S&C Electric Company 2023 Sustainability Report

INTRODUCTION

OPERATIONAL EXCELLENCE

PEOPLE-FIRST CULTURE CUSTOMER-CENTERED INNOVATION

GRI INDEX

RENEWABLE ENERGY As a longstanding member of the U.S. Environmental Protection Agency’s (EPA) Green Power Partnership, S&C supports the development of renewable energy sources, such as wind, solar, geothermal, biogas, eligible biomass, and low-impact hydropower. S&C has purchased renewable energy certificates (RECs) since 2012 as part of our effort to source cleaner energy. Since 2020, 100 percent of our global electricity is sourced from RECs, resulting in zero Scope 2 market-based emissions. NATURAL GAS USE We use natural gas, primarily in our Chicago and Toronto facilities, for heating in the winter and in our manufacturing processes, including boilers and curing ovens. In support of our goal to reduce natural gas use by 30 percent by 2030, compared to our 2014 baseline, 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. ENVIRONMENTAL CONSIDERATIONS IN OUR FACILITIES S&C follows green building standards, with three of our U.S. buildings certified with the Leadership in Energy and Environmental Design (LEED®) building framework. As our business grows and we expand our physical footprint, sustainability remains a significant consideration in the construction, upgrade, and enhancement of our facilities and processes. In 2023, we announced the expansion of our U.S. footprint with a 275,000-square-foot facility in Palatine, Illinois. With the facility expected to be fully operational in 2024, this expansion in capacity enables us to meet increasing demand for technology that makes the electrical grid more resilient and reliable. We are seeking LEED certification for the facility, marking the first time S&C has pursued this certification for a leased building. The expansion will also enable EV charging for personal and fleet vehicles.

Global Natural Gas Use (Therms in Millions)

1.72

1.64

1.49

1.45

1990s

2021

2022

2023

Global Natural Gas Usage Intensity (Therms/$ Million Revenue)

2022

2023

2021

-49%

-51%

-62%

VARIANCE FROM 2014

19

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