S&C Electric Company 2023 Sustainability Report

INTRODUCTION

OPERATIONAL EXCELLENCE

PEOPLE-FIRST CULTURE CUSTOMER-CENTERED INNOVATION

GRI INDEX

Product Quality Quality design and manufacturing have been central to S&C’s philosophy throughout our history. We engineer quality, reliability, and durability into every S&C product. Our operations teams follow recognized quality processes to help ensure our products consistently meet customers’ needs and expectations. To drive continuous improvement, we monitor all customers’ experiences through a quality management system and take action to address customer concerns. All S&C manufacturing entities globally are registered and certified compliant with the ISO 9001:2015 quality management system standard. GLOBAL QUALITY TEAM ENSURES STANDARDS IN DESIGN AND PRODUCTION Our global quality team collaborates and proactively engages with our product development team, allocating dedicated resources to new product launches. S&C’s Advanced Quality Planning processes ensure we design with quality, reliability, and durability in mind as new innovations come into production.

Product Safety MONITORING PFAS

Throughout 2023, the global quality team focused on consistency and accuracy by improving documentation and processes, including: • Placing greater emphasis on process control on the production lines, instead of reliance on inspection, to contain defects • Increasing use of Digital Inspection Reports to document process control, testing, and inspection results on production lines • Expanding documentation and enforcement of standard work for every product line • Fostering better collaboration between the global quality team, product engineering team, and the manufacturing and assembly teams to solve problems Key metrics the team measures include out-of-box customer concerns, defects per unit, cost of quality lapses, and the production part approval process. These measures allow us to chart the effectiveness of our quality programs and make adjustments as necessary to drive continuous improvement.

Our responsibility to customers and the environment includes being mindful of the health and environmental considerations of the materials used in our products and operations. Per- and polyfluoroalkyls (PFAS) represent a broad category of materials. As is common in the electrical industry, S&C uses specific PFAS compounds in certain electrical infrastructure products to enhance safety, reliability, and performance. We have established a steering committee and several working groups to gather information and track developments in global-, federal-, and state-level regulations and legislation. In 2023, we engaged in the following: • Canvassing all materials that contain any category of PFAS • Ensuring products do not contain any long-chain PFAS materials identified in the EPA’s existing or proposed rules • Monitoring updates to regulatory efforts to track and limit PFAS • Carefully evaluating use of PFAS materials in new products S&C will continue working with our suppliers to identify PFAS materials used in product components, manufacturing processes, and through our supply chain. We will continue to research alternatives as newer materials are brought to market.

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