure. Data for 2020–2021 has been recast to reflect the same
corporate boundary and may differ from previous reports.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 9933Below are some examples of our employee"
csr-year-2022-pdf.txt,"iving in Numbers report, which is the standard for corporate philanthropy.
[2] Volunteer hours prior to 2022 reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure. Data for 2020–2021 has been recast to reflect the same
corporate boundary and may differ from previous reports.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 9933Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Giving Campaign and Matching Gifts"
csr-year-2022-pdf.txt,"perations and 50 percent of business services employee volunteer hours under Exelon’s previous structure. Data for 2020–2021 has been recast to reflect the same
corporate boundary and may differ from previous reports.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 9933Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Giving Campaign and Matching Gifts
Programs. Exelon employees contributed over
$5.8 million through the Exelon Foundation
Employee Giving Campaign and Matching Gifts"
csr-year-2022-pdf.txt,"may differ from previous reports.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 9933Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Giving Campaign and Matching Gifts
Programs. Exelon employees contributed over
$5.8 million through the Exelon Foundation
Employee Giving Campaign and Matching Gifts
programs. The Foundation matched a portion of
the donations, resulting in $11.6 million going
directly back into the communities we serve.
y Employee Volunteer Awards. To reward our"
csr-year-2022-pdf.txt,"2002222 9933Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Giving Campaign and Matching Gifts
Programs. Exelon employees contributed over
$5.8 million through the Exelon Foundation
Employee Giving Campaign and Matching Gifts
programs. The Foundation matched a portion of
the donations, resulting in $11.6 million going
directly back into the communities we serve.
y Employee Volunteer Awards. To reward our
employees who volunteer more than 40 hours in a
year, Exelon presents Employee Volunteer Awards,"
csr-year-2022-pdf.txt,"yee Giving Campaign and Matching Gifts
Programs. Exelon employees contributed over
$5.8 million through the Exelon Foundation
Employee Giving Campaign and Matching Gifts
programs. The Foundation matched a portion of
the donations, resulting in $11.6 million going
directly back into the communities we serve.
y Employee Volunteer Awards. To reward our
employees who volunteer more than 40 hours in a
year, Exelon presents Employee Volunteer Awards,
with an associated financial grant of $5,000 given
to the recipient employee’s nonprofit organization"
csr-year-2022-pdf.txt,"gn and Matching Gifts
programs. The Foundation matched a portion of
the donations, resulting in $11.6 million going
directly back into the communities we serve.
y Employee Volunteer Awards. To reward our
employees who volunteer more than 40 hours in a
year, Exelon presents Employee Volunteer Awards,
with an associated financial grant of $5,000 given
to the recipient employee’s nonprofit organization
of choice. In 2022, we distributed $105,000 to
nonprofit partners on behalf of our award-winning
employee volunteers."
csr-year-2022-pdf.txt,"yee Volunteer Awards. To reward our
employees who volunteer more than 40 hours in a
year, Exelon presents Employee Volunteer Awards,
with an associated financial grant of $5,000 given
to the recipient employee’s nonprofit organization
of choice. In 2022, we distributed $105,000 to
nonprofit partners on behalf of our award-winning
employee volunteers.
y Dollars for Doers Program. In 2022, we awarded
$530,000 in Dollars for Doers grants, a program
through which Exelon provides $100, $200 and $400
grants to nonprofits in honor of employee volunteer"
csr-year-2022-pdf.txt,"In 2022, we awarded
$530,000 in Dollars for Doers grants, a program
through which Exelon provides $100, $200 and $400
grants to nonprofits in honor of employee volunteer
Exelon encourages employees to volunteer in service of 10, 20 and 40 hours, respectively.
Operating Company Volunteer Hours
their communities and supports them in this work.
In 2023, to demonstrate our appreciation for all
ACE 10,048 In addition to benefiting the local community,
our employees to power a brighter future for our
volunteerism drives employee engagement by"
csr-year-2022-pdf.txt,"ticipate and engage
support them. The Exelon Foundation has increased
with organizations that align with individual areas
ComEd 18,889
the maximum match from $5,000 to $10,000 per
of interest. Between in-person and virtual events
year for all employees, through Matching Gifts for
DPL 14,430 throughout 2022, Exelon employees volunteered a
donations made to eligible non-profit organizations.
combined 126,529 hours in their communities.
PECO 19,503 Dollars for Doers has been simplified so that for
every 10 hours of volunteer time, an employee"
csr-year-2022-pdf.txt,"ck, review and discuss
leaders. With over 80 leaders across councils,
our DEI related efforts on a quarterly basis with our
work environment that inspires
meetings are held monthly to create and
executive leadership team. Quarterly meetings are
innovation and engages advance strategies to drive equity initiatives and
also held with leaders across the enterprise to review
advocate for the development and sponsorship
employees in meaningful work. our progress to ensure we continue to advance DEI.
of future leaders. Employee engagement,"
csr-year-2022-pdf.txt,"eview
advocate for the development and sponsorship
employees in meaningful work. our progress to ensure we continue to advance DEI.
of future leaders. Employee engagement,
Exelon Sustainability Report 2022 111In 2021, we developed and introduced a new individual Access to DEI Resources. All employees have one-
DEI Performance Goal for all management employees click access to tools and educational materials
to continue to drive progress at Exelon. Each designed to help employees expand their DEI
employee level supports the DEI Performance Goal capabilities through a dedicated intranet site. This"
csr-year-2022-pdf.txt,"In 2021, we developed and introduced a new individual Access to DEI Resources. All employees have one-
DEI Performance Goal for all management employees click access to tools and educational materials
to continue to drive progress at Exelon. Each designed to help employees expand their DEI
employee level supports the DEI Performance Goal capabilities through a dedicated intranet site. This
outcomes in different ways that reinforce our culture internal website provides information on DEI partner
of equity and inclusion throughout the company. We organizations, Employee Resource Groups (ERGs),"
csr-year-2022-pdf.txt,"ding to changes in behavior
companies who advance disability inclusion as a
and ultimately an improved culture of inclusion.
business imperative. In its first year competing,
Exelon was recognized as an employer of choice
For more information on Exelon’s DEI performance for individuals with disabilities.
and results, please see our Diversity, Equity and
Inclusion page. Chairman’s Award for Workforce Development
Leadership in the Center for Energy Workforce
Development (CEWD) 2022 Impact Awards.
EExxeelloonn SSuussttaaiinnaabbiilliittyy RReeppoorrtt 22002222 1111222022 Employee Resource"
csr-year-2022-pdf.txt,"fairs
and via online media.
Disability Outreach
Exelon welcomes the talents and skills that
individuals with disabilities bring to our workplace
and our communities. Through our enterprise-wide
disability outreach strategy, we expand our talent
pipeline network and company inclusivity efforts.
Our disability outreach strategy comprises three key
elements: promoting Exelon’s open jobs, increasing
brand recognition and creating and supporting a
disability-inclusive culture. In 2022, we continued
2022 Employee Diversity[1] 2022 Management Diversity[3][4]"
csr-year-2022-pdf.txt,"website. Age 30–50 10,548 55.3% Age 30–50 1,715 56.6%
[[22]] B Baasseedd uuppoonn sseellff--ddiisscclloosseedd iinnffoorrmmaattiioonn ffrroomm eemmppllooyyeeeess..
Age >50 6,489 34.0% Age >50 1,286 42.4%
[3] Management is defined by EEO Categories “Executive/Senior
Level Officials and Managers” and “First/Mid-Level Officials Full-Time 18,911 99.2% Within 10 Years of
and Managers”. Retirement Eligibility 1,787 59.0%
Part-Time 152 0.8%
[4] Due to the Constellation separation, we are not reporting
employee turnover rate as of 12/31/22. Average turnover rates Total Employees 3,030 100.0%"
csr-year-2022-pdf.txt,"ed in our partnerships to identify, develop, engage and retain employees
values as an innovative, forward-thinking and people- with key universities, including Historically Black to ensure the organization has a robust and diverse
focused organization. Colleges and Universities (HBCUs). We also attended pipeline of talent to enable internal career growth
events with the Society of Asian Scientists & and drive business results.
Today’s Labor Market Engineers (SASE), Society of Hispanic Engineers
(SHPE), Society of Women Engineers (SWE) and the Employee and leadership development was a"
csr-year-2022-pdf.txt,"neers (SASE), Society of Hispanic Engineers
(SHPE), Society of Women Engineers (SWE) and the Employee and leadership development was a
In the early part of 2022, the U.S. job market remained National Society of Black Engineers (NSBE). key talent management focus area in 2022. The
challenging with national job postings more than organization offered virtual leadership development
doubling the number of job seekers. Despite these Internships and programs for new-in-role first time supervisors and
market forces, Exelon’s employee engagement managers and emerging leaders, as well as open-"
csr-year-2022-pdf.txt,"Online,
including NSBE, SWE, SHPE and SASE. Exelon
a virtual leadership development offering from the
has established additional academic partnerships
world’s top business schools, was provided to senior
aligned with its unique markets and needs. As our
managers, directors and leaders in our diversity and
geographic footprint expands, we continue to explore
equity-based high-potential development programs.
opportunities for increased automation and efficiency
in our student recruitment process.
Exelon Sustainability Report 2022 115Exelon offers a full suite of development programs BSC. BSC offers employee and leadership development of their careers through a complete series of"
csr-year-2022-pdf.txt,"ons to unify teams.
PHI. PHI continues to promote a strong DEI culture
Moving into 2023, Exelon will launch its new ComEd. In 2022, ComEd introduced the “Launching driven through leadership. Leaders hone DEI
Powering People brand and one-stop development Inclusive Future Talent” program, which is a year-long behaviors through Inclusive Leader training with
resource portal, which further solidifies the development and mentorship program designed to 100 percent leader participation. Through these
organization’s commitment to employee accelerate our leadership pipeline of talent of color. sessions, leaders had the ability to work with"
csr-year-2022-pdf.txt,"lent” program, which is a year-long behaviors through Inclusive Leader training with
resource portal, which further solidifies the development and mentorship program designed to 100 percent leader participation. Through these
organization’s commitment to employee accelerate our leadership pipeline of talent of color. sessions, leaders had the ability to work with
development and career growth. New and Over 600 employees attended the ComEd “Career peers to engage and practice the skills learned.
enhanced opportunities for development will Expo: Powering Your Future” with two weeks of We continue to focus on employee development"
csr-year-2022-pdf.txt,"ofessional and leadership development through our ongoing Goal Setting—Resource
development offerings, a career management workshops and both in-person and virtual tours of Education—Ongoing Development—Winning
monthly webinar series, a self-paced leadership our ComEd facilities. We also hosted over 2,000 Teams development (GROW) initiative, with focus
exploration program, resources to work and lead in employees at the Chicago United Center for ComEd’s on PHI wide career development experiences
a hybrid environment and enterprise mentoring. Annual “Career Expo’s Career Day: Powering Your that specifically set out to address employee"
csr-year-2022-pdf.txt,"elf-paced leadership our ComEd facilities. We also hosted over 2,000 Teams development (GROW) initiative, with focus
exploration program, resources to work and lead in employees at the Chicago United Center for ComEd’s on PHI wide career development experiences
a hybrid environment and enterprise mentoring. Annual “Career Expo’s Career Day: Powering Your that specifically set out to address employee
Path,” with over 85 department booths, fleet vehicle development, networking, ERG engagement and
Employee Development tours and drone demonstrations. mentoring. Over 3,900 employees have participated"
csr-year-2022-pdf.txt,"in employees at the Chicago United Center for ComEd’s on PHI wide career development experiences
a hybrid environment and enterprise mentoring. Annual “Career Expo’s Career Day: Powering Your that specifically set out to address employee
Path,” with over 85 department booths, fleet vehicle development, networking, ERG engagement and
Employee Development tours and drone demonstrations. mentoring. Over 3,900 employees have participated
to further their developments. The PHI Opting-in
and Training
PECO. PECO focused on two key areas of employee series continues to create space for employees to"
csr-year-2022-pdf.txt,"h over 85 department booths, fleet vehicle development, networking, ERG engagement and
Employee Development tours and drone demonstrations. mentoring. Over 3,900 employees have participated
to further their developments. The PHI Opting-in
and Training
PECO. PECO focused on two key areas of employee series continues to create space for employees to
development in 2022: new leader integration and delve into DEI and racial injustice topics with over
BGE. BGE emphasizes equitable talent development
employee career management. PECO implemented 1,400 employees participating in 2022. The PHI"
csr-year-2022-pdf.txt,"r DEI efforts in every discussion. Our development
leaders fundamental skills for their new roles. The for development, engagement and networking with
approach focuses on ensuring all employees in
year-long program focused on skill development 62 percent of our eligible employees participating.
our organization have accelerated opportunities to
in the areas of supervisory skills, performance
succeed. To do so, we leverage virtual and in-person
management and accountability as well as strategies
resources to tailor offerings to individual employee"
csr-year-2022-pdf.txt,"loyee
for developing, engaging and retaining the talent
needs. BGE employees are supported in their
on their teams. The program has helped to increase
development of the core competencies, technical
our new leaders’ engagements and shorten their
skills and field training. This model supports classroom,
times to integrate into their new roles. PECO also
virtual reality and on-the-job training required for our
reenergized our efforts to support all employees in
employees to thrive.
the management
Exelon Sustainability Report 2022 116Engaging Talent and Listening Progressive Workforce Policies Employee and Labor Relations. Exelon has a highly"
csr-year-2022-pdf.txt,"has successfully negotiated 10
are necessary for our employees to remain engaged to receive up to 16 weeks of paid leave, and non-birthing collective bargaining agreements (CBAs) that help
and have a rewarding experience at work. One way and adoptive parents are eligible to receive up to eight balance the needs of our company with the interests
that we measure and manage our performance is by weeks of paid leave when a child arrives in their home. of our employees, two of which were negotiated
frequently collecting employee feedback about their Employees are also eligible to receive up to two weeks and renewed in 2022. In 2022, Exelon successfully"
csr-year-2022-pdf.txt,"two of which were negotiated
frequently collecting employee feedback about their Employees are also eligible to receive up to two weeks and renewed in 2022. In 2022, Exelon successfully
experiences at the company. Periodic surveys help of paid leave to care for a family member with a critical negotiated and renewed one CBA at Pepco with the
us better understand and address any issues raised illness. Exelon approved 335 employees for bonding International Brotherhood of Electrical Workers (IBEW)
by our employees. The surveys measure employee leave and/or primary caregiver leave in 2022. Local 1900 covering 890 employees, and negotiated an"
csr-year-2022-pdf.txt,"ve to care for a family member with a critical negotiated and renewed one CBA at Pepco with the
us better understand and address any issues raised illness. Exelon approved 335 employees for bonding International Brotherhood of Electrical Workers (IBEW)
by our employees. The surveys measure employee leave and/or primary caregiver leave in 2022. Local 1900 covering 890 employees, and negotiated an
engagement, development, innovation, DEI, safety additional agreement to the current CBA at ACE with
and other aspects of the employee experience. Our Equal Pay. In 2016, Exelon partnered with the White IBEW Local 210 covering 16 employees."
csr-year-2022-pdf.txt,"bonding International Brotherhood of Electrical Workers (IBEW)
by our employees. The surveys measure employee leave and/or primary caregiver leave in 2022. Local 1900 covering 890 employees, and negotiated an
engagement, development, innovation, DEI, safety additional agreement to the current CBA at ACE with
and other aspects of the employee experience. Our Equal Pay. In 2016, Exelon partnered with the White IBEW Local 210 covering 16 employees.
House as a signatory to the Equal Pay Pledge, an
biennial Employee Engagement Survey generates"
csr-year-2022-pdf.txt,"al Workers (IBEW)
by our employees. The surveys measure employee leave and/or primary caregiver leave in 2022. Local 1900 covering 890 employees, and negotiated an
engagement, development, innovation, DEI, safety additional agreement to the current CBA at ACE with
and other aspects of the employee experience. Our Equal Pay. In 2016, Exelon partnered with the White IBEW Local 210 covering 16 employees.
House as a signatory to the Equal Pay Pledge, an
biennial Employee Engagement Survey generates
our best research on employee experience. Our initiative to encourage action and commitment Health and Wellness"
csr-year-2022-pdf.txt,"We also employees maintain and improve their physical,
ratings in all of our critical focus areas: engagement, review hiring and promotion processes to neutralize emotional and financial wellbeing. We support
supervisor effectiveness and DEI, with ratings for any bias, including unconscious bias, and embed our employees in their work and personal lives
supervisor effectiveness and DEI increasing since equal pay efforts into broader enterprise-wide by providing resources to help them manage life
the previous survey issuance. Exelon’s employee equity initiatives. We are devoted to creating an situations and their individual wellness journeys."
csr-year-2022-pdf.txt,"to neutralize emotional and financial wellbeing. We support
supervisor effectiveness and DEI, with ratings for any bias, including unconscious bias, and embed our employees in their work and personal lives
supervisor effectiveness and DEI increasing since equal pay efforts into broader enterprise-wide by providing resources to help them manage life
the previous survey issuance. Exelon’s employee equity initiatives. We are devoted to creating an situations and their individual wellness journeys.
engagement was rated as 75 percent favorable, environment that attracts and retains women by Through our enhanced Employee Assistance"
csr-year-2022-pdf.txt,"them to stay in the workforce, grow with Program, employees can access resources to cope
survey issuance and one point below the external us and move up in the ranks, all with parity of pay. with crisis care, addiction, parenting and financial
norm. As leaders share the results with employees matters, and employees can receive services focused
and take action to address the findings, additional Tuition Reimbursement. Continued education leads on targeted, verifiable health improvements through
Employee Engagement Pulses and surveys will to a more engaged, skilled and productive workforce. virtual physical therapy, expert medical opinion,"
csr-year-2022-pdf.txt,"oyees matters, and employees can receive services focused
and take action to address the findings, additional Tuition Reimbursement. Continued education leads on targeted, verifiable health improvements through
Employee Engagement Pulses and surveys will to a more engaged, skilled and productive workforce. virtual physical therapy, expert medical opinion,
be issued in 2023 and 2024, so we can continue to We support our employees in their educational cancer care guidance and diabetes management.
understand and work to improve the employee endeavors to attract and retain people who are We also offer fitness reimbursement, Telehealth"
csr-year-2022-pdf.txt,"nal and professional development. services—for non-emergent medical and behavioral
For employees who are pursuing professional care—and competitive infertility benefits for those
credentials, we reimburse up to $10,000 annually for enrolled in the company’s medical coverage.
undergraduate or professional certification courses
and up to $15,000 annually for graduate courses.
Exelon Sustainability Report 2022 117Workplace Safety Continuously Improving
Our Safety Culture
Management and Performance
In 2022, the employee engagement survey"
csr-year-2022-pdf.txt,"For employees who are pursuing professional care—and competitive infertility benefits for those
credentials, we reimburse up to $10,000 annually for enrolled in the company’s medical coverage.
undergraduate or professional certification courses
and up to $15,000 annually for graduate courses.
Exelon Sustainability Report 2022 117Workplace Safety Continuously Improving
Our Safety Culture
Management and Performance
In 2022, the employee engagement survey
process allowed us to measure and evaluate
employee perception of the current state of"
csr-year-2022-pdf.txt,"nd up to $15,000 annually for graduate courses.
Exelon Sustainability Report 2022 117Workplace Safety Continuously Improving
Our Safety Culture
Management and Performance
In 2022, the employee engagement survey
process allowed us to measure and evaluate
employee perception of the current state of
safety management and safety culture, compare
Promoting a Culture Exelon’s Corporate Safety Policy articulates our
within an operating company and across
dedication to safety. To support implementation
of Safety and Health operating company employee responses by"
csr-year-2022-pdf.txt,"ate of
safety management and safety culture, compare
Promoting a Culture Exelon’s Corporate Safety Policy articulates our
within an operating company and across
dedication to safety. To support implementation
of Safety and Health operating company employee responses by
at each utility, we have a Safety Peer Group
various work groups, identify high performance
At Exelon, we integrate safety and health into consisting of each utility’s safety managers, areas and areas of opportunity and benchmark
every level of our company, beginning with each corporate safety managers, industrial hygienists Exelon employee perceptions with employees"
csr-year-2022-pdf.txt,"g company and across
dedication to safety. To support implementation
of Safety and Health operating company employee responses by
at each utility, we have a Safety Peer Group
various work groups, identify high performance
At Exelon, we integrate safety and health into consisting of each utility’s safety managers, areas and areas of opportunity and benchmark
every level of our company, beginning with each corporate safety managers, industrial hygienists Exelon employee perceptions with employees
individual employee. Every day, our employees and legal and medical professionals. The group in other organizations by operating company"
csr-year-2022-pdf.txt,"of each utility’s safety managers, areas and areas of opportunity and benchmark
every level of our company, beginning with each corporate safety managers, industrial hygienists Exelon employee perceptions with employees
individual employee. Every day, our employees and legal and medical professionals. The group in other organizations by operating company
perform a wide array of critical work activities, works collaboratively to seek out and identify and relevant departments within an operating
ranging from routine system maintenance to successful pilot programs or new practices to be company. Employee perception surveys are a"
csr-year-2022-pdf.txt,"more correlative and comprehensive indicator of
has been established to assess strategic safety
pinpoint improvement opportunities. the effect of program changes.
issues, improve safety performance, establish safety
priorities and programs, and coordinate resources. All of our utilities also engage in the Value
Above all else, our most important safety and health
Based Engagement (VBE) program. The VBE
goal is to build systems that have the capacity
Program is focused on assessing culture using
to control hazards and eliminate employee and"
csr-year-2022-pdf.txt,"and work with us to build the
and Safety Peer Group review assessments, training was compromised of a two-hour webinar capacity to control those hazards. In total, Exelon
performance metrics and benchmarking results and an eight-hour classroom training course and experienced 185 OSHA recordable incidents in 2022.
tracked via Exelon’s Learning Management System.
In 2022, Exelon employees drove more than 74
We continue to enhance our safety program million miles in a combination of Exelon-owned,
through industry benchmarking with our peers, employee-owned and rental vehicles. The most"
csr-year-2022-pdf.txt,"accidents and near misses that
our industry. occur due to these types of incidents and pilot new
or improved technologies to help improve driver
Since 2016, Exelon has been a member of the safety. Exelon coordinates benchmark efforts to
Campbell Institute, a group of leading companies leverage best practices and improve the safety of
from the National Security Council (NSC) regarded our drivers.
as thought leaders on environmental, health and
safety (EHS) issues. Exelon works with the Campbell
Institute in five major focus areas—employee well-"
csr-year-2022-pdf.txt,"f action to address safety deficiencies,
both their safety and environmental performance. monitor their work more frequently and, when
We provide contractor safety orientations and employ necessary, terminate contracts due to poor safety
human performance error reduction tools to minimize performance. In 2022, our contractor OSHA
incidents. We track contractor OSHA-recordable rates recordable rate was 0.49, a rate decrease due to
and review them monthly. continued emphasis on contractor safety.
Exelon Employee Safety Performance 2020–2022[1]"
csr-year-2022-pdf.txt,"ce. In 2022, our contractor OSHA
incidents. We track contractor OSHA-recordable rates recordable rate was 0.49, a rate decrease due to
and review them monthly. continued emphasis on contractor safety.
Exelon Employee Safety Performance 2020–2022[1]
Category 2020 2021 2022
OSHA Recordable Rate[2] 0.87 0.94 0.90
OSHA DART Rate[3] 0.96 0.67 0.70
OSHA Lost Time Rate[4] 38.38 22.88 19.19
Exelon EEI Serious Injury Incident Rate[5] 0.08 0.07 0.06
Exelon’s Contractor OSHA Recordable Rate 0.66 0.61 0.49
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2020 and 2019 reflects incidents and employee"
csr-year-2022-pdf.txt,"es related to talent y Oversees compliance
the enterprise, who work together to help guide organization and development and DEI with policies and
auditor’s commitments procedures related to
the development and implementation of Exelon’s y Oversees matters related to human
to diverse team corporate political
capital management, including talent
sustainability strategy, programs and disclosures contributions
acquisition, development, and retention;
and who advise and respond to Exelon’s Executive
employee engagement and wellbeing; y Reviews corporate"
csr-year-2022-pdf.txt,"ates the developments, stakeholder input, market
allocation of resources to ensure Exelon’s overall opportunities, brand/reputation, customers
performance achieved; and
environmental objectives are met
y Reviews enterprise-wide safety programs and
y Social: quantitative goals for measuring DEI y Coordinates Exelon’s responses to strategic performance and provides input to the
environmental public policy and regulatory issues Executive Committee
initiatives including diverse hiring slates, spend
with diverse suppliers, and employee engagement"
csr-year-2022-pdf.txt,"ry training for
customers and communities. Exelon is committed all employees addressing Security Awareness,
to maintaining a robust, comprehensive compliance All employees must participate in annual Code Harassment Prevention and other important topics.
and ethics program and recognizes that a successful of Business Conduct training. Additionally, non-
program must constantly evolve in the face of represented employees are required to complete an Both the Code of Business Conduct and the annual
changing risks. annual certification disclosing potential conflicts of all-employee training address the identification"
csr-year-2022-pdf.txt,"with the matters described in the DPA for a three-
In 2020, Exelon established a dedicated team that In 2022, Exelon implemented a Supplier Code of year period subject to certain obligations of ComEd,
investigates most allegations relating to workplace Conduct, which focuses on the responsibilities of including the following: (i) payment to the U.S.
conduct issues, including sexual harassment, all suppliers, contractors and agents. The Supplier Treasury of $200 million (this amount was paid in
discrimination, and employee relations. An important Code of Conduct outlines Exelon’s expectations and full during 2020); (ii) continued full cooperation with"
csr-year-2022-pdf.txt,"e giving that was accrued in 2022,
but not paid until February 2023. Exelon issued an updated ESR 2022 on
September 1, 2023 with the corrected corporate giving total for 2022.
GRI 2 2-5 External assurance About Exelon, 2022 Corporate Sustainability Report Approach
Activities and Workers
10-K, pages 7–9
GRI 2 2-6 Activities, value chain and other business relationships
About Exelon, Sustainable Supply Chain
GRI 2
Accelerating Our Commitment to Diversity, Equity and Inclusion,
GRI 2 2-7 Employees
Employee Diversity Table"
csr-year-2022-pdf.txt,"2016 304-2 Impacts on biodiversity Habitat and Biodiversity
GRI 304: Biodiversity 2016
GRI 304: Biodiversity 2016 304-3 Habitats protected or restored Habitat and Biodiversity
GRI 3: Material Topics 2021 3-3 Management of Waste Waste and Recycling
GRI 306: Effluents
306-4 Waste diverted from disposal Waste and Recycling
and Waste 2016
A Safe, Innovative and Rewarding Workplace
GRI 3: Material Topics 2021 3-3 Management of Employment Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016 401-1 New employee hires and employee turnover Accelerating Our Commitment to Diversity, Equity and Inclusion"
csr-year-2022-pdf.txt,"formance
Health and Safety 2018 management system
Exelon Sustainability Report 2022 140Framework Disclosure Location/Response
Safety Performance
OSHA Lost Time Injury Frequency Rate (LTIFR)
GRI 403: Occupational y 2020: 0.41
403-9 Work-related injuries
HGReaI l4t0h 3a: nOdc Scuafpeattyio 2n0a1l8 y 2021: 0.61
Health and Safety 2018
y 2022: 0.55
The number of lost-time injuries per million hours worked.
GRI 403: Occupational Health and Safety 2018 403-10 Work-related ill health Safety Performance
GRI 3: Material Topics 2021 3-3 Management of Training and Education Employee Development and Training"
csr-year-2022-pdf.txt,"Safety Performance
OSHA Lost Time Injury Frequency Rate (LTIFR)
GRI 403: Occupational y 2020: 0.41
403-9 Work-related injuries
HGReaI l4t0h 3a: nOdc Scuafpeattyio 2n0a1l8 y 2021: 0.61
Health and Safety 2018
y 2022: 0.55
The number of lost-time injuries per million hours worked.
GRI 403: Occupational Health and Safety 2018 403-10 Work-related ill health Safety Performance
GRI 3: Material Topics 2021 3-3 Management of Training and Education Employee Development and Training
GRI 404: Training and
404-2 Programs for upgrading employee skills Employee Development and Training"
csr-year-2022-pdf.txt,"lost during
distribution is Scope 2 emissions. Emissions from purchased/acquired power for resale
Scope 3 Scope 3 Scope 3
to customers
Company A can set a goal on emissions associated with Emissions from T&D line losses from purchased or
Scope 2 Scope 2 Scope 3
wheeled power
electric generation directly. Company B can advocate
for policies that drive clean electricity and can engage Waste generation (in operations) Scope 3 Scope 3 Scope 3
with suppliers to set and achieve goals associated with
Employee commuting; business travel Scope 3 Scope 3 Scope 3"
csr-year-2022-pdf.txt,"livered) 4,474 4,765 4,748 99 103 107
(Location-based, As-Delivered)
Total Customer-Driven Scope 2 Total Operations-Driven Scope 2
4,890 5,211 5,193 59 71 75
(After Low-Carbon Purchases) (After Low-Carbon Purchases)
Total Customer-Driven Scope 1 and 2 Emissions 4,890 5,211 5,193 Total Operations-Driven Scope 1 and 2 Emissions 538 538 527
Relevant Scope 3—Customer-Driven Relevant Scope 3: Operations-Driven
79,484 86,934 83,154 1,842 1,691 1,671
Supply Chain Emissions[2] Supply Chain Emissions[4]
Electricity purchased and distributed by our Utilities[3] 67,317 74,659 69,760 Employee Business Travel[5] and Leased Assets[6] 7 4 6"
csr-year-2022-pdf.txt,"l be a need to meet our 2050
use of natural gas delivered by utilities (customer use with state-mandated renewable supply requirements,
Net-Zero goal for emissions that cannot be otherwise
of natural gas) and production of natural gas used by which similarly have GHG benefits that may only in
reduced (currently estimated at 20 percent of our
customers. We plan to expand our Scope 3 reporting part or indirectly translate into our overall Scope 3
inventory). We also are observing that the science
to include employee commuting once we develop a emissions accounting and performance."
csr-year-2022-pdf.txt,"Exelon Sustainability
Report 2022
Powering a cleaner and brighter future
for our customers and communities
Exelon Sustainability Report 2022 1Table of Contents
A Message From the CEO 3 Progress on Our Path to Clean: Powering Our Communities
Our Company and Operations 57 Through Workforce Development 90"
csr-year-2022-pdf.txt,"w CEO, it is efficiency (EE) and integration of local renewable To meet the challenges before us, Exelon continues
my pleasure to share this energy resources into the emerging smart grid. We to invest in people—our employees and residents of
report on our sustainability must work closely with our communities and policy our communities. I am pleased to report that in 2022
programs and performance makers on solutions driving decarbonization across we invested more than $16 million to support over
during 2022. It is an honor for the economy, as we work to mitigate greenhouse gas 80 workforce development efforts across our six"
csr-year-2022-pdf.txt,"affordable and equitable for all
customers save almost 24.8 million MWh and avoid
over 9.5 million tons of GHG emissions. Our Green of our customers, including in historically under-resourced communities.
Power Connection programs also have successfully
connected almost 3,100 megawatts of renewable
energy generation for over 200,000 utility customers.
Each of our utilities remains a committed partner
with our jurisdictions, working together to address
climate change, local environmental and air
quality concerns, affordability and workforce"
csr-year-2022-pdf.txt,"t promote EE, facilitate transportation electrification and enable local distributed renewable energy
generation helps support healthier environments by reducing use of fossil fuels in the communities we serve.
Exelon’s business value and success are inextricably linked with the success of the communities that we serve. Exelon supports local
Community Vitality 4, 8 communities through jobs, taxes paid, corporate philanthropy, community engagement, investments, use of local and diverse suppliers
and stakeholder partnerships that grow opportunities for people and city and regional economies, including local workforce development."
csr-year-2022-pdf.txt,"ns that support clean, affordable and reliable energy delivery
systems and promote positive social and economic outcomes.
We continually strive to minimize worker exposure to potential health and safety hazards. We also support employee wellness
Health, Safety and Wellness 3 (mental and physical) through programs designed to provide assistance when needed. Our health and safety focus builds a
desirable and productive work environment, reduces health care costs and improves business performance.
Exelon works to develop a reliable workforce pipeline by creating jobs and bringing economic empowerment to the communities"
csr-year-2022-pdf.txt,"th, Safety and Wellness 3 (mental and physical) through programs designed to provide assistance when needed. Our health and safety focus builds a
desirable and productive work environment, reduces health care costs and improves business performance.
Exelon works to develop a reliable workforce pipeline by creating jobs and bringing economic empowerment to the communities
where we work and live. We invest in our employees and potential future employees through focused trainings and partnerships,
Workforce Development 4, 8"
csr-year-2022-pdf.txt,"mental and physical) through programs designed to provide assistance when needed. Our health and safety focus builds a
desirable and productive work environment, reduces health care costs and improves business performance.
Exelon works to develop a reliable workforce pipeline by creating jobs and bringing economic empowerment to the communities
where we work and live. We invest in our employees and potential future employees through focused trainings and partnerships,
Workforce Development 4, 8
which helps us build and maintain the workforce we need to best serve our customers. We seek talented employees, particularly in"
csr-year-2022-pdf.txt,"energy resources that can
Within our jurisdictions and across much of the
contribute to the clean and affordable energy goals
U.S., customer, technology and policy trends signal
of our customers and communities.
an accelerating transformation to a cleaner, more
dynamic and more distributed energy system.
Foundational to our value proposition is a commitment
A diverse group of stakeholders—customers,
to, and history of, operational excellence, customer
policymakers, regulators and investors—are
focus, a talented workforce and safe, secure and"
csr-year-2022-pdf.txt,"social equity in the large and diverse areas that we
(DER) and new opportunities to enhance the
serve. To do that, we must focus on the following:
customer experience. Increasing electrification of
the economy requires significant new investment y Helping our customers to understand the shared y Helping our communities to thrive as our energy
in our physical T&D systems, as well as continued energy systems that power our daily lives and local system is transformed, including through investments
focus on maintaining stringent reliability and economies, including education and awareness that support local economic growth and workforce"
csr-year-2022-pdf.txt,"the industry. This two-
Exelon directly engages with early-stage technology
way collaboration benefits researchers who desire
innovation by funding and collaborating on projects
Proactive ecosystem relationships also benefit Exelon industry feedback and input to ensure that their work
with leading research institutions, including Argonne
through fresh insights in key science, technology and is relevant. As researchers draw on data, expertise
National Laboratory (ANL), Massachusetts Institute of
industry trends, workforce enrichment by challenging and leadership from our subject matter experts, they"
csr-year-2022-pdf.txt,"Exelon also endorsed the bipartisan IIJA. The IIJA
available for Exelon’s participation and programs
Electric Vehicle Infrastructure
includes key provisions focusing on accelerating the
targeted to our communities and key customers.
buildout and connection of renewable and other Our comments have addressed programs supporting (NEVI) program, in which states,
clean energy resources, transportation electrification,
transmission system build out and modernization, including Exelon’s states and the
increasing EE, resilience and workforce readiness."
csr-year-2022-pdf.txt,"y+Environmental Economics
energy, transportation electrification, deploying DER decarbonization goals, including having 100 percent (E3), to analyze different decarbonization pathways
and EE. They also each provide opportunities for decarbonized electric generation in Illinois by 2045, to meet these aggressive state goals. Together, these
Exelon’s utilities to make investments and recover advancing transportation and building electrification actions reflect priorities of Illinois and ComEd, its
costs through various forms of alternative ratemaking, and creating economic and workforce development customers and its communities, including support for"
csr-year-2022-pdf.txt,"f the customer incentives in the application to low-
and in underserved communities. In 2019, PECO accessible, affordable and equitable for all. PECO to moderate-income (LMI) customers and under-
implemented the EV Fast Charging pilot to support is implementing a first-of-its-kind local solar resourced communities, drawing inspiration from
customer installation of publicly available, public procurement program under the State’s Alternative the federal Justice40 initiative, which directs certain
transit or workplace fleet Direct Current Fast Chargers Portfolio Standard, supporting the solar workforce federal investments to provide 40 percent of benefits"
csr-year-2022-pdf.txt,"DEP-led Drive Electric PA December 2022, Pepco filed its Climate Solutions
forum since its beginning. PECO supports a broad range Plan Phase 1 application, which proposed 11 programs
of customer education activities, including serving as designed to increase the number and availability
the Title Sponsor of the 2023 Philadelphia Auto Show’s of electric vehicle charging stations throughout the
e-Track and hosting numerous school-based programs District, including incentivizing more than 2,100 new
on EV education and workforce opportunities. charging ports, and to upgrade electric systems to"
csr-year-2022-pdf.txt,"rtunity,
in context with our peers and with stakeholder we are working to align our transition and adaptation
expectations for climate change action transparency. planning with our newly issued Environmental Justice
Principles, to help ensure that our work includes all
While we are focused on actions that Exelon can take of our customers, employees, business partners and
Evolving energy systems to
and how we can enable customers and communities, communities in social, environmental and economic
the broader backdrop is that all sectors of the progress. Further, our workforce development and enable decarbonization and"
csr-year-2022-pdf.txt,"electrification by
is excess capacity.
deploy electric school buses and public chargers.
advocating for the right public policies, partnering
Potential Benefits for Electrication
Benefits to Customers Benefits to Exelon Benefits to Society
Save customers money over the long run Reduce negative environmental impacts Reduce negative environmental impacts
y Economic y Modernized Grid y Environmental
y Efficiency y Strategic Alignment y Public Health
y Sustainability y Growth Opportunities y Equity
y Workforce Development"
csr-year-2022-pdf.txt,"heastern Electric
Exchange Assistance Group Exchange Exchange
y Southeastern Electric
Exchange
Exelon Sustainability Report 2022 84About Exelon
Delivering Sustainable Value
as the Premier T&D Utility
Addressing Climate Change
Through Transition and
Supporting Communities
Adaptation Planning
Advancing Clean Energy and
Affordable Energy Choices
When our communities and people thrive, we thrive. We
Delivering a Top Tier
partner with communities to eliminate barriers to economic Customer Experience
empowerment through workforce development, supplier"
csr-year-2022-pdf.txt,"top-level advocacy organization
Exelon realizes competitive advantages from the that promotes corporate supplier diversity excellence.
talents that all people bring to the workplace. Exelon The organization recognizes companies that spend at
serves some of the nation’s largest and most ethnically least $1 billion annually with Tier 1 diverse suppliers.
diverse metropolitan areas—including Baltimore,
Chicago, Washington D.C., and Philadelphia. This High-margin spend with certified diverse-owned
means our supplier base, as well as our workforce and suppliers totaled $190 million in 2022. The Exelon"
csr-year-2022-pdf.txt,"ll taxes and
state income/franchise, payroll, property, sales/
use and utility taxes directly related to our business
operations. Exelon collected and remitted to
federal and state governments almost $1.7 billion in
additional taxes, such as employee payroll, sales/use
and utility taxes.
Exelon Sustainability Report 2022 89y Of the 650 work-ready adult graduates of one of
Exelon’s infrastructure academies or other job
training programs, nearly 300 were hired either by
Exelon or other companies.
y Participants in our other workforce development"
csr-year-2022-pdf.txt,"e payroll, sales/use
and utility taxes.
Exelon Sustainability Report 2022 89y Of the 650 work-ready adult graduates of one of
Exelon’s infrastructure academies or other job
training programs, nearly 300 were hired either by
Exelon or other companies.
y Participants in our other workforce development
programs have achieved other successes, such as:
received internships, earned college scholarships or
increased their knowledge of STEM and STEM careers.
y Since 2019, when we began to synergize our
Workforce Development efforts, 1,432 people had"
csr-year-2022-pdf.txt,"b
training programs, nearly 300 were hired either by
Exelon or other companies.
y Participants in our other workforce development
programs have achieved other successes, such as:
received internships, earned college scholarships or
increased their knowledge of STEM and STEM careers.
y Since 2019, when we began to synergize our
Workforce Development efforts, 1,432 people had
been hired (internally or externally) through our job
training and other programs.
Powering Our Communities
STEM Education
Through Workforce Development"
csr-year-2022-pdf.txt,"0 were hired either by
Exelon or other companies.
y Participants in our other workforce development
programs have achieved other successes, such as:
received internships, earned college scholarships or
increased their knowledge of STEM and STEM careers.
y Since 2019, when we began to synergize our
Workforce Development efforts, 1,432 people had
been hired (internally or externally) through our job
training and other programs.
Powering Our Communities
STEM Education
Through Workforce Development
Creating a reliable workforce pipeline is crucial to"
csr-year-2022-pdf.txt,"ased their knowledge of STEM and STEM careers.
y Since 2019, when we began to synergize our
Workforce Development efforts, 1,432 people had
been hired (internally or externally) through our job
training and other programs.
Powering Our Communities
STEM Education
Through Workforce Development
Creating a reliable workforce pipeline is crucial to
ensuring the success of the industry and meeting
the needs of society for dependable power and the
transition to a low carbon economy. As we promote STEM
Through job creation and economic opportunities, Our workforce development highlights from education for future leaders, it is our responsibility to"
csr-year-2022-pdf.txt,"ion
Through Workforce Development
Creating a reliable workforce pipeline is crucial to
ensuring the success of the industry and meeting
the needs of society for dependable power and the
transition to a low carbon economy. As we promote STEM
Through job creation and economic opportunities, Our workforce development highlights from education for future leaders, it is our responsibility to
Exelon seeks to bring economic equity and 2022 include: also support underrepresented populations and build a
empowerment to under-resourced and diverse workforce. As part of Exelon’s ongoing efforts to"
csr-year-2022-pdf.txt,"of society for dependable power and the
transition to a low carbon economy. As we promote STEM
Through job creation and economic opportunities, Our workforce development highlights from education for future leaders, it is our responsibility to
Exelon seeks to bring economic equity and 2022 include: also support underrepresented populations and build a
empowerment to under-resourced and diverse workforce. As part of Exelon’s ongoing efforts to
y We invested more than $16 million to support more
underserved communities. We are committed to promote workforce development and empower young"
csr-year-2022-pdf.txt,"EM
Through job creation and economic opportunities, Our workforce development highlights from education for future leaders, it is our responsibility to
Exelon seeks to bring economic equity and 2022 include: also support underrepresented populations and build a
empowerment to under-resourced and diverse workforce. As part of Exelon’s ongoing efforts to
y We invested more than $16 million to support more
underserved communities. We are committed to promote workforce development and empower young
than 80 workforce development programs across six"
csr-year-2022-pdf.txt,"s and in our corporate offices. These programs
and live with job training, barrier removal efforts National Energy Education Development Project, created
included our Infrastructure Academies, which create
and educational resources to support both work- free year-round STEM programming to engage high
pathways into utility careers through training
ready adults and youth for family-supporting school girls from under-resourced communities in our
programs offered in partnership with other entities.
careers. We use workforce development programs key markets: the metro areas of Chicago, Philadelphia,"
csr-year-2022-pdf.txt,"ng to engage high
pathways into utility careers through training
ready adults and youth for family-supporting school girls from under-resourced communities in our
programs offered in partnership with other entities.
careers. We use workforce development programs key markets: the metro areas of Chicago, Philadelphia,
to positively impact the communities we serve Baltimore and the District of Columbia.
y For the second year in a row, we received the
by further equipping individuals who are either
Center for Energy Workforce Development’s"
csr-year-2022-pdf.txt,"offered in partnership with other entities.
careers. We use workforce development programs key markets: the metro areas of Chicago, Philadelphia,
to positively impact the communities we serve Baltimore and the District of Columbia.
y For the second year in a row, we received the
by further equipping individuals who are either
Center for Energy Workforce Development’s
unemployed or underemployed with new and highest award—the Chairman’s Award—which In the summer, we offered free, week-long STEM
valuable job skills to support their future success recognizes a company for excellence in workforce Academies at local universities for young women in"
csr-year-2022-pdf.txt,"or underemployed with new and highest award—the Chairman’s Award—which In the summer, we offered free, week-long STEM
valuable job skills to support their future success recognizes a company for excellence in workforce Academies at local universities for young women in
and build a pipeline of qualified, diverse and local development leadership. the northern Illinois, Philadelphia, and Baltimore/
talent to support Exelon’s ability to meet the District of Columbia areas. Participants learned from
workforce needs of the energy future. y More than 6,000 people participated in Exelon’s women working in STEM and other leaders by exploring"
csr-year-2022-pdf.txt,"support their future success recognizes a company for excellence in workforce Academies at local universities for young women in
and build a pipeline of qualified, diverse and local development leadership. the northern Illinois, Philadelphia, and Baltimore/
talent to support Exelon’s ability to meet the District of Columbia areas. Participants learned from
workforce needs of the energy future. y More than 6,000 people participated in Exelon’s women working in STEM and other leaders by exploring
workforce development programs. sustainability, energy efficiency, renewable energy and"
csr-year-2022-pdf.txt,"profit organizations, with 90 percent of our total
Vocational Technical High
most to the customers and communities that we grants supporting organizations, programs or events
School (MERVO)
serve. Our engagement efforts span corporate giving, that serve the needs of diverse populations.
employee philanthropy and volunteerism. Our Tyree Georgie studied Computer-Aided
philanthropy programs also complement, and The company’s paramount focus area continues Design and Drafting (CADD) at Mergenthaler
coordinate with, Exelon’s broader focus on workforce to be education, specifically supporting student Vocational-Technical (MERVO) High School"
csr-year-2022-pdf.txt,"o continue to
of both has been completed and approved by MDE
educate ourselves and employees, establish processes
and the Delaware Department of Natural Resources
and procedures, collaborate with our communities, in
and Environmental Control; a third site is currently
support of continuous improvement.
undergoing evaluation. We discuss the status of the
utility MGP programs and remediation reserves in
Our efforts to advance equity and EJ include
more detail in Exelon’s FY2022 10-K Environmental
community support, workforce and supplier"
csr-year-2022-pdf.txt,"Inclusion (DEI) are advancement and retention are integral to each
core values. We embrace and leverage diversity and council’s strategies and programming. In addition
ensure an equitable and inclusive culture, as we to this core function, the Councils also serve
continue to innovate, grow and meet the dynamic as critical partners to our executive leaders as
needs of our employees, customers and communities. they determine appropriate responses to issues
impacting our employees and communities.
Diverse Workforce"
csr-year-2022-pdf.txt,"nt
continues failitating the advancement, expansion to helping advance social and racial equity in
and awareness building of critical programs communities disproportionately impacted by
delivered across the organization. pollution and climate change.
Our company culture prioritizes To further advance Exelon’s DEI strategy, the Continued Commitment
company also established Diversity Leadership
safety, innovation and diversity, to an Inclusive Culture
Councils with the specific goal to deepen and
equity and inclusion, at all levels expand our workforce pipeline to attract and"
csr-year-2022-pdf.txt,"ities (2021). The nation’s
unconscious bias awareness; and understanding
leading disability benchmarking tool focuses on
systemic advantage, leading to changes in behavior
companies who advance disability inclusion as a
and ultimately an improved culture of inclusion.
business imperative. In its first year competing,
Exelon was recognized as an employer of choice
For more information on Exelon’s DEI performance for individuals with disabilities.
and results, please see our Diversity, Equity and
Inclusion page. Chairman’s Award for Workforce Development"
csr-year-2022-pdf.txt,"understanding
leading disability benchmarking tool focuses on
systemic advantage, leading to changes in behavior
companies who advance disability inclusion as a
and ultimately an improved culture of inclusion.
business imperative. In its first year competing,
Exelon was recognized as an employer of choice
For more information on Exelon’s DEI performance for individuals with disabilities.
and results, please see our Diversity, Equity and
Inclusion page. Chairman’s Award for Workforce Development
Leadership in the Center for Energy Workforce"
csr-year-2022-pdf.txt,"evel Officials and Managers” and “First/Mid-Level Officials Full-Time 18,911 99.2% Within 10 Years of
and Managers”. Retirement Eligibility 1,787 59.0%
Part-Time 152 0.8%
[4] Due to the Constellation separation, we are not reporting
employee turnover rate as of 12/31/22. Average turnover rates Total Employees 3,030 100.0%
for years 2020–2022 are available in the Exelon 2022 10-K. Total Employees 19,063 100% in Management
Exelon Sustainability Report 2022 114Attracting Top Talent/Human Resources
At Exelon, we recognize that our employees are one of Our efforts in workforce development and our Exelon’s Talent Management"
csr-year-2022-pdf.txt,"loyee
for developing, engaging and retaining the talent
needs. BGE employees are supported in their
on their teams. The program has helped to increase
development of the core competencies, technical
our new leaders’ engagements and shorten their
skills and field training. This model supports classroom,
times to integrate into their new roles. PECO also
virtual reality and on-the-job training required for our
reenergized our efforts to support all employees in
employees to thrive.
the management
Exelon Sustainability Report 2022 116Engaging Talent and Listening Progressive Workforce Policies Employee and Labor Relations. Exelon has a highly"
csr-year-2022-pdf.txt,"se
development of the core competencies, technical
our new leaders’ engagements and shorten their
skills and field training. This model supports classroom,
times to integrate into their new roles. PECO also
virtual reality and on-the-job training required for our
reenergized our efforts to support all employees in
employees to thrive.
the management
Exelon Sustainability Report 2022 116Engaging Talent and Listening Progressive Workforce Policies Employee and Labor Relations. Exelon has a highly
to Our Employees engaged, innovative and collaborative workforce. As of"
csr-year-2022-pdf.txt,"thrive.
the management
Exelon Sustainability Report 2022 116Engaging Talent and Listening Progressive Workforce Policies Employee and Labor Relations. Exelon has a highly
to Our Employees engaged, innovative and collaborative workforce. As of
Paid Leave. Exelon is committed to offering industry- December 31, 2022, our utilities and BSC companies had
To support and retain our talent, we must create an leading comprehensive paid leave benefits to 19,063 employees, of which 8,379 (44 percent) were
environment where our workforce can perform well help employees balance their work and family represented by labor unions. Within the represented"
csr-year-2022-pdf.txt,"onscious bias, and embed our employees in their work and personal lives
supervisor effectiveness and DEI increasing since equal pay efforts into broader enterprise-wide by providing resources to help them manage life
the previous survey issuance. Exelon’s employee equity initiatives. We are devoted to creating an situations and their individual wellness journeys.
engagement was rated as 75 percent favorable, environment that attracts and retains women by Through our enhanced Employee Assistance
which is a one-point decrease since the previous enabling them to stay in the workforce, grow with Program, employees can access resources to cope"
csr-year-2022-pdf.txt,"them to stay in the workforce, grow with Program, employees can access resources to cope
survey issuance and one point below the external us and move up in the ranks, all with parity of pay. with crisis care, addiction, parenting and financial
norm. As leaders share the results with employees matters, and employees can receive services focused
and take action to address the findings, additional Tuition Reimbursement. Continued education leads on targeted, verifiable health improvements through
Employee Engagement Pulses and surveys will to a more engaged, skilled and productive workforce. virtual physical therapy, expert medical opinion,"
csr-year-2022-pdf.txt,"tilities also engage in the Value
Above all else, our most important safety and health
Based Engagement (VBE) program. The VBE
goal is to build systems that have the capacity
Program is focused on assessing culture using
to control hazards and eliminate employee and
higher-level leaders engaging employees
contractor serious injuries and fatalities. We did not
through conversations with the purpose of
achieve that goal in 2022, as a subcontractor of an routinely assessing the alignment of safety
Exelon contractor working for PHI was fatally injured values across the workforce and to reconciling"
csr-year-2022-pdf.txt,"d industrial hygiene standards, the one fatality previously discussed
in safety programs and safety culture. We conduct excellence, training excellence, and fostering a represents an unacceptable failure of our
risk assessments, track and investigate incidents learning organization that continuously seeks to commitment to ensure that every worker gets home
and implement corrective action programs that improve. In 2022, Supervisor Safety Leadership safe each day. We are committed to reenergizing
ensure learnings are shared and advance our Training was conducted across all Exelon utility our workforce to anticipate and recognize potential"
csr-year-2022-pdf.txt,"ce. In 2022, our contractor OSHA
incidents. We track contractor OSHA-recordable rates recordable rate was 0.49, a rate decrease due to
and review them monthly. continued emphasis on contractor safety.
Exelon Employee Safety Performance 2020–2022[1]
Category 2020 2021 2022
OSHA Recordable Rate[2] 0.87 0.94 0.90
OSHA DART Rate[3] 0.96 0.67 0.70
OSHA Lost Time Rate[4] 38.38 22.88 19.19
Exelon EEI Serious Injury Incident Rate[5] 0.08 0.07 0.06
Exelon’s Contractor OSHA Recordable Rate 0.66 0.61 0.49
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2020 and 2019 reflects incidents and employee"
csr-year-2022-pdf.txt,"iew them monthly. continued emphasis on contractor safety.
Exelon Employee Safety Performance 2020–2022[1]
Category 2020 2021 2022
OSHA Recordable Rate[2] 0.87 0.94 0.90
OSHA DART Rate[3] 0.96 0.67 0.70
OSHA Lost Time Rate[4] 38.38 22.88 19.19
Exelon EEI Serious Injury Incident Rate[5] 0.08 0.07 0.06
Exelon’s Contractor OSHA Recordable Rate 0.66 0.61 0.49
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2020 and 2019 reflects incidents and employee
headcount for Exelon utility operations and corporate-level workforce under Exelon’s previous structure and may differ from previous reports."
csr-year-2022-pdf.txt,"ection of our
shareholder base, representing approximately 36
percent of Exelon’s outstanding shares. The feedback
received from shareholders and other stakeholder
groups is shared with each Board Committee and the
Board, as appropriate, on a regular basis throughout
the year.
Exelon Sustainability Report 2022 124Sustainability Sustainability Governance at Exelon
Governance
Board of Directors
y Oversees all ESG issues not specifically delegated y Engages in ongoing discussions around diversity,
to a committee workforce development and corporate culture"
csr-year-2022-pdf.txt,"tees
approved an enhanced Annual Incentive Plan
(AIP) for executive compensation that adds a
new Environmental, Social and Governance (ESG) Sustainability Council Racial Equity Task Force
modifier under which up to ±10 percent of the
overall AIP payout for each named executive y Leads the development of an integrated y Focuses on six key areas: Culture &
officer will be affected by environmental and social sustainability strategy for Exelon and its utilities Accountability, Customers, Community
Empowerment, Policy Reform, Workforce"
csr-year-2022-pdf.txt,"and to the Chair of Exelon we work to advance public policy, we work with many
Human Rights Policy
Board’s Audit and Risk Committee and serves as associations and business groups, such as EEI, AGA
a member of Exelon’s Executive Committee. The and Business Roundtable, on a wide variety of matters,
In 2022, Exelon adopted a corporate Human Rights
EVP for Compliance, Audit, and Risk also provides including clean energy, cybersecurity, supply chain,
Policy, which reaffirms respect for human rights
regular reports to the Audit and Risk Committee tax policy, workforce development and other related"
csr-year-2022-pdf.txt,"2 2-26 Mechanisms for seeking advice and raising concerns Compliance and Ethics
Exelon Sustainability Report 2022 136Framework Disclosure Location/Response
GRI 2 2-27 Compliance with laws and regulations Environmental Management, Monitoring Compliance Performance
GRI 2
Supporting a Clean Energy Policy Transformation, Sustainable Supply Chain,
GRI 2 2-28 Membership associations
ESG Resources webpage
Stakeholder Engagement
GRI 2 2-29 Approach to stakeholder engagement Stakeholder Engagement
GRI 2
Attracting Top Talent/Human Resources, Progressive Workforce Policies"
csr-year-2022-pdf.txt,"nd Biodiversity
GRI 3: Material Topics 2021 3-3 Management of Waste Waste and Recycling
GRI 306: Effluents
306-4 Waste diverted from disposal Waste and Recycling
and Waste 2016
A Safe, Innovative and Rewarding Workplace
GRI 3: Material Topics 2021 3-3 Management of Employment Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016 401-1 New employee hires and employee turnover Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016
GRI 401: Employment 2016 401-3 Parental leave Progressive Workforce Policies"
csr-year-2022-pdf.txt,"yee Development and Training
GRI 404: Training and
404-2 Programs for upgrading employee skills Employee Development and Training
Education 2016
GRI 3: Material Topics 2021 3-3 Management of Diversity and Equal Opportunity Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 405: Diversity and
405-1 Diversity of governance bodies and employees Accelerating Our Commitment to Diversity, Equity and Inclusion
Equal Opportunity 2016
3-3 Management Approach of Freedom of Association and
GRI 3: Material Topics 2021 Progressive Workforce Policies"
csr-year-2022-pdf.txt,"/Response
EU11 Average generation efficiency of thermal plants by energy source and
GRI EU Not applicable
by regulatory regime
GRI EU EU12 Transmission and distribution losses as a percentage of total energy FERC Form 1
EU13 Biodiversity of offset habitats compared to the biodiversity of the
GRI EU Habitat and Biodiversity, Terrestrial Habitats and Wildlife Management
affected areas
EU14 (former) Programs and processes to ensure the availability of a
GRI EU Attracting Top Talent/Human Resources
skilled workforce"
csr-year-2022-pdf.txt,"ity
Number of residential customer electric disconnections for Reported to jurisdictional public service commissions for each
Energy Affordability IF-EU-240a.3
non-payment, percentage reconnected within 30 days utility, as required.
Discussion of impact of external factors on customer affordability of
Energy Affordability IF-EU-240a.4 Energy Affordability
electricity, including the economic conditions of the service territory
(1) Total recordable incident rate (TRIR), (2) fatality rate, and (3)
Workforce Health and Safety IF-EU-320a.1 Safety Performance"
Dell-2022.txt,"sk mitigation and governance practices, and Responsible Business Alliance (RBA) Code
inform our strategic priorities. of Conduct
Our last corporate-level HRIA, completed in Child Labor, Forced Supply Chain Dell Human Rights Policy Supply Chain Sustainability section of this report
FY19, confirmed our awareness of our salient Labor
RBA Code of Conduct Dell Statement Against Slavery and Human Trafficking
human rights risks and impact areas (see table),
and that we have the essential structures in
Dell Vulnerable Worker Policy Dell Supplier Principles"
Dell-2022.txt,"ion of
implemented as projects our innovation process through centralized tools, resources and event planning led by our Culture of Innovation team.
Level of participation in in-house 97% 86% 92% In FY22, 92.0% of Dell factory team members participated in in-house ideation sessions. We attribute our recent progress to stronger
ideation sessions coordination across all our Dell factory locations to create meaningful, exciting and innovation-focused events for frontline team
members and managers.
Number of ideas submitted in N/A N/A 8,131 In FY22, 8,131 ideas were submitted by workers to management as part of a pilot program with two suppliers to support worker"
Dell-2022.txt,"Dell factory team members participated in in-house ideation sessions. We attribute our recent progress to stronger
ideation sessions coordination across all our Dell factory locations to create meaningful, exciting and innovation-focused events for frontline team
members and managers.
Number of ideas submitted in N/A N/A 8,131 In FY22, 8,131 ideas were submitted by workers to management as part of a pilot program with two suppliers to support worker
supply chain engagement and drive innovation.
Number of ideas implemented in N/A N/A 7,763 In FY22, 7,763 ideas were implemented as part of a pilot program with two suppliers to drive innovation through worker engagement."
Dell-2022.txt,"Total number of future-ready skills training hours
Supported the growth of our in-house Developed and successfully implemented a in supply chain
manufacturing teams by implementing future- future-ready skills pilot with two key suppliers.
ready training focused on addressing personal Dell collaborated with these suppliers
and interpersonal effectiveness, such as to benchmark their existing training and
communication and having a growth mindset, as development programs against Dell and industry
well as cognitive skill topics, such as decision- standards, created a frontline worker talent"
Dell-2022.txt,"Y21 86%
Number of ideas Number of ideas Facilitated online brainstorming sessions to
FY22 1,405 FY22 92% submitted in implemented in
enable idea sharing across global facilities. Our
supply chain supply chain
Culture of Innovation Teams enhanced our
0 300 600 900 1,200 1,500 0% 20% 40% 60% 80% 100% engagement strategy by launching more virtual
events, using collaboration platforms that allowed
In-house innovation ideas implemented as projects Level of participation in in-house ideation sessions
frontline worker participation in real-time ideation,"
Dell-2022.txt,"value chain to drive positive impact for
• Dell Responsible Sourcing Policy.
Through our SER initiatives, we proactively
people and the planet.
identify and mitigate issues throughout the tiers • Dell Statement Against Slavery and Human
of our supply chain, including final assembly, Trafficking, compliant with the Australia Modern
direct and sub-tier suppliers. Slavery Act, the U.K. Modern Slavery Act and
the California Transparency in Supply Chain Act.
We focus on the most salient human rights
• Dell Vulnerable Worker Policy. “Our social and environmental responsibility"
Dell-2022.txt,".
• Self-paced online trainings: Most supplier
factories can access Dell’s online training
platforms (either by computer or mobile phone),
which offer digital learning opportunities for
supplier management in a variety of languages.
In FY22, 590 factories had access to more
than 218 training sessions. We use our
online trainings to both encourage proactive
Capability building
knowledge and performance growth and drive
1,616 11,791 hours
corrective action.
For the final element of our continuous
improvement model, we provide resources for • Frontline worker training: We recognize that unique participants attended of training on social and environmental"
Dell-2022.txt,"audit
a better communication process between their
showed this decreased to 13.0%.
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 119
FY22 ESG REPORTBETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN
Helping ensure safe use of the industry to identify priority chemicals that
could pose a high risk of harmful impacts. Our
chemicals
ongoing involvement with CEPN includes active
participation in the Worker Engagement and"
Dell-2022.txt,"ufacturing Process Chemicals to help
suppliers implement best practices for managing • Creates a road map for process chemical
chemicals that pose risks for the environment management informed by suppliers,
or health. In addition, we survey key suppliers nongovernmental organizations and subject
to understand and monitor chemical use in our matter experts.
supply chain. For example, in FY22, we asked
• Supports companies in assessing use of process
our suppliers about their understanding of our
chemicals, strengthening the culture of worker"
Dell-2022.txt,"es a road map for process chemical
chemicals that pose risks for the environment management informed by suppliers,
or health. In addition, we survey key suppliers nongovernmental organizations and subject
to understand and monitor chemical use in our matter experts.
supply chain. For example, in FY22, we asked
• Supports companies in assessing use of process
our suppliers about their understanding of our
chemicals, strengthening the culture of worker
policy. Through further engagement regarding
safety and engagement, reducing worker"
Dell-2022.txt,"ains a free phone helpline to ensure the
with suppliers to develop corrective action plans
people in our supply chain, as well as individuals
to address areas of nonconformance. In cases of
and organizations representing them have a
severe (priority and/or major) findings, suppliers
reliable, confidential communications channel
may be required to complete a third-party closure
through which to share concerns or suggestions.
audit to resolve the issue.
A third-party, nongovernmental organization
with expertise in worker feedback channels"
Dell-2022.txt,"ear, we received a
rights. We also asked the site to revise their
complaint via the helpline from an employee
policy and processes to implement protections
of one of our suppliers in China. The caller
for female workers.
expressed concern that her request for a transfer
to a different role was denied. The employee
In addition to updating the policy and processes,
noted that her transfer request was due to
we collaborated with the supplier to create
her pregnancy status and the desire for a less
a checklist related to female worker rights."
Dell-2022.txt,"pplier to create
her pregnancy status and the desire for a less
a checklist related to female worker rights.
strenuous role.
Using this checklist, the human resources team
can identify whether similar issues arise and
China has clear requirements regarding how
is empowered to act quickly to protect the
employers treat pregnant and nursing workers,
workplace rights of pregnant and
including bans on pregnancy-based discrimination
nursing workers.
in employment. These regulations stipulate that if
a pregnant worker informs her employer that she"
Dell-2022.txt,"Y20 and FY21 have been restated to reflect an adjustment in methodology. Suppliers’ emissions numbers have been
extrapolated to cover 100% of spend.
48 Additional corrective action toolkits are as follows: Emergency preparedness and response procedures; Ethics
documentation system guidance; Labor and ethics risks (including forced labor); Personal protective equipment selection 69 We have restated our FY20 and FY21 scope 3, category 11 metrics due to the following: changing our calculation base
and use management; Worker protections for pregnant women and nursing mothers; Chemicals management; Ergonomic from ordered units to shipped units; including updated power models for select displays; and identifying and resolving"
Dell-2022.txt,"iving and volunteering Centralized location for customers to learn more about
installations compared with FY20 Black/African American or Hispanic/Latino in the U.S. our privacy practices
55% 99.6% 222 3
Electricity across Dell Technologies facilities from Team members completed Be the Change focused on Nonprofits supported on their digital Mechanisms for people to speak up and report a concern
renewable sources understanding topics related to inclusion transformation journey
90.2% 47% 135M 100%
Packaging across our entire product portfolio made with Team members are in at least one Employee Resource Individuals enrolled with Digital Lifecare in India Employees agreed to the Dell Technologies"
Dell-2022.txt,"macro trends: The CSCO as Chief
strong ESG requirements regarding sustainability Ecosystems Officer, Self-Stabilizing Supply Chains,
performance in our sector in 2021. Progress on Broader Sustainability Agenda and
Human-Centric Digital Automation.*
SUPPLIER ENGAGEMENT LEADERBOARD AMERICA’S MOST LOVED WORKPLACES
KNOWTHECHAIN Leader status Score: 2nd out of 100 companies
Score: 6th out of 49 companies
Recognized as a leader among the top 8% of This list recognizes companies that prioritize their
Ranked sixth in the Information and companies assessed for supplier engagement on employees as noted through employee surveys and"
Dell-2022.txt,"ns,
performance in our sector in 2021. Progress on Broader Sustainability Agenda and
Human-Centric Digital Automation.*
SUPPLIER ENGAGEMENT LEADERBOARD AMERICA’S MOST LOVED WORKPLACES
KNOWTHECHAIN Leader status Score: 2nd out of 100 companies
Score: 6th out of 49 companies
Recognized as a leader among the top 8% of This list recognizes companies that prioritize their
Ranked sixth in the Information and companies assessed for supplier engagement on employees as noted through employee surveys and
Communications Technology Sector. Began climate change, based on our 2021 CDP disclosure. analysis of employee benefits. Dell is committed to"
Dell-2022.txt,"2030, 100% of the partners we do business with will
by 50% by 2030. • Each year through 2030, 90% of our employees will rate • By 2030, we will use our expertise and technology to demonstrate their commitment to our values.
their job as meaningful. help 1,000 nonprofit partners digitally transform to better
• We will source 75% of electricity from renewable sources
serve their communities.
across all Dell Technologies facilities by 2030 — and • By 2030, 50% of our employees will participate in
100% by 2040. Employee Resource Groups to drive social impact. • Each year through 2030, 75% of our employees will"
Dell-2022.txt,"to
the world and driving human progress more than other companies, and 92% saw a clear link between their work and Dell Technologies’
objectives.14
By 2030, 50% of our employees Percentage of employees 33% 44% 47% In FY22, 47% of employees participated in one or more ERG. This represents an annual addition of 3.0 percentage points toward our
participating in ERGs goal. We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and
will participate in Employee"
Dell-2022.txt,"n through digital
inclusion initiatives aimed at
delivering enduring results for 1
billion people by 2030
Each year through 2030, 50% Percentage of people reached 51.7% 56.1% 54.1% In FY22, 54.1% of the people empowered by our social and education initiatives were girls, women or underrepresented groups. This
who identify as girls, women or represents a 2 percentage point decrease compared to the year prior. We attribute our continued progress to our strategic giving and
of the people empowered
underrepresented groups Digital LifeCare programs reaching more people in FY22. The inclusion of DWEN metrics and other Employee Resource Group (ERG)"
Dell-2022.txt,"ting year is collected in the following year (e.g., FY22 is collected
and measured in FY23), since this optional survey asks employees to consider their previous year of
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
employment. This goal’s metric is based on the percent of favorable responses received for the survey
identified as women.
query, “my work gives me a sense of personal accomplishment” during our annual, internal and optional
employee opinion survey of Dell Technologies full- and part-time employees."
Dell-2022.txt,"o self-
employment. This goal’s metric is based on the percent of favorable responses received for the survey
identified as women.
query, “my work gives me a sense of personal accomplishment” during our annual, internal and optional
employee opinion survey of Dell Technologies full- and part-time employees.
Metric: By 2030, 40% of our global people leaders will be those who identify as women
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
By 2030, 50% of our employees will participate in Employee Resource Groups to drive social impact"
Dell-2022.txt,"work gives me a sense of personal accomplishment” during our annual, internal and optional
employee opinion survey of Dell Technologies full- and part-time employees.
Metric: By 2030, 40% of our global people leaders will be those who identify as women
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
By 2030, 50% of our employees will participate in Employee Resource Groups to drive social impact
identified as women who are people leaders.
Methodology: Currently, we report participation in Employee Resource Groups (ERGs) as the count of"
Dell-2022.txt,"opinion survey of Dell Technologies full- and part-time employees.
Metric: By 2030, 40% of our global people leaders will be those who identify as women
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
By 2030, 50% of our employees will participate in Employee Resource Groups to drive social impact
identified as women who are people leaders.
Methodology: Currently, we report participation in Employee Resource Groups (ERGs) as the count of
employees signed up for any of our 13 ERGs divided by the total employee population in scope."
Dell-2022.txt,"/African American
or Hispanic/Latino Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected
and measured in FY23), since this optional survey asks employees to consider their previous year of
Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self-
employment. This goal’s metric is based on the percent of favorable responses received for the survey
identified as Black/African American or Hispanic/Latino.
query, “my leader inspires me” during our annual, internal and optional employee opinion survey of Dell"
Dell-2022.txt,"y: Currently, this measurement covers the number of nonprofit organizations that have
Dell programs such as strategic giving and social innovation (e.g., Digital LifeCare). Due to the vast participated in a Tech Pro Bono program. We are developing measurements to include nonprofits that are
geographical spread of data and limited capacity of partners to verify data at the granularity of each supported through other Dell efforts, including direct business unit giving and those organizations that
beneficiary, our direct and indirect impact metrics are not a unique representation of lives impacted. benefit from organic, skill-based employee volunteering."
Dell-2022.txt,"connections we foster with team members help members with foundational learning on inclusive
play a role in helping create an inclusive work
recruiting and educational programs focused on drive engagement and collaboration. We are principles and practices annually. We also
environment. Through our People Philosophy and
reaching underrepresented groups, to innovative creating connections that reach around provide opportunities, tools and resources to
Culture Code, we are creating a culture where
hiring programs and partnerships, we are the globe through our Employee Resource encourage inclusive conversations for team"
Dell-2022.txt,"ations within our company. that’s why we are
Our people leaders play an important role in constantly listening to
building an inclusive culture, including developing
our people and adjusting
and retaining talent and recognizing performance.
They’re also encouraged to build a deep accordingly.
understanding of their people and to really check
in with their team members about their needs,
concerns and well-being.
We keep a pulse on workforce sentiments
We are also focused on understanding the gap
through our annual employee engagement survey,"
Dell-2022.txt,"NG SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 76
FY22 ESG REPORTCULTIVATING INCLUSION
Building community & belonging
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 77
FY22 ESG REPORTBUILDING COMMUNITY & BELONGING CULTIVATING INCLUSION GOAL
A sense of belonging By 2030, 50% of our
employees will participate in
Employee Resource Groups"
Dell-2022.txt,"FY22 ESG REPORTBUILDING COMMUNITY & BELONGING CULTIVATING INCLUSION GOAL
A sense of belonging By 2030, 50% of our
employees will participate in
Employee Resource Groups
Being part of a community can give a Advocating for change
to drive social impact
sense of belonging and enhance our
Mara Del Valle regularly faces injustices and
well-being. The connections we foster
transphobia in her daily life. But in her work life,
with our team members help drive
she feels embraced, supported and empowered
productivity and innovation. Our Employee PERFORMANCE TO DATE*"
Dell-2022.txt,"actice allyship.
our example.”
With 47.0% of our team members participating in
at least one ERG, we are on track to achieve our MARA DEL VALLE
2030 goal ahead of our projected timeline. SENIOR ANALYST, LOGISTICS (LATIN AMERICA)
* Please see our 2030 Goals Dashboard for more on the
progress, scope and measurement of this goal.
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 78
FY22 ESG REPORTBUILDING COMMUNITY & BELONGING Employee Resource Groups"
Dell-2022.txt,"ECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 91
FY22 ESG REPORTRECENT HIGHLIGHTS
Girls Empowerment Workshop “The Pro Bono team provides amazing support
throughout, providing all the tools necessary for
In October of 2021, Dell hosted a special Girls success. At the conclusion of the workshop, I
Empowerment Pro Bono Consulting Workshop walked away with an increased sense of pride
in partnership with our Women In Action ERG. in being a Dell employee, and happy knowing I"
Dell-2022.txt,"lped
and Ireland.
drive innovation
One of the organizations that was nominated
and solutions for
by one of Dell’s team members to participate in
the joint United Kingdom and Ireland workshop
greater quality, reach
was the Cancer Survival Group at the London
and impact.”
School of Hygiene & Tropical Medicine, a
university research group. During the workshop
APRIL HAWKINS
in December 2021, Dell and MetLife volunteers
ASSISTANT VP, METLIFE CORPORATE
developed a solution to help the Cancer Survival
GIVING AND EMPLOYEE VOLUNTEERISM"
Dell-2022.txt,"initiatives close to home and working Since 2012, the Dell Bangalore team has
“I feel great while working on these community
with nonprofits to help them digitally transform. championed the Girls Empowerment Program
Dell also gives to relief efforts and matches our and the overall development — from education engagement activities while working at Dell, and
team members’ monetary donations — up to to career readiness — of girls from rural India,
I feel delighted to see the impact I could create
$10,000 per employee per year — to the causes providing over 13,500 instances of support."
Dell-2022.txt,"FY22
help ensure we flag potential areas for inquiry in a
prevention tool. DIA uses machine learning, AI
proactive and timely manner.
and programmer feedback to analyze images to
Percentage of partners agreed to
detect falsification at the metadata level. Team
the Code of Conduct for Partners
members created this innovative tool, which
received the GameChangers 2021 Award. This Percentage of partners completed
assigned ethics and compliance
event and award, sponsored by Dell’s GenNext
training
Employee Resource Group (ERG), gives team"
Dell-2022.txt,"in, assure the
responsible manufacturing of our products,
of factories that went through at least their second audit cycle
and meet customer demands while adhering to
improved their audit scores between cycles47
recommended COVID-19 containment measures.
Third-party, RBA-certified auditors conduct our
supplier audits, which cover more than 40 topics
Audit
across five areas: labor (including risks of forced
labor, child labor and nonconformance with
Dell Technologies’ audit program is one of the
weekly working hours requirements); employee"
Dell-2022.txt,"in our supply chain
from potentially harmful process chemicals.
CEPN brings together stakeholders from across
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 120
FY22 ESG REPORTBETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN
Delivering health, safety and • Health and safety: Safety training; guidelines
on the use of process chemicals; how to use Mobile phone training, FY22
employee rights knowledge"
Dell-2022.txt,"AN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 122
FY22 ESG REPORTBETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN CASE STUDY
Helpline supports enforcement We also worked with the supplier to identify if
any other female workers were experiencing
and education
similar issues. Dell addressed the situation by
providing the supplier with education and training
Dell is committed to acting on concerns raised
materials about pregnant and nursing employee"
Dell-2022.txt,"122
FY22 ESG REPORTBETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN CASE STUDY
Helpline supports enforcement We also worked with the supplier to identify if
any other female workers were experiencing
and education
similar issues. Dell addressed the situation by
providing the supplier with education and training
Dell is committed to acting on concerns raised
materials about pregnant and nursing employee
in our supply chain. Last year, we received a
rights. We also asked the site to revise their
complaint via the helpline from an employee"
Dell-2022.txt,"education
similar issues. Dell addressed the situation by
providing the supplier with education and training
Dell is committed to acting on concerns raised
materials about pregnant and nursing employee
in our supply chain. Last year, we received a
rights. We also asked the site to revise their
complaint via the helpline from an employee
policy and processes to implement protections
of one of our suppliers in China. The caller
for female workers.
expressed concern that her request for a transfer
to a different role was denied. The employee"
Dell-2022.txt,"the human resources team
can identify whether similar issues arise and
China has clear requirements regarding how
is empowered to act quickly to protect the
employers treat pregnant and nursing workers,
workplace rights of pregnant and
including bans on pregnancy-based discrimination
nursing workers.
in employment. These regulations stipulate that if
a pregnant worker informs her employer that she
As a result of the education and assistance our
is not able to perform her usual job, those duties
specialists provided, the pregnant employee’s"
Dell-2022.txt,"rotect the
employers treat pregnant and nursing workers,
workplace rights of pregnant and
including bans on pregnancy-based discrimination
nursing workers.
in employment. These regulations stipulate that if
a pregnant worker informs her employer that she
As a result of the education and assistance our
is not able to perform her usual job, those duties
specialists provided, the pregnant employee’s
must be modified.
transfer request was approved, and she moved to
a less physically demanding role.
Upon learning of this employee’s concern,"
Dell-2022.txt,"tt aaaaaaannnnnnnddddddd rrrrrrreeeeeeesssssssttttttt dddddddaaaaaaayyyyyyysssssss
* In previous years, Dell reported supply chain metrics on an annual basis. Going forward these will be reported on a fiscal year basis, unless otherwise noted.
DELL TECHNOLOGIES
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FY22 ESG REPORTSUPPLY CHAIN — AUDIT RESULTS
Key Results are based on audits of 317
Employee health and safety"
Dell-2022.txt,"eader roles 3.0% 3.5% 3.7%
U.S. Asian representation in people leader roles 11.7% 12.8% 13.6%
U.S. American Indian or Alaska Native representation in people 0.4% 0.6% 0.6%
leader roles
U.S. Native Hawaiian or other Pacific Islander representation in 0.1% 0.1% 0.1%
people leader roles
U.S. two or more races representation in people leader roles 0.9% 1.1% 1.0%
U.S. White representation in people leader roles 76.1% 72.9% 71.0%
U.S. not specified representation in people leader roles 0.6% 0.8% 1.0%
Percentage of employees participating in Employee Resource 33% 44% 47% Participation is count of employees signed up for any of our 13 ERGs divided by the total employee population in scope."
Dell-2022.txt,"e nature of
the community outreach, and this is in line with common measurement and evaluation practices across the industry.
Total number of nonprofit partners supported in their digital 11 76 222 Currently, this measurement covers the number of nonprofit organizations that have participated in a Tech Pro Bono program. We are
transformation journey (cumulative) developing measurements to include nonprofits that are supported through other Dell efforts, including direct business unit giving and
those organizations that benefit from organic, skill-based employee volunteering."
Dell-2022.txt,"tricted or Transferred) abilities.
inhumane.
rate: A measure of the severity of occupational
Downstream: Refers to stages in a value chain
Circular economy: An economic system based injuries.
after the production of a product, where the
on the principles of designing out waste and
Data control process: The process of governing product is distributed, used or disposed of.
pollution, keeping products and materials in use,
and managing data. It is a common type of
and regenerating natural systems.
Employee Net Promoter Score: Based on the"
Dell-2022.txt,"ere the
on the principles of designing out waste and
Data control process: The process of governing product is distributed, used or disposed of.
pollution, keeping products and materials in use,
and managing data. It is a common type of
and regenerating natural systems.
Employee Net Promoter Score: Based on the
internal control designed to achieve data quality,
concept built around the Net Promoter Score
Circularity: A description of an economic system governance and data management objectives.
(NPS) to measure employee loyalty, it is a method"
Dell-2022.txt,"urvey: A short, quick survey administered Responsible Business Alliance (RBA): The Scope 3 emissions: Indirect greenhouse gas
or balances the effect of a contrary one. Typically to employees on a regular basis (monthly, world’s largest industry coalition dedicated to emissions that are the result of activities and
used in the context of greenhouse gases. quarterly, etc.), typically used to ascertain corporate social responsibility in global supply assets in the value chain that are not directly
feedback regarding topics, such as employee chains. owned or controlled by the reporting organization."
Dell-2022.txt,"ieve a
including a company’s employees who are
better and more sustainable future for all.” The
promotion prospects or external candidates, who
SDGs were set in 2015 by the U.N. General
are qualified and ready to fill a position.
Assembly and are intended to be achieved by the
year 2030.
Team members: Team members refer to all Dell-
badged employees (including full-time, part-time
Upstream: Refers to the material and service
and temporary).
inputs needed for the production of goods or
services.
Tell Dell: Annual employee opinion survey"
Dell-2022.txt,"Our purpose in action
FY22 Environmental, Social and Governance ReportOUR COMMITMENT
At Dell Technologies our purpose is to create technologies
that drive human progress
Our commitment to environmental, social and governance is this purpose in action. It brings together who we are with what we do.
We apply our innovative technology, global reach and talented workforce to drive measurable societal impact focused on advancing"
Dell-2022.txt,"We view diversity, equity and an important role in advancing fundamental social impact. In this time of rapid innovation, big
communities to drive impact on the most inclusion as a business imperative and are focused human rights and in addressing complex societal data, an evolving regulatory environment and
pressing environmental issues. Core to our on attracting, building, developing and retaining challenges, including improving health, education increasing expectations from our ecosystem, we
business, the power and scale of our global a diverse workforce through an inclusive culture. and driving digital inclusion for all. We endeavor are committed to continuing to lead in ethics and"
Dell-2022.txt,"n cities from New York to Oakland, Calif., and
the U.S. bipartisan infrastructure bill and similar in rural areas like the Rio Grande Valley, are now
policies that provide equal access to technology equipped at home for virtual learning and more.
and advanced connectivity such as 5G. We
• Supported Giga, an initiative launched
recognize that access to connectivity is key to
by UNICEF USA and International
education, healthcare and a globally competitive
Telecommunication Union, to connect every
and diverse workforce. We believe that the"
Dell-2022.txt,"ll people.
accountability. These expectations are clearly Our team works with various governmental
defined in the Dell Technologies Code of Conduct bodies and engages with policymakers and
for Partners. elected representatives to discuss issues that
disproportionately impact underrepresented
groups, such as the digital divide. Our public policy
Supply chain
advocacy efforts also focus on how technology
can be leveraged to address economic injustices,
Dell is a founding member of the Responsible
racial bias, health inequities and workforce"
Dell-2022.txt,"ICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 23
FY22 ESG REPORTOur goals for 2030 and beyond With our plan, we are taking our next bold step toward driving positive impact for people and the planet. We are using these
goals to build our impact strategies over the next decade. Please see our Goals Dashboard for our progress toward these goals.
ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING ETHICS & PRIVACY
Moonshot Goal Moonshot Goal Moonshot Goal Moonshot Goal
By 2030, for every product a customer buys, we By 2030, 50% of our global workforce and 40% of With our technology and scale, we will advance By 2030, we will fully automate our data control"
Dell-2022.txt,"leaders will be those who identify health and education through digital inclusion processes, making it easier for our customers to
of our packaging will be made from recycled or as women. initiatives aimed at delivering enduring results for control their personal data.
renewable material. More than half of our product 1 billion people by 2030.
content will be made from recycled or renewable
material.
ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS ADDITIONAL IMPACT GOALS
• We will reach net zero greenhouse gas emissions across • By 2030, 25% of our U.S. workforce and 15% of our U.S. • Each year through 2030, 50% of the people empowered • Each year through 2030, 100% of our employees will"
Dell-2022.txt,"ive innovation.
Number of ideas implemented in N/A N/A 7,763 In FY22, 7,763 ideas were implemented as part of a pilot program with two suppliers to drive innovation through worker engagement.
supply chain
DELL TECHNOLOGIES
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FY22 ESG REPORTCultivating Inclusion Goals
Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22
MOONSHOT GOAL
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women"
Dell-2022.txt,"a pilot program with two suppliers to drive innovation through worker engagement.
supply chain
DELL TECHNOLOGIES
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FY22 ESG REPORTCultivating Inclusion Goals
Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22
MOONSHOT GOAL
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women
By 2030, 50% of our global workforce will Percentage of global workforce 31.1% 31.8% 33.9% In FY22, 33.9% of our global workforce identified as women. This represents an annual addition of 2.1 percentage points toward our"
Dell-2022.txt,"as women who identify as women goal. We attribute this progress toward our goal to continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’
leadership and team members, as well as inclusive culture practices in hiring, developing and retaining talent.
By 2030, 40% of our global people leaders Percentage of people leaders in 24.4% 25.8% 28.2% In FY22, 28.2% of our people leaders identified as women. This represents an annual addition of 2.4 percentage points toward our goal.
will be those who identify as women global workforce who identify We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and team"
Dell-2022.txt,"people leaders Percentage of people leaders in 24.4% 25.8% 28.2% In FY22, 28.2% of our people leaders identified as women. This represents an annual addition of 2.4 percentage points toward our goal.
will be those who identify as women global workforce who identify We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and team
as women members, as well as inclusive culture practices in hiring, developing and retaining talent.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or Hispanic/Latino"
Dell-2022.txt,"annual addition of 2.4 percentage points toward our goal.
will be those who identify as women global workforce who identify We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell Technologies’ leadership and team
as women members, as well as inclusive culture practices in hiring, developing and retaining talent.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or Hispanic/Latino
By 2030, 25% of our U.S. workforce will Percentage of U.S. workforce who 13.3% 14.2% 15.4% In FY22, 15.4% of our U.S. workforce identified as Black/African American or Hispanic/Latino. This represents an annual addition of 1.2"
Dell-2022.txt,"c/Latino or Hispanic/Latino Technologies’ leadership and team members, as well as university relations strategy and alignment to historically Black colleges and
universities, minority–serving institutions, Hispanic–serving institutions, and expansion to community colleges.
By 2030, 15% of our U.S. people leaders Percentage of people leaders in 9.9% 11.4% 12.2% In FY22, 12.2% of our U.S. people leaders identified as Black/African American or Hispanic/Latino. This represents an annual addition of
will be those who identify as Black/African the U.S. workforce who identify 0.8 percentage points toward our goal. We attribute this progress to our continued focus on our 2030 Cultivating Inclusion goals by Dell"
Dell-2022.txt,"and privacy practice
DELL TECHNOLOGIES
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FY22 ESG REPORTUpholding Ethics & Privacy Goals
Goal Unit of Measure FY20 FY21 FY22 About Our Performance in FY22
Each year through 2030, Percentage of Dell employees 100% 100% 100% In FY22, 100% of Dell employees completed assigned ethics and compliance training. In FY21, we reported 100% completion. We
who completed assigned ethics attribute this continued success to improvements that made training completion more accessible to a growing remote workforce, for"
Dell-2022.txt,"ell factories.
Measurement: Number of ideas submitted in the supply chain
Methodology: This reflects the number of ideas submitted by workers at two supplier sites participating
in a Dell pilot project. The scope includes data collected by the two participating suppliers.
DELL TECHNOLOGIES
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FY22 ESG REPORTGOALS METHODOLOGY
Cultivating Inclusion
By 2030, 50% of our global workforce and 40% of our global people leaders will identify as women Each year through 2030, 90% of our employees will rate their job as meaningful"
Dell-2022.txt,"g
in a Dell pilot project. The scope includes data collected by the two participating suppliers.
DELL TECHNOLOGIES
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FY22 ESG REPORTGOALS METHODOLOGY
Cultivating Inclusion
By 2030, 50% of our global workforce and 40% of our global people leaders will identify as women Each year through 2030, 90% of our employees will rate their job as meaningful
Metric: By 2030, 50% of our global workforce will be those who identify as women Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected"
Dell-2022.txt,"RTGOALS METHODOLOGY
Cultivating Inclusion
By 2030, 50% of our global workforce and 40% of our global people leaders will identify as women Each year through 2030, 90% of our employees will rate their job as meaningful
Metric: By 2030, 50% of our global workforce will be those who identify as women Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected
and measured in FY23), since this optional survey asks employees to consider their previous year of
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-"
Dell-2022.txt,"year of
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
employment. This goal’s metric is based on the percent of favorable responses received for the survey
identified as women.
query, “my work gives me a sense of personal accomplishment” during our annual, internal and optional
employee opinion survey of Dell Technologies full- and part-time employees.
Metric: By 2030, 40% of our global people leaders will be those who identify as women
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-"
Dell-2022.txt,"r global people leaders will be those who identify as women
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self-
By 2030, 50% of our employees will participate in Employee Resource Groups to drive social impact
identified as women who are people leaders.
Methodology: Currently, we report participation in Employee Resource Groups (ERGs) as the count of
employees signed up for any of our 13 ERGs divided by the total employee population in scope.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as"
Dell-2022.txt,"source Groups to drive social impact
identified as women who are people leaders.
Methodology: Currently, we report participation in Employee Resource Groups (ERGs) as the count of
employees signed up for any of our 13 ERGs divided by the total employee population in scope.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as
Black/African American or Hispanic/Latino
Each year through 2030, 75% of our employees will believe their leader is inspiring
Metric: By 2030, 25% of our U.S. workforce will be those who identify as Black/African American"
Dell-2022.txt,"of our U.S. people leaders will be those who identify as
Black/African American or Hispanic/Latino
Each year through 2030, 75% of our employees will believe their leader is inspiring
Metric: By 2030, 25% of our U.S. workforce will be those who identify as Black/African American
or Hispanic/Latino Methodology: Data for the reporting year is collected in the following year (e.g., FY22 is collected
and measured in FY23), since this optional survey asks employees to consider their previous year of
Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self-"
Dell-2022.txt,"ic is based on the percent of favorable responses received for the survey
identified as Black/African American or Hispanic/Latino.
query, “my leader inspires me” during our annual, internal and optional employee opinion survey of Dell
Technologies full- and part-time employees.
Metric: By 2030, 15% of our U.S. people leaders will be those who identify as Black/African
American or Hispanic/Latino
By 2030, 95% of our employees will participate in annual foundational learning on key topics such as
Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self-"
Dell-2022.txt,"al plastic consumption levels. As changes to where and how our
world. Although water resources are precious everywhere, living
team members work evolve, we will evaluate reporting on this or an
and operating in those areas require special consideration. We view
alternative metric in the future.
our goal to reduce freshwater use as part of being a good citizen of
those communities. Our FY22 results show a decrease across both
of these targets, largely as a result of the dramatic reduction of our
workforce going into Dell-owned facilities. As new ways of working"
Dell-2022.txt,"GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 69
FY22 ESG REPORTCULTIVATING INCLUSION
At the core of everything we do
Our Cultivating Inclusion goals align to these focus areas:
Representation Building community Foundational learning Meaningful work & inspiring
leaders
Dell believes in the importance of attracting and Being part of a community can give a sense Dell is committed to cultivating an inclusive
retaining a diverse workforce that reflects the of belonging and enhance our well-being. The work environment. We provide all our team"
Dell-2022.txt,"VATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 70
FY22 ESG REPORTCULTIVATING INCLUSION
Representation
DELL TECHNOLOGIES
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FY22 ESG REPORTREPRESENTATION
Building a culture of
inclusion
True inclusion requires intentional actions, which is why Dell
Technologies’ 2030 goals include a commitment to become a
more diverse workforce. We look to these goals as a central"
Dell-2022.txt,"for underrepresented groups
in the U.S.
To help build our pipeline of future talent, we continue to pilot and
innovate our hiring programs and processes. This includes removing
barriers to inclusion by continuously improving our accessibility
practices, expanding our recruiting efforts to underrepresented
groups and evaluating our internal processes. We help prepare
students to be STEM-ready with curriculum, applied learning,
internships and job opportunities to provide a meaningful pathway to
our future workforce."
Dell-2022.txt,"es, expanding our recruiting efforts to underrepresented
groups and evaluating our internal processes. We help prepare
students to be STEM-ready with curriculum, applied learning,
internships and job opportunities to provide a meaningful pathway to
our future workforce.
DELL TECHNOLOGIES
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FY22 ESG REPORTREPRESENTATION CULTIVATING INCLUSION GOAL
Empowering Rejoining the workforce Dell’s Career ReStart Returnship Program By 2030, 50% of our global"
Dell-2022.txt,"ith curriculum, applied learning,
internships and job opportunities to provide a meaningful pathway to
our future workforce.
DELL TECHNOLOGIES
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FY22 ESG REPORTREPRESENTATION CULTIVATING INCLUSION GOAL
Empowering Rejoining the workforce Dell’s Career ReStart Returnship Program By 2030, 50% of our global
gave her that chance. This 16-week program
workforce and 40% of our"
Dell-2022.txt,"ring Rejoining the workforce Dell’s Career ReStart Returnship Program By 2030, 50% of our global
gave her that chance. This 16-week program
workforce and 40% of our
Sandra Norris had a 20-year career in program matches candidates with roles that build on
women in the
and project management with Fortune 500 their core talents, training for new skills as global people leaders will
clients before stepping away to take care of her needed and mentors to support them at every be those who identify as
workforce"
Dell-2022.txt,"ly and moving around Europe and the U.S. in step. Career ReStart helps fill the talent gap
women
support of her husband’s career. Seventeen years with more experienced team members whose
later, Sandra’s world had changed. She was no fundamental skill sets make them invaluable
Expanding our professional hiring programs longer married and taking care of young children. additions to their teams.
PERFORMANCE TO DATE*
Wanting more for herself, Sandra decided to
is imperative to reaching our moonshot
rejoin the workforce but struggled to find an"
Dell-2022.txt,"lf, Sandra decided to
is imperative to reaching our moonshot
rejoin the workforce but struggled to find an
goals. We have the Career ReStart
organization that could see past her 17-year FY20 31.1%
Returnship Program for people who have
career gap.
had a career gap, along with opportunities FY21 31.8%
to refresh job skills and participate in
FY22 33.9%
structured onboarding. Though not limited
to women, these programs recognize the 0% 10% 20% 30% 40% 50%
unique challenges women have historically
Percentage of global workforce who identify"
Dell-2022.txt,"tart
organization that could see past her 17-year FY20 31.1%
Returnship Program for people who have
career gap.
had a career gap, along with opportunities FY21 31.8%
to refresh job skills and participate in
FY22 33.9%
structured onboarding. Though not limited
to women, these programs recognize the 0% 10% 20% 30% 40% 50%
unique challenges women have historically
Percentage of global workforce who identify
faced as primary caregivers, as well as the as women
impact of the recent pandemic on women
in the workforce. FY20 24.4%"
Dell-2022.txt,"e in
FY22 33.9%
structured onboarding. Though not limited
to women, these programs recognize the 0% 10% 20% 30% 40% 50%
unique challenges women have historically
Percentage of global workforce who identify
faced as primary caregivers, as well as the as women
impact of the recent pandemic on women
in the workforce. FY20 24.4%
FY21 25.8%
FY22 28.2%
“I knew if I could just get to the interview 0% 5% 10% 15% 20% 25% 30% 35% 40%
stage, they would see my value.” Percentage of people leaders in global
workforce who identify as women"
Dell-2022.txt,"uld see my value.” Percentage of people leaders in global
workforce who identify as women
SANDRA NORRIS
PROJECT MANAGER (NORTH AMERICA)
* Please see our 2030 Goals Dashboard for more on the
progress, scope and measurement of this goal.
DELL TECHNOLOGIES
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FY22 ESG REPORTREPRESENTATION CULTIVATING INCLUSION GOAL
Diversity By 2030, 25% of our U.S.
workforce and 15% of our"
Dell-2022.txt,"ment of this goal.
DELL TECHNOLOGIES
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FY22 ESG REPORTREPRESENTATION CULTIVATING INCLUSION GOAL
Diversity By 2030, 25% of our U.S.
workforce and 15% of our
that reflects
U.S. people leaders will be
Black/African American or
communities and
Hispanic/Latino
customers
PERFORMANCE TO DATE*
Dell believes in the importance of attracting and
FY20 13.3%
retaining a diverse workforce that reflects the"
Dell-2022.txt,"erican or
communities and
Hispanic/Latino
customers
PERFORMANCE TO DATE*
Dell believes in the importance of attracting and
FY20 13.3%
retaining a diverse workforce that reflects the
customers and communities we serve. We are
FY21 14.2%
committed to broadening our reach to ensure
we engage talent where they are learning, FY22 15.4%
growing and thriving. This includes our recruiting
and educational programs focused on reaching 0% 5% 10% 15% 20% 25%
underrepresented populations in professional and
Percentage of U.S. workforce who identify as Black/"
Dell-2022.txt,"e serve. We are
FY21 14.2%
committed to broadening our reach to ensure
we engage talent where they are learning, FY22 15.4%
growing and thriving. This includes our recruiting
and educational programs focused on reaching 0% 5% 10% 15% 20% 25%
underrepresented populations in professional and
Percentage of U.S. workforce who identify as Black/
technical fields.
African American or Hispanic/Latino
“I love helping the next generation of professionals see
Globally, we’re addressing gender disparities
in the workforce with regionally targeted that the technology industry can be accessible to them. FY20 9.9%"
Dell-2022.txt,"reer development
programs and mentoring circles. In the U.S., Students have told us they feel valued, appreciate the FY21 11.4%
we’re continuing to expand our partnerships
level of expertise and insight they gain, and know that
FY22 12.2%
with minority-serving institutions (MSIs),
we are rooting for them! The industry can feel very
historically Black colleges and universities
0% 3% 6% 9% 12% 15%
(HBCUs), Hispanic-serving institutions (HSIs)
intimidating, but we know that together, we can change
and community colleges to provide curriculum, Percentage of people leaders in the U.S. workforce"
Dell-2022.txt,"nt. Dell’s neurodiversity hiring program offered bored. This is where the
Richard the opportunity to showcase his jobs of the future will be.”
90%
talents through a two-week workshop that
included a sample peer project, mentors, career RICHARD ERSKINE
development skills and hiring managers with REGULATORY AUDIT SENIOR ANALYST, Nearly 90.0% of career reentry
Embracing neurodiverse talent
GLOBAL AUDIT & TRANSFORMATION
training on unconscious bias. candidates are women who left the
(NORTH AMERICA)
workforce for various reasons. Dell"
Dell-2022.txt,"work toward
is still opportunity;
the best intersection of their strengths and
aspirations within our company. that’s why we are
Our people leaders play an important role in constantly listening to
building an inclusive culture, including developing
our people and adjusting
and retaining talent and recognizing performance.
They’re also encouraged to build a deep accordingly.
understanding of their people and to really check
in with their team members about their needs,
concerns and well-being.
We keep a pulse on workforce sentiments"
Dell-2022.txt,"n. At Dell, we support the expansion of their skills, knowledge, time and personal contributions to create the
untethered to a place, disrupting economic growth trends. New research access and computing capacity through our work with changes they want to see in the world. As part of our initiatives, we
jobs are emerging that demand quick uptake of new skills. Basic partner organizations. We invest to promote innovative healthcare collaborate with several nonprofits to donate technology to those
participation in school systems and the workforce requires access to approaches, including the use of emerging technologies, such in need. We partner with communities to lend our time for cleanup"
Dell-2022.txt,"way, Restricted or Transferred) rate 0.04 0.02 0.03
Total number of work-related fatalities 0 0 0 Cases for all employees.
Material Environmental Fines
We did not incur any material environmental fines resulting from product or facilities issues during FY22.
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 143
FY22 ESG REPORTCULTIVATING INCLUSION70
Metrics FY20 FY21 FY22 Notes
Team members who identify as women (as percentage of 31.1% 31.8% 33.9% Percentage of individuals in our global workforce who have self–identified as women."
Dell-2022.txt,"id not incur any material environmental fines resulting from product or facilities issues during FY22.
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 143
FY22 ESG REPORTCULTIVATING INCLUSION70
Metrics FY20 FY21 FY22 Notes
Team members who identify as women (as percentage of 31.1% 31.8% 33.9% Percentage of individuals in our global workforce who have self–identified as women.
global workforce)"
Dell-2022.txt,"Y CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 143
FY22 ESG REPORTCULTIVATING INCLUSION70
Metrics FY20 FY21 FY22 Notes
Team members who identify as women (as percentage of 31.1% 31.8% 33.9% Percentage of individuals in our global workforce who have self–identified as women.
global workforce)
Nontechnical female representation 35.8% 36.7% 39.0%
Technical female representation 20.1% 20.8% 22.8%
People leader female representation 24.4% 25.8% 28.2%
U.S. ethnicity overall: Hispanic or Latino 8.2% 8.9% 9.4% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-2022.txt,"tive 0.5% 0.5% 0.5%
U.S. ethnicity overall: Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2%
U.S. ethnicity overall: Two or more races 1.7% 1.7% 1.8%
U.S. ethnicity overall: White 68.9% 67.4% 65.1%
U.S. ethnicity overall: Not specified 0.7% 0.9% 1.4%
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 144
FY22 ESG REPORTCULTIVATING INCLUSION71
Metrics FY20 FY21 FY22 Notes
U.S. Hispanic or Latino representation in nontechnical roles 9.0% 9.8% 10.3% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-2022.txt,"Islander representation in 0.1% 0.1% 0.1%
technical roles
U.S. two or more races representation in technical roles 1.4% 1.4% 1.5%
U.S. White representation in technical roles 60.7% 59.2% 56.8%
U.S. not specified representation in technical roles 0.7% 1.0% 1.6%
DELL TECHNOLOGIES
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 145
FY22 ESG REPORTCULTIVATING INCLUSION
Metrics FY20 FY21 FY22 Notes
U.S. Hispanic or Latino representation in people leader roles 6.9% 7.9% 8.5% Percentage of individuals in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-2022.txt,"Y CHAIN BY THE NUMBERS APPENDIX 153
FY22 ESG REPORTGLOSSARY
Sustainable materials: Materials whose Underrepresented minority: In the context of
origination or processing has reduced impacts on this report, we are referring to two ethnic groups,
the environment. Black/African American and Latino/Hispanic, that
have historically been underrepresented in the
Sustainability: The ability to be maintained at
organization compared to the addressable U.S.
a certain rate or level or the avoidance of the
workforce in the technology industry."
Dell-2022.txt,"category 11 metrics due to the following: changing our calculation base
and use management; Worker protections for pregnant women and nursing mothers; Chemicals management; Ergonomic from ordered units to shipped units; including updated power models for select displays; and identifying and resolving
management; Environment health and safety permit management; Storm water management; and Energy efficiency and calculation errors leading to more accurate data.
greenhouse gas emissions reduction.
70 “Workforce” is defined as Dell Technologies badged employees, including regular, full–time, part–time, intern and fixed–"
Dell-2022.txt,"Jan. 31, 2021. term status. United States specific metrics are inclusive of Puerto Rico. “Nontechnical” describes job families such as in
Human Resources, Finance, Legal, etc. “Technical” describes job families such as Information Technology, Engineering,
50 Cumulative represents the calculated closure rates for findings as of Jan. 31, 2021.
Data Science, Cybersecurity, etc.
51 The COVID-19 pandemic limited our ability to engage directly with our suppliers on energy reduction projects in 2020.
71 “Workforce” is defined as Dell Technologies badged employees, including regular, full–time, part–time, intern and fixed–"
Dell-esg-2023.txt,"versity & Equal Opportunity Employment Policy
assessments (HRIAs) to ensure and advance our
Responsible Business Alliance (RBA) Code of Conduct
understanding of human rights risks and impacts.
These assessments inform Dell policies and support Child Labor, Forced Labor Supply Chain Dell Human Rights Policy Supply Chain Sustainability section of this report
our risk mitigation, governance practices and RBA Code of Conduct Dell Statement Against Slavery and Human Trafficking
strategic priorities.
Dell Vulnerable Worker Policy Dell Supplier Principles"
Dell-esg-2023.txt,"h-risk manufacturing
process risk assessment and mitigation. Our
online training programs, offered in various
languages, encourage proactive knowledge and
performance growth, and drive corrective action.
Mobile access makes our platform even more
accessible, allowing convenient interaction with
Providing resources for
our SER specialists. In FY23, 668 factories had
1,763 441
access to more than 326 training sessions.
capability building
unique participants attended our unique supplier factories
• Frontline worker training: We recognize that"
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 68CONTINUOUS IMPROVEMENT MODEL
Resolving health and safety issues through our TenSquared program
In FY23, we continued the TenSquared program These proactive actions include: Positive feedback from
by engaging a second round of key suppliers,
management and frontline
increasing the cumulative number of suppliers to • Conducting a worker survey to understand worker"
Dell-esg-2023.txt,"or the page. To exit the navigation, press the “H” key on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 79BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN
Helping ensure the safe use of chemicals
Our work with suppliers to improve health and safety • Supports companies in assessing the use of
in the workplace includes taking action on the use process chemicals, strengthening the culture of
of process chemicals. We are reducing exposure worker safety and engagement, reducing worker"
Dell-esg-2023.txt,"ng a
efforts to protect people in our supply chain from
banned chemical in a support area outside the
potentially harmful process chemicals. CEPN brings
primary production area. While each site followed
together stakeholders from across the industry to
the hierarchy of controls and provided appropriate
identify priority chemicals that could pose a high risk
personal protective equipment, we engaged their
of damaging impacts. Our ongoing involvement with
chemical management staff to assess safer
CEPN includes active participation in the Worker"
Dell-esg-2023.txt,"the people in
of severe (priority and/or major) findings, suppliers
our supply chain, individuals and organizations
may be required to complete a third-party closure
representing them, have a reliable, confidential
audit to resolve the issue.
communications channel to share concerns
or suggestions. Actions like these further our efforts to provide
open communication, enforcement and education
A third-party, nongovernmental organization with
on health, safety and legal issues, and protection of
expertise in worker feedback channels manages"
Dell-esg-2023.txt,"n 62 Supply chain
Appendix
141 How we report
Our Plan Cultivating Inclusion
142 Refined & retired ESG goals
10 Where we will make an impact 89 Representation 147 Glossary
12 Our ESG goals 93 Building community 151 Dell’s material ESG topics
13 How our goals have evolved 96 Inclusive workforce 153 Endnotes
14 ESG governance
17 ESG materiality
Transforming Lives
18 Reporting frameworks
101 Community engagement and partnerships
19 Our support for the U.N. SDGs
108 Innovating for impact
20 Advocacy
111 Employee-led impact"
Dell-esg-2023.txt,"ts research publications. Gartner research publications consist of the
Employers for excelling in topics such as image, embraced four macro trends: The CSCO as Chief and appreciation for our employees at the center
opinions of Gartner’s Research & Advisory organization and should not
be construed as statements of fact. Gartner disclaims all warranties, economic footprint, talent development, gender Ecosystems Officer, Self-Stabilizing Supply Chains, of our business model. This honor is based on
expressed or implied, with respect to this research, including any equality and social responsibility. Progress on Broader Sustainability Agenda and employee surveys and analysis."
Dell-esg-2023.txt,"our walls to
#10
partners and communities can do with of electricity used across all Dell Technologies build stronger customer relationships and
them, our technology is helping to create a facilities came from renewable sources. an external community aligned with our
ranking as 2022 World’s Best Employers by Forbes
better, more sustainable future. shared values.
and #68 ranking as 2022 America’s Best Employers for
39.2M Diversity by Forbes.
plastic bottles kept out of the ocean since 2019.1
52%
of team members participated in an Employee"
Dell-esg-2023.txt,"Methodology: Currently, this measurement covers the number of nonprofit organizations that have
and control over their personal data12
participated in a Pro Bono program. We are developing measurements to include nonprofits that are
Methodology: We provide annual updates on our progress toward making it easier and faster for customers
supported through other Dell efforts, including direct business unit giving and those organizations that
to exercise choice and control over their personal data.
benefit from organic, skill-based employee volunteering."
Dell-esg-2023.txt,"USTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 65CONTINUOUS IMPROVEMENT MODEL
Audit process FY23 improvements in supplier factory audit performance
Our suppliers are audited by RBA-certified third-
Overall 73%
party auditors who cover over 40 topics across five
areas: labor (including risks of forced labor, child
labor and noncompliance with weekly working of factories that went through at least their
second audit cycle improved their audit scores
hour requirements), employee health and safety,"
Dell-esg-2023.txt,"ur commitment to providing healthy work
environments for the people who build our products.
• Anodizing
• Magnesium-aluminium polishing
• Die-cast
• Smelting
• Cleaning
• Massive chemical handling
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 81BETTERING THE LIVES OF PEOPLE IN OUR SUPPLY CHAIN
Delivering health, safety and employee rights"
Dell-esg-2023.txt,"ng and giving us a sense of community culture where they can be their authentic selves and feel that their
That’s why we’re focused on increasing representation in our and belonging. These connections also help drive engagement and contributions matter. Diverse thoughts and experiences, combined with
workforce and leadership. Our team member-focused initiatives collaboration across teams and projects. At Dell, we’re fostering an accepting, collaborative workplace, lead to truly meaningful work.
help reach and retain the best talent, providing access to career and connection and engagement through our Employee Resource Groups Through our People Philosophy and Culture Code, we are creating an"
Dell-esg-2023.txt,"ive culture that
drives innovation
We believe that innovation thrives when people work in an inclusive
culture where they can be their authentic selves and feel that their
contributions matter. Diverse thoughts and experiences, combined with
an accepting, collaborative workplace, lead to truly meaningful work.
We routinely facilitate open and honest conversations between
leadership and our team members to better understand the lived
experience of our culture and determine areas for opportunity.
Our annual employee engagement survey, Tell Dell, helps hold us"
Dell-esg-2023.txt,"METRICS FY21 FY22 FY23 NOTES
U.S. Race/ Ethnicity Representation in People Leader Roles
Hispanic or Latino 7.9% 8.5% 8.7% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Black or African American 3.5% 3.7% 3.6%
Asian 12.8% 13.6% 14.3%
American Indian or Alaska Native 0.6% 0.6% 0.6%
Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
Two or more races 1.1% 1.0% 1.1%
White 72.9% 71.0% 69.3%
Not specified or did not report 1.1% 1.5% 2.2%
Global Employee Resource Groups (ERGs)"
Dell-esg-2023.txt,"direct reach accommodation (mental, physical, sensory, cognitive and neurodiverse disability), LGBTQIA+ persons, low socioeconomic groups.
only)
Total number of nonprofit partners 77 222 345 Currently, this measurement covers the number of nonprofit organizations that have participated in a Pro Bono program. We are developing
supported in their digital transformation measurements to include nonprofits that are supported through other Dell efforts, including direct business unit giving and those
journey (cumulative measurement beginning organizations that benefit from organic, skill-based employee volunteering. Dell Technologies has invested in the development of a Digital"
Dell-esg-2023.txt,"iiiiiooooooonnnnnnn eeeeeeemmmmmmmpppppppllllllloooooooyyyyyyymmmmmmmeeeeeeennnnnnnttttttt aaaaaaannnnnnnddddddd rrrrrrreeeeeeesssssssttttttt dddddddaaaaaaayyyyyyysssssss
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 134SUPPLY CHAIN KPIS AND AUDIT RESULTS Key
Results are based on audits of 348
Employee health and safety P Priority Findings factories. When an issue is identified,"
Dell-esg-2023.txt,"LDING TRUST BY THE NUMBERS APPENDIX 143REFINED AND RETIRED ESG GOALS
Cultivating Inclusion
ACTIVE GOALS GOAL REFINEMENT
Inclusive workforce
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women There has been no change to this goal.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African There has been no change to this goal.
American or Hispanic/Latino
RETIRED GOALS GOAL RETIREMENT
By 2030, 50% of our team members will participate in Employee Resource Groups to drive social impact We achieved this goal early and have retired it. Our progress is included in the By The Numbers section of this report."
Dell-esg-2023.txt,"iated with Human rights: Respecting human rights and
28, 2022; and Jan. 29, 2021; as “FY23,” “FY22” and and net income as disclosed within our annual
products and services once they are owned by a remedying human rights abuses throughout the
“FY21,” respectively. FY23 included 53 weeks; FY22 financial reports.
customer. value chain, including supply chain, operations and
and FY21 included 52 weeks.
customer use of products and services. Includes
Low-carbon emission material: Materials that were
Employee Net Promoter Score: Based on the"
Dell-esg-2023.txt,"Y23 included 53 weeks; FY22 financial reports.
customer. value chain, including supply chain, operations and
and FY21 included 52 weeks.
customer use of products and services. Includes
Low-carbon emission material: Materials that were
Employee Net Promoter Score: Based on the
addressing conflict minerals.
Global Reporting Initiative (GRI): An international produced using a lower emissions source of energy.
concept built around the Net Promoter Score
independent standards organization that helps
(NPS) to measure employee loyalty, it is a method Human Rights Impact Assessment (HRIA): A"
Dell-esg-2023.txt,"within 50 kilometers of a social responsibility in global supply chains.
waterway or coastal area. Pulse survey: A short, quick survey administered
Responsible sourcing of minerals: The act of
to employees on a regular basis (monthly,
Offset: A consideration or amount that diminishes or acquiring mineral materials where social, economic
quarterly, etc.), typically used to ascertain feedback
balances the effect of a contrary one. Typically used and environmental factors are considered and basic
regarding topics such as employee satisfaction,"
Dell-esg-2023.txt,"interest or concern in Team members: Team members refer to all Dell-
Water consumption: Sum of all water that has been
Science-based targets: Numerical performance something, especially a business. badged employees (including full time, part time and
withdrawn and incorporated into products; used
targets, typically related to water or greenhouse temporary).
STEM: An acronym for science, technology, in the production of crops or generated as waste;
gas emissions, that take into consideration the
engineering and mathematics. Most commonly Tell Dell: Annual employee opinion survey that has evaporated, transpired, or been consumed by"
Dell-esg-2023.txt,"oduction Advancing Sustainability By the Numbers
4 Message From Michael Dell 38 Climate action 122 By the Numbers
5 Our business 44 Circular economy 133 Supply chain KPIs and audit results
6 Key impact stories 48 Product sustainability
7 Awards and recognition 62 Supply chain
Appendix
141 How we report
Our Plan Cultivating Inclusion
142 Refined & retired ESG goals
10 Where we will make an impact 89 Representation 147 Glossary
12 Our ESG goals 93 Building community 151 Dell’s material ESG topics
13 How our goals have evolved 96 Inclusive workforce 153 Endnotes"
Dell-esg-2023.txt,"nvironmental Progress
our supply chain sustainability report is fully integrated in this Report in 1998, and I am proud of how Dell has grown, innovated
document under Advancing Sustainability. and evolved. I am also proud of what has remained the same, our
commitment to living our values and to driving positive impact for
You’ll also see that over the past year, we’ve been busy tackling big business, people and the planet.
issues, like climate change, accelerating the circular economy, digital
inclusion and strengthening our own inclusive workforce. These Michael Dell"
Dell-esg-2023.txt,"inclusive workforce. These Michael Dell
ongoing efforts include: Chairman and CEO
Dell Technologies
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 4OUR BUSINESS
AWARDS AND ACHIEVEMENTS
About the company Dell Technologies creates integrated solutions to help customers modernize their information
technology (IT) infrastructure, manage and operate in a multicloud world, address workforce"
Dell-esg-2023.txt,"tstanding innovation,
Dell-owned) repair centers leadership and excellence in the technology
services industry
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 5KEY IMPACT STORIES
ESG in action
Ensuring flexibility Upholding trust
Driving energy for an inclusive Advancing digital through our AI
efficiency workforce inclusion practices"
Dell-esg-2023.txt,"actions to ensure our impact is meaningful for all of our stakeholders — and
collaborating to make it happen.
We need to be agile, responsive and rigorous, and our plan to activate change by advancing
sustainability, cultivating inclusion, transforming lives and upholding trust will always reflect that.
In our FY23 Environmental, Social and Governance (ESG) Report, you will see how our commitments
drive climate action, accelerate the circular economy, support digitally inclusive communities and
champion our inclusive workforce. The report shares our progress and where we have more work to do."
Dell-esg-2023.txt,"ight programs, partnerships and technology, we will drive positive
outcomes for business, people and the planet.
Cassandra Garber
Vice President, Corporate Sustainability and ESG
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 9OUR PLAN
Advancing 155.5M Cultivating 34.8%
Sustainability Inclusion
kilograms (343.3M pounds) of sustainable of global workforce identify as women, and 29.2% of"
Dell-esg-2023.txt,"UR PLAN
Advancing 155.5M Cultivating 34.8%
Sustainability Inclusion
kilograms (343.3M pounds) of sustainable of global workforce identify as women, and 29.2% of
materials in our products and packaging in FY23. global people leaders identify as women.
At Dell Technologies, we put sustainability We strive to cultivate inclusion in everything
94.5% 16.1%
at the core of everything we do, setting we do for our people, customers and
strong commitments and taking the communities. We view diversity and
of packaging across our entire product portfolio of our U.S. workforce identify as Black/African American"
Dell-esg-2023.txt,"thing we do, setting we do for our people, customers and
strong commitments and taking the communities. We view diversity and
of packaging across our entire product portfolio of our U.S. workforce identify as Black/African American
right actions to address climate change, inclusion as a business imperative and are
made with recycled or renewable materials. or Hispanic/Latino. Additionally, 12.3% of people leaders
minimize negative environmental impact focused on attracting, building, developing
in the U.S. workforce identify as Black/African American"
Dell-esg-2023.txt,"strong commitments and taking the communities. We view diversity and
of packaging across our entire product portfolio of our U.S. workforce identify as Black/African American
right actions to address climate change, inclusion as a business imperative and are
made with recycled or renewable materials. or Hispanic/Latino. Additionally, 12.3% of people leaders
minimize negative environmental impact focused on attracting, building, developing
in the U.S. workforce identify as Black/African American
and drive positive outcomes for business and retaining a diverse workforce through or Hispanic/Latino."
Dell-esg-2023.txt,"H” key on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 11OUR PLAN
Our ESG goals A critical part of any plan is setting ambitious time-bound goals and, more importantly, sharing progress against those goals along the way.
In FY23, we updated our goals including key drivers to increase focus for greater impact.
Advancing Sustainability Cultivating Inclusion Transforming Lives Upholding Trust
CLIMATE ACTION INCLUSIVE WORKFORCE DIGITAL INCLUSION TRUST"
Dell-esg-2023.txt,"ANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 11OUR PLAN
Our ESG goals A critical part of any plan is setting ambitious time-bound goals and, more importantly, sharing progress against those goals along the way.
In FY23, we updated our goals including key drivers to increase focus for greater impact.
Advancing Sustainability Cultivating Inclusion Transforming Lives Upholding Trust
CLIMATE ACTION INCLUSIVE WORKFORCE DIGITAL INCLUSION TRUST
By 2050, we will achieve net zero greenhouse By 2030, 50% of our global workforce and 40% of our By 2030, we will improve 1 billion lives through By 2030, our customers and partners will"
Dell-esg-2023.txt,"USIVE WORKFORCE DIGITAL INCLUSION TRUST
By 2050, we will achieve net zero greenhouse By 2030, 50% of our global workforce and 40% of our By 2030, we will improve 1 billion lives through By 2030, our customers and partners will
gas (GHG) emissions across scopes 1, 2 and 3 global people leaders will be those who identify as digital inclusion rate Dell Technologies as their most trusted
women technology partner
Key By 2030, we will reduce scopes 1 and 2 Key Each year through 2030, 50% of the total
Drivers GHG emissions by 50% By 2030, 25% of our U.S. workforce and 15% of our Drivers people directly reached will be those Key By 2024, Dell will make available the first"
Dell-esg-2023.txt,"our participation in the Circular Historically Black Colleges and Universities Career
Electronics Partnership (CEP), collaborating on Program, of which Dell is a founding partner. This
several projects and an updated project road map. program aims to equip students with the necessary
The CEP continues to be our external engagement of skills to navigate the search process for positions in
choice for helping to drive a coordinated transition security, privacy and risk, helping build a pipeline of
toward a circular model for our industry. Black professionals in the cyber workforce."
Dell-esg-2023.txt,"m in the U.S.
bipartisan U.S. Infrastructure Investment and Jobs
• Provided recommendations to Cybersecurity
Act and similar policies that provide equal access
and Infrastructure Security Agency’s K-12 School
to technology and advanced connectivity, such as
Security Guide and School Security Assessment
5G. We recognize that access to connectivity is key
Tool, designed to provide K-12 districts and
to education, healthcare and a globally competitive
campuses in the U.S. with resources, tools and
and diverse workforce. We believe the private and"
Dell-esg-2023.txt,"tners. representatives to discuss issues, such as the
of Conduct training and adhere to our code and digital divide, that disproportionately impact
policies, including the Dell Human Rights Policy and underrepresented groups. Our public policy
Supply chain
standards that flow from it. Annual Code of Conduct advocacy efforts also focus on how technology
training also includes workplace health and safety can be leveraged to address economic injustices,
Dell is a founding member of the Responsible
requirement reminders. bias, health inequities and workforce readiness."
Dell-esg-2023.txt,"d an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 29GOALS DASHBOARD
Cultivating Inclusion Goals
GOAL UNIT OF MEASURE FY21 FY22 FY23 ABOUT OUR PERFORMANCE IN FY23
Inclusive Workforce"
Dell-esg-2023.txt,"party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 29GOALS DASHBOARD
Cultivating Inclusion Goals
GOAL UNIT OF MEASURE FY21 FY22 FY23 ABOUT OUR PERFORMANCE IN FY23
Inclusive Workforce
By 2030, 50% of our global workforce Percentage of global 31.8% 33.9% 34.8% In FY23, 34.8% of our global workforce identified as women. This represents an increase of approximately"
Dell-esg-2023.txt,"e navigation, press the “H” key on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 29GOALS DASHBOARD
Cultivating Inclusion Goals
GOAL UNIT OF MEASURE FY21 FY22 FY23 ABOUT OUR PERFORMANCE IN FY23
Inclusive Workforce
By 2030, 50% of our global workforce Percentage of global 31.8% 33.9% 34.8% In FY23, 34.8% of our global workforce identified as women. This represents an increase of approximately
and 40% of our global people leaders workforce who identify as 1% compared to the previous year. We attribute this progress toward our goal to continued focus on our"
Dell-esg-2023.txt,"people leaders workforce who identify as 1% compared to the previous year. We attribute this progress toward our goal to continued focus on our
will be those who identify as women women Cultivating Inclusion goals by Dell Technologies’ leadership and team members, as well as inclusive culture
practices in hiring, developing and retaining talent.
Percentage of people leaders 25.8% 28.2% 29.2% In FY23, 29.2% of our people leaders identified as women. This represents an increase of 1% compared to
in global workforce who the previous year. We attribute this progress to our continued focus on our Cultivating Inclusion goals by Dell"
Dell-esg-2023.txt,"lusive culture
practices in hiring, developing and retaining talent.
Percentage of people leaders 25.8% 28.2% 29.2% In FY23, 29.2% of our people leaders identified as women. This represents an increase of 1% compared to
in global workforce who the previous year. We attribute this progress to our continued focus on our Cultivating Inclusion goals by Dell
identify as women Technologies’ leadership and team members, as well as inclusive culture practices in hiring, developing and
retaining talent.
By 2030, 25% of our U.S. workforce Percentage of U.S. workforce 14.2% 15.4% 16.1% In FY23, 16.1% of our U.S. workforce identified as Black/African American or Hispanic/Latino.This represents"
Dell-esg-2023.txt,"r Hispanic/Latino focus on our Cultivating Inclusion goals by Dell Technologies’ leadership and team members, as well as
African American or Hispanic/Latino university relations strategy and alignment to historically Black colleges and universities, minority-serving
institutions, Hispanic-serving institutions, and expansion to community colleges.
Percentage of people leaders 11.4% 12.2% 12.3% In FY23, 12.3% of our U.S. people leaders identified as Black/African American or Hispanic/Latino. This
in the U.S. workforce who represents a small increase compared to the previous year. We attribute this progress to our continued focus"
Dell-esg-2023.txt,"GHG emissions. as a percentage of total weight of product sold (in metric tons). We will be incorporating these changes — the
expanded scope as well as shifting to measuring by weight — into our calculations beginning with FY24.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 33GOALS METHODOLOGY
By 2030, 100% of our packaging will be made from recycled or renewable material Metric: Percentage of people leaders in the U.S. workforce who identify as Black/African American or"
Dell-esg-2023.txt,"for the page. To exit the navigation, press the “H” key on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 33GOALS METHODOLOGY
By 2030, 100% of our packaging will be made from recycled or renewable material Metric: Percentage of people leaders in the U.S. workforce who identify as Black/African American or
Metric: Percentage of recycled/renewable material content in packaging Hispanic/Latino
Methodology: The scope includes packaging of all Dell Technologies-branded materials sent to customers. Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self-"
Dell-esg-2023.txt,"cked uniquely due to the
incorporating these changes into our calculation beginning with FY24 data. nature of the community outreach, and this practice is in line with common measurement and evaluation
practices across the industry.
Cultivating Inclusion Each year through 2030, 50% of the total people directly reached will be those who identify as girls and
women, or underrepresented groups
Metric: Percentage of people reached directly who identify as girls and women, or underrepresented groups
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as"
Dell-esg-2023.txt,"ch, and this practice is in line with common measurement and evaluation
practices across the industry.
Cultivating Inclusion Each year through 2030, 50% of the total people directly reached will be those who identify as girls and
women, or underrepresented groups
Metric: Percentage of people reached directly who identify as girls and women, or underrepresented groups
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as
women
(direct reach only)
Metric: Percentage of global workforce who identify as women Methodology: This metric captures the percentage of those who identify as girls, women or underrepresented"
Dell-esg-2023.txt,"ople directly reached will be those who identify as girls and
women, or underrepresented groups
Metric: Percentage of people reached directly who identify as girls and women, or underrepresented groups
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as
women
(direct reach only)
Metric: Percentage of global workforce who identify as women Methodology: This metric captures the percentage of those who identify as girls, women or underrepresented
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- groups out of the total number of individuals directly reached within the reporting year. “Girls” and “women”"
Dell-esg-2023.txt,"identify as girls, women or underrepresented
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- groups out of the total number of individuals directly reached within the reporting year. “Girls” and “women”
identified as women. are individuals who self-identify as female. The term ""underrepresented"" includes but is not limited to the
following groups: girls or women, racial/ethnic minorities, beneficiaries requiring an accommodation (mental,
Metric: Percentage of people leaders in global workforce who identify as women physical, sensory, cognitive and neurodiverse disability), LGBTQ+ persons, low socioeconomic groups. Going"
Dell-esg-2023.txt,"ndividuals directly reached within the reporting year. “Girls” and “women”
identified as women. are individuals who self-identify as female. The term ""underrepresented"" includes but is not limited to the
following groups: girls or women, racial/ethnic minorities, beneficiaries requiring an accommodation (mental,
Metric: Percentage of people leaders in global workforce who identify as women physical, sensory, cognitive and neurodiverse disability), LGBTQ+ persons, low socioeconomic groups. Going
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- forward, we will be expanding our unit of measure for this key driver to be based on cumulative reporting to"
Dell-esg-2023.txt,"cognitive and neurodiverse disability), LGBTQ+ persons, low socioeconomic groups. Going
Methodology: Applies to our global workforce. The scope includes the percentage of individuals who self- forward, we will be expanding our unit of measure for this key driver to be based on cumulative reporting to
identified as women who are people leaders. align with our 1 billion lives goal. We will be incorporating this change — shifting to cumulative reporting —
into our calculations beginning with FY24.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/"
Dell-esg-2023.txt,"includes the percentage of individuals who self- forward, we will be expanding our unit of measure for this key driver to be based on cumulative reporting to
identified as women who are people leaders. align with our 1 billion lives goal. We will be incorporating this change — shifting to cumulative reporting —
into our calculations beginning with FY24.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/
African American or Hispanic/Latino
Metric: Percentage of U.S. workforce who identify as Black/African American or Hispanic/Latino"
Dell-esg-2023.txt,"sure for this key driver to be based on cumulative reporting to
identified as women who are people leaders. align with our 1 billion lives goal. We will be incorporating this change — shifting to cumulative reporting —
into our calculations beginning with FY24.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/
African American or Hispanic/Latino
Metric: Percentage of U.S. workforce who identify as Black/African American or Hispanic/Latino
Methodology: Applies to our U.S. workforce. The scope includes the percentage of individuals who self-"
Dell-esg-2023.txt,"NUMBERS APPENDIX 86Cultivating Inclusion
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 87CULTIVATING INCLUSION
Building an inclusive culture through these focus areas
We’re increasing representation in our We’re building a sense of community and We’re creating an inclusive culture that drives
workforce and leadership belonging for all within our workplace innovation"
Dell-esg-2023.txt,"gation for the page. To exit the navigation, press the “H” key on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 87CULTIVATING INCLUSION
Building an inclusive culture through these focus areas
We’re increasing representation in our We’re building a sense of community and We’re creating an inclusive culture that drives
workforce and leadership belonging for all within our workplace innovation
Dell Technologies believes a diverse workforce that reflects the The connections we make at work can have a huge impact on our We believe that innovation thrives when people work in an inclusive"
Dell-esg-2023.txt,"e at work can have a huge impact on our We believe that innovation thrives when people work in an inclusive
customers and communities we serve is a business imperative. lives, enhancing our well-being and giving us a sense of community culture where they can be their authentic selves and feel that their
That’s why we’re focused on increasing representation in our and belonging. These connections also help drive engagement and contributions matter. Diverse thoughts and experiences, combined with
workforce and leadership. Our team member-focused initiatives collaboration across teams and projects. At Dell, we’re fostering an accepting, collaborative workplace, lead to truly meaningful work."
Dell-esg-2023.txt,"of a sense of balance and connectedness to those around them, and
career gaps and those who are neurodiverse. community and belonging for all. where diversity of thought and experiences is welcomed.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 88REPRESENTATION
We’re attracting and retaining a
diverse workforce that reflects"
Dell-esg-2023.txt,"mmunities
We believe diversity and inclusion is a business We continue to pilot and innovate our hiring
imperative, enabling different perspectives and programs and processes, removing barriers to
ideas to be brought forward to drive innovation. inclusion by continuously improving our accessibility
At Dell, we’re fostering an inclusive culture that practices, expanding our recruiting efforts and
attracts, builds, develops and retains a diverse and evaluating our internal processes. We also help
inclusive workforce unwavering in our commitment prepare students to be science, technology,"
Dell-esg-2023.txt,"ed and equity and inclusion fosters innovation and drives
underrepresented groups. We invest in our team human progress.
members through internal career advancement,
development and opportunity.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 89REPRESENTATION
We’re increasing By 2030, 50% of our
global workforce and"
Dell-esg-2023.txt,"ent those who identify as
came to my campus women
programs
with high-level people
Performance to date*
who looked like me.”
At Dell, we’re addressing gender disparities
FY21 31.8%
in the workplace with targeted recruiting and
hiring programs to grow and attract the best
KIERRA KING, ANALYST, FINANCIAL
FY22 33.9%
talent possible. This includes creating on-ramps ANALYSIS, DELL TECHNOLOGIES
and re-skilling programs, such as Career ReStart
and Reboot, for those interested in returning to FY23 34.8%
the workforce."
Dell-esg-2023.txt,"dentify as
came to my campus women
programs
with high-level people
Performance to date*
who looked like me.”
At Dell, we’re addressing gender disparities
FY21 31.8%
in the workplace with targeted recruiting and
hiring programs to grow and attract the best
KIERRA KING, ANALYST, FINANCIAL
FY22 33.9%
talent possible. This includes creating on-ramps ANALYSIS, DELL TECHNOLOGIES
and re-skilling programs, such as Career ReStart
and Reboot, for those interested in returning to FY23 34.8%
the workforce.
Percentage of global workforce"
Dell-esg-2023.txt,") and
selected for our finance summer internship program, and after completing the internship, she was selected
Develop with Dell.
to participate in our Finance Development program, a full-time position, where she will finish her final rotation
FY23 29.2%
in the summer of 2023. ""What stood out to me was that Dell came to my campus with high-level people who
looked like me. They held 1:1 and classroom sessions to help students understand the culture at Dell,"" says
Percentage of people leaders in
Kierra. Since starting at Dell, she has become an advocate for the CFT program, helping to recruit students global workforce who identify as"
Dell-esg-2023.txt,"identify as
from her alma mater and helping to build diversity and representation at Dell. women
*Please see our Goals Dashboard for more on the
progress, scope and measurement of this goal.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 90REPRESENTATION
We’re expanding our By 2030, 25% of our
“It's been an amazing U.S. workforce and"
Dell-esg-2023.txt,"egan as a pilot in the
nine hours a day. The
U.S. in FY19 and expanded into Canada in FY23.
FY21 14.2%
The program utilizes a specialized interview
biggest perk is Dell
process that gives candidates the opportunity
to showcase their talents while also supporting allowed me to create FY22 15.4%
leaders pre- and post-hire with training on
balance.”
neurodiversity and unconscious bias. Once FY23 16.1%
hired, team members participate in a supportive
onboarding process that includes mentors, routine
Percentage of U.S. workforce who"
Dell-esg-2023.txt,"/Latino
DELL TECHNOLOGIES
We’re also committed to helping veterans FY21 11.4%
transition into civilian life seamlessly through
programs like our Veteran Integration Success
FY22 12.2%
Program (VISP), Hiring our Heroes Corporate
Fellowship Program (HOH) and as an authorized
partner in the Department of Defense (DOD) Hiring Our Heroes FY23 12.3%
SkillBridge program.
Preston Smith spent 20 years in the U.S. Army. When he retired, he was apprehensive about making the Percentage of people leaders in
transition to civilian life and was unsure what a career in corporate America would be like. Then he learned the U.S. workforce who identify"
Dell-esg-2023.txt,"e Department of Defense (DOD) Hiring Our Heroes FY23 12.3%
SkillBridge program.
Preston Smith spent 20 years in the U.S. Army. When he retired, he was apprehensive about making the Percentage of people leaders in
transition to civilian life and was unsure what a career in corporate America would be like. Then he learned the U.S. workforce who identify
about Dell's Hiring Our Heroes program. The program provides veterans with professional development, as Black/African American or
Hispanic/Latino
training and hands-on experience in the civilian workforce at Dell, preparing candidates for a smooth"
Dell-esg-2023.txt,"Digital Equity
computers, strong internet access points and digital
Center to sponsor a new digital navigator and
literacy training opportunities.
two information technology (IT) trainee positions.
The role of the digital navigator is to assist these
community members with signing up for a digital
equity onboarding class to earn a free PC, internet
connectivity, answering basic tech questions and
providing additional resources as needed. The
digital navigator doubles as a mentor, training local
young adults to be the expanded workforce required"
Dell-esg-2023.txt,"nities by 2030. Pro Bono is a portfolio that workshop is Black Sisters in STEM, also known
of programs that connect our talented and diverse as Black SiS. Black SiS is on a mission to build the
employees with nonprofits around the world that largest talent pipeline of Black college women in 345
need help on their digital transformation journey. STEM, preparing them with cultural competency, a
To date, this program has helped 345 nonprofits, technical skill set and inclusive leadership skills to
delivering over 14,000 volunteer hours. meet the demands of the emergent workforce."
Dell-esg-2023.txt,"nes
We were not assessed any material environmental fines, nor did we have any material environmental remediation or other environmental costs, during Fiscal 2023.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 127CULTIVATING INCLUSION46
METRICS FY21 FY22 FY23 NOTES
Global Female Representation
Overall 31.8% 33.9% 34.8% Percentage of team members in our global workforce who have self–identified as female."
Dell-esg-2023.txt,"on your keyboard.
INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 127CULTIVATING INCLUSION46
METRICS FY21 FY22 FY23 NOTES
Global Female Representation
Overall 31.8% 33.9% 34.8% Percentage of team members in our global workforce who have self–identified as female.
People leader roles 25.8% 28.2% 29.2%
Technical roles 20.8% 22.8% 24.5%
Non-technical roles 36.7% 39.0% 39.8%
U.S. Race/ Ethnicity Representation
Hispanic or Latino 8.9% 9.4% 9.9% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-esg-2023.txt,"Pacific Islander 0.2% 0.2% 0.2%
Two or more races 1.7% 1.8% 1.9%
White 67.4% 65.1% 63.5%
Not specified or did not report 1.3% 2.0% 2.5%
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 128CULTIVATING INCLUSION
METRICS FY21 FY22 FY23 NOTES
U.S. Race/ Ethnicity Representation in Non-Technical Roles
Hispanic or Latino 9.8% 10.3% 10.7% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-esg-2023.txt,"resentation in Non-Technical Roles
Hispanic or Latino 9.8% 10.3% 10.7% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Black or African American 5.8% 6.5% 6.8%
Asian 9.1% 9.2% 9.2%
American Indian or Alaska Native 0.5% 0.5% 0.5%
Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2%
Two or more races 1.8% 1.9% 2.0%
White 71.4% 69.4% 68.0%
Not specified or did not report 1.4% 2.0% 2.5%
U.S. Race/ Ethnicity Representation in Technical Roles
Hispanic or Latino 7.1% 7.8% 8.3% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-esg-2023.txt,"Pacific Islander 0.1% 0.1% 0.1%
Two or more races 1.4% 1.5% 1.6%
White 59.2% 56.8% 55.0%
Not specified or did not report 1.3% 2.1% 2.5%
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 129CULTIVATING INCLUSION
METRICS FY21 FY22 FY23 NOTES
U.S. Race/ Ethnicity Representation in People Leader Roles
Hispanic or Latino 7.9% 8.5% 8.7% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
Dell-esg-2023.txt,"/ Ethnicity Representation in People Leader Roles
Hispanic or Latino 7.9% 8.5% 8.7% Percentage of team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Black or African American 3.5% 3.7% 3.6%
Asian 12.8% 13.6% 14.3%
American Indian or Alaska Native 0.6% 0.6% 0.6%
Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
Two or more races 1.1% 1.0% 1.1%
White 72.9% 71.0% 69.3%
Not specified or did not report 1.1% 1.5% 2.2%
Global Employee Resource Groups (ERGs)
Percentage of overall enrollment 44.0% 47.0% 52.0% Percentage of team members in our global workforce who have enrolled in one or more ERGs."
Dell-esg-2023.txt,"ere people do business. Our goal for delivering future-ready skills for workers in our supply chain has been shifted under the
can thrive Transforming Lives pillar.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 143REFINED AND RETIRED ESG GOALS
Cultivating Inclusion
ACTIVE GOALS GOAL REFINEMENT
Inclusive workforce"
Dell-esg-2023.txt,"ss. Our goal for delivering future-ready skills for workers in our supply chain has been shifted under the
can thrive Transforming Lives pillar.
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 143REFINED AND RETIRED ESG GOALS
Cultivating Inclusion
ACTIVE GOALS GOAL REFINEMENT
Inclusive workforce
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women There has been no change to this goal."
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INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES UPHOLDING TRUST BY THE NUMBERS APPENDIX 143REFINED AND RETIRED ESG GOALS
Cultivating Inclusion
ACTIVE GOALS GOAL REFINEMENT
Inclusive workforce
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women There has been no change to this goal.
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African There has been no change to this goal."
Dell-esg-2023.txt,"ce of the depletion
Black/African American and Hispanic/Latino, that Water stress: A situation in which the water
emissions that are the result of activities and assets
of natural resources to maintain an ecological
have historically been underrepresented in the resources in a region or those available to a
in the value chain that are not directly owned or
balance.
organization compared to the addressable U.S. company are insufficient for its needs. For
controlled by the reporting organization.
workforce in the technology industry. determining water stress, we use the WRI Aqueduct"
delltechnologies-fy24-esg-report.txt,"goals and key drivers 102
Public policy 79 methodology
ESG materiality 11 Workplace 48
CIRCULAR ECONOMY 28 Reporting frameworks index 106
Stakeholder engagement 13 Workforce 51
Product lifecycle 30 Glossary 111
Reporting frameworks 14 Accountability 53
Circular design 31 Endnotes 115
Marketplace 54
Product materials 33
Sustainable packaging 35
HUMAN RIGHTS 55
Recovery and recycling 37
Salient risks 56
Supply chain responsibility 58
Continuous improvement model 59
Responsible labor practices 62
Health, safety and worker rights 63"
delltechnologies-fy24-esg-report.txt,"to business promote the safety, health and well-being of people when
we have the greatest opportunities for growth, leadership access to information and communication technology
practices in each location we operate in. Read about they are at work. Read about occupational health and
and risk mitigation. (ICT) globally, which is a prerequisite for leveraging
environmental and social regulatory compliance in the safety in the report: Workplace, Health, Safety and
digital information and services.
report: Human Rights, Supply Chain Responsibility, Trust, Worker Rights"
delltechnologies-fy24-esg-report.txt,"Safety
Product Quality & Safety
Product Stewardship
Supply Chain Resilience
Environmental & Social
Regulatory Compliance
Substances of Concern
Water & Effluents
Degree of Opportunity or Impact
hgiH
etaredoM
Substances of concern: Reducing and eliminating the Double materiality
potential health and environmental impacts of substances
assessment
used in products across their life cycles. Read about
substances of concern in the report: Health, Safety and
In FY24, we began work on our first double
Worker Rights, Zero Waste"
delltechnologies-fy24-esg-report.txt,"S SECTION rights due diligence and governance protocols throughout
Learn more about the engagement and roles of our Board
our business. These are addressed in the Dell Human
of Directors, ESG Steering Committee and ESG Interlock
Salient risks 56 Rights Policy.
Team in the Corporate Governance section of this report.
The Ethics section of this report provides information on
Supply chain responsibility 58
our Code of Conduct training.
Continuous improvement model 59
Responsible labor practices 62
Health, safety and worker rights 63"
delltechnologies-fy24-esg-report.txt,"d Equal Opportunity Employment Policy
In addition to ongoing human rights due diligence and
Community Responsible Business Alliance (RBA) Code of Conduct
assurance practices embedded in organizations across
our business, we also periodically engage third-party
Child Labor, Forced Labor Supply Chain Dell Human Rights Policy Supply Chain Responsibility section of this report
experts to conduct human rights impact assessments RBA Code of Conduct Dell Statement Against Slavery and Human Trafficking
(HRIAs) to ensure and advance our understanding of Dell Vulnerable Worker Policy Dell Supplier Principles"
delltechnologies-fy24-esg-report.txt,"ress
development commitment and investment of suppliers
platform even more accessible, allowing convenient
risks of modern slavery in our supply chain, including:
towards the advancement of their workforces in the
interaction with our SER specialists. In FY24, 718 factories
Mekong region. This initiative positively impacts workers,
• Proactively addressing issues with new and potential had access to more than 427 training sessions, including
local communities and the environment while improving
suppliers, prior to formal audits. mobile frontline worker training."
delltechnologies-fy24-esg-report.txt,"systems.
this report.
$3,370,568
in fees were returned to workers
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 62
Salient risks Supply chain responsibilityHealth, safety and Open communication Mobile health and safety
learning
The people in our supply chain are uniquely
worker rights FY24 mobile phone training"
delltechnologies-fy24-esg-report.txt,"navigation for the page. To exit the navigation, press the “H” key on your keyboard.
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 62
Salient risks Supply chain responsibilityHealth, safety and Open communication Mobile health and safety
learning
The people in our supply chain are uniquely
worker rights FY24 mobile phone training
positioned to provide insight into day-to-day factory
Digital learning through mobile phones enables worker"
delltechnologies-fy24-esg-report.txt,"representing them, have a
frontline workers, including direct, temporary, students and
reliable, confidential communications channel to share training hours completed
mobile learning opportunities, Dell works migrants, are eligible and encouraged to participate.
concerns or suggestions. through mobile phone
with our suppliers to ensure all workers
Ongoing training topics include: training courses
A third-party, nongovernmental organization with expertise
in our supply chain understand both our
in worker feedback channels manages the helpline on • Labor rights topics, including policies banning"
delltechnologies-fy24-esg-report.txt,"taking action on the use of our suppliers. The TenSquared approach is one that achievements. These surveys also allowed
of process chemicals. We are reducing exposure to engages a peer-elected team of supplier employees and opportunities to provide feedback on
potentially harmful process chemicals through our managers who work together to identify root causes of further improvements.
Chemical Use Policy. We have also developed Guidelines workplace challenges and then identify innovative ways to
• Regularly engaging worker representatives and"
delltechnologies-fy24-esg-report.txt,"nics reducing fire risks in warehouse areas and reducing
Production Network (CEPN) to advance IT industry efforts occurrences of accidents resulting in work injuries.
to protect supply chain workers from potentially harmful
Each supplier formed a dedicated work team, including
process chemicals. CEPN is comprised of over 20 member
members from management and frontline workers, to
organizations including electronics brands and suppliers,
proactively resolve these issues and achieve a preset goal
environmental NGOs, labor and worker representatives,"
delltechnologies-fy24-esg-report.txt,"ntially harmful
Each supplier formed a dedicated work team, including
process chemicals. CEPN is comprised of over 20 member
members from management and frontline workers, to
organizations including electronics brands and suppliers,
proactively resolve these issues and achieve a preset goal
environmental NGOs, labor and worker representatives,
within 100 days.
ecolabels and representatives from academia and
government agencies. Our ongoing involvement with CEPN
These proactive actions included:
includes active participation in the Worker Engagement"
delltechnologies-fy24-esg-report.txt,"eam, including
process chemicals. CEPN is comprised of over 20 member
members from management and frontline workers, to
organizations including electronics brands and suppliers,
proactively resolve these issues and achieve a preset goal
environmental NGOs, labor and worker representatives,
within 100 days.
ecolabels and representatives from academia and
government agencies. Our ongoing involvement with CEPN
These proactive actions included:
includes active participation in the Worker Engagement
and Process Chemical Reporting workgroups, and Dell is a • Conducting a worker survey to understand worker"
delltechnologies-fy24-esg-report.txt,"idents and historical data collection,
to the Toward Zero Exposure program. among others.
The Toward Zero Exposure program: • Team brainstorming to identify risks, risk classification
and assessment.
• Creates a road map for process chemical management
informed by suppliers, nongovernmental organizations • Communicating with diverse stakeholders to
and subject matter experts. encourage engagement and collect effective
improvement suggestions.
• Supports companies in assessing the use of process
chemicals, strengthening the culture of worker safety • Ensuring support for improvements, including financial"
delltechnologies-fy24-esg-report.txt,"ure program: • Team brainstorming to identify risks, risk classification
and assessment.
• Creates a road map for process chemical management
informed by suppliers, nongovernmental organizations • Communicating with diverse stakeholders to
and subject matter experts. encourage engagement and collect effective
improvement suggestions.
• Supports companies in assessing the use of process
chemicals, strengthening the culture of worker safety • Ensuring support for improvements, including financial
and engagement, reducing worker exposure to and technical support and production flexibility."
delltechnologies-fy24-esg-report.txt,"nd services within the reporting
period: 0
Public policy Corporate governance - Public policy GRI Public policy 415-1
Remuneration policies and total compensation 2024 Proxy statement - Compensation Discussion and Analysis, pg 35; Compensation GRI General disclosures 2-19, 2-20, 2-21
of Executive Officers, pg 49
Stakeholder engagement Stakeholder engagement GRI General disclosures 2-29
Statement on sustainable development strategy A message from our Chairman and CEO GRI General disclosures 2-22
Supply chain responsibility Supply chain responsibility - Health, safety and worker rights GRI General disclosures 2-25"
delltechnologies-fy24-esg-report.txt,"ip’s auditing framework is an
essential element of our robust environmental
in advisory sessions to enhance our initiatives
and advance industry standards through thought Team members and human rights due diligence program. Read
more in the Human Rights section of this report.
leadership. Examples of analyst firms include
We use several feedback mechanisms to gather
Enterprise Strategy Group, Gartner and IDC.
team member feedback on our ESG initiatives.
For example, we gather feedback and build
community through our Employee Resource"
delltechnologies-fy24-esg-report.txt,"its, delivering over
FY22 50%
24,800 volunteer hours.
FY23 52% 75%
To receive digital transformation support, nonprofits can
be nominated by our employees or partners, or they can
FY24 48%
come to us directly. The Pro Bono program engages with
Percentage of team members participating in giving
nonprofits in a few ways: Pro Bono consulting workshops, or volunteering
Pro Bono projects and Board Service Matching, which
*Our progress on this goal decreased from 52% in FY23. We attribute this year’s
matches Dell leaders with nonprofit board members to decline in employee giving and volunteering to organizational change."
delltechnologies-fy24-esg-report.txt,"and policies that
American or Hispanic/Latino
support diversity.
Marketplace
FY24 16.1% 25%
We are leading by example in our industry and with our Percentage of U.S. workforce who identify as Black/African
IN THIS SECTION American or Hispanic/Latino
customers to become an employer of choice for future
team members.
Workplace 48
FY24 12.6% 15%
Workforce 51 Percentage of people leaders in the U.S. workforce who
identify as Black/African American or Hispanic/Latino
Accountability 53
Marketplace 54
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 47Workplace Employee Resource Groups"
delltechnologies-fy24-esg-report.txt,"Family Balance
achieved and for the success ahead of us.
and volunteerism. ERGs partner within Dell to showcase
observances that are important to each group, including
Our culture sets us apart and helps us create an inclusive
Asian American and Pacific Islander Heritage Month,
environment for all our team members. We honor our
Black History Month, Earth Day, Hispanic Heritage Month,
commitment to creating an inclusive workforce by:
International Day of Persons with a Disability, International
• Creating meaningful connections through our Employee Women’s Day, Pride Month and Veterans Day."
delltechnologies-fy24-esg-report.txt,"tional learning program Dell’s Assistive Technology Center of Excellence (CoE)
• Equal Employment Opportunity policy.
focused on topics related to inclusion. This training aims to provide every team member with the assistive
helps cultivate an inclusive environment where all team • Information around ERGs, networking and mentorship. technology they need to reach their full potential. The
members can be their authentic selves and thrive in vision of the center was brought to life in FY22 through
their careers. To date, 99% of our team members have a partnership with Dell’s True Ability Employee Resource"
delltechnologies-fy24-esg-report.txt,"can confidentially request assistive
this report.
to encourage collaborative conversations across all teams, technology without manager approval, funding or medical
levels and business areas throughout the year. In FY24, verification. The Assistive Technology CoE offers a catalog
we launched the next evolution of Be the Change modules of hardware and software including braille keyboards,
focused on allyship for team members and leaders. auditory individualization software, speech-to-text tools
Employee giving and"
delltechnologies-fy24-esg-report.txt,"hours were spent on community projects such as
park cleanup and skill-based work through the Pro Bono
program. Read more about Pro Bono and our Giving
and Volunteering goal in the Digital Inclusion section of
this report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 49
Workplace Workforce Accountability MarketplaceCompensation and benefits Employee health and safety"
delltechnologies-fy24-esg-report.txt,"esources to support employees’ career
FY23 16.1% 25%
growth and development through a centralized program. FY24 35.0%
Through this program, we offer formal training options, Percentage of our global workforce who identify FY24 16.1%
as women
individualized development programs, tools for 360-degree
Percentage of U.S workforce who identify as
feedback, mentoring, networking, stretch assignments Black/African American or Hispanic/Latino
and growth opportunities. Our internal Career Hub
FY22 28.2%
supports employee growth by providing personalized"
delltechnologies-fy24-esg-report.txt,"es and areas in which we role in activating achievement, balance, connection and
listening sessions, which our leaders host with select
and robust governance and oversight are already performing well. diversity and inclusion for their team.
groups. Additionally, we distribute automated surveys
for our Culture, Diversity and Inclusion
Each year, we ask our team members to complete our throughout the lifecycle of a team member’s tenure at Dell, Our CD&I investments extend beyond our workforce and
(CD&I) work, we are committed to holding annual employee engagement survey, Tell Dell, which including during the candidate experience, onboarding, include community involvement, partnerships, councils,"
delltechnologies-fy24-esg-report.txt,"a team member’s tenure at Dell, Our CD&I investments extend beyond our workforce and
(CD&I) work, we are committed to holding annual employee engagement survey, Tell Dell, which including during the candidate experience, onboarding, include community involvement, partnerships, councils,
ourselves accountable for upholding Dell’s helps us assess the application of our Culture Code and entry into leadership roles and voluntary exit from Dell. coalition sponsorships, memberships and public policy
People Philosophy and helps us capture our Employee This lifecycle process helps us understand employee actions. We recognize we must represent and advocate for"
delltechnologies-fy24-esg-report.txt,"uppliers who attained our target audit scores. In FY24,
auditors whose audits cover over 40 topics across five
our SER specialists worked closely with suppliers to help
• Commodity: Considers specific risks associated with areas: labor (including risks of forced labor, child labor and
identify the root causes of issues and drive improvement.
manufacturing, such as labor intensity, manufacturing noncompliance with weekly working hour requirements),
Additionally, we engaged across our procurement
processes and paints or chemicals involved in the employee health and safety, environment, ethics and"
delltechnologies-fy24-esg-report.txt,"ety risks. This is an important area of focus with the supplier to address this violation by improving
efforts and actively collaborates with
with workers as part of regular audits. We also take for us, and we are committed to working with our suppliers management practices, establishing a sustainable
stakeholders to address the risk of immediate action to investigate any allegations related to improve overall compliance with the industry standard. production rhythm and exploring automation and
to recruitment fees received through our helpline, media employee retention strategies. As a result, this"
delltechnologies-fy24-esg-report.txt,"tical Action Committee (PAC) supported solely
• Promoting development, procurement and use of
by voluntary contributions from eligible employees and Work with trade associations and
sustainable goods, considering whole product lifecycle
spouses of eligible employees who choose to allocate
and circular economy principles. industry groups
contributions to U.S. federal candidates and committees.
• Identifying and solving for community-level needs
Each year, Dell conducts a thorough analysis of our
Dell PAC spending reflects company and employee"
delltechnologies-fy24-esg-report.txt,"23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
Non-technical roles Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Asian 9.2% 9.2% 9.7%
American Indian or Alaskan Native 0.5% 0.5% 0.5%
Black or African American 6.5% 6.8% 6.6%
Hispanic or Latino 10.3% 10.7% 11.0%
%
Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2%
Two or more races 1.9% 2.0% 2.0%
White 69.4% 68.0% 67.3%
Not specified or did not report 2.0% 2.5% 2.7%
Global employee resource groups (ERGs)"
delltechnologies-fy24-esg-report.txt,"ologies FY24 ESG Report 91
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
Giving and volunteerism
Percentage of team members participating in 50% 52% 48% In FY24, 48% of our team members participated in giving or volunteerism in their communities, contributing to our mission of fostering
giving/volunteerism digital inclusion and supporting local communities through active engagement and service. Our progress on this goal decreased from 52%
in FY23. We attribute this year’s decline in employee giving and volunteering to organizational change."
delltechnologies-fy24-esg-report.txt,"ation journey 190 in FY24 alone. Through our Pro Bono program we offered consulting, skills training and technology solutions to help nonprofits
leverage digital tools and better serve their communities.
Number of Currently, this measurement covers the number of nonprofit organizations that have participated in a Pro Bono program. We are developing
nonprofit measurements to include nonprofits that are supported through other Dell efforts, including direct business unit giving and those
partners
organizations that benefit from organic, skill-based employee volunteering."
delltechnologies-fy24-esg-report.txt,"r communities participating in giving/ platform.
volunteerism
Key Driver: By 2030, we will use our expertise and Total number of nonprofit Currently, this measurement covers the number of nonprofit organizations that have participated in a Pro Bono program. We are developing
technology to support the digital transformation of partners supported in their measurements to include nonprofits that are supported through other Dell efforts, including direct business unit giving and those organizations
1,000 nonprofit partners digital transformation journey that benefit from organic, skill-based employee volunteering."
delltechnologies-fy24-esg-report.txt,"indices*
Social
Benefits provided to full-time employees Inclusive workforce - Workplace GRI Employment 401-2
Board diversity Corporate governance - Board and ESG governance GRI Diversity and equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2"
delltechnologies-fy24-esg-report.txt,"ce - Workplace GRI Employment 401-2
Board diversity Corporate governance - Board and ESG governance GRI Diversity and equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2
Employee engagement as a percentage: 87%**"
delltechnologies-fy24-esg-report.txt,"iversity Corporate governance - Board and ESG governance GRI Diversity and equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2
Employee engagement as a percentage: 87%**
Employee wellness Global benefits GRI Occupational health and safety 403-6"
delltechnologies-fy24-esg-report.txt,"equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2
Employee engagement as a percentage: 87%**
Employee wellness Global benefits GRI Occupational health and safety 403-6
Employee training and education Inclusive workforce - Workforce GRI Training and education 404-2"
delltechnologies-fy24-esg-report.txt,"licy
Pay equity Inclusive workforce - Accountability GRI Diversity and equal opportunity 405-2
Supply chain - Social Supply chain responsibility GRI Supplier social assessment 414-1, 414-2
Supply chain audit results
Work-related injury and illness By the numbers - Health and safety metrics for Dell Technologies operations GRI Occupational health and safety 403-9, 403-10
*All GRI general disclosures are aligned with the 2021 standards. Topic standards reflect the most recently available version.
**Our annual employee engagement survey is collected annually in Q2. The percentage shown describes the results of the survey collected during FY24, in May 2023. Average score across all favorability questions in Tell Dell engagement survey. Favorability percentages represent the % who selected agree or strongly agree on a 5-point scale (strongly disagree | disagree | neutral | agree | strongly agree)."
delltechnologies-fy24-esg-report.txt,"ems that learn and adapt without following
penalty and for which the person has not offered
Downstream: Refers to emissions associated with of higher education with at least 25% total full-time explicit instructions by using algorithms and statistical
themselves voluntarily.
products and services once they are owned by a customer. enrollment of Hispanic undergraduate students. models to analyze and draw inferences from patterns
Future-ready skills: Skills that are suitable and possibly in data.
Employee Net Promoter Score: Based on the concept Historically Black colleges and universities (HBCUs): U.S."
delltechnologies-fy24-esg-report.txt,"e owned by a customer. enrollment of Hispanic undergraduate students. models to analyze and draw inferences from patterns
Future-ready skills: Skills that are suitable and possibly in data.
Employee Net Promoter Score: Based on the concept Historically Black colleges and universities (HBCUs): U.S.
required for new and emerging careers.
built around the Net Promoter Score (NPS) to measure institutions of higher education established before 1964 Materiality: Indicates that a topic has been deemed
employee loyalty, it is a method of measuring how willing Fiscal Year (FY24): Our fiscal year is the 52- or 53-week for the primary purpose of educating African Americans. material in the context of Dell’s ESG report and for"
delltechnologies-fy24-esg-report.txt,"are to recommend their workplace to their period ending on the Friday nearest January 31. We refer purposes of determining our ESG strategy. Materiality
Human rights: Fundamental rights of all people to
family or friends. to our fiscal years that ended February 2, 2024; Jan. 28, references should not be construed as a characterization
live and be treated with dignity and respect. They are
2023; and Jan. 29, 2022; as “FY24,” “FY23” and “FY22,” regarding the materiality of such information to our
Employee Resource Groups (ERGs): Voluntary employee inherent and every human being is entitled to these rights"
delltechnologies-fy24-esg-report.txt,"o corporate social Single-use plastics: Plastic items designed to be used
Pulse survey: A short, quick survey administered to
company’s value chain.
responsibility in global supply chains. once before being disposed of.
employees on a regular basis (monthly, quarterly, etc.),
Pay equity: Compensation based on legitimate business typically used to ascertain feedback regarding topics
Responsible sourcing of minerals: The act of acquiring Social impact: The net effect of a company or activity on a
considerations — not on gender, race, ethnicity or any other such as employee satisfaction, job role, communication,"
delltechnologies-fy24-esg-report.txt,"HE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 113
About this report Methodology Reporting frameworks index Glossary EndnotesStakeholders: Parties with an interest or concern in Team members: Team members refer to all Dell-badged other users; and is therefore not released back to surface
something, especially a business. employees (including full time, part time and temporary). water, groundwater, seawater or a third party over the
course of the reporting period (source: Global Reporting
STEM: An acronym for science, technology, engineering Tell Dell: Annual employee opinion survey that gathers"
delltechnologies-fy24-esg-report.txt,"gagement 41 Security 68 Performance metrics 81
Chairman and CEO
Greenhouse gas inventory 18 Global partnerships 43 Privacy 71 Supply chain audit results 96
A message from our VP, 5
Product carbon footprint 21 Technology innovation 45 Ethics 72
Corporate Sustainability and ESG
Innovation 23 Future-ready skills 46 Corporate governance 75
Our business 6 APPENDIX 99
Supply chain environmental 24 Board and ESG governance 75
Awards and recognition 7 About this report 100
management
Risk assessment 77
Goals dashboard 8 INCLUSIVE WORKFORCE 47 ESG goals and key drivers 102"
delltechnologies-fy24-esg-report.txt,"oduct carbon footprint 21 Technology innovation 45 Ethics 72
Corporate Sustainability and ESG
Innovation 23 Future-ready skills 46 Corporate governance 75
Our business 6 APPENDIX 99
Supply chain environmental 24 Board and ESG governance 75
Awards and recognition 7 About this report 100
management
Risk assessment 77
Goals dashboard 8 INCLUSIVE WORKFORCE 47 ESG goals and key drivers 102
Public policy 79 methodology
ESG materiality 11 Workplace 48
CIRCULAR ECONOMY 28 Reporting frameworks index 106
Stakeholder engagement 13 Workforce 51"
delltechnologies-fy24-esg-report.txt,"h you.
ensure AI lives up to its potential
its application is as beneficial to people and our planet as
possible. The evolving regulatory environment is on the Michael Dell by encouraging responsible use
minds of our customers, partners, suppliers and investors. Chairman and CEO
Dell Technologies and ensuring its application is
as beneficial to people and our
planet as possible.
”
""
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 4"
delltechnologies-fy24-esg-report.txt,"e we’re excited to
• Over 396 million people benefiting from our digital
embark on together.
inclusion programs, partnerships and innovation since
Our FY24 ESG Report is one way we’re holding ourselves
FY20. These efforts provide access to technology,
accountable against our ambitious goals for 2030 and
Cassandra Garber
connectivity, digital skills and support for under-
beyond, and we continue to invest in initiatives that apply
Vice President, Corporate
resourced communities around the world.
our technology, scale and talented workforce to address"
delltechnologies-fy24-esg-report.txt,"divide.
four major themes: environment, labor and human
rights, ethics and sustainable procurement.
• Launched more products featuring recycled, renewable
and reduced carbon emissions materials. In FY24, we
used over 43 million kg (95 million lbs) of sustainable
materials in our products and were the first in the
industry to ship certified 50% recycled content steel in
our displays.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 5"
delltechnologies-fy24-esg-report.txt,"ONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 5
Messages from our leadership Our business Awards Goals dashboard ESG materiality Stakeholder engagement Reporting frameworks99% 170+
Our business
of Fortune 500 served approximate number of
as of FY24 countries Dell operates
in globally
Dell Technologies’ integrated solutions help customers modernize their
IT infrastructure, manage and operate in a multicloud world, address
workforce transformation, and provide critical solutions that keep people"
delltechnologies-fy24-esg-report.txt,"protection software, software-defined storage patents issued to Dell approximate Dell Technologies
controller software, and storage infrastructure and device management software;
Technologies in 2023 team members as of FY24
PBBA – IDC WW Purpose-Built Backup Appliance (PBBA) (Revenue) CY23Q4;
Hyperconverged Systems (HCI) (Revenue) – IDC WW Quarterly Converged
Systems Tracker CY23Q4.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 6"
delltechnologies-fy24-esg-report.txt,"l society.
fitness for a particular purpose. Gartner, Gartner Power of the Profession™ Supply Chain Awards,
around the globe.*
2024, https://www.gartner.com/en/supply-chain/research/power-of-the-profession. GARTNER
is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and
internationally and is used herein with permission. All rights reserved.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 7"
delltechnologies-fy24-esg-report.txt,"arest January 31. Our ESG activities, including goal progress, are primarily collected and
reported by fiscal year, unless otherwise noted. The expected end date of each goal is the end of
the associated fiscal year (e.g., ""By 2030"" refers to the end of Dell's Fiscal Year 2031).
**Due to the one-year lag in supplier emissions data, progress against the current year is
not available.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 8"
delltechnologies-fy24-esg-report.txt,"pply chain supplier sites and in-house manufacturing locations.
By 2030, 75% of our team members will participate in giving or volunteerism in FY24 48% 75%
17
their communities
Percentage of team members participating in giving or volunteering
Key Driver: By 2030, we will use our expertise and technology to support the digital FY24 535 1,000
transformation of 1,000 nonprofit partners 9, 17
Total number of nonprofit partners supported in their
digital transformation journey
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our global people leaders will be those FY24 35.0% 50%"
delltechnologies-fy24-esg-report.txt,"in giving or volunteerism in FY24 48% 75%
17
their communities
Percentage of team members participating in giving or volunteering
Key Driver: By 2030, we will use our expertise and technology to support the digital FY24 535 1,000
transformation of 1,000 nonprofit partners 9, 17
Total number of nonprofit partners supported in their
digital transformation journey
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our global people leaders will be those FY24 35.0% 50%
workforce who identify as women"
delltechnologies-fy24-esg-report.txt,"24 48% 75%
17
their communities
Percentage of team members participating in giving or volunteering
Key Driver: By 2030, we will use our expertise and technology to support the digital FY24 535 1,000
transformation of 1,000 nonprofit partners 9, 17
Total number of nonprofit partners supported in their
digital transformation journey
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our global people leaders will be those FY24 35.0% 50%
workforce who identify as women
Percentage of our global workforce who identify as women"
delltechnologies-fy24-esg-report.txt,"expertise and technology to support the digital FY24 535 1,000
transformation of 1,000 nonprofit partners 9, 17
Total number of nonprofit partners supported in their
digital transformation journey
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our global people leaders will be those FY24 35.0% 50%
workforce who identify as women
Percentage of our global workforce who identify as women
5
FY24 29.1% 40%
Percentage of our global people leaders who identify
as women
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who"
delltechnologies-fy24-esg-report.txt,"in their
digital transformation journey
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our global people leaders will be those FY24 35.0% 50%
workforce who identify as women
Percentage of our global workforce who identify as women
5
FY24 29.1% 40%
Percentage of our global people leaders who identify
as women
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who
FY24 16.1% 25%
identify as Black/African American or Hispanic/Latino
Percentage of U.S. workforce who identify as Black/African"
delltechnologies-fy24-esg-report.txt,"bal people leaders who identify
as women
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who
FY24 16.1% 25%
identify as Black/African American or Hispanic/Latino
Percentage of U.S. workforce who identify as Black/African
American or Hispanic/Latino
10
*The year presented within each goal statement refers to the calendar year that coincides with FY24 12.6% 15%
the majority of Dell's fiscal year. Our fiscal year is the 52- or 53-week period ending on the Friday
Percentage of people leaders in the U.S. workforce who"
delltechnologies-fy24-esg-report.txt,"ntage of people leaders in the U.S. workforce who
nearest January 31. Our ESG activities, including goal progress, are primarily collected and
identify as Black/African American or Hispanic/Latino
reported by fiscal year, unless otherwise noted. The expected end date of each goal is the end of
the associated fiscal year (e.g., ""By 2030"" refers to the end of Dell's Fiscal Year 2031).
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 9"
delltechnologies-fy24-esg-report.txt,"h
the majority of Dell's fiscal year. Our fiscal year is the 52- or 53-week period ending on the Friday
nearest January 31. Our ESG activities, including goal progress, are primarily collected and
reported by fiscal year, unless otherwise noted. The expected end date of each goal is the end of
the associated fiscal year (e.g., ""By 2030"" refers to the end of Dell's Fiscal Year 2031).
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 10"
delltechnologies-fy24-esg-report.txt,"re empowered to voice concerns without fear conduct business, while ensuring everyone has access Includes information on technology for societal and
of retaliation and with confidence that those concerns to the same opportunities within our organization. Read environmental benefit. Read about innovation in the report:
will be taken seriously. Ensuring that marketing and about diversity and inclusion in the report: Inclusive Digital Inclusion, Climate Action
We have conducted an ESG materiality2
communication of products and services are honest, Workforce, Supplier Diversity"
delltechnologies-fy24-esg-report.txt,"ations. Read about business business and communities across the value chain to the Ensuring longer-term sustainable employment across
meaningful role.
performance in our SEC filing. effects of climate change. Read about energy and climate the company’s value chain and addressing changing
change in the report: Climate Action, Circular Economy labor dynamics. Read about labor engagement and
For this assessment, we consulted with a broad range
Community investment: Dell invests in communities with
development in the report: Inclusive Workforce"
delltechnologies-fy24-esg-report.txt,"e energy efficiency, recovery, reuse, recycling
personal data, is legitimately used and disclosed. Read
Human Rights and recycled content and enable closed material loops.
about data privacy and security in the report:
Promoting responsible waste management, in particular
Privacy, Security
e-waste management. Read about product stewardship in
the report: Circular Economy, Zero Waste
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 11"
delltechnologies-fy24-esg-report.txt,"vices. Additionally, the quality of Dell’s water discharges
can impact the functioning of the ecosystem in numerous
ways. Direct impacts on a catchment can have wider
impacts on the quality of life in an area, including social
and economic consequences for local communities and
indigenous peoples. Read about water and effluents in the
Moderate High
report: Supplier Water Stewardship
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 12"
delltechnologies-fy24-esg-report.txt,"s and human rights due diligence program. Read
more in the Human Rights section of this report.
leadership. Examples of analyst firms include
We use several feedback mechanisms to gather
Enterprise Strategy Group, Gartner and IDC.
team member feedback on our ESG initiatives.
For example, we gather feedback and build
community through our Employee Resource
Groups, and our materiality assessment includes
a feedback option for team member inputs. Read
about our continuous listening strategy in the
Inclusive Workforce section of this report."
delltechnologies-fy24-esg-report.txt,"eedback mechanisms to gather
Enterprise Strategy Group, Gartner and IDC.
team member feedback on our ESG initiatives.
For example, we gather feedback and build
community through our Employee Resource
Groups, and our materiality assessment includes
a feedback option for team member inputs. Read
about our continuous listening strategy in the
Inclusive Workforce section of this report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 13"
delltechnologies-fy24-esg-report.txt,"hese standards help to guide the
reporting of ESG issues most pertinent to
stakeholders. We are disclosing on the topics
that we consider material to our operations, using
SASB’s standards for the hardware and software
and IT industries.
U.N. Sustainable Development Goals (SDGs)
In the Goals Dashboard, we map alignment of our
goals with the U.N. Sustainable Development Goals
(SDGs).
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 14"
delltechnologies-fy24-esg-report.txt,"category to make
IN THIS SECTION each year comparable and to provide a cumulative
comparison to our FY20 baseline.
Strategy 16
By 2030, we will reduce absolute scope 3 GHG
Greenhouse gas inventory 18 emissions associated with the use of sold products
by 30%
Product carbon footprint 21
FY24 22.2% 30%
Innovation 23 Percentage reduction in GHG emissions
Supply chain environmental management 24
*Due to the one-year lag in supplier emissions data, progress against the current
year is not available.
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 15Strategy Public advocacy"
delltechnologies-fy24-esg-report.txt,"ce emissions, reduction targets and mitigation plans. diligence: the Corporate Sustainability Due Diligence
Based Targets initiative (SBTi) criteria. The ESG Goals Directive (CS3D).
and Key Drivers Methodology section contains additional
details on how we measure progress to our key drivers.
TThhiiss iiss tthhee bbeeggiinnnniinngg ooff tthhee nnaavviiggaattiioonn ffoorr tthhee ppaaggee.. TToo eexxiitt tthhee nnaavviiggaattiioonn,, pprreessss tthhee ““HH”” kkeeyy oonn yyoouurr kkeeyybbooaarrdd..
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 16"
delltechnologies-fy24-esg-report.txt,"to lower carbon transition to renewable electricity
2040 decisions possible footprint transportation fuels
50% in operational 45% in absolute 30% in absolute
emissions emissions from emissions
purchased associated with
REDUCTION REDUCTION goods and REDUCTION the use of sold
services products
TThhiiss iiss tthhee bbeeggiinnnniinngg ooff tthhee nnaavviiggaattiioonn ffoorr tthhee ppaaggee.. TToo eexxiitt tthhee nnaavviiggaattiioonn,, pprreessss tthhee ““HH”” kkeeyy oonn yyoouurr kkeeyybbooaarrdd..
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 17"
delltechnologies-fy24-esg-report.txt,"ucts. This inventory practice allows us
to disclose our GHG emissions performance, management Scope 3 Category 6 Business travel 0.3%
and progress toward our net zero goal.
Scope 3 Category 11 Use of sold products 37.2%
*Our GHG Inventory includes FY23 Category 1 figures as explained in text
TThhiiss iiss tthhee bbeeggiinnnniinngg ooff tthhee nnaavviiggaattiioonn ffoorr tthhee ppaaggee.. TToo eexxiitt tthhee nnaavviiggaattiioonn,, pprreessss tthhee ““HH”” kkeeyy oonn yyoouurr kkeeyybbooaarrdd..
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 18"
delltechnologies-fy24-esg-report.txt,"ssions.
We used renewable energy in the form of on-site solar
generation, green power sources and unbundled and
bundled renewable energy certificates (RECs) for our U.S.
locations. As members of the RE100 initiative, we adhere
to the group’s technical guidance on renewable energy
procurement. In FY24, we sourced 61.5% of electricity
from renewable sources across all Dell facilities.
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delltechnologies-fy24-esg-report.txt,"ss
2 dataset comparisons challenging. We are initializing the
of restating our emissions for this category to make
process of re-baselining as part of our efforts to accurately
each year comparable and to provide a cumulative
measure our progress.
comparison to our FY20 baseline.
*Due to the one-year lag in supplier emissions data, progress against the current
year is not available.
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delltechnologies-fy24-esg-report.txt,"ified. We also work in
Climate+ products. A list of product names and gold,
circular economy. support of 80 Plus®, TCO and the China Environmental
silver, or bronze and Climate+ designations are on the
Label Program standards.
EPEAT registry.
More details on our work to reduce the impacts of our
products throughout their lifecycles are in the Circular
Economy section of this report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 21"
delltechnologies-fy24-esg-report.txt,"bstantial enterprise
example, we improve asset density to reduce floor
data storage reductions.
space and the corresponding cooling required. Our
OpenManage Enterprise (OME) power manager delivers
Learn more about how our Energy Efficient Data Center
telemetry to help lower the carbon footprint.
solutions are designed to increase efficiency while
reducing energy costs and emissions.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 22"
delltechnologies-fy24-esg-report.txt,"nt-of-meter application.10
• Insights: We built a GMS for more precise data
monitoring, sharing and intelligent controls that
helped reduce emissions on both the energy supply
and demand sides. GMS solutions can support utility
substation reductions in transmission and distribution
line losses which improve efficiency and help match
grid supply to specific load needs to avoid excess
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 23"
delltechnologies-fy24-esg-report.txt,"argets initiative (SBTi)
waste management systems through
net zero standard.
partnerships with our suppliers.
• Publicly declare a target year for meeting or exceeding
RE100 initiative expectations.
• Reduce overall scopes 1, 2 and 3 (category 1)
emissions from CY2020 Reporting.
We encourage suppliers to periodically assess their
challenges and partner with us to identify solutions.
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delltechnologies-fy24-esg-report.txt,"key suppliers, investing in new overall CDP Climate Change performance. policies that incentivize decarbonization for our progress toward scope 3 category 1 emissions
technologies and capabilities to improve automation and suppliers, depending on the markets or jurisdictions reduction key driver for 2030.
integrating solutions to streamline supply chain emissions where they operate:
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 25"
delltechnologies-fy24-esg-report.txt,"th our suppliers to
find more energy efficiency opportunities to advance • Our suppliers saved 86.1 million cubic meters of fresh
sustainability and reduce suppliers’ operational impacts. water and reduced the amount of wastewater they
discharged by 82.3 million cubic meters.
For additional details on our water commitments and
actions, please refer to Dell’s Water Policy Principles.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 26"
delltechnologies-fy24-esg-report.txt,"he U.S. Environmental Protection
• 9 additional suppliers participating in our Zero
Agency regulations on hazardous waste. All our Dell-
Waste Program facilities received a UL2799 or TRUE
owned global manufacturing locations are ISO 14001
certificate for their waste management system and
100% diverted solid waste from landfills.
Environmental Management System certified. Part of ISO
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 27"
delltechnologies-fy24-esg-report.txt,"l
2030 GOAL
By 2030, 100% of our packaging
will be made from recycled or
renewable material, or will utilize
reused packaging
FY24 96.4% 100%
Percentage of recycled or renewable material
content in packaging
IN THIS SECTION
2030 GOAL
By 2030, for every metric ton of Product lifecycle 30
our products a customer buys,
Circular design 31
one metric ton will be reused or
Product materials 33 recycled
Sustainable packaging 35
FY24 30.1% 100%
Recovery and recycling 37 Percentage of products collected
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 28Dell’s circularity 1990s 2010s 2020s"
delltechnologies-fy24-esg-report.txt,"stry to recycle gold from packaging into our products for the first time
used motherboards and reuse in new
motherboards14
2023 Introduced recycled copper and recycled
aluminum in our products
2019 Released a sustainable low-carbon edition of
the Latitude 7300
2023 First to ship certified 50% recycled content
steel in displays
2023 Claimed a baseline amount of recycled
glass content
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delltechnologies-fy24-esg-report.txt,"recycled or renewable
materials in packaging, offer multipack services to
reduce packing material and offer lower-emissions
shipping options. We continue to align to the Global
Logistics Emissions Council (GLEC) framework to
reduce freight operations, optimize shipment options
and overall transportation requirements by shipping
directly from manufacturing facilities where possible.
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delltechnologies-fy24-esg-report.txt,"ducation on the importance of a more
circular economy in the technology sector, including a
May 2023 Consumer Technology Association Circular
Economy panel and a similar panel at the 2024 Consumer
Electronics Show. We continue to join efforts across
industries towards building a more circular economy,
which aims to eliminate waste while keeping resources
and materials in use longer.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 31"
delltechnologies-fy24-esg-report.txt,"ew
repeatedly), takeback programs, on-demand
devices. Examples at Dell include improved
services and technologies to drive system
water spill resistance, greater tolerance
change such as artificial intelligence (AI),
for shock and vibrations, wider range of
machine learning and data analytics.
temperature and humidity tolerances, better
battery endurance and greater fault tolerance.
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delltechnologies-fy24-esg-report.txt,"parts
from old hard drives used as stock for creating new parts
Ocean-bound plastic
for hard drives. Closed-loop systems are the backbone
of a circular economy because they keep materials in
use through recycling and reuse. We have closed-loop
practices in our supply chain and products that contain
Recycled copper
closed-loop materials recovered from used technology.
Recycled steel
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delltechnologies-fy24-esg-report.txt,", aluminum and copper that we
recover is a pound of material that does not need to be
manufactured or mined. More information on Dell’s value
chain approach to drive assurance across the IT sector,
coordinate with industry groups to improve regulatory
compliance and map suppliers for responsible mineral
sourcing is available in the Supply Chain Responsibility
section of this report.
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delltechnologies-fy24-esg-report.txt,"scal year. In FY23, we expanded our
100% recycled material.
goal to account for where we utilize original packaging that
has been recollected and reused. However, measurement • Corrugate or fiberboard reported by suppliers is
and reporting capabilities for reused packaging were still in classified as renewable if it is certified through the
development during FY24. FSC, PEFC or SFI.
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delltechnologies-fy24-esg-report.txt,"l,
• For select servers, up to 98% recycled and renewable
we kept it out of oceans and in the circular economy where
content, up to 58% reduction in packaging material
it can be recycled.
weight and up to 2.7x reduction in logistics. Servers
Packaging material content weights are provided in Dell’s are 8 units in a single box for multipack.
product-specific environmental datasheets.
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delltechnologies-fy24-esg-report.txt,"Dell-owned channels, within the reporting period. We also refined how
we measure the goal, from units to overall weight, as a percentage of total weight of product
sold (in metric tons). In previous reports, this metric was calculated as a percentage of units.
In this report, we have restated FY22 and FY23 using this new methodology to present a more
meaningful view of our progress.
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delltechnologies-fy24-esg-report.txt,"ble personal devices, we provide free
mail-back to recycle them responsibly. Consumers can also drop off any brand of electronics, in any condition, at a participating Goodwill®,
and we will collect and recycle them for free through our Dell Reconnect Program. By trading in and recycling, consumers are helping keep
e-waste out of landfills while contributing to the circular economy.
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delltechnologies-fy24-esg-report.txt,"ions
that improve quality of life like access to healthcare, Each year through 2030, we will deliver future-ready
skills development for workers in our supply chain
education and job opportunities.
FY24: Dell recorded 131,478 hours of future
See our Digital Inclusion map to learn more about our
ready skills training at supplier sites and in-house
global impact.
manufacturing locations.
IN THIS SECTION
Community engagement 41
Global partnerships 43
Technology innovation 45
Future-ready skills 46
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 39Our approach to digital Public advocacy In FY24, we also:"
delltechnologies-fy24-esg-report.txt,"the world’s most challenging problems. rural parts of Ethiopia. This program aims to improve
access to quality education through technology in
disadvantaged communities in Ethiopia and to support
the education sector in line with government strategies
and policies.
• Collaborated with India’s premier think tank which
resulted in the adoption and establishment of Atal
Tinkering Labs.
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delltechnologies-fy24-esg-report.txt,"ngagement
Many of our programs and partnerships
focus on preparing students and lifelong
learners for the digital economy. Beyond
providing access to technology and
connectivity, these programs provide
critical training and experience working
with new technology. This enables
Artificial Intelligence (AI) for According to data from AACC, 58% of the nation’s 10 Mississippi statewide advancement of
communities to take the lead on their million community college students are women, 28%
AI education
Workforce"
delltechnologies-fy24-esg-report.txt,"ew technology. This enables
Artificial Intelligence (AI) for According to data from AACC, 58% of the nation’s 10 Mississippi statewide advancement of
communities to take the lead on their million community college students are women, 28%
AI education
Workforce
digital future. identify as Hispanic, 12% as Black and/or African
American and 6% as Asian/Pacific Islander. Currently, 17 of In 2023, the Mississippi Artificial Intelligence Network
In 2023, Dell and the American Association of Community
the schools participating in the AI for Workforce program (MAIN) announced a statewide collaboration to advance"
delltechnologies-fy24-esg-report.txt,"Mississippi statewide advancement of
communities to take the lead on their million community college students are women, 28%
AI education
Workforce
digital future. identify as Hispanic, 12% as Black and/or African
American and 6% as Asian/Pacific Islander. Currently, 17 of In 2023, the Mississippi Artificial Intelligence Network
In 2023, Dell and the American Association of Community
the schools participating in the AI for Workforce program (MAIN) announced a statewide collaboration to advance
Colleges (AACC) joined Intel’s AI for Workforce program."
delltechnologies-fy24-esg-report.txt,"tify as Hispanic, 12% as Black and/or African
American and 6% as Asian/Pacific Islander. Currently, 17 of In 2023, the Mississippi Artificial Intelligence Network
In 2023, Dell and the American Association of Community
the schools participating in the AI for Workforce program (MAIN) announced a statewide collaboration to advance
Colleges (AACC) joined Intel’s AI for Workforce program.
are classified by the U.S. Department of Education as AI education. Founded in partnership with Dell and Intel,
This program supports an AI-ready future workforce"
delltechnologies-fy24-esg-report.txt,"can and 6% as Asian/Pacific Islander. Currently, 17 of In 2023, the Mississippi Artificial Intelligence Network
In 2023, Dell and the American Association of Community
the schools participating in the AI for Workforce program (MAIN) announced a statewide collaboration to advance
Colleges (AACC) joined Intel’s AI for Workforce program.
are classified by the U.S. Department of Education as AI education. Founded in partnership with Dell and Intel,
This program supports an AI-ready future workforce
Minority Serving Institutions. This new partnership will building on the AI for Workforce program, MAIN promotes"
delltechnologies-fy24-esg-report.txt,"AACC) joined Intel’s AI for Workforce program.
are classified by the U.S. Department of Education as AI education. Founded in partnership with Dell and Intel,
This program supports an AI-ready future workforce
Minority Serving Institutions. This new partnership will building on the AI for Workforce program, MAIN promotes
and enables community colleges to be the first line
focus on minority serving institutions and Tribal colleges to AI training in all 15 community colleges in the state, as well
for instruction and training of the U.S. workforce. In"
delltechnologies-fy24-esg-report.txt,"and enables community colleges to be the first line
focus on minority serving institutions and Tribal colleges to AI training in all 15 community colleges in the state, as well
for instruction and training of the U.S. workforce. In
support under-resourced communities. We are committed as several Mississippi universities. Dell provided MAIN with
FY24, Dell provided additional funding for the AACC to
to continual growth of this program. specifications for campus AI labs. Local funding will allow
manage and fund grants for AI for Workforce, which uses"
delltechnologies-fy24-esg-report.txt,"for Workforce, which uses
MAIN partners to purchase technology for these labs and
Intel’s curriculum to help students gain confidence and
recruit students.
competency in AI. This funding allows AACC to work with
individual community and technical colleges to tailor
the curriculum to their needs, review grant applications,
disperse funds and evaluate the effectiveness of
the program.
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delltechnologies-fy24-esg-report.txt,"these labs, with FY24 51.5%
more than 50 labs added in FY24.
Percentage of people reached directly who identify as girls
and women, or underrepresented groups (direct reach only)
*This goal aligns with both Cultivating Inclusion and Transforming Lives goal pillars by reaching
those who identify as girls, women and underrepresented groups through our social and
education initiatives.
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delltechnologies-fy24-esg-report.txt,"inics and Violence Prevention Program. Additionally, the
Since its launch in FY21, the partnership with Junior Hub offers ICDL certification, Microsoft Office training and
Achievement Americas has impacted over 250,000 coding training.
beneficiaries, including the students directly impacted
by the program and the thousands of teachers, family
members and volunteers who support them.
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delltechnologies-fy24-esg-report.txt,"ccessibility and
18 nonprofit organizations to exemplify the power of attracted investments from potential partners. Through digital transformation of 1,000
collective action. Among them, Al Jisr, an association this experience, volunteers gained valuable insights and nonprofit partners
dedicated to supporting public school children, sought reinforced their commitment to community engagement.
assistance with digitizing 25 years of documentation. FY22 222
Learn more about how we embed giving and
volunteering into our culture in the Inclusive Workforce"
delltechnologies-fy24-esg-report.txt,"einforced their commitment to community engagement.
assistance with digitizing 25 years of documentation. FY22 222
Learn more about how we embed giving and
volunteering into our culture in the Inclusive Workforce
FY23 345 1,000
section of this report.
FY24 535
Total number of nonprofit partners supported in
their digital transformation journey (cumulative
measurement beginning FY20)
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delltechnologies-fy24-esg-report.txt,"delivery of care services. The digital medical twin database is built within a data will promote an unbiased and fair representation of their
Digital LifeCare saw 81 million enrollments in FY24, up enclave, pulling data from numerous hospitals and digital medical twin.
57% year-over-year, resulting in a cumulative total of 319 research studies. This enclave assembles data at various
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delltechnologies-fy24-esg-report.txt,"e-
ready skills for supply chain workers in partnership with
FY22 FY23 FY24
two suppliers. This program provides professional and
personal skill-building opportunities that help build digital Total number of future-ready skills training hours at
supplier sites and in-house manufacturing locations
and essential skills for their frontline workers, grassroot
line leaders and engineers.
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Cultivating Our approach to an inclusive
workforce 2030 GOAL"
delltechnologies-fy24-esg-report.txt,"ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 46
Community engagement Global partnerships Technology innovation Future-ready skillsThis is the beginning of the navigation for the page. To exit the navigation, press the “H” key on your keyboard.
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evisulcnI
Cultivating Our approach to an inclusive
workforce 2030 GOAL
inclusion in our By 2030, 50% of our global
Our team members are vital to our long-term business
workforce and 40% of our global"
delltechnologies-fy24-esg-report.txt,"DIX Dell Technologies FY24 ESG Report 46
Community engagement Global partnerships Technology innovation Future-ready skillsThis is the beginning of the navigation for the page. To exit the navigation, press the “H” key on your keyboard.
ecrofkroW
evisulcnI
Cultivating Our approach to an inclusive
workforce 2030 GOAL
inclusion in our By 2030, 50% of our global
Our team members are vital to our long-term business
workforce and 40% of our global
success, so we are focused on fostering an inclusive
workforce corporate culture and building our future pipeline of people leaders will be those who"
delltechnologies-fy24-esg-report.txt,"key on your keyboard.
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Cultivating Our approach to an inclusive
workforce 2030 GOAL
inclusion in our By 2030, 50% of our global
Our team members are vital to our long-term business
workforce and 40% of our global
success, so we are focused on fostering an inclusive
workforce corporate culture and building our future pipeline of people leaders will be those who
talented team members. To build a future that works for identify as women
all, we focus on four areas:
FY24 35.0% 50%
Workplace Percentage of our global workforce who identify as women"
delltechnologies-fy24-esg-report.txt,"team members are vital to our long-term business
workforce and 40% of our global
success, so we are focused on fostering an inclusive
workforce corporate culture and building our future pipeline of people leaders will be those who
talented team members. To build a future that works for identify as women
all, we focus on four areas:
FY24 35.0% 50%
Workplace Percentage of our global workforce who identify as women
We believe in building a diverse and
We are creating an inclusive environment where
inclusive workforce, made up of"
delltechnologies-fy24-esg-report.txt,"e that works for identify as women
all, we focus on four areas:
FY24 35.0% 50%
Workplace Percentage of our global workforce who identify as women
We believe in building a diverse and
We are creating an inclusive environment where
inclusive workforce, made up of
FY24 29.1% 40%
everyone can be their authentic selves and believe their
individuals with varying backgrounds and work is meaningful. Percentage of our global people leaders who identify
as women
life experiences. Improving representation
of underrepresented groups in tech is Workforce"
delltechnologies-fy24-esg-report.txt,"s meaningful. Percentage of our global people leaders who identify
as women
life experiences. Improving representation
of underrepresented groups in tech is Workforce
critical to meeting future talent needs and
We are committed to increasing representation and
ensuring new perspectives that reflect our recognize that talent retention at all levels is essential to 2030 GOAL
global customer base. We are committed our long-term strategy.
By 2030, 25% of our U.S.
to equal employment opportunity and
workforce and 15% of our U.S."
delltechnologies-fy24-esg-report.txt,"er base. We are committed our long-term strategy.
By 2030, 25% of our U.S.
to equal employment opportunity and
workforce and 15% of our U.S.
Accountability
upholding ethics and integrity in all we
people leaders will be those
do, and we will continue to implement We are holding ourselves accountable for upholding Dell’s
who identify as Black/African
Culture Code and People Philosophy.
inclusive practices and policies that
American or Hispanic/Latino
support diversity.
Marketplace
FY24 16.1% 25%
We are leading by example in our industry and with our Percentage of U.S. workforce who identify as Black/African"
delltechnologies-fy24-esg-report.txt,"implement We are holding ourselves accountable for upholding Dell’s
who identify as Black/African
Culture Code and People Philosophy.
inclusive practices and policies that
American or Hispanic/Latino
support diversity.
Marketplace
FY24 16.1% 25%
We are leading by example in our industry and with our Percentage of U.S. workforce who identify as Black/African
IN THIS SECTION American or Hispanic/Latino
customers to become an employer of choice for future
team members.
Workplace 48
FY24 12.6% 15%
Workforce 51 Percentage of people leaders in the U.S. workforce who"
delltechnologies-fy24-esg-report.txt,"and policies that
American or Hispanic/Latino
support diversity.
Marketplace
FY24 16.1% 25%
We are leading by example in our industry and with our Percentage of U.S. workforce who identify as Black/African
IN THIS SECTION American or Hispanic/Latino
customers to become an employer of choice for future
team members.
Workplace 48
FY24 12.6% 15%
Workforce 51 Percentage of people leaders in the U.S. workforce who
identify as Black/African American or Hispanic/Latino
Accountability 53
Marketplace 54
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 47Workplace Employee Resource Groups"
delltechnologies-fy24-esg-report.txt,"d promote
community engagement outside of Dell through giving Asians in Action Black Networking Alliance Conexus Family Balance
achieved and for the success ahead of us.
and volunteerism. ERGs partner within Dell to showcase
observances that are important to each group, including
Our culture sets us apart and helps us create an inclusive
Asian American and Pacific Islander Heritage Month,
environment for all our team members. We honor our
Black History Month, Earth Day, Hispanic Heritage Month,
commitment to creating an inclusive workforce by:"
delltechnologies-fy24-esg-report.txt,"Action
• Committing to workplace health and safety standards
employees participated in at least one ERG. Participation
in all of our operations around the world.
like this demonstrates that our team members understand
and value their role in creating community and a sense of
Read about our Culture Code and how we activate it
belonging in the workplace.
through our People Philosophy.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 48"
delltechnologies-fy24-esg-report.txt,"ike this demonstrates that our team members understand
and value their role in creating community and a sense of
Read about our Culture Code and how we activate it
belonging in the workplace.
through our People Philosophy.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 48
Workplace Workforce Accountability MarketplaceLearning programs and training As new team members join Dell, our onboarding offers Disability inclusion"
delltechnologies-fy24-esg-report.txt,"eople Philosophy.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 48
Workplace Workforce Accountability MarketplaceLearning programs and training As new team members join Dell, our onboarding offers Disability inclusion
a thorough understanding of our culture and inclusive
Giving all team members a strong educational foundation workforce goals. We do this by providing the following One way we foster inclusivity for Dell team members"
delltechnologies-fy24-esg-report.txt,"24, 48% of global Dell team members participated
in giving or volunteering. In total, our team members
volunteered approximately 949,000 hours of their time.
Those hours were spent on community projects such as
park cleanup and skill-based work through the Pro Bono
program. Read more about Pro Bono and our Giving
and Volunteering goal in the Digital Inclusion section of
this report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 49"
delltechnologies-fy24-esg-report.txt,"hours were spent on community projects such as
park cleanup and skill-based work through the Pro Bono
program. Read more about Pro Bono and our Giving
and Volunteering goal in the Digital Inclusion section of
this report.
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Workplace Workforce Accountability MarketplaceCompensation and benefits Employee health and safety"
delltechnologies-fy24-esg-report.txt,"ell maintains an internal-only Occupational Health and
efforts in the Accountability section of this report.
Safety Management System (OHSMS) manual. Dell’s
operations and businesses have earned ISO certifications
in a number of important areas, including quality,
environmental, occupational health and safety, energy and
others. For a full list, see our Certifications and Ecolabels.
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delltechnologies-fy24-esg-report.txt,"ions and businesses have earned ISO certifications
in a number of important areas, including quality,
environmental, occupational health and safety, energy and
others. For a full list, see our Certifications and Ecolabels.
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Workplace Workforce Accountability MarketplaceWorkforce Talent recruitment and hiring India, Ireland, Singapore, Slovakia, Spain, the United Arab In addition to Career ReStart and Changing the Face of"
delltechnologies-fy24-esg-report.txt,"est talent possible. who are neurodiverse, LGBTQ+, veterans and other
(HBCUs), minority-serving institutions (MSIs), Hispanic-
This includes creating on-ramps and training programs, underrepresented minorities. We are proud of our hiring
serving institutions (HSIs) and community colleges
such as Career ReStart and Reboot, for those interested in initiatives and their impact on our talent pipeline.
Dell aims to attract, develop and retain through programs that include curriculum, internships and
returning to the workforce."
delltechnologies-fy24-esg-report.txt,"des creating on-ramps and training programs, underrepresented minorities. We are proud of our hiring
serving institutions (HSIs) and community colleges
such as Career ReStart and Reboot, for those interested in initiatives and their impact on our talent pipeline.
Dell aims to attract, develop and retain through programs that include curriculum, internships and
returning to the workforce.
employment opportunities, such as our Changing the Face We are also continually reviewing and refreshing our
an inclusive workforce by investing in"
delltechnologies-fy24-esg-report.txt,"ife is bigger than work. Sometimes of Tech (CFT) initiative. policies to encourage equity throughout the hiring
our team members through internal
life calls even the most committed professionals away process. Our commitment to diverse communities is
career advancement and development. from their careers temporarily. Whether someone leaves Changing the Face of Tech is a network of programs robust and we are proud of our global teams for their
that focuses on attracting and empowering talent from
We provide access to career and the workforce to start a family, care for aging parents, dedication and focus."
delltechnologies-fy24-esg-report.txt,"Tech is a network of programs robust and we are proud of our global teams for their
that focuses on attracting and empowering talent from
We provide access to career and the workforce to start a family, care for aging parents, dedication and focus.
diverse backgrounds in order to expand the standard pool
manage an illness, complete academic study, or any
growth opportunities for all our team
of candidates for recruiting and establishing a diverse
other reason, Dell knows career gaps happen. The
members, including women globally and workforce. We’re Changing the Face of Tech by:"
delltechnologies-fy24-esg-report.txt,"veterans, people careers by providing the structured support, mentorship, HBCUs, minority-serving institutions, Hispanic-serving
with career gaps and those who are training and networking they need. Career ReStart consists institutions and community colleges to take learning
of two programs: beyond the classroom with immersive and engaging
neurodiverse.
in-person workshops on topics like sales engineering,
• Direct Hire program: Accelerates transition back to the
cybersecurity and data science.
We continue to innovate our hiring programs and workforce with structured onboarding and support."
delltechnologies-fy24-esg-report.txt,"port.
processes and remove barriers to inclusion by evaluating
• Providing training and certifications: We work with
• Returnship program: Offers training, professional
and improving our accessibility practices and retention and
students throughout their post-secondary education
development and support. This program runs in several
development processes. We are committed to building an
to provide free access to world-class training. In these
regions including France, Germany, India, Ireland and
inclusive workforce."
delltechnologies-fy24-esg-report.txt,"ld-class training. In these
regions including France, Germany, India, Ireland and
inclusive workforce.
programs, students can gain skills through hands-
the U.S.
on workshops, learn more about technology career
This commitment is the motivation behind our 2030
opportunities from professionals of color and earn
Cultivating Inclusion goals: As a further commitment to recruiting and attracting
credentials that elevate them as prospective hires.
talent, we provide mentorships to women pursuing STEM
• By 2030, 50% of our global workforce and 40% of"
delltechnologies-fy24-esg-report.txt,"spective hires.
talent, we provide mentorships to women pursuing STEM
• By 2030, 50% of our global workforce and 40% of
degrees. According to data from the 2023 World Economic • Offering our Dell Intern Scholars program: The Dell
our global people leaders will be those who identify
Forum Global Gender Gap Report, representation of Technologies Intern Scholars Program is a multi-year
as women.
women graduating with STEM degrees has remained internship experience for students who self-identify as
• By 2030, 25% of our U.S. workforce and 15% of our stagnant year over year. We encourage more young Black/African American and/or Hispanic/Latino and"
delltechnologies-fy24-esg-report.txt,"ograms through our STEM Aspire mentorship initiative. marketing or engineering. This program provides
Partnering with our Women In Action ERG, we align students the opportunity to build soft skills as well
mentors to young women in STEM degree programs. as business acumen through various learning and
This program currently exists in Australia, Brazil, Egypt, development programming.
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delltechnologies-fy24-esg-report.txt,"e opportunity to build soft skills as well
mentors to young women in STEM degree programs. as business acumen through various learning and
This program currently exists in Australia, Brazil, Egypt, development programming.
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Workplace Workforce Accountability MarketplaceTalent retention and"
delltechnologies-fy24-esg-report.txt,"ess acumen through various learning and
This program currently exists in Australia, Brazil, Egypt, development programming.
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Workplace Workforce Accountability MarketplaceTalent retention and
development 2030 GOAL 2030 GOAL
By 2030, 50% of our global By 2030, 25% of our U.S. workforce"
delltechnologies-fy24-esg-report.txt,"mming.
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Workplace Workforce Accountability MarketplaceTalent retention and
development 2030 GOAL 2030 GOAL
By 2030, 50% of our global By 2030, 25% of our U.S. workforce
Talent development is key to talent retention. We have
workforce and 40% of our global and 15% of our U.S. people leaders"
delltechnologies-fy24-esg-report.txt,"e those who identify as Black/
career paths and build a portfolio of transferable skills in identify as women African American or Hispanic/
the technology industry. We are committed to building a
Latino
diverse leadership pipeline with a broad spectrum of skills, FY22 33.9%
including the ability to act with integrity and inspire others.
FY22 15.4%
FY23 34.8% 50%
We provide many resources to support employees’ career
FY23 16.1% 25%
growth and development through a centralized program. FY24 35.0%
Through this program, we offer formal training options, Percentage of our global workforce who identify FY24 16.1%"
delltechnologies-fy24-esg-report.txt,"to building a
Latino
diverse leadership pipeline with a broad spectrum of skills, FY22 33.9%
including the ability to act with integrity and inspire others.
FY22 15.4%
FY23 34.8% 50%
We provide many resources to support employees’ career
FY23 16.1% 25%
growth and development through a centralized program. FY24 35.0%
Through this program, we offer formal training options, Percentage of our global workforce who identify FY24 16.1%
as women
individualized development programs, tools for 360-degree
Percentage of U.S workforce who identify as"
delltechnologies-fy24-esg-report.txt,"ts employee growth by providing personalized
FY22 12.2%
development suggestions, such as mentorship and FY23 29.2% 40%
internal opportunities, that align with their skills and
FY23 12.3% 15%
development goals. FY24 29.1%
Percentage of our global people leaders who FY24 12.6%
identify as women
Percentage of U.S. people leaders who identify as
Black/African American or Hispanic/Latino
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delltechnologies-fy24-esg-report.txt,"r skills and
FY23 12.3% 15%
development goals. FY24 29.1%
Percentage of our global people leaders who FY24 12.6%
identify as women
Percentage of U.S. people leaders who identify as
Black/African American or Hispanic/Latino
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Workplace Workforce Accountability MarketplaceAccountability Continuous listening strategy survey to a representative sample of approximately half Senior leaders across the organization are held"
delltechnologies-fy24-esg-report.txt,"help our leaders understand their
Through our continuous listening strategy Our Listening Strategy also includes roundtables and
potential risks, growth opportunities and areas in which we role in activating achievement, balance, connection and
listening sessions, which our leaders host with select
and robust governance and oversight are already performing well. diversity and inclusion for their team.
groups. Additionally, we distribute automated surveys
for our Culture, Diversity and Inclusion
Each year, we ask our team members to complete our throughout the lifecycle of a team member’s tenure at Dell, Our CD&I investments extend beyond our workforce and"
delltechnologies-fy24-esg-report.txt,"m the Tell Dell census or other topics review of progress toward goals and actions for
important to leadership. In FY24, these topics included areas of opportunity. This further underscores our senior-
hybrid workplace and team member perceptions around most leaders’ commitment to building a diverse and
AI. Additionally, in Q4, we distribute our Tell Dell Check-In inclusive culture.
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delltechnologies-fy24-esg-report.txt,". This further underscores our senior-
hybrid workplace and team member perceptions around most leaders’ commitment to building a diverse and
AI. Additionally, in Q4, we distribute our Tell Dell Check-In inclusive culture.
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Workplace Workforce Accountability MarketplaceMarketplace In FY24, we represented our global workforce and inclusive"
delltechnologies-fy24-esg-report.txt,"inclusion. We are also a long-standing supporter
a number of organizations to help us
of Catalyst, a nonprofit that brings together a global
accomplish these objectives.
community of 500+ companies to learn and share leading
practices and help build workplaces that work for women.
Our Chairman and CEO Michael Dell is a Catalyst CEO
Champion for Change and Board of Directors member.
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delltechnologies-fy24-esg-report.txt,"ctives.
community of 500+ companies to learn and share leading
practices and help build workplaces that work for women.
Our Chairman and CEO Michael Dell is a Catalyst CEO
Champion for Change and Board of Directors member.
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delltechnologies-fy24-esg-report.txt,"agement and roles of our Board
our business. These are addressed in the Dell Human
of Directors, ESG Steering Committee and ESG Interlock
Salient risks 56 Rights Policy.
Team in the Corporate Governance section of this report.
The Ethics section of this report provides information on
Supply chain responsibility 58
our Code of Conduct training.
Continuous improvement model 59
Responsible labor practices 62
Health, safety and worker rights 63
Responsible minerals sourcing 65
Supplier diversity 66
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 55Salient risks"
delltechnologies-fy24-esg-report.txt,"provides information on
Supply chain responsibility 58
our Code of Conduct training.
Continuous improvement model 59
Responsible labor practices 62
Health, safety and worker rights 63
Responsible minerals sourcing 65
Supplier diversity 66
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 55Salient risks
Salient Risks Value Chain Impact Policies Additional Resources and Reporting
Area(s)
Discrimination Own Operations, Dell Human Rights Policy Inclusive Workforce section of this report"
delltechnologies-fy24-esg-report.txt,"f this report
Dell Product Regulatory Compliance Policy Dell Product Safety Information
Our first corporate-level third-party HRIA, completed in
Dell Supplier Principles
FY19, confirmed our awareness of salient human rights
risks and impact areas and that we have the essential
Working Hours/Wages Own Operations, Dell Human Rights Policy Supply Chain Responsibility section of this report
structures in place to monitor and address our most Supply Chain RBA Code of Conduct Dell Supplier Principles
significant risk areas. Insights from our most recent third- Inclusive Workforce section of this report"
delltechnologies-fy24-esg-report.txt,"ll Technologies Principles for Ethical Artificial Intelligence
human rights impact areas across our value chain, Community Trust section of this report
respective governing policies and expectations. It also lists
additional resources and references that further address Responsible Sales Products, Dell Code of Conduct for Partners Trust section of this report
Community
these topics.
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delltechnologies-fy24-esg-report.txt,"ticipate in the BSR (Business for Social
on these priorities and progress in our annual Statement Responsibility) Human Rights Working Group.
Against Modern Slavery, Human Trafficking, and Child
Labor. Our global commitment to respecting human rights
also extends to the responsible sourcing of materials used
in our products and is underscored in the Dell Responsible
Sourcing Policy.
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delltechnologies-fy24-esg-report.txt,"ins practices are informed by international standards,
including the United Nations Guiding Principles on
in the industry. Our enduring dedication
Business and Human Rights, the United Nations Universal
to sustainability is a key factor in our
Declaration of Human Rights, the United Nations
continued success. Convention on the Rights of the Child and other relevant
U.N. conventions.
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delltechnologies-fy24-esg-report.txt,"iscovered through an audit, our Dell SER specialists work
with the supplier to create a corrective action plan (CAP)
to resolve the issues within RBA- or Dell-defined timelines,
whichever is earliest.
Capability building
We share best practices collected from our highest
performing suppliers and encourage lower-performing
suppliers to take appropriate actions to improve performance.
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delltechnologies-fy24-esg-report.txt,"rganizations.
of Conduct. The severity and number of these audit
findings, classified as priority, major, minor and risk of
Based on the results of the SAQ and additional insight, we
noncompliance, impact a supplier’s overall audit score,
classify suppliers as low-, medium- or high-risk. Suppliers
which ranges from zero to 200.
deemed high-risk must complete a third-party audit that
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delltechnologies-fy24-esg-report.txt,"oyees in
In total, 1,680 unique participants representing 400 unique
supplier-facing roles within our procurement and
factories attended our capability-building programs,
operations organizations complete Dell’s required
completing approximately 107,922 hours of training on
annual human rights training.
SER topics.
Learn more about Dell’s approach to future-ready
skills development.
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delltechnologies-fy24-esg-report.txt,"djusted or identifying when orders can
understand why their pay does not change. be moved.
• Track the supplier’s remediation progress. • Capability building to provide suppliers with knowledge
and tools to improve working hours performance
Read more on our ethical practices in the Ethics section of through management systems.
this report.
$3,370,568
in fees were returned to workers
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delltechnologies-fy24-esg-report.txt,"to
and skills and improve safety. In addition, workers
address areas of nonconformance. In cases of priority
are empowered by understanding their rights and the
findings, suppliers are required to complete a third-party
availability of grievance mechanisms to help identify areas
closure audit to confirm resolution of the finding.
of nonconformance with standards in their factories.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 63"
delltechnologies-fy24-esg-report.txt,"ding financial
and engagement, reducing worker exposure to and technical support and production flexibility.
identified priority chemicals and substituting them with
safer alternatives. • Keeping on track with weekly team meetings to monitor
improvement action and implementation progress.
• Measures and reports outcomes, expands the impact
and reaches into deeper supply chain tiers.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 64"
delltechnologies-fy24-esg-report.txt,"lidate conformance with the Responsible Minerals
Assurance Process (RMAP). The sector-wide RMAP
standards meet the OECD Due Diligence Guidance
requirements, the Regulation (EU) 2017/821 of the
European Parliament and the U.S. Dodd-Frank Wall Street
Reform and Consumer Protection Act. Dell annually files
a Conflict Minerals Disclosure with the U.S. Securities and
Exchange Commission.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 65"
delltechnologies-fy24-esg-report.txt,"ty-owned and
operated by women, minorities, members of the LGBQT+
*This number represents the amount our suppliers spent with small and diverse suppliers for the
community, veterans, service-disabled veterans, members
period Jan. 1, 2023, through Dec. 31, 2023.
of the disabled community, disadvantaged persons
and those located in a historically underutilized business
zone (HUBZone).
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 66"
delltechnologies-fy24-esg-report.txt,"working to determine the full scope of actively sold In FY24, Dell made customer choice and control over
Risk assessment 77 Dell-designed and branded products and offerings and personal data easier and faster through the expansion of
to establish our metric pipeline. At the close of FY24, we our enhanced Privacy Center, which is now available in 74
Public policy 79 had generated SBOMs for 70 Dell-designed and branded locations globally.
products and are on track to meet this key driver by 2025.
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 67Security Zero Trust solution SBOM for 100% of products"
delltechnologies-fy24-esg-report.txt,"on Dell.com.
FY24: Dell’s Zero Trust solution, Project Fort Zero, is
We are on track to meet this target. At the close of FY24,
awaiting a testing date for validation from the U.S.
Government. We anticipate publishing a general over 70 Dell-designed and branded products have SBOMs.
availability date shortly following the successful
completion of the U.S. Government validation test.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 68"
delltechnologies-fy24-esg-report.txt,"gned duties.
adopted into roadmaps.
complemented our existing measures to find and
address security vulnerabilities throughout the software
development lifecycle.
Taking a proactive approach to vulnerability mitigation,
this program incentivized a diverse set of third-party
researchers to test the security of our products and
applications in accordance with Dell-provided guidelines.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 69"
delltechnologies-fy24-esg-report.txt,"ologies Global Multisite Certificate
security, integrity, quality and resiliency.
• Road Traffic Safety Management System ISO 39001 –
Read more about security in Dell’s supply chain. Dell India (multiple locations)
• Environmental Management System ISO 14001 – Dell
Worldwide
• Energy Management System 50001 – Dell Worldwide
• Supplier Sites with Certified Energy Management ISO
50001
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 70"
delltechnologies-fy24-esg-report.txt,"es and controls for
Center provides education and awareness of Dell privacy
the protection of personal data, to help ensure and
practices and facilitates instant automated intake of Data
measure the effectiveness of the privacy program and
Subject Rights requests and consumer privacy questions
report out as appropriate to company leadership and the
or complaints.
Board of Directors.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 71"
delltechnologies-fy24-esg-report.txt,"Conduct,
an extension of our business and, therefore, our reputation policies or applicable laws. Dell
and impact. We hold them to the same high ethical does not tolerate retaliation and
standard we set for ourselves and require partners to is committed to protecting team
agree to expectations before formalizing our partnership. members who report suspected
misconduct in good faith.
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delltechnologies-fy24-esg-report.txt,"les
We leverage tools such as customer and vendor screening
workstream.
and other procedures to ensure that we do not sell to or
purchase from unauthorized entities. As global restrictions
continue to increase in complexity, we continue to
proactively strengthen our program through enhanced
cross-functional collaboration, improved tools and
awareness initiatives across the business.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 73"
delltechnologies-fy24-esg-report.txt,"all team members
across industry, startup, academia, research
whose roles required a deeper understanding of privacy Our most senior Trust leaders hosted an interactive
and government coming together to support
practices and principles. and engaging session aimed to inform Dell’s executives
open innovation and open science in AI.
of current regulations and lessons learned from other
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 74"
delltechnologies-fy24-esg-report.txt,"ng clear lines of responsibility and
of our board in our proxy statement, or explore Dell accountability for ESG initiatives, which makes it easier
Technologies Board of Directors governance information. to track progress and hold individuals and teams
accountable for their performance. This includes the
establishment of executive oversight for each of our
ESG goals and initiatives.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 75"
delltechnologies-fy24-esg-report.txt,"mance of certain executive officers against an annual performance
plan, with key performance indicators tied to achieving a set of strategic and operational goals. Among the factors that
may be considered in making individual compensation decisions is the executive officer’s performance, experience and
contribution to the Company’s long-term strategic goals, including our ESG goals.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 76"
delltechnologies-fy24-esg-report.txt,"e of such risks. Our ERM program is
assessed externally on a periodic basis for best practices
and maturity of the program. The ERM program aims to
identify the most critical risks and opportunities impacting
Dell’s business objectives.
We work to foster a strong risk management culture
among Dell team members, because they are our
first defense against risk. Across the business our
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 77"
delltechnologies-fy24-esg-report.txt,"hts from our FY24 third-party HRIA deepened
our supply chain are potentially exposed to a matrix of
our understanding of current, new and evolving salient
hazards and scenarios across time horizons.
risks and continues to inform and strengthen our risk
mitigation strategies and governance practices. View
our most salient human rights risks in the Human Rights
section of this report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 78"
delltechnologies-fy24-esg-report.txt,"ociations to refine their understanding of our objectives
sustainability solutions. disclosure and accountability and provides details on how
for the coming year. In addition, we may begin new or end
to review Dell PAC contributions.
• Fostering globally harmonized environmental and existing relationships with trade associations to better
social standards. align with our priorities.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 79"
delltechnologies-fy24-esg-report.txt,"’s core Stakeholder Capitalism
Metrics. Our Reporting Frameworks Index also provides
mapping of GRI disclosures to the Task Force on Climate-
related Financial Disclosures’ recommendations. In
addition, we respond to CDP Water Security and Climate
Change questionnaires, rounding out our robust global
ESG reporting.
IN THIS SECTION
Performance metrics 81
Supply chain audit results 96
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 80Unit of"
delltechnologies-fy24-esg-report.txt,"54,800 81,500** Scope 3 category 6 covers business travel by Dell team members, including emissions from air and rail travel, hotel stays and rental car fuel
travel emissions.
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 81"
delltechnologies-fy24-esg-report.txt,"rd a key driver that supports our goal:
By 2050, we will achieve net zero greenhouse gas (GHG) emissions across scopes 1, 2 and 3.
Other energy consumed million kWh 156 154 114
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 82"
delltechnologies-fy24-esg-report.txt,"el into other products types.
Reclaimed carbon fiber 682,157 465,768 492,250 The increase in reclaimed carbon fiber is explained by supply chain inventory changes year to year.
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 83"
delltechnologies-fy24-esg-report.txt,"ported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
†Learn more about changes in the scope and calculation of this metric in About This Report - Restatements of information and ESG Goals and Key Drivers Methodology in the Appendix.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 84"
delltechnologies-fy24-esg-report.txt,"ate 0.04 0.04 0.03 Cases per 100 full-time employees (FTEs).
Cases per
100 FTEs
DART (days away, restricted or transferred) rate 0.03 0.03 0.03
Total number of work-related fatalities Number of 0 0 0 Cases for all employees.
fatalities
*Reported metrics are rounded and may not visually sum.
**Learn more about our efforts in data standardization and improvements in About This Report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 85"
delltechnologies-fy24-esg-report.txt,"and may not visually sum.
**Learn more about our efforts in data standardization and improvements in About This Report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 85
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
Global female representation Represents team members in our global workforce who have self–identified as women."
delltechnologies-fy24-esg-report.txt,"Report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 85
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
Global female representation Represents team members in our global workforce who have self–identified as women.
Overall 33.9% 34.8% 35.0%** Our efforts to increase representation of women in our global workforce and in leadership roles continued with focus on inclusive culture"
delltechnologies-fy24-esg-report.txt,"DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 85
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
Global female representation Represents team members in our global workforce who have self–identified as women.
Overall 33.9% 34.8% 35.0%** Our efforts to increase representation of women in our global workforce and in leadership roles continued with focus on inclusive culture
practices in hiring, developing and retaining talent. In FY24, 35.0% of our global workforce and 29.1% of our people leaders identified as"
delltechnologies-fy24-esg-report.txt,"continued with focus on inclusive culture
practices in hiring, developing and retaining talent. In FY24, 35.0% of our global workforce and 29.1% of our people leaders identified as
women, compared to 34.8% and 29.2% in FY23, respectively. Limited progress in FY24 is attributed to the current economic environment
People leader roles 28.2% 29.2% 29.1%**
resulting in low hiring and organizational change impacting leadership opportunities.
These metrics are used to track progress toward our goal:
%
By 2030, 50% of our global workforce and 40% of our global people leaders will be those who identify as women."
delltechnologies-fy24-esg-report.txt,"0, 50% of our global workforce and 40% of our global people leaders will be those who identify as women.
Technical roles 22.8% 24.5% 25.0%
Non-technical roles 39.0% 39.8% 40.4%
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 86"
delltechnologies-fy24-esg-report.txt,"ce procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 86
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation
Overall Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
delltechnologies-fy24-esg-report.txt,"on your keyboard.
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 86
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation
Overall Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Asian 15.0% 15.4% 16.4%
American Indian or Alaskan Native 0.5% 0.5% 0.5%
Black/African American or Hispanic/Latino 15.4% 16.1% 16.1%** Our efforts to increase representation of underrepresented groups in our U.S. workforce and leadership continued with focus on inclusive"
delltechnologies-fy24-esg-report.txt,"s Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation
Overall Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Asian 15.0% 15.4% 16.4%
American Indian or Alaskan Native 0.5% 0.5% 0.5%
Black/African American or Hispanic/Latino 15.4% 16.1% 16.1%** Our efforts to increase representation of underrepresented groups in our U.S. workforce and leadership continued with focus on inclusive
culture practices in hiring, developing and retaining talent. In FY24, 16.1% of our U.S. workforce and 12.6% of our U.S. people leaders"
delltechnologies-fy24-esg-report.txt,"rship continued with focus on inclusive
culture practices in hiring, developing and retaining talent. In FY24, 16.1% of our U.S. workforce and 12.6% of our U.S. people leaders
identified as Black/African American or Hispanic/Latino, compared to 16.1% and 12.3% in FY23, respectively. Limited progress in FY24 is
attributed to the current economic environment resulting in low hiring and organizational change impacting leadership opportunities.
This metric is used to track progress toward our goal:
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or"
delltechnologies-fy24-esg-report.txt,"9.4% 9.9% 10.0%
Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2%
Two or more races 1.8% 1.9% 1.9%
White 65.1% 63.5% 62.2%
Not specified or did not report 2.0% 2.5% 2.7%
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 87"
delltechnologies-fy24-esg-report.txt,"s with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 87
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
People leader roles Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
delltechnologies-fy24-esg-report.txt,"UCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 87
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
People leader roles Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Asian 13.6% 14.3% 15.4%
American Indian or Alaskan Native 0.6% 0.6% 0.6%
Black/African American or Hispanic/Latino 12.2% 12.3% 12.6%** Our efforts to increase representation of underrepresented groups in our U.S. workforce and leadership continued with focus on inclusive"
delltechnologies-fy24-esg-report.txt,"ultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
People leader roles Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown.
Asian 13.6% 14.3% 15.4%
American Indian or Alaskan Native 0.6% 0.6% 0.6%
Black/African American or Hispanic/Latino 12.2% 12.3% 12.6%** Our efforts to increase representation of underrepresented groups in our U.S. workforce and leadership continued with focus on inclusive
culture practices in hiring, developing and retaining talent. In FY24, 16.1% of our U.S. workforce and 12.6% of our U.S. people leaders"
delltechnologies-fy24-esg-report.txt,"rship continued with focus on inclusive
culture practices in hiring, developing and retaining talent. In FY24, 16.1% of our U.S. workforce and 12.6% of our U.S. people leaders
identified as Black/African American or Hispanic/Latino, compared to 16.1% and 12.3% in FY23, respectively. Limited progress in FY24 is
attributed to the current economic environment resulting in low hiring and organizational change impacting leadership opportunities.
This metric is used to track progress toward our goal:
By 2030, 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or"
delltechnologies-fy24-esg-report.txt,"8.5% 8.7% 8.8%
Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
Two or more races 1.0% 1.1% 1.1%
White 71.0% 69.3% 67.7%
Not specified or did not report 1.5% 2.2% 2.5%
*Reported metrics are rounded and may not visually sum.
**We commissioned an external third party to perform limited assurance procedures with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 88"
delltechnologies-fy24-esg-report.txt,"s with respect to these metrics. View full details and data methodology.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 88
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
Technical Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
delltechnologies-fy24-esg-report.txt,"e/ethnicity shown.
Asian 26.3% 26.9% 28.1%
American Indian or Alaskan Native 0.5% 0.5% 0.5%
Black or African American 4.9% 5.1% 5.2%
Hispanic or Latino 7.8% 8.3% 8.2%
%
Native Hawaiian or other Pacific Islander 0.1% 0.1% 0.1%
Two or more races 1.5% 1.6% 1.6%
White 56.8% 55.0% 53.5%
Not specified or did not report 2.1% 2.5% 2.7%
*Reported metrics are rounded and may not visually sum.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 89"
delltechnologies-fy24-esg-report.txt,"t 2.1% 2.5% 2.7%
*Reported metrics are rounded and may not visually sum.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 89
Performance metrics Supply chain audit resultsUnit of
Performance metric* FY22 FY23 FY24 Notes
measure
U.S. race/ethnicity representation (continued)
Non-technical roles Represents team members in our U.S. workforce who have self–identified as the race/ethnicity shown."
delltechnologies-fy24-esg-report.txt,"ck or African American 6.5% 6.8% 6.6%
Hispanic or Latino 10.3% 10.7% 11.0%
%
Native Hawaiian or other Pacific Islander 0.2% 0.2% 0.2%
Two or more races 1.9% 2.0% 2.0%
White 69.4% 68.0% 67.3%
Not specified or did not report 2.0% 2.5% 2.7%
Global employee resource groups (ERGs)
Percentage of overall enrollment % 47.0% 52.0% 56.4%
*Reported metrics are rounded and may not visually sum.
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delltechnologies-fy24-esg-report.txt,"-ready skills training at supplier sites through our pilot program.
in supply chain
This metric is used to track progress toward a key driver that supports our goal:
By 2030, we will improve 1 billion lives through digital inclusion.
*Reported metrics are rounded and may not visually sum.
**FY23 restated to reflect corrected calculation. See further explanation in About This Report.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 91"
delltechnologies-fy24-esg-report.txt,"resources and track
their progress against those priorities over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider.
This metric is used to track progress toward a key driver that supports our goal:
By 2030, 75% of our team members will participate in giving or volunteerism in their communities.
*Reported metrics are rounded and may not visually sum.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 92"
delltechnologies-fy24-esg-report.txt,"liance
Percentage of Dell team members who completed 100% 100% 100%
assigned ethics and compliance training
Percentage of Dell team members who agreed to 100% 100% 100%
the Dell Technologies Code of Conduct
%
Percentage of partners that completed assigned 100% 100% 100%
ethics and compliance training
Percentage of partners that agreed to the Code of 94% 99% 100%
Conduct for Partners
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 93"
delltechnologies-fy24-esg-report.txt,"ine training 5,267 6,187 5,971 5,971 hours were completed online.
Hours of in-person or webinar training 6,524 5,804 8,313 8,313 hours were completed live, via in-person training sessions or webinars.
*Cumulative represents the calculated closure rates for priority findings as of July 31, 2024.
**Cumulative represents the calculated closure rates for findings as of January 31, 2024.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 94"
delltechnologies-fy24-esg-report.txt,"ish annual sustainability reports that meet the GRI requirements. This number represents the amount of
suppliers suppliers by percent of procurement spend with sustainability reports.
Diverse supplier spend† $ U.S. >U.S.$ 3B >U.S.$ 3B >U.S.$ 3B Dell is committed to spend $3 billion or more annually with diverse suppliers.
†Diverse spend certificates are validated on an annual basis.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 95"
delltechnologies-fy24-esg-report.txt,".73% 100.00%
Key
M 0 1 0 M 0 0 0
P: Priority Findings
Air emissions P 0 0 0 Fair business, P 0 0 0
advertising and
M: Major Findings 98.63% 100.00%
competition
M 0 4 1 M 0 0 0
Water management P 0 0 0 Protection of identity P 0 0 0
and non-retaliation
99.73% 100.00%
M 0 1 0 M 0 0 0
Energy consumption P 0 0 0 Privacy P 0 0 0
and greenhouse gas
98.63% 100.00%
emissions
M 0 4 1 M 0 0 0
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 96"
delltechnologies-fy24-esg-report.txt,"l hygiene P 0 0 0 Wages and benefits P 0 0 1
M: Major Findings 96.44% 90.41%
M 0 5 8 M 0 14 21
Physically demanding P 0 0 0 Humane treatment P 0 0 0
work
100.00% 99.73%
M 0 0 0 M 0 1 0
Machine safeguarding P 0 0 0 Non-discrimination/ P 0 1 0
non-harassment
95.07% 98.63%
M 1 7 10 M 0 3 1
Food, sanitation and P 0 0 1 Freedom of P 0 0 0
housing association
96.44% 99.45%
M 0 5 7 M 0 1 1
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 97"
delltechnologies-fy24-esg-report.txt,"n issue has been
61.37% 100.00%
identified. When an issue is identified, we work with
M 7 56 78 M 0 0 0
the factory to correct it.
Communications P 0 0 0 Responsible sourcing P 0 0 0
of minerals
95.62% 99.73%
Key
M 1 3 12 M 0 1 0
P: Priority Findings
Performance review P 0 0 0 Supplier responsibility P 1 0 0
and continuous
M: Major Findings 96.44% 94.25%
improvement
M 2 6 5 M 2 8 11
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 98"
delltechnologies-fy24-esg-report.txt,"the “H” key on your keyboard.
INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 98
Performance metrics Supply chain audit resultsAppendix
IN THIS SECTION
About this report 100
ESG goals and key drivers methodology 102
Reporting frameworks index 106
Glossary 111
Endnotes 115
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 99About this report Reporting year Report scope and profile"
delltechnologies-fy24-esg-report.txt,"ustream and Dell Financial our reporting efforts with the broader ESG conversation,
This FY24 Environmental, Social and
53-week period that ends on the Friday nearest to January Services is included where relevant. Data for RSA is we have organized this year’s report across six of our most
Governance (ESG) Report provides
31. The fiscal year for this FY24 ESG report ended Friday, included only until the date of the divestiture, September 1, material ESG topics: Climate Action, Circular Economy,
our stakeholders with a transparent February 2, 2024. 2020. Data for Boomi is included only until the date of the Digital Inclusion, Inclusive Workforce, Human Rights and"
delltechnologies-fy24-esg-report.txt,"DP climate change report that
standards from the Global Reporting Initiative (GRI) recognized human rights of all people, and responsible covers corporate efforts to help ensure a covers corporate efforts to reduce climate risks.
standards, SASB standards, World Economic Forum’s sourcing of minerals is part of our global approach. water-secure future.
Stakeholder Capitalism Metrics.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 100"
delltechnologies-fy24-esg-report.txt,"FY22
This report includes estimates, projections and other
• Percentage of recycled/renewable material content in and FY23 using this new methodology to present a more
“forward-looking statements,” which generally are identified
packaging meaningful view of our progress.
by the words “believe,” “project,” “expect,” “anticipate,”
• Representation metrics tied to our Inclusive The total number of people reached toward our goal to “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,”
Workforce goals* improve 1 billion lives through digital inclusion by 2030 “may,” “should,” “will,” “would,” “will be,” “will continue,” “will"
delltechnologies-fy24-esg-report.txt,". sent to social.impact@dell.com.
In our ongoing efforts to enhance data accuracy and
precision, we recognize the need for standardization
* Global female representation - Overall, Global female representation - People leader roles, U.S. race/ethnicity representation - Black/African American
or Hispanic/Latino, and U.S. People leader roles - Black/African American or Hispanic/Latino
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 101"
delltechnologies-fy24-esg-report.txt,"ry-specific carbon footprints to estimate a worldwide scope 3 category 11 figure for
Dell’s hardware portfolio. The country-level emissions factors for purchased electricity change regularly. For FY24, this calculation uses the
2022 estimated emissions factors published by the IEA in 2023. Where those are not available, we use the IEA’s 2021 figures that were also
published in 2023.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 102"
delltechnologies-fy24-esg-report.txt,"uture-ready skills training data for all in-house manufacturing locations in our pilot program.
future-ready skills development for workers in our skills training hours at in-house
supply chain manufacturing locations
Total number of future-ready skills The scope is the total future-ready skills training data for two key suppliers in our pilot program.
training hours in supply chain
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 103"
delltechnologies-fy24-esg-report.txt,"l-based employee volunteering.
(cumulative measurement
beginning FY20) Dell has invested in the development of a Digital Assessment Tool that is now available to nonprofits globally. This tool enables nonprofits
to measure and determine their current digital capacity, identify digital transformation priorities and recommended resources and track their
progress against those priorities over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider.
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our Percentage of global workforce Applies to our global workforce. The scope includes the percentage of team members who have self-identified as women within our global"
delltechnologies-fy24-esg-report.txt,"etermine their current digital capacity, identify digital transformation priorities and recommended resources and track their
progress against those priorities over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider.
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our Percentage of global workforce Applies to our global workforce. The scope includes the percentage of team members who have self-identified as women within our global
workforce global people leaders will be those who identify as women who identify as women workforce, excluding Secureworks."
delltechnologies-fy24-esg-report.txt,"r
progress against those priorities over time. The Digital Assessment Tool was developed by TechSoup, a third-party provider.
Cultivating inclusion
Inclusive By 2030, 50% of our global workforce and 40% of our Percentage of global workforce Applies to our global workforce. The scope includes the percentage of team members who have self-identified as women within our global
workforce global people leaders will be those who identify as women who identify as women workforce, excluding Secureworks.
Percentage of people leaders in Applies to our global workforce. The scope includes the percentage of people leaders who have self-identified as women within our global"
delltechnologies-fy24-esg-report.txt,"% of our global workforce and 40% of our Percentage of global workforce Applies to our global workforce. The scope includes the percentage of team members who have self-identified as women within our global
workforce global people leaders will be those who identify as women who identify as women workforce, excluding Secureworks.
Percentage of people leaders in Applies to our global workforce. The scope includes the percentage of people leaders who have self-identified as women within our global
global workforce who identify as people leader workforce, excluding Secureworks."
delltechnologies-fy24-esg-report.txt,"global workforce. The scope includes the percentage of team members who have self-identified as women within our global
workforce global people leaders will be those who identify as women who identify as women workforce, excluding Secureworks.
Percentage of people leaders in Applies to our global workforce. The scope includes the percentage of people leaders who have self-identified as women within our global
global workforce who identify as people leader workforce, excluding Secureworks.
women
By 2030, 25% of our U.S. workforce and 15% of our U.S. Percentage of U.S. workforce who Applies to our U.S. workforce. The scope includes the percentage of team members who have self-identified as Black/African American or"
delltechnologies-fy24-esg-report.txt,"cluding Secureworks.
Percentage of people leaders in Applies to our global workforce. The scope includes the percentage of people leaders who have self-identified as women within our global
global workforce who identify as people leader workforce, excluding Secureworks.
women
By 2030, 25% of our U.S. workforce and 15% of our U.S. Percentage of U.S. workforce who Applies to our U.S. workforce. The scope includes the percentage of team members who have self-identified as Black/African American or
people leaders will be those who identify as Black/African identify as Black/African American Hispanic/Latino within our U.S. workforce, excluding Secureworks."
delltechnologies-fy24-esg-report.txt,"who identify as people leader workforce, excluding Secureworks.
women
By 2030, 25% of our U.S. workforce and 15% of our U.S. Percentage of U.S. workforce who Applies to our U.S. workforce. The scope includes the percentage of team members who have self-identified as Black/African American or
people leaders will be those who identify as Black/African identify as Black/African American Hispanic/Latino within our U.S. workforce, excluding Secureworks.
American or Hispanic/Latino or Hispanic/Latino
Percentage of people leaders in Applies to our U.S. workforce. The scope includes the percentage of people leaders who have self-identified as Black/African American or"
delltechnologies-fy24-esg-report.txt,"our U.S. workforce. The scope includes the percentage of team members who have self-identified as Black/African American or
people leaders will be those who identify as Black/African identify as Black/African American Hispanic/Latino within our U.S. workforce, excluding Secureworks.
American or Hispanic/Latino or Hispanic/Latino
Percentage of people leaders in Applies to our U.S. workforce. The scope includes the percentage of people leaders who have self-identified as Black/African American or
the U.S. workforce who identify Hispanic/Latino within our U.S. people leader workforce, excluding Secureworks."
delltechnologies-fy24-esg-report.txt,"Secureworks.
American or Hispanic/Latino or Hispanic/Latino
Percentage of people leaders in Applies to our U.S. workforce. The scope includes the percentage of people leaders who have self-identified as Black/African American or
the U.S. workforce who identify Hispanic/Latino within our U.S. people leader workforce, excluding Secureworks.
as Black/African American or
Hispanic/Latino
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 104"
delltechnologies-fy24-esg-report.txt,"we will make it Qualitative annual progress We provide annual updates on our progress toward making it easier and faster for customers to exercise choice and control over their personal
easier and faster for customers to exercise choice and towards making it easier and data.
control over their personal data faster for customers to exercise
choice and control over their
personal data
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 105"
delltechnologies-fy24-esg-report.txt,"he numbers - Trust WEF SCM Ethical behavior: Anti-corruption
Benefit plan obligations Form 10-K for FY24 - Retirement plan benefits, pg 139 GRI Economic performance 201-3
Communication of critical concerns Ethics - Speak Up GRI General disclosures 2-16, 2-26
*All GRI general disclosures are aligned with the 2021 standards. Topic standards reflect the most recently available version.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 106"
delltechnologies-fy24-esg-report.txt,"ge from our Chairman and CEO GRI General disclosures 2-22
Supply chain responsibility Supply chain responsibility - Health, safety and worker rights GRI General disclosures 2-25
Ethics
TCFD Corporate governance - Risk assessment WEF SCM: TCFD recommendations
*All GRI general disclosures are aligned with the 2021 standards. Topic standards reflect the most recently available version.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 107"
delltechnologies-fy24-esg-report.txt,"ed with the 2021 standards. Topic standards reflect the most recently available version.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 107
About this report Methodology Reporting frameworks index Glossary EndnotesKey performance indicator FY2024 Reference indices*
Social
Benefits provided to full-time employees Inclusive workforce - Workplace GRI Employment 401-2"
delltechnologies-fy24-esg-report.txt,"indices*
Social
Benefits provided to full-time employees Inclusive workforce - Workplace GRI Employment 401-2
Board diversity Corporate governance - Board and ESG governance GRI Diversity and equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2"
delltechnologies-fy24-esg-report.txt,"equal opportunity 405-1
Community investment and economic impact Digital inclusion GRI Indirect Economic impacts 203-1, 203-2, GRI Local communities 413-1, WEF SCM
Employment and wealth generation: Economic contribution
Economic value By the numbers - Giving and volunteerism GRI Economic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2
Employee engagement as a percentage: 87%**
Employee wellness Global benefits GRI Occupational health and safety 403-6
Employee training and education Inclusive workforce - Workforce GRI Training and education 404-2"
delltechnologies-fy24-esg-report.txt,"ic performance 201-1
Employee engagement Inclusive workforce - Accountability SASB TC-SI-330a.2
Employee engagement as a percentage: 87%**
Employee wellness Global benefits GRI Occupational health and safety 403-6
Employee training and education Inclusive workforce - Workforce GRI Training and education 404-2
Growing your career
Employees Our business GRI General disclosures 2-7, SASB TC-HW-330a, SASB TC-SI-330a.3
By the numbers - Global female representation, U.S. race/ethnicity representation
Occupational health and safety Inclusive workforce - Workplace GRI Occupational health and safety 403-1, 403-2, 403-3"
delltechnologies-fy24-esg-report.txt,"benefits GRI Occupational health and safety 403-6
Employee training and education Inclusive workforce - Workforce GRI Training and education 404-2
Growing your career
Employees Our business GRI General disclosures 2-7, SASB TC-HW-330a, SASB TC-SI-330a.3
By the numbers - Global female representation, U.S. race/ethnicity representation
Occupational health and safety Inclusive workforce - Workplace GRI Occupational health and safety 403-1, 403-2, 403-3
Global Occupational Health and Safety Policy
Pay equity Inclusive workforce - Accountability GRI Diversity and equal opportunity 405-2"
delltechnologies-fy24-esg-report.txt,"e engagement survey is collected annually in Q2. The percentage shown describes the results of the survey collected during FY24, in May 2023. Average score across all favorability questions in Tell Dell engagement survey. Favorability percentages represent the % who selected agree or strongly agree on a 5-point scale (strongly disagree | disagree | neutral | agree | strongly agree).
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 108"
delltechnologies-fy24-esg-report.txt,"racks, power supplies, components, warranties etc. were excluded in our analysis rather than counted as not meeting requirements.
‡Whereas previous disclosures were broken down by product type, beginning FY24, Dell will report an overall percentage of eligible products sold registered to EPEAT. As with FY22 and FY23, Dell will continue to report this percentage based on units sold.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 109"
delltechnologies-fy24-esg-report.txt,"er Supply chain environmental management - Supplier water stewardship GRI Water and effluents 303-1, 303-2, 303-3, 303-4, 303-5, SASB TC-SI-130a.2, WEF
SCM Freshwater availability
By the numbers - Water used in Dell Technologies operations
CDP Water Security
*All GRI general disclosures are aligned with the 2021 standards. Topic standards reflect the most recently available version.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 110"
delltechnologies-fy24-esg-report.txt,"ry or business,
Continuous listening strategy: A strategy that captures
Diversity: The condition of being composed of
especially when illegal or considered inhumane.
feedback from team members at regular intervals
many different types of people, particularly a broad
throughout the year.
mix of genders, races, cultures, sexual orientations,
socioeconomic backgrounds and/or abilities.
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INTRODUCTION CLIMATE ACTION CIRCULAR ECONOMY DIGITAL INCLUSION INCLUSIVE WORKFORCE HUMAN RIGHTS TRUST BY THE NUMBERS APPENDIX Dell Technologies FY24 ESG Report 111"
delltechnologies-fy24-esg-report.txt,"splay.
demand for water exceeds the available amount during a
from greenhouse gas emissions.
certain period or when poor quality restricts its use. For
E-waste: Electronic products that are unwanted, not LGBTQ+: An acronym for lesbian, gay, bisexual,
determining water stress, we use the World Resources
working and nearing or at the end of their useful life. transgender and/or queer.
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delltechnologies-fy24-esg-report.txt,"ystem, product, offer or service that involves the and then made into a final product or component.
private sector by enabling companies to set science-based
processing of personal data. Sponsorship: A function of our culture of advocacy;
emissions reduction targets.
influential leader advocating supports scalable talent in
reaching positions of greater influence and responsibility.
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delltechnologies-fy24-esg-report.txt,"y experiencing
Supplier social and environmental responsibility we are referring to two ethnic groups, Black/African
water-related challenges related to water availability,
(Supplier SER): Refers to when a supplier is assigned American and Hispanic/Latino, that have historically been
quality or management. Some of these challenges may
or acknowledges control or ownership of social and underrepresented in the organization compared to the
include water scarcity, flooding, pollution, water stress,
environmental impacts it may have. addressable U.S. workforce in the technology industry."
delltechnologies-fy24-esg-report.txt,"Related Financial Disclosures
the production of crops or generated as waste; has
(TCFD): Created in 2015 to develop climate-related
evaporated, transpired, or been consumed by humans or
financial risk disclosures; businesses and countries are
livestock; or is polluted to the point of being unusable by
increasingly adopting reporting requirements that are
based on the TCFD framework.
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delltechnologies-fy24-esg-report.txt,"ell uses for
9 Emissions savings are scope 1 emissions reductions for the sector implementing the solution; scope 2 emissions reductions for climate assessments.
electricity grid customers; and scope 3 reductions for the organization manufacturing the solution. It is recommended to separately
calculate carbon emissions savings and report with other activities as a collective effort.
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Dexcom-Annual-Sustainability-Report-March-2023.txt,"community 6
Offering patient choice 8
Dexcom G7: Putting customers at the center of innovation 8
Removing barriers to optimal care 10
Introducing Dexcom U 11
Listening to our employees 13
Being intentional about our culture as we grow 14
Shaping how we develop people 17
Supporting our employees and their families 18
Shaping diversity, equity, and inclusion (DEI) 20
think big. 31
Access to healthcare 34
Commitment to a sustainable future 42
Environmental sustainability 42
Product stewardship 52
Community and employee engagement 53"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"arte, CA anyone around them gain awareness of
Age at diagnosis: 24 a condition that so many people live and
deal with.”
5DexCom, Inc. Sustainability Report
lliisstteenn think big be dependable serve with integrity
MARCH 2023
Active participation within
the diabetes community
We listen to the feedback of the diabetes community to understand
how we can best advocate for their needs.
This commitment includes our direct support of nonprofit organizations and clinical research, as well as our active
encouragement of Dexcom employee participation within the diabetes community. Below are some of the highlights of"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"niversity
Bri Carrasquillo Isaac Traudt Jarod Verkleeren Leo Giannoni
Lacrosse Basketball Wrestling Basketball
Yale University University of Virginia University of Virginia Columbus State University
Paris Husic Carly Graham
Track + Field Volleyball
Wake Forest University Rice University
1122DexCom, Inc. Sustainability Report
lliisstteenn think big be dependable serve with integrity
MARCH 2023
Listening to our Each year, we conduct surveys that empower
our employees to voice their opinions about
employees their Dexcom experience. We utilize Employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"University of Virginia Columbus State University
Paris Husic Carly Graham
Track + Field Volleyball
Wake Forest University Rice University
1122DexCom, Inc. Sustainability Report
lliisstteenn think big be dependable serve with integrity
MARCH 2023
Listening to our Each year, we conduct surveys that empower
our employees to voice their opinions about
employees their Dexcom experience. We utilize Employee
Experience Pulse Surveys (1-3 per year), Lifecycle
Surveys, which request feedback at specific
moments in the employee lifecycle, and a broader"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ability Report
lliisstteenn think big be dependable serve with integrity
MARCH 2023
Listening to our Each year, we conduct surveys that empower
our employees to voice their opinions about
employees their Dexcom experience. We utilize Employee
Experience Pulse Surveys (1-3 per year), Lifecycle
Surveys, which request feedback at specific
moments in the employee lifecycle, and a broader
In order for us to continuously
Engagement Survey (every 2-3 years) to measure
attract and retain top talent, we
across nine statements that describe our employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"eys (1-3 per year), Lifecycle
Surveys, which request feedback at specific
moments in the employee lifecycle, and a broader
In order for us to continuously
Engagement Survey (every 2-3 years) to measure
attract and retain top talent, we
across nine statements that describe our employee
make conscious efforts to listen experience vision.
to our employees and foster a
These surveys provide us important insight into the
culture that makes them feel experience of our teams and opportunities to learn
from direct employee feedback. This information"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"der for us to continuously
Engagement Survey (every 2-3 years) to measure
attract and retain top talent, we
across nine statements that describe our employee
make conscious efforts to listen experience vision.
to our employees and foster a
These surveys provide us important insight into the
culture that makes them feel experience of our teams and opportunities to learn
from direct employee feedback. This information
valued for their unique skillsets.
helps inform actions designed to elevate the
employee experience. We conducted two"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ployees and foster a
These surveys provide us important insight into the
culture that makes them feel experience of our teams and opportunities to learn
from direct employee feedback. This information
valued for their unique skillsets.
helps inform actions designed to elevate the
employee experience. We conducted two
company-wide pulse surveys in 2022.
The results indicated high engagement
levels across the organization and a very
strong connection between our employees
and the company mission.
Additionally, we saw notable improvement in employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"13DexCom, Inc. Sustainability Report
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Being intentional about our
culture as we grow
Our workforce has gone through a signifcant evolution over the past two
years. For example, over this time:
We hired nearly half of the Our remote population has tripled,
company and one third of our expanding our pool of talent more
leadership team than ever before and allowing
greater flexibility for employees
Less than 40% of the company is
Our EMEA employee base has"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"consistency across our
organization.
We want our employees, regardless of team or
location, to feel connected to a high-performing
culture that helps them feel valued and
empowered to flourish and advance. As a result,
we instituted cultural programs this past year to
ensure that this level of focus exists throughout
our company.
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In 2022, we put an emphasis on
developing global leadership,
Dexcom Employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"I work closely with my manager to
hybrid work model this past year to develop myself and my career.
enable employees to work in their I can be myself.
preferred setting.
This job allows me to take care of
myself and my family.
As part of this, we provided virtual training and offered
When my journey at Dexcom is
support to teams who wish to operate in a hybrid
complete, I feel good recommending it
environment with greater success. These efforts align with
to friends and family as a great place
our goal to create an optimized workplace and employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ear to develop myself and my career.
enable employees to work in their I can be myself.
preferred setting.
This job allows me to take care of
myself and my family.
As part of this, we provided virtual training and offered
When my journey at Dexcom is
support to teams who wish to operate in a hybrid
complete, I feel good recommending it
environment with greater success. These efforts align with
to friends and family as a great place
our goal to create an optimized workplace and employee
to work.
experience, regardless of whether an employee is working in"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"lt an extensive library of
development offerings to support the
At this time, our employees
personal and professional growth of our
have completed over
workforce, empowering employees at
32,000 hours
all levels to advance their skillsets and
knowledge base.
dedicated to this learning.
Because there is no one-size-fits-all approach to career
development, we continue to evolve our curriculum to meet
the needs of our diverse workforce.
In addition to live, interactive
educational experiences, each
employee has unlimited access to"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"arning initiatives, of support and development across all levels,
encouraging leader and peer recommendations, functions, and regions. We also launched our
and using targeted marketing of this resource Learning Management System, allowing employees
throughout the organization. and leaders to easily access and track technical,
professional, and compliance trainings. We will
continue to foster a culture of continuous education
This has resulted in our and design innovative learning experiences to
employees completing over support employee growth across the organization."
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ne-on-one therapy sessions, eight Through the Inspire platform, employees can invite up to
one-on-one coaching sessions, unlimited group support ten family members and friends to participate in healthy
sessions, a library of self-paced digital courses, meditation habits, challenges, educational opportunities, and more.
programs, and more. Additionally, Dexcom organizes company-wide steps
challenges each year and offers unlimited on-demand
fitness, nutrition, mindfulness, and meditation classes.
Employee Assistance Program"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"eight Through the Inspire platform, employees can invite up to
one-on-one coaching sessions, unlimited group support ten family members and friends to participate in healthy
sessions, a library of self-paced digital courses, meditation habits, challenges, educational opportunities, and more.
programs, and more. Additionally, Dexcom organizes company-wide steps
challenges each year and offers unlimited on-demand
fitness, nutrition, mindfulness, and meditation classes.
Employee Assistance Program
We have implemented a no-cost, 24/7 employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"resources for
CGM Discount Program
improving communication; relationship counseling; coping
with loneliness; understanding grief; dealing with stress, In several countries, we offer employees and their
anxiety, and depression; and crisis support. The program immediate family access to Dexcom’s continuous glucose
also offers work/life resources such as debt counseling, monitoring systems at a discounted rate through our CGM
legal assistance, and childcare and eldercare options. discount program.
*Employee eligibility for certain non-salary benefits may be informed by and will follow local regulations and practices. In certain countries, this means we"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"nitoring systems at a discounted rate through our CGM
legal assistance, and childcare and eldercare options. discount program.
*Employee eligibility for certain non-salary benefits may be informed by and will follow local regulations and practices. In certain countries, this means we
cover all full-time employees and certain part-time employees working more than a certain number of hours.
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Employee Stock Purchase Plan (ESPP) Level2"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"In certain countries, this means we
cover all full-time employees and certain part-time employees working more than a certain number of hours.
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Employee Stock Purchase Plan (ESPP) Level2
We provide US, Canada, UK, and Ireland employees the We offer our US employees the choice of several
opportunity to become shareholders of Dexcom through health plans, including the Level2 program, through
our Employee Stock Purchase Plan. Our ESPP allows UnitedHealthcare. Level2 is a health plan designed"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"eland employees the We offer our US employees the choice of several
opportunity to become shareholders of Dexcom through health plans, including the Level2 program, through
our Employee Stock Purchase Plan. Our ESPP allows UnitedHealthcare. Level2 is a health plan designed
individuals to purchase Dexcom stock at a discount to specifically to support individuals with type 2 diabetes.
market value. This enables our employees to share in the This forward-thinking program provides participants with
growth of our company, and further aligns our employee a Dexcom CGM System, an activity tracker, and ongoing"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"the program, they have the means
to do so while receiving a portion of their pay through
UNITED STATES
wage replacement.
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Shaping diversity, equity, and inclusion (DEI)
We believe that an inclusive workplace is one that encourages diversity of
thought, culture, and background.
We strive to empower employees to build an environment where diverse perspectives are voiced and heard. Cultivating
an inclusive employee culture is a foundational element of delivering world-class customer experiences for our diverse"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"lity Report
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MARCH 2023
Shaping diversity, equity, and inclusion (DEI)
We believe that an inclusive workplace is one that encourages diversity of
thought, culture, and background.
We strive to empower employees to build an environment where diverse perspectives are voiced and heard. Cultivating
an inclusive employee culture is a foundational element of delivering world-class customer experiences for our diverse
CGM users and stakeholders.
We experienced another year of organizational growth in 2022. Our employee base grew in size and representation as"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"rkplace continues to evolve, we find ourselves with access to talent in more
places than ever before. This has provided us even greater levels of diversity across our organization and helped advance
our broader DEI conversation. Our employees expanded their foundational DEI education this past year as we explored
discussion around allyship, gender identity, cultural nuances, and more.
By the end of 2022—the second full year on our formalized DEI journey—we are seeing
progress in multiple areas:
Employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ed their foundational DEI education this past year as we explored
discussion around allyship, gender identity, cultural nuances, and more.
By the end of 2022—the second full year on our formalized DEI journey—we are seeing
progress in multiple areas:
Employee
Representation Resource Groups
Outreach
Fostering
Advancing Inclusiveness
Equity and Belonging
20DexCom, Inc. Sustainability Report
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In 2022, our overall racial and ethnic
diversity employee mix held steady"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"re, but also because it helps us to better positive culture change within Dexcom
understand and serve our increasingly diverse customer
base across the globe.
We also invited our employees to take a deeper dive with courses exploring specific DEI
topics, such as:
01 Communicating Across Generations 04 Introduction to Cultural Competencies:
Working in a Global Environment
02 Gender Identity - Understanding Pronouns 05 How to Be an Ally
03 Introduction to Neurodiversity and Invisible Disabilities
How Employee Resource Groups"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"change within Dexcom
understand and serve our increasingly diverse customer
base across the globe.
We also invited our employees to take a deeper dive with courses exploring specific DEI
topics, such as:
01 Communicating Across Generations 04 Introduction to Cultural Competencies:
Working in a Global Environment
02 Gender Identity - Understanding Pronouns 05 How to Be an Ally
03 Introduction to Neurodiversity and Invisible Disabilities
How Employee Resource Groups
(ERGs) are shaping our culture
Employee Resource Groups are voluntary, employee-led groups"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"help create connection and
belonging at our organization.” - Kevin Sayer
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NEWLY ALIGNED ERG ECOSYSTEM
Our goal has been to:
Over the past year, Global ABLE WIN+
our ERGs have ERGs Dexcom Disability Women’s Initiative
Resource Group Network
evolved.
Regional chapters have been DAAN PRIDE
Dexcom African
established for some of our biggest LGBTQ+
American Network
ERGs like WIN+ and PRIDE. For
example, in response to employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"EVENTS FROM 2022
Through the leadership of PRIDE
ERG, Dexcom was a proud
sponsor and participant in the
San Diego Pride parade
SAN DIEGO
Through the leadership of the PRIDE ERG, Dexcom was a proud
sponsor and participant in the San Diego Pride parade.
This was our inagural company appearance at the San Diego Pride parade. We had over 100 people who
represented Dexcom including employees, families, and friends.
We saw a strong response to our participation from both employees and the community:
Our booth was run by more than 20 employee volunteers and received approximately 4,000 visitors, many of whom"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"other
multinational companies.
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Our Dexcom African Ancestry Network
sponsored a summit for People of
Color Living with Diabetes
and hosted a Dexcom Diversity Dialogue event exploring
Racial Representation in Healthcare with Dexcom Warrior,
Kylene Redmond.
As part of our DEI initiatives, Dexcom became a sponsor of
Dexcom encourages community 50/50 Women on Boards™
engagement through targeted
This sponsorship included employee participation in the annual"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"from our CGM
technology, including those who manage their diabetes
using intensive insulin therapy and those who do not.
Therefore, we continue to enhance our product offerings,
assess efficient ways to drive access, and extend the
benefits of our technology to new populations.
‡ If your glucose alerts and readings from Dexcom CGM do not match
your symptoms or expectations, use your blood glucose meter to
make diabetes treatment decisions.
CONTENTS
01 Access to healthcare 04 Product stewardship
02 Commitment to a sustainable future 05 Community and employee engagaement"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"electronics
We gathered baseline packaging waste data in 2022 to help us learn from our current processes and analyze how to take
more targeted action. Recycling will be part of the solution, but we continue to champion the belief that source reduction
may prove to be a more effective method.
52DDeexxCCoomm,, IInncc.. SSuussttaaiinnaabbiilliittyy RReeppoorrtt
lliisstteenn ttthhhiiinnnkkk bbbiiiggg bbee ddeeppeennddaabbllee sseerrvvee wwiitthh iinntteeggrriittyy
MMAARRCCHH 22002233
Community and
employee engagement"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"red baseline packaging waste data in 2022 to help us learn from our current processes and analyze how to take
more targeted action. Recycling will be part of the solution, but we continue to champion the belief that source reduction
may prove to be a more effective method.
52DDeexxCCoomm,, IInncc.. SSuussttaaiinnaabbiilliittyy RReeppoorrtt
lliisstteenn ttthhhiiinnnkkk bbbiiiggg bbee ddeeppeennddaabbllee sseerrvvee wwiitthh iinntteeggrriittyy
MMAARRCCHH 22002233
Community and
employee engagement
Our employee base has proven"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"zation. We aim to
build upon this enthusiasm by
encouraging employees to share
their voices and work collectively
In April 2022, Dexcom hosted its first annual
to create a more sustainable Earth Day Fair at our facilities in Mesa and
environment. San Diego. These events provided updates on
Dexcom sustainability initiatives and hosted
external experts to educate on practices for
more sustainable living.
Green As part of the event, donation
drives collected over:
Team
1,300 pounds
of usable goods
In 2021, a new Employee Resource Group"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"duct highest-risk tasks across engineering and administrative
safety inspections of their work areas, report any concerns controls. When new equipment is introduced, our
or recommendations for improvement, and help promote ergonomic team is engaged throughout the entire design,
safety awareness. ASRs are provided training in CPR, first implementation, and use processes. Recurring
aid, and fire extinguisher use so that they can serve as a risk assessments are then performed to identify key risks
safety resource in an emergency. and implement timely solutions. Employee engagement"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"be needed
for larger groups. We’ve hosted six onsite vaccine/booster clinics at US
manufacturing facilities, open to employees, friends,
Offering onsite testing at US manufacturing facilities. and family.
58listen think big be dependable serve with integrity
be dependable.
Dexcom seeks to exemplify quality in all
aspects of the organization.
While our end goal is the production of the highest-caliber CGM devices that
empower people to take control of health, achieving this goal requires an even
broader approach. It requires us to foster a culture where every Dexcom employee"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"tion and will no longer serve on
the Board following the date of the Annual Meeting.
65DexCom, Inc. Sustainability Report
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Dexcom
compliance program
Dexcom promotes an organizational
culture that encourages ethical
conduct and adherence to applicable
laws and regulations.
The Code of Conduct, which is available in multiple languages, serves as the foundation for our program, providing a key
resource for the development and accountability of our employee base."
Dexcom-Annual-Sustainability-Report-March-2023.txt,"23
Dexcom
compliance program
Dexcom promotes an organizational
culture that encourages ethical
conduct and adherence to applicable
laws and regulations.
The Code of Conduct, which is available in multiple languages, serves as the foundation for our program, providing a key
resource for the development and accountability of our employee base.
The compliance department also maintains several programs that encourage employees
to learn, speak up, and ask questions:
Commitment to
Multiple compliance
Employee training"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ing several climate-related sustainability initiatives
at our organization. We will work to provide our customers appropriate visibility into these efforts so
c. Describe the resilience of they can appreciate our product not only for helping them live healthier lives, but also for being
the organization’s strategy, sustainably produced.
taking into consideration
• Similarly, we see an opportunity for our environmental efforts to help us attract and retain talent at our
different climate-related
organization. Our customer-centric mission has produced a passionate employee base as displayed"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"priate emissions targets based on the
company’s baselined data established in 2022. We aim to reduce GHG emissions across our operations
and supply chain, and we want to be thoughtful about how we achieve this objective.
# Metric tons
** Not Available (data not tracked)
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EEO-1 Data
Starting this year, we will begin disclosing our Equal Employment
Opportunity (EEO-1) survey data on an annual basis.
Please note that the EEO-1 survey segments our employee base in leadership categories that differ from our"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"ramed this year’s Sustainability Report using these values to
demonstrate the inherent connection between sustainability and strategy across our organization.
I’m very proud of the progress our company has made over the past year in our sustainability reporting. This year’s
publication provides enhanced reporting on our environmental initiatives, including our inaugural greenhouse gas
emissions disclosure and Task Force on Climate-Related Financial Disclosures (TCFD) Index. We also expanded our
human capital reporting to provide greater transparency into our efforts to create a workforce characterized by its"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"nability reporting. This year’s
publication provides enhanced reporting on our environmental initiatives, including our inaugural greenhouse gas
emissions disclosure and Task Force on Climate-Related Financial Disclosures (TCFD) Index. We also expanded our
human capital reporting to provide greater transparency into our efforts to create a workforce characterized by its
diversity, equity, and inclusion. This includes our first annual disclosure of our EEO-1 data, which provides insight into the
composition of our US workforce. In addition, we took significant steps to display our dedication to pay equity, including"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"022
I am proud to work for Dexcom 89% 90%
I can see a clear link between 87% 89%
my work and Dexcom’s mission
My work gives me a feeling of 78% 83%
personal accomplishment
I receive feedback from my manager that 76% 79%
helps me improve my performance
I can manage my job responsibilities in a way
69% 78%
that enables a healthy work-life balance
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Being intentional about our
culture as we grow
Our workforce has gone through a signifcant evolution over the past two"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"us and priorization...
...and innovation. 84%
Every one of us is an innovator.
favorable Trust Index Average
In 2022,
92%
of employees said they feel
proud to tell others that they
work at Dexcom Canada
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Shaping how we develop people
We’ve built an extensive library of
development offerings to support the
At this time, our employees
personal and professional growth of our
have completed over
workforce, empowering employees at"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"enn think big be dependable serve with integrity
MARCH 2023
Shaping how we develop people
We’ve built an extensive library of
development offerings to support the
At this time, our employees
personal and professional growth of our
have completed over
workforce, empowering employees at
32,000 hours
all levels to advance their skillsets and
knowledge base.
dedicated to this learning.
Because there is no one-size-fits-all approach to career
development, we continue to evolve our curriculum to meet
the needs of our diverse workforce."
Dexcom-Annual-Sustainability-Report-March-2023.txt,"When we established DEI as a corporate increase in the percentage of
objective for Dexcom, we built an internal
women and people who identify as
framework to help advance and measure this
important goal. While still early in our journey, ethnic minorities at the Director level
we are already seeing progress as we work to
and above.
create sustainable change at our organization.
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32% 62% 70%
of US leaders identify as of our workforce in the US identifies of our 2022 internship class"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"wo years we used our
internship program as a pipeline for
diverse emerging talent.
of global leaders are female
As of December 31, 2022,
Ethically Diverse
Country Female Male Grand Total
we had approximately (US Only)†
7,600 United States 2,323 2,906 5,229 3,276
Full-time employees
Non-United States
1,289 1,089 2,378 N/A
(OUS)
600
Contract and Grand Total 3,612 3,995 7,607 3,276
temporary employees
We look forward to
updating you as we
progress with our
DEI initiatives and
strengthen our global
workforce.."
Dexcom-Annual-Sustainability-Report-March-2023.txt,"opment, including coaching with Emerging Leaders GOLD
360-degree feedback and curated sessions with senior
Development Program
leaders. This has proven to be a great opportunity to
promote advancement and help these individuals develop Global Organizational Leadership and Diversity
into the future leaders of the company.
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We believe that people
Committed to pay equity in
should receive equal
our workforce"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"2019 Since 2019, we have proactively reviewed
gender and ethnicity pay equity for our
US employees in the same or similar roles,
taking into account legitimate business
factors that may explain differences,
and incorporated these findings into our
compensation assessment cycles.
2021 We expanded this review in 2021 to
include global employees with respect
to gender.
2023 To further advance this effort, we plan to
work with an external consultant this year
to conduct an adjusted pay gap analysis
of our workforce with respect to gender"
Dexcom-Annual-Sustainability-Report-March-2023.txt,"issions across our operations
and supply chain, and we want to be thoughtful about how we achieve this objective.
# Metric tons
** Not Available (data not tracked)
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EEO-1 Data
Starting this year, we will begin disclosing our Equal Employment
Opportunity (EEO-1) survey data on an annual basis.
Please note that the EEO-1 survey segments our employee base in leadership categories that differ from our
internal framework. Data from our most recent EEO-1 survey, reflecting our workforce at the end of 2021, is displayed"
DVN_2024_SustainabilityReport.txt,"nagement
SR-Enterprise Risk Management, SR-Ethics and Integrity, SR-Emergency Preparedness
SOC-3: Security and human rights SR-Human Rights
Ethics and Compliance Hotline, Form 10-K, Anti-Corruption Policy, Code of Business Conduct and
GOV-3: Preventing corruption Ethics, Code of Ethics for the Principal Executive Officer-Chief Financial Officer-Chief Accounting SOC-4: Site-based labor practices and Code of Business Conduct and Ethics, SR-Safety & Security Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion"
DVN_2024_SustainabilityReport.txt,"l Workforce Reporting
Contents
We’re proud to highlight our efforts to set high
standards as a neighbor, community partner,
environmental steward and employer.
OVERVIEW ENVIRONMENT SAFETY & SECURITY GOVERNANCE SOCIAL WORKFORCE
THE OVERVIEW SECTION INCLUDES THE ENVIRONMENT SECTION INCLUDES THE SAFETY & SECURITY SECTION INCLUDES THE GOVERNANCE SECTION INCLUDES THE SOCIAL SECTION INCLUDES THE WORKFORCE SECTION INCLUDES
About This Report 2 Overview 12 Overview 36 Overview 49 Overview 61 Overview 76
CEO Letter 4 Climate Change 19 Workforce Safety 37 Corporate Governance 50 Community Engagement 62 Our Employee Experience 77"
DVN_2024_SustainabilityReport.txt,"vocacy,
corporate governance/enterprise risk management, water,
The process also included a full-day, in-person workforce safety, cybersecurity, and diversity, equity and
workshop at Devon’s corporate headquarters. inclusion (DEI). Additional topics of reporting interest to
Participants included leaders of Devon’s operations, Devon and our stakeholders include: land conservation/
4
sustainability, environmental, safety, corporate biodiversity, stakeholder engagement, corporate culture/ Disclose
governance, investor relations, human resources, legal, human capital, employee retention, road safety and O utline the process"
DVN_2024_SustainabilityReport.txt,"increased our focus on leaders. The board’s phenomenal feedback about the
Oil and Gas Methane Partnership 2.0 program for evolving voluntary and regulatory disclosure programs. well-being and access to mental health resources to high quality of our team bodes well for our ability to
our implementation plan for methane emissions After extensively testing and piloting multiple innovative enable employees to bring their best efforts to Devon create long-term shareholder value. I’m grateful to the
reporting methane detection technologies, we also deployed every day. Every employee receives Devon stock to board for their support for the Devon team."
DVN_2024_SustainabilityReport.txt,"e solution. I believe that having the
Expanding mental health benefits and launching strong communities where we operate. In 2023, this
courage to strike a balance and engage with a wide
mental health awareness training for leaders included awarding 28 DEI Community Grants to diverse Richard E. “Rick” Muncrief
variety of stakeholders is good for our company,
Achieving the Top Performer designation in community organizations in each of the five states that industry and country. President and CEO
employee wellness on the JUST Jobs Scorecard we operate."
DVN_2024_SustainabilityReport.txt,"th,
Opened STEM centers in 23 elementary schools
Implemented our internally developed carbon personal and family needs.
and four middle schools, bringing our total to 161
accounting platform that improves our emissions
STEM centers across the company since 2021. Increased professional and leadership learning
data precision and reporting methodologies for new
opportunities grounded in Devon’s values and
Impacted 121,606 students and 5,845 teachers
regulatory and voluntary reporting requirements.
employee feedback."
DVN_2024_SustainabilityReport.txt,"hieved a year-over-year 7% reduction in GHG virtual counseling. We also continued our focus on
Mexico Delaware Basin nonprofits in 2022 to $280,000
2023 POLITICAL ACTIVITY & LOBBYING REPORT emissions intensity and 6% reduction in methane mental health in field safety engagements.
and in-kind donations to nonprofits in Oklahoma City
emissions intensity.
and all five of our operating areas in 2023. Progressed a wide range of policies and programs
to reduce bias and improve equity and consistency.
Donations under our Employee Gift Match Program"
DVN_2024_SustainabilityReport.txt,"ibly and within regulatory
All Devon employees and contractors are
requirements. The protocol establishes conditions
responsible for managing waste, and we
to address health and safety considerations of our
encourage them to minimize the waste they
employees, contractors and the environment, including
create, and reuse and recycle materials
guidelines to reduce potential exposure to NORM.
whenever possible.
Devon provides NORM awareness training for any
Our work can generate waste designated as
employee who works at a facility where NORM is"
DVN_2024_SustainabilityReport.txt,"When a spill does occur, we remediate, investigate the
storage equipment, including an annual spill response
cause and take corrective action to prevent recurrence.
training exercise and briefing. Devon requires our
Devon often performs in-situ remediation using naturally
contractors to meet or exceed the standards in our
occurring microorganisms to remediate and restore
SPCC protocol.
impacted soils when feasible. This method also reduces
the likelihood of introducing invasive weeds and plants
We make every employee and contractor aware of their"
DVN_2024_SustainabilityReport.txt,"uscitation (CPR),
throughout our operations to safeguard the people working at our worksites and neighbors nearby. automated external defibrillator (AED) and first aid.
VALUE CHAIN ENGAGEMENT
Continued investing in our Hearts & Minds program
in 2023 through workshops and on-boardings that
Safety Performance Metrics impacted 636 employees and contractors.
The United Nations has established 17 2021 2022 2023
In 2023, developed and conducted our first Hearts &
Sustainable Development Goals (SDGs).
They’re part of a globally agreed-upon action Fatalities (Employee and contractor workforce) 0 1 1 Minds workshop in Spanish focused on strengthening"
DVN_2024_SustainabilityReport.txt,"ED) and first aid.
VALUE CHAIN ENGAGEMENT
Continued investing in our Hearts & Minds program
in 2023 through workshops and on-boardings that
Safety Performance Metrics impacted 636 employees and contractors.
The United Nations has established 17 2021 2022 2023
In 2023, developed and conducted our first Hearts &
Sustainable Development Goals (SDGs).
They’re part of a globally agreed-upon action Fatalities (Employee and contractor workforce) 0 1 1 Minds workshop in Spanish focused on strengthening
plan for organizations seeking to provide Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53 relationships and trust with our Spanish-speaking"
DVN_2024_SustainabilityReport.txt,"pacted 636 employees and contractors.
The United Nations has established 17 2021 2022 2023
In 2023, developed and conducted our first Hearts &
Sustainable Development Goals (SDGs).
They’re part of a globally agreed-upon action Fatalities (Employee and contractor workforce) 0 1 1 Minds workshop in Spanish focused on strengthening
plan for organizations seeking to provide Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53 relationships and trust with our Spanish-speaking
affordable energy, produced responsibly to TRIR - Employee 0.58 0.56 0.75 contractors."
DVN_2024_SustainabilityReport.txt,"action Fatalities (Employee and contractor workforce) 0 1 1 Minds workshop in Spanish focused on strengthening
plan for organizations seeking to provide Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53 relationships and trust with our Spanish-speaking
affordable energy, produced responsibly to TRIR - Employee 0.58 0.56 0.75 contractors.
protect the environment, while also promoting
TRIR - Contractor 0.48 0.53 0.50
peace and prosperity for all people. In this report,
we have identified a wide variety of Devon’s Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07 Regularly participate and assist in facilitating industry"
DVN_2024_SustainabilityReport.txt,"mployee + Contractor) 0.50 0.53 0.53 relationships and trust with our Spanish-speaking
affordable energy, produced responsibly to TRIR - Employee 0.58 0.56 0.75 contractors.
protect the environment, while also promoting
TRIR - Contractor 0.48 0.53 0.50
peace and prosperity for all people. In this report,
we have identified a wide variety of Devon’s Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07 Regularly participate and assist in facilitating industry
business activities that align with the U.N. SDGs. Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30 peer roundtables, basin-specific work groups and"
DVN_2024_SustainabilityReport.txt,"8 0.53 0.50
peace and prosperity for all people. In this report,
we have identified a wide variety of Devon’s Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07 Regularly participate and assist in facilitating industry
business activities that align with the U.N. SDGs. Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30 peer roundtables, basin-specific work groups and
Here in the safety and security section, look for:
DART Incident Rate - Employee 0.34 0.17 0.30 events such as the Onshore Safety Alliance for the"
DVN_2024_SustainabilityReport.txt,"st in facilitating industry
business activities that align with the U.N. SDGs. Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30 peer roundtables, basin-specific work groups and
Here in the safety and security section, look for:
DART Incident Rate - Employee 0.34 0.17 0.30 events such as the Onshore Safety Alliance for the
DART Incident Rate - Contractor 0.32 0.37 0.31 purpose of safety-related learning and sharing.
Decent Work and Economic Growth
page 41
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15"
DVN_2024_SustainabilityReport.txt,"N. SDGs. Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30 peer roundtables, basin-specific work groups and
Here in the safety and security section, look for:
DART Incident Rate - Employee 0.34 0.17 0.30 events such as the Onshore Safety Alliance for the
DART Incident Rate - Contractor 0.32 0.37 0.31 purpose of safety-related learning and sharing.
Decent Work and Economic Growth
page 41
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15
LTIR - Employee 0.29 0.11 0.20 DEVON’S GOALS"
DVN_2024_SustainabilityReport.txt,"he Onshore Safety Alliance for the
DART Incident Rate - Contractor 0.32 0.37 0.31 purpose of safety-related learning and sharing.
Decent Work and Economic Growth
page 41
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15
LTIR - Employee 0.29 0.11 0.20 DEVON’S GOALS
LTIR - Contractor 0.17 0.16 0.15 Set 2024 corporate safety goals focused on SIF exposure
Preventable Vehicle Incident Rate (per million miles) 2.37 1.96 2.28 that account for 15% of the overall corporate scorecard.
Employee Hours (million) 4.2 3.6 4.0"
DVN_2024_SustainabilityReport.txt,"Contractor 0.17 0.16 0.15 Set 2024 corporate safety goals focused on SIF exposure
Preventable Vehicle Incident Rate (per million miles) 2.37 1.96 2.28 that account for 15% of the overall corporate scorecard.
Employee Hours (million) 4.2 3.6 4.0
Contractor Hours (million) 22.8 26.9 36.7
EXCEL DOWNLOAD
36 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety
Strengthening our culture and relationships
Every leader, employee and contractor at Devon senior leaders oversee safety policy and"
DVN_2024_SustainabilityReport.txt,"and contractors are our drilling, completions and workover teams recognize
and health at work and at home. We’ve learned from
our field leaders that transparent communications,
positive safety behaviors, proactive reporting and safely
meeting operational goals are both signs and outcomes
of a healthy EHS culture. The council assesses our
EHS culture regularly to identify the most effective
approaches and programs to foster strong safety
1 4
performance.
2024 Health and Safety (H&S)
Focus Areas
We begin instilling our safety culture on an employee’s"
DVN_2024_SustainabilityReport.txt,"ve reporting and safely
meeting operational goals are both signs and outcomes
of a healthy EHS culture. The council assesses our
EHS culture regularly to identify the most effective
approaches and programs to foster strong safety
1 4
performance.
2024 Health and Safety (H&S)
Focus Areas
We begin instilling our safety culture on an employee’s
first day on the job. During new-hire orientation, they
2 3
learn the safety behaviors we expect and incorporate Simplify and clarify H&S Optimize workover
into the employee appraisal process: visible commitment, corporate goal metric rig process"
DVN_2024_SustainabilityReport.txt,"guage other than English
at home.* To engage workers on our locations
who speak English as a second language,
We adapt the content to meet the needs of our
our operations team in the Delaware Basin
workforce and business. In recent years, this led us to
developed a Spanish-language Hearts & Minds
initiate honest discussions about mental health and
workshop and delivered it in 2023. The focus
tools to address mental health issues, including Devon’s
is on building relationships and trust with the
Employee Assistance Program and suicide prevention"
DVN_2024_SustainabilityReport.txt,"y leaders apply We donated Stop the Bleed training kits
response capabilities. By training smarter, reducing the incident management process to a large-scale to emergency responders in all of our
operating areas
costs, connecting departments and streamlining technology project.
processes, the team helped create efficiencies in Our recruitment efforts resulted in a 26%
multiple areas of the company. Devon plans to conduct incident management trainings increase in volunteer floor wardens who help
support employee life safety and establish"
DVN_2024_SustainabilityReport.txt,"program. The Compensation Committee oversees integrating sustainability the board with its duties and
(NYSE) listing standards and Securities and Exchange determines the compensation for into strategic and tactical business responsibilities in the declaration and
Commission (SEC) regulations. As of June 2024, ten of 11 Devon’s senior executives and activities. payment of dividends on Devon’s
(91%) of Devon board members qualified as independent. provides oversight of the company’s common stock.
employee benefit programs."
DVN_2024_SustainabilityReport.txt,"ork
of our investors and other stakeholders prefer this additional public disclosures we could make to target
P articipating in CDP climate reporting for 19
in setting strategy, establishing goals and integrating
international, multi-industry-led initiative for voluntary our reporting on the information that is most meaningful
consecutive years.
sustainability into our business activities. Our ESG/
disclosure of climate-related risk. We continue to share for shareholders and other stakeholders.
EHS and sustainability teams coordinate related efforts T ying employee bonus compensation to ESG"
DVN_2024_SustainabilityReport.txt,"president and general counsel, vice president of
corporate services and associate general counsel, and
Establishing high standards director of HR business partners. The team makes
quarterly reports to the Audit Committee to help identify Ethics and Compliance Helpline metrics
Our code sets out the basic principles for legal and
issues that might need additional monitoring or require
ethical conduct for each Devon director, officer and
ETHICS AND COMPLIANCE HELPLINE
training to raise awareness.
employee, and guides how we fulfill our responsibilities"
DVN_2024_SustainabilityReport.txt,"or organizations seeking to provide affordable the reach and effectiveness of our social investments.
energy, produced responsibly to protect the our total to 161 STEM centers across the from $268,000 and in-kind donations
Devon advocates for tribal traditions, community
environment, while also promoting peace and company since 2021. to Oklahoma City and the New Mexico
development and youth programs where we
prosperity for all people. In this report, we have
Delaware Basin nonprofits in 2022 to
identified a variety of Devon’s business activities operate. Our employee volunteers show their In partnership with the Cal Ripken, Sr"
DVN_2024_SustainabilityReport.txt,"d by enriching our communities. In our City’s Special Care for students with
page 67
relationships and engagements, we’re committed to special needs. Committed $825,000 to our Thunder
work with integrity, earn trust, empower others and
Fellows partnership that focuses on
keep improving. For the first time, our partner school in
mentoring and education for diverse
Oklahoma City, Mark Twain Elementary
students.
We’re responsive to our community stakeholders School, received the top grade given to
and available to handle any concerns we receive in any Oklahoma City Public School based Donations under our Employee Gift"
DVN_2024_SustainabilityReport.txt,"all their STEM learning culminating in
an additional 20 projects receiving gold ranking, the the Scissortail Kite Festival. Jal, New Mexico,
highest available at the national contest. School Rocketry Program
In this annual competition, Devon pays for
students to travel to Houston to present
their rocket designs to a team from NASA.
69 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Philanthropy
Enhancing quality of life
Vital social services and opportunities to In New Mexico, we participate in the annual National Matching employee giving"
DVN_2024_SustainabilityReport.txt,"al. Jal, New Mexico,
highest available at the national contest. School Rocketry Program
In this annual competition, Devon pays for
students to travel to Houston to present
their rocket designs to a team from NASA.
69 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Philanthropy
Enhancing quality of life
Vital social services and opportunities to In New Mexico, we participate in the annual National Matching employee giving
enjoy arts, culture and nature help make our Public Lands Day, a project to repair and restore public Devon launched our Employee Gift Match Program"
DVN_2024_SustainabilityReport.txt,"rs’ support
Bureau of Land Management (BLM) and the nonprofit
community enrichment align with our value of nonprofit organizations that reflect their personal
CEHMM in 2023 on projects to protect ecological
interests, passions and pursuits. The company matches
to make a positive and sustainable impact.
integrity and clean up the Hackberry Try-System Dune
individual contributions through the program up to
Devon is a leading contributor to nonprofit
area in southeast New Mexico. We also supported
$10,000 per employee. In 2023, donations under the"
DVN_2024_SustainabilityReport.txt,"ty Grants) to put our to our first nine new partner $268,000, including to 11 new, program encompassed all of our
diversity, equity and inclusion beliefs into action organizations in Oklahoma City diverse partners in Oklahoma City operating areas in addition to Oklahoma
with community organizations we’d never worked and several 2021 grant recipients City. The program subcommittee
received more than 50 applications
with before. We identify partner organizations with
from qualified nonprofits and
the help of our employee-led DEI Team. Since"
DVN_2024_SustainabilityReport.txt,"and to
overall quality of life where
being a responsible steward of the air, land, water and
we do business makes our
biodiversity value across our operations.
communities stronger.
74 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Cultivating an environment where
employees can be their best
The Workforce section of our
2024 Sustainability Report includes: Resource Links:
Overview 76 Code of Business Conduct and Ethics
Our Employee Experience 77 Mission Statement, Vision Statement"
DVN_2024_SustainabilityReport.txt,"ed by Devon’s values of integrity,
Headcount (total company) 1,6452 1,8602 1,9562 opportunities across the company. We
measure our performance and look for
relationships, courage and results, we strive to create a work environment Minorities as a Percentage of Workforce 1 22% 22% 24%
ways to further align our practices with
Women as a Percentage of Workforce 24% 23% 24% our aspirations.
where our people can give their best effort every day.
Minorities as a Percentage of Leadership 1 15% 17% 17%
Peer employee pay equity"
DVN_2024_SustainabilityReport.txt,"positioned equivalently
(+/-2% relative to the applicable
and sustainable impact. Devon strives to be a caring and 5-9 years 38% 32% 29%
pay grade) to those of male and
connected company where employees are heard, seen and 10-14 years 15% 15% 18% nonminority peers.
The United Nations has established 17 Sustainable Development Goals (SDGs).
valued, and have opportunities to contribute and grow. 15-19 years 8% 9% 10%
They’re part of a globally agreed-upon action plan for organizations seeking to
Employee base pay"
DVN_2024_SustainabilityReport.txt,"h and Well-being their career. We communicate proactively with employees
page 80
about our goals and performance, and we seek employees’ 1 As defined by the U.S. Equal Employment Opportunity Commission.
2 Marginal difference compared to total headcount in EEO-1 due to timing for the calculations.
input and act on their feedback. We’re working to cultivate
Gender Equality
page 82 inclusive, diverse, equitable and respectful communities EXCEL DOWNLOAD
inside and outside our company.
Taking Action
LEARNING AND DEVELOPMENT EMPLOYEE WELL-BEING DIVERSITY, EQUITY AND INCLUSION Increased transparency by disclosing our annual"
DVN_2024_SustainabilityReport.txt,"EL DOWNLOAD
inside and outside our company.
Taking Action
LEARNING AND DEVELOPMENT EMPLOYEE WELL-BEING DIVERSITY, EQUITY AND INCLUSION Increased transparency by disclosing our annual
I ncreased professional and leadership Enhanced our paid time off practices to Progressed a wide range of policies and U.S. Equal Employment Opportunity (EEO-1)
learning opportunities grounded in encourage and support employees to take programs to reduce bias and improve Report for details on our workforce by race,
Devon’s values and employee feedback. time off for health, personal and family needs. equity and consistency. These included ethnicity and gender across EEO Commission"
DVN_2024_SustainabilityReport.txt,"ll as
resources through an expanded network, in expanding diversity, equity and inclusion Met our corporate performance scorecard goal
person visits and virtual counseling. We also (DEI) programming to all employees. to develop new relationships with charitable
continued our focus on mental health in field organizations involved in DEI programming.
safety engagements.
76 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience"
DVN_2024_SustainabilityReport.txt,"desire formal, on-the-job and cross-training, and Corporate teams desire
fulfilling careers, meaningful benefits and
from learning and more hands-on and in-person classroom training including technical, professional, technical, technology
compensation, and a sense of inclusion and leadership and technology training. and data skills training.
development
belonging. Our workforce is central to and drives
our long-term success. We are at our best when
all employees are heard, valued and included.
Employee-focused learning opportunities Partnering with Harvard Corporate Learning, Oklahoma Listening to employees and acting on their feedback"
DVN_2024_SustainabilityReport.txt,"th Harvard Corporate Learning, Oklahoma Listening to employees and acting on their feedback
One of our values includes learning and challenging State University, the University of Oklahoma and LinkedIn Devon surveys our employees at least twice per year Devon’s learning and development approach
ourselves and each other to be the best and deliver Learning, our development opportunities include: to understand their work experiences and continuously
Developing a variety of skills through different
results. Our employee development focuses on improve how we support team performance. In our"
DVN_2024_SustainabilityReport.txt,"ves and each other to be the best and deliver Learning, our development opportunities include: to understand their work experiences and continuously
Developing a variety of skills through different
results. Our employee development focuses on improve how we support team performance. In our
Leadership training to build and reinforce
ways of learning
equipping leaders to support individual and team October 2023 pulse survey, 86% of our employees
fundamental leadership skills at the front line and
performance and growth and to help employees focus responded to questions on employee engagement,"
DVN_2024_SustainabilityReport.txt,"e front line and
performance and growth and to help employees focus responded to questions on employee engagement,
on how they can make an impact every day. m anid d- sle kv ile lsl,
.
and inclusive leadership awareness culture and change, leadership, career development, S K ILLS TO LEARN
inclusion and psychological safety.
Professional training to build technical, business,
We continuously look to build upon these actions and
and financial acumen, and technology skills. Professional Leadership
incorporate feedback from employees. Feedback is Overall employee engagement rose from an already"
DVN_2024_SustainabilityReport.txt,"oyee engagement,
on how they can make an impact every day. m anid d- sle kv ile lsl,
.
and inclusive leadership awareness culture and change, leadership, career development, S K ILLS TO LEARN
inclusion and psychological safety.
Professional training to build technical, business,
We continuously look to build upon these actions and
and financial acumen, and technology skills. Professional Leadership
incorporate feedback from employees. Feedback is Overall employee engagement rose from an already
gathered bi-annually through two all-employee pulse Executive coaching with specific development high rating of 82 to 84, nine points higher than a global"
DVN_2024_SustainabilityReport.txt,"s Overall employee engagement rose from an already
gathered bi-annually through two all-employee pulse Executive coaching with specific development high rating of 82 to 84, nine points higher than a global
surveys. As a result of these surveys, we are able to objectives for improving individual and benchmark. In addition to engagement, employees
better understand what our employees are interested organizational performance. gave the highest scores to leadership expectations Technical Technology
in learning and their focus areas for development. Employee pulse surveys and 360-degree for high performance, leaders seeking employee input"
DVN_2024_SustainabilityReport.txt,"sted organizational performance. gave the highest scores to leadership expectations Technical Technology
in learning and their focus areas for development. Employee pulse surveys and 360-degree for high performance, leaders seeking employee input
feedback to equip leaders to interpret and take and perspectives, making decisions fairly and without
On-the-Job Instructor-led
Our learning strategy directly responds to employees’ action on feedback. favoritism, and being able to successfully balance
desire to develop a variety of professional, technical, their work and personal lives. Employee ratings were"
DVN_2024_SustainabilityReport.txt,"d technical subject matter experts dashboards to help team leaders review, share and act
leaders support learning with coaching, feedback and assess and meet employees’ varied learning and on team-specific findings. Our human resources group
on-the-job application. development needs. reviews the results to identify companywide trends and
opportunities for improvement.
77 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience"
DVN_2024_SustainabilityReport.txt,"(+/-2% relative to the applicable pay grade) employees feel comfortable discussing mental health mental health concerns and equips them to provide
of employees make
more than $20/hour. to those of male and non-minority peers. All Devon concerns and seeking help when needed. Devon’s “It’s a supportive environment for their employees. At the
employees make $20/hour or more. We encourage Okay” initiative was introduced by our CEO to normalize conclusion of the initial sessions in the first quarter
a sharp focus on results by giving every employee the topic. Through short videos, our chief operating of 2024, 64% of Devon leaders at all levels across"
DVN_2024_SustainabilityReport.txt,"ough annual stock officer and other leaders shared personal stories the company in Oklahoma and across the field
awards and the opportunity to receive an annual cash about how mental health issues impacted them and had attended the training. Our new mental health
bonus based on individual performance and Devon’s encouraged employees to seek help when needed. partner, Lyra, is helping us gauge the effectiveness
of the sessions as we continue looking
overall performance on annual corporate goals.
for ways to enhance the employee"
DVN_2024_SustainabilityReport.txt,"ues from the CEO and other leaders.
maintain mental health fitness and access mental
health services when they need them. In addition to
WATCH VIDEO
traditional behavioral health benefits, our medical health
plan offers a cognitive behavioral therapy program to
address anxiety, depression, substance abuse and other
concerns. On-site counseling at Devon’s Oklahoma City
78 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience"
DVN_2024_SustainabilityReport.txt,".
maintain mental health fitness and access mental
health services when they need them. In addition to
WATCH VIDEO
traditional behavioral health benefits, our medical health
plan offers a cognitive behavioral therapy program to
address anxiety, depression, substance abuse and other
concerns. On-site counseling at Devon’s Oklahoma City
78 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience
continued
Employee wellness Devon offers wellness resources to enhance well-"
DVN_2024_SustainabilityReport.txt,"Devon The Doc medical clinic located near our
Devon leads in two categories
headquarters, where employees and their families of JUST Jobs Scorecard
has focused on prevention, convenient tools and
can get a high standard of care and personal
high-quality programs. This has contributed to strong
attention with short wait times. In addition to
productivity and engagement, low absenteeism and The 2024 JUST Jobs Scorecard ranked Devon as a Top Performer
primary and urgent care, the Doc offers onsite
and Top in Industry in the employee wellness category. Devon"
DVN_2024_SustainabilityReport.txt,"Jobs Scorecard
has focused on prevention, convenient tools and
can get a high standard of care and personal
high-quality programs. This has contributed to strong
attention with short wait times. In addition to
productivity and engagement, low absenteeism and The 2024 JUST Jobs Scorecard ranked Devon as a Top Performer
primary and urgent care, the Doc offers onsite
and Top in Industry in the employee wellness category. Devon
high retention rates.
physical therapy, testing and vaccinations, care
received the maximum score for employee wellness, demonstrating"
DVN_2024_SustainabilityReport.txt,"and Top in Industry in the employee wellness category. Devon
high retention rates.
physical therapy, testing and vaccinations, care
received the maximum score for employee wellness, demonstrating
management focused on chronic conditions and
leading practice and/or disclosure across all underlying data points
Employees tell us that our offerings help them improve other services.
tracking health and safety, mitigating harassment and assessing
their health and make healthy lifestyle changes. This
Onsite gym at our headquarters and five field employee satisfaction."
DVN_2024_SustainabilityReport.txt,"in their financial security. The
Telehealth services.
category tracks entry level pay and wealth building opportunities.
Onsite physical exams at our locations in
COST DECREASE Weatherford, Oklahoma, and virtual annual In addition, Devon received the JUST Jobs Builder designation for
physicals provided for employees in Cuero, Texas, companies that are ahead of the pack and building foundational
and Artesia, Hobbs and Carlsbad, New Mexico. disclosures and practices.
Through prudent management of
our health plan and high employee"
DVN_2024_SustainabilityReport.txt,"nd Artesia, Hobbs and Carlsbad, New Mexico. disclosures and practices.
Through prudent management of
our health plan and high employee
Vaccinations at all of our field locations.
engagement in our wellness program,
The JUST Jobs Scorecard is a data-driven tool to help companies
D the av no tn
h
h ea ns
a
k tie op nt
a
h
l
e ava elt rh
a
gca er
.
e
O
c vo es
r
t ts
h
elo pw ae sr
t Programs for prediabetes, diabetes care, diabetes prioritize investments in their workers. It’s designed to support
eight years, Devon’s cost and employee reversal, tobacco cessation and physician-led companies in creating and supporting quality jobs that lead to"
DVN_2024_SustainabilityReport.txt,"er
.
e
O
c vo es
r
t ts
h
elo pw ae sr
t Programs for prediabetes, diabetes care, diabetes prioritize investments in their workers. It’s designed to support
eight years, Devon’s cost and employee reversal, tobacco cessation and physician-led companies in creating and supporting quality jobs that lead to
cost share have remained essentially level,
weight loss. improved recruitment, retention and advancement. In 2023,
while national averages have increased
approximately 59% over the same period.
Employee Assistance Program (EAP) that offers"
DVN_2024_SustainabilityReport.txt,"bs that lead to
cost share have remained essentially level,
weight loss. improved recruitment, retention and advancement. In 2023,
while national averages have increased
approximately 59% over the same period.
Employee Assistance Program (EAP) that offers
JUST Capital ranked Devon #1 in the oil and gas industry for
workers, as well as #1 in the oil and gas industry,
employees and their family members 24/7, free
based on polling of the American public.
access to experienced counselors, up to ten
counseling sessions per employee per year, as well"
DVN_2024_SustainabilityReport.txt,"offers
JUST Capital ranked Devon #1 in the oil and gas industry for
workers, as well as #1 in the oil and gas industry,
employees and their family members 24/7, free
based on polling of the American public.
access to experienced counselors, up to ten
counseling sessions per employee per year, as well
as to financial experts, childcare consultants and
other resources.
79 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience"
DVN_2024_SustainabilityReport.txt,"s and their family members 24/7, free
based on polling of the American public.
access to experienced counselors, up to ten
counseling sessions per employee per year, as well
as to financial experts, childcare consultants and
other resources.
79 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Our Employee Experience
continued
Tools and strategies for financial wellness
Concerns about debt, retirement and other personal
finance issues can affect an employee’s sense of well-"
DVN_2024_SustainabilityReport.txt,"ted Nations member states adopted 17
being. Our financial wellness program offers confidential Sustainable Development Goals in 2015.
and unbiased financial guidance and resources at no We aim to deliver tools and resources
cost to employees. These include third-party financial that support our employees’ pursuit
of healthy lives, stability and well-
assessments and web-based workshops. Employees can
being. Devon takes a holistic approach
also meet one-on-one with a third-party financial expert
to employee wellness, encouraging"
DVN_2024_SustainabilityReport.txt,"us on DEI. As part of this focus, they had honest,
efforts and follows our progress closely. community DEI thought leaders, and engaging more heartfelt conversations about the right things to do to
The DEI Leadership Team of executives and vice employees in the DEI conversation to dispel myths improve DEI at Devon. From these conversations, senior
presidents champions strategies to achieve and build awareness. Most importantly, we are taking leaders formed work groups to consider our approaches
our vision and supports others by coaching, action on feedback and suggestions from employees. on hiring, employee benefits, DEI and leader resources. Inclusion"
DVN_2024_SustainabilityReport.txt,"268,000 and
Prepared diverse candidates for advancement in-kind donations to Oklahoma City and the New
with leadership development and mentoring Mexico Delaware Basin nonprofits in 2022 to
opportunities. $280,000 and in-kind donations to nonprofits in
Oklahoma City and all five of our operating areas in
Launched the Women’s Leadership Learning
2023. See page 71 for more on our DEI Community
Forum, including female Devon directors, to
Grants program.
connect women leaders in exploring leadership
topics and forming a meaningful network to Employee survey ratings for DEI-related survey"
DVN_2024_SustainabilityReport.txt,"IS OF REPORTING GHG EMISSIONS
Volatile Organic Compounds (thousand tonnes) – – 21.9
INDEPENDENT ASSURANCE STATEMENT
Water Usage (million Bbl)7 116 126 150
Recycled (million Bbl) 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9"
DVN_2024_SustainabilityReport.txt,"URANCE STATEMENT
Water Usage (million Bbl)7 116 126 150
Recycled (million Bbl) 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53"
DVN_2024_SustainabilityReport.txt,") 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75"
DVN_2024_SustainabilityReport.txt,"2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07"
DVN_2024_SustainabilityReport.txt,"rnance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30"
DVN_2024_SustainabilityReport.txt,"atalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30
Headcount (total company) 1,6452 1,8602 1,9562
DART Incident Rate - Employee 0.34 0.17 0.30"
DVN_2024_SustainabilityReport.txt,".58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30
Headcount (total company) 1,6452 1,8602 1,9562
DART Incident Rate - Employee 0.34 0.17 0.30
Minorites as a Percentage of Workforce 1 22% 22% 24%
DART Incident Rate - Contractor 0.32 0.37 0.31
Women as a Percentage of Workforce 24% 23% 24%
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15"
DVN_2024_SustainabilityReport.txt,"e + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30
Headcount (total company) 1,6452 1,8602 1,9562
DART Incident Rate - Employee 0.34 0.17 0.30
Minorites as a Percentage of Workforce 1 22% 22% 24%
DART Incident Rate - Contractor 0.32 0.37 0.31
Women as a Percentage of Workforce 24% 23% 24%
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15
MInorities as a Percentage of Leadership 1 15% 17% 17%
LTIR - Employee 0.29 0.11 0.20"
DVN_2024_SustainabilityReport.txt,"ate - Employee 0.34 0.17 0.30
Minorites as a Percentage of Workforce 1 22% 22% 24%
DART Incident Rate - Contractor 0.32 0.37 0.31
Women as a Percentage of Workforce 24% 23% 24%
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15
MInorities as a Percentage of Leadership 1 15% 17% 17%
LTIR - Employee 0.29 0.11 0.20
LTIR - Contractor 0.17 0.16 0.15 Women as a Percentage of Leadership 15% 16% 17%
Preventable Vehicle Incident Rate (per million miles) 2.37 1.96 2.28 Years of Service
Employee Hours (million) 4.2 3.6 4.0 Less than 5 years (percent of headcount) 36% 41% 39%"
DVN_2024_SustainabilityReport.txt,"n industry consensus, together with
SHS-1: Safety, health and security engagement EHS Philosophy, SR-CEO Letter, SR-Report Summary, SR-Operations Overview, SR-Safety & Security
significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and Overview, SR-Workforce Safety, SR-Emergency Preparedness
sustainability reporting. SHS-2: Workforce and community health Form 10-K, EHS Philosophy, SR-Water Management, SR-Waste Management, SR-Safety & Security
Workforce Protection Overview, SR-Workforce Safety, SR-Our Employee Experience"
DVN_2024_SustainabilityReport.txt,"nagement
SR-Enterprise Risk Management, SR-Ethics and Integrity, SR-Emergency Preparedness
SOC-3: Security and human rights SR-Human Rights
Ethics and Compliance Hotline, Form 10-K, Anti-Corruption Policy, Code of Business Conduct and
GOV-3: Preventing corruption Ethics, Code of Ethics for the Principal Executive Officer-Chief Financial Officer-Chief Accounting SOC-4: Site-based labor practices and Code of Business Conduct and Ethics, SR-Safety & Security Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion"
DVN_2024_SustainabilityReport.txt,"labor practices and Code of Business Conduct and Ethics, SR-Safety & Security Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
Business Ethics and
GOV-4: Transparency of payments
Transparency to host governments Not applicable SOC-5: Workforce diversity and inclusion EEO-1 Report, Form 10-K, SR-Corporate Governance, SR-STEM, SR-Philanthropy, SR-Workforce
Overview, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion"
DVN_2024_SustainabilityReport.txt,"rity Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
Business Ethics and
GOV-4: Transparency of payments
Transparency to host governments Not applicable SOC-5: Workforce diversity and inclusion EEO-1 Report, Form 10-K, SR-Corporate Governance, SR-STEM, SR-Philanthropy, SR-Workforce
Overview, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
GOV-5: Public advocacy and lobbying P So Rl -it Pic ea rfl oA rc mti av nit cy e a n Md e L tro icb sbying Report, SR-Governance Overview, SR-Public Advocacy, Labor Practices SOC-6: Workforce engagement E Et xh pic es ri e& n cC eo , m SRp -li Dan ivc ee rs H ite y,l p El qin ue i, t yS R an-W d o Inr ck lf uo src ioe n Overview, SR-Ethics & Integrity, SR-Our Employee"
DVN_2024_SustainabilityReport.txt,"nce Overview, SR-Public Advocacy, Labor Practices SOC-6: Workforce engagement E Et xh pic es ri e& n cC eo , m SRp -li Dan ivc ee rs H ite y,l p El qin ue i, t yS R an-W d o Inr ck lf uo src ioe n Overview, SR-Ethics & Integrity, SR-Our Employee
Climate Change and Energy CCAR, Form 10-K, SR-Report Summary, SR-Waste Management, SR-Spill Prevention, SR-Safety &
SOC-7: Workforce training and development Security Overview, SR-Workforce Safety, SR-Cybersecurity, SR-Ethics and Integrity, SR-Emergency
CCAR, CDP Climate Response, EHS Philosophy, SR-Message from Our Board, SR-Environment Preparedness, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion"
DVN_2024_SustainabilityReport.txt,"s for which we believe Devon makes the greatest contribution. – Greenhouse Gas Emissions, Flaring, Spills, Water Use and Safety. Note, Devon’s performance
The following table summarizes those nine SDGs and where data presented in this AXPC framework table may differ in scope, definition and methodology
discussion of those topics can be found in this report. from Devon’s reported data elsewhere in this report.
SUSTAINABLE DEVELOPMENT GOAL REFERENCE TOPIC METRIC 2021 2022 2023 ADDITIONAL COMMENTS
SDG Goal 3 – Good Health and Well-Being SR-Our Employee Experience Scope 1 GHG Emissions (metric tons COe) 3,925,508 4,589,573 4,360,054"
DVN_2024_SustainabilityReport.txt,"e Recycled Water (Bbl)/Total Water Consumed (Bbl)
(Scope 1) 1.1.2 Midstream - All GHGs (million metric tons COe) N/A N/A N/A
2
Does your company use WRI Aqueduct, GEMI, Water
1.1.2.1 CH4 (million metric tons COe) N/A N/A N/A
Risk Filter, Water Risk Monetizer, or other comparable 2
Yes Yes Yes
tool or methodology to determine the water stressed 1.1.3 Downstream - All GHGs (million metric tons COe) N/A N/A N/A
2
areas in your portfolio?
1.1.4 LNG - All GHGs (million metric tons COe) N/A N/A N/A
2
Employee TRIR"
DVN_2024_SustainabilityReport.txt,"ons COe) N/A N/A N/A
2
Does your company use WRI Aqueduct, GEMI, Water
1.1.2.1 CH4 (million metric tons COe) N/A N/A N/A
Risk Filter, Water Risk Monetizer, or other comparable 2
Yes Yes Yes
tool or methodology to determine the water stressed 1.1.3 Downstream - All GHGs (million metric tons COe) N/A N/A N/A
2
areas in your portfolio?
1.1.4 LNG - All GHGs (million metric tons COe) N/A N/A N/A
2
Employee TRIR
1.1.5 Oil and Natural Gas Field Services - All GHGs (million metric tons COe) N/A N/A N/A
# of Employee OSHA Recordable Cases x 200,000 / Annual 0.58 0.56 0.75 2"
DVN_2024_SustainabilityReport.txt,".1.2.1 CH4 (million metric tons COe) N/A N/A N/A
Risk Filter, Water Risk Monetizer, or other comparable 2
Yes Yes Yes
tool or methodology to determine the water stressed 1.1.3 Downstream - All GHGs (million metric tons COe) N/A N/A N/A
2
areas in your portfolio?
1.1.4 LNG - All GHGs (million metric tons COe) N/A N/A N/A
2
Employee TRIR
1.1.5 Oil and Natural Gas Field Services - All GHGs (million metric tons COe) N/A N/A N/A
# of Employee OSHA Recordable Cases x 200,000 / Annual 0.58 0.56 0.75 2
Employee Workhours Indirect GHG Emissions from Imported Electricity +"
DVN_2024_SustainabilityReport.txt,"COe/MBOE 2 1 1
Began disclosing freshwater for 2
Fresh Water Consumed (Bbl) — 8,995,152 6,994,025 reporting year 2022; prior years Scope 1 + Scope 2 Liquids Pipelines Transmission million metric tons COe/
Supporting not available 4.4 2 N/A N/A N/A
GHG Intensity throughput in barrel-miles
Data
Recycled Water (Bbl) 61,431,129 71,543,467 83,327,768
Scope 1 Natural Gas Pipelines Transmission &
Total Water Consumed (Bbl) 115,860,453 125,855,854 150,221,979 4.5 Storage % N/A N/A N/A
Methane Intensity
Employee OSHA Recordable Cases 12 10 15 4. GHG Emissions Intensity"
DVN_2024_SustainabilityReport.txt,"29 71,543,467 83,327,768
Scope 1 Natural Gas Pipelines Transmission &
Total Water Consumed (Bbl) 115,860,453 125,855,854 150,221,979 4.5 Storage % N/A N/A N/A
Methane Intensity
Employee OSHA Recordable Cases 12 10 15 4. GHG Emissions Intensity
4.6 Scope 1 + Scope 2 Downstream GHG Intensity million metric tons COe/MBOE N/A N/A N/A
2
Contractor OSHA Recordable Cases 55 71 93
4.7 Scope 1 + Scope 2 LNG GHG Intensity million metric tons COe/mmcf N/A N/A N/A
2
Combined OSHA Recordable Cases 67 81 108
Annual Employee Workhours 4,159,126 3,577,011 3,981,390 Additional Intensity Metrics, if applicable"
DVN_2024_SustainabilityReport.txt,"2024 Devon Energy
Includes updates since original publication.
NYSE: DVN
devonenergy.com
@DevonEnergyOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"2024 Devon Energy
Includes updates since original publication.
NYSE: DVN
devonenergy.com
@DevonEnergyOverview Environment Safety & Security Governance Social Workforce Reporting
Contents
We’re proud to highlight our efforts to set high
standards as a neighbor, community partner,
environmental steward and employer.
OVERVIEW ENVIRONMENT SAFETY & SECURITY GOVERNANCE SOCIAL WORKFORCE"
DVN_2024_SustainabilityReport.txt,"2024 Devon Energy
Includes updates since original publication.
NYSE: DVN
devonenergy.com
@DevonEnergyOverview Environment Safety & Security Governance Social Workforce Reporting
Contents
We’re proud to highlight our efforts to set high
standards as a neighbor, community partner,
environmental steward and employer.
OVERVIEW ENVIRONMENT SAFETY & SECURITY GOVERNANCE SOCIAL WORKFORCE
THE OVERVIEW SECTION INCLUDES THE ENVIRONMENT SECTION INCLUDES THE SAFETY & SECURITY SECTION INCLUDES THE GOVERNANCE SECTION INCLUDES THE SOCIAL SECTION INCLUDES THE WORKFORCE SECTION INCLUDES"
DVN_2024_SustainabilityReport.txt,"l Workforce Reporting
Contents
We’re proud to highlight our efforts to set high
standards as a neighbor, community partner,
environmental steward and employer.
OVERVIEW ENVIRONMENT SAFETY & SECURITY GOVERNANCE SOCIAL WORKFORCE
THE OVERVIEW SECTION INCLUDES THE ENVIRONMENT SECTION INCLUDES THE SAFETY & SECURITY SECTION INCLUDES THE GOVERNANCE SECTION INCLUDES THE SOCIAL SECTION INCLUDES THE WORKFORCE SECTION INCLUDES
About This Report 2 Overview 12 Overview 36 Overview 49 Overview 61 Overview 76
CEO Letter 4 Climate Change 19 Workforce Safety 37 Corporate Governance 50 Community Engagement 62 Our Employee Experience 77"
DVN_2024_SustainabilityReport.txt,"rom Our Board 6 Air Emissions 21 Cybersecurity 44 Enterprise Risk 54 STEM 65 Diversity, Equity 81
Management and Inclusion
Report Summary 7 Water Management 27 Emergency Preparedness 46 Philanthropy 70
Shareholder Engagement 55
Performance Targets 8 Land Conservation 29 Human Rights 74
and Progress and Biodiversity Public Advocacy 56
Operations Overview 9 Waste Management 32 Ethics and Integrity 58
Spill Prevention 33
THE REPORTING SECTION INCLUDES
Performance Metrics 84
Reporting Frameworks 86
1 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tionships Courage Results
Openness and We are caring, connected We take intelligent risks We always seek to
honesty unite us and and supportive of our and share our successes achieve better results
Unless otherwise noted, the information reported
are at the core of employees and stakeholders and failures to and make a positive
applies to Devon’s operated assets for the calendar
everything we do. and succeed as one team. continuously improve. and sustainable impact.
year ended December 31, 2023.
2 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"Review Cycle 3
Check
Review of external stakeholder materials, such as Based on this assessment process, this report focuses S eek immediate feedback Confirm adequacy:
assessments from Sustainalytics, ISS, Moody’s I dentify improvement Balanced reporting
on the following top material areas of Devon’s ESG
Vigeo Eiris, RobecoSAM and others actions for the next report Issue completeness
performance: emissions, climate change, public advocacy,
corporate governance/enterprise risk management, water,
The process also included a full-day, in-person workforce safety, cybersecurity, and diversity, equity and"
DVN_2024_SustainabilityReport.txt,"ant and of materiality associated with disclosures required by the SEC. We applied the Ipieca/API/IOGP sustainability
meaningful for our stakeholders. reporting guidance (4th edition, 2020) definition of materiality:
Any topic that – in the view of management or stakeholders – significantly affects
the company’s performance and informs external opinion. They tend to be issues
that most affect value creation and the economic and reputational resilience of a
company in a positive or negative way.
3 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ver rig process. To continue driving progress, our
approach to energy development and unprecedented
to continue developing pathways to produce these
operations team is focused on Serious Incident and
collaboration among companies, industries and
critical energy resources in an increasingly sustainable
Fatality (SIF) reduction and our safety culture in 2024.
governments. Devon is preparing by making operational
manner and to capture opportunities that an all-of-the-
above energy system presents.
4 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tions and trust between our EHS,
and middle school science, technology, engineering and
Sustainability and operations teams, with strong board
Comprehensively addressing safety challenges
math (STEM) centers in underserved communities across Sincerely,
oversight, helps ensure we’re making prudent decisions
Applying advanced technologies to enhance our operating areas where children can develop the
for our overall performance. Externally, we’re committed
environmental, safety and human resources
skills and knowledge essential for our future workforce."
DVN_2024_SustainabilityReport.txt,"raining for leaders included awarding 28 DEI Community Grants to diverse Richard E. “Rick” Muncrief
variety of stakeholders is good for our company,
Achieving the Top Performer designation in community organizations in each of the five states that industry and country. President and CEO
employee wellness on the JUST Jobs Scorecard we operate.
Centralizing our public and government affairs,
sustainability and climate-related strategy and
external communications for even deeper internal
alignment
5 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"lizing our public and government affairs,
sustainability and climate-related strategy and
external communications for even deeper internal
alignment
5 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting
Message from Our Board
Devon is delivering strong business results in a responsible way
The Devon board oversees the company’s The board’s GEPP Committee is responsible for With sustainability in mind, Devon is investing in
efforts to be a sustainable enterprise – one overseeing efforts to integrate sustainability into STEM education to develop our future workforce. The"
DVN_2024_SustainabilityReport.txt,"rting open, The companies that can meet or exceed these
Environmental and Public oil production in 2023, while reducing the carbon ongoing dialogue that we encourage. expectations, while maintaining stakeholder trust and
Policy Committee
creating shareholder value, will thrive over the coming
intensity of our operations and minimizing freshwater
use in our highest activity area, the Delaware Basin. Our directors engage with Devon subject matter decades. The board is confident that Devon has the
In addition, Devon more closely aligned our EHS, ESG experts in a variety of disciplines. At a dinner with the strategy, high-performing workforce and results-driven"
DVN_2024_SustainabilityReport.txt,"erts in a variety of disciplines. At a dinner with the strategy, high-performing workforce and results-driven
and sustainability teams to drive internal progress company’s vice presidents, the board felt energized by culture to continue helping supply the world’s growing
and guide constructive external communications and their passion and was impressed with their knowledge, energy needs.
engagement. This alignment contributed to operational bond and leadership. We believe the quality of Devon’s
performance that met both business needs and leadership bench and highly engaged workforce is The Devon board appreciates your interest in the"
DVN_2024_SustainabilityReport.txt,"ons. These results exemplify the discipline, where employees can feel a sense of belonging. As Sincerely,
technical expertise and strategic foresight Devon a board, we have fully supported policies, programs
employees apply to producing oil and natural gas in and enhanced benefits focused on employees’ well-
the right way, and are essential to sustainability. being. Results are a core value at Devon, and we also
support performance bonuses and annual ownership John E. Bethancourt, Kelt Kindick,
equity grants that reward our workforce for generating Board Chair Chair of Governance,"
DVN_2024_SustainabilityReport.txt,"evon a board, we have fully supported policies, programs
employees apply to producing oil and natural gas in and enhanced benefits focused on employees’ well-
the right way, and are essential to sustainability. being. Results are a core value at Devon, and we also
support performance bonuses and annual ownership John E. Bethancourt, Kelt Kindick,
equity grants that reward our workforce for generating Board Chair Chair of Governance,
Environmental and Public
shareholder returns.
Policy Committee
6 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"hing our goals for the year.
Other ESG-Related Publications
2023 1.62
Engaged constructively with federal and state policy
S et 2024 corporate safety goals focused on
makers, diverse stakeholders and thought leaders to
SIF exposure that account for 15% of the overall
Reduced flared volumes by 83% and flared volume
broaden our perspectives on key public policy issues.
corporate scorecard.
intensity by 82% in 2023 compared to 2019.
Flaring Intensity (% of natural gas produced)
2019 2.2%
2020 1.4%
2021 0.9% Social Workforce"
DVN_2024_SustainabilityReport.txt,"afety engagements.
and in-kind donations to nonprofits in Oklahoma City
emissions intensity.
and all five of our operating areas in 2023. Progressed a wide range of policies and programs
to reduce bias and improve equity and consistency.
Donations under our Employee Gift Match Program
and annual Give for Good campaign, plus the Met our corporate performance scorecard goal
company match, totaled $2.7 million. to develop new relationships with charitable
organizations involved in DEI programming.
7 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ownstream of our
operations to improve ESG performance
3.8 2.8 2.3 1.8 1.7 1.6
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2025 across our value chain.
2050
2019 2019 2020 2021 2022 2023 2030 2020 2021 2022 2023
Baseline
Note: Scope 1 and 2 GHG emissions and methane emissions increased in 2022 compared to 2021 primarily driven by the acquisition of RimRock and Validus, as
well as an uptick in combustion-related emissions. See “Our baseline recalculation methodology” discussion on page 22.
8 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"t
teams. EHS professionals in our field operations support Devon operates premier acreage positions with a We’ve positioned Devon for sustainable growth
and responsible way. We give equal focus to
our teams with timely guidance and effective policies, deep, high-quality inventory of drilling locations. through a disciplined, returns-driven strategy,
operational excellence and our environmental,
Our focused development plan centers on drilling significant financial strength and liquidity, and an
protocols and practices. To safeguard our workforce,"
DVN_2024_SustainabilityReport.txt,"regulations and company policies. Through continuous and seeks to protect biodiversity by minimizing our DELAWARE
BASIN
improvement in operations and EHS performance, we’re operational footprint and impacts to land, wildlife and
able to increase efficiencies, lower costs and reduce their habitats, and cultural and historical resources.
our environmental impacts. To reinforce the importance
of EHS results, we tie a portion of our annual
EAGLE FORD
compensation to achieving corporate EHS targets.
9 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"fort of software developers, data an operator to take action. Devon also holds multiple
gas portfolio and sustainable, capital-efficient returns for
engineers and data scientists on our technology team patents related to drilling and completions operations,
our shareholders. It also provides a much-needed source
and domain experts from our ESG and EHS teams. including sealed wellbore pressure monitoring, a
of additional supply to the global LNG marketplace.
breakthrough in fracture diagnostics.
10 Devon Energy 2024 Sustainability Report OverviewOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"performance
The Environment section of our
2024 Sustainability Report includes: Resource Links:
Overview 12 2023 CDP Climate Response
Climate Change 19 2023 CDP Climate Score
Air Emissions 21 2023 Climate Change
Assessment Report
Water Management 27
Environment, Health and Safety
Land Conservation 29 (EHS) Philosophy
and Biodiversity
EHS protocols for business processes
Waste Management 32
Reclamation Standard
Spill Prevention 33
Basis of Reporting GHG Emissions
Independent Assurance Statement
11 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tation
They’re part of a globally agreed-upon action plan for organizations seeking page 20 page 28
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
to provide affordable energy, produced responsibly to protect the environment,
while also promoting peace and prosperity for all people. In this report, we have Partnerships for the Goals Life on Land
identified a wide variety of Devon’s business activities that align with the U.N. SDGs. page 26 page 31
Here in the environmental section, look for:
12 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"in 2024, this vice president also leads our
Transitioned from testing innovative sustainability and climate-related strategy and external
methane detection technologies to Reduced the number of spills and the communications, allowing for even deeper alignment
deploying enhanced detection systems volume of spilled fluids by 14% and 30%, between these critical responsibilities at the company.
throughout our operations. respectively, by evaluating spill trends and
taking action on those insights.
13 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ll environmental performance.
Our environmental philosophy
Routine flaring as defined by the World Bank by 2030
To position Devon for long-term success, the
ENGAGE council reviews emerging EHS and ESG issues, as
Reduce emissions Conserve water Mitigate risk
well as proposed laws and regulations and their
Value chain in assessments of performance potential financial, operational and reputational
in key ESG areas by 2023
impact on the company.
Prevent pollution Protect biodiversity Track progress
14 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ersification for our natural gas portfolio and
sustainable, capital-efficient returns for our
In 2023 and early 2024, Devon made strategic shareholders. It also provides a much-needed source
investments totaling $100 million in Fervo Energy, a of additional supply to the global LNG marketplace.
leader in next-generation geothermal technology.
Fervo employs horizontal drilling, multi-stage well
completion and distributed fiber optic sensing to
geothermal reservoir development, including some oil
15 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"t
technologies and integrate the data and lessons learned
and laser-based continuous and near-continuous Devon and others in the industry are evaluating, testing
into our business.
monitoring, and fixed-wing aircraft flyovers. and deploying.
Devon’s emissions monitoring test facility in the
Anadarko Basin, near our corporate headquarters,
plays an important role in identifying which innovative
technologies are viable candidates to incorporate more
broadly across Devon’s various operating areas.
16 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"sions rules and U.S. Securities and Exchange Commission (SEC) Scope 1 and Scope 2 emissions
academics, environmental NGOs and companies.
disclosures finalized in 2023 and 2024, respectively.
Once completed, the widespread adoption of the
Veritas protocols across industry ensures that there is a
consistent and transparent methodology for companies
to calculate and report methane emissions. It also
provides a standardized way of evaluating methane
emissions monitoring and mitigation technologies.
17 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"emissions and Total Scope 2 GHG emissions (location-based
method) for the previous reporting periods of January 1, 2021 to December 31, 2021 and January 1, 2022 to December 31, 2022.
Nitrogen Oxides (thousand tonnes) – – 24.44
Volatile Organic Compounds (thousand tonnes) – – 21.9 BASIS OF REPORTING GHG EMISSIONS
Water Usage (million Bbl)7 116 126 150 INDEPENDENT ASSURANCE STATEMENT
Recycled (million Bbl) 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
18 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"itation, drought and winter storms through the thoughtful capital allocation.
LEARN MORE
numerous regional and macro-level scenarios – late-21st century. The climate projections were based
including acquisitions, divestitures and changes in on scenarios from the Intergovernmental Panel on
regulations and market conditions – to test Climate Change (IPCC).
the strength of our portfolio and resources. Each year,
* data reflects legacy Devon only
the modeled scenarios inform the strategic decision-
19 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"n profitable Devon closely monitors possible business impacts of
even in aggressive low-carbon scenarios.
climate change in the market and policy arenas, and
we’re prepared to adapt as needed. We’re committed
to ongoing dialogue with our board of directors,
shareholders and other stakeholders about our climate
change-related risks and opportunities. Our industry
will play a pivotal role in delivering global energy for
generations to come, and Devon is embracing change
to be part of that future.
20 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"s efficient, effective work by defining continuity and alignment while elevating our
our regulatory, market and reputational risk, but also
responsibilities and requirements for communications, companywide focus on ESG performance, including air
because we believe protecting air quality aligns with our
compliance, recordkeeping and training. emissions. To implement Devon’s emissions reduction
values and makes our business more sustainable.
strategy effectively, the EHS Council sets the strategy
21 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"2030 5
(from 2019 baseline)
0 0
2019 Felix RimRock Validus Barnett Wind River 2019 2030
Energy Oil Energy Shale Basin Adjusted
Acquisition Acquisition Acquisition Divest Divest Baseline
eOC
SENNOT
NOILLIM
2
INTENSITY
(TONNES
CO2e
PER
MBoe)
1.2 5.0
1.0 4.0
0.8 3.79 3.0
0.6 2.82
2.0
0.4 65%
1.0
0.2 reduction by 2030
(from 2019 baseline)
0.0 0.0
2019 Felix RimRock Validus Barnett Wind River 2019 2030
Energy Oil Energy Shale Basin Adjusted
Acquisition Acquisition Acquisition Divest Divest Baseline
22 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"production process. Devon strives
value chain emissions and engage constructively
to avoid entirely the venting of raw gas and to limit
with stakeholders upstream and downstream of our
flaring to the extent possible at all locations. Reducing
production operations.
flaring is a priority in our broader emissions reduction
strategy because we want to protect the environment
and capture as much natural gas as possible for
its economic value, while also complying with laws,
regulations and permits.
23 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"19 when flaring does occur. developed a mobile app to capture, enter, track and
document LDAR survey findings. The app automatically
82%
Devon continues to look at a broad spectrum of syncs any needed repairs, all of which are required
opportunities to reduce flaring and related emissions to for compliance. This has resulted in a more efficient,
not only meet our own targets, but continue improving consistent and systematic LDAR program.
2019 2020 2021 2022 2023 performance across the industry.
24 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"gines
it is technically and economically feasible. Devon is with dual-fuel or electric engines
We will continue to monitor the rapid evolution of the also looking to identify other types of equipment and
technology solutions on the market, and identify, test practices we can power with electricity in the future to
and ultimately deploy the most promising technologies avoid using diesel fuel.
across our operating areas to help Devon reach our
ambitious emissions reduction objectives and targets.
25 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"together to lower the
carbon intensity of the energy system.
United Nations member states adopted 17 Sustainable Development Goals in 2015.
At Devon, we value our partnerships with public and nonprofit entities as we pursue our goal to be a responsible
operator. We count on strong partnerships to deliver on our commitments and contribute positively to the
development of the communities where we operate, as well as share research and knowledge to help advance
best practices in the energy sector.
26 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"r recycling efforts are now
is not suitable for drinking and other public uses and,
our water plans periodically to account for business concentrated in the New Mexico Delaware Basin, where
wherever possible, we use recycled produced water
needs and local environmental considerations. we have our highest level of activity and water scarcity
in our drilling and production activities. We take these
is an issue.
actions because they’re the right thing to do for the
environment and our communities.
27 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"of our operating areas.
In addition, Devon continues to seek water sharing
83
agreements with stakeholders. We collaborate with
other oil and gas operators and water midstream
companies on infrastructure, both through formal
million
discussions and one-off opportunities. We have
pipeline connections with midstream providers and
share our long-range plans with them to help expedite barrels of recycled water used in 2023,
cooperation and commercial activities. an increase of 15% compared to 2022.
28 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tices that address impacts to species richness Devon’s enterprise-wide Reclamation Standard use in mitigating disturbance, and for opportunities to
and diversity, including habitat degradation and establishes minimum success criteria for all reclamation preserve, restore or enhance biodiversity value.
destruction associated with land use changes, and work. By setting minimum success criteria and
impacts of invasive species. The Climate Change reclaiming locations to the same or better condition
29 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"the areas where we operate. Devon
suitable habitat
environmental and planning professionals use the year-
Public receptors over-year information regarding nesting activity and
history to inform well pad and access road placement.
Nearby floodplains
We regularly move well sites and access roads to avoid
Environmentally sensitive receptors impacts to raptor nests and use the nesting history
to help us plan our drill schedules to avoid activity in
sensitive nesting areas during the spring months.
30 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"a
Register of Historic Places and coordinate with Tribal
WCC project with the Casper BLM field office in 2024.
Historic Preservation Offices to identify Traditional
Cultural Properties. We avoid development on these
sites. In North Dakota, archeologists monitor our sites
during construction for previously unknown cultural
resources unearthed by construction activities, and
none have been found to date. We believe this is the
result of the precautions we take in the early stages of
our projects.
31 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"complying with all applicable state and
federal waste regulations.
For chemicals and other materials used or stored in
our workplace, Safety Data Sheets (SDS) summarizing
hazard information and disposal considerations are
readily available. To reinforce our commitment to
compliance, Devon employees and contractors receive
job-specific training for waste management and
chemicals used or stored in the workplace.
Devon radiation safety officers conduct NORM surveys to ensure regulatory compliance.
32 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"with the U.S. EPA SPCC Rule by keeping
The protocol details the responsibilities, equipment,
addition, by allowing us to monitor operations
plans at drilling locations to minimize the impact of spills.
procedures and steps to prevent, control and provide
without people going to the locations every
Devon also follows local, state and federal guidelines
adequate countermeasures to an unplanned discharge.
day, these technologies reduce vehicle-related
when handling drilling fluid and mud systems.
It also specifies the training required for all personnel emissions and safety risk for our workforce."
DVN_2024_SustainabilityReport.txt,"to the area. In-situ remediation has other advantages,
responsibility to prevent spills by immediately reporting
as well: It reduces truck traffic because it generally
near misses, such as a storage tank approaching full
doesn’t require heavy machinery, and it reduces our
volume or signs of wear that may result in a leak. We
overall operational waste footprint by eliminating the
respond to near misses and make any necessary
need to send impacted soil to landfills.
adjustments to prevent spills.
33 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"inue to
utilize spill focus teams within each business unit to
further evaluate root causes and trends. Our go-forward
mitigations include flying additional pipeline rights-
of-way to find leaks and enhancing asset integrity,
installing secondary containment around pressurized
vessels and conducting preventive maintenance on
transfer pumps in the Delaware Basin. To be good
stewards of the land and deliver strong environmental
performance, we continue working to prevent spills in
our operations.
34 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"r pumps in the Delaware Basin. To be good
stewards of the land and deliver strong environmental
performance, we continue working to prevent spills in
our operations.
34 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting
SAFETY
& SECURITY
Committed to exemplary performance
The Safety & Security section of our
2024 Sustainability Report includes: Resource Links:
Overview 36 Environment, Health and Safety
(EHS) Philosophy
Workforce Safety 37"
DVN_2024_SustainabilityReport.txt,"ur operations.
34 Devon Energy 2024 Sustainability Report EnvironmentOverview Environment Safety & Security Governance Social Workforce Reporting
SAFETY
& SECURITY
Committed to exemplary performance
The Safety & Security section of our
2024 Sustainability Report includes: Resource Links:
Overview 36 Environment, Health and Safety
(EHS) Philosophy
Workforce Safety 37
Contractor safety requirements
Cybersecurity 44
Safety Data Sheets (SDS)
Emergency Preparedness 46
Emergency Preparedness Protocol
35 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"uscitation (CPR),
throughout our operations to safeguard the people working at our worksites and neighbors nearby. automated external defibrillator (AED) and first aid.
VALUE CHAIN ENGAGEMENT
Continued investing in our Hearts & Minds program
in 2023 through workshops and on-boardings that
Safety Performance Metrics impacted 636 employees and contractors.
The United Nations has established 17 2021 2022 2023
In 2023, developed and conducted our first Hearts &
Sustainable Development Goals (SDGs).
They’re part of a globally agreed-upon action Fatalities (Employee and contractor workforce) 0 1 1 Minds workshop in Spanish focused on strengthening"
DVN_2024_SustainabilityReport.txt,"afety-related learning and sharing.
Decent Work and Economic Growth
page 41
Lost Time Incident Rate (LTIR) (Employee + Contractor) 0.19 0.15 0.15
LTIR - Employee 0.29 0.11 0.20 DEVON’S GOALS
LTIR - Contractor 0.17 0.16 0.15 Set 2024 corporate safety goals focused on SIF exposure
Preventable Vehicle Incident Rate (per million miles) 2.37 1.96 2.28 that account for 15% of the overall corporate scorecard.
Employee Hours (million) 4.2 3.6 4.0
Contractor Hours (million) 22.8 26.9 36.7
EXCEL DOWNLOAD
36 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,".15 0.15
LTIR - Employee 0.29 0.11 0.20 DEVON’S GOALS
LTIR - Contractor 0.17 0.16 0.15 Set 2024 corporate safety goals focused on SIF exposure
Preventable Vehicle Incident Rate (per million miles) 2.37 1.96 2.28 that account for 15% of the overall corporate scorecard.
Employee Hours (million) 4.2 3.6 4.0
Contractor Hours (million) 22.8 26.9 36.7
EXCEL DOWNLOAD
36 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"ard.
Employee Hours (million) 4.2 3.6 4.0
Contractor Hours (million) 22.8 26.9 36.7
EXCEL DOWNLOAD
36 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety
Strengthening our culture and relationships
Every leader, employee and contractor at Devon senior leaders oversee safety policy and
Devon is expected to actively participate in performance, with support from the EHS Council.
EHS Management System
In turn, our workforce is empowered to take the"
DVN_2024_SustainabilityReport.txt,"Devon leaders. As part of this effort, our executive
activities and disclosures. safety meetings. the OSHA Oil and Gas Safety and Environmental committee will review trends from SIF investigations
Conference in 2023. A Devon health and safety leader throughout the year. We also have ongoing projects to
was a founder of the conference and one of our EHS incorporate safety data with operational data to improve
supervisors is an active member of the event’s advisory our overall safety performance.
37 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"mental committee will review trends from SIF investigations
Conference in 2023. A Devon health and safety leader throughout the year. We also have ongoing projects to
was a founder of the conference and one of our EHS incorporate safety data with operational data to improve
supervisors is an active member of the event’s advisory our overall safety performance.
37 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"tional awards are given on a quarterly operating areas. In 2023, 168 employees received SWAP
for the EHS Council and the broader organization. proactive reporting of workplace hazards and instances basis for the ‘best of the best.’ Good environmental monetary awards and 211 contractors were recognized
We believe that the care and concern we show our where work was stopped due to the identification of a catches became eligible for SWAP in 2023. In addition, with Devon branded items like coolers.
workforce can have a positive impact on their safety safety concern. Both employees and contractors are our drilling, completions and workover teams recognize"
DVN_2024_SustainabilityReport.txt,"combination of online and hands-on
training is offered to office and field workers based on
their job responsibilities. All employees and contractors
must complete our field safety briefing if they work on
or visit field locations. Contractors also must complete
our Devon Orientation through Veriforce, our third-party
contractor performance network. Our training reinforces
our requirement to immediately report any incident or
near-miss event and to be accountable for our own and
others’ safety.
38 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"contractors
must complete our field safety briefing if they work on
or visit field locations. Contractors also must complete
our Devon Orientation through Veriforce, our third-party
contractor performance network. Our training reinforces
our requirement to immediately report any incident or
near-miss event and to be accountable for our own and
others’ safety.
38 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"our field safety briefing if they work on
or visit field locations. Contractors also must complete
our Devon Orientation through Veriforce, our third-party
contractor performance network. Our training reinforces
our requirement to immediately report any incident or
near-miss event and to be accountable for our own and
others’ safety.
38 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety
continued
Engaging our workforce"
DVN_2024_SustainabilityReport.txt,"actors
since 2014. During the workshops, we share our safety
culture and approach to effective communication, It’s estimated that potentially 140,000 workers
continuous improvement, integrity and situational in our industry in Texas, New Mexico and
awareness to reduce safety risk. Oklahoma speak a language other than English
at home.* To engage workers on our locations
who speak English as a second language,
We adapt the content to meet the needs of our
our operations team in the Delaware Basin
workforce and business. In recent years, this led us to"
DVN_2024_SustainabilityReport.txt,"ate honest discussions about mental health and
workshop and delivered it in 2023. The focus
tools to address mental health issues, including Devon’s
is on building relationships and trust with the
Employee Assistance Program and suicide prevention
participants, who were identified as emerging
and crisis hotline information. Hearts & Minds continues and potential leaders in the field by our crew
to be a place to talk openly about challenges and listen foremen. Local bilingual field employees who
to our workforce as we drive home why safety is so led the sessions shared personal stories,"
DVN_2024_SustainabilityReport.txt,"he participants said no other
Roughly 60% of the 636 Hearts & Minds attendees
operator had offered them training in Spanish
across Devon in 2023 were contractors. To reach
or leadership training. Since initiating the
and engage even more people, the Delaware Basin
sessions, we’ve seen an increase in direct
team piloted Hearts & Minds workshops for specific
questions to local leaders about safety and
categories of service providers with the highest risk/ believe we’re viewed as a partner for our
highest exposure. Spanish-speaking field workforce."
DVN_2024_SustainabilityReport.txt,"g the
and engage even more people, the Delaware Basin
sessions, we’ve seen an increase in direct
team piloted Hearts & Minds workshops for specific
questions to local leaders about safety and
categories of service providers with the highest risk/ believe we’re viewed as a partner for our
highest exposure. Spanish-speaking field workforce.
*American Community Survey (ACS) Reports Language
Use in the United States: 2019 and Texas Independent
Producers and Royalty Owners Association (TIPRO) Report
39 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"r specific
questions to local leaders about safety and
categories of service providers with the highest risk/ believe we’re viewed as a partner for our
highest exposure. Spanish-speaking field workforce.
*American Community Survey (ACS) Reports Language
Use in the United States: 2019 and Texas Independent
Producers and Royalty Owners Association (TIPRO) Report
39 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"al safety activities.
requirements to work on Devon locations. Our
operations teams can review the evaluation results
As part of our supplier risk assessment process, we
daily on our intranet to help them choose appropriate
use Veriforce for third-party contractor verification
contractors for their needs.
and management. Our Veriforce dashboard allows
us to monitor a contractor’s compliance with our
EHS, insurance, OSHA verification, ESG and other
requirements, and enables contractors to upload
40 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"lier risk assessment process, we
daily on our intranet to help them choose appropriate
use Veriforce for third-party contractor verification
contractors for their needs.
and management. Our Veriforce dashboard allows
us to monitor a contractor’s compliance with our
EHS, insurance, OSHA verification, ESG and other
requirements, and enables contractors to upload
40 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"Veriforce for third-party contractor verification
contractors for their needs.
and management. Our Veriforce dashboard allows
us to monitor a contractor’s compliance with our
EHS, insurance, OSHA verification, ESG and other
requirements, and enables contractors to upload
40 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety
continued
Leadership engagements in the field can have a
Because We Care
positive impact on our workforce, safety performance"
DVN_2024_SustainabilityReport.txt,"th our contractors, so
we’re conducting even more audits in 2024 than in 2023.
In addition, we plan to continue hosting meetings with
contractors who provide like services to discuss safety
trends and our expectations. Meetings with electrical Fall Protection Energy Isolation Electrical Safety Hydrogen Sulfide Confined Space
contractors in the Delaware Basin and roustabout (H S) Entry
2
providers in South Texas in 2023 helped strengthen
our shared commitment to creating a safe work
environment.
41 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tractors who provide like services to discuss safety
trends and our expectations. Meetings with electrical Fall Protection Energy Isolation Electrical Safety Hydrogen Sulfide Confined Space
contractors in the Delaware Basin and roustabout (H S) Entry
2
providers in South Texas in 2023 helped strengthen
our shared commitment to creating a safe work
environment.
41 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"for supply
keep exploring ways to attain the safest and most
chain, inventory, fleet management and other functions.
hazard-free work areas possible.
Internal audit periodically assesses the field audit
process and recommends improvement opportunities.
Audits also led to streamlining to one toll-free number
for ethics, EHS and other issues across all Devon
locations. Over time, the corrective actions we complete
to address audit findings can lead to safety, operational
and process improvements.
42 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"as possible.
Internal audit periodically assesses the field audit
process and recommends improvement opportunities.
Audits also led to streamlining to one toll-free number
for ethics, EHS and other issues across all Devon
locations. Over time, the corrective actions we complete
to address audit findings can lead to safety, operational
and process improvements.
42 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting
Workforce Safety"
DVN_2024_SustainabilityReport.txt,"We received contractors and communities. Based on our underlying
processes, culture and workplace safety remains a
feedback from our field teams that the bulletins are an metrics, the goals are weighted toward year-over-year
companywide goal for the sixth year.
effective, simple tool to spark a safety conversation with improvement in our SIF rate, and demonstrate our level
our employees and contractors before they start work. of commitment to safety and to delivering a superior
safety culture.
43 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"aining during onboarding and through
management and other teams to strengthen our
annual refresher training. Teams that have access to
38
cybersecurity controls and capabilities. %
sensitive data take specific training and employees
receive recognition if they help us avoid cybersecurity
events. Our Code of Business Conduct and Ethics, the
Information System General Usage Policy and related of digital security team have
post-graduate degrees
policies provide guidance on our information systems.
44 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"olutions in partnership with innovators. other precautions, while enabling employees to work
As part of its role to protect data and technology efficiently and effectively from any location. Through
appropriately, our digital security team evaluates ongoing efforts to educate employees to recognize
technologies that we build, buy and deploy, and increasingly sophisticated threats like malware,
recommends safeguards to the business owners. The ransomware and phishing attempts, we are heightening
digital security team performed technical assessments digital security awareness in our workforce."
DVN_2024_SustainabilityReport.txt,"nt Director.
level for these providers so that we can better manage Devon continues to forge strong partnerships with
the operational risk. federal agencies in the interest of better protecting
Devon’s assets and national security interests of critical
infrastructure. Devon’s digital security team received an award from the Oil and Gas Information Sharing and Analysis Center (ONG-ISAC). The team placed sixth among over
100 participating organizations for efforts in intelligence sharing in 2023.
45 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"a certified Emergency Manager and was developed and implemented. In addition, the
We piloted a combined CPR/AED/first aid/STB
ICS instructor, which strengthens our capabilities. emergency management team developed, coordinated course in North Dakota and plan to continue
and facilitated a tabletop exercise with technology the format in 2024 to save time and money
while maintaining instruction quality
In 2023, Devon’s emergency management team leadership at our chief technology officer’s request.
continued to train our workforce to maintain proper This unique exercise helped technology leaders apply We donated Stop the Bleed training kits"
DVN_2024_SustainabilityReport.txt,"areas
costs, connecting departments and streamlining technology project.
processes, the team helped create efficiencies in Our recruitment efforts resulted in a 26%
multiple areas of the company. Devon plans to conduct incident management trainings increase in volunteer floor wardens who help
support employee life safety and establish
and exercises with all field operating areas and as
occupant readiness at Devon Energy Center
requested by business units and functions in 2024. in Oklahoma City
46 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"t practices and strengths. advance its critical infrastructure security, protection and
As part of our continuous improvement efforts, resiliency mission. Our emergency management leader
corrective actions are incorporated into our EHS incident also served as a working group lead for a National
management system. When emergencies and incidents Petroleum Council study focused on the response to
occur, these practices enable Devon to protect our disruptions caused by hurricanes, cyber-attacks and
workforce, our neighbors and our assets. In turn, we’re physical attacks."
DVN_2024_SustainabilityReport.txt,"nhances our ability to manage risk and
Central Oklahoma Emergency Management Association maintain business continuity by giving us early insights
Annual Workshop. into emerging issues, pending laws and regulations, and
other critical information.
We believe robust emergency management capabilities
throughout industry and government contribute to
community safety and security. Devon supports the
head of our emergency management program in her
role as the designated representative for the Oil and
47 Devon Energy 2024 Sustainability Report Safety & SecurityOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"of Business Conduct and Ethics
Enterprise Risk Management 54 Code of Ethics for the Chief Executive
Officer, Chief Financial Officer and
Shareholder Engagement 55 Principal Accounting Officer
Public Advocacy 56 Anti-Corruption Policy
Ethics and Integrity 58 Ethics and Compliance Helpline
Certificate of Incorporation
Bylaws
Privacy Policy
Investor communications
Annual proxy statements
Annual Political Activity and
Lobbying Report
Devon Energy Corporation Political
Action Committee Annual Report
48 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"n
grading our overall performance for the year. page 54
public policy issues. elements of the Task Force on Climate-related
We also provided additional transparency on
Financial Disclosures (TCFD) framework.
our corporate goals for executive and company-
wide performance by prospectively publishing
Published our 2023 Political Activity and Lobbying
our goals for the year.
Report and this 2024 Sustainability Report
as we further advanced our commitment to
transparency and disclosure performance.
49 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"imize board performance through
We’ve developed an effective corporate governance open, substantive communications among directors Kelt Kindick M C
framework that evolves with our business. Forward- and between directors and management. Providing John Krenicki Jr. M M
looking principles and practices guide our board of regular feedback, encouraging different viewpoints to Karl F. Kurz M M C
directors, executive management be expressed and setting an expectation of constructive Michael Mears M M
and workforce in making a positive and sustainable"
DVN_2024_SustainabilityReport.txt,"ommittee oversees integrating sustainability the board with its duties and
(NYSE) listing standards and Securities and Exchange determines the compensation for into strategic and tactical business responsibilities in the declaration and
Commission (SEC) regulations. As of June 2024, ten of 11 Devon’s senior executives and activities. payment of dividends on Devon’s
(91%) of Devon board members qualified as independent. provides oversight of the company’s common stock.
employee benefit programs.
50 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"2023
Sustainability Report with management before
includes identifying, reviewing and recommending the
Through the evaluation processes, feedback has been provided on a range of topics, including:
publication
nomination of qualified candidates to Devon’s board.
The committee’s scope also includes reviewing EHS Reviewing and discussing Devon’s diversity,
board and management succession planning;
performance and efforts to integrate sustainability equity and inclusion (DEI) metrics, and strategy
for improving our workforce. This included two agendas and materials for board meetings;"
DVN_2024_SustainabilityReport.txt,"ESG and EHS oversight has evolved to include
priorities, and secure internal alignment. toward building alignment on highly effective corporate governance of the company.
other board committees as appropriate and additional
discussions with the full board. For example, aspects of
various proposed and new federal regulations, such as
the climate-related disclosure rule and the more stringent
methane regulations, have been discussed at different
committees of the board as well as the full board.
51 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"s reduction
9% allocation. Our executive compensation program seeks
goal that accounted for 15% of the overall corporate
Ethnically/ to create a strong tie between company performance
goals scorecard and directly tied compensation for the
Racially Diverse
on these key objectives and executive pay. This pay-for-
entire company to environmental performance.
performance philosophy is intended to motivate near-
term operational and financial success as well as to
create long-term stockholder value.
52 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"her stockholders and met with Additional information about our executive compensation
to $10,000 annually. The matching gift program has stewardship representatives of numerous investors. The program is available in the Compensation Discussion and
been a successful new benefit offered at Devon with Compensation Committee and GEPP Committee review Analysis (CD&A) section of our 2024 proxy statement.
broad participation across the company. the feedback resulting from this outreach, as well as the
53 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"entory
discussion of Devon’s material risks. Periodic reporting to
of professionals who hold 25 different certifications in the board, executive Documentation covering
accounting, internal auditing, risk management, fraud committee and each risk category including
management risk-mitigation activities
examination, cybersecurity and other specializations.
Risk workshops Annual ERM survey
Quarterly risk Annual survey of board,
discussions executive committee,
management and
subject matter experts
54 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"of the
Based in part on our ongoing engagements, we’ve
To demonstrate our commitment to transparency and Eiris, RobecoSAM, CDP Climate, Just Capital and CPA- positions of our trade associations on certain
strengthened our governance structure and practices reporting, we published Climate Change Assessment Zicklin Index. climate-related policy matters.
to more effectively manage the risks and opportunities
Reports in 2018, 2020, 2021 and 2023. The 2023
I ncorporating emissions, safety and other
of climate change, workforce diversity and other ESG"
DVN_2024_SustainabilityReport.txt,"e with a
executive compensation, field environmental practices
weighting of 15% in 2023 and 2022. In comparison,
and diversity — often join the shareholder meetings to
our 2021 emissions goal made up a portion of the
share our strategies and plans. They report what they
ESG/EHS goal that had a cumulative weighting of
learn to Devon senior management and our board, who
20%. We believe that setting challenging goals for
appreciate shareholder feedback.
EHS and ESG performance encourages alignment
55 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ominent business strategy and ultimately our sustainability as
policy issues including federal and state emissions a company. Devon plans to continue being part of
regulations, climate change, financial regulations and external efforts aimed at finding mutually beneficial
global commodity markets. solutions for complex issues.
2023 Political Activity and
Lobbying Report
LEARN MORE
Political Activity and
Lobbying Report Archives
2022 2021 2020*
2019* 2018* 2017*
* data reflects legacy Devon only
56 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"yoming (PAW), North Dakota
monitoring test center in the Anadarko Basin.
Petroleum Council, New Mexico Oil and Gas Association
(NMOGA) and Texas Oil and Gas Association (TXOGA).
Our advocacy around methane regulations, and climate-related issues more generally, continues in 2024 in
Being active in these organizations keeps Devon parallel with our operational efforts to achieve meaningful reductions in our methane emissions.
updated on laws, regulations and issues in the states
where we operate.
57 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"and principal
ethical standards. In 2023, Devon’s CEO sent a letter to
accounting officer to adhere to an additional, more
all vendors reminding them of their ethical obligations
rigorous code of ethics. of reports were unsubstantiated, of investigations intiated in 2023 participation in Devon’s annual Code of
and expectations surrounding gifts, incentives and other simple inquiries or system tests. were closed by year-end. Business Conduct and Ethics training.
potential conflicts of interest.
58 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"eeded for new employees. In 2023, we presented
stakeholders. Reports will be investigated promptly.
in-person fraud awareness training for employees
who work in the field, in accounting and other
functions. Their observations about new threats and
scams allow us to enhance our fraud prevention
programs. We share information on fraud trends
with all employees to help them recognize fraudulent
activity. We plan to continue our training cadence by
providing fraud training in Devon offices in 2024.
59 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"help them recognize fraudulent
activity. We plan to continue our training cadence by
providing fraud training in Devon offices in 2024.
59 Devon Energy 2024 Sustainability Report GovernanceOverview Environment Safety & Security Governance Social Workforce Reporting
Investing in our communities
The Social section of our
2024 Sustainability Report includes: Resource Links:
Overview 61 Corporate Giving Policy
Community Engagement 62 Statement on Human Rights
STEM 65
Philanthropy 70
Human Rights 74
60 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"rity Governance Social Workforce Reporting
Investing in our communities
The Social section of our
2024 Sustainability Report includes: Resource Links:
Overview 61 Corporate Giving Policy
Community Engagement 62 Statement on Human Rights
STEM 65
Philanthropy 70
Human Rights 74
60 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Overview
To be a socially responsible operator, Devon focuses on building strong,
Social Metrics
safe communities and an educated workforce. We invest in aspects of"
DVN_2024_SustainabilityReport.txt,"nd, community relations, field campaign, plus the company match,
DEVON’S GOALS
operations, corporate communication and other totaled $2.7 million.
Surpassed the 2023 social performance
professionals is prepared to respond to issues and
goals on our company scorecard to Renewed our commitment to the Permian
collaborate with stakeholders to find solutions.
enhance STEM education. Strategic Partnership with our second
$10 million pledge, bringing our total
investment to $20 million over ten years.
61 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"trained other
training and supplies to support their crucial work. We
emergency response organizations and community
also deliver holiday treats and host lunches and dinners
members to stop the number one cause of
to show first responders we appreciate their work.
preventable death after injury.
Devon donated $250,000 to more than 80 emergency
responder organizations in 2023, bringing our total
donations to over $1.2 million since 2018.
Heather Slayton receives a 2023 Devon Hometown Hero Award.
62 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"h charitable statue fully visible from two Texas County Roads near
giving for educational, health and safety endeavors, and active Devon right-of-way and production projects. After
installed the first-ever Cal Ripken, Sr. Foundation STEM reading about the neglected statue in a local newspaper,
center on tribal lands at Edwin Loe Elementary School in employees gathered necessary resources, researched
the MHA Nation. land permissions and accessibility, and got the land
cleared of overgrown brush.
63 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"nter provides evidence- young learners across the Permian Basin to explore
is keenly aware of both the opportunities and challenges and the University of Texas System to make a positive based professional development and coaching for careers in STEM fields. We’re excited that our longstanding
stakeholders face in this prolific oil producing region. The difference in the Permian Basin. school leaders and administrators to assist them in relationship with the Ripken Foundation will have a lasting
increase in activity and growing workforce have strained creating strategies to improve student outcomes. Several positive impact on education in the Permian Basin."
DVN_2024_SustainabilityReport.txt,"rom the University of Texas Permian Basin
Permian Strategic Partnership (PSP) to strengthen and improve
(UTPB) to create a long-term pipeline of place-based
the quality of life for residents in the region. The PSP partners
licensed counselors. Currently, the Permian Basin
with local leaders to develop and implement strategic plans to
is experiencing a shortage of counselors and other
bring about superior schools, safer roads, quality healthcare,
professionals who provide mental health services.
affordable housing and a trained workforce."
DVN_2024_SustainabilityReport.txt,"nsed counselors. Currently, the Permian Basin
with local leaders to develop and implement strategic plans to
is experiencing a shortage of counselors and other
bring about superior schools, safer roads, quality healthcare,
professionals who provide mental health services.
affordable housing and a trained workforce.
Added to the number of quality education seats available
in the Permian Basin in order to improve overall student
outcomes by expanding Harmony Science Academy into
the Midland area.
64 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ilable
in the Permian Basin in order to improve overall student
outcomes by expanding Harmony Science Academy into
the Midland area.
64 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
STEM
Inspiring innovation and imagination
Devon’s future employees must have strong technical know-how
and creative problem-solving skills to help us deliver affordable oil
and natural gas in an environmentally and socially responsible way.
We believe investing in education can help us build the workforce we need"
DVN_2024_SustainabilityReport.txt,"vironmentally and socially responsible way.
We believe investing in education can help us build the workforce we need
to achieve our technology leadership goals and our vision of diversity, equity
and inclusion (DEI). Our social investments are focused on building student
capabilities in STEM (science, technology, engineering and math). We’re
particularly interested in increasing the representation of girls, minorities and
rural communities in STEM fields. These groups are a growing part of the
workforce whose talents will be needed to fill the increasing number of STEM-"
DVN_2024_SustainabilityReport.txt,"ments to the most promising programs,
Devon partners with qualified organizations that have a track record in
STEM to identify community needs and solutions. Our partners include the
Oklahoma City Public Schools (OKCPS) Foundation and other nonprofits, as
well as teachers and administrators from several school districts. Insights
from our stakeholder conversations guide us to provide resources and
materials to implement programs aimed at empowering groups that have
been underserved in the past.
65 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"f Education
students and increase their understanding of basic
circuitry, coding, robotics, engineering and more. Devon is committed to helping students explore
innovative tools and understand high-tech topics at a
Our first Ripken STEM center was created in 2019 at young age. Based on the success of the STEM model
Mark Twain Elementary School, Devon’s long-time at Mark Twain, we continue to expand STEM resources
partner school in Oklahoma City. Recognizing that in other areas where we operate.
66 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ma
final round of the Ripken Foundation’s STEM Challenge
STEM activities.
City’s Special Care in 2023. It’s the first in the U.S.
powered by Devon Energy and XTO Energy in 2023. The
designed specifically for children and young adults
two finalist teams were asked to design a prototype
with special needs. The experience at Special Care
for counting money. Devon and the Ripken Foundation
will help students hone their problem-solving abilities
installed the STEM-focused Tulsa Dream Center in 2021.
67 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tickets to a game and the opportunity to attend the
we plan to add SportsLabs to our STEM programs with was to build their own “carnival of the future.” Students MVP Field Day featuring STEM activities. Teachers also
the Thunder. had several weeks to plan and design, before coming receive free tickets to an Oklahoma City Baseball Club
together for a day at Southwestern Oklahoma State game where MVPs are honored.
University to create their scaled model and present their
designs to the community.
68 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"he educators explore STEM learning and family thermodynamics expands on classroom curriculum.
place in five of the overall 36 judged categories with engagement, with all their STEM learning culminating in
an additional 20 projects receiving gold ranking, the the Scissortail Kite Festival. Jal, New Mexico,
highest available at the national contest. School Rocketry Program
In this annual competition, Devon pays for
students to travel to Houston to present
their rocket designs to a team from NASA.
69 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"n of oil site safety and to answer student questions.
and Lyric Theater. We also hold an annual fundraising
The event hosted by the local conservation district also features booths
campaign for Allied Arts to support more than 40 local One of Devon’s volunteer projects in 2023 was rebuilding and repainting the related to covering fire departments, electrical safety, water resources,
wildlife management and other topics.
arts organizations. back porch for Cart House, a United Way partner agency.
70 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,",500
India’s culture and heritage through performances, activities to engage the local community and attract
Devon’s contribution helped launch the Wheelie
dance, music and food. The festival is free and open to people to visit northeast Oklahoma City.
Club in Oklahoma City, a free, unique games-based
all, with interactive workshops and over 30 vendor stalls.
program for kids with ambulatory disabilities to learn
athletic skill building, create life-long healthy habits and
make new friendships.
71 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"unty provide free, quality instruction
provide a calm and comforting space for healing.
STEP UP provides a reliable place to live, coupled with
in reading, English as a Second Language, High
counseling and case management that connects youth
School Equivalency preparation, citizenship instruction
to needed services such as employment and life-skills.
and computer literacy for those 16 and over. Devon’s
grant helped fund testing required to assist tutors in
developing a plan for student success.
72 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"nt helped the organization
mothers discover self-sufficiency through career
continue supporting the Building Assets Elementary
training and placement. Through its Gillette office,
Program that promotes academic success, reduces
Climb offers industry training, life and financial skills
engagement in risky behaviors, and provides valuable
development, and mental health support to overcome
skills such as empathy and avoiding peer pressure.
poverty, provide economic stability for their children and
fill critical jobs in the local workforce."
DVN_2024_SustainabilityReport.txt,"and food processing operations to
improve the affordability and accessibility of high quality
and nutritionally appropriate food for all members of our
Rockies: North Dakota
community.
Boys and Girls Club of the Three Affiliated Tribes:
$10,000
Devon’s contribution supported the Native Youth
Council program at the Boys and Girls Club in New
Town. The council of local native teens participated in
enrichment activities and served as camp counselors
for the Boys and Girls Club summer camp program.
73 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"Devon complies with all
impact and on programs
federal and state requirements to protect human
that align with our
rights and ensure the rights of indigenous peoples in
business goals and values.
the U.S. We are committed to the health and safety of
Working to improve the
our employees, contractors and communities, and to
overall quality of life where
being a responsible steward of the air, land, water and
we do business makes our
biodiversity value across our operations.
communities stronger.
74 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"d values.
the U.S. We are committed to the health and safety of
Working to improve the
our employees, contractors and communities, and to
overall quality of life where
being a responsible steward of the air, land, water and
we do business makes our
biodiversity value across our operations.
communities stronger.
74 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Cultivating an environment where
employees can be their best
The Workforce section of our"
DVN_2024_SustainabilityReport.txt,"value across our operations.
communities stronger.
74 Devon Energy 2024 Sustainability Report SocialOverview Environment Safety & Security Governance Social Workforce Reporting
Cultivating an environment where
employees can be their best
The Workforce section of our
2024 Sustainability Report includes: Resource Links:
Overview 76 Code of Business Conduct and Ethics
Our Employee Experience 77 Mission Statement, Vision Statement
and Core Values
Diversity, Equity and Inclusion 81
2023 EEO-1 Report
75 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"oyees can be their best
The Workforce section of our
2024 Sustainability Report includes: Resource Links:
Overview 76 Code of Business Conduct and Ethics
Our Employee Experience 77 Mission Statement, Vision Statement
and Core Values
Diversity, Equity and Inclusion 81
2023 EEO-1 Report
75 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Overview
Devon sets high standards for operational, financial and ESG performance to
Workforce Metrics Advancing pay equity"
DVN_2024_SustainabilityReport.txt,"76 Code of Business Conduct and Ethics
Our Employee Experience 77 Mission Statement, Vision Statement
and Core Values
Diversity, Equity and Inclusion 81
2023 EEO-1 Report
75 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Overview
Devon sets high standards for operational, financial and ESG performance to
Workforce Metrics Advancing pay equity
meet our stakeholders’ expectations, and our employees consistently strive
To build the workforce we need,"
DVN_2024_SustainabilityReport.txt,"al Workforce Reporting
Overview
Devon sets high standards for operational, financial and ESG performance to
Workforce Metrics Advancing pay equity
meet our stakeholders’ expectations, and our employees consistently strive
To build the workforce we need,
2021 2022 2023 we must offer equitable pay and
to deliver results to these standards. Guided by Devon’s values of integrity,
Headcount (total company) 1,6452 1,8602 1,9562 opportunities across the company. We
measure our performance and look for
relationships, courage and results, we strive to create a work environment Minorities as a Percentage of Workforce 1 22% 22% 24%"
DVN_2024_SustainabilityReport.txt,"expectations, and our employees consistently strive
To build the workforce we need,
2021 2022 2023 we must offer equitable pay and
to deliver results to these standards. Guided by Devon’s values of integrity,
Headcount (total company) 1,6452 1,8602 1,9562 opportunities across the company. We
measure our performance and look for
relationships, courage and results, we strive to create a work environment Minorities as a Percentage of Workforce 1 22% 22% 24%
ways to further align our practices with
Women as a Percentage of Workforce 24% 23% 24% our aspirations."
DVN_2024_SustainabilityReport.txt,"ns seeking to
Employee base pay
provide affordable energy, produced responsibly to protect the environment, 20-24 years 2% 2% 3%
compensation
while also promoting peace and prosperity for all people. In this report, we have
Devon supports individual, team and company progress 25+ years 1% 1% 1% All Devon employees make $20/
identified a variety of Devon’s business activities that align with the U.N. SDGs. In
with family-friendly workplace practices, wellness programs hour or more and receive an
the workforce section, look for: Median Age 40 40 41"
DVN_2024_SustainabilityReport.txt,"lculations.
input and act on their feedback. We’re working to cultivate
Gender Equality
page 82 inclusive, diverse, equitable and respectful communities EXCEL DOWNLOAD
inside and outside our company.
Taking Action
LEARNING AND DEVELOPMENT EMPLOYEE WELL-BEING DIVERSITY, EQUITY AND INCLUSION Increased transparency by disclosing our annual
I ncreased professional and leadership Enhanced our paid time off practices to Progressed a wide range of policies and U.S. Equal Employment Opportunity (EEO-1)
learning opportunities grounded in encourage and support employees to take programs to reduce bias and improve Report for details on our workforce by race,"
DVN_2024_SustainabilityReport.txt,"adership development, training (EEOC) job categories.
Further improved access to mental health and mentoring opportunities, as well as
resources through an expanded network, in expanding diversity, equity and inclusion Met our corporate performance scorecard goal
person visits and virtual counseling. We also (DEI) programming to all employees. to develop new relationships with charitable
continued our focus on mental health in field organizations involved in DEI programming.
safety engagements.
76 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"alue
our people and invest in their success. Devon
What Devon
focuses on providing personally and professionally
employees want
Field employees desire formal, on-the-job and cross-training, and Corporate teams desire
fulfilling careers, meaningful benefits and
from learning and more hands-on and in-person classroom training including technical, professional, technical, technology
compensation, and a sense of inclusion and leadership and technology training. and data skills training.
development
belonging. Our workforce is central to and drives"
DVN_2024_SustainabilityReport.txt,"g and development We take this feedback seriously and provide
externally supported content and facilitation. Devon specialists and technical subject matter experts dashboards to help team leaders review, share and act
leaders support learning with coaching, feedback and assess and meet employees’ varied learning and on team-specific findings. Our human resources group
on-the-job application. development needs. reviews the results to identify companywide trends and
opportunities for improvement.
77 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"nued
64%
100%
Meaningful compensation, benefits clinic, the Doc, is available with telehealth options also
and work practices available to field employees. A dedicated intranet site
We value employees who are open and honest, take consolidates mental health resources in one place to
of employees received an ownership and contribute to our company objectives. make it easy and convenient for employees to find the of Devon leaders attended
mental health training by the
annual performance bonus and
To cultivate a workforce with these qualities, we start care they need. Based on positive feedback in the field, end of the first quarter of 2024."
DVN_2024_SustainabilityReport.txt,"place to
of employees received an ownership and contribute to our company objectives. make it easy and convenient for employees to find the of Devon leaders attended
mental health training by the
annual performance bonus and
To cultivate a workforce with these qualities, we start care they need. Based on positive feedback in the field, end of the first quarter of 2024.
long-term incentives.
with offering equitable opportunity in all aspects of we continue to have honest discussions about mental
employment and providing competitive compensation health and share information to encourage our workforce"
DVN_2024_SustainabilityReport.txt,"-being and productivity. We offer a wide
about the impact of mental health
range of mental health resources to help employees
issues from the CEO and other leaders.
maintain mental health fitness and access mental
health services when they need them. In addition to
WATCH VIDEO
traditional behavioral health benefits, our medical health
plan offers a cognitive behavioral therapy program to
address anxiety, depression, substance abuse and other
concerns. On-site counseling at Devon’s Oklahoma City
78 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"t. In 2023,
while national averages have increased
approximately 59% over the same period.
Employee Assistance Program (EAP) that offers
JUST Capital ranked Devon #1 in the oil and gas industry for
workers, as well as #1 in the oil and gas industry,
employees and their family members 24/7, free
based on polling of the American public.
access to experienced counselors, up to ten
counseling sessions per employee per year, as well
as to financial experts, childcare consultants and
other resources.
79 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"ore likely to come to work ready mental health resources through our
medical plan, a dedicated intranet
to give Devon their best effort.
site, open conversations and mental
health awareness training for leaders.
Devon’s financial wellness program
71% provides confidential and unbiased
financial guidance and a wide range of
resources at no cost to employees.
of employees earned the maximum available
participation points to receive contributions up to
$2,500 to their health savings account (HSA).
80 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"re focus
We believe in relationships and will
The volunteer DEI Team strives to proactively increase employees the chance to contribute and grow. on our processes for hiring, and plans for more frequent
ensure all employees feel seen, valued,
awareness, identify challenges, and find innovative improvement discussions.
heard and connected.
ways to achieve our DEI vision and strategy.
Our Human Resources team guides and advises
the DEI Team with strategic support, tools and
resources for success.
81 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"Nations member states adopted 17 leader’s skills in building and maintaining trust,
Policies
Sustainable Development Goals in 2015.
creating psychological safety, setting clear
In an industry where the majority of
expectations, feedback, and coaching for
workers traditionally have been male, Enhanced Devon’s paid time off policy to provide
individual and team performance.
Devon is taking steps to increase additional time for all employees to take care of
Continued sponsoring the Women’s Energy
women’s participation in the workforce themselves and their families."
DVN_2024_SustainabilityReport.txt,"talent and encourage
guided conversations, book study groups, external
incorporation of diverse perspectives. Performance
speaker events and other programming.
As of June 2024, our board included
four women (36%) and one racially Implemented recruiting practices to attract diverse
Disclosed our annual U.S. Equal Employment
diverse (9%) director, including the
candidates and create a positive candidate
Opportunity (EEO-1) Report for details on our
board chair and the chair of Devon’s
experience.
workforce by race, ethnicity and gender across"
DVN_2024_SustainabilityReport.txt,"Women’s Leadership Learning
2023. See page 71 for more on our DEI Community
Forum, including female Devon directors, to
Grants program.
connect women leaders in exploring leadership
topics and forming a meaningful network to Employee survey ratings for DEI-related survey
support learning and growth. questions improved from April to October 2023.
Specifically, ratings increased on the sense of
belonging regardless of background and equal
opportunity for career advancement for everyone
at Devon.
82 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"leadership
topics and forming a meaningful network to Employee survey ratings for DEI-related survey
support learning and growth. questions improved from April to October 2023.
Specifically, ratings increased on the sense of
belonging regardless of background and equal
opportunity for career advancement for everyone
at Devon.
82 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Diversity, Equity and Inclusion
continued
Developing tomorrow’s workforce today"
DVN_2024_SustainabilityReport.txt,"roved from April to October 2023.
Specifically, ratings increased on the sense of
belonging regardless of background and equal
opportunity for career advancement for everyone
at Devon.
82 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting
Diversity, Equity and Inclusion
continued
Developing tomorrow’s workforce today
Devon’s partnership with Cristo Rey Catholic High
School in Oklahoma City is an investment in the school,
its students and our future workforce. Cristo Rey"
DVN_2024_SustainabilityReport.txt,"k experience in our headquarters office. The
the country to work alongside our employees for several months. We value the diverse backgrounds
work-study program also accounts for a major part
and perspectives our interns bring to our teams while they’re here. This program creates a unique
of the private school’s funding to further its mission to
opportunity for the interns to see what it’s like to work at Devon, and gives us an opportunity to
make affordable, high-quality, faith-based education
engage with the future leaders of tomorrow’s workforce."
DVN_2024_SustainabilityReport.txt,"nitiatives like this allow for high school students to gain insight of potential career
experience to company employees.
paths. During my time at Devon, I was truly welcomed into the community and through this learned
lots about the company and myself. Efforts similar to this one allow for an exploration of diverse
careers and potentially influence our future decisions.”
U.S. Equal Employment
Opportunity Report
–Arianna Luevano
Devon is committed to publicly disclosing our annual EEO-1 Reports.
The report details the company’s U.S. workforce by race, ethnicity"
DVN_2024_SustainabilityReport.txt,"ity and through this learned
lots about the company and myself. Efforts similar to this one allow for an exploration of diverse
careers and potentially influence our future decisions.”
U.S. Equal Employment
Opportunity Report
–Arianna Luevano
Devon is committed to publicly disclosing our annual EEO-1 Reports.
The report details the company’s U.S. workforce by race, ethnicity
an gender across job categories established by the U.S. Equal
Employment Opportunity Commission (EEOC).
2023 EEO-1 REPORT
83 Devon Energy 2024 Sustainability Report WorkforceOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"s (location-based
Sulfur Oxides (thousand tonnes) – – 0.13 method) for the previous reporting periods of January 1, 2021 to December 31, 2021 and January 1, 2022 to December 31, 2022.
Nitrogen Oxides (thousand tonnes) – – 24.44
BASIS OF REPORTING GHG EMISSIONS
Volatile Organic Compounds (thousand tonnes) – – 21.9
INDEPENDENT ASSURANCE STATEMENT
Water Usage (million Bbl)7 116 126 150
Recycled (million Bbl) 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"IS OF REPORTING GHG EMISSIONS
Volatile Organic Compounds (thousand tonnes) – – 21.9
INDEPENDENT ASSURANCE STATEMENT
Water Usage (million Bbl)7 116 126 150
Recycled (million Bbl) 61 72 83
Sourced (million Bbl) 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9"
DVN_2024_SustainabilityReport.txt,") 54 54 67
Fresh (million Bbl) - Newly reported in 2022 – 9 7
84 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting
Performance Metrics
continued
Safety Performance Metrics Social Metrics
2021 2022 2023 2021 2022 2023
Fatalities (Employee + Contractor workforce) 0 1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics"
DVN_2024_SustainabilityReport.txt,"1 1 Social Investments (millions) $13.7 $29.6 $15.9
Total Recordable Incident Rate (TRIR) (Employee + Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30
Headcount (total company) 1,6452 1,8602 1,9562
DART Incident Rate - Employee 0.34 0.17 0.30
Minorites as a Percentage of Workforce 1 22% 22% 24%"
DVN_2024_SustainabilityReport.txt,"+ Contractor) 0.50 0.53 0.53
TRIR - Employee 0.58 0.56 0.75
Workforce Metrics
TRIR - Contractor 0.48 0.53 0.50
Serious Incident and Fatality (SIF) Recordable Rate (Employee + Contractor) 0.07 0.05 0.07
2021 2022 2023
Days Away Restricted Transfer (DART) Incident Rate (Employee + Contractor) 0.33 0.35 0.30
Headcount (total company) 1,6452 1,8602 1,9562
DART Incident Rate - Employee 0.34 0.17 0.30
Minorites as a Percentage of Workforce 1 22% 22% 24%
DART Incident Rate - Contractor 0.32 0.37 0.31
Women as a Percentage of Workforce 24% 23% 24%"
DVN_2024_SustainabilityReport.txt,"(36%) serve on our board of directors, including the chair of Devon’s Audit Committee.
Contributions - Trades and Political (thousands) $2,520 $4,347 $4,024
With the increased scale of the company following the Devon-WPX merger, Devon’s trade association dues increased.
Lobbying - Federal and State (thousands) $433 $751 $802
Devon’s lobbying and political activity is disclosed via public agencies, as well as through the company’s Political
Activity and Lobbying Report available on our website.
85 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"Scope 3 greenhouse gas SR-Environment Overview, SR-Air Emissions,
relevant climate-related risks (GHG) emissions, and the related risks. SR-Performance Metrics
and opportunities where such
information is material. c) Describe the targets used by the CCAR, CDP Climate Response, Form 10-K, SR-Report
organization to manage climate- Summary, SR-Performance Targets and Progress,
related risks and opportunities and SR-Climate Change, SR-Air Emissions, SR-Water
performance against targets. Management
86 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"reporting guidance for the oil and gas industry developed
Decommissioning ENV-8: Decommissioning Not Disclosed
by Ipieca, the American Petroleum Institute (API) and the International Association of Oil & Gas Producers (IOGP).
Safety, Health and Security
The issues and indicators in this guidance have been selected based on industry consensus, together with
SHS-1: Safety, health and security engagement EHS Philosophy, SR-CEO Letter, SR-Report Summary, SR-Operations Overview, SR-Safety & Security
significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and Overview, SR-Workforce Safety, SR-Emergency Preparedness"
DVN_2024_SustainabilityReport.txt,"International Association of Oil & Gas Producers (IOGP).
Safety, Health and Security
The issues and indicators in this guidance have been selected based on industry consensus, together with
SHS-1: Safety, health and security engagement EHS Philosophy, SR-CEO Letter, SR-Report Summary, SR-Operations Overview, SR-Safety & Security
significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and Overview, SR-Workforce Safety, SR-Emergency Preparedness
sustainability reporting. SHS-2: Workforce and community health Form 10-K, EHS Philosophy, SR-Water Management, SR-Waste Management, SR-Safety & Security"
DVN_2024_SustainabilityReport.txt,"n industry consensus, together with
SHS-1: Safety, health and security engagement EHS Philosophy, SR-CEO Letter, SR-Report Summary, SR-Operations Overview, SR-Safety & Security
significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and Overview, SR-Workforce Safety, SR-Emergency Preparedness
sustainability reporting. SHS-2: Workforce and community health Form 10-K, EHS Philosophy, SR-Water Management, SR-Waste Management, SR-Safety & Security
Workforce Protection Overview, SR-Workforce Safety, SR-Our Employee Experience"
DVN_2024_SustainabilityReport.txt,"nt EHS Philosophy, SR-CEO Letter, SR-Report Summary, SR-Operations Overview, SR-Safety & Security
significant insights and suggestions from an independent panel of stakeholders with expertise in the sector and Overview, SR-Workforce Safety, SR-Emergency Preparedness
sustainability reporting. SHS-2: Workforce and community health Form 10-K, EHS Philosophy, SR-Water Management, SR-Waste Management, SR-Safety & Security
Workforce Protection Overview, SR-Workforce Safety, SR-Our Employee Experience
SHS-3: Occupational injury and illness incidents SR-Safety & Security, SR-Workforce Safety, SR-Performance Metrics"
DVN_2024_SustainabilityReport.txt,"y, SR-Emergency Preparedness
sustainability reporting. SHS-2: Workforce and community health Form 10-K, EHS Philosophy, SR-Water Management, SR-Waste Management, SR-Safety & Security
Workforce Protection Overview, SR-Workforce Safety, SR-Our Employee Experience
SHS-3: Occupational injury and illness incidents SR-Safety & Security, SR-Workforce Safety, SR-Performance Metrics
The Ipieca index identifies where the referenced data may be found in this report or other publicly available disclosures.
SHS-4: Transport safety SR-Workforce Safety"
DVN_2024_SustainabilityReport.txt,"orce Safety, SR-Our Employee Experience
SHS-3: Occupational injury and illness incidents SR-Safety & Security, SR-Workforce Safety, SR-Performance Metrics
The Ipieca index identifies where the referenced data may be found in this report or other publicly available disclosures.
SHS-4: Transport safety SR-Workforce Safety
Product Health, Safety
SHS-5: Product stewardship Safety Data Sheets
IPIECA ISSUE INDICATORS REFERENCE and Environmental Risk Devon does not produce petroleum consumer products.
Governance and Business Ethics Process Safety SHS-6: Process safety SR-Safety Overview, SR-Workforce Safety, SR-Performance Metrics"
DVN_2024_SustainabilityReport.txt,"nance and
Management Systems Climate Change Assessment Report (CCAR), CDP Climate Response, Corporate Governance Guidelines, SOC-1: Human rights due diligence Ethics and Compliance Helpline, Statement on Human Rights, SR-Ethics and Integrity, SR-Human Rights
Code of Business Conduct and Ethics, Code of Ethics for the Chief Executive Officer, Chief Financial
GOV-2: Management systems Officer and Principal Accounting Officer, SR-About this Report, SR-Message from Our Board, SR-Report Human Rights
Summary, SR-Workforce Safety, SR-Cybersecurity, SR-Governance Overview, SR-Corporate Governance, SOC-2: Suppliers and human rights Statement on Human Rights, Supplier Qualification Requirements, SR-Human Rights"
DVN_2024_SustainabilityReport.txt,", SR-Message from Our Board, SR-Report Human Rights
Summary, SR-Workforce Safety, SR-Cybersecurity, SR-Governance Overview, SR-Corporate Governance, SOC-2: Suppliers and human rights Statement on Human Rights, Supplier Qualification Requirements, SR-Human Rights
Management
SR-Enterprise Risk Management, SR-Ethics and Integrity, SR-Emergency Preparedness
SOC-3: Security and human rights SR-Human Rights
Ethics and Compliance Hotline, Form 10-K, Anti-Corruption Policy, Code of Business Conduct and
GOV-3: Preventing corruption Ethics, Code of Ethics for the Principal Executive Officer-Chief Financial Officer-Chief Accounting SOC-4: Site-based labor practices and Code of Business Conduct and Ethics, SR-Safety & Security Overview, SR-Workforce Safety, SR-Human"
DVN_2024_SustainabilityReport.txt,", Code of Business Conduct and
GOV-3: Preventing corruption Ethics, Code of Ethics for the Principal Executive Officer-Chief Financial Officer-Chief Accounting SOC-4: Site-based labor practices and Code of Business Conduct and Ethics, SR-Safety & Security Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
Business Ethics and
GOV-4: Transparency of payments
Transparency to host governments Not applicable SOC-5: Workforce diversity and inclusion EEO-1 Report, Form 10-K, SR-Corporate Governance, SR-STEM, SR-Philanthropy, SR-Workforce"
DVN_2024_SustainabilityReport.txt,"rity Overview, SR-Workforce Safety, SR-Human
Officer, SR-Ethics and Integrity worker accommodation Rights, Statement on Human Rights, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
Business Ethics and
GOV-4: Transparency of payments
Transparency to host governments Not applicable SOC-5: Workforce diversity and inclusion EEO-1 Report, Form 10-K, SR-Corporate Governance, SR-STEM, SR-Philanthropy, SR-Workforce
Overview, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
GOV-5: Public advocacy and lobbying P So Rl -it Pic ea rfl oA rc mti av nit cy e a n Md e L tro icb sbying Report, SR-Governance Overview, SR-Public Advocacy, Labor Practices SOC-6: Workforce engagement E Et xh pic es ri e& n cC eo , m SRp -li Dan ivc ee rs H ite y,l p El qin ue i, t yS R an-W d o Inr ck lf uo src ioe n Overview, SR-Ethics & Integrity, SR-Our Employee"
DVN_2024_SustainabilityReport.txt,"nd Inclusion
GOV-5: Public advocacy and lobbying P So Rl -it Pic ea rfl oA rc mti av nit cy e a n Md e L tro icb sbying Report, SR-Governance Overview, SR-Public Advocacy, Labor Practices SOC-6: Workforce engagement E Et xh pic es ri e& n cC eo , m SRp -li Dan ivc ee rs H ite y,l p El qin ue i, t yS R an-W d o Inr ck lf uo src ioe n Overview, SR-Ethics & Integrity, SR-Our Employee
Climate Change and Energy CCAR, Form 10-K, SR-Report Summary, SR-Waste Management, SR-Spill Prevention, SR-Safety &
SOC-7: Workforce training and development Security Overview, SR-Workforce Safety, SR-Cybersecurity, SR-Ethics and Integrity, SR-Emergency"
DVN_2024_SustainabilityReport.txt,"port Summary, SR-Waste Management, SR-Spill Prevention, SR-Safety &
SOC-7: Workforce training and development Security Overview, SR-Workforce Safety, SR-Cybersecurity, SR-Ethics and Integrity, SR-Emergency
CCAR, CDP Climate Response, EHS Philosophy, SR-Message from Our Board, SR-Environment Preparedness, SR-Our Employee Experience, SR-Diversity, Equity and Inclusion
CCE-1: Climate governance and strategy Overview, SR-Climate Change, SR-Governance Overview, SR-Corporate Governance, SR-Enterprise
Climate Strategy and Risk Risk Management, SR-Shareholder Engagement SOC-8: Workforce non-retaliation Ethics and Compliance Helpline, SR-Ethics and Integrity, SR-Human Rights"
DVN_2024_SustainabilityReport.txt,"Integrity, SR-Human Rights
and grievance mechanisms
CCE-2: Climate risk and opportunities CCAR, CDP Climate Response, CDP Water Response, Form 10-K, SR-CEO Letter, SR-Report Summary,
SR-Performance Targets and Progress, SR-Environment Overview, SR-Climate Change, SR-Air Emissions SR-CEO Letter, SR-Message from Our Board, SR-Report Summary, SR-Water Management, SR-Land
SOC-9: Local community impacts Conservation and Biodiversity, SR-Emergency Preparedness, SR-Public Advocacy, SR-Social Overview,
Technology CCE-3: Lower-carbon technology C SRC -A CR li, m C aD teP CC hlim ana gte e Response, SR-Operations Overview, SR-Environment Overview, SR-Air Emissions, and engagement S SR R- -DC io vm erm situ yn , Eit qy uE in tyg aa ng de m Ine cn lut s, iS oR n-STEM, SR-Philanthropy, SR-Human Rights, SR-Workforce Overview,"
DVN_2024_SustainabilityReport.txt,"erview, SR-Environment Overview, SR-Climate Change, SR-Air Emissions, SOC-14: Local procurement and supplier
SR-Performance Metrics SR-Community Engagement, SR-Philanthropy
development
Local Content
Environment
SOC-15: Local hiring practices Not Applicable
ENV-1: Freshwater CCAR, CDP Climate Response, SR-Report Summary, SR-Performance Targets and Progress, SR-
Operations Overview, SR-Environment Overview, SR-Water Management, SR-Performance Metrics
Water
ENV-2: Discharges to water Not Disclosed
87 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"and our own materiality assessment to determine our top issues and methodologies for Community EM-EP-210b.1 community rights and interests SR-Human Rights
Relations
reporting. Various SASB indicators request different reporting methodologies but use the same EM-EP-210b.2 Number and duration of non-technical delays Not Disclosed
underlying raw data that we use for our CDP responses. As such, Devon intends to use the SASB (1) Total recordable incident rate (TRIR), (2) fatality rate, (3) near miss
frequency rate (NMFR), and (4) average hours of health, safety, and SR-Safety & Security Overview, SR-Workforce Safety,"
DVN_2024_SustainabilityReport.txt,"ghts and interests SR-Human Rights
Relations
reporting. Various SASB indicators request different reporting methodologies but use the same EM-EP-210b.2 Number and duration of non-technical delays Not Disclosed
underlying raw data that we use for our CDP responses. As such, Devon intends to use the SASB (1) Total recordable incident rate (TRIR), (2) fatality rate, (3) near miss
frequency rate (NMFR), and (4) average hours of health, safety, and SR-Safety & Security Overview, SR-Workforce Safety,
materiality profile for the oil and gas industry as an additional reference point when assessing the Workforce EM-EP-320a.1 emergency response training for (a) direct employees, and (b) contract SR-Performance Metrics"
DVN_2024_SustainabilityReport.txt,"dditional reference point when assessing the Workforce EM-EP-320a.1 emergency response training for (a) direct employees, and (b) contract SR-Performance Metrics
Health employees
sustainability issues most likely to impact our business. We will determine what additional SASB-
& Safety
Discussion of management systems used to integrate a culture of safety EHS Philosophy, SR-Safety & Security Overview,
specific measurements Devon may adopt in the future based upon future assessments. EM-EP-320a.2
throughout the exploration and production lifecycle SR-Workforce Safety"
DVN_2024_SustainabilityReport.txt,"atter (PM ) Process Safety Event (PSE) rates for Loss of Primary Containment (LOPC) of
10 EM-EP-540a.1 Not Disclosed
Critical incident greater consequence (Tier 1)
(1) Total water withdrawn, (2) total water consumed, percentage of each in CCAR, SR-Performance Targets & Progress, SR-Environment
EM-EP-140a.1 risk management
regions with High or Extremely High Baseline Water Stress Overview, SR-Water Management, SR-Performance Metrics Description of management systems used to identify and mitigate
EM-EP-540a.2 SR-Workforce Safety, SR-Emergency Preparedness"
DVN_2024_SustainabilityReport.txt,"for which there is public EM-EP-000.A
EM-EP-140a.3 Not Disclosed
disclosure of all fracturing fluid chemicals used Production of synthetic oil Not Applicable
Activity Metrics
Percentage of hydraulic fracturing sites where ground or surface water Production of synthetic gas Not Applicable
EM-EP-140a.4 Not Disclosed
quality deteriorated compared to a baseline
EM-EP-000.B Number of offshore sites Not Applicable
EM-EP-000.C Number of terrestrial sites Website: https://www.devonenergy.com/operations
88 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"Goal 5 – Gender Equality SR- Diversity, Equity and Inclusion Production 2 14.14 15.29 14.23 ( eS mc io sp sie o n1) s G bH yG in a cn lud d im nge t ah la lne
SDG Goal 6 – Clean Water and Sanitation SR-Water Management - As Reported Under Subpart W (MBoe) emissions reported to the
Environmental Protection
Percent of Scope 1 GHG Emissions Attributed to Gathering
SDG Goal 7 – Affordable and Clean Energy SR-Climate Change 9% 15% 18% Agency (EPA) pursuant
and Boosting Segment
to the Greenhouse Gas
SDG Goal 8 – Decent Work and Economic Growth SR-Workforce Safety, SR-Human Rights, SR-Diversity, Equity and Inclusion Scope 2 GHG Emissions (metric tons CH) 339,086 387,516 370,687 Reporting Program (GHGRP)"
DVN_2024_SustainabilityReport.txt,"below
the basin-level reporting
Percent of Scope 1 Methane Emissions Attributed to threshold.
6% 5% 6%
Gathering and Boosting Segment
Gross Annual Volume of Flared Gas (Mcf) 6,392,007 3,690,182 3,208,217
Percentage of gas flared per Mcf of gas produced
Gross Annual Volume of Flared Gas (Mcf)/Gross 0.93% 0.49% 0.40%
Flaring Annual Gas Production (Mcf)
Volume of gas flared per barrel of oil equivalent produced
Gross Annual Volume of Flared Gas (Mcf)/Gross 0.023 0.013 0.010
Annual Production (Boe)
89 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_2024_SustainabilityReport.txt,"tensity million metric tons COe/mmcf N/A N/A N/A
2
Combined OSHA Recordable Cases 67 81 108
Annual Employee Workhours 4,159,126 3,577,011 3,981,390 Additional Intensity Metrics, if applicable
(e.g., further disaggregated by constituent
Annual Contractor Workhours 22,838,296 26,929,754 36,678,281 4.8 GHG or by more granular business asset, and/ ✓ Yes No
or for additional business assets beyond these
Methodology CAPP CAPP CAPP
categories)
Annual Combined Workhours 26,997,422 30,506,765 40,659,671
90 Devon Energy 2024 Sustainability Report ReportingOverview Environment Safety & Security Governance Social Workforce Reporting"
DVN_CCAR23.txt,"w.devonenergy.com.
ANADARKO
BASIN
DELAWARE
BASIN
EAGLE FORD
5 Devon Energy 2023 Climate Change Assessment ReportBack to Contents
Governance and Risk Management
Board Oversight of Climate Risks and Opportunities
Board of Directors
Devon’s Board of Directors (Board) has primary responsibility
Climate and ESG Metrics are
for oversight of the company’s risk management efforts,
Actively Linked to Executive
including oversight of our climate risk assessment and
GOVERNANCE,
AUDIT RESERVES COMPENSATION
strategy. The Board maintains standing committees for specific ENVIRONMENTAL, AND and Employee Compensation"
DVN_CCAR23.txt,"nt and
GOVERNANCE,
AUDIT RESERVES COMPENSATION
strategy. The Board maintains standing committees for specific ENVIRONMENTAL, AND and Employee Compensation
COMMITTEE COMMITTEE COMMITTEE
PUBLIC POLICY COMMITTEE
areas of risk: Audit, Compensation, Reserves, and Governance,
Environmental, and Public Policy (GEPP). The work of those To encourage progress toward our long-term
committees with respect to climate matters is described at a Executive Committee climate goals, we continue to tie climate and
ESG performance to executive and employee"
DVN_CCAR23.txt,"with a 15%
relating to Devon’s EHS efforts and social responsibility for Devon’s senior executives, including metrics relating to incorporate and scale the use of technologies in Devon’s weighting—together accounting for 30% of the
programs; reviews stakeholder engagement on key ESG topics; ESG and environmental performance, and providing oversight operations. Through regular engagement, the Board provides company’s overall performance scorecard that
determines cash bonuses. These performance-
advises the Board on significant public policy issues; and of the company’s employee benefit programs. The Board strategic oversight on this dynamic area for the company."
DVN_CCAR23.txt,"ogies in Devon’s weighting—together accounting for 30% of the
programs; reviews stakeholder engagement on key ESG topics; ESG and environmental performance, and providing oversight operations. Through regular engagement, the Board provides company’s overall performance scorecard that
determines cash bonuses. These performance-
advises the Board on significant public policy issues; and of the company’s employee benefit programs. The Board strategic oversight on this dynamic area for the company.
bonus targets affect every employee’s"
DVN_CCAR23.txt,"review Annual maximum
daily temperature temperature below consecutive dry days (e.g. IPCC) 5-day precipitation
While acute risks may result in sudden failure of assets and above 95°F threshold ranging from (Inches)
32°F to 0°F
disruption of operations, chronic risks pose other issues,
such as prematurely aging assets and altering standard
Production Facilities
operating practices. Operational procedures may need to
be updated to account for these chronic changes, such as Pump Stations (SWD) NA
revised employee safety guidance to account for generally"
DVN_CCAR23.txt,"d exercises on the NIMS
disasters. Devon has intentionally built a robust emergency Incident Command System (ICS) to prepare employees for
preparedness program and culture, centered around a flexible effective incident response. For example, Devon completes a
capabilities-based approach that can scale with the intensity hurricane scenario exercise annually prior to each hurricane
and frequency of future events for enhanced resilience. season, and reviews severe weather/tornadic activity systems
each spring. When a Devon employee enters the Incident"
DVN_CCAR23.txt,"r more centralized nature of Devon’s emergency response system each emergency response or drill. Any corrective actions
enabling them to access federal funding and meet
information, see the Physical Risk Assessment section. ensures that the program and response are consistent across are incorporated into our EHS incident management system.
medical facility accreditation requirements.
the company and cover all assets, regardless of whether an When emergencies and incidents occur, these practices
Oil and natural gas extraction operations have been asset is considered to be in a hazard-prone area or not. enable Devon to protect our workforce and assets, as well as"
eaton-sustainability-report.txt,"ion, cross-functional
boost their knowledge, acknowledge their alignment and driving a zero-defect mindset.
work and remain focused on safety.
EATON 2023 Sustainability Report 25SUPPLY CHAIN Introduction Environment Social Governance ESG Disclosures
At Eaton, we care about creating a sustainable and ethically managed supply chain to make the world a better place for all.
We strive to create transparent relationships with our suppliers, with clear expectations and explicit guidance governing the
way we do business. Our suppliers’ worker health and safety is a top priority. We require our suppliers to affirm commitments"
eaton-sustainability-report.txt,"hallenges for manufacturing and By 2030, under the lower temperature scenario, the
field service work. Longer term, population migration number of assets that change from a low and moderate
and related social issues could impact workforce hazard index to a high or extreme level increases
availability. High heat temperature allowances for hourly dramatically with 3% of assets projected to have an
staff in related working areas can lead to increased extreme exposure related to temperature and 86%
costs, higher employee turnover and worker shortages. projected to have high exposure. By 2050, analysis"
eaton-sustainability-report.txt,"416: Customer
Report page 38
Health and Safety 416-2 Incidents of non-compliance concerning the health and safety impacts of Sustainability Report
products and services page 37. 69. 74
GRI 403: 403-1 Occupational health and safety management system Sustainability Report 2016
page 24, 67
Occupational
Health and Safety Sustainability Report
403-2 Hazard identification, risk assessment, and incident investigation
2018 page 24, 67
Sustainability Report
403-3 Occupational health services
page 24, 67
403-4 Worker participation, consultation, and communication on occupational Sustainability Report"
eaton-sustainability-report.txt,"ducts and services page 37. 69. 74
GRI 403: 403-1 Occupational health and safety management system Sustainability Report 2016
page 24, 67
Occupational
Health and Safety Sustainability Report
403-2 Hazard identification, risk assessment, and incident investigation
2018 page 24, 67
Sustainability Report
403-3 Occupational health services
page 24, 67
403-4 Worker participation, consultation, and communication on occupational Sustainability Report
health and safety page 24, 67
Sustainability Report
403-5 Worker training on occupational health and safety"
eaton-sustainability-report.txt,"t system Sustainability Report 2016
page 24, 67
Occupational
Health and Safety Sustainability Report
403-2 Hazard identification, risk assessment, and incident investigation
2018 page 24, 67
Sustainability Report
403-3 Occupational health services
page 24, 67
403-4 Worker participation, consultation, and communication on occupational Sustainability Report
health and safety page 24, 67
Sustainability Report
403-5 Worker training on occupational health and safety
page 24, 67
Sustainability Report
403-6 Promotion of worker health"
eaton-sustainability-report.txt,"o resolve this crisis, and we’re
OUR VISION
sustainable solutions, bringing us closer to our goal of embracing this power to ensure people everywhere will
To improve the quality of life and the environment through the use of power management
$3 billion; and reducing Scope 3 emissions by 25%. continue to live on our planet safely and sustainably.
technologies and services.
• We’ve continued to build a culture that keeps our
people and our values at the center of all we do,
OUR ASPIRATIONAL GOALS
driving important improvements in employee safety"
eaton-sustainability-report.txt,"to
• Carbon neutral by 2030
net zero by 2050. And it is not just carbon, we know we must also
• 100% manufacturing sites certified zero waste to landfill
consider our impacts on nature and sustainable development.
• 10% manufacturing sites certified zero water discharge
At Eaton, we believe we can help solve this. We can improve the
quality of life and the environment while we grow and create Engaging our employees and communities
good opportunities for our employees, our customers and society.
• 8 0%+ employee engagement rating"
eaton-sustainability-report.txt,"o by 2050. And it is not just carbon, we know we must also
• 100% manufacturing sites certified zero waste to landfill
consider our impacts on nature and sustainable development.
• 10% manufacturing sites certified zero water discharge
At Eaton, we believe we can help solve this. We can improve the
quality of life and the environment while we grow and create Engaging our employees and communities
good opportunities for our employees, our customers and society.
• 8 0%+ employee engagement rating
• 12 hours training and development per employee per year"
eaton-sustainability-report.txt,"our digital solutions.
• Report priority ESG issues based on credible frameworks
• Disclose U.S. minority and global gender pay equity assurance results
EATON 2023 Sustainability Report 5Introduction Environment Social Governance ESG Disclosures
2023 SUSTAINABILITY DASHBOARD
We’re making considerable progress in achieving our goals. Here are our most recent results:
Engaging our employees Doing business right
Creating sustainable
Reducing our footprint
and communities and transparency
solutions
Sustainable solutions Greenhouse gas Employee engagement Safety results"
eaton-sustainability-report.txt,"obal gender pay equity assurance results
EATON 2023 Sustainability Report 5Introduction Environment Social Governance ESG Disclosures
2023 SUSTAINABILITY DASHBOARD
We’re making considerable progress in achieving our goals. Here are our most recent results:
Engaging our employees Doing business right
Creating sustainable
Reducing our footprint
and communities and transparency
solutions
Sustainable solutions Greenhouse gas Employee engagement Safety results
71%* 31% 84% .43 .20
reduced since 2018
Goal: Increase net sales from solutions that Goal: Reduce Scope 1 and 2 emissions in our Goal: Achieve and maintain employee engagement Goal: Achieve Total Goal: Achieve Days Away"
eaton-sustainability-report.txt,"ment Safety results
71%* 31% 84% .43 .20
reduced since 2018
Goal: Increase net sales from solutions that Goal: Reduce Scope 1 and 2 emissions in our Goal: Achieve and maintain employee engagement Goal: Achieve Total Goal: Achieve Days Away
enable a more sustainable future operations 50% (science-based target) scores of 80% or higher Recordable Case Case Rate (DACR) of 0.15
Rate (TRCR) of 0.25
Sustainable R&D investment Waste Training hours Suppliers
$1.3 ** 79% 14.7 95%
B zero waste to landfill
Goal: Invest more than $3 billion in R&D aligned with Goal: Certify 100% of our manufacturing sites Goal: Commit to 12 hours of employee development Goal: Suppliers representing 100% of supplier spend"
eaton-sustainability-report.txt,"Achieve Total Goal: Achieve Days Away
enable a more sustainable future operations 50% (science-based target) scores of 80% or higher Recordable Case Case Rate (DACR) of 0.15
Rate (TRCR) of 0.25
Sustainable R&D investment Waste Training hours Suppliers
$1.3 ** 79% 14.7 95%
B zero waste to landfill
Goal: Invest more than $3 billion in R&D aligned with Goal: Certify 100% of our manufacturing sites Goal: Commit to 12 hours of employee development Goal: Suppliers representing 100% of supplier spend
our Positive Impact Framework by 2030 as zero waste to landfill and training per employee, per year have affirmed our Code of Conduct"
eaton-sustainability-report.txt,"s Suppliers
$1.3 ** 79% 14.7 95%
B zero waste to landfill
Goal: Invest more than $3 billion in R&D aligned with Goal: Certify 100% of our manufacturing sites Goal: Commit to 12 hours of employee development Goal: Suppliers representing 100% of supplier spend
our Positive Impact Framework by 2030 as zero waste to landfill and training per employee, per year have affirmed our Code of Conduct
Value chain emissions Water Volunteer hours Pay equity
16% 73,183
25% down since 2018 zero water discharge
Goal: Reduce Scope 3 emissions from our solutions Goal: Certify 10% of manufacturing sites Goal: Record 250,000 hours of employee volunteer Goal: Share our minority and gender pay equity"
eaton-sustainability-report.txt,"rification of transport and grid resilience and stability.
**Sustainable R&D represents an estimate of our R&D spend that aligns with certain aspects of our Positive Impact Framework and other similar investments.
EATON 2023 Sustainability Report 6Introduction Environment Social Governance ESG Disclosures
WE ADVANCE SUSTAINABLE DEVELOPMENT GOALS (SDGs)
Consistent with our vision to improve
the quality of life and the environment
as a participant in the U.N. Global
Compact, Eaton is committed to
advancing the United Nations Employee health and well- We are committed to pay equity and We focus on responsible water Our solutions help to reduce We respect human rights and"
eaton-sustainability-report.txt,"NT GOALS (SDGs)
Consistent with our vision to improve
the quality of life and the environment
as a participant in the U.N. Global
Compact, Eaton is committed to
advancing the United Nations Employee health and well- We are committed to pay equity and We focus on responsible water Our solutions help to reduce We respect human rights and
being is a business priority. have established processes to drive practices to maximize our efficient emissions and waste and are require our suppliers to do the
Our management of employee equitable pay decisions, we aim to use of resources and minimize also used in renewable energy, same. Our Code of Ethics and"
eaton-sustainability-report.txt,"d global workforce by effluents. We manufacture storage applications. forth our commitment to respect
through our 2030 sustainability targets.
good health and well-being. and we offer career transition solutions that are used in human rights and the dignity of
programs for individuals who have processes that improve water all individuals. We offer training,
Eaton tracks the alignment of our taken significant career breaks and are efficiency, quality, sanitation and apprenticeship, mentoring and
looking to resume their professional desalination. employee development programs."
eaton-sustainability-report.txt,"through energy efficiency
Our goal is to reduce programs, Eaton’s energy efficiency certification process evaluates
our sites’ total energy savings, the strength of ongoing energy Eaton’s Reynosa Mobility site reduced their electricity consumption by nearly 10% through several efficiency
Scope 1 and 2 emissions by
monitoring programs and the quality of site action plans, as well as projects including variable speed air compressor upgrades, solar powered parking lot lighting, and indoor lighting
50% local employee engagement and leadership commitment. retrofits. In our site in Casablanca, the team reduced energy consumption by 2% with a shutdown/standby"
eaton-sustainability-report.txt,"sidents unique background, knows their voice matters and that they can
and Diversity
Our
Provides regional focus, leadership support, resources and accountability contribute and grow with us. It’s who we are—and it's how we
Our organizoartgiaonniazla mtioondaell
thrive as individuals, a team and an organization year after year.”
model Managers
Hold themselves and others accountable for an inclusive and diverse workplace
We aspire to ensure the diversity of our workforce reflects the marketplace
Every employee"
eaton-sustainability-report.txt,"es. Our wellbeing program focuses on
workforce
remains a critical focus for our company, the heart of an supporting our employees’ diverse needs. three dimensions:
leverages flex
inclusive experience lies in leaders who actively build an
environment of trust where individuals and teams thrive. work solutions In 2023, the total number of employees participating in Physical wellbeing
a flexible work solution was 7,000, or nearly 7% of our We encourage our employees to live life to the fullest and
Active employee listening global workforce. Telework remained the most utilized prioritize their physical health through programs such as Be"
eaton-sustainability-report.txt,"t Healthy, Get Fit and Know Your Numbers.
To stay close to the pulse of what matters to our employees
we are always listening. And we formally ask our employees
Emotional wellbeing
to make their voices heard through our biennial census
survey that monitors our progress. We believe if we ask, We believe emotional wellbeing is critical to balancing
we should act. Feedback from our survey has improved Growing our mental health ally community physical and mental health. In 2023 we held more than 75
the employee experience in many ways, including our events on mental health alone, attracting more than 5,100"
eaton-sustainability-report.txt,"2023, our WAVE
(Women Adding Value at Eaton) iERG organized a
parenthood event on International Women’s Day
to increase awareness of our parenting support
services, fertility benefits and paid parental leave
84%
policy. Our PRIDE (LGBTQ+ and allies) iERG
facilitated an annual enrollment meeting where
LGBTQ+ employees could discuss tailored benefits
in a safe space. Our SOAR (Strengthening our Asian
Resources—Asian American) iERG invited two-time
Golden Glove awardee Steven Kwan to a discussion
Employee engagement rate"
eaton-sustainability-report.txt,"e who serve know someone
inclusion and belonging.”
has their backs.
of all employees of iERG of all women of all U.S. of leaders of people
Presenting are in at least members are are in at least minorities are in at are in at least
for success one iERG. millennials. one iERG. least one iERG. one iERG
ENGAGE’s Leadership
Presenting Skills
program invites
participants to improve
20% 1000+ 25% 114 75%
their public speaking skills by
presenting to an audience for five
to seven minutes. Xinwei Li, an
employee in Shanghai, appreciated"
eaton-sustainability-report.txt,"the EPQPL Pondicherry team
without a single recordable injury. At Eaton, we know that safety doesn’t happen by accident. It happens when our teams are engaged
qualified to attend the 35th Confederation of India (CII) National Level Quality Circle Competition in
and proven, standard processes are executed the right way, every time. With this in mind, the leadership at ICD Frontera reworked the
April. At the national level, about 45 teams competed from top industries around India. The Eaton team
employee onboarding process and deployed a “Positive Interrupters” initiative that engaged the teams and ultimately improved the"
eaton-sustainability-report.txt,"eloping our ESG and sustainability strategy and initiatives.
Texas, a global chemical and
specialty materials company
Sustainability Executive Council
Gregory R. Page 2, 4, 6
Chairman and Chief Executive Officer Lead Independent Director
Retired Chairman and Chief Executive Gerald B. Smith 1*, 4, 6
Officer, Cargill Incorporated, Chairman, Smith, Graham &
Eaton Board of Directors
Minneapolis, Minnesota, an Company, Houston, Texas,
international marketer, processor and an investment advisory firm
Doing business right Employee engagement"
eaton-sustainability-report.txt,"coincided with the launch 1,931
deliver, we strive every day to drive ethics and compliance to of our refreshed and updated Code of Ethics—The Power of Integrity—which was widely promoted throughout the
the center of the business. This begins with a strong tone at the organization. The new Code includes a new image that underscores the interconnectedness of our ten principles.
top, which we work to cascade throughout the organization.
Our philosophy is simple: We all own ethics. We believe that
every Eaton employee plays a role in creating and sustaining matters through our whistleblower"
eaton-sustainability-report.txt,"ip Committee (SLC) and the Supplier environmental impacts and procurement
Equipment) to represent the investor view.
EATON 2023 Sustainability Report 38GENERAL DISCLOSURES Introduction Environment Social Governance ESG Disclosures
practices are covered under the new topic of supply and the specific materials or suppliers known to be
Suppliers and workers in the Own operations/ Customers and
chain management. potentially at risk (Figure 3). supply chain Own workforce/Communities channel partners
Employee safety and well-being"
eaton-sustainability-report.txt,"y
Risk factors under
• Biodiversity based software to review customer, supplier and Sector-based value Type of work Political stability
consideration
chain risks Geography Cybersecurity
• Transition to a circular economy peer financial and sustainability reports as well as
Cybersecurity
• Cybersecurity and information security media and investor frameworks to understand the
Equitable work environment
• Human rights ESG priorities of affected stakeholder groups. Eaton’s
Physical risk assessments
• Community support and development internal stakeholders are consulted through employee"
eaton-sustainability-report.txt,"ircular economy peer financial and sustainability reports as well as
Cybersecurity
• Cybersecurity and information security media and investor frameworks to understand the
Equitable work environment
• Human rights ESG priorities of affected stakeholder groups. Eaton’s
Physical risk assessments
• Community support and development internal stakeholders are consulted through employee
External assessments MESH assessments
• Product safety and quality surveys, townhall meetings, and our ERM process.
Risk software Employee surveys"
eaton-sustainability-report.txt,"gy. Compensation and Organization Committee: is responsible for overseeing and reporting on mitigation plans.
Our Board works with management to consider specific issues The Compensation and Organization Committee is responsible Each quarter, the Board of Directors receives an update on the Governance topics: Business ethics
relevant to the overall conduct of our businesses, including for reviewing relevant matters related to the social pillar of ESG, status of key risks and mitigation actions.
strategy, emerging challenges and enterprise risks, safety, which may include matters such as employee engagement, Sustainability incentives"
eaton-sustainability-report.txt,"s
Electrical, Mobility and
Planning allocation
M ake
improvements
provide direction
Align
goals Aerospace market segments
establish targets
Growth
Human 90,000+ employees, Foundation communicate, For society
Learning refine, adjust Operational
capital 160 countries Stakeholder Excellence Innovation
Identify
opportunities
Ac
r
so em
sfi
enm
e
s,u
s
an mdic jua est ne t,
t
Achieve
results
Creating sustainable
$ s1 in.3 cB
e
i 2n
0
2s 0ustainable R&D
solutions
Environmental 8 M GJ energy Employees
resources 2,818 ML water At the core of our foundation are our Vision and Aspirational goals 84% employee engagement"
eaton-sustainability-report.txt,"and programs on market conditions and capital levels. services teams. Eaton’s MESH program is the management specific subjects. In addition, we have programs
to mitigate those impacts will need to continue to be program for how Eaton uses and reduces our consumption of focused on career development of employees at
developed. In general, our business strategy will impact Value chain inputs: environmental resources and manages them appropriately. all levels and we are committed to a wide range of
our need for a resilient supply chain and our ability to have Inputs: Eaton's major requirements for raw materials strategies designed to improve and sustain employee"
eaton-sustainability-report.txt,"ps span 12 • Earnings per share were $8.02. • 16% zero water discharge certified manufacturing
different countries and offer us unique opportunities • Segment margins were 22%. sites Results are delivered to key leaders within each business and
to participate in early state technologies and • 2023 net sales were $23.2 billion, up 12% from 2022. follow-up action plans are developed and monitored.
accelerate new product development and testing in • Organic revenue grew 12%. Stakeholder engagement
addition to unique opportunities to gather customer We create value for our customers. We continued to invest in Our business operations affect many groups and organizations Employee engagement: to foster a"
eaton-sustainability-report.txt,"ny groups and organizations Employee engagement: to foster a
feedback. high-growth, high-margin businesses to meet the changing across the globe. In turn, these stakeholders have a collaborative atmosphere of sustainability and
needs of our customers and strengthen our portfolio. fundamental impact on Eaton's sustainability performance. excellence at every level of our operations
Our approach to drive sustainable innovation is deploying We identify these groups based on each group's impacts and
Our primary method for measuring employee engagement"
eaton-sustainability-report.txt,"have a collaborative atmosphere of sustainability and
needs of our customers and strengthen our portfolio. fundamental impact on Eaton's sustainability performance. excellence at every level of our operations
Our approach to drive sustainable innovation is deploying We identify these groups based on each group's impacts and
Our primary method for measuring employee engagement
our Positive Impact Framework (PIF). To ensure every Eaton For society influence associated with our business practices.
is our biennial employee survey. The survey provides a"
eaton-sustainability-report.txt,"ive sustainable innovation is deploying We identify these groups based on each group's impacts and
Our primary method for measuring employee engagement
our Positive Impact Framework (PIF). To ensure every Eaton For society influence associated with our business practices.
is our biennial employee survey. The survey provides a
product improves on its predecessor, we ask our engineers Eaton’s employees continue to be highly engaged as reported Our key stakeholders for which engagement occurs are:
structured way to evaluate employee engagement and to"
eaton-sustainability-report.txt,"ese groups based on each group's impacts and
Our primary method for measuring employee engagement
our Positive Impact Framework (PIF). To ensure every Eaton For society influence associated with our business practices.
is our biennial employee survey. The survey provides a
product improves on its predecessor, we ask our engineers Eaton’s employees continue to be highly engaged as reported Our key stakeholders for which engagement occurs are:
structured way to evaluate employee engagement and to
to complete a PIF assessment during the design phase. in our annual employee survey. Employees received an • Customers"
eaton-sustainability-report.txt,"essor, we ask our engineers Eaton’s employees continue to be highly engaged as reported Our key stakeholders for which engagement occurs are:
structured way to evaluate employee engagement and to
to complete a PIF assessment during the design phase. in our annual employee survey. Employees received an • Customers
solicit ideas for how we can keep improving our workplaces.
This allows them to re-examine products from a different average of 12 hours of training and development, and we • Employees
We have held what is considered a favorable employee"
eaton-sustainability-report.txt,"hallenges for manufacturing and By 2030, under the lower temperature scenario, the
field service work. Longer term, population migration number of assets that change from a low and moderate
and related social issues could impact workforce hazard index to a high or extreme level increases
availability. High heat temperature allowances for hourly dramatically with 3% of assets projected to have an
staff in related working areas can lead to increased extreme exposure related to temperature and 86%
costs, higher employee turnover and worker shortages. projected to have high exposure. By 2050, analysis"
eaton-sustainability-report.txt,"and high exposure
to rise across a variety of regions in the coming decades risk increases. Assets with moderate or higher exposure
across both temperature scenarios. Second order impacts by 2050 for both temperature scenarios are spread
to energy systems, suppliers and logistics networks can throughout all continents.
be disrupted by wildfire. Eaton has sites that are potentially
at risk for increased wildfires causing poor or dangerous Under the higher temperature scenario by the 2030 period,
air quality, road closures, and employee health, safety and 5% of analyzed assets in the western U.S., northern"
eaton-sustainability-report.txt,"U.S. Gulf Coast and U.S. Atlantic Carolinas coast, Philippines • Invest in sustainable research and development
Fugitive emissions
and Southern China that are geographically located where targeted at creating sustainable solutions for our
hurricane intensity may increase. Potential operational risks customers that reduce our value chain emissions. We will implement alternative solutions to reduce fugitive emissions from refrigerants and sulfur hexaflouride (SF) from our
6
systems and processes.
include employee safety and on-time deliveries and loss"
eaton-sustainability-report.txt,"rature environments. Engineering controls
secular growth trends: sustainability, intelligent and connected Additionally, Eaton is in the process of analyzing eligible and extreme weather events exacerbated by climate change such as providing portable air conditioning units and
products, and electrification and energy transition. aligned CAPEX and OPEX as it relates to climate mitigation through its Business Continuity Management (BCM) installing barriers for radiant heat are deployed as needed.
activities as defined by the EU Green Taxonomy for reporting process. BCM is an Eaton process that requires each In addition, administrative controls, including employee"
eaton-sustainability-report.txt,"n
Eaton produced 7,532 MWH of renewable energy in 2023, which is equivalent to 0.6% of our total electricity consumption.
% change
Emissions in metric tons (CO e) 2018 2023 Emissions in metric tons (CO e) % change
since 2018 2018 2023
2 2 since 2018
Gross Scope 1 emissions 284,825 193,857 -32%
39,109 40,462 3%
5. Waste Generated in Operations
Gross Scope 2 emissions location-based 708,036 550,076 -22%
6. Business Travel 38,649 42,676 10%
Gross Scope 2 emissions market-based
700,727 488,850 -30%
7. Employee Commutes"
eaton-sustainability-report.txt,"ransportation of goods and
and storage. and deliver merchandise. Examples of capital goods are assigned based on the applicability of passenger air
services purchased or acquired by Eaton.
include equipment, machinery, buildings, facilities travel and rail travel emissions factors made available by
Category 11—Use of Sold Products: End use of and vehicles. See above description in Category 1 to the UK government conversions factors dataset. Eaton
Category 2—Capital Goods: Extraction, production
goods and services sold by Eaton. understand our spend based calculation methodology. also assesses the emissions impact from employee car"
eaton-sustainability-report.txt,"es: 4 2
sold by Eaton at the end of their life. extraction, transportation and distribution; 2) additional used to extrapolate GHG emissions across Eaton’s total
Extraction, production and transportation of fuels and
electricity generation emissions to account for grid spend with rental car providers.
energy purchased or acquired by Eaton, not already
Biogenic emissions of CO from combustion or bio- losses in distribution or purchased electricity to Eaton;
accounted for in Scope 1 or Scope 2. 2
degradation of biomass that occur in value chain are not 3) Well-to-Wheel (WTW) emissions (from extraction, C ategory 7—Employee Commuting: Employee"
eaton-sustainability-report.txt,"acquired by Eaton, not already
Biogenic emissions of CO from combustion or bio- losses in distribution or purchased electricity to Eaton;
accounted for in Scope 1 or Scope 2. 2
degradation of biomass that occur in value chain are not 3) Well-to-Wheel (WTW) emissions (from extraction, C ategory 7—Employee Commuting: Employee
included in Scope 3 GHG emissions. refining, production and transport) of Scope 1 fuels; commute-related GHG emissions are calculated
Category 4—Upstream Transportation and
and 4) WTW emissions from fuels used to generate based on employee headcounts and work schedules"
eaton-sustainability-report.txt,"P Supply Chain
the calculation method described above. considered to work one day per week at home. The
employees for business-related activities in vehicles program and Eaton’s internal supply chain database.
total number of commuting days (by year and country)
not owned or operated by Eaton. Eaton applies spend-based emissions factors from the
Category 5—Waste Generated in Operations: As per are calculated based on a 48-week working year for
U.S. Environmentally Extended Input-Output Database
GHG protocol, Category 5 “includes emissions from each employee. In certain countries and facilities,"
eaton-sustainability-report.txt,"e
employees for business-related activities in vehicles program and Eaton’s internal supply chain database.
total number of commuting days (by year and country)
not owned or operated by Eaton. Eaton applies spend-based emissions factors from the
Category 5—Waste Generated in Operations: As per are calculated based on a 48-week working year for
U.S. Environmentally Extended Input-Output Database
GHG protocol, Category 5 “includes emissions from each employee. In certain countries and facilities,
Category 7—Employee Commuting: Transportation (USEEIO)."
eaton-sustainability-report.txt,"also a signatory to the United Nations Global Compact.
There are potential material impacts identified in Eaton’s
Hazardous waste in 2023 (metric tons) impact, risk and opportunity analysis related to our own Management approach
employees: Occupational Health and Safety, Fair and Inclusive The Compensation and Organization Committee is responsible
Hazardous waste diverted from disposal due to recycling 2,303 Workplace and Human Rights. for reviewing relevant matters related to the social pillar
of ESG, which may include matters such as employee"
eaton-sustainability-report.txt,"ees and suppliers.
Non-recycled waste 24,783 engage with the Compensation and Organization Committee
of the Board on talent and total rewards and with the Board of
Eaton’s commitment to human rights is set out in our Code of
Directors annually on the development of talent for
Percentage of non-recycled waste 13%
Ethics. This applies worldwide.
succession planning.
Figure 20: waste metrics
EATON 2023 Sustainability Report 65OUR EMPLOYEES Introduction Environment Social Governance ESG Disclosures
To be competitive in the marketplace, we focus on attraction, human rights in our business practices and for avoiding This team engages with the Global Inclusion Council on a measures of progress, such as employee and exit surveys."
eaton-sustainability-report.txt,"mployee and exit surveys.
engagement, development and retention targets. Success complicity in human rights violations consistent with our biannual basis and the Board of Directors on an annual basis. Periodically, sector, business and Regional Inclusion Councils
is measured through key performance metrics focused on values and Code of Ethics, other group policies and applicable All leaders are responsible for ensuring their functions and present their accomplishments and progress to the Global
outcomes mentioned above. The team solicits and utilizes laws. This Policy is being introduced in 2024 and we will report organizations are inclusive and diverse and every employee is Inclusion Council. Annually, the vice president of Inclusion"
eaton-sustainability-report.txt,"responsible for creating an inclusive environment. All leaders and Diversity, who heads the global inclusion and diversity
and hiring teams, using it to continuously improve the function. 2024 report. have access to global and regional inclusion and diversity tools team and reports to a member of the Senior Leadership
Our 2030 sustainability target is to provide an average of 12 to ensure their functions and organizations are inclusive and Committee, reports progress to the Board of Directors,
training hours per employee, annually. Anti-discrimination policy diverse. including diversity representation, iERG participation and"
eaton-sustainability-report.txt,"obal and regional inclusion and diversity tools team and reports to a member of the Senior Leadership
Our 2030 sustainability target is to provide an average of 12 to ensure their functions and organizations are inclusive and Committee, reports progress to the Board of Directors,
training hours per employee, annually. Anti-discrimination policy diverse. including diversity representation, iERG participation and
Eaton’s Code of Ethics projects, and progress on inclusion and diversity initiatives
Remedies for human rights impacts Respecting diversity and fair employment practices: We Strategic approach: Eaton’s Global Inclusion Council develops and programs. Employee-listening surveys are among"
eaton-sustainability-report.txt,"tions are inclusive and Committee, reports progress to the Board of Directors,
training hours per employee, annually. Anti-discrimination policy diverse. including diversity representation, iERG participation and
Eaton’s Code of Ethics projects, and progress on inclusion and diversity initiatives
Remedies for human rights impacts Respecting diversity and fair employment practices: We Strategic approach: Eaton’s Global Inclusion Council develops and programs. Employee-listening surveys are among
Our commitment to protecting and respecting human rights are committed to respecting a culturally diverse workforce goals for inclusion and diversity. Regional Inclusion Councils the processes we use to inform progress. Employee-"
eaton-sustainability-report.txt,"thics projects, and progress on inclusion and diversity initiatives
Remedies for human rights impacts Respecting diversity and fair employment practices: We Strategic approach: Eaton’s Global Inclusion Council develops and programs. Employee-listening surveys are among
Our commitment to protecting and respecting human rights are committed to respecting a culturally diverse workforce goals for inclusion and diversity. Regional Inclusion Councils the processes we use to inform progress. Employee-
is established by our Code of Ethics and our Supplier Code of through practices that provide equal access and fair treatment are responsible for executing on global goals and setting listening surveys help us monitor the employee experience"
eaton-sustainability-report.txt,"rimination the Senior Leadership Committee and Regional Inclusion and uses them to inform our approach to talent and
We do not employ anyone under the age of 16, or under the Policies prohibit discrimination based on race, gender, color, Councils. These include action-based inclusion goals, which development.
minimum age required by local law if higher, except as part of disability, national origin, age, religion, sexual orientation, are part of the performance goals for leaders. Inclusion ERGs
an authorized program such as an apprenticeship. veteran status, citizenship, socio-economic status, gender (iERGs) provide enterprise-wide and site-level support to Employee Listening at Eaton occurs in multiple ways intended"
eaton-sustainability-report.txt,"rized program such as an apprenticeship. veteran status, citizenship, socio-economic status, gender (iERGs) provide enterprise-wide and site-level support to Employee Listening at Eaton occurs in multiple ways intended
identity and/or expression, or other status protected by law. attract, retain and develop talent in support of business goals. to assess the engagement of our employees.
Eaton has established rigorous governance and risk All Global Inclusion Council members are executive sponsors
management processes to identify and mitigate a broad Our policies that support our own workforce include: for an iERG. Global employee survey"
eaton-sustainability-report.txt,"n and develop talent in support of business goals. to assess the engagement of our employees.
Eaton has established rigorous governance and risk All Global Inclusion Council members are executive sponsors
management processes to identify and mitigate a broad Our policies that support our own workforce include: for an iERG. Global employee survey
spectrum of supply chain risks. Various mechanisms, including Respecting Diversity and Fair Employment, Harassment-free • Administered every 18 months.
a global Help Line, have been implemented for the reporting Workplace, Transgender Guidelines, Flexible Work Solutions, Eaton’s Ethics Help Line is an independent, anonymous • Audience: Targeted to entire global employee"
eaton-sustainability-report.txt,"lexible Work Solutions, Eaton’s Ethics Help Line is an independent, anonymous • Audience: Targeted to entire global employee
of any ethical concern or potential or actual legal violation. Any Inclusion and Diversity Policy, and Environmental Health and whistleblower hotline with legal protection and a dedicated population.
person, including employees and suppliers, may openly or Safety Policy. resource for employees and any other person (including • Purpose: to obtain actionable feedback on our
anonymously ask a question or report through our Help Line customers and suppliers) to ask a question, raise a concern, culture and employee experience, assess progress"
eaton-sustainability-report.txt,"iers) to ask a question, raise a concern, culture and employee experience, assess progress
or related means. If we learn of any allegations of forced labor, Our Board Members jointly oversee all corporate activities or report questionable conduct or business practices. towards sustainability and aspirational goals, provide
slavery or trafficking through our Help Line or any other means, and targets. Led by our CEO, the Global Inclusion Council and actionable feedback to continuously improve the
we will promptly investigate and act to remediate the situation, four Regional Inclusion Councils meet regularly to determine Our management approach is informed by our employee experience."
eaton-sustainability-report.txt,"all corporate activities or report questionable conduct or business practices. towards sustainability and aspirational goals, provide
slavery or trafficking through our Help Line or any other means, and targets. Led by our CEO, the Global Inclusion Council and actionable feedback to continuously improve the
we will promptly investigate and act to remediate the situation, four Regional Inclusion Councils meet regularly to determine Our management approach is informed by our employee experience.
which could include necessary actions up to termination of our strategy, objectives and initiatives. Our Global Inclusion employee’s perspectives."
eaton-sustainability-report.txt,"eam, which
businesses our expectations for protecting and respecting coordination for all our inclusion and diversity efforts. includes representation metrics, iERG metrics and other
EATON 2023 Sustainability Report 66OUR EMPLOYEES Introduction Environment Social Governance ESG Disclosures
improvement within critical focus areas. ethics and compliance are encouraged to speak up to the In addition, there are five specific questions on the biannual
° H ave new or significant leadership changes to
Ethics and Compliance team. Managers and other leaders are employee engagement survey that measure employee’s"
eaton-sustainability-report.txt,"the Ethics and Compliance team— related to employees' comfort in speaking up without fear of
the diverse perspectives of our employees, we have undertaken follow up by responding to employees’ questions and concerns retaliation.
° H ave taken significant action in response to census
a thorough process to gain insights from individuals who may and taking necessary actions.
survey data to measure progress and identity Non retaliation
be vulnerable to impacts or marginalized. This process involves
engagement best practices. a meticulous analysis of our global employee survey data Matters reported to the Help Line or directly to Eaton’s Ethics At a reporter’s election and subject to local law, reporting may"
eaton-sustainability-report.txt,"track progress, managed status (in the U.S. only) to identify potential disparities and areas addition to the Help Line, employees are encouraged to ask and compliance concerns.
by the businesses.
for improvement. Additionally, we conduct yearly focus group questions and report concerns to their managers or Human
discussions with employees from these groups to delve deeper Resources. At a reporter’s election and subject to local law, Eaton's Code of Ethics states: We do not retaliate against or
Onboarding survey into their experiences, challenges and suggestions for fostering reporting may be done anonymously. Eaton has a strict non- discipline any employee who in good faith raises a concern"
eaton-sustainability-report.txt,"aw, Eaton's Code of Ethics states: We do not retaliate against or
Onboarding survey into their experiences, challenges and suggestions for fostering reporting may be done anonymously. Eaton has a strict non- discipline any employee who in good faith raises a concern
• Approach and execution varies by sector/business. a more inclusive work environment. This process is embedded retaliation policy protecting employees who make good faith or makes a report. Our no-retaliation policy also applies to
in our human resources strategy for which our Chief Human reports of ethics and compliance concerns. employees assisting with an investigation. Any employee"
eaton-sustainability-report.txt,"e. investigation, immediately contact your manager. You can also
correlate to other listening. contact Human Resources, the Ethics and Compliance team or
offering support for underrepresented employees, ensuring their
unique experiences and needs are recognized and addressed Appropriate corrective actions are part of Eaton’s standard the Ethics Help Line.
Deeper listening sessions
within our organizational framework. By collaborating closely investigation process. Depending on the outcome of an
• All managers of people are expected to conduct a Employee development and engagement"
eaton-sustainability-report.txt,"ensuring their
unique experiences and needs are recognized and addressed Appropriate corrective actions are part of Eaton’s standard the Ethics Help Line.
Deeper listening sessions
within our organizational framework. By collaborating closely investigation process. Depending on the outcome of an
• All managers of people are expected to conduct a Employee development and engagement
with these groups, we are committed to driving meaningful investigation, corrective actions may include employment
survey feedback meeting or listening session with their change and creating an environment where every individual is action, additional training and modifications to processes or Based on employee input, we began implementing specific"
eaton-sustainability-report.txt,", 1:1, collaboratively, often with Ethics and Compliance, Human to move the needle on engagement. As we deployed these
all hands, roundtables. Through these initiatives, we aim to amplify the voices of Resources, legal counsel and managers providing input. initiatives, we leveraged an internal brand, “FutureReady,” to
underrepresented employees in our workplaces ensuring their Investigations also include root-cause analysis, and lessons present cohesive messaging to the organization and connect
All leaders are responsible for ensuring that engagement perspectives are heard, valued and integrated into our decision- learned from key investigations are periodically shared across everything to the employee voice. Since 2019 we have:"
eaton-sustainability-report.txt,"nto our decision- learned from key investigations are periodically shared across everything to the employee voice. Since 2019 we have:
happens, from the top down. The CEO sets long-term goals making processes. By combining quantitative data analysis with the organization. • Invested in technologies and resources that support
for engagement in our sustainability report. And then leaders skill development and career advancement (e.g. new
qualitative insights from focus groups and iERG insight, we
are expected to use employee engagement tools for individual Measuring the effectiveness of our ATS)."
eaton-sustainability-report.txt,"CEO sets long-term goals making processes. By combining quantitative data analysis with the organization. • Invested in technologies and resources that support
for engagement in our sustainability report. And then leaders skill development and career advancement (e.g. new
qualitative insights from focus groups and iERG insight, we
are expected to use employee engagement tools for individual Measuring the effectiveness of our ATS).
strive to cultivate a workplace culture that is not only diverse
and team performance management and to create, measure but genuinely inclusive, where every employee feels respected, ethics program • Deepened focus on leadership skill building."
eaton-sustainability-report.txt,"ividual Measuring the effectiveness of our ATS).
strive to cultivate a workplace culture that is not only diverse
and team performance management and to create, measure but genuinely inclusive, where every employee feels respected, ethics program • Deepened focus on leadership skill building.
and improve a collaborative and supportive work environment. • Launched of our first virtual career fair called
supported and empowered to thrive. We continually measure the impact and effectiveness of our
Business leaders use employee listening data to understand key “FutureReady Career Lab.”"
eaton-sustainability-report.txt,"and to create, measure but genuinely inclusive, where every employee feels respected, ethics program • Deepened focus on leadership skill building.
and improve a collaborative and supportive work environment. • Launched of our first virtual career fair called
supported and empowered to thrive. We continually measure the impact and effectiveness of our
Business leaders use employee listening data to understand key “FutureReady Career Lab.”
ethics and compliance program through a variety of data
employee experience drivers and determine opportunities for • Promoted ""FutureReady Fridays"" that dedicate a Friday"
eaton-sustainability-report.txt,"effectiveness of our
Business leaders use employee listening data to understand key “FutureReady Career Lab.”
ethics and compliance program through a variety of data
employee experience drivers and determine opportunities for • Promoted ""FutureReady Fridays"" that dedicate a Friday
Process for workforce concerns and grievance and metrics from our Help Line matters, leader feedback,
improvement. Methods may include pulse checks, roundtables, every other month to developing skills and growing our
mechanisms benchmarking, employee surveys and external assessments."
eaton-sustainability-report.txt,"zed action plans to drive • Refined our focus and expectations on internal
Resources. Employees who have concerns or questions about our program, consistent with leading practices.
candidateE cAaTrOeN. 2023 Sustainability Report 67OUR EMPLOYEES Introduction Environment Social Governance ESG Disclosures
Remuneration ratio provides a framework for systematically identifying and
Please see our annual proxy statement for a description of managing EHS risks, impacts and opportunities. It also guides
Employee metrics the ratio of the annual total remuneration ratio of the highest the businesses on integrating the management system"
eaton-sustainability-report.txt,"uneration ratio provides a framework for systematically identifying and
Please see our annual proxy statement for a description of managing EHS risks, impacts and opportunities. It also guides
Employee metrics the ratio of the annual total remuneration ratio of the highest the businesses on integrating the management system
Eaton has approximately 94,000 employees globally. paid individual to the annual total remuneration for our median into their strategic planning and operational processes to
employee calculated in accordance with SEC rules. drive accountability, results and continual performance"
eaton-sustainability-report.txt,"inciples and expectations are detailed here.
Total number of employees 93,781 basis. We offer the possibility for employees to self-identify Our Safety Principles require everyone to be responsible and
while responding our biennial Engagement Survey. The accountable for recognizing and correcting at-risk behavior
Number of employees in countries with at least 50 employees 93,318
number of employees who self-identified during the 2023 or unsafe conditions. The company will not permit retaliation
Turnover Engagement Survey as having any type of visible or invisible against an employee who in good faith reports a safety"
eaton-sustainability-report.txt,"2023 or unsafe conditions. The company will not permit retaliation
Turnover Engagement Survey as having any type of visible or invisible against an employee who in good faith reports a safety
type of physical or psychological disability represented 2.05% violation.
Employees who have left Eaton in 2023 19,820
of our total employees.
Zero tolerance lifesaving rules
Percentage voluntary and involuntary turnover 21%
Workforce health and safety Employees who violate core safety requirements may be
Figure 21: employee turnover metrics Care of our employees and the environment is the subject to disciplinary action up to and including termination."
eaton-sustainability-report.txt,"mployee who in good faith reports a safety
type of physical or psychological disability represented 2.05% violation.
Employees who have left Eaton in 2023 19,820
of our total employees.
Zero tolerance lifesaving rules
Percentage voluntary and involuntary turnover 21%
Workforce health and safety Employees who violate core safety requirements may be
Figure 21: employee turnover metrics Care of our employees and the environment is the subject to disciplinary action up to and including termination.
Employee headcount reported under above aligns to the Human Capital Management section of the Principal Activities section of responsibility of all leaders. The corporate environmental, We consider these expectations to be absolutes, because a"
eaton-sustainability-report.txt,"y and security (EHS) related Committee, reports to the Board of Directors on various EHS
Number of employees between 30-50 years old 52,710 activities. The foundations of MESH are the ISO 14001 matters monthly, quarterly and annually.
and ISO 45001 standards and MESH is established in
Percent of employees between 30-50 years old 56.2%
conformance with both standards. The management system
Number of employees over 50 years old 21,203
Safety metrics
Percentage of employees over 50 years old 22.6%
Employee fatalities as result of work-related injuries and work-related ill health 0"
eaton-sustainability-report.txt,"EHS
Number of employees between 30-50 years old 52,710 activities. The foundations of MESH are the ISO 14001 matters monthly, quarterly and annually.
and ISO 45001 standards and MESH is established in
Percent of employees between 30-50 years old 56.2%
conformance with both standards. The management system
Number of employees over 50 years old 21,203
Safety metrics
Percentage of employees over 50 years old 22.6%
Employee fatalities as result of work-related injuries and work-related ill health 0
Figure 22: employee metrics Contractor fatalities as result of work-related injuries and work-related ill health 0"
eaton-sustainability-report.txt,"h sets out our requirements AFFECTED COMMUNITIES cross functional employees, their responsibilities include:
Our Risk Assessment Process includes a risk scan of external
sources, intelligence gathering and internal alignment of on anti-corruption, labor and human rights issues as well as COMMUNITY INVOLVEMENT AND • Developing an annual community involvement plan and
the risk landscape. We evaluate risks based on severity protecting the environment. CHARITABLE GIVING budget to support activities
• Conducting employee-giving campaigns"
eaton-sustainability-report.txt,"esponsible Business • Organizing volunteer activities
address these risks. We identify risks at the issue level Management and oversight
Alliance (RBA), and fully support the vision and mission of • Responding to community requests for donations
and apply our evaluation across the spectrum of our Each year, Eaton donates to organizations in our communities
the RBA. Eaton has committed to progressively align its own
business activities. around the world. These donations support arts and culture,
operations with the provisions of the RBA Code of Conduct Our community involvement teams foster higher employee"
eaton-sustainability-report.txt,"rticipation and a strong sense of pride. Their individual efforts and
In addition, Eaton has established partnerships with NGOs and environment, health and human service programs and more.
do the same. Wherever possible, Eaton will seek to adopt contributions directly benefit the places where they live and work.
industry associations focused on supply chain human rights Grants reflect the focus defined by each local involvement team,
the RBA approach and tools in practical ways in the spirit of
risks and leverages their comprehensive resources to support address a community need, and support employee involvement."
eaton-sustainability-report.txt,"the stability of an the business in each country. The Community Affairs function
managed supply chain to make the world a better place for all.
existing supplier.
EATON 2023 Sustainability Report 69AFFECTED COMMUNITIES CONInStroUdMuctEioRnS AND EEnNvirDon UmeSnEt RS Social Governance ESG Disclosures
Eaton Charitable Fund grants are also made available to our communities with the Stover Award for community service. CONSUMERS AND END USERS throughout our diverse businesses. Our quality management
sites, commensurate with facility size. Our approach helps Any Eaton employee can nominate full-time employees who system helps Eaton sites embrace process discipline, identify"
eaton-sustainability-report.txt,"ess unit appoints address issues and achieve efficiency and effectiveness. The
Management and oversight
determining where we invest our time and money. a selection committee to review nominations. The committee Eaton Quality Management System has requirements above
The Quality Function relies on its Quality Management
chooses an award recipient based on the following criteria: and beyond the different industries we serve, with ISO 9001
System (QMS), which is designed to monitor and evaluate the
In 2023, we donated approximately $10 million in • Positive impact of the employee’s involvement in both applicable for most of our sites, IATF16949 applicable for sites"
eaton-sustainability-report.txt,"al annual audits to strengthen key processes
and Puerto Rico, we commit to the United Way through Stover Volunteerism Award recipients each receive a and compliance. Our sites perform internal audits on an annual
while evaluating compliance to QMS requirements. Our
an annual campaign. And for every dollar pledged by an commemorative award, a check for U.S. $5,000 payable to the basis and execute a QMS risk assessment at least twice per
Corporate Consumer Safety & Quality Council acts as a forum
employee, Eaton contributes 50 cents. nonprofit organization of their choice, and special recognition by year. We engage with third-party certification bodies to audit our"
eaton-sustainability-report.txt,"EQMS), part of
KPI 2018 2019 2020 2021 2022 2023 Quality policies and procedures
the Eaton Business System, works because our quality
The Eaton-specific QMS policies and procedures are defined
Charitable giving $12 Million $8.5 Million $10 Million $9 Million $10 Million $10 Million and operational excellence teams have created a proactive
based on Eaton practices, industry best practices, international
culture at all levels of the organization. Our Quality Policy is
standards and other sources.
Employee volunteer hours – – 33,435 18,739 45,771 73,183"
eaton-sustainability-report.txt,"se our quality
The Eaton-specific QMS policies and procedures are defined
Charitable giving $12 Million $8.5 Million $10 Million $9 Million $10 Million $10 Million and operational excellence teams have created a proactive
based on Eaton practices, industry best practices, international
culture at all levels of the organization. Our Quality Policy is
standards and other sources.
Employee volunteer hours – – 33,435 18,739 45,771 73,183
summarized by “I Own Quality,” which reflects the expectation
of the company that every employee, at all levels and within all"
eaton-sustainability-report.txt,"ial Governance ESG Disclosures
CYBERSECURITY vulnerabilities and provide industry insights as well as tools and Security review for product development The team is led by the senior vice president, Ethics and
Management and oversight other educational content. The product review helps establish security best practices and Compliance, who, by Charter of the Governance Committee,
recommendations while the product is in its infancy. After this reports to the Committee and has open and unrestricted
Eaton’s Code of Ethics, Acceptable Use Policy and Employee"
eaton-sustainability-report.txt,"addition to reporting to the
information and opportunities for Eaton’s business purposes
connected devices. For example, we’ve established the Eaton cost to fix in an early stage is significantly less. A product Governance Committee, the Charter of the Audit Committee
and not for unauthorized use. We properly maintain the
Cybersecurity SAFE (Security Assessment and Forensic review is used to walk through the concept of the product. of the Board further provides that that Committee shall receive
confidentiality of information and employee data entrusted"
eaton-sustainability-report.txt,"bility information related to Eaton ensure compliance with applicable data protection regulations, A strong foundation
from cyberattacks.
products. We are prepared to work in good faith with individual including the General Data Protection Regulation (GDPR). Our Code of Ethics is the foundation of our commitment to
researchers, ICS-CERT, security intelligence-gathering agencies, doing business right. The Governance Committee is charged
These policies and procedures are supported by standardized
customers and field personnel who might discover and submit Employee awareness on cybersecurity with annually reviewing our Code."
eaton-sustainability-report.txt,"duties. reporting may be done anonymously. scenarios, case studies and communications, including through
performance. We do not engage in unethical or illegal The Code also makes clear that we do business with many third our annual Reflections in Ethics report to employees. The
competition practices. parties, such as suppliers, distributors and agents. Their actions We have a strict no-retaliation policy, which prohibits retaliation e-learning curriculum is aligned with Eaton’s Enterprise Risk
We champion inclusion, diversity and equity can also impact our business and reputation. We do not allow against or disciplining any employee who in good faith raises a Management program and targeted to specific employees"
eaton-sustainability-report.txt,"m is aligned with Eaton’s Enterprise Risk
We champion inclusion, diversity and equity can also impact our business and reputation. We do not allow against or disciplining any employee who in good faith raises a Management program and targeted to specific employees
and ensure fair employment practices third parties to do on our behalf what we prohibit of ourselves. concern or makes a report. Our no-retaliation policy also applies based on their roles and responsibilities within the organization.
Annually, connected employees are asked to affirm that they to employees assisting with an investigation. Any employee The curriculum is designed to provide practical guidance on"
eaton-sustainability-report.txt,"hmark of 41%. overseeing and reporting on mitigation plans. Each quarter, the
for Eaton’s business purposes and not for unauthorized and accountability in handling ethics and compliance matters. Board of Directors receives a detailed update on the status of
use. We properly maintain the security of information and Matters reported to the Help Line or directly to Eaton’s Ethics Our risk-based compliance training program delivers key risks and mitigation actions. For alignment and visibility, the
employee data entrusted to us by Eaton or others. and Compliance team are monitored, tracked and reported to learning through live and online training as well as ongoing status of key risks and mitigation plans are also circulated to"
eaton-sustainability-report.txt,"ally states: “We do electrification programs.
Anti-corruption and related policies or Supplier Code of Conduct. In 2023, we launched a new and not make contributions on behalf of Eaton to political candidates o Supporting the implementation of new grid
comprehensive Third-Party Playbook, which outlines the life cycle or parties, even where lawful.” We operate a federal political modernization programs created by the Infrastructure
Eaton’s strict prohibition against corruption is embodied in our
of third-party management and responsibilities of the various action committee and use our employee contributions to support Investment and Jobs Act."
eaton-sustainability-report.txt,"tandards to increase emissions reductions.
updates to leadership, including updates on relevant regulatory
ethics and compliance program through a variety of data • Electrical technology, grid modernization and
2023 U.S. advocacy areas:
developments. We leverage our internal communication channels
and metrics from our Help Line matters, leader feedback, sustainability
to periodically update employees on lessons learned, policies and • E lectric vehicles, safety and transportation infrastructure
benchmarking, employee surveys and external assessments. o A dvocated to phase-out of Medium Voltage SF6"
eaton-sustainability-report.txt,"atters, leader feedback, sustainability
to periodically update employees on lessons learned, policies and • E lectric vehicles, safety and transportation infrastructure
benchmarking, employee surveys and external assessments. o A dvocated to phase-out of Medium Voltage SF6
developments relevant to anti-corruption. Anti-corruption-related o Advocated for new heavy-duty vehicle emission
In 2023, we made improvements to our Ethics and Compliance electrical switchgear to drive emissions reductions.
issues are also discussed during employee training as part of standards in the U.S."
eaton-sustainability-report.txt,"wable electricity [3] RT-EE-130a.1 7.8% 16.9% 20.7% quantity recovered
Environmental Management System (EMS) Y Y Y
Renewable electricity (Gj) 439,701 842,791 1,014,088
EATON 2023 Sustainability Report 74Introduction Environment Social Governance ESG Disclosures
Appendix A
SASB SASB
Topic Metric 2018 2022 2023 Topic Metric 2018 2022 2023
alignment alignment
Number of manufacturing sites, also called
Safety ""in-scope"" sites 195 198 Ethics Business ethics policy (y/n) RT-EE-510a.1 Y Y Y
and Health
% of sites with Risk Assessment performed 93% 94% Employee training on ethical standards (y/n) Y Y Y"
eaton-sustainability-report.txt,"ial Governance ESG Disclosures
Appendix A
SASB SASB
Topic Metric 2018 2022 2023 Topic Metric 2018 2022 2023
alignment alignment
Number of manufacturing sites, also called
Safety ""in-scope"" sites 195 198 Ethics Business ethics policy (y/n) RT-EE-510a.1 Y Y Y
and Health
% of sites with Risk Assessment performed 93% 94% Employee training on ethical standards (y/n) Y Y Y
Lost Time Incident Rate (Total incidents per Anti-Bribery Ethics Policy (y/n) Y Y Y
0.23 0.20 0.20
200,000 hrs worked or 100 FTE)
Employee Protection/Whistle Blower Policy (y/n) Y Y Y"
eaton-sustainability-report.txt,"gnment
Number of manufacturing sites, also called
Safety ""in-scope"" sites 195 198 Ethics Business ethics policy (y/n) RT-EE-510a.1 Y Y Y
and Health
% of sites with Risk Assessment performed 93% 94% Employee training on ethical standards (y/n) Y Y Y
Lost Time Incident Rate (Total incidents per Anti-Bribery Ethics Policy (y/n) Y Y Y
0.23 0.20 0.20
200,000 hrs worked or 100 FTE)
Employee Protection/Whistle Blower Policy (y/n) Y Y Y
Number of calls to helpline (whistleblower line) 1,888 1,641 1,931
Eaton encourages near miss (NM) and employee concern"
eaton-sustainability-report.txt,"ne) 1,888 1,641 1,931
Eaton encourages near miss (NM) and employee concern
reporting as part of our safety management system (MESH)
and promotes reporting as part of our Zero Incident Safety Total amount of monetary losses as a result of
Near miss frequency rate RT-IG-320a.1 legal proceedings associated with bribery or RT-EE-510a.2 No material No material
culture. NM are used as a leading indicator to identify areas losses losses
corruption
of risk and opportunity for continuous improvement. NM
reporting is tracked as a measure of employee engagement."
eaton-sustainability-report.txt,"ustainability Report
303-4 Water discharge
page 60-63
201-3 Defined benefit plan obligations and other retirement plans 10-K page 45
Sustainability Report
303-5 Water consumption Page 60-63, ESG Databook
GRI 204:
page 73
Procurement Sustainability Report
204-1 Proportion of spending on local suppliers
practices 2016 page 25-26
EATON 2023 Sustainability Report 77Introduction Environment Social Governance ESG Disclosures
Appendix B
GRI Standard Disclosure Location GRI Standard Disclosure Location
GRI 306: Waste 306-1 Waste generation and significant waste-related impacts Sustainability Report GRI 404: Training 404-1 Average hours of training per year per employee Sustainability Report"
eaton-sustainability-report.txt,"tainability Report
204-1 Proportion of spending on local suppliers
practices 2016 page 25-26
EATON 2023 Sustainability Report 77Introduction Environment Social Governance ESG Disclosures
Appendix B
GRI Standard Disclosure Location GRI Standard Disclosure Location
GRI 306: Waste 306-1 Waste generation and significant waste-related impacts Sustainability Report GRI 404: Training 404-1 Average hours of training per year per employee Sustainability Report
page 62-64 page 6, 43-44
2020 and Education
306-2 Management of significant waste-related impacts S pau gs eta 6in 2a -b 6i 4lity Report 2016 404-2 Programs for upgrading employee skills and transition assistance programs S pau gs eta 4in 3a -b 4i 4lity Report"
eaton-sustainability-report.txt,"business priority. have established processes to drive practices to maximize our efficient emissions and waste and are require our suppliers to do the
Our management of employee equitable pay decisions, we aim to use of resources and minimize also used in renewable energy, same. Our Code of Ethics and
Sustainable Development Goals (SDGs)
health and safety practices and increase the representation of women potential negative impacts caused grid management and energy Supplier Code of Conduct set
our wellness initiatives further within our salaried global workforce by effluents. We manufacture storage applications. forth our commitment to respect"
eaton-sustainability-report.txt,"following sources:
customers—creating and developing systems and processes that are connected, flexible and optimized. Innovative, water intake; water use; and wastewater generation (including noncontact cooling water). We implement a zero-water discharge
scalable and data-driven manufacturing models are resulting in higher product quality, decreased time-to-market, certification program where sites must consistently achieve an industrial wastewater discharge rate of 2% or less. Certified sites
reduced environmental footprint and a safer and more productive workforce. must manage industrial wastewater in a beneficial manner so that at least 98% of water is recycled and reused."
eaton-sustainability-report.txt,"President,
Global Inclusion
Regional Inclusion Council (RIC): Chaired by presidents unique background, knows their voice matters and that they can
and Diversity
Our
Provides regional focus, leadership support, resources and accountability contribute and grow with us. It’s who we are—and it's how we
Our organizoartgiaonniazla mtioondaell
thrive as individuals, a team and an organization year after year.”
model Managers
Hold themselves and others accountable for an inclusive and diverse workplace
We aspire to ensure the diversity of our workforce reflects the marketplace"
eaton-sustainability-report.txt,"aspire to ensure the diversity of our workforce reflects the marketplace
Every employee
and our communities.
Is their true self and works inclusively, appreciating differences and accepting new ideas
In support of our aspirations, by 2030, we aim to:
The power of many perspectives drives innovation and growth
Strive for representation of women and U.S. minorities on our board of directors and
senior leadership team
OurO imurp aimctpact
Increase representation of professional global women to 40%
Demonstrate inclusive Embrace inclusive Enhance collaboration Our workforce Increase representation of professional U.S. minorities to 34%"
eaton-sustainability-report.txt,"no employees.
ENGAGE (Eaton Next Generation Achieving Goals and Excelling) Veterans (Military veterans and supporters)
Our largest iERG with more than 9,000 members fosters intergenerational Values military veteran experiences and skillsets, supports troops, and in 2023,
awareness and understanding through unique experiences. witnessed a 26% year-over-year increase in its participation.
iConnect (Connecting Black, Indigenous, African and other People of Color) WAVE (Women Adding Value at Eaton)
Advances cultural awareness, racial equality and justice through a global network Dedicated to ensuring equity for women within our workforce through education,"
eaton-sustainability-report.txt,") WAVE (Women Adding Value at Eaton)
Advances cultural awareness, racial equality and justice through a global network Dedicated to ensuring equity for women within our workforce through education,
of chapters active in recruiting and retaining diverse talent. networking and providing business opportunities.
EATON 2023 Sustainability Report 19INCLUSION AND DIVERSITY Introduction Environment Social Governance ESG Disclosures
AN INCLUSIVE AND ENGAGED Embracing work-life balance Wellbeing at Eaton
WORKFORCE Our dedication to balancing personal and professional life Our view of wellbeing is a holistic approach beyond just work. When"
eaton-sustainability-report.txt,"s exciting, engaging and flexible work solutions (FWS). These options, including supported, they are more likely to feel included and engaged.
7%
meaningful. We want them to feel welcome, do their best of our global compressed work weeks, remote work, job sharing, In 2023 we held more than 180 global wellbeing events, attracting
work and choose to stay. While individual engagement part-time, flextime and telework have been integral to more than 12,000 employees. Our wellbeing program focuses on
workforce"
eaton-sustainability-report.txt,"es. Our wellbeing program focuses on
workforce
remains a critical focus for our company, the heart of an supporting our employees’ diverse needs. three dimensions:
leverages flex
inclusive experience lies in leaders who actively build an
environment of trust where individuals and teams thrive. work solutions In 2023, the total number of employees participating in Physical wellbeing
a flexible work solution was 7,000, or nearly 7% of our We encourage our employees to live life to the fullest and
Active employee listening global workforce. Telework remained the most utilized prioritize their physical health through programs such as Be"
eaton-sustainability-report.txt,"al webinars on topics ranging
skill development and career advancement.
from child mental health to seasonal affective disorder (SAD). Financial wellbeing
We learned in 2023 that our employees have a strong and We strive to help employees achieve financial security and
growing sense of inclusion, with the results of the survey the freedom to meet their goals for the future. In 2023, our
showing 84% engagement and 77% inclusion. In all, 81% initiatives reached new heights, as a remarkable 90% of
of our global workforce participated, with 86% responding Inclusion Eaton Resource Groups employees actively contributed to their 401(k) plans."
eaton-sustainability-report.txt,"ciated
her feedback. “It is not only a
of iERG members referrals came of total referrals employees were of mentoring
challenge for my speech and in the U.S. served from iERG hired were referred hired from iERG program participants
leadership skills,” she says, as talent scouts. members. by iERG members. referrals. were members.
“but an opportunity to improve
myself and be seen.”
EATON 2023 Sustainability Report 21INCLUSION AND DIVERSITY Introduction Environment Social Governance ESG Disclosures
STRENGTHENING THE DIVERSITY OF Welcoming people back to the workforce Our commitment to veterans"
eaton-sustainability-report.txt,"nsitioned from military to civilian jobs say our culture
Our Relaunch and ReSurge programs are tailored to individuals who took a career break made the difference. That is often because we recognize the principles that
Around the world, we are committed to attracting and
and are ready to resume their professional journey. Relaunch, offered in India, welcomed 11 veterans valued during their active duty: teamwork, taking pride in what they do
developing the best minds across every function—and it
employees to our workforce in 2023. Since its start in 2016, we have extended 103 full-time and embracing new ideas. We are committed to helping veterans reach their full"
eaton-sustainability-report.txt,"data include portions of our Scope 3 greenhouse gas
party, nor is Eaton implying or representing that this emissions. (See Appendix A)
disclosure represents compliance with CSRD. Eaton's assessment of material impacts, risks and
opportunities covers our full value chain including Eaton’s value chain metrics that use estimated indirect
We have made the following changes to the preparation our critical suppliers, workers in our value chain, sources are verified to ISO standards at a limited level
and presentation of sustainability information for 2023: own operations and workforce, our customers, our of assurance. Our Scope 3 product use emissions"
eaton-sustainability-report.txt,"sound.
reporting matters and boundaries. Code of Conduct, EHS policy and our Management of
EATON 2023 Sustainability Report 34GENERAL DISCLOSURES Introduction Environment Social Governance ESG Disclosures
Material financial risk
EATON 2023 Sustainability Report 35
ytilairetam
laicnaniF
Material sustainability matters Both material financial risk and impact
The following sustainability topics are determined
to be material based on Eaton’s 2023 Double
Materiality Matrix. These topics include ESRS
topics related to climate, own workforce, workers"
eaton-sustainability-report.txt,"o business (cross borders/in certain countries).
consumption include extraction and other types of • Fair and inclusive workplace: Eaton’s global operations, The likelihood of material financial impact if the risk is not Business continuity may be an opportunity for Eaton because
pollution in addition to greenhouse gas emissions. along with its value chain, have a significant impact on mitigated, in the long term, is higher based on regulatory we provide emergency response and crisis management
• Harmful substance management: Certain plants utilize fair and inclusive workplace of our workforce from a and stakeholder (customers and investors) trends. services to our customers. We can play a critical role in the"
eaton-sustainability-report.txt,"l health and safety: Eaton’s global financial performance is of moderate magnitude. We have provide critical infrastructure and services such as utilities,
possible that these substances could impact people or operations, along with its value chain, have a significant observed instances where severe weather events have hospitals and public transport networks.
the environment in the future. impact on occupational health and safety of our exerted a financial impact on our operations. However, the
• Water: We rely on water as a critical part of our workforce from a scope perspective. likelihood of these occurrences is ranked lower, given that Eaton uses cybersecurity best practices and above average"
eaton-sustainability-report.txt,"rs in the value chain.
Goods, Aerospace and Defense and Electrical and Electronic with the Senior Leadership Committee (SLC) and the Supplier environmental impacts and procurement
Equipment) to represent the investor view.
EATON 2023 Sustainability Report 38GENERAL DISCLOSURES Introduction Environment Social Governance ESG Disclosures
practices are covered under the new topic of supply and the specific materials or suppliers known to be
Suppliers and workers in the Own operations/ Customers and
chain management. potentially at risk (Figure 3). supply chain Own workforce/Communities channel partners"
eaton-sustainability-report.txt,"rategy is competitive analysis, the CIP is turning raw data into actionable
$610 million and $4,500 million to acquire businesses
and understanding. compensation. Eaton regularly benchmarks its insights with data science and custom algorithms to
in 2022 and 2021, respectively. There were no business
4. Drive continuous improvement, supporting compensation practices with industry peers to drive decision-making, improve business performance
acquisitions in 2023. The company will continue to focus
growth opportunities for both Eaton and our maintain a top performing workforce. and enable intelligent power management."
eaton-sustainability-report.txt,"ively unchanged at the company level across all three related to drought and wildfire and moderate
is working to make its own operations carbon neutral IEA scenarios through 2030. impacts in water availability to Eaton’s assets.
by 2030, a global failure to achieve commitments could • Increase in cooling degree days driving potential
cause increases in these extreme weather events, political In the 1.5 and 2°C scenarios, there is more dispersion for electrical grid instability that could impact
instability and workforce migration, ultimately increasing across end market growth with renewables, EVs, EV 81% of Eaton’s assets by 2050 under the higher"
eaton-sustainability-report.txt,"nity.
EATON 2023 Sustainability Report 50Introduction Environment Social Governance ESG Disclosures
Temperature rise many parts of the world since the baseline period of
Potential impact to industry: Increased frequency of 1960-1989.
high heat days caused by climate change can create
safety and productivity challenges for manufacturing and By 2030, under the lower temperature scenario, the
field service work. Longer term, population migration number of assets that change from a low and moderate
and related social issues could impact workforce hazard index to a high or extreme level increases"
eaton-sustainability-report.txt,"ing areas can lead to increased extreme exposure related to temperature and 86%
costs, higher employee turnover and worker shortages. projected to have high exposure. By 2050, analysis
Potential government mandates to stop working on forecasts a 93% increase in the number of assets
high heat days could impact production and on-time exposed to temperature-related physical risks at the
deliveries. An increased spread of heat-related diseases high or extreme level compared to the present time. The
and illnesses can impact workforce availability. High assets projected to experience the highest impacts are"
eaton-sustainability-report.txt,"tions are inclusive and Committee, reports progress to the Board of Directors,
training hours per employee, annually. Anti-discrimination policy diverse. including diversity representation, iERG participation and
Eaton’s Code of Ethics projects, and progress on inclusion and diversity initiatives
Remedies for human rights impacts Respecting diversity and fair employment practices: We Strategic approach: Eaton’s Global Inclusion Council develops and programs. Employee-listening surveys are among
Our commitment to protecting and respecting human rights are committed to respecting a culturally diverse workforce goals for inclusion and diversity. Regional Inclusion Councils the processes we use to inform progress. Employee-"
eaton-sustainability-report.txt,"rized program such as an apprenticeship. veteran status, citizenship, socio-economic status, gender (iERGs) provide enterprise-wide and site-level support to Employee Listening at Eaton occurs in multiple ways intended
identity and/or expression, or other status protected by law. attract, retain and develop talent in support of business goals. to assess the engagement of our employees.
Eaton has established rigorous governance and risk All Global Inclusion Council members are executive sponsors
management processes to identify and mitigate a broad Our policies that support our own workforce include: for an iERG. Global employee survey"
eaton-sustainability-report.txt,"us on leadership skill building.
and improve a collaborative and supportive work environment. • Launched of our first virtual career fair called
supported and empowered to thrive. We continually measure the impact and effectiveness of our
Business leaders use employee listening data to understand key “FutureReady Career Lab.”
ethics and compliance program through a variety of data
employee experience drivers and determine opportunities for • Promoted ""FutureReady Fridays"" that dedicate a Friday
Process for workforce concerns and grievance and metrics from our Help Line matters, leader feedback,"
eaton-sustainability-report.txt,"th at least 50 employees 93,318
number of employees who self-identified during the 2023 or unsafe conditions. The company will not permit retaliation
Turnover Engagement Survey as having any type of visible or invisible against an employee who in good faith reports a safety
type of physical or psychological disability represented 2.05% violation.
Employees who have left Eaton in 2023 19,820
of our total employees.
Zero tolerance lifesaving rules
Percentage voluntary and involuntary turnover 21%
Workforce health and safety Employees who violate core safety requirements may be"
esg-disclosure-supplement.txt,"tives to promote access to health At AbbVie, we believe patients need access to quality and affordable medicines. We continuously strive to improve health
care products for priority diseases and in priority countries as outcomes and increase access to health care services and our medicines for patients around the world, including through
defined by the Access to Medicine Index agreements with the Medicines Patent Pool. AbbVie partners with stakeholders on interventions to help build health care
capacity, increase the quality and frequency of health worker training and educate patients about disease awareness,"
esg-disclosure-supplement.txt,"tion of methods and technologies used to maintain Specific risks are overseen by our Risk Management and Global Security teams. Our Global Product Protection team is
traceability of products throughout the supply chain and responsible for identifying and mitigating risks related to AbbVie medicines. They coordinate proactive strategies for preventing
prevent counterfeiting counterfeiting and diversion of our medicines and conduct routine monitoring to identify signals of possible counterfeiting
or diversion. We use security features on product packaging and labels, and we’ve improved our employee training and have"
esg-disclosure-supplement.txt,"ded in the 2023 Annual Report Form 10-K.
HC-BP-270a.2 Description of code of ethics governing promotion of off-label AbbVie promotes our pharmaceutical products only for uses that have been approved or authorized by appropriate government
use of products or regulatory agencies. AbbVie product claims are grounded in scientific evidence, accepted medical practice and government-
approved labeling rules in all countries where we operate.
See the AbbVie Code of Business Conduct for more information
Employee Recruitment, Development & Retention"
esg-disclosure-supplement.txt,"-270a.2 Description of code of ethics governing promotion of off-label AbbVie promotes our pharmaceutical products only for uses that have been approved or authorized by appropriate government
use of products or regulatory agencies. AbbVie product claims are grounded in scientific evidence, accepted medical practice and government-
approved labeling rules in all countries where we operate.
See the AbbVie Code of Business Conduct for more information
Employee Recruitment, Development & Retention
HC-BP-330a.1 Discussion of talent recruitment and retention efforts for We strive to ensure every employee is aware of, and has access to, opportunities for learning, growth and advancement. We"
esg-disclosure-supplement.txt,"ed Product Donations1,2 - 63 76
¹ KPI first introduced for the 2022 ESG Action Report. AbbVie is only reporting data from 2022 onward for this KPI.
² As defined by the World Bank, including low income, lower middle income and upper middle income countries.
Key Performance Indicators: 2021 2022 2023
Talent Attraction, Retention and Development
Overall Turnover Rate 11% 10% 9%*
Voluntary Turnover Rate 8% 8% 6%*
New Hires 8,000 7,500 6,100*
Open Positions Filled by Internal Candidates 30% 29% 31%*
Employee Engagement Rate¹ 82% - 81%*"
esg-disclosure-supplement.txt,"2 onward for this KPI.
² As defined by the World Bank, including low income, lower middle income and upper middle income countries.
Key Performance Indicators: 2021 2022 2023
Talent Attraction, Retention and Development
Overall Turnover Rate 11% 10% 9%*
Voluntary Turnover Rate 8% 8% 6%*
New Hires 8,000 7,500 6,100*
Open Positions Filled by Internal Candidates 30% 29% 31%*
Employee Engagement Rate¹ 82% - 81%*
Employees Who Indicate That AbbVie Equips Them Well to Perform in
76% - 77%
Their Role¹
¹ AbbVie Employee Survey, 2021 and 2023. The AbbVie Employee Survey is conducted every two years. The survey was not conducted in 2022."
esg-disclosure-supplement.txt,"American 6% 7% 7%* 5% 5% 5%*
Hispanic/Latinx 9% 9% 10%* 6% 6% 6%*
White 65% 62% 61%* 66% 62% 62%*
Other (Includes Native American/
Alaska Native, Native Hawaiian/
3% 4% 3%* 2% 4% 2%*
Other Pacific Islander and Two or
More Races)
* This KPI value received third-party limited assurance in 2023.
Key Performance Indicators: Workplace Safety 2021 2022 2023
Recordable Incident Rate (Per 200,000 Hours Worked) 0.16 0.18 0.18¹*
Lost Time Injury Frequency Rate (Per 200,000 Hours Worked) 0.04 0.05 0.07¹*
Work-Related Employee and Contractor Fatalities 0 0 0*"
esg-disclosure-supplement.txt,"he hours worked methodology was updated in 2023 to increase the accuracy of reporting.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 19
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Volunteerism & Philanthropy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding
$1.2 $1.5 $4.7
Product Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7"
esg-disclosure-supplement.txt,"ing.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 19
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Volunteerism & Philanthropy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding
$1.2 $1.5 $4.7
Product Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197"
esg-disclosure-supplement.txt,"opy 2021 2022 2023
Philanthropic Donations (USD$ Millions)¹ $44.9 $38.7 $37.8
Total Amount Donated to Disaster Relief Organizations Excluding
$1.2 $1.5 $4.7
Product Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197
¹ P hilanthropic donations are charitable cash donations made by AbbVie Corporate and the AbbVie Foundation and exclude donations to disaster relief organizations.
² This donation amount excludes matching donations from AbbVie Foundation for employee donations made to disaster relief organizations"
esg-disclosure-supplement.txt,"luding
$1.2 $1.5 $4.7
Product Donations (USD$ Millions)²
Funds Raised During Employee Giving Campaign (USD$ Millions)4 $22.33 $24.53 $24.7
Employee Community Volunteers (Worldwide) 1,245 15,879 17,197
¹ P hilanthropic donations are charitable cash donations made by AbbVie Corporate and the AbbVie Foundation and exclude donations to disaster relief organizations.
² This donation amount excludes matching donations from AbbVie Foundation for employee donations made to disaster relief organizations
³ AbbVie updated its approach for calculating the funds raised during our employee giving campaign in 2023. For consistency purposes, our 2021 and 2022 values for this KPI have been restated to use this new methodology."
esg-disclosure-supplement.txt,"ard for this KPI.
² Includes VP-level and above, including women who are members of AbbVie’s board of directors.
³ KPI adjusted from 2022 ESG Action Report to align with internal categorizations.
4 Represents a new KPI in the 2023 ESG Action Report
5 “Revenue-generating functions” means a position with AbbVie’s commercial organization.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 18
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Share in total workforce Share in all management positions"
esg-disclosure-supplement.txt,"oard of directors.
³ KPI adjusted from 2022 ESG Action Report to align with internal categorizations.
4 Represents a new KPI in the 2023 ESG Action Report
5 “Revenue-generating functions” means a position with AbbVie’s commercial organization.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 18
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Share in total workforce Share in all management positions
(as % of total workforce) (manager level and above as %"
esg-disclosure-supplement.txt,"eport to align with internal categorizations.
4 Represents a new KPI in the 2023 ESG Action Report
5 “Revenue-generating functions” means a position with AbbVie’s commercial organization.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 18
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Share in total workforce Share in all management positions
(as % of total workforce) (manager level and above as %
U.S. Workforce by"
esg-disclosure-supplement.txt,"h internal categorizations.
4 Represents a new KPI in the 2023 ESG Action Report
5 “Revenue-generating functions” means a position with AbbVie’s commercial organization.
* This KPI value received third-party limited assurance in 2023.SASB Index UN SDGs TCFD KPIs Assurance Statements 18
2023 ESG Action Report Disclosure Supplement
Social Key Performance Indicators: Share in total workforce Share in all management positions
(as % of total workforce) (manager level and above as %
U.S. Workforce by
of total management workforce)"
esr-year-2023.txt,"Safety Management and Performance
GRI G4R0I 34:0 3O: Occccuuppaattiioonnaal Hl eHaeltha lth and 403-1 Occupational health and safety management system Workplace Safety Management and Performance
SGaRfIe a 4tny0d 23 S0:a f1Oe8t cy c2 u01 p8 ational Health and 403-2 Hazard identification, risk assessment, and incident investigation Workplace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-3 Occupational health services Workplace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-4 Worker participation, consultation, and communication on occupational health Workplace Safety Management and Performance"
esr-year-2023.txt,"cy c2 u01 p8 ational Health and 403-2 Hazard identification, risk assessment, and incident investigation Workplace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-3 Occupational health services Workplace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-4 Worker participation, consultation, and communication on occupational health Workplace Safety Management and Performance
Safety 2018 and safety
GRI 403: Occupational Health and
403-5 Worker training on occupational health and safety Workplace Safety Management and Performance"
esr-year-2023.txt,"ace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-3 Occupational health services Workplace Safety Management and Performance
SGaRfIe 4ty0 230: 1O8ccupational Health and 403-4 Worker participation, consultation, and communication on occupational health Workplace Safety Management and Performance
Safety 2018 and safety
GRI 403: Occupational Health and
403-5 Worker training on occupational health and safety Workplace Safety Management and Performance
Safety 2018
GRI 403: Occupational Health and 403-6 Promotion of worker health Workplace Safety Management and Performance"
esr-year-2023.txt,"to its forward-looking statements
to reflect events or circumstances after the date of this report. The inclusion of information in this report should not be construed as
a characterization regarding the materiality or financial impact of that information. For a discussion of information that is material to
the Registrants, please see our filings with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
Exelon Sustainability Report 2023 2A Message From the CEO
Exelon’s theme for the year is Exelon’s industry-leading operational excellence employee compensation to Path to Clean progress"
esr-year-2023.txt,"Exelon’s continued to perform at high levels, with all utilities responsible business modifier. The modifier also
ability to support our over achieving top quartile or better outage frequency reflects Diversity, Equity and Inclusion progress on
10 million customers, almost and outage duration as compared to our peers. Our initiatives including diverse slates of candidates for
20,000 employees and all dedicated workforce, as well as our long-standing employment, spend with diverse businesses and
the communities we serve commitment to utility infrastructure investment, employee engagement. I am pleased to report that"
esr-year-2023.txt,"s in 2023, with nearly $2.2 billion of direct energy needs with high customer satisfaction;
spend with diverse businesses, a $173M increase over and results that are affordable and equitable. Sincerely,
2022. Additionally, we continued our commitment
to developing and mentoring diverse suppliers in Moving forward, we remain committed to being Calvin Butler
our local communities, training 37 suppliers through the premier utility employer with a focus on high President and Chief Executive Officer
our Empowerment Academy in 2023. employee safety and engagement, diverse talent"
esr-year-2023.txt,"Edison Company, Delmarva
Exelon Sustainability Report 2023 4About Exelon
By the Numbers Exelon Performance Data
Our Business Key Sustainability Topics
2023 Sustainability Report Stakeholder Engagement
Exelon Service AreasBy the Numbers
9.2 million 152,581 237,000
electric utility customers miles of distribution lines customers with distributed energy connected
1.4 million 92% $59 million
natural gas customers revenue derived from electric operations in charitable giving
21.6 million 8% 135,800
people in utility service areas revenue derived from natural gas operations employee volunteer hours"
esr-year-2023.txt,"t
A Safe, Innovative and Rewarding Workplace
To achieve our greatest potential, we must reflect the communities that we serve and seek fair treatment and
Diversity, Equity and
5, 8, 10 equitable opportunities for all. Our commitment to DEI strengthens our ability to attract, retain and advance
Inclusion (DEI)
employees who represent and serve our customers, business partners and communities.
To support and retain our talent, we must create an environment where our workforce can perform well and
Employee Engagement 8 achieve its highest potential. These conditions are necessary for our employees to remain engaged and have a"
esr-year-2023.txt,"act, retain and advance
Inclusion (DEI)
employees who represent and serve our customers, business partners and communities.
To support and retain our talent, we must create an environment where our workforce can perform well and
Employee Engagement 8 achieve its highest potential. These conditions are necessary for our employees to remain engaged and have a
rewarding experience at work.
We are dedicated to safety. We continuously act to minimize workforce exposure to potential health and safety
Health, Safety and Wellness 3 hazards, as well as to support employee mental and physical wellness. This focus builds a desirable and"
esr-year-2023.txt,"ach of our service areas to gauge customer Scope 3 GHG emission categories (e.g., purchased
satisfaction, which is paramount to our utilities. goods and services and capital goods).
Our Stakeholders
Community Non-Governmental
Customers Employees
Members Organizations (NGOs)
Industry Groups
Investors Media Suppliers Governments
Powering a
Cleaner and
Brighter Future
Engagement Mechanisms
Board Investment Company Website and
Social Media
Memberships Community Calls Publications Digital Properties
Community and Customer Employee and"
esr-year-2023.txt,"customers. in Howard County, the plant is Maryland’s flagship
anaerobic digestion facility, which produces RNG
from food waste.
Exelon Sustainability Report 2023 33Exelon is also engaged in multiple other initiatives Exelon Innovation Engagement To measure progress in establishing an
related to hydrogen, such as supporting the National innovation culture, we engaged EPRI to conduct
and Virtual Showcase
Lab HyBlend Consortium, sponsoring the EPRI/GTI a comprehensive Global Innovation Assessment,
Energy LCRI, and partnering with researchers at featuring employee surveys and executive"
esr-year-2023.txt,"in our chargers. These upgrades support significantly faster
jurisdictions, Exelon also enables the commercial charging times and offer the ability to control and
sector to contribute to emission education, air schedule optimal charging schedules during off-
quality enhancements and development of a robust peak hours, ultimately saving customers time and
EV charger infrastructure that supports the broader money on their monthly electric bill.
goals of electrification. Each utility continues to
broaden its education and awareness efforts for both Exelon Employee EV"
esr-year-2023.txt,"rts for both Exelon Employee EV
residential and commercial customers. For example,
Incentive Program
ComEd launched its new EV Load Capacity Map
Tool that allows commercial customers to identify
Exelon helps employees participate in a cleaner
potential sites for fleet electrification, workplace
future by incentivizing them to purchase or lease
charging and public charging applications. At the
a fully electric vehicle for their personal use. In
end of 2023, it is estimated that there were almost
response to employee feedback, Exelon launched"
esr-year-2023.txt,"which improves
reliability performance and reduces operational risk associated with this load pocket.
Transmission Resiliency Completion Date
189 poles upgraded to May 2023
self-supporting galvanized steel
Project Spend
Transmission Reliability $40 million
11.3 miles of upgraded wire
Exelon Sustainability Report 2023 97Disaster Preparedness and Awareness
Protecting the electric grid and natural gas These investments have improved cybersecurity We share actionable intelligence with industry and
infrastructure is important for the continuity of monitoring, defenses and employee training. We government partners, including federal, state and"
esr-year-2023.txt,"bility and security threats, mitigating the likelihood of successful attacks environment and the Internet, continuously
of our systems and facilities are top priorities. and potential impacts. This approach ensures that monitored for malicious activity and routinely
Cybersecurity is managed at the enterprise-level all operating companies benefit from our pooled evaluated for vulnerabilities.
with controls for information technology (IT) and investment in a unified and flexible security program.
Exelon conducts stringent employee and contractor"
esr-year-2023.txt,"rting Communities
When our communities and people thrive, Exelon thrives. We partner with communities to eliminate
barriers to economic empowerment through workforce development, supplier development, corporate
philanthropy, and science, technology, engineering and mathematics (STEM) education. To help
communities meet their sustainability and climate goals, we seek fair, equitable access to new
technologies and clean energy opportunities. Our employees also give back to their local communities
through employee philanthropy and volunteerism. Through these actions, Exelon helps power the"
esr-year-2023.txt,"to communities. and Other Taxes
Exelon’s minority and community banking program,
State and Local Taxes[2]
which began in 2003, is unique to the energy
industry. Administered by JP Morgan Chase since Delaware $39,290 $11,097 $50,387
its inception, the program now has 22 participating
D.C. $176,020 $32,064 $208,084
banks across the country—almost three times the
original number.
Illinois $345,973 $562,011 $907,984
Exelon Corporation has $1.4 billion in pension, Maryland $607,620 $263,280 $870,900
employee savings plans, and retiree health-"
esr-year-2023.txt,"dents and communities
to do amazing things.”
Anahi Soto
Exelon Sustainability Report 2023 108Giving Back to Communities
At Exelon, we are committed to supporting
community progress where we live and work.
We believe our success is linked to the health and
overall well-being of those around us, so we engage
directly with people in our local communities to
make a positive difference in the areas that matter
most to the customers and communities that we
serve. Our engagement efforts span corporate
giving, employee philanthropy and volunteerism."
esr-year-2023.txt,"or programs and
initiatives in 2023, totaling $21.2M through 2026,
largely in Pennsylvania.
At Exelon, we are committed to
supporting community progress
where we live and work.
Exelon Sustainability Report 2023 109Charitable Giving[1] 2023 Charitable Giving Volunteer Hours[4]
dollars in millions by Program Area[3] thousands of hours
Exelon Foundations Corporate Donations
$59.0
$48.1
$42.0
$47.2
135.8
$33.7
37.9% 8.9% 126.5
Education Health and
$31.4
Social Services
14.5%
97.8
Community and 7.8%
Economic Development Employee"
esr-year-2023.txt,"e the resources to provide advance funding for multi-year commitments to non-profit organizations for programs and initiatives, totaling $21.2 million through 2026, largely in Pennsylvania.
As a result of these one-time actions, our 2023 charitable giving is significantly higher than in 2022 and will likely appear lower in 2024 and beyond.
[3] Program areas outlined are from CECP (Chief Executives for Corporate Purpose) Giving in Numbers report, which is the standard for corporate philanthropy.
[4] Volunteer hours for 2021 have been recast to reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure."
esr-year-2023.txt,"nsylvania.
As a result of these one-time actions, our 2023 charitable giving is significantly higher than in 2022 and will likely appear lower in 2024 and beyond.
[3] Program areas outlined are from CECP (Chief Executives for Corporate Purpose) Giving in Numbers report, which is the standard for corporate philanthropy.
[4] Volunteer hours for 2021 have been recast to reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure.
Exelon Sustainability Report 2023 110Exelon encourages and supports employees to y Employee Volunteer Awards: To reward our"
esr-year-2023.txt,"ikely appear lower in 2024 and beyond.
[3] Program areas outlined are from CECP (Chief Executives for Corporate Purpose) Giving in Numbers report, which is the standard for corporate philanthropy.
[4] Volunteer hours for 2021 have been recast to reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure.
Exelon Sustainability Report 2023 110Exelon encourages and supports employees to y Employee Volunteer Awards: To reward our
volunteer in their communities. In addition to employees who volunteer more than 35 hours in a Employee Engagement Goal"
esr-year-2023.txt,"Giving in Numbers report, which is the standard for corporate philanthropy.
[4] Volunteer hours for 2021 have been recast to reflect Exelon utility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure.
Exelon Sustainability Report 2023 110Exelon encourages and supports employees to y Employee Volunteer Awards: To reward our
volunteer in their communities. In addition to employees who volunteer more than 35 hours in a Employee Engagement Goal
benefiting the local community, volunteerism and year, Exelon presents Employee Volunteer Awards,"
esr-year-2023.txt,"ility operations and 50 percent of business services employee volunteer hours under Exelon’s previous structure.
Exelon Sustainability Report 2023 110Exelon encourages and supports employees to y Employee Volunteer Awards: To reward our
volunteer in their communities. In addition to employees who volunteer more than 35 hours in a Employee Engagement Goal
benefiting the local community, volunteerism and year, Exelon presents Employee Volunteer Awards,
Engage at least 50% of employees annually in
employee philanthropy drive employee engagement with an associated financial grant of $5,000 given"
esr-year-2023.txt,"t 2023 110Exelon encourages and supports employees to y Employee Volunteer Awards: To reward our
volunteer in their communities. In addition to employees who volunteer more than 35 hours in a Employee Engagement Goal
benefiting the local community, volunteerism and year, Exelon presents Employee Volunteer Awards,
Engage at least 50% of employees annually in
employee philanthropy drive employee engagement with an associated financial grant of $5,000 given
community engagement programs, including
by allowing our employees to participate and to the recipient employee’s nonprofit organization"
esr-year-2023.txt,"ployees annually in
employee philanthropy drive employee engagement with an associated financial grant of $5,000 given
community engagement programs, including
by allowing our employees to participate and to the recipient employee’s nonprofit organization
volunteerism and philanthropy.
engage with organizations that align with individual of choice. In 2023, we distributed $100,000 to
areas of interest. In 2023, we expanded two of our nonprofit partners on behalf of our award-winning 2023 Status
programs to demonstrate our appreciation for all employee volunteers."
esr-year-2023.txt,"a brighter future for our
of our community engagement programs and
communities. The Exelon Foundation increased y Dollars for Doers Program: In 2023, we awarded nearly 500 took advantage of all of them.
the maximum match from $5,000 to $10,000 per over $500,000 in Dollars for Doers grants.
2024 Goal
year for all employees, through Matching Gifts for
donations made to eligible non-profit organizations. Exelon and its employees know that it takes more Increase participation in engagement programs
Dollars for Doers was simplified so that an employee than our daily work to power our communities by building awareness through more in-person"
esr-year-2023.txt,"on-profit organizations. Exelon and its employees know that it takes more Increase participation in engagement programs
Dollars for Doers was simplified so that an employee than our daily work to power our communities by building awareness through more in-person
receives $250 for their charity of choice for every and engage one another. Through the program outreach and onsite volunteer opportunities.
10 hours of volunteer time up to three times per improvements made in 2023, including expanding
year for a total of $750 to any eligible non-profit employee outreach at in-person events, more"
esr-year-2023.txt,"o power our communities by building awareness through more in-person
receives $250 for their charity of choice for every and engage one another. Through the program outreach and onsite volunteer opportunities.
10 hours of volunteer time up to three times per improvements made in 2023, including expanding
year for a total of $750 to any eligible non-profit employee outreach at in-person events, more
organization, an increase from $700 in the past. employees leveraged Exelon’s community programs.
Below are some examples of our employee"
esr-year-2023.txt,"0 for their charity of choice for every and engage one another. Through the program outreach and onsite volunteer opportunities.
10 hours of volunteer time up to three times per improvements made in 2023, including expanding
year for a total of $750 to any eligible non-profit employee outreach at in-person events, more
organization, an increase from $700 in the past. employees leveraged Exelon’s community programs.
Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Volunteerism: In 2023, Exelon"
esr-year-2023.txt,"eer opportunities.
10 hours of volunteer time up to three times per improvements made in 2023, including expanding
year for a total of $750 to any eligible non-profit employee outreach at in-person events, more
organization, an increase from $700 in the past. employees leveraged Exelon’s community programs.
Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Volunteerism: In 2023, Exelon
employees volunteered a combined 135,823 hours
in their communities.
y Employee Giving Campaign and Matching Gifts"
esr-year-2023.txt,"f $750 to any eligible non-profit employee outreach at in-person events, more
organization, an increase from $700 in the past. employees leveraged Exelon’s community programs.
Below are some examples of our employee
philanthropic and volunteer initiatives:
y Employee Volunteerism: In 2023, Exelon
employees volunteered a combined 135,823 hours
in their communities.
y Employee Giving Campaign and Matching Gifts
Programs: Exelon employees contributed over
$5.8 million through the Exelon Foundation
Employee Giving Campaign and Matching Gifts"
esr-year-2023.txt,"pportunities infrastructure. Each of our utilities has a detailed and further bald eagle conservation. Recent
in areas where few natural perches or nest sites are Avian Protection Plan in place, which typically collaborations with state agencies have focused on
found. If the configuration and location of utility contain the following elements: gathering population data, supporting local wildlife
structures are in areas where birds are attracted by rehabilitators, participating in eagle surveys,
vegetation and topographical features, the chance of y Employee training around regulatory and banding or telemetry projects and providing"
esr-year-2023.txt,"2023 126Where threatened or endangered bird species are PECO has implemented a system-wide
located on or near our sites, our utilities work with comprehensive avian protection plan to reduce bird
regulatory agencies and interested stakeholders to mortalities associated with power line interactions.
develop and implement agreed-upon management This plan includes establishing new distribution
plans or special mitigation tactics to reduce impacts line construction standards, removing or relocating
on wildlife. nests and providing employee training on avian"
esr-year-2023.txt,"ate barriers and create opportunities for our
100% completion rate was achieved. All employees have one-click access to tools and
employees, vendors and the communities we serve.
educational materials that help them expand their
2024 Goal
DEI capabilities through a dedicated intranet site. This
To advance Exelon’s DEI strategy, we established
Achieve 100% completion rate for senior managers internal website provides information on DEI partner
Diversity Leadership Councils with the specific goal
and above of the DEI Performance Goal. organizations, Employee Resource Groups (ERGs),"
esr-year-2023.txt,"d webinars.
attract and retain African American, Latinx and Pan-
Asian leaders. With over 80 leaders across councils, DEI Quarterly Webinars
Diverse Workforce meetings are held monthly to create and advance
For the eleventh consecutive year, Exelon offered
strategies to drive equity initiatives and advocate
live DEI quarterly webinars to all employees. The
Exelon utilizes an individual DEI Performance for the development and sponsorship of future
webinar series continued to be a highly attended
Goal for all management to drive DEI behavior leaders. Employee engagement, advancement and"
esr-year-2023.txt,"nd supporting military
(NSBE) and the Society of Asian Scientists disability inclusion efforts. We continue to learn
families, our CEO, Calvin Butler, signed the Employer
and Engineers (SASE). We engage with these and share best practices through disability-focused
Support of the National Guard and Reserve statement
organizations at regional, local and campus levels. events and partnerships.
of support in 2023. We are proud that in 2023, over 5
percent of our total external hires were veterans.
Exelon Sustainability Report 2023 1412023 Employee Resource Groups Update"
esr-year-2023.txt,"ces through disability-focused
Support of the National Guard and Reserve statement
organizations at regional, local and campus levels. events and partnerships.
of support in 2023. We are proud that in 2023, over 5
percent of our total external hires were veterans.
Exelon Sustainability Report 2023 1412023 Employee Resource Groups Update
Exelon has 10 ERGs that enable our DEI strategy. The Mosaic ERG also consists of
three sub chapters; The Network of Exelon Immigrants and Second Generation, the
Caribbean Diaspora Employee Resource Alliance, and the Exelon Support of Native"
esr-year-2023.txt,"JUST
Companies. Each year, JUST Capital ranks the largest U.S.-based corporations
based on polling of what the American public most prioritizes when it comes to
just business behavior on the issues that matter most to Americans, based on
public polling.
Exelon Sustainability Report 2023 142DEI External Partnerships
ASCEND ERG Leadership National
Alliance Organization
Catalyst on Disability
Executive
DEI Board Leadership Council Out & Equal
Disability:IN Human Rights Seramount
Campaign
Tanenbaum
Employee Diversity[1][2] Management Diversity[4]"
esr-year-2023.txt,",286 42.4% 1,410 40.6%
Full-Time 18,911 99.2% 19,781 99.1% Within 10 Years Of
1,787 59.0% 1,998 57.5%
Retirement Eligibility
Part-Time 152 0.8% 181 0.9%
Total Employees
Total Employees 19,063 100.0% 19,962 100.0% 3,030 100.0% 3,476 100.0%
in Management
[1] Employees as of 12/31 of listed year. Exelon publishes its annual EEO-1 report on its corporate website. [4] Management is defined by EEO Categories “Executive/Senior Level Officials and Managers” and
“First/Mid-Level Officials and Managers.”
[2] I n 2023, Exelon’s total employee turnover rate was 5.7 percent (voluntary turnover rate was 4.7 percent)."
esr-year-2023.txt,"ment
our most valuable asset. We encourage employees
to bring their authentic selves to work, and we Talent Acquisition at Exelon brings in the talent that Exelon’s integrated talent management process
strive to support and enable them at every stage enables us to lead the energy transition. We attract identifies, develops, engages and retains employees
of their career and personal lives. With robust and hire future company leaders who share our so that the organization has a robust and diverse
and progressive benefits and wellness programs, vision for a brighter, equitable and more sustainable pipeline of talent to drive business results. Employee"
esr-year-2023.txt,"to build a strong and qualified annual business talent review process. This work
pipeline of talent with a renewed commitment helps to drive targeted and meaningful leadership
to diverse and military hiring. We developed and development throughout the year.
continued valuable partnerships with various
military recruitment organizations, local community In 2023, we launched our new Powering People
organizations and key colleges and universities, brand and one-stop development resource portal to
including Historically Black Colleges and Universities solidify the organization’s commitment to employee"
esr-year-2023.txt,"ilitary recruitment organizations, local community In 2023, we launched our new Powering People
organizations and key colleges and universities, brand and one-stop development resource portal to
including Historically Black Colleges and Universities solidify the organization’s commitment to employee
(HBCUs). We attended national conferences with development and career growth. The portal offers
organizations including SWE, the SHPE, NSBE and the opportunities to employees at every level to build
SASE. In addition, we amplified our employee value leadership, professional and technical capabilities."
esr-year-2023.txt,"l to build
SASE. In addition, we amplified our employee value leadership, professional and technical capabilities.
proposition within social networks and communities New development offerings available to all employees
through targeted advertising, networking and included an expanded portfolio of vendor-led
educational events, social media, volunteer and professional development offerings and no-cost
sponsored events, robust video and marketing webinars facilitated by business leaders, a career
materials and an employee referral bonus program. management monthly webinar series, a self-paced"
esr-year-2023.txt,"nar series, a self-paced
leadership exploration program, resources to work
and lead in a hybrid environment and an enterprise-
In 2023, we continued to build a wide mentoring program. The mentoring program
strong and qualified pipeline of currently has 2,500 employees participating as either
a mentor and/or mentee. More than 9,000 participants
talent with a renewed commitment
took charge of their development by participating in
to diverse and military hiring.
the Powering People portal in 2023.
Exelon Sustainability Report 2023 144Through Linkedin Learning, employees were provided Employee Development organization up for success and future growth."
esr-year-2023.txt,"d a wide mentoring program. The mentoring program
strong and qualified pipeline of currently has 2,500 employees participating as either
a mentor and/or mentee. More than 9,000 participants
talent with a renewed commitment
took charge of their development by participating in
to diverse and military hiring.
the Powering People portal in 2023.
Exelon Sustainability Report 2023 144Through Linkedin Learning, employees were provided Employee Development organization up for success and future growth.
the opportunity to customize their professional Driven by feedback from an employee engagement"
esr-year-2023.txt,"were provided Employee Development organization up for success and future growth.
the opportunity to customize their professional Driven by feedback from an employee engagement
and Training
development with access to thousands of self-paced survey, BGE launched its first Grow week in 2023,
courses from business to technology to functional- Corporate providing developmental opportunities for all
specific skills. Employees can search content based BGE employees on a variety of topics. Over 1,000
Exelon corporate offers employee and leadership"
esr-year-2023.txt,"m needs with innovative In 2023, ComEd showcased its commitment to
Manager Leadership Excellence for first-time senior
solutions. As a result of the significant organizational DEI, professional leadership growth and robust
managers. Over 500 employees completed these
change that corporate leaders have experienced over leadership pipeline development. ComEd
targeted leadership development programs.
the last two years, we have continued our focus on successfully completed the inaugural “Launching
employee engagement and leader support through Inclusive Future Talent” program, an initiative"
esr-year-2023.txt,"hip
and building business intelligence.
behaviors and field training. Our targeted vehicles
meet employees where they are, allow opportunities
to thrive and foster a talent pipeline that sets our
Exelon Sustainability Report 2023 145PECO PHI participating. PHI continued to invest in internship
programs as a pipeline for future talent. In 2023, PHI
PECO continued to focus on new leader integration PHI continued to promote a strong culture driven
had 11 co-ops and 66 college interns, and extended
and employee career management in 2023. PECO through leadership in 2023. Employee development"
esr-year-2023.txt,"anaging Winning Teams development initiatives, with over
Targeted leader nominated development programs
performance, as well as exploring various available HR 4,900 employees participating in 2023. The PHI
are utilized so that leaders are developed in their
resources and support. The company also continued Opting-in series continued to create space for
current roles and are growing to be ready for
to reenergize efforts to support all employees in employees to delve into DEI and racial injustice
future leadership roles. Employee volunteerism"
esr-year-2023.txt,"Pride Parade, a Ramadan Iftar
planning, Individual Development Plans, mentoring development with 67 percent of eligible employees
educational session and dinner and a day at the
and career exploration. These leadership sponsored
African American Museum honoring Juneteenth.
activities supported PECO employees’ career goals
and interests.
Exelon Sustainability Report 2023 146Engaging Talent and Listening Between full Engagement Surveys, we issue As leaders share survey results with employees and
brief employee engagement pulse surveys that take action to address the findings, questions for"
esr-year-2023.txt,"ligible employees
educational session and dinner and a day at the
and career exploration. These leadership sponsored
African American Museum honoring Juneteenth.
activities supported PECO employees’ career goals
and interests.
Exelon Sustainability Report 2023 146Engaging Talent and Listening Between full Engagement Surveys, we issue As leaders share survey results with employees and
brief employee engagement pulse surveys that take action to address the findings, questions for
to Our Employees
allow employees to provide feedback on targeted future Employee Engagement and pulse surveys will"
esr-year-2023.txt,"adership sponsored
African American Museum honoring Juneteenth.
activities supported PECO employees’ career goals
and interests.
Exelon Sustainability Report 2023 146Engaging Talent and Listening Between full Engagement Surveys, we issue As leaders share survey results with employees and
brief employee engagement pulse surveys that take action to address the findings, questions for
to Our Employees
allow employees to provide feedback on targeted future Employee Engagement and pulse surveys will
engagement topics and the overall employee be updated as we continue our work to understand"
esr-year-2023.txt,"bility Report 2023 146Engaging Talent and Listening Between full Engagement Surveys, we issue As leaders share survey results with employees and
brief employee engagement pulse surveys that take action to address the findings, questions for
to Our Employees
allow employees to provide feedback on targeted future Employee Engagement and pulse surveys will
engagement topics and the overall employee be updated as we continue our work to understand
To support and retain our talent, we must create an
experience at Exelon. Our most recent pulse and improve the employee experience at Exelon."
esr-year-2023.txt,"perience at Exelon.
environment where our workforce can achieve its
survey was issued in the fall of 2023 and garnered
highest potential. These conditions are necessary
a response rate of 82 percent, with 79 percent of
for our employees to remain engaged and have
employees indicating they are proud to work at 79%
a rewarding experience at work. One way that
Exelon and 81 percent indicating that they are proud
we measure and manage performance is by
of the Company’s involvement in the community.
frequently collecting employee feedback about"
esr-year-2023.txt,"82 percent, with 79 percent of
for our employees to remain engaged and have
employees indicating they are proud to work at 79%
a rewarding experience at work. One way that
Exelon and 81 percent indicating that they are proud
we measure and manage performance is by
of the Company’s involvement in the community.
frequently collecting employee feedback about
While we are pleased by these results, we commit of employees indicating they are proud to
their experiences. Periodic surveys help us better
to continually improving employee engagement to work at Exelon and 81 percent indicating"
esr-year-2023.txt,"rding experience at work. One way that
Exelon and 81 percent indicating that they are proud
we measure and manage performance is by
of the Company’s involvement in the community.
frequently collecting employee feedback about
While we are pleased by these results, we commit of employees indicating they are proud to
their experiences. Periodic surveys help us better
to continually improving employee engagement to work at Exelon and 81 percent indicating
understand and address any issues raised by
our employees. The surveys measure employee respond to employees’ evolving expectations. Other that they are proud of the Company’s"
esr-year-2023.txt,"to
their experiences. Periodic surveys help us better
to continually improving employee engagement to work at Exelon and 81 percent indicating
understand and address any issues raised by
our employees. The surveys measure employee respond to employees’ evolving expectations. Other that they are proud of the Company’s
engagement, development, innovation, DEI, safety pulse survey questions ask employees for their views involvement in the community
on engagement, communications, ethics, Diversity,
and other aspects of the employee experience."
esr-year-2023.txt,"agement to work at Exelon and 81 percent indicating
understand and address any issues raised by
our employees. The surveys measure employee respond to employees’ evolving expectations. Other that they are proud of the Company’s
engagement, development, innovation, DEI, safety pulse survey questions ask employees for their views involvement in the community
on engagement, communications, ethics, Diversity,
and other aspects of the employee experience.
Equity and Inclusion, and change management.
Employee Engagement Survey Results"
esr-year-2023.txt,"itical illness. In 2023, Exelon approved Continued education leads to a more engaged, disability, fitness reimbursement, discounted
544 employees for bonding leave and/or primary skilled and productive workforce. We support our fitness partnerships, lactation and breast milk
caregiver leave, as well as 169 employees eligible for employees in their educational endeavors to attract shipping support and digital infertility app access.
parental leave. and retain people who are committed to personal
and professional development. For employees who y Emotional: 24-hour access to the Employee"
esr-year-2023.txt,"burse Assistance Program, seven free counseling
sessions per issue, virtual therapy, self-care
Fair and equitable pay is an integral component up to $10,000 annually for undergraduate or
on-demand tools, mental health webinars, and
of our commitment to DEI. We recognize that pay professional certification courses and up to $15,000
mental health training certification.
equity is a key focus for our employees, customers, annually for graduate courses.
shareholders, and other stakeholders. Through
Employee and Labor Relations y Financial: Life insurance, tuition reimbursement,"
esr-year-2023.txt,"ough
Employee and Labor Relations y Financial: Life insurance, tuition reimbursement,
compensation policies as well as annual and
adoption assistance, tax advantaged accounts,
Exelon has a highly engaged, innovative and
group legal support, one free attorney
collaborative workforce. As of December 31, 2023,
consultation, two no-cost telephonic money coach
43 percent of our employees were represented by
sessions, financial planning calculators and
labor unions. Within the represented population,
advisory services, employee discounts, back-up"
esr-year-2023.txt,"lity Report 2023 148Workplace Safety and Management Performance
Promoting a Culture We reinforce safe work practices and identify
potential risks before an incident occurs through
of Safety and Health
peer-to-peer, first-line supervisor and manager safety
observations. By recording safety observations,
At Exelon, we integrate safety and health into
documenting near misses and tracking incident
every level of our company, beginning with each
trends, we systematically identify issues and pinpoint
individual employee. Every day, our employees"
esr-year-2023.txt,"misses and tracking incident
every level of our company, beginning with each
trends, we systematically identify issues and pinpoint
individual employee. Every day, our employees
improvement opportunities.
perform a wide array of critical work activities,
ranging from routine system maintenance to
securing electric transmission and distribution lines Above all else, our most important safety and
after storms. Through the strength of our safety health goal is to build systems that control hazards
programs and the commitment of our employees, and eliminate employee and contractor serious"
esr-year-2023.txt,"ortunities.
perform a wide array of critical work activities,
ranging from routine system maintenance to
securing electric transmission and distribution lines Above all else, our most important safety and
after storms. Through the strength of our safety health goal is to build systems that control hazards
programs and the commitment of our employees, and eliminate employee and contractor serious
Exelon achieves a high level of safety performance. injuries and fatalities. On our way to achieving
Our executive-level Safety Council assesses that goal, in 2023, Exelon had no employee or"
esr-year-2023.txt,"ety has been fully implemented with
the use of the Serious Injury Classification and
Learning model across our utility companies. We
have incorporated the Energy Wheel into pre-job
briefs to drive focus and conversation around high
Exelon Sustainability Report 2023 150Safety Management and safety training with a focus on safety methods,
Safety Goal industrial hygiene excellence, training centers of
We prioritize health and safety performance excellence and a safety culture that fosters learning
Achieve zero employee and significant[1]"
esr-year-2023.txt,"ulture that fosters learning
Achieve zero employee and significant[1]
improvement through our comprehensive safety and continuous improvement. Four of the strategic
contractor fatalities.
management systems and strategic initiatives for initiatives are part of Exelon’s Adopting Safety Best
2023 Status continuous improvement in safety programs and Practices program, created in 2016 to proactively
culture. We conduct risk assessments, track and assess specific work practices and align on the best
Exelon experienced zero employee fatalities and"
esr-year-2023.txt,"k practices and align on the best
Exelon experienced zero employee fatalities and
investigate incidents and implement corrective practice and approach to be used by all Exelon
zero contractor fatalities.
action programs to foster a learning culture and operating companies. Prioritization of work practices
2024 Goal advance our safety programs. The executive- is based on the frequency of task and high energy
level Safety Council and Safety Peer Group exposure with alignment achieving improvement
Achieve zero employee and significant"
esr-year-2023.txt,"s to mitigate hazardous conditions and reduce
injuries. We collaborate closely with the EEI and
the Electric Power Research Institute on industry
safety initiatives as well as expanding our safety
benchmarking to include larger companies outside
our industry.
Exelon is a seven-year member of the Campbell
Institute, a group of leading companies from the
National Security Council regarded as thought
leaders on environmental, health and safety (EHS)
issues. Exelon works with the Campbell Institute
in the five major focus areas of employee well-"
esr-year-2023.txt,"safety
benchmarking to include larger companies outside
our industry.
Exelon is a seven-year member of the Campbell
Institute, a group of leading companies from the
National Security Council regarded as thought
leaders on environmental, health and safety (EHS)
issues. Exelon works with the Campbell Institute
in the five major focus areas of employee well-
being, leading EHS indicators and data analytics,
serious injury and fatality prevention programs,
sustainability and contractor management.
Exelon Sustainability Report 2023 151Safety Performance Exelon Employee Safety Performance[1]"
esr-year-2023.txt,"itute
in the five major focus areas of employee well-
being, leading EHS indicators and data analytics,
serious injury and fatality prevention programs,
sustainability and contractor management.
Exelon Sustainability Report 2023 151Safety Performance Exelon Employee Safety Performance[1]
Category
While Exelon’s OSHA recordable safety performance
2021 2022 2023
saw an increase in 2023, experiencing 245 OSHA
recordable incidents, we achieved our goal of zero OSHA Recordable Rate[2] 0.94 0.90 1.16
employee and contractor fatalities and reduced"
esr-year-2023.txt,"Lost Time Rate[4] 22.88 19.19 26.58
prevention strategy, with the new High Energy
OSHA Lost Time Incident Rate 0.61 0.55 0.59
Control Assessment (HECA) monitoring metric driving
continuous improvement of safeguards to control
Exelon EEI Serious Injury Incident Rate[5] 0.07 0.06 0.09
hazards, transitioning safety conversations to serious
injury prevention and galvanizing our workforce to Exelon’s Contractor OSHA Recordable Rate 0.61 0.49 0.49
anticipate and recognize potential workplace hazards.
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2021 reflects incidents and employee headcount"
esr-year-2023.txt,"r Exelon utility operations and corporate-level workforce under Exelon’s previous structure and may differ from previous reports.
best practices and improve the safety of our drivers. [2] The number of work-related injuries or illnesses requiring more than first-aid treatment per 200,000 work hours.
In 2023, Exelon employees drove more than 74 million [3] The number of work-related injuries or illnesses that result in days away from work, restricted work or job transfer, per 200,000 work hours.
miles in a combination of Exelon-owned, employee- [4] The number of days away from as a result of work-related injuries or illnesses, per 200,000 work hours."
esr-year-2023.txt,"es related to y Oversees compliance with policies
operational technology; and
and auditor’s commitments to talent development, DEI and and procedures related to
physical security
diverse team corporate culture corporate political contributions
y Oversees strategies and policies
y Oversees matters related to human y Reviews corporate philanthropy
related to health and safety,
capital management, including
including safety culture, goals,
talent acquisition, development,
and risks and significant
and retention; employee"
esr-year-2023.txt,"ts, stakeholder input, market
assessment of the performance achieved.
allocation of resources so that Exelon’s overall opportunities, customers and brand and reputation
environmental objectives are met
y Reviews enterprise-wide safety programs
y Social: Quantitative goals for measuring DEI
y Coordinates Exelon’s responses to strategic and performance and provides input to the
initiatives including diverse hiring slates, spend
environmental public policy and regulatory issues Executive Committee
with diverse suppliers and employee engagement"
esr-year-2023.txt,"ote the appropriate design, certifying their understanding of the Code. the direction of Exelon’s Legal Department and/or
implementation and testing of controls concerning Completion of the training and certifications are outside counsel.
compliance obligations. tracked, and new employees complete Code of
Business Conduct training upon joining Exelon. Exelon has established a dedicated team that
Both the Code of Business Conduct and the annual investigates most allegations relating to workplace
all-employee training address the identification conduct issues, including sexual harassment,"
esr-year-2023.txt,"n’s Legal Department and/or
implementation and testing of controls concerning Completion of the training and certifications are outside counsel.
compliance obligations. tracked, and new employees complete Code of
Business Conduct training upon joining Exelon. Exelon has established a dedicated team that
Both the Code of Business Conduct and the annual investigates most allegations relating to workplace
all-employee training address the identification conduct issues, including sexual harassment,
and mitigation of conflicts of interest, as does the discrimination and employee relations problems."
esr-year-2023.txt,"s Our suppliers help us successfully deliver energy to our customers and maintain
superior service. Our operations span the value chain from energy acquisition for
customers who have not selected a competitive energy supplier to transmission and
delivery of electricity and natural gas by our utilities and provision of other services,
as outlined in our 10-K.
10-K, pages 7–9
About Exelon, Sustainable Supply Chain
GRI 2 2-7 Employees Accelerating Our Commitment to Diversity, Equity and Inclusion,
Employee Diversity Table"
esr-year-2023.txt,"page
GRI 2 2-25 Processes to remediate negative impacts Compliance and Ethics
GRI 2 2-26 Mechanisms for seeking advice and raising concerns Compliance and Ethics
GRI 2 2-27 Compliance with laws and regulations Environmental Management, Monitoring Compliance Performance
GRI 2 2-28 Membership associations Supporting a Clean Energy Policy Transformation, Sustainable Supply Chain,
ESG Resources webpage
Stakeholder Engagement
GRI 2
GRI 2 2-29 Approach to stakeholder engagement Stakeholder Engagement
GRI 2 2-30 Collective bargaining agreements Employee and Labor Relations, 10-K, page 12–13"
esr-year-2023.txt,"04-3 Habitats protected or restored Our Approach to Nature and Stewardship
GRI 3: Material Topics 2021 3-3 Management of Waste Waste and Recycling
GRI 306: Effluents and Waste 2016 306-4 Waste diverted from disposal Waste and Recycling
Exelon Sustainability Report 2023 171Framework Disclosure Location/Response
A Safe, Innovative and Rewarding Workplace
GRI 3: Material Topics 2021 3-3 Management of Employment Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016
GRI 401: Employment 2016 401-1 New employee hires and employee turnover Accelerating Our Commitment to Diversity, Equity and Inclusion"
esr-year-2023.txt,"gation of occupational health and safety impacts directly Workplace Safety Management and Performance
Safety 2018 linked by business relationships
GRI 403: Occupational Health and
403-8 Workers covered by an occupational health and safety management system Workplace Safety Management and Performance
Safety 2018
GRI 403: Occupational Health and 403-9 Work-related injuries Safety Performance
Safety 2018
GRI 403: Occupational Health and 403-10 Work-related ill health Safety Performance
Safety 2018
GRI 3: Material Topics 2021 3-3 Management of Training and Education Employee Development and Training"
esr-year-2023.txt,"afety 2018 linked by business relationships
GRI 403: Occupational Health and
403-8 Workers covered by an occupational health and safety management system Workplace Safety Management and Performance
Safety 2018
GRI 403: Occupational Health and 403-9 Work-related injuries Safety Performance
Safety 2018
GRI 403: Occupational Health and 403-10 Work-related ill health Safety Performance
Safety 2018
GRI 3: Material Topics 2021 3-3 Management of Training and Education Employee Development and Training
GRI 404: Training and 404-2 Programs for upgrading employee skills Employee Development and Training"
esr-year-2023.txt,"gitive emissions from company owned equipment Scope 1 Scope 1 Scope 1
generated. However, the way that the total 125 Emissions from purchased/acquired power for resale to customers Scope 3 Scope 3 Scope 3
million metric tons of emissions, in this hypothetical Emissions from T&D line losses from purchased or wheeled power Scope 2 Scope 2 Scope 3
example, is distributed across Scopes 1, 2 and 3 Waste generation (in operations) Scope 3 Scope 3 Scope 3
is very different because of how the companies
Employee commuting; business travel Scope 3 Scope 3 Scope 3"
esr-year-2023.txt,"ds 1,001 933 975
that are most relevant for our business, such as business travel, capital goods,
3 Fuel/Energy Related Activities 74,663 72,009 71,855
purchased goods and services, upstream freight, electricity purchased or acquired
Full Service Electric Supply
3a 29,159 30,070 28,613 to fulfill customer load (customer use of electricity), use of natural gas delivered
(Location-based)
by utilities (customer use of natural gas) and production of natural gas used by
Delivery-Only Electric Supply
3b (Location-based) 45,505 41,939 41,122 customers. This year we have expanded our Scope 3 reporting to include employee"
esr-year-2023.txt,"ctivities 74,663 72,009 71,855
purchased goods and services, upstream freight, electricity purchased or acquired
Full Service Electric Supply
3a 29,159 30,070 28,613 to fulfill customer load (customer use of electricity), use of natural gas delivered
(Location-based)
by utilities (customer use of natural gas) and production of natural gas used by
Delivery-Only Electric Supply
3b (Location-based) 45,505 41,939 41,122 customers. This year we have expanded our Scope 3 reporting to include employee
commuting based on our employee counts and locations combined with national"
esr-year-2023.txt,"s Supply 1,400 1,394 2,120
commuting averages. Scope 3 categories that do not apply to our business (for
Upstream Transportation and
4 27 23 25
Distribution which we would have zero emissions) include downstream transportation and
5 Operational Waste 26 25 34 distribution, processing of sold products, end-of life treatment of sold products,
downstream leased assets, and franchises. We are still evaluating the applicability
6 Business Travel[2] 2 5 11
of the investments category.
Not Yet Not Yet
7 Employee Commute 195"
esr-year-2023.txt,"ll provide a strong foundation. In 2023, our utilities in the form of an annual incentive plan (AIP)
way of highlighting Exelon’s continued to perform at high levels, with all utilities responsible business modifier. The modifier also
ability to support our over achieving top quartile or better outage frequency reflects Diversity, Equity and Inclusion progress on
10 million customers, almost and outage duration as compared to our peers. Our initiatives including diverse slates of candidates for
20,000 employees and all dedicated workforce, as well as our long-standing employment, spend with diverse businesses and"
esr-year-2023.txt,"iven greenhouse gas (GHG) 3,500 megawatts (MW) of local customer solar and
transition. As we seek financial and environmental emissions by 50 percent by 2030 and to achieve renewable energy to the grid. Our utility energy
benefits for our customers, we must plan for net zero by 2050. In 2023, we continued to make efficiency programs also achieved significant results
affordable and equitable outcomes, with a investments and take actions to reduce GHG for customers by saving 26.5 million megawatt
focus on workforce development and economic emissions related to our natural gas distribution hours (MWh), equivalent to avoiding over 9.8"
esr-year-2023.txt,"ishments, as
well as our long-term plans to transform the systems
that power our daily lives. Exelon’s theme for the year is “Power of Impact.” This is our way of highlighting
Exelon’s ability to support our over 10 million customers, almost 20,000
employees and all the communities we serve through the energy transition.
Exelon Sustainability Report 2023 3Central to a successful energy system transition is Power & Light Company, PECO Energy Company management practices and embraces the power of
workforce development and education. In 2023, we and Potomac Electric Power Company—are new technologies. As always, we cannot make this"
esr-year-2023.txt,"ve through the energy transition.
Exelon Sustainability Report 2023 3Central to a successful energy system transition is Power & Light Company, PECO Energy Company management practices and embraces the power of
workforce development and education. In 2023, we and Potomac Electric Power Company—are new technologies. As always, we cannot make this
invested over $18 million to support our industry- working as “One Exelon” to drive efficiency and journey a success without actively engaging with our
leading workforce development programs, including support the interests and needs of the customers customers, communities, employees, policymakers"
esr-year-2023.txt,"urity delivery systems represent critical national infrastructure.
As electrification increases during the energy transition, transmission and delivery system resilience continues to
Energy System Resilience 7, 9, 11 be of paramount importance, particularly as extreme weather and temperature changes as a result of climate
change increase in the communities that we serve.
Supporting Communities
Exelon supports local communities in many ways, including philanthropy programs and giving, direct job
Community Vitality 4, 8 creation, leading workforce development programs and science, technology, engineering and math (STEM)"
esr-year-2023.txt,"habitats.
Exelon Sustainability Report 2023 14Key Sustainability Topics Relevant SDGs Why It Is Important
A Safe, Innovative and Rewarding Workplace
To achieve our greatest potential, we must reflect the communities that we serve and seek fair treatment and
Diversity, Equity and
5, 8, 10 equitable opportunities for all. Our commitment to DEI strengthens our ability to attract, retain and advance
Inclusion (DEI)
employees who represent and serve our customers, business partners and communities.
To support and retain our talent, we must create an environment where our workforce can perform well and"
esr-year-2023.txt,"ty, Equity and
5, 8, 10 equitable opportunities for all. Our commitment to DEI strengthens our ability to attract, retain and advance
Inclusion (DEI)
employees who represent and serve our customers, business partners and communities.
To support and retain our talent, we must create an environment where our workforce can perform well and
Employee Engagement 8 achieve its highest potential. These conditions are necessary for our employees to remain engaged and have a
rewarding experience at work.
We are dedicated to safety. We continuously act to minimize workforce exposure to potential health and safety"
esr-year-2023.txt,"and
Employee Engagement 8 achieve its highest potential. These conditions are necessary for our employees to remain engaged and have a
rewarding experience at work.
We are dedicated to safety. We continuously act to minimize workforce exposure to potential health and safety
Health, Safety and Wellness 3 hazards, as well as to support employee mental and physical wellness. This focus builds a desirable and
productive work environment, reduces health care costs and improves business performance.
Exelon seeks to develop a skilled and reliable workforce that supports economic empowerment in the"
esr-year-2023.txt,"y act to minimize workforce exposure to potential health and safety
Health, Safety and Wellness 3 hazards, as well as to support employee mental and physical wellness. This focus builds a desirable and
productive work environment, reduces health care costs and improves business performance.
Exelon seeks to develop a skilled and reliable workforce that supports economic empowerment in the
communities where we work and live. We invest in current and prospective employees through focused trainings
Workforce Development 4, 8"
esr-year-2023.txt,"measures in our operations, sheet and investment grade ratings. We are also energy efficiency (EE) and electrification programs,
including our information technology (IT) and actively managing borrowing costs and maintaining integration of customer-owned local renewable
cybersecurity systems. affordable T&D electric and gas utility rates. generation into our distribution systems and
other opportunities.
y Enabling our communities to thrive as our energy
system is transformed by investing in and
supporting local economic growth and workforce"
esr-year-2023.txt,"technology emerging transformative technologies will benefit
collaborating on projects with leading research engagement, Exelon works with external partners Exelon’s customers and operations. Proactive
institutions, including Argonne National Laboratory that are developing technologies that have the ecosystem relationships also benefit Exelon by
(ANL) and Massachusetts Institute of Technology potential to revolutionize the industry. This two- providing fresh insights in key science, technology
(MIT). The Partnership R&D Program screens way collaboration benefits researchers who desire and industry trends, workforce enrichment by"
esr-year-2023.txt,"s Perform tasks more efficiently with the support of AI-driven predictive maintenance
GenAI has the potential to transform how work is
and augmented reality repair systems.
performed across industries. In the utility industry,
GenAI could reshape customer service, operations,
Engineer Harness AI-driven data analytics to optimize utility infrastructure operations and make
maintenance and planning by drawing insights from
well-informed decisions.
unstructured data. GenAI could act as valuable co-
pilots or virtual coaches and support the workforce Data Analysts Leverage AI’s capabilities to interpret vast amounts of data, gaining deeper insights"
esr-year-2023.txt,"trification of end uses provides an increasingly
Equitable Jobs Act (CEJA) calls for 100 percent
safe, reliable and innovative performance. ComEd’s
important pathway to decarbonization. Examples
decarbonized electric generation in Illinois by 2045,
grid plan will continue to be evaluated by the ICC
of our actions to promote electrification policies
advancing transportation, building electrification
in 2024 and, upon approval, the ICC is expected to
include recent activity in Delaware, Illinois,
and creating economic and workforce development"
esr-year-2023.txt,"ECO’s filing to
modify the public transit incentive program into a
more flexible Public Benefit Program and extend
its reduced DCFC demand charge pilot.
In addition, PECO is playing a leading role in
encouraging Pennsylvania’s policy makers to
increase their commitment to solar energy while
making solar programs more accessible, affordable
and equitable for all. PECO is implementing a first-
of-its-kind local solar procurement program under
the state’s Alternative Portfolio Standard, supporting
the solar workforce and working with customers to"
esr-year-2023.txt,"omers, who ultimately decide what products and We are working to align our transition and
services they will buy. It will also require timely and adaptation planning with our new Environmental
effective policy measures to ensure that greenhouse Justice Principles to include consideration of all of
gas (GHG) emissions goals can be achieved equitably our customers, employees, business partners and
and as quickly as possible. At the same time, the communities in social, environmental, and economic
physical changes to the climate and environment progress. Our workforce development and science,"
esr-year-2023.txt,"to deliver safe, reliable, affordable and increasingly cleaner energy to our customers and communities. Our business strategy aims to lead the energy transition
by influencing and enabling clean energy supplies and supporting our customers with reducing or better managing their energy demands. We are focused on our core
business and are strengthening our infrastructure to prepare for enhanced grid reliance, reliability, and resilience, as well as modernizing our energy delivery systems with new
technologies that enable flexible operations in the future. We seek to invest in our communities so that the workforce and under-resourced communities accrue the benefits"
esr-year-2023.txt,"y public utility commissions. We carefully consider
changes are needed in structures, programs and
The community’s economic health is also a factor in the overall prudency and cost-effectiveness of
policies to remedy prior and present harms faced
ensuring widespread access to new technologies and our investments, as well as the economic impacts
by communities negatively impacted by the
increasingly cleaner energy, as well as determining on all energy users and equal access to the
energy system.
whether the local workforce can be developed to beneficial aspects of transition, to determine how"
esr-year-2023.txt,"mers and helping
overcoming barriers to beneficial electrification design to encourage use of electricity during times communities with equitable solutions, such
by advocating for public policies, partnering of excess capacity as deployment of electric school buses and
public chargers
Benefits of Electrification
Customers Society Exelon
Save customers money over the long run Reduce negative environmental impacts Enable better grid management
y Economic y Environmental y Equity y Modernized Grid
y Efficiency y Public Health y Workforce y Strategic Alignment"
esr-year-2023.txt,"ComEd PECO PHI
y North Atlantic Mutual y Great Lakes Mutual y North Atlantic Mutual y North Atlantic Mutual
Assistance Group Assistance Group Assistance Group Assistance Group
y Southeastern y Midwest Mutual y Southeastern y Southeastern
Electric Exchange Assistance Group Electric Exchange Electric Exchange
y Southeastern
Electric Exchange
Exelon Sustainability Report 2023 102Supporting Communities
When our communities and people thrive, Exelon thrives. We partner with communities to eliminate
barriers to economic empowerment through workforce development, supplier development, corporate"
esr-year-2023.txt,"ce, technology, engineering and mathematics (STEM) education. To help
communities meet their sustainability and climate goals, we seek fair, equitable access to new
technologies and clean energy opportunities. Our employees also give back to their local communities
through employee philanthropy and volunteerism. Through these actions, Exelon helps power the
economic health and well-being of the diverse communities we serve.
Supporting Local and
Diverse Suppliers
Powering Our
Communities Through
Workforce Development"
esr-year-2023.txt,"antages supplier diversity excellence. The organization
billion USD
from the talents that all people bring to the recognizes companies that spend at least $1 billion
workplace. Exelon serves some of the nation’s annually with Tier 1 diverse suppliers.
largest and most ethnically diverse metropolitan
areas, including Baltimore, Chicago, D.C. and Exelon’s “high-margin” strategy focuses on fully
Philadelphia. We aim to reflect that diversity across integrating certified, diverse-owned suppliers in
our supplier base, in addition to our workforce and under-utilized professional services categories. We"
esr-year-2023.txt,"nd remitted a total of
almost $3.3 billion in income, payroll, property, sales,
[1] Numbers reported on a tax basis and rounded in each jurisdiction to the nearest one thousand dollars.
use, and utility taxes directly related to our business
operations, as summarized in the adjacent table. [2] State and local taxes include income; franchise; payroll; property; sales and use; utility and other taxes as applicable in each jurisdiction.
Exelon Sustainability Report 2023 105Powering Our Communities
Through Workforce Development"
esr-year-2023.txt,"$3.3 billion in income, payroll, property, sales,
[1] Numbers reported on a tax basis and rounded in each jurisdiction to the nearest one thousand dollars.
use, and utility taxes directly related to our business
operations, as summarized in the adjacent table. [2] State and local taxes include income; franchise; payroll; property; sales and use; utility and other taxes as applicable in each jurisdiction.
Exelon Sustainability Report 2023 105Powering Our Communities
Through Workforce Development
An integral part of a just transition is equity in 2023 workforce development highlights included: y In total, since 2019, when we began to synergize"
esr-year-2023.txt,"lars.
use, and utility taxes directly related to our business
operations, as summarized in the adjacent table. [2] State and local taxes include income; franchise; payroll; property; sales and use; utility and other taxes as applicable in each jurisdiction.
Exelon Sustainability Report 2023 105Powering Our Communities
Through Workforce Development
An integral part of a just transition is equity in 2023 workforce development highlights included: y In total, since 2019, when we began to synergize
economic opportunity. Through job creation and our Workforce Development efforts, 1,777 people"
esr-year-2023.txt,"adjacent table. [2] State and local taxes include income; franchise; payroll; property; sales and use; utility and other taxes as applicable in each jurisdiction.
Exelon Sustainability Report 2023 105Powering Our Communities
Through Workforce Development
An integral part of a just transition is equity in 2023 workforce development highlights included: y In total, since 2019, when we began to synergize
economic opportunity. Through job creation and our Workforce Development efforts, 1,777 people
workforce development, Exelon seeks to support y An investment of more than $18 million to support have been hired (internally or externally) through"
esr-year-2023.txt,"urisdiction.
Exelon Sustainability Report 2023 105Powering Our Communities
Through Workforce Development
An integral part of a just transition is equity in 2023 workforce development highlights included: y In total, since 2019, when we began to synergize
economic opportunity. Through job creation and our Workforce Development efforts, 1,777 people
workforce development, Exelon seeks to support y An investment of more than $18 million to support have been hired (internally or externally) through
under-resourced communities to access those industry-leading workforce development programs our job training and other programs."
esr-year-2023.txt,"efforts, 1,777 people
workforce development, Exelon seeks to support y An investment of more than $18 million to support have been hired (internally or externally) through
under-resourced communities to access those industry-leading workforce development programs our job training and other programs.
opportunities. We are committed to empowering across six utilities and in our corporate offices.
the communities in which we work and live with y For the third year in a row, we received the Center
job training, barrier removal efforts and educational y Nearly 8,800 people participated in Exelon’s 90+ for Energy Workforce Development’s highest"
esr-year-2023.txt,"y or externally) through
under-resourced communities to access those industry-leading workforce development programs our job training and other programs.
opportunities. We are committed to empowering across six utilities and in our corporate offices.
the communities in which we work and live with y For the third year in a row, we received the Center
job training, barrier removal efforts and educational y Nearly 8,800 people participated in Exelon’s 90+ for Energy Workforce Development’s highest
resources to prepare and support both work-ready workforce development programs, some of which award—the Chairman’s Award—which recognizes"
esr-year-2023.txt,"ther programs.
opportunities. We are committed to empowering across six utilities and in our corporate offices.
the communities in which we work and live with y For the third year in a row, we received the Center
job training, barrier removal efforts and educational y Nearly 8,800 people participated in Exelon’s 90+ for Energy Workforce Development’s highest
resources to prepare and support both work-ready workforce development programs, some of which award—the Chairman’s Award—which recognizes
adults and youth for family-sustaining careers in advocate for policies and practices and create a company for excellence in workforce"
esr-year-2023.txt,"h we work and live with y For the third year in a row, we received the Center
job training, barrier removal efforts and educational y Nearly 8,800 people participated in Exelon’s 90+ for Energy Workforce Development’s highest
resources to prepare and support both work-ready workforce development programs, some of which award—the Chairman’s Award—which recognizes
adults and youth for family-sustaining careers in advocate for policies and practices and create a company for excellence in workforce
energy and STEM. Workforce development programs programs that reduce systemic barriers to energy development leadership."
esr-year-2023.txt,"s in advocate for policies and practices and create a company for excellence in workforce
energy and STEM. Workforce development programs programs that reduce systemic barriers to energy development leadership.
positively impact the communities we serve by career access; some that strengthen current and/or
equipping individuals who are either unemployed or execute new approaches and partnerships with
underemployed with new and valuable job skills to employers, nonprofits and community groups to
support their future success. The programs also build expand training and job opportunities, and create Workforce Pathway Goal"
esr-year-2023.txt,"; some that strengthen current and/or
equipping individuals who are either unemployed or execute new approaches and partnerships with
underemployed with new and valuable job skills to employers, nonprofits and community groups to
support their future success. The programs also build expand training and job opportunities, and create Workforce Pathway Goal
a pipeline of qualified, diverse and local talent to family-sustaining jobs for work-ready adults and
Educate scholarship recipients about our
support Exelon’s ability to meet the workforce needs youth; and many others—such as our middle- and"
esr-year-2023.txt,"others—such as our middle- and
internship opportunities to help increase
of the energy future. high-school programs that are designed to increase
diversity in STEM fields and work experience
awareness of energy-related and STEM careers.
in their targeted majors.
y 345 adult graduates of one of Exelon’s infrastructure 2023 Status
academies or other job training programs were
85% of Exelon scholarship students
hired either by Exelon or other companies.
participated in internship education events.
y Another 400+ graduates from our other workforce 2024 Goal"
esr-year-2023.txt,"n internship education events.
y Another 400+ graduates from our other workforce 2024 Goal
development programs have achieved many other
Reduce barriers to internship education event
successes, such as receiving internships, earning attendance by creating additional opportunities
college scholarships or increasing their knowledge for those with scheduling or other conflicts.
of STEM and STEM careers.
Exelon Sustainability Report 2023 106STEM Education Promoting Equity in Educational Opportunity
Creating a reliable workforce pipeline is crucial to"
esr-year-2023.txt,"r other conflicts.
of STEM and STEM careers.
Exelon Sustainability Report 2023 106STEM Education Promoting Equity in Educational Opportunity
Creating a reliable workforce pipeline is crucial to
Micaela Venyo Ashanta Smith
ensuring our success while meeting the need for
Exelon Foundation Exelon Foundation
dependable power through the energy transition.
STEM Academy HBCU Scholar
As we promote STEM education for future leaders, Scholar
it is our responsibility to support underrepresented
Hometown:
populations and build a diverse workforce. As part Hometown: Darby, Pennsylvania"
esr-year-2023.txt,"6STEM Education Promoting Equity in Educational Opportunity
Creating a reliable workforce pipeline is crucial to
Micaela Venyo Ashanta Smith
ensuring our success while meeting the need for
Exelon Foundation Exelon Foundation
dependable power through the energy transition.
STEM Academy HBCU Scholar
As we promote STEM education for future leaders, Scholar
it is our responsibility to support underrepresented
Hometown:
populations and build a diverse workforce. As part Hometown: Darby, Pennsylvania
of Exelon’s ongoing efforts to promote workforce Belcamp, Maryland"
esr-year-2023.txt,"108Giving Back to Communities
At Exelon, we are committed to supporting
community progress where we live and work.
We believe our success is linked to the health and
overall well-being of those around us, so we engage
directly with people in our local communities to
make a positive difference in the areas that matter
most to the customers and communities that we
serve. Our engagement efforts span corporate
giving, employee philanthropy and volunteerism.
Our philanthropy programs also complement
Exelon’s broader focus on workforce development"
esr-year-2023.txt,"ternally, we continue to educate employees and
suppliers, establish processes and procedures,
participate in corporate philanthropy and impact
investment and prioritize opportunities for
community-based collaboration.
Exelon Sustainability Report 2023 137A Safe, Innovative and
Rewarding Workplace
Exelon prides itself on fostering a work environment that inspires new ideas, embraces diverse
perspectives and prioritizes safety. Our practices, policies and business strategy are designed to attract
and retain a diverse, talented and engaged workforce with cutting-edge skills, which enables us to"
esr-year-2023.txt,"es us to
best serve our customers as the energy company of the future. This focus enables us to provide our
employees with opportunities related to personal and professional growth, competitive compensation
and benefits and access to meaningful and critical work.
Fostering Our Commitment to
Diversity, Equity and Inclusion
Our Talent Strategy
Workplace Safety and
Management PerformanceFostering Our Commitment to
Diversity, Equity and Inclusion
At Exelon, Diversity, Equity and Inclusion (DEI) are
core values. We embrace and leverage diversity Diverse Workforce"
esr-year-2023.txt,"ployees have one-click access to tools and
employees, vendors and the communities we serve.
educational materials that help them expand their
2024 Goal
DEI capabilities through a dedicated intranet site. This
To advance Exelon’s DEI strategy, we established
Achieve 100% completion rate for senior managers internal website provides information on DEI partner
Diversity Leadership Councils with the specific goal
and above of the DEI Performance Goal. organizations, Employee Resource Groups (ERGs),
to deepen and expand our workforce pipeline to"
esr-year-2023.txt,"’s DEI strategy, we established
Achieve 100% completion rate for senior managers internal website provides information on DEI partner
Diversity Leadership Councils with the specific goal
and above of the DEI Performance Goal. organizations, Employee Resource Groups (ERGs),
to deepen and expand our workforce pipeline to
event calendars, toolkits, articles and webinars.
attract and retain African American, Latinx and Pan-
Asian leaders. With over 80 leaders across councils, DEI Quarterly Webinars
Diverse Workforce meetings are held monthly to create and advance"
esr-year-2023.txt,"ERGs have continued to advance and
contribute to our company-wide DEI journey.
2023 DEI Recognition
Disability Equality Index Best Places to Work for People with Disabilities (2023).
The nation’s leading disability benchmarking tool focuses on companies who
advance disability inclusion as a business imperative. In its first year competing,
Exelon was recognized as an employer of choice for individuals with disabilities.
In 2023, Exelon was honored for the third consecutive year with the Center
for Energy Workforce Development’s “Chairman’s Award for Workforce"
esr-year-2023.txt,"o Work for People with Disabilities (2023).
The nation’s leading disability benchmarking tool focuses on companies who
advance disability inclusion as a business imperative. In its first year competing,
Exelon was recognized as an employer of choice for individuals with disabilities.
In 2023, Exelon was honored for the third consecutive year with the Center
for Energy Workforce Development’s “Chairman’s Award for Workforce
Development” CEWD’s highest honor recognizes companies for excellence in
general workforce development leadership, including excellence in promotion"
esr-year-2023.txt,"oyer of choice for individuals with disabilities.
In 2023, Exelon was honored for the third consecutive year with the Center
for Energy Workforce Development’s “Chairman’s Award for Workforce
Development” CEWD’s highest honor recognizes companies for excellence in
general workforce development leadership, including excellence in promotion
of 21st century energy careers; achievements in diversity, equity and inclusion;
innovations in training; and enhancements to workplace culture and operations
to retain a strong workforce."
esr-year-2023.txt,"share our so that the organization has a robust and diverse
and progressive benefits and wellness programs, vision for a brighter, equitable and more sustainable pipeline of talent to drive business results. Employee
competitive compensation, and a culture driven future. Once onboarded, we continue to invest in and leadership development was a key talent
by diversity and giving, we seek to attract highly the development, engagement and retention of our management focus area in 2023. We assessed
qualified and diverse talent, which we then continue highly talented and motivated workforce. leadership potential and identified possible succession"
esr-year-2023.txt,"ue As leaders share survey results with employees and
brief employee engagement pulse surveys that take action to address the findings, questions for
to Our Employees
allow employees to provide feedback on targeted future Employee Engagement and pulse surveys will
engagement topics and the overall employee be updated as we continue our work to understand
To support and retain our talent, we must create an
experience at Exelon. Our most recent pulse and improve the employee experience at Exelon.
environment where our workforce can achieve its"
esr-year-2023.txt,"questions ask employees for their views involvement in the community
on engagement, communications, ethics, Diversity,
and other aspects of the employee experience.
Equity and Inclusion, and change management.
Employee Engagement Survey Results
(Percent Favorable)
2019 2022 2023
76 75 76 75 76 76
62 61 65
45 41 41
Engagement Communication Diversity, Equity and Inclusion Change[1]
[1] Single item: Change processes are well manged within this company. External norm for this item is 59% favorable.
Exelon Sustainability Report 2023 147Progressive Workforce Policies other periodic compensation reviews, including Health and Well-Being"
esr-year-2023.txt,"health services,
birthing and adoptive parents receive up to eight ensuring fair pay. diabetes management, cancer care guidance,
weeks of paid leave. Employees are also eligible for digital physical therapy, medical travel benefit, and
two weeks of paid leave to care for a family member Tuition Reimbursement gender-affirming care coverage), dental, vision,
with a critical illness. In 2023, Exelon approved Continued education leads to a more engaged, disability, fitness reimbursement, discounted
544 employees for bonding leave and/or primary skilled and productive workforce. We support our fitness partnerships, lactation and breast milk"
esr-year-2023.txt,"EI. We recognize that pay professional certification courses and up to $15,000
mental health training certification.
equity is a key focus for our employees, customers, annually for graduate courses.
shareholders, and other stakeholders. Through
Employee and Labor Relations y Financial: Life insurance, tuition reimbursement,
compensation policies as well as annual and
adoption assistance, tax advantaged accounts,
Exelon has a highly engaged, innovative and
group legal support, one free attorney
collaborative workforce. As of December 31, 2023,"
esr-year-2023.txt,"nd fatalities. On our way to achieving
Our executive-level Safety Council assesses that goal, in 2023, Exelon had no employee or
strategic safety issues, works to improve safety contractor fatalities.
performance, coordinates resources and establishes
safety priorities and programs. Our Safety Culture
Exelon’s Corporate Safety Policy articulates our A key component to a successful safety culture
dedication to safety. The Exelon Safety Peer Group, and prevention of safety incidents is engagement
consisting of safety managers, corporate safety and management from within the workforce."
esr-year-2023.txt,"rams exist across
legal and medical professionals, supports safety our operating companies to ensure two-way
program implementation. The group works communication between leadership and workers.
collaboratively to seek out and identify successful All of our utilities engage in the Value Based
pilot programs or new practices to be adopted by Engagement program, which assesses company
the entire corporation. culture through engagement of employees with
higher-level leaders to routinely survey the
alignment of safety values across the workforce."
esr-year-2023.txt,"lities and reduced
OSHA DART Rate[3] 0.67 0.70 0.87
high-energy serious injuries by 50 percent. Exelon
remains committed to its Serious Injury and Fatality OSHA Lost Time Rate[4] 22.88 19.19 26.58
prevention strategy, with the new High Energy
OSHA Lost Time Incident Rate 0.61 0.55 0.59
Control Assessment (HECA) monitoring metric driving
continuous improvement of safeguards to control
Exelon EEI Serious Injury Incident Rate[5] 0.07 0.06 0.09
hazards, transitioning safety conversations to serious
injury prevention and galvanizing our workforce to Exelon’s Contractor OSHA Recordable Rate 0.61 0.49 0.49"
esr-year-2023.txt,"Lost Time Rate[4] 22.88 19.19 26.58
prevention strategy, with the new High Energy
OSHA Lost Time Incident Rate 0.61 0.55 0.59
Control Assessment (HECA) monitoring metric driving
continuous improvement of safeguards to control
Exelon EEI Serious Injury Incident Rate[5] 0.07 0.06 0.09
hazards, transitioning safety conversations to serious
injury prevention and galvanizing our workforce to Exelon’s Contractor OSHA Recordable Rate 0.61 0.49 0.49
anticipate and recognize potential workplace hazards.
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2021 reflects incidents and employee headcount"
esr-year-2023.txt,"t (HECA) monitoring metric driving
continuous improvement of safeguards to control
Exelon EEI Serious Injury Incident Rate[5] 0.07 0.06 0.09
hazards, transitioning safety conversations to serious
injury prevention and galvanizing our workforce to Exelon’s Contractor OSHA Recordable Rate 0.61 0.49 0.49
anticipate and recognize potential workplace hazards.
[1] Safety performance data for 2022 is based upon Exelon’s post-separation workforce. Data for 2021 reflects incidents and employee headcount
Exelon coordinates benchmark efforts to leverage for Exelon utility operations and corporate-level workforce under Exelon’s previous structure and may differ from previous reports."
esr-year-2023.txt,"ittees hold specific responsibilities
related to Exelon’s sustainability disclosure,
performance and programs. The Sustainability
Governance at Exelon chart summarizes these roles.
Exelon Sustainability Report 2023 156Sustainability Governance at Exelon
Board of Directors
y Oversees all sustainability issues not specifically y Oversees cybersecurity y Receives annual report on diversity initiatives and
delegated to a committee diverse suppliers
y Engages in ongoing discussions around diversity,
y Evaluates climate change related business risks and workforce development and corporate culture y Reviews corporate philanthropy and political"
esr-year-2023.txt,"mmittee approved an enhanced
Annual Incentive Plan (AIP) for executive
compensation that adds a new Responsible Business Sustainability Council Racial Equity Task Force
modifier where 10 percent of the overall AIP
payout for each named executive will align with y Leads the development of an integrated y Focuses on six key areas: Culture & Accountability,
achievement of specific environmental and social sustainability strategy for Exelon and its utilities Customers, Community Empowerment, Policy
measures related to Exelon’s progress on its Path y Recommends internal and external sustainability Reform, Workforce Development and"
esr-year-2023.txt,"vernance
Principles, our policies for interactions with federal,
state and local officials and our corporate and
political contribution guidelines. These policies
and guidelines, as well as our semi-annual
political contribution reports, can be found on
Exelon’s Corporate Governance webpage. As we
work to advance public policy, we ally with many
associations and business groups, such as EEI, AGA
and Business Roundtable, on matters including
clean energy, cybersecurity, supply chain, tax policy,
workforce development and other related business"
esr-year-2023.txt,"d Recycling
GRI 306: Effluents and Waste 2016 306-4 Waste diverted from disposal Waste and Recycling
Exelon Sustainability Report 2023 171Framework Disclosure Location/Response
A Safe, Innovative and Rewarding Workplace
GRI 3: Material Topics 2021 3-3 Management of Employment Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016
GRI 401: Employment 2016 401-1 New employee hires and employee turnover Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 401: Employment 2016 401-3 Parental leave Progressive Workforce Policies"
esr-year-2023.txt,"cs 2021 3-3 Management of Training and Education Employee Development and Training
GRI 404: Training and 404-2 Programs for upgrading employee skills Employee Development and Training
Education 2016
GRI 3: Material Topics 2021 3-3 Management of Diversity and Equal Opportunity Accelerating Our Commitment to Diversity, Equity and Inclusion
GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees Accelerating Our Commitment to Diversity, Equity and Inclusion
Opportunity 2016
GRI 3-3: Material Topics 2021 3-3 Management Approach of Freedom of Association and Collective Bargaining Progressive Workforce Policies"
esr-year-2023.txt,"d over the Long term, Not applicable
broken down by energy source and regulatory regime
GRI EU EU11 Average generation efficiency of thermal plants by energy source and by Not applicable
regulatory regime
GRI EU
EU12 Transmission and distribution losses as a percentage of total energy Exelon 2023 CDP Climate Change Response, C-EU8.4a
GRI EU
EU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas Nature and Stewardship, Terrestrial Habitats and Wildlife Management
GRI EU EU14 (former) Programs and processes to ensure the availability of a skilled workforce Our Talent Strategy"
esr-year-2023.txt,"F-EU-240a.1 Investments to Benefit Customers and Communities,
(3) industrial customers Energy Affordability
(1) Number of residential customer electric disconnections for non-payment, IF-EU-240a.3 Reported to jurisdictional public service commissions for each utility,
(2) percentage reconnected within 30 days as required.
Discussion of impact of external factors on customer affordability of IF-EU-240a.4 Energy Affordability
electricity, including the economic conditions of the service territory
Workforce Health & Safety (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss IF-EU-320a.1 Safety Performance"
esr-year-2023.txt,"d Awareness 98
Business Plan Becomes a Transition Plan 46 Physical Security, Cybersecurity and Business Continuity 99 Appendix 166
Exelon Climate Change Program Structure 48 Exelon Utilities Storm Response 102
Sustainability Scores 167
Learning Through Scenario Analysis 49
GRI Index 168
Supporting Communities 103
Identifying and Assessing Climate-Related Risks 53
SASB Index 175
Supporting Local and Diverse Suppliers 104
Managing Climate-Related Risks 56
GHG Accounting and Reporting Protocol 180
Powering Our Communities Through Workforce Development 106"
expedia-group-global-impact-report-2023.txt,"yee hires and Pages 21–22 410-1 Security personnel trained Pages 50–51
employee turnover in human rights policies Human Rights Statement
or procedures
Modern Slavery Statement
401-2 Benefits provided to full-time Page 18 413-1 Operations with local Pages 26–35
employees that are not provided community engagement,
to temporary or part- time impact assessments, and
employees development programs
401-3 Parental leave Page 18 414-1 New suppliers that were Pages 24, 45
screened using social criteria
403-5 Worker training on Employee Code of Conduct"
expedia-group-global-impact-report-2023.txt,"ocedures
Modern Slavery Statement
401-2 Benefits provided to full-time Page 18 413-1 Operations with local Pages 26–35
employees that are not provided community engagement,
to temporary or part- time impact assessments, and
employees development programs
401-3 Parental leave Page 18 414-1 New suppliers that were Pages 24, 45
screened using social criteria
403-5 Worker training on Employee Code of Conduct
occupational health and safety 415-1 Political contributions Political Participation Policy
403-6 Promotion of worker health Page 18 416-1 Assessment of the health and Pages 32, 52"
expedia-group-global-impact-report-2023.txt,"Global Impact Report
2023
TM
TMEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 2
Outline
Overview Governance
3 About This Report 41 Our Board of Directors
4 Message From Our Vice Chairman and CEO 43 ESG Oversight
5 About Expedia Group 44 Business Ethics
7 Our Strategy 46 Tax
48 Privacy and Cybersecurity
Environmental
50 Human Rights
9 Climate Change
52 Traveler Safety
14 Biodiversity and Nature
Appendix
Social
54 GRI Index
17 Employee Engagement and Development"
expedia-group-global-impact-report-2023.txt,"n
the Technology & Communications sector Internet of future performance and involve significant risks, ESG Disclosure Approach Committee Charter Tax Policy Statement
Media & Services industry (TC-IM), and the Task uncertainties, and other factors that may cause our Our approach to the disclosures included in
Nominating Committee Charter Privacy Statement
Force on Climate-Related Financial Disclosures actual results, performance, or achievements to be this Report differs from our approach to the
(TCFD). Unless otherwise stated, all information materially different from results, performance, or disclosures we include in our mandatory regulatory Employee Code of Conduct Privacy at Expedia Group"
expedia-group-global-impact-report-2023.txt,"uttle and
data and uses moisture sensors to help conserve facilitate bicycle use, with bike trails leading
water across our campus landscapes. directly to the HQ and more than 400 bicycle
parking spaces.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 16
Social
17 E mployee Engagement
and Development
19 Inclusion and Diversity
26 Social Impact
36 AccessibilityEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 17
Employee Engagement Our People and Inclusion & Diversity teams analyze"
expedia-group-global-impact-report-2023.txt,"more than 400 bicycle
parking spaces.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 16
Social
17 E mployee Engagement
and Development
19 Inclusion and Diversity
26 Social Impact
36 AccessibilityEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 17
Employee Engagement Our People and Inclusion & Diversity teams analyze
We lead with a data-driven approach, including the aggregate results to help us understand our
valuable employee feedback and insights. We workforce and directly impact future policies,"
expedia-group-global-impact-report-2023.txt,"SOCIAL GOVERNANCE APPENDIX 16
Social
17 E mployee Engagement
and Development
19 Inclusion and Diversity
26 Social Impact
36 AccessibilityEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 17
Employee Engagement Our People and Inclusion & Diversity teams analyze
We lead with a data-driven approach, including the aggregate results to help us understand our
valuable employee feedback and insights. We workforce and directly impact future policies,
Engagement
continually listen, learn, and respond to employee processes, and programs. We work with an"
expedia-group-global-impact-report-2023.txt,"VIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 17
Employee Engagement Our People and Inclusion & Diversity teams analyze
We lead with a data-driven approach, including the aggregate results to help us understand our
valuable employee feedback and insights. We workforce and directly impact future policies,
Engagement
continually listen, learn, and respond to employee processes, and programs. We work with an
feedback so we can better support our employees independent third-party survey provider to
and their diverse needs across the globe. manage our employee engagement survey process"
expedia-group-global-impact-report-2023.txt,", including the aggregate results to help us understand our
valuable employee feedback and insights. We workforce and directly impact future policies,
Engagement
continually listen, learn, and respond to employee processes, and programs. We work with an
feedback so we can better support our employees independent third-party survey provider to
and their diverse needs across the globe. manage our employee engagement survey process
and Development
confidentially and work closely with our Legal and
Our employee listening strategy includes a cadre of Privacy teams to ensure all protocols are followed."
expedia-group-global-impact-report-2023.txt,"al and
Our employee listening strategy includes a cadre of Privacy teams to ensure all protocols are followed.
online and offline practices, including focus groups,
skip-level listening sessions, and more to capture Development
At Expedia Group, our people are our
feedback and insights. The Your Voice listening We provide employees with the opportunities and
most important asset and are an essential
survey and the SelfID+ survey allow for anonymous tools they need to learn, develop, and achieve
part of who we are — a company of and voluntary employee engagement aimed their full potential. Via our Careers Hub in Workday,"
expedia-group-global-impact-report-2023.txt,"our
feedback and insights. The Your Voice listening We provide employees with the opportunities and
most important asset and are an essential
survey and the SelfID+ survey allow for anonymous tools they need to learn, develop, and achieve
part of who we are — a company of and voluntary employee engagement aimed their full potential. Via our Careers Hub in Workday,
talented innovators working to strengthen at understanding sentiment around company employees can search for new roles and internal
direction and strategy, inclusion, employee job postings and access mentors, learning courses,"
expedia-group-global-impact-report-2023.txt,"ll potential. Via our Careers Hub in Workday,
talented innovators working to strengthen at understanding sentiment around company employees can search for new roles and internal
direction and strategy, inclusion, employee job postings and access mentors, learning courses,
connections, broaden horizons, and bridge
development and well-being, and engagement. and networking opportunities. By creating a Career
divides through travel. A key part of our
Profile, employees can also receive development
employee engagement strategy is to focus As a part of the Your Voice listening survey, we recommendations tailored to them."
expedia-group-global-impact-report-2023.txt,"oice listening survey, we recommendations tailored to them.
on competitive compensation and benefits also conducted more frequent pulse surveys and
focus groups on specific topics that may arise. Our resources allow employees to learn and
and professional development that meet our
Our multiple listening practices informed the develop in both formal and informal settings. In
employees’ diverse range of needs.
Global Expedian Experience Study — the first 2023, Expedia Group employees completed an
comprehensive study of the employee experience average of 11 training and development courses"
expedia-group-global-impact-report-2023.txt,"nce
reviews aligned with their career development and
aspirations. Additionally, employees can set goals
in Workday to inform their career roadmaps and
track progress against them.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 18
Benefits Benefits Offered to Expedia Group Employees8
Expedia Group believes comprehensive benefits
are essential in fostering an inclusive culture and Benefit Description
retaining a diverse workforce. The benefits we offer
Employee Stock Expedia Group offers an Employee Stock Purchase Plan (ESPP) that enables Gender-Affirming Within the U.S., gender-affirming care is provided by health insurance programs."
expedia-group-global-impact-report-2023.txt,"and Benefit Description
retaining a diverse workforce. The benefits we offer
Employee Stock Expedia Group offers an Employee Stock Purchase Plan (ESPP) that enables Gender-Affirming Within the U.S., gender-affirming care is provided by health insurance programs.
have been informed by feedback received through
Purchase Plan employees at eligible locations to purchase our shares at a discount. Health Care Benefits Outside of the U.S., we offer up to $10,000 in financial support for employees and
our employee engagement surveys and focus"
expedia-group-global-impact-report-2023.txt,"y allowing them to work from Service Members up” pay, allowing employees to receive their full paycheck for 30 days of service.
other Expedia Group offices for up to four weeks a year. Additionally, if their spouse/partner is deployed or activated for military service, we will
provide 10 days of military spouse leave.
Company-Paid The health of our employees is fundamental and necessary. We provide locally
Health Care Insurance competitive health care plans or options to our employees globally.
Employee Assistance We offer a variety of benefits to support our employees’ mental health and stress Pet Benefits Pets are important extensions of the family for many employees. Recognizing the key"
expedia-group-global-impact-report-2023.txt,"if their spouse/partner is deployed or activated for military service, we will
provide 10 days of military spouse leave.
Company-Paid The health of our employees is fundamental and necessary. We provide locally
Health Care Insurance competitive health care plans or options to our employees globally.
Employee Assistance We offer a variety of benefits to support our employees’ mental health and stress Pet Benefits Pets are important extensions of the family for many employees. Recognizing the key
Program and Mental management, including both an Employee Assistance Program and Spring Health. role they play in our employees’ well-being, we offer several pet benefits, including"
expedia-group-global-impact-report-2023.txt,"connect with licensed therapists to two weeks of work schedule flexibility when bringing home a new pet, expanding our
receive flexible, accessible, and fully personalized mental health support. bereavement leave policy to include pets, and introducing the opportunity to use our
Internally, we have a network of Mental Health Ambassadors to offer our employees wellness reimbursement benefit for pet-related purchases.
peer-to-peer support. These Ambassadors have all been trained in mental health
first aid. Gift Matching Expedia Group matches employee contributions one-to-one up to $10,000."
expedia-group-global-impact-report-2023.txt,"tform that is inclusive of all our travelers. Inclusion and Diversity Goals
Our success centers on our ability to attract, retain
and develop a diverse workforce of employees who Global Binary Gender U.S. Underrepresented
reflect our travelers around the world. Representation Goal Identities (URI)9 Hiring Goal
50% 25%
In 2023, Expedia Group further aligned our
Inclusion & Diversity (I&D) team with our People
team and focused on integrated solutions, guided Goal to reach a 50/50 Goal to hire 25%
by talent attraction, employee experience, and binary gender balance of external U.S. hires"
expedia-group-global-impact-report-2023.txt,"mplete their license before they can interview;
it includes a live session on mitigating bias,
providing inclusive candidate experiences, and
assessing based on competencies.
Talent Attraction: We expanded and invested in
new partnerships with underrepresented talent
networks to diversify the talent pipeline, increase
access, and reach underrepresented talent through
authentic and resonant experiences.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 21
This page showcases a summary of our workforce 17,100 U.S. Employee Representation by Race and Ethnicity11"
expedia-group-global-impact-report-2023.txt,"s
of our U.S. workforce, please reference our Equal Employees11 Overall Tech Non-Tech Leadership
Employment Opportunity (EEO-1) Report for 2022.
’23 ’22 ’21 ’20 ’19 ’23 ’22 ’21 ’20 ’19 ’23 ’22 ’21 ’20 ’19 ’23 ’22 ’21 ’20 ’19
American Indian/
0.4% 0.4% 0.3% 0.3% 0.4% 0.2% 0.2% 0.3% 0.2% 0.3% 0.7% 0.5% 0.4% 0.4% 0.4% 0.2% 0.2% 0.1% 0.1% 0.0%
Alaska Native
Asian/
32.4% 31.4% 30.4% 25.4% 24.4% 50.0% 49.2% 47.3% 45.3% 44.3% 11.2% 11.1% 12.0% 10.3% 10.8% 27.2% 26.6% 24.3% 22.7% 24.1%
Pacific Islander
Global Employee Gender Representation11 Black/"
expedia-group-global-impact-report-2023.txt,"s
that Expedia Group culture permeates all offices. Community Business Groups
• APAC I&D Council
In 2023, we launched our first IBG Summit. Led • EMEA I&D Council
by our IBGs to help mold future leaders of the • LATAM I&D Council
Company, the two-day summit was designed • Friends of Grief
to inspire and foster long-lasting change across • I&D Facilitators
the business. The IBG Summit has furthered our • Mental Health Ambassadors
commitment to empowering our employees and • Return from Maternity
fostering greater employee belonging. • SAGE: Sustainable and Green at Expedia Group"
expedia-group-global-impact-report-2023.txt,"visitors to avoid traveling to Maui.
to disasters and support communities in building • The Atlantic Hurricane Season Recovery Fund Expedia Group encouraged Vrbo partners across
longer-term recovery and resilience. • The California Wildfires Recovery Fund Hawaii to offer their properties to Maui residents
• The Global Recovery Fund displaced by wildfires through the Hawai‘i Fire Relief
Housing Program.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 34
Supporting Indigenous Communities Employee Volunteering Employee"
expedia-group-global-impact-report-2023.txt,"operties to Maui residents
• The Global Recovery Fund displaced by wildfires through the Hawai‘i Fire Relief
Housing Program.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 34
Supporting Indigenous Communities Employee Volunteering Employee
In 2021, Expedia Group formally committed to Our community engagement efforts are focused
Volunteering
reconciliation for Australia’s Aboriginal and Torres where a majority of our employees live and work
Overview19
Strait Islander people through the Reconciliation to maximize employee engagement. Throughout"
expedia-group-global-impact-report-2023.txt,"lped address issues that mattered most to
We continue to support Aboriginal and Torres their local communities.
Strait Islander people, engaging First Nations-led Expedia Group volunteers
catering suppliers for key RAP events. One way our employees give back is through
targeted donations to causes they are passionate
34,931
We are also proud to support the Indigenous about. We want to amplify the impact of these
Tourism Association of Canada (ITAC) and donations by matching their contributions.
Destination Canada’s work in championing and In 2023, Expedia Group matched employee hours of employee"
expedia-group-global-impact-report-2023.txt,"(up to $10,000), resulting volunteering
Group’s contribution marks a boost to ITAC’s in approximately $5 million donated to support
newly established Indigenous Tourism Destination community causes around the world. 2,420
Fund (ITDF). Launched in 2023, ITDF offers a
unique opportunity for travelers, Indigenous Employees are also passionate about volunteering
nonprofit causes
businesses, and non-Indigenous companies to their time and expertise to support local initiatives.
supported by employees
actively participate in and support Indigenous Every employee can volunteer with charities for"
expedia-group-global-impact-report-2023.txt,"apply its principles, norms, and by matching donations and the value of the time
standards to corporate policy and operational they volunteered — to reinforce their significant
activities involving Indigenous peoples and their efforts and support the organizations they care
lands and resources. about most.
19 As of December 31, 2023.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 35
IBG Grantmaking Program
In 2023, we piloted a new program empowering
employee-led grantmaking with our IBGs. The"
expedia-group-global-impact-report-2023.txt,"ffice, drawers for supplies at social points, making it
we also lease a significant proportion of our easier for employees with mobility disabilities to
office space. As such, we work closely with access everyday office items. Lastly, Expedia Group
property owners to ensure the spaces we lease offers Grammarly as a tool to employees who
are accessible. In 2022, we launched a global identify as being neurodivergent to assist them
workforce accommodation fund to better support with communication.
employee requests for disability accommodations"
expedia-group-global-impact-report-2023.txt,"or disability accommodations
and adjustments. Through this centralized These initiatives reflect our commitment to creating
fund, employees can access a range of assistive an inclusive and safe working environment for
technologies and office equipment — such all employees.
as screen readers, ergonomic keyboards, and
specialized office chairs. They can also arrange
on-site accommodation for service animals and
12.7%
request changes to standard working conditions,
including location and schedule.
of the global employee population"
expedia-group-global-impact-report-2023.txt,", or regulations, and assess tax planning on
a case-by-case basis based on the relevant facts
and circumstances.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 48
Privacy and Risk Management and Strategy Technical Safeguards and Incident Response: Education and Awareness: Expedia Group’s Training Completion Rates27
Expedia Group’s privacy and cybersecurity risk Expedia Group classifies its electronic data and mandatory annual privacy and cybersecurity
management program is composed of the information systems based on the sensitivity employee training program covers critical aspects Security"
expedia-group-global-impact-report-2023.txt,"agencies access our platform
and approaches to address them. to facilitate movement of a person or persons for
nefarious purposes.
Partnerships
We regularly seek new partnerships to advance Expedia Group has embarked on a
collective action against some of the travel and collaboration with Polaris Project, a leader
tourism industry’s greatest human rights challenges, in the anti-trafficking movement. This
particularly human trafficking and forced labor. partnership consists of four key elements:
Supply Chain • Employee training"
expedia-group-global-impact-report-2023.txt,"Global Impact Report was published on May 6, 2023 2-13 Delegation of responsibility for Proxy Pages 14-16
and contact point and covers calendar year 2023. Expedia Group’s ESG reporting follows an managing impacts Page 43
annual cycle, similar to our financial reporting. For any related questions,
please contact our Investor Relations team at ir@expedia.com.
2-4 Restatements of information Expedia Group has not made any restatements in the reporting period 2-15 Conflict of interest 10-K Page 25
relating to its 2023 Global Impact Report. Employee Code of Conduct"
expedia-group-global-impact-report-2023.txt,"highest governance body Nominating Committee Charter remuneration Compensation Committee Charter
Board Commitment on CEO Candidate Diversity 2-21 Annual total Proxy Page 66
compensation ratioEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 55
GRI Index continued
Disclosure Code Disclosure Title Disclosure Location
2-22 Statement on sustainable Page 4 201-3 Defined benefit plan 10-K Pages 85–87
development strategy obligations and other
retirement plans
2-23 Policy commitments Employee Code of Conduct 203-1 Infrastructure investments and Pages 10, 12–15, 26–35"
expedia-group-global-impact-report-2023.txt,"orted
Code of Business Conduct and Ethics for Directors and Senior Financial Officers
Vendor Code of Conduct 203-2 Significant indirect Pages 26–35
Climate Action Plan economic impacts
Board Commitment on CEO Candidate Diversity 204-1 Proportion of spending on Page 24
Equal Employment Opportunity Policy local suppliers
Community Standards 205-1 Operations assessed for risks Page 45
Political Participation Policy related to corruption
Tax Policy Statement
205-2 Communication and training Page 45
Privacy Statement about anti-corruption policies Employee Code of Conduct"
expedia-group-global-impact-report-2023.txt,"s Employee Code of Conduct
Privacy at Expedia Group and procedures
Code of Business Conduct and Ethics for Directors and Senior Financial Officers
Partner Privacy and Data Handling Requirements
Vendor Code of Conduct
Vendor Privacy and Data Handling Requirements
206-1 Legal actions for anti- 10-K Pages 22–23, 29–31
Human Rights Statement
competitive behavior, anti-
Modern Slavery Statement trust, and monopoly practices
2-26 Mechanisms for seeking advice Page 45 207-1 Approach to Tax Pages 46–47
and raising concerns Employee Code of Conduct Tax Policy Statement"
expedia-group-global-impact-report-2023.txt,") GHG emissions Pages 9, 65 408-1 Operations and suppliers at Human Rights Statement
significant risk for incidents of Modern Slavery Statement
305-2 Energy indirect (Scope 2) Pages 9, 65
child labor
GHG emissions Vendor Code of Conduct
305-3 Other indirect (Scope 3) Pages 9, 65 409-1 Operations and suppliers at Human Rights Statement
GHG emissions significant risk for incidents of Modern Slavery Statement
forced or compulsory labor
305-5 Reduction of GHG emissions Page 9 Vendor Code of Conduct
401-1 New employee hires and Pages 21–22 410-1 Security personnel trained Pages 50–51"
expedia-group-global-impact-report-2023.txt,"ignificant risk for incidents of Modern Slavery Statement
305-2 Energy indirect (Scope 2) Pages 9, 65
child labor
GHG emissions Vendor Code of Conduct
305-3 Other indirect (Scope 3) Pages 9, 65 409-1 Operations and suppliers at Human Rights Statement
GHG emissions significant risk for incidents of Modern Slavery Statement
forced or compulsory labor
305-5 Reduction of GHG emissions Page 9 Vendor Code of Conduct
401-1 New employee hires and Pages 21–22 410-1 Security personnel trained Pages 50–51
employee turnover in human rights policies Human Rights Statement"
expedia-group-global-impact-report-2023.txt,"yee hires and Pages 21–22 410-1 Security personnel trained Pages 50–51
employee turnover in human rights policies Human Rights Statement
or procedures
Modern Slavery Statement
401-2 Benefits provided to full-time Page 18 413-1 Operations with local Pages 26–35
employees that are not provided community engagement,
to temporary or part- time impact assessments, and
employees development programs
401-3 Parental leave Page 18 414-1 New suppliers that were Pages 24, 45
screened using social criteria
403-5 Worker training on Employee Code of Conduct"
expedia-group-global-impact-report-2023.txt,"orary or part- time impact assessments, and
employees development programs
401-3 Parental leave Page 18 414-1 New suppliers that were Pages 24, 45
screened using social criteria
403-5 Worker training on Employee Code of Conduct
occupational health and safety 415-1 Political contributions Political Participation Policy
403-6 Promotion of worker health Page 18 416-1 Assessment of the health and Pages 32, 52
safety impacts of product and
service categories
404-2 Programs for upgrading Pages 17, 22
employee skills and transition"
expedia-group-global-impact-report-2023.txt,"regions
data security risks,
with High or Extremely High
including use of third-party
Baseline Water Stress
cybersecurity standards
TC-IM-130a.3 • Discussion of the integration of Please reference Page 10.
environmental considerations TC-IM-330a.1 • Percentage of employees Expedia Group does not publicly disclose this information. For more information on
into strategic planning for that are foreign nationals Expedia Group’s workforce demographics, please reference Pages 21–22.
data center needs
TC-IM-330a.2 • Employee engagement as a Please reference Page 17."
expedia-group-global-impact-report-2023.txt,"borate and support this work in coming years.
Disclose Scope 1, Scope 2, and, if • Scope 1: 3,451 mtCO2e
appropriate, Scope 3 greenhouse gas
• Scope 2: 13,516 mtCO2e
(GHG) emissions, and the related risks.
• Scope 3: 674,566 mtCO2e
– Category 1 – Purchased Goods & Services: 613,293 mtCO2e
– Category 2 – Capital Goods: 20,088 mtCO2e
– Category 3 – Fuel- & Energy-Related Activities: 4,277 mtCO2e
– Category 5 – Waste Generated in Operations: 119 mtCO2e
– Category 6 – Business Travel: 25,206 mtCO2e
– Category 7 – Employee Commuting & Work from Home: 11,031 mtCO2e"
expedia-group-global-impact-report-2023.txt,"is no evidence that the GHG emissions statement shown
Fuel- and Energy-Related Activities (Market-Based): 2,519 metric tons of CO2 equivalent above:
Waste Generated in Operations: 119 metric tons of CO2 equivalent • is not materially correct and is not a fair representation of the GHG emissions data and information; and
Business Travel (Without Radiative Forcing): 25,206 metric tons of CO2 equivalent • has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and
Employee Commuting (Location-Based): 11,031 metric tons of CO2 equivalent Reporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain"
expedia-group-global-impact-report-2023.txt,"• is not materially correct and is not a fair representation of the GHG emissions data and information; and
Business Travel (Without Radiative Forcing): 25,206 metric tons of CO2 equivalent • has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and
Employee Commuting (Location-Based): 11,031 metric tons of CO2 equivalent Reporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).
Employee Commuting (Market-Based): 11,347 metric tons of CO2 equivalent"
expedia-group-global-impact-report-2023.txt,"more than 400 bicycle
parking spaces.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 16
Social
17 E mployee Engagement
and Development
19 Inclusion and Diversity
26 Social Impact
36 AccessibilityEXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 17
Employee Engagement Our People and Inclusion & Diversity teams analyze
We lead with a data-driven approach, including the aggregate results to help us understand our
valuable employee feedback and insights. We workforce and directly impact future policies,"
expedia-group-global-impact-report-2023.txt,"on topics. with their managers during formal performance
reviews aligned with their career development and
aspirations. Additionally, employees can set goals
in Workday to inform their career roadmaps and
track progress against them.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 18
Benefits Benefits Offered to Expedia Group Employees8
Expedia Group believes comprehensive benefits
are essential in fostering an inclusive culture and Benefit Description
retaining a diverse workforce. The benefits we offer"
expedia-group-global-impact-report-2023.txt,"nefits may vary based on location.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 19
Inclusion and Diversity 48%
women representation
At Expedia Group, our mission is to power global travel for everyone,
40%
everywhere. Likewise, we are working to build a workplace that is
for everyone, everywhere. We are building a culture where inclusion
women representation at the
is weaved into all facets of our business, ultimately evolving our
leadership level10
workforce and presence in the marketplace."
expedia-group-global-impact-report-2023.txt,"grate inclusion At Expedia Group, we have two public-facing goals
and diversity into our talent and business processes. to drive accountability and transparency toward
Through our commitments, enablement, and building a workplace that reflects our travelers.
inclusive practices we are driving access and
opportunity for all our employees, who in turn build
a travel platform that is inclusive of all our travelers. Inclusion and Diversity Goals
Our success centers on our ability to attract, retain
and develop a diverse workforce of employees who Global Binary Gender U.S. Underrepresented"
expedia-group-global-impact-report-2023.txt,"mplete their license before they can interview;
it includes a live session on mitigating bias,
providing inclusive candidate experiences, and
assessing based on competencies.
Talent Attraction: We expanded and invested in
new partnerships with underrepresented talent
networks to diversify the talent pipeline, increase
access, and reach underrepresented talent through
authentic and resonant experiences.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 21
This page showcases a summary of our workforce 17,100 U.S. Employee Representation by Race and Ethnicity11"
expedia-group-global-impact-report-2023.txt,"sed on competencies.
Talent Attraction: We expanded and invested in
new partnerships with underrepresented talent
networks to diversify the talent pipeline, increase
access, and reach underrepresented talent through
authentic and resonant experiences.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 21
This page showcases a summary of our workforce 17,100 U.S. Employee Representation by Race and Ethnicity11
and our progress. For a more in-depth analysis
of our U.S. workforce, please reference our Equal Employees11 Overall Tech Non-Tech Leadership"
expedia-group-global-impact-report-2023.txt,"50% 56% 54% 51%
Returnship Program Several programs help us introduce more young
Returning to work after extended time off can talent to tech careers, including:
be challenging. We want to support a stress-free Women
transition, with a Returnship Program that makes Career Discovery Program — The Career Discovery
Men
getting back to work as seamless as possible. Program is designed to engage with students
Our 16-week Returnship Program is open to earlier in their educational and career journeys
professionals looking to return to the workforce and provide learning activities and growth"
expedia-group-global-impact-report-2023.txt,"p
• Volunteers: Volunteers at Expedia Group
36%
of Expedia Group employees belong
to one or more IBGs or CBGs.13
13 As of December 31, 2023.EXPEDIA GROUP GLOBAL IMPACT REPORT — 2023 OVERVIEW ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 24
Vendor Diversity $50M Pay Parity Our analysis found
Expedia Group is committed to achieving the Expedia Group is committed to paying our
same level of inclusion in our supply chain as in employees a living wage and expects our vendors,
target spend with diverse 3%
our workforce. Our Vendor Diversity Program suppliers, and contractors to do the same, as"
expedia-group-global-impact-report-2023.txt,"ity U.S.). We conduct our analysis through a third-
of our employees and travelers — it also represents Expedia Group’s program launched in 2023 in the party compensation analytics platform and then
a valuable opportunity to drive greater economic U.S. with a first-year target to spend $50 million remedy any statistically significant pay gaps. Our $1 $1
prosperity for underrepresented communities. with diverse vendors; 2023 also serves as a baseline analysis included 100% of our global and U.S.
year to monitor progress as the program matures. In workforce for gender and ethnicity, respectively."
expedia-group-global-impact-report-2023.txt,"heir ambition
to help grow their Employability Accelerator in to unite the travel industry through positive
India. The program prepares Indian youth for green economic, environmental, and social impact.
jobs across the hospitality sector, enabling them They are achieving this by creating opportunities,
to realize their potential and succeed in life. India empowering communities, amplifying culture, and
has nearly 500 million people of working age, protecting the environment, all while fostering
the second largest workforce in the world. It has diverse perspectives and inclusivity."
expedia-group-global-impact-report-2023.txt,"upported by employees
actively participate in and support Indigenous Every employee can volunteer with charities for
tourism development. up to eight paid hours annually. To maximize their
impact, Expedia Group will match every volunteer
The fund channels contributions into hour with a $30 donation to their chosen charity.
four critical areas:
Month of Caring
• Infrastructure Every September, we host a Month of Caring, creating
• Product development opportunities for employees worldwide to make
• Workforce meaningful contributions where they live and work."
expedia-group-global-impact-report-2023.txt,"arities in health, human race, and socioeconomic status. They are
approach to determine our new partners with a
founders in utilizing technology to scale services, and education. committed to promoting human dignity
focus on: their businesses. and social well-being for all, offering
comprehensive and free services to ensure
that this community can fully access their
• Organizations taking an intersectional
social and economic rights.
approach and serving more than one
underrepresented community
• Global URI workforce development"
expedia-group-global-impact-report-2023.txt,"re
approach to determine our new partners with a
founders in utilizing technology to scale services, and education. committed to promoting human dignity
focus on: their businesses. and social well-being for all, offering
comprehensive and free services to ensure
that this community can fully access their
• Organizations taking an intersectional
social and economic rights.
approach and serving more than one
underrepresented community
• Global URI workforce development
benefiting society at large
• URI workforce development benefiting"
expedia-group-global-impact-report-2023.txt,"iences.
The guide offers practical solutions on moving
of the global population trips taken by travelers properties from compliant to fully inclusive
lives with a disability with disabilities design. For more information on Expedia
Group’s accessibility policies, refer to Expedia
~$59B <55% Group’s Service Animals Policy.
Throughout 2023, Expedia Group took several
spent by travelers of people report seeing
steps to ensure greater accessibility across
with disabilities travel options accessible
travel options and within our workforce."
expedia-group-global-impact-report-2023.txt,"s such as installing lowered
While we own and operate our Seattle office, drawers for supplies at social points, making it
we also lease a significant proportion of our easier for employees with mobility disabilities to
office space. As such, we work closely with access everyday office items. Lastly, Expedia Group
property owners to ensure the spaces we lease offers Grammarly as a tool to employees who
are accessible. In 2022, we launched a global identify as being neurodivergent to assist them
workforce accommodation fund to better support with communication."
expedia-group-global-impact-report-2023.txt,"h to Please reference Pages 27–28 of our Annual Report on Form 10-K.
• Total water consumed
identifying and addressing
• Percentage of each in regions
data security risks,
with High or Extremely High
including use of third-party
Baseline Water Stress
cybersecurity standards
TC-IM-130a.3 • Discussion of the integration of Please reference Page 10.
environmental considerations TC-IM-330a.1 • Percentage of employees Expedia Group does not publicly disclose this information. For more information on
into strategic planning for that are foreign nationals Expedia Group’s workforce demographics, please reference Pages 21–22."
expedia-group-global-impact-report-2023.txt,"ease reference Page 10.
environmental considerations TC-IM-330a.1 • Percentage of employees Expedia Group does not publicly disclose this information. For more information on
into strategic planning for that are foreign nationals Expedia Group’s workforce demographics, please reference Pages 21–22.
data center needs
TC-IM-330a.2 • Employee engagement as a Please reference Page 17.
TC-IM-220a.1 • Description of policies Please reference our Privacy Statement. percentage
and practices relating to
TC-IM-330a.3 • Percentage of gender Please reference Pages 21–22 for Expedia Group’s workforce demographic data,"
FedEx_2023_ESG_Report.txt,"ollars)[1] $65.59 $80.83 $86.33
data is based on definitions from the United States Occupational Safety and Health Administration (OSHA).
3 For percent male and percent female breakouts, FedEx Express Europe, FedEx Express Canada, and FedEx Express MEISA numbers
are not included for FY21 and FY22. 1 Includes direct cash grants, charitable shipping, and Corporate Marketing and FedEx Express in-kind donations to nonprofit
organizations, and team member contributions to annual United Way Campaign.
4 GRI definition: the death of a worker occurring in the current reporting period, arising from an occupational injury or disease"
FedEx_2023_ESG_Report.txt,"Ex Corporation (FedEx) provides our committed to making a positive impact across the
customers with a broad portfolio of transportation, globe by serving our customers, delivering a more
e-commerce, and business services through sustainable future, supporting our communities,
our operating companies, which compete and helping elevate standards of living.
collectively, operate collaboratively, and innovate
Our extensive global reach, along with our
digitally as one FedEx. This approach allows us
employee base of over half a million people and"
FedEx_2023_ESG_Report.txt,"onduct and global
compliance policies
and compliance
The FedEx Code guides our day-to-day work and
Our business is built on ethics, integrity, and sets forth principles that enable us to deliver on
reliability. Customers trust us with their shipments, the Purple Promise. In FY24, we plan to update and
and we work to earn this trust by delivering on the redesign our Code as part of our commitment to
Purple Promise. The Audit and Finance Committee continuous improvement. The Code applies to every
oversees the company’s integrity and compliance FedEx officer, director, and employee, and certain"
FedEx_2023_ESG_Report.txt,"icable
languages. FedEx prohibits retaliation against
98% annual laws and regulations. Our world-class tax
anyone who reports a known or suspected violation
professionals are guided by the FedEx Code and
in good faith.
completion rate keep our brand reputation top of mind. We believe
In FY22, we received more than 17,000 reports transparency is critical to our tax approach and
We consistently achieve a 98% from team members, customers, and the public seek to continuously improve our approach by
annual completion rate, on average, on issues such as employee relations, safety, fostering open and constructive relationships with"
FedEx_2023_ESG_Report.txt,"owned businesses and 50% given to minority-
global economy in FY22—a nearly 12% increase owned businesses. Over the last ten years the
over the company’s indirect contributions in FY21. grant contest has provided over $1.7 million to Key links
Our activity supported an estimated 193,000 111 small businesses across the U.S. The contest
Global Economic Impact Report
additional jobs beyond the FedEx worldwide is now offered in Europe, India, Asia-Pacific, and
Global Entrepreneurship | FedEx Cares
employee base—20,000 more jobs than FedEx Latin America and the Caribbean."
FedEx_2023_ESG_Report.txt,"equity, and
Directors oversees our social governance approach and ensures our culture
inclusion create opportunity
aligns with our values and long-term strategy. The Compensation and Human
Health and safety
Resources Committee reviews our key human resource management strategies
and programs, while the Governance, Safety, and Public Policy Committee is
responsible for overseeing our safety strategies, policies, and initiatives.
The HR department of each operating company manages social topics,
including career development and training, health and well-being, and employee"
FedEx_2023_ESG_Report.txt,"Committee reviews our key human resource management strategies
and programs, while the Governance, Safety, and Public Policy Committee is
responsible for overseeing our safety strategies, policies, and initiatives.
The HR department of each operating company manages social topics,
including career development and training, health and well-being, and employee
engagement. The FedEx Corporate HR department aligns these procedures
and programs to ensure consistency across operating companies while
also managing employee benefits and development programs. Each FedEx"
FedEx_2023_ESG_Report.txt,"e responsible Promise, and our Quality Driven Management
common culture values and behaviors will provide
for driving our DEI strategy and engagement. The system—and are directly aligned with our strategic
direction and inspiration for team members and
FedEx Ground Equity, Inclusion, and Engagement operating principles of compete collectively,
continue to differentiate us as an industry leader.
department creates, drives, and measures strategic operative collaboratively, and innovate digitally.
DEI and employee engagement efforts and FedEx These interconnected components align closely"
FedEx_2023_ESG_Report.txt,"k smarter for
f f
We bring our whole selves We do the right things the
f our customers. f We provide a path to
to work. right way. We invest wisely to
f growth for everyone.
drive profit. We find ways to stand
f f
We value our differences We help communities thrive.
out from the crowd.
f
and believe every We create value for
f
voice counts. our stockholders. We are fast, flexible,
and focused.
FFeeddEExx 22002233 EESSGG RReeppoorrtt 2266Human resource We implement development programs to ensure
our talent pipeline and current employee base"
FedEx_2023_ESG_Report.txt,"e’s talent, dedication, and well-being. We
trailer drivers. We currently employ approximately
strive to recruit, retain, develop, and support our
275 drivers from this program. FedEx Express
team members as we grow globally.
Asia-Pacific, Middle East, and Africa (AMEA) is
collaborating with specialized universities to
Talent acquisition and engagement develop a quality talent pool with specific skills
Our recruiting practices enable us to build a talented and knowledge in gateway operations and
employee base representative of the communities customer service. In total, 66 students in China"
FedEx_2023_ESG_Report.txt,"nt from ‘non-traditional’ pathways.
Profit philosophy to life by:
FedEx Ground uses automated hiring processes
f f to simplify applications for front-line candidates,
Prioritizing safety Acting with integrity in all that we do
and FedEx Office will soon add an artificial
f f
Taking care of our team members Supporting our communities intelligence chatbot feature to the application
f f process to improve our capabilities. FedEx Express
Embracing diversity, equity, and Helping shape a better world
enhances the candidate and employee experience"
FedEx_2023_ESG_Report.txt,"hired 558,290 full- and wellness, paid sick leave, other flexible paid time
part-time team members. Every day, we work off, and other benefits. To ensure our benefits
hard to earn and maintain the loyalty of our and compensation stay competitive, we conduct
team members by creating a workplace culture periodic peer benchmarking and internal pay
that supports their aspirations and provides equity analyses.
opportunities for career development. FedEx
All eligible full- and part-time team members
Express and FedEx Logistics launched employee"
FedEx_2023_ESG_Report.txt,"higher
coverage with enhanced member support
than in FY21, primarily due to overall greater
services. Our member premiums and plan costs
hiring volumes. See the Data appendix for more
are lower than the market average. To better
information on our recruitment and retention.
support qualifying members living with type 2
We value feedback from our team members and diabetes, we introduced a new Type 2 Diabetes
provide several avenues of engagement, such as plan designed to help members save money,
annual surveys, employee networks, and direct better control their blood sugar, and increase the"
FedEx_2023_ESG_Report.txt,"lower than the market average. To better
information on our recruitment and retention.
support qualifying members living with type 2
We value feedback from our team members and diabetes, we introduced a new Type 2 Diabetes
provide several avenues of engagement, such as plan designed to help members save money,
annual surveys, employee networks, and direct better control their blood sugar, and increase the
feedback. These methods allow us to better probability of remission. We expanded our Bind
understand employee concerns and expectations, Plan option, which offers no deductible and no"
FedEx_2023_ESG_Report.txt,"designed to help members save money,
annual surveys, employee networks, and direct better control their blood sugar, and increase the
feedback. These methods allow us to better probability of remission. We expanded our Bind
understand employee concerns and expectations, Plan option, which offers no deductible and no
and results from these engagements inform coinsurance, to certain part-time employees.
our future strategies. Annually, we conduct an
We offer competitive time-off that is based on
engagement survey to measure employee insights"
FedEx_2023_ESG_Report.txt,"l eligible sick leave and paid parental leave is available for
full- and part-time team members are equipped eligible full- and part-time employees.
with competitive benefits, including healthcare,
FedEx 2023 ESG Report 28We understand the importance of supporting learning and development opportunities increase In FY22, FedEx provided over $23 million in tuition
our team members’ mental health and provide team member engagement, improve retention, assistance to more than 12,000 employees. FedEx
24/7 confidential counseling services to our and enhance the employee value proposition. Ground offers discounted or debt-free college at"
FedEx_2023_ESG_Report.txt,"g and development opportunities increase In FY22, FedEx provided over $23 million in tuition
our team members’ mental health and provide team member engagement, improve retention, assistance to more than 12,000 employees. FedEx
24/7 confidential counseling services to our and enhance the employee value proposition. Ground offers discounted or debt-free college at
employees and their household members several schools in the U.S. through the Education
Across the enterprise, we tailor our Core New
through our Employee Assistance Program. Our for Life program. The Learning inspired by FedEx"
FedEx_2023_ESG_Report.txt,"ur team members’ mental health and provide team member engagement, improve retention, assistance to more than 12,000 employees. FedEx
24/7 confidential counseling services to our and enhance the employee value proposition. Ground offers discounted or debt-free college at
employees and their household members several schools in the U.S. through the Education
Across the enterprise, we tailor our Core New
through our Employee Assistance Program. Our for Life program. The Learning inspired by FedEx
Employee Orientation to best fit team member"
FedEx_2023_ESG_Report.txt,"U.S. In
constantly monitoring and adjusting our strategy
a variety of career development programs and 2022, we successfully completed a pilot cohort of
as we learn of new developments and use survey
learning initiatives across our global operations. the LiFE program where 42 employees completed
data at the local, national, and enterprise levels
In the U.S., FedEx Express kicked off its tenth year a certification from Amity University Dubai in the
to inform our strategy. We encourage purposeful
of the global high-potential employee program, United Arab Emirates."
FedEx_2023_ESG_Report.txt,"ance our
recent years. We are proud of the work our people
culture through DEI education
accomplished over the past year but understand
In FY22, FedEx participated in a variety of
there is always more to be done.
employment events, including partnering with the
Society of Women Engineers, the National Black DEI
FedEx has a long-standing commitment to fully
MBA Association, and Historically Black Colleges
embrace DEI throughout our organization, from
and Universities (HBCUs) to expand our talent
the Board of Directors to every employee. This"
FedEx_2023_ESG_Report.txt,"sors and other team
non-profits aligned with our DEI commitment
members. Across our operating companies, we
Board racial/ethnic diversity to increase equity in the communities we serve.
offer a micro-learning platform to deliver digestible
We work with community partners, including
20% Racially or ethnically diverse 80% White
DEI content for all career levels.
the National Action Network, and sponsor
events, such as the Rise Up and Memphis Proud
Team members can participate in business resource
Global management gender diversity teams, employee networks, and affinity groups Exhibits at the Memphis Museum of Science and"
FedEx_2023_ESG_Report.txt,"k, Women Leading Change, LGBT &
endowed scholarships at eight HBCUs where we
Friends, U.S. Military Veterans, Growing Professionals,
are expanding opportunities for students through
Parents Working Together, EnABLE Network, Men
a $5 million multi-year contribution to prepare
Leading Inclusively, and Multi-Faith Network, among
students for the workforce. In FY22 we launched
Our education and engagement
others. In FY22, FedEx Logistics launched its first
the FedEx-HBCU Student Ambassador Program,
We foster ongoing employee engagement and business resource team, Women in Logistics, with"
FedEx_2023_ESG_Report.txt,"or students, and access to resources
inclusive working environment and help our people
that will help them prepare to enter the workforce
We include DEI-related questions in our FedEx
succeed. We strive to promote DEI and maintain
after college. Additionally, FedEx Ground
Services, FedEx Ground, and FedEx Freight
open dialogue across all levels of the company.
launched the College Pathways Career Expose
engagement surveys, allowing us to accurately
with seven HBCUs in February 2022. The College
We work to expand our team members’ DEI capture employee perspectives on DEI within the"
FedEx_2023_ESG_Report.txt,"rs.
FedEx 2023 ESG Report 31We work to recruit diverse candidates and Our story
develop a talent pipeline to build a workforce
Throughout FedEx, we encourage team members
reflective of the communities we serve. We work
to share their stories, celebrate their differences,
to improve the inclusivity of our recruitment
and foster collaboration. We provide team
process by offering materials in Spanish and
members with DEI-related resources, events,
English. FedEx Logistics hosts the FedEx Logistics
and employee stories through our enterprise-"
FedEx_2023_ESG_Report.txt,"x Logistics hosts the FedEx Logistics
and employee stories through our enterprise-
Academy, a program designed to introduce high
wide online platform, the DEI Depot. In FY22,
school students to a variety of career paths as
FedEx Logistics circulated communications for 15
well as provide interactive lessons on teamwork
significant cultural moments and FedEx Ground
and workplace culture. FedEx Freight expanded
launched the Story Depot to collect and share
“The Boardroom Experience” program, which
a variety of employee success stories. Across"
FedEx_2023_ESG_Report.txt,"for information on our
and Opportunity to support their commitment to advance AV technology to improve quality of life and
Supplier Diversity program.
economic opportunity.
FedEx 2023 ESG Report 3322Health and safety Safety committees in every FedEx Ground building
participate in monthly inspections and periodic
Our highest priority is the well-being, health, and reviews of safety performance.
safety of all our employees. Our Safety Above All
philosophy is the first and foremost value in every
Employee training and engagement"
FedEx_2023_ESG_Report.txt,"management systems (SMS) help if necessary, give stop work orders.
reduce work-related injuries and illnesses, and
our operating companies are responsible for
1,362
implementing policies and practices that adhere
to all applicable international standards. Our SMS
participants
Accountable Executive Team meets quarterly to
review our enterprise-wide safety performance.
As of the end of FY22, 1,362 participants We depend on proactive engagement with all Express Stay Sharp program, which encourages
The FedEx Express Safety Management System across the U.S. and Canada completed our employees to keep us working safely. Team employee safety engagement and awareness and"
FedEx_2023_ESG_Report.txt,"7% 61% Asia Pacific (APAC) 6% 7% 6%
Landfilled 110,677 173,647 238,032 Latin America and Caribbean (LAC) 5% 5% 4%
Non-hazardous waste[2] Canada 3% 3% 3%
Total non-hazardous waste 359,381 517,050 614,506 Middle East, Indian Subcontinent,
2% 1% 1%
and Africa (MEISA)
Sent to recyclers 250,260 345,543 378,548
Full-time employees: U.S. workforce 188,989 218,254 224,217
Percent sent to recyclers 70% 67% 62%
Part-time employees: U.S. workforce 165,209 166,075 169,601
Landfilled 109,572 171,506 235,958
Employee hiring and turnover"
FedEx_2023_ESG_Report.txt,"10,677 173,647 238,032 Latin America and Caribbean (LAC) 5% 5% 4%
Non-hazardous waste[2] Canada 3% 3% 3%
Total non-hazardous waste 359,381 517,050 614,506 Middle East, Indian Subcontinent,
2% 1% 1%
and Africa (MEISA)
Sent to recyclers 250,260 345,543 378,548
Full-time employees: U.S. workforce 188,989 218,254 224,217
Percent sent to recyclers 70% 67% 62%
Part-time employees: U.S. workforce 165,209 166,075 169,601
Landfilled 109,572 171,506 235,958
Employee hiring and turnover
Hazardous waste[3]
Employee hiring and turnover[1] FY20 FY21 FY22"
FedEx_2023_ESG_Report.txt,"872
Total new hires 303,906 366,973 558,290
Percent sent to recyclers 48% 24% 30%
New hire rate 71% 72% 107%
Landfilled 1,105 2,141 2,074
Male percent of new hires 65% 71% 61%
1W aste at many of our facilities is difficult to track because it is collected by haulers contracted by a landlord or local municipality, or
Female percent of new hires 35% 29% 39%
commingled with other tenants’ waste in shared facilities such as airports and retail malls, and as such has not been included in this data.
2 Non-hazardous waste data includes the solid waste (non-regulated/trash) and non-hazardous regulated waste categories that were Employee turnover data"
FedEx_2023_ESG_Report.txt,"hic (percent)
Injury rates
Hispanic 31% 47% 45%
Total lost time injury rate (per 200,000 hours worked)[2] 3.25 3.99 2.87
African American 29% 31% 31%
North America (U.S./Canada) 3.78 4.80 3.12
South Asian Indian 3% 8% 9%
Rest of the world (includes TNT Express) 2.05 1.86 2.11
Asian 4% 8% 9%
Male percent of lost time injuries[3] 64% 61% 65% Other/Not Disclosed[2] 33% 6% 6%
Female percent of lost time injuries[3] 36% 39% 35%
1Does not include suppliers evaluated by Sourcing teams outside the U.S.
Total number of employee fatalities (work-related)[4] 3 15 9"
FedEx_2023_ESG_Report.txt,"Cyber and Technology Oversight
our safety programs and political activities
Key links
Committee assesses the company’s cyber and
and expenditures.
technology-related risks and the mechanisms Risk management
Board of Directors
f
The Compensation and Human Resources for managing and mitigating these risks. Our Enterprise Risk Management (ERM)
Corporate governance guidelines
Committee oversees our diversity, equity, The committee is responsible for overseeing program provides a common framework to
and inclusion (DEI), culture, workforce business continuity and emergency ensure consistency when identifying, reporting, ESG | Investor relations webpage"
FedEx_2023_ESG_Report.txt,"s Key links
in the political process, direct and indirect foster free trade, address trade barriers, and provide strong financial returns, enhance long-term
Investor Relations webpage
political spending, and lobbying activities optimize the transportation system’s efficiency, stockholder value, and support the best interests of
and expenditures; (iii) contributions to trade sustainability, safety, and capacity. We encourage our employees consistent with our corporate values. Policy Perspectives
associations and other tax-exempt organizations policies related to aviation, workforce development, Policy on Political Contributions"
FedEx_2023_ESG_Report.txt,"2030. incorporates sustainable
technologies to conserve energy,
including motion-activated lights
and multiple water-storage tanks
to collect rainwater, reducing our
reliance on municipal water sources.
FedEx 2023 ESG Report 24O ur people
Delivering on our c ulture
Social governance structure In this section
Our focus on our people enables us to recruit and retain talented team members Social governance structure
who bring our mission to life. We enhance our business performance by Our culture
supporting a diverse and engaged workforce. Across our operating companies,"
FedEx_2023_ESG_Report.txt,"full- and part-time team members
Express and FedEx Logistics launched employee
and their eligible dependents receive
referral programs, and FedEx Freight instituted
competitive health benefits. In the U.S., we cover
30- and 45-day manager check-ins to ensure
approximately 70% of total eligible health and
new employees are engaged. These initiatives
disability costs at the plan level for 232,000
have been successful in helping us retain a skilled
participating employees as of January 2023. This
workforce. In FY22, our global turnover rates"
FedEx_2023_ESG_Report.txt,"rs Program for high-potential employees development goals.
align existing competencies to future capabilities grew region-wide. FedEx Express Europe
and skillsets to future-proof talent needs. Our launched free language courses, enabling over
7,000 participants to build their language skills.
FedEx 2023 ESG Report 29Diversity, equity, and Over the past year, we continued to roll out
programs to ensure our people are engaged
inclusion create opportunity
and can develop at FedEx. The FedEx Ground
workforce career track program, Purple Pathways,"
FedEx_2023_ESG_Report.txt,"rack program, Purple Pathways,
As a global business, we value the diversity of
directly targets our most diverse population,
perspectives, backgrounds, and experiences
frontline managers and package handlers, to
of our people and recognize DEI is essential to
support their career growth. FedEx Ground
our success and the communities we serve. DEI
won the American Transportation Association
fosters collaboration, enables us to recruit, retain, Our people
DEI Change Leader Award in 2022 for Purple
and develop a talented workforce, and underpins"
FedEx_2023_ESG_Report.txt,"bjective
People; Our Education and Engagement; Our Serve and support our communities,
to increase the number of team members with
Communities, Customers, and Suppliers; and Our customers, and suppliers
disabilities by 5%. FedEx is part of the Tent Coalition
Story. We use this framework to influence and
Our story
for Refugees in the U.S. and has set goals for hiring
inform our business strategy as we invest in our
refugees for roles with the company nationwide. Amplify the stories of our people,
workforce, culture, and communities."
FedEx_2023_ESG_Report.txt,"U.S., mainly through
Generations, Multi-Ethnic Leadership Community,
36% Racially or ethnically diverse 64% White our seven scholarship funds. We also support
Asian Network, Women Leading Change, LGBT &
endowed scholarships at eight HBCUs where we
Friends, U.S. Military Veterans, Growing Professionals,
are expanding opportunities for students through
Parents Working Together, EnABLE Network, Men
a $5 million multi-year contribution to prepare
Leading Inclusively, and Multi-Faith Network, among
students for the workforce. In FY22 we launched"
FedEx_2023_ESG_Report.txt,"nts for the workforce. In FY22 we launched
Our education and engagement
others. In FY22, FedEx Logistics launched its first
the FedEx-HBCU Student Ambassador Program,
We foster ongoing employee engagement and business resource team, Women in Logistics, with
which provides empowerment, engagement, and
provide educational opportunities to build an plans to launch additional resource groups next year.
education for students, and access to resources
inclusive working environment and help our people
that will help them prepare to enter the workforce"
FedEx_2023_ESG_Report.txt,"force
We include DEI-related questions in our FedEx
succeed. We strive to promote DEI and maintain
after college. Additionally, FedEx Ground
Services, FedEx Ground, and FedEx Freight
open dialogue across all levels of the company.
launched the College Pathways Career Expose
engagement surveys, allowing us to accurately
with seven HBCUs in February 2022. The College
We work to expand our team members’ DEI capture employee perspectives on DEI within the
Pathways program exposes students to career
knowledge through various learning opportunities. FedEx workforce. The results from these surveys"
FedEx_2023_ESG_Report.txt,"open dialogue regarding diversity and
studies and provides students insights on real
program for all our officers and directors. Through inclusion has improved since 2021. DEI metrics
career experiences.
this program, enabled by the FedEx Learning were added to FedEx Ground’s performance
Center, more than 87% of our FedEx Logistics management system to ensure intentional focus
and engagement on DEI for all team members.
FedEx 2023 ESG Report 31We work to recruit diverse candidates and Our story
develop a talent pipeline to build a workforce"
FedEx_2023_ESG_Report.txt,"tal headcount 499,718 508,650 518,249
Total waste generated 361,952 519,859 617,452 U.S. 71% 70% 76%
Sent to recyclers 251,275 346,211 379,420 Europe 12% 14% 10%
Percent sent to recyclers 69% 67% 61% Asia Pacific (APAC) 6% 7% 6%
Landfilled 110,677 173,647 238,032 Latin America and Caribbean (LAC) 5% 5% 4%
Non-hazardous waste[2] Canada 3% 3% 3%
Total non-hazardous waste 359,381 517,050 614,506 Middle East, Indian Subcontinent,
2% 1% 1%
and Africa (MEISA)
Sent to recyclers 250,260 345,543 378,548
Full-time employees: U.S. workforce 188,989 218,254 224,217"
FedEx_2023_ESG_Report.txt,"6%
Sent to recyclers 251,275 346,211 379,420 Europe 12% 14% 10%
Percent sent to recyclers 69% 67% 61% Asia Pacific (APAC) 6% 7% 6%
Landfilled 110,677 173,647 238,032 Latin America and Caribbean (LAC) 5% 5% 4%
Non-hazardous waste[2] Canada 3% 3% 3%
Total non-hazardous waste 359,381 517,050 614,506 Middle East, Indian Subcontinent,
2% 1% 1%
and Africa (MEISA)
Sent to recyclers 250,260 345,543 378,548
Full-time employees: U.S. workforce 188,989 218,254 224,217
Percent sent to recyclers 70% 67% 62%
Part-time employees: U.S. workforce 165,209 166,075 169,601"
FedEx_2023_ESG_Report.txt,"7 98 10,792
Total management employees 23,465 19,498 22,465
APAC 198 475 1 674
Male percent of management employees 75% 73% 73%
LAC 362 548 0 910
Female percent of management employees 25% 27% 27%
Canada 2,305 4,967 98 7,370
Total non-management employees 405,471 489,152 495,784
MEISA 11 19 0 30
Male percent of non-management employees 70% 70% 70%
Total 65,218 123,874 285 189,377
Female percent of non-management employees 30% 30% 30%
1Does not include TNT Express.
1Does not include TNT Express.
Global workforce generational diversity"
FedEx_2023_ESG_Report.txt,"3,465 19,498 22,465
APAC 198 475 1 674
Male percent of management employees 75% 73% 73%
LAC 362 548 0 910
Female percent of management employees 25% 27% 27%
Canada 2,305 4,967 98 7,370
Total non-management employees 405,471 489,152 495,784
MEISA 11 19 0 30
Male percent of non-management employees 70% 70% 70%
Total 65,218 123,874 285 189,377
Female percent of non-management employees 30% 30% 30%
1Does not include TNT Express.
1Does not include TNT Express.
Global workforce generational diversity
Global workforce generational diversity[1] FY20 FY21 FY22"
FedEx_2023_ESG_Report.txt,"1 489,152 495,784
MEISA 11 19 0 30
Male percent of non-management employees 70% 70% 70%
Total 65,218 123,874 285 189,377
Female percent of non-management employees 30% 30% 30%
1Does not include TNT Express.
1Does not include TNT Express.
Global workforce generational diversity
Global workforce generational diversity[1] FY20 FY21 FY22
Under 30 years of age 34% 34% 31%
30–50 years of age 42% 42% 43%
Over 50 years of age 24% 24% 26%
1Does not include TNT Express.
FedEx 2023 ESG Report 40Governance
U.S. workforce diversity Supply chain"
FedEx_2023_ESG_Report.txt,"e percent of non-management employees 70% 70% 70%
Total 65,218 123,874 285 189,377
Female percent of non-management employees 30% 30% 30%
1Does not include TNT Express.
1Does not include TNT Express.
Global workforce generational diversity
Global workforce generational diversity[1] FY20 FY21 FY22
Under 30 years of age 34% 34% 31%
30–50 years of age 42% 42% 43%
Over 50 years of age 24% 24% 26%
1Does not include TNT Express.
FedEx 2023 ESG Report 40Governance
U.S. workforce diversity Supply chain
U.S. workforce diversity FY20 FY21 FY22 Supply chain FY20 FY21 FY22"
FedEx_2024_ESG_Report.txt,"me injury means a nonfatal traumatic injury that causes any loss of time from work beyond the day or shift it occurred; or a
nonfatal nontraumatic illness/disease that causes disability at any time. Global lost time injury rate (LTIR) data is based on definitions from the U.S. Occupational
Safety and Health Administration (OSHA).
3 For percent male and percent female breakouts, FedEx Express Europe, FedEx Express Canada, and FedEx Express MEISA numbers are not included for FY21,
FY22, and FY23.
4 GRI definition: the death of a worker occurring in the current reporting period, arising from an occupational injury or disease sustained or contracted while in the"
FedEx_2024_ESG_Report.txt,"itating the flow of goods,
how we operate and is embedded within our business
services, and information that drives the global
strategy. We are strategically focused on optimizing
economy. While FedEx connects a vast majority of the
our network to enhance our ability to meet the evolving
world’s gross domestic product, we also contribute
needs of customers and ultimately build a stronger,
to economic growth through investments in facilities,
more intelligent, and more profitable enterprise that
employee wages, and purchases with suppliers across"
FedEx_2024_ESG_Report.txt,"alued
ƒ
Growing profitability to reinvest in
ƒ
Delivering excellence and value for our our team members and business
customers and shareholders
FedEx 2024 ESG Report 27Human resource incorporate an AI chatbot feature in the application
process to enhance our capabilities. We also employ
management automated hiring processes at FedEx Ground to
simplify applications for front-line candidates, and
Our success depends on the talent, dedication, and FedEx Express uses a mobile application to improve
well-being of our people—our greatest asset. Our the candidate and employee experience."
FedEx_2024_ESG_Report.txt,"rgeted
competitive wages, enhanced benefits, flexible scheduling,
communication channels, including social media
and career development programs. Our team members’
platforms, text messages, internships, and non-
feedback is integral to understanding engagement
traditional talent recruitment pathways. We also post
and our human resource management approach and
job opportunities outside our primary FedEx locations
strategy. We provide a range of avenues for engagement,
to broaden our talent pool.
including annual surveys, employee networks, and direct"
FedEx_2024_ESG_Report.txt,"ers’
platforms, text messages, internships, and non-
feedback is integral to understanding engagement
traditional talent recruitment pathways. We also post
and our human resource management approach and
job opportunities outside our primary FedEx locations
strategy. We provide a range of avenues for engagement,
to broaden our talent pool.
including annual surveys, employee networks, and direct
channels for feedback. These grant us deeper insights
In FY23, we conducted enterprise-wide recruiting
into employee concerns and expectations. Annually, we"
FedEx_2024_ESG_Report.txt,"petitive benefits, including healthcare,
provide dedicated paid sick and parental leave
wellness initiatives, paid sick leave, flexible paid time
to eligible full- and part-time employees.
off, and other benefits. To help ensure our benefits
and compensation packages remain competitive, we
Recognizing the importance of supporting the
routinely conduct peer benchmarking and internal
mental health of our team members, we offer
pay equity analyses.
24/7 confidential counseling services through our
Employee Assistance Program, which is accessible to"
FedEx_2024_ESG_Report.txt,"treamlined manager onboarding in
align with emerging trends, we adapt our learning
response to team member feedback. FedEx Office
frameworks to cover existing competencies and any
introduced a leadership learning hub, and FedEx
future capabilities we may need. Our suite of learning
Ground piloted a seven-month high-potential leader
and development opportunities is designed to enhance
development program to prepare leaders to move to
team member engagement, improve retention, and
the next level.
strengthen our employee value proposition."
FedEx_2024_ESG_Report.txt,"eam member feedback. FedEx Office
frameworks to cover existing competencies and any
introduced a leadership learning hub, and FedEx
future capabilities we may need. Our suite of learning
Ground piloted a seven-month high-potential leader
and development opportunities is designed to enhance
development program to prepare leaders to move to
team member engagement, improve retention, and
the next level.
strengthen our employee value proposition.
FedEx Services offered one-on-one executive coaching
All new employees complete our Core New Employee"
FedEx_2024_ESG_Report.txt,"ning 27 hours
Team members can access the FedEx Learning Ground package handlers to modernize their training their degree. FedEx Ground also offers discounted
Center, a vast library of nearly 16,000 online courses experience and ensure consistent, quality, and or debt-free college at several schools in the U.S.
that deliver an efficient and convenient learning compliant training. through the Education for Life program. of training completed per
experience. Leveraging a third-party learning tool
employee on average in FY23"
FedEx_2024_ESG_Report.txt,"Office conducts “Inclusive Leadership”
64% Male 71% White and small business growth
training, which is delivered to all leaders, including
store managers, annually. Managing directors and
executives also have the opportunity to join the
FedEx Services DEI Real Talk Series quarterly where
guest speakers discuss DEI-related topics such as
Global management gender diversity¹ U.S. management racial/ethnic diversity¹ empathy and intentional inclusion.
We encourage our team members to participate in
37% Racially or several business resource teams, employee networks,"
FedEx_2024_ESG_Report.txt,"91% graduate. DEI | FedEx Cares
hosted four College Expos and reached nearly
120 students. EEO-1 Reports
Compensation and Human Resources
Committee Charter
FedEx 2024 ESG Report 33FedEx Express also maintains mitigation tracking At FedEx Ground, the Leading with Safety program To reinforce skills learned in safety trainings and keep
Health and safety
and incident management systems and centralized provides managers with tools to model and support employees motivated to foster a Safety Above All
data collection processes to support ongoing safe behaviors for their teams, such as executing culture, we facilitate regular employee engagements"
FedEx_2024_ESG_Report.txt,"rovide feedback on our safety culture
investments, risk evaluation processes, recognition
identification and mitigation. Every FedEx Ground also increased focus on ergonomics by deploying through the bi-annual global Aviation Safety Culture
and awards, and training programs. At FedEx, we
building has a safety committee that conducts monthly an Ergonomic Risk Mitigation program and related Survey. We use responses to identify safety risks and
integrate safety into everything we do to protect our
site inspections and periodic safety performance training to reduce injury, enhance employee morale, opportunities for improvement, which inform action"
FedEx_2024_ESG_Report.txt,"rtunities for improvement, which inform action
workforce, business partners, and the communities
reviews. Additionally, Safety and Design Engineering and improve workplace efficiencies. To address plans. Additionally, to celebrate employees who
we serve. The Governance, Safety, and Public Policy
teams incorporate proactive risk identification and driver and community safety, the FedEx Office of model safe behaviors, FedEx Express maintains the
Committee of the FedEx Board of Directors regularly
mitigation through a safety by design approach. This Transportation Safety offers the FOCUS Safe Driving Stay Sharp employee recognition program."
FedEx_2024_ESG_Report.txt,"s decreases in vehicle accidents
using safety management systems (SMS) to reduce Safety teams help identify risks and proactive and reductions in distracted driving events. VEDR
work-related injuries and illnesses and promote solutions to mitigate hazards. technology enables team members and managers
regulatory and safety compliance. At the corporate to review near misses or incidents and discuss what
level, our SMS Accountable Executive team reviews went well and what could be improved. We are
Employee training and engagement"
FedEx_2024_ESG_Report.txt,"tegrate strategies across our operating companies Our service providers also agree to demonstrate
our team members practicing positive health and
to build a more efficient enterprise. safety qualifications for all personnel by providing
safety behaviors every day in all that they do. Across
a Qualification Certification to FedEx Ground from
our enterprise, we reinforce this culture through
Every SMS is tailored to address the varying hazards a qualified provider. The Qualification Certification
employee training and engagement, and all new"
FedEx_2024_ESG_Report.txt,"3% 4% Total management employees 19,498 22,465 23,687
Middle East, Indian Subcontinent, Male percent of management employees 73% 73% 73%
1% 1% 1%
and Africa (MEISA)
Female percent of management employees 27% 27% 27%
Full-time employees: U.S. workforce 218,254 224,217 219,284
Total non-management employees 489,152 495,784 498,928
Part-time employees: U.S. workforce 166,075 169,601 175,536
Male percent of non-management employees 70% 70% 69%
Female percent of non-management employees 30% 30% 31%
Employee hiring and turnover FY21 FY22 FY23"
FedEx_2024_ESG_Report.txt,"465 23,687
Middle East, Indian Subcontinent, Male percent of management employees 73% 73% 73%
1% 1% 1%
and Africa (MEISA)
Female percent of management employees 27% 27% 27%
Full-time employees: U.S. workforce 218,254 224,217 219,284
Total non-management employees 489,152 495,784 498,928
Part-time employees: U.S. workforce 166,075 169,601 175,536
Male percent of non-management employees 70% 70% 69%
Female percent of non-management employees 30% 30% 31%
Employee hiring and turnover FY21 FY22 FY23
1Total number includes male and female employee counts as well as where gender was not specified."
FedEx_2024_ESG_Report.txt,"rcent of non-management employees 30% 30% 31%
Employee hiring and turnover FY21 FY22 FY23
1Total number includes male and female employee counts as well as where gender was not specified.
New hire data
Total new hires 366,973 558,290 488,738
Global workforce generational diversity FY21 FY22 FY23
New hire rate 72% 107% 90%
Under 30 years of age 34% 31% 34%
Male percent of new hires 71% 61% 60%
30–50 years of age 42% 43% 38%
Female percent of new hires 29% 39% 39%
Over 50 years of age 24% 26% 28%
Employee turnover data"
FedEx_2024_ESG_Report.txt,"% 36.0% 36.7%
Europe 3,303 7,777 133 11,213
APAC 217 450 0 667 Global safety data1 FY21 FY22 FY23
LAC 608 598 0 1,206 Injury rates
Canada 2,736 7,297 89 10,122 Total lost time injury rate (per 200,000 hours worked)2 3.99 2.87 3.93
MEISA 9 19 0 28 North America (U.S./Canada) 4.80 3.12 4.58
Total 68,612 129,500 660 198,772 Rest of the world 1.86 2.11 2.05
Male percent of lost time injuries3 61% 65% 60%
Team member career development FY21 FY22 FY23 Female percent of lost time injuries5 39% 35% 40%
Total average training hours 27.84 38.29 26.97 Total number of employee fatalities (work-related)4 15 9 5"
FedEx_2024_ESG_Report.txt,"ty, and Public Policy Committees
Committee actively oversees our Corporate have reviewed this ESG report and discussed its
Social Responsibility (CSR) goals, strategies, contents with management.
and programs, which includes managing our
sustainability- and climate-related risks. This
committee is also responsible for monitoring
our safety programs and political activities. 36%
ƒ
The Compensation and Human Resources
Committee oversees diversity, equity, and inclusion of Board members are female
(DEI), culture, workforce demographics, enterprise"
FedEx_2024_ESG_Report.txt,"ith various government and
Affairs department advocates for public policies that industry organizations to lobby for effective climate
foster free trade, address trade barriers, and enhance policy. We strive to engage in a productive manner, foster
the efficiency, sustainability, safety, and capacity innovation, and improve the transportation sector’s
of the transportation system. Around the world, environmental, social, and business performance.
the team champions policies related to aviation,
workforce development, information security,"
FedEx_2024_ESG_Report.txt,"allenges along our journey and
with the larger transition to a low-carbon economy. Carbon neutral operations goal announcement
Yale Center for Natural Carbon Capture fact sheet
To prepare for the transition to cleaner energy, we
work to identify fair and equitable approaches that Sustainability bond framework
benefit our team members and the communities
where we operate. We communicate with our
employees on the transition and we work to equitably
support our team members through a comprehensive
benefits package and prepare our workforce with the"
FedEx_2024_ESG_Report.txt,"of our labor practices
become professional tractor-trailer drivers, and 75 drivers
to assess conformance with regulatory requirements.
were employed from this program in FY23. Similarly, FedEx
Express in the U.K. and FedEx Freight host apprentice
Talent acquisition and engagement
programs which provide participants with hands-on
experience to maintain and repair our vehicle fleet. We
We shape our recruitment practices to build a highly
also incentivize transfers where appropriate to load-level
skilled workforce that mirrors the diverse communities"
FedEx_2024_ESG_Report.txt,"unity
through this program. Additionally, FedEx Express has
a dedicated recruitment plan for U.S. military veterans
As a company operating in over 220 countries transitioning to the private sector.
and territories, we understand the strengths that
Our people
come from fostering a global culture of DEI. It is a Our relationships and initiatives have enabled us to
foundational value that fuels collaboration, enables us reach a more diverse pool of candidates and increase Recruit, retain, develop,
to attract, retain, and nurture a skilled workforce, and our diverse hiring. For example, at FedEx Express and provide advancement"
FedEx_2024_ESG_Report.txt,"nities to align Pathways, a career path and mentorship program
customers, and suppliers
and integrate strategies. specifically designed to empower our front-line
managers and package handlers, and to facilitate Serve and support our communities,
their career progression. Since its inception, customers, and suppliers
Our people
we proudly report that more than 42,000 team
Our story
members have enrolled in the program.
We recognize the importance of recruiting,
Amplify the stories of our people,
developing, and retaining a diverse workforce."
FedEx_2024_ESG_Report.txt,". Military Veterans, Growing Professionals,
Parents Working Together, EnABLE Network, Men
Leading Inclusivity, and the Multi-Faith Network.
57% Racially or
30% Female
ethnically diverse
As DEI plays a pivotal role in the team member
69% Male
42% White experience, we integrate DEI-related questions into
<1% Unknown/
our engagement surveys for FedEx Express, FedEx
Unspecified 1% Unknown/
Unspecified Ground, FedEx Freight, and FedEx Services, which
allows us to gauge a range of perspectives on DEI
within our workforce."
FedEx_2024_ESG_Report.txt,"orations, and development programs. In ƒ Our story
FedEx also supports the American Indian College
Pathways program, which educates students about
FY23, we collaborated with numerous nonprofit
Fund, UNCF, and the Thurgood Marshall College Fund.
the various roles within FedEx Ground and equips At FedEx, we foster a culture where team members
organizations to help prepare diverse talent for the
them with essential skills in networking, interviewing, can share their unique stories, celebrate their
workforce, by supporting scholarships and leadership"
FedEx_2024_ESG_Report.txt,"dEx also supports the American Indian College
Pathways program, which educates students about
FY23, we collaborated with numerous nonprofit
Fund, UNCF, and the Thurgood Marshall College Fund.
the various roles within FedEx Ground and equips At FedEx, we foster a culture where team members
organizations to help prepare diverse talent for the
them with essential skills in networking, interviewing, can share their unique stories, celebrate their
workforce, by supporting scholarships and leadership
FedEx invests in workforce preparedness opportunities"
FedEx_2024_ESG_Report.txt,"urial development to resources, information, and best practices to
scholarships for Hispanic students (many of whom
Provides access to resources and equips students help women and girls connect to opportunity and effectively champion DEI within their teams. We use
are first generation) as well as Bilingual College
with the confidence they need to enter the economic mobility. FedEx helped co-create and www.fedexcares.com to highlight our long-standing
101 sessions that help families navigate the
professional workforce upon graduation. launch the FedEx Career Hub, an online tool to help history of supporting diverse and inclusive nonprofit"
FedEx_2024_ESG_Report.txt,"ed focus on ergonomics by deploying through the bi-annual global Aviation Safety Culture
and awards, and training programs. At FedEx, we
building has a safety committee that conducts monthly an Ergonomic Risk Mitigation program and related Survey. We use responses to identify safety risks and
integrate safety into everything we do to protect our
site inspections and periodic safety performance training to reduce injury, enhance employee morale, opportunities for improvement, which inform action
workforce, business partners, and the communities"
FedEx_2024_ESG_Report.txt,". 70% 76% 76% Total male employees 356,558 361,407 361,994
Europe 14% 10% 9% Male percent of headcount 70% 70% 69%
Asia Pacific (APAC) 7% 6% 6% Total female employees 150,656 155,851 159,046
Latin America and Caribbean (LAC) 5% 4% 4% Female percent of headcount 30% 30% 31%
Canada 3% 3% 4% Total management employees 19,498 22,465 23,687
Middle East, Indian Subcontinent, Male percent of management employees 73% 73% 73%
1% 1% 1%
and Africa (MEISA)
Female percent of management employees 27% 27% 27%
Full-time employees: U.S. workforce 218,254 224,217 219,284"
FedEx_2024_ESG_Report.txt,"Asia Pacific (APAC) 7% 6% 6% Total female employees 150,656 155,851 159,046
Latin America and Caribbean (LAC) 5% 4% 4% Female percent of headcount 30% 30% 31%
Canada 3% 3% 4% Total management employees 19,498 22,465 23,687
Middle East, Indian Subcontinent, Male percent of management employees 73% 73% 73%
1% 1% 1%
and Africa (MEISA)
Female percent of management employees 27% 27% 27%
Full-time employees: U.S. workforce 218,254 224,217 219,284
Total non-management employees 489,152 495,784 498,928
Part-time employees: U.S. workforce 166,075 169,601 175,536"
FedEx_2024_ESG_Report.txt,"mployees 27% 27% 27%
Full-time employees: U.S. workforce 218,254 224,217 219,284
Total non-management employees 489,152 495,784 498,928
Part-time employees: U.S. workforce 166,075 169,601 175,536
Male percent of non-management employees 70% 70% 69%
Female percent of non-management employees 30% 30% 31%
Employee hiring and turnover FY21 FY22 FY23
1Total number includes male and female employee counts as well as where gender was not specified.
New hire data
Total new hires 366,973 558,290 488,738
Global workforce generational diversity FY21 FY22 FY23"
FedEx_2024_ESG_Report.txt,"der was not specified.
New hire data
Total new hires 366,973 558,290 488,738
Global workforce generational diversity FY21 FY22 FY23
New hire rate 72% 107% 90%
Under 30 years of age 34% 31% 34%
Male percent of new hires 71% 61% 60%
30–50 years of age 42% 43% 38%
Female percent of new hires 29% 39% 39%
Over 50 years of age 24% 26% 28%
Employee turnover data
Total turnover 290,777 530,932 520,036
Turnover rate 57% 102% 99%
Male percent of turnover 63% 61% 61%
Female percent of turnover 37% 39% 39%
FedEx 2024 ESG Report 41Global FY23 headcount by gender and region Female Male Not specified Total U.S. workforce diversity FY21 FY22 FY23"
FINAL-Article-2022-2023-Sustainability-Report-and-Index.txt,"reshing its low-carbon transition plan to support its 2030 intensity target goals for
energy, Scope 1 and Scope 2 GHG emissions, waste and water.
• Advancing its Scope 3 inventory efforts in anticipation of disclosing future company-wide
metrics.
• Continuing its engagement with ERM CVS to include a limited assurance of certain of its
calendar year 2022 environmental sustainability metrics and associated 2023 CDP Climate
Change and Water Security disclosures.
Investing in People and Communities
• Volunteering nearly 123,000 employee hours to benefit local communities."
FINAL-Article-2022-2023-Sustainability-Report-and-Index.txt,"y-wide
metrics.
• Continuing its engagement with ERM CVS to include a limited assurance of certain of its
calendar year 2022 environmental sustainability metrics and associated 2023 CDP Climate
Change and Water Security disclosures.
Investing in People and Communities
• Volunteering nearly 123,000 employee hours to benefit local communities.
• Conducting a culture survey of its workforce and optimizing its talent management and
development strategies to support the integration of M&M employees.
• Inviting 4,500 new M&M team members to initiate local chapters of Employee Resource"
FINAL-Article-2022-2023-Sustainability-Report-and-Index.txt,"goals for
energy, Scope 1 and Scope 2 GHG emissions, waste and water.
• Advancing its Scope 3 inventory efforts in anticipation of disclosing future company-wide
metrics.
• Continuing its engagement with ERM CVS to include a limited assurance of certain of its
calendar year 2022 environmental sustainability metrics and associated 2023 CDP Climate
Change and Water Security disclosures.
Investing in People and Communities
• Volunteering nearly 123,000 employee hours to benefit local communities.
• Conducting a culture survey of its workforce and optimizing its talent management and"
FirstSolar_Sustainability-Report_2022.txt,"200,000 hours)
3.00 Glass Product
MFG Industry
2.50
Standard RIR
2.7
2.00
1.50
1.00
0.69
0.51 0.46 0.52
0.50
0.00
2018 2019 2020 2021
First Solar Sustainability Report 2022 46Social Responsibility
All First Solar associates receive legally required health and safety training
as well as routine refreshers on health and safety topics pertinent to their
job requirements. First Solar requires all contractors to work under our
safety policies, programs and procedures. 100% of First Solar’s workforce
and management team are represented by formal joint management-worker"
FirstSolar_Sustainability-Report_2022.txt,"tional
Waste metrics
Environmental 307-01 Non-compliance with environmental Environmental metrics Required
Compliance laws and regulations
Supplier 308-01 New suppliers that were screened Supply Chain Overview Optional
Environmental using environmental criteria
Assessment
Supplier 308-02 Negative environmental impacts in Supply Chain Overview Optional
Environmental the supply chain and actions taken
Assessment
Occupational 403-01 Workers representation in formal Occupational Health and Optional
Health and joint management–worker health and Safety"
FirstSolar_Sustainability-Report_2022.txt,"At First Solar, we take a 2 Alliance (RBA) Code of Conduct
and require their suppliers to do
human rights concerns were
comprehensive approach the same. Suppliers must also
reported in 2021. The Ethics
represent, warrant and covenant
to responsible sourcing-
Hotline ensures that serious
that they will not use child, slave,
concerns are heard and are from our policy, supplier
prisoner or any other form of forced
acted upon immediately. Any
contracts, screening, or involuntary labor, or engage in
associate, employee of First"
FirstSolar_Sustainability-Report_2022.txt,"her form of forced or involuntary labor, or engage in abusive
employment in the supply of goods or provision of services.
Our Chief Compliance Officer manages First Solar’s Global Compliance
Organization which oversees our ethics and compliance program. The goal of
this organization is to implement policies, processes, training, monitoring and
general awareness programs to promote ethics and compliance with applicable
legal and regulatory standards. Subject to the requirements of local law, and
after due diligence and full and fair investigation, any employee found to have"
FirstSolar_Sustainability-Report_2022.txt,"KS IN RENEWABLES NETWORK (BNR)
Launched in 2020, BnR is dedicated to promoting the development of Blacks,
African Americans and other minorities as future renewable energy leaders
through attracting talent, professional development, associate retention,
and community involvement. In 2021, BnR participated in First Solar Talent
Acquisition’s University Recruiting Campaign at Arizona State University,
Howard University and University of Toledo's National Society of Black
Engineers (NSBE) chapter.
RENEWABLE EMPLOYEE RESOURCE GROUP"
FirstSolar_Sustainability-Report_2022.txt,"nched in 2020, BnR is dedicated to promoting the development of Blacks,
African Americans and other minorities as future renewable energy leaders
through attracting talent, professional development, associate retention,
and community involvement. In 2021, BnR participated in First Solar Talent
Acquisition’s University Recruiting Campaign at Arizona State University,
Howard University and University of Toledo's National Society of Black
Engineers (NSBE) chapter.
RENEWABLE EMPLOYEE RESOURCE GROUP
RenewABLE is a voluntary, employee-led group with a broad representation of"
FirstSolar_Sustainability-Report_2022.txt,"POLICIES: First Solar is committed to helping
associates face the demands of balancing work, family and life-related issues
by offering a number of possible alternative work options. First Solar provides
a hybrid virtual working model called FLEX. Through First Solar's FLEX
program, associates may work on premises, at home or both depending on
current circumstances and the need of the business. First Solar’s alternative
work schedules enable women to work part-time while transitioning back into
the workforce. First Solar also offers four-week paid parental leave to all U.S."
FirstSolar_Sustainability-Report_2022.txt,"o dress, and look the way I want to look,
and they accept me. It’s not just my team
that accepts me, it’s all of First Solar that
accepts me and it’s amazing
Kelly S.
IT Technician II
First Solar Sustainability Report 2022 43By the Numbers
First Solar Sustainability Report 2022 44
).S.U(
yticinhtE
dna
ecaR
Race and Ethnicity (U.S.)
Native Hawaiian or Pacific Islander
American Indian or Alaskan Native
Two or more races
Hispanic or Latino
Black or African American
Asian
White
raloS
tsriF
ta
nemoW
Global Workforce by Age Associates with Disabilities (U.S.)"
FirstSolar_Sustainability-Report_2022.txt,"team
that accepts me, it’s all of First Solar that
accepts me and it’s amazing
Kelly S.
IT Technician II
First Solar Sustainability Report 2022 43By the Numbers
First Solar Sustainability Report 2022 44
).S.U(
yticinhtE
dna
ecaR
Race and Ethnicity (U.S.)
Native Hawaiian or Pacific Islander
American Indian or Alaskan Native
Two or more races
Hispanic or Latino
Black or African American
Asian
White
raloS
tsriF
ta
nemoW
Global Workforce by Age Associates with Disabilities (U.S.)
9% 26%
Over 50
63%
Veterans in Workforce (U.S.)"
FirstSolar_Sustainability-Report_2022.txt,"y the Numbers
First Solar Sustainability Report 2022 44
).S.U(
yticinhtE
dna
ecaR
Race and Ethnicity (U.S.)
Native Hawaiian or Pacific Islander
American Indian or Alaskan Native
Two or more races
Hispanic or Latino
Black or African American
Asian
White
raloS
tsriF
ta
nemoW
Global Workforce by Age Associates with Disabilities (U.S.)
9% 26%
Over 50
63%
Veterans in Workforce (U.S.)
Between 30-50
13%
28%
Under 30
ecrofkroW
Social Responsibility
6.6% 6.7%
1.2% 7.8%
0.6% 77%
0.1%
19%
23% 25%
Women in
Workforce Women in Management Women on the Board"
FirstSolar_Sustainability-Report_2022.txt,"ce Women in Management Women on the Board
26%
Women
in U.S. WorkforceSocial Responsibility
EEO-1 Data (U.S. Data Only)
As part of our commitment to increasing transparency around diversity and
inclusion at First Solar, we are publicly disclosing our Employer Information
Report (EEO-1) data for the first time. The EEO-1 report is submitted to the
Equal Employment Opportunity Commission on an annual basis. Although the
EEO-1 data is solely U.S.-focused, our diversity and inclusion initiatives are
global. The following table depicts First Solar’s U.S workforce demographics"
FirstSolar_Sustainability-Report_2022.txt,"nity to proactively identify and reduce risk.
Recordable Injury Rate (per 200,000 hours)
3.00 Glass Product
MFG Industry
2.50
Standard RIR
2.7
2.00
1.50
1.00
0.69
0.51 0.46 0.52
0.50
0.00
2018 2019 2020 2021
First Solar Sustainability Report 2022 46Social Responsibility
All First Solar associates receive legally required health and safety training
as well as routine refreshers on health and safety topics pertinent to their
job requirements. First Solar requires all contractors to work under our
safety policies, programs and procedures. 100% of First Solar’s workforce"
FirstSolar_Sustainability-Report_2022.txt,"mber of Associates 5,111 4,833 Global 102-7
First Solar Global Recordable Injury 0.46 0.52 Global 403-9 11.2.1
Rate (per 200,000 hours)
First Solar Manufacturing Recordable 0.48 0.56 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0 0.15 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 12,917,560 10,849,505 Global 403-9
% Male Workforce 80% 81% Global 405-1"
FirstSolar_Sustainability-Report_2022.txt,"102-7
First Solar Global Recordable Injury 0.46 0.52 Global 403-9 11.2.1
Rate (per 200,000 hours)
First Solar Manufacturing Recordable 0.48 0.56 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0 0.15 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 12,917,560 10,849,505 Global 403-9
% Male Workforce 80% 81% Global 405-1
% Female Workforce 19% 19% Global 405-1"
FirstSolar_Sustainability-Report_2022.txt,"ry 0.46 0.52 Global 403-9 11.2.1
Rate (per 200,000 hours)
First Solar Manufacturing Recordable 0.48 0.56 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0 0.15 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 12,917,560 10,849,505 Global 403-9
% Male Workforce 80% 81% Global 405-1
% Female Workforce 19% 19% Global 405-1
% Non-Disclosed Gender Workforce 1% 0% Global 405-1"
FirstSolar_Sustainability-Report_2022.txt,",000 hours)
First Solar Global Lost Time Injury 0 0.15 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 12,917,560 10,849,505 Global 403-9
% Male Workforce 80% 81% Global 405-1
% Female Workforce 19% 19% Global 405-1
% Non-Disclosed Gender Workforce 1% 0% Global 405-1
% Male Management 80% 77% Global 405-1
% Female Management 19% 23% Global 405-1
% Non-Disclosed Gender Workforce 1% 0% Global 405-1"
FirstSolar_Sustainability-Report_2022.txt,"Gender Workforce 1% 0% Global 405-1
New Hires by Gender (% Male) 77% 81% Global 401-1
New Hires by Gender (% Female) 22% 17% Global 401-1
New Hires by Gender 1% 2% Global 401-1
(% Non-Disclosed)
Associate Turnover Rate by Gender 26% 18% Global 401-1
(% Male)
Associate Turnover Rate by Gender 5% 6% Global 401-1
(% Female)
ISO 14001 Certification of Mfg. % 100% 100% Global --
ISO 45001 Certification of Mfg. % 100% 100% Global --
PV panel recycling program in place Yes Yes Global -- 11.2.2
Notes:
– Associate Turnover Rate is calculated as a percent of the total workforce as of December 31 of the previous reporting year. Data includes voluntary and"
FirstSolar_Sustainability-Report_2023.txt,"First Solar Sustainability Report 2023 38Responsible Supply Chain Management
Summary of First Solar RBA VAP Audit Findings
The single finding at our manufacturing facility in Vietnam related to subsidies not being paid
correctly. As part of our corrective action plan, we promptly adjusted the subsidies and established
a regulatory monitoring tool to address the root cause.
Supplier management system/policy
Working hours
Terms of employment in native language
Wages and benefits
Holding passports
Worker-paid recruitment fees"
FirstSolar_Sustainability-Report_2023.txt,"s
The single finding at our manufacturing facility in Vietnam related to subsidies not being paid
correctly. As part of our corrective action plan, we promptly adjusted the subsidies and established
a regulatory monitoring tool to address the root cause.
Supplier management system/policy
Working hours
Terms of employment in native language
Wages and benefits
Holding passports
Worker-paid recruitment fees
0 1 2 3 4
Malaysia Vietnam
Of the eight findings at our manufacturing facility in Malaysia:
• Five findings (three priority and two major) including worker-paid recruitment fees and unlawful"
FirstSolar_Sustainability-Report_2023.txt,"urs)
4.00
Glass Product
MFG Industry
3.50
Standard RIR
3.00 3.5
2.50
2.00
1.50
1.00
0.69
0.52
0.46 0.46
0.50
0.00
2019 2020 2021 2022
First Solar Sustainability Report 2023 54Social Responsibility
All First Solar associates receive legally required health and safety training
as well as routine refreshers on health and safety topics pertinent to their
job requirements. First Solar requires all contractors to work under our
safety policies, programs and procedures. 100% of First Solar’s workforce
and management team are represented by formal joint management-worker"
FirstSolar_Sustainability-Report_2023.txt,"having an open drum of hazardous
regulations waste. The issue was fixed immediately by
putting a cap on the drum.
Supplier 308-01 New suppliers that Supply Chain Overview Optional
Environmental were screened using
Assessment environmental criteria
Supplier 308-02 Negative environmental Supply Chain Overview Optional
Environmental impacts in the supply
Assessment chain and actions taken
Occupational 403-01 Workers representation Occupational Health and Safety Optional
Health and in formal joint
Safety management–worker"
FirstSolar_Sustainability-Report_2023.txt,"or any other form of forced or involuntary
labor, or engage in abusive employment in the supply of goods or provision of services.
Our Chief Compliance Officer manages First Solar’s Global Compliance Organization which
oversees our ethics and compliance program. The goal of this organization is to implement
policies, processes, training, monitoring and general awareness programs to promote ethics and
compliance with applicable legal and regulatory standards. Subject to the requirements of local
law, and after due diligence and full and fair investigation, any employee found to have directly"
FirstSolar_Sustainability-Report_2023.txt,"pated in the Women in
Cleantech & Sustainability Talks, launched a mentorship pilot, engaged with
local universities and participated in career fairs, and enhanced women’s
professional and personal development through inspiring discussions and
webinars with thought leaders from across the company, including the
company’s female Board members.
First Solar GLOW hosted over 40 graduate and undergraduate students from Ohio-based Universities’
Women in Tech and Women in Business Leadership Chapters.
RenewABLE Employee Resource Group: RenewABLE is a voluntary, employee-"
FirstSolar_Sustainability-Report_2023.txt,"al leave. First Solar is committed to helping
associates face the demands of balancing work, family and life-related issues
by offering a number of possible alternative work options. First Solar provides
a hybrid virtual working model called FLEX. Through First Solar's FLEX
program, associates may work on premises, at home or both depending on
current circumstances and the need of the business. First Solar’s alternative
work schedules enable women to work part-time while transitioning back into
the workforce. First Solar also offers four-week paid parental leave to all U.S."
FirstSolar_Sustainability-Report_2023.txt,"oactively identify and reduce risk.
Recordable Injury Rate (per 200,000 hours)
4.00
Glass Product
MFG Industry
3.50
Standard RIR
3.00 3.5
2.50
2.00
1.50
1.00
0.69
0.52
0.46 0.46
0.50
0.00
2019 2020 2021 2022
First Solar Sustainability Report 2023 54Social Responsibility
All First Solar associates receive legally required health and safety training
as well as routine refreshers on health and safety topics pertinent to their
job requirements. First Solar requires all contractors to work under our
safety policies, programs and procedures. 100% of First Solar’s workforce"
FirstSolar_Sustainability-Report_2023.txt,"n and responsible consumption
Corporate Giving Initiatives
SDG NGO/PARTNER YEAR
Black Girls Do Engineer Corporation 2022
$10,000 grant to support the Carbon Footprint Reduction program, which allows girls to develop
innovative solutions to everyday challenges the environment is facing. Nine program high schools
participated in the Carbon Footprint Reduction Project Symposium held in Houston, Texas. The top
three presentations received a college scholarship.
NGO/PARTNER YEAR
Lott Industries 2022
$15,000 grant to support a Styrofoam recycling workforce development program in Toledo, Ohio."
FirstSolar_Sustainability-Report_2023.txt,"es 4,833 5,532 Global 102-7
First Solar Global Work-Related 0.52 0.46 Global 403-9 11.2.1
Recordable Injury Rate
(per 200,000 hours)
First Solar Manufacturing Recordable 0.56 0.45 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0.15 0.14 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 10,849,505 11,633,177 Global 403-9
% Male Workforce 81% 79% Global 405-1"
FirstSolar_Sustainability-Report_2023.txt,"r Global Work-Related 0.52 0.46 Global 403-9 11.2.1
Recordable Injury Rate
(per 200,000 hours)
First Solar Manufacturing Recordable 0.56 0.45 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0.15 0.14 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 10,849,505 11,633,177 Global 403-9
% Male Workforce 81% 79% Global 405-1
% Female Workforce 19% 21% Global 405-1"
FirstSolar_Sustainability-Report_2023.txt,"ecordable 0.56 0.45 Global
Injury Rate (per 200,000 hours)
First Solar Global Lost Time Injury 0.15 0.14 Global 403-9
Rate (per 200,000 hours)
Number and Rate of Work-Related 0 0 Global 403-9 11.2.1
Fatalities
Number and Rate of High- 0 0 Global 403-9
Consequence Work-Related Injuries
Total hours worked 10,849,505 11,633,177 Global 403-9
% Male Workforce 81% 79% Global 405-1
% Female Workforce 19% 21% Global 405-1
% Male Management* 77% 73% Global 405-1
% Female Management* 23% 27% Global 405-1
% Women in US Workforce 26% 27% US 405-1"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"pg. 53
not provided to temporary or part-time employees
401-3 Parental leave pg. 53
GRI 403: Occupational Health and Safety 2018 (Management's Criteria)
Disclosure Location Requirement(s) Omitted Reason Explanation
403-1 Occupational health and safety management
pg. 04-05, 39, 50-51
system
403-2 Hazard identification, risk assessment and
pg. 04-05, 39, 50-51
incident investigation
This information is not reported at
403-3 Occupational health services Information unavailable/incomplete
this time
403-4 Worker participation, consultation and"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"nd Safety 2018 (Management's Criteria)
Disclosure Location Requirement(s) Omitted Reason Explanation
403-1 Occupational health and safety management
pg. 04-05, 39, 50-51
system
403-2 Hazard identification, risk assessment and
pg. 04-05, 39, 50-51
incident investigation
This information is not reported at
403-3 Occupational health services Information unavailable/incomplete
this time
403-4 Worker participation, consultation and
pg. 04-05, 39, 50-51
communication on occupational health and safety
403-5 Worker training on occupational health"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"tted Reason Explanation
403-1 Occupational health and safety management
pg. 04-05, 39, 50-51
system
403-2 Hazard identification, risk assessment and
pg. 04-05, 39, 50-51
incident investigation
This information is not reported at
403-3 Occupational health services Information unavailable/incomplete
this time
403-4 Worker participation, consultation and
pg. 04-05, 39, 50-51
communication on occupational health and safety
403-5 Worker training on occupational health
pg. 04-05, 39, 50-51
and safety
403-6 Promotion of worker health pg. 04-05, 39, 50-51"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"reliable production an even − We invested in our Plant Health business,
several years, a testament to the passion and
greater challenge. In 2023, the planet experienced including the expansion of our biological
commitment of our people. I invite you to explore
its hottest year on record and the impacts on facilities and greenhouses at the FMC European
the stories in this report to learn more about how
agricultural productivity sent commodity prices Innovation Center in Denmark. This investment
employee-driven sustainability efforts are contributing"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"e depend on to manufacture our products. Environmental
sustainability is embedded in our operations and culture. FMC’s global Environmental Sustainability Workgroup is
a good example of how we integrate business and sustainability. The Workgroup was established in 2022 to drive
improvements in emissions, energy, water and waste. It is led by employees responsible for managing the company’s
energy portfolio, maintaining equipment, improving production processes, sourcing materials and optimizing
packaging, logistics and fleet. Across the company, employee-driven sustainability efforts are contributing to our"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ier engagement • Emerging technologies
• Logistics route optimization and mode switch • Direct chemical energy initiatives
• Suppliers' net-zero
-25%
of base year
-42%
of base year
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Scopes 1 & 2 Scope 3 Scopes 1 & 2 Net-Zero Threshold Scope 3 Net-Zero Threshold12 2023 SUSTAINABILITY REPORT Base Year (2021) Scope 3 GHG Emissions 1% 1%
by Category 0% 6%
0%
Purchased Goods and Services Business Travel 3%
Category 1 Category 6
11%
Capital Goods Employee Commuting"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ies Upstream Leased Assets
Addressing Scope 3 1%
Category 3 Category 8
Upstream Transportation and Distribution Downstream Transportation and Distribution
Emissions
Category 4 Category 9
Waste Generated in Operations End Life Treatment of Sold Products
Category 5 Category 12
Scope 3 emissions are all indirect emissions
from sources not owned or controlled by FMC.
They include leased assets, purchased goods
We are also transitioning to activity-based sustainability ratings and a leading supplier
and services, and business travel and employee"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ent of the many people
who directly and indirectly touch our business. We strive to foster deeper and more productive relationships with
our customers, suppliers, farming communities and neighbors around the world.FROM THE GROUND UP 25
Diversity, Equity to supporting women farmers as well as These organizations promote awareness and
Black, minority and indigenous farmers understanding of different types of diversity,
& Inclusion
around the world. strengthen allyship and foster an environment of
respect and belonging. Employee engagement in"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"munity.
able to harness the creativity, curiosity and
the right organizational structure, policies
critical thinking that fuels innovation. Our 2023
and processes to support it. It's why DEI
Inclusion Month Campaign – Unite! We Do Better
governance continues to be a key area of
Together – underscored this important aspect
focus for our teams.
of our company’s culture with programming and
resources that demonstrate how diversity drives
our business.
Furthermore, we continue to build a culture of
inclusion where every employee feels a sense of"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"overnance continues to be a key area of
Together – underscored this important aspect
focus for our teams.
of our company’s culture with programming and
resources that demonstrate how diversity drives
our business.
Furthermore, we continue to build a culture of
inclusion where every employee feels a sense of
We operate in a complex global environment
belonging and has equal opportunity to succeed.
with a wide array of stakeholders. A workforce
that reflects this rich diversity allows us to build
EMPLOYEE ENGAGEMENT"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"r business.
Furthermore, we continue to build a culture of
inclusion where every employee feels a sense of
We operate in a complex global environment
belonging and has equal opportunity to succeed.
with a wide array of stakeholders. A workforce
that reflects this rich diversity allows us to build
EMPLOYEE ENGAGEMENT
relationships and collaborate more effectively
across our value chain. Our commitment to
We have made inclusivity a cornerstone of
diversity, equity and inclusion (DEI) also extends
FMC’s culture through our many employee"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"tunity to succeed.
with a wide array of stakeholders. A workforce
that reflects this rich diversity allows us to build
EMPLOYEE ENGAGEMENT
relationships and collaborate more effectively
across our value chain. Our commitment to
We have made inclusivity a cornerstone of
diversity, equity and inclusion (DEI) also extends
FMC’s culture through our many employee
to our engagement with farming communities.
resource groups (ERGs) and Inclusion Councils.
FMC supports programs and initiatives dedicated
Employee Resource Groups"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"dation’s CEI is the nation’s foremost As a young person, I stood out amongst
benchmarking survey and report measuring my peers. I loved to wear baggy pants and
corporate policies and practices related to t-shirts, skateboard, and play hockey and
LGBTQ+ workplace equality. This year’s CEI basketball. In high school, I was the only
score recognizes our enhanced policies and student who openly identified as LGBTQ+.
procedures and efforts to measure LGBTQ+ I faced some stigma and didn’t have access
identity and employee experience. to an LGBTQ+ community or supportive"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"I entered the workforce, it
and their families, from family formation was a challenge to find gender affirming
services to gender-affirming care. We also spaces. Early in my career, I covered much
“At FMC, we proudly support LGBTQ+ developed Gender Identity, Expression and of my identity because I didn’t know if
employees and strive to be a workplace Transition Guidelines as well as a new training I would be accepted as a gender non-
curriculum to educate people managers, HR conforming person.
where every employee feels safe, valued"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"for. That is what the environment. Students were drawn from
others did for me and still do today. Philadelphia magnet schools, W.B. Saul High
School of Agricultural Sciences and Lankenau
One of my mentors taught me to build meaningful
Environmental Science High School.
relationships in every situation – it’s not the
number that's important, but the quality. It’s Participants were provided case studies and
okay to come back from a conference with only paired with advisors from FMC to develop and
one significant contact that you can have a long present solutions to a selection of FMC employee"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"le Care Management System requirements at our headquarters offices and all of our sites located in the United States. For additional information on our
Responsible Care Program, please go to FMC.com.
Responsible Care® is a service mark of American Chemistry Council, Inc.FMC Corporation
FMC Tower at Cira Centre South
2929 Walnut Street
Philadelphia, PA 19104
U.S.
FMC.com
COPYRIGHT © 2024, FMC CORPORATION. ALL RIGHTS RESERVED.DIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 39
SAFETY
ESG Metrics
At FMC, people come first. We strive for an injury-free workplace, where every employee returns home the same way they arrived. Definitions"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"s reports due to
improved reporting and methodology.
Total Manhours (hr) 4,134,000 5,378,000 6,739,000
Tier 1
TRIR 0.29 0.19 0.06 Process safety events based on loss of
primary contaminant with the greatest
consequence, according to the API 754
LTIR 0.19 0.11 0.03 3rd Edition Definitions.
Tier 2
PROCESS SAFETY EVENTS
Process safety events based on loss
of primary contaminant with lesser
Tier 1 1 0 0+ consequence, according to the API 754
3rd Edition Definitions.
Tier 2 5 7 4+ FMC Injury/Illness
FMC employee or FMC supervised contractors."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,". CEDA Global factors were adjusted
Category 4 (Upstream Transportation & Distribution)1,2 tCO 2e 212,200 136,500 97,400 -54% -29% for commodity-specific inflation, where
previous factors were adjusted in line with
Category 5 (Waste Generated in Operations) tCO 2e 63,800 63,000 36,700 -42% -42%
country-specific inflation. Factors were also
updated to purchaser price emission factors,
Category 6 (Business Travel) tCO e 1,800 6,200 4,200 +133% -32%
2 which were published in 2023 after last year’s
Category 7 (Employee Commuting) tCO e 6,000 5,700 4,900 -18% -14% inventory was completed and uses base year"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"nformation about FMC's
them tools to enhance recruiting, hiring and retention FMC offers localized benefits that may exceed statutory
stakeholder engagement, including main stakeholder
initiatives that help to foster a culture of inclusion. requirements (such as parental leave in the U.S.) and that
groups and topics and methods of engagement, can
help support employees' financial, mental and physical
2. Leadership Development: FMC offers development be found in the Engagement section and on the
well-being. Depending on employee eligibility, these include"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"y
stakeholder engagement, including main stakeholder
initiatives that help to foster a culture of inclusion. requirements (such as parental leave in the U.S.) and that
groups and topics and methods of engagement, can
help support employees' financial, mental and physical
2. Leadership Development: FMC offers development be found in the Engagement section and on the
well-being. Depending on employee eligibility, these include
programs globally to help employees grow personally company’s website.
additional resources such as employee assistance programs,"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"gaining agreements are present, FMC
compliance with applicable law and FMC’s Code
In 2023, the FMC Ethics Office evaluated 13 global makes every effort to reach agreements that are mutually
of Ethics and Business Conduct, oversees the
reports classified as harassment, discrimination or beneficial. The company strongly believes in a cooperative
compliance training program, and evaluates
retaliation. Of these 13 reports, 1 was substantiated approach and works closely with unions and work councils
and resulted in employee discipline. responses to significant compliance matters and to find solutions for everyday interactions as well as"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"C's requirements to adhere with regulatory standards for animal testing and commitment to global principles
Commitment to Animal Welfare Company 8,9
(replace, reduce, refine) for animal welfare.
Builds upon FMC's Code of Ethics to further outline the company's commitment to the protection and advancement of
Company, Supplier
Policy on Human Rights human rights as a principle and within global business operations. It outlines adherence to international best practices and 1,2,3,4,5,6
Expectations
standards, guiding pillars, due diligence and reporting and employee training."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"on on how to report any violations through our Ethics hotline.
Clarifies expectations placed on FMC suppliers and their subcontractors to act in accordance with the Supplier Code of
Supplier Code of Conduct Suppliers 1,2,4,5
Conduct, which covers topics relating to ethics, human rights, labor, environment, and health and safety.
Outlines expectations placed on FMC suppliers and outlines FMC's plan related to ESG Supplier Engagement, including
Sustainable Sourcing Statement Suppliers 1,2,3,4,5,8
supplier screening, auditing, employee training and adherence to Modern Slavery Acts globally."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"n compliance with Section 1502 of the Dodd-Frank Act. Company, Suppliers 1,2,10
Corporate Tax Policy Statement Provides transparency to FMC stakeholders on tax policy matters and compliance with tax regulations. Company 10
Provides an overview of FMC's comprehensive cybersecurity program to protect company and supply chain data. This
Cybersecurity Policy includes details around FMC's executive oversight and risk mitigation program, which includes risk assessment, auditing, Company, Suppliers 10
security systems, employee training and response plans."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"r screening process
Human Rights
Principle 2: Make sure that businesses are not complicit in human rights abuses. • Sexual Harassment Prevention Campaign
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right
• Collective bargaining agreements
to collective bargaining.
Principle 4: The elimination of all forms of forced and compulsory labor. • Supplier screenings
Labor Principle 5: The effective abolition of child labor. • Supplier screenings
• FMC Employee Resource Groups"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ncluding composting), and Other Beneficial Reuse. Other Beneficial
pg. 42
Reuse Criteria Reuse includes waste that is processed for fuel blending or cement mixing. Non-hazardous waste to beneficial reuse
metrics are reported with no exclusions.DIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 62
MANAGEMENT CRITERIA | Safety
Metric Page(s) Reporting Criteria Reporting Criteria Definition
Total Recordable Incident Rate (TRIR) = (# of OSHA Recordable Incidents) X 200,000/(Total # of Hours Worked).
pg. 07, Management's OSHA recordable incidents refers to work-related injury or illness of an FMC employee or FMC supervised contractor"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"s Worked).
pg. 07, Management's OSHA recordable incidents refers to work-related injury or illness of an FMC employee or FMC supervised contractor
Total Recordable Incident Rate (TRIR)
39 Criteria requiring treatment beyond first aid, as defined by U.S. OSHA Recordkeeping Framework (Standard 1904). TRIR
incidents taking place in 2023 reported on or before December 31, 2023.
Lost Time Injury Rate (LTIR) = (# of Lost Time Injuries) X 200,000/(Total # of Hours Worked). Lost Time Injuries refers to
work-related injuries that result in an FMC employee or FMC supervised contractor being unfit for work on any day after"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ing Sites indicating PSEs with lesser consequence, according to the API 754 3rd Edition
Management's Definitions. A Tier 2 PSE is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable
Tier 2 Process Safety Events pg. 39
Criteria materials, from a process that results in one or more of the consequences listed in API 754 3rd Edition section 6.2.2 and is
not reported as a Tier 1 PSE. Includes events taking place in 2023 reported on or before December 31, 2023.
Management's Work-related injury or illness that results in the death of an FMC employee or FMC supervised contractor based on U.S."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"Scope 3 Category 6 - and hotel emissions are based on the number of hotel night stays per region. Emission factors were obtained from
pg. 40 GRI 305-3
Business Travel DEFRA/BEIS 2023 for calculation of emissions related to air, rail and rental car miles and hotel night stays. Where
location-specific emission factors for hotel night stays were not available, emission factors from the Greenview Hotel
Footprinting Tool were applied. Activity data is provided externally from third party providers.
FMC calculated employee commuting emissions using distance-based models, based on employee headcount and commuting"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"loyee commuting emissions using distance-based models, based on employee headcount and commuting
data, with different models for U.S. and international locations. For the U.S., distance traveled and modes of transport per
state were estimated using the National Household Travel Survey, mapping to the EPA's emissions factor hub. For the
Scope 3 Category 7 -
pg. 40 GRI 305-3 international model, distance traveled and modes of transport is calculated using data from the Mobility in Cities Database
Employee Commuting"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"-5. For more
information, please see page 61.
GRI 308: Supplier Environmental Assessment 2016
Disclosure Location Requirement(s) Omitted Reason Explanation
308-1 New suppliers that were screened using
pg. 12, 56
environmental criteria
308-2 Negative environmental impacts in the supply
pg. 12, 56
chain and actions takenDIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 72
GRI 401: Employment 2016
Disclosure Location Requirement(s) Omitted Reason Explanation
Metrics include full-time FMC employees
401-1 New employee hires and employee turnover pg. 54 and excludes other payroll workers (i.e."
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"5, 39, 50-51
403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by business pg. 04-05, 39, 50-51
relationships
403-8 Workers covered by an occupational health and
pg. 04-05, 39, 50-51
safety management system
403-9 Work-related injuries pg. 04-05, 39, 50-51
403-10 Work-related ill health pg. 04-05, 39, 50-51DIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 73
GRI 404: Training and Education 2016
Disclosure Location Requirement(s) Omitted Reason Explanation
404-1 Average hours of training per year per employee pg. 53, 55"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ed by business pg. 04-05, 39, 50-51
relationships
403-8 Workers covered by an occupational health and
pg. 04-05, 39, 50-51
safety management system
403-9 Work-related injuries pg. 04-05, 39, 50-51
403-10 Work-related ill health pg. 04-05, 39, 50-51DIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 73
GRI 404: Training and Education 2016
Disclosure Location Requirement(s) Omitted Reason Explanation
404-1 Average hours of training per year per employee pg. 53, 55
Over 500 FMC managers participated
404-2 Programs for upgrading employee skills and in leadership development. 1,645 FMC"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"power of science to solve agriculture’s biggest challenges.
FMC employs approximately 6,600 employees at more than 100 sites across North America, Europe, the Middle East, Africa, Latin America and Asia Pacific.
Our six Core Values — Customer-Centricity, Sustainability, Respect for People, Safety, Integrity, and Results Driven — define who we are and how we do
business. Read more about our Governance and Operating Principles at FMC.com/sustainability or in our Digital ESG Appendix - Governance.
2023 Financial Performance Summary A Global Workforce"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"fe. We are particularly
these pillars with goals, targets and
employees feel respected and valued, find purpose in their work focused on creating
initiatives to drive progress across our and can grow and contribute to their fullest potential. We are equitable opportunities for
company and industry. committed to advancing gender and racial equity within our small landholders, women,
company and across the agriculture industry. and youth in agriculture.FROM THE GROUND UP 07
2023 PROGRESS ON GOALS
In 2023, we continued to make progress on our 2025 sustainability goals, 2027 workforce diversity"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ure industry. and youth in agriculture.FROM THE GROUND UP 07
2023 PROGRESS ON GOALS
In 2023, we continued to make progress on our 2025 sustainability goals, 2027 workforce diversity
goals and 2035 environmental goals. Data is presented below and in our Digital ESG Appendices.
2025 SUSTAINABILITY GOALS 2023 STATUS
100% R&D SPEND
Innovation 99%
on sustainably-advantaged products
<0.1 TOTAL
Safety 0.05
Recordable Incident Rate (TRIR)*
100%
Community Engagement 93%
on the Community Engagement Index
2027 WORKFORCE DIVERSITY GOALS**"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ake progress on our 2025 sustainability goals, 2027 workforce diversity
goals and 2035 environmental goals. Data is presented below and in our Digital ESG Appendices.
2025 SUSTAINABILITY GOALS 2023 STATUS
100% R&D SPEND
Innovation 99%
on sustainably-advantaged products
<0.1 TOTAL
Safety 0.05
Recordable Incident Rate (TRIR)*
100%
Community Engagement 93%
on the Community Engagement Index
2027 WORKFORCE DIVERSITY GOALS**
Black/African American 14%
Today, climate change continues to intensify, 10%
Representation in the U.S. workforce"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"Appendices.
2025 SUSTAINABILITY GOALS 2023 STATUS
100% R&D SPEND
Innovation 99%
on sustainably-advantaged products
<0.1 TOTAL
Safety 0.05
Recordable Incident Rate (TRIR)*
100%
Community Engagement 93%
on the Community Engagement Index
2027 WORKFORCE DIVERSITY GOALS**
Black/African American 14%
Today, climate change continues to intensify, 10%
Representation in the U.S. workforce
making it more difficult to grow crops and
putting farmers’ livelihoods at risk. Water 50%
Female Representation 32%
resources are being depleted as precipitation in the global workforce"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ore important than ever. From
our work to reduce emissions, to helping farmers
adapt to climate change, to strengthening rural *TRIR reporting includes FMC employees and supervised contractors.
**FMC is expanding its diversity, equity and inclusion goals to attract, retain and develop diverse talent while continuing to build
communities across the globe, FMC continues to
a culture that embraces diverse backgrounds and experiences globally. This will be the last time that FMC reports on the 2027
pursue meaningful actions that yield real results. Workforce Diversity Goals.0088 2023 SUSTAINABILITY REPORT"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"Our 2023
and processes to support it. It's why DEI
Inclusion Month Campaign – Unite! We Do Better
governance continues to be a key area of
Together – underscored this important aspect
focus for our teams.
of our company’s culture with programming and
resources that demonstrate how diversity drives
our business.
Furthermore, we continue to build a culture of
inclusion where every employee feels a sense of
We operate in a complex global environment
belonging and has equal opportunity to succeed.
with a wide array of stakeholders. A workforce"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"ckey and
LGBTQ+ workplace equality. This year’s CEI basketball. In high school, I was the only
score recognizes our enhanced policies and student who openly identified as LGBTQ+.
procedures and efforts to measure LGBTQ+ I faced some stigma and didn’t have access
identity and employee experience. to an LGBTQ+ community or supportive
resources. At times it was isolating, and I
In 2023, we continued to advance LGBTQ+
had a hard time feeling included.
inclusion by launching an LGBTQ+ Benefits Guide
that outlines all programs and benefits the company offers to support LGBTQ+ employees Similarly, when I entered the workforce, it"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"campaigns through its PAC program. Additionally, FMC
eligible U.S. Internal Revenue Code Section 501(c) discloses the percentage of dues used for political
(3) or the equivalent outside the United States. This expenditures from significant trade association and
is done in support of programs and services that social welfare organizations (>$50,000) on a semi-
align with FMC's business goals and values, allowing annual basis.DIGITAL ESG APPENDICES 2023 SUSTAINABILITY REPORT 54
SOCIAL
ESG Metrics
Workforce Metrics for Full-Time Employees in 2023 Female Employees by Level, Global Definitions"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"partners who
component of annual incentive pay of the CEO and other 3. Communications: The Ethics Office maintains do business on FMC’s behalf. FMC’s requirements are
named executive officers. These metrics relate to FMC’s awareness about ethics and compliance via global described in its Code of Ethics, Supplier Code of Conduct,
sustainability goals as highlighted in this report and include processes, communications and special events. Anti-Bribery and Anti-Corruption (ABAC) Compliance Policy,
safety, workforce diversity and progress towards net-zero. Examples from 2023 include the annual mandatory and other company policies and procedures. FMC operates"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"stantiated approach and works closely with unions and work councils
and resulted in employee discipline. responses to significant compliance matters and to find solutions for everyday interactions as well as
legal developments.
contract negotiations. FMC expects suppliers to respect
2. Ethics and Compliance Training: Over 15,500
their employees’ right to join, form or abstain from joining
person-hours of training (both live and e-training)
a labor union without fear of reprisal, intimidation or
were delivered to FMC's global workforce on topics"
FMC-8167 2023 Sustainability Report_r12 Digital Final (1)_1.txt,"itigate those risks and Analysis
Hazardous Waste Metric tons (mt),
Amount of hazardous waste generated, percentage recycled Quantitative RT-CH-150a.1 pg. 42
Management Percentage (%)
Discussion of engagement processes to manage risks and Discussion
Community Relations n/a RT-CH-210a.1 pg. 47, 53
opportunities associated with community interests and Analysis
(1) Total Recordable Incident Rate (TRIR)
(2) Fatality Rate for (a) direct employees and (b) contract Quantitative Rate RT-CH-320a.1 pg. 39
Workforce Health employees"
GD 2023 Sustainability Report.txt,"mise to manage
applicable laws, regulations and standards. our business in accordance with the highest
standards of ethical conduct.
The U.S. government also reviews the
adequacy of, and compliance with, internal
control systems and policies, including our
Tools and Resources
purchasing, property estimating, material,
earned value management and
Our commitment to ethics is highly visible,
accounting systems.
readily available and continually reinforced.
We equip our employees with the tools and
Every employee is expected to uphold our"
GD 2023 Sustainability Report.txt,"e with the highest
standards of ethical conduct.
The U.S. government also reviews the
adequacy of, and compliance with, internal
control systems and policies, including our
Tools and Resources
purchasing, property estimating, material,
earned value management and
Our commitment to ethics is highly visible,
accounting systems.
readily available and continually reinforced.
We equip our employees with the tools and
Every employee is expected to uphold our
resources they need to do the right thing.
high standards. Each employee hears this"
GD 2023 Sustainability Report.txt,"Industry Initiative to share help carry out the program and serve as a
best practices, which helps us continuously resource. Elements of the program include
improve our programs. written policies and procedures, training,
risk-based management and third-party due
In support of the EOs, we have nearly 100
diligence, multiple reporting systems, and
part-time local ethics officers (LEOs). Our
compliance audits.
LEOs, selected by their leadership based on
proven character, are embedded in locations
with our largest employee populations."
GD 2023 Sustainability Report.txt,"y webinars to
assist ethics officers with their ethics and
compliance programs, and host an online
community to enable real-time discussions
and field questions relating to ethics. We also
Defense Industry Initiative Best Practices Forum
launched an initiative sponsoring multiple
small and medium-sized companies, offering
them access to a model supplier code of
conduct, a small-business tool kit and the
opportunity to network with others in the DII.
e
c
n
a
n
er
ov
G
19L
A
T
N
E
M
N
O
R
I
V
N
E
2200 Jet Aviation employee inspecting a Gulfstream 550We promote the long-term sustainability of"
GD 2023 Sustainability Report.txt,";
and invest in technologies that reduce
• Work with our customers to meet the carbon footprint of our business and
their environmental needs and goals,
our customers. Our decentralized business
and manage suppliers consistent with
model and diverse lines of business across
our environmental compliance and
multiple states and countries enable each
management programs; and
business to develop its own set of operating
• Maintain a management system Jet Aviation
objectives to reduce GHG emissions.
for environmental matters at each employee working"
GD 2023 Sustainability Report.txt,"onships with collectively
Ethos, including ethical leadership, technical bargained employees. As agreements
innovation, creativity and proven results. expire or issues arise, we work closely
Using performance management tools and with the bargaining units to seek mutually
succession plans, we engage and reward beneficial outcomes.
employees, developing future leaders
Hiring and Supporting Veterans. General
to align with strategic objectives tied to
Dynamics recognizes the value veterans Veteran
company and customer needs. Wherever employee"
GD 2023 Sustainability Report.txt,"inforced through ongoing feedback and
avenues. We are committed to recognizing
semi-annual and annual reviews.
the unique contributions of those individuals
In addition to ongoing and formal reviews, who have served in defense of our nation by
we employ recognition tools to encourage providing tailored professional development
innovation, continuous improvement, opportunities, career pathways and resources
creativity, teamwork and commitment to to support their transition into civilian life. We
our Ethos. Leaders and peers may nominate offer dedicated Employee Resource Groups"
GD 2023 Sustainability Report.txt,"chart provides the composition
of our U.S. workforce, as self-reported by
our employees. We disclose our EEO-1
data on our website.
Gender
Men Women
76.2% 23.8%
Race/Ethnicity
Native Pacific Two or
Asian Black Hispanic White
American Islander More
5.7% 10.9% 9.8% 0.4% 0.4% 71.1% 1.8%
+.1pt +.1pt +.7pt same same −1pt +.1pt
Veterans Disability
Self-ID as a veteran of the armed forces Self-ID as having a disability
19% 7%
E
Change from previous year
*All data are for the year ended 12/31/22.
Employee Resource Groups & Diversity"
GD 2023 Sustainability Report.txt,"ar
*All data are for the year ended 12/31/22.
Employee Resource Groups & Diversity
Councils. Across our business units, we
cultivate inclusive work environments by
supporting ERGs and diversity councils that
are sponsored at the highest levels of our
company with senior executive sponsors.
Their efforts support overall company
objectives and involvement in the community
and serve as resource for specific segments
of the workforce across our corporation.
Currently, we have more than 30 ERGs that
serve 10 distinct employee segments. Over"
GD 2023 Sustainability Report.txt,"y the National 8a Council, APEX To assist employees with financial wellness,
Accelerators (formerly known as Procurement we offer retirement planning counselors
Technical Assistance Centers [PTACs]), the and market-competitive 401(k) programs. In
National Defense Industrial Association, addition, we offer members access to tax-
Women in Defense, the National Veteran free flexible spending accounts and health
Small Business Coalition and the Small savings accounts.
Business Administration (SBA).
Our Employee Assistance Program (EAP)"
GD 2023 Sustainability Report.txt,"oyees participated in the
annual Wounded Warrior Project virtual 5K to raise money for a variety of
programs, services and events for veterans who have sustained a physical
or mental injury, illness, or co-incident during their military service.
52Political Engagement
General Dynamics Corporation does not We do not contribute to presidential
make political contributions. campaigns, “super PACs,” other 527s not
focused on direct candidate support or 501(c)
We offer eligible employees in the U.S.
(4) organizations. Our employee PAC will not"
GD 2023 Sustainability Report.txt,"nt
General Dynamics Corporation does not We do not contribute to presidential
make political contributions. campaigns, “super PACs,” other 527s not
focused on direct candidate support or 501(c)
We offer eligible employees in the U.S.
(4) organizations. Our employee PAC will not
the opportunity to make voluntary political
support Members of Congress who provoke
contributions through a political action
or incite violence or engage in similar
committee (PAC). The General Dynamics
unlawful conduct.
Employee PAC is organized and operated"
GD 2023 Sustainability Report.txt,"costs and expenses as nondeductible for tax
online. PAC contributions are subject to a purposes and unallowable for purposes of
robust internal review process to ensure U.S. government contracts.
they represent the best interests of General
Dynamics employees. In addition, internal
In 2022, we successfully engaged with
financial controls exist to ensure compliance
Members of Congress in support of both the
with federally mandated contribution limits.
blenders tax credit for Sustainable Aviation
Our employee PAC invests contributions in"
GD 2023 Sustainability Report.txt,"es in the 2022 Inflation Reduction Act. We are
where General Dynamics facilities,
currently advocating for legislation that would
suppliers or employees are located
direct the EPA and FAA to adopt International
• Membership on key committees
Civil Aviation Organization (ICAO) standards
legislating on issues of importance
to General Dynamics to reduce airplane GHG emissions in line with
• Leadership positions what many other nations have adopted.
• Prior military or aerospace
industry experience
As a foundational principle, our employee"
GD 2023 Sustainability Report.txt,"sitions what many other nations have adopted.
• Prior military or aerospace
industry experience
As a foundational principle, our employee
PAC refrains from partisan politics, remaining
focused on national security and advocating
for the success of GD and its employees.
That means we give to members of both
parties, and we delink our support from
issues unrelated to our core business.
al
oci
S
53Cybersecurity and Data Privacy
We are committed to safeguarding We collaborate and share intelligence
employee, customer, national security and with government, suppliers and industry"
GD 2023 Sustainability Report.txt,"ciples of trust, transparency, honesty and
alignment that are foundational to our Ethos. This Ethos drives our decisions and is
the standard to which we hold ourselves. It is also the basis for the decisions and
programs discussed in this report.
We have long been committed to stewarding our resources in a way that ensures
their sustainability. This report chronicles the progress we have made in the last year.
You will read that we continue to improve in protecting the environment, diversifying
our workforce and adopting best practices for corporate governance. We will continue"
GD 2023 Sustainability Report.txt,"nts to our shareholders, customers, employees, communities
and environment.
Sincerely,
Phebe N. Novakovic
Chairman and Chief Executive Officer
4H I G H L I G H T S
GOVERNANCE
– We have a Sustainability
Committee on our board of directors
to oversee sustainability efforts
across the company.
– We have a lead director to
provide independent oversight
of the company.
– We have a comprehensive ethics
SOCIAL
program to align business
practices across the company
– We continue to expand the diversity
with our Ethos. of our workforce, growing the"
GD 2023 Sustainability Report.txt,"Sincerely,
Phebe N. Novakovic
Chairman and Chief Executive Officer
4H I G H L I G H T S
GOVERNANCE
– We have a Sustainability
Committee on our board of directors
to oversee sustainability efforts
across the company.
– We have a lead director to
provide independent oversight
of the company.
– We have a comprehensive ethics
SOCIAL
program to align business
practices across the company
– We continue to expand the diversity
with our Ethos. of our workforce, growing the
percentage of people of color
in both our total workforce and"
GD 2023 Sustainability Report.txt,"erating Earnings:
15% U.S. Commercial
– Capital Expenditures and Company-
$1.6 billion
Sponsored R&D:
9%
6%
$1.25 billion Non-U.S. Government
– Net Income Tax Paid:
Non-U.S. Commercial
We take seriously our responsibility to return value to our shareholders while at the same time investing
$2.6
for the future. In 2022, we returned billion to our investors through dividends and share repurchases,
while investing $1.6 billion in capital expenditures and company-sponsored research and development.
OUR WORKFORCE"
GD 2023 Sustainability Report.txt,"we Environment, Health and Safety (EHS)
engage with our employees, communities, Committee that directly addresses
customers and suppliers. Our operating sustainability, energy and environmental
processes and activities incorporate issues. Each GD BU is represented by a
initiatives to improve diversity, promote senior EHS professional assigned by the
inclusion, reduce emissions and waste, business unit (BU) president. This
and adhere to standards that lower risk subcommittee supports companywide
and drive a healthier and safer workforce efforts regarding sustainability matters. For"
GD 2023 Sustainability Report.txt,"yees to gain
5,500
facilitated more than internal
additional skills so they can grow their value
mobility moves, helping employees
to the company. These include programs that
take the next step in their careers. grant certificates in key technical areas.
At our shipyards, we offer active learning
centers that teach more than 200 skills,
Engaging and Developing Talent. We
allowing shipbuilders to prepare for positions
engage and develop employees to prepare
and expand their capabilities in areas
our workforce for the future. With our"
GD 2023 Sustainability Report.txt,"at are tailored to our unique We offer various training programs to equip
needs and offer employees development leaders with skills and competencies needed
opportunities that enhance their present to engage technical and manufacturing
and future potential to deliver excellence employees. These range from certificate-
to our customers. granting program management courses to
leadership development programs that rotate
Onboarding and Mentoring. Meaningful,
future leaders through different parts of
rapid assimilation into our workforce and"
GD 2023 Sustainability Report.txt,"ical leadership, technical bargained employees. As agreements
innovation, creativity and proven results. expire or issues arise, we work closely
Using performance management tools and with the bargaining units to seek mutually
succession plans, we engage and reward beneficial outcomes.
employees, developing future leaders
Hiring and Supporting Veterans. General
to align with strategic objectives tied to
Dynamics recognizes the value veterans Veteran
company and customer needs. Wherever employee
bring to our workforce. We proactively"
GD 2023 Sustainability Report.txt,"ecognition tools to encourage providing tailored professional development
innovation, continuous improvement, opportunities, career pathways and resources
creativity, teamwork and commitment to to support their transition into civilian life. We
our Ethos. Leaders and peers may nominate offer dedicated Employee Resource Groups
employees to recognize their achievements. (ERGs) and mentoring programs that assist
in attracting, transitioning and retaining this
By fostering a culture that celebrates
critical part of our workforce."
GD 2023 Sustainability Report.txt,"s, enough to give 49 children a daily meal for a year.
al
oci
S
39Diversity, Equity
and Inclusion
Our people are the competitive advantage in
Electric Boat hosted signing day ceremonies for students hired
driving the innovation and productivity that
in Connecticut and Rhode Island.
strengthens the solutions we deliver to our
customers, and we celebrate the uniqueness
We have increased our focus on developing
of the individuals that make up our diverse
technical pipeline programs for high school
workforce. We proudly support, promote and"
GD 2023 Sustainability Report.txt,"Ethos — rooted in respect — guides
seniors joining the company immediately how we engage with each other, and our
after graduation. workplaces reflect policies, procedures and
practices that cultivate diversity, equity and
Gulfstream participates in the Student
inclusion at their core.
Leadership Program (SLP) in Savannah,
Georgia, and Appleton, Wisconsin. The We work to continually improve representation
program equips high school students with of diverse talent at all levels of the company so
skills to explore career paths that also that our workforce reflects the communities in"
GD 2023 Sustainability Report.txt,"with each other, and our
after graduation. workplaces reflect policies, procedures and
practices that cultivate diversity, equity and
Gulfstream participates in the Student
inclusion at their core.
Leadership Program (SLP) in Savannah,
Georgia, and Appleton, Wisconsin. The We work to continually improve representation
program equips high school students with of diverse talent at all levels of the company so
skills to explore career paths that also that our workforce reflects the communities in
help meet local workforce needs. Four which we operate. Our ongoing efforts include"
GD 2023 Sustainability Report.txt,"SS), which
has a minority enrollment of roughly 80%.
Gulfstream will participate in an SLP
program in St. Louis this fall. 40%
In 2022, of our new hires in the U.S. were people of color.
16%
7%
Asian
Two or
2%
More Races
American Indian
or Alaska Native
33% 2%
Hispanic Native Hawaiian
or Latino or Pacific Islander
41%
Black or African American
Participants in the Student Leadership Program (SLP) * Total is more than 100% due to rounding.
40Who We Are
The following chart provides the composition
of our U.S. workforce, as self-reported by"
GD 2023 Sustainability Report.txt,"of the armed forces Self-ID as having a disability
19% 7%
E
Change from previous year
*All data are for the year ended 12/31/22.
Employee Resource Groups & Diversity
Councils. Across our business units, we
cultivate inclusive work environments by
supporting ERGs and diversity councils that
are sponsored at the highest levels of our
company with senior executive sponsors.
Their efforts support overall company
objectives and involvement in the community
and serve as resource for specific segments
of the workforce across our corporation."
GD 2023 Sustainability Report.txt,"olunteers, made up
of employees, family and friends,
performed a total of 283
volunteer hours.
Our philanthropy and
volunteer efforts focus on:
Education & Social Services
Arts & Culture Service
Member Support
GD employees participate in the SOME Annual Trot for
Hunger in Washington, D.C. Educational Outreach. A key element
of our community outreach is support for
education, especially in the STEM fields. Our
employees volunteer their time, talent and
expertise to teach and train future members
of the workforce, leading robotics clubs"
GD 2023 Sustainability Report.txt,"tional Outreach. A key element
of our community outreach is support for
education, especially in the STEM fields. Our
employees volunteer their time, talent and
expertise to teach and train future members
of the workforce, leading robotics clubs
and rocketry competitions and mentoring
college students and interns. Facilitating
strong knowledge and understanding of
STEM concepts, particularly in underserved
communities, is crucial to building a pipeline
of talent for a productive society and our
future workforce."
GD-2021-Sustainability-Report.txt,"Responsibility 9
Global Supply Chain 10
GOVERNANCE 13
Board of Directors 14
Board Oversight of Risk 15
Political Engagement 16
Compensation 17
Information Security 18
OUR CULTURE 21
Ethics 22
Safety 25
Diversity, Equity and Inclusion 26
Developing an Inclusive Mindset 29
Performance and Recognition 30
Labor Relations 31
Continuous Improvement 31
ENGAGEMENT AND DEVELOPMENT 32
Engaging and Developing Talent 33
Pipeline Programs and Recruiting 34
Onboarding and Mentoring 36
Supporting Employees 38
EMPLOYEE AND COMMUNITY WELL-BEING 39"
GD-2021-Sustainability-Report.txt,"ent and reports specific risk
management matters as necessary to the
full board.
y In 2021, the board established a Sustainability
Committee, which oversees sustainability
practices and management, including those
relating to environmental, health and safety,
human rights, and social matters.
y Senior management is responsible for day-to-
day risk management and conducts a thorough
assessment through internal management
processes and controls.
Abrams M1A2 SEPv3
Governance 15Political Engagement
General Dynamics Corporation does not make As a guiding principle of our employee PAC, we stay"
GD-2021-Sustainability-Report.txt,"ions. above the normal fray of partisan politics, remaining
focused on national security and on advocating for
We offer eligible employees (as determined by
success of General Dynamics and our employees.
federal election laws) in the United States the
That means we give to members of both parties,
opportunity to make political contributions through
and we delink our support from issues unrelated to
a political action committee (PAC). The General
our core business. That philosophy has served our
Dynamics employee PAC is organized and operated"
GD-2021-Sustainability-Report.txt,"tical action committee (PAC). The General
our core business. That philosophy has served our
Dynamics employee PAC is organized and operated
industry well over the years, as we have enjoyed
on a strictly voluntary, nonpartisan basis and is
strong bipartisan support.
registered with the Federal Election Commission.
We do not contribute to presidential campaigns,
The PAC’s political contributions are reported
“super PACs,” or other 527 or 501(c)(4)
monthly to the Federal Election Commission, where
organizations. Our employee PAC will not support"
GD-2021-Sustainability-Report.txt,"the company, To ensure compliance with all applicable laws
its employees and its shareholders. In addition, relating to political activities and effective
internal financial controls exist to ensure company corporate governance, we follow a strict policy
compliance with federally mandated governing lobbying practices. This includes tracking
contribution limits. and reporting lobbying costs and expenses as
nondeductible for tax purposes and unallowable
for purposes of U.S. government contracts.
Our employee PAC invests contributions"
GD-2021-Sustainability-Report.txt,"on creating long-term value, for our executive officers. Our shareholders provide
our executive compensation is tied to defined feedback on executive compensation with an annual
financial and nonfinancial performance metrics say-on-pay vote, and in 2021, our say-on-pay vote
that align with creating shareholder value. These was 97% in favor.
USNS John Lewis (T-AO 205)
Governance 17Information Security
General Dynamics is committed to safeguarding and attempts to gain access to information in our
employee, customer, national security and third- care. We also design and manage IT systems"
GD-2021-Sustainability-Report.txt,"ur customers and in accordance with regulatory or
all defense business units.
legal requirements. In addition, our business units
We monitor our program’s effectiveness by regularly participate in penetration tests and cyber
performing audits, leveraging commercial tools response exercises to gain experience with the
for assessing cybersecurity posture and health, challenging decisions required to optimize outcomes
and conducting cyber penetration testing. These in the event of a real incident.
Governance 19Every General Dynamics employee plays a critical"
GD-2021-Sustainability-Report.txt,"r compliance
communities in which we live and work.
with applicable laws, regulations and standards.
The U.S. government also reviews the adequacy
of, and compliance with, internal control systems Readily Available Tools and Resources
and policies, including our purchasing, property
Our commitment to ethics is highly visible, readily
estimating, material, earned value management
available and continually reinforced in numerous
and accounting systems.
ways. We take a number of steps to equip our
Each and every employee is expected to uphold employees with the tools and resources they"
GD-2021-Sustainability-Report.txt,"eir first day of employment and
compliance with our Ethos and with Our Standards
throughout their careers with General Dynamics.
of Business Ethics and Conduct commonly known
Not only do we foster an ethical work environment,
as theBlue Book. The Blue Book states our
we work to create an environment where
expectation that all employees conduct business
employees feel safe, empowered, and equipped
in accordance with our Ethos, applicable laws
to speak up and do the right thing.
and our policies.
Our Culture 22Our leadership teams and the ethics, human Employee Ethics Help Line Engagement"
GD-2021-Sustainability-Report.txt,"ported by the Aircraft Manufacturing and Shipbuilding
& Repairing industries to the U.S. Department of Labor’s Bureau of Labor Statistics.
Since 2013
Recordable Cases Absence Cases Lost Work Days
-36% -38% -51%
Our Culture 25Diversity, Equity and Inclusion
Across the General Dynamics Corporation, we New Hires
believe that our competitive advantage lies within
Reflecting our ongoing efforts to develop new
our workforce. The unique contributions of each
pathways for recruiting diverse talent, the
employee are key in our ability to drive innovation"
GD-2021-Sustainability-Report.txt,"tter
corporation and enhancing the value we bring to our
stakeholders. These efforts demonstrate our Ethos
at work.
We continue to work to improve representation
38% of our new
of diverse talent at all levels of the corporation
hires in 2020 were
so that we reflect the communities in which we
people of color.
operate. Our ongoing efforts include developing
ways to attract and retain diverse talent. We gather
data about overall demographics, promotions,
recruitment and other processes across the
employee lifecycle and use that to inform our"
GD-2021-Sustainability-Report.txt,"hos
at work.
We continue to work to improve representation
38% of our new
of diverse talent at all levels of the corporation
hires in 2020 were
so that we reflect the communities in which we
people of color.
operate. Our ongoing efforts include developing
ways to attract and retain diverse talent. We gather
data about overall demographics, promotions,
recruitment and other processes across the
employee lifecycle and use that to inform our
areas of focus for continued improvement in
these areas.
Our Culture 26Total U.S. Workforce Employee Resource Groups"
GD-2021-Sustainability-Report.txt,"8% of our new
of diverse talent at all levels of the corporation
hires in 2020 were
so that we reflect the communities in which we
people of color.
operate. Our ongoing efforts include developing
ways to attract and retain diverse talent. We gather
data about overall demographics, promotions,
recruitment and other processes across the
employee lifecycle and use that to inform our
areas of focus for continued improvement in
these areas.
Our Culture 26Total U.S. Workforce Employee Resource Groups
Across General Dynamics, supporting employee"
GD-2021-Sustainability-Report.txt,"efforts include developing
ways to attract and retain diverse talent. We gather
data about overall demographics, promotions,
recruitment and other processes across the
employee lifecycle and use that to inform our
areas of focus for continued improvement in
these areas.
Our Culture 26Total U.S. Workforce Employee Resource Groups
Across General Dynamics, supporting employee
Female People of Color
interests is paramount to our efforts to cultivate
inclusive work environments. We take exceptional
23% pride in our employee resource groups (ERGs) and"
GD-2021-Sustainability-Report.txt,"cruitment and other processes across the
employee lifecycle and use that to inform our
areas of focus for continued improvement in
these areas.
Our Culture 26Total U.S. Workforce Employee Resource Groups
Across General Dynamics, supporting employee
Female People of Color
interests is paramount to our efforts to cultivate
inclusive work environments. We take exceptional
23% pride in our employee resource groups (ERGs) and
27%
diversity councils.
We offer a robust selection of 26 ERGs, serving 10
distinct employee segments. ERGs are supported"
GD-2021-Sustainability-Report.txt,"3% pride in our employee resource groups (ERGs) and
27%
diversity councils.
We offer a robust selection of 26 ERGs, serving 10
distinct employee segments. ERGs are supported
and sponsored by senior-level leaders and revered
as a cornerstone of our efforts to build an inclusive
culture across the corporation.
Over the last year, we have seen increased
Management
participation in established groups and have
Female People of Color welcomed several new groups across the
corporation as well.
23% 19%
Employee Demographics"
GD-2021-Sustainability-Report.txt,"hiring and
retaining the best talent. We believe that our
veterans share our devotion to providing the
Veterans
products and services to our nation that secure
our liberty. This shared belief strengthens our
dedication to hiring, training and upskilling veteran
and active military employees and their families. 21%
Our efforts extend to multiple partnerships with
organizations that support efforts that better
the position of our external and internal Total GD U.S.
military communities. Workforce
We offer dedicated employee resource groups"
GD-2021-Sustainability-Report.txt,"that build mindsets and
Over 98% of GDIT's 28,000
skills to model inclusive leadership and behaviors in
employees completed
the service of creating an environment where we
learning modules to recognize
empower and equip employees with the tools to
unconscious bias and take
foster an inclusive work environment.
steps to combat it in
These efforts are deployed at all levels of our everyday work.
locations. We believe that advancing in the diversity
and inclusion space must be a collective effort
across all employee segments."
GD-2021-Sustainability-Report.txt,"98% of GDIT's 28,000
skills to model inclusive leadership and behaviors in
employees completed
the service of creating an environment where we
learning modules to recognize
empower and equip employees with the tools to
unconscious bias and take
foster an inclusive work environment.
steps to combat it in
These efforts are deployed at all levels of our everyday work.
locations. We believe that advancing in the diversity
and inclusion space must be a collective effort
across all employee segments.
Employee Outreach"
GD-2021-Sustainability-Report.txt,"onment.
steps to combat it in
These efforts are deployed at all levels of our everyday work.
locations. We believe that advancing in the diversity
and inclusion space must be a collective effort
across all employee segments.
Employee Outreach
WHAT ARE PARTICIPANTS SAYING?
General Dynamics embraces the belief that diverse
and inclusive work environments strengthen the
“ … enlightening and empowering. It
really brings to light how we can better solutions we provide to our customers. A significant
lead our people and cultivate diversity. It pillar in this effort is understanding the employee"
GD-2021-Sustainability-Report.txt,"hat diverse
and inclusive work environments strengthen the
“ … enlightening and empowering. It
really brings to light how we can better solutions we provide to our customers. A significant
lead our people and cultivate diversity. It pillar in this effort is understanding the employee
encourages us to be bold, listen, embrace, expectations of our leaders and workplaces to
change, promote unity, encourage drive inclusivity.
employees to join a group …”
Across the corporation, we deploy engagement
efforts to capture employee sentiments. Our"
GD-2021-Sustainability-Report.txt,"owering. It
really brings to light how we can better solutions we provide to our customers. A significant
lead our people and cultivate diversity. It pillar in this effort is understanding the employee
encourages us to be bold, listen, embrace, expectations of our leaders and workplaces to
change, promote unity, encourage drive inclusivity.
employees to join a group …”
Across the corporation, we deploy engagement
efforts to capture employee sentiments. Our
“ Love the interaction — really one of
approach goes beyond the traditional employee"
GD-2021-Sustainability-Report.txt,"nderstanding the employee
encourages us to be bold, listen, embrace, expectations of our leaders and workplaces to
change, promote unity, encourage drive inclusivity.
employees to join a group …”
Across the corporation, we deploy engagement
efforts to capture employee sentiments. Our
“ Love the interaction — really one of
approach goes beyond the traditional employee
the best, if not the best, courses I have
engagement efforts and uses technology as well
participated in.”
as firsthand outreach.
Many of our employee engagement efforts are"
GD-2021-Sustainability-Report.txt,"courage drive inclusivity.
employees to join a group …”
Across the corporation, we deploy engagement
efforts to capture employee sentiments. Our
“ Love the interaction — really one of
approach goes beyond the traditional employee
the best, if not the best, courses I have
engagement efforts and uses technology as well
participated in.”
as firsthand outreach.
Many of our employee engagement efforts are
specific to diversity, equity and inclusion because
we believe that this focus garners the best
understanding of employee expectations."
GD-2021-Sustainability-Report.txt,"enting Bath Iron Works employees went
y fortify our diverse portfolio to better serve
on strike for the first time in 20 years following a
our shareholders;
disagreement about the use of outside contractors
to assist with recovering from schedule delays y enhance community engagement to
in delivering ships to the Navy. The dispute was contribute to the communities where
resolved after nine weeks, with 87% of union our employees live and work; and
members approving a new contract. As part of the
y evolve employee benefits to develop and"
GD-2021-Sustainability-Report.txt,"nd on-the-job training,
achieving a 100% hiring rate after
completion of the program.
Engagement and Development 33
smetsyS
noissiM
DGPipeline Programs and Recruiting
General Dynamics partners with local colleges, Recruiting Partnerships and Outreach
universities, high schools and trade schools to
General Dynamics is honored to be a longstanding
provide insight on curriculum development in an
partner with global diversity efforts that host
effort to build a continual pipeline of talent. We also
opportunities for sponsorships, employee"
GD-2021-Sustainability-Report.txt,"loyees with leaders to begin the mentoring
Operations partner to ensure those we hire know
relationship. At GDIT, newly hired veterans are able
what they will be doing, who they will be doing it
to engage with other veterans employed at GDIT
with and for and, most importantly, why they are
in virtual discussion forums focused on topics to
doing it.
assist them with their transition to the corporate
Once a good fit is mutually determined by General environment. These discussions are supplemented
Dynamics and the prospective employee, each with smaller mentoring breakout sessions to allow"
GD-2021-Sustainability-Report.txt,"the
programs; and various voluntary benefits, including use of mental health resources.
legal insurance; an identity theft protection plan;
critical illness insurance; accident insurance; and
coverage for home, auto and pets.
To assist employees with financial wellness, we
offer retirement planning counselors and market-
competitive 401(k) programs. In addition, we offer
members the ability to save money on a tax-
advantaged basis through flexible spending
accounts and health savings accounts.
Our Employee Assistance Program (EAP) helps"
GD-2021-Sustainability-Report.txt,"d health savings accounts.
Our Employee Assistance Program (EAP) helps
employees by offering services such as retirement
planning, finding childcare and free counseling.
Other programs vary by business and location,
reflecting the distinct and diverse needs of our
employees and include everything from biometric
screenings, mental wellness and fitness programs
to in-person health coaches and a wide variety of
apps that can help employees navigate difficult
health care decisions and life changes.
Employee and Community Well-Being 40GDIT employees in Tampa, Florida, volunteer to paint homes of low-income elderly residents."
GD-2021-Sustainability-Report.txt,"nity programs. We also offer paid parental
leave programs and provide tools and resources
for parenting support. At many of our locations, we
include paid family leave as well as back-up daycare
and support in locating caregivers.
In 2021, Gulfstream rolled out a new
family care support program. This service,
available at no cost, provides personalized
support to help employees care for
themselves and the ones they love,
whether it’s finding care for a spouse,
children, parents or grandparents.
Employee and Community Well-Being 41Investing in Our Communities"
GD-2021-Sustainability-Report.txt,"ons to support based on program, establishing a mentorship
what is near to their hearts, and then organize the program to introduce students to STEM-
donation of time, goods and services to places such specific topics and hosting visits to
as local chapters of the United Way, the YMCA or our facilities to show students how we
organizations like Jill’s House in the D.C. metro area, integrate STEM into jobs.
which celebrates and provides support for children
with special needs and their families.
Employee and Community Well-Being 42In accordance with the White House's"
GD-2021-Sustainability-Report.txt,"ve
personal support.
Our sponsorships include:
y Association of the United States Army (AUSA)
Army Ten-Miler, which raises funds for the
Army Family and Morale, Welfare and
Recreation program
y National Military Family Association, which
strives to stand up for, support and enhance
the quality of life for every military family
y Semper Fi Fund, which provides urgently
needed resources and support for combat-
wounded, critically ill and catastrophically injured
service members and their families
Employee and Community Well-Being 43COVID-19"
GD-2021-Sustainability-Report.txt,"Roundtable and the United Way in America’s
liquidity to the thousands of small businesses in
Mask Challenge, which challenged American
our supply chain, in support of DoD policy, we
companies and organizations to help put
advanced more than $2 billion in accelerated
masks in the hands of students, teachers and
cash payments to our suppliers to ensure they
staff in schools across America by the end of
could meet their financial obligations, especially
the 2020-21 school year.
to their employees.
Employee and Community Well-Being 44Employees at NASSCO in San Diego"
GD-2021-Sustainability-Report.txt,"locate and lead a mass vaccination site
at its headquarters. The mass drive-
As part of this Challenge, General Dynamics
through site was open for 10 weeks and
funded the donation and distribution of masks
distributed almost 28,000 vaccinations.
to students, teachers and staff in every school
in Fairfax County, Virginia, a community in
which many GD employees and their families
live and work.
As we continue to navigate this unprecedented global
pandemic, General Dynamics continues to attend to
employee health and safety and meeting customer"
GD-2021-Sustainability-Report.txt,"ents, teachers and staff in every school
in Fairfax County, Virginia, a community in
which many GD employees and their families
live and work.
As we continue to navigate this unprecedented global
pandemic, General Dynamics continues to attend to
employee health and safety and meeting customer
commitments, while remaining profitable and paying a
steady dividend. Ultimately, the most responsible and
sustainable action we can take for our employees and
communities is to remain vibrant and solvent.
Employee and Community Well-Being 45Honors and Awards"
GD-2021-Sustainability-Report.txt,"Fast Company – 100 Best Workplaces for Innovators
y Handshake – Early Talent Award
y Military Friendly – Military Friendly Employers
y Military Friendly – Military Friendly – Top 10 Supplier Diversity Program
y WayUp – Top 100 Internship Programs
y ClearanceJobs – Top Veteran-Friendly Businesses in National Security
y Professional Women’s Magazine – Top Employer
y Professional Women’s Magazine – Top Supplier Diversity Programs
y National Organization on Disability – Leading Disability Employer
Employee and Community Well-Being 46E N V I R O N M E N T"
GD-2021-Sustainability-Report.txt,"our stakeholders has shaped our thinking as we have grown and evolved our
sustainability program to include greater disclosure of key performance indicators.
This year, for the first time, General Dynamics is making a commitment to reduce our
carbon footprint. Our science-based target to reduce greenhouse gas emissions by 40%
by 2034 is aggressive yet attainable. This is a key element of our broader commitment
to reduce our global environmental impact; protect and promote human rights; increase
the diversity and inclusiveness of our workforce; support the health, welfare and safety"
GD-2021-Sustainability-Report.txt,"he company, allocating
y Total Revenue: $37.9 billion capital, and ensuring a culture of ethics and integrity
y Headquarters: Reston, Virginia that promotes our Ethos and defines how we
engage our employees, communities, customers
y Employees: 101,000 in all 50
and suppliers. Our operating processes and activities
U.S. states and 71 countries
incorporate initiatives to improve diversity, promote
inclusion, reduce emissions and waste, and adhere
to standards that lower risk and drive a healthier
and safer workforce and community."
GD-2021-Sustainability-Report.txt,"a rigorous compliance process,
of respect for basic human rights in our business
including comprehensive due-diligence and approval
activities, and this core value is embedded at all
processes, to ensure we follow these laws.
levels of our business.
Our corporate Ethos, the single most important
element of our culture, demands responsible and
ethical practices, and that includes those that involve
human rights. We respect the dignity of those who
work on our behalf, we do not discriminate, and
we value the diversity of our workforce and"
GD-2021-Sustainability-Report.txt,"20 2.40 1.64 1.50 0.47
*Industry standard numbers are the average of the recordable cases reported by the Aircraft Manufacturing and Shipbuilding
& Repairing industries to the U.S. Department of Labor’s Bureau of Labor Statistics.
Since 2013
Recordable Cases Absence Cases Lost Work Days
-36% -38% -51%
Our Culture 25Diversity, Equity and Inclusion
Across the General Dynamics Corporation, we New Hires
believe that our competitive advantage lies within
Reflecting our ongoing efforts to develop new
our workforce. The unique contributions of each"
GD-2021-Sustainability-Report.txt,"Inclusion
Across the General Dynamics Corporation, we New Hires
believe that our competitive advantage lies within
Reflecting our ongoing efforts to develop new
our workforce. The unique contributions of each
pathways for recruiting diverse talent, the
employee are key in our ability to drive innovation
percentage of women and people of color we hired
and productivity. We proudly support a culture of
in 2020 was higher, in each category, than the
inclusion and encourage a work environment that
proportion comprising our already-diverse workforce."
GD-2021-Sustainability-Report.txt,"lor we hired
and productivity. We proudly support a culture of
in 2020 was higher, in each category, than the
inclusion and encourage a work environment that
proportion comprising our already-diverse workforce.
respects diverse opinions, values individual skills and
We are committed to promoting diversity of
celebrates the unique experiences our employees
thought, experience, perspectives, backgrounds
bring to our workplaces. We track, measure
and capabilities to drive innovation and strengthen
and analyze our workforce trends to establish"
GD-2021-Sustainability-Report.txt,"hos
at work.
We continue to work to improve representation
38% of our new
of diverse talent at all levels of the corporation
hires in 2020 were
so that we reflect the communities in which we
people of color.
operate. Our ongoing efforts include developing
ways to attract and retain diverse talent. We gather
data about overall demographics, promotions,
recruitment and other processes across the
employee lifecycle and use that to inform our
areas of focus for continued improvement in
these areas.
Our Culture 26Total U.S. Workforce Employee Resource Groups"
GD-2021-Sustainability-Report.txt,"diversity councils.
We offer a robust selection of 26 ERGs, serving 10
distinct employee segments. ERGs are supported
and sponsored by senior-level leaders and revered
as a cornerstone of our efforts to build an inclusive
culture across the corporation.
Over the last year, we have seen increased
Management
participation in established groups and have
Female People of Color welcomed several new groups across the
corporation as well.
23% 19%
Employee Demographics
White
Black
73%
Total GD U.S. 11%
Workforce"
GD-2021-Sustainability-Report.txt,"eneral Dynamics is committed to hiring and
retaining the best talent. We believe that our
veterans share our devotion to providing the
Veterans
products and services to our nation that secure
our liberty. This shared belief strengthens our
dedication to hiring, training and upskilling veteran
and active military employees and their families. 21%
Our efforts extend to multiple partnerships with
organizations that support efforts that better
the position of our external and internal Total GD U.S.
military communities. Workforce"
GD-2021-Sustainability-Report.txt,"ion that secure
our liberty. This shared belief strengthens our
dedication to hiring, training and upskilling veteran
and active military employees and their families. 21%
Our efforts extend to multiple partnerships with
organizations that support efforts that better
the position of our external and internal Total GD U.S.
military communities. Workforce
We offer dedicated employee resource groups
and mentoring programs that assist in attracting,
transitioning and retaining this critical part of
our workforce."
GD-2021-Sustainability-Report.txt,"our liberty. This shared belief strengthens our
dedication to hiring, training and upskilling veteran
and active military employees and their families. 21%
Our efforts extend to multiple partnerships with
organizations that support efforts that better
the position of our external and internal Total GD U.S.
military communities. Workforce
We offer dedicated employee resource groups
and mentoring programs that assist in attracting,
transitioning and retaining this critical part of
our workforce.
About 21% of our U.S. workforce are veterans. This"
GD-2021-Sustainability-Report.txt,"ncils,
who have a shared interest in improving the
which include experts from across our businesses,
shipyard.
meet regularly to share ideas and best practices,
leverage resources, and create shared technologies
and processes.
Our Culture 31E N G A G E M E N T A N D D E V E LO P M E N T
Jet Aviation employees in Switzerland display an assortment of protective gear.
Sustainability Report 32Engaging and Developing Talent
Given the competition for talent across the economy, engaging and developing
current employees while preparing for the workforce of the future is essential to"
GD-2021-Sustainability-Report.txt,"orld projects through
engagements, we recruit for internships and early
hands-on experiences.
career positions. Engagement in these efforts
In 2020, we had nearly 700 internships opportunities strengthens our access to diverse talent
across the company and approximately 500 and supports our mission and the missions
traditional apprenticeships in manufacturing of our partners.
or design competencies.
Through these partnerships, we also have the
opportunity to recognize the critical contributions
of our diverse workforce."
GD-2021-Sustainability-Report.txt,"itary.” 180 days of service. Engagement in the program
elevates our access to a highly trained and motivated
— Michael S. McFadden,
Operations Sr. Manager, Completions, candidate pool.
Retired U.S. Army Colonel
” If I hadn’t participated in the SkillBridge
program, the shock factor of the
transition away from active duty would
have been much more significant.”
— Cameron Dunkin, Sr.,
Systems Administrator,
Former U.S. Air Force Staff Sergeant
Engagement and Development 35Onboarding and Mentoring
Meaningful and rapid assimilation into our workforce General Dynamics and our commitment to providing"
GD-2021-Sustainability-Report.txt,"dges and the company match,
charitable giving to date through the
security; assisting those in need; or assisting
program has totaled more than $1.5 million.
veterans and their families. In 2020, General
Dynamics contributed to organizations that target
four areas:
Educational Outreach
y Education & Social Services
y Arts & Culture General Dynamics employees participate in
educational outreach and support, volunteering
y Service Member Support
their time, talent and expertise to teach and train
future members of the workforce. They participate"
GD-2021-Sustainability-Report.txt,"te
Contributions to Community Organizations
in activities such as leading robotics clubs and music
Service Member programs, and mentoring college students and
Support interns. We also participate in the National Merit
Scholarship Program, which awards scholarships to
children of General Dynamics employees annually.
12%
Promoting STEM
Facilitating strong knowledge and
18%
70% understanding of STEM concepts is
crucial to building a pipeline of talent
Arts & for a productive society and our future
Culture workforce. As such, General Dynamics"
GD-2021-Sustainability-Report.txt,"ed resources and support for combat-
wounded, critically ill and catastrophically injured
service members and their families
Employee and Community Well-Being 43COVID-19
Serving Our Communities in Their Time of Need y Communities
Throughout the COVID-19 pandemic, we’ve focused – First Responders: We worked directly with
on protecting our employees and doing what we the federal government to rush our stocks
can to serve our communities. We provide timely of personal protective equipment (PPE) to
communication to our workforce, including posting locations around the country where they"
gd-2022-corporate-sustainability-report.txt,"U.S. government, and with our Aerospace
segment subject to rigorous FAA oversight, we operate in a highly regulated environ-
ment. We are subject to regular audit and review by multiple U.S. government agencies to
assess our compliance with applicable laws, regulations and standards. The U.S. government
also reviews the adequacy of, and compliance with, internal control systems and policies,
including our purchasing, property estimating, material, earned value management and
accounting systems.
Every employee is expected to uphold our high standards. Each employee hears this mes-"
gd-2022-corporate-sustainability-report.txt,"rdous materials.
Air Quality
NASSCO has numerous controls of its
production processes to reduce airborne
NASSCO was the first commercial shipyard in the U.S. to
pollutants and protect the local air quality.
achieve ISO certification for its comprehensive environ-
NASSCO uses welding methods with lower
mental management system.
fume generation and operates exhaust filtra-
tion systems that, over time, have reduced
emissions of hexavalent chromium by 95%.
In addition, its Sustainable Commute Team
is helping reduce emissions from employee"
gd-2022-corporate-sustainability-report.txt,"days of service.
commitment and sustained
Many of the participants go on to become
employer support of National
GD employees.
Guard and Reserve service.
At GDIT, newly hired veterans engage with
other veterans in virtual discussion forums
to assist with their transition to the private
sector. Forums include smaller mentoring
breakout sessions to allow for more hands-
on exploration of relevant support tools.
In 2021, we hired 2,630 veterans
of the U.S. armed forces, 15% of
our total new hires.
Bath Iron Works annual Veteran Employee Recognition event"
gd-2022-corporate-sustainability-report.txt,"iversity
• Arizona State University
• Virginia State University
• Central State University
• Florida A&M University
• George Mason University
At our corporate headquarters in Virginia, we recruit students from diverse
backgrounds enrolled at area universities, including Historically Black Colleges
and Universities. Interns complete a rigorous program that includes leadership
training, multiple assessments, cohort team-building and on-the-job training.
S o ci 4a 3lDiversity, Equity and Inclusion
Our competitive advantage is our workforce. The unique contributions of each employee"
gd-2022-corporate-sustainability-report.txt,"very level of our company.
Our Ethos — rooted in respect — guides how we engage with each other. We believe that
diversity, equity and inclusion make us a better corporation and enhance the value we
deliver to stakeholders.
We work to continually improve representation of diverse talent at all levels of the company
so that we reflect the communities in which we operate. Our ongoing efforts include devel-
oping ways to attract and retain diverse talent. We gather data about overall demographics,
promotions, recruitment and other processes across the employee lifecycle and use that to"
gd-2022-corporate-sustainability-report.txt,"Veterans Disability
Self-ID as a veteran of the armed forces Self-ID as having a disability
17% 6%
E
Change from previous year
44HBCU Partnerships. We have expanded our Diversity Partnerships. We partner with
partnerships with Historically Black Colleges several external organizations to help us
and Universities (HBCUs) and other colleges recruit and develop diverse talent.
with highly diverse student bodies as part
of our ongoing effort to increase diversity
through internships and employment.
Employee Resource Groups. Across our"
gd-2022-corporate-sustainability-report.txt,"panded our Diversity Partnerships. We partner with
partnerships with Historically Black Colleges several external organizations to help us
and Universities (HBCUs) and other colleges recruit and develop diverse talent.
with highly diverse student bodies as part
of our ongoing effort to increase diversity
through internships and employment.
Employee Resource Groups. Across our
business units, we cultivate inclusive work
environments by sponsoring ERGs and
diversity councils. We have 27 ERGs that
serve 10 distinct employee segments, with"
gd-2022-corporate-sustainability-report.txt,"fits; multiple tuition
assistance programs; voluntary benefits,
such as legal insurance; identity theft
protection; critical illness insurance; accident
insurance; and coverage for home, auto
and pets.
To assist employees with financial wellness,
we offer retirement planning counselors
and market-competitive 401(k) programs. In
addition, we offer members access to tax-
free flexible spending accounts and health
savings accounts.
Family Support. We recognize the impor- GDIT employees participate
Our Employee Assistance Program (EAP) tance that families play in the well-being in a blood drive."
gd-2022-corporate-sustainability-report.txt,"ety laws.
Fifty-seven of our sites operate under ISO
45001, widely regarded as the world’s highest
occupational health and safety standard, and
more are in the process of achieving certifi-
cation. Under ISO 45001, workplace safety is
not a stand alone issue but rather an integral
part of the business strategy to maintain a
sustainable organization. As a result of our
efforts, many of our business units have
been recognized for their success in promot-
ing health and safety among their workers.
NASSCO employee"
gd-2022-corporate-sustainability-report.txt,"rovided
more than $1.5 million to
local charities.
• Through the “GDIT Cares” program,
employees performed more than
30,600 hours of service in 2021,
including participating in an annual
back-to-school drive, holiday giving
NASSCO firefighters conduct an annual “Fill the Boot” drive to
campaign and STEM education. GDIT
raise funds for burn survivor support services, including “Camp
also makes a monetary donation
Beyond the Scars” for burn-injured children and burn-
to organizations where a GDIT
employee has volunteered for 15 prevention educational activities."
gd-2022-corporate-sustainability-report.txt,"orale, Welfare and deployed troops as part of Operation Military Matters.
Recreation program
• The National Military Family
Association, which strives to stand up
for, support and enhance the quality
of life for every military family
• The Semper Fi Fund, which provides
urgently needed resources and
support for combat
54Political Engagement
General Dynamics Corporation does not make political contributions.
We offer eligible employees in the U.S. the opportunity to make voluntary political con-
tributions through a political action committee (PAC). The General Dynamics Employee"
gd-2022-corporate-sustainability-report.txt,"n a strictly voluntary, nonpartisan basis and is registered
with the Federal Election Commission (FEC). The PAC’s political contributions are re-
ported to the FEC, where they become a matter of public record and are available for
review online. PAC contributions are subject to a robust internal review process to ensure
they represent the best interests of General Dynamics employees. In addition, internal
financial controls exist to ensure compliance with federally mandated contribution limits.
Our employee PAC invests contributions in candidates based on:"
gd-2022-corporate-sustainability-report.txt,"oyees. In addition, internal
financial controls exist to ensure compliance with federally mandated contribution limits.
Our employee PAC invests contributions in candidates based on:
• Support for national security • Membership on key committees
and aerospace legislating on issues of importance
to General Dynamics
• Representation in districts and states
where General Dynamics facilities, • Leadership positions
suppliers or employees are located
• Prior military or aerospace
industry experience
As a foundational principle, our employee PAC refrains from partisan politics, remaining"
gd-2022-corporate-sustainability-report.txt,"lities, • Leadership positions
suppliers or employees are located
• Prior military or aerospace
industry experience
As a foundational principle, our employee PAC refrains from partisan politics, remaining
focused on national security and on advocating for the success of GD and its employ-
ees. That means we give to members of both parties, and we delink our support from
issues unrelated to our core business.
We do not contribute to presidential campaigns, “super PACs,” or other 527 or 501(c)(4)
organizations. Our employee PAC will not support members of Congress who provoke or"
gd-2022-corporate-sustainability-report.txt,"nable Skies Act. The legislation would provide a
tax credit for SAF that achieves at least a 50% reduction in lifecycle GHG emissions
compared to conventional jet fuel. We have also communicated our support for a
federal grant program administered by the Department of Transportation to lawmakers.
The program would provide funding to help stand up facilities to produce SAF and
develop new aviation technologies that would reduce greenhouse gas emissions.
S o ci 5a 5lCybersecurity and Data Privacy
We are committed to safeguarding employee, customer, national security and third-party"
gd-2022-corporate-sustainability-report.txt,"The corporate information security team makes
regular reports to management and the board on the maturity and performance of our
cybersecurity programs.
As a large, well-known aerospace and defense contractor, we face numerous cybersecurity
threats, including threats to our IT infrastructure and attempts to gain access to information
in our care. We also design and manage IT systems for customers, and many of the products
we manufacture contain IT systems that are subject to those same threats.
Recognizing that every employee plays a critical role on the frontline of our cyber"
gd-2022-corporate-sustainability-report.txt,"d decisions
by these values creates a corporate Ethos of integrity and accountability. Our approach to
sustainability is grounded in this moral foundation.
We take seriously our responsibility to ensure the long-term sustainability of our company
and all of our stakeholders. In this report, we provide an overview of the ways General
Dynamics is striving to be a good steward of its resources. We are making steady
progress toward our 2034 target of a 40% reduction in greenhouse gas emissions. Our
workforce is increasingly diverse. In complete alignment with the U.S. government, we"
gd-2022-corporate-sustainability-report.txt,"ectric prototypes of the
AbramsX main battle tank and StrykerX
armored combat vehicle, as well as new
clean-sheet business jet models that have
significantly improved fuel efficiency.
• L ed the business aviation industry in the
adoption and availability of sustainable
aviation fuel, which can reduce
greenhouse gas emissions by 80% relative
to traditional petroleum Jet-A fuel.
Jet Aviation fueling aircraft
6H I G H L I G H T S
S O C I A L
• I ncreased the percentage of
women and people of color
in both our total workforce and"
gd-2022-corporate-sustainability-report.txt,"on Systems is a leading C5ISR
a major provider of repair services for
integrator of secure communications and
the U.S. Navy.
command and control systems, sensors
and cyber products.
102021FINANCIAL HIGHLIGHTS CUSTOMERS (% of consolidated revenue)*
• Total Revenue: $38.5 billion
70%
• Operating Earnings: $4.2 billion U.S. Government
• Capital Expenditures and Company- 12% U.S. Commercial
Sponsored R&D: $1.3 billion
• Income Tax Expense: $616 million 10% Non-U.S. Government
8% Non-U.S. Commercial
OUR WORKFORCE"
gd-2022-corporate-sustainability-report.txt,"siderations in our operational strategy.
Our corporate headquarters is responsible for setting the strategic direction and governance of
the company, allocating and deploying capital, and ensuring a culture of ethics and integrity that
defines how we engage with our employees, communities, customers and suppliers. Our
operating processes and activities incorporate initiatives to improve diversity, promote
inclusion, reduce emissions and waste, and adhere to standards that lower risk and drive a
healthier and safer workforce and community."
gd-2022-corporate-sustainability-report.txt,"n resilience
enabled each facility to develop plans tailored to their unique situation, while being able to
tap into resources and support from the broader company.
In 2021, Gulfstream announced a $70 million investment
in a new, sustainable 250,000-square-foot aircraft mainte-
nance, repair and overhaul facility in Mesa, Arizona, that
will make extensive use of solar energy, reducing grid
energy consumption by as much as 25%. Gulfstream is
partnering with Arizona State University and Chandler-
Gilbert Community College to establish workforce"
gd-2022-corporate-sustainability-report.txt,"yard that lowers particulates by 30% and reduces
program recovers recyclables before waste
greenhouse gas emissions by more than 80% compared to
shipment. In 2021, the program recycled
traditional diesel fuel.
85% of its hazardous and solid waste
leaving the shipyard.
m e
ntal
E n
vir o n
39S O C I A L
A shipbuilder at NASSCO
40Human Capital
Engaging and Developing Talent. We In addition to ongoing and formal reviews,
engage and develop employees to pre- we employ recognition tools to encourage
pare our workforce for the future. With our innovation, continuous improvement, creativ-"
gd-2022-corporate-sustainability-report.txt,"d trade schools, and internal and Leaders and peers may nominate employees
external subject matter experts, we create to recognize their achievements.
programs that are tailored to our unique
By fostering a culture that celebrates
needs and offer employees development
and rewards excellence, we encourage
opportunities that enhance their present and
employees to bring their best to work
future potential while delivering excellence
every day.
to our customers.
Onboarding and Mentoring. Meaningful
and rapid assimilation into our workforce and"
gd-2022-corporate-sustainability-report.txt,"ls and succession plans, we engage
employees. As agreements expire or issues
and reward employees and develop
arise, we work closely with the bargaining
future leaders to align with strategic
units to seek mutually beneficial outcomes.
objectives tied to company and customer
needs. Wherever possible, compensation
is performance-based. Expectations are
transparent and are reinforced through
ongoing feedback and semi-annual and
annual reviews.
S o ci 4a 1lVeterans. We are committed to recognizing
the unique contributions of those individuals U.S. Workforce"
gd-2022-corporate-sustainability-report.txt,"Expectations are
transparent and are reinforced through
ongoing feedback and semi-annual and
annual reviews.
S o ci 4a 1lVeterans. We are committed to recognizing
the unique contributions of those individuals U.S. Workforce
who have served in defense of our nation,
and providing opportunities to develop skills
that will be valuable to them as civilians.
We offer dedicated ERGs and mentoring
17%
programs that assist in attracting, transi-
VETERANS
tioning and retaining this critical part of our
workforce."
gd-2022-corporate-sustainability-report.txt,"ns are
transparent and are reinforced through
ongoing feedback and semi-annual and
annual reviews.
S o ci 4a 1lVeterans. We are committed to recognizing
the unique contributions of those individuals U.S. Workforce
who have served in defense of our nation,
and providing opportunities to develop skills
that will be valuable to them as civilians.
We offer dedicated ERGs and mentoring
17%
programs that assist in attracting, transi-
VETERANS
tioning and retaining this critical part of our
workforce.
More than 17% of our U.S. workforce are"
gd-2022-corporate-sustainability-report.txt,"iversity
• Arizona State University
• Virginia State University
• Central State University
• Florida A&M University
• George Mason University
At our corporate headquarters in Virginia, we recruit students from diverse
backgrounds enrolled at area universities, including Historically Black Colleges
and Universities. Interns complete a rigorous program that includes leadership
training, multiple assessments, cohort team-building and on-the-job training.
S o ci 4a 3lDiversity, Equity and Inclusion
Our competitive advantage is our workforce. The unique contributions of each employee"
gd-2022-corporate-sustainability-report.txt,", multiple assessments, cohort team-building and on-the-job training.
S o ci 4a 3lDiversity, Equity and Inclusion
Our competitive advantage is our workforce. The unique contributions of each employee
are what drive innovation and productivity. We proudly support a culture of inclusion and
38.7%
In 2021,
encourage a work environment that respects diverse opinions, values individual skills and
celebrates the unique experiences our employees bring to the workplace. We measure of our new U.S. hires
workforce trends to establish accountability for continuing to cultivate diverse, equitable and were people of color."
gd-2022-corporate-sustainability-report.txt,"better corporation and enhance the value we
deliver to stakeholders.
We work to continually improve representation of diverse talent at all levels of the company
so that we reflect the communities in which we operate. Our ongoing efforts include devel-
oping ways to attract and retain diverse talent. We gather data about overall demographics,
promotions, recruitment and other processes across the employee lifecycle and use that to
inform our areas of focus for continued improvement.
Who We Are
The following provides the composition of our U.S. workforce, as reported on our 2021 form"
gd-2022-corporate-sustainability-report.txt,"ORK DAYS
-23% -40%
Jet Aviation employeeHuman Rights
We recognize the fundamental human dignity of all people. As a company with operations
and suppliers around the world, we place a high priority on respect for basic human rights in
our business activities, and this core value is embedded at all levels of our business.
Our corporate Ethos demands responsible and ethical practices, which include respecting
the dignity of the work conducted on our behalf by business partners. We do not discrimi-
nate. We value the diversity of our workforce. We respect the rule of law."
gd-2022-corporate-sustainability-report.txt,"nal activities.
hours or more.
• Bath Iron Works provides frozen
turkeys to employees and area food
banks at Thanksgiving, supporting
community dinners for those in
need. Many employees opt to donate
t ch oe mir
m
tu ur nk ie tyy s
o
t ro
g
aa nre iza
a
tf io oo nd
s
.banks and S o ci 5a 3lEducational Outreach. A key element of
our community outreach is support for ed-
ucation, especially in the STEM fields. Our
employees volunteer their time, talent and
expertise to teach and train future mem-
bers of the workforce, leading robotics clubs"
gd-2022-corporate-sustainability-report.txt,"l Outreach. A key element of
our community outreach is support for ed-
ucation, especially in the STEM fields. Our
employees volunteer their time, talent and
expertise to teach and train future mem-
bers of the workforce, leading robotics clubs
and rocketry competitions, and mentoring
college students and interns. Facilitating
strong knowledge and understanding of
STEM concepts, particularly in underserved
communities, is crucial to building a pipeline
of talent for a productive society and our
future workforce."
GetMediaFileContent.txt,"the U.S. Workforce (%) - 30% 31% 33%
Global Employees Represented by Unions, Work Councils, or Both (%) - 50% 46% 47%
OVERVIEW SASB TCFD UN SDGS CUSTOMER SOLUTIONS ENVIRONMENT PEOPLE AND COMMUNITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)"
GetMediaFileContent.txt,"hours) RT-CH-540a.1 0.077 0.137 0.105
Process Safety Incident Severity Rate (PSISR) RT-CH-540a.1 0.278 0.009 0.086
Operational Safety,
Emergency Preparedness
and Response Number of Transport Incidents (%) RT-CH-540a.2 Not disclosed in 2020 11% 5%
All Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - Not disclosed in 2020 Not disclosed in 2021 ~100%
Total Workforce Across All Locations Represented in Formal Joint
- Not disclosed in 2020 Not disclosed in 2021 ~100%
Management Worker Health and Safety Committees (%)"
GetMediaFileContent.txt,"ard to enhance our disclosure processes and to drive consistency
• Waste
across our businesses and acquisitions. This document aims to provide clear
definitions and methodologies for collecting data at both the facility and
corporate levels. We continue to identify pathways to align our business
practices with a sustainable future.
Overview 3
Celanese 2022–2023 Sustainability IndexSustainability Highlights
ADVANCING SAFE AND SUSTAINABLE CUSTOMER SOLUTIONS INVESTING IN OUR PEOPLE AND COMMUNITIES
• Expanded our Acetyl and Engineered Materials • Provided customers with increased transparency • Volunteered nearly 123,000 employee hours • Invited 4,500 new M&M team members to"
GetMediaFileContent.txt,"or collecting data at both the facility and
corporate levels. We continue to identify pathways to align our business
practices with a sustainable future.
Overview 3
Celanese 2022–2023 Sustainability IndexSustainability Highlights
ADVANCING SAFE AND SUSTAINABLE CUSTOMER SOLUTIONS INVESTING IN OUR PEOPLE AND COMMUNITIES
• Expanded our Acetyl and Engineered Materials • Provided customers with increased transparency • Volunteered nearly 123,000 employee hours • Invited 4,500 new M&M team members to
portfolios to now offer more sustainable options on product sustainability benefits, using mass to benefit local communities. initiate local chapters of Employee Resource"
GetMediaFileContent.txt,"potentials
for energy reductions in select applications
• Advancing our prototype for a refillable contraceptive implant
in partnership with the Bill & Melinda Gates Foundation, which
could benefit women in low- and middle-income countries and
is expected to move to the next stage of development in 2024 SDG 13: CLIMATE ACTION
SDG 10: REDUCED INEQUALITIES
• Increasing our focus on the procurement of renewable electricity and capital
investment projects to reduce our Scope 1 and Scope 2 emissions
SDG 6: CLEAN WATER • Expanding ERGs to include newly integrated M&M team members and promote employee cultural"
GetMediaFileContent.txt,"stainability IndexInvesting in Our People and Communities
Human Capital – Safety and Stewardship – Community Relations
DISCLOSURE METRIC SASB 2020 2021 2022
Board Members Who Are Women (%) - 50% 55% 50%
Board Members Who Are Racially or Ethnically Diverse (%) - 10% 10% 10%
Senior Leadership Who Are Women (%) - 43% 38% 44%
Senior Leadership Who Are People of Color (%) - Not disclosed in 2020 Not disclosed in 2021 13%
U.S. Management Who Are People of Color (%) - 29% 34% 34%
Human Capital Metrics
Average Employee Age (years) - 44 43 43"
GetMediaFileContent.txt,"9% 34% 34%
Human Capital Metrics
Average Employee Age (years) - 44 43 43
Overall Voluntary Attrition Rate (%) - 5% 8% 9.2%
Women in the Global Workforce (%) - 24% 24% 25%
People of Color in the U.S. Workforce (%) - 30% 31% 33%
Global Employees Represented by Unions, Work Councils, or Both (%) - 50% 46% 47%
OVERVIEW SASB TCFD UN SDGS CUSTOMER SOLUTIONS ENVIRONMENT PEOPLE AND COMMUNITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%"
GetMediaFileContent.txt,"NITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)
Workforce Who Are Covered by Formal Collective Agreements
- 50% 46% 47%
Concerning Working Conditions (%)
Labor and Human Rights
Workforce Who Are Covered by Formally Elected Employee Representatives (%) - 50% 46% 47%"
GetMediaFileContent.txt,"ities Health and People Safety
People and Communities 26
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Number of Process Safety Incidents (PSIC) RT-CH-540a.1 8 16 11
Tier 1 and 2 Process Safety Incident Rates (per 200,000 hours) RT-CH-540a.1 0.077 0.137 0.105
Process Safety Incident Severity Rate (PSISR) RT-CH-540a.1 0.278 0.009 0.086
Operational Safety,
Emergency Preparedness
and Response Number of Transport Incidents (%) RT-CH-540a.2 Not disclosed in 2020 11% 5%
All Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - Not disclosed in 2020 Not disclosed in 2021 ~100%"
GetMediaFileContent.txt,"ent
2021–2022 Sustainability 2022–2023 Sustainability
Discussion of Engagement Processes to Manage Risks and Opportunities 2020/21 Sustainability Report,
RT-CH-210a.1 Report, Investing in Our People Report, Engaging
Associated With Community Interests Community Relations
and Communities Our Communities
People and Communities 27
Celanese 2022–2023 Sustainability IndexCALIFORNIA TRANSPARENCY ACT ENVIRONMENTAL, HEALTH,
locations. Assessing and managing risks through the
SAFETY, QUALITY, AND PUBLIC
knowledge and experiences of employee-based teams"
GetMediaFileContent.txt,"ple and Communities 27
Celanese 2022–2023 Sustainability IndexCALIFORNIA TRANSPARENCY ACT ENVIRONMENTAL, HEALTH,
locations. Assessing and managing risks through the
SAFETY, QUALITY, AND PUBLIC
knowledge and experiences of employee-based teams
Our policies expect that all employees and partners POLICY COMMITTEE CHARTER
is another component of our goal to create a safe and
comply with our prohibition of child labor, forced labor,
healthy workplace.
and all other forms of abuse. SASB: RT-CH-320a.2
For Employees: Our employee Total Recordable"
GetMediaFileContent.txt,"loyees: Our employee Total Recordable
DONATIONS AND VOLUNTEERING Incident Rate (TRIR) of 0.28 in 2022 increased due to
Our EHSQPP Committee oversees our practices and
a deterioration of performance attributed to significant
maintains oversight responsibility for EHS topics. See
transformational change experienced during the second
At Celanese, we contribute to our community through
additional details about the membership and authority of
half of the year through acquisition of the M&M business.
the Celanese Foundation, an employee-led nonprofit"
GetMediaFileContent.txt,"sed due to
Our EHSQPP Committee oversees our practices and
a deterioration of performance attributed to significant
maintains oversight responsibility for EHS topics. See
transformational change experienced during the second
At Celanese, we contribute to our community through
additional details about the membership and authority of
half of the year through acquisition of the M&M business.
the Celanese Foundation, an employee-led nonprofit
the committee in the charter, which outlines the purpose
(501©(3)), and our formalized employee volunteer As we proceed through the integration process, we have"
GetMediaFileContent.txt,"d
foundation of our stewardship program—steering our form the foundation for all we do. Our values start with a DAWIR of zero for contractor injuries in 2022. This
actions and decision-making to create a safe, healthy, People and Safety. These two values are centered on our reflected a continuation of the achievement made in 2021.
and environmentally responsible workplace for all. dedication and commitment to each other and to creating We attribute our performance in this area to implementation
Our management, employees, and contractors work a safe and healthy workplace. Employee participation of a robust contractor safety management program."
GetMediaFileContent.txt,"o each other and to creating We attribute our performance in this area to implementation
Our management, employees, and contractors work a safe and healthy workplace. Employee participation of a robust contractor safety management program.
to adhere to the following guiding principles:
and engagement in our stewardship programs are essential
• Take Leadership Actions components of our recipe for achieving performance
excellence. Across Celanese, 100% of our manufacturing
• Operate in Compliance
facilities include employee-based stewardship committees"
GetMediaFileContent.txt,"fety management program.
to adhere to the following guiding principles:
and engagement in our stewardship programs are essential
• Take Leadership Actions components of our recipe for achieving performance
excellence. Across Celanese, 100% of our manufacturing
• Operate in Compliance
facilities include employee-based stewardship committees
where employees and often contractors work together
• Develop Effective Management Systems
to support each other and help us drive stewardship
and Procedures
improvements. We also see active employee participation"
GetMediaFileContent.txt,"ll as vacation and leaves for our employees and • Private, onsite nursing rooms at most locations and collaboration days and work from home days for analysis of our pay practices by third parties to confirm
their families across the globe aligned with local market free access to a service that helps them ship breast eligible employees across the globe. our goal of making equitable decisions.
practice. In the U.S., approximately 97% of our employees milk when they are traveling for business. Our
are enrolled in health care benefits, and we provide basic employee assistance program provides additional"
GetMediaFileContent.txt,"l, mental, and financial health. • Mindfulness coaching programs that build resilience
which works to reduce process safety incidents. balance targets and outline an action plan to meet
and inner strength for employees and support leaders
those goals related to Dutch entities.
Examples of some of our cornerstone benefit offerings: in helping their teams manage stress.
ANTI-DISCRIMINATION STATEMENT
• 24/7 access to free mental health care through a • Our People Care Program, which aids employees
confidential employee assistance program, plus a affected by a disaster by helping with safety and"
GetMediaFileContent.txt,"Our Anti-Discrimination Statement outlines our
targeted vendor solution that connects employees immediate needs and provides access to resources
guiding principles for fostering a work environment that
with qualified clinicians more quickly and helps necessary to recover.
advances inclusivity and equity, which remains a critical
them cope with stress, anxiety, grief, and depression.
business priority for Celanese. For more information,
In addition, we offer development programs to all employees
• Paid time off for every full-time employee. Additionally, please see our website."
GetMediaFileContent.txt,"sources
guiding principles for fostering a work environment that
with qualified clinicians more quickly and helps necessary to recover.
advances inclusivity and equity, which remains a critical
them cope with stress, anxiety, grief, and depression.
business priority for Celanese. For more information,
In addition, we offer development programs to all employees
• Paid time off for every full-time employee. Additionally, please see our website.
to complement numerous other learning opportunities.
each employee is provided two paid days off per year"
GetMediaFileContent.txt,"clusivity and equity, which remains a critical
them cope with stress, anxiety, grief, and depression.
business priority for Celanese. For more information,
In addition, we offer development programs to all employees
• Paid time off for every full-time employee. Additionally, please see our website.
to complement numerous other learning opportunities.
each employee is provided two paid days off per year
Our global Talent Portal houses tools and resources that
for volunteering in their community.
support each employee on their own career path and"
GetMediaFileContent.txt,"rruption training
• Equal Opportunity and Diversity
In 2022, approximately 100% of our active, full-time
among active, full-time employees was approximately 100%.
employees completed the Business Code of Conduct • External Communications
training course, representing a 5% increase in completion
• Financial Integrity and Fraud
rate year-over-year.
Integrity 32
Celanese 2022–2023 Sustainability IndexCOMPLIANCE TRAINING COMPLIANCE MOMENTS
Approximately 100% of management level and above employees,
Employee training is a continued focus for consistent Approximately 100% of full-time employees received"
GetMediaFileContent.txt,"ES
• Expanded our Acetyl and Engineered Materials • Provided customers with increased transparency • Volunteered nearly 123,000 employee hours • Invited 4,500 new M&M team members to
portfolios to now offer more sustainable options on product sustainability benefits, using mass to benefit local communities. initiate local chapters of Employee Resource
across approximately 60% of our product lines. balance methodology, external certifications, and Groups (ERGs), one of our key Diversity, Equity,
increased Life Cycle Analysis (LCA) capabilities. • Conducted a culture survey of our workforce and Inclusion (DE&I) program initiatives, at their"
GetMediaFileContent.txt,"ludes the number of formal enforcement actions received for observed and reported water non-compliance issues.
Denotes that ERM CVS performed limited assurance of our 2021 and 2022 environmental numbers, which serve as the bases for our 2030 GHG, Energy, Water, and Waste targets.
SASB Index 7
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Total Recordable Incident Rate (TRIR) RT-CH-320a.1 0.21 0.17 0.28
Fatality Rate for Direct Employees RT-CH-320a.1 0.01 0.00 0.00
Workforce Health and"
GetMediaFileContent.txt,"Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Total Recordable Incident Rate (TRIR) RT-CH-320a.1 0.21 0.17 0.28
Fatality Rate for Direct Employees RT-CH-320a.1 0.01 0.00 0.00
Workforce Health and
Safety (Safety Metrics)
Fatality Rate for Contract Employees RT-CH-320a.1 0.03 0.00 0.00
2021–2022 Sustainability 2022–2023 Sustainability
Description of Efforts to Assess, Monitor, and Reduce Exposure of 2020/21 Sustainability Report,
RT-CH-320a.2 Report, Instilling a Report, Stewardship:
Employees and Contract Workers to Long-Term (Chronic) Health Risks Workforce Health and Safety"
GetMediaFileContent.txt,"umber of LCAs we perform and have completed LCAs our positive economic impact.
risks are integrated into our core business strategy.
for the majority of our products.
The Environmental, Health, Safety, Quality, and Public
In 2022, we revised our methodology for calculating
Policy (EHSQPP) Committee of the Board makes
economic impact results; our economic impact data
PRODUCT SAFETY AND STEWARDSHIP recommendations for Key Performance Indicators
now excludes small and non-certified businesses, and
(KPIs) to address key topics, such as workforce, process,"
GetMediaFileContent.txt,"- 59,213 (25% recycled) 82,835 (25% recycled) 80,709 (32% recycled)
Waste Management
Hazardous Waste Generated From Remediation Activities or Other
- Not disclosed in 2020 598 782
Extraordinary Events (metric tons (MT))
Non-Hazardous Waste Generated From Remediation Activities
- Not disclosed in 2020 10,964 10,815
or Other Extraordinary Events (metric tons (MT)
Total Weight of Non-Hazardous and Hazardous Waste Recovered (metric tons (MT)) - Not disclosed in 2020 Not disclosed in 2021 29,832[4]
Manufacturing Workforce Across All Locations Who Received Training"
GetMediaFileContent.txt,"rdship – Community Relations
DISCLOSURE METRIC SASB 2020 2021 2022
Board Members Who Are Women (%) - 50% 55% 50%
Board Members Who Are Racially or Ethnically Diverse (%) - 10% 10% 10%
Senior Leadership Who Are Women (%) - 43% 38% 44%
Senior Leadership Who Are People of Color (%) - Not disclosed in 2020 Not disclosed in 2021 13%
U.S. Management Who Are People of Color (%) - 29% 34% 34%
Human Capital Metrics
Average Employee Age (years) - 44 43 43
Overall Voluntary Attrition Rate (%) - 5% 8% 9.2%
Women in the Global Workforce (%) - 24% 24% 25%"
GetMediaFileContent.txt,"ASB 2020 2021 2022
Board Members Who Are Women (%) - 50% 55% 50%
Board Members Who Are Racially or Ethnically Diverse (%) - 10% 10% 10%
Senior Leadership Who Are Women (%) - 43% 38% 44%
Senior Leadership Who Are People of Color (%) - Not disclosed in 2020 Not disclosed in 2021 13%
U.S. Management Who Are People of Color (%) - 29% 34% 34%
Human Capital Metrics
Average Employee Age (years) - 44 43 43
Overall Voluntary Attrition Rate (%) - 5% 8% 9.2%
Women in the Global Workforce (%) - 24% 24% 25%
People of Color in the U.S. Workforce (%) - 30% 31% 33%"
GetMediaFileContent.txt,"n Rate (%) - 5% 8% 9.2%
Women in the Global Workforce (%) - 24% 24% 25%
People of Color in the U.S. Workforce (%) - 30% 31% 33%
Global Employees Represented by Unions, Work Councils, or Both (%) - 50% 46% 47%
OVERVIEW SASB TCFD UN SDGS CUSTOMER SOLUTIONS ENVIRONMENT PEOPLE AND COMMUNITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in"
GetMediaFileContent.txt,"ed by Unions, Work Councils, or Both (%) - 50% 46% 47%
OVERVIEW SASB TCFD UN SDGS CUSTOMER SOLUTIONS ENVIRONMENT PEOPLE AND COMMUNITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)
Workforce Who Are Covered by Formal Collective Agreements"
GetMediaFileContent.txt,"NITIES INTEGRITY ADDITIONAL REPORTING 25
Celanese 2022–2023 Sustainability IndexDISCLOSURE METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)
Workforce Who Are Covered by Formal Collective Agreements
- 50% 46% 47%
Concerning Working Conditions (%)
Labor and Human Rights
Workforce Who Are Covered by Formally Elected Employee Representatives (%) - 50% 46% 47%"
GetMediaFileContent.txt,"E METRIC SASB 2020 2021 2022
Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - ~100% ~100% ~100%
Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)
Workforce Who Are Covered by Formal Collective Agreements
- 50% 46% 47%
Concerning Working Conditions (%)
Labor and Human Rights
Workforce Who Are Covered by Formally Elected Employee Representatives (%) - 50% 46% 47%
Workforce Who Received Regular Performance and Career Development Reviews (%) - Not disclosed in 2020 Not disclosed in 2021 97%"
GetMediaFileContent.txt,"Total Workforce Across All Locations (i.e., Workforce) Represented in
- ~100% ~100% ~100%
Formal Joint Management-Worker Health and Safety Committees (%)
Workforce Who Are Covered by Formal Collective Agreements
- 50% 46% 47%
Concerning Working Conditions (%)
Labor and Human Rights
Workforce Who Are Covered by Formally Elected Employee Representatives (%) - 50% 46% 47%
Workforce Who Received Regular Performance and Career Development Reviews (%) - Not disclosed in 2020 Not disclosed in 2021 97%
Workforce Who Received Training on Preventing Discrimination and"
GetMediaFileContent.txt,"ract Employees - 0.03 0.03 0.00
Total Recordable Incident Rate (TRIR) for Direct Employees RT-CH-320a.1 0.22 0.18 0.28
Safety Metrics
Total Recordable Incident Rate (TRIR) for Contract Employees RT-CH-320a.1 0.19 0.15 0.13
Fatality Rate for Direct Employees RT-CH-320a.1 0.01 0.00 0.00
Fatality Rate for Contract Employees RT-CH-320a.1 0.03 0.00 0.00
2020/21 Sustainability 2021–2022 Sustainability 2022–2023 Sustainability
Description of Efforts to Assess, Monitor, and Reduce Exposure of Employees
RT-CH-320a.1 Report, Workforce Report, Investing in Our People Report, Stewardship:"
GetMediaFileContent.txt,"umber of Process Safety Incidents (PSIC) RT-CH-540a.1 8 16 11
Tier 1 and 2 Process Safety Incident Rates (per 200,000 hours) RT-CH-540a.1 0.077 0.137 0.105
Process Safety Incident Severity Rate (PSISR) RT-CH-540a.1 0.278 0.009 0.086
Operational Safety,
Emergency Preparedness
and Response Number of Transport Incidents (%) RT-CH-540a.2 Not disclosed in 2020 11% 5%
All Operational Sites Covered by an Employee Health and Safety Risk Assessment (%) - Not disclosed in 2020 Not disclosed in 2021 ~100%
Total Workforce Across All Locations Represented in Formal Joint"
GetMediaFileContent.txt,"s
to support each other and help us drive stewardship
and Procedures
improvements. We also see active employee participation
• Operate Safely and Reliably in various risk assessments of process and work activities
at 100% of our manufacturing facilities and laboratory
• Manage Risk
People and Communities 28
Celanese 2022–2023 Sustainability IndexEMPLOYEE WELLNESS PROGRAMS WORKABILITY PAY EQUITY
• Generous parental leave for moms and dads in the
U.S. and the Netherlands who have welcomed a child
To further support our diverse workforce, Celanese In early 2022, Celanese introduced WorkABILITY, Celanese affirms its goal of pay equity, regardless of"
GetMediaFileContent.txt,"of Corporate 530a.1 Sustainability Sustainability Sustainability Charitable Giving and Volunteerism
and Regulatory Positions Related Report, Chemical Report, Operating Report, Operating
Environment to Government Safety With Integrity With Integrity
Regulations
2020/21 Political Political
and/or Policy
Sustainability Engagement Policy Engagement Policy EHSQPP COMMITTEE[1] CMD COMMITTEE[2] NCG COMMITTEE[3] AUDIT COMMITTEE
Proposals
Report, Integrity
that Address 2022 CDP Climate 2023 CDP Climate
Environmental 2021 CDP Climate Change Response Change Response Workforce, Process, Talent Management Talent Management"
GetMediaFileContent.txt,"ustainability provided in the 2022–2023 Sustainability Report and
methods, and metrics used in preparing this report and for 2022–2023 Sustainability
Index primarily focuses on the operations of Celanese Index. Specifically, IA focused on data related to the areas
the metrics contained herein continue to evolve. Therefore,
Report and Index
Corporation and its wholly owned subsidiaries, excluding of Community Relations, Human Resources, Process
consistent with the continuous improvement approach
the M&M acquired business for the fiscal and calendar Safety, Workforce Health & Safety, and Environmental."
GM_2023_SR.txt,"rs and Contractors)
2
1.37 1.33 1.36
0 0
2021 2022 2023 2021 2022 2023
A work-related incident resulting in death. Our target is zero, so that Number of incidents that resulted in injuries or illnesses that required medical
every person who enters a GM facility leaves safe and unharmed. treatment beyond simple first aid treatment per 200,000 work hours. This
helps to identify hazards, eliminate risks and drive reporting for all incidents so
that we can identify and assess areas for improvement.
1 Lost workday case rate is defined as an incident that resulted in an injury or illness that required a worker to be away from work for one full work day or more after the date of injury."
GM_2023_SR.txt,"marking resources, such as 67K
Ethisphere’s World’s Most Ethical Companies®
Evaluation Framework. approximate employees and select
contractor workers who completed ethics
and compliance training
We require all eligible salaried employees to complete Corporate
Required Training courses annually. This is available in seven
languages and we deploy new or refreshed content every year. In One
2023, we achieved a 100% completion rate across our salaried
employees for the required courses, which were:
customized contract worker course"
GM_2023_SR.txt,"of zero emissions. and collaboration, driven by purpose, can policies in place to help guide responsible,
greatest challenges. lead based on our strengths. help change the world. ethical action.
Biodiversity & Ecosystem Health Autonomous Technology & Ethics Climate Risk & Resilience Business Ethics
Circular Economy Climate Risk & Resilience Community Development Responsible Use of Data
Climate Risk & Resilience EV Infrastructure Diversity, Equity & Inclusion Sustainability-Related Compensation
Operational GHG Emissions & Efficiency Employee Health & Well-Being & Incentives"
GM_2023_SR.txt,"and demolition waste. This
waste undergoes a separation and recycling process, enabling
2018 2021 2022 2023 2025
GM’s Zero Waste performance represents the percentage of waste the material to be repurposed as raw material within the
(Baseline) (Goal)
diverted from landfills, incinerators and energy recovery facilities 2000000 construction industry.
compared to our baseline. Our waste management program was
Waste Management Methods
designed with a focus on the Zero Waste International Alliance’s
(ZWIA) definition of zero waste and is based on the ZWIA’s (Million Metric Tons) Employee Engagement"
GM_2023_SR.txt,"iers must be compliant with the IATF
We are committed to upholding human rights across our occupational health and safety. We also expect suppliers to
network of suppliers and have several policies in place, including cascade these or similar requirements to their own value chain. 16949 Quality Standard, which requires responsible
our Supplier Code of Conduct, Human Rights Policy, Conflict supply chain practices as well as policies on
In 2022, we updated our Supplier Code of Conduct to include:
Minerals Policy and Responsible Minerals Sourcing Policy. When employee code of conduct, anti-bribery and ethics"
GM_2023_SR.txt,"nization—and we are consistently improving our more than 760 took intern and co-op roles. We are proud that
recruitment methods to enable each candidate to highlight their our student program has been recognized as a best employer
skills during the application and interview processes. for Gen Z careers and a tech transformer by receiving an Early
To attract and inspire the most qualified and diverse talent, we Talent Award from Handshake.
Our Global Talent Acquisition Team uses various outreach
focus on fostering great employee experiences. We continue to"
GM_2023_SR.txt,"back from across the business to Engineers and the Society of Women Engineers.
By leveraging a network of partnerships and utilizing advanced
improve our approach every day. Our processes focus on
technology, we expand our outreach to diverse candidates. This • Enhancing our outreach through coordination of talent providers,
experiences from the first candidate interaction through the
includes collaborating with community-based organizations and community-based nonprofit and workforce partners.
employee career journey."
GM_2023_SR.txt,"provide an objective paid military leave benefits for special active duty U.S.
platform for our teams to assess skill and behavioral alignment salaried personnel. This is just one way we are demonstrating
with the specific job needs. We also strive to create diverse teams our commitment to an inclusive workplace.
of interviewers who can provide different perspectives when
assessing a candidate.Introduction Strategy Environment Innovation Social Governance Appendix 2023 Sustainability Report 51
Engaging Every Employee Unlocking Everybody’s Potential"
GM_2023_SR.txt,"enabler of our employees’ countries and three capstone projects were awarded
our systems to ensure that all GM employees feel connected to growth and development. We subscribe to a 70–20–10 philosophy
TEP’s Value Add Award for enhancements and
our purpose and our values through impactful, equitable and of learning, where 70% of learning occurs through on-the-
tangible savings in areas of cost, quality, innovation
inclusive experiences. job experiences, 20% through exposure activities, coaching,
mentoring, participation in Employee Resource Groups and customer satisfaction."
GM_2023_SR.txt,"systems to ensure that all GM employees feel connected to growth and development. We subscribe to a 70–20–10 philosophy
TEP’s Value Add Award for enhancements and
our purpose and our values through impactful, equitable and of learning, where 70% of learning occurs through on-the-
tangible savings in areas of cost, quality, innovation
inclusive experiences. job experiences, 20% through exposure activities, coaching,
mentoring, participation in Employee Resource Groups and customer satisfaction.
We collect employee feedback throughout the year that provides"
GM_2023_SR.txt,"ctful, equitable and of learning, where 70% of learning occurs through on-the-
tangible savings in areas of cost, quality, innovation
inclusive experiences. job experiences, 20% through exposure activities, coaching,
mentoring, participation in Employee Resource Groups and customer satisfaction.
We collect employee feedback throughout the year that provides
(ERGs) and other social activities and 10% through formal
critical information to support data-driven decisions that
educational resources.
improve the employee experience and accelerate progress. We The three Value Add projects provided solutions that resulted in"
GM_2023_SR.txt,"our global programs with random sample listening We make learning and development opportunities available to improvements in various aspects of GM’s business. These included:
and targeted surveys at specific business units. Taken together, employees at all levels. GM’s Technical Education Program (TEP),
all of this feedback provides critical information that improves the established in 1984, helps us keep our engineering community on • Improved efficiency, 12% cost savings and improved customer
employee experience. the cutting edge of innovative knowledge. We provide employees satisfaction of the cafeteria services in a GM South America"
GM_2023_SR.txt,"proves the established in 1984, helps us keep our engineering community on • Improved efficiency, 12% cost savings and improved customer
employee experience. the cutting edge of innovative knowledge. We provide employees satisfaction of the cafeteria services in a GM South America
with technical coursework in partnership with top universities with manufacturing complex.
We conducted a “pulse” survey in October of 2023, collecting
impactful automotive and automotive-related research initiatives.
more than 68,000 global salaried and hourly employee responses, Each program has at least one GM-directed component in which • Increased overall productivity and throughput by 13% and"
GM_2023_SR.txt,"ng complex.
We conducted a “pulse” survey in October of 2023, collecting
impactful automotive and automotive-related research initiatives.
more than 68,000 global salaried and hourly employee responses, Each program has at least one GM-directed component in which • Increased overall productivity and throughput by 13% and
representing 74% of employees invited to participate. Results students integrate and apply their coursework knowledge to improved quality in Bay City Global Propulsion Systems—
indicated that despite a year of significant change, our employee generate solutions to improve processes and solve issues resulting Camshaft Final Polishing operation."
GM_2023_SR.txt,"which • Increased overall productivity and throughput by 13% and
representing 74% of employees invited to participate. Results students integrate and apply their coursework knowledge to improved quality in Bay City Global Propulsion Systems—
indicated that despite a year of significant change, our employee generate solutions to improve processes and solve issues resulting Camshaft Final Polishing operation.
engagement remained constant and is consistent with external
in measurable value to GM.
employee listening benchmarking. • Reduced wire harness combinations of the Full-Size Truck"
GM_2023_SR.txt,"lectrical hosted by our innovation lab, iHub, where teams are able to share their unique skills and
alone, employees provided over 21,000 self-ratings College (AMEC) aims to develop a participant’s of employees create, develop and pitch ideas to experiences as well as current and future career
across 9,000 skill areas. Based on the results of an technical skills while also helping them grow as leadership. In 2023, the competition focused on aspirations through their talent profiles. This allows
employee’s assessment, learning paths are curated leaders. AMEC provides a collaborative, low-risk driving toward a circular economy. employees and HR to view curated summaries,"
GM_2023_SR.txt,"etting and providing feedback, our people leaders
development and best practice sharing. are constantly developing in their ability to motivate
and inspire their teams to produce amazing results.Introduction Strategy Environment Innovation Social Governance Appendix 2023 Sustainability Report 53
As part of GM’s commitment to creating inclusive solutions to
Total Rewards
social issues in the communities where we live and work, the GM
Recognition team partnered this year with GM Cares, our global
employee giving program, to support our employees’ passion"
GM_2023_SR.txt,"oughout the year, we ran nine global
donation campaigns encouraging employees to donate their
Total Rewards Program
points to different relief efforts. More than 2,000 unique donors
from 20 countries globally donated more than $200,000 to
Our comprehensive Total Rewards program supports our
approximately 600 nonprofits and charities around the globe.
employees and their families around the globe.
Hinge Health and Onsite Health Clinics
Besides competitive wages, GM’s benefit packages, which vary
by country, can include health insurance, access to employee In 2023, there were As part of GM’s dedication to providing employees with"
GM_2023_SR.txt,"s with
assistance programs, life insurance, disability benefits, profit accessible health care, in August 2023, we launched a digital
sharing, retirement and savings plans, paid time off, tuition exercise therapy program to provide musculoskeletal care
assistance, vehicle discounts and various other offerings. through a virtual platform in partnership with Hinge Health.
See the Sustainability Supplement for more information about our 1.1M Our digital exercise therapy program gives employees and
employee benefits by country. their families the tools they need to conquer joint, back and"
GM_2023_SR.txt,"% 6.4% 6.5% 7.1%
American Indian or Alaskan Native 0.4% 0.2% 0.6% 0.4% 0.2%
Native Hawaiian or Pacific Islander 0.1% 0.1% 0.1% 0.1% 0.0%
Two or More Races 1.1% 1.5% 0.8% 0.8% 1.5%
Do Not Wish to Identify 0.2% 0.3% 0.1% 0.3% 0.3%
Total Racial and Ethnic Minority Groups 37.3% 34.6% 39.9% 23.7% 34.7%
1 Within two levels of our CEO.
2 Executive salaried employees.
3 Non-Executive salaried employees.Introduction Strategy Environment Innovation Social Governance Appendix 2023 Sustainability Report 55
Talent Equity Inclusive Employee Experience GM has 12 ERGs, with chapters spanning the globe and within our"
GM_2023_SR.txt,"also helping us to
• Engaged with talent developer programs that position employees and worked to mandate that all new business process address intersectionality and the interconnectedness of people
candidates with skills aligned with GM’s all-electric future. trainings are reviewed for accessibility prior to launching. and issues. Our ERG Leadership Council helps to strengthen
the fabric of ERGs through shared learning, resources
• Continued our work as a founding member of OneTen, a coalition
Employee Resources Groups (ERGs) and collaboration."
GM_2023_SR.txt,"ing, resources
• Continued our work as a founding member of OneTen, a coalition
Employee Resources Groups (ERGs) and collaboration.
of 60+ companies and leaders seeking to close opportunity gaps
for individuals who do not have four-year degrees. GM’s talent At GM, we know that our employees are the catalysts for change.
strategy is aligned with the objectives of OneTen by broadening One way that employees help transform our culture is through
ERGs also contributed to over 2,250 vehicle sales in
the pool of eligible candidates for certain roles, including by their involvement with our ERGs, which are employee-led, with"
GM_2023_SR.txt,"ies.Introduction Strategy Environment Innovation Social Governance Appendix 2023 Sustainability Report 63
Global Product Safety Speak Up For Safety
Management Process
Our SUFS program gives hourly and salaried employees and
contractors an easy way to report potential vehicle safety issues
and suggest improvements. Concerns are submitted through
a toll-free phone number, a smartphone app, email or the
SUFS website.
Investigate and Analyze We view SUFS submissions by our employees as a measure of
employee engagement in safety issues. By building a culture"
GM_2023_SR.txt,"trian safety, lockout
cognitive biases, such as overconfidence and normalized deviance, procedures). New products and work environments create new
can undermine them. The use of the five Leadership Levers (listen, risks that our employees need to be able to recognize, then act to
Safety Governance empathize, collaborate, lean-in and build trust) is helping our mitigate them.
leaders to drive the business on our continuous improvement
In 2023, we worked in conjunction with subject matter experts
Workplace safety is governed at the highest levels of the company journey on culture improvement. Our employee safety concern"
GM_2023_SR.txt,"able environmental laws and It is imperative that we comply with all applicable statutory,
regulations globally regulatory and permit programs and other environmental
requirements. Compliance issues occasionally arise, and we
treat each allegation of noncompliance seriously. In 2023, we
received 19 Notices of Violation, 18 of which were in the United
States. We paid three penalties over $10,000.Introduction Strategy Environment Innovation Social Governance Appendix 2023 Sustainability Report 77
Environmental Performance Criteria GM has also established policies, procedures and supplier Every new employee working in a plant participates in an"
GM_2023_SR.txt,"ent and performance databases, the Global Automotive Declarable Substance List or the
sessions with internal and external speakers. Outside North
practices that may be more stringent than those required by law. International Material Data System.
America, environmental professionals take a Global Environmental
This supports our work to achieve a base level of environmental
Certification and Training Program focused on our Guiding
performance, regardless of where a facility is located or whether
Employee Environmental Training Environmental Commitments and internal EPCs and industry"
GM_2023_SR.txt,"electronic conflict of
Processes are in place to determine which cases require reporting
interest questionnaire at least once during their employment and
to the Board or Audit Committee.
keep it updated as their personal circumstances change. Board
members who are not employees provide written disclosure of any Speak Up!, GM’s Non-Retaliation Policy, protects GM employees
actual or potential conflicts of interest at least annually. from retaliation when they raise a concern in good faith. Since
the majority of misconduct reports are made to an employee’s"
GM_2023_SR.txt,"verall manufacturing footprint necessary for the success of our
Expenditures Policy, overseen by the GCRC. Through the GCRC,
all-electric vision and carbon neutrality goals.
GM envisions a future where we can all enjoy the freedom and GM’s Board annually reviews all corporate political contributions,
To reach these goals, GM’s Global Public Policy (GPP) organization convenience of vehicle use while also striving for a world with zero GM Political Action Committee contributions, which are funded
leverages the expertise of the broader GM team, industry subject crashes and zero congestion. A combination of AV technology, entirely by voluntary employee contributions, and the process"
GM_2023_SR.txt,"just to direct our own Leading with integrity is an essential part
the vehicles of tomorrow that committed to achieving them. To reach our goal pioneering the first electric starter to assisting company’s transformation; it is also to bring of working toward an all-electric future that
of achieving carbon neutrality in global products drivers in emergencies with OnStar through our everybody in on the journey to a safer, all- is better for people and the environment.
we believe our customers are
and operations by 2040, we plan to continue advanced software technologies, GM has always electric future, including our workforce and As GM drives impactful change by"
GM_2023_SR.txt,"idate interactions. Society of Black Engineers, the Society of Hispanic Professional
We listen carefully to feedback from across the business to Engineers and the Society of Women Engineers.
By leveraging a network of partnerships and utilizing advanced
improve our approach every day. Our processes focus on
technology, we expand our outreach to diverse candidates. This • Enhancing our outreach through coordination of talent providers,
experiences from the first candidate interaction through the
includes collaborating with community-based organizations and community-based nonprofit and workforce partners."
GM_2023_SR.txt,"social issues in the communities where we live and work, the GM
Recognition team partnered this year with GM Cares, our global
employee giving program, to support our employees’ passion
We prioritize a holistic approach to well-being, which to donate to causes important to them. Through an integration
includes support for employees’ physical, emotional between our recognition technology vendor and a global online
workplace giving software vendor, we empowered our global
and financial wellness.
workforce to donate their recognition points to charities through"
GM_2023_SR.txt,"munities where we work and live, Equality Act
focusing on economic well-being, promoting human rights, labor
• The Dialogue Project
rights and social strategies, in service of propelling access for
everyone to participate in an all-electric future. This includes our • Catalyst’s Gender and Diversity KPI Alliance
investments in our communities through many channels including
volunteerism, grant making and our Inclusion Fund. Additionally, • HRC Business Statement on Anti-LGBTQ+ State Legislation
we aim to have our entire global workforce understand our human"
GM_2023_SR.txt,"e about our Corporate Giving strategy.
In 2023, we provided $64 million in grants to nearly 400 U.S.-
based nonprofits to help create inclusive solutions to social issues. 26% 7%
This funding is anticipated to impact over 5 million individuals.
STEM Education Vehicle & Road Safety
See our 2023 Corporate Giving Report for details.
11% 18%
Detroit
Community Development Climate Fund
As home to GM’s global headquarters, Detroit is a key focus
of our Corporate Giving strategy prioritizing education,
workforce development and neighborhood revitalization."
GM_2023_SR.txt,"ise
regularly considering potential updates. Human rights-related impacts to people across our
with potential impacts and prioritization that will likely change
responsibilities are distributed across GM, with senior leaders value chain
over time.
being accountable for setting strategy and overseeing day-to-
day management of human rights matters related to their areas
of focus.
Working Barriers to
2. Validate
Conditions Inclusion
Communicating Our Commitments
Develop and refine
Mobility Equity
We aim to have our entire global workforce understand our human potentially salient human (including EVs and Child"
GM_2023_SR.txt,"ideas exchanged during
This cross-functional group of senior leaders drives GM’s these engagements have helped the Board evaluate and assess
sustainability initiatives throughout the company, from global key initiatives during GM’s ongoing transition to an all-electric
product development, portfolio planning, manufacturing and future. Learn more about these engagements with shareholders
supply chain and purchasing to human resources (including and other stakeholders in our 2024 Proxy Statement.
DEI and other workforce matters), legal, compliance, social and"
GM_2023_SR.txt,"ur ethical performance culture. It is led by the assistant Compliance Liaison program into GM China, GM International, GM
business decisions and activities worldwide. GM takes its ethical
general counsel and chief compliance officer, who reports to Europe and GM South America to further localize compliance and
culture seriously and regularly conducts ethical culture surveys
the executive vice president—legal, policy, cybersecurity and to serve as an additional knowledgeable compliance resource.
across all levels of our global salaried workforce to monitor"
GoldmanSachs-ESG-report-2023.txt,"ver the curriculum through
Marsha is owner of R/E Brokerages of America, which offers real
its award-winning faculty. By expanding the national network of estate, property management, commercial facility management, and
small business owners, BIB alumni will continue to grow their access relocation services. She founded the company in 2021, leveraging her
to business knowledge and support. 20+ years of real estate experience.
Upon entering the One Million Black Women: Black in Business program,
Marsha set a goal to scale her business and hire her first employee."
GoldmanSachs-ESG-report-2023.txt,"Landfilled material4, 12 4% 3% 3% 7%
Waste to energy 28% 42% 39% 36%
Global e-waste (metric tons) ↑ 380 193 321 265
Recycled material 100% 100% 100% 100%
Global construction waste (metric tons) ↑ 723 676 158 4,171
Recycled/Composted material 90% 61% 84% 99%
Landfilled material 10% 25% 16% 1%
Waste to energy 0% 14% 0% 0%
Responsible Sourcing
Paper consumption (million sheets) ↑ 57 51 42 168
Certified new fibers (FSC/SFI) 95% 94% 96% 69%
Post-consumer recycled 3% 3% 3% 22%
New fibers 2% 3% 1% 9%
Paper consumption/employee (sheets) ↑ 1,253 1,051 965 4,583"
GoldmanSachs-ESG-report-2023.txt,"% 39% 36%
Global e-waste (metric tons) ↑ 380 193 321 265
Recycled material 100% 100% 100% 100%
Global construction waste (metric tons) ↑ 723 676 158 4,171
Recycled/Composted material 90% 61% 84% 99%
Landfilled material 10% 25% 16% 1%
Waste to energy 0% 14% 0% 0%
Responsible Sourcing
Paper consumption (million sheets) ↑ 57 51 42 168
Certified new fibers (FSC/SFI) 95% 94% 96% 69%
Post-consumer recycled 3% 3% 3% 22%
New fibers 2% 3% 1% 9%
Paper consumption/employee (sheets) ↑ 1,253 1,051 965 4,583
◊ Reduction in paper consumption/employee from baseline (%)4 -73% -77% -79% n/a"
GoldmanSachs-ESG-report-2023.txt,"h to ensuring FN-IB-510b.4 The firm maintains a Code of Business Conduct and Ethics and requires
Integrity professional integrity, including duty employees to annually certify they have reviewed and will comply with
of care the code. See the Business Standards Committee Impact Report and our
Business Principles for further information.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT 7605 | Metrics and Targets | SASB Index
Topic Accounting Metric Code Response
Investment Banking & Brokerage (continued)
Employee Percentage of total remuneration FN-IB-550b.1 MRT is a regulatory term applied in the UK and Germany, but not"
GoldmanSachs-ESG-report-2023.txt,"n a separate section at the top of our SASB
Index below.
Unless otherwise noted, all data and descriptions apply to our entire firm, not just the businesses
relevant to that sector. We do not currently disclose all metrics included in the standards for these
three sectors, but we will continue to evaluate them in the future. All data is as of or for the year
ended December 31, 2023, unless otherwise noted.
Topic Accounting Metric Code Response
Disclosures Included in Multiple Sectors’ Standards
Diversity & Percentage of gender and racial/ FN-IB-330a.1. US Workforce Demographics"
GoldmanSachs-ESG-report-2023.txt,"integrity, including duty employees to annually certify they have reviewed and will comply with
of care the code. See the Business Standards Committee Impact Report and our
Business Principles for further information.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT 7605 | Metrics and Targets | SASB Index
Topic Accounting Metric Code Response
Investment Banking & Brokerage (continued)
Employee Percentage of total remuneration FN-IB-550b.1 MRT is a regulatory term applied in the UK and Germany, but not
Incentives and that is variable for Material Risk a concept we apply to our global workforce. Within our UK entity"
GoldmanSachs-ESG-report-2023.txt,"See the Business Standards Committee Impact Report and our
Business Principles for further information.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT 7605 | Metrics and Targets | SASB Index
Topic Accounting Metric Code Response
Investment Banking & Brokerage (continued)
Employee Percentage of total remuneration FN-IB-550b.1 MRT is a regulatory term applied in the UK and Germany, but not
Incentives and that is variable for Material Risk a concept we apply to our global workforce. Within our UK entity
Takers (MRTs) workforce only, ~40% of total remuneration awarded to MRTs for 2022"
GoldmanSachs-ESG-report-2023.txt,"ormation.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT 7605 | Metrics and Targets | SASB Index
Topic Accounting Metric Code Response
Investment Banking & Brokerage (continued)
Employee Percentage of total remuneration FN-IB-550b.1 MRT is a regulatory term applied in the UK and Germany, but not
Incentives and that is variable for Material Risk a concept we apply to our global workforce. Within our UK entity
Takers (MRTs) workforce only, ~40% of total remuneration awarded to MRTs for 2022
Risk Taking
performance was variable. Within our German entity workforce only,"
GoldmanSachs-ESG-report-2023.txt,"and
Culture Genesis, among others — to increase its reach among Black women entrepreneurs.
CASE STUDY
Clarkson Estates
Meeting Community Needs in Brooklyn, New York
In December 2023, CAMBA Housing Ventures, a New York City–based affordable and
supportive housing developer, broke ground on a 328-unit affordable housing development
in Prospect Lefferts Gardens in Brooklyn. The development includes 29,000 square feet
of community facility space to host programming focused on economic development,
including workforce training and childcare. The project was made possible by financing from"
hon-esg-report-2023.txt,"tem. initiative. It is our commitment to do more and do better.
Responsible Care companies are industry leaders, playing a
Under VPP, management, labor and OSHA work cooperatively vital part to ensure that the business of chemistry is safe, secure
and proactively to prevent fatalities, injuries and illnesses and sustainable.
through a system focused on hazard prevention and control,
worksite analysis, training, management commitment and Responsible Care is practiced today in nearly 70 countries
worker involvement. To participate, employers must apply to around the world. Program implementation leads to improved"
hon-esg-report-2023.txt,"HE WORKFORCE TRAINING, COMPETENCY AND AWARENESS
Our operating locations rely on comprehensive processes Through careful risk assessment, we determine the necessary
for assessments of hazards that could pose a risk to workers, knowledge for our employees to perform their jobs safely, and
including employees, contractors and visitors. Based on these subsequently create and implement training programs to ensure
assessments, risk mitigation controls are identified, appropriate levels of competency.
implemented and monitored to help ensure effective worker"
hon-esg-report-2023.txt,"ent in the workplace. Upon identification of a risk, we and employee feedback.
implement one or more of the following risk-reducing controls:
eliminate the activity or chemical usage, switch to a lower-risk Training plans are developed based on the learning needs
activity or chemical, install engineered controls, apply assessment to ensure that identified training needs are
administrative controls and institute the use of new or different delivered to achieve the appropriate level of competence
worker personal protective equipment. associated with relevant HSE aspects, impacts, control"
hon-esg-report-2023.txt,"ion
that specializes in supplier diversity tracking, we ensure small This process includes conducting thorough on-site audits that
and diverse suppliers looking to partner with our organization gather information from an on-site walkthrough, employee and
can use the support of our third-party agency to assist with management interviews, and documentation review on payroll
getting certified. Resources are offered through the Supplier information, policies, training logs, permits, verification of
Diversity Portal. waste management procedures and worker’s safety conditions."
hon-esg-report-2023.txt,"milar expressions to identify forward-looking statements. In particular,
such statements may include but are not limited to: (1) statements which may relate to our purpose, ambitions, aims, commitments, targets, plans, and objectives, and sustainability goal progress; (2) environmental,
health, and safety (EHS) data as it relates to the environment, safety performance, management systems, implementation, and regulatory compliance, including data collection systems at applicable sites that track
and collect EHS data through the corporate-wide EHS reporting systems; (3) social data as it relates to employee metrics, social practices and community engagement programs derived from our various databases;"
hon-esg-report-2023.txt,"USTAINABILITY LEADERSHIP CHAIN MANAGEMENT
FEATURE STORY: SANDRA BARBOSA, 62
HEALTH, SAFETY AND THE 27 CHIEF INCLUSION & DIVERSITY OFFICER A FIRM FOUNDATION OF PRODUCT 99
ENVIRONMENT AT HONEYWELL SAFETY AND INTEGRITY
GOING THE DISTANCE WITH 32 I&D IN ACTION 64 CHARTING A PATH FORWARD WITH 101
POLITICAL ACCOUNTABILITY
HEALTH AND SAFETY
FEATURE STORY: HOW TO FORGE YOUR 65
OWN CAREER PATH: WOMEN SHARE
THE ENVIRONMENT: PROTECTING 35
SASB/TCFD INFORMATION 105
THEIR EXPERIENCES
FUTURE GENERATIONS, NOW
HONEYWELL EMPLOYEE NETWORKS 68"
hon-esg-report-2023.txt,"e
Creating Value for our Customer
Experience Processes Business
Planning
Talent
Supply Chain Quote-to-Cash
Management
FUNCTIONAL PROCESSES
Providing Consistent +
Predictable Outcomes
LEARNING + DEVELOPMENT
Training the Futureshaper TeamHONEYWELL COMMITMENT
HOME ESG APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE
OVERVIEW TO ESG
RECOGNIZED FOR SHAPING A BETTER FUTURE
CORPORATE AWARDS 2022
Top 100 Association to Ethisphere Fortune, World’s Data Women’s Choice Women’s Choice Disability:In, Labrador, U.S.
Diversity Advance Collegiate World’s Most Admired Breakthrough Awards, Best Awards, Best Employee Resource Transparency Award"
hon-esg-report-2023.txt,"generate exceptional performance,
ALL HONEYWELL LOCATIONS ARE SUBJECT
is a critical component in how we think about sustainability.
TO INDEPENDENT INTERNAL AUDIT.
The operating system is a lean-based manufacturing system
Climate-related risk is monitored as part of our overall HSEPS with roles and ownership for all employees from the plant floor
risk management. Our General Counsel of HSEPS monitors to the boardroom to engage in careful planning and analysis, ISO 9001 / AS 9100 ISO 45001 / VPP
emerging developments for climate-related risks through a continuous employee engagement in improvement and"
hon-esg-report-2023.txt,"ompetency levels for HSE-
pre-use chemical reviews, ergonomic assessments, personal related activities and employees are deemed competent on the
protective equipment evaluations and inspections, procedure basis of appropriate education, training, qualification and/or
checks for reporting adverse effects from chemicals, and experience. The learning needs assessment considers
routine exposure monitoring for certain chemicals known to assigned responsibilities, abilities, language skills, literacy
be present in the workplace. Upon identification of a risk, we and employee feedback."
hon-esg-report-2023.txt,"s. Overall, we have executed more than
and control systems, automation systems for boilers, LED 950 LED lighting projects for annualized savings of $9.5
lighting, HVAC controls, variable frequency drives, occupancy million representing reductions of 42,350 metric tons of
sensors, metering, and renewable energy. We take a systems- greenhouse gas emissions and 295 BBTU. Honeywell
based approach using technology, operational excellence and continues to implement LED lighting and controls solutions
employee engagement aligned with our operating system throughout our facilities, including interior (office, warehouse"
hon-esg-report-2023.txt,"eshaper to make an
impact, make real connections and make the best you. Built
around an end-to-end approach of plan, attract, develop and
engage, our strategic talent agenda is aligned with business
goals and objectives and holistically supports the acquisition
of new skilled talent while investing in development, growth
and succession of our current Futureshapers. From learning,
development and enabling leadership capabilities, to digital
HR technology transformation and engagement, our talent
strategy encompasses the full employee lifecycle. MAKE THE BEST YOU"
hon-esg-report-2023.txt,"positions.
We recognize the importance of a diverse workforce and hiring managers are provided training and
resources to reinforce their role in bringing diverse talent into the organization.
We invest in internal talent mobility through promotions and internal hiring. Thoughtful succession
planning enabled by a digital succession health dashboard gives managers insight to 10 indicators of
health and viability of succession plans. This helps drive real-time targeted manager actions. Succession
plans are grounded in career pathing and ensure employee career goals are captured through manager"
hon-esg-report-2023.txt,"case studies and best practice resources. We had over • Empower: Monthly people-leader sessions focusing on
9,800 participants in executive, management and functional peer-to-peer best practice-sharing around critical business
development programs, which significantly feeds our strong and talent management priority areas.
roles-filled-by-succession percentage.
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OVERVIEW TO ESG
ENGAGING OUR
FUTURESHAPERS
VOICE OF THE EMPLOYEE"
hon-esg-report-2023.txt,"-leader sessions focusing on
9,800 participants in executive, management and functional peer-to-peer best practice-sharing around critical business
development programs, which significantly feeds our strong and talent management priority areas.
roles-filled-by-succession percentage.
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OVERVIEW TO ESG
ENGAGING OUR
FUTURESHAPERS
VOICE OF THE EMPLOYEE
Listening, learning and taking action is a key component
of our engagement approach. The Voice of the Employee"
hon-esg-report-2023.txt,"ficantly feeds our strong and talent management priority areas.
roles-filled-by-succession percentage.
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OVERVIEW TO ESG
ENGAGING OUR
FUTURESHAPERS
VOICE OF THE EMPLOYEE
Listening, learning and taking action is a key component
of our engagement approach. The Voice of the Employee
(VOE) feedback survey is conducted annually with all global
Futureshapers. It provides data and tools to leaders at all levels
to best drive actionable plans around employee engagement and"
hon-esg-report-2023.txt,"ers engaged in peer-to-peer sharing,
through multiple channels
discussing their personal stories and best practices; and two
live webinars were hosted, Minding Your Mental Health and
Embracing Resilience, with over 5,000 employees participating.
FINANCIAL
Casey is at the forefront of purpose-driven
Understand any financial gaps, set goals and
Available to all employees and their family members around
communication about sustainable technologies. As a
utilize tools and resources to achieve goals
the globe, the Employee Assistance Program provides therapy"
hon-esg-report-2023.txt,"about sustainable technologies and the Futureshapers
opportunities for connection and collaboration while in the
behind the innovations that are helping Honeywell meet
office.
its 2035 sustainability commitment.
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OVERVIEW TO ESG
INCLUSION AND DIVERSITY:
A FOUNDATIONAL PRINCIPLE
I&D PRIORITY AREAS
Inclusion and Diversity (I&D) is a foundational principle at Honeywell, both because it’s the right thing to
do and because it’s a fundamental enabler for our business. From recruitment to employee experience and"
hon-esg-report-2023.txt,"ourish and
innovation to thrive.
With our global programs and inclusive culture, we recruit, develop, retain and promote diverse talent.
We continue to build partnerships with diverse organizations and develop resources to support diverse
employees. All Futureshapers are held accountable to actively support I&D in words and actions.
The company’s Chief Inclusion and Diversity Officer and I&D leaders for each business unit lead three
strategic priority areas:
REPRESENTATION RECOGNITION RETENTION
• Cultivate a workforce that reflects • Be a global employer-of-choice • Create employee development and"
hon-esg-report-2023.txt,"a holds a degree in Business Administration from
Universidade São Judas Tadeu, and a Master’s degree from I also see an opportunity to strengthen the business case for
Universidade Presbiteriana Mackenzie. She recently provided I&D as an enabler for innovation, which is core to Honeywell’s
some of her viewpoints on the future of I&D at Honeywell. success and one of our CEO’s priorities.
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OVERVIEW TO ESG
Q. Honeywell I&D has created numerous employee development opportunities for their members and they support Q. What are your other long-term goals?"
hon-esg-report-2023.txt,"of our CEO’s priorities.
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OVERVIEW TO ESG
Q. Honeywell I&D has created numerous employee development opportunities for their members and they support Q. What are your other long-term goals?
networks. Can you provide an update? us in key elements of our talent development process. Our next
frontier is how do we become business resource groups. My ultimate goal is to help shape a work environment in which
We have nine global employee networks and more than 12,000 Honeywell employees of all backgrounds and cultures leverage"
hon-esg-report-2023.txt,"ltures leverage
employees who are members of at least one network. Q. Are you developing any additional partnerships outside their differences to make Honeywell even more effective.
the corporation?
Open to all employees, these networks foster collaboration To do this, we need to make sure everyone has the Inclusive
and belonging, enabling everyone to share and learn from one We’ve established numerous business partnerships through Leadership Skills to help Honeywell adapt to diverse customers,
another and fully contribute at work and in the community in an our employee networks. Each network has a budget to make markets, ideas and talent. This is one of my main focuses"
hon-esg-report-2023.txt,"lp Honeywell adapt to diverse customers,
another and fully contribute at work and in the community in an our employee networks. Each network has a budget to make markets, ideas and talent. This is one of my main focuses
inclusive and supportive environment. charitable donations to organizations that represent their because inclusiveness permeates our daily routines such as
demographics. Some of those strategic partnerships, including going to lunch or attending meetings. We need to create tools
They include Honeywell AllAbilities Employee Network; Honeywell Black Employee Network and Honeywell Hispanic for employees to help them better understand what it means to"
hon-esg-report-2023.txt,"deas and talent. This is one of my main focuses
inclusive and supportive environment. charitable donations to organizations that represent their because inclusiveness permeates our daily routines such as
demographics. Some of those strategic partnerships, including going to lunch or attending meetings. We need to create tools
They include Honeywell AllAbilities Employee Network; Honeywell Black Employee Network and Honeywell Hispanic for employees to help them better understand what it means to
Honeywell Asian Employee Network; Honeywell Black Employee Employee Network, are expanding outside of the United States. be an inclusive leader – things they should and shouldn’t do."
hon-esg-report-2023.txt,"ily routines such as
demographics. Some of those strategic partnerships, including going to lunch or attending meetings. We need to create tools
They include Honeywell AllAbilities Employee Network; Honeywell Black Employee Network and Honeywell Hispanic for employees to help them better understand what it means to
Honeywell Asian Employee Network; Honeywell Black Employee Employee Network, are expanding outside of the United States. be an inclusive leader – things they should and shouldn’t do.
Network; Honeywell Growing Experience Employee Network;"
hon-esg-report-2023.txt,"ic partnerships, including going to lunch or attending meetings. We need to create tools
They include Honeywell AllAbilities Employee Network; Honeywell Black Employee Network and Honeywell Hispanic for employees to help them better understand what it means to
Honeywell Asian Employee Network; Honeywell Black Employee Employee Network, are expanding outside of the United States. be an inclusive leader – things they should and shouldn’t do.
Network; Honeywell Growing Experience Employee Network;
Honeywell Hispanic Employee Network; Honeywell LGBTQ+ Q. What’s new with Inclusion and Diversity Month? Also, we are looking for employees to actively participate in"
hon-esg-report-2023.txt,"e Network and Honeywell Hispanic for employees to help them better understand what it means to
Honeywell Asian Employee Network; Honeywell Black Employee Employee Network, are expanding outside of the United States. be an inclusive leader – things they should and shouldn’t do.
Network; Honeywell Growing Experience Employee Network;
Honeywell Hispanic Employee Network; Honeywell LGBTQ+ Q. What’s new with Inclusion and Diversity Month? Also, we are looking for employees to actively participate in
Employee Network; Honeywell Veterans Employee Network; providing input on how Honeywell can make its products more"
hon-esg-report-2023.txt,"oyee Network; Honeywell Black Employee Employee Network, are expanding outside of the United States. be an inclusive leader – things they should and shouldn’t do.
Network; Honeywell Growing Experience Employee Network;
Honeywell Hispanic Employee Network; Honeywell LGBTQ+ Q. What’s new with Inclusion and Diversity Month? Also, we are looking for employees to actively participate in
Employee Network; Honeywell Veterans Employee Network; providing input on how Honeywell can make its products more
Honeywell Women’s Employee Network; and Heighten Your I&D Month has been highly successful in introducing and globally accessible. Our AllAbilities Network has developed"
hon-esg-report-2023.txt,"; Honeywell Growing Experience Employee Network;
Honeywell Hispanic Employee Network; Honeywell LGBTQ+ Q. What’s new with Inclusion and Diversity Month? Also, we are looking for employees to actively participate in
Employee Network; Honeywell Veterans Employee Network; providing input on how Honeywell can make its products more
Honeywell Women’s Employee Network; and Heighten Your I&D Month has been highly successful in introducing and globally accessible. Our AllAbilities Network has developed
Professional Experience/Early Career Employee Network. educating employees on the importance of inclusion, and we an “Ideathon” in which employees can submit ideas and"
hon-esg-report-2023.txt,"Karen Mattimore, represents all of the global networks, as well their best and to leverage their differences to make Honeywell promotes usability and allows people with disabilities to actively
as our five Strategic Business Groups and Regions globally. better. To do this, we need to make sure everyone has inclusive participate in our society and business.
leadership skills.
We meet regularly to review progress areas and support Another goal is to better engage with front-line workers. They’re
needed. In July, we held our second Employee Network We continue to apply our I&D philosophy to everything we so critical for our manufacturing operations. To do that, we need"
hon-esg-report-2023.txt,"Charlotte, N.C. More than
wellness. To attract and retain diverse talent, the company 100 of our employees were involved in the event. Futureshapers
aims to showcase its culture and values as well as its shared Honeywell’s story, networked and helped recruit top
commitment to I&D. The Honeywell Futureshapers brand talent. As part of Honeywell’s partnership, Suresh Venkatarayalu,
campaign continues to focus on storytelling featuring a highly Senior Vice President, Chief Technology and Innovation
diverse group of Honeywell employees. It seeks to humanize Officer and Honeywell Hispanic Employee Network (HHEN)"
hon-esg-report-2023.txt,"ommunications, Performance Materials and Technologies
Honeywell technologies shaping the future. We firmly believe (PMT), participated in a leadership panel. Futureshaper Maira
employees’ dedication and ingenuity drives our success and Garcia, Senior Advanced Systems Engineer, Aerospace, received
defines us as a company. a prestigious SHPE Star Award in the Diversity category.
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OVERVIEW TO ESG
HONEYWELL
EMPLOYEE NETWORKS"
hon-esg-report-2023.txt,"formance Materials and Technologies
Honeywell technologies shaping the future. We firmly believe (PMT), participated in a leadership panel. Futureshaper Maira
employees’ dedication and ingenuity drives our success and Garcia, Senior Advanced Systems Engineer, Aerospace, received
defines us as a company. a prestigious SHPE Star Award in the Diversity category.
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OVERVIEW TO ESG
HONEYWELL
EMPLOYEE NETWORKS
HONEYWELL ALLABILITIES EMPLOYEE NETWORK (HAEN)"
hon-esg-report-2023.txt,"Awareness Month, former CEO Darius Adamczyk
joined dozens of CEOs in pledging to hire inclusively, contract with disability-owned business
enterprises and create accessible tools and technology for all.
• Honeywell was named a 2022 Best Place to Work for Disability Inclusion by Disability:IN
and the American Association of People with Disabilities. At the Disability:IN conference,
Honeywell’s Josh Pascoe and Lisa Bickel were named recipients of the 2022 ERG Executive
Sponsor of the Year Award.
• Honeywell’s AllAbilities Employee Network recently hosted a company-wide Accessibility"
hon-esg-report-2023.txt,"deas on how to extend
accessibility within our offerings, communities, facilities and processes.
Anni is an enthusiastic Senior Talent Manager with significant experience in talent
management, accessibility, diversity, equity and inclusion. As a leader in the AllAbilities
Network, Anni advocates for making the world accessible for Honeywell employees,
customers and communities we serve.
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OVERVIEW TO ESG
HONEYWELL ASIAN EMPLOYEE NETWORK (HASEN) HONEYWELL BLACK EMPLOYEE NETWORK (HBEN)"
hon-esg-report-2023.txt,"Fraternity Undergraduate Leadership Institute (ULI)
in June 2022. The 2022 class of nearly 90 scholars representing 78 colleges and universities
• Initiatives such as a South Asian Film Festival, cultural dress days and events with senior
traveled to Honeywell’s global headquarters where they heard from Senior Vice President
leaders highlighted Asian culture for solidarity and knowledge-sharing purposes.
and Chief Financial Officer Greg Lewis, experienced the technology within the headquarters
• Various sites across the globe celebrated cultural holidays such as Chinese New Year, Diwali, building, networked with Honeywell’s Black Employee Network members and learned about"
hon-esg-report-2023.txt,"ers highlighted Asian culture for solidarity and knowledge-sharing purposes.
and Chief Financial Officer Greg Lewis, experienced the technology within the headquarters
• Various sites across the globe celebrated cultural holidays such as Chinese New Year, Diwali, building, networked with Honeywell’s Black Employee Network members and learned about
the Moon Festival, Holi and more. HASEN representatives at each site celebrated with cultural early career programs.
foods and educational materials.
• HBEN, in collaboration with various employee network allies, offered several events, sessions,"
hon-esg-report-2023.txt,"uieter, and more fuel efficient missions. A college entry essay
on microbes used to clean oil spills in the ocean inspired Candy’s path to becoming an
engineer and having a real, practical impact on the world. Today, she’s leading a global
team of engineers that ensures travelers and cargo travel safely, efficiently and on time. In
addition to her engineering role, she also leads HASEN.
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HEIGHTEN YOUR PROFESSIONAL EXPERIENCE (HYPE)/EARLY CAREER HONEYWELL HISPANIC EMPLOYEE NETWORK (HHEN)"
hon-esg-report-2023.txt,"anization’s highest standards win the award. members of Honeywell’s Board of Directors, George Paz and Grace Lieblein. George and Grace
shared their career journeys as Hispanic professionals and their advice to Futureshapers.
• Honeywell was recognized as one of the Top 100 internship programs in 2022 by talent
acquisition companies Yello and Wayup for the company’s efforts to provide opportunities for • HHEN members participated in various Society of Hispanic Professional Engineers initiatives
unconscious bias training, employee network participation, community building and more. throughout the year, including the Southern Methodist University-Cox leadership program and"
hon-esg-report-2023.txt,"uthern Methodist University-Cox leadership program and
the Mentor SHPE resume review.
MEET ESG FUTURESHAPER: KHENDA MCINTEE
Senior IT Analyst Khenda McIntee is always seeking to learn new skills, make connections
and create ideas. She is a member a co-chair of the HYPE network where she fosters a
community for early career professionals to share challenges, resources and best practices.
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HONEYWELL GROWING EXPERIENCE EMPLOYEE NETWORK (HGEN) HONEYWELL LGBTQ+ EMPLOYEE NETWORK"
hon-esg-report-2023.txt,"nd educate employees.
early-career employees navigate the next stage of their careers.
• Honeywell Mexico was awarded the “Best Places to Work LGBTQ+” certification in the Human
Rights Campaign Foundation’s (HRCF) annual Human Rights Campaign Equidad MX:
Programa Global de Equidad Laboral, a survey evaluating LGBTQ+ workplace inclusion within
major Mexican businesses and multinationals.
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OVERVIEW TO ESG
HONEYWELL VETERANS EMPLOYEE NETWORK (HVEN) HONEYWELL WOMEN’S EMPLOYEE NETWORK (HWEN)"
hon-esg-report-2023.txt,"rs in support of recruiting veteran talent to technology professions.
Honeywell.
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OVERVIEW TO ESG
CORPORATE
SOCIAL
RESPONSIBILITY
Honeywell’s global Corporate Social
Responsibility initiatives improve lives and
inspire change in communities around
the world. Our partnerships and programs
emphasize science, technology, engineering
and mathematics (STEM) education;
sustainability; humanitarian relief; and
employee volunteerism – underpinned by our"
hon-esg-report-2023.txt,"NMENTAL SOCIAL GOVERNANCE
OVERVIEW TO ESG
CORPORATE
SOCIAL
RESPONSIBILITY
Honeywell’s global Corporate Social
Responsibility initiatives improve lives and
inspire change in communities around
the world. Our partnerships and programs
emphasize science, technology, engineering
and mathematics (STEM) education;
sustainability; humanitarian relief; and
employee volunteerism – underpinned by our
commitment to advance inclusion and diversity.
By contributing our resources and unique expertise through
employee volunteerism, Honeywell has delivered significant"
hon-esg-report-2023.txt,"L COMMITMENT
HOME ESG APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE
OVERVIEW TO ESG
The initiative supports the United Nations Decade of Ecosystem
SUSTAINABILITY
Restoration, which aims to protect and revive ecosystems
across the globe. Plant the Trees took root in 2022 with an
TAKES ROOT
ambition to plant 1 million saplings across 10 cities by 2032.
On April 22 – globally observed as Earth Day – Honeywell
and Give Me Trees conducted a tree planting event in Pune
Honeywell is committed to minimizing
and Bengaluru. More than 1,000 employee volunteers from"
hon-esg-report-2023.txt,"e on
not only have I been able to make an impact activities that enrich and fulfill me while
on their initiatives, but I have met many new giving back to the community. I am happy
people and learned from those to whom I that Honeywell provides us with the avenue
have volunteered my time.” to accomplish that.”
Sandra Bumstead Sandra Papp
Senior Director, IT ISC Project Management Manager
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HUMANITARIAN RELIEF POWERED BY EMPLOYEE GIVING RELIEF FUND IN RESPONSE TO TURKEY-SYRIA EARTHQUAKE"
hon-esg-report-2023.txt,"red my time.” to accomplish that.”
Sandra Bumstead Sandra Papp
Senior Director, IT ISC Project Management Manager
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OVERVIEW TO ESG
HUMANITARIAN RELIEF POWERED BY EMPLOYEE GIVING RELIEF FUND IN RESPONSE TO TURKEY-SYRIA EARTHQUAKE
When a natural disaster strikes, the Honeywell Humanitarian Relief Foundation (HHRF) acts Following a devastating earthquake in February 2023 on the Turkey-Syria border, causing
quickly, delivering direct assistance to employees and communities in need. The employee- extensive damage and the loss of thousands of lives, we worked with our global humanitarian"
hon-esg-report-2023.txt,"rian Relief Foundation (HHRF) acts Following a devastating earthquake in February 2023 on the Turkey-Syria border, causing
quickly, delivering direct assistance to employees and communities in need. The employee- extensive damage and the loss of thousands of lives, we worked with our global humanitarian
funded nonprofit organization is designed to assist in both the immediate and long-term housing relief partner, Operation USA, to launch the Earthquake Relief Fund to support the region’s rescue
needs of Honeywell employees impacted by a natural disaster. and rebuilding efforts. Through an employee donation campaign and company match, Honeywell"
hon-esg-report-2023.txt,", to launch the Earthquake Relief Fund to support the region’s rescue
needs of Honeywell employees impacted by a natural disaster. and rebuilding efforts. Through an employee donation campaign and company match, Honeywell
contributed more than $320,000 to help those most impacted by the catastrophic natural
Since the HHRF began in 2005, more than $7.7 million in relief assistance has been donated by disaster.
thousands of employees and provided to 2,619 employees. In 2022, the HHRF gave $82,000
to 74 employees. Generous employee donations also helped the HHRF rebuild 930 homes, four"
hon-esg-report-2023.txt,"ent. The Council monitors compliance with Honeywell
policies and applicable laws and regulations, evaluates and
Our Code of Business Conduct is a baseline set of requirements
• Workplace respect, diversity and inclusion monitors trends arising from misconduct investigations,
that defines how we treat employees, customers, suppliers,
promotes awareness of integrity and compliance topics
shareholders and communities around the world. It also
• A work environment in which employees can communicate
throughout the organization, shares insights from employee"
hon-esg-report-2023.txt,"W TO ESG
INTEGRITY AND COMPLIANCE
THERE ARE NO SHORTCUTS
Honeywell has built a legacy of providing a wide range of history; it’s something we should be very, very proud of, and
products and services that solve some of the world’s toughest it’s something that we need to maintain for ourselves, for our
challenges. customers and for the next generation of Futureshapers.”
The pressure to maintain this high level of performance falls on “Put simply, if we compromise on our integrity, our ethics, our
every employee. values, it would be the equivalent of building something really"
hon-esg-report-2023.txt,"lly certify their compliance with its tenets.
Honeywell is committed to obtaining annual Code of Business New employees must complete Code of Business Conduct
HONEYWELL HAS IMPLEMENTED A SUITE
Conduct certification from 100% of all eligible employees at training within 30 days of hire. We also assign other
OF DIGITAL TOOLS AND PROCESSES TO
all levels of the organization, including production employees, comprehensive and mandatory compliance learning within 60
ENABLE THE ANTI-CORRUPTION PROGRAM,
part-time employees and interns. The completion status of this days of hire depending on the new employee’s role and location,"
hon-esg-report-2023.txt,"leveraging a robust Privacy Impact Assessment program
and data lifecycle design practices. Our processes incorporate
TRAINING AND AWARENESS data privacy and cybersecurity starting at the beginning of any
new product development process, in-depth security testing
At Honeywell, we ensure our employees understand data throughout the development process and review before those
protection is everyone’s responsibility. Toward that end, products or services are released, updated or offered for sale to
Honeywell deploys mandatory all-employee training on data Honeywell customers. Our approach to product cybersecurity"
hon-esg-report-2023.txt,", corruption, wages and benefits, air emissions, protection of intellectual
reliable record of our supplier diversity spend. environmental crimes, trade risks, sanctions and other property, environmental impact, reasonable work hours and
Supplier Code of Business Conduct considerations. The human trafficking.
Furthermore, by partnering with this third-party organization
that specializes in supplier diversity tracking, we ensure small This process includes conducting thorough on-site audits that
and diverse suppliers looking to partner with our organization gather information from an on-site walkthrough, employee and"
hon-esg-report-2023.txt,"risk.
• Health and Safety: No health permits or health audits;
blocked, unmarked, or unlighted emergency exits; and
For example, we:
improper or no personal protective equipment
• Environmental: Missing or expired permits, hazardous waste • Practice hedging, forward-buying and lock-pricing to ensure
discharge and improper chemical storage continued supply and pricing stability of critical material
• Monitor geopolitical trends through a tool for universal
grading of active production suppliers
EMPLOYEE TRAINING"
hon-esg-report-2023.txt,"and activities and the public statements of trade associations that of the company’s political activities ensures compliance
contributions to tax-exempt organizations that may use receive membership dues of $50,000 or more from Honeywell with applicable law and alignment with its policies, strategic
funds for political purposes. to assess alignment with the goals of the Paris Agreement. priorities, Code of Business Conduct and values.
Honeywell issued a publicly available report that describes
• Details regarding Honeywell’s exclusively employee-funded"
hon-esg-report-2023.txt,"tric tons CO e/$M revenue 58.7 49.5
2
Scope 2 GHG emissions, market-based, metric tons CO e 808,985 694,255
2
Scope 3 GHG emissions2, select categories, metric tons CO e
2
Purchased goods and services 15,324,871 16,222,277
Capital goods 571,932 471,091
Greenhouse Gas (GHG)
Fuel and energy-related activities (not included in Scope 1 and 2) 367,463 349,765
Emissions1
Upstream transportation and distribution 311,035 876,674
Waste generated in operations 107,601 95,754
Business travel 61,194 72,177
Employee commuting 102,838 106,537"
hon-esg-report-2023.txt,"s
Safety Assurance
Personal Protection
Electric Vehicles Sensors
Warehouse Automation
Command and Control
Electrification in Aero
Methodology for identifying ESG-oriented solutions Low Global Warming Potential Molecules Carbon Capture and Storage
is available at investor.honeywell.com (see ESG/ESG
Information/Identification of ESG-Oriented Offerings). Renewable Fuels Hydrogen
Honeywell | Commitment to ESG | 12HONEYWELL COMMITMENT
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OVERVIEW TO ESG
HONEYWELL DELIVERS SOLUTIONS FOR saving efficiencies in data collection and increases workforce"
hon-esg-report-2023.txt,"al reporting requirements in their jurisdictions. Based
on this data, our global Total Case Incident Rate (TCIR),
the number of occupational injuries and illnesses per 100
employees, was 0.20 at the end of 2022. Utilizing U.S. Bureau
of Labor Statistics, Honeywell’s safety record is more than four
times better than the weighted average TCIR of the industries
in which it operates.
Honeywell | Environmental | 32HONEYWELL COMMITMENT
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OVERVIEW TO ESG
PROTECTING THE WORKFORCE TRAINING, COMPETENCY AND AWARENESS"
hon-esg-report-2023.txt,"t included more than tripling the in-house team to optimize search capabilities for
key levels and positions. Assessments were further implemented for internal and external applicants, aiding
in identifying the best talent for open roles and enabling Futureshapers to develop and grow their careers at
Honeywell. Assessment support materials included recruiter and hiring manager training and the addition of
150 internal coaches to support new hires and internal candidates not hired for positions.
We recognize the importance of a diverse workforce and hiring managers are provided training and"
hon-esg-report-2023.txt,"ins top
talent, improves performance and distinguishes the company as
a great place to work.
In our most recent survey, we had a 85% response rate across
the company globally with over 90,000 written comments.
Insights gained showed Futureshapers are excited about the
future of Honeywell, how their role contributes to the company’s
success and how committed they are to customer’s needs.
Honeywell | Social | 59HONEYWELL COMMITMENT
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OVERVIEW TO ESG
For employees in the United States, this year’s survey also To support the diversity of our workforce across the globe,"
hon-esg-report-2023.txt,"s, comprehensive mental health benefits to those
connection to the planet. Scouting and family taught her
enrolled in the U.S. medical plan, virtual mental health options
that even small efforts such as recycling can have a large
and navigation tools to improve access and speed of care; and
impact when we commit to it together. Now she’s taking INDIVIDUAL
preventive/mental health resilience programs.
the message to the Honeywell organization and beyond Programs and policies that provide support
in an inviting and inclusive way. As a lead project of our diverse workforce"
hon-esg-report-2023.txt,"ourish and
innovation to thrive.
With our global programs and inclusive culture, we recruit, develop, retain and promote diverse talent.
We continue to build partnerships with diverse organizations and develop resources to support diverse
employees. All Futureshapers are held accountable to actively support I&D in words and actions.
The company’s Chief Inclusion and Diversity Officer and I&D leaders for each business unit lead three
strategic priority areas:
REPRESENTATION RECOGNITION RETENTION
• Cultivate a workforce that reflects • Be a global employer-of-choice • Create employee development and"
hon-esg-report-2023.txt,"to tell us about the lawyers and other professionals he would
OFFICER AT
speak with while a salesman in Brazil. He would ask them about
their careers, and sharing those stories with us opened a whole
HONEYWELL
new world of what I could accomplish if given the opportunity. I
believe that’s true for everyone with a dream.
Having begun my career at Honeywell as a student and a
Sandra is Honeywell’s Chief Inclusion & Diversity Officer. She business analyst before transitioning to Human Resources, I
has more than 18 years of experience with Honeywell, having saw first-hand the value of a diverse workforce. When I arrived"
hon-esg-report-2023.txt,"e we
work and live.
Honeywell | Social | 73HONEYWELL COMMITMENT
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OVERVIEW TO ESG
SHAPING THE NEXT
GENERATION OF
INNOVATORS
Honeywell has partnered with organizations
around the world to make science, technology,
engineering and math (STEM) accessible
and engaging to our next generation
of Futureshapers. These programs and
opportunities help put learning into action
to inspire young people to pursue studies
and careers in STEM-related disciplines.
Every community needs a STEM-trained workforce of diverse"
hon-esg-report-2023.txt,"nt to go to their school’s win with their “Packseez for your Snackeez” idea, which involves
sustainability efforts, as well as recognition during halftime of a reusable food and drink container fans could be rewarded for
the game. Students from Thomasboro Academy clinched the using on game day.
Honeywell | Social | 76HONEYWELL COMMITMENT
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OVERVIEW TO ESG
VOLUNTEERING
FOR THE
GREATER GOOD
Honeywell’s annual Global Volunteering Month is a tradition
that encourages our entire workforce to put their time and"
hon-esg-report-2023.txt,"er into the approval system. Honeywell also conducts continuous
payment. monitoring of suppliers through its supplier due diligence
program.
Honeywell’s anti-corruption organization is led by our Vice
President and General Counsel for Anti-Corruption, who
supervises a team of professionals with diverse backgrounds INTEGRITY AND ETHICS CERTIFICATION, TRAINING
in law, auditing and analytics. The team is dispersed globally AND COMMUNICATION
with on-the-ground presence in key geographies. Honeywell
also has a due diligence and analytics center of excellence To hold our workforce to Honeywell’s integrity and ethics"
hon-esg-report-2023.txt,"ly High Baseline 20,986 thousand cubic meters3
RT-CH-140a.1
Water Stress 23% in water-stressed regions
Water Management
Description of water management risks and discussion of strategies and practices Wastewater and Effluent Management
RT-CH-140a.3
to mitigate those risks and Water Stewardship
Hazardous Waste Management Amount of hazardous waste generated RT-CH-150a.1 13,414 metric tons3
Total recordable incident rate (TRIR) for (a) direct employees and (b) contract employees RT-CH-320a.1 0.204
Workforce Health & Safety"
hon-esg-report-2023.txt,"er Management
Description of water management risks and discussion of strategies and practices Wastewater and Effluent Management
RT-CH-140a.3
to mitigate those risks and Water Stewardship
Hazardous Waste Management Amount of hazardous waste generated RT-CH-150a.1 13,414 metric tons3
Total recordable incident rate (TRIR) for (a) direct employees and (b) contract employees RT-CH-320a.1 0.204
Workforce Health & Safety
Description of efforts to assess, monitor, and reduce exposure of employees and
RT-CH-320a.2 Protecting the Workforce"
hon-esg-report-2023.txt,"ater withdrawal, thousand cubic meters 19,600 20,986
% withdrawal in water-stressed locations, as defined by SASB 26% 23%
Water Management
Projects completed in water-stressed locations since 2013 180 185
Water saved from projects in water-stressed regions since 2013, thousand cubic meters 620 625
Sustainability Projects Number of sustainability projects completed since 2010 6,100 6,300
Total recordable incident rate (TRIR) for direct employees 0.25 0.20
TRIR weighted industry average 1.72 1.73
Workforce Health and Safety6 Total lost workday case incident rate (LWCIR) 0.1 0.1"
hon-esg-report-2023.txt,"01 / OHSAS 18001 / VPP 37% 38%
Number of sites with ISO 50001 17 26
Honeywell | ESG Data | 116HONEYWELL COMMITMENT
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OVERVIEW TO ESG
ESG Data Sheet (v 23.09.20)
Category Metric 2021 2022
Number of directors 10 10
Number of independent directors 9 9
Number of women 3 4
Number of men 7 6
Board of Directors9
Number of people of color 4 4
Asian 1
Black 2 2
Hispanic 2 1
Number of employees (global) 99,000 97,000
Number of employees (U.S.) 34,000 34,000
Women, % of total workforce (global) 29.50% 29.50%"
hon-esg-report-2023.txt,"ISO 50001 17 26
Honeywell | ESG Data | 116HONEYWELL COMMITMENT
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OVERVIEW TO ESG
ESG Data Sheet (v 23.09.20)
Category Metric 2021 2022
Number of directors 10 10
Number of independent directors 9 9
Number of women 3 4
Number of men 7 6
Board of Directors9
Number of people of color 4 4
Asian 1
Black 2 2
Hispanic 2 1
Number of employees (global) 99,000 97,000
Number of employees (U.S.) 34,000 34,000
Women, % of total workforce (global) 29.50% 29.50%
Men, % of total workforce (global) 70.50% 70.50%"
hon-esg-report-2023.txt,"ELL COMMITMENT
HOME ESG APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE
OVERVIEW TO ESG
ESG Data Sheet (v 23.09.20)
Category Metric 2021 2022
Number of directors 10 10
Number of independent directors 9 9
Number of women 3 4
Number of men 7 6
Board of Directors9
Number of people of color 4 4
Asian 1
Black 2 2
Hispanic 2 1
Number of employees (global) 99,000 97,000
Number of employees (U.S.) 34,000 34,000
Women, % of total workforce (global) 29.50% 29.50%
Men, % of total workforce (global) 70.50% 70.50%
Undisclosed, % of total workforce (global) ~0.0% ~0.0%"
hon-esg-report-2023.txt,"rce (global) ~0.0% ~0.0%
Human Capital10 Women, % of executives (global) 26.80% 25.90%
Men, % of executives (global) 73.20% 74.10%
Undisclosed, % of executives (global) 0.00% 0.00%
Women, % of other managers (global) 20.60% 21.40%
Men, % of other managers (global) 79.30% 78.60%
Undisclosed, % of other managers (global) 0.10% ~0.0%
Honeywell | ESG Data | 117HONEYWELL COMMITMENT
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OVERVIEW TO ESG
ESG Data Sheet (v 23.09.20)
Category Metric 2021 2022
White, % of total workforce (U.S.) 66.20% 64.60%"
hon-esg-report-2023.txt,"of executives (global) 26.80% 25.90%
Men, % of executives (global) 73.20% 74.10%
Undisclosed, % of executives (global) 0.00% 0.00%
Women, % of other managers (global) 20.60% 21.40%
Men, % of other managers (global) 79.30% 78.60%
Undisclosed, % of other managers (global) 0.10% ~0.0%
Honeywell | ESG Data | 117HONEYWELL COMMITMENT
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OVERVIEW TO ESG
ESG Data Sheet (v 23.09.20)
Category Metric 2021 2022
White, % of total workforce (U.S.) 66.20% 64.60%
People of Color, % of total workforce (U.S.) 33.80% 35.40%"
HP-esg-report-2023.txt,"medy 162 Patient privacy and security
56 Repair, reuse, and recycle
13 Stakeholder engagement 104 Communicating with stakeholders
Integrity 61 Waste 163 Community giving and volunteerism Appendix
16 ESG materiality 105 Strategic partnerships
164 HP Foundation programs
Appendix 63 Forests 106 Supply chain workers 186 About this report
165 Disaster recovery and resilience
64 HP’s path to forest positive 106 Commitments, policies, and disclosure 188 Policies and standards
166 Employee volunteerism
65 Engineering efficient paper consumption 107 Worker rights 189 Independent accountants’ review report"
HP-esg-report-2023.txt,"dends
A school for leaders built on Agility, Customer
2023 HP Sustainable Talent & Culture
Centricity, and Ambition See our full financial performance.
Impact Report
005 hp.com/sustainableimpact2023 highlights
Introduction Climate Action Human Rights Digital Equity and Philanthropy
Letter from our president
and CEO
Welcome
About HP 27% 486K 6.4M
2023 highlights
Innovating for sustainability
reduction in HP value chain workers reached through human more individuals reached across six
Recognition
greenhouse gas (GHG) emissions rights awareness and worker countries through 17 nonprofits who"
HP-esg-report-2023.txt,"tion
Social
Sustainable Impact
Child labor and Child labor Supply chain (upstream) Applying human rights due diligence to ensure forced labor practices and child labor Child Labor Human rights due diligence
Strategy forced labor Forced labor HP operations are not used within HP or by our suppliers, engaging with rightsholders, and remedying Forced or Compulsory Supply chain workers
where we caused or contributed to the impact.
Governance Labor Responsible minerals program
Stakeholder engagement
Worker health Hazard risk Supply chain (upstream) Working to create a healthy, safe, and secure working environment by identifying Occupational Health Health and safety"
HP-esg-report-2023.txt,"version), with
Introduction the world. personnel, and our global EHS team provides 16 as part of our global ISO 14001 certificate. Twelve
HP’s EHS management system aligns with the
guidance and oversight. We ensure our employees facilities, including 50% of HP manufacturing sites,
Sustainable Impact
Our Environmental, Health and Safety (EHS) Policy American National Standards Institute Z10 and feel able to remove themselves from situations they were certified to ISO 45001:2018 for occupational
Climate Action (now available in Chinese, Korean, and Spanish) ISO 14001 standards to drive environmental believe are unsafe. Joint management–worker health health and safety."
HP-esg-report-2023.txt,"ety committees exist in some locations, and
In 2023, about 2,200 employees and agency
Our goals HP employees and contractors and all operational plan–do–check–act, we have established procedures we regularly discuss relevant policies, processes, and
contractors took part in 20 instructor-led courses and
Carbon sites) help us manage our environmental impact, for reviewing, modifying, and incorporating workplace regulatory compliance with employees.
completed approximately 23,000 sessions of web-
Water improve worker safety, verify progress toward our environmental hazards processes into our EHS"
HP-esg-report-2023.txt,"2023 HP Sustainable we drive better performance and attract and retain
Impact Report top talent. Our wellness program supports the broad
086 hp.com/sustainableimpactHUMAN RIGHTS | OUR GOALS
Our goals
Goal Progress in 2023 SDGs Goal Progress in 2023 SDGs
Introduction
Empowered workers Culture of inclusion and belonging
Sustainable Impact
Climate Action Reach one million workers through 486K workers reached through 2023. SDG8, Maintain higher than 90% rating 88% rating achieved. Learn more. SDG8
2030 worker empowerment programs by Learn more. SDG10 22003300 on internal inclusion index for all"
HP-esg-report-2023.txt,"d by our ongoing risk and impact assessments,
we take steps to cease, mitigate, or prevent adverse
Policies and commitments
Our human rights due diligence program impacts on people and communities.
Training
is grounded in the UNGPs; we identify
Tracking implementation and results
and assess potential and actual adverse Audits, assessments, and risk
We monitor our operations and supply chain for
impacts throughout our value chain. We management
performance through the use of audits, assessments,
prioritize our efforts by focusing on our Salient human rights issues and worker voice initiatives."
HP-esg-report-2023.txt,"s,
Our goals workers’ ability to resign at any time.
languages) advances our commitment to respecting However, we recognize that technology we comply with relevant sanctions,
Governance and human rights, engaging with rightsholders, and
accountability Supply Chain Foreign Migrant can also be used for unintended restrictions, and embargoes imposed by
embedding our approach throughout our business
Human rights due diligence purposes or in contexts that create national governments or international
and value chain. This policy and our Sustainable Worker Standard"
HP-esg-report-2023.txt,"n workers adverse human rights impacts. organizations across our worldwide
Impact strategy recognize that social and
Responsible minerals environmental issues are interconnected and often Foreign migrant workers are vulnerable to exploitative operations. In all of our business, we
We sell PCs and printers to consumers,
program
share human rights dimensions. labor practices and forced labor. Our Supply Chain prioritize the highest standards of
Our employees businesses, and governments worldwide.
Foreign Migrant Worker Standard addresses"
HP-esg-report-2023.txt,"s dimensions. labor practices and forced labor. Our Supply Chain prioritize the highest standards of
Our employees businesses, and governments worldwide.
Foreign Migrant Worker Standard addresses
corporate ethics, and we operate in strict
Culture, equity, Supplier Code of Conduct these risks in our supply chain by requiring direct These products and technologies are
and diversity accordance with all applicable laws
employment of foreign migrant workers by our widely available in the market from
Data HP’s SCoC outlines HP’s expectations for contracted suppliers, prohibiting retention of worker passports and regulations."
HP-esg-report-2023.txt,"ty, Supplier Code of Conduct these risks in our supply chain by requiring direct These products and technologies are
and diversity accordance with all applicable laws
employment of foreign migrant workers by our widely available in the market from
Data HP’s SCoC outlines HP’s expectations for contracted suppliers, prohibiting retention of worker passports and regulations.
Digital Equity and Philanthropy suppliers. The SCoC incorporates international and personal documentation, and requiring the
Integrity labor and human rights principles and outlines HP’s elimination of worker-paid recruitment fees."
HP-esg-report-2023.txt,"argain collectively, and to engage in peaceful rights commitments, including those addressing
assembly; and (iii) to a workplace free of harassment responsible minerals sourcing, human resources,
and unlawful discrimination. The SCoC requires culture, equity, and diversity, racial equality, privacy
suppliers (and their suppliers) to acknowledge and and data protection, accessibility, and social and
implement it. environmental responsibility.
We comply with applicable local laws and regulations.
Contingent Worker Code"
HP-esg-report-2023.txt,"s,
and unlawful discrimination. The SCoC requires culture, equity, and diversity, racial equality, privacy
suppliers (and their suppliers) to acknowledge and and data protection, accessibility, and social and
implement it. environmental responsibility.
We comply with applicable local laws and regulations.
Contingent Worker Code
Where our human rights commitments go further than
of Conduct local laws, we follow the higher standard. In situations
where laws are silent or run contrary to our human
HP’s Contingent Worker Code of Conduct applies to rights principles, we comply with the law while working"
HP-esg-report-2023.txt,"explaining human rights working hours and wages.
Human rights due diligence and why they matter, as well as highlighting our legacy
Our commitment to training is not limited to our own
Supply chain workers of respecting human rights. We also have an internal
employees. We work to provide training opportunities
Responsible minerals website to provide human rights–related materials
to our suppliers and their workers, including training
program and resources for HP’s sales organization to educate
covering topics such as worker wellbeing, rights and"
HP-esg-report-2023.txt,"entity and the data, capturing information and evidence that enable
nature of the prioritized risks. The objective of an the implementation of policies and procedures to be
unannounced audit is to preemptively visit in order to assessed. Finally, the auditor conducts interviews with
assess, identify, and mitigate potential risks without workers and supervisors to assess the rightsholders’
prior notice. They are a useful tool to help ensure a perspectives and experiences working in the facility.
more comprehensive understanding of day-to-day This worker feedback is examined to help identify"
HP-esg-report-2023.txt,"s
Governance and is assigned and an investigation takes place. The areas for further development, such as continuing to
mechanism and HP ensured the resolution of these
accountability scope of an investigation is usually narrow and limited remove barriers to users accessing (and trusting in) Accessible
issues by collaborating with the suppliers. The NGO Known to all stakeholders groups, providing adequate
Human rights due diligence to a specific aspect of our operations, a supplier, our system.
and the worker together determine when a grievance assistance for those who face barriers to access."
HP-esg-report-2023.txt,"ccountability scope of an investigation is usually narrow and limited remove barriers to users accessing (and trusting in) Accessible
issues by collaborating with the suppliers. The NGO Known to all stakeholders groups, providing adequate
Human rights due diligence to a specific aspect of our operations, a supplier, our system.
and the worker together determine when a grievance assistance for those who face barriers to access.
Supply chain workers or a specific location. The approach involves a
is closed, ensuring that the worker is satisfied with Consistent with the UNGPs, we are committed"
HP-esg-report-2023.txt,"ng with including our workers and suppliers’ workers (and affected stakeholders and rightsholders, and how
stakeholders about human rights topics
Sustainable Impact human rights experts and rightsholders, their representatives), investors, suppliers, and other an overreliance on mobile apps as an engagement
business partners, local communities, customers, tool can result in some workers being left out. This through the following channels:
Climate Action and partner directly with groups based on
peer companies, public policymakers, industry feedback was regarding our worker wellbeing survey,"
HP-esg-report-2023.txt,"ders about human rights topics
Sustainable Impact human rights experts and rightsholders, their representatives), investors, suppliers, and other an overreliance on mobile apps as an engagement
business partners, local communities, customers, tool can result in some workers being left out. This through the following channels:
Climate Action and partner directly with groups based on
peer companies, public policymakers, industry feedback was regarding our worker wellbeing survey,
their expertise.
Human Rights bodies, civil society organizations (CSOs), sector a worker voice initiative meant to enhance our human Executive management and"
HP-esg-report-2023.txt,"her an overreliance on mobile apps as an engagement
business partners, local communities, customers, tool can result in some workers being left out. This through the following channels:
Climate Action and partner directly with groups based on
peer companies, public policymakers, industry feedback was regarding our worker wellbeing survey,
their expertise.
Human Rights bodies, civil society organizations (CSOs), sector a worker voice initiative meant to enhance our human Executive management and
Our mission In 2023, we engaged with multiple stakeholders to gain experts and others. We communicate our human rights due diligence through direct worker feedback. leadership updates, including"
HP-esg-report-2023.txt,"was part
Our human rights efforts benefit from the valuable
Culture, equity, of a critical review of our human rights commitments
and diversity insight gained from our regular engagement with a
and efforts. One example of stakeholder feedback
Data Corporate statements
and disclosures
Digital Equity and Philanthropy
Integrity
Appendix
Public speaking events
Mandatory employee training
on subjects such as privacy
and integrity
Employee resources such
as human rights websites,
trainings, and tools
Worker voice and wellbeing surveys"
HP-esg-report-2023.txt,"technology and consumer brands that
Introduction to drive progress by broadening and expanding our impact.
aims to rapidly decrease the volume of plastic litter entering the ocean by collaboratively
Sustainable Impact and transparently developing the first global network of ocean-bound plastic supply chains.
Climate Action Bluenumber: A nonprofit corporation that develops technological tools to facilitate data- Consortium members created the NextWave Plastics Framework for Socially Responsible
driven human rights due diligence. The technology enables direct worker voice feedback Ocean-Bound Plastic Supply Chains, a set of social responsibility guidelines to help brands"
HP-esg-report-2023.txt,"ological tools to facilitate data- Consortium members created the NextWave Plastics Framework for Socially Responsible
driven human rights due diligence. The technology enables direct worker voice feedback Ocean-Bound Plastic Supply Chains, a set of social responsibility guidelines to help brands
Human Rights
to supplement information on working conditions identified through social audits. It also and other organizations respect the human rights of all workers across the ocean-bound
Our mission
promotes “self-sovereign” digital identity, digital equity, and worker-owned data. Learn more plastic supply chain."
HP-esg-report-2023.txt,"ty guidelines to help brands
Human Rights
to supplement information on working conditions identified through social audits. It also and other organizations respect the human rights of all workers across the ocean-bound
Our mission
promotes “self-sovereign” digital identity, digital equity, and worker-owned data. Learn more plastic supply chain.
Our goals
about our collaboration.
Governance and Responsible Business Alliance (RBA): A multi-industry initiative focused on responsible
accountability
BSR: A sustainable business network that provides insights, advice, and collaboration with civil business conduct in global supply chains and the respect and promotion of worker rights."
HP-esg-report-2023.txt,"the antislavery movement. In 2022 and 2023, we worked with
Learn more. Survivor Alliance to develop company-wide employee training on modern slavery.
Leadership Group for Responsible Recruitment (LGRR): Developed by the Institute Truckers Against Trafficking (TAT): An NGO that educates, equips, empowers, and mobilizes
for Human Rights and Business, LGRR is a company-led, collaborative effort with expert members of key industries and agencies across North America to identify and report potential
organizations dedicated to eradicating worker-paid fees. HP, along with all LGRR members, human trafficking situations via calls to local law enforcement and human trafficking reporting"
HP-esg-report-2023.txt,"tations. We also participate
in various working groups, collaborating with other brands on joint initiatives that address Verité: A nonprofit that provides knowledge and tools designed to help address supply chain
modern slavery. labor and human rights abuses. In 2022 and 2023, we worked with Verité to develop employee
2023 HP Sustainable
training on modern slavery, with a focus on indicators of forced labor.
Impact Report
105 hp.com/sustainableimpactSupply Commitments, policies, and disclosure
Our suppliers range from multinational worker viewpoints collected through grievance operations. We were the first IT company to disclose"
HP-esg-report-2023.txt,"at provides knowledge and tools designed to help address supply chain
modern slavery. labor and human rights abuses. In 2022 and 2023, we worked with Verité to develop employee
2023 HP Sustainable
training on modern slavery, with a focus on indicators of forced labor.
Impact Report
105 hp.com/sustainableimpactSupply Commitments, policies, and disclosure
Our suppliers range from multinational worker viewpoints collected through grievance operations. We were the first IT company to disclose
chain
Introduction enterprises to small firms, and operate in mechanisms and worker surveys, audits, NGOs, a list of our suppliers. Our supplier list includes the"
HP-esg-report-2023.txt,"lize a risk-based approach to our human
rights due diligence, and analyze our suppliers
using a data-driven supply chain environmental,
social, and governance due diligence platform. This
platform helps us identify new and emerging supply
chain risks by geography (both region and country),
In this section sector, product, and topics such as labor (including
Commitments, policies, and disclosure forced and child labor, wages and working hours,
and discrimination), health and safety, environment,
Worker rights"
HP-esg-report-2023.txt,"In this section sector, product, and topics such as labor (including
Commitments, policies, and disclosure forced and child labor, wages and working hours,
and discrimination), health and safety, environment,
Worker rights
business ethics, and management systems. To
Process chemicals identify, analyze, and predict the risks, the program
2023 HP Sustainable uses machine learning combined with on-site
Impact Report Supplier monitoring and evaluation data generated from multiple sources, including
106 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS"
HP-esg-report-2023.txt,"ing
Commitments, policies, and disclosure forced and child labor, wages and working hours,
and discrimination), health and safety, environment,
Worker rights
business ethics, and management systems. To
Process chemicals identify, analyze, and predict the risks, the program
2023 HP Sustainable uses machine learning combined with on-site
Impact Report Supplier monitoring and evaluation data generated from multiple sources, including
106 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS
Worker rights"
HP-esg-report-2023.txt,"s, policies, and disclosure forced and child labor, wages and working hours,
and discrimination), health and safety, environment,
Worker rights
business ethics, and management systems. To
Process chemicals identify, analyze, and predict the risks, the program
2023 HP Sustainable uses machine learning combined with on-site
Impact Report Supplier monitoring and evaluation data generated from multiple sources, including
106 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS
Worker rights
We continually deepen our understanding We communicate openly with workers and Worker empowerment"
HP-esg-report-2023.txt,"health and safety, environment,
Worker rights
business ethics, and management systems. To
Process chemicals identify, analyze, and predict the risks, the program
2023 HP Sustainable uses machine learning combined with on-site
Impact Report Supplier monitoring and evaluation data generated from multiple sources, including
106 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS
Worker rights
We continually deepen our understanding We communicate openly with workers and Worker empowerment
Introduction of the social and economic factors that lead management in our supply chain to identify and Worker"
HP-esg-report-2023.txt,"government report instances of practices that may not meet involves further incorporating suppliers and their 486K
Our mission agencies with local expertise to promote long-term, our standards. In 2023, we continued to prioritize workers into our systems, and continuing to drive
Our goals scalable solutions. Our primary focus areas are building additional communication channels to collect dignity and respect for every individual across our
value chain. In partnership with our suppliers, HP has
Governance and preventing forced labor and protecting workers’ rights. more extensive worker feedback that will inform"
HP-esg-report-2023.txt,"continuing to drive
Our goals scalable solutions. Our primary focus areas are building additional communication channels to collect dignity and respect for every individual across our
value chain. In partnership with our suppliers, HP has
Governance and preventing forced labor and protecting workers’ rights. more extensive worker feedback that will inform
accountability future human rights programming. Learn about our improved upon existing systems and environments workers reached through 2023.
Human rights due diligence capability-building efforts. that enable worker wellbeing, support opportunity"
HP-esg-report-2023.txt,"ation channels to collect dignity and respect for every individual across our
value chain. In partnership with our suppliers, HP has
Governance and preventing forced labor and protecting workers’ rights. more extensive worker feedback that will inform
accountability future human rights programming. Learn about our improved upon existing systems and environments workers reached through 2023.
Human rights due diligence capability-building efforts. that enable worker wellbeing, support opportunity
for advancement, elevate worker voice, and promote"
HP-esg-report-2023.txt,"d labor and protecting workers’ rights. more extensive worker feedback that will inform
accountability future human rights programming. Learn about our improved upon existing systems and environments workers reached through 2023.
Human rights due diligence capability-building efforts. that enable worker wellbeing, support opportunity
for advancement, elevate worker voice, and promote
Supply chain workers
workers’ agency regarding their choices and careers. 2030 GOAL
Responsible minerals
program
Our worker-centric approach is designed to ensure Reach one million workers through worker"
HP-esg-report-2023.txt,"ents workers reached through 2023.
Human rights due diligence capability-building efforts. that enable worker wellbeing, support opportunity
for advancement, elevate worker voice, and promote
Supply chain workers
workers’ agency regarding their choices and careers. 2030 GOAL
Responsible minerals
program
Our worker-centric approach is designed to ensure Reach one million workers through worker
Our employees workers are aware of their human rights, and move empowerment programs by 2030, since the
Culture, equity, Worker agency toward developing work and life skills that enable beginning of 2015"
HP-esg-report-2023.txt,"equity, Worker agency toward developing work and life skills that enable beginning of 2015
and diversity
them to pursue wider career options as well as higher
Data Workers have the ability to make informed choices about their careers
quality of life and wellbeing. This approach is intended
Digital Equity and Philanthropy and are empowered to act on those choices to contribute to increased commitment, self-esteem,
Integrity confidence, and job satisfaction of those making
our products.
Appendix
HP worker empowerment scope It is also important that our suppliers understand"
HP-esg-report-2023.txt,"ose choices to contribute to increased commitment, self-esteem,
Integrity confidence, and job satisfaction of those making
our products.
Appendix
HP worker empowerment scope It is also important that our suppliers understand
and uphold HP’s human rights expectations and
commitments, and cascade these high standards
to their own suppliers. In addition to meeting HP’s
expectations, this may also result in reduced turnover
rates, as well as improved communication and
productivity for the supplier.
Wellbeing Voice Opportunity We will reach one million workers through HP worker"
HP-esg-report-2023.txt,"nd the procedures and considered, with access to improve professional and stewarded over time. These efforts will highlight
that enable physical safety and to legitimate, predictable, personal skills to enable the stories of workers and appropriately reflect
mental health in the workplace. equitable, transparent, and their advancement.
the complexity of HP’s global supply chain and the
rights-compatible grievance
people who work within it. HP will continue to add
mechanisms with a dialogue that
is culturally appropriate. innovative worker empowerment programs and"
HP-esg-report-2023.txt,"ble drive business progress toward the UN Sustainable
Impact Report
Development Goals.
107 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | MILLION MAKERS
SPOTLIGHT
Introduction Hearing directly
Sustainable Impact
Climate Action
Human Rights from workers through
Our mission
Our goals
Governance and
Million Makers
accountability
Human rights due diligence
Supply chain workers
Responsible minerals
program
In 2023, HP continued to expand Million The onboarding process of Million Makers
Our employees
Makers to elevate worker voice and respond involves the Bluenumber team briefing"
HP-esg-report-2023.txt,"Supply chain workers
Responsible minerals
program
In 2023, HP continued to expand Million The onboarding process of Million Makers
Our employees
Makers to elevate worker voice and respond involves the Bluenumber team briefing
Culture, equity,
and diversity to any concerns raised by workers. workers on-site and explaining the main
Data objectives of the program. They facilitate
Million Makers, a human rights due diligence
Digital Equity and Philanthropy participation in the survey by posting QR
platform using direct worker voice, is a"
HP-esg-report-2023.txt,"s
program
In 2023, HP continued to expand Million The onboarding process of Million Makers
Our employees
Makers to elevate worker voice and respond involves the Bluenumber team briefing
Culture, equity,
and diversity to any concerns raised by workers. workers on-site and explaining the main
Data objectives of the program. They facilitate
Million Makers, a human rights due diligence
Digital Equity and Philanthropy participation in the survey by posting QR
platform using direct worker voice, is a
codes in worker-accessible areas, which"
HP-esg-report-2023.txt,"hp.com/sustainableimpact The Million Makers questionnaire for supply chain workers.SUPPLY CHAIN WORKERS | MILLION MAKERS
SPOTLIGHT
Introduction
The team supports the workers in logging Feedback from the pilot, which launched last Pioneering the
Sustainable Impact “
in and completing the surveys for five year, has been integrated into our approach
program in Malaysia
Climate Action
consecutive days. Surveys consist of 18 to help improve other processes. For
Human Rights We always work to ensure
simple yes/no questions measuring ILO instance, worker feedback indicated that the"
HP-esg-report-2023.txt,"uenumber to ensure and social compliance has
accountability suppliers to agree to launch Million
Human rights due diligence they are compensated financially by questions are worded and translated in Makers in its facility. always been our top priority.
Bluenumber after completing the surveys. ways that reduce ambiguity.
Supply chain workers Million Makers was a welcome
Using this technology, Bluenumber gathers Anonymized survey results were shared
Responsible minerals
opportunity to gain better
program verifiable data directly from workers about with both HP and FEPM. Worker feedback"
HP-esg-report-2023.txt,"yees’ thoughts and
and diversity
local law. experiences during their employment, feedback, to have even, equal,
Data
and that they felt heard by FEPM and HP. and fair employment.”
Digital Equity and Philanthropy
The results also indicated a need for more
Integrity General Manager, FEPM
clarification and communication with
Appendix workers around employment terms and
contracts. As such, FEPM has launched
a review of this process to identify areas
of improvement.
2023 HP Sustainable
Impact Report
109 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS"
HP-esg-report-2023.txt,"suppliers continually improve along their sustainability them specific modules from the RBA Code of interactive quizzes, polls, and surveys built during
Climate Action
journeys. These efforts reached almost 94,300 Conduct in order to increase their awareness of the trainings to evaluate participants’ understanding
Human Rights in Singapore workers through capability-building programs in areas the specific risk. For instance, suppliers that are of the topic and gather supplier feedback following
Our mission such as worker wellbeing, rights and responsibilities, more prone to health and safety risks are assigned all trainings. We have found that suppliers who"
HP-esg-report-2023.txt,"uring Applications and • A primary focus, in 2023, on increasing the conduct these trainings and raise awareness with
supply chain due diligence and forced labor
Data Research Centre (SMARC) enables awareness and knowledge of fundamental human suppliers as expectations evolve.
legislations. Additionally, the RBA presented tools
Digital Equity and Philanthropy our factory employees to gain the rights at supplier sites. To this end, we rolled out a
and initiatives to comply with mHRDD regulations
worker rights training at 42 supplier sites, including"
HP-esg-report-2023.txt,"suppliers as expectations evolve.
legislations. Additionally, the RBA presented tools
Digital Equity and Philanthropy our factory employees to gain the rights at supplier sites. To this end, we rolled out a
and initiatives to comply with mHRDD regulations
worker rights training at 42 supplier sites, including
Integrity knowledge they need. Employees are and key changes in the RBA Code of Conduct.
some in high-risk regions. This training, reaching
Appendix able to apply their learnings at SMARC,
approximately 74,000 workers, introduces the • The HP Worker Wellbeing Survey, launched in 2022"
HP-esg-report-2023.txt,"elps to inform our
prototyping and innovation, laying the in the context of national laws and the workplace. understanding of workers in our supply chain and
groundwork for them to lead the way. Moreover, it further elaborates on protections improve our collaborations with suppliers to deliver
employers are obligated to provide such as better working environments. The survey focuses
contracts, wages, hours, time off, paid holidays, and on four primary areas: 1) career progression and
Learn more
more. This training makes up the foundation upon worker motivation, 2) worker mental and physical"
HP-esg-report-2023.txt,"workplace. understanding of workers in our supply chain and
groundwork for them to lead the way. Moreover, it further elaborates on protections improve our collaborations with suppliers to deliver
employers are obligated to provide such as better working environments. The survey focuses
contracts, wages, hours, time off, paid holidays, and on four primary areas: 1) career progression and
Learn more
more. This training makes up the foundation upon worker motivation, 2) worker mental and physical
which our Worker Empowerment goal rests. health, 3) general engagement levels, such as worker"
HP-esg-report-2023.txt,"to supply
In 2023, the survey was conducted at four sites in
chain and global infrastructure partners, reaching
China, reaching approximately 1,220 workers. The
17,300 workers. The training was designed to
results showed that workers are eager to learn
ensure that workers understand their rights and
about career development, common workplace
managers their responsibilities, and that necessary
skills, and mental health.
management systems are in place, including
2023 HP Sustainable
Impact Report
110 hp.com/sustainableimpactSUPPLY CHAIN WORKERS | WORKER RIGHTS"
HP-esg-report-2023.txt,"ng forward), and realize a benefit in their commercial relationship with
Our mission change. Modern slavery can manifest itself in foreign migrant workers. Nine suppliers charged fees communicate the revised policies to their workers. HP. Leaders within our supply chain operations team
Our goals multiple ways, including through debt bondage, forced prohibited by HP’s SCoC and Supply Chain Foreign Once suppliers confirm they have completed the are briefed on suppliers’ Scorecard results. Revised
Governance and labor, and human trafficking. In our Modern Slavery Migrant Worker Standard, including recruitment, requested corrective action, an on-site visit is periodically to reflect HP’s increased expectations,"
HP-esg-report-2023.txt,"ce address modern slavery. supplier charged fees and withheld passports and remediation process, there is third-party verification improvement. The Scorecard evaluation process
Supply chain workers one supplier withheld workers’ wages, all in violation of the total number of workers impacted, as well as takes place regularly throughout the year. Learn more
Responsible minerals of the HP SCoC and Supply Chain Foreign Migrant the amount and types of fees they paid. HP and the about our Scorecard.
program Worker Standard. RBA work with the suppliers to provide remedy to"
HP-esg-report-2023.txt,"proactively tackle
Culture, equity,
As a part of addressing priority findings, HP has issues related to human trafficking and forced labor
and diversity
confirmed remedy to more than 1,400 workers in our to support the monitoring of recruitment processes at
Data
supply chain, including over US$2.81 million in fee HP suppliers by engaging Issara Institute, a nonprofit
Digital Equity and Philanthropy
repayments, in 2023. Since 2018, HP has confirmed organization. During 2023, that partnership has
Integrity remedy to over 10,000 workers including over supported HP’s key work in prioritizing worker voice"
HP-esg-report-2023.txt,"support the monitoring of recruitment processes at
Data
supply chain, including over US$2.81 million in fee HP suppliers by engaging Issara Institute, a nonprofit
Digital Equity and Philanthropy
repayments, in 2023. Since 2018, HP has confirmed organization. During 2023, that partnership has
Integrity remedy to over 10,000 workers including over supported HP’s key work in prioritizing worker voice
Appendix US$7 million in supplier repayments. and rightsholder engagement in Thailand, helping us
to better understand and address worker concerns"
HP-esg-report-2023.txt,"opy
repayments, in 2023. Since 2018, HP has confirmed organization. During 2023, that partnership has
Integrity remedy to over 10,000 workers including over supported HP’s key work in prioritizing worker voice
Appendix US$7 million in supplier repayments. and rightsholder engagement in Thailand, helping us
to better understand and address worker concerns
In addressing the risk of modern slavery and child
with regards to working conditions, recruiting
labor, we focus primarily on engagement with
experience, and factory worker–management"
HP-esg-report-2023.txt,"KERS | PROCESS CHEMICALS
Process chemicals
FOCUS
As part of our commitment to respecting To drive progress across the industry, we are a
Introduction human rights, we engage with our suppliers founding member of the CEPN, facilitated by the NGO
Improving supply chains
Sustainable Impact to strengthen knowledge and best practices Green America. This collaborative, multi-stakeholder
effort developed a program to assess the use of
Climate Action in health and safety. through industry collaboration
process chemicals, strengthen the culture of worker"
HP-esg-report-2023.txt,"part of our commitment to respecting To drive progress across the industry, we are a
Introduction human rights, we engage with our suppliers founding member of the CEPN, facilitated by the NGO
Improving supply chains
Sustainable Impact to strengthen knowledge and best practices Green America. This collaborative, multi-stakeholder
effort developed a program to assess the use of
Climate Action in health and safety. through industry collaboration
process chemicals, strengthen the culture of worker
Human Rights We take a science-based approach to assessing the safety and engagement, reduce worker exposure"
HP-esg-report-2023.txt,"n health and environmental impacts of to identified priority process chemicals, substitute
Our goals substances used in making HP products. those chemicals with safer alternatives within In early 2021, we committed to taking that will protect workers throughout the
Governance and manufacturing processes, and ultimately reach collective action to protect workers in manufacturing process from exposure to
In 2023, we continued to focus on implementation of
accountability deeper into supply chains.
a comprehensive worker safety strategy to address our global supply chain from exposure to potentially hazardous chemicals."
HP-esg-report-2023.txt,"o Exposure report
analyses of safer alternatives have been conducted to assess hazards using the GreenScreen® for electronics brands and suppliers commit
Digital Equity and Philanthropy for more information.
when a hazardous chemical is being used, and provide Safer Chemicals and to switch to safer alternatives to aligned, structured, long-term practices
Integrity workers with essential personal protective equipment where necessary.
Appendix and training. We gather data from our suppliers about
Worker engagement and participation"
HP-esg-report-2023.txt,"iers discuss their Scorecard with HP as part
and diversity prevent overwhelm for new or smaller suppliers,
of regular business performance evaluations
• Key performance indicator (KPI) monitoring
Data and aims to build their maturity and prepare them
throughout the year, and receive additional points if
program: We collect data from high-risk supplier
Digital Equity and Philanthropy for future full audits. they demonstrate sustained improvement.
sites weekly on key issues such as working hours,
Integrity days of rest, and student workers. This data — Vulnerable worker group (student and foreign Revised periodically to reflect HP’s increased"
HP-esg-report-2023.txt,"s
• Key performance indicator (KPI) monitoring
Data and aims to build their maturity and prepare them
throughout the year, and receive additional points if
program: We collect data from high-risk supplier
Digital Equity and Philanthropy for future full audits. they demonstrate sustained improvement.
sites weekly on key issues such as working hours,
Integrity days of rest, and student workers. This data — Vulnerable worker group (student and foreign Revised periodically to reflect HP’s increased
Appendix supports our supplier collaboration efforts to drive migrant worker) assessments: This deep-dive expectations and emerging regulations, the"
HP-esg-report-2023.txt,"rate sustained improvement.
sites weekly on key issues such as working hours,
Integrity days of rest, and student workers. This data — Vulnerable worker group (student and foreign Revised periodically to reflect HP’s increased
Appendix supports our supplier collaboration efforts to drive migrant worker) assessments: This deep-dive expectations and emerging regulations, the
ongoing improvement. See results. assessment focuses on student and foreign Scorecard process encourages continual supplier
migrant workers, who are vulnerable worker improvement. During 2023, average scores for final"
HP-esg-report-2023.txt,". In the RBA Factory Lead Certification Program, supplier initial audits and full re-audits that scored
Sustainable Impact
suppliers, product reuse and recycling vendors, suppliers with scores from 160 to 180 are eligible for above 160 increased from 50% to 70%. The average Health and safety assessments 0
Climate Action and nonproduction suppliers, as well as 16 other a Silver certification, and those with scores above score during that period increased from 149 to 161. Onboarding assessments 2
Human Rights assessments of production suppliers. During the year, 180 for a Gold certification (including 32% of supplier Thirty audits during 2023 were of final assembly Vulnerable worker group (student and foreign 1"
HP-esg-report-2023.txt,"le for above 160 increased from 50% to 70%. The average Health and safety assessments 0
Climate Action and nonproduction suppliers, as well as 16 other a Silver certification, and those with scores above score during that period increased from 149 to 161. Onboarding assessments 2
Human Rights assessments of production suppliers. During the year, 180 for a Gold certification (including 32% of supplier Thirty audits during 2023 were of final assembly Vulnerable worker group (student and foreign 1
Our mission 86% of production supplier audits were third party– facilities audited in 2023). supplier sites. Of these, 80% scored over 160, 10% migrant worker) assessments"
HP-esg-report-2023.txt,"rnance and effective management of working hours and days of rest expectations.
accountability overtime, one related to discrimination, and three
Wages and 55% 56% In countries without a set minimum wage, the industry prevailing wage applies. The most common issue in wages and benefits
Human rights due diligence related to emergency exits. We required the issues to benefits is suppliers not paying appropriate social insurance to their workers. Examples of corrective actions related to wages and
Supply chain workers be immediately addressed, and are working with the benefits include maintaining documentation of pay stubs and employer contributions to worker insurance schemes, and"
HP-esg-report-2023.txt,"et minimum wage, the industry prevailing wage applies. The most common issue in wages and benefits
Human rights due diligence related to emergency exits. We required the issues to benefits is suppliers not paying appropriate social insurance to their workers. Examples of corrective actions related to wages and
Supply chain workers be immediately addressed, and are working with the benefits include maintaining documentation of pay stubs and employer contributions to worker insurance schemes, and
worker communication."
HP-esg-report-2023.txt,"nformance of Rate of conformance of Rate of conformance of Rate of conformance of
Sustainable Impact
HP Supplier Code of Conduct section/provision sites audited, 2021** sites audited, 2023** HP Supplier Code of Conduct section/provision sites audited, 2021** sites audited, 2023**
Climate Action
Labor 84% 86% Ethics 99% 99%
Human Rights
Freely chosen employment management systems 84% 87% Business integrity 100% 99%
Our mission
Risk of forced labor 83% 91% No improper advantage 100% 99%
Our goals
Young worker protection management systems 98% 97% Disclosure of information 100% 99%"
HP-esg-report-2023.txt,"d diversity
Health and safety 80% 86% Management accountability and responsibility 96% 75%
Data
Occupational safety 65% 68% Legal and customer requirements 95% 92%
Digital Equity and Philanthropy
Emergency preparedness 49% 62% Risk assessment and risk management 94% 95%
Integrity
Occupational injury and illness 86% 88% Performance objectives with implementation plan and measures 95% 100%
Appendix Industrial hygiene 85% 90% Training 98% 98%
Physically demanding work 94% 99% Communication 98% 96%
Machine safeguarding 89% 94% Worker feedback and participation 96% 99%"
HP-esg-report-2023.txt,"or 2021 is not included in this table for product reuse and recycling vendors. See
Our goals detail about our programs and performance in that area.
Workers reached through capability-building programs** 37,000 46,000 94,300
** With the exception of train-the-trainer programs, HP only accounts for workers directly reached by our capability-building programs.
Governance and
Number of workers reached each year depends on the programs executed: some programs address issues broadly across suppliers
accountability Workers’ rights and workers; other programs focus more narrowly on individual supplier sites or specific vulnerable worker groups. Prior to 2020,"
HP-esg-report-2023.txt,"s use Latex printers was their water-based Control and Prevention–approved, hospital-grade services to hard-to-reach locations
for Digital Equity
to produce graphics for over 100 glass inks. Odorless and with minimal chemical disinfectants,8 helping ensure healthcare teams can in India. Housed in solar-powered
Education
panels at the Joe DiMaggio Children’s emissions, Latex inks are UL ECOLOGO® follow through with infection-prevention policies and shipping containers, CSL centers are
Healthcare
Hospital in Miami, Florida, United States. certified and meet UL GREENGUARD Gold protocols to promote patient and worker safety. accompanied by a general healthcare"
HP-esg-report-2023.txt,"ing online, internal control over financial reporting; and other and any references to HP’s website are intended to be
amounts in HP’s Quarterly Reports on Form 10-Q for
omnichannel, and contractual sales, in an evolving risks that are described herein, as well as the risks inactive textual references only.
the fiscal quarters ending April 30, 2024 and July 31,
2023 HP Sustainable
Impact Report
187 hp.com/sustainableimpactPolicies and standards
Climate Action Human Rights Integrity
Introduction
Climate Action Policy Position Contingent Worker Code of Conduct Anti-Corruption Policy"
HP-esg-report-2023.txt,"icy
Sustainable Impact
Environmental, Health and Safety Policy Global Non-Discrimination Policy Corporate Governance Guidelines
Climate Action
Human Rights Export of Electronic Waste to Developing Harassment-Free Work Environment Policy Global Business Amenities Policy
Countries Policy
Digital Equity and Philanthropy Human Rights Policy Global Charitable Contributions Policy
Integrity General Specification for the Environment
Open Door Policy Integrity at HP
Appendix Hardware Recycling Standard
Student and Dispatch Worker Standard for Supplier Partner Code of Conduct"
HP-esg-report-2023.txt,"tributions Policy
Integrity General Specification for the Environment
Open Door Policy Integrity at HP
Appendix Hardware Recycling Standard
Student and Dispatch Worker Standard for Supplier Partner Code of Conduct
About this report
Hardware Reuse Standard Facilities in the People’s Republic of China (PRC)
Policies and standards Privacy Statement
Independent accountants’ Reuse and Recycling Policy for Used Supplier Code of Conduct
U.S. Public Sector Code of Conduct
review report Hardware Product
Supply Chain Foreign Migrant Worker Standard"
HP-esg-report-2023.txt,"Digital Equity and Philanthropy audit suppliers’ social and environmental responsibility performance against HP Supplier Code of Conduct requirements. The number of audits
reported includes those that begin during the reporting year and for which the audit report is received by February 15th of the subsequent year
Integrity (e.g., received by February 15, 2024 for reports conducted during FY23). Audit reports received after this date are included in the following year’s
reported value.
Appendix
Other assessments include health and safety assessments, onboarding assessments, vulnerable worker group (student and foreign worker)"
HP-esg-report-2023.txt,"& Used
Supply chain responsibility: Our approach
related impacts Electronic Equipment
403-1 Occupational health and safety 73
306-2 Management of significant waste-related impacts 50–55, 61–62
management system
HP employs third-party entities for the collection
403-2 Hazard identification, risk assessment, and incident 73, 112, 127, 145
and management of waste, adhering to all requisite
investigation
statutory obligations.
403-3 Occupational health services 73, 127
306-3 Waste generated 62, 82
403-4 Worker participation, consultation, and 72, HP Supplier Code of Conduct"
HP-esg-report-2023.txt,"employs third-party entities for the collection
403-2 Hazard identification, risk assessment, and incident 73, 112, 127, 145
and management of waste, adhering to all requisite
investigation
statutory obligations.
403-3 Occupational health services 73, 127
306-3 Waste generated 62, 82
403-4 Worker participation, consultation, and 72, HP Supplier Code of Conduct
306-4 Waste diverted from disposal 56–60, 62, 82
communication on occupational health and safety
306-5 Waste directed to disposal 62, 82
403-5 Worker training on occupational health and safety 112"
HP-esg-report-2023.txt,"identification, risk assessment, and incident 73, 112, 127, 145
and management of waste, adhering to all requisite
investigation
statutory obligations.
403-3 Occupational health services 73, 127
306-3 Waste generated 62, 82
403-4 Worker participation, consultation, and 72, HP Supplier Code of Conduct
306-4 Waste diverted from disposal 56–60, 62, 82
communication on occupational health and safety
306-5 Waste directed to disposal 62, 82
403-5 Worker training on occupational health and safety 112
403-6 Promotion of worker health 128"
HP-esg-report-2023.txt,"dern Slavery
404-1 Average hours of training per year per employee 124 incidents of child labor Transparency Statement
404-2 Programs for upgrading employee skills and 124 One hundred percent of our suppliers were in conformance
transition assistance programs with the “risk of child labor” provision of the Supplier Code of
Conduct in 2023.
404-3 Percentage of employees receiving regular 124
performance and career development reviews Ninety-eight percent of our suppliers were in conformance with
the young worker protection management systems in 2023."
HP-esg-report-2023.txt,"erformance and career development reviews Ninety-eight percent of our suppliers were in conformance with
the young worker protection management systems in 2023.
GRI 405: Diversity and Equal Opportunity*
HP discloses the rates of conformance in production supplier
3-3 Management of material topics 16, 90, 99, 129–139, Global Harassment-Free Work Environment sites audited, as well as the data needed to calculate the
Policy, Open Door Policy approximate number of nonconformances. To support rights
in this area, HP has controls to meet student and young worker"
HP-esg-report-2023.txt,"has controls to meet student and young worker
405-1 Diversity of governance bodies and employees 141–143, HP Board of Directors, HP 2024 Proxy Statement
requirements. In China, no more than 20% of the direct labor
(pages 15–17)
supporting the manufacturing of HP products, packaging, parts,
components, subassemblies, and materials at any given facility
should consist of student workers at any point in time. We track
2023 HP Sustainable performance in this area through our KPI Program and student
Impact Report worker assessments."
HP-esg-report-2023.txt,"esolution. Immediate formerly vice president. Baseline is June 2020, when the HP 2022 data that was not available at the time of publication of the
goods and services that do not go into the production of HP priority findings do not necessarily involve termination of the Racial Equality and Social Justice Task Force was formed. 2022 HP Sustainable Impact Report.
Appendix products (such as staffing, telecommunications, and travel). supplier; we work with suppliers as appropriate to improve their
Nonproduction suppliers are a significant focus of our supplier performance and worker conditions in these areas. 23 Data refers to the percentage of HP 2023 VIA employee survey 3 Includes valuation of employee volunteer hours, employee"
HP-esg-report-2023.txt,"thropy 12 Governance to remedy 162 Patient privacy and security
56 Repair, reuse, and recycle
13 Stakeholder engagement 104 Communicating with stakeholders
Integrity 61 Waste 163 Community giving and volunteerism Appendix
16 ESG materiality 105 Strategic partnerships
164 HP Foundation programs
Appendix 63 Forests 106 Supply chain workers 186 About this report
165 Disaster recovery and resilience
64 HP’s path to forest positive 106 Commitments, policies, and disclosure 188 Policies and standards
166 Employee volunteerism"
HP-esg-report-2023.txt,"Data 192 United Nations Sustainable
and packaging Development Goals index
113 Supplier monitoring and evaluation
68 Protecting, managing, and 193 Sustainability Accounting Standards
restoring forests 118 Responsible minerals program Board index
69 Influencing industry partners to inspire 118 Transparency in sourcing 194 GRI index
forest positive action 121 Multi-stakeholder initiatives
199 United Nations Guiding Principles
70 Environmental management 122 Our employees Reporting Framework index
70 Supply chain 122 Employee development 201 Endnotes"
HP-esg-report-2023.txt,"d evaluation
68 Protecting, managing, and 193 Sustainability Accounting Standards
restoring forests 118 Responsible minerals program Board index
69 Influencing industry partners to inspire 118 Transparency in sourcing 194 GRI index
forest positive action 121 Multi-stakeholder initiatives
199 United Nations Guiding Principles
70 Environmental management 122 Our employees Reporting Framework index
70 Supply chain 122 Employee development 201 Endnotes
73 HP operations 125 Compensation and benefits
76 Climate change risk management 126 Employee engagement"
HP-esg-report-2023.txt,"customers can reduce hardware
microbusinesses remain productive by ensuring
their PCs with HP Device Life Extension. This expenses and accelerate sustainability goals
they never run out of ink or toner.32 The service
capability upgrades HP device performance with HP’s flexible suite of certified refurbished
anticipates when a cartridge is running low and
and extends support, enabling customers to use devices,26 services,27 and solutions that enhance
sends replenishments as well as new recycling
their devices for longer and contribute to the IT and employee experiences while helping"
HP-esg-report-2023.txt,"equity
The performances of our chief sustainability officer The Sustainable Impact Steering Committee,
and social responsibility–related issues, which we may also be considered as a component of other
and our chief diversity officer are evaluated in composed of representatives from across our
2023 HP Sustainable believe strengthens the board’s oversight of HP’s
part based on the management of Sustainable
company executives’ total compensation. In
organizations, manages and helps drive progress
Impact Report policies and programs relating to these issues and addition, every employee is encouraged to consider"
HP-esg-report-2023.txt,"executives’ total compensation. In
organizations, manages and helps drive progress
Impact Report policies and programs relating to these issues and addition, every employee is encouraged to consider
Impact and the achievement of related targets against our goals.
012 hp.com/sustainableimpactStakeholder engagement
We gain valuable insight through Individual functions across the company execute Some forms of stakeholder engagement follow a set • To discuss the pivotal role public policy plays in
Introduction regular engagement with a range of our approach, engaging in ways that are most frequency, such as our annual employee Voice Insight driving progress toward a more circular economy,"
HP-esg-report-2023.txt,"r and supplier education, of engagement, such as responses to customer Industry Council, the Consumer Technology
Governance companies, public policymakers, industry
supplier capability-building programs, supplier requests for information about our Sustainable Association, and industry peers.
Stakeholder engagement bodies, nongovernmental organizations
audits and assessments, conference participation, Impact performance, collaboration with NGOs and
• We engaged through the HP Sustainable Forests
ESG materiality (NGOs), sector experts, and others. employee surveys, mentoring, and more. Appropriate industry peers on specific issues, and discussion with"
HP-esg-report-2023.txt,"exclusive marketing
customized sustainability support with
materials and social media kits. In May
25 initiatives, trainings, consultancy,
2024, we extended the program to
and personalized tracking to drive our
distribution partners.
partners’ sustainability sales and impact.
Watch a video to learn about how Amplify
• HP University, which offers a
Impact is bringing value to partners.
comprehensive sustainability sales
training curriculum; more than 1,800
Amplify Impact partners have completed
Amplify Impact partners participating in a panel discussion with HP employee Isabella Phoenix (center)"
HP-esg-report-2023.txt,"ties Strategic Partnerships
collaborations fostering meaningful alliances with tangible benefit for communities. With an emphasis Education
on digital inclusion, these collaborations empower communities through enhanced
Healthcare
access to technology and connectivity, digital education, and economic opportunity.
Our dedication to impactful partnerships ensures positive and lasting contributions to Community giving and
2023 HP Sustainable communities around the world. volunteerism
Impact Report
018 hp.com/sustainableimpactAn employee tends to the"
HP-esg-report-2023.txt,"e collaborations empower communities through enhanced
Healthcare
access to technology and connectivity, digital education, and economic opportunity.
Our dedication to impactful partnerships ensures positive and lasting contributions to Community giving and
2023 HP Sustainable communities around the world. volunteerism
Impact Report
018 hp.com/sustainableimpactAn employee tends to the
vegetables grown on the
rooftop hydroponic farm at the
HP facility in Singapore and
which is entirely managed by
employee volunteers."
HP-esg-report-2023.txt,"mpact
Supply chain (63%) HP operations (1%) Products and solutions (35%)
Climate Action
Our mission
11,856,000
Our goals
Nonproduction suppliers
Carbon 408,000
Water
Print**
Circularity
3,115,000
Forests
Environmental management
Data
6,656,000
Human Rights
Print
Digital Equity and Philanthropy
1,426,000
Integrity
Personal systems
Appendix Print
8,333,000
146,000
Personal systems
Personal systems 5,230,000
396,000
542,000
323,000
29,000 53,000 125,500 20,900 32,000 1,000 97,000 29,000 De minimis
Materials Capital Upstream Product Facilities HP fleet Business Waste Employee Product Product Buildings Investments"
HP-esg-report-2023.txt,"ze energy
markets include Canada, Israel, Malaysia, Singapore, we mitigated 900 tonnes through SAF purchases.
generation, with incorporated dimples
and the United States. This partnership highlights HP’s commitment to
collaborations that signal support of sustainable which help to reduce drag and induce
Auto fleet, business travel, innovation in the corporate travel industry. more spin. To take advantage of
Singapore’s abundant sunshine, the
and commuting See data related to business travel and
employee commuting. Wind Tree is also solar enabled."
HP-esg-report-2023.txt,"tified refurbished hardware130, 131
HP’s reuse-related services and programs extend the
expenses and accelerate sustainability goals over new devices helps commercial customers to
life of electronic equipment. This reduces e-waste and
with HP’s flexible suite of certified refurbished advance their circularity and climate initiatives, since
helps our customers reach their sustainability goals.
devices,125 services,126 and solutions that enhance IT refurbished devices generate lower GHG emissions
The HP Hardware Reuse Standard outlines the and employee experiences while helping protect our than new devices."
HP-esg-report-2023.txt,"tion programs to increase diversion
sites. Some historical manufacturing activities of
from landfill, opportunities to improve waste
HP and predecessor companies used chemicals now
segregation (such as centralized trash collection)
known to have contaminated soil and groundwater.
to increase recycling rates, and methods to divert
We are also involved in the cleanup of sites affected Metals 3%
food waste. During this process, we also developed
by the improper disposal and recycling of HP’s waste
recommendations for employee education and"
HP-esg-report-2023.txt,"ncluding 11 at the Gold
Water
level or above.157
Circularity
• Three sites had achieved BREEAM (Building
Forests
Research Establishment Environmental Assessment
Environmental management
Method) certifications for building, including two
Data
at the Excellent level.158
Human Rights
• One location had achieved SITES certification for
Digital Equity and Philanthropy
sustainable landscape.
Integrity
HP's facility in Singapore.
• One site had achieved TRUE certification for
Appendix
waste diversion.
Culture of environmental In the United States, we also held employee"
HP-esg-report-2023.txt,"t events focused on zero waste at our 20
v4 Gold and/or a local equivalent (such as BREEAM). responsibility
sites in Corvallis, Oregon; San Diego, California; and
In support of these objectives, HP has developed
the HP Green and Smart Construction Playbook Our employees worldwide make a vital contribution Spring, Texas. These one-day events encouraged
for project managers, which provides guidance on to improving our environmental performance, and employees to correctly segregate waste to reduce
key principles such as energy use, indoor air quality, employee engagement initiatives enable HP’s global cross-contamination of recyclables. This included"
HP-esg-report-2023.txt,"Our mission Scope 2 emissions, by region 198,200 196,300 193,300 (category 1).
• Capital goods (category 2) includes CO2, CH4, N2O, and HFCs, and represented 0.2% of our Scope 3 emissions in 2023.
Our goals Americas 55,600 57,300 63,700 • Upstream energy production (category 3), Waste generated in operations (category 5), and Business travel (category 6) include
Carbon Europe, Middle East, and Africa 44,700 40,600 36,200
CO2, CH4, and N2O, and represented 0.4% of our Scope 3 emissions in 2023.
• Employee commuting (category 7), Buildings leased to others (category 13), and Investments (category 15) include CO2, and"
HP-esg-report-2023.txt,"d in operations (category 5) 1,000 1,000 1,000 traveled for each ticketed trip. This data also includes rail travel carriers and distance traveled. Although these values fall below our
quantitative reporting threshold of 0.25% of total Scope 3 emissions and could be reported as de minimis, we choose to report this
Business travel (category 6)‡ 3,000 15,000 32,000
category due to our ability to directly track this data, our level of influence over these emissions, and stakeholder expectations in
Employee commuting (category 7) 140,000 88,000 97,000 this category."
HP-esg-report-2023.txt,"100 24,000 26,000
Total recycling, by type (tonnes)
Hardware 108,800 100,600 98,100
Original HP and Samsung Toner Cartridges††† 10,300 10,900 11,700
Original HP Ink Cartridges††† 1,500 1,300 1,300
HP Indigo supplies 1,400 1,400 1,500
Original HP and Samsung Toner Cartridge recycling
HP toner market covered by program (%) 94% 88.9% 90%
See composition data
Original HP Ink Cartridge recycling
HP ink market covered by program (%) 89% 91.2% 92%
See composition data
2023 HP Sustainable
Impact Report
084 hp.com/sustainableimpactAn employee at HP’s Inkjet and"
HP-esg-report-2023.txt,"ur wellness program supports the broad
086 hp.com/sustainableimpactHUMAN RIGHTS | OUR GOALS
Our goals
Goal Progress in 2023 SDGs Goal Progress in 2023 SDGs
Introduction
Empowered workers Culture of inclusion and belonging
Sustainable Impact
Climate Action Reach one million workers through 486K workers reached through 2023. SDG8, Maintain higher than 90% rating 88% rating achieved. Learn more. SDG8
2030 worker empowerment programs by Learn more. SDG10 22003300 on internal inclusion index for all
Human Rights 2030, since the beginning of 2015 employee demographics annually5"
HP-esg-report-2023.txt,"ing
program and resources for HP’s sales organization to educate
covering topics such as worker wellbeing, rights and
Our employees sales professionals about HP’s human rights program.
responsibilities, and environmental, health, and safety
Culture, equity,
During 2023, through our partnership with two human awareness. See Capability building.
and diversity
rights organizations, Verité and Survivor Alliance
Data
(an organization led and run by survivors of modern
Digital Equity and Philanthropy
slavery), we developed an employee awareness"
HP-esg-report-2023.txt,"luding affected stakeholders the value of stakeholder engagement.
Social media posts
Our employees and rightsholders. This engagement series was part
Our human rights efforts benefit from the valuable
Culture, equity, of a critical review of our human rights commitments
and diversity insight gained from our regular engagement with a
and efforts. One example of stakeholder feedback
Data Corporate statements
and disclosures
Digital Equity and Philanthropy
Integrity
Appendix
Public speaking events
Mandatory employee training"
HP-esg-report-2023.txt,"al media posts
Our employees and rightsholders. This engagement series was part
Our human rights efforts benefit from the valuable
Culture, equity, of a critical review of our human rights commitments
and diversity insight gained from our regular engagement with a
and efforts. One example of stakeholder feedback
Data Corporate statements
and disclosures
Digital Equity and Philanthropy
Integrity
Appendix
Public speaking events
Mandatory employee training
on subjects such as privacy
and integrity
Employee resources such"
HP-esg-report-2023.txt,"ore about
Integrity
our efforts with the RMI.
Appendix Clean Electronics Production Network (CEPN): We participate with CEPN’s diverse
stakeholders to understand, address, and eliminate workers’ exposure to toxic chemicals in the Survivor Alliance: A nonprofit that empowers survivors of modern slavery and human
electronics supply chain. CEPN is part of Green America’s Center for Sustainability Solutions. trafficking to become leaders in the antislavery movement. In 2022 and 2023, we worked with
Learn more. Survivor Alliance to develop company-wide employee training on modern slavery."
HP-esg-report-2023.txt,"sustainable practices
by TAT as a pioneering example of bringing exposure to the issue of human trafficking in our
to address modern slavery across the globe. As a member, HP enjoys access to a range
industry. Learn more.
of benefits, including anti-slavery tools, resources, and consultations. We also participate
in various working groups, collaborating with other brands on joint initiatives that address Verité: A nonprofit that provides knowledge and tools designed to help address supply chain
modern slavery. labor and human rights abuses. In 2022 and 2023, we worked with Verité to develop employee"
HP-esg-report-2023.txt,"s to enact policies
that address cobalt, and our minerals due diligence
Appendix
and reporting also includes cobalt. We ask suppliers
to provide us with details of the cobalt refiners they
use, and work with them to encourage those refiners
to complete an RMI audit. Additionally, we encourage
suppliers to engage in collaborative industry action
through the RMI. See our Report on Cobalt and our
responsible minerals–sourcing expectations for
suppliers in HPs GSE.
2023 HP Sustainable
Impact Report
121 hp.com/sustainableimpactOur employees Employee development"
HP-esg-report-2023.txt,"ower HP’s innovation, equitable, and inclusive workplace
Climate Action
are investing in career growth to enable our diverse
contributing unique perspectives and a that attracts, retains, and advances • Develop a diverse pipeline of high-performing,
Human Rights workforce of skilled employees to be prepared for
growth mindset to create breakthrough exceptional talent. Through ongoing skilled leaders equipped to grow the business.
Our mission the future. We believe that investing in Future Ready
Our goals technologies and transformative solutions employee development, comprehensive employee development is critical to our objective • Futureproof the organization’s skills with relevant"
HP-esg-report-2023.txt,"nce to support our employees to do their We also believe that our future success is dependent • Enable employees to develop and grow their careers.
Supply chain workers best work—while learning, growing, and on creating an environment where our employees
Responsible minerals feeling engaged. have opportunities to develop their potential and
program
achieve their career ambitions.
Our employees
Culture, equity,
and diversity
Data
Digital Equity and Philanthropy
Integrity
Appendix
In this section
Employee development"
HP-esg-report-2023.txt,"o believe that our future success is dependent • Enable employees to develop and grow their careers.
Supply chain workers best work—while learning, growing, and on creating an environment where our employees
Responsible minerals feeling engaged. have opportunities to develop their potential and
program
achieve their career ambitions.
Our employees
Culture, equity,
and diversity
Data
Digital Equity and Philanthropy
Integrity
Appendix
In this section
Employee development
Compensation and benefits
Employee engagement"
HP-esg-report-2023.txt,"g, and on creating an environment where our employees
Responsible minerals feeling engaged. have opportunities to develop their potential and
program
achieve their career ambitions.
Our employees
Culture, equity,
and diversity
Data
Digital Equity and Philanthropy
Integrity
Appendix
In this section
Employee development
Compensation and benefits
Employee engagement
Health and safety
2023 HP Sustainable
Impact Report Wellbeing Employees engaging with the Learning
Academy at HP’s site in Singapore.
122 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE DEVELOPMENT"
HP-esg-report-2023.txt,"y
Integrity
Appendix
In this section
Employee development
Compensation and benefits
Employee engagement
Health and safety
2023 HP Sustainable
Impact Report Wellbeing Employees engaging with the Learning
Academy at HP’s site in Singapore.
122 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE DEVELOPMENT
Face-to-face workshops have also been central • Advancing Women Executives: a multi-week,
Introduction to people-manager development in 2023, using a interactive, cohort-based program that focuses
blended approach to improve employee coaching on professional branding, networking, mentors,"
HP-esg-report-2023.txt,"rs through face-to-face immersive accelerate the careers of key talent and diverse
pipeline of diverse, Future Ready leaders. The aim development workshop experiences and formal employees through peer learning, coaching,
is to drive an integrated talent management and executive coaching. These opportunities are designed and sponsorship
development approach that incorporates rich to equip directors to scale their leadership impact and
accelerate personal growth.
2023 HP Sustainable
Impact Report
123 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE DEVELOPMENT"
HP-esg-report-2023.txt,"d and Future We support the continuous development of our During 2023, an estimated 99% of employees career-development webinars, one-to-one career-
Introduction more than 18,000 technical employees who work participated in learning and development activities, coaching opportunities, and career fairs. In addition,
Ready employees
across a range of digital, information, and physical with an average of 36 hours’ development completed HP’s Degree Assistance Program provides over
Sustainable Impact
We are focused on futureproofing HP. By developing sciences. Over 30 HP employee communities, such as per employee.12 The 2023 Voice Insight Action (VIA) 500 employees worldwide with the opportunity to"
HP-esg-report-2023.txt,"ee communities, such as per employee.12 The 2023 Voice Insight Action (VIA) 500 employees worldwide with the opportunity to
Climate Action
technical and digital skill capabilities in automation, Software Community and Data Science & Knowledge engagement survey revealed that 83% of employees participate in higher academic education.
Human Rights data science, service, AI, and software skills, we aim Discovery, have access to a range of classroom felt that HP actively supported their learning and
According to the 2023 VIA employee survey, 79%"
HP-esg-report-2023.txt,"Total Rewards Pay equity Executive compensation In accordance with U.S. SEC rules, we recently
Introduction package that is both performance based reported our CEO pay ratio for 2023. Our CEO’s annual
We believe people should be paid equitably for what The HR and Compensation Committee discharges
Sustainable Impact and market competitive. total compensation for 2023 was US$19,458,431.
they do and how they do it, regardless of their gender, the HP Board of Directors’ responsibilities related to
Our median employee’s annual total compensation"
HP-esg-report-2023.txt,"es salaries, bonuses, incentive was US$67,816, resulting in a CEO pay ratio of 287:1.
Human Rights programs, and a range of benefits designed to meet on that commitment, we benchmark and set pay and provides general oversight of our compensation For more detail, including about our calculation
Our mission our employees’ diverse needs while enhancing their ranges based on relevant market data, and consider structure, including our equity compensation plans methodology, see page 78 of the HP 2024
Our goals wellbeing and that of their families. Most non-sales factors such as an employee’s role, experience, and benefits programs. See page 67 of the HP 2024 Proxy Statement."
HP-esg-report-2023.txt,"actors such as an employee’s role, experience, and benefits programs. See page 67 of the HP 2024 Proxy Statement.
and performance. We also regularly review our Proxy Statement for detail.
Governance and employees are eligible for HP’s performance bonus.
accountability Funding for the HP bonus program is linked to compensation practices, in terms of both our overall
Human rights due diligence company financial performance, and individual bonus workforce and our individual employees, to make sure
Supply chain workers payouts are based on employee performance. HP also our pay is fair and equitable."
HP-esg-report-2023.txt,"yees based Since 2016, HP has reviewed employees’
program on contributions to the company. The purpose of HP’s compensation with the support of independent third-
Our employees equity program is to strengthen employees’ alignment party experts to ensure equitable pay practices.
Culture, equity, to company goals and encourage their focus on
and diversity creating long-term value for stockholders. HP continued its annual pay equity assessment
Data in 2023, evaluating 17 countries with our largest
Valuing and rewarding employees drives higher employee populations, which represent 85% of"
HP-esg-report-2023.txt,"luing and rewarding employees drives higher employee populations, which represent 85% of
Digital Equity and Philanthropy
engagement and better performance. Compensation our global workforce. The independent analysis
Integrity and benefits are reviewed periodically for determined there were no systemic issues.
Appendix market competitiveness.
In cases where pay differences were identified and a
Benefit programs vary by country to reflect local
reason in line with our compensation practices could
market practice and employee needs. Depending on not be determined, pay adjustments were made. To"
HP-esg-report-2023.txt,"aintain equity, we will continue to perform these
• Retirement and savings plans reviews at least annually.
• Healthcare benefits
True to our cultural principles and business strategy,
• Mental health support
our aim is for HP to be regarded as a leader in
• Insurance protections (e.g., life and disability) providing all employees with fair and equitable pay.
• Time-off programs (vacation,17 holidays, parental Going forward, we will continue to regularly evaluate
leaves, injury/illness,18 etc.)
our approach to employee compensation, conduct"
HP-esg-report-2023.txt,"(e.g., life and disability) providing all employees with fair and equitable pay.
• Time-off programs (vacation,17 holidays, parental Going forward, we will continue to regularly evaluate
leaves, injury/illness,18 etc.)
our approach to employee compensation, conduct
• Discount programs
reviews of our practices, and make timely and
• Flexible work arrangements appropriate adjustments to individual employees’ pay,
• Stock purchase plan as needed.
• Other benefits
2023 HP Sustainable
Impact Report
125 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE ENGAGEMENT"
HP-esg-report-2023.txt,"nd equitable pay.
• Time-off programs (vacation,17 holidays, parental Going forward, we will continue to regularly evaluate
leaves, injury/illness,18 etc.)
our approach to employee compensation, conduct
• Discount programs
reviews of our practices, and make timely and
• Flexible work arrangements appropriate adjustments to individual employees’ pay,
• Stock purchase plan as needed.
• Other benefits
2023 HP Sustainable
Impact Report
125 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE ENGAGEMENT
Employee engagement"
HP-esg-report-2023.txt,"Time-off programs (vacation,17 holidays, parental Going forward, we will continue to regularly evaluate
leaves, injury/illness,18 etc.)
our approach to employee compensation, conduct
• Discount programs
reviews of our practices, and make timely and
• Flexible work arrangements appropriate adjustments to individual employees’ pay,
• Stock purchase plan as needed.
• Other benefits
2023 HP Sustainable
Impact Report
125 hp.com/sustainableimpactOUR EMPLOYEES | EMPLOYEE ENGAGEMENT
Employee engagement
Employee feedback is a critical component FOCUS"
HP-esg-report-2023.txt,"nd we work
improve their experiences and identify
Human Rights
opportunities to continually strengthen
Our mission
our culture.
Our goals The Moments that Matter campaign
Governance and Employees can share feedback in a variety of is designed to create ongoing
accountability
ways, including through our annual VIA survey and conversations about how employees
Human rights due diligence
periodic Quick Clicks pulse surveys. In 2023, 91% of work together at HP. Themed around the
Supply chain workers
employees participated in our annual VIA employee"
HP-esg-report-2023.txt,"ore about
Culture, equity, and why our teams gather in person,
individual experiences.
and diversity
work individually, or collaborate using
Data HP has sustained action to digitize and automate,
hybrid technology. We provided a
Digital Equity and Philanthropy enhancing the tools and processes that improve
toolkit to managers to help them lead
day-to-day experiences for our people. Overall,
Integrity
80% of survey participants had a favorable view conversations on this topic, while the
Appendix
of the employee experience as measured by our Moments that Matter Challenge asked"
HP-esg-report-2023.txt,"y enhancing the tools and processes that improve
toolkit to managers to help them lead
day-to-day experiences for our people. Overall,
Integrity
80% of survey participants had a favorable view conversations on this topic, while the
Appendix
of the employee experience as measured by our Moments that Matter Challenge asked
engagement index in 2023, compared to 82% in 2022. employees to submit photos and videos
HP continues to be certified as a Great Place to Work,
showing examples of success. The
with our employee rating of 87% favorable in 2023."
HP-esg-report-2023.txt,"s rates.
2023 HP Sustainable
Impact Report
HP’s manufacturing facility in Singapore.
127 hp.com/sustainableimpactOUR EMPLOYEES | WELLBEING
Wellbeing
The holistic wellbeing of our employees communications, educational sessions, voluntary Emotional Life balance
Introduction is vital to HP’s success. Our Well Beyond progress tracking through the Virgin Pulse app,
• We continue to integrate mental and emotional • Recognizing employees’ continued caregiving
personal challenges, and other incentives.
Sustainable Impact employee wellbeing program is designed to"
HP-esg-report-2023.txt,"and their spouses or World Mental Health Day and launched a mental newly registered on the Virgin Pulse platform,
to encourage employees to prioritize their health
program domestic partners can receive annual incentives of through which we provide access to digital coaching
health–focused newsletter to highlight relevant
and wellness.
Our employees up to US$600 each for activities such as completing a and a wide range of health and wellbeing content.
HP-paid resources such as Headspace and our
Culture, equity, Wellness Assessment and tracking healthy activities. Through our wellbeing vendors, we offer an array of Employee Assistance Program. More than 17,160 employees joined the GWC, forming"
HP-esg-report-2023.txt,"AND DIVERSITY | OUR PEOPLE
Our people
FOCUS
Our culture of CED—where everyone We want our people to reflect our communities
Introduction feels respected and valued, and fully globally, and our goal is to be universally ranked as Women in technology
Nichole Woodford:
an employer of choice in the technology industry
Sustainable Impact participates—establishes HP as a leader
Climate Action in the technology industry and beyond. by 2030. To achieve that, we consider every step embodying values 24%
of the employee life cycle—from talent attraction"
HP-esg-report-2023.txt,"ulture of CED—where everyone We want our people to reflect our communities
Introduction feels respected and valued, and fully globally, and our goal is to be universally ranked as Women in technology
Nichole Woodford:
an employer of choice in the technology industry
Sustainable Impact participates—establishes HP as a leader
Climate Action in the technology industry and beyond. by 2030. To achieve that, we consider every step embodying values 24%
of the employee life cycle—from talent attraction
Human Rights In our annual employee engagement survey, and engagement onward—in how we continue to"
HP-esg-report-2023.txt,"rraapphhiiccss aannnnuuaallllyy2266
Our employees
such as Disha, a six-month program in India; the Talent
commit to a range of actions that improve five HP employees, representing
Culture, equity, Development Program and Women in Leadership
and diversity inclusion in the workplace. the disAbilities BRG and our Talent
Lab in Mexico; and WOLFpack, an eight-month
Data Acquisition Team, are also receiving
women’s development program in Costa Rica. See These include promoting equal U.S. labor market
Digital Equity and Philanthropy Employee development. opportunities policies that protect people training from the Forum on inclusion"
HP-esg-report-2023.txt,"or people with disabilites in Costa Rica.
134 hp.com/sustainableimpactCULTURE, EQUIT Y, AND DIVERSIT Y | OUR PEOPLE
FOCUS
Culture of belonging
Introduction
To help us deeply embed inclusion within HP’s Inspiring gender
Sustainable Impact
culture, we provide numerous training programs
Climate Action and resources designed to increase our employees’ equity at HP
Human Rights social awareness, counter personal bias, and promote
Our mission compassion and empathy. We also support our Printing Korea
Our goals extensive network of BRGs—employee-led groups"
HP-esg-report-2023.txt,"ct
culture, we provide numerous training programs
Climate Action and resources designed to increase our employees’ equity at HP
Human Rights social awareness, counter personal bias, and promote
Our mission compassion and empathy. We also support our Printing Korea
Our goals extensive network of BRGs—employee-led groups
that champion diversity within and beyond HP.
Governance and
accountability In honor of International Women’s Week,
Human rights due diligence
HP Printing Korea (HPPK) arranged a
Supply chain workers Employee survey results*"
HP-esg-report-2023.txt,"on women in
Our employees
Culture, equity, leadership and gender equity. Aligning
94% 95% 94%
and diversity 87% 90% 90% with HP’s goal of 30% technical women in
Data
engineering by 2030, HPPK is committed
Digital Equity and Philanthropy to achieving greater gender diversity
Integrity and supporting its female employees to
Appendix overcome challenges in the workplace.
2021 2022 2023
I feel HP values diversity
I can be myself at work
* Data refers to the percentage of HP 2021, 2022, and 2023 VIA
employee survey respondents who strongly agreed or agreed"
HP-esg-report-2023.txt,"American
emotional intelligence, being more inclusive, and
accountability
Heritage Month, International Women’s Week, U.S.
related content for managers.
Human rights due diligence LGBTQ Pride Month, and U.S. Veterans Day, as well as
Supply chain workers • HireEQ: Designed to help hiring managers focus workshops for LGBTQ+ allies.
Responsible minerals on equitable hiring and building organizational
The program launched in 1972 with our first group, the
program accountability for diverse hiring.
Black Employee Network, and has grown to 134 BRGs"
HP-esg-report-2023.txt,"diverse hiring.
Black Employee Network, and has grown to 134 BRGs
Our employees
• Pivot: Equips newly promoted managers with the in 39 countries.27 Their representational focuses
Culture, equity,
and diversity skills, tools, and mindsets to drive high-performing include: Black/African American employees, persons
teams, including by building a culture of inclusion with disabilities, Hispanic/Latin American
Data
at HP. employees, LGBTQ+ employees, multicultural and
Digital Equity and Philanthropy
multigenerational employee groups, veterans, and"
HP-esg-report-2023.txt,"by gender All minorities 44.8% 46.4% 44.1%
Women 28.2% 31.4% 31.2% Black/African American 9.2% 7.8% 9.8%
Men 67.5% 67.2% 66.3% Hispanic/Latin American 10.8% 10.3% 10.6%
Not disclosed/available 4.3% 1.4% 2.5% Asian 19.5% 23.0% 19.4%
Native American 0.3% 0.2% 0.3%
U.S. employees, by ethnicity
Hawaiian/Pacific Islander 0.3% 0.6% 0.1%
White 62.1% 61.2% 59.0%
Two or more races 4.7% 4.6% 3.8%
All minorities 30.8% 32.5% 34.7%
Not disclosed/available 4.1% 3.4% 2.7%
Black/African American 4.5% 4.8% 4.9%
Hispanic/Latin American 9.6% 9.8% 10.3% * Employee data refers to regular full-time and part-time employees. Data is as of October 31 of the year reported. Employees self-"
HP-esg-report-2023.txt,"men 46% 46% 46%
Human Rights Americas 12,823 8,220 100 21,143
Racial/ethnic minorities 46% 46% 46%
Our mission Asia Pacific and Japan 12,466 8,273 35 20,774
* Board of Directors data for 2023 is as of the conclusion of the 2023 annual meeting of stockholders on April 24, 2023. Board of Directors
Our goals data for 2021 is as of the conclusion of the 2022 annual meeting of stockholders on April 19, 2022. Other data is as of October 31 of the Europe, Middle East, and Africa 7,527 5,118 195 12,840
year noted. Employee data refers to regular full-time and part-time employees."
HP-esg-report-2023.txt,"* In some cases, segments do not add up to total due to nondisclosure of age by some employees. * Based on business unit, this includes up to four levels from the CEO. In some cases, segments do not add up to 100%
** Based on business unit, this includes up to four levels from the CEO. due to rounding.
*** This refers to people managers below director level. ** This refers to people managers below director level.
2023 HP Sustainable
Impact Report
143 hp.com/sustainableimpactHUMAN RIGHTS | DATA
Employees by employment type (regular full time and part time) and gender, 2023 Employee turnover rate"
HP-esg-report-2023.txt,"y HP’s digital SDG5
Human Rights 2030 beginning of 20212 equity programs and SDG8
partnerships. Learn more.
Digital Equity and Philanthropy
Our mission
Enroll 2.75 million HP LIFE 1.2M HP LIFE users enrolled SDG4
Our goals
users between 2016 and 2030. since 2016. Learn more. SDG5
2030
HP’s theory of change Previously 1.5 million SDG8
for Digital Equity
Education
Community giving and volunteerism
Healthcare
Community giving
Contribute US$300 million in US$140M given by the SDG11
and volunteerism
HP Foundation and employee HP Foundation and SDG17"
HP-esg-report-2023.txt,"s
users between 2016 and 2030. since 2016. Learn more. SDG5
2030
HP’s theory of change Previously 1.5 million SDG8
for Digital Equity
Education
Community giving and volunteerism
Healthcare
Community giving
Contribute US$300 million in US$140M given by the SDG11
and volunteerism
HP Foundation and employee HP Foundation and SDG17
Data 2030 community giving by 2030 HP employees through
(cumulative since the beginning 2023. Learn more.
Integrity of 2016). Previously US$100 million
by 20253
Appendix
Contribute 3.5 million employee 1.2M employee volunteer SDG11"
HP-esg-report-2023.txt,"Appendix • Educators and healthcare practitioners Accelerate digital equity4 for 150 million
people by 2030 (beginning in 2021)
Our work is designed to enable • Education
• Healthcare
more equal access to:
• Economic opportunity
We are driving our agenda Through HP:
through a wide range of • The Digital Equity Accelerator
• Strategic partnerships and programs
programs, collaborations,
• Corporate product donations
and investments
Through the HP Foundation:
• HP LIFE
• Capability-building grants
• Employee volunteerism"
HP-esg-report-2023.txt,"on, technology-related learning experiences disaster recovery HP employees through 2023.
Our goals scope, scale, and technology necessary to underrepresented and underserved
• Inclusion and empowerment for underrepresented
HP’s theory of change to make meaningful contributions around communities worldwide. and marginalized groups
for Digital Equity 2030 GOAL
the world.
Education Corporate contributions, the In 2023, we supported our communities through
Contribute US$300 million in HP Foundation
Healthcare Together with our strategic local and HP Foundation,11 and employee giving and US$15 million in cash contributions and products and"
HP-esg-report-2023.txt,"derrepresented and underserved
• Inclusion and empowerment for underrepresented
HP’s theory of change to make meaningful contributions around communities worldwide. and marginalized groups
for Digital Equity 2030 GOAL
the world.
Education Corporate contributions, the In 2023, we supported our communities through
Contribute US$300 million in HP Foundation
Healthcare Together with our strategic local and HP Foundation,11 and employee giving and US$15 million in cash contributions and products and
and employee community giving12 by 2030"
HP-esg-report-2023.txt,"nce the beginning of 2016)
and volunteerism
we work to accelerate digital equity, our communities agenda. Our employees also continue to make a significant
Data
connect communities to greater economic impact. During the year, they provided US$4.2 million
Integrity of community giving, while 22,100 employees
Appendix volunteered 296,400 hours of their time.
See HP’s Global Charitable Contributions Policy.
In this section
HP Foundation programs
Disaster recovery and resilience
2023 HP Sustainable
Impact Report Employee volunteerism"
HP-esg-report-2023.txt,"ote and local volunteers
and experts, mapping information is improved to
650 support and inform relief efforts. Engaging with the
MapSwipe initiative, HP employees volunteer to
view satellite images and validate map data. In 2023,
650 employees contributed to the mapping of more
than 24,000 square kilometers and validate over
HP employees contributed one million data points.
to Missing Maps to help
humanitarian organizations
and first responders in
remote areas
2023 HP Sustainable
Impact Report
165 hp.com/sustainableimpactCOMMUNIT Y GIVING AND VOLUNTEERISM | EMPLOYEE VOLUNTEERISM"
HP-esg-report-2023.txt,"d inform relief efforts. Engaging with the
MapSwipe initiative, HP employees volunteer to
view satellite images and validate map data. In 2023,
650 employees contributed to the mapping of more
than 24,000 square kilometers and validate over
HP employees contributed one million data points.
to Missing Maps to help
humanitarian organizations
and first responders in
remote areas
2023 HP Sustainable
Impact Report
165 hp.com/sustainableimpactCOMMUNIT Y GIVING AND VOLUNTEERISM | EMPLOYEE VOLUNTEERISM
Employee volunteerism"
HP-esg-report-2023.txt,"a. In 2023,
650 employees contributed to the mapping of more
than 24,000 square kilometers and validate over
HP employees contributed one million data points.
to Missing Maps to help
humanitarian organizations
and first responders in
remote areas
2023 HP Sustainable
Impact Report
165 hp.com/sustainableimpactCOMMUNIT Y GIVING AND VOLUNTEERISM | EMPLOYEE VOLUNTEERISM
Employee volunteerism
HP taps into the talents, passions, and 40 Days of Doing Good containing “STEM kits” assembled by HP’s senior
Introduction entrepreneurial spirit of our employees to leaders, sixty HP employees worked with around 500 Employee"
HP-esg-report-2023.txt,"gram
Digital Equity and Philanthropy countries, with a value of US$19 million—representing supporting 357 projects. The HP Foundation
The HP Mentor Advisory Board—comprising a group
Our mission approximately a 15% increase in volunteer efforts complemented these efforts with grants to support
of HP employees—meets monthly to help guide the
compared to 2022.13 This contributed to HP employees education- and technology-related learning
Our goals
educators serving as mentors in 1 Million Teachers’
reaching the milestone of one million hours charities nominated by our employees. For example, employee volunteer hours reached,"
HP-esg-report-2023.txt,"pproximately a 15% increase in volunteer efforts complemented these efforts with grants to support
of HP employees—meets monthly to help guide the
compared to 2022.13 This contributed to HP employees education- and technology-related learning
Our goals
educators serving as mentors in 1 Million Teachers’
reaching the milestone of one million hours charities nominated by our employees. For example, employee volunteer hours reached,
HP’s theory of change Mentor a Teacher program and address topics
for Digital Equity volunteered since 2016. Each employee is granted HP volunteers partnered with five Boys & Girls Clubs including 296,400 in 2023."
HP-esg-report-2023.txt,"since 2016. Each employee is granted HP volunteers partnered with five Boys & Girls Clubs including 296,400 in 2023.
chosen by the mentors themselves, such as the use
Education four hours’ paid volunteer time per month. based in Houston, Texas, United States, to foster
of technology in off-grid areas. Learn more about HP’s
interest in and enthusiasm for STEM subjects among
Healthcare
partnership with 1 Million Teachers.
young people. Using equipment from HP backpacks 2030 GOAL
Community giving
and volunteerism Contribute 3.5 million employee"
HP-esg-report-2023.txt,"providing access to at least one of the following: hardware, connectivity, content,
or digital literacy. Digital equity data includes both direct and indirect reach. Indirect reach is sometimes based on estimates using
Our mission Services*** 8.58 16.17 18.76 multipliers. 2023 data includes a small amount of 2022 data that was not available at the time of publication of the 2022 HP Sustainable
Our goals Impact Report.
Social investment (% of net earnings) 0.45% 2.23% 1.43%
HP’s theory of change
U.S. employee contributions to Cash Matching Program (US$ million) 2.65 3.00 4.25"
HP-esg-report-2023.txt,"based on estimates using
Our mission Services*** 8.58 16.17 18.76 multipliers. 2023 data includes a small amount of 2022 data that was not available at the time of publication of the 2022 HP Sustainable
Our goals Impact Report.
Social investment (% of net earnings) 0.45% 2.23% 1.43%
HP’s theory of change
U.S. employee contributions to Cash Matching Program (US$ million) 2.65 3.00 4.25
for Digital Equity
HP Foundation contributions to Cash Matching Program (US$ million) 2.73 3.70 5.91
Education
Employee volunteer hours 136,000 258,000 296,000"
HP-esg-report-2023.txt,"18.76 multipliers. 2023 data includes a small amount of 2022 data that was not available at the time of publication of the 2022 HP Sustainable
Our goals Impact Report.
Social investment (% of net earnings) 0.45% 2.23% 1.43%
HP’s theory of change
U.S. employee contributions to Cash Matching Program (US$ million) 2.65 3.00 4.25
for Digital Equity
HP Foundation contributions to Cash Matching Program (US$ million) 2.73 3.70 5.91
Education
Employee volunteer hours 136,000 258,000 296,000
Healthcare
* Social investments include all corporate giving made to nonprofit organizations from HP plus the valuation of employee volunteer"
HP-esg-report-2023.txt,"goals Impact Report.
Social investment (% of net earnings) 0.45% 2.23% 1.43%
HP’s theory of change
U.S. employee contributions to Cash Matching Program (US$ million) 2.65 3.00 4.25
for Digital Equity
HP Foundation contributions to Cash Matching Program (US$ million) 2.73 3.70 5.91
Education
Employee volunteer hours 136,000 258,000 296,000
Healthcare
* Social investments include all corporate giving made to nonprofit organizations from HP plus the valuation of employee volunteer
Community giving
hours. Data excludes contributions to the HP Foundation and employee donations but includes HP’s matching contributions and"
HP-esg-report-2023.txt,"ations from HP plus the valuation of employee volunteer
Community giving
hours. Data excludes contributions to the HP Foundation and employee donations but includes HP’s matching contributions and
and volunteerism
contributions from the HP Foundation to other organizations.
Data ** Product donations are valued at the internet list price. This is the price a customer would have paid to purchase the equipment
through the HP direct sales channel on the internet at the time the grant was processed.
Integrity *** Services represents the valuation of HP employee volunteer hours. Valuation rates are based on figures provided by Chief Executives"
HP-esg-report-2023.txt,"e, and in 2023,
Sustainable Impact Ethisphere recognized HP for the fourth
training completion
Climate Action consecutive year, naming us one of the
World’s Most Ethical Companies®.
Human Rights 99.3%
We are committed to acting with integrity HP is committed to complying with
Digital Equity and Philanthropy
in everything that we do. We expect all applicable laws and regulations
Training and communication
Integrity
everyone at HP to meet the highest ethical everywhere we operate. We also require
Operating responsibly standards and to treat others with respect ethical conduct by our suppliers and The annual training on Integrity at HP—our employee of employees, including senior"
HP-esg-report-2023.txt,"to complete the training each year.
During 2023, all 14 members of HP’s Board of Directors
received Integrity at HP content relevant to their
positions, and certified that they had read it.
Regular training, newsletters, virtual coffee talks, and
communications campaigns reinforce the values
of Integrity at HP and keep ethical practices top
of mind throughout the year. Our code of conduct
offers employees another way to access our policies,
definitions, and other resources, and we use analytics
about employee use of this resource to inform our"
HP-esg-report-2023.txt,"P content relevant to their
positions, and certified that they had read it.
Regular training, newsletters, virtual coffee talks, and
communications campaigns reinforce the values
of Integrity at HP and keep ethical practices top
of mind throughout the year. Our code of conduct
offers employees another way to access our policies,
definitions, and other resources, and we use analytics
about employee use of this resource to inform our
communications and training strategy. Integrity
In this section
Central is our employee-accessible library of ready-"
HP-esg-report-2023.txt,"2 2023 disciplinary or remedial actions when appropriate, recommendations. This report is then sent to the
messaging (in the United States), and mail, as well including coaching, verbal warnings, written warnings,
Digital Equity and Philanthropy relevant review team for approval. The complainant
Labor law 32% 51%
as in person. We offer anonymous reporting options and termination. Serious violations may impact an
is informed when the investigation has concluded.
Integrity Misuse of assets 16% 8%
where allowed by law. At any time, employees can employee’s Total Rewards package (subject to local"
HP-esg-report-2023.txt,"the matter.
Public policy internal ethics and compliance experts, or consult Fraud 10% 5%
through one of our reporting avenues, the
Product safety Internal Audit, the HP People Organization, Integrity at Conflicts of interest 8% 7% Allegations are investigated by a dedicated global
complainant receives an acknowledgment from the
Integrity Investigations Team. However, when
Appendix HP Country Teams, or Integrity at HP liaisons. HP does Theft 7% 9%
case management tool with an access number and
appropriate, Employee Relations investigators from"
HP-esg-report-2023.txt,"riate, Employee Relations investigators from
not tolerate retaliation against anyone who raises a Competition 2% 1%
password that can be used to check the status of their
the People Organization (and occasionally country
concern or question. Policy escalation 2% 2%
concern. The Integrity Investigations Team performs
leads from our Legal, Controllership, and People
Brand protection/channel 1% 4%
an initial evaluation and review to assess whether the
Organization teams) may also conduct Integrity
Procurement 1% 1% allegation is employee-related, and whether it should"
HP-esg-report-2023.txt,"f our due diligence questionnaire by the additional anti-corruption content as a part of this
Sustainable Impact corrupt behavior of any kind, including benchmark our approach against peer companies to third party (every three years, for existing partners training. We also communicate year-round with
identify best practices in areas including operational and high-risk suppliers) as well as the country-level our employees to reinforce our policies, controls,
Climate Action bribery and kickbacks.
procedures, employee education, and supplier and CPI. Based on this information, we decide whether and training."
HP-esg-report-2023.txt,"Corrupt Practices Act and by removing access to specific benefits and/or
Operating responsibly risks in our operations. These audits include end- targeted online anti-corruption training.
the UK Bribery Act. Although HP has not applied terminating any contract with HP.
Privacy to-end review and testing of compliance policies
for certification of its anti-corruption compliance During 2023, 3,498 employees (93% of the
Public policy and processes. Third parties also receive training as part of our
program, all of our operational sites and subsidiaries relevant employee base) completed training on"
HP-esg-report-2023.txt,"l our operations, more than 100 activities related to data protection regulations around the world, especially in the United
HP recognizes that privacy is a
Sustainable Impact and to give our customers, employees, and compliance. This framework is the core of our States, there is a constant need to evolve operations
fundamental human right. We also
privacy and data protection program, which to comply with new requirements. For example, we
Climate Action partners confidence when sharing personal
recognize the importance of privacy, includes comprehensive internal policies, employee see an increased emphasis on data processing"
HP-esg-report-2023.txt,"ts designed to prevent, mitigate, and remediate all completed the course during the four-week campaign. principles training during
compliance-related business impacts. The risks The training is intended to reinforce HP’s privacy and the four-week campaign
Complaints, breaches, and requests identified through the CAP are integrated into data protection principles and ensure that employees
Cybersecurity the Trust and Privacy Organization process for understand how to respect and protect customer,
2023 HP Sustainable conducting internal and external audits of privacy employee, and partner privacy. During the year, we"
HP-esg-report-2023.txt,"nd swiftly, • Association of Certified Fraud Examiners
Product safety reporting activities to relevant leadership. When a
• Institute of Internal Auditors
Appendix potential cybersecurity event is identified, a core
team is responsible for management of the event, In addition, we collaborate with a variety of
including any commercial or legal obligations to educational institutions that have formal
notify our customers and/or make regulatory filings. cybersecurity programs and provide a pool of
If the potential cybersecurity event involves personal possible interns and new employee hires. We"
HP-esg-report-2023.txt,"ces
Impact Report Political engagement
181 hp.com/sustainableimpactPUBLIC POLICY | POLITICAL ENGAGEMENT
Political engagement
We conduct all political engagements in a We also make public our lobbying expenditures and
Introduction transparent, legal, and ethical manner and in membership in U.S. trade associations. HP files
Sustainable Impact accordance with Integrity at HP. quarterly reports as required by U.S. law, available at
the Clerk of the House website. For the EU, HP files
Climate Action
In 2021, HP and the HP Employee Political Action annual reports with the Transparency Register. HP did"
HP-esg-report-2023.txt,"g Manual2
Appendix Scope 3 GHG emissions1 – Category 2 – Capital Goods 29,000
About this report Scope 3 GHG emissions1 – Category 3 – Fuel and Energy-Related Activities 53,000
Policies and standards Scope 3 GHG emissions1 – Category 4 & 9 – Upstream/Downstream 542,000
Transportation & Distribution
Independent accountants’
Scope 3 GHG emissions1 – Category 5 – Waste Generated in Operations 1,000
review report
Scope 3 GHG emissions1 – Category 6 – Business Travel 32,000
United Nations Sustainable
Development Goals index Scope 3 GHG emissions1 – Category 7 – Employee Commuting 97,000"
HP-esg-report-2023.txt,"ies: Category 1 Purchased goods and services, Category 2 Capital goods, Category 3 includes: 2,000 cubic meters of captured rain water (classified as surface water); 1,000 cubic meters of well water (classified as ground water);
Fuel- and energy-related activities not included in Scope 1 or Scope 2, Category 4 and 9 Transportation and distribution, Category 5 Waste and 2,232,000 cubic meters of municipal water and NeWater, which is wastewater sourced from another organization (both of which are
generated in operations, Category 6 Business travel, Category 7 Employee commuting, Category 11 Use of sold products, Category 12 End-of- classified as third-party water). Note that sewage treatment plant (STP) water is not included within the scope of water withdrawal. Seawater"
HP-esg-report-2023.txt,"rialization and • Science-based emissions reduction in line
• Gender balance across all levels foster innovation with a 1.5°C pathway Goal 17: Strengthen the means of
of management implementation and revitalize the global
HP’s actions: HP’s actions:
• Equal pay for work of equal value partnership for sustainable development
Circular design; Environmental management: Carbon footprint; Path to net zero by 2040;
HP’s actions: HP operations Carbon: Supply chain; Carbon: HP operations; HP’s actions:
Employee development; Compensation and Carbon: Product use HP supports the UN SDGs, the UN Global"
HP-esg-report-2023.txt,"ce sustainable development.
Impact Report
192 hp.com/sustainableimpactSustainability Accounting Standards Board index
This table contains and refers to information related to the Sustainability Accounting Standards Board (SASB) Hardware Sustainability Accounting Standard.
Introduction
Topic Code Metric 2023 reporting
Sustainable Impact
Product Security TC-HW-230a.1 Description of approach to identifying and addressing Cybersecurity
Climate Action data security risks in products Product security
Human Rights Employee Diversity and TC-HW-330a.1 Percentage of gender and racial/ethnic group Representation"
HP-esg-report-2023.txt,"employees 142 2-26 Mechanisms for seeking advice and raising concerns 171, HP Integrity Reporting
GRI index A portion of the organization’s work is performed by individuals
2-27 Compliance with laws and regulations 171
other than HP employees or other workers supervised by HP,
United Nations Guiding
including workers employed or supervised by contractors.
The Reporting concerns section of our report discloses the
Principles Reporting types of items reported to the global Integrity at HP Team or
Framework index The complete count of non-employee workers under other compliance functions. Further information related to the"
HP-esg-report-2023.txt,"s part of our commitment to
confidentiality constraints.
transparency, we aspire to incorporate this relevant information
into future reports. 2-28 Membership associations Affiliations and Memberships
2-9 Governance structure and composition 12, 169, 172, Governance–HP Board of Directors, Corporate 2-29 Approach to stakeholder engagement 13, 16, 126
Governance Guidelines, Nominating, Governance and Social 2-30 Collective bargaining agreements Approximately 19,100 employees are represented by an
Responsibility Committee Charter, HP 2024 Proxy Statement independent trade union, works council, or other employee"
HP-esg-report-2023.txt,"’t allow enough time to collect this information. We will be 308-2 Negative environmental impacts in the supply chain 113–116
Integrity
looking into disclosing more information on the topic in the next and actions taken
Appendix reporting cycle. GRI 400: Social Standard Series
About this report GRI 305: Emissions GRI 401: Employment
Policies and standards 3-3 Management of material topics 16, 21, 23, 25–27, 99, 100, HP Carbon accounting manual 3-3 Management of material topics 16, 125, 126, 128
Independent accountants’ 305-1 Direct (Scope 1) GHG emissions 23, 29, 77–78, HP’s CDP Climate Change response submitted in 401-1 New employee hires and employee turnover 144"
HP-esg-report-2023.txt,"ort
196 hp.com/sustainableimpact * HP’s climate risk assessment and other policies have been refreshed after CDP submission in July 2023.APPENDIX | GRI INDEX
Disclosure Location Disclosure Location
GRI 400: Social Standard Series
Introduction G4R0I 34-083 W: Oocrckueprast icoonavle Hreeadl tbhy a annd Soacfceutyp ational health and Quantitative information on workers covered by an 405-2 Ratio of basic salary and remuneration of women Information on the ratio of the basic salary and remuneration
safety management system occupational health and safety management system is to men of women to men for each employee category, by significant"
HP-esg-report-2023.txt,"122–124, 126
approximate number of nonconformances. We require suppliers
United Nations Guiding Employees work closely with their managers to create annual to train workers to understand their rights concerning collective
Principles Reporting personal development goals that build on their strengths, bargaining, and to allow workers to associate freely without fear
Framework index improve performance, and progress their careers. We track of discrimination, reprisal, intimidation, or harassment.
and measure employee participation in development at"
HP-esg-report-2023.txt,"progress their careers. We track of discrimination, reprisal, intimidation, or harassment.
and measure employee participation in development at
Endnotes program and audience levels, with clear targets for both. We GRI 408: Child Labor
evaluate all formal development programs through our learning 3-3 Management of material topics 16, 90, 99, 105, 111, Supply chain responsibility: Our approach,
management system, and for selected programs we conduct HP Modern Slavery Transparency Statement, Human
deeper analysis to measure improvements in employee Rights Policy"
HP-esg-report-2023.txt,"both. We GRI 408: Child Labor
evaluate all formal development programs through our learning 3-3 Management of material topics 16, 90, 99, 105, 111, Supply chain responsibility: Our approach,
management system, and for selected programs we conduct HP Modern Slavery Transparency Statement, Human
deeper analysis to measure improvements in employee Rights Policy
performance and business impact.
408-1 Operations and suppliers at significant risk for 99, 100, 114–117, 141, 153, 154, HP Modern Slavery
404-1 Average hours of training per year per employee 124 incidents of child labor Transparency Statement"
HP-esg-report-2023.txt,"of material topics 16, 90, 99, 105, 111, Supply chain responsibility: Our approach,
management system, and for selected programs we conduct HP Modern Slavery Transparency Statement, Human
deeper analysis to measure improvements in employee Rights Policy
performance and business impact.
408-1 Operations and suppliers at significant risk for 99, 100, 114–117, 141, 153, 154, HP Modern Slavery
404-1 Average hours of training per year per employee 124 incidents of child labor Transparency Statement
404-2 Programs for upgrading employee skills and 124 One hundred percent of our suppliers were in conformance"
HP-esg-report-2023.txt,"ac nl de efo nr d c -oo fm -sm ere vr ic ci ea .l HP desktops, displays, and
by weight, that will come from recycled and renewable materials supplies is reported by suppliers as recycled or certified, with a 23 About GHG emissions data: This report includes Scope 1, 2, and
and reused products and parts by 2030. minimum of 97% by volume verified by HP. Packaging is the box 3 GHG emissions data from HP’s operations, transportation 31 LCAs are validated by a third party to conform to ISO 14040 and
that comes with the product and all paper-based materials inside fleet, and employee business travel, calculated according to ISO 14044, and are used by HP to understand the total carbon"
HP-esg-report-2023.txt,"marily from purchased electricity aspx?docname=c08430102).
is based on a different methodology.
Total recycled content plastic includes postconsumer recycled used in HP’s operational real estate. 32 HP voluntarily designs and tests its printing systems to prevent
plastic, closed-loop plastic, and ocean-bound plastics used 15 Absolute reduction of Scope 1, 2, and 3 GHG emissions compared • Scope 3 emissions reported in this section result from emissions that exceed Blue Angel and EPEAT eco-label
in HP products. Personal systems plastic is defined by EPEAT to 2019. Excludes non-HP paper consumed during product use. employee business travel by commercial airlines and guidelines. EPEAT registered where applicable. EPEAT registration"
HP-esg-report-2023.txt,"abor, severe forms of 18 In the United States, salaried exempt employees are eligible Digital Equity
discrimination, health and safety issues posing immediate for paid sick time to cover occasional illness or until short-term
Introduction
1 HP uses the terms “production suppliers,” “product transportation danger to life or risk of serious injury, and perceived violation of disability is approved. Policies vary in other locations. 1 HP defines “accelerating digital equity” as providing access to
Sustainable Impact suppliers,” and “nonproduction suppliers” throughout this report. environmental laws posing serious and immediate harm to the 19 Data refers to the percentage of HP 2023 VIA employee survey at least one of the following: hardware, connectivity, content, or"
HP-esg-report-2023.txt,"esolution. Immediate formerly vice president. Baseline is June 2020, when the HP 2022 data that was not available at the time of publication of the
goods and services that do not go into the production of HP priority findings do not necessarily involve termination of the Racial Equality and Social Justice Task Force was formed. 2022 HP Sustainable Impact Report.
Appendix products (such as staffing, telecommunications, and travel). supplier; we work with suppliers as appropriate to improve their
Nonproduction suppliers are a significant focus of our supplier performance and worker conditions in these areas. 23 Data refers to the percentage of HP 2023 VIA employee survey 3 Includes valuation of employee volunteer hours, employee"
HP-esg-report-2023.txt,"nectivity,
Independent accountants’ 3 As a percentage of U.S. personnel with the title of executive, injury, and perceived violation of environmental laws posing Justice Task Force was formed. content, or digital literacy. Digital equity and learning outcomes
review report formerly called vice president. serious and immediate harm to the community. Prior to 2020, 26 Annually, HP employees fill out a VIA survey to help us understand data includes both direct and indirect reach. Indirect reach is
United Nations Sustainable 4 Baseline is June 2020. we reported other priority nonconformances and major overall employee engagement, including their sense of belonging sometimes based on estimates using multipliers."
HP-esg-report-2023.txt,"ce and
products (such as staffing, telecommunications, and travel). (70%), Formula-based estimations (19%), and On-the-job training 61 million adults in the United States live with a disability, based sanitization, disinfection, and sterilization capabilities. See wipe
Nonproduction suppliers are a significant focus of our supplier (11%) and the number of employees. on data from its Disability and Health Data System and “Morbidity manufacturer’s instructions for disinfecting and the HP cleaning
diversity efforts. 13 Data refers to the percentage of HP 2023 VIA employee survey and Mortality Weekly Report.” guide for HP-tested wipe solutions for personal systems, “How to"
HP-esg-report-2023.txt,"acturer’s instructions for disinfecting and the HP cleaning
diversity efforts. 13 Data refers to the percentage of HP 2023 VIA employee survey and Mortality Weekly Report.” guide for HP-tested wipe solutions for personal systems, “How to
8 The term “forced labor” refers to situations in which people are respondents who strongly agreed or agreed with each statement. 32 Our programs aim to accelerate digital equity through providing Clean your HP Device with Approved Disinfecting Wipes”: https://
coerced to work against their will, either overtly through violence 14 Data refers to the percentage of HP 2023 VIA employee survey access to at least one of the following: hardware, connectivity, h20195.www2.hp.com/v2/getpdf.aspx/4AA7-7610ENW.pdf"
HP-esg-report-2023.txt,"agreed with each statement. content, or digital literacy. 9 Based on internal HP testing, March 2021. Actual results depend
debt, retention of identity papers, and threats of denunciation. HP 15 Approximately 1.6% of employees are on leave for various on many factors including patient–doctor interactions and
forbids any forced, bonded, or indentured labor, involuntary prison reasons at any given time. specific patient conditions.
labor, slavery, or trafficking of persons within its supply chain
and operations. 16 Data refers to the percentage of HP 2023 VIA employee survey 10 HP Security Manager must be purchased separately. For details,"
HP-esg-report-2023.txt,"ntary prison reasons at any given time. specific patient conditions.
labor, slavery, or trafficking of persons within its supply chain
and operations. 16 Data refers to the percentage of HP 2023 VIA employee survey 10 HP Security Manager must be purchased separately. For details,
respondents who strongly agreed or agreed with each statement. see hp.com/go/securitymanager.
17 In the United States, the minimum amount of vacation time for 11 The HP Foundation is a nonprofit 501(c)(3) organization.
salaried exempt employees is three weeks per year. Vacation 12 Includes valuation of employee volunteer hours, employee"
HP-esg-report-2023.txt,"limate change, human rights, and digital equity.
It also covers the impact of HP’s operations on
employees, customers, suppliers, partners, and
Sustainable Impact Steering Committee
communities worldwide, supply chain, environment,
Composed of vice presidents from business units and functions across HP, who represent the Sustainable
and sustainability performance, and HP’s annual
Impact work in their organizations to meet the company’s sustainability vision and goals.
Sustainable Impact Report.
The NGSRC convenes at least four times each Personal Imaging, Printing & Workforce Supply Commercial Corporate Marketing Legal Finance People Digital & Strategy &"
HP-esg-report-2023.txt,"holder engagement
Worker health Hazard risk Supply chain (upstream) Working to create a healthy, safe, and secure working environment by identifying Occupational Health Health and safety
ESG materiality
and safety Emergency preparedness HP operations and mitigating potential risks associated with hazardous materials, equipment, and and Safety
Climate Action machinery, increasing emergency preparedness, and addressing workplace injuries
throughout HP operations and our supply chain.
Human Rights
Talent Workforce resiliency HP operations Creating a resilient and Future Ready workforce by investing in training and Training and Education Our employees"
HP-esg-report-2023.txt,"addressing workplace injuries
throughout HP operations and our supply chain.
Human Rights
Talent Workforce resiliency HP operations Creating a resilient and Future Ready workforce by investing in training and Training and Education Our employees
Digital Equity and Philanthropy
development development. Our approach considers individuals’ needs and opportunities for career Employment
Integrity progression. HP’s commitment ensures a diverse, skilled, and innovative team, fostering
Labor/Management
workforce resiliency and meeting evolving business needs."
HP-esg-report-2023.txt,"e, as well as protecting the labor rights of workers in our supply chain. We work Labor Supply chain workers
to promote a living wage, to combat discrimination, and to safeguard whistleblowers.
Protection of whistleblowers Freedom of Association Responsible minerals program
Our commitment includes promoting safe working conditions, upholding freedom of
and Collective Bargaining
association, and capability building. By emphasizing fundamental labor rights, we aim Our employees
Non-discrimination
to create a supportive and thriving environment for our diverse workforce and supply"
HP-esg-report-2023.txt,"remaining emissions through third When the organization began a print
Data life or help reduce waste, driving toward a more management. Maintaining device functionality party-verified projects around the globe in partnership optimization process, they were
with Climate Impact Partners, facilitated by HP.
Human Rights material-efficient and circular economy. enables customers to extend the use of their existing searching for a partner that would help
devices, mitigating emissions associated with
Digital Equity and Philanthropy HP Workforce Solutions provides industry-leading IT them reimagine printing. By working"
HP-esg-report-2023.txt,"s, HP has developed
the HP Green and Smart Construction Playbook Our employees worldwide make a vital contribution Spring, Texas. These one-day events encouraged
for project managers, which provides guidance on to improving our environmental performance, and employees to correctly segregate waste to reduce
key principles such as energy use, indoor air quality, employee engagement initiatives enable HP’s global cross-contamination of recyclables. This included
sites around the world took part in
water withdrawal, and waste recycling. We also factor workforce to directly support our Sustainable Impact deploying refreshed signage and sharing site-specific"
HP-esg-report-2023.txt,"s††† 1,500 1,300 1,300
HP Indigo supplies 1,400 1,400 1,500
Original HP and Samsung Toner Cartridge recycling
HP toner market covered by program (%) 94% 88.9% 90%
See composition data
Original HP Ink Cartridge recycling
HP ink market covered by program (%) 89% 91.2% 92%
See composition data
2023 HP Sustainable
Impact Report
084 hp.com/sustainableimpactAn employee at HP’s Inkjet and
Ink Supplies Operation (ISIO)
in Singapore where training
and upskilling are made a
priority in order to develop a
future-ready workforce."
HP-esg-report-2023.txt,"raphic area. They are an invaluable
each HRIA, with the advisors conducting site visits to
Responsible minerals tool to understand the lived experience of vulnerable
multiple supplier sites in each country and our own
program
stakeholders and the ways to improve human
operations in Singapore. These site visits included
Our employees rights due diligence based on the perspectives of
interviewing workers across the spectrum of the
Culture, equity, rightsholders. These locations and suppliers were
workforce as well as local, regional, and international"
HP-esg-report-2023.txt,"RKER RIGHTS
Capability building managerial responsibilities to respect human Measuring for effectiveness is an essential part of our
Introduction Building a Future In collaboration with NGO partners and other external rights. Additionally, if a supplier’s work makes them human rights due diligence program. In terms of our
organizations, we provide programs designed to help more prone to experience certain risks, we assign supplier capability–building efforts, this may include
Sustainable Impact
Ready workforce suppliers continually improve along their sustainability them specific modules from the RBA Code of interactive quizzes, polls, and surveys built during"
HP-esg-report-2023.txt,"manufacturing RBA Code of Conduct to improve their health and understanding of human rights topics. For instance, a
accountability for the manufacture of Original suppliers by spend, and more than 14,000 employees safety practices. survey conducted after our supplier mHRDD training
Human rights due diligence HP inkjet supplies. HP’s Future Ready at customer support–related and other nonproduction indicated that 100% of the participants understood
• A mandatory human rights due diligence (mHRDD)
Supply chain workers and predictive workforce plan and suppliers who completed training on the RBA Code training, delivered to 600 workers in collaboration the implications of new human rights due diligence"
HP-esg-report-2023.txt,"pact Approximately 58,000 employees We are committed to fostering a diverse, and deliver. To deliver on our Future Ready investment
Our employees’ talent, diversity, and drive fuel HP. We in talent, we prioritize the following objectives:
worldwide power HP’s innovation, equitable, and inclusive workplace
Climate Action
are investing in career growth to enable our diverse
contributing unique perspectives and a that attracts, retains, and advances • Develop a diverse pipeline of high-performing,
Human Rights workforce of skilled employees to be prepared for"
HP-esg-report-2023.txt,"r equity compensation plans methodology, see page 78 of the HP 2024
Our goals wellbeing and that of their families. Most non-sales factors such as an employee’s role, experience, and benefits programs. See page 67 of the HP 2024 Proxy Statement.
and performance. We also regularly review our Proxy Statement for detail.
Governance and employees are eligible for HP’s performance bonus.
accountability Funding for the HP bonus program is linked to compensation practices, in terms of both our overall
Human rights due diligence company financial performance, and individual bonus workforce and our individual employees, to make sure"
HP-esg-report-2023.txt,"with the support of independent third-
Our employees equity program is to strengthen employees’ alignment party experts to ensure equitable pay practices.
Culture, equity, to company goals and encourage their focus on
and diversity creating long-term value for stockholders. HP continued its annual pay equity assessment
Data in 2023, evaluating 17 countries with our largest
Valuing and rewarding employees drives higher employee populations, which represent 85% of
Digital Equity and Philanthropy
engagement and better performance. Compensation our global workforce. The independent analysis"
HP-esg-report-2023.txt,"olistic wellbeing of our employees communications, educational sessions, voluntary Emotional Life balance
Introduction is vital to HP’s success. Our Well Beyond progress tracking through the Virgin Pulse app,
• We continue to integrate mental and emotional • Recognizing employees’ continued caregiving
personal challenges, and other incentives.
Sustainable Impact employee wellbeing program is designed to
health into all aspects of our wellbeing program. challenges, in 2023 we offered webinars on
Climate Action serve the needs of our evolving workforce In 2023, we launched the Better Me in ’23 campaign, In 2023, we launched a global Emotional Wellbeing resiliency and parenting, along with coaching for"
HP-esg-report-2023.txt,"source. We strive to create an inclusive
training, and events. In 2023, we continued to integrate
Governance and fully embracing our commitment to culture, position to address systemic bias in our environment where people can be their authentic
BIG across HP, focusing on greater accountability
accountability equity, and diversity (CED). company, our industry, and beyond. selves at work and reach their full potential.
for CED, diverse talent recruitment and leadership
Human rights due diligence
We want our workforce to reflect our This mission has been central since HP’s In 2023, we integrated our Culture and DEI functions pipelines, and engaging our employees, so that we can"
HP-esg-report-2023.txt,"ility
We are expanding our hiring pipeline to include
Human rights due diligence
nontraditional routes to employment, including
Black/African American technical
Supply chain workers
removing four-year degree requirements for some
representation in the United States,
Responsible minerals roles and securing talent from apprenticeships,
program up from 2.3% in 2020.
transitioning veterans, community colleges, people
Our employees
with all abilities, technical school graduates, and
Culture, equity,
those returning to the workforce. See Diverse talent"
HP-esg-report-2023.txt,"ervices, technical services, computer and electronics manufacturing, real estate, and
138 hp.com/sustainableimpact numerous other industries.CULTURE, EQUIT Y, AND DIVERSIT Y | OUR COMMUNITIES
Our communities
We strive to advance the communities We partner with historically Black colleges and
Introduction where we live and work by applying universities (HBCUs) to increase the representation
Sustainable Impact the same CED values that have made of Black/African American engineers in the high-tech
workforce. In 2023, HP sponsored and participated"
HP-esg-report-2023.txt,"CULTURE, EQUIT Y, AND DIVERSIT Y | OUR COMMUNITIES
Our communities
We strive to advance the communities We partner with historically Black colleges and
Introduction where we live and work by applying universities (HBCUs) to increase the representation
Sustainable Impact the same CED values that have made of Black/African American engineers in the high-tech
workforce. In 2023, HP sponsored and participated
Climate Action HP so strong.
in the White House HBCU Conference, highlighting
Human Rights
We support the Human Rights Campaign’s Business our education and workforce priorities. In 2023, we"
HP-esg-report-2023.txt,", 2023. Board of Directors
Our goals data for 2021 is as of the conclusion of the 2022 annual meeting of stockholders on April 19, 2022. Other data is as of October 31 of the Europe, Middle East, and Africa 7,527 5,118 195 12,840
year noted. Employee data refers to regular full-time and part-time employees.
Governance and * This table does not include 3,160 employees of certain majority-owned, consolidated subsidiaries, for which data was not available.
accountability
Human rights due diligence
World workforce (regular full time and part time) by age group, 2023* World workforce (regular full time and part time) by gender, 2023*"
HP-esg-report-2023.txt,"Educational Technology to launch a for the future.
Technology Conference—these included a Career
HBCU (Historically Black
HP’s theory of change
Accelerator and Innovation Incubator student state-of-the-art Virtual Reality
for Digital Equity
Colleges and Universities)
competitions focused on digital skills, e-sports game
Education
Technology Conference design, future tech, and product marketing.
Healthcare
Community giving FOWA for CTC students
In September 2023, we hosted the third annual HBCU
and volunteerism In 2023, HP hosted 18 workforce and career skills"
HP-esg-report-2023.txt,"e conference
Data development sessions, presented by 14 technology
was to inspire university leaders, IT professionals,
Integrity faculty, staff, and students, with a focus on building professionals and entrepreneurs. Over 330 students
from 34 CTCs registered for these sessions, which
Appendix diversity in the technology sector—and ultimately
provided attendees with the future-focused skills to
increasing the number of Black/African American
navigate the volatility, uncertainty, complexity, and
engineers in the workforce. The conference provided"
HP-esg-report-2023.txt,"conomic
HP public policy advocacy engagements
investment incentives
are aligned with our business interests.
We advocate for measures that create
business opportunities, allow operational
flexibility, reduce risk, and promote Creating digital trust through robust and interoperable data-
governance efforts that preserve open data flows
sustainability aligned with HP’s values
focusing on climate action, human rights,
and digital equity.
Advancing policies that align skills with jobs and promote a
diverse and inclusive workforce"
HP-esg-report-2023.txt,"construed in accordance with the securities
COVID-19, or other public health crises; the execution resellers or unauthorized resale of HP’s products, driven by operational efficiency, digital transformation,
laws or any other laws of the United States or any
Independent accountants’
and performance of contracts by HP and its suppliers, or our uneven sales cycle; integration and other and portfolio optimization. These initiatives
review report other jurisdiction, or as used in the context of our
customers, clients, and partners, including logistical risks associated with business combination include but are not limited to workforce reductions,"
HP-esg-report-2023.txt,"firm resolution. Immediate and paper consumption and comparing with post-MPS actuals or
review report functional testing, data wiping, reimaging, and the use of priority findings do not necessarily involve termination of the projections. Results depend on unique business environments,
123 Predictive insights is only available with HP Active Care. Select HP
HP OEM parts. supplier; we work with suppliers as appropriate to improve their the way HP products and services are used, and other factors.
United Nations Sustainable Workforce Solutions require an HP Insights agent for Windows,"
HP-esg-report-2023.txt,"ps://admin.hp.com/requirements. time of purchase. Customer may have additional statutory rights highest energy–consuming sites globally (16,000 tonnes in 2023), 151 HP trademark license code FSC-C017543; see fsc.org. Not all
Standards Board index The agent collects telemetry and analytics around devices according to applicable local laws, and such rights are not in any which account for 67% of HP’s operational waste. These sites FSC-certified products are available in all regions; look for logo
and applications that integrate into the Workforce Experience way affected by the HP terms and conditions of service or the provide a representative sample of the main types of facilities in on pack."
HP-esg-report-2023.txt,"ducts are available in all regions; look for logo
and applications that integrate into the Workforce Experience way affected by the HP terms and conditions of service or the provide a representative sample of the main types of facilities in on pack.
GRI index
platform and is not sold as a standalone service. Internet access HP Limited Warranty provided with your HP product. our portfolio from across the regions where we operate. 152 See full SpencerLab report: http://www.spencerlab.com/reports/
United Nations Guiding with connection to the Workforce Experience platform is required. 133 HP Certified Refurbished Hardware includes cosmetic grading, 144 Zero-waste operations: eliminate nonhazardous waste to landfill HPReliability-NA-nonHP-2022.pdf"
IDEX_SustainabilityReport2022_accessible_version.txt,"& Initiatives 40
Our Governance,
Ethics & Compliance 9 Our Planet 43
Corporate Governance 10 Environmental Governance 44
Sustainability Governance 12 Our Operations Impact Our Planet 45
Business Ethics & Compliance 13 Our Products Impact Our Planet 50
Cybersecurity & Data Privacy 15
Responsible Supply Chain 17
Appendix 54
SASB Index 54
Our People 19
IDEX ESG Data 62
IDEX Corporation
Talent Management & Development 20 Forward-Looking Statement 66 Global Headquarters
3100 Sanders Road, Suite 301
Employee Benefits & Wellness 23"
IDEX_SustainabilityReport2022_accessible_version.txt,"s and operations on six continents, the businesses in these
Outperformed the All employees are trained
main segments serve a diverse range of end markets worldwide.
S&P 500 Index by over on the Company’s Code of
300% since 2012[2] Business Conduct & Ethics
[2] Calculated on cumulative
total return values assuming
r8einves,tm0ent of d0ividend0s. + $3.2 billion
employees in Revenue (2022)
>50 19 76%
Businesses in our Fluid & Metering Our Health & Science Technologies Our Fire & Safety/Diversified
businesses in acquisitions employee"
IDEX_SustainabilityReport2022_accessible_version.txt,"iance 13Compliance Programs We communicate our expectations to our suppliers and Growth through acquisition is an important part of our business
vendors through the Supplier Code of Conduct. For more strategy. It is critical that our new businesses are educated in
Building on the principles set forth in the Code, our global
information on the Supplier Code of Conduct, please see the ethical way in which we conduct our business. As such, all
compliance team manages risks associated with critical
Responsible Supply Chain on page 17. newly acquired businesses undergo all-employee training on a"
IDEX_SustainabilityReport2022_accessible_version.txt,"bor, or human in our supply chain. Our conflict minerals team, composed of IDEX provides training and smelter information for suppliers on
trafficking in our supply chain, as set forth in the Supplier Code. individuals from our businesses and corporate departments, an as needed basis. IDEX also surveys its suppliers through a
To further our commitment, in 2021 we added a detailed handles compliance with the Securities and Exchange “reasonable country of origin inquiry” (RCOI) survey to identify
Human Rights training module to our annual employee Code of Commission’s Conflict Minerals reporting requirements through the origins of 3TG within IDEX’s supply chain. If a supplier is"
IDEX_SustainabilityReport2022_accessible_version.txt,"ess is possible because of the valued
contributions of our workforce. Recognizing that our
talent is the most important driver to achieve our goals
and create Innovative Technologies for a Better World,
we prioritize fostering “Great Teams” as one of the
foundational pillars of the IDEX Difference.
The success of our unique operating model depends
on the entrepreneurial spirit and capabilities of
our employees. Investment in our people through
attention to talent development, talent management,
employee engagement, diversity, equity, and"
IDEX_SustainabilityReport2022_accessible_version.txt,"ding the Supervisory Excellence, Business always stay with me. It not only gave me tools and skills, but gave me
confidence to go further as a new leader and empower my team members
Leader Excellence, New Leader Orientation, and Management
Our flexible approach to training and education drives long-
and influence others.
Excellence programs. With these development programs as
term value as the needs of our business change and the world
a foundation, we plan to deepen our leadership pipeline and
changes around us. Whether an employee seeks to enhance Helen Xu HR Director, IDEX China & SEA"
IDEX_SustainabilityReport2022_accessible_version.txt,"d digital enablement tools.
is excellent, and the cross-IDEX relationships provide an ongoing network
of support long after the sessions conclude. Being able to work with new
and developing leaders has provided me with incredible insights from the
exchange of ideas and has continued to shape me as a stronger leader. The
commitment to developing talent is clearly demonstrated though the IDEX
Academy as an important element of our unique and special IDEX culture.
Lisa Walsh VP Strategic Platforms
IDEX 2022 Sustainability Report Our People 21Engaging Our Employees Employee Engagement Metrics for 2022"
IDEX_SustainabilityReport2022_accessible_version.txt,"me as a stronger leader. The
commitment to developing talent is clearly demonstrated though the IDEX
Academy as an important element of our unique and special IDEX culture.
Lisa Walsh VP Strategic Platforms
IDEX 2022 Sustainability Report Our People 21Engaging Our Employees Employee Engagement Metrics for 2022
Part of the IDEX Difference is building and engaging great teams.
IDEX has earned a reputation as a respected employer with a
welcoming culture, where 80% of employees feel a strong sense
of belonging, according to our 2022 iSay employee engagement"
IDEX_SustainabilityReport2022_accessible_version.txt,"is clearly demonstrated though the IDEX
Academy as an important element of our unique and special IDEX culture.
Lisa Walsh VP Strategic Platforms
IDEX 2022 Sustainability Report Our People 21Engaging Our Employees Employee Engagement Metrics for 2022
Part of the IDEX Difference is building and engaging great teams.
IDEX has earned a reputation as a respected employer with a
welcoming culture, where 80% of employees feel a strong sense
of belonging, according to our 2022 iSay employee engagement
survey. Employee engagement is essential to create a diverse,"
IDEX_SustainabilityReport2022_accessible_version.txt,"21Engaging Our Employees Employee Engagement Metrics for 2022
Part of the IDEX Difference is building and engaging great teams.
IDEX has earned a reputation as a respected employer with a
welcoming culture, where 80% of employees feel a strong sense
of belonging, according to our 2022 iSay employee engagement
survey. Employee engagement is essential to create a diverse,
inclusive, and equitable culture where all employees thrive and
76% 86% 79%
have an equal opportunity to do and be their best.
Employee Engagement Survey Participation Manager Effectiveness"
IDEX_SustainabilityReport2022_accessible_version.txt,"nity to do and be their best.
Employee Engagement Survey Participation Manager Effectiveness
We are proud that 76% of our employees are engaged and that
this has remained stable through the years of highest volatility 71%
MFG Industry
from the COVID-19 pandemic. Key engagement drivers are
Average
our culture and the IDEX Difference—engaged employees are
excited about the future, confident about our ability to execute,
and perceive our values to be an accurate representation of
working for IDEX.
To give a voice to every employee, we listen through our annual"
IDEX_SustainabilityReport2022_accessible_version.txt,"e
shared with all employees so that local leaders and employees
can work together to take meaningful action based on the areas
deemed most important for their businesses.
We use a Manager Effectiveness Index to understand how
employees perceive leader effectiveness. IDEX has consistently
outperformed the industry in this important measure for the past four
years, standing in the top quartile of the manufacturing industry.
IDEX 2022 Sustainability Report Our People 22EMPLOYEE BENEFITS & WELLNESS
We understand that offering competitive pay and benefits, We enable employee development and growth by offering our Many IDEX businesses organize complimentary wellness"
IDEX_SustainabilityReport2022_accessible_version.txt,"articipate in our Tuition Reimbursement Program. fairs, and “lunch and learns” with nutritionists. Businesses
balance. We believe in paying for performance and offer Through the program, certain expenses from secondary also provide discounted opportunities for individual wellness
highly competitive compensation packages that provide educational institutions are reimbursed up to $5,250 per year. opportunities promoting nutrition and activity.
many employees with short-term incentives and rewards
for exceeding expectations. We also provide stock-based, More detail on the employee benefits we offer can be found on"
IDEX_SustainabilityReport2022_accessible_version.txt,".
many employees with short-term incentives and rewards
for exceeding expectations. We also provide stock-based, More detail on the employee benefits we offer can be found on
long-term incentives to approximately 450 of our leaders. We recognize the importance of family IDEX’s Our Benefits and Rewards webpage.
For information on pay equity, please see page 25. bonding when a child joins the family.
At IDEX, we value employees, and this includes a steadfast
IDEX offers parental leave benefits to
IDEX offers a range of employee benefits outside of the U.S. commitment to the protection of human rights and fair labor"
IDEX_SustainabilityReport2022_accessible_version.txt,"ers are treated fairly and equitably,
to all employees, with variation based on local regulation with no tolerance for human rights abuses, discrimination,
and collective bargaining agreements. In 2022, we added At IDEX, we recognize the importance of family bonding when harassment, or retaliation. Our policies demonstrate our
reimbursement of travel costs for covered medical care a child joins the family, whether through birth or adoption. commitment to providing equal employment opportunities
not available in an employee’s home area. IDEX also offers Under the IDEX U.S. Parental Leave Benefits Program, eligible and prohibiting discrimination and harassment of all types"
IDEX_SustainabilityReport2022_accessible_version.txt,"on the basis of
with paid time available through IDEX’s short-term disability race, color, religion, ethnicity, sex, sexual orientation, gender
Eligible IDEX employees have access to two 401(k) coverage. Biological fathers and adoptive parents are also identity or expression, gender stereotyping, pregnancy,
retirement plans: a traditional IDEX-funded matching plan eligible under the program to receive six weeks of paid time off. childbirth or related medical condition, marital status, national
that requires an employee contribution, and an additional origin, age, disability (physical or mental), protected military or"
IDEX_SustainabilityReport2022_accessible_version.txt,"ical or mental), protected military or
IDEX-only contribution plan. IDEX is proud to promote a work environment that values health veteran status, genetic information, citizenship status, or any
and wellness. We encourage all full-time employees enrolled in other protected characteristics. IDEX recognizes and respects
IDEX provides the opportunity for our U.S. employees to our U.S. Healthcare Benefit Plan to participate in our third-party the rights of employees regarding freedom of association
share in our success through our Employee Stock Purchase operated Wellness Program. Participating employees have and collective bargaining, and we engage in a constructive"
IDEX_SustainabilityReport2022_accessible_version.txt,"zenship status, or any
and wellness. We encourage all full-time employees enrolled in other protected characteristics. IDEX recognizes and respects
IDEX provides the opportunity for our U.S. employees to our U.S. Healthcare Benefit Plan to participate in our third-party the rights of employees regarding freedom of association
share in our success through our Employee Stock Purchase operated Wellness Program. Participating employees have and collective bargaining, and we engage in a constructive
Plan, which allows an employee to purchase IDEX company access to annual biometric screenings, health evaluations, and open dialogue process with our employees and their"
IDEX_SustainabilityReport2022_accessible_version.txt,"ls and professional resources needed to accelerate our to reach their full potential at IDEX. In 2022, we hired three full-
last report is the development of a DEI strategy. In 2021, our
DEI cultural journey. We are confident that having a workforce time DEI professionals to best position ourselves to successfully
CDO gathered input from key stakeholders, including focus
that represents the communities in which we operate further cascade these strategic initiatives deeper into the organization.
groups, Employee Resource Groups, and individual champions"
IDEX_SustainabilityReport2022_accessible_version.txt,"LT) Hired Chief Diversity, Equity & Inclusion Officer Launched DEI strategic roadmap
participation of some groups. launched a DEI taskforce and
established DEI priority areas Integrated DEI success metrics Introduced cultural competence
into ELT compensation development to senior leadership and Board
ƒ Inclusion is the degree to which an individual perceives ELT set long-term DEI goals
that they are an esteemed member of the work group Introduced multiple IDEX Hired DEI team and established DEI
Employee Resource Groups organizational structure"
IDEX_SustainabilityReport2022_accessible_version.txt,"sive leadership looks like at various management levels.
looks like, because the way we think and process cultural inputs is regression analyses to ensure that the actual pay of our employees
directly related to our ability to act and behave more inclusively. ƒ IDEX Inclusion Summit: In 2022, we held our first IDEX aligns to predicted pay. In 2021, we completed two additional
Inclusion Summit. This three-day event was open to all IDEX regression analyses and reviewed 84 negative outliers, which
In 2021 and 2022, our Executive Leadership Team, Board of employees and focused on inclusive leadership development. represented 2.4% of the employee population, a reduction compared"
IDEX_SustainabilityReport2022_accessible_version.txt,"d focused on inclusive leadership development. represented 2.4% of the employee population, a reduction compared
Directors, and nearly 150 of IDEX’s top senior leaders across the IDEX leaders attended sessions on DEI Improvement Planning, to our 2019 study. As a result of these reviews, we provided base pay
organization completed the Intercultural Development Inventory Reducing Bias in the Workplace, The Mindset of the Inclusive adjustments for employees found to be outliers, where appropriate,
(IDI). The IDI assesses intercultural competence—the ability Leader, and Leveraging Data to Improve DEI Outcomes. further reinforcing our commitment to employee engagement and"
IDEX_SustainabilityReport2022_accessible_version.txt,"troduced a comprehensive inclusive learning and
development approach aimed at equipping IDEX leaders with
behavioral expectations, skills-based training, and resources to
improve their competence as inclusive leaders.
ƒ Inclusive Conversations Training for Leaders: In 2021, we
delivered “Inclusive Conversations” training to senior business,
finance and HR leaders globally.
ƒ IDEX Diversity Day: IDEX Leaders participate annually to
facilitate activities that celebrate and value the uniqueness of
IDEX’s global employee community."
IDEX_SustainabilityReport2022_accessible_version.txt,"comes to DEI, we recognize that successfully driving
and eliminate barriers created by conscious and unconscious
progress requires not only the right tone from the top, but also IDEX African-American (IAAm)
bias throughout the employment life cycle. As part of our
engagement and ownership by each of our businesses around
Equity Principles Campaign pledge, we commit to achieving
the world. An example of local engagement is the formation of
greater gender equity in leadership positions throughout
Employee Resource Groups (ERGs), which are often considered"
IDEX_SustainabilityReport2022_accessible_version.txt,", collaborate, and find common ground, and they
serve as a resource to grow our collective understanding of In 2022, we significantly expanded our corporate DEI outreach
uniqueness and diversity across the enterprise. and partnership efforts to include the following organizations:
IAPi (IDEX Asian Pacific Islander)
ƒ SWE—Society of Women Engineers
ƒ Out and Equal
ƒ WiM—Women in Manufacturing
In-Balance (IDEX Women’s Network)
ƒ SHPE—Society of Hispanic Professional Engineers
ƒ National Black MBA
We have a tremendous opportunity to grow our Employee ƒ ELC—Executive Leadership Council"
IDEX_SustainabilityReport2022_accessible_version.txt,"es Officer and Chief
where we live and do business.
Diversity, Equity & Inclusion Officer, these efforts have led to a
steady increase in representation of women and representation Our 2021 Employer Information Report (EEO-1) is available on
of racial and ethnic minorities in leadership positions. the Corporate Governance Highlights page of our website.
Representation of Women (Globally)[1]
2020 2021 2022
Senior Leaders 28% 28% 31%
People Managers 23% 21% 22%
Individual Contributors 27% 29% 30%
[1] These numbers do not include employee populations associated with acquisitions completed in 2021 or 2022."
IDEX_SustainabilityReport2022_accessible_version.txt,"8% 31%
People Managers 23% 21% 22%
Individual Contributors 27% 29% 30%
[1] These numbers do not include employee populations associated with acquisitions completed in 2021 or 2022.
Representation of People of Color (U.S.)[2]
2020 2021 2022
Senior Leaders 13% 18% 21%
People Managers 16% 19% 19%
Individual Contributors 25% 29% 31%
[2] People of color are inclusive of American Indian, Alaskan Native, Black/African American, Hispanic/Latino, Native Hawaiian or other Pacific Islander, or two or more
races or ethnicities. These numbers do not include employee populations associated with acquisitions completed in 2021 or 2022."
IDEX_SustainabilityReport2022_accessible_version.txt,"tem to manage chemicals used across all U.S. sites. Use of
EH&S programs to meet the needs and regulatory requirements a centralized repository improves compliance and allows site
of the business while aligning with corporate expectations. EH&S specialists more time to focus on proactive health and
safety programs.
Our corporate EH&S policies are a key part of our global EH&S
program. They apply to all IDEX businesses and represent our Our businesses also use health and safety management system
commitment to maximizing sustainable value for our employees certifications as part of driving employee health and safety."
IDEX_SustainabilityReport2022_accessible_version.txt,"customized to the demands of the business to more goals associated with those goals.
effectively address relevant safety challenges. ƒ GAST has a safety hazard mitigation program through which
employees “catch” and resolve a safety issue. Each month, the When a recordable incident occurs at a facility, the local EH&S
To monitor the effectiveness and applicability of local business- safety committee votes on the “best catch,” and the winning team works to understand the root cause(s) and develop
designed safety trainings, the trainings are reviewed during EH&S employee is awarded the “good catch” fish. countermeasures to prevent recurrence. Each month, the corporate"
IDEX_SustainabilityReport2022_accessible_version.txt,"our pillars, and, internationally, we partner
an increasing number of employees in its meaningful work. The The IDEX Foundation Board of Directors governs Foundation with a third party to vet potential non-profit partners, approve
Foundation’s impact is amplified through the combination of operations. The Foundation Directors are selected annually funding requests, and distribute donations.
both financial support and hands-on volunteerism. and consist of employees and leadership from across the
company, both from the corporate office and businesses Every year, as part of our employee engagement survey, we seek"
IDEX_SustainabilityReport2022_accessible_version.txt,"e causes. At each business, Foundation site coordinators are responsible initiatives that meet at least one of the following criteria:
for developing local partnerships, engaging employees, and
In 2021, IDEX contributed an additional $6 million to the coordinating volunteer activities funded by Foundation grants.
Foundation. This funding allowed the Foundation to These local site coordinators are the lifeline of the Foundation, Community Engagement Improving the communities in which we live and
increase overall giving and supported the addition of an making good work come to life for our people and the work through funding assistance and direct IDEX employee involvement."
IDEX_SustainabilityReport2022_accessible_version.txt,"lunteer activities funded by Foundation grants.
Foundation. This funding allowed the Foundation to These local site coordinators are the lifeline of the Foundation, Community Engagement Improving the communities in which we live and
increase overall giving and supported the addition of an making good work come to life for our people and the work through funding assistance and direct IDEX employee involvement.
organizations they serve.
Equity & Opportunity Creating opportunities for underserved,
Employee Participation[1], [2] Amount of Donated Funds[1]"
IDEX_SustainabilityReport2022_accessible_version.txt,"ntaged people of color in our communities.
Health & Safety Supporting direct response in the face of disasters and
emergencies in regions where IDEX does business.
Leadership & Education Building leaders through youth-based programs,
including focused education and skill development in the areas of science,
[1] These numbers do not reflect our operations in China and India which operate community impact programs separate from the IDEX Foundation.
technology, engineering, and mathematics (STEM).
[2] Data reflects the number of times an IDEX employee volunteered for an event. An individual employee may have volunteered for more than one event."
IDEX_SustainabilityReport2022_accessible_version.txt,"$55,000 for technology, housing, and group
volunteer work resulted in 14,678 total pounds of food packed, serves grades 6–8 and is sought-after in the region for its reputation for providing an excellent therapy for at-risk youth in the Chicago area.
and free education. During COVID lockdowns, IDEX provided tablets so students could continue
which equals enough food to make 12,232 meals. Because of
learning while protecting the community. The school also makes a point of serving girls, reaching
our employee contributions and volunteerism, we were able"
IDEX_SustainabilityReport2022_accessible_version.txt,"t; Medical proceedings associated with bribery or corruption HC-MS-510a.1
Equipment & Supplies
Medical Equipment & Supplies Description of code of ethics governing Discussion HC-MS-510a.2 All interactions are governed by our Code of Business Conduct and Ethics. IDEX employees
interactions with health care professionals and Analysis or representatives do not interact directly with health care professionals. For more information,
please see the Business Ethics & Compliance section of this report.
Employee Health & Safety"
IDEX_SustainabilityReport2022_accessible_version.txt,"Health & Safety section of this report.
Semiconductors Description of efforts to assess, monitor, and reduce Discussion TC-SC-320a.1 Please see the Occupational Health & Safety and Product Quality, Safety & Compliance
exposure of employees to human health hazards and Analysis sections of this report for a description of efforts to assess, monitor, and reduce exposure of
employees to human health hazards.
Semiconductors Total amount of monetary losses as a result of Quantitative TC-SC-320a.2 $0
legal proceedings associated with employee"
IDEX_SustainabilityReport2022_accessible_version.txt,"n future reporting.
[3] Hazardous waste totals were collected for Q1–Q3 2022. This number will be updated to reflect Q4 data in future reporting.
Our People
2020 2021 2022
Workforce Demographics[1]
Women: Senior Leaders (Global) 28% 28% 31%
Women: People Managers (Global) 23% 21% 22%
Women: Individual Contributors (Global) 27% 29% 30%
People of Color: Senior Leaders (U.S.) 13% 18% 21%
People of Color: People Managers (U.S.) 16% 19% 19%
People of Color: Individual Contributors (U.S.) 25% 29% 31%
[1] These numbers do not include employee populations associated with acquisitions completed in 2021 or 2022. People of color are inclusive of American Indian, Alaskan Native, Black/African American, Hispanic/Latino, Native Hawaiian or other Pacific Islander, or two or more races or ethnicities."
IDEX_SustainabilityReport2022_accessible_version.txt,"or 2022. People of color are inclusive of American Indian, Alaskan Native, Black/African American, Hispanic/Latino, Native Hawaiian or other Pacific Islander, or two or more races or ethnicities.
IDEX 2022 Sustainability Report Appendix 632020 2021 2022
Safety Performance
Total Case Incident Rate (# of work related injuries 1.53 1.37 1.37
per hundred full time workers per year)
Lost Workday Case Incident Rate (# of workdays 0.55 0.54 0.59
lost × 200,000)/total hours worked)
Community Impact[1]
Employee Participation[2] 1,146 2,516 3,967"
IDEX_SustainabilityReport2022_accessible_version.txt,"ustainability Report Appendix 632020 2021 2022
Safety Performance
Total Case Incident Rate (# of work related injuries 1.53 1.37 1.37
per hundred full time workers per year)
Lost Workday Case Incident Rate (# of workdays 0.55 0.54 0.59
lost × 200,000)/total hours worked)
Community Impact[1]
Employee Participation[2] 1,146 2,516 3,967
Funds Donated by the IDEX Foundation $551,000 $1,245,804 $1,373,370
Percent of Sites Participating in IDEX Foundation Events 67% 91% 81%
Number of Events 68 78 116
Employee School Donations Matched $118,870 $82,000 $103,000"
IDEX_SustainabilityReport2022_accessible_version.txt,"kday Case Incident Rate (# of workdays 0.55 0.54 0.59
lost × 200,000)/total hours worked)
Community Impact[1]
Employee Participation[2] 1,146 2,516 3,967
Funds Donated by the IDEX Foundation $551,000 $1,245,804 $1,373,370
Percent of Sites Participating in IDEX Foundation Events 67% 91% 81%
Number of Events 68 78 116
Employee School Donations Matched $118,870 $82,000 $103,000
Amount of Donated Funds by Business Units (as $252,786 $285,000 $284,000
approved by the Corporate Compliance Department)
Employee Engagement"
IDEX_SustainabilityReport2022_accessible_version.txt,"ate (# of workdays 0.55 0.54 0.59
lost × 200,000)/total hours worked)
Community Impact[1]
Employee Participation[2] 1,146 2,516 3,967
Funds Donated by the IDEX Foundation $551,000 $1,245,804 $1,373,370
Percent of Sites Participating in IDEX Foundation Events 67% 91% 81%
Number of Events 68 78 116
Employee School Donations Matched $118,870 $82,000 $103,000
Amount of Donated Funds by Business Units (as $252,786 $285,000 $284,000
approved by the Corporate Compliance Department)
Employee Engagement
Employee Engagement Index 78% 76% 76%"
IDEX_SustainabilityReport2022_accessible_version.txt,"68 78 116
Employee School Donations Matched $118,870 $82,000 $103,000
Amount of Donated Funds by Business Units (as $252,786 $285,000 $284,000
approved by the Corporate Compliance Department)
Employee Engagement
Employee Engagement Index 78% 76% 76%
Response Rate 86% 85% 86%
[1] These numbers do not reflect our operations in China and India which operate community impact programs separate from the IDEX Foundation. Please see the Our Communities section of this report for additional information.
[2] Data reflects the number of times an IDEX employee volunteered for an event. An individual employee may have volunteered for more than one event."
IDEX_SustainabilityReport2022_accessible_version.txt,"upplier Code. We
take additional due diligence measures, including supplier audits
and visits, to mitigate the risk of human trafficking and slavery.
The Supplier Code requires our
suppliers to confirm to our Conflict
Minerals Policy, anti-slavery and
human trafficking guidelines.
IDEX 2022 Sustainability Report Our Governance, Ethics & Compliance 18A Message From Our CEO
About IDEX Corporation
Our Governance,
Ethics & Compliance
Our People
At IDEX, our success is possible because of the valued
contributions of our workforce. Recognizing that our"
IDEX_SustainabilityReport2022_accessible_version.txt,"d capabilities of
our employees. Investment in our people through
attention to talent development, talent management,
employee engagement, diversity, equity, and
inclusion, and occupational health and safety enables
us to accomplish our company goals and deliver
innovative customer solutions.
Our Products
Our Communities
OUR PEOPLE
Our Planet
AppendixTALENT MANAGEMENT & DEVELOPMENT
We are committed to creating a work environment where As part of our Organizational Talent Cycle (OTC) process, we
our people can thrive and grow. Our workplaces promote conduct regular in-depth talent reviews of our workforce teams"
IDEX_SustainabilityReport2022_accessible_version.txt,"on, increase self-confidence,
and reward our most dedicated employees. leverage networks, and overcome the
obstacles of gender bias.
IDEX 2022 Sustainability Report Our People 20Talent Development Our Executive Leadership team sponsors accelerated, on-the-
job learning for key leaders through IDEX Academy’s global
Embodying the Great Teams component of the IDEX Difference,
leadership development programs. These programs provide Upon completion of these leadership learning programs, participants
our workforce advancement strategy succeeds through"
IDEX_SustainabilityReport2022_accessible_version.txt,"le 20Talent Development Our Executive Leadership team sponsors accelerated, on-the-
job learning for key leaders through IDEX Academy’s global
Embodying the Great Teams component of the IDEX Difference,
leadership development programs. These programs provide Upon completion of these leadership learning programs, participants
our workforce advancement strategy succeeds through
opportunities for emerging leaders across geographies and have shared they feel more prepared to overcome challenges and
investment in skill-building for the entire workforce and leadership"
IDEX_SustainabilityReport2022_accessible_version.txt,"fits naturally into our culture, Setting a Strategic DEI Agenda of diversity across the organization. Based on that feedback, as
our values, and our recognition that our people help us to well as his experience increasing diversity in the workplace and
Our commitment to DEI starts at the top. Our Chief Diversity,
maximize our potential as an organization. We firmly believe leading campaigns to mitigate bias, our CDO recommended a
Equity & Inclusion Officer (CDO), hired in 2021, reports directly
that a diverse and inclusive workforce leads to diversity of three-year DEI strategic roadmap to the Executive Leadership"
IDEX_SustainabilityReport2022_accessible_version.txt,"ve IDEX to continue to be a diverse, equitable, and inclusive inclusive leadership skills, and to create processes to help
place to work. We significantly increased our investment in mitigate bias and provide equitable opportunities for everyone
One of the most significant milestones since publishing our
the tools and professional resources needed to accelerate our to reach their full potential at IDEX. In 2022, we hired three full-
last report is the development of a DEI strategy. In 2021, our
DEI cultural journey. We are confident that having a workforce time DEI professionals to best position ourselves to successfully"
IDEX_SustainabilityReport2022_accessible_version.txt,"er Enhancement
strategy and journey.
ƒ Seramount
Partnerships & External Initiatives
These partnerships allow us to develop processes for our
Our commitment to DEI extends beyond the walls of IDEX. hiring candidate pool to represent the diversity of our local
We value external DEI partnerships to expand our talent communities. When hiring, we strive to consider a broad and
network, grow our inclusive leadership skills, and support the diverse slate of candidates to promote a diverse, equitable,
communities in which we do business. and inclusive workforce and to build the best possible teams"
IDEX_SustainabilityReport2022_accessible_version.txt,"communities in which we do business. and inclusive workforce and to build the best possible teams
to drive innovation and collaboration.
IDEX 2022 Sustainability Report Our People 26Workforce Diversity We aim to provide an inclusive and equitable environment
where all IDEX colleagues can be their best and do their
In 2022, we launched an initiative to better enable the retention,
best every day, and we are working to continue increasing
hiring, and promotion of women and people of color across
representation in the workforce to reflect the communities"
IDEX_SustainabilityReport2022_accessible_version.txt,"Hazardous Waste Incinerated Not Tracked 14% 16%
[1] In 2020, our water use calculation only reflected business units with the most material water usage. In 2021 (and going forward), we captured water usage across all of our facilities.
[2] Water use is estimated for Q4 2022. 2022 water use will be updated with actual values in future reporting.
[3] Hazardous waste totals were collected for Q1–Q3 2022. This number will be updated to reflect Q4 data in future reporting.
Our People
2020 2021 2022
Workforce Demographics[1]"
Jacobs_PlanBeyond_2.0.txt,"o one is left behind.
As a purpose-led company, we know we have a pivotal
role to play. We consider it not only good business but
our duty to channel our expansive capabilities in
resilient infrastructure, clean water, green energy,
social value and beyond, toward benefitting people
and the planet.
As our business shifts, so do our sustainability
ambitions. The future of Jacobs is one that not only
integrates environmental, social and governance
considerations into our operations – but into the
hearts and minds of every employee and into every"
Jacobs_PlanBeyond_2.0.txt,"ing and initiatives. In the wake of
contributing to structural change in broader society.
the global awakening around systematic racial inequalities witnessed in the U.S. Black
community during the summer of 2020, we launched our global Action Plan for
´ Continue elevating improved accessibility for all as a
Advancingg Justice & Eqqualityy.
key business priority.
Nearly 20,000 employees are involved in our eight Jacobs Employyee Networks. These
´ Continue creating a Culture of Caring, a blended
employee-led groups play a critical role in fostering our Culture of Caring and belonging"
Jacobs_PlanBeyond_2.0.txt,"ing access to all employees, in partnership
with the Royyal Scottish Geoggrapphical Societyy.
We have developed Climate Risk Managger, a cloud-based platform to bring
together global climate data and location intelligence to allow companies to
make faster and more accurate decisions on where to invest limited resources
to guard against climate risks.Cultural transformation
To live our company purpose and values, while ensuring we deliver on our Sustainable Business Objectives and Targets, every
employee must take responsibility for sustainability in their jobs, regardless of their role. To achieve this behavioral transformation,"
Jacobs_PlanBeyond_2.0.txt,"ion and upskilling Knowledge sharing
´ Create a sustainability upskilling training pilot program. ´ Promote Sustainability Communities of Practices.
´ Launch global STEAM initiative focused on ´ Expand membership and engagement in Jacobs
SDG education. Sustainability Network.
´ Leverage Jacobs Empployyee Networks to raise ´ Launch quarterly sustainability newsletter with strategy
awareness and integrate sustainability education progress updates.
into their activities.
Incentives and recognition
´ Continue employee engagement and education via"
Jacobs_PlanBeyond_2.0.txt,"o achieve a better and more sustainable future for all.” Established in 2015 by the United Nations General Assembly, they
are intended to be achieved by 2030.
Social value Analysis and measurement of the social, economic and environmental impacts of an organization’s activities on
individuals, communities and society. Example components include health and wellbeing, equity and economic inclusion,
housing, mobility, work, and access to vital services and sustainable and resilient infrastructure.
STEAM Science, Technology, Engineering, Arts & Mathematics – strategic employee volunteering focus for Jacobs."
Jacobs_PlanBeyond_2.0.txt,"ve the mental health and wellbeing of
effects on the physical and mental health of society are yet to unfold, not only due to
the impacts of COVID-19, but also the disruption it has caused to the population’s by 2025
One Million Lives
ongoing healthcare needs. The role that critical service providers and their associated
supply chains play in sustaining public health and safety has been thrust into the
spotlight. Jacobs’ Culture of CaringSM permeates beyond the boundaries of our
What comes next
workforce and clients, and positively influences members of broader society – touching"
Jacobs_PlanBeyond_2.0.txt,"pation in
governance across our global portfolio.
the UN Global Comppact Youngg SDG Innovators pproggram.
Evolve is a tool that recommends practical
sustainability opportunities and metrics bespoke to
a project, in line with the UN SDGs.SUSTAINABLE BUSINESS OBJECTIVE
Core SDG
4. Create a fair and inclusive future for all
»
Inequality within and among countries is a persistent cause for concern, and it is
Target
estimated that income inequality has risen byy 6% in developing countries due to the
Engage our workforce in 50,000 hours of global"
Jacobs_PlanBeyond_2.0.txt,"s witnessed in the U.S. Black
community during the summer of 2020, we launched our global Action Plan for
´ Continue elevating improved accessibility for all as a
Advancingg Justice & Eqqualityy.
key business priority.
Nearly 20,000 employees are involved in our eight Jacobs Employyee Networks. These
´ Continue creating a Culture of Caring, a blended
employee-led groups play a critical role in fostering our Culture of Caring and belonging
workplace that values the safety, positive mental health
across our workforce, providing opportunities for collaboration and both personal and"
Jacobs_PlanBeyond_2.0.txt,"for collaboration and both personal and
and sense of belonging for all employees.
professional development in a supportive, global community.
´ Create a social value program with Simetrica-Jacobs
that supports inclusive economic growth and
community regeneration.
At Jacobs we focus on putting values into practice. We have developed a Social
Value Solutions framework that helps clients create social value and contribute
to a more inclusive economy. For example, we are leading the development and
implementation of a citywide Workforce Development Program at three U.S."
Jacobs_PlanBeyond_2.0.txt,"cloud-based platform to bring
together global climate data and location intelligence to allow companies to
make faster and more accurate decisions on where to invest limited resources
to guard against climate risks.Cultural transformation
To live our company purpose and values, while ensuring we deliver on our Sustainable Business Objectives and Targets, every
employee must take responsibility for sustainability in their jobs, regardless of their role. To achieve this behavioral transformation,
we have created a plan to make sustainability a cultural imperative across our global workforce. As we implement PlanBeyond 2.0,"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"on.
The company implemented training on reviewed with the Cummins Legal function There was no course on Preventing Money
AT CUMMINS
human rights in 2019 for employees working Laundering as the course is being refreshed.
for appropriate action.
with Cummins’ supply chain, and integrated
provisions of the policy directly into the TRAININGS COMPLETED
Eyes Open Audits conducted primarily by
Cummins is committed to employees in the Purchasing function when ETHICS CERTIFICATION Anti-Bribery and
5,634
visiting suppliers to check on worker safety, Prohibited Payments"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"using product bills of which hindered many suppliers from meeting Audits in 2022. These reviews,
requirements in the treatment of employees
material, material standards and production deadlines, performing at the appropriate level typically completed during
and other stakeholders.
methods to estimate the carbon footprint and meeting sustainability requirements. visits to suppliers on contract
of Cummins’ products down to the The code also prohibits suppliers that performance, look specifically
This program provided direct support for problems in worker health,"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"employees
material, material standards and production deadlines, performing at the appropriate level typically completed during
and other stakeholders.
methods to estimate the carbon footprint and meeting sustainability requirements. visits to suppliers on contract
of Cummins’ products down to the The code also prohibits suppliers that performance, look specifically
This program provided direct support for problems in worker health,
component and part level. do business with Cummins from using
of critical, high-risk suppliers, often with worker safety, protecting"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"s’ Cummins follows the law everywhere, suppliers to take direct action for change.
products or reduce their carbon footprint. and suppliers to the company are subject Since the program’s inception, over
to Eyes Open Audits when Cummins 40 suppliers have transitioned out and
The company pays close attention to what
employees visit suppliers to review are back on track for success.
components are (and aren’t) allowed in
contract performance or other business.
Cummins products for the markets they
They look specifically for problems in worker"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ducts or reduce their carbon footprint. and suppliers to the company are subject Since the program’s inception, over
to Eyes Open Audits when Cummins 40 suppliers have transitioned out and
The company pays close attention to what
employees visit suppliers to review are back on track for success.
components are (and aren’t) allowed in
contract performance or other business.
Cummins products for the markets they
They look specifically for problems in worker
serve. The company uses a class-leading
health, worker safety, protecting Cummins’"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ering, (DE&I) into the fabric of our company starts more than 70% of the company’s employees
Purdue University, 1996. at the top. As CEO, I want to reinforce that volunteered in their communities, nearly Whether it’s our work to lead on
Master of Science in Mechanical Engineering, this work is critical to our success as a reaching pre-pandemic levels. climate action, keep people first
Massachusetts Institute of Technology, 1998. business and deeply personal to me. in everything we do, or engage
Employee-led engagement is complemented"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"acilities include all consolidated
The GRI Content Index and operations and joint ventures that are part
Data Book (2019). of the Cummins Enterprise Environmental
Management System. This data includes
Cummins’ approach to sustainability
In 2021, Cummins also issued its first Human 2022 data from Meritor Inc., which the
is grounded in the company’s mission Capital Management Report exploring company acquired in August 2022.
the company’s workforce and Cummins’
of “making people’s lives better by
Employee data consists of just consolidated"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"t ventures that are part
Data Book (2019). of the Cummins Enterprise Environmental
Management System. This data includes
Cummins’ approach to sustainability
In 2021, Cummins also issued its first Human 2022 data from Meritor Inc., which the
is grounded in the company’s mission Capital Management Report exploring company acquired in August 2022.
the company’s workforce and Cummins’
of “making people’s lives better by
Employee data consists of just consolidated
approach to leadership development,
powering a more prosperous world.” compensation and benefits, employee operations. Demographic data from Meritor"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"22 data from Meritor Inc., which the
is grounded in the company’s mission Capital Management Report exploring company acquired in August 2022.
the company’s workforce and Cummins’
of “making people’s lives better by
Employee data consists of just consolidated
approach to leadership development,
powering a more prosperous world.” compensation and benefits, employee operations. Demographic data from Meritor
was still being processed on Dec. 31, 2022.
training, and diversity, equity and inclusion.
Our reports on employee data will include"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"2 18,917 17,221
to sustainability, including a number
Water use (millions of gallons) 1,171 988
of metrics to gauge environmental,
Generated waste 306 289
social and governance excellence.
SOCIAL**
The environmental numbers in the chart on this page include
H&S Severity Case Rate 0.26 0.34
Meritor’s performance in 2018. The other metrics do not
include Meritor’s performance in either year. Cummins
H&S Incidence Rate 0.65 0.71
acquired Meritor in August 2022.
Women in the workforce 26.87% 28.34%
Every Employee Every Community 83% 73%"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"d doing more to use
Environmental performance chart ....29
Goals at a glance ..............................30
less of the world’s natural resources.
The path to Cummins’ GHG goal .......31
The company is also committed to Committed to renewables ................32
Three key pillars ...............................33
acting with transparency.
Environmental justice policy .............34INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 17
PLANET 2050 OVERVIEW //
A Cummins employee uses scanner technology"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"e emissions of volatile organic
Reuse water and return compounds from paint and coating
clean to the community. operations by 50%.
5. Create a circular lifecycle plan
for every part to use less,
USING NATURAL use better, use again.
RESOURCES IN THE
6. Generate 25% less waste in
MOST SUSTAINABLE WAY facilities and operations as a
percent of revenue.
2050 TARGETS:
7. Reuse or responsibly recycle 100%
of packaging plastics and eliminate
Design out waste in single-use plastics in dining facilities,
products and processes. at employee events and as amenities."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"creasing to the ocean each day.
packaging plastics the use of returnable packaging across
and eliminate Cummins’ supply chain and developing and
As part of its PLANET 2050 goal, the company is committed to tackling pollution
single-use integrating a packaging specification system 4X
tied to plastics and developing a management strategy for the synthetic material
plastics in dining into the company’s sourcing processes to
that is in line with the principles around a circular economy. Cummins has
facilities, employee ensure the creation of accurate inbound"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"GHG emissions reduce Scope 3 compounds from every part to use facilities and 100% of packaging consumption exceed Cummins’
from facilities from newly sold GHG emissions paint and coating less, use better, operations as plastics and in facilities and annual water use
and operations products by 25%. from products operations use again. a percentage eliminate single- operations in all Cummins
by 50%. in the field by 50%. of revenue. use plastics in by 30%. regions.
by 55 million dining facilities,
metric tons. employee amenities"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 36
COMMUNITY ENGAGEMENT //
BUILDING MORE
PROSPEROUS
COMMUNITIES IS A
CUMMINS PRIORITY
In 2022, Cummins furthered its rich
legacy of leadership and dedication
to the civil rights, advancement and
prosperity of the people living and
working in the communities it serves.
The company’s corporate responsibility work aims to both build more prosperous
communities and inspire its employees. To accomplish this, Cummins focuses on
employee-led volunteerism in communities, and four strategic community programs"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"s Powers Women,
Among many initiatives to achieve 73%*
initiatives is Cummins TEC: a global strategic program to achieve
Cummins’ environmental goals,
Technical Education for gender equality, and Cummins
Cummins Water Works is a global
Communities a global strategic strategic program to strengthen Advocating for Racial Equity, Percentage of Cummins employees
program to build technical vocational which seeks to drive a sustainable who participated in the company’s
communities through sustainable
skills through school-based, industry- impact in dismantling institutional chief employee volunteering program."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"sustainable
skills through school-based, industry- impact in dismantling institutional chief employee volunteering program.
water, and address the global
supported skills training that leads racism and creating systemic equity
water crisis.
to living wage jobs. in the United States. *Data doesn’t include employees joining Cummins
through 2022 acquisitions.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 38
KEY ENGAGEMENT STATISTICS //
ENGAGEMENT GRANT MAKING
One of the company’s chief metrics for community engagement is employee Global community giving in 2022 totaled $33.9"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"gram.
water, and address the global
supported skills training that leads racism and creating systemic equity
water crisis.
to living wage jobs. in the United States. *Data doesn’t include employees joining Cummins
through 2022 acquisitions.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 38
KEY ENGAGEMENT STATISTICS //
ENGAGEMENT GRANT MAKING
One of the company’s chief metrics for community engagement is employee Global community giving in 2022 totaled $33.9
COMMUNITY participation in Cummins’ Every Employee Every Community (EEEC) program, million. A look at 2022 grantmaking by priority area:"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"nd Cummins Powers Women perfectly concerns as a female driver and the program since launching in 2018.
development.
reflects our commitment on caring,” said lack of time to care for her children.
Nathan Stoner, Vice President of Cummins’
Through the WE Trucking program,
Area Business Organization in China.
she will acquire the skills-training 1,300+
“Women have made great contributions to
and knowledge to help individual
the trucking industry, but they are confronting
owners and operators run a
unique challenges. Through the WE Trucking business, and guidance on Cummins employee ambassadors"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"pivari/Jundiaí and Paraíba
782
do Sul watersheds. Last year, Cummins
11
launched a project with The Nature
40
Conservancy to conserve 67,000 hectares Cummins TEC graduates in 2022.
of forest to help stabilize the landscape. Countries with projects so far:
Advocacy efforts involving U.S., Canada, Mexico, Peru,
Cummins regional leaders have been active CARE volunteers or support. Brazil, South Africa, Spain, India,
participants in the program, continuing to 12.5% the Philippines, China and Ghana.
support employee engagement activities and"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"CIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 45
HEALTH AND SAFETY //
KEEPING COMPANY’S
MOST IMPORTANT ASSET
SAFE IS KEY TO CUMMINS
Cummins believes employees are its most
important asset, and the company is always
working to promote an interdependent safety
culture designed around reducing risk and
returning everyone home safely every day.
The company’s Health, Safety and Only through this kind of collaboration
Environment organization exists to ensure can a company create a truly
every employee, contractor, supplier and interdependent safety culture."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"nd the company is always
working to promote an interdependent safety
culture designed around reducing risk and
returning everyone home safely every day.
The company’s Health, Safety and Only through this kind of collaboration
Environment organization exists to ensure can a company create a truly
every employee, contractor, supplier and interdependent safety culture.
visitor has access to a healthy, safe and
This approach has resulted in a stellar record
clean work environment. Cummins, however,
for many years, with an employee Incidence"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"//
PURSUING CONTINUOUS Creating this kind of culture is critical The company’s PSIF Rate, the rate of HEALTH AND SAFETY
IMPROVEMENT to encouraging employees to report potentially serious injuries and fatalities,
BY THE NUMBERS
The company, however, believes there is potentially dangerous situations, so which increased from 0.41 in 2021 to
no acceptable rate for injuries. In 2021, corrective action can be taken to 0.52 in 2022.
Cummins implemented a new initiative address the underlying causes.
While there were no employee fatalities in $26 MILLION"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"0.57 in 2021 to 0.71 in 2022.
before the pandemic. injuries from musculoskeletal disorders by
Cummins’ efforts to build an organizational
The company’s Severity Case Rate, 2025 as part of national initiative targeting
culture that values safety by promoting a Employees are also being urged to talk about the most common workplace injury.
the rate of lost or restricted workdays,
workplace where performance excellence, the importance of an interdependent safety
which increased from 0.28 in 2021 to
trust and employee engagement are equally culture with their co-workers. In addition,"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"orkers.
remove risk in the deburring
and brushing process. Commit to a significant reduction of MSD injuries by creating safer outcomes
Deburring removes rough for millions of workers worldwide and reducing MSD risk and subsequent
and sharp edges from a part. injuries by 25% by 2025.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 48
DIVERSITY, EQUITY AND INCLUSION //
POWERING A CULTURE Cummins embraces diverse
perspectives and skills from every
OF INCLUSION
employee. The company is committed to"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ING CUMMINS’ VALUES portfolio of accessible technology solutions; company’s supply needs.
building standards to better 2022 of Cummins’ Cummins’ commitment to diversity, equity and striving for fair compensation and Cummins is a member, and has a
serve people with disabilities. five business
and inclusion can be seen in many ways. benefits for everyone. representative on the board, of the
segments.
Cummins launched a new The company, for example, promotes DE&I Billion Dollar Roundtable. Created
Disability Fundamentals through more than 150 employee resource In these ways and more, Cummins in 2001 to recognize corporations"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ummins’ U.S. DE&I not only helps the company better leading advocate for supplier
Vice Presidents The company also has learning and serve its customers, but also strengthens diversity initiatives.
who were Black development trainings to encourage Cummins’ business as a whole.
* Does not include employees joining or Latino in 2022.
Cummins through acquisition of Meritor Inc.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 50
DIVERSITY, EQUITY AND INCLUSION //
EMPLOYEE DIVERSITY GENDER* 46.7%"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ND INCLUSION //
EMPLOYEE DIVERSITY GENDER* 46.7%
Cummins is steadily increasing the number of women within its ranks globally,
Cummins is committed to diversity
especially among the company’s senior leadership.
across all its dimensions. Here’s look
at our workforce as of Dec. 31, 2022. Women on the 15-member
WOMEN IN CUMMINS WORKFORCE 2021 2022
Cummins Leadership Team.
OVERALL 27.8% 28.3%
Hourly 26.9% 27.4%
ABOUT OUR NUMBERS 41.7%
The 2022 data in this section for Salaried / exempt 29.1% 29.3%
employee race and gender does"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"rified NOTE: Based on workforce as of Dec. 31 in both years.
powertrain solutions for commercial
vehicle and industrial markets.
RACE AND ETHNICITY IN THE U.S.*
Cummins was still entering
Cummins’ goal is a workforce that reflects the markets where it does business. Here’s a look at the company’s workforce in the United States.
data for those approximately
10,000 employees into the TWO OR DECLINED
RACE & ETHNICITY ASIAN BLACK LATINO WHITE OTHER MORE RACES TO ANSWER
company’s information systems
in early 2023. So, employee"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ndatory and non-
company’s stakeholders:
mandatory on-line courses offered through
A WORKFORCE TO MEET Diverse, equitable and the Cummins Learning Center in 2022.
inclusive workplaces.
Top mandatory classes were on topics
FUTURE CHALLENGES Self-aware and effective leaders. ranging from diversity to ethical business
practices, and security awareness.
Talent processes extended to
Popular non-mandatory subjects ranged
every level and job type, so every from creating a high performing organization,
employee has access to training to health and safety leadership and"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"SO MUCH initiatives, training and development takes
place at individual business segments, at
Cummins employees to reach their full potential. Diversity, equity and inclusion (DE&I)
various functions and at the site level, too.
has contributed to innovation, profitability,
community impact and increased
representation across every dimension
To achieve this bold objective, of diversity at Cummins.
the company believes all employees,
Teams with different skillsets, approaches LEADERS SET THE TONE
regardless of employee type, must know"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"mmunity impact and increased
representation across every dimension
To achieve this bold objective, of diversity at Cummins.
the company believes all employees,
Teams with different skillsets, approaches LEADERS SET THE TONE
regardless of employee type, must know
what is expected of them, are rewarded and backgrounds are better equipped to Cummins has long believed the single
based on their performance, and have provide innovative solutions to customers’ biggest factor in a great work experience
access to differentiated experiences, biggest challenges. Diverse, accessible, for an employee is an excellent boss."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"the preceding pages. them and the company to improve.
nice weather to meet outside the campus of
buildings in downtown Columbus, Indiana.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 52
WORKFORCE // Cummins offers extensive training to EXTENDING TRAINING COMPETITIVE PAY
help leaders develop into the best version AND DEVELOPMENT AND BENEFITS
HOW WE WORK
of themselves. The company’s Building Leaders are committed to extending To attract and retain the best
Success in You training has the goal of to every employee at every level the employees, Cummins puts a focus"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"are designed to
improve the physical, mental and
safety classes to voluntary learning on FULL 99%
financial wellness of the company’s
data modeling, project management
employees throughout their lifetime. PART-TIME 1%
and advanced business problem-
Some examples include base and
Cummins Inc. solving tools such as Six Sigma.
HUMAN CAPITAL variable pay, medical benefits, paid
MANAGEMENT
REPORT The company believes strongly that formal time off, retirement savings plans HOURLY VS. SALARIED/EXEMPT
learning has an important role to play in and employee stock purchase plans."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"EPTH ON by practice and application to truly build Cummins employees are advancing
CUMMINS’ WORKFORCE competency. Cummins provides a wide in their earnings potential. Cummins WORK FLEXIBILITY
variety of opportunities to put training into supports pay equity and reviews
Cummins is serious about effective action, including real-world experience wages globally to ensure they REMOTE & HYBRID 47.3%
human capital management. with the tools and resources necessary are fair, equitable, and competitive.
to expand an employee’s skillset, and ON-SITE 49.9%"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"risks are assigned to members
committee’s expanded scope, but also the A one-time financial bonus in 2022 in of the Cummins Leadership Team.
SUSTAINABILITY critical role employees—and focus areas recognition of both the extraordinary
ESG oversight: The board and its
such as diversity, equity and inclusion— efforts by employees since the outset
committees provide strong oversight
play in creating the right work environment of the pandemic, and to encourage
EFFORTS of ESG risks and opportunities,
for success at Cummins. employee retention. including at least one annual review"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"will avoid conflicts of interest.
Code of Business Conduct for employees. the Ethics and Compliance function, or talk
05 We will demand that everything
Cummins believes ethical Suppliers must state they are in compliance to their Human Resources representative,
we do leads to a cleaner, healthier,
with the supplier code as a condition of a member of the company’s legal function
and safer environment.
behavior on the part of doing business. or their supervisor.
06 We will protect our technology,
every employee, contractor, Cummins has a strict no-retaliation policy our information and our"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ide a healthy and safe providing products or services to Business Conduct. Employees may
work environment for their employees. Cummins and its subsidiaries, joint report a potential violation through a secure
As the company grows, both through ventures, divisions, or affiliates. Available website or a toll-free telephone number.
Both the Supplier Code of Business Conduct
acquisitions and organically, the Ethics and in 15 languages, the supplier code is North America, for purposes of this chart,
and Cummins’ employee code of conduct"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"in the healthy workspace. Cases reported
Policy, which prohibits human trafficking, 37% 40% 41% 37%
Core Policies internal website overseen anonymously
any form of compulsory labor and the 05 Protect Cummins
by the Ethics and Compliance function.
use of underage workers. technology, information, Cases
More than 30 policies are summarized and intellectual property. substantiated* 47% 51% 49% 52%
at the site, ranging from Cummins’ In all these ways and more, the company
06 Protect the environment
Anti-bribery and Prohibited Payments is working to ensure its ethical culture, Employee"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ernal website overseen anonymously
any form of compulsory labor and the 05 Protect Cummins
by the Ethics and Compliance function.
use of underage workers. technology, information, Cases
More than 30 policies are summarized and intellectual property. substantiated* 47% 51% 49% 52%
at the site, ranging from Cummins’ In all these ways and more, the company
06 Protect the environment
Anti-bribery and Prohibited Payments is working to ensure its ethical culture, Employee
and conserve 41% 37% 43% 49%
Policy to the Employee Non-retaliation critical to sustainability and long-term natural resources. terminations**"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"se is being refreshed.
for appropriate action.
with Cummins’ supply chain, and integrated
provisions of the policy directly into the TRAININGS COMPLETED
Eyes Open Audits conducted primarily by
Cummins is committed to employees in the Purchasing function when ETHICS CERTIFICATION Anti-Bribery and
5,634
visiting suppliers to check on worker safety, Prohibited Payments
protecting human rights, both
environmental issues and other concerns. Each year Cummins requires the
Carefully Communicating with
exempt employee population to certify 253"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"d company compliance
assessed the company’s risk for violations, policies during the 12 months prior, Code of Business Conduct 669
within the company.
determining the greatest threat exists and to disclose any witnessed behavior
deep in the company’s supply chain. that violates company ethics standards. Conflicts of Interest 526
Outside vendors providing services such
The annual process refreshes and
For many years, Cummins Code of as catering or cleaning were also identified Data Privacy 6,275
reinforces every employee’s commitment"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ny’s risk for violations, policies during the 12 months prior, Code of Business Conduct 669
within the company.
determining the greatest threat exists and to disclose any witnessed behavior
deep in the company’s supply chain. that violates company ethics standards. Conflicts of Interest 526
Outside vendors providing services such
The annual process refreshes and
For many years, Cummins Code of as catering or cleaning were also identified Data Privacy 6,275
reinforces every employee’s commitment
Employee Business Conduct has stated as potential areas to watch for problems."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ve cybersecurity requires more the highest levels of protection for the
than innovative tools. company’s products against cyber threats.
Cummins is committed to protecting The company is aligned to the U.S.
In all these ways and more, Cummins
Commerce Department’s National Institute TRAINING AND EDUCATION
its intellectual property, customer and Global Cybersecurity enables the company
of Standards and Technology (NIST)
Cummins Global Cybersecurity has also to pursue Cummins’ mission of powering
employee data, the data increasingly Cybersecurity Framework (CSF)."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"erce Department’s National Institute TRAINING AND EDUCATION
its intellectual property, customer and Global Cybersecurity enables the company
of Standards and Technology (NIST)
Cummins Global Cybersecurity has also to pursue Cummins’ mission of powering
employee data, the data increasingly Cybersecurity Framework (CSF).
worked to engage company employees in a more prosperous world.
important to product innovation and The company uses outside experts to its efforts through education and training,
review its operations and evaluate Cummins starting from the moment an employee"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"on global standards.
Customizing and implementing region-
specific security strategies and programs.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 65
GOVERNMENT RELATIONS //
POLITICAL CONTRIBUTIONS
COMPANY ADVOCATES FOR Between the Bipartisan Infrastructure In the United States, political contributions
Bill, the Inflation Reduction Act, and are made by the Cummins Inc. Political
the CHIPS and Science Act, Cummins Action Committee (CIPAC) and funded solely
CLEANER, SAFER, MORE by voluntary employee contributions."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,".
of making people’s lives better by powering a more prosperous
to advocate strongly for the promotion
Employees will not be pressured to contribute
world, as governments achieved significant milestones on climate, of global trade. As recently retired to CIPAC or make any other personal political
Cummins Executive Chairman Tom contribution.
infrastructure and social policy in 2022.
Linebarger concluded his Chairmanship
Failure to contribute to CIPAC shall not
of the U.S.-China Business Council,
disadvantage an employee’s career."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"Cummins’ story
23 GOAL NO. 4: Strong start to reduce VOCs
45 Keeping company’s most important 63 Global security function keeps
14 Awards and recognition
24 GOAL NO. 5: Cummins putting asset safe is key to Cummins Cummins’ locations, employees
15 Future focused circular lifecycle planning in safe and moving forward
48 Powering a culture of inclusion
place to achieve 2030 goal
65 Company advocates for cleaner,
51 Attracting and retaining a
25 GOAL NO. 6: Cummins makes safer, more equitable world
workforce to meet future Challenges"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,",
Cummins’ mission, vision, and values.
Standards Board (2019). company facilities include all consolidated
The GRI Content Index and operations and joint ventures that are part
Data Book (2019). of the Cummins Enterprise Environmental
Management System. This data includes
Cummins’ approach to sustainability
In 2021, Cummins also issued its first Human 2022 data from Meritor Inc., which the
is grounded in the company’s mission Capital Management Report exploring company acquired in August 2022.
the company’s workforce and Cummins’"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"gy consumption (thousands of MMBtu)1,2 18,917 17,221
to sustainability, including a number
Water use (millions of gallons) 1,171 988
of metrics to gauge environmental,
Generated waste 306 289
social and governance excellence.
SOCIAL**
The environmental numbers in the chart on this page include
H&S Severity Case Rate 0.26 0.34
Meritor’s performance in 2018. The other metrics do not
include Meritor’s performance in either year. Cummins
H&S Incidence Rate 0.65 0.71
acquired Meritor in August 2022.
Women in the workforce 26.87% 28.34%"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ustainability ratings.
SOCIAL Equality Index, a benchmarking tool
Cummins received the following
The company was named one of sponsored by the American Association
recognition and awards in 2022–2023. 36 industry leaders for environmental Cummins was named to FORBES’ of People with Disabilities and Disability:IN,
performance in JUST Capital’s 2022 BEST COMPANIES FOR a global disability inclusion network.
Here’s a brief look.
2023 rankings of AMERICA’S MOST DIVERSITY list, finishing No. 4 in the
JUST COMPANIES. Cummins led the ranking based on workforce and board"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"magazine and
The company in 2022 had its
to climate action and other issues. It won Statista, one of the world’s leading
ENVIRONMENTAL, SOCIAL AND
the award for a second consecutive year. statistics portals and industry rankings
GOVERNANCE RATING UPGRADED BY
Frost & Sullivan is a leading global provider. The ranking is based
MSCI, a rating prepared by Morgan Stanley
market research company. on a survey of employees working
International. The change was driven by
for companies employing at least
The company was named to INVESTOR strong workforce management, Cummins’"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ental
sustainability.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 35
COMMUNITY ENGAGEMENT //
SOCIAL
WHAT’S INSIDE:
Social issues ranging from community Community engagement ..................36
Key engagement statistics ...............38
engagement to the health and safety of
Strategic community programs ........39
Health and safety ..............................45
employees are key to Cummins’ sustainability.
Diversity, equity and inclusion ..........49
Workforce .........................................51INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"e impact and
Increasing opportunity
56.5%
and high-quality near zero footprint
and equity
learning environments
Cummins strives to make a net
Cummins has a deeply rooted Percentage of community grants going
High quality education leads to strong positive environmental impact in its commitment to removing barriers toward Equality of Opportunity initiatives,
social and economic outcomes for communities through volunteerism for those who have historically the most of the three focus areas in 2022.
students, a skilled workforce for and partnerships, so the company been denied access to opportunity,"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"e company local environmental footprint. women, people with disabilities, 3.2 MILLION
engages in education to ensure economically disadvantaged people,
This focus area is both part of the
equitable educational systems with immigrants and refugees, and the
company’s community engagement
high-quality teaching and learning LGBTQ+ community. People served primarily or directly by
efforts and included in PLANET
Cummins grants in 2022.
environments to prepare today’s
2050, the company’s environmental
students for tomorrow’s workforce. Among many Cummins"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"al is employees to be conscious of their visible
ADVANCING AND INCLUSION to reflect the markets the company serves. and invisible identities, privilege, biases LEADING ON
INCLUSION THROUGH Specifically, Cummins’ worldwide gender and cultural preferences. SUPPLIER DIVERSITY
BY THE
ACCESSIBILITY aspirational goal is 50%, and for Black and
NUMBERS Cummins offers innovative programs such
Latino representation in the United States, Cummins’ supplier diversity
as Cummins RePower to help professionals
Cummins aims for a workforce 12% and 18%, respectively. While it has program has helped spread the"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ng
of accessible technology barriers for those Team, the CEO’s top leadership group, spending globally was with companies
leadership development programs designed
solutions to include Dragon demographic are currently made up of women. whose owners identified themselves
Pro speech-to-text, Zoom groups historically for Black, Latino and Asian employees. as diverse or small businesses.
Fusion magnifier/reader and denied access to Three of the company’s five business Cummins takes a global approach
more to break down obstacles opportunity. segments were led by women in 2022. Cummins is improving workforce inclusion to supplier diversity, with initiatives"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"to encourage Cummins’ business as a whole.
* Does not include employees joining or Latino in 2022.
Cummins through acquisition of Meritor Inc.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 50
DIVERSITY, EQUITY AND INCLUSION //
EMPLOYEE DIVERSITY GENDER* 46.7%
Cummins is steadily increasing the number of women within its ranks globally,
Cummins is committed to diversity
especially among the company’s senior leadership.
across all its dimensions. Here’s look
at our workforce as of Dec. 31, 2022. Women on the 15-member"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"employees joining or Latino in 2022.
Cummins through acquisition of Meritor Inc.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 50
DIVERSITY, EQUITY AND INCLUSION //
EMPLOYEE DIVERSITY GENDER* 46.7%
Cummins is steadily increasing the number of women within its ranks globally,
Cummins is committed to diversity
especially among the company’s senior leadership.
across all its dimensions. Here’s look
at our workforce as of Dec. 31, 2022. Women on the 15-member
WOMEN IN CUMMINS WORKFORCE 2021 2022"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"WOMEN IN CUMMINS WORKFORCE 2021 2022
Cummins Leadership Team.
OVERALL 27.8% 28.3%
Hourly 26.9% 27.4%
ABOUT OUR NUMBERS 41.7%
The 2022 data in this section for Salaried / exempt 29.1% 29.3%
employee race and gender does
not include those employees joining Directors and Executive Directors 25.7% 27.2%
Women on the Cummins
Cummins through the August 2022
acquisition of Meritor Inc., a leading Vice President and above (officers) 40% 40.7% Board of Directors.
global supplier of drivetrain, mobility,
braking, aftermarket and electrified NOTE: Based on workforce as of Dec. 31 in both years."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"not include those employees joining Directors and Executive Directors 25.7% 27.2%
Women on the Cummins
Cummins through the August 2022
acquisition of Meritor Inc., a leading Vice President and above (officers) 40% 40.7% Board of Directors.
global supplier of drivetrain, mobility,
braking, aftermarket and electrified NOTE: Based on workforce as of Dec. 31 in both years.
powertrain solutions for commercial
vehicle and industrial markets.
RACE AND ETHNICITY IN THE U.S.*
Cummins was still entering
Cummins’ goal is a workforce that reflects the markets where it does business. Here’s a look at the company’s workforce in the United States."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"2%
Updated information will be Directors and Executive Directors 14.4% 7.4% 7.2% 69.8% 0.3% 0.9% 0%
included in the 2023–2024 reporting
cycle. Percentages are subject to Vice President and above (officers) 6.8% 18.2% 6.8% 68.2% 0% 0% 0 %
rounding to add up to 100%.
* Does not include employees joining Cummins through the 2022 acquisition of Meritor Inc.
NOTE: Based on self-identification as of Dec. 31, 2022.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 51
WORKFORCE // ABOUT THE CUMMINS"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"o add up to 100%.
* Does not include employees joining Cummins through the 2022 acquisition of Meritor Inc.
NOTE: Based on self-identification as of Dec. 31, 2022.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 51
WORKFORCE // ABOUT THE CUMMINS
LEARNING CENTER
Cummins employees invested an estimated
ATTRACTING AND RETAINING support this vision and serve the
625,466 hours in mandatory and non-
company’s stakeholders:
mandatory on-line courses offered through
A WORKFORCE TO MEET Diverse, equitable and the Cummins Learning Center in 2022."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"afe and caring
work environment necessary to the best employees. work environments by admitting mistakes,
asking for help and being open to feedback,
A complete exploration of DE&I is which they recognize as a means for both
Cummins employees take advantage of available on the preceding pages. them and the company to improve.
nice weather to meet outside the campus of
buildings in downtown Columbus, Indiana.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 52
WORKFORCE // Cummins offers extensive training to EXTENDING TRAINING COMPETITIVE PAY"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"g has an important role to play in and employee stock purchase plans.
HOURLY 57%
training and development, but training
2023 alone rarely helps employees reach When designing Cummins’ base
pay compensation ranges, the SALARIED/EXEMPT 40.2%
advanced or expert levels.
company does a market analysis to
To be effective, training must be followed ensure its ranges are current and UNDESIGNATED STUDENT ROLES 2.8%
GO IN-DEPTH ON by practice and application to truly build Cummins employees are advancing
CUMMINS’ WORKFORCE competency. Cummins provides a wide in their earnings potential. Cummins WORK FLEXIBILITY"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"STUDENT ROLES 2.8%
Report. The report includes an in-depth
the best talent to achieve the
exploration of the company’s focus
Cummins employees are strongly company’s sustainability goals
areas as well as essays from Chair
encouraged to participate in Competency and serve all of Cummins’ * Does not include employees joining
and CEO Jennifer Rumsey and Vice Cummins through 2022 acquisitions.
Assessments to identify skill gaps in stakeholders—customers, investors,
President – Chief Human Resources
Officer Marvin Boakye. their current roles, followed by Individual employees, communities and more. Percentage of workforce as of 12/31/2022."
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"ll gaps in stakeholders—customers, investors,
President – Chief Human Resources
Officer Marvin Boakye. their current roles, followed by Individual employees, communities and more. Percentage of workforce as of 12/31/2022.
Development Plans they can work on
The report is the company’s second with their supervisor to prepare for
devoted exclusively to the topic of
their next position.
human capital management.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 53
WORKFORCE //"
SPR23-2022-2023-Cummins-Sustainability-Progress-Report-9112023.txt,"Chief Human Resources
Officer Marvin Boakye. their current roles, followed by Individual employees, communities and more. Percentage of workforce as of 12/31/2022.
Development Plans they can work on
The report is the company’s second with their supervisor to prepare for
devoted exclusively to the topic of
their next position.
human capital management.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 53
WORKFORCE //
COUNTRY OF BIRTH* ASSIGNMENT COUNTRIES* AGE*
About two-thirds of Cummins’ employees in More than half of the Cummins global workforce More than half of Cummins’ workforce"
Sustainability-Report-2020-Complete.txt,"ucts with a core purpose of method of the USDA Food Safety biochemical tests performed
of new products each incorporate the
helping to solve an environmental or Inspection Service and has individually in Petri dishes and test
year, spanning nearly social challenge, such as improving new 2019 requirement been validated and certified by tubes. This simplified molecular
every industry. air quality, reducing greenhouse gas span all 3M numerous international and regional method uses fewer consumable
emissions, and improving worker organizations. materials and less energy in order"
Sustainability-Report-2020-Complete.txt,"dSkills™ in advanced manufacturing.
and Academic
competition in Kazan, Russia. The scholarships
3M recruits, hires, and relies on the Partnerships (MAP) 3M’s investment of more than 22 WorldSkills USA team members 3M also has certifications in several
best skilled trade workers worldwide, $2.5 million has resulted in: competed in categories like auto body other areas:
but many of these manufacturing
When a business is set in a rural area, • 51 educators trained repair, cybersecurity, mechanical
jobs are highly technical and require 3M Worker Health and Safety"
Sustainability-Report-2020-Complete.txt,"lobal corporations Nations 2030 agenda for Sustainable
in Sustainability actions and measures, Development, which includes
beginning with the creation of our 17 Sustainable Development Goals
groundbreaking 3M Pollution Prevention (SDGs). Additional information on
Pays (3P) program in 1975. United Nations SDG alignment can be
found in the About report section.
• Require every new product that • Help our customers reduce their • Provide training to five million
Our goals are becoming stronger and
enters 3M’s new product GHGs by 250 million tons of CO₂ people globally on worker and"
Sustainability-Report-2020-Complete.txt,"19, 38 junior
partnerships with high schools and story, “Helping close the skills gap” and senior high school students had
technical colleges in communities • GEM (National Consortium for the opportunity to participate in
where we operate. Learn more • 3M sponsors an annual event called Graduate Degrees for Minorities on-site science training, mentorship
about creating partnerships to solve “Robots Invade the Plaza” that in 2019 in Engineering and Science, Inc.) with 3M scientists, and hands-on
the worker shortage problem. brought 22 local high school teams Fellowships support graduate experience in 3M labs in the summer."
Sustainability-Report-2020-Complete.txt,"d global and Supplier Responsibility Code. and trained to raise questions or report
best practices.
Supplier Responsibility Code. These expectations regarding the hiring misconduct or potential misconduct.
of minors. Even if local law permits Human trafficking
policies reflect our commitment to Roles and responsibilities of
it, 3M will not hire any employee We provide a variety of mechanisms
acting ethically and with integrity in Our approach to human trafficking information security employees,
nor engage a contingent worker (an for reporting and resolving concerns:"
Sustainability-Report-2020-Complete.txt,"be found for contractor meetings and safety
and services is handled in a manner consistent with in the Employee programs section of reviews whenever necessary and
the 3M Data Privacy Principle and
The 3M Safety and Health Policy this report. appropriate.
all applicable legal requirements.
applies to 3M operations everywhere, 3M is committed to promoting a
including new acquisitions. Hazards culture of health by identifying and Contractors are asked to submit
On-site occupational health services
in 3M’s workplaces must be well controlling potential stressors in notification to 3M of worker hours"
Sustainability-Report-2020-Complete.txt,"re the performing work in accordance with a
factors at each site. 3M supports
sites, and surrounding communities. encouraged to take advantage of 3M contract. Any contractor incidents
volunteer first responder teams most important part
3M’s health and well-being programs are reported in the 3M EHS 360 data
by providing CPR/Automated
In addition, we continue to evaluate that promote disease prevention and of our company. management system, including injuries
External Defibrillator (AED) training
opportunities to raise our safety and health improvement. People are the and contractor worker hours."
Sustainability-Report-2020-Complete.txt,"atforms
100%
and collaborative
our challenges.
culture, our people
apply their talent of new products
to combine our to obtain a
technologies across Sustainability Value
businesses, creating Commitment
unique solutions for
to energy efficiency, to community-
our customers and wide approaches to water management
and to helping our customers reduce
society, all in support their greenhouse gas emissions.
We have also set Sustainability goals
of the greater good.
around building a diverse workforce
and educating individuals on worker"
Sustainability-Report-2020-Complete.txt,"eting specific operational efficiencies.
commitment performance and other requirements).
Working in both categories carries us Portfolio management continues to
through multiple commerce channels, Goal: Provide training to be a key to the way we are prioritizing
Whether it’s technology,
distribution models, direct models, businesses to emphasize the greatest
five million people globally
manufacturing, global capabilities,
retail models, and, increasingly, value creators in our portfolio and how
or our brand, we are committed to on worker and patient"
Sustainability-Report-2020-Complete.txt,"iency, Midwest on a project designed to — but everyone
solutions. Our innovation truly comes problems — it can be awe-inspiring.
clean water, and environmental drive insights for service and solutions.
from the confluence of customer To get there, we believe it’s essential from the dock
protection. Our local scientists leverage Together, we tracked a high-volume
and market insights, technology, to be close to our customers.
3M technologies to develop relevant medical product through every stage
and a culture of collaboration and worker to the"
Sustainability-Report-2020-Complete.txt,"ufacturing strength. We’re
differentiated value
to apply our passion for science to solve an environmental or social differentiated and advantaged in the • Manufacturing events
and collaborate enterprise-wide to challenge — such as improving air marketplace through in-house 3M • Global capabilities
The power of 3M is in the way we
find solutions. quality, reducing greenhouse gas connect our fundamental strengths manufacturing site ownership that also • Brand including topics such as Sustainable
emissions, or improving worker and leverages 3M intellectual property."
Sustainability-Report-2020-Complete.txt,"t #improvinglives 207Our products
Embedding a Sustainability Value
Commitment in all business groups. Safety & Industrial
Our Also included are products whose $32.1B* Sustainability $11.6B
core purpose is helping to solve
examples
commitment an environmental and/or social
concern. Examples include improving
2019 net sales
air quality, reducing greenhouse gas • Roofing granules that harness
At 3M, we share emissions, improving patient outcomes, 2019 net sales the power of the sun to help improve
and enhancing worker safety in air quality"
Sustainability-Report-2020-Complete.txt,"talent in management
to build a diverse workforce.
10.2: By 2030, empower and promote the social, economic, and
political inclusion of all, irrespective of age, sex, disability, race,
ethnicity, origin, religion, or economic or other status.
3.C: Substantially increase health financing and the recruitment,
development, training, and retention of the health workforce in
developing countries, especially in least developed countries and
small island developing states.
Provide training to 5 million
people globally on worker"
Sustainability-Report-2020-Complete.txt,"Circular materials 146 SDG 3, 6, 12 403-2 Hazard identification, Health and safety 132 SDG 3, 8
Metric tables: historical metrics, environmental footprint; 244 risk assessment, and Corporate Code of Conduct 98
environmental performance, waste incident investigation
306-3 Significant spills Environmental management 140 UNGC Principle 8 403-3 Occupational health Health and safety 132 SDG 3, 8
Metric tables: environmental footprint, environmental 244 SDG 3, 6, 12, 14, 15 services
management system
403-4 Worker participation, Health and safety 132 SDG 8"
Sustainability-Report-2020-Complete.txt,"gnificant spills Environmental management 140 UNGC Principle 8 403-3 Occupational health Health and safety 132 SDG 3, 8
Metric tables: environmental footprint, environmental 244 SDG 3, 6, 12, 14, 15 services
management system
403-4 Worker participation, Health and safety 132 SDG 8
Annual Report on Form 10-K, pages 109-124
consultation, and
GRI 307: Environmental compliance communication on
occupational health
103-1 to Management approach Environmental management 140 and safety
103-3 disclosures
403-5 Worker training on Health and safety 132"
Sustainability-Report-2020-Complete.txt,"and safety 132 SDG 8
Annual Report on Form 10-K, pages 109-124
consultation, and
GRI 307: Environmental compliance communication on
occupational health
103-1 to Management approach Environmental management 140 and safety
103-3 disclosures
403-5 Worker training on Health and safety 132
307-1 Non-compliance with Environmental management 140 UNGC Principle 8 occupational health
environmental laws Metric tables: environmental footprint, environmental 244 SDG 16 and safety
and regulations management
403-6 Promotion of worker Health and safety 132"
Sustainability-Report-2020-Complete.txt,"roduction 84 Introduction 190 About report, scope, 216
and boundaries
Message from our CSO 6 Feature stories 12 3M Value Model 48 Corporate governance 86 Our customers 192
Sustainable Development Goals 220
Site spotlights 34 Our Vision 49 Enterprise risk 94 Innovation management 198
GRI index and UNGC 226
Our Values 49 Corporate Code of Conduct 98 Our products 208
SASB index 236
Our Strategic 50 Human rights 106
Sustainability Assurance statement 238
Framework Compensation 116
Metric tables 244
Advancing impact 56 Employee programs 120"
Sustainability-Report-2020-Complete.txt,"rom our CSO 6 Feature stories 12 3M Value Model 48 Corporate governance 86 Our customers 192
Sustainable Development Goals 220
Site spotlights 34 Our Vision 49 Enterprise risk 94 Innovation management 198
GRI index and UNGC 226
Our Values 49 Corporate Code of Conduct 98 Our products 208
SASB index 236
Our Strategic 50 Human rights 106
Sustainability Assurance statement 238
Framework Compensation 116
Metric tables 244
Advancing impact 56 Employee programs 120
Communities 60 Health and safety 132
Employee diversity and inclusion 70 Environmental management 140"
Sustainability-Report-2020-Complete.txt,"lly.
and supplies. recycled material — reflect this value.
4 Our leadership A message from our CEO 3M 2020 Sustainability Report #improvinglives 5A message from
Gayle
To advance Science To advance Science I am proud that
for Climate, for Community, Sustainability
Schueller
we continued to improve our own we unveiled an additional 2025 remains at the
energy footprint. In February, CEO Sustainability Goal. Through the
heart of 3M.
Mike Roman committed to moving expansion of 3M Impact, our skills-
our entire global operations to 100% based employee volunteer program,"
Sustainability-Report-2020-Complete.txt,"s designed to be experienced in
groups of three players at a time.
32 Feature stories Science for Community 3M 2020 Sustainability Report #improvinglives 33Columbia,
Missouri
3M site spotlight
200
hours volunteered
at the annual United Way
Day of Caring
Environmental Additionally, many employees are Beyond grants and cash funding,
engaged on safety teams, where they 3M volunteers participate annually in
performance and
take time to focus on hazard recognition the local United Way Day of Caring,
employee safety in an effort to improve the safety of the spending over 200 volunteer hours"
Sustainability-Report-2020-Complete.txt,"in 3M’s in collaboration with community
Pollution Prevention Pays (3P) program. donors, were used to create an
Missouri, has expanded
Plant engineers have submitted over outdoor learning space for the local
six times over the 30 3P projects from 2018 through community to enjoy. A walking trail
2019, resulting in 1,316 tons of waste includes pedestrian bridges and
years and now boasts
diverted from landfills. spillway development with signage.
nearly 725 employees. The project also includes ADA-
From 2018 through 2019, Employee engagement compliant fishing docks, floating"
Sustainability-Report-2020-Complete.txt,"ave submitted over outdoor learning space for the local
six times over the 30 3P projects from 2018 through community to enjoy. A walking trail
2019, resulting in 1,316 tons of waste includes pedestrian bridges and
years and now boasts
diverted from landfills. spillway development with signage.
nearly 725 employees. The project also includes ADA-
From 2018 through 2019, Employee engagement compliant fishing docks, floating
3M Nevada is the largest of 3M’s wetlands, and a butterfly garden.
1,316
Commercial Solutions Division Employee-led teams championed"
Sustainability-Report-2020-Complete.txt,"ost use, and The 3M Nevada staff takes part in
3M Divisions, demonstrating diverse created a material flow map for many STEM programs at local schools,
capabilities across this complex continual collection of recyclables including STEM demonstrations, STEM
manufacturing site. to pre-selected main collection Night at the local middle school, and
the “Smart Girls Rock” program.
and sorting areas.
You can see products from the
Nevada site in many places, They also dedicate time to the Adopt
Energy
including fleet vehicles, truck/trailer A Highway® program. Employee teams"
Sustainability-Report-2020-Complete.txt,"wraps and refreshing
between 2015-2017. Energy reduction
learn more.
marketing in stores or restaurants.
efforts resulted in an energy use per
pound of product reduction of 6.1%.
The plant is involved with several
initiatives that lend to its focus
on Sustainability.
42 Feature stories Site spotlight 3M 2020 Sustainability Report #improvinglives 43Introduction 46
3M Value Model 48
Who
Our Vision 49
Our Values 49
Our Strategic
Sustainability Framework 50
we are
Advancing impact 56
Communities 60
Employee diversity and inclusion 70"
Sustainability-Report-2020-Complete.txt,"nput and expertise, and NGOs, trade unions, 3M retirees, and in our Sustainability Report. In
evaluate possible collaborations and non-3M private-sector businesses. and our economy addition, effective November 2019,
Engagement with
strategic partnerships. We rely on their At the same time, 3M conducted a depends on it. the 3M Science, Technology, and citizens on
counsel and expertise to help guide us. similar process through an internal Sustainability Committee of the Board sustainable behavior
We believe stakeholder engagement online employee survey. Following of Directors will annually review the"
Sustainability-Report-2020-Complete.txt,"afety by 2025
how much needs to be done in order Sustainability a Sustainability Value Commitment, use of 3M products by 2025
to make the world more sustainable • Invest cash and products for
for future generations. We are heading Framework helps demonstrating how it drives impact • Improve energy efficiency indexed education, community, and
for the greater good starting in 2019
into a decade of action that will help us apply science to to net sales by 30% by 2025 environmental programs by 2025
accelerate solutions to the world’s improve every life. • Reduce manufacturing waste by • Ensure GHG emissions are at least • 100% participation in employee"
Sustainability-Report-2020-Complete.txt,"commercialization process include
goal of 30% improvement • $73.3 million investment in
a Sustainability Value Commitment.
total global giving; achieving
By embedding Sustainability into • Increased renewable energy
goal of continuing to invest
our R&D process, our brands, and footprint to 32.6%, total electricity
in global giving programs
the mindset of our customers and use; working toward goal of 50%
suppliers, we’re able to move 3M’s by 2025 and 100% by 2050 • More than 59% participation in
growth to new levels and advance employee development programs;"
Sustainability-Report-2020-Complete.txt,"s, sites, and employees
programs. 3M Foundation also serves
worldwide who volunteer and leverage
the needs of our local communities
their skills and experience to make service program that allows employees
through charitable investments.
a difference in the world. to lend their business skills,
Additional 3M investments include
experience, and energy to make a
accelerating global climate solutions
3M maximizes social impact by difference in global communities
and advancing a circular economy to
combining 3M employee expertise while also developing leadership,"
Sustainability-Report-2020-Complete.txt,"mate solutions
3M maximizes social impact by difference in global communities
and advancing a circular economy to
combining 3M employee expertise while also developing leadership,
foster sustainable communities and
with our products, technologies, and problem-solving, and interpersonal
improve the quality of every life.
philanthropy. 3M and 3M Foundation communication skills. 3M will provide
Cash, in-kind investments, and
develop and implement strategies and opportunities for employees in their
employee engagement remain at the"
Sustainability-Report-2020-Complete.txt,"ties.
Corporate Contributions Committee, projects is designed to support 3M’s
which is comprised of senior-level Strategic Sustainability Framework,
company executives. advancing our commitments to Science
for Circular, Science for Climate, and/
To assure that our support delivers
Since 1953, 3M or Science for Community. See more
the maximum benefit to the
in our feature story “Making an impact
communities being served, 3M and and 3M Foundation around the world.”
3M Foundation assess the impact
of prospective grants and employee have invested"
Sustainability-Report-2020-Complete.txt,"il, honored
two months in a village where he for her fundraising and volunteer As part of the 3M Foundation
For the past 33 years, the 3M organized writing and STEM education work with the Lar Pequeno Paraiso Volunteer Match program, 3M
Volunteer Award has celebrated activities for children, helped elementary school. In addition, Foundation donates money to eligible
extraordinary 3M volunteers who coordinate best practice sharing Alessandra helps with Instituto 3M nonprofit organizations when a
generously share their time and among farmers from two villages, (3M Brazil’s nonprofit organization) 3M employee or retiree volunteers"
Sustainability-Report-2020-Complete.txt,"generation of STEM 3M Foundation’s Community Giving
enthusiasts. Jim also contributes to Latin America $2,150,000 $744,000 $2,900,000 10,400 Campaign has increased its matching
the restoration of the Goose Pond Canada $706,000 $538,000 $1,240,000 1,170 amount to help employees support
Fish and Wildlife Area by performing United States $24,100,000 $33,400,000 $57,600,000 216,000 the organizations they are passionate
surveys to monitor bird species, about. 3M’s program now matches
OUS, region not
serving on the Board of Directors, defined $3,350,000 $4,560,000 $7,920,000 20,800 up to $500 per employee gift. With"
Sustainability-Report-2020-Complete.txt,"00 $1,240,000 1,170 amount to help employees support
Fish and Wildlife Area by performing United States $24,100,000 $33,400,000 $57,600,000 216,000 the organizations they are passionate
surveys to monitor bird species, about. 3M’s program now matches
OUS, region not
serving on the Board of Directors, defined $3,350,000 $4,560,000 $7,920,000 20,800 up to $500 per employee gift. With
and coordinating social media for a maximum of $500 in corporate
Total $32,400,000 $40,900,000 $73,300,000 273,000
the organization. support per employee, the Community"
Sustainability-Report-2020-Complete.txt,"onal cash
organizations, from hospitals to
giving (comprising 3M and 3M Foundation
schools to shelters. In addition to
cash investments as well as subsidiary cash
streamlining 3M’s excess product
investments) to 25% of total cash giving by
donations process, NAEIR is a 3M
the end of 2020.
strategic partner, administering
the 3M Supplies for Community
In 2020, 3M Foundation’s Community Giving
Partners and the 3M Supplies for
Match will double from $500 to $1,000
Schools product donation programs
per employee."
Sustainability-Report-2020-Complete.txt,"all people can flourish and the law. It is a work environment that is
among companies and differentiate us feel comfortable to collaborate, free of inappropriate or unprofessional
in our marketplace. agree, disagree, and respectfully behavior and consistent with 3M’s
exchange, learn, and create. ethics and values — a place where all
We know that a diverse, global employees can do their best and are
workforce — people with different Our Code of Conduct lays out free to report workplace concerns
experience, ethnicity, age, gender, what it means to be a 3M employee without fear of retaliation or reprisal.”"
Sustainability-Report-2020-Complete.txt,". An inclusive differences are valued. color, creed, religion, sex, national
culture supports and appreciates origin, age, disability, veteran’s status,
differences and provides fair and pregnancy, genetic information, sexual
equal opportunities for everyone — orientation, marital status, citizenship
a culture of belonging where people status, status with regard to public
are respected for being exactly assistance, gender identity/expression,
who they are. or any other reason prohibited by law.
70 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 71Science of Inclusion Speakers included 3M CEO Mike These United Nations standards One of the first actions of the CEO Martin Luther King Jr. Day Employee Resource"
Sustainability-Report-2020-Complete.txt,"a our marketplace reach. Learn more by
harassment and discrimination, and
contribute to workplace well-being. Standards: Support for Change initiative, along with more Governor Tim Walz, Senators Tina visiting 3M’s ERNs.
advance women and LGBTI individuals
than 60 CEOs and industry leaders Smith and Amy Klobuchar, plus
Global Inclusion Day of women and in the workplace and the community. who also have made personal pledges hundreds of others, including busloads 3M’s nine ERNs continue to expand
LGBTI community Two of 3M’s Employee Resource to accelerate gender equality and of 3M employees. their reach globally. For example,"
Sustainability-Report-2020-Complete.txt,"ined a
innovation are
Council meeting. The purpose is to You Define You session,
elevate current inclusion challenges interconnected. more than 500 participated in a
impacting the specific group or
Personal Purpose workshop, and
broader organization. The focus is
thousands more took part in global
on accomplishments over the last six
celebrations around the world.
months, their priorities and strategic
plan, and suggestions on ways to
improve. The presentation is followed
by a group discussion.
72 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 73ERN Community This development journey is based Continuing support for Best Places to Work Latina Style Award STEM Workforce"
Sustainability-Report-2020-Complete.txt,"fer benefits for eligible opposite- culture and workplace where people scoring 100% on the Corporate the cornerstones
accountability. sex and same-sex domestic partners of all abilities can thrive. Equality Index (CEI). The CEI is
administered by the Human Rights of our organization.
of employees, as well as their eligible
Campaign and benchmarks corporate
dependents.
policies, including non-discrimination
workplace protections, domestic
partner benefits, and transgender-
inclusive health care.
74 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 75Current progress and opportunity – Current progress and opportunity –"
Sustainability-Report-2020-Complete.txt,"he benefit applies
to employees and their partners who
percentage of global female employees
are covered by an eligible 3M medical
plan and includes single parents and
Executive Board of LGBTQI+ individuals and couples.
Global Management Management Directors
We will also accelerate our diversity
and inclusion efforts, with the CEO
Inclusion Council championing projects
2019 36% 31% 30% 33% that specifically advance our culture
of inclusion.
2015 34% 27% 24% 18%
% change 2% 4% 6% 15%
Male Female
76 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 77Recognition"
Sustainability-Report-2020-Complete.txt,"teria create a
corporate citizen for being a standout
combined indicator score used to
business in the areas of environmental,
identify the top 100 most innovative
social, and governance performance.
organizations globally. Since 2011,
3M has made the Derwent Top 100
Global Innovators list.
80 Who we are Recognition 3M 2020 Sustainability Report #improvinglives 81Introduction 84
Corporate governance 86
How we
Enterprise risk 94
Corporate Code of Conduct 98
Human rights 106
work Compensation 116
Employee programs 120"
Sustainability-Report-2020-Complete.txt,"t #improvinglives 89An inclusive culture at 3M is built on In addition to forming the Science, As a global Announced by CEO Mike Roman on
our Be Respectful Principles — to Technology & Sustainability Committee, Investor Day in November 2018, the
respect the dignity and worth of the Board has ended the Finance corporation, Framework directs our efforts to
At 3M, we are
individuals; encourage the initiative of Committee. The responsibilities of areas where we can make the greatest
contributing to
each employee; challenge individual the Finance Committee will be impact: Science for Circular, Science for inspired and"
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Based on a project in 2018, the 3M global allegations and
Ethics & Compliance Department has disciplinary actions
continued to report metrics from a
Total number
broader range of 3M functions that
Prehovorte! conduct investigations and track
1800
employee concerns. This provides a more complete view of the frequency 1600"
Sustainability-Report-2020-Complete.txt,"isk factors. An evaluation
evaluation planning process, a
identified, the investigation team will process includes a review of financial
local evaluation has a more focused
follow up on them. 3M takes a strong transactions, compliance records,
scope than our standard deep-dive
position against retaliation, which is interviews with business personnel,
evaluation, and it can be completed
reflected in the Non-Retaliation Policy and audits of selected business
with fewer resources in half the time.
and within 3M’s Employee Obligations partners. Our evaluation process"
Sustainability-Report-2020-Complete.txt,"nt resource employees times of transition.
with other measures, including the
go to with ethical or compliance
willingness of employees to speak up. 3M will continue to hold Ethics & Compliance
All over the world, we held Ethics & questions is their manager. The Ethics
This data finding was used in manager Days around the world to engage global
Compliance Day events to further build & Compliance Department publishes
training to emphasize the importance of employees in our culture of compliance.
employee engagement around the a series of toolkits containing"
Sustainability-Report-2020-Complete.txt,"er build & Compliance Department publishes
training to emphasize the importance of employees in our culture of compliance.
employee engagement around the a series of toolkits containing
speaking about compliance. These events will be opportunities to create
Code of Conduct and doing business reference materials and case studies
energy and enthusiasm around compliance,
the right way. For the third year in a row, to help supervisors effectively address
with active participation from our divisions
we held a compliance day at our global employee questions and respond"
Sustainability-Report-2020-Complete.txt,"that we
ethics and values — a place where all respect “the ability of employees to
employees can do their best and are choose whether or not to join unions
free to report workplace concerns and engage in collective bargaining,
Our Guided by deeply A respectful workplace without fear of retaliation or reprisal.” as permitted by applicable laws
in the countries where 3M does
commitment engrained principles Our Code of Conduct lays out what it Working hours and business.” In the event of business
in our culture means to be a 3M employee and includes living wages operations changes, we follow all"
Sustainability-Report-2020-Complete.txt,"nt 3M Human Resource (HR) Principles, professionally, with each person’s
all company leaders, and is assisted association and collective bargaining
conventions: freedom of association which respect the dignity and worth unique talents, background, and
by human resources representatives. aspects of our Human Rights Policy
and elimination of discrimination in of all individuals, encourage the perspectives valued. A respectful
Human resources professionals work apply to all 3M employees worldwide.
employment and occupation; the initiative of each employee, challenge workplace is free from unlawful"
Sustainability-Report-2020-Complete.txt,", and
by human resources representatives. aspects of our Human Rights Policy
and elimination of discrimination in of all individuals, encourage the perspectives valued. A respectful
Human resources professionals work apply to all 3M employees worldwide.
employment and occupation; the initiative of each employee, challenge workplace is free from unlawful
with employees to maintain positive
right to collective bargaining; the individual capabilities, and provide discrimination and harassment, but
employee relations."
Sustainability-Report-2020-Complete.txt,"fferent is evident in our Human Rights Policy and non-employees are encouraged
based on industry standards and
and business conduct policies, and our countries, 3M has adopted global and Supplier Responsibility Code. and trained to raise questions or report
best practices.
Supplier Responsibility Code. These expectations regarding the hiring misconduct or potential misconduct.
of minors. Even if local law permits Human trafficking
policies reflect our commitment to Roles and responsibilities of
it, 3M will not hire any employee We provide a variety of mechanisms"
Sustainability-Report-2020-Complete.txt,"if local law permits Human trafficking
policies reflect our commitment to Roles and responsibilities of
it, 3M will not hire any employee We provide a variety of mechanisms
acting ethically and with integrity in Our approach to human trafficking information security employees,
nor engage a contingent worker (an for reporting and resolving concerns:
all our business relationships and to is very simple: We do not tolerate it. contingent workers, and suppliers
individual provided by a third-party
implementing effective systems and must be defined and documented • Employee’s management and/or"
Sustainability-Report-2020-Complete.txt,"Access Control Standard 3M prohibits retaliation against anyone
our suppliers worldwide. 3M suppliers
and other 3M policies and standards. who asks a question, reports a concern
must comply with all local country
in good faith, or participates in a
labor and human resource laws and
Management requires employees, company investigation. This position is
cannot use labor that is obtained
contingent workers, and suppliers reflected in the Non-Retaliation Policy
through mental or physical coercion,
to apply security practices in and within 3M’s Employee Obligations"
Sustainability-Report-2020-Complete.txt,"f.
and in others acting on 3M’s behalf),
conduct principles, or core values,
the sphere with the greatest potential
which set forth global corporate
for human rights impact is within our
expectations for all 3M employees and
supply chain.
third parties who act on 3M’s behalf.
The principles in this Code of Conduct
remain consistent with 3M’s long-
standing business conduct principles,
its values, and our shared ethical
standards for conducting business with
uncompromising honesty and integrity.
110 How we work Human rights 3M 2020 Sustainability Report #improvinglives 1113M employees, including all Assuring human rights If an employee does not have a 3M"
Sustainability-Report-2020-Complete.txt,"eminders.
procedures, including Human Rights.
managers are accountable for creating
Global Handbook an inclusive workplace environment An annual training plan is established
In addition to offering online training,
that encourages asking questions and each year based on an assessment of
the Ethics & Compliance Department —
raising concerns. internal and external factors to prioritize
in close collaboration with 3M Legal
topics and timing of deployment. Online
Affairs, local compliance partners,
For additional details on our employee courses are offered in 22 languages."
Sustainability-Report-2020-Complete.txt,"dition to offering online training,
that encourages asking questions and each year based on an assessment of
the Ethics & Compliance Department —
raising concerns. internal and external factors to prioritize
in close collaboration with 3M Legal
topics and timing of deployment. Online
Affairs, local compliance partners,
For additional details on our employee courses are offered in 22 languages.
Finance, and Human Resources —
processes, see the Diversity and
provides frequent, tailored, in-person
inclusion and Employee programs Training for 3M employees on the"
Sustainability-Report-2020-Complete.txt,"de
in 3M’s Code of Conduct Global
and integrity. information is sent to suppliers prior
Handbook. See the Corporate Code of
to conducting an assessment to assure
Conduct section for more information.
awareness of expectations — which are
also addressed during supplier status
Employees are assigned courses
review meetings.
based on their job function, country
location, production/non-production
status, and supervisor/non-supervisor
and management-level status.
Email notifications are sent to the
employee’s or their supervisor’s"
Sustainability-Report-2020-Complete.txt,"an assessment to assure
Conduct section for more information.
awareness of expectations — which are
also addressed during supplier status
Employees are assigned courses
review meetings.
based on their job function, country
location, production/non-production
status, and supervisor/non-supervisor
and management-level status.
Email notifications are sent to the
employee’s or their supervisor’s
3M email address informing them
of their course requirements and their
timeline for completion. The new
employee courses are due within"
Sustainability-Report-2020-Complete.txt,"for 3M employees is an environment that allows and
tied to their job descriptions as well challenges all employees to seek out
All employees have the opportunity
as how they perform in their jobs. new ideas and process improvements
to grow through challenging work
This holds true for general leadership that drive success. Our “Innovate”
and be rewarded for their efforts.
Our The committee, along with its Director compensation responsibilities as well as performance Leadership Behavior includes
Our employee performance review"
Sustainability-Report-2020-Complete.txt,"evement against of the process is to align individual
compensation, recommending can demonstrate and meet those
Committee annually receives measurable targets impact the award goals and performance with business
3M provides competitive market- changes when appropriate. Any expectations through their actions
reports on the status of the Board’s values for those employees who are objectives and outcomes, creating a
based pay and comprehensive benefits. recommendations related to and interactions.
compensation in relation to other large eligible for incentive compensation. win-win situation for the employee and"
Sustainability-Report-2020-Complete.txt,"companies and is responsible The six behaviors of effective leaders For those employees eligible to receive the company. In addition, the process
and rewards performance, 3M’s total independent members of the for recommending to the Board at 3M include the following: long-term incentive compensation, helps identify and develop leaders
changes in compensation for non- ratings of Leadership Behaviors impact to meet 3M’s ongoing talent needs.
compensation for employees includes Board of Directors.
employee directors. In developing its their long-term incentive grant values."
Sustainability-Report-2020-Complete.txt,"l independent members of the for recommending to the Board at 3M include the following: long-term incentive compensation, helps identify and develop leaders
changes in compensation for non- ratings of Leadership Behaviors impact to meet 3M’s ongoing talent needs.
compensation for employees includes Board of Directors.
employee directors. In developing its their long-term incentive grant values.
a variety of components that support Additional information on 3M’s
recommendations, the committee is
sustainable employment and the ability The Compensation Committee guided by the following goals: Play to win employee development and"
Sustainability-Report-2020-Complete.txt,"for employees includes Board of Directors.
employee directors. In developing its their long-term incentive grant values.
a variety of components that support Additional information on 3M’s
recommendations, the committee is
sustainable employment and the ability The Compensation Committee guided by the following goals: Play to win employee development and
to build a strong financial future. reviews stakeholder proposals relating compensation can be found in the
to executive compensation matters
• Compensation should fairly pay Employee programs section and"
Sustainability-Report-2020-Complete.txt,"stricted stock units (RSUs), stock 100 Nominating and Governance Committee, Prioritize and execute
options, and/or performance-based
Frederic W. Cook & Co., Inc. conducts
awards. In certain circumstances (e.g.,
a survey of director compensation at
for purposes of hiring or retaining key
other large U.S. companies and
talent), we offer grants of restricted executives were provides expert advisory support to Develop others
stock units. eligible for these the committee on the compensation and self
of non-employee directors."
Sustainability-Report-2020-Complete.txt,"r these the committee on the compensation and self
of non-employee directors.
As detailed in the 3M Board of benefits in 2019
Directors’ Compensation Committee
Charter, all incentive compensation including all of the named Act with integrity
and all aspects of executive executive officers.
and transparency
compensation are reviewed regularly
3M’s 2020 Notice of Annual Meeting
by the Compensation Committee,
and Proxy Statement provides
which is comprised solely of
additional details on the named
independent non-employee directors."
Sustainability-Report-2020-Complete.txt,"les for fair and equitable
significant financial or reputational
pay. In 2019, the Compensation
harm as well as risk management
Committee formally added to its list
failures. The Board of Directors
of responsibilities a review of matters
continues to monitor regulatory
relating to internal pay equity.
developments relating to recoupment
of incentive-based compensation. In 2019, approximately 95% of
the shareholder votes cast on our
Additional information on 3M Total
say-on-pay proposal approved
Rewards can be found in the Employee"
Sustainability-Report-2020-Complete.txt,"Our learning orientation and Additionally, content is organized
philosophy focus on experiential and aligned to directly support our
The professional growth of our people learning and skill building rather organizational priorities, including
is essential to the growth of our than classroom-style training. the 3M Leadership Behaviors,
business. In 2019, we provided over company-defined functional
Building a meaningful culture. The number of training hours and competencies, LSS, Sustainability,
25+ the training cost per employee are and supervisory content. Develop U"
Sustainability-Report-2020-Complete.txt,"cies, LSS, Sustainability,
25+ the training cost per employee are and supervisory content. Develop U
not our leading indicators of human provides access to tens of thousands
capital performance. Instead, we focus of unique, just-in-time learning
Our It’s possible for someone to go from a Our actions on indicators that align employees’ resources in over 15 languages,
lab, to marketing, to sales, to business hours of training results to the company’s success when allowing 3M’s global workforce to
commitment development, and all the way up to a nd development assessing our development programs. engage in employee development."
Sustainability-Report-2020-Complete.txt,"human provides access to tens of thousands
capital performance. Instead, we focus of unique, just-in-time learning
Our It’s possible for someone to go from a Our actions on indicators that align employees’ resources in over 15 languages,
lab, to marketing, to sales, to business hours of training results to the company’s success when allowing 3M’s global workforce to
commitment development, and all the way up to a nd development assessing our development programs. engage in employee development.
the C-suite. 3M is so diverse that Our most valuable resource is our Leadership and employee engagement,"
Sustainability-Report-2020-Complete.txt,"learning
Our It’s possible for someone to go from a Our actions on indicators that align employees’ resources in over 15 languages,
lab, to marketing, to sales, to business hours of training results to the company’s success when allowing 3M’s global workforce to
commitment development, and all the way up to a nd development assessing our development programs. engage in employee development.
the C-suite. 3M is so diverse that Our most valuable resource is our Leadership and employee engagement,
people can reinvent themselves and people, and we invest in their success. for full-time equivalent employee retention rates, brand Given this breadth, we’ve seen"
Sustainability-Report-2020-Complete.txt,"ployees to focus on making and so inclusive that they’ll be able discounts designed to help them live milestones, and Lean Six Sigma (LSS)
an impact on the world and feel to collaborate with other curious, their best lives. We also provide tools, We leverage a 70-20-10 development project value are a few examples of
empowered to bring innovation into creative minds wherever they go. For opportunities, and support for people model which indicates that, over the indicators that contribute to 3M’s
their work. more information, see the Employee who want to grow their careers. course of a career, recognition as an industry and global of our global"
Sustainability-Report-2020-Complete.txt,"es A learning-focused 70% workforce engage
3M has prioritized learning and
are more satisfied with their work,
culture
career development opportunities in self-directed training
tend to stay longer, and are more r
productive and committed. We foster f o not only for leaders but for all via online platforms.
and reinforce behaviors that support
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9 m6 a, t0 te0 r0
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3
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of learning is done employees. Further, 3M has separate
engagement on many levels, including e u processes for employee performance Considering job-specific training as"
Sustainability-Report-2020-Complete.txt,"loyees the freedom to training classes were completed.
quality and the impact of professional 20% create meaningful development In 2019, we launched 10 data science
important than ever to anticipate and
development and career growth. plans without performance or and eight digitization functional
exceed the needs of our customers,
compensation implications. learning paths, leading to over
shareholders, and employees. Creating
3M is the place to be for employees 3,800 completions. These and other
interested in development a high-performance culture built on comes through Employee development live events pushed our live event"
Sustainability-Report-2020-Complete.txt,"r and eight digitization functional
exceed the needs of our customers,
compensation implications. learning paths, leading to over
shareholders, and employees. Creating
3M is the place to be for employees 3,800 completions. These and other
interested in development a high-performance culture built on comes through Employee development live events pushed our live event
opportunities. Our company touches Goal: 100% participation continual learning helps 3M achieve completions total to over 102,000
nearly every industry in every market in employee development business growth for the company and other employees Effective employee development and reached both production and"
Sustainability-Report-2020-Complete.txt,"ployee development business growth for the company and other employees Effective employee development and reached both production and
globally. If you work at 3M, you have professional growth for employees. programs are crucial in order to non-production employees globally.
programs to advance
a range of development opportunities 10% reach our goal of 100% of employees
individual and organizational
few other companies can offer. Our engaging in development activities. Employees create or update
people can live in different countries, capabilities by 2025. With our global online employee development plans that include"
Sustainability-Report-2020-Complete.txt,"ools in collaboration with
paths and opportunities aligned is reached through their strategic capabilities within their supervisors to identify long-term
with those interests. Development 3M. Develop U provides employees desired goals and define actions
formal training.
programs may consist of formal with a personalized experience by needed to help reach those goals.
training, on-the-job development, recommending relevant content based
mentoring, and more. on their role within the organization.
120 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 121A key part of career development is Setting new employees Global executive and Coaching"
Sustainability-Report-2020-Complete.txt,"ent sets up new employees With a focus on the critical skills development is
activities or social learning activities,
to succeed and make meaningful that leaders need to be successful
such as meeting with a coach or contributions from the start. in leading others, the Essentials for a competitive
mentor. Currently, the competency-
People Leaders program emerged
based resources cover approximately advantage at 3M.
Nurturing the leader as a multi-module program with the
93% of the non-production
professional employee population. in everyone flexibility to be delivered as face- To maintain this"
Sustainability-Report-2020-Complete.txt,"ine our advantage at 3M. To maintain this delivery format is key to providing a
are continually
technologies, we also share and advantage, we are continually leveraging consistent development experience
combine our knowledge through new technologies and delivery methods, for all leaders of 3M while still leveraging new
mentorship, storytelling, and our thereby assuring impact, consistency, allowing for needed localization.
internal social networking website. and global inclusivity. technologies
All-employee development"
Sustainability-Report-2020-Complete.txt,"stomer focus.
groups, and engage with others cover core skill development aligned
Delivery of content is available face
on specific topics to help them to the 3M Leadership Behaviors. These
to face in experiential workshops,
collaborate and learn. programs also focus on the future
through virtual instructor-led training,
by embedding inclusive leadership
and via self-paced e-modules.
strategies, promoting development
through corporate social responsibility,
and offering mentoring opportunities.
122 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 123Be rewarded for 3M has long prioritized taking a • Management Team Reviews function Learning from listening Each unit or business group that Total turnover includes voluntary"
Sustainability-Report-2020-Complete.txt,"development
through corporate social responsibility,
and offering mentoring opportunities.
122 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 123Be rewarded for 3M has long prioritized taking a • Management Team Reviews function Learning from listening Each unit or business group that Total turnover includes voluntary
well-rounded view of an individual’s not only to provide comprehensive surveys must review their results, turnover and all other forms of
your efforts
performance, assuring that information about an employee, but For more than 50 years, 3M has been present them to their employees, and turnover (e.g., termination as a result"
Sustainability-Report-2020-Complete.txt,"e rewarded for 3M has long prioritized taking a • Management Team Reviews function Learning from listening Each unit or business group that Total turnover includes voluntary
well-rounded view of an individual’s not only to provide comprehensive surveys must review their results, turnover and all other forms of
your efforts
performance, assuring that information about an employee, but For more than 50 years, 3M has been present them to their employees, and turnover (e.g., termination as a result
employees are treated in a fair also to further the goal that rating conducting surveys to solicit employee execute an action plan to address of restructuring, termination for"
Sustainability-Report-2020-Complete.txt,"nt them to their employees, and turnover (e.g., termination as a result
employees are treated in a fair also to further the goal that rating conducting surveys to solicit employee execute an action plan to address of restructuring, termination for
To drive 3M’s successes, we incentivize
and consistent manner: considerations will be consistent for observations, attitudes, and opinions. the issues that arise from the results. poor performance, and retirements).
our employees to excel. Our process
employees within an organization Our Standard Opinion Survey program We built supports into our process Our total employee turnover rate"
Sustainability-Report-2020-Complete.txt,"and relevant feedback to successful change through action terminated or retired 3M employees
and their supervisor, and Leadership jointly between the individual and employees identify their contributions
major units within the company planning — such as accountability during the calendar year, excluding
Behaviors ratings, which reflect his or her leader in meeting their specified goals
(e.g., divisions, sites, and countries). checks and specific tools to act on the foreign service employees and
the extent to which the employee is through an employee performance"
Sustainability-Report-2020-Complete.txt,"he calendar year, excluding
Behaviors ratings, which reflect his or her leader in meeting their specified goals
(e.g., divisions, sites, and countries). checks and specific tools to act on the foreign service employees and
the extent to which the employee is through an employee performance
• Tools provided to leaders facilitate All employees have the opportunity results. We identified key drivers of 3M temporary employees.
engaged in core behaviors that allow process. 3M strives to have 100% of
conversations between leaders to complete the 3M Standard Opinion employee engagement and developed"
Sustainability-Report-2020-Complete.txt,"n instructional videos on engagement). intent to be employed short-term.
The Standard Opinion Survey program We continually assess survey content They do not include contingent workers.
helps hold each of our employees • Feedback on progress toward these meetings, and these employees and
enables us to regularly assess the and update it as needed to assure
accountable for his or her contribution goals is provided formally, twice their supervisors received tasks to 3M follows all applicable local
state of employee engagement and alignment with company strategy and"
Sustainability-Report-2020-Complete.txt,"oups surveyed with our employees’ behavior on the job.
Department is unique in that we
an in-depth dashboard of survey
have one global system to track
results. This is a cycle of continuous Long may your
HR information. At every 3M site
improvement for us, year after year.
curiosity flourish here around the globe, we have instant
access to this information through
Our global voluntary turnover our global reporting tool.
rate continues to be under
Workforce experience,
6%
services, and rewards
,
The more an employee contributes"
Sustainability-Report-2020-Complete.txt,"Workforce experience,
6%
services, and rewards
,
The more an employee contributes
to 3M’s success, the more success
a source of great pride they create for themselves. We offer
a competitive base pay, and
f or our company.
depending on position, variable
incentive pay linked to company and
We calculate voluntary turnover
individual performance. We also
separately from retirements, company-
offer a wide range of benefits and
initiated turnover, and reductions
discounts designed to help employees
in workforce. Voluntary employee"
Sustainability-Report-2020-Complete.txt,"M’s success, the more success
a source of great pride they create for themselves. We offer
a competitive base pay, and
f or our company.
depending on position, variable
incentive pay linked to company and
We calculate voluntary turnover
individual performance. We also
separately from retirements, company-
offer a wide range of benefits and
initiated turnover, and reductions
discounts designed to help employees
in workforce. Voluntary employee
live their best.
turnover is defined as turnover due
to employee-initiated reasons (e.g.,"
Sustainability-Report-2020-Complete.txt,"ase pay, and
f or our company.
depending on position, variable
incentive pay linked to company and
We calculate voluntary turnover
individual performance. We also
separately from retirements, company-
offer a wide range of benefits and
initiated turnover, and reductions
discounts designed to help employees
in workforce. Voluntary employee
live their best.
turnover is defined as turnover due
to employee-initiated reasons (e.g.,
returning to school or going to another
job in a different company).
124 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 125U.S. parental leave retention rate"
Sustainability-Report-2020-Complete.txt,"discounts designed to
*2019 numbers may include those that left on leave in 2018 and came back in 2019. help employees live their best can be
Some employees on leave in 2019 may return in 2020.
found at Working at 3M: Benefits.
Highly competitive pay
Rewarding employees
for their efforts We offer a competitive base pay,
and, depending on position, variable
Medical, dental, and vision plan incentive pay linked to company and
options; savings and retirement plans; individual performance. For more
a 3M employee stock purchase details, see the Compensation section"
Sustainability-Report-2020-Complete.txt,"leave in 2018 and came back in 2019. help employees live their best can be
Some employees on leave in 2019 may return in 2020.
found at Working at 3M: Benefits.
Highly competitive pay
Rewarding employees
for their efforts We offer a competitive base pay,
and, depending on position, variable
Medical, dental, and vision plan incentive pay linked to company and
options; savings and retirement plans; individual performance. For more
a 3M employee stock purchase details, see the Compensation section
U.S. employee parental leave plan; and many other resources and Working at 3M: Pay."
Sustainability-Report-2020-Complete.txt,"oyees on leave in 2019 may return in 2020.
found at Working at 3M: Benefits.
Highly competitive pay
Rewarding employees
for their efforts We offer a competitive base pay,
and, depending on position, variable
Medical, dental, and vision plan incentive pay linked to company and
options; savings and retirement plans; individual performance. For more
a 3M employee stock purchase details, see the Compensation section
U.S. employee parental leave plan; and many other resources and Working at 3M: Pay.
can enhance a 3M employee’s"
Sustainability-Report-2020-Complete.txt,"actice that maximizes
due to local laws and regulations. professional and personal productivity.
total employees total employees
As of January 1, 2019, where applicable, FlexAbility puts into practice a new
354 female employees 322 female employees benefit eligibility also extends to way of thinking: that work life and
domestic partners and their children. personal life can coexist. A FlexAbility
plan can put the power in the
805 male employees 797 male employees Our parental leave policy helps
employee’s hands to make choices that"
Sustainability-Report-2020-Complete.txt,"2018: In 2019*: up to 20 weeks (10 weeks paid and
10 weeks unpaid) of parental leave.
1,020 1,101 This policy was instituted in late 2016.
In 2019, 1,119 U.S. eligible employees
participated, including 322 females
total employees total employees
and — we’re proud to say — 797 males.
288 female employees 330 female employees
732 male employees 771 male employees
* 2019 numbers may include those that left on leave in 2018 and came back
in 2019. Some employees on leave in 2019 may return in 2020.
126 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 127Our footprint 3M global employees 3M regional and global employee 3M global contingent employees"
Sustainability-Report-2020-Complete.txt,"ployees total employees
and — we’re proud to say — 797 males.
288 female employees 330 female employees
732 male employees 771 male employees
* 2019 numbers may include those that left on leave in 2018 and came back
in 2019. Some employees on leave in 2019 may return in 2020.
126 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 127Our footprint 3M global employees 3M regional and global employee 3M global contingent employees
by region hires age distribution by region
Data related to employee metrics has Full and part-time, total 2019 percentage Permanent and temporary employment total"
Sustainability-Report-2020-Complete.txt,"M global contingent employees
by region hires age distribution by region
Data related to employee metrics has Full and part-time, total 2019 percentage Permanent and temporary employment total
been derived from our human capital
100,000 100 12,000
management system. For the data
in the charts provided to the right, 90,000 90
100% has been calculated with no 10,000
80,000 80
assumptions. Additional information
on data management can be found 70,000 70
8,000
in the About report section. 60,000 60
The employee metrics in the charts are 50,000 50 6,000"
Sustainability-Report-2020-Complete.txt,"ibution by region
Data related to employee metrics has Full and part-time, total 2019 percentage Permanent and temporary employment total
been derived from our human capital
100,000 100 12,000
management system. For the data
in the charts provided to the right, 90,000 90
100% has been calculated with no 10,000
80,000 80
assumptions. Additional information
on data management can be found 70,000 70
8,000
in the About report section. 60,000 60
The employee metrics in the charts are 50,000 50 6,000
reflective of employee headcount as"
Sustainability-Report-2020-Complete.txt,"no 10,000
80,000 80
assumptions. Additional information
on data management can be found 70,000 70
8,000
in the About report section. 60,000 60
The employee metrics in the charts are 50,000 50 6,000
reflective of employee headcount as
40,000 40
of December 31, 2019 (total number of
4,000
3M full-time and part-time employees), 30,000 30
not 3M full-time equivalent (FTE)
20,000 20
employees. Due to acquisition 2,000
integration schedules factored into 10,000 10
3M’s human capital management
0 0 0
system, detailed employee information 2015 2016 2017 2018 2019 Asia Canada Europe, Latin United Global 2016 2017 2018 2019"
Sustainability-Report-2020-Complete.txt,"yee metrics in the charts are 50,000 50 6,000
reflective of employee headcount as
40,000 40
of December 31, 2019 (total number of
4,000
3M full-time and part-time employees), 30,000 30
not 3M full-time equivalent (FTE)
20,000 20
employees. Due to acquisition 2,000
integration schedules factored into 10,000 10
3M’s human capital management
0 0 0
system, detailed employee information 2015 2016 2017 2018 2019 Asia Canada Europe, Latin United Global 2016 2017 2018 2019
Pacific Middle America States
below may differ from employee totals Global Asia Pacific Canada Europe, East, Global Asia Pacific Canada Europe,"
Sustainability-Report-2020-Complete.txt,"17 2018 2019 Asia Canada Europe, Latin United Global 2016 2017 2018 2019
Pacific Middle America States
below may differ from employee totals Global Asia Pacific Canada Europe, East, Global Asia Pacific Canada Europe,
Africa
in 3M financial reports. Middle East, Middle East,
Latin America United States Africa Generation Z Generation Y Generation X Baby Boomers Latin America United States Africa
(>1994) (1981-1994) (1961-1981) (1943-1960)
Contingent hourly or daily workers only, see GRI 102-8 and
employee contract."
Sustainability-Report-2020-Complete.txt,"anada Europe, Latin United Global 2016 2017 2018 2019
Pacific Middle America States
below may differ from employee totals Global Asia Pacific Canada Europe, East, Global Asia Pacific Canada Europe,
Africa
in 3M financial reports. Middle East, Middle East,
Latin America United States Africa Generation Z Generation Y Generation X Baby Boomers Latin America United States Africa
(>1994) (1981-1994) (1961-1981) (1943-1960)
Contingent hourly or daily workers only, see GRI 102-8 and
employee contract.
3M regional and global employee 3M global new employee hires 3M global female employees"
Sustainability-Report-2020-Complete.txt,"100 16,000 50
90
14,000
80 40
12,000
70
60 10,000 30
50 8,000
40 20
6,000
30
4,000
20 10
10 2,000
0 0 0
Asia Canada Europe, Latin United Global
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Pacific Middle America States
East,
Africa Global Asia Pacific Canada Europe, Global Asia Pacific Canada Europe,
Middle East, Middle East,
Generation Z Generation Y Generation X Baby Boomers Latin America United States Africa Latin America United States Africa
(>1994) (1981-1994) (1961-1981) (1943-1960)
128 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 129g"
Sustainability-Report-2020-Complete.txt,"M 2020 Sustainability Report #improvinglives 129g
n
i d
k
r
o a
o w
L
r
3M global female hires by region 3M global female employees People and culture o
f
Percentage of total hires Full and part-time
In 2019, we published our first-ever
60 40,000
2018 Year in Review of People and
Culture magazine. The magazine
35,000
50 features stories from a few of the In 2020, we will continue to work
96,000 employees who represent
30,000 toward our 2025 Sustainability
what culture looks like at 3M. Everyone
40 Goal for employee participation in"
Sustainability-Report-2020-Complete.txt,"focused
on change leadership to guide us
through organizational changes
that will strengthen our company.
Leading change is about helping
people move from unaware to full
3M global females in management
commitment to the change. We
Percentage of total created a Leading Through Change
35 intranet website and provide tools
and resources for leaders and others
through each phase of the change.
30
20
10
0
2015 2016 2017 2018 2019
Values represent the percentage of management positions held
by women
130 How we work Employee programs 3M 2020 Sustainability Report #improvinglives 131Health and"
Sustainability-Report-2020-Complete.txt,"all applicable
health consultations that include 3M workplace safety and health
and work. a personal health history review, requirements. For example,
immunizations, appropriate travel contractors must complete a pre-
medications, and travel health qualification process before they may
education. We assist all employees perform work on 3M premises. This
who may require medical assistance process includes, among other things,
Our identify opportunities for continuous Our programs are designed to
while away from their home country. reviewing the contractor’s employee"
Sustainability-Report-2020-Complete.txt,"travel contractors must complete a pre-
medications, and travel health qualification process before they may
education. We assist all employees perform work on 3M premises. This
who may require medical assistance process includes, among other things,
Our identify opportunities for continuous Our programs are designed to
while away from their home country. reviewing the contractor’s employee
improvement; and share exemplary prevent health-related issues. Clinical
injury/illness rates, experience
commitment practices among 3M auditable entities. services for illnesses and injuries Healthy living modification rates (EMR), employee"
Sustainability-Report-2020-Complete.txt,"o protect workers’ medical
FlexAbility approach, which provides participate in pre-bid meetings and
worldwide, so we can all focus on what and contingent employees are information. The standard covers
employees with help optimizing their pre-qualifications for contractors.
matters most to us. covered by our injury and illness access, collection, storage, security,
work and personal life through one-on- The contractor coordinator and/or
recordkeeping rules. transfer of records, record retention,
Employee safety and record destruction. This standard one planning with their supervisor. a trained designated representative"
Sustainability-Report-2020-Complete.txt,"ed by our injury and illness access, collection, storage, security,
work and personal life through one-on- The contractor coordinator and/or
recordkeeping rules. transfer of records, record retention,
Employee safety and record destruction. This standard one planning with their supervisor. a trained designated representative
is on-site and therefore available
and health 3M medical programs assures that 3M medical information Additional information can be found for contractor meetings and safety
and services is handled in a manner consistent with in the Employee programs section of reviews whenever necessary and"
Sustainability-Report-2020-Complete.txt,"ool (HazPET) to categorize hazardous culture through leadership
hazard levels and define appropriate
lock-outs. Risk mitigation and
processes. Process Hazard Analyses engagement with site employees.
levels of control.
investigation managers provide
(PHAs) are used to assess the
security expertise and guidance to effectiveness of existing safeguards. Environmental, health, Each manufacturing and
businesses and sites. 3M’s Global Layers of Protection Analysis (LOPA) distribution site completed an
Security Operations Center (GSOC) is also used in some instances to and safety (EHS) EHS employee perception survey"
Sustainability-Report-2020-Complete.txt,"019, our Global Safety and Health
specific action plans direct the
siting assessments help us identify Plan (GSHP) Self-Assessment and
The GSOC also manages travel site’s leadership team on future
and mitigate “maximum credible event” Global Environmental Management
safety and provides emergency steps to improve EHS culture,
scenarios that could impact workers Self-Assessment (GEMSA) were
care and support to workers. such as:
at some sites, and is a global initiative combined to create 3M’s EHS
Incident and crisis that builds on 3M’s existing guidance to Management System Self-Assessment, • Leadership and employee"
Sustainability-Report-2020-Complete.txt,"d
workers and provides a response manufacturing sites. standards related to safety and health.
mechanism to confirm their safety
after a severe or catastrophic event.
3M’s Corporate Crisis Action Team
(CCAT) provides global leadership,
coordination, and direction in crisis
situations. For more information,
visit the Enterprise risk section.
134 How we work Health and safety 3M 2020 Sustainability Report #improvinglives 135Significant injury/illness Online ergonomic training is also Occupational
available 24/7 to any employee who"
Sustainability-Report-2020-Complete.txt,"ental
In 2019, Hazard Assessment (EHA) process
Global Asia Pacific Canada Europe, Global Asia Pacific Canada Europe,
100% Middle East, Middle East, tool; developing standard work for
Latin America United States Africa Latin America United States Africa event investigations; and exploring
real-time data systems to track EHS
compliance, risk reduction, and
3M global recordable incident
cultural excellence.
of 3M manufacturing
rate category
sites worldwide
Per 100 3M employees (200,000 work hours)
had active employee safety 0.5"
Sustainability-Report-2020-Complete.txt,"and well-being.” approach management teams maintained at each
3M site and international subsidiary.
• Industry-leading efforts to measure Sustainable Development (WBCSD) • Encourage investment and protect
and reduce our own greenhouse gas GHG Protocol Corporate Accounting intellectual property to facilitate Corporate and local plans consider
(GHG) emissions and Reporting Standard to set GHG 1 S pecial Report on Global Warming of technology breakthroughs the risk of natural disasters, infectious
• Extensive public policy engagement emission reduction targets. 1 In.5 tº eC rg ( oR ve ep rno mrt) e. nIn tac lh Pe ao nn e, lS oo nu t Ch l iK mo ar te ea : • Include provisions for carbon disease, employee safety, protection"
Sustainability-Report-2020-Complete.txt,"ature story, “Flipping framework of “plan-do-check-act” for
expertise and advances, driving renewable electricity usage to over 30% the switch on renewable energy.” the management of energy in on-site
site-level efficiency improvements, for the year. 3M became the largest operations, our sites have seen savings
While 3M takes actions to help convert
maintaining top management support, company in Xcel Energy, Inc.’s service in energy costs and consumption,
its operations to renewable electricity
and protecting 3M’s reputation. area across eight Western and Midwestern expansion of employee engagement,"
Sustainability-Report-2020-Complete.txt,"in achieving commitment and achievements in several quality system elements from whenever a methodology change our use of renewable electricity, and
energy Treasure Hunts, collaborated
energy metrics. To qualify, these sites energy savings the ANSI/ISO/IEC 17025 Standard, is implemented, 3M will, wherever implementing and maintaining pollution
with the Corporate team or external
must demonstrate an active culture including: possible, recalculate prior year’s control technologies. These methods,
partners, and integrated employee"
Sustainability-Report-2020-Complete.txt,"resources. Whether the
or social factors to contribute to our with customers on solutions that help together in our portfolio, even though our business models and enable us to innovative product platforms.
item is made for 3M, with 3M products,
aspirations laid out in our Strategic improve lives around the world. we might operate in multiple markets. enter those markets successfully —
or just for fun, it’s the opportunity to
to take our fundamental strengths One of the many things that makes 3M
highlight how the employee brings"
Sustainability-Report-2020-Complete.txt,"2020 changes are identified in the Annual corporate-wide EHS reporting (tons emitted or net sales) to assure
Report 2019 and 2020 Notice of systems (e.g., Environmental the environmental progress we report
Next issue: Scheduled for May 2021 Annual Meeting & Proxy statement. Targets Database, EHS 360, etc.) to the public is not unduly influenced
by changes to our organizational
Previous issue: May 14, 2019 • Social data: The data related to
Data collection, structure. However, in the case of our
employee metrics, social practices,"
Sustainability-Report-2020-Complete.txt,"1.6: By 2030, reduce the adverse per capita environmental impact
of cities, including by paying special attention to air quality and
municipal and other waste management.
12.A: Support developing countries to strengthen their scientific and
technological capacity to move toward more sustainable patterns of
consumption and production.
222 About report Sustainable Development Goals 3M 2020 Sustainability Report #improvinglives 223Science for
UN SDG SDG Targets
Community goal
100% participation in
employee development 8.5: By 2030, achieve full and productive employment and decent"
Sustainability-Report-2020-Complete.txt,"d services Annual Report on Form 10-K, pages 4–6
102-3 Location of 3M Company
headquarters 3M Center
Compact Communication St. Paul, Minnesota, 55144-1000, United States
102-4 Location of operations Operations in 70-plus countries
Innovation management 198
on Progress Names of countries, 3M.com
Annual Report on Form 10-K, page 130
102-5 Ownership and legal Annual Report on Form 10-K, page 4
form
102-6 Markets served Our customers 192
Our products 208
3M.com
Annual Report on Form 10-K, pages 4-6
102-7 Scale of the Employee programs 120"
Sustainability-Report-2020-Complete.txt,"unication St. Paul, Minnesota, 55144-1000, United States
102-4 Location of operations Operations in 70-plus countries
Innovation management 198
on Progress Names of countries, 3M.com
Annual Report on Form 10-K, page 130
102-5 Ownership and legal Annual Report on Form 10-K, page 4
form
102-6 Markets served Our customers 192
Our products 208
3M.com
Annual Report on Form 10-K, pages 4-6
102-7 Scale of the Employee programs 120
organization Metric tables: historical metrics; social performance, 244
employee and financial performance"
Sustainability-Report-2020-Complete.txt,"f operations Operations in 70-plus countries
Innovation management 198
on Progress Names of countries, 3M.com
Annual Report on Form 10-K, page 130
102-5 Ownership and legal Annual Report on Form 10-K, page 4
form
102-6 Markets served Our customers 192
Our products 208
3M.com
Annual Report on Form 10-K, pages 4-6
102-7 Scale of the Employee programs 120
organization Metric tables: historical metrics; social performance, 244
employee and financial performance
Annual Report on Form 10-K, pages 4–6
102-8 Information on Employee programs 120 UNGC Principle 6"
Sustainability-Report-2020-Complete.txt,"c material. 3M has an
102-22 Composition of the Corporate governance 86 SDG 5, 16 compensation ratio established process to assure our commitment to fair and
highest governance 3M Board of Directors equitable pay. The breakdown to calculate the median
body and its 3M Committee Composition percentage increase does not accurately reflect our
committees 2020 Proxy Statement, page 14–19, 36–42 workforce levels and process at 3M to assure equitable
remuneration. Additional details on our process can
102-23 Chair of the highest Michael F. Roman SDG 16 be found in Compensation and Employee programs."
Sustainability-Report-2020-Complete.txt,"ort on Form 10-K, pages 109-124
health
GRI 308: Supplier environmental
403-7 Prevention and Health and safety 132
103-1 to Management approach Suppliers 176 mitigation of Innovation management 198
103-3 disclosures Supplier Responsibility Code occupational health and
safety impacts directly
308-1 New suppliers that Suppliers 176 UNGC Principle 8 linked by business
were screened using Supplier Responsibility Code relationships
environmental criteria
403-8 Workers covered by Health and safety 132
308-2 Negative environmental Suppliers 176 UNGC Principle 8 an occupational health Employee programs 120"
Sustainability-Report-2020-Complete.txt,"al criteria
403-8 Workers covered by Health and safety 132
308-2 Negative environmental Suppliers 176 UNGC Principle 8 an occupational health Employee programs 120
impacts in the supply Supplier Responsibility Code and safety management
chain and actions taken system
Topic specific standards, 400 social 403-9 Work-related injuries Health and safety 132
Metric table: health and safety 244
403-10 Work-related ill health Health and safety 132
GRI 401: Employment
Metric table: health and safety 244
103-1 to Management approach Employee programs 120"
Sustainability-Report-2020-Complete.txt,"UNGC Principle 8 an occupational health Employee programs 120
impacts in the supply Supplier Responsibility Code and safety management
chain and actions taken system
Topic specific standards, 400 social 403-9 Work-related injuries Health and safety 132
Metric table: health and safety 244
403-10 Work-related ill health Health and safety 132
GRI 401: Employment
Metric table: health and safety 244
103-1 to Management approach Employee programs 120
GRI 404: Training and education
103-3 disclosures
401-1 New employee hires Employee programs 120 UNGC Principle 6 103-1 to Management approach Employee programs 120"
Sustainability-Report-2020-Complete.txt,"nd safety management
chain and actions taken system
Topic specific standards, 400 social 403-9 Work-related injuries Health and safety 132
Metric table: health and safety 244
403-10 Work-related ill health Health and safety 132
GRI 401: Employment
Metric table: health and safety 244
103-1 to Management approach Employee programs 120
GRI 404: Training and education
103-3 disclosures
401-1 New employee hires Employee programs 120 UNGC Principle 6 103-1 to Management approach Employee programs 120
and employee turnover Confidentiality constraints, we can provide total turnover SDG 5, 8 103-3 disclosures"
Sustainability-Report-2020-Complete.txt,"safety 244
403-10 Work-related ill health Health and safety 132
GRI 401: Employment
Metric table: health and safety 244
103-1 to Management approach Employee programs 120
GRI 404: Training and education
103-3 disclosures
401-1 New employee hires Employee programs 120 UNGC Principle 6 103-1 to Management approach Employee programs 120
and employee turnover Confidentiality constraints, we can provide total turnover SDG 5, 8 103-3 disclosures
rate of 13.1% but not able to provide breakdown by age
404-1 Average hours of Employee programs 120 UNGC Principle 6"
Sustainability-Report-2020-Complete.txt,"3-1 to Management approach Employee programs 120
GRI 404: Training and education
103-3 disclosures
401-1 New employee hires Employee programs 120 UNGC Principle 6 103-1 to Management approach Employee programs 120
and employee turnover Confidentiality constraints, we can provide total turnover SDG 5, 8 103-3 disclosures
rate of 13.1% but not able to provide breakdown by age
404-1 Average hours of Employee programs 120 UNGC Principle 6
group, gender, and region.
training per year per SDG 4, 5, 8
401-2 Benefits provided to Employee programs 120 SDG 8 employee"
Sustainability-Report-2020-Complete.txt,"-3 disclosures
401-1 New employee hires Employee programs 120 UNGC Principle 6 103-1 to Management approach Employee programs 120
and employee turnover Confidentiality constraints, we can provide total turnover SDG 5, 8 103-3 disclosures
rate of 13.1% but not able to provide breakdown by age
404-1 Average hours of Employee programs 120 UNGC Principle 6
group, gender, and region.
training per year per SDG 4, 5, 8
401-2 Benefits provided to Employee programs 120 SDG 8 employee
full-time employees
404-2 Programs for upgrading Employee programs 120 SDG 8"
Sustainability-Report-2020-Complete.txt,"-1 to Management approach Employee programs 120
and employee turnover Confidentiality constraints, we can provide total turnover SDG 5, 8 103-3 disclosures
rate of 13.1% but not able to provide breakdown by age
404-1 Average hours of Employee programs 120 UNGC Principle 6
group, gender, and region.
training per year per SDG 4, 5, 8
401-2 Benefits provided to Employee programs 120 SDG 8 employee
full-time employees
404-2 Programs for upgrading Employee programs 120 SDG 8
that are not provided to
employee skills and"
Sustainability-Report-2020-Complete.txt,"ty constraints, we can provide total turnover SDG 5, 8 103-3 disclosures
rate of 13.1% but not able to provide breakdown by age
404-1 Average hours of Employee programs 120 UNGC Principle 6
group, gender, and region.
training per year per SDG 4, 5, 8
401-2 Benefits provided to Employee programs 120 SDG 8 employee
full-time employees
404-2 Programs for upgrading Employee programs 120 SDG 8
that are not provided to
employee skills and
temporary or part-time
transition assistance
employees
program
401-3 Parental leave Employee programs 120 UNGC Principle 6 404-3 Percentage of Employee programs 120 UNGC Principle 6"
Sustainability-Report-2020-Complete.txt,"er SDG 4, 5, 8
401-2 Benefits provided to Employee programs 120 SDG 8 employee
full-time employees
404-2 Programs for upgrading Employee programs 120 SDG 8
that are not provided to
employee skills and
temporary or part-time
transition assistance
employees
program
401-3 Parental leave Employee programs 120 UNGC Principle 6 404-3 Percentage of Employee programs 120 UNGC Principle 6
SDG 5, 8 employees receiving SDG 5, 8
regular performance
GRI 402: Labor/management relations
and career development
103-1 to Management approach Employee programs 120 reviews"
Sustainability-Report-2020-Complete.txt,"upgrading Employee programs 120 SDG 8
that are not provided to
employee skills and
temporary or part-time
transition assistance
employees
program
401-3 Parental leave Employee programs 120 UNGC Principle 6 404-3 Percentage of Employee programs 120 UNGC Principle 6
SDG 5, 8 employees receiving SDG 5, 8
regular performance
GRI 402: Labor/management relations
and career development
103-1 to Management approach Employee programs 120 reviews
103-3 disclosures
GRI 405: Diversity and Equal Opportunity
402-1 Minimum notice periods Employee programs 120"
Sustainability-Report-2020-Complete.txt,"e
employees
program
401-3 Parental leave Employee programs 120 UNGC Principle 6 404-3 Percentage of Employee programs 120 UNGC Principle 6
SDG 5, 8 employees receiving SDG 5, 8
regular performance
GRI 402: Labor/management relations
and career development
103-1 to Management approach Employee programs 120 reviews
103-3 disclosures
GRI 405: Diversity and Equal Opportunity
402-1 Minimum notice periods Employee programs 120
regarding operational 103-1 to Management approach Corporate governance 86
changes 103-3 disclosures Employee diversity and inclusion 70"
Sustainability-Report-2020-Complete.txt,"UNGC Principle 6 404-3 Percentage of Employee programs 120 UNGC Principle 6
SDG 5, 8 employees receiving SDG 5, 8
regular performance
GRI 402: Labor/management relations
and career development
103-1 to Management approach Employee programs 120 reviews
103-3 disclosures
GRI 405: Diversity and Equal Opportunity
402-1 Minimum notice periods Employee programs 120
regarding operational 103-1 to Management approach Corporate governance 86
changes 103-3 disclosures Employee diversity and inclusion 70
Employee programs 120"
Sustainability-Report-2020-Complete.txt,"relations
and career development
103-1 to Management approach Employee programs 120 reviews
103-3 disclosures
GRI 405: Diversity and Equal Opportunity
402-1 Minimum notice periods Employee programs 120
regarding operational 103-1 to Management approach Corporate governance 86
changes 103-3 disclosures Employee diversity and inclusion 70
Employee programs 120
405-1 Diversity of governance Corporate governance 86 UNGC Principle 6
bodies and employees Corporate Officers SDG 5, 8
Board of Directors
Employee diversity and inclusion 70"
Sustainability-Report-2020-Complete.txt,"-1 to Management approach Employee programs 120 reviews
103-3 disclosures
GRI 405: Diversity and Equal Opportunity
402-1 Minimum notice periods Employee programs 120
regarding operational 103-1 to Management approach Corporate governance 86
changes 103-3 disclosures Employee diversity and inclusion 70
Employee programs 120
405-1 Diversity of governance Corporate governance 86 UNGC Principle 6
bodies and employees Corporate Officers SDG 5, 8
Board of Directors
Employee diversity and inclusion 70
Employee programs 120"
Sustainability-Report-2020-Complete.txt,"-3 disclosures 3M Global Privacy Policy
103-1 to Management approach Human rights 106
103-3 disclosures GRI 419: Socioeconomic compliance
412-1 Operations that have Human rights 106 UNGC Principle 1 103-1 to Management approach Corporate Code of Conduct 98
been subject to human 103-3 disclosures
rights reviews or impact 419-1 Non-compliance with Significant legal actions for non-compliance with laws SDG 16
assessments laws and regulations and regulations in the social and economic area would be
412-2 Employee training on Human rights 106 UNGC Principle 1 in the social and discussed in our Annual Report on Form 10-K, pages 109–124"
Sustainability-Report-2020-Complete.txt,"09–124
human rights policies economic area
or procedures
*United Nations Global Compact Principles and United Nations Sustainable Development Goals
234 About report GRI index and UNGC 3M 2020 Sustainability Report #improvinglives 235SASB index
Page
Dimension General issue category Cross-reference (hyperlinks) or direct answer
(.pdf)
Human Labor Practices Corporate Code of Conduct 98
capital Human rights 106
Suppliers 176
Ethics & compliance
Supplier Responsibility Code
Sustainability Accounting
Employee health Health and safety 132"
Sustainability-Report-2020-Complete.txt,"ted Nations Sustainable Development Goals
234 About report GRI index and UNGC 3M 2020 Sustainability Report #improvinglives 235SASB index
Page
Dimension General issue category Cross-reference (hyperlinks) or direct answer
(.pdf)
Human Labor Practices Corporate Code of Conduct 98
capital Human rights 106
Suppliers 176
Ethics & compliance
Supplier Responsibility Code
Sustainability Accounting
Employee health Health and safety 132
and safety Metric tables: historical metrics; health and safety 244
Standards Board Employee engagement, Communities 60"
Sustainability-Report-2020-Complete.txt,"report GRI index and UNGC 3M 2020 Sustainability Report #improvinglives 235SASB index
Page
Dimension General issue category Cross-reference (hyperlinks) or direct answer
(.pdf)
Human Labor Practices Corporate Code of Conduct 98
capital Human rights 106
Suppliers 176
Ethics & compliance
Supplier Responsibility Code
Sustainability Accounting
Employee health Health and safety 132
and safety Metric tables: historical metrics; health and safety 244
Standards Board Employee engagement, Communities 60
diversity and inclusion Employee diversity and inclusion 70"
Sustainability-Report-2020-Complete.txt,"ewable Energy % Total Electricity Use 32.6 OffsiteC RaetecgyocOlreyf f s6i t-e OB Rfufessciintyece lsRese Tcyracvlee l MetricM TeotnrsicM Teotnrsic MC TOeo2tnresic Tons 1 4 3 , 0 0 502,80104 3,001043,000 Renewable ERneenregwyRaebnlee wEanbelreg yEnergy % Total Elect%ri cTitoyt aU%l s ETeloetcatrl iEclietyc tUrisceity U3s2e.6 32.6Ca3t2e.g6ory 6 - CBautseingoeCrsayst eT6gr -ao Bvreyu ls6i n- eBsus sTinraevses lTraveMletric Tons MCOe2treicM Teotnrsic C TO o 2n es C O 2 5e2,8 0 0 5 2 , 8 0 502 ,800
Category 7 - Employee Commuting Metric Tons CO2e 336,000 Category 7 - Employee Commuting Metric Tons CO2e 336,000"
Sustainability-Report-2020-Complete.txt,"Total NumbeTro otaf lS NuTpuopmtalible Nerr uR omefv bSieeuwrp ospfl iSeur pRpelvieierw Rseviews 6,920 6,9206,920
since 2008 since 2008 since 2s0in0c8e 2008
242 About report Assurance statement 3M 2020 Sustainability Report #improvinglives 243Metric
2018-2019 2015-2019
Metric
Metric RY-2015 RY-2016 RY-2017 RY-2018 RY-2019 annual five-year
units
change, % change, %
Social performance, employees
tables
Global full-time Total
89,400 91,600 91,500 93,500 96,200 2.89 7.61
equivalent employees number
Global employee Total"
Sustainability-Report-2020-Complete.txt,"0 2 0 0 A deb to au ilt s .report section for
significant fines
Significant fine: Fine or penalty over $10,000 Calculated from 3M
Scope 3, Category 6 Metric tons Insufficient
T sio gt na il
f
im cao nn te ft ia nr ey
s
value of M $Uil Sli Don 0 0 0.0900 0.000 0.000 (business travel) CO 2e data 59,300 60,700 61,600 52,800 p trr aim vea l.ry data on business
Environmental liability Million Methodology updated
accrued at year end $USD See our Annual Report, 10-K, pages 121–122 to calculate values
based on 3M employee"
Sustainability-Report-2020-Complete.txt,"ategory 6 Metric tons Insufficient
T sio gt na il
f
im cao nn te ft ia nr ey
s
value of M $Uil Sli Don 0 0 0.0900 0.000 0.000 (business travel) CO 2e data 59,300 60,700 61,600 52,800 p trr aim vea l.ry data on business
Environmental liability Million Methodology updated
accrued at year end $USD See our Annual Report, 10-K, pages 121–122 to calculate values
based on 3M employee
Greenhouse gas — metric Scope 3, Category 7 Metric tons 325,000 332,000 332,000 327,000 336,000 headcount with U.S. EPA
(employee commuting) COe"
Sustainability-Report-2020-Complete.txt,"0 through we committed to 300,000 work It anchors purpose-driven innovation
membership in the RE100 and doubled hours of service across the globe. in our products, manufacturing
We began directing our efforts to To advance Science our interim target to 50% by 2025 This program builds upon existing processes, and new technologies —
align with the Strategic Sustainability (having already achieved our goal of philanthropic and social Sustainability and we’re always trying to do more.
for Circular,
Framework announced in November 25%). Shortly after, we flipped the programs supporting the workforce We know that together with our"
Sustainability-Report-2020-Complete.txt,"es and around the world.
For more information, see the Circular We know that in order to solve global
For more information, see the Climate
materials section. challenges we need new technologies,
and energy section.
creative scientists, and evidence-
based policies and decisions to drive
impactful change. We also recognize
the importance of well-trained
Advancing Sustainability for science, technology, engineering, and
mathematics (STEM) graduates and the
3M is a priority. It’s not just for 3M;
critical need for a diverse workforce"
Sustainability-Report-2020-Complete.txt,"siness decisions
on what benefits us as a company. • Achieve zero landfill status at more capabilities by 2025
and strategy, as well as how we • Increase renewable energy to
We have a commitment — and the than 30% of manufacturing sites
focus our efforts for local and 50% of total electricity use by • Double the pipeline of diverse
ability — to use our resources and by 2025
global community impact. For that 2025 and to 100% by 2050 talent in management to build
capabilities to impact the world.
reason, we’ve reorganized our 2025 • Drive supply chain Sustainability a diverse workforce by 2025"
Sustainability-Report-2020-Complete.txt,"nts from underrepresented in STEM. Two students who
local technical schools and high
scholarships toward recruitment, training, and technology and raise interest in STEM. groups who may not have had participated in the campaign will
schools have access to appropriate
professional development of diverse These simple experiments help access to such opportunities before receive a $2,500 scholarship.
technologies and training. Below are
STEM teachers — recognizing students understand how 3M science
some of the programs 3M is investing • 3M has helped close the workforce that when teachers reflect student can impact everyday life and show • STEM scholarships for diverse One giant STEP for students"
Sustainability-Report-2020-Complete.txt,"ticipated in the campaign will
schools have access to appropriate
professional development of diverse These simple experiments help access to such opportunities before receive a $2,500 scholarship.
technologies and training. Below are
STEM teachers — recognizing students understand how 3M science
some of the programs 3M is investing • 3M has helped close the workforce that when teachers reflect student can impact everyday life and show • STEM scholarships for diverse One giant STEP for students
in to help keep the workforce gap across many industries around demographics, it is academically that science can be fun. Learn undergraduate students"
Sustainability-Report-2020-Complete.txt,"ding goes to robotics
teams that enable underresourced and
underrepresented students to participate.
62 Who we are Communities 3M 2020 Sustainability Report #improvinglives 63Inspiring employees Post-graduate learning • Employees from 3M Malaysia Global community investments
opportunity spent a day with students at Key
to make an impact MySkills, a nonprofit that equips Volunteer programs
Foundation boards
The 3M Optimized Operations at-risk teenagers with skills to Lithuania STEM-type programs
By investing in programs that promote Experience (O2 Engage) is a prepare them for the workforce. Germany Switzerland Latvia 3M Impact projects"
Sustainability-Report-2020-Complete.txt,"strategy. Doubling our from 32.6% to 41.8%, progressing
women, covered veterans, and diverse talent in management positions toward our 2025 Goal of 65.2%.
inclusion individuals with disabilities and also to will ultimately help build a diverse
provide reasonable accommodations pipeline for executive leadership as Our actions
to individuals with disabilities. well. We recognize that definitions
of diversity vary among different
Every day, we work to assure that the
countries and cultures. The 3M
o r definition of diversity includes gender, 3M workforce is representative of the"
Sustainability-Report-2020-Complete.txt,"to respectful treatment in the
leaders within the company globally. of diverse candidates
long-term growth for 3M as well as 3M workplace. Being respectful
Goal: Double the pipeline of
for our people and our teams. means being treated honestly and Beyond our day-to-day efforts to
In the United States and in many other
To become the most inclusive enterprise professionally, and valuing each diverse talent in management support diversity in 2019, we also
countries, we provide our people with the
we can be, 3M focuses on engaging all Above all, fostering a culture that person’s unique talents, background, to build a diverse workforce actively promoted initiatives to engage"
Sustainability-Report-2020-Complete.txt,"al and emotional oxygen involves more than compliance with
actions we take that make us unique so all people can flourish and the law. It is a work environment that is
among companies and differentiate us feel comfortable to collaborate, free of inappropriate or unprofessional
in our marketplace. agree, disagree, and respectfully behavior and consistent with 3M’s
exchange, learn, and create. ethics and values — a place where all
We know that a diverse, global employees can do their best and are
workforce — people with different Our Code of Conduct lays out free to report workplace concerns"
Sustainability-Report-2020-Complete.txt,"r marketplace. agree, disagree, and respectfully behavior and consistent with 3M’s
exchange, learn, and create. ethics and values — a place where all
We know that a diverse, global employees can do their best and are
workforce — people with different Our Code of Conduct lays out free to report workplace concerns
experience, ethnicity, age, gender, what it means to be a 3M employee without fear of retaliation or reprisal.”
sexual orientation, personalities, styles, and includes the 3M Respectful
and ways of thinking — helps us relate Workforce Principle: To foster this kind of workplace,"
Sustainability-Report-2020-Complete.txt,"ined a
innovation are
Council meeting. The purpose is to You Define You session,
elevate current inclusion challenges interconnected. more than 500 participated in a
impacting the specific group or
Personal Purpose workshop, and
broader organization. The focus is
thousands more took part in global
on accomplishments over the last six
celebrations around the world.
months, their priorities and strategic
plan, and suggestions on ways to
improve. The presentation is followed
by a group discussion.
72 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 73ERN Community This development journey is based Continuing support for Best Places to Work Latina Style Award STEM Workforce"
Sustainability-Report-2020-Complete.txt,"wed
by a group discussion.
72 Who we are Employee diversity and inclusion 3M 2020 Sustainability Report #improvinglives 73ERN Community This development journey is based Continuing support for Best Places to Work Latina Style Award STEM Workforce
on a growth mindset and will equip
Champions our military community for Disability Inclusion Diversity magazine award
the ERNs to influence, lead, and build In September 2019, 3M was
mentor, sponsor, and ally relationships selected as one of the Top 50
3M’s nine ERNs aim to address 3M strives to be the premier employer Representing people with disabilities The readers of STEM Workforce Diversity"
Sustainability-Report-2020-Complete.txt,"their best and are choose whether or not to join unions
free to report workplace concerns and engage in collective bargaining,
Our Guided by deeply A respectful workplace without fear of retaliation or reprisal.” as permitted by applicable laws
in the countries where 3M does
commitment engrained principles Our Code of Conduct lays out what it Working hours and business.” In the event of business
in our culture means to be a 3M employee and includes living wages operations changes, we follow all
the 3M Respectful Workforce Principle: applicable local laws and regulations"
Sustainability-Report-2020-Complete.txt,"a United Nations
of employees to have a respectful that reflects and actual pay data from benchmark
Global Compact (UNGC) participant,
workplace. This culture extends peer companies in manufacturing.
thereby committing to align our values the best in
through our human resources policies, 3M also complies with all applicable
operations and strategies with the of 3M’s global
programs, and management systems, laws relating to overtime and breaks.
UNGC principles on business and all of us, where we
including 3M’s Leadership Behaviors. Additional information can be found workforce is"
Sustainability-Report-2020-Complete.txt,"ness. In 2019, we provided over company-defined functional
Building a meaningful culture. The number of training hours and competencies, LSS, Sustainability,
25+ the training cost per employee are and supervisory content. Develop U
not our leading indicators of human provides access to tens of thousands
capital performance. Instead, we focus of unique, just-in-time learning
Our It’s possible for someone to go from a Our actions on indicators that align employees’ resources in over 15 languages,
lab, to marketing, to sales, to business hours of training results to the company’s success when allowing 3M’s global workforce to"
Sustainability-Report-2020-Complete.txt,"ous, their best lives. We also provide tools, We leverage a 70-20-10 development project value are a few examples of
empowered to bring innovation into creative minds wherever they go. For opportunities, and support for people model which indicates that, over the indicators that contribute to 3M’s
their work. more information, see the Employee who want to grow their careers. course of a career, recognition as an industry and global of our global
business leader.
diversity and inclusion section.
We know that engaged employees A learning-focused 70% workforce engage"
Sustainability-Report-2020-Complete.txt,"wth. 3M’s Human Resources (HR)
of the business groups surveyed with our employees’ behavior on the job.
Department is unique in that we
an in-depth dashboard of survey
have one global system to track
results. This is a cycle of continuous Long may your
HR information. At every 3M site
improvement for us, year after year.
curiosity flourish here around the globe, we have instant
access to this information through
Our global voluntary turnover our global reporting tool.
rate continues to be under
Workforce experience,"
Sustainability-Report-2020-Complete.txt,"Workforce experience,
6%
services, and rewards
,
The more an employee contributes
to 3M’s success, the more success
a source of great pride they create for themselves. We offer
a competitive base pay, and
f or our company.
depending on position, variable
incentive pay linked to company and
We calculate voluntary turnover
individual performance. We also
separately from retirements, company-
offer a wide range of benefits and
initiated turnover, and reductions
discounts designed to help employees
in workforce. Voluntary employee"
Sustainability-Report-2020-Complete.txt,"ranging from requiring
Technology Platforms
100%
and collaborative
our challenges.
culture, our people
apply their talent of new products
to combine our to obtain a
technologies across Sustainability Value
businesses, creating Commitment
unique solutions for
to energy efficiency, to community-
our customers and wide approaches to water management
and to helping our customers reduce
society, all in support their greenhouse gas emissions.
We have also set Sustainability goals
of the greater good.
around building a diverse workforce"
Sustainability-Report-2020-Complete.txt,"rld. we might operate in multiple markets. enter those markets successfully —
or just for fun, it’s the opportunity to
to take our fundamental strengths One of the many things that makes 3M
highlight how the employee brings
and applications almost anywhere a singular company is our commitment
ideas to life at 3M.
in the world. We have sales in nearly to collaboration. There are no silos
all countries, with two-thirds of our here. We collaborate with each other 3M Tech Forum isn’t just spreading
Global capabilities Lithuania Ke Sy ales & Marketing Operations workforce and sales professionals across businesses, across technologies, ideas internally. The group brings in"
Sustainability-Report-2020-Complete.txt,"tion in
employee development 8.5: By 2030, achieve full and productive employment and decent
programs to advance work for all women and men, including for young people and persons
individual and organizational with disabilities, and equal pay for work of equal value.
capabilities.
5.5: Ensure women’s full and effective participation and equal
opportunities for leadership at all levels of decision-making in political,
economic, and public life.
Double the pipeline of
diverse talent in management
to build a diverse workforce."
Sustainability-Report-2020-Complete.txt,"Ensure women’s full and effective participation and equal
opportunities for leadership at all levels of decision-making in political,
economic, and public life.
Double the pipeline of
diverse talent in management
to build a diverse workforce.
10.2: By 2030, empower and promote the social, economic, and
political inclusion of all, irrespective of age, sex, disability, race,
ethnicity, origin, religion, or economic or other status.
3.C: Substantially increase health financing and the recruitment,
development, training, and retention of the health workforce in"
Sustainability-Report-2020-Complete.txt,"environmental, and
102-39 Percentage increase Not applicable, disclosure does not cover the specific
social topics
in annual total impacts that make the topic material. 3M has an
102-22 Composition of the Corporate governance 86 SDG 5, 16 compensation ratio established process to assure our commitment to fair and
highest governance 3M Board of Directors equitable pay. The breakdown to calculate the median
body and its 3M Committee Composition percentage increase does not accurately reflect our
committees 2020 Proxy Statement, page 14–19, 36–42 workforce levels and process at 3M to assure equitable"
Sustainability-Report-2021-Complete.txt,"y, and affordable educated policymakers, researchers,
essential medicines and vaccines for all. and labor inspectors in Indonesia,
the Philippines, and Thailand.
3M contributes to the realization of We also partnered with leading
universal health coverage by providing universities in China to create the
solutions that reduce the risk of first two occupational health majors
infections and by providing resources in the country.
that increase access to care, including:
• Helping to inform science-
• Health care worker and patient based regulatory frameworks."
Sustainability-Report-2021-Complete.txt,"s,
skin protection, and other participating in 220 standards
power of business work to SDGs solutions help protect health care development committees and
to advance SDGs workers and patients against in over 70 occupational health
3M technology is helping to advance the healthcare-associated infections and safety-related professional
In 2020, 3M and the UNGC announced SDGs. Following are examples of how (HAIs). This is especially critical now, associations.
products and initiatives in three very
3M’s sponsorship of SDG Ambition, as we fight the COVID-19 pandemic. • Creating employer and worker"
Sustainability-Report-2021-Complete.txt,"stainability
human rights in our culture. 3M’s approach to managing and assuring human through targeted raw material
Human rights
rights, workplace safety, and well-being within our workplace traceability and supplier
and supply chain is derived from the 3M Code of Conduct. EHS management performance assurance by 2025.
We implement these programs through our global policies,
Suppliers Provide training to five million people
management systems, assessments, audits, training, and metrics 8.7, 8.8
globally on worker and patient safety"
Sustainability-Report-2021-Complete.txt,"mmunities, our strategic investments
of human 3M Impact
include support for basic human needs. Invest cash and products for
diseases, and
food safety For the global health care industry, we take a patient-centered Clean Air Asia education, community, and
approach to innovation and develop reliable, quality products 3MSM Health Care Academy environmental programs by 2025.
and solutions. In 2020, we expanded our skills-based volunteer Provide training to five million people
COVID-19 Innovations –
program. By launching 3M Impact Health Care, we are using our globally on worker and patient safety"
Sustainability-Report-2021-Complete.txt,"company and community. We believe 3M 2020 Global Diversity,
education, and in the power of science, sharing our expertise, and investing in the Equity & Inclusion Report Double the pipeline of diverse talent 4.4, 4.5, 4.c
addressing in management to build a diverse
bright minds of tomorrow.
3M Diversity and Inclusion workforce by 2025.
unemployment
3M’s commitment to education Double the representation of Black/
African American and Hispanic/
Creating partnerships to solve
Latino employees.5,6
the worker shortage 5.5"
Sustainability-Report-2021-Complete.txt,"ty and Inclusion workforce by 2025.
unemployment
3M’s commitment to education Double the representation of Black/
African American and Hispanic/
Creating partnerships to solve
Latino employees.5,6
the worker shortage 5.5
Advance economic equity by creating
3M Impact
five million unique STEM and skilled
Young Scientist Challenge trades learning experiences for
underrepresented individuals by
Science at Home
the end of 2025.7
3M giving and volunteerism 10.2
Provide training to five million people
globally on worker and patient safety"
Sustainability-Report-2021-Complete.txt,"by 2050 1,4 baseline unless otherwise noted.
• Advance economic equity by creating
sites by 2025
• Increase renewable energy to 50% five million unique STEM and skilled
• Drive supply chain sustainability of total electricity use by 2025 and trades learning experiences for
through targeted raw material to 100% by 2050 underrepresented individuals by the
Our goals are
traceability and supplier performance end of 2025 7
assurance by 2025
• Provide training to five million people becoming stronger
• Reduce global water usage by the globally on worker and patient safety"
Sustainability-Report-2021-Complete.txt,"valuate the
1,000 largest public U.S. companies
Human Rights Campaign Foundation’s
The World’s Most Ethical Companies® on issues that matter most to the
2020 Corporate Equality Index is
program, managed by the Ethisphere® American public — like paying a
the national benchmarking tool on
Institute, honors companies that fair wage, upholding human rights
corporate policies and practices
excel in “promoting ethical business across the supply chain, investing in
pertinent to lesbian, gay, bisexual,
standards and practices internally, worker training, acting ethically and"
Sustainability-Report-2021-Complete.txt,"t fair wage, upholding human rights
corporate policies and practices
excel in “promoting ethical business across the supply chain, investing in
pertinent to lesbian, gay, bisexual,
standards and practices internally, worker training, acting ethically and
transgender, and queer (LGBTQ)
enabling managers and employees with integrity, cultivating a diverse
employees. For the ninth straight year,
to make good choices, and shaping and inclusive workplace, protecting
3M earned a perfect score of 100%
future industry standards by worker health and safety, providing"
Sustainability-Report-2021-Complete.txt,"of different countries, systems and controls to prevent contingent workers, and candidates
3M has adopted global expectations human trafficking from taking place for employment must be carried out
regarding the hiring of minors. Even anywhere within our business or in accordance with relevant laws,
if local law permits it, 3M will not hire supply chains. regulations, and ethics, and must
any employee nor engage a contingent be appropriate for the business
These prohibitions apply to 3M and its
worker (an individual provided by a requirements, classification of the"
Sustainability-Report-2021-Complete.txt,"le light.
for details. are established to meet 3M’s more
Periodic program audits evaluate site
protective standards.
performance in managing hazards
during routine use and maintenance of
radiation sources, security of radiation
sources, training of personnel, and
regulatory compliance.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 136
Contractor and Contractors are asked to submit 3M regional and global recordable incident rate
notification to 3M of worker hours"
Sustainability-Report-2021-Complete.txt,"Report | #improvinglives 136
Contractor and Contractors are asked to submit 3M regional and global recordable incident rate
notification to 3M of worker hours
visitor environmental, Per 100 3M employees (200,000 work hours)
and any injuries occurring while
health, and safety performing work in accordance with a
2.0
3M contract. Any contractor incidents
3M requires all visitors, vendors, are reported in the 3M EHS 360 1.8
contingent workers, and contractors data management system, including
1.6
at 3M sites to follow all applicable injuries and contractor worker hours."
Sustainability-Report-2021-Complete.txt,"process, we not only
Building sustainability
meet their expressed needs — we
commitment are often able to identify and address into all new products
unarticulated needs. In both cases, we
Science for
create solutions for them and, at the Since 2019, we require 100% of our
Community goal
Whether it’s technology, same time, innovative growth platforms products entering the new product
manufacturing, global capabilities, for 3M. commercialization process to include Provide training to five million
or our brand, we are committed to a Sustainability Value Commitment people globally on worker and"
Sustainability-Report-2021-Complete.txt,"ewable materials, and
Consumer $5.34B
3M Science drives our business the appropriate reuse of a product.
forward. We use and combine our Also included are products whose
technologies in unique ways across core purpose is helping to solve
the company, creating new products an environmental and/or social Health Care $8.35B
and new lines of business across our concern. Examples include improving
four business groups. air quality, reducing greenhouse
gas emissions, improving patient Safety & $11.8B
Starting in 2019, 100% of our outcomes, and enhancing worker Industrial"
Sustainability-Report-2021-Complete.txt,"grams 117
103-3
402-1 Minimum notice periods regarding operational changes Employee programs 117 SDG 8
GRI 403: Occupational health and safety
403-1 Occupational health and safety management system Environmental, health, and safety management 128 SDG 8
403-2 Hazard identification, risk assessment, and incident Environmental, health, and safety management 128 SDG 8
investigation Corporate Code of Conduct 96
403-3 Occupational health services Environmental, health, and safety management 128 SDG 8
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 128 SDG 8, 16"
Sustainability-Report-2021-Complete.txt,"pational health and safety management system Environmental, health, and safety management 128 SDG 8
403-2 Hazard identification, risk assessment, and incident Environmental, health, and safety management 128 SDG 8
investigation Corporate Code of Conduct 96
403-3 Occupational health services Environmental, health, and safety management 128 SDG 8
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 128 SDG 8, 16
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 128 SDG 8"
Sustainability-Report-2021-Complete.txt,"d identification, risk assessment, and incident Environmental, health, and safety management 128 SDG 8
investigation Corporate Code of Conduct 96
403-3 Occupational health services Environmental, health, and safety management 128 SDG 8
403-4 Worker participation, consultation, and communication on Environmental, health, and safety management 128 SDG 8, 16
occupational health and safety
403-5 Worker training on occupational health and safety Environmental, health, and safety management 128 SDG 8
403-6 Promotion of worker health Environmental, health, and safety management 128 SDG 3"
Sustainability-Report-2021-Complete.txt,"0 Introduction 82 Introduction 177 About report,
our CEO 3 scope, and
Feature stories 9 3M Value Model 41 Corporate Our customers 178
boundaries 201
Message from governance 83
Site spotlights 33 Our Vision 41 Innovation
our CSO 5 GRI and
Enterprise risk 92 management 184
Our Values 41 UNGC index 205
Corporate Our products 194
Our Strategic SASB index 216
Code of Conduct 96
Sustainability
Assurance
Framework 42 Human rights 105
statement 219
Advancing impact 53 Compensation 113
Metric tables 222
Communities 59 Employee"
Sustainability-Report-2021-Complete.txt,"out report,
our CEO 3 scope, and
Feature stories 9 3M Value Model 41 Corporate Our customers 178
boundaries 201
Message from governance 83
Site spotlights 33 Our Vision 41 Innovation
our CSO 5 GRI and
Enterprise risk 92 management 184
Our Values 41 UNGC index 205
Corporate Our products 194
Our Strategic SASB index 216
Code of Conduct 96
Sustainability
Assurance
Framework 42 Human rights 105
statement 219
Advancing impact 53 Compensation 113
Metric tables 222
Communities 59 Employee
programs 117
Employee"
Sustainability-Report-2021-Complete.txt,"uity officer. The new Equity communities,” Bowen says. is set up to drive lasting, systemic
Strategy and Initiatives
& Community organization pulls change so we can truly be proud to
The workstreams in this platform
together the 3M teams leading diversity, be a purpose-driven enterprise.”
include:
equity, and inclusion; 3Mgives; as
well as Bowen’s new social justice See the 3M 2020 Global Diversity,
• STEM & Skilled Trades
strategy group. This structure creates Equity & Inclusion Report and the
synergies and the opportunity to • Community Coalition Employee diversity, equity, and"
Sustainability-Report-2021-Complete.txt,"the packages to these 4K+
• Materials for other 3M sites: organizations free of charge.
Materials used for adhesives in
Scotch™ tapes
liters of surface
disinfectant.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 38
3M site spotlight
The 3M Iwate site Safety first
has expanded nine
The site is focused on growing its
times since it opened
environmental, health, and safety
in 1987 in the city of (EHS) culture; one example is a new
employee program where participants From these activities, the site hopes Community activities"
Sustainability-Report-2021-Complete.txt,", and cost. All
include coating, compounding, • Wearing face masks
employees participated in the LSS
converting, rubber milling, and
activities through various site events. • Enhanced cleaning of
film-manufacturing processes.
high-touch pointsFeature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 39
Introduction 40
3M Value Model 41
Our Vision 41
Our Values 41
Our Strategic
Sustainability
Framework 42
Advancing impact 53
Communities 59
Employee diversity,"
Sustainability-Report-2021-Complete.txt,"ty. Stakeholders included
we seek and rely on both internal and customers, suppliers, NGOs,
external input in order to understand corporate/private sector, academics,
the top social, economic, and consultants, government, media,
environmental global challenges. finance, trade associations, and think
tanks and were representative of 3M’s
Stakeholder engagement
four business groups and all regions
of operations. At the same time,
3M’s stakeholder engagement strategy 3M conducted a similar process
on priority topic areas continues to through an internal online employee"
Sustainability-Report-2021-Complete.txt,"lobe by 2025.
17.16Priority topic & tier Our actions Links to additional information Goals & commitments Related SDG
ytinummoC
rof
ecneicS
Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 49
Human health 3M recognizes the crucial role of science in improving lives, Innovation management Require every new product
including protecting health and safety, and helping solve global challenges. that enters 3M’s new product
Our customers
community 3M promotes a culture of employee health and well-being through commercialization process to have"
Sustainability-Report-2021-Complete.txt,"Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 49
Human health 3M recognizes the crucial role of science in improving lives, Innovation management Require every new product
including protecting health and safety, and helping solve global challenges. that enters 3M’s new product
Our customers
community 3M promotes a culture of employee health and well-being through commercialization process to have
Communities a Sustainability Value Commitment,
health and disease prevention programs, on-site clinical services, employee"
Sustainability-Report-2021-Complete.txt,"globally by year end. We also maximized production of other respond to COVID-19
solutions used in response to COVID-19, including biopharma Mitigating the risk of infectious
filtration, hand sanitizers, and disinfectants. disease spread through
3M offers educational content to help customers deepen their contamination prevention
scientific expertise and improve food safety and quality within
their organizations. 3M’s broad range of food safety testing
solutions helps to protect consumer health.
Workforce At 3M, we recognize the importance of well-trained science, Employee diversity, equity, Invest $50 million to address racial"
Sustainability-Report-2021-Complete.txt,"y, and
• For 3M’s global manufacturing environmental programs by 2025
operations, enhance the quality of
• Maintain or achieve 100% pay
water returned to the environment
equity globally 5,6
by 2030. Our initial focus is on 1 2019 is the baseline measurement year.
state-of-the-art water purification • Donate 300,000 skills-based work 2 Expands our previous commitment, which
technology at the largest U.S. water hours across the globe by 2025 aimed to reduce water use by 10% between
2015 and 2025.
use locations; operational by the • 100% participation in employee"
Sustainability-Report-2021-Complete.txt,"deserve it.
Our people are motivated by it.
Our future will be all the better for it.
We at 3M
have the unique
opportunity
to apply our
passion and
collaborative
skills to help the
world prosper.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 59
Communities
Helping make a difference in the
world through science
Our To assure that our support benefits
the communities being served, 3M
commitment and 3M Foundation assess the impact
of prospective grants and employee"
Sustainability-Report-2021-Complete.txt,"shifted our global
businesses, sites, and employees commitment to focus on COVID-19
worldwide who volunteer and response and doubled down on prior
leverage their skills and experience commitments to equity, diversity, and
to make a difference in the world. inclusion in our community. Science for Community goal 3M continues to invest in the
advancement of science, technology,
Invest cash and products for
3M amplifies social impact by engineering, and mathematics (STEM)
education, community, and
combining 3M employee expertise and business partnerships for social"
Sustainability-Report-2021-Complete.txt,"lobal giving foster sustainable communities and
leading community organizations programs 2015 2025 improve the quality of every life.
goal
committed to equitable outcomes In addition, 3M Foundation serves the
in our community. Governance is In 2020, 3M’s community needs of our local communities through
provided by the 3M Foundation commitment included cash and charitable support of hometown
Board of Directors and Corporate product donations to assist in the needs. Cash, in-kind investments, and
Contributions Committee, which global fight against COVID-19 and employee engagement remain at the"
Sustainability-Report-2021-Complete.txt,"owners,
on longstanding racial inequities communities, and organizations
and made a huge impact on our supporting the people in the
community and our world. In community.
response, 3M strengthened our
focus in the areas of social justice, In addition to investments in
racial equity, and inclusion. organizations and initiatives, 3M
took action to support the rebuild of
We immediately established
marginalized communities impacted
a social justice working group
by civil unrest. In partnership with
comprised of our Employee Resource"
Sustainability-Report-2021-Complete.txt,"ty for employees at 3M to establish scholarships for students
government, nonprofits, and the headquarters, located just outside of attending Historically Black Colleges
education sector. This group brings St. Paul, to increase awareness about and Universities who are pursuing
forward community leader voices and social justice issues in the Twin Cities studies related to social justice
perspectives to advise on plans for and what 3M is doing to close the gap. policies. 3M’s partnership with the
directing our $50 million investment to For each employee who participated, Congressional Black Caucus is one"
Sustainability-Report-2021-Complete.txt,"pandemic.
social justice and racial equity inside
and outside of our company.
Nearly
Our work starts in the Twin Cities,
and the first commitments included: 3K
• $5 million 3M Science. Applied
to Life.™ United Negro College Fund
scholarship and student support
3M employees
program for students in St. Paul
participated, raising
• Expansion of the 3M Manufacturing
and Academic Partnerships (MAP)
initiatives in St. Paul Public Schools $74K
• $1 million annual corporate
investment to social justice
partnerships, led by our Employee"
Sustainability-Report-2021-Complete.txt,"annual 3M Global 3M Foundation seeks to amplify the
Cash In-kind Total Volunteer hours
Volunteer Day, observed in September, philanthropic impact of U.S.-based
was held virtually and focused on employees through the Community Community $36,000,000 $24,600,000 $60,600,000
four key United Nations Sustainable Giving Program. 3M Foundation’s Education $19,900,000 $5,440,000 $25,400,000 194,000
Development Goals (SDGs): SDG 2, program matches up to $1,000 per Environment $1,910,000 $8,160 $1,920,000
Zero Hunger; SDG 4, Quality Education; employee gift plus an added level of"
Sustainability-Report-2021-Complete.txt,"no volunteerism assessed at
honored globally in 2020, representing increasing access to diverse arts
then-current value per hour in alignment with valuation guidance defined by CECP.
the U.S., U.K., Germany, Australia, opportunities, and contributing to
Italy, and Mexico. global humanitarian relief efforts.
A large part of this effort involves When combined with
Big hearts, matched Go-power for NGOs donating excess inventory, leveraging 3M Foundation match,
life-improving products in meaningful
employee donations"
Sustainability-Report-2021-Complete.txt,"involves When combined with
Big hearts, matched Go-power for NGOs donating excess inventory, leveraging 3M Foundation match,
life-improving products in meaningful
employee donations
As part of the 3M Foundation Volunteer 3M worked with the National Association ways to help people who are in need.
totaled more than
Match program, 3M Foundation for the Exchange of Industrial Resources
donates money to eligible nonprofit (NAEIR) to provide needed materials For information on how 3M products
$5.80
organizations when a 3M employee and supplies to a multitude of nonprofit help build sustainable communities,"
Sustainability-Report-2021-Complete.txt,"luding
COVID-19, including launching new
Science for Circular, Science for
products to help protect health
Climate, and Science for Community.
care workers and our communities
Get updates on 3M’s Strategic
and supporting populations
Sustainability Framework.
disproportionately affected by
the pandemic.
3M will focus on
our new goal for
advancing equity
in STEM and
skilled trades.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 69
Employee"
Sustainability-Report-2021-Complete.txt,"creativity, creativity of thinking — helps us relate more to collaborate, agree, disagree, and unique talents, background, and
sparks innovation, and innovation closely to the needs of all 3M respectfully exchange, learn, and create. perspectives valued. A respectful
manifests growth. To become the most customers, suppliers, and channel workplace is free from unlawful
inclusive enterprise we can be, 3M partners around the world. Our Code of Conduct lays out discrimination and harassment, but it
focuses on engaging every employee what it means to be a 3M employee involves more than compliance with"
Sustainability-Report-2021-Complete.txt,"goal: double the representation In 2018, 3M created a new vision for The 3M definition of diverse
of Black/African American and our culture, with Powered by Inclusion representation includes gender, To date, we have improved our global
Hispanic/Latino employees. as a key element. We formed a CEO race/ethnicity, nationality, people Diversity Index by 10.6 points, moving
Our global Diversity Index Inclusion Council to drive change with disabilities, U.S. military from 32.6% to 43.2%, progressing
indicates that we have made and bring the voices of our Employee veterans, and people who identify toward our 2025 goal of 65.2%."
Sustainability-Report-2021-Complete.txt,"ed. in fall 2018, focuses on action planning I stand shoulder to shoulder with
Pay equity progress for diversity, equity, and inclusion everyone who wants to make a
Creating an Equity & initiatives. With 3M Chief Executive difference and commit our expertise,
We seek to assure that employees of Officer Mike Roman as the chair, the experience, and energy to improving
Community organization
different genders are paid the same CEO Inclusion Council consists of our society one community at a time.”
to support lasting change for similar job responsibilities and global senior leaders and Employee"
Sustainability-Report-2021-Complete.txt,"unity organization
different genders are paid the same CEO Inclusion Council consists of our society one community at a time.”
to support lasting change for similar job responsibilities and global senior leaders and Employee
that our practices are creating gender Resource Network (ERN) leaders.
In 2020, 3M created a new Equity & pay equity across the globe. 3M has
Community organization to support our achieved pay equity within 90% of our Since its creation, the CEO Inclusion
“Progress requires
goals and commitments to progress global employee population, and we Council has spearheaded 3M’s"
Sustainability-Report-2021-Complete.txt,"tting to an ambitious social gender wage gap of 1% or less. inclusive leadership feedback tool, Chief Executive Officer
justice agenda. which helps supervisors gather
perspectives and increase their skills
related to inclusion.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 72
Global Inclusion Index 3M Global Inclusion Day 2020 International Women’s Day
In 2017, 3M created the Global More than In March, thousands of 3M employees
Inclusion Index, based on employee celebrated International Women’s Day"
Sustainability-Report-2021-Complete.txt,"advocacy around the world.
We offer benefits for eligible
with direct reports were expected to
Annual Women’s Leadership Summit opposite-sex and same-sex domestic
initiate the tool and use the feedback
partners of employees, as well as their
to guide their development plan going
For the 2020 Twin Cities Women’s eligible dependents. 3M partners with
forward. Advancing our employees’
Leadership Summit, CEO Mike Roman fertility benefits provider Progyny to
capabilities as inclusive leaders is both
spoke with 3M employee and 3M provide a comprehensive and inclusive"
Sustainability-Report-2021-Complete.txt,"M provide a comprehensive and inclusive
an expectation of our culture and our
Women’s Leadership Forum (WLF) fertility benefit for every unique path
approach to performance.
member Lacey Smith about 2020’s to parenthood. The benefit applies to
challenges and how 3M is supporting employees and their partners who are
its employees during the uncertain covered by an eligible 3M medical plan.
times of a global pandemic. The benefit is inclusive of single parents
and LGBTQI+ individuals and couples.
For more information on employee benefits,"
Sustainability-Report-2021-Complete.txt,"expectation of our culture and our
Women’s Leadership Forum (WLF) fertility benefit for every unique path
approach to performance.
member Lacey Smith about 2020’s to parenthood. The benefit applies to
challenges and how 3M is supporting employees and their partners who are
its employees during the uncertain covered by an eligible 3M medical plan.
times of a global pandemic. The benefit is inclusive of single parents
and LGBTQI+ individuals and couples.
For more information on employee benefits,
see the Employee programs section.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 73"
Sustainability-Report-2021-Complete.txt,"at have real-world applicability. Each ERN member development diversity within 3M and beyond to
Mike Roman and Chief Technology
intern has access to 3M’s technological opportunities combat racial, gender, and other
Officer John Banovetz.
platforms, state-of-the-art scientific injustices and inequities.
capabilities, and a world-renowned To address crowdsourced feedback
GEM Consortium
scientific community. from our ERN members around
professional development, 3M’s
The mission of The National GEM
Consortium is to enhance the value of Employee Resource Diversity & Inclusion Team partnered"
Sustainability-Report-2021-Complete.txt,"ty. from our ERN members around
professional development, 3M’s
The mission of The National GEM
Consortium is to enhance the value of Employee Resource Diversity & Inclusion Team partnered
with the Learning & Development
the nation’s human capital by increasing Networks (ERNs)
Team to design a progressive
the participation of underrepresented
foster inclusion development plan that aligns to
groups (Black/African Americans,
the goals of our ERNs, Diversity &
Native Americans, and Hispanic/Latino)
3M’s ERNs are nine employee groups Inclusion Team, and the company."
Sustainability-Report-2021-Complete.txt,"AAN), 3M Pride In total, 435 3M
development, and focused veteran
George Floyd, over 5,000 members of fundraised as a community for The employees translated hiring services to current 3M military
our 3M community came together on Trevor Project — an organization that
veterans, their families, and other
June 4, 2020, for a panel discussion provides confidential support for Black 1.6K+
military members seeking to join 3M.
about the impact of his death and our youth mental health — representing the
next steps to combat systemic inequity intersectionality of the LGBTQI+ and For more information on employee"
Sustainability-Report-2021-Complete.txt,"ed as a community for The employees translated hiring services to current 3M military
our 3M community came together on Trevor Project — an organization that
veterans, their families, and other
June 4, 2020, for a panel discussion provides confidential support for Black 1.6K+
military members seeking to join 3M.
about the impact of his death and our youth mental health — representing the
next steps to combat systemic inequity intersectionality of the LGBTQI+ and For more information on employee
and racism against Black/African Black/African American communities. benefits, see the Employee programs"
Sustainability-Report-2021-Complete.txt,"focused on substantially increasing the
representation of Indigenous peoples by employees
of North America and Pacific Islands
in science, technology, engineering, who are truly
and math (STEM) studies and careers.
making a difference
in the world.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 81
How we
work
Introduction 82
Corporate governance 83
Enterprise risk 92
Corporate Code of Conduct 96
Human rights 105
Compensation 113
Employee programs 117"
Sustainability-Report-2021-Complete.txt,"r people and communities
emerging risks in an ever-changing safe, supporting the fight against
In 2020, we moved world. In 2020, we moved quickly the pandemic, and assuring business
to reassess our risks in light of the continuity. In response to our top
quickly to reassess
COVID-19 pandemic. In response to priority to keep our people and
the pandemic, we identified new risks communities safe, we added a new
our risks in light
and increased our focus on certain enterprise risk highly focused on
of the COVID-19 existing risks. employee health and safety."
Sustainability-Report-2021-Complete.txt,"re being retaliated against,
to evolve. In 2020, the assessment
the investigations team will initiate a
of compliance culture was further
separate investigation or take other
enhanced with focus on “tone in the
action to assure the concerned party
middle” as well as “tone at the top.”
is protected. 3M takes a strong
Middle managers and supervisors
position against retaliation, which
are critical in setting the tone for their
is reflected in the Non-Retaliation teams. Evaluation interviews delve
Policy and within 3M’s Employee"
Sustainability-Report-2021-Complete.txt,"ries of supervisor
Compliance Week
3M employees from around the globe confident to speak up after the event. toolkits. These toolkits, available
sharing their personal thoughts on in 12 languages, contain reference
For the first time, we held a global,
what ethics and compliance means to Communications to materials and case studies to help
virtual Ethics & Compliance Week
from October 12-16, 2020. This year’s them. 3M CEO Mike Roman provided support our employees supervisors effectively address
a message about navigating ethics at employee questions and respond"
Sustainability-Report-2021-Complete.txt,"to respect and promote principles Respect for human rights is deeply
in the 3M Human Resource (HR)
3M employees, contingent workers, and rights in four categories, whether engrained in our culture. Within our
Principles, which respect the dignity
candidates for hire at 3M, anyone or not they have ratified the relevant own business, 3M’s approach to
and worth of all individuals, encourage
doing business with or on our behalf, conventions: freedom of association managing and assuring human rights
the initiative of each employee,"
Sustainability-Report-2021-Complete.txt,"f Conduct and its underlying rights is deeply sites and our supply chain.
principles require compliance with
engrained in our
all applicable laws and also require
respect for internationally recognized
culture.
human rights in all global operations.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 106
A respectful workplace Freedom of association and the right Approximately
to collective bargaining
Our Code of Conduct lays out 25%
what it means to be a 3M employee 3M works diligently to create a"
Sustainability-Report-2021-Complete.txt,"a strong organization or covered
where people treat each other relationship with employees is a key by a labor agreement.
with respect and conduct business responsibility of all company leaders
activities in a manner that protects and is supported by human resources
We are aware that, in some countries,
health, safety, and the environment. representatives. Human resources
collective bargaining rights are
professionals work with employees to
not protected or recognized.
3M’s Respectful Workplace
maintain positive employee relations."
Sustainability-Report-2021-Complete.txt,"r employees may vary are committed to using effective background checks for all suppliers,
based on the laws of different countries, systems and controls to prevent contingent workers, and candidates
3M has adopted global expectations human trafficking from taking place for employment must be carried out
regarding the hiring of minors. Even anywhere within our business or in accordance with relevant laws,
if local law permits it, 3M will not hire supply chains. regulations, and ethics, and must
any employee nor engage a contingent be appropriate for the business"
Sustainability-Report-2021-Complete.txt,"growth. Our
human rights charters. Among them:
and people who interact with 3M Code of Conduct summarizes the
are encouraged to raise questions guidance provided in 3M’s principles,
• United Nations Global Compact
or report misconduct or potential policies, standards, and procedures,
• Universal Declaration of
misconduct and can do so which govern how we do business
Human Rights
anonymously if they wish. everywhere, every day. By living
• European Convention on our Code, we create an inclusive
Employees also receive training on the Human Rights workplace where each employee"
Sustainability-Report-2021-Complete.txt,"duct and can do so which govern how we do business
Human Rights
anonymously if they wish. everywhere, every day. By living
• European Convention on our Code, we create an inclusive
Employees also receive training on the Human Rights workplace where each employee
following mechanisms for reporting contributes to 3M’s vision. Our success
• United Nations Guiding Principles
and resolving concerns: depends on our unwavering integrity.
on Business and Human Rights
These global corporate expectations
• Employee’s management"
Sustainability-Report-2021-Complete.txt,"itions, mergers,
Responsible Supply Chains
• 3M Global Security who, in good faith, asks a question, and divestitures — to identify the
of Minerals from Conflict-Affected
Operations Center reports a concern, or participates in a salient human rights issues applicable
and High-Risk Areas
• 3M Corporate Audit Department company investigation. This position is to our business. We have a grievance
reflected in the Non-Retaliation Policy • Agenda 21 — United Nations mechanism in place, 3MEthics.com,
and within 3M’s Employee Obligations Convention against Corruption which can be used to raise a concern"
Sustainability-Report-2021-Complete.txt,"mpliant with Innovation management section for more information
applicable environmental, health, and
safety regulations, and 3M expectations
* Risks as per human rights policy (safe and healthy workplace, respectful workplace, workplace security, work hours and wages, freedom of association, child labor,
forced labor, human trafficking, or recruitment fees to obtain employment)Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 110
Within our own business 3M employees, including all Assuring human rights If an employee does not have a"
Sustainability-Report-2021-Complete.txt,"ook, which is available inclusive workplace environment that each year based on an assessment of
In addition to offering online
in 25 languages, all 3M employees encourages asking questions internal and external factors to prioritize
training, the Ethics & Compliance
are held to the same high standards. and raising concerns. topics and timing of deployment. Online
Department — in collaboration
If the Code of Conduct sets a higher courses are offered in 22 languages.
with 3M Legal Affairs, local
standard than the law, we are expected For additional details on our employee"
Sustainability-Report-2021-Complete.txt,"to offering online
in 25 languages, all 3M employees encourages asking questions internal and external factors to prioritize
training, the Ethics & Compliance
are held to the same high standards. and raising concerns. topics and timing of deployment. Online
Department — in collaboration
If the Code of Conduct sets a higher courses are offered in 22 languages.
with 3M Legal Affairs, local
standard than the law, we are expected For additional details on our employee
compliance partners, finance,
to follow the Code of Conduct and do processes, see the Employee Training for 3M employees on the"
Sustainability-Report-2021-Complete.txt,"— in collaboration
If the Code of Conduct sets a higher courses are offered in 22 languages.
with 3M Legal Affairs, local
standard than the law, we are expected For additional details on our employee
compliance partners, finance,
to follow the Code of Conduct and do processes, see the Employee Training for 3M employees on the
and human resources — provides
business the 3M Way. 3M’s success diversity, equity, and inclusion and Supplier Responsibility Code processes
frequent, tailored, in-person
depends on each of us doing the right Employee programs sections. and tools includes a self-check exercise"
Sustainability-Report-2021-Complete.txt,"r more information.
law or our Code of Conduct unless also addressed during supplier status
prohibited to do so by local law review meetings.
Employees are assigned courses
• Do not engage in workplace based on their job function, country Others acting on 3M’s behalf
retaliation location, production/non-production
status, and supervisor/non-supervisor Upholding 3M’s Code of Conduct
• Report any known or suspected
and management-level status. Email and 3M Values is the responsibility
retaliation
notifications are sent to the employee’s of everyone acting on 3M’s behalf."
Sustainability-Report-2021-Complete.txt,"upervisor/non-supervisor Upholding 3M’s Code of Conduct
• Report any known or suspected
and management-level status. Email and 3M Values is the responsibility
retaliation
notifications are sent to the employee’s of everyone acting on 3M’s behalf.
• Cooperate with investigations or their supervisor’s 3M email address Multiple processes are in place to
informing them of their course assure 3M’s principles are being upheld
requirements and their timeline for by these parties. A good example is our
completion. New employee courses are approach to health and safety."
Sustainability-Report-2021-Complete.txt,"or outsourced 3M Supplier Responsibility Code and Prevention Standard. our communities with a plan to invest
manufacturers and service providers support our Science for Circular goal to $50 million to advance workforce
who comply with all applicable drive supply chain sustainability through For more information, see the Doing development and STEM education
laws and regulations and meet 3M’s targeted raw material traceability and Business with Government Agencies initiatives. See the Communities
environmental, health, and safety supplier performance assurance. and Contractors Principle. and Employee diversity, equity,"
Sustainability-Report-2021-Complete.txt,"rld prosper.
while addressing
societal issues.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 113
Compensation Goals and elements
of Board of Directors’
compensation
The Nominating and Governance
Equitable pay and benefits for Committee annually reviews the
status of the Board’s compensation in
relation to other large U.S. companies
everyone, everywhere
and is responsible for recommending to
the Board changes in compensation for
non-employee directors. In developing"
Sustainability-Report-2021-Complete.txt,"ble them to save for
aspects of executive compensation retirement or for other reasons, and • Compensation should fairly pay
are reviewed regularly by the they receive certain other benefits, directors for work required in a
3M provides competitive, market-based Compensation Committee, which such as financial planning services. company of 3M’s size and scope.
pay and comprehensive benefits. is comprised solely of independent Approximately 100 executives were • A significant portion of the total
In addition to a professional work non-employee directors. The eligible for these benefits in 2020, compensation should be paid in"
Sustainability-Report-2021-Complete.txt,"ucts a survey
In addition to earning a base salary, 3M provides of director compensation at other
eligible employees are compensated The Compensation Committee
large U.S. companies and provides
for their contributions to the company’s reviews stakeholder proposals relating competitive,
expert advisory support to the
growth, profitability, and other goals. to executive compensation matters
committee on the compensation
This compensation falls into two and recommends to the Board the market-based
of non-employee directors."
Sustainability-Report-2021-Complete.txt,"to your true Our culture provides a framework for
performance and compensation, but
potential: performance,
more broadly exemplifies who we are
compensation, when we are at our best.
and culture
At 3M, we look to embody these
culture elements:
Employees have the opportunity to
grow through challenging work and
are rewarded for their efforts. As
Customer
a pay-for-performance company,
at our core
total compensation is impacted by
our performance process, called
Performance Everyday. Our approach
to performance aligns an employee’s"
Sustainability-Report-2021-Complete.txt,"3M, we look to embody these
culture elements:
Employees have the opportunity to
grow through challenging work and
are rewarded for their efforts. As
Customer
a pay-for-performance company,
at our core
total compensation is impacted by
our performance process, called
Performance Everyday. Our approach
to performance aligns an employee’s
Innovating
development, individual goals, and
boldly
efforts to advance 3M’s culture with
company business objectives and
outcomes, creating a win-win situation
for both the employee and 3M. Powered"
Sustainability-Report-2021-Complete.txt,"and equitable pay. compensation for employees and
use consistent methods to analyze
Our “Unwavering integrity” element drives consistency and transparency
our compensation position against
specifically calls for us to deepen our in compensation practices across
the market. Efforts continued in
dedication to sustainability and to regions. Using common job
2020 to standardize and simplify our
our global communities. Additional descriptions and grades throughout
methodology around market pricing,
information on 3M’s employee the world, this global process"
Sustainability-Report-2021-Complete.txt,"lly calls for us to deepen our in compensation practices across
the market. Efforts continued in
dedication to sustainability and to regions. Using common job
2020 to standardize and simplify our
our global communities. Additional descriptions and grades throughout
methodology around market pricing,
information on 3M’s employee the world, this global process
utilizing data sources from multiple
development and compensation can uses data from multiple surveys
vendors. As we move forward, we will
be found in the Employee programs to benchmark pay levels and map"
Sustainability-Report-2021-Complete.txt,"isions, the relating to recoupment of
the Performance Everyday process. level female accountants) and assess committee will consider the results of incentive-based compensation.
any disparity. We do the same analysis this year’s say-on-pay proposal as well
At 3M, the proportion of total rewards in the U.S. for minorities aggregated as feedback from our stockholders. Additional information on
aligned with variable (incentive) pay as a group versus non-minorities. 3M Total Rewards can be found in
increases with job grade and reflects the Employee programs section."
Sustainability-Report-2021-Complete.txt,"lts of incentive-based compensation.
any disparity. We do the same analysis this year’s say-on-pay proposal as well
At 3M, the proportion of total rewards in the U.S. for minorities aggregated as feedback from our stockholders. Additional information on
aligned with variable (incentive) pay as a group versus non-minorities. 3M Total Rewards can be found in
increases with job grade and reflects the Employee programs section.
the job grade’s influence on both 3M has achieved pay equity within 90%
short- and long-term results. Eligibility of our global employee population, and"
Sustainability-Report-2021-Complete.txt,"ing
both the job grade’s ability to national average raw pay gap data
influence the period being measured between men and women to 3M’s
and market competitiveness for these compensation data — showed our raw
types of compensation. We have used pay differences are below external
the same annual salary adjustment benchmarks. Fourteen of the 17 largest
process for nine years, designed to countries analyzed show an adjusted
drive toward an equitable pay result. gender wage gap of 1% or less. We are
If an employee’s pay is at the low pleased to share we have achieved"
Sustainability-Report-2021-Complete.txt,"will continue to pay employees
competitively and review options
that align incentive pay with business
results, both financial and non-financial.
We will continue to adhere to
our principles of competitive pay,
equitable pay, transparency, and
pay for performance and will
continue to follow our established
compensation principles.
We will continue
to pay employees
competitively.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 117
Employee"
Sustainability-Report-2021-Complete.txt,"make a positive impact on
discounts designed to help them live
networking, collaboration, diversity, company — and can collaborate with people’s lives. In today’s fast-moving
their best lives. We also provide tools,
and inclusion. We focus on the other curious, creative minds wherever business environment, it’s more
opportunities, and support for people
quality and the impact of professional they go. For more information, see important than ever to anticipate and
who want to grow their careers.
development and career growth. the Employee diversity, equity, and exceed the needs of our customers,"
Sustainability-Report-2021-Complete.txt,"month Growth
philosophy focus on experiential and aligned to directly support Mindset campaign in 2020, reaching
The professional growth of our people learning and skill-building rather our organizational priorities, over 21,000 learners and generating
is essential to the growth of our than classroom-style training. including the 3M culture elements, over 49,000 views across several key
business. In 2020, we provided The number of training hours and company-defined functional skills, resources.
the training cost per employee are LSS, sustainability, and other relevant"
Sustainability-Report-2021-Complete.txt,"uman content and experiences. Develop U Employees create or update
capital performance. Instead, when provides access to tens of thousands development plans that include
assessing our development programs, of unique, just-in-time learning activities meant to improve individual
we focus on indicators that align resources in 13 core languages, skills and further career development.
hours of training employees’ results to the company’s allowing 3M’s global workforce to Employees can use additional
and development success. Leadership and employee engage in employee development. skill-mapping tools in collaboration with"
Sustainability-Report-2021-Complete.txt,"ns of thousands development plans that include
assessing our development programs, of unique, just-in-time learning activities meant to improve individual
we focus on indicators that align resources in 13 core languages, skills and further career development.
hours of training employees’ results to the company’s allowing 3M’s global workforce to Employees can use additional
and development success. Leadership and employee engage in employee development. skill-mapping tools in collaboration with
engagement, employee retention Beyond Develop U, 3M provides their supervisors to identify long-term"
Sustainability-Report-2021-Complete.txt,"ite. We define mentoring as a
Employees have the freedom to create 64% unique relationship in which a mentor
of learning is done meaningful development plans, identify (a more experienced person) helps a
on the job goals, and take steps to achieve them. mentee (a less experienced person)
3M and supervisors provide the tools with their development in a particular
20% to help them achieve those goals. of our global area. Further information can be
found at Mentorships at 3M. 3M’s
workforce engage
Employee development internal social networking website lets"
Sustainability-Report-2021-Complete.txt,"e the tools with their development in a particular
20% to help them achieve those goals. of our global area. Further information can be
found at Mentorships at 3M. 3M’s
workforce engage
Employee development internal social networking website lets
employees start new topic groups,
in self-directed training
comes through other Our goal is to have 100% of employees join groups, and engage with others
via online platforms
employees engaging in development activities. on specific topics to help them
With our global online employee collaborate and learn."
Sustainability-Report-2021-Complete.txt,"gh crowdsourcing,
is key to providing a consistent a change. We also work with teams Everyday process.
benchmarking, internal interviews,
development experience for all leaders to help them stay close to changing
focus groups, and our culture elements.
of 3M while still allowing for needed stakeholder expectations. • Performance goals, linked to
Performance Everyday empowers
localization. higher-level organizational goals,
employees to think about performance
are set jointly between individuals
All-employee development beyond mid-year and year-end through and leaders."
Sustainability-Report-2021-Complete.txt,"tations and
development offerings target areas desired behaviors.
of strategic importance, including the To drive 3M’s successes, we incentivize • Feedback on progress toward these
development of a growth mindset, our employees to excel. Our process goals is provided regularly — at a
agility, innovation, and customer includes two components: measurable minimum once a month, and formally,
focus. Delivery of content is available targets to execute our strategies, once a year — and supervisors are
face-to-face in experiential workshops, agreed upon by the employee and their taught and encouraged to provide"
Sustainability-Report-2021-Complete.txt,"their supervisors received tasks to
support and strengthen our culture and
complete the year-end process in
management to achieve sustainable growth. 3M has
the performance system.
long prioritized taking a well-rounded
bring employees
view of an individual’s performance,
assuring that employees are treated in
to the center and
a fair and consistent manner.
simplify the process.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 121
Learning from listening Global employee We calculate voluntary turnover"
Sustainability-Report-2021-Complete.txt,",
assuring that employees are treated in
to the center and
a fair and consistent manner.
simplify the process.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 121
Learning from listening Global employee We calculate voluntary turnover
separately from retirements,
sustainability survey
For more than 50 years, 3M has company-initiated turnover, and
been conducting surveys to solicit and engagement reductions in workforce. Voluntary
employee observations, attitudes, employee turnover is defined as"
Sustainability-Report-2021-Complete.txt,"and consistent manner.
simplify the process.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 121
Learning from listening Global employee We calculate voluntary turnover
separately from retirements,
sustainability survey
For more than 50 years, 3M has company-initiated turnover, and
been conducting surveys to solicit and engagement reductions in workforce. Voluntary
employee observations, attitudes, employee turnover is defined as
and opinions. In 2020, 3M re-imagined In 2020, 3M conducted an employee turnover due to employee-initiated"
Sustainability-Report-2021-Complete.txt,"luntary turnover
separately from retirements,
sustainability survey
For more than 50 years, 3M has company-initiated turnover, and
been conducting surveys to solicit and engagement reductions in workforce. Voluntary
employee observations, attitudes, employee turnover is defined as
and opinions. In 2020, 3M re-imagined In 2020, 3M conducted an employee turnover due to employee-initiated
our primary enterprise listening sustainability survey of all permanent, reasons (e.g., returning to school or
strategy to move to an all-employee non-production employees globally. going to another job in a different"
Sustainability-Report-2021-Complete.txt,"different
survey, known as the 3M Census. The survey was conducted prior to the company).
This survey was deployed to all 3M COVID-19 outbreak.
Total turnover includes voluntary
FTE employees either in electronic or
We learned in the survey that our turnover and all other forms of
paper format. The 3M Census covers
employees wanted to know more turnover (e.g., termination as a result
the entire globe and provides specific
about how they can bring sustainability of restructuring, termination for
and relevant feedback to major units We identified key drivers of employee"
Sustainability-Report-2021-Complete.txt,"ic or
We learned in the survey that our turnover and all other forms of
paper format. The 3M Census covers
employees wanted to know more turnover (e.g., termination as a result
the entire globe and provides specific
about how they can bring sustainability of restructuring, termination for
and relevant feedback to major units We identified key drivers of employee
into their work and their everyday poor performance, and retirements).
within the company (e.g., business engagement and developed and
lives. In the months that followed, Our total employee turnover rate"
Sustainability-Report-2021-Complete.txt,"3M employees
to complete the 3M Census, and in and update it as needed to assure
(NEEF) to create a three-month-long during the calendar year, excluding
2020, our response rate was 70%. alignment with company strategy
engagement campaign focused on foreign service employees and
and major initiatives.
The 3M Census approach provides Science for Circular, Science for 3M temporary employees.
a holistic look across the enterprise Outside of the 3M Census process, Climate, and Science for Community.
under our global organization model. we also deploy other relevant employee The campaign combined education with Temporary employees are 3M"
Sustainability-Report-2021-Complete.txt,"Outside of the 3M Census process, Climate, and Science for Community.
under our global organization model. we also deploy other relevant employee The campaign combined education with Temporary employees are 3M
This serves as a baseline from which listening surveys, often focusing actions employees can take to make employees hired temporarily with intent
we can regularly assess the state on major transformation initiatives, an impact on the environment and to be employed short-term. They do not
of employee engagement and other such as advancing our company improve their lives and communities. include contingent workers."
Sustainability-Report-2021-Complete.txt,"oyees are 3M
This serves as a baseline from which listening surveys, often focusing actions employees can take to make employees hired temporarily with intent
we can regularly assess the state on major transformation initiatives, an impact on the environment and to be employed short-term. They do not
of employee engagement and other such as advancing our company improve their lives and communities. include contingent workers.
workplace factors critical to high culture or reinventing performance
Employee staying power 3M follows all applicable local laws"
Sustainability-Report-2021-Complete.txt,"ur surveys support
— a source of great pride
accountability checks and specific strategy and business objectives
tools to act on the results. directed at supporting sustainable for our company.
corporate success through our
employees’ actions on the job.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 122
Highly competitive pay, Parental leave
rewards, and services
Our parental leave policy helps
employees be their best selves at
The more an employee contributes"
Sustainability-Report-2021-Complete.txt,"ee contributes
home and at work. All U.S. salaried
to 3M’s success, the more success
mothers and fathers of newborn or
they create for themselves. We offer a
newly adopted children are eligible
competitive base pay and, depending
for up to 20 weeks (10 weeks paid and
on position, variable incentive pay linked
10 weeks unpaid) of parental leave.
to company and individual performance.
In 2020, 1,209 U.S. eligible employees
We also offer a wide range of benefits
participated, including 382 females
and discounts designed to help U.S. employee parental leave"
Sustainability-Report-2021-Complete.txt,"st. For more
Usage of parental leave
details, see the Compensation section
U.S. military leave
and Working at 3M: Pay.
In 2019: In 2020:
3M strives to be the premier
Rewarding employees
employer for the military community,
1,119 1,209
for their efforts with paid leave benefits that reflect
our commitment to veterans. 3M
Medical, dental, and vision plan offers up to four weeks of paid
total employees total employees
options; savings and retirement plans; military leave for military training each
a 3M employee stock purchase plan; calendar year to support eligible 3M"
Sustainability-Report-2021-Complete.txt,"ployer for the military community,
1,119 1,209
for their efforts with paid leave benefits that reflect
our commitment to veterans. 3M
Medical, dental, and vision plan offers up to four weeks of paid
total employees total employees
options; savings and retirement plans; military leave for military training each
a 3M employee stock purchase plan; calendar year to support eligible 3M
and many other resources can enhance employees in the U.S. National Guard
322 female employees 382 female employees
a 3M employee’s life, both physically or Reserve units. Eligible employees"
Sustainability-Report-2021-Complete.txt,"nts. As
make individual arrangements for a
we adapt in the wake of the COVID-19
flexible work practice that maximizes 80,000
pandemic, we have leveraged our
professional and personal productivity.
recent experiences working remotely
to refresh and deepen FlexAbility.
FlexAbility puts into practice the 60,000
FlexAbility 2.0 is the first step in
concept that work life and personal
life can coexist. A FlexAbility plan can our journey toward a new normal Global
for 3M. Fortified by our culture, it
put the power in the employee’s hands 40,000 Asia Pacific"
Sustainability-Report-2021-Complete.txt,"0 Asia Pacific
creates new models for innovation and
to make choices that benefit them,
Europe,
their work, their team, their friends collaboration — with our customers Middle East,
and family, and 3M. and each other — and prepares 3M 20,000 Africa
for the future of work. Latin America
United States,
At 3M, we recognize that being able to 0 Canada
respond to changing circumstances or 2016 2017 2018 2019 2020
As we adapt expectations is necessary for winning
in business and maintaining a healthy
in the wake of work-life balance. FlexAbility is not a Our footprint The employee metrics in the charts"
Sustainability-Report-2021-Complete.txt,"rk, their team, their friends collaboration — with our customers Middle East,
and family, and 3M. and each other — and prepares 3M 20,000 Africa
for the future of work. Latin America
United States,
At 3M, we recognize that being able to 0 Canada
respond to changing circumstances or 2016 2017 2018 2019 2020
As we adapt expectations is necessary for winning
in business and maintaining a healthy
in the wake of work-life balance. FlexAbility is not a Our footprint The employee metrics in the charts
one-size-fits-all program — it can be are reflective of employee headcount"
Sustainability-Report-2021-Complete.txt,", and 3M. and each other — and prepares 3M 20,000 Africa
for the future of work. Latin America
United States,
At 3M, we recognize that being able to 0 Canada
respond to changing circumstances or 2016 2017 2018 2019 2020
As we adapt expectations is necessary for winning
in business and maintaining a healthy
in the wake of work-life balance. FlexAbility is not a Our footprint The employee metrics in the charts
one-size-fits-all program — it can be are reflective of employee headcount
the COVID-19
customized based on role and personal Data related to employee metrics has as of December 31, 2020. This includes"
Sustainability-Report-2021-Complete.txt,"me
FlexAbility can be used to create
have leveraged our in these charts have been calculated equivalent (FTE) employees. Due to
focused work time, improve
without any assumptions. Additional acquisition integration schedules
recent experiences collaboration, avoid inclement weather,
information on data management can factored into 3M’s human capital
reduce commuting time, increase
be found in the About report section. management system, detailed
working remotely productivity, enhance inclusion,
employee information below may"
Sustainability-Report-2021-Complete.txt,"harts have been calculated equivalent (FTE) employees. Due to
focused work time, improve
without any assumptions. Additional acquisition integration schedules
recent experiences collaboration, avoid inclement weather,
information on data management can factored into 3M’s human capital
reduce commuting time, increase
be found in the About report section. management system, detailed
working remotely productivity, enhance inclusion,
employee information below may
accommodate time zone differences,
to refresh and differ from employee totals in 3M"
Sustainability-Report-2021-Complete.txt,"t system, detailed
working remotely productivity, enhance inclusion,
employee information below may
accommodate time zone differences,
to refresh and differ from employee totals in 3M
make time for family needs, maintain
financial reports.
deepen FlexAbility. a healthy lifestyle, participate in
volunteer activities, and promote agility.
For more details, visit FlexAbility at 3M.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 124
3M regional and global employee age distribution 3M global contingent employees by region"
Sustainability-Report-2021-Complete.txt,"distribution 3M global contingent employees by region
Full- and part-time, percentage of total Permanent and *temporary employment total
100 12,000
90
10,000
80
70
8,000
60
50 6,000 Global
Generation Z
40 (>1994) Asia Pacific
30 Generation Y 4,000 Europe,
(1982-1994)
Middle East,
20 Africa
Generation X
(1961-1981) 2,000 Latin America
10
Baby Boomers United States,
0 (1943-1960) 0 Canada
Asia Europe, Latin United States, Global
Pacific Middle East, America Canada 2016 2017 2018 2019 2020
Africa
*Contingent hourly or daily workers only, see GRI 102-8 and employee contract."
Sustainability-Report-2021-Complete.txt,"centage of total Permanent and *temporary employment total
100 12,000
90
10,000
80
70
8,000
60
50 6,000 Global
Generation Z
40 (>1994) Asia Pacific
30 Generation Y 4,000 Europe,
(1982-1994)
Middle East,
20 Africa
Generation X
(1961-1981) 2,000 Latin America
10
Baby Boomers United States,
0 (1943-1960) 0 Canada
Asia Europe, Latin United States, Global
Pacific Middle East, America Canada 2016 2017 2018 2019 2020
Africa
*Contingent hourly or daily workers only, see GRI 102-8 and employee contract.
3M regional and global employee hires"
Sustainability-Report-2021-Complete.txt,"ary employment total
100 12,000
90
10,000
80
70
8,000
60
50 6,000 Global
Generation Z
40 (>1994) Asia Pacific
30 Generation Y 4,000 Europe,
(1982-1994)
Middle East,
20 Africa
Generation X
(1961-1981) 2,000 Latin America
10
Baby Boomers United States,
0 (1943-1960) 0 Canada
Asia Europe, Latin United States, Global
Pacific Middle East, America Canada 2016 2017 2018 2019 2020
Africa
*Contingent hourly or daily workers only, see GRI 102-8 and employee contract.
3M regional and global employee hires
3M global new employee hires by region"
Sustainability-Report-2021-Complete.txt,"10
5
0
2016 2017 2018 2019 2020
Values represent the percentage of management positions held by women.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 127
Looking
forward
In 2021, we plan to expand and
modernize our learning ecosystem in
order to improve the learner experience
and drive deeper engagement to foster
a culture of continuous learning. As
part of these efforts, we will create a
personalized and centralized experience,
displaying an employee’s required"
Sustainability-Report-2021-Complete.txt,"ories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 127
Looking
forward
In 2021, we plan to expand and
modernize our learning ecosystem in
order to improve the learner experience
and drive deeper engagement to foster
a culture of continuous learning. As
part of these efforts, we will create a
personalized and centralized experience,
displaying an employee’s required
training and recommended learning in
a single location. This will advance our
work toward employee development."
Sustainability-Report-2021-Complete.txt,"personalized and centralized experience,
displaying an employee’s required
training and recommended learning in
a single location. This will advance our
work toward employee development.
As we build 3M for the future,
strengthening our culture is a top priority.
At its core, culture is how we do things
at 3M, and it belongs to all of us equally.
As change occurs, we are engaging our
employees by continually broadening
our listening strategies. We will continue
to refine our performance approach
to improve the employee experience."
Sustainability-Report-2021-Complete.txt,"nators/occupational health
assessments, we can identify sensitive nurses, and public health authorities
biodiverse areas that are on or near around the world — such as the
3M properties. The environmental site U.S. Centers for Disease Control
assessments include a site visit and a and Prevention (CDC) and the World
search of public databases to identify Health Organization (WHO) — to
these areas, such as rivers, creeks, continuously evaluate and reinforce
and wetlands. safe operating practices.
Employee safety and Active monitoring of the COVID-19"
Sustainability-Report-2021-Complete.txt,"ar around the world — such as the
3M properties. The environmental site U.S. Centers for Disease Control
assessments include a site visit and a and Prevention (CDC) and the World
search of public databases to identify Health Organization (WHO) — to
these areas, such as rivers, creeks, continuously evaluate and reinforce
and wetlands. safe operating practices.
Employee safety and Active monitoring of the COVID-19
pandemic has allowed 3M to adapt
health during the
our protective measures globally
COVID-19 pandemic for employee health and safety by"
Sustainability-Report-2021-Complete.txt,"develop
of our employees and acknowledge
risk management activities within 3M.
the need to ensure business continuity
and support our customers.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 134
EHS Cultural During the COVID-19 pandemic, Knowing that the global pandemic has
3M restricted international travel been taking a toll on people’s mental
Excellence Program
that was not deemed business health, 3M’s disAbility Network and
critical. Employees who did travel Employee Assistance Program (EAP)"
Sustainability-Report-2021-Complete.txt,"nce create a framework for a about these issues, especially at work,
of confirmed COVID-19 cases. These
collection of programs, resources, helps normalize the conversation and
actions helped us quickly respond to
and services designed to help hopefully will start to eliminate the stigma
the COVID-19 pandemic to assure
employees and their families achieve associated with mental health issues.
business continuity while maintaining
their well-being goals. Our 2020
our highest priority — the safety
programs and services vary globally. Additional information on employee"
Sustainability-Report-2021-Complete.txt,"-19 cases. These
collection of programs, resources, helps normalize the conversation and
actions helped us quickly respond to
and services designed to help hopefully will start to eliminate the stigma
the COVID-19 pandemic to assure
employees and their families achieve associated with mental health issues.
business continuity while maintaining
their well-being goals. Our 2020
our highest priority — the safety
programs and services vary globally. Additional information on employee
of our people.
Examples include free flu shots, programs can be found in the Employee"
Sustainability-Report-2021-Complete.txt,"health,
and medical care (limited availability
can understand and reduce risks,
follow safety practices, and be due to global pandemic), telehealth, and safety (EHS)
adoption and foster care support,
comfortable raising personal concerns incident management
and the FlexAbility program, which
to help address concerning behaviors.
encourages work life and personal
Since 2010, all 3M sites globally are
International life to coexist. A FlexAbility plan puts
required to internally report actual and
the power in the employee’s hands to"
Sustainability-Report-2021-Complete.txt,"were protect 3M employees, our customers,
14.3% workplace. We screen for early signs and the public. This includes the use
eliminated, exceeding
of occupational illnesses to protect
of radiation in both manufacturing and
our internal target.
workers from further exposure, and we
R&D — ionizing radiation sources
provide medical management. We look
such as radioactive materials and
Online ergonomic training is also for trends in the health data of working
X-ray emitting devices; and non-ionizing
available 24/7 to any employee who populations to assure that potential"
Sustainability-Report-2021-Complete.txt,"tors data management system, including
1.6
at 3M sites to follow all applicable injuries and contractor worker hours.
3M workplace environmental, 1.4
health, and safety requirements. New global
1.2
For example, contractors must
Environmental, Health,
complete a pre-qualification process 1.0 Global
before they may perform work on and Safety and Product
0.8 Asia Pacific
3M premises. This process includes, Stewardship (EHS&PS)
among other things, reviewing the 0.6 Europe,
organization Middle East,
contractor’s employee injury/illness Africa"
Sustainability-Report-2021-Complete.txt,"ctor worker hours.
3M workplace environmental, 1.4
health, and safety requirements. New global
1.2
For example, contractors must
Environmental, Health,
complete a pre-qualification process 1.0 Global
before they may perform work on and Safety and Product
0.8 Asia Pacific
3M premises. This process includes, Stewardship (EHS&PS)
among other things, reviewing the 0.6 Europe,
organization Middle East,
contractor’s employee injury/illness Africa
0.4
rates, experience modification rates Latin America
(EMR), employee training records, and To align the protection of our 0.2"
Sustainability-Report-2021-Complete.txt,"ated representative is on-site will increase collaboration and best site staff to address and replicate conferences, and other professional
and therefore available for contractor practice sharing across areas and best practices, solve problems, and development opportunities.
meetings and safety reviews whenever manufacturing operations. The new drive worthy EHS initiatives to the
In 2020, 100% of 3M manufacturing
necessary and appropriate. organization will be led by the vice operational level.
sites worldwide had active employee"
Sustainability-Report-2021-Complete.txt,"rotect
intellectual property to facilitate
technology breakthroughs
3M is actively
• Include provisions for carbon
engaged in public emissions trading and/or alternative
policy development investment and compliance Photo credit: ©FAO/Alessia Pierdomenico
programs
to address climate
3M is actively engaged in public Corporate and local plans consider
• Provide full credit for early
change concerns. reductions in GHG emissions policy development to address the risk of natural disasters, infectious
climate change concerns. In addition, disease, employee safety, protection"
Sustainability-Report-2021-Complete.txt,"loyees conducted energy
3M’s headquarters in St. Paul, projects like utilized excess steam.
Superior Energy Performance 50001™ walk-throughs, held energy
Minnesota, is powered by 100% For example, in 2020, our Juarez,
(SEP 50001™) certification program help treasure hunts, collaborated with
renewable electricity. In 2019, Mexico site installed a 500kw system
3M sites become attuned to recognizing the corporate team or external
3M became the largest company in with over 1,500 solar panels, which
and seizing opportunities to increase partners, and integrated employee"
Sustainability-Report-2021-Complete.txt,"bs. In 2019, we achieved contracts for 3M Canada’s head office
framework of “plan-do-check-act” for delivered
our 2025 goal by surpassing 25% in London, Ontario, and for all of
the management of energy in on-site
renewable electricity. As part of 3M’s operations in Poland, including
operations, our sites have seen savings $17M
our strategic focus on empowering a superhub in Wroclaw, one of 3M’s
in energy costs and consumption,
Science for Climate, we increased biggest global production centers;
expansion of employee engagement,"
Sustainability-Report-2021-Complete.txt,"ntries/regions Manufacturi ng & converting Laboratory & appl ication Sales and m arketing operations
Sales in 200 countries/regions Manufacint u33r ic nogu n&tr iceso/nrevgeiorntisng Leangbinoereartinogr iyn &51 acpoupnl tircieast/iroegni ons in 69 countSriaesl/erse gainonds m arketing operations
in 33 countries/regions engineering in 51 countries/regions in 69 countries/regionsFeature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 189
Unique and True global capabilities require more Leveraging team Almost every technical employee at 3M"
Sustainability-Report-2021-Complete.txt,"p.
pipeline. The collaboration takes
global capabilities, and brand — is what
3M is also about our manufacturing place at an annual global event, spring
truly creates the value of 3M.
capabilities. We’re differentiated symposium, recognition programs, and
and have a competitive advantage many chapter events held throughout
through in-house 3M manufacturing the year. Global Product Stewardship, Almost every
site ownership that also uses 3M Fundamental strengths Green Chemistry, and Climate are a
intellectual property. One-fourth few of the chapters within Tech Forum. technical employee"
Sustainability-Report-2021-Complete.txt,"s data are provided to
and regulatory compliance, including developments. allow for annual comparisons.
data collection systems at applicable
The term “material” used in this Report data collection
sites that track and collect EHS
report refers to the “material topic”
data through the corporate-wide
definition of the Global Reporting Due to the size and geographical extent
EHS reporting systems; (4) social
Initiative. It is used to refer to relevant of our operations, it is, at times, difficult
data as relates to employee metrics,"
Sustainability-Report-2021-Complete.txt,"ms (e.g., organizational structure. As a result, (contributing neither toward total This increase does not impact previously
Environmental Targets Database, 3M sets environmental targets that are waste nor toward good output). reported Scope 3 Category 2 values, and
EHS 360, etc.). normalized or indexed to production the 2019 Scope 3 Category 2 value is
• Social data. The data related to (tons emitted or net sales) to assure 3M’s 2025 Sustainability Goals utilize comparable with previous years.
employee metrics, social practices, the environmental progress we report 2015 as the base year. Starting in 2016,"
Sustainability-Report-2021-Complete.txt,"brands, products, Our products 194
and services Annual Report on Form 10-K, pages 4-5
102-3 Location of headquarters 3M Company
3M Center
St. Paul, Minnesota, 55144-1000, United States
102-4 Location of operations Operations in 70-plus countries
Innovation management 184
Names of countries, 3M.com
Annual Report on Form 10-K, page 15
102-5 Ownership and legal form Annual Report on Form 10-K, page 1
102-6 Markets served Our customers 178
Our products 194
3M.com
Annual Report on Form 10-K, page 5
102-7 Scale of the organization Employee programs 117"
Sustainability-Report-2021-Complete.txt,"s 3M Company
3M Center
St. Paul, Minnesota, 55144-1000, United States
102-4 Location of operations Operations in 70-plus countries
Innovation management 184
Names of countries, 3M.com
Annual Report on Form 10-K, page 15
102-5 Ownership and legal form Annual Report on Form 10-K, page 1
102-6 Markets served Our customers 178
Our products 194
3M.com
Annual Report on Form 10-K, page 5
102-7 Scale of the organization Employee programs 117
Metric tables: 3M historical metrics; social performance, 222
employee and financial performance"
Sustainability-Report-2021-Complete.txt,"ocation of operations Operations in 70-plus countries
Innovation management 184
Names of countries, 3M.com
Annual Report on Form 10-K, page 15
102-5 Ownership and legal form Annual Report on Form 10-K, page 1
102-6 Markets served Our customers 178
Our products 194
3M.com
Annual Report on Form 10-K, page 5
102-7 Scale of the organization Employee programs 117
Metric tables: 3M historical metrics; social performance, 222
employee and financial performance
Annual Report on Form 10-K, pages 4-5, 15
102-8 Information on employees Employee programs 117 UNGC Principle 6"
Sustainability-Report-2021-Complete.txt,"45-47, 52-101
102-38 Annual total compensation ratio 2021 Proxy Statement, page 101
102-39 Percentage increase in annual total compensation ratio Not applicable. Disclosure does not cover the specific impacts that make
the topic material. 3M has an established process to assure our commitment
to fair and equitable pay. The breakdown to calculate the median
percentage increase does not accurately reflect our workforce levels
and process at 3M to assure equitable remuneration. Additional details
on our process can be found in Compensation and Employee Programs;"
Sustainability-Report-2021-Complete.txt,"22 SDG 16
environmental management system
Annual Report on Form 10-K, pages 111-129
GRI 308: Supplier environmental assessment
103-1 to Management approach disclosures Suppliers 166
103-3 Supplier Responsibility Code
308-1 New suppliers that were screened using environmental Suppliers 166 UNGC Principle 8
criteria Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 166 UNGC Principle 8
actions taken Supplier Responsibility Code
GRI 401: Employment
103-1 to Management approach disclosures Employee programs 117"
Sustainability-Report-2021-Complete.txt,"pages 111-129
GRI 308: Supplier environmental assessment
103-1 to Management approach disclosures Suppliers 166
103-3 Supplier Responsibility Code
308-1 New suppliers that were screened using environmental Suppliers 166 UNGC Principle 8
criteria Supplier Responsibility Code
308-2 Negative environmental impacts in the supply chain and Suppliers 166 UNGC Principle 8
actions taken Supplier Responsibility Code
GRI 401: Employment
103-1 to Management approach disclosures Employee programs 117
103-3
401-1 New employee hires and employee turnover Employee programs 117 UNGC Principle 6"
Sustainability-Report-2021-Complete.txt,"ams 117
103-3
401-1 New employee hires and employee turnover Employee programs 117 UNGC Principle 6
Confidentiality constraints. We can provide total turnover rate of 10.4% SDG 5, 8, 10
but are not able to provide breakdown by age group, gender, and region.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 212
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 401: Employment (Cont.)
401-2 Benefits provided to full-time employees that are not Employee programs 117 SDG 3, 5, 8"
Sustainability-Report-2021-Complete.txt,"vide total turnover rate of 10.4% SDG 5, 8, 10
but are not able to provide breakdown by age group, gender, and region.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 212
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 401: Employment (Cont.)
401-2 Benefits provided to full-time employees that are not Employee programs 117 SDG 3, 5, 8
provided to temporary or part-time employees
401-3 Parental leave Employee programs 117 UNGC Principle 6"
Sustainability-Report-2021-Complete.txt,", and region.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 212
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 401: Employment (Cont.)
401-2 Benefits provided to full-time employees that are not Employee programs 117 SDG 3, 5, 8
provided to temporary or part-time employees
401-3 Parental leave Employee programs 117 UNGC Principle 6
SDG 5, 8
GRI 402: Labor/management relations
103-1 to Management approach disclosures Employee programs 117"
Sustainability-Report-2021-Complete.txt,"out report 3M 2021 Sustainability Report | #improvinglives 212
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 401: Employment (Cont.)
401-2 Benefits provided to full-time employees that are not Employee programs 117 SDG 3, 5, 8
provided to temporary or part-time employees
401-3 Parental leave Employee programs 117 UNGC Principle 6
SDG 5, 8
GRI 402: Labor/management relations
103-1 to Management approach disclosures Employee programs 117
103-3
402-1 Minimum notice periods regarding operational changes Employee programs 117 SDG 8"
Sustainability-Report-2021-Complete.txt,"y
403-5 Worker training on occupational health and safety Environmental, health, and safety management 128 SDG 8
403-6 Promotion of worker health Environmental, health, and safety management 128 SDG 3
403-7 Prevention and mitigation of occupational health and safety Environmental, health, and safety management 128
impacts directly linked by business relationships Innovation management 184
403-8 Workers covered by an occupational health and safety Environmental, health, and safety management 128
management system Employee programs 117"
Sustainability-Report-2021-Complete.txt,"by an occupational health and safety Environmental, health, and safety management 128
management system Employee programs 117
403-9 Work-related injuries Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
403-10 Work-related ill health Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
GRI 404: Training and education
103-1 to Management approach disclosures Employee programs 117"
Sustainability-Report-2021-Complete.txt,"ty management 128
management system Employee programs 117
403-9 Work-related injuries Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
403-10 Work-related ill health Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
GRI 404: Training and education
103-1 to Management approach disclosures Employee programs 117
103-3
404-1 Average hours of training per year per employee Employee programs 117 UNGC Principle 6"
Sustainability-Report-2021-Complete.txt,"and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
403-10 Work-related ill health Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
GRI 404: Training and education
103-1 to Management approach disclosures Employee programs 117
103-3
404-1 Average hours of training per year per employee Employee programs 117 UNGC Principle 6
SDG 4, 5, 8, 10
404-2 Programs for upgrading employee skills and transition Employee programs 117 SDG 8"
Sustainability-Report-2021-Complete.txt,"safety 222
403-10 Work-related ill health Environmental, health, and safety management 128 SDG 3, 8, 16
Metric tables: health and safety; 3M historical metrics, health and safety 222
GRI 404: Training and education
103-1 to Management approach disclosures Employee programs 117
103-3
404-1 Average hours of training per year per employee Employee programs 117 UNGC Principle 6
SDG 4, 5, 8, 10
404-2 Programs for upgrading employee skills and transition Employee programs 117 SDG 8
assistance program
404-3 Percentage of employees receiving regular performance and Employee programs 117 UNGC Principle 6"
Sustainability-Report-2021-Complete.txt,"rograms 117 SDG 8
assistance program
404-3 Percentage of employees receiving regular performance and Employee programs 117 UNGC Principle 6
career development reviews SDG 5, 8, 10Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 213
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 405: Diversity and Equal Opportunity
103-1 to Management approach disclosures Corporate governance 83
103-3 Employee diversity, equity, and inclusion 69"
Sustainability-Report-2021-Complete.txt,"out report 3M 2021 Sustainability Report | #improvinglives 213
Disclosure Connections to United
Description Cross-reference Page #
number Nations Initiatives*
GRI 405: Diversity and Equal Opportunity
103-1 to Management approach disclosures Corporate governance 83
103-3 Employee diversity, equity, and inclusion 69
3M 2020 Diversity, Equity & Inclusion Report
405-1 Diversity of governance bodies and employees Corporate governance 83 UNGC Principle 6
Corporate Officers SDG 5, 8
Board of Directors
Employee diversity, equity, and inclusion 69"
Sustainability-Report-2021-Complete.txt,"al Opportunity
103-1 to Management approach disclosures Corporate governance 83
103-3 Employee diversity, equity, and inclusion 69
3M 2020 Diversity, Equity & Inclusion Report
405-1 Diversity of governance bodies and employees Corporate governance 83 UNGC Principle 6
Corporate Officers SDG 5, 8
Board of Directors
Employee diversity, equity, and inclusion 69
3M 2020 Diversity, Equity & Inclusion Report
405-2 Ratio of basic salary and remuneration of women to men Compensation 113 UNGC Principle 6
Employee diversity, equity, and inclusion 69 SDG 5, 8, 10"
Sustainability-Report-2021-Complete.txt,"103-3 Human rights 105
Suppliers 166
411-1 Incidents of violations involving rights of Indigenous peoples To the best of our knowledge, there were no incidents reported to the Ethics UNGC Principle 1
& Compliance Department related to the rights of Indigenous people in 2020. SDG 2
GRI 412: Human rights assessment
103-1 to Management approach disclosures Human rights 105
103-3
412-1 Operations that have been subject to human rights reviews or Human rights 105 UNGC Principle 1
impact assessments
412-2 Employee training on human rights policies or procedures Human rights 105 UNGC Principle 1"
Sustainability-Report-2021-Complete.txt,"Our customers 178
(Cont.)
Innovation management 184
Our products 194
Customer welfare Our customers 178
Innovation management 184
Product Safety, Quality, and Stewardship Principle
Selling practices and product labeling Our customers 178
Innovation management 184
Product Safety, Quality, and Stewardship Principle
Advertising and Product Representation Policy
Human Labor practices Corporate Code of Conduct 96
capital Human rights 105
Suppliers 166
Ethics & Compliance
Supplier Responsibility Code
Employee health and safety Environmental, health, and safety management 128"
Sustainability-Report-2021-Complete.txt,"t Safety, Quality, and Stewardship Principle
Selling practices and product labeling Our customers 178
Innovation management 184
Product Safety, Quality, and Stewardship Principle
Advertising and Product Representation Policy
Human Labor practices Corporate Code of Conduct 96
capital Human rights 105
Suppliers 166
Ethics & Compliance
Supplier Responsibility Code
Employee health and safety Environmental, health, and safety management 128
Metric tables: 3M historical metrics; health and safety 222
Employee engagement, diversity, and inclusion Communities 59"
Sustainability-Report-2021-Complete.txt,"s and product labeling Our customers 178
Innovation management 184
Product Safety, Quality, and Stewardship Principle
Advertising and Product Representation Policy
Human Labor practices Corporate Code of Conduct 96
capital Human rights 105
Suppliers 166
Ethics & Compliance
Supplier Responsibility Code
Employee health and safety Environmental, health, and safety management 128
Metric tables: 3M historical metrics; health and safety 222
Employee engagement, diversity, and inclusion Communities 59
Employee diversity, equity, and inclusion 69"
Sustainability-Report-2021-Complete.txt,"Consumption MWh 304,000 C Da ist te rg ibo ur ty i o4 n - Upstream Transportation and Metric Tons CO2e 1,080,000
N >$u 1m 0b ,0e 0r 0o )f Significant Fines (Fine or penalty Total Number 0 Offsite Recycle Metric Tons 129,000 Total Hot Water MWh 2,770 Category 5 - Waste Generated in Operations Metric Tons CO2e 138,000
Total Monetary Value of Significant Fines Million $USD 0 Renewable Energy % Total Electricity Use 35.4 Category 6 - Business Travel Metric Tons CO2e 13,300
Water Metrics Units Value
Total Water Use (Absolute) Million Cubic Meters 44.7 Category 7 - Employee Commuting Metric Tons CO2e 324,000"
Sustainability-Report-2021-Complete.txt,"from 3M primary
data on waste by site size or
Scope 3, Category 5 number of employees. In 2020,
Metric tons COe 180,000 197,000 171,000 192,000 138,000
(waste generated in operations) 2 data representation changed;
see About report section for
more details.
Calculated from 3M primary data
Scope 3, Category 6 on business travel. Calculations
Metric tons COe 59,300 60,700 61,600 52,800 13,300
(business travel) 2 have changed; see About report
section for details.
Methodology updated to calculate
values based on 3M employee"
Sustainability-Report-2021-Complete.txt,",000 192,000 138,000
(waste generated in operations) 2 data representation changed;
see About report section for
more details.
Calculated from 3M primary data
Scope 3, Category 6 on business travel. Calculations
Metric tons COe 59,300 60,700 61,600 52,800 13,300
(business travel) 2 have changed; see About report
section for details.
Methodology updated to calculate
values based on 3M employee
Scope 3, Category 7
Metric tons COe 332,000 332,000 327,000 336,000 324,000 headcount with U.S. EPA GHG
(employee commuting) 2"
Sustainability-Report-2021-Complete.txt,"e of development opportunities, supplier
the power of inclusion that will drive
any other company that currently has diversity, government engagement
a better 3M.
a leadership role dedicated solely to and policy, and more. Ninety people
social justice strategies and initiatives have been appointed by senior leaders
The workstreams in this platform
as 3M does. Bowen is uniquely to take on lateral assignments across
include:
qualified for the role with many years the company to drive this body of
of leadership experience at 3M. “Being work and weave it into the fabric of • Accelerating Workforce Diversity"
Sustainability-Report-2021-Complete.txt,"icated solely to and policy, and more. Ninety people
social justice strategies and initiatives have been appointed by senior leaders
The workstreams in this platform
as 3M does. Bowen is uniquely to take on lateral assignments across
include:
qualified for the role with many years the company to drive this body of
of leadership experience at 3M. “Being work and weave it into the fabric of • Accelerating Workforce Diversity
Black in America is like a second job,” our company. The workstreams are
he says, “and I’ve lived it. I grew up grounded on two platforms for change. ○ Workforce Planning"
Sustainability-Report-2021-Complete.txt,"he says, “and I’ve lived it. I grew up grounded on two platforms for change. ○ Workforce Planning
& Acquisition
“It’s a holistic in Jamaica where the majority of the
population was Black. When I moved Platform 1: Racial justice for the ○ Internal Process Review
approach and is to Minnesota, I was suddenly part future of work
• Training & Development
of the minority. Like so many of my
set up to drive African American colleagues, I have We have a unique capability to • Racial Inclusion Advocacy
address workforce disparities"
Sustainability-Report-2021-Complete.txt,"globally by year end. We also maximized production of other respond to COVID-19
solutions used in response to COVID-19, including biopharma Mitigating the risk of infectious
filtration, hand sanitizers, and disinfectants. disease spread through
3M offers educational content to help customers deepen their contamination prevention
scientific expertise and improve food safety and quality within
their organizations. 3M’s broad range of food safety testing
solutions helps to protect consumer health.
Workforce At 3M, we recognize the importance of well-trained science, Employee diversity, equity, Invest $50 million to address racial"
Sustainability-Report-2021-Complete.txt,"cational content to help customers deepen their contamination prevention
scientific expertise and improve food safety and quality within
their organizations. 3M’s broad range of food safety testing
solutions helps to protect consumer health.
Workforce At 3M, we recognize the importance of well-trained science, Employee diversity, equity, Invest $50 million to address racial
diversity, technology, engineering and mathematics (STEM) graduates and and inclusion opportunity gaps in the U.S. through
improving the critical need for equitable access to STEM education and Communities workforce development and STEM"
Sustainability-Report-2021-Complete.txt,"cess to STEM education and Communities workforce development and STEM
careers, which drives us to advance diversity, equity, inclusion, education initiatives by 2025.5
access to
and social justice within our company and community. We believe 3M 2020 Global Diversity,
education, and in the power of science, sharing our expertise, and investing in the Equity & Inclusion Report Double the pipeline of diverse talent 4.4, 4.5, 4.c
addressing in management to build a diverse
bright minds of tomorrow.
3M Diversity and Inclusion workforce by 2025."
Sustainability-Report-2021-Complete.txt,"ure stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 54
Our actions
Science for Circular Science for Climate Science for Community
We are committed to evolving our
• Require every new product • Help our customers reduce their • Invest $50 million to address racial
existing goals and to adding new goals
that enters 3M’s new product GHGs by 250 million tons of CO₂ opportunity gaps in the U.S. through
when appropriate. In 2019, 3M made it a
commercialization process to have equivalent emissions through the workforce development and STEM"
Sustainability-Report-2021-Complete.txt,"ave equivalent emissions through the workforce development and STEM
requirement that every product entering
a Sustainability Value Commitment, use of 3M products by 2025 education initiatives by 2025 5
our new product commercialization
demonstrating how it drives impact
• Improve energy efficiency indexed • Double the pipeline of diverse talent
process includes a Sustainability Value
for the greater good1
to net sales by 30% by 2025 in management to build a diverse
Commitment (SVC). In 2020, we
• Reduce manufacturing waste workforce by 2025"
Sustainability-Report-2021-Complete.txt,"refurbish the school.
local community.
3M will continue to offer support to
rebuild other minority-led businesses
• $1 million – 3M Foundation Social
and nonprofits in the community,
Justice Fund
including Springboard for the Arts.
In partnership with 3M’s African
$50 million commitment As we design the factories and labs
American Network and our ERN
of the future, we feel a responsibility
Community Champions, the over five years
to inform and support a more
3M Foundation distributed $1 million
in grants. Our ERN-led philanthropic Education and workforce development equitable pathway to these jobs Science for"
Sustainability-Report-2021-Complete.txt,"c Education and workforce development equitable pathway to these jobs Science for
model empowers the voice of are key to racial equity, and we pledged among underrepresented populations. Community goal
Through our new investments, we
our employees to influence our to invest $50 million over the next five In 2020, 3M announced a new
will broaden access to science,
philanthropy and recognizes lived years to address racial opportunity goal to invest $50 million to
manufacturing, and skilled trades
experience as an important input to gaps through workforce development address racial opportunity gaps"
Sustainability-Report-2021-Complete.txt,"y, and we pledged among underrepresented populations. Community goal
Through our new investments, we
our employees to influence our to invest $50 million over the next five In 2020, 3M announced a new
will broaden access to science,
philanthropy and recognizes lived years to address racial opportunity goal to invest $50 million to
manufacturing, and skilled trades
experience as an important input to gaps through workforce development address racial opportunity gaps
careers inside and outside of
our decision-making. The working initiatives, embedding our commitment in the U.S. through workforce"
Sustainability-Report-2021-Complete.txt,"es in STEM for professional development of diverse 1,670 girls in 2020 — 54% of whom
access to appropriate technologies
underrepresented students. Our STEM teachers — recognizing were from underserved households.
and training. Following are some of the
support is focused on strengthening that when teachers reflect student The Virtual Lab provided six weeks
programs 3M is investing in to help
the STEM and skilled trades ecosystem demographics, it is academically of virtual programs that included
keep the workforce pipeline flowing."
Sustainability-Report-2021-Complete.txt,"and technical colleges, and we Community goal
STEM engagement will help lead pandemic. The online video library is a
provided 26 scholarships. In 2020,
to economic equity for individuals, free resource that contains more than As part of our overall
MAP expanded outside the U.S.
especially marginalized populations. 20 experiments, each featuring a commitment to create greater
into Wroclaw, Poland.
Our strategy is to expand access to 3M scientist, engineer, or a special equity in our communities,
STEM opportunities and improve • 3M is helping close the workforce guest performing a simple experiment business practices and"
Sustainability-Report-2021-Complete.txt,"porting populations
Sustainability Framework.
disproportionately affected by
the pandemic.
3M will focus on
our new goal for
advancing equity
in STEM and
skilled trades.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 69
Employee
diversity, equity,
and inclusion
Cultivating a connected community by
listening, understanding, and acting
Our We know that a diverse, global Above all, fostering a culture that 3M’s Respectful Workplace
workforce — people with different supports diversity, equity, and inclusion Principle states that “everyone is"
Sustainability-Report-2021-Complete.txt,"harassment against applicants, covered veterans, and individuals with
Community goal questioning or queer, intersex, or
employees, vendors, contractors, disabilities and are also designed to
another gender identity or sexual
or customers on the basis of race, provide reasonable accommodations Double the pipeline of diverse
orientation (LGBTQI+). To measure
color, creed, religion, sex, national to individuals with disabilities. talent in management to build
progress against our goal, we use the
origin, age, disability, veteran status, a diverse workforce by 2025."
Sustainability-Report-2021-Complete.txt,"work to do. We are building diverse perspectives to our senior team.
on our foundation by taking We aligned to new external standards
accelerated, bolder action and continued to build the diversity
As we advance our social justice, • Systematically reviewing and
with new commitments of our leadership in support of our
diversity, equity, and inclusion adjusting our practices for fairness
to bring the demographics goal to double the pipeline of diverse
initiatives, we are committed to: and equity
of 3M's workforce in line with managers, and we provided resources"
Sustainability-Report-2021-Complete.txt,".
on our foundation by taking We aligned to new external standards
accelerated, bolder action and continued to build the diversity
As we advance our social justice, • Systematically reviewing and
with new commitments of our leadership in support of our
diversity, equity, and inclusion adjusting our practices for fairness
to bring the demographics goal to double the pipeline of diverse
initiatives, we are committed to: and equity
of 3M's workforce in line with managers, and we provided resources
the broader workforce and and programming to build advocacy for • Accelerating representation globally • Training and developing all 3M"
Sustainability-Report-2021-Complete.txt,"ersity, equity, and inclusion adjusting our practices for fairness
to bring the demographics goal to double the pipeline of diverse
initiatives, we are committed to: and equity
of 3M's workforce in line with managers, and we provided resources
the broader workforce and and programming to build advocacy for • Accelerating representation globally • Training and developing all 3M
advance representation of inclusion across 3M. across all dimensions of diversity, leaders in racial inclusion advocacy
underrepresented groups at 3M. with a focus in our U.S. workforce • Using our advocacy to support"
Sustainability-Report-2021-Complete.txt,"ballyFeature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 71
Our actions 3M’s first-ever We are pleased to share we have The CEO Inclusion Council met
achieved 100% pay equity in the United quarterly throughout 2020. During
Diversity, Equity &
States for women and for racial/ethnic each meeting, leaders from at least
Every day, we work to assure that Inclusion Report groups and will continue our work to two ERNs shared a presentation
the 3M workforce is representative increase or maintain pay equity and focused on their accomplishments"
Sustainability-Report-2021-Complete.txt,"e issued a transparency across the globe. over the last six months, their priorities
business. This entails strengthening Diversity, Equity, & Inclusion Report and strategic plan, and suggestions
3M’s reputation as a great place for for 2020. We want to celebrate some For more details, read the 3M 2020 on ways to improve.
everyone to work and focusing on: of our accomplishments and be more Diversity, Equity & Inclusion Report.
transparent about the diversity of The purpose is to elevate current
• Seeking and attracting diverse and our workforce and what the future Raising awareness inclusion challenges impacting the"
Sustainability-Report-2021-Complete.txt,"cusing on: of our accomplishments and be more Diversity, Equity & Inclusion Report.
transparent about the diversity of The purpose is to elevate current
• Seeking and attracting diverse and our workforce and what the future Raising awareness inclusion challenges impacting the
qualified candidates globally holds at 3M. The report includes our inside of 3M specific ERN or broader organization
• Building our global pipeline of response to the George Floyd tragedy, and then have a group discussion.
diverse candidates detailed data showing 3M’s workforce As we work to do more to improve"
Sustainability-Report-2021-Complete.txt,"tates, 14%
Canada 7%
Europe, 56%
Middle East,
7%
Africa
37%
3%
Asia Pacific
43%
Latin
7%
America Progress since 2015 Male Female
43%
14%
Progress since 2015 Male Female
56%
7%
Progress since 2015 Male FemaleFeature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 77
Looking
forward
We will advance 3M through our
people and our culture, engaging
our current employees, attracting
best-in-class employees, and
increasing the diversity of our
workforce. 3M’s nine ERNs will"
Sustainability-Report-2021-Complete.txt,"ructure. It has customers, employees, investors,
in the areas of human rights, labor,
enabled us to respond to COVID-19 and stakeholders — and grow our $50M
environment, and anti-corruption.
with agility — from our significant business — by continuing to make bold
We align this report to the guidelines
expansion of respirator production sustainability commitments and taking
of the Sustainability Accounting
to our ability to maintain business stronger actions.
Standards Board (SASB) and the Task
continuity and serve customers. to advance workforce"
Sustainability-Report-2021-Complete.txt,"inciple, temporary, migrant, student, to assure compliance with the U.S. for change to address racial
3M’s Code of Conduct requires contingent, and direct employees. Federal Acquisition Regulation, opportunity gaps — empowering
3M employees to select and retain These expectations are laid out in the including a Human Trafficking an inclusive culture and supporting
suppliers, contractors, or outsourced 3M Supplier Responsibility Code and Prevention Standard. our communities with a plan to invest
manufacturers and service providers support our Science for Circular goal to $50 million to advance workforce"
Sustainability-Report-2021-Complete.txt,"urces.
the training cost per employee are LSS, sustainability, and other relevant
25+ not our leading indicators of human content and experiences. Develop U Employees create or update
capital performance. Instead, when provides access to tens of thousands development plans that include
assessing our development programs, of unique, just-in-time learning activities meant to improve individual
we focus on indicators that align resources in 13 core languages, skills and further career development.
hours of training employees’ results to the company’s allowing 3M’s global workforce to Employees can use additional"
Sustainability-Report-2021-Complete.txt,"goals.
Sigma (LSS) project value are a few channels. Since adopting this goal
At 3M, learning and experiences
We leverage a 70-20-10 development examples of indicators that contribute in 2015, these expanded learning
are shared. Just as we share and
model, which means that, over the to 3M’s recognition as an industry and development offerings have
combine our technologies, we also
course of a career, and global business leader. increased reach, covering our total
share and combine our knowledge
global workforce. In 2020 alone,"
Sustainability-Report-2021-Complete.txt,"l employees. website. We define mentoring as a
Employees have the freedom to create 64% unique relationship in which a mentor
of learning is done meaningful development plans, identify (a more experienced person) helps a
on the job goals, and take steps to achieve them. mentee (a less experienced person)
3M and supervisors provide the tools with their development in a particular
20% to help them achieve those goals. of our global area. Further information can be
found at Mentorships at 3M. 3M’s
workforce engage"
Sustainability-Report-2021-Complete.txt,"prioritized taking a well-rounded
bring employees
view of an individual’s performance,
assuring that employees are treated in
to the center and
a fair and consistent manner.
simplify the process.Feature stories Who we are How we work What we create About report 3M 2021 Sustainability Report | #improvinglives 121
Learning from listening Global employee We calculate voluntary turnover
separately from retirements,
sustainability survey
For more than 50 years, 3M has company-initiated turnover, and
been conducting surveys to solicit and engagement reductions in workforce. Voluntary"
Sustainability-Report-2021-Complete.txt,"mployee health and safety by
implementing protocols like physical
3M takes our responsibility seriously distancing, heightened personal hygiene
to help keep employees safe by practices, disinfection cleanings, and Early in 2020, in an effort to prioritize Occupational
the health and safety of our people
minimizing the spread of disease. additional trainings, as well as use of epidemiology
during COVID-19, the majority of our
During the various stages of response face coverings in the workplace.
workforce at 3M office buildings and"
Sustainability-Report-2021-Complete.txt,"duct platforms.
take our fundamental strengths and scientist in the 3M Corporate Research
technology, manufacturing, global
applications almost anywhere in the Systems Lab, on what it’s like to be a
capabilities, and brand. They define One of the many things that makes
world. We have sales in nearly all member of Tech Forum.
us as an enterprise and combine to 3M unique is our commitment to
countries, with more than half of our
build a business greater than the collaboration. We collaborate with
workforce and sales professionals One notable volunteer Tech Forum"
Sustainability-Report-2021-Complete.txt,"-101
102-37 Stakeholders’ involvement in remuneration Compensation 113 SDG 16
Compensation Committee Charter
2021 Proxy Statement, pages 16, 45-47, 52-101
102-38 Annual total compensation ratio 2021 Proxy Statement, page 101
102-39 Percentage increase in annual total compensation ratio Not applicable. Disclosure does not cover the specific impacts that make
the topic material. 3M has an established process to assure our commitment
to fair and equitable pay. The breakdown to calculate the median
percentage increase does not accurately reflect our workforce levels"
sustainability-report.txt,"reporting
facilities are ISO 45001 certified. Our offices and related facilities are
covered under our safety policies, however these facilities may not
need specialized health and safety policies.
403-2 Hazard identification, risk Our Team (p. 24)
assessment and incident
investigation
403-3 Occupational health services Our Team (p. 26)
40 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONDisclosure
Disclosure Title Location Omissions
Number
GRI 403: Occupational Health and Safety 2018 (continued)
403-4 Worker participation, Our Team (p. 24)"
sustainability-report.txt,"policies, however these facilities may not
need specialized health and safety policies.
403-2 Hazard identification, risk Our Team (p. 24)
assessment and incident
investigation
403-3 Occupational health services Our Team (p. 26)
40 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONDisclosure
Disclosure Title Location Omissions
Number
GRI 403: Occupational Health and Safety 2018 (continued)
403-4 Worker participation, Our Team (p. 24)
consultation and
communication on
occupational health and safety
403-5 Worker training on Our Sustainability Approach and Progress (p. 6); Our Team (p. 24-25);"
sustainability-report.txt,"and incident
investigation
403-3 Occupational health services Our Team (p. 26)
40 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONDisclosure
Disclosure Title Location Omissions
Number
GRI 403: Occupational Health and Safety 2018 (continued)
403-4 Worker participation, Our Team (p. 24)
consultation and
communication on
occupational health and safety
403-5 Worker training on Our Sustainability Approach and Progress (p. 6); Our Team (p. 24-25);
occupational health and safety Appendix C: ESG Metrics
403-6 Promotion of worker health Our Team (p. 26)"
sustainability-report.txt,"ific to each country. Amphenol will consider alternatives to spend-based calculations for
future reporting.
8. Categories 8, 10, 14 and 15 have been assessed and found to be not relevant. Categories 11 and 12 have not yet been assessed. Scope 3 Category 13 has been
calculated but found to be not relevant.
9. Water withdrawal, discharge and consumption data, apart from groundwater and surface water data, was collected at in-scope facilities primarily using monthly
or quarterly water bill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers."
sustainability-report.txt,"d consumption data, apart from groundwater and surface water data, was collected at in-scope facilities primarily using monthly
or quarterly water bill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers.
Governance employee data is based on year-end headcount. The vast majority (95% or more) of our employees work full-time in all regions. Our employees by
region are shown on page 5 of this report.
11. Our most common type of contract worker is temporary employees. Temporary workers at Amphenol most commonly perform manufacturing labor duties."
sustainability-report.txt,"ill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers.
Governance employee data is based on year-end headcount. The vast majority (95% or more) of our employees work full-time in all regions. Our employees by
region are shown on page 5 of this report.
11. Our most common type of contract worker is temporary employees. Temporary workers at Amphenol most commonly perform manufacturing labor duties.
12. In 2023, training hours were approximately 12 hours per employee or worker."
sustainability-report.txt,"e to be thoughtful about the resources
In addition to the actions we have taken to reduce
we use to both minimize and better manage waste in our
the waste produced from our factories, our teams
processes. Our operations employ numerous methods to
are also working to reduce the impact of our
limit our waste, with some examples including utilizing product packaging. As one example, our Automotive
recycled packaging for connectors, composting organic Connection Systems facility in Changzhou, China
material from our employee cafeterias and minimizing our partnered with their supplier to implement an"
sustainability-report.txt,"workplace safety hazards are identified, we address
by our EHSS and human resources teams to ensure these
the root causes of these hazards to better mitigate and
programs are properly communicated and understood
prevent workplace injuries. We have also developed an
and that they best fit the specific needs of our different
internal incident reporting system called Code Blue for the
locations. Our corporate EHSS team works closely with
reporting of serious environmental or safety incidents. The
our local teams to track employee training hours and"
sustainability-report.txt,"l employees across all levels in the United States.
this means supporting our employees with the training and Introduced in 2022, this platform has been further enhanced
tools they need to develop and enhance their professional to better suit the needs of our company and we plan further
skills. Our operations around the world support continuous expansion of training content in 2024.
learning and advanced training for the development of
In 2023, we changed our definition of training to match the
new skills. We also enable employee transfers to support"
sustainability-report.txt,"yees choose to relocate.
reported training hours are not directly comparable to the
To keep our employees connected and informed, we reported training hours for 2022 and 2021. In 2023, using
have developed an internal platform for information the GRI definition, our global workforce completed a total
sharing called Amphenol Connections. The platform acts of 1.17 million training hours.
as a community resource to help employees understand
various aspects of Amphenol and our different operations.
Employee Training Hours"
sustainability-report.txt,"to a
variety of topics including various market trends, internal
2.03
collaboration, IT best practices, EHSS, finance, internal 1.83
audit, human resources and several others. In 2023, we 1.17
expanded our Amphenol Connections platform to deliver
various trainings, tools and information to our employees.
2021 2022 2023
In addition, we utilize Open Sesame’s platform to curate and
deliver safety, regulatory and process training content to
AMPHENOL CORPORATION 2023 SUSTAINABILITY REPORT 25Our Team
Employee Well-Being"
sustainability-report.txt,"aboration, IT best practices, EHSS, finance, internal 1.83
audit, human resources and several others. In 2023, we 1.17
expanded our Amphenol Connections platform to deliver
various trainings, tools and information to our employees.
2021 2022 2023
In addition, we utilize Open Sesame’s platform to curate and
deliver safety, regulatory and process training content to
AMPHENOL CORPORATION 2023 SUSTAINABILITY REPORT 25Our Team
Employee Well-Being
We understand that the well-being of our employees is
Encouraging Employee Wellness"
sustainability-report.txt,"term shareholder value through
• Directors’ unrestricted access to management and
performance. Our Board’s Compensation Committee
independent advisors
oversees our overall compensation and benefits programs,
• Active shareholder engagement
including for our senior executives. In 2022, our annual
• Proxy access for shareholders
incentive bonus plan was amended to add both
• Shareholder right to call special meetings
sustainability and risk management performance as
• One-share, one-vote standard
discretionary factors in assessing an employee’s overall"
sustainability-report.txt,"ices
to our operating leaders. Our operating management is
required to consider risks and risk mitigation strategies
as part of their annual budget and strategic planning
processes and to include specific mitigation strategies.
Risk management performance is also considered in the
process used to determine annual compensation for our
senior executives, general managers and controllers.
Our corporate policies encourage employees to report
possible violations of our policies or any other illegal,
unethical or risky behavior to either the employee’s"
sustainability-report.txt,"which includes a periodic
review of the Company’s DEI programs and performance.
The Nominating/Corporate Governance Committee
continues to be responsible for assisting the Board in
fulfilling its oversight responsibility for the “Governance”
portion of ESG.
32 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONResponsible Business
Human Capital Management and Culture Oversight Anti-Bribery
Our Board is actively involved in overseeing the Company’s Our reputation is one of our most important assets.
employee-related strategies and practices as well as the The bedrock of this hard-earned reputation is the"
sustainability-report.txt,"priority to ensure we are operating
business practices, as outlined in our Code of Business
ethically, efficiently and responsibly across our value chain.
Conduct and Ethics. Stealing proprietary information,
One of our key values is that we do the right thing, always.
possessing trade secret information that was obtained
Maintaining our integrity and reputation will always be
without the owner’s consent or inducing such disclosures
our priority.
by past or present employees of other companies
Amphenol’s Code of Business Conduct and Ethics provides is strictly prohibited. Each employee is expected to"
sustainability-report.txt,"e 1 and Scope 2 and associated Scope 3 Category
3. The restatement was applied to years 2021 through 2023. We have
also corrected our 2022 renewable energy value which was misstated
in our prior year report.
2-5 External assurance Verification report of Greenhouse Gases and Energy Indicators
2-6 Activities, value chain and 2023 10-K Report (2-11)
other business relationships
2-7 Employees About Amphenol (p. 4-5); Our Team (p. 23, 28); Appendix C: ESG Reason for Omission: Information unavailable
Metrics Amphenol does not currently track employee data"
sustainability-report.txt,"was misstated
in our prior year report.
2-5 External assurance Verification report of Greenhouse Gases and Energy Indicators
2-6 Activities, value chain and 2023 10-K Report (2-11)
other business relationships
2-7 Employees About Amphenol (p. 4-5); Our Team (p. 23, 28); Appendix C: ESG Reason for Omission: Information unavailable
Metrics Amphenol does not currently track employee data
using the same categorizations laid out in the GRI
framework.
Reason for Omission: Confidentiality constraints
Amphenol does not report on specific employee"
sustainability-report.txt,"uman Rights Policy
GRI 201: Economic Performance 2016
3-3 Management of material 2023 10-K Report (p. 48); Stakeholder Engagement (p. 8); Responsible
topics Business (p. 29-34)
201-1 Direct economic value 2023 10K Report (p. 51-54); Appendix C: ESG Metrics
generated and distributed
201-2 Financial implications and 2023 10K Report (p. 12-21); Appendix D: TCFD Disclosure
other risks and opportunities
due to climate change
201-3 Defined benefit plan 2023 10K Report (p. 76-80)
obligations and other
Defined benefit plan estimations, employer/employee contributions"
sustainability-report.txt,"23 10-K Report (p. 48); Stakeholder Engagement (p. 8); Responsible
topics Business (p. 29-34)
201-1 Direct economic value 2023 10K Report (p. 51-54); Appendix C: ESG Metrics
generated and distributed
201-2 Financial implications and 2023 10K Report (p. 12-21); Appendix D: TCFD Disclosure
other risks and opportunities
due to climate change
201-3 Defined benefit plan 2023 10K Report (p. 76-80)
obligations and other
Defined benefit plan estimations, employer/employee contributions
retirement plans
and employee participation requirements vary by location."
sustainability-report.txt,"ng and job hazard analysis
processes to educate employees and enhance awareness around
workplace safety practices. We also created content on our intranet
site to further engage with our employees on various safety topics.
GRI 404: Training and Education 2016
3-3 Management of material Stakeholder Engagement (p. 8); Our Team (p. 25); Responsible Business
topics (p. 29-34)
404-1 Average hours of training per Our Team (p. 25); Appendix C: ESG Metrics Reason for Omission: Information not available
year per employee"
sustainability-report.txt,"ty topics.
GRI 404: Training and Education 2016
3-3 Management of material Stakeholder Engagement (p. 8); Our Team (p. 25); Responsible Business
topics (p. 29-34)
404-1 Average hours of training per Our Team (p. 25); Appendix C: ESG Metrics Reason for Omission: Information not available
year per employee
Amphenol does not currently collect data on
employees by category. We therefore do not
have the available information to report on this
disclosure.
404-2 Programs for upgrading Our Team (p. 25)
employee skills and transition"
sustainability-report.txt,"d Education 2016
3-3 Management of material Stakeholder Engagement (p. 8); Our Team (p. 25); Responsible Business
topics (p. 29-34)
404-1 Average hours of training per Our Team (p. 25); Appendix C: ESG Metrics Reason for Omission: Information not available
year per employee
Amphenol does not currently collect data on
employees by category. We therefore do not
have the available information to report on this
disclosure.
404-2 Programs for upgrading Our Team (p. 25)
employee skills and transition
Employee transition assistance plans for employees are managed on"
sustainability-report.txt,"of training per Our Team (p. 25); Appendix C: ESG Metrics Reason for Omission: Information not available
year per employee
Amphenol does not currently collect data on
employees by category. We therefore do not
have the available information to report on this
disclosure.
404-2 Programs for upgrading Our Team (p. 25)
employee skills and transition
Employee transition assistance plans for employees are managed on
assistance programs
a case-by-case basis. Human resources teams within each business
group manage employee transition assistance plans."
sustainability-report.txt,"ific to each country. Amphenol will consider alternatives to spend-based calculations for
future reporting.
8. Categories 8, 10, 14 and 15 have been assessed and found to be not relevant. Categories 11 and 12 have not yet been assessed. Scope 3 Category 13 has been
calculated but found to be not relevant.
9. Water withdrawal, discharge and consumption data, apart from groundwater and surface water data, was collected at in-scope facilities primarily using monthly
or quarterly water bill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers."
sustainability-report.txt,"been assessed and found to be not relevant. Categories 11 and 12 have not yet been assessed. Scope 3 Category 13 has been
calculated but found to be not relevant.
9. Water withdrawal, discharge and consumption data, apart from groundwater and surface water data, was collected at in-scope facilities primarily using monthly
or quarterly water bill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers.
Governance employee data is based on year-end headcount. The vast majority (95% or more) of our employees work full-time in all regions. Our employees by"
sustainability-report.txt,"ill values.
10. In-scope employee and non-employee worker data was compiled at year end and calculated by averaging the 12 end-of-month headcount numbers.
Governance employee data is based on year-end headcount. The vast majority (95% or more) of our employees work full-time in all regions. Our employees by
region are shown on page 5 of this report.
11. Our most common type of contract worker is temporary employees. Temporary workers at Amphenol most commonly perform manufacturing labor duties.
12. In 2023, training hours were approximately 12 hours per employee or worker."
sustainability-report.txt,"merge in any one country or region. Headquartered in Wallingford, Connecticut, USA, Amphenol
had approximately 95,000 diverse, talented and driven employees worldwide at the end of 2023.
Our Values
$12.6B
2023 SALES
Amphenol’s high-performance culture is united by our
shared values.
95,000 Ethical
EMPLOYEES
We do the right thing, always. Maintaining our integrity
and reputation will always be our priority.
Diverse
MANUFACTURING IN
Diversity of our markets, products, geographies and
40
COUNTRIES
workforce is a key pillar of our continued success. We"
sustainability-report.txt,"Mobile Networks and Broadband. We believe that this diversification is one of our key
competitive strengths, helping to reduce the impact from volatility in any one market while also exposing us to the latest
technological developments across the widest array of markets within the global electronics industry.
Balanced End Market Exposure
LONGER
CYCLE
Industrial
25%
Commercial
Aerospace
4%
Defense
11%
Automotive
Broadband
23%
4%
Mobile
Networks
4%
IT Datacom
Mobile Devices
19%
10%
SHORTER
CYCLE
2023 Sales by Geography 2023 Global Workforce"
sustainability-report.txt,"our comprehensive
Responsible Minerals Policy. Our policy prohibits the use
of tin, tantalum, tungsten or gold (3TG), cobalt or mica
that may originate from sources that directly or indirectly
finance or benefit armed groups through mining or mineral
22 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONOur Team
We remain committed to ensuring the health, safety and well-being of our approximately 95,000
hard-working and dedicated employees who are our greatest asset. We deliver on this commitment
by nurturing the development and training of our workforce, providing safe working conditions and"
sustainability-report.txt,"of
In 2023, we changed our definition of training to match the
new skills. We also enable employee transfers to support
GRI definition and to exclude job training, which has been
new job opportunities in different Amphenol businesses or
a major focus of our training efforts. As a result, our 2023
when employees choose to relocate.
reported training hours are not directly comparable to the
To keep our employees connected and informed, we reported training hours for 2022 and 2021. In 2023, using
have developed an internal platform for information the GRI definition, our global workforce completed a total"
sustainability-report.txt,"working options,
we offer a range of physical wellness program
childcare contributions, breast-feeding/lactation
options. The facility conducts running meetings
facilities or benefits and paid parental leave for the
during lunch to get employees outside and active.
primary and non-primary caregiver. These programs
Employees at the facility are also encouraged to
foster inclusion and belonging for employees in all
join the annual company run, with approximately
stages of their careers and lives.
one-third of the site’s workforce participating in"
sustainability-report.txt,"s and the products
created on-site. WTZ students were able to test their
learned skills through guided activities such as stripping
wires and crimping connectors. Through events such
as this workshop, our team aims to build a stronger
connection with the local community.
AMPHENOL CORPORATION 2023 SUSTAINABILITY REPORT 27Our Team
Diversity, Equity and Inclusion
Amphenol is a global, multicultural company and our
Supporting Diversity and Inclusion
employees reflect the diversity of our geographic
footprint. At the end of 2023, 58% of our workforce"
sustainability-report.txt,"ims to build a stronger
connection with the local community.
AMPHENOL CORPORATION 2023 SUSTAINABILITY REPORT 27Our Team
Diversity, Equity and Inclusion
Amphenol is a global, multicultural company and our
Supporting Diversity and Inclusion
employees reflect the diversity of our geographic
footprint. At the end of 2023, 58% of our workforce
was located in the Asia-Pacific region, with 25% in
North America and 15% in Europe. As of our last EEO-
1 filing in 2022, which is available on our corporate
website, 66% of our U.S. workforce identified as"
sustainability-report.txt,"15% in Europe. As of our last EEO-
1 filing in 2022, which is available on our corporate
website, 66% of our U.S. workforce identified as
white, 12% identified as Asian or Pacific Islander, 13%
identified as Hispanic and 7% identified as Black. We
plan to make our 2023 EEO-1 filing publicly available
when it is finalized later this year.
Amphenol’s senior female leaders at our annual
Black
Men Hispanic 7% Undisclosed Worldwide Management Meeting
52% 13%
or other
2%
Asian
12%
Women White
48% 66%
Global Workforce U.S. Workforce Diversity"
sustainability-report.txt,"anagers and their controllers, as well as our
group general managers, their controllers and our
executive management team. Women represented
26% of this core management team at the end of 2023.
Supporting our LGBTQ+ employees
Of our total employees worldwide, approximately half
are women.
28 2023 SUSTAINABILITY REPORT AMPHENOL CORPORATIONResponsible
Business
At Amphenol, we do the right thing, always. Maintaining our integrity
and reputation will always be our priority. Amphenol’s shared values
to be ethical at all times, create a diverse workforce, empower our"
sustainability-report.txt,"ering intrusions, the Company has a comprehensive and evolving
communications or other corporate independent cybersecurity program designed to protect and preserve
expenditures). Amphenol does not have a company- the confidentiality, integrity and availability of our data
sponsored Political Action Committee. In 2023, we did and systems. We regularly perform risk assessments and
not contribute any money to political campaigns, political penetration tests relating to cybersecurity and technology
organizations or organizations engaged to lobby directly risks. We also conduct regular workforce training to"
sustainability-report.txt,"e Development Goal (SDG) 11.5 to provide that our highest valued facilities incorporate the
impact of risks due to climate change in their local business continuity plans. We are in the process of
including impact evaluations in our business continuity protocols and including mitigating measures as
appropriate. Our evaluation determined that flooding, extreme heat, water quality, tropical cyclones
(hurricanes) and water scarcity may pose risks such as damage to assets and reduced reliability of
power supply and may impact the health and safety of the workforce. Our commitment to SDG"