CUSTOMER-CENTERED INNOVATION
INTRODUCTION
PEOPLE-FIRST CULTURE
OPERATIONAL EXCELLENCE
GRI INDEX
Energy Efficiency
NATURAL GAS USE We use natural gas, primarily in our Chicago and Toronto facilities, for building heating systems and manufacturing processes, including boilers and curing ovens. To reduce natural gas use by 30 percent by 2030, we mitigate and reduce use through green building practices, ventilation systems, increased automation, equipment upgrades and replacements, and use of high-efficiency boilers where possible. In 2024, we completed a study at our Chicago facility to identify potential equipment upgrades and/or optimization to reduce our reliance on natural gas. As a result, five projects were identified and submitted for capital implementation in 2025, which can save up to 250,000 kg CO 2 e a year. Our strategy to reduce natural gas usage also includes retiring old steam systems, which is currently in progress. We will also focus on designing high-efficiency equipment when replacing old systems rather than retrofitting them.
Energy efficiency is a key component of our decarbonization strategy and our commitment to reducing our environmental footprint. We reduce our emissions through capital improvement projects to drive efficiency, including automation systems, LED lighting, equipment upgrades, green building practices, and electric vehicles (EVs) and charging stations. We implemented the following initiatives in 2024: • Achieved LEED Silver certification at our newly renovated and expanded Palatine operations • Installed four new EV chargers at our Palatine facility and started the approval process for two electric security vehicles and chargers for our Chicago campus • Converted 95 percent of our 46-acre Chicago campus to LED lighting • Remedied 100 percent of air leaks identified by a study at our Canada facility • Optimized the HVAC settings in our Baglan facility to reduce electricity usage by 26 percent • Began installation of LED lighting in our China facility, which is on track to be 100 percent LED by the end of 2025 • Conducted a natural gas optimization study at our Chicago operations, identifying five capital projects for implementation in 2025
S&C 2024 Sustainability Report
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