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 2025 Sustainability Report details S&C Electric Company’s sustainability vision, strategy, key milestones, and achievements. The Report covers the period from January 1, 2025, to December 31, 2025, except where otherwise noted.
Engineered for the Future POWERED BY PEOPLE,
2025 SUSTAINABILITY REPORT
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INTRODUCTION About This Report CEO Message Our Sustainability Strategy Ethics, Integrity, and Governance
7 PEOPLE-FIRST CULTURE Talent Attraction and Retention Team Member Engagement and Long-Term Career Development Respect for People Team Member Well-Being Social Impact & Community Engagement 11 OPERATIONAL EXCELLENCE Team Member Health & Safety Emissions Reduction Energy Efficiency Waste Management Air Quality Water Conservation Supply Chain Management 16 CUSTOMER-CENTERED INNOVATION Product Innovation and Sustainability Product Quality 18 DATA SUMMARY 21 GRI INDEX
TABLE OF CONTENTS
OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
DATA SUMMARY
GRI INDEX
INTRODUCTION
PEOPLE-FIRST CULTURE
INTRODUCTION
About This Report This 2025 Sustainability Report details S&C Electric Company’s sustainability vision, strategy, and key achievements. The Report covers the period from January 1, 2025, to December 31, 2025, except where otherwise noted. In 2025, we advanced our strategy while strengthening sustainability reporting and disclosures, focusing on the issues most important to our business and stakeholders. This report is aligned with the Global Reporting Initiative (GRI) standards and other established sustainability reporting frameworks, including the United Nations Sustainable Development Goals.
ABOUT S&C ELECTRIC COMPANY 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 global workforce develops and manufactures innovative solutions for a more intelligent and resilient electrical distribution grid. Building on this legacy of technology leadership, S&C empowers the transformation of the grid by delivering innovative solutions for a more reliable and sustainable energy future. Learn more at sandc.com.
S&C AT A GLANCE
Founded in 1911
Headquartered in Chicago, Illinois
Operations in the U.S., Australia, Brazil, Canada, China, Mexico, and the U.K.
Employs 4,200+ team members globally
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CEO Message
The work we do matters. Electricity supports nearly every part of modern life, and we rely on resilient infrastructure to keep power flowing to homes, hospitals, businesses, and communities.
At S&C, resilience is fundamental to our technologies and who we are as an organization. That resilience is built on a foundation of safety. Keeping our people safe is our highest priority. It shapes how we operate, how we engage with our team members, and how we make decisions across the company. A strong safety culture drives quality, greater accountability, and high-performing teams. In 2025, our focus on safety delivered meaningful progress. We reduced our global Total Case Incident Rate (TCIR) by 15 percent and our Days Away, Restricted, or Transferred (DART) rate by 20 percent. Across our manufacturing locations, team members identified and addressed more than 7,000 potential safety issues before incidents occurred. These results reflect a culture of ownership and shared accountability. Our employee engagement survey results highlight the strength of our culture. With an 84 percent participation rate in our annual survey, 89 percent of team members said S&C is committed to their safety. Eighty-one percent said they are treated with respect at work and that S&C demonstrates ethical business conduct. Together, this feedback shows the people-first approach that has long defined S&C. Our employee ownership business model strengthens our culture. Through our 401(k) and Employee Stock Ownership Plan (KSOP), team members share directly in the value they help create. Ownership instills accountability and a shared focus on responsible decision-making that delivers long-term value.
This culture is reflected in what we call the S&C Way. It defines how we work together and deliver results. It keeps our focus on four priorities: safety, quality, innovation, and stewardship. These priorities guide how we manage risk, invest for the future, develop our people, and serve our customers and communities. The S&C Way also extends beyond our operations. In 2025, our Annual Giving Campaign and company match raised more than $376,000 across the United States and Canada. The S&C Fund contributed more than $1 million to nearly 100 organizations supporting disaster relief, food security, STEM education, and other community needs. We are proud of the work we do to keep our grid, our communities, and our company strong and resilient. By leading with safety, investing in our people, and operating the S&C Way, we strengthen our ability to empower people to transform the grid. Thank you to our team members, customers, and partners for the trust you place in S&C.
“ By leading with safety, investing in our people, and operating the S&C Way, we strengthen our ability to empower people to transform the grid.
Anders Sjoelin President & Chief Executive Officer S&C Electric Company
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Our Sustainability Strategy Guided by our Purpose, Vision, and Mission, and driven by our Values & Guiding Principles, we align our sustainability strategy and pillars with S&C’s corporate strategy and decision-making. This approach supports our efforts to transform the grid for a more resilient and reliable energy future while caring for our team members, customers, and the communities in which we work. As part of our sustainability strategy, we work closely with our customers to deliver solutions for more reliable and resilient electrical distribution. Through these relationships, we address the ever-evolving needs of our industry, stakeholders, and planet by developing new innovations to enable a sustainable energy future.
SUSTAINABILITY GOVERNANCE S&C’s president and chief executive officer (CEO) oversees our sustainability strategy, with roles and accountability established throughout the organization.
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 – safety and environmental services Develops and advances our comprehensive sustainability strategy
Senior Manager – Safety & Environmental Services Manages S&C’s environmental sustainability strategy while supporting companywide initiatives and continuous improvement efforts
Team Members Implement programs and initiatives in support of our sustainability commitments
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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.
Customer-Centered Innovation Developing innovative and resilient solutions to navigate a rapidly evolving energy landscape and help our customers keep the power on around the world. • Product Innovation and Sustainability • Product Quality
Operational Excellence Embracing our Value & Guiding Principle of Responsible Stewardship to demonstrate our commitment to sustainability in our solutions and across all areas of our operations. • Team Member Health and Safety • Emissions Reduction • Energy Efficiency • Waste Management • Air Quality • Water Conservation and Security • Supply Chain Management
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 Development • Respect for People
• Team Member Well-Being • Compensation and Benefits • Social Impact and Community Engagement
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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. Our Values & Guiding Principles drive our actions and reinforce our reputation as a trusted partner and employer. Our associate general counsel for global compliance, labor and employment, and our senior ethics and compliance specialist oversee our compliance program, policies, and procedures. They 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 for global compliance, labor and employment serve as chair and co- chair, respectively, of the S&C Compliance Committee, which includes global business leaders 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 decisions and complying with all applicable laws, rules, standards, best practices, and regulations in the jurisdictions in which we operate. Team members complete annual training on our Required Ethical Standards, Code of Business Conduct. We encourage reporting of any work-related behavior that may violate the law, company policies, or ethical standards, whether in-person, in writing, or through S&C’s anonymous hotline operated by an independent third-party provider.
CORPORATE GOVERNANCE Guided by S&C’s board of directors and senior leaders, we prioritize risk mitigation and ethical business practices to serve our team members, customers, and other stakeholders. Board of Directors S&C’s board, led by chair John Estey, former S&C president and CEO, oversees the company’s strategic direction and operational performance and leads senior leadership succession planning. The board supports the long-term interests of team members
and, in keeping with our Values & Guiding Principles, considers our stakeholders in decision-making. Board members are accomplished leaders who bring unique perspectives, skills, and experience to provide effective oversight. When selecting new board members, the board’s governance committee uses a detailed skills matrix to ensure diverse representation in guiding the business. The trustee of the ESOP component of the S&C 401(k) Retirement Savings and Employee Stock Ownership Plan (KSOP) ratifies all board elections.
SUMMARY OF BOARD COMMITTEE OVERSIGHT Board Committee
Oversight Responsibility
Governance
Assists the board in overseeing board structure and governance practices, including: • Ensuring board skills and experience align with the company’s strategy • 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 • S&C’s Internal Audit function, including approval of its mandate, role, responsibilities, and annual risk-based Internal Audit Plan
Human Resources and Compensation
Audit and Compliance
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GOVERNMENT RELATIONS AND ADVOCACY S&C’s government relations team monitors legislation and regulations affecting our industry, conducts policy analysis, and leads educational outreach to third-party stakeholders. Led by the government affairs vice president, the team monitors and engages in legislative and regulatory efforts at the federal, state, and local levels, including tracking federal funding initiatives for grid modernization. S&C maintains relationships with key advocacy groups to support our government relations efforts. These groups include: • Advanced Energy United (AEU) • American Public Power Association (APPA) • Edison Electric Institute (EEI) • Employee-Owned S Corporations of America (ESCA) • The ESOP Association (TEA) • GridWise Alliance • National Association of Manufacturers (NAM) • National Electrical Manufacturers Association (NEMA) • National Rural Electric Cooperative Association (NRECA) ENTERPRISE RISK MANAGEMENT Our Enterprise Risk Management (ERM) program identifies, assesses, and manages internal and external business risks to support effective decision-making and drive business performance. Cybersecurity risk is integrated into our broader ERM framework and subject to board-level oversight.
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 team members and customers. The executive leadership team creates the roadmap for innovation, accountability, and continuous improvement in line with business strategy and sustainability objectives.
CYBERSECURITY S&C’s cybersecurity program governs the handling, storage, and disposal of digital business information to protect our operations, sensitive data, and team member and customer information. The board reviews cybersecurity strategy and risk matters on a quarterly basis. The Corporate Cybersecurity Council, with senior leadership representation, meets monthly to evaluate our cybersecurity strategy, key risk indicators, and emerging threats. Our Information Technology Risk Management (ITRM) team oversees day-to-day cybersecurity. All team members are required to manage private and confidential information in accordance with our documented policies and applicable laws and regulations. Personal and sensitive data relating to S&C, our team members, customers, suppliers, and contractors must be safeguarded and used for authorized business purposes only. Those with internet and email access are required to complete cybersecurity awareness training, with additional role-based training provided as appropriate. In 2025, we obtained our International Organization for Standardization (ISO) 27001 certification, validating the maturity of our policies and information security management system (ISMS). We also significantly progressed our efforts in continuous improvement by enhancing key security controls and strengthening access governance through a privileged access management initiative for critical roles.
S&C’S GOVERNANCE POLICIES • Purpose, Vision, Mission, Values, and Guiding Principles • Required Ethical Standards, Code of Business Conduct • Supplier Code of Conduct • Quality Policy • Environmental Policy
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At S&C, we foster a workplace where team members build meaningful careers, grow their skills, and make an impact transforming the grid. Through intentional hiring, competitive benefits, and a culture grounded in respect, we create opportunities for our team members to reach their highest potential. PEOPLE-FIRST CULTURE
Talent Attraction and Retention Our commitment to providing long, purpose-driven careers is evident in our average team member tenure – 8 years in the U.S. and 8.2 years globally. These are approximately double the average tenure for U.S. and global employees in the private sector. 1 S&C’s Quarter Century Club (QCC) celebrates team members who achieve 25 years of service. In 2025, 57 team members across the globe were inducted into the QCC, joining 358 active members and 151 retired members globally. RECRUITING AND RETAINING TOP TALENT As an employer of choice, we focus on strategies that attract and retain talent. Our approach includes strategic workforce planning, nontraditional talent pipelines, proactive campus and grassroots recruitment, and robust hiring, promotion, and retention practices. Strong relationships with local and national partners – including Women in Manufacturing, National Society of Black Engineers, Society of Women Engineers, and SkillBridge, a military service member job placement program – are essential to this effort and play a critical role in bringing talent to S&C.
2025 RECRUITMENT HIGHLIGHTS • Participated in 86 community hiring events • Attended 55 career-focused outreach events at local schools and colleges • Onboarded 17 new hires from community partnerships and outreach activities • Welcomed 91 interns, co-ops, and summer students, with nine becoming full-time team members
Team Member Engagement and Long-Term Career Development At S&C, we empower every team member to reach their full potential through career growth opportunities, talent development programs, educational support, and a comprehensive performance management process. LEVERAGING TEAM MEMBER FEEDBACK Our culture of continuous improvement is grounded in team member feedback. Our annual engagement survey, administered by a trusted third-party provider, ensures anonymity and encourages candid input that helps us strengthen the team member experience.
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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We use survey results to identify strengths and develop action plans that address opportunities for improvement at the enterprise level and within functions. Feedback from recent engagement surveys inspired the following initiatives in 2025: • Enhanced our onboarding experience by introducing a buddy program that pairs new team members with experienced colleagues to support integration, knowledge-sharing, and early engagement • Launched the Recognize & Reward program , our global team member recognition platform, which encourages leaders and team members to celebrate and reward one another’s achievements • Introduced a change management toolkit for leaders with a comprehensive communications guide to promote clarity and consistency • Developed LEAD (Live, Execute, Anticipate, and Develop), a new, in-person leadership development program focused on building the core capabilities required for leadership success at S&C.
90% of team members have used our Recognize & Reward program, with 84% of team members receiving recognition, indicating strong engagement.
2025 EMPLOYEE ENGAGEMENT SURVEY Our 2025 global engagement survey, encompassing both salaried and hourly team members, recorded an 84% response rate. Highlights included: • 89% believe S&C is committed to team member safety. • 88% say they feel comfortable reporting any safety concern, no matter how small. • 84% say they have a clear understanding of what is expected of them as a team member at S&C. • 83% believe S&C is taking action to be a socially responsible company. • 81% say they are treated with respect at work. • 81% say S&C shows a commitment to ethical business decisions and conduct.
TEAM MEMBER TRAINING AND LEADERSHIP DEVELOPMENT
S&C provides essential training throughout the year, including required trainings in health and safety, information security, and our Required Ethical Standards, Code of Business Conduct. Core development and leadership programs build the skills needed for career progression. Through targeted learning opportunities tailored to roles and career stages, our training framework supports continuous growth across the organization. In 2025, our team members completed nearly 46,000 training hours globally. S&C also reimbursed more than $550,000 for team member education and upskilling opportunities.
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Respect for People We promote a culture of respect for our 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 related initiatives, including: • Diversifying our talent pools and recruiting through strategic partnerships • Promoting participation in our team member affinity groups, development programs, and other resources • Identifying opportunities to enhance team member diversity through recruitment and retention efforts 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 heritage month celebrations, our groups offer in-person and virtual programming throughout the year to promote team member engagement. The groups also support philanthropic efforts to make an impact in their local communities. Learn more about S&C affinity and activity groups here.
Team Member Well-Being We embrace a holistic view of team member well-being, providing resources, programs, and policies that support mental and physical health as well as immediate and long- term financial security: • 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 As a 100% employee-owned company for nearly 15 years, S&C actively educates team members on the value and impact of our KSOP, our 401(k) and Employee Stock Ownership Plan (KSOP). Through a series of in-person education sessions, we provide transparency on KSOP performance, company priorities, overall business results,
and the actions team members can take to strengthen both personal retirement outcomes and company success. In 2025, we hosted 30 sessions across three locations, engaging 1,827 team members. By building a stronger understanding of our ownership model, we empower team members to make informed financial decisions while contributing to the sustained strength and stability of S&C as a privately held, employee-owned company.
Learn more about the benefits we offer on our website.
Review our Sustainability Data Summary for team member demographic data.
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Social Impact & Community Engagement
2025 ANNUAL GIVING CAMPAIGN RESULTS • Total Donations: $376,600 • Total Employee Participation: 58% • U.S. Giving Campaign Donations: $366,000 • Canada Giving Campaign Donations: $10,600
For more than a century, community engagement has been central to S&C’s identity. In the 1920s, co-founder Nicholas Conrad joined fellow business leaders to establish what would become the United Way of Metropolitan Chicago, launching a legacy of community engagement that continues today. We invest in projects that create meaningful and lasting community impact through our Annual Giving Campaign, team member-led initiatives, and the S&C Electric Company Fund. 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 arts and culture, community development, education, health, and basic human needs. Nonprofit organizations that received support from the S&C Fund in 2025 included: • Adler Planetarium • American Red Cross • American Writers Museum • Chicago Public Library Foundation • Chicago Symphony Orchestra • Corporate Coalition of Chicago • Jane Addams Resource Corporation, an organization that provides training for manufacturing jobs • Junior Achievement of Chicago
RESPONDING TO URGENT COMMUNITY NEEDS In 2025, the S&C Fund contributed $125,000 to organizations delivering critical relief and essential resources in response to natural disasters and rising
food insecurity across the U.S. Supported nonprofits include: • Alameda County Community Food Bank • Care for Real • Feeding America • Greater Chicago Food Depository • Hunger Task Force • Ignatian Mission Center • North Texas Food Bank • Palm Beach County Food Bank
In 2025, the S&C Electric Company Fund donated $1 million to Chicago’s Adler Planetarium in support of youth STEAM education programs.
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OPERATIONAL EXCELLENCE
We are committed to minimizing the environmental impact of our operations by aligning with leading standards and frameworks to reduce emissions and conserve resources. At the same time, we prioritize the health and safety of every team member, guided by our companywide goal to be injury free.
SAFETY PERFORMANCE We monitor both leading and lagging indicators to gain a comprehensive view of safety performance, identify trends, and drive continuous improvement. In 2025, we reduced our global total case incident rate (TCIR) by 15% to 1.10, achieving a rate more than 50% below the electrical distribution industry average of 2.40 per 100 full-time workers. Our global days away, restricted, or transferred (DART) rate decreased by 20% to 0.64, which is less than half the industry average of 1.40 per 100 full-time workers. Thanks to proactive engagement with team members, we minimized ergonomic risks through on-site preventive care as well as our “Take 5” program.
Team Member Health & Safety Safety is a shared responsibility and reinforced through each team member’s commitment to our safety vision – all incidents are preventable. We empower team members to speak up, guided by the principle, “If you see something, say something and, most importantly, DO something.” PREVENTING TEAM MEMBER INJURIES With oversight from our Health, Safety, and Environmental (HSE) team, we equip team members with the training and digital tools needed to recognize, report, and resolve risks as part of our One Safe Team commitment. In 2025, we enhanced hazard identification and documentation through our “Take 5” initiative, which encourages team members to pause before each task, evaluate risks, plan to minimize exposure, and proceed with caution. As a result, our operations team proactively documented more than 7,000 safety concerns, near misses, and quick fixes, which enabled targeted corrective actions to be taken. We also prioritize ergonomic best practices to prevent repetitive motions from becoming recordable injuries. In our U.S. and Mexico manufacturing facilities, team members participate in mandatory three-minute warmup sessions twice per day
including a dedicated upper body mobility routine to reduce the risk of injury and reinforce safe alignment for repetitive tasks. In 2025, we conducted over 4,000 workplace health check-ins with team members, helping detect potential risks early and support long-term workforce health. In addition, we added ergonomic and worker-readiness training to our new hire orientation. EMPOWERING TEAMS TO LEAD WITH SAFETY S&C’s Safety Action Teams (SAT) engage team members in identifying and remediating potential safety risks. In 2025, our 14 SATs completed 24 job safety analyses and more than 3,200 quick fixes. Notable projects included: • Strengthened chemical hygiene practices in laboratory hoods to support ongoing operational excellence and enhance future monitoring capabilities • Advanced emergency signaling and alarms across S&C’s Chicago campus to elevate emergency readiness • Expanded PPE, ergonomic, chemical, eyewash, and fire equipment audits to promote consistent accessibility and continually improve workplace safety standards • Installed high-visibility STOP floor markings at forklift-interaction areas to increase situational awareness for drivers and pedestrians and support ongoing collision-prevention efforts across our facilities
FATALITIES: 0
DART 32
RECORDABLE INJURIES 55
62 ENVIRONMENTAL INCIDENTS
828 FIRST AID AND NEAR MISS
3,285 QUICK FIXES
8,703 HAZARD IDENTIFICATION AND WORK OBSERVATIONS
Review our Sustainability Data Summary for more safety performance data.
GLOBAL SAFETY PYRAMID 2025 METRICS
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Emissions Reduction S&C mitigates the environmental impact of our operations through a comprehensive sustainability program anchored by our commitment to achieve net-zero greenhouse gas (GHG) emissions by 2050. Our targets were informed by Science Based Targets initiative (SBTi) guidance and align with leading global frameworks, including the United Nations Sustainable Development Goals (UN SDGs). Our decarbonization strategy spans Scopes 1, 2, and 3 emissions and prioritizes emissions reductions in our operations and throughout our supply chain to drive measurable, long-term impact.
OUR COMMITMENT TO TRANSPARENT REPORTING We demonstrate our commitment to transparency through our annual CDP disclosures. In 2025, based on 2024 data, S&C received a B score for Climate Change and a B score for Water Security, improving from a B-minus in 2024. We also participated in CDP’s Forests disclosure for the first time and received a C score.
2018- 2020
2021- 2022
2023- 2024
Year
2025
Climate Change Score
D
C
B
B
MID- AND LONG-TERM DECARBONIZATION TARGETS
Emissions
UN SDG
Mid-Term Targets
Long-Term Targets
Scope 1 – Direct
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 2026
Reduce emissions by 90%-95% from 2014 to reach net zero target by 2050
Evaluate and pursue the most effective opportunities for continued use of renewable energy generation
Scope 2 – Indirect Purchased Energy
100% electricity demand fulfilled by renewable energy sources by 2030 1
Scope 3 – Indirect Value Chain
Develop roadmap based on 2024 baseline to reduce Scope 3 emissions by 2030
Identify and pursue most effective opportunities for Scope 3 reduction efforts, based on roadmap
1 S&C has purchased renewable energy certificates since 2020 to meet 100% of global electricity use. Read more in Energy Efficiency.
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SCOPE 1 EMISSIONS We focus on addressing two main sources of emissions: the use of sulfur hexafluoride (SF 6 ) gas and stationary sources that run primarily on natural gas. Our teams continue to implement improvements that reduce emissions from products containing SF₆ gas during production and throughout product life cycles. In 2025, our production, engineering, and quality teams focused on addressing quality issues that can lead to product adjustments or rework and potential SF₆ loss. Using a four-step problem-solving methodology, teams identified root causes of SF₆ loss, implemented corrective actions, and strengthened process controls to reduce major product rework. At the same time, S&C is advancing longer-term decarbonization through product innovation. For example, Vista Green® Underground Distribution Switchgear now uses alternative gases in production, offering customers solutions that eliminate SF₆ and reduce value chain emissions. Read more in Product Innovation & Sustainability.
SCOPE 2 EMISSIONS S&C is a long-standing member of the U.S. Environmental Protection Agency’s (EPA) Green Power Partnership 100% Green Power Users. We support the expansion of renewable energy, including wind, solar, geothermal, biogas, eligible biomass, and low-impact hydropower. We have purchased renewable energy certificates (RECs) since 2012, and as a result, we have offset 100 percent of our global Scope 2 market-based emissions since 2020. Read more about our initiatives to reduce Scopes 1 and 2 emissions in Energy Efficiency. SCOPE 3 EMISSIONS In 2024, we established our Scope 3 emissions baseline and determined that Scope 3 accounts for approximately 80 percent of S&C’s total carbon footprint, with Purchased Goods and Services representing the largest share. To better understand our value chain emissions, we launched our first sustainability-focused supplier questionnaire in 2025. The assessment, aligned with EPA-based guidance, was conducted with suppliers representing the top 75 percent of our annual spend.
The assessment revealed that among these suppliers, 42 percent have reached the “compliance stage,” defined as having an established environmental policy and active energy consumption tracking. A portion of these “compliance stage” suppliers are advancing toward “efficiency,” “leadership,” and “purpose-driven” stages of sustainability performance. The remaining 58 percent are in the “infancy stage” of sustainability maturity, indicating limited environmental tracking, no formal environmental policy, and no current emissions reduction plans. These findings will shape our next phase of action. In partnership with our sourcing team, we are working to improve the way we select, monitor, and evaluate suppliers. This work will also inform the development of companywide Scope 3 reduction goals and a roadmap to support S&C’s net zero commitment by 2050.
Review our Sustainability Data Summary for S&C’s emissions and energy data.
SCOPE 1 NET ZERO ROADMAP (MT CO 2 E)
76,828
Historical reduction
37,434 (-51%)
11,524 (-85%)
Reduce reworks to 25/year Reduce natural gas by 15% Reduce SF 6 gas emissions by 89%
3,841 (-95%)
2014
2025
2030
2040-2050
S&C roadmap to reach net zero Scope 1 emissions by 2050
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Energy Efficiency Energy efficiency is central to our decarbonization strategy and efforts to reduce our environmental footprint. We lower emissions through targeted capital investments that improve operational performance, including automation systems, LED lighting upgrades, modernized equipment, green building initiatives, and the expansion of electric vehicles (EVs) and charging infrastructure. In 2025, we conducted the following energy efficiency projects: • Our Chicago campus adjusted its HVAC operating schedule to reduce unnecessary runtime, saving an estimated 410,000 kWh per year in electricity. • Our facility in Aguascalientes, Mexico , completed a solar panel installation, which began to generate energy savings in September 2025. • By year-end 2025, approximately 85 percent of our Suzhou, China , facility’s lighting had been converted to LED, replacing 2,506 lamp tubes and delivering an estimated 50,671 kWh in annual energy savings. NATURAL GAS Natural gas remains a primary fuel source at our Chicago and Toronto facilities, supporting building heating and key manufacturing processes, including boilers and curing ovens. We are targeting a 30 percent reduction in natural gas use by 2030 through energy-efficient building practices, improved ventilation systems, increased automation, strategic equipment upgrades, and the installation of high-efficiency boilers where feasible. Our long-term strategy also includes retiring aging steam systems and prioritizing high-efficiency system design when replacing equipment, rather than retrofitting legacy infrastructure.
Waste generation increased slightly, from 20.56 million pounds in 2024 to 20.99 million pounds in 2025, due to increased production and expansion of our business. However, our waste reuse increased by nearly 2.5 percent, demonstrating efforts toward circular resource management. In 2025, we also concentrated on reducing our reliance on waste-to-energy processes – which generate energy through waste incineration – and instead prioritized recycling as a more sustainable materials management strategy. Additionally, we switched our waste program vendor across our U.S. sites to prioritize recycling and have more detailed data collection, tracking, and reporting as we head into 2026.
ADHERING TO GREEN BUILDING STANDARDS S&C follows green building standards, and four of our U.S. buildings are certified under 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. Waste Management Our waste management program prioritizes prevention, reuse, recycling, and recovery initiatives, including composting. Our business model is designed to support a circular economy by minimizing waste in our operations and designing products for greater recyclability. Across our facilities, we have increased our waste audit frequency to inform proper waste segregation practices, train team members on waste separation and waste-related procedures, and increase team member engagement around our waste management program. In 2025, a targeted audit at our Chicago facility identified high-weight materials in the Waste-to-Energy (WTE) stream, enabling the diversion of multiple waste streams to recycling. We also expanded container deployment and signage across production lines, increased team member training in waste operations, and implemented an electronic container request form to better track needs and identify improvement opportunities. DIVERTING WASTE FROM LANDFILL ACROSS OUR OPERATIONS Responsible waste management practices are essential to achieving our goal of 99 percent landfill-free operations. In 2025, we diverted 96.7 percent of our waste globally from landfills, a decrease of 0.7 percent from 2024 due to increased waste generation.
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Air Quality We manage our emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) as required by the Clean Air Act and regulated by the U.S. EPA. We have reduced our VOC and HAP emissions in the U.S. by 97 percent and 99 percent, respectively, since the 1990s, thanks to investments in new technology and process improvements. Although we experienced an increase in VOC and HAP emissions this year due to increased production, today’s emissions are well below our compliance requirements and remain negligible. Water Conservation We leverage lean manufacturing practices, facility upgrades, shared best practices, and conservation efforts to reduce our water consumption and secure our water supply. In 2025, we reduced our water use by 2 million gallons across our footprint and improved water intensity by 10 percentage points, signaling our continued progress in decoupling water use from business growth. Across our footprint, we use the following measures to reduce water consumption at our sites: • Closed loop cooling systems, including cooling towers, a dry cooler system, and an evaporative fluid cooler • Cleaning and inspection enhancements • Recirculation and recycling in operations processes • Low-flow devices on faucets and bathroom fixtures At our Aguascalientes, Mexico, facility, we advanced water conservation efforts by optimizing water use in cleaning processes – evaluating operational requirements, experimenting with reduced cleaning to a single shift, and measuring impact – as part of our alignment with SDG 6: Clean Water and Sanitation. We also installed water catchers at the facility to further reduce consumption.
Supply Chain Management We partner with suppliers who share our commitment to reliability, integrity, and responsible business practices. Our Supplier Code of Conduct, which is embedded in our contracts with suppliers, sets clear expectations for environmental compliance, human rights, labor and employment practices, and continuous improvement. We prioritize suppliers that align with these standards and actively work to reduce their environmental impact across the value chain. As part of our commitment to be responsible stewards of the environment, we maintain membership in the Sustainable Supply Chain Alliance (SSCA), an organization of public utilities and suppliers that works to advance sustainability best practices. We also take the following steps to reduce the impact of our supply chain and sourcing efforts: • Sourcing regionally to reduce emissions from transportation and support the local economy • Driving circularity by promoting efficient materials use, mitigating waste in packaging, and exploring recycling outlets for different materials • Mapping efficient routes and optimizing load size to drive energy efficiency and reduce emissions
Review our environmental data in our Sustainability Data Summary.
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CUSTOMER-CENTERED INNOVATION
We work closely with customers to drive innovation at S&C. Our grid resilience solutions empower customers to transform the grid, keeping the power on around the world.
Product Innovation and Sustainability OUR PRODUCT DEVELOPMENT STRATEGY
REDUCING SF₆ EMISSIONS ACROSS OUR PRODUCT PORTFOLIO Our portfolio includes alternatives to SF 6 gas-insulated switchgear, including Vista® Green and Vista® SD Underground Distribution Switchgear and Scada-Mate® SD Switching System. All S&C products that use SF 6 gas are sealed for life, reducing the need for refilling and reducing both maintenance requirements and the risk of emissions. We also support our customers’ efforts to recycle equipment and reclaim SF 6 gas. This includes decommissioning end-of-life product units and reclaiming SF₆ gas from this equipment to be recycled. To help customers through this process, we provide full documentation and compliance reporting and flexible service options.
Our engineering expertise and focus on understanding our customers’ challenges, combined with close collaboration, influence how we design products, invest in new technology, plan manufacturing capacity, and provide customer support. Product Life Cycle Strategy Product safety and performance are our primary objectives when designing our products. These Sustainable Product Life Cycle Considerations shape our product development and production processes: • Engineering for improving safety • Minimizing energy and resource usage • Reducing the use of potentially hazardous substances and GHG emissions • Minimizing waste • Enhancing recyclability and environmental circularity These considerations drive sustainability and continuous improvement in product development and challenge us to choose product and packaging materials that minimize our environmental impact.
S&C’s product take-back program recovered 90 Scada-Mate units in 2025, reclaiming and recycling nearly 400 pounds of SF₆.
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Product Quality At S&C, quality reflects our commitment to delivering dependable solutions that meet customer expectations. Our teams follow documented quality processes to ensure our products consistently meet customers’ needs and expectations. Dedicated quality experts support each product line, reinforcing clear standards and driving efficiency across our operations. Through disciplined quality processes and a robust management system, we monitor customer experience, act on feedback, and advance continuous improvement across our portfolio. In 2025, the global quality team continued to drive progress through: • Improved root cause problem solving to prevent product defects from occurring, which reduced scrap parts. As a result, product defects per unit (DPU) decreased by over 25 percent from 2024 to 2025. • Weekly monitoring of defects for specific product lines. For each defect found, we conducted deep root-cause analyses and introduced in-process inspections to catch issues earlier in the assembly process. • Resistance checks at key assembly stages of our Fuse product line. We also instituted operator certification for soldering, standardized painting methods, and improved cleaning procedures. • Custom-fit foam inserts and edge protectors for pole-mounted gear units to prevent chips and scratches during handling and transport.
BUILDING QUALITY THROUGH SIX SIGMA In 2025, S&C launched a Lean Six Sigma certification program in Canada to empower our teams to advance their problem-solving capabilities, reduce waste, and improve quality. The program focuses on process improvements, combining hands-on training, knowledge assessments, and real-world improvement projects that require validated results for certification. In 2026, the program will be expanded to the U.S. and Mexico.
All S&C manufacturing facilities globally are registered and certified compliant with the ISO 9001:2015 quality management system standard.
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DATA SUMMARY
S&C 2025 Sustainability Data Summary
ALL
NEW HIRES
HOURLY
SALARY
LEADERSHIP
PEOPLE-FIRST CULTURE
Racial Diversity – U.S. Employees Only White
35% 17% 15% 31% <1% <1%
29% 20% 13% 34%
58%
22% 22% 14% 39% <1% <1%
58% 11% 12% 19% <1% 0% <1%
Black Asian
8%
17% 15% <1% 0%
Hispanic
American Indian/Alaska Native
<1%
Native Hawaiian/Other Pacific Islander
1% 3%
Two or More
2%
2%
2%
Gender Diversity - All Employees Globally Female
21% 79% <1% 17% 49% 34%
27% 73% <1% 45% 41% 14%
25% 75%
19% 81% <1% 19% 46% 35%
20% 80%
Male
Nonbinary (tracked in U.S. only)
<1%
0%
Age Diversity - All Employees Globally Under 30
14% 54% 32%
2%
30-50
57% 41%
50+
Additional Demographics - U.S.Employees Only Is a Veteran
2% 5%
3% 6%
2% 6%
2% 4%
3% 6%
Has a disability
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OPERATIONAL EXCELLENCE Team Member Health & Safety 1,2 Global Total Case Incident Rate (TCIR)
Industry Average
2023
2024 1.30 0.80 2024
2025
2.40 1.40
2.07 1.52
1.10
Global Days Away, Restricted, or Transferred (DART) Rate
0.64
Global Scope 1 and Scope 2 GHG Emissions 3,4
2014 Baseline
2023
2025 (5) 37,434 28,072 9,074 21,968
Scope 1 Emissions (MT CO 2 e)
76,828 61,829
19,359 11,220 7,660 21,602
23,757 14,980
Fugitive SF 6 (MT CO 2 e)
Stationary Sources (MT CO 2 e)
11,779
8,011
Scope 2 (Location-Based) Emissions (MT CO 2 e)
34,420
22,645
Emissions Intensity (Scopes 1 & 2 MT CO 2 e/$ Million Revenue - Variance From 2014)
n/a
-81%
-77%
-76%
Global Scope 3 GHG Emissions (MT CO 2 e) by Category
2024 Baseline
2025
(5,6)
Total Scope 3 Emissions
n/a n/a n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a n/a
202,473 160,187
179,494
Purchased Goods
93,303.41 1,982.02 52,833.04
Waste
2,077 12,408
Commuting
Business Travel
1,460
1,229.14 686.42
Upstream Transportation
693
Fuel and Energy Energy Efficiency
25,648
29,460.20
1990s Annual Average
2023
2024
2025
Global Electricity Use (kWh in Millions)
41
50
53
55
Global Electricity Usage Intensity (kWh/$ Millions Revenue - Variance from 2014)
n/a
-44%
-38%
-45% 1.62 -61%
Global Natural Gas Use (Therms in Millions)
1.64
1.45
1.45
Global Natural Gas Usage Intensity (Therms/$ Millions Revenue - Variance from 2014)
n/a
-62%
-60%
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 for the electrical distribution and control equipment industry. 3 2025 Scope 1 emissions increased primarily due to a rise in fugitive SF₆ emissions driven by expanded production, including a site focused on SF₆-containing products becoming fully operational. Increases from other Scope 1 sources (natural gas, fuel usage, and applicable refrigerants) were consistent with expected operational growth from 2024 to 2025. 4 Fugitive SF 6 gas and stationary source emissions presented in this chart may not add up precisely to the totals provided because smaller sources included in the totals are not shown in this chart. 5 This data is preliminary and subject to third-party verification. 6 For the Purchased Goods category, more specific NAICS (North American Industry Classification System) codes were used in 2025, compared to 2024, leading to more accurate emissions data compared to our 2024 baseline. For the Commuting category, annual data collection of team member commuting was improved from 2024, increasing category completeness.
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