S&C Electric Company 2023 Sustainability Report

INTRODUCTION

OPERATIONAL EXCELLENCE

PEOPLE-FIRST CULTURE CUSTOMER-CENTERED INNOVATION

GRI INDEX

Scope 1 Emissions To build on our progress to date, we are focused on addressing two main sources of emissions: the use of SF 6 gas and stationary sources that run primarily on natural gas. Reducing, and eventually eliminating, SF 6 gas: Our sustainability, quality, production operations, and engineering teams are collaborating to implement production technologies and process improvements to reduce emissions that occur during the production of products containing SF 6 gas, and throughout these products’ lifetimes. Longer term, we aim to eliminate SF 6 gas from our products as we continue to develop more sustainable product alternatives. By 2030, we intend to transition our Scada-Mate® Switching Systems from the use of SF 6 gas. We continue to work with our supply chain partners to source and innovate alternative solutions that maintain or exceed the quality and performance our customers expect from S&C. Read more in Product Innovation & Sustainability, including information about our products that do not contain SF 6 gas. Investing in energy efficiency: Most of S&C’s fossil fuel emissions come from stationary sources, such as boilers, heaters, and ovens, at our Chicago and Toronto facilities. With our investments in energy efficiency, we aim to reduce these emissions. For example, in 2023, our Toronto facility conducted an energy audit aimed at uncovering energy efficiency opportunities, which resulted in both no-cost and capital expenditure recommendations (e.g., process-related changes, upgrading equipment, and reducing heat losses). In 2024, we will implement applicable energy efficiency improvements identified by the audit. We also plan to conduct an audit at our Chicago campus to identify and implement energy efficiency improvements. We developed specific strategies to reduce our Scopes 1 and 2 emissions, and we have worked to better understand our Scope 3 emissions to achieve our decarbonization targets, as outlined below:

Scope 1 Net Zero Roadmap (MT CO 2 e)

76,828

Historical reduction

19,359 (-75%)

11,524 (-85%)

Reduce SF 6 to 25/year Reduce natural gas by 15%

3,841 (-95%)

Eliminate SF 6

2014

2023

2030

2040-2050

S&C roadmap to reach net zero Scope 1 emissions by 2050

15

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