Heat and Control - Environmental Policy
CORP PL 0001
1. Introduction and Purpose
Heat and Control is committed to responsibly managing natural resources and our environmental impacts. By assessing established frameworks, such as ISSB1 and MSCI2, analyzing leading industry practices, and evaluating relevant physical and transition climate risks and opportunities, we identified climate and energy, water, and waste and circularity as our most material environmental sustainability topics. This policy documents our commitment to evaluating and addressing these priority areas across our global operations, products, and services.
2. Commitments
2.1 Reporting and Compliance
We comply with all applicable environmental laws, regulations, and standards across all our facilities. Beyond compliance, we focus on understanding and transparently disclosing the footprint of our business across our priority environmental areas.
2.2 Climate and Energy
We recognize that climate change can present impacts and dependencies for our business which is informed by our assessment of the relevant risks and opportunities according to the Task Force on Climate-related Financial Disclosures. We have also developed science-based targets consistent with the guidance of SBTi (Science-based Target initiative), for reducing Scopes 1 and 2 (operational) and Scope 3 (value chain) emissions, and we have developed strategies to reduce emissions across our operations and products on a trajectory consistent with achieving these targets.
2.3 Water
Water is a shared and finite resource that is essential to our business and the communities in which we operate. We assess water stress for each of our facilities using the World Resources Institute’s Aqueduct tool to identify areas experiencing high stress and focus on implementing water stewardship strategies in those areas. We are committed to reducing operational water withdrawals by prioritizing the implementation of water-stewardship strategies at facilities located in areas of high-water stress. Our efforts include continually improving water-efficiency practices at these sites and advancing water-saving product innovations that support our customers in conserving water.
2.4 Waste, Circularity, and Product End-of-Life Management
We view waste reduction, resource efficiency, and responsible end-of-life management as core to our operational performance and product circularity. We are committed to reducing waste to landfill on an employee basis across our owned and operated facilities and embedding circular economy principles across our operations to enable material recovery and reuse. We are also advancing product engineering to improve equipment quality, durability, repairability, and recyclability - extending product life and reducing waste3.
3. Implementation and Accountability
The Executive Committee oversees this Environmental Policy, approves environmental targets, and formally reviews progress. The Sustainability Steering Committee manages day-to-day implementation of the policy and reports progress to the Executive Committee. The duties and responsibilities of these committees are outlined in Heat and Control’s Sustainability Charter.
It is every employee’s duty and responsibility to do their part to help us as a company and individually, including promptly reporting concerns and opportunities through the appropriate channels.
4. Approval
This Environmental Policy was approved by the Executive Committee of Heat and Control, Inc.
1 International Sustainability Standards Board
2 Morgan Stanley Capital International
3 Aligned with ISO 9001 quality management principles, emphasizing continuous improvement, product reliability, and maintainability to support long term performance
This policy reflects the current principles of Heat and Control. It does not create contractual rights or modify existing agreements
