OPERATIONAL EXCELLENCE
CUSTOMER-CENTERED INNOVATION
DATA SUMMARY
GRI INDEX
INTRODUCTION
PEOPLE-FIRST CULTURE
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.
S&C 2025 Sustainability Report
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