At ESCO, our success is rooted in our commitment to innovation and the development of technologies and solutions for our diverse customers. As we strive to meet the needs of our customers, we recognize the importance of our ongoing commitment to Environmental, Social and Governance (ESG) matters. We also recognize the impact our actions have on key stakeholders, such as our customers, employees, suppliers and the communities in which we operate.
ESCO has a duty to inform our stakeholders about company practices and strategies that impact sustainability. In a prior year, we identified the most important ESG topics for our company and we have continued to report on those topics in an annual report. As the next step in our journey of sharing and improving our sustainability performance, we now present the information about our ESG topics on our corporate website.
In this portion of our corporate website, we have highlighted each topic and commit to periodically updating the information. We hope you find that the information presented here demonstrates our continuing commitment to diversity and human rights, the health and safety of our workforce, and the integration of sustainability into our business model.
With best regards on behalf of our team,
Chairman, Chief Executive Officer and President
Responsible and sustainable governance at ESCO Technologies is the foundation of our commitment to the creation of long-term value for our shareholders. Our Board of Directors and our ESG Committee illustrate a strong governance structure that is vital to our ESG efforts.
Our Board and Board Diversity
ESCO has demonstrated a commitment to a strong governance structure and related company-wide policies. The Board of Directors currently consists of eight directors, divided into three classes as nearly equal in size as practicable, with one class elected each year.
Our Board of Directors is ultimately responsible for overseeing ESCO’s risk management and corporate strategy. This includes oversight of risks relating to environmental, social and governance matters.
Our Nominating and Corporate Governance Committee assists the Board in its oversight responsibilities relating to our ESG program. The Committee assesses our ESG program at least annually and reports its findings to the Board.
In considering candidates to our Board, the Nominating and Corporate Governance Committee will seek to enhance the diversity of the Board in areas such as race, national origin and gender in order to provide a range of viewpoints and perspectives. The Committee and the Board appreciate the benefits that diversity can bring to a board of directors. Accordingly, both the Committee and the Board are committed to requiring the inclusion of women and underrepresented minorities in the pool of director search candidates.
ESCO’s Board now includes two female directors. Gloria Valdez joined the Board in 2019 as ESCO’s first female director. In 2022, Janice L. Hess joined the Board as an independent director.
Our ESG Committee provides high-level leadership and strategic focus for our corporate-wide ESG efforts. Our ESG Committee is made up of employees representing a variety of functions in our organization, including representatives from human resources, finance, public relations, safety and legal.
Our ESG Committee members include:
At ESCO, we believe it is essential that we conduct ourselves at all times with integrity and in full compliance with the laws and regulations that govern our global business activities. The confidence of our shareholders, customers and the public at large depends on the ethical conduct of our employees. All employees of ESCO and our subsidiaries must comply with our ethical standards, which, among other things, prohibit conflicts of interest, require the protection and proper use of our company assets, and create a duty to act with integrity and in compliance with laws and our employment and safety policies.
We require all of our employees to take ethics training, and review our Code of Business Conduct and Ethics on an annual basis. In 2018, we introduced an ethics video which includes interviews with our CEO, General Counsel and the Vice President of Human Resources. In addition, certain of our employees are required to submit a Conflict of Interest questionnaire.
The ESCO Technologies Ethics Committee meets quarterly to review any ethics cases with the Ombudsman, Ethics Officer and General Counsel, and Committee reports are summarized and submitted to our Board of Directors.
Our commitment to ethics and integrity are embodied in our Code of Ethics for Senior Financial Officers, our Code of Business Conduct and Ethics, and the Message on Ethics from Our CEO, each available at the adjacent links.
We are committed to fostering diverse and inclusive workplaces in which our employees are free from harassment and discrimination. We recognize our responsibility to conduct our business in a manner that respects the rights and dignity of all people without the use of involuntary or forced labor.
Additional information about our approach to Human Capital Management can be found in our Human Anti-Trafficking Policy, our Human Rights Policy, our Anti-Harassment Policy and our Code of Business Conduct and Ethics, each available at the adjacent links.
Key highlights from our Human Rights and Anti-Trafficking Policies:
Diversity and Inclusion. We value the diversity and inclusion of the people with whom we work, and are committed to equal opportunity and intolerance of discrimination and harassment.
Freedom of Association. We respect our employees’ right to join a work council without fear of harassment.
Privacy. We will properly protect the gathering and use of an employee’s personal data that is used for employee administrative purposes.
Wage, Hours and Benefits. We compensate employees competitively, relative to the industry and local market, and are committed to full compliance regarding wages, work hours, and legally required benefits.
Safe and Healthy Workplace. We are committed to providing our employees with a safe and healthy workplace, while complying with applicable safety and health laws and regulations.
Workplace Security. We are committed to maintaining a workplace that is free from violence, harassment and intimidation or other unsafe conditions.
Child Labor. We will not use child labor.
Anti-Human Trafficking. All ESCO employees, agents and subcontractors are prohibited from trafficking persons or conducting trafficking related activities.
Commitment to Community – The ESCO Foundation
In addition to our efforts to support the rights and well-being of our workforce, we also recognize that we are part of the communities within which we operate. We respect the human rights of our neighbors in those areas where we have facilities.
Our commitment to community is long-standing. The ESCO Foundation, established in 2005, is dedicated to providing financial support to a core group of charities focused on helping children and families in the communities where ESCO Technologies has operations. The Foundation’s goal is to make a meaningful contribution to each charity and respective community.
Our employees are engaged in volunteer efforts to support many of the organizations selected to receive grants. The Foundation also offers programs that award college scholarships to the children of ESCO employees and grants to support employees facing extreme hardship.
Additional information about The ESCO Foundation and its activities is available here.
We expect the vendors in our supply chain to reflect our corporate values, which means conducting their business activities with integrity and in accordance with the highest standards of business conduct. We also expect that they will share our commitment to diversity, inclusion and respect for human rights.
We support efforts to end the human suffering and environmental harm that has been associated with certain mining of conflict minerals in the Democratic Republic of Congo and adjoining countries, and are committed to meeting all legislative and regulatory requirements that seek to eradicate this suffering. We expect our suppliers to cooperate with us in the conflict minerals compliance process, and to assist us in identifying the sources of the conflict minerals in products and components supplied to us.
Our expectations and requirements for the vendors in our supply chain are embodied in our Vendor Code of Conduct, Transparency in Supply Chains, Conflicts Minerals Policy and Conflict Minerals Reports, each available at the adjacent links.
We recognize that sustainability benefits our stakeholders in multiple ways. Our efforts to use resources more efficiently allows us to reduce our environmental impact, while also enhancing our financial performance by lowering costs of inputs like energy and water.
We seek to decrease our environmental footprint by pursuing strategies to reduce our electricity usage, fuel usage and water consumption and by measuring our progress. We track our environmental impact in several ways, including measuring greenhouse gas emissions, energy use and water consumption.
Our Environmental Policy provides additional information on our efforts to reduce the impact we have on the environment.
Our ESG Report provides information about our Environmental Footprint for the prior year. Information about our environmental footprint in prior years is available in our prior Sustainability Reports. Each of these are available at the adjacent links.
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