Guided by our Purpose, Vision, and Mission, and supported by our Values & Guiding Principles, we are dedicated to transforming the grid for a more sustainable energy future while caring for our team members, customers, and communities. This 2024 Sustainability Report details S&C Electric Company’s sustainability vision, strategy, key milestones, and achievements. The Report covers the period from January 1, 2024, to December 31, 2024, except where otherwise noted.
Sustainable Energy Future TRANSFORMING FOR A
2024 SUSTAINABILITY REPORT
TABLE OF CONTENTS
1
INTRODUCTION 1
About This Report
2 3 4 6
CEO Message
About S&C Electric Company Our Approach to Sustainability Ethics, Integrity, and Governance
10 PEOPLE-FIRST CULTURE 11
Talent Attraction and Retention
12 Team Member Engagement and Long-Term Career Development 14 Respect for People 17 Team Member Well-Being 18 Social Impact and Community Engagement 20 OPERATIONAL EXCELLENCE 21 Team Member Health and Safety 24 Emissions Reduction 27 Energy Efficiency 29 Waste Management 31 Air Quality 32 Water Conservation and Security 33 Supply Chain Management 34 CUSTOMER-CENTERED INNOVATION 35 Product Innovation and Sustainability 36 Product Quality 37 Product Life Cycle 38 Customer Focus and Support 39 GRI INDEX
INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Introduction About This Report
This 2024 Sustainability Report details S&C Electric Company’s sustainability vision, strategy, key milestones, and achievements. The Report covers the period from January 1, 2024, to December 31, 2024, except where otherwise noted. Through our Purpose, Vision, and Mission, and driven by our Values & Guiding Principles, we are dedicated to transforming the grid for a more reliable and sustainable energy future while caring for our team members, customers, and the communities in which we work. In 2024, S&C continued to advance the implementation of our strategy, as well as reporting and disclosure around our sustainability efforts, including the issues that matter most to us and our stakeholders. S&C’s sustainability pillars guide our reporting disclosures. This report was also prepared with reference to the Global Reporting Initiative (GRI) standards as well as other established sustainability reporting frameworks, such as the United Nations Sustainable Development Goals.
S&C 2024 Sustainability Report
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
CEO Message
Electricity plays a vital role in our lives. As our reliance grows, sustained power outages become more damaging and costly, with significant human and economic impacts. As our grid faces further challenges from extreme weather, aging infrastructure, and rising demand, increasing resilience is more important than ever. That’s where S&C innovation makes a difference. Our solutions transform the grid to be more resilient, reliable, and responsive to the needs of a rapidly changing world. To meet the urgency for our proven technologies, we expanded our Chicagoland operations in 2024 by opening our new 275,000-square-foot manufacturing facility in Palatine, Illinois. This state-of-the-art, LEED Silver-certified facility enhances our production capacity, streamlines our processes, and enables us to expand our product lines. The Palatine facility created 200 production and engineering jobs, strengthening our presence as the second-largest manufacturer in Chicago. As always, our commitment to safety remains our top priority. In 2024, we saw a significant reduction in workplace incidents. This was thanks to the emphasis on leading indicators and organizational engagement, including our team members’ participation in daily ergonomic exercise routines and the ongoing efforts of our Safety Action Teams and Safety Steering Committee. We are pleased by this progress toward our safety vision – that all injuries are preventable. A diverse and dynamic workforce is key to our continued growth and success. In 2024, we partnered with the Department of Defense’s SkillBridge program to provide career training and placement opportunities for military service members transitioning from active duty. This initiative earned S&C the “Hire Our Heroes” Certified Employer designation and highlights our commitment to supporting veterans as they build rewarding careers in our industry.
Our workplace culture, driven by our Values & Guiding Principles, continues to earn recognition. Once again, USA Today and the Chicago Tribune honored us by naming S&C a top workplace. We were also recognized on the National Center for Employee Ownership’s (NCEO) Employee Ownership 100 list, celebrating our employee-driven collaboration and innovation culture. We also continued to advance our sustainability leadership. For the second consecutive year, S&C received the Leading Practices in Supply Chain Sustainability Case Study Award from the Sustainable Supply Chain Alliance (SSCA), recognizing our efforts to decarbonize our manufacturing operations. I am proud to share that we were once again rated a B score in the 2024 CDP climate change disclosure – a meaningful achievement, especially given the CDP’s updated and expanded scoring system, which now places greater emphasis on comprehensive environmental management. In alignment with our aim to advance our sustainability reporting efforts, we also disclosed our water security practices for the first time, earning a B- score. This year, S&C received more A-level scores than ever before across four disclosure categories. These results reflect our growing commitment to transparency, continuous improvement, and environmental focus. In closing, I am deeply grateful and thankful to our team members for their dedication to caring for each other, our customers, and our communities. Their commitment to safety, operational excellence, and innovation makes S&C what it is today and is essential to our continued success.
To our customers and partners, thank you for your collaboration, trust, and support. Together, we will transform the grid for an outage-free, sustainable electrical energy future. Thank you,
Anders Sjoelin President & CEO S&C Electric Company
S&C 2024 Sustainability Report
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
More than 100 years ago, S&C transformed electricity distribution with the invention of the Liquid Power Fuse, leading to a new era of safer and more reliable power delivery. Today, S&C’s inclusive, global workforce develops and manufactures innovative solutions for a more intelligent and resilient electrical distribution grid. Building on this legacy of technological innovation and customer service, S&C empowers the transformation of the grid for an outage-free, sustainable electrical energy future. Learn more at sandc.com. About S&C Electric Company
S&C AT A GLANCE
Global Reach and Longevity
Operations in the U.S., Australia, Brazil, Canada, China, Mexico, and the UK
Founded in 1911
Headquartered in Chicago
Impacting Lives
Provides innovative and proven technologies to help manage an increasingly complex grid
Serves thousands of utility and commercial and industrial customers across the globe
Employs 4,100+ team members globally
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Our Approach to Sustainability
Sustainability Governance S&C’s president and chief executive officer (CEO) oversees our sustainability strategy, with roles and accountability established throughout the entire organization.
Our approach to sustainability is grounded in our Values & Guiding Principles, which reflect our commitments to our team members, customers, communities, and the environment. Sustainability Strategy Our sustainability strategy and pillars align with S&C’s corporate strategy and guiding principles, which serve as the foundation for our actions and decision-making. This alignment underscores the importance of sustainability at S&C and its critical integration into our operational excellence programs. As part of our strategy, we work closely with our customers to deliver solutions for more resilient and reliable electrical distribution. Through these relationships, we address the ever-evolving needs of our industry, stakeholders, and planet through innovation and teamwork. Together we bring new innovations to life as we transform the grid and enable a sustainable energy future.
S&C’S SUSTAINABILITY GOVERNANCE STRUCTURE
Board of Directors Ratifies the company’s sustainability strategy and quantitative targets
S&C President and CEO Guides the company’s sustainability strategy and progress
Sustainability Steering Committee Includes S&C’s president and CEO (chair); chief operating officer; chief marketing and communication officer; director – global health, safety & environmental (HSE); vice president – corporate strategy; and senior manager – environmental services and sustainability Develops and advances our comprehensive sustainability strategy Senior Manager – Environmental Services and Sustainability Oversees S&C’s environmental sustainability strategy while supporting companywide initiatives, baselining, and continuous improvement efforts
Team Members Implement programs and initiatives in support of our sustainability commitments
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
S&C’S SUSTAINABILITY PILLARS AND MATERIAL TOPICS Our three sustainability pillars focus on areas where our organization can have a measurable impact on the challenges facing our world.
People-First Culture Fostering an inclusive, people-first culture where the diversity, expertise, and collaboration of our team members drive shared growth and success. • Talent Attraction and Retention • Team Member Engagement and Long-Term Career Development • Respect for People • Team Member Well-Being • Compensation and Benefits • Social Impact and Community Engagement
Customer-Centered Innovation Developing innovative and resilient solutions to navigate the energy transition and help our customers keep the power on around the world. • Product Innovation and Sustainability • Product Quality • Product Life Cycle • Customer Focus and Support
Operational Excellence Embracing our Value & Guiding Principle of Responsible Stewardship to demonstrate our commitment to sustainability in all areas of our operations and solutions. • Team Member Health and Safety • Emissions Reduction • Energy Efficiency • Waste Management • Air Quality • Water Conservation and Security • Supply Chain Management
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Ethics, Integrity, and Governance
We adhere to the highest standards of ethics, integrity, and governance and believe these elements are critical to S&C’s long-term success. Ethics and Integrity S&C commits to treating all team members, customers, suppliers, and other stakeholders fairly; acting ethically; and upholding the highest standards of integrity in our operations and business dealings. Our Values & Guiding Principles drive our actions, enabling us to build long-term relationships and reinforce our reputation as a trusted partner and respected employer. Our associate general counsel – global compliance counsel, labor and employment, and our senior ethics and compliance specialist are responsible for our compliance program, policies, and procedures. These compliance professionals report directly to the general counsel and are under the purview of S&C’s president and CEO, as well as the audit committee of the board of directors. The general counsel and associate general counsel – global compliance, labor and employment serve as chair and co-chair, respectively, of the S&C Compliance Committee, which includes global leaders from each area of the business and members of our senior leadership team. S&C’s Required Ethical Standards, Code of Business Conduct provides team members with guidance on making ethical business decisions and complying with all applicable laws, rules, standards, best practices, and regulations in the jurisdictions and communities in which we operate.
Team members complete annual training on our Required Ethical Standards, Code of Business Conduct, which codifies our approach, responsibilities, and commitments to: • Understand customer needs to provide the best possible service • Behave ethically at all times to foster trust, dignity, fairness, and respect among team members, customers, and suppliers • Maintain workplace safety • Seek ways to reduce S&C’s environmental impact and uphold our high standards of product and service quality • Comply with all applicable laws, rules, standards, best practices, and regulations and protect S&C’s assets Team members are encouraged to report any work-related behavior that may be a violation of the law, our policies, or ethical standards in person, in writing, or through S&C’s anonymous hotline, which is operated by an independent, third-party provider.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Corporate Governance S&C makes decisions for the long-term benefit of our team members while aligning with our sustainability objectives. We believe strong corporate governance is central to this commitment and the success of our business. Guided by S&C’s board of directors and led by senior leadership, we prioritize risk mitigation and ethical business practices throughout the organization to serve the interests of our team members, customers, and other stakeholders. Board of Directors S&C’s board oversees the strategic direction and operational performance of the company in addition to leading senior leadership succession planning. The board supports the long-term interests of team members and, in keeping with our Values & Guiding Principles, considers our full range of stakeholders in decision-making.
Board members are accomplished leaders from diverse backgrounds and bring the unique perspectives, skills, and experience necessary to provide effective oversight. The board is led by chair John Estey, former S&C president and CEO. As of year-end 2024, 30 percent of the board members are diverse in race, ethnicity, or gender.
When selecting new board members, the board’s governance committee uses a detailed skills matrix to invite all perspectives to guide the business. The trustee of the ESOP component of the S&C 401(k) Retirement Savings and Employee Stock Ownership Plan (KSOP) ratifies the election of all board members.
SUMMARY OF BOARD COMMITTEE OVERSIGHT
Board Committee Oversight Responsibility
Assists the board in overseeing board structure and governance practices, including: • Ensuring board skills and experience align with the company’s strategy and needs • Ensuring new directors receive sufficient and appropriate orientation and opportunities for continuing director education • Making sure the board engages in an objective and self-critical evaluation of its individual and collective performance Assists the board in carrying out its overall responsibility relating to human resources and compensation, including: • Executive compensation, including compliance and programs • Leadership development and succession • Broadly applicable human resource, compensation, and benefit programs Assists the board with matters involving accounting, financial reporting, internal control, and risk management, with oversight of: • The integrity of S&C’s financial statements • The performance of S&C’s financial function and strength of internal controls regarding financial reporting and accounting • S&C’s compliance with legal and regulatory requirements applicable to financial matters • Compliance with S&C’s Guiding Principles and Required Ethical Standards, Code of Business Conduct • Together with S&C leadership, periodic review of certain business risks delegated and assigned to the committee by the board under the company’s enterprise risk management program
Governance
Human Resources and Compensation
S&C’s Governance Policies • Required Ethical Standards, Code of Business Conduct • Supplier Code of Conduct • DE&I Statement • Quality Policy • Environmental Policy
Audit and Compliance
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Executive Leadership Team Under the direction of the board, S&C’s executive leadership team sets and executes our corporate strategy to provide long-term value for our customers and team members. The executive leadership team creates the roadmap for innovation, accountability, and continuous improvement in line with business strategy and sustainability objectives. These objectives include increasing the diversity of our leadership team. As of year-end 2024, 33 percent of our executive leadership is diverse in terms of gender, race, or ethnicity.
Expanding Collaboration and Advocacy To better foster industry collaboration and advocacy, S&C’s government relations function studies key legislation and regulations that impact our industry. This function’s primary focus is on policy analysis and educational outreach to third-party stakeholders on industry issues relevant to our business. Led by the government affairs director, this team also monitors and engages in a variety of legislative and regulatory efforts at the federal, state, and local levels and tracks federal funding initiatives for grid modernization. S&C maintains relationships with key advocacy groups to support our government relations efforts: • Advanced Energy United (AEU) • American Public Power Association (APPA) • Edison Electric Institute (EEI) • Employee-Owned S Corporations of America (ESCA) • GridWise Alliance • National Association of Manufacturers (NAM)
• National Electrical Manufacturers Association (NEMA) • National Rural Electric Cooperative Association (NRECA) • The ESOP Association (TEA)
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Enterprise Risk Management Our Enterprise Risk Management (ERM) program identifies, monitors, and manages internal and external business risks. Risk identification, assessment, and monitoring are designed to facilitate effective decision-making and drive business performance. In addition to our ERM, S&C’s information technology risk management team focuses on overseeing cybersecurity and protecting our operations, sensitive information, and customer data. The board reviews cybersecurity matters and strategy on a quarterly basis. The corporate cybersecurity council, with senior leadership representation, meets monthly to review all elements of our cybersecurity strategy, key risk indicators, and the latest cyber-related events. Cybersecurity S&C’s cybersecurity program governs the handling, storage, and deletion of all printed and digital information regarding business activities. Team members are required to manage private and confidential information with care and in accordance with our documented processes and all applicable laws and regulations. We require personal or confidential information to be properly safeguarded and used for business purposes only. This includes nonpublic or private information about S&C, as well as our team members, customers, suppliers, and contractors. All team members are also responsible for adhering to our privacy and cybersecurity policies. Each team member with access to external internet and email is required to complete cybersecurity awareness training. Formal, role-based training is provided to team members as needed.
In 2024, we worked to mature our management of cybersecurity risk and continue aligning our policies with the International Organization for Standardization (ISO) 27001. Specific areas of focus included improving our incident response plan (IRP), streamlining our security alert processing, mitigating our exposure to system vulnerabilities, and enhancing our processes and controls for access management and software updates. We also conducted an IT system audit to conform with ISO 27001 and validate enhancements to our information security management system (ISMS). To meet and exceed the requirements of ISO 27001, we instituted corrective action plans as needed to strengthen our supplier risk management process and data classification standards. In addition, we are conducting strict reviews of policies that govern our IT practices and processes.
S&C 2024 Sustainability Report
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
People-First Culture
People are at the heart of S&C’s success, and we are proud to promote a culture where team members can grow in their careers and contribute to the communities we serve. From our recruitment practices to the benefits we offer, we invest in building an inclusive culture and helping our team members succeed.
In This Section • Talent Attraction and Retention • Team Member Engagement and Long-Term Career Development • Respect for People • Team Member Well-Being • Social Impact and Community Engagement
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Talent Attraction and Retention
RECRUITING AND RETAINING TOP TEAM MEMBERS
We are dedicated to providing long and meaningful careers for our team members. Our average U.S. team member tenure is 8.2 years , and our average tenure globally is 8.3 years – nearly twice the average tenure for U.S. and global employees. 1 We honor team member milestones, including our Quarter Century Club, which celebrates team members who achieve 25 years of service to S&C. In 2024, we inducted 62 team members across the globe into the club.
Welcoming Guests to National Manufacturing Day Event In October 2024, we hosted our second National Manufacturing Day open house and welcomed more than 450 students and community members to our Chicago campus. The event included product demonstrations, a tour of our in-house robotics lab, and opportunities to learn about manufacturing careers. Attendees were able to network, connect with S&C team members, and learn more about the company and potential careers. Additionally, we partnered with the Rogers Park Historical Society for a presentation about being an environmentally conscious citizen.
As an employer of choice, we focus on key objectives that help us meet our need for talent, now and in the future. These objectives include strategic workforce planning, cultivation of nontraditional candidate pipelines, proactive campus recruitment, grassroots recruitment partnerships, and comprehensive hiring, promotion, and retention tools. Relationships we cultivate and maintain with local and national partners, as well as key programs and talent populations, play an essential role in attracting talent to S&C. These relationships include: • National industry associations, including Women in Manufacturing, National Society of Black Engineers, Society of Women Engineers, and Institute of Electrical and Electronics Engineers. • A placement program for veterans, established in 2024 through the Department of Defense (DOD) SkillBridge program. SkillBridge connects transitioning service members with industry partners in real-world job experiences. S&C initiated a partnership with the program to offer training and positions as machinists or field services technicians. We welcomed four team members in 2024 through this program. • Internships and co-ops for 39 college students, as well as special events such as coffee chats with our executive team, product demonstrations, and networking events. • Early talent opportunities for 56 high school students via a summer job program and a job shadow week, as well as frequent career-focused outreach events at local schools and colleges.
In 2024, S&C hosted 135 community hiring events, attended 69 career outreach events at local schools, and welcomed 89 hires from community partnershipsand outreach activities.
1 The Bureau of Labor Statistics reported that the average career tenure for a U.S. employee in 2024 was 3.9 years, while the International Labour Organization noted the global average career tenure was 4.2 years.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Team Member Engagement and Long-Term Career Development
We aim to support every team member in reaching their full potential while they are at S&C. As such, we provide engagement and career growth opportunities, talent development programs, educational support, and a comprehensive performance management process. IMPROVING OUR WORKPLACE THROUGH TEAM MEMBER FEEDBACK Our culture of continuous improvement is fueled by feedback and insights from our team members. We ask team members for their honest, anonymous feedback through our annual engagement survey. This survey is conducted via a trusted third-party provider to ensure team members feel comfortable sharing their experiences.
Survey results help us identify strengths and develop action plans to address opportunities for improvement at the enterprise level and within functions. Feedback from the 2023 engagement survey inspired the following initiatives in 2024: • Comprehensive rewards statements: We implemented total compensation statements for U.S. employees in the fall. These statements include a comprehensive view of S&C’s employee contributions, including compensation and benefits, and will be an important tool for attraction and retention. • Retention improvement efforts: We conducted interviews and focus groups to gather insight on ways to improve team member retention. This effort resulted in action plans to be implemented in 2025. • Recognition platform: We developed, and introduced in 2025, a global platform where team members can provide each other with positive recognition. Recipients can choose to redeem their awards for merchandise, gifts, experiences, or charitable contributions.
2024 Engagement Survey Highlights Our 2024 global engagement survey, encompassing both salaried and hourly team members, recorded an 81 percent response rate. Highlights include: • 90 percent of team members believe S&C is committed to team member safety. • 89 percent of team members feel comfortable reporting any safety concern, large or small. • 84 percent of team members have a clear understanding of what is expected of them at work. • 83 percent of team members believe S&C is taking action to be socially responsible. • 82 percent of team members feel that they are treated with respect at work. • 82 percent of team members believe that S&C shows a commitment to ethical business decisions and conduct.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
TEAM MEMBER TRAINING AND LEADERSHIP DEVELOPMENT S&C provides critical training for team members throughout the year. Programs required for all team members are focused on health and safety, information security, and our Required Ethical Standards, Code of Business Conduct. Our core development and leadership training programs provide knowledge-building and skill-development opportunities to help team members progress in their careers. Through a variety of programs that target different goals, skills, or team member populations, our training and development structure empowers all team members to grow and develop at S&C.
Continuous Improvement of Our Work Elements Program In 2024, we completed our first phase of improvements to Work Elements, our skill-based pay program for production team members. Improvements included a new learning track that offers team members the opportunity to become specialized trainers in standard work procedures. Based on team member interest, we also began a new partnership with Oakton Community College to offer expanded equipment maintenance training to supplement our on-the-job offerings. Our second phase of improvements to the Work Elements program will focus on reengaging our team members with this training program via a variety of learning aids. In addition, new team member onboarding will provide a more thorough overview of Work Elements to educate team members about this development opportunity.
SIGNATURE TRAINING AND DEVELOPMENT PROGRAMS BY THE NUMBERS
Manufacturing Work Elements 1,226 skill certifications earned in 2024 – a 34% increase over 2023.
Leadership Development Program 99 team members participated in 2024 – more than double the number of participants in 2023. In addition, five past program participants were promoted to leadership.
Team Member Training 62,657 training hours completed globally across all programs – a 31% increase over 2023.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Respect for People
ENHANCING TEAM MEMBER DIVERSITY S&C promotes a culture of respect for all team members across the globe, regardless of race, ethnicity, religion, sex, age, sexual orientation, gender identity, national origin, disability, veteran status, marital status, or diversity of thought. We participate in several initiatives to engage a diverse talent pool at S&C, including: • Improving our recruitment and retention efforts by broadening our talent pools and recruiting through partnerships • Promoting participation in our team member affinity groups, development programs, and other resources that help team members feel appreciated, accepted, and supported • Identifying opportunities to improve our recruitment and retention efforts
2024 DIVERSITY AT A GLANCE
Respect for People is fundamental to our Values & Guiding Principles and the foundation of our company culture. Our DE&I Statement highlights our dedication to advancing an inclusive and equitable workforce: At S&C, everyone is essential. We believe diverse, inclusive teams empower each other to innovate and do their best work. Together, we drive for equity to build meaningful, challenging careers and to care for our communities and each other. We celebrate our successes, learn and grow from our mistakes, and inspire each other to create the grid – and workplace – of the future.
RACIAL DIVERSITY – U.S. Only All
New Hires Hourly
Salary Leadership
White Black Asian
36.3% 17.3% 14.4%
29.3% 22.9%
60.7%
60.1% 9.3% 13.3% 16.0%
19.4% 14.0%
22.7% 13.3%
7.3%
16.5% 13.8%
Hispanic
29.8% 34.0% 38.6%
American Indian/ Alaska Native Native Hawaiian/ Other Pacific Islander
0.2%
0.5%
0.4%
0.0%
0.0%
0.2%
0.0%
0.2%
0.0%
0.0%
Two or More
1.8%
2.8%
1.9%
1.7%
0.5%
GENDER DIVERSITY – Global All
New Hires Hourly
Salary Leadership
Female
21.2% 22.8%
18.9% 25.0% 20.2%
Male
78.7%
76.8%
81.0%
74.9%
79.8%
Nonbinary 1
0.1%
0.4%
0.1%
0.1%
0.0%
DE&I Council Establishes Formal Purpose
1 Only S&C’s locations in Asia Pacific, the U.S., and Mexico report on nonbinary gender identity.
AGE DIVERSITY – Global All
Our DE&I Council includes 18 team members with diverse experiences and roles across our organization. Through active collaboration with the council, S&C leadership and human resources create and implement DE&I roadmaps, programs, and policies that align with our Values & Guiding Principles. In 2024, the council formalized its purpose – to cultivate a truly inclusive environment at S&C. This purpose is built on four pillars:
1. Listening to our team members and empowering their voices 2. Amplifying our Values & Guiding Principles, as well as our DE&I Statement 3. Sharing our journey through metrics and authentic storytelling 4. Offering diverse perspectives on policies
New Hires Hourly
Salary Leadership
Under 30 30 to 50 Over 50
15.5% 38.6%
17.9%
11.7%
1.4%
48.8% 35.7%
47.2% 45.2% 54.6% 54.2%
14.2% 36.9%
33.7%
44.4%
ADDITIONAL DEMOGRAPHICS – U.S. Only All New Hires Hourly
Salary Leadership
Veteran status
2.0% 5.3%
1.7%
2.0% 4.8%
2.0% 6.1%
2.9% 5.1%
Disability
8.0%
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
PROVIDING A WORK ENVIRONMENT OF INCLUSION AND EQUITY
S&C is Powered by Diversity at DISTRIBUTECH S&C continues to advance the DE&I discussion at DISTRIBUTECH International, the leading transmission and distribution event for utilities, technology providers, and industry leaders. At our annual S&C Powered by Diversity event, Anders Sjoelin, our president and CEO, led a discussion with two other leaders in the electrical industry. The panelists noted that building a culture where DE&I is ingrained into everyday work is challenging, but when done with intentionality, the work can significantly improve employee engagement and performance. In addition, Rappahannock Electric Cooperative was awarded the annual S&C Powered by Diversity Award, which honors an electric utility that demonstrates outstanding achievements in diversity, equity, and inclusion in the workplace.
We provide learning opportunities that promote an accepting, inclusive environment. In 2024, our Connecting with Others hands-on workshop expanded internationally to our locations in Mexico and Canada. Ninety-two percent of S&C leaders have gone through the training since its first session in 2022. We also regularly evaluate our benefits and resources to ensure that we remain competitive as an employer of choice. To support our efforts, we educate leaders about pay equity and use pay ranges to align skills and performance with compensation. Our status as an ESOP promotes equity by allowing team members to benefit from and see the value of their contributions to the company’s success.
S&C was recognized as a Hire Our Heroes Certified Employer for our newly formed partnership with the Department of Defense SkillBridge program. Through this partnership, we support veterans with long-term, fulfilling careers in manufacturing.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
• Franklin Connections continued their annual support for the Hunger Task Force with nearly 300 pounds of in-person food donations and monetary support of over $3,000. These donation totals were nearly double what the group contributed in 2023. • S&C Toastmasters held 24 events in 2024, including sponsorship of a booth at a hiring event to promote group membership as an option to enhance the S&C employee experience. • The Inclusion, Diversity, Engagement & Awareness (I.D.E.A.) Group collected more than 500 school supplies for Chicago Public Schools via their annual back-to-school drive. • Spectrum’s annual Pride Walk raised awareness for the group and the broader LGBTQ+ community. More than 80 team members attended the event.
AFFINITY GROUPS ENHANCE THE TEAM MEMBER EXPERIENCE S&C’s affinity groups provide connection and learning opportunities for team members. From professional development sessions and social events to affinity month awareness, our groups offer in-person and virtual programming throughout the year to encourage team member engagement. The groups also support efforts led by individual team members who want to make an impact in their local communities. More information on these initiatives can be found in Social Impact and Community Engagement. Affinity group highlights from 2024 include: • The Wellness Action Team Toronto (WATT) group participated in the annual Terry Fox Run to raise money and awareness for cancer research. With a match from S&C, the team’s donation totaled $1,950. • S&C Connects hosted multiple events each quarter, including a fireside chat with Nicole Colen, our new Chief Human Resources Officer. • The Women’s Empowerment Group (WEG) organized multiple events around breast cancer awareness, including a panel discussion where team members had the opportunity to learn from survivors about their experiences. • The Canadian Women’s Group honored International Women’s Day. All team members were welcome, and participants shared inspiring stories about the women in their lives.
attended events organized by S&C Connects in 2024. Nearly 700 team members
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
We embrace a holistic view of team member well-being, offering resources, programs, and policies that support mental, physical, and financial health. These include: • Medical plan benefits • Retirement and savings plans, including our 401(k) + ESOP benefit • Employee assistance programs • Health and wellness digital platforms • On-site health services • Financial planning services Team Member Well-Being
COMPENSATION AND BENEFITS Our total rewards program prioritizes the needs of our team members, aligns with our Guiding Principle of Respect for People, and helps us attract and retain strong talent. Progress made in 2024 on our global total rewards strategy and roadmap includes: • Working with a third-party partner to assess current plans and gather recommendations for improvement • Assembling a cross-functional team to develop a new global recognition and reward program that is aligned with our Values & Guiding Principles • Expanding resources for team members in the U.S. and Canada focused on mental, physical, social, and financial well-being
BENEFITS PACKAGES FOR U.S. TEAM MEMBERS
Education Reimbursement
Health & Wellness
Vacation & Holidays
Wellness Program
Other Benefits
Retirement Savings
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
Our history of community engagement dates back to the 1920s, when one of S&C’s founders, Nicholas Conrad, joined other business leaders to found the United Way of Metropolitan Chicago. Over the following decades, S&C built on this tradition of philanthropy by forming strong relationships with a variety of community organizations that operate where we live and work. Through our Annual Giving Campaign, individual team member-led initiatives, and the S&C Electric Company Fund, we aim to make a difference by funding meaningful community projects. Social Impact and Community Engagement TEAM MEMBER-LED INITIATIVES We empower our team members to support organizations and causes that hold meaning to them. In 2024, our team members led initiatives that resulted in the following: • $9,750 donated via the JP Morgan Challenge, a race held in the Chicago Loop, with proceeds benefiting Hope Chicago
• $1,500 raised in support of the Active Transportation Alliance by participating in Bike the Drive in Chicago • 60 blankets made for a local chapter of Project Linus • 298 pounds of clothing donated to New Circles, a Canadian nonprofit that provides support and skills training for newcomers, refugees, and other deserving families and individuals • 200 toiletry items and $1,300 in food items collected for Between Friends, a nonprofit dedicated to preventing domestic violence • 190+ toys collected for Toys for Tots • 228 units of blood donated to the American Red Cross
2024 ANNUAL GIVING CAMPAIGN RESULTS
U.S. Giving Campaign • $320,000 raised by team members • $2.4M+ raised since 2019 • Proceeds donated to: - CHC: Creating Healthier Communities - Feeding America - Misericordia Heart of Mercy - United Way
Canada Giving Campaign • $13,000 raised by team members • $25,000 raised since 2023 • Proceeds donated to:
- Daily Bread Food Bank - Habitat for Humanity - Sierra Club Canada - United Way
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
GRI INDEX
THE S&C ELECTRIC COMPANY FUND The S&C Electric Company Fund provides grants to local and national nonprofit organizations. Through the Fund, we support basic human needs, STEM (science, technology, engineering, and math) education, the arts and humanities, mental health services and support, domestic violence survivor resources, natural disaster relief, and more. In addition to our Annual Giving Campaign, which is matched by the S&C Fund, philanthropic causes that received support from the Fund in 2024 included: • American Red Cross • American Writers Museum • Big Brothers/Big Sisters of Metropolitan Chicago • Care for Real, which addresses food insecurity • Chicago Public Library Foundation • Chicago Symphony Orchestra • Jane Addams Resource Corporation, providing manufacturing job training • Joules Accelerator, an organization that supports climate tech startups • Junior Achievement of Chicago
In 2024, the S&C Electric Company Fund’s philanthropic support totaled more than
in support of more than $1 million 50 recipient organizations.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
GRI INDEX
Operational Excellence
Our Value & Guiding Principle of Responsible Stewardship drives how we manage the environmental impact of our business activities. We leverage leading standards and frameworks to help reduce our environmental footprint and conserve natural resources.
In This Section • Team Member Health and Safety • Emissions Reduction • Energy Efficiency • Waste Management • Air Quality • Water Conservation and Security • Supply Chain Management
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CUSTOMER-CENTERED INNOVATION
INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
GRI INDEX
Team Member Health and Safety
ORGANIZATIONAL OWNERSHIP FOR HEALTH, SAFETY, AND ENVIRONMENT Our HSE team is responsible for executing and monitoring the success of our global safety strategy, policies, and procedures. At the beginning of 2024, we restructured the team to create separate pillars for ownership of safety and environmental initiatives. This new structure has streamlined communication, enhanced support for operations leaders and team members, reduced workplace incidents, and lessened our environmental impact.
Safety Action Teams Drive Shared Responsibility S&C has 14 safety action teams (SATs) that engage team members in identifying and remediating potential safety risks. All team members have an opportunity to serve on an SAT for their department or team on a rotating basis. SAT responsibilities include: • Completing regular “Go-and-See” inspections and addressing any safety concerns that are identified • Managing our Quick-Fix program, which addresses problems or hazards that can be addressed immediately • Organizing safety awareness and promotion campaigns • Providing targeted safety programs based on data analysis • Conducting accident/incident investigations and reporting findings • Owning progress and resolution of identified safety improvement opportunities We also have a Safety Steering Committee, composed of one representative from each SAT as well as senior leaders from production operations. The committee meets regularly to review each team’s progress and share best practices.
Respect for People is a fundamental Value & Guiding Principle and forms the foundation for our companywide safety goal: to be injury free. We emphasize the importance of safe work practices starting on every team member’s date of hire and reiterate those behaviors throughout their career at S&C. We consider safety a team sport, and we uphold a culture of shared responsibility through a safety-first mentality. Team members are guided by the principle: “If you see something, say something and, most importantly, DO something.”
In 2024, the SATs completed 140 job safety analyses and more than 4,500 quick fixes.
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INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
GRI INDEX
SAFETY PERFORMANCE S&C’s safety-first mindset drives our performance and supports our belief that all injuries are preventable. We track both leading and lagging indicators to gain a holistic picture of our safety data and trends. Leading Indicators We advance leading indicators through team member engagement, promotion of a safety-first culture, and regular safety observations. These practices allow our teams to proactively identify risks, address concerns, and preempt safety issues. Each production leader is required to perform eight safety observations per month.
Lagging Indicators S&C reports and analyzes key lagging indicators, including total case incident rate (TCIR) and days away, restricted, or transferred (DART), to determine the effectiveness of our proactive safety programs. We continually seek ways to reduce our lagging safety indicators. Improved indicators in 2024 reflect multiple initiatives: • Improvements to root cause analyses and investigative techniques • Addition of a worker readiness program to our new hire onboarding process • Safety and ergonomic reviews of equipment and processes • Quicker intervention time and improved management of musculoskeletal injury cases • Leading indicators awareness campaign, led by our principle of “If you see something, say something, and, most importantly, DO something.”
FATALITIES: 0
DART 43
RECORDABLE INJURIES 70
FIRST AID AND NEAR MISS
1,024
LEADERSHIP WORK OBSERVATIONS, HAZARD IDs, GO-AND-SEE ACTION ACTIVITIES
12,455
SAT & TEAM MEMBER ACTIVITIES
28,648
GLOBAL SAFETY PYRAMID 2024 METRICS
LAGGING INDICATORS
In 2024, our production leaders performed 12,455 safety observations overall, 1,038 per month. totaling
Global TCIR 1,2
Global DART Rate 1,2
2.40
2.07
1.52
1.44
1.40
1.30
0.85
0.80
Industry average
2022
2023
2024
2024
Industry average
2022
2023
1 All rates are calculated per 100 full-time workers. 2 Industry averages were sourced from U.S. Department of Labor North American Industry Classification System (NAICS) statistics.
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INTRODUCTION
PEOPLE-FIRST CULTURE
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RESOURCES FOR INJURY PREVENTION AND REDUCTION We emphasize the importance of ergonomics in injury prevention. Our operations team members in the U.S. perform mandatory three-minute warmup sessions twice per day. These warmup exercises reduce the risk of injury by preparing team members for their workday and teaching safe alignment for repetitive tasks such as lifting, bending, pushing, and pulling. We introduced a new routine mid-year that is focused on the upper back, neck, and shoulders. Team members now perform each routine once per day. This multifaceted approach helps prevent musculoskeletal and soft-tissue injuries.
Highlights from OSHA Safe + Sound Week S&C participated in the Occupational Safety and Health Administration’s Safe + Sound Week for the fourth year in a row. Activities at our Chicago, Palatine, Franklin, Toronto, and Mexico locations included educational sessions, vendor information, and more. In addition to stations focused on specific safety topics, S&C Mexico also offered health screenings and routine tests to promote preventive care for our team members.
AS A RESULT OF OUR EFFORTS, S&C RECORDED THE FOLLOWING IN 2024:
41% decrease in OSHA recordable injuries globally 55% decrease in DART cases globally 71% reduction in strains and sprains 79% decrease in lost workdays globally
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INTRODUCTION
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OPERATIONAL EXCELLENCE
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Emissions Reduction
MID- AND LONG-TERM DECARBONIZATION TARGETS
S&C mitigates the environmental impact of our operations through our comprehensive environmental sustainability program, which includes our stated commitment to achieving net zero greenhouse gas (GHG) emissions by 2050. We referenced the Science Based Targets initiative best practices in setting our targets and used the United Nations Sustainable Development Goals (UN SDGs) framework to develop our strategy. This strategy includes initiatives associated with Scopes 1, 2, and 3 emissions reductions.
Emissions
UN SDG
Mid-Term Targets
Long-Term Targets
• Reduce emissions by 85% from 2014 to 2030 • Reduce natural gas use by 30% from 2014 to 2030 • Reduce SF 6 gas emissions by 89% from 2014 to 2030 • Eliminate SF 6 gas use in Scada-Mate® Switching Systems by 2030
• Reduce emissions by 90%–95% from 2014 to reach net zero target by 2050
Scope 1 – Direct
Demonstrating Improvement Through Transparent Reporting We commit to transparency through our annual CDP disclosures. In 2024, we achieved a B score (based on 2023 data). We also participated in a water security disclosure for the first time and received a B-minus score for our conservation efforts.
• Develop roadmap to invest in renewable energy generation by 2025 • 100% electricity generated via owned or leased renewable energy sources by 2030 1
• Evaluate and pursue the
Scope 2 – Indirect Purchased Energy
most effective opportunities for continued investment in renewable energy generation
Year 2018 2019 2020 2021 2022 2023 2024
Score D D D C C
• Develop global baseline by 2025
• To be developed based on the completed Scope 3 baseline
Scope 3 – Indirect Value Chain
B B
1 S&C has purchased renewable energy certificates since 2020 to meet 100 percent of global electricity use. Read more in Energy Efficiency.
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