Energizer Holdings, Inc - Environmental, Social and Governance Summary 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
A Message From Our CEO Long before we articulated integrity as one of our core values, Energizer has had a long history of doing the right thing – it’s who we are. As a company, we strive to deliver results while ensuring we do so in a responsible and appropriate manner. By operating this way every day, we make a conscious choice to lessen our impact on the planet; strive to create a safe, fair and inclusive environment for our colleagues; and support the communities where we operate. We have organized our commitment to environmental, social and corporate governance (ESG) around five pillars: These are: • Product sustainability • Environmental responsibility • Social responsibility • Community impact • Corporate governance This document provides a summary of Energizer’s current state and highlights our progress within each of those pillars. It also shows the commitment we have made, including at the highest levels of the organization. To further our efforts, we established a team that is focused on our ESG efforts, which is accountable to me for advancing our goals across the company. With the assistance of an independent third party that assessed our greatest opportunities and risks, this team set benchmarks for us. These standards will be an important guide as we develop our future plans related to our ESG focus areas. In the meantime, I hope this overview of our ongoing efforts to have a positive impact for our consumers, colleagues, communities, environment and shareholders demonstrates the breadth of our work in our ESG journey. Mark LaVigne President and Chief Executive Officer Energizer Holdings
Product From more responsible product development to sustainable packaging and recycling efforts, Energizer continues to lessen the impact of its Sustainability products on the environment. Timeline of Innovation That Supports Sustainability 1896 1959 1991 1992 1997 Invents first dry Invents first Invents world’s Invents world’s Introduces high- cell battery viable cylindrical first zero- first AA lithium energy NiMH alkaline battery mercury alkaline battery rechargeable battery battery 2001 2009 2016 2021 2022 Introduces first Launches World’s first AA Increased Plastic-free zero-mercury PowerSeal and AAA batteries recycled content packaging in hearing aid Technology made with 4% in rechargeable Europe* battery recycled batteries batteries** First commercially viable alkaline battery enabled conversion from carbon zinc technology, which meant 1959 consumers could use fewer batteries. Invention of lithium batteries, which is now the “World’s Longest Lasting AA Battery” providing consumers 1992 with a dramatically longer-lasting, more efficient battery solution. 2016 First in the world to use recycled batteries and other recycled materials in batteries. 2021 Increased use of recycled content to 15%** within our Energizer Recharge portfolio. * Excluding hearing aid batteries ** AA 2300 mAh, 2000 mAh, AAA 800 mAh, 700 mAh
Reducing Waste Energizer has a history of sustainable innovation in batteries and has developed many long-lasting products that provide exceptional performance, are made of high-efficiency materials and have unmatched reliability. When products are replaced less frequently, less waste is generated. • Energizer offers the longest lasting AA battery (Energizer Ultimate Lithium) and the longest lasting AAA battery in high tech devices (Energizer Ultimate Lithium). • We also developed the first rechargeable battery made with recycled battery materials. • Our PowerSeal and Smart Seal technologies guarantee no leaks, protecting devices from damage and resulting in fewer devices being discarded. • Our portable lighting products use LED bulbs, and are designed and built to last between 10 to 20 years on average. Managing Chemicals • In 2017, methanol was removed from all Armor All auto care products, resulting in a reduction of more than 17,000 pounds of methanol since that time. Additionally, more than 30 tons of methylene chloride were removed from our air conditioning refrigerant production in 2017. • We offer plant-based car wipes under our Armor All brand and Refresh Your Car odor absorption bags made with 100% non-toxic bamboo charcoal. • We created the world’s first mercury-free and cadmium-free alkaline household batteries in the 1990s. In 2000, we created the first mercury-free hearing aid battery. Packaging Our Products Sustainably Energizer’s packaging choices help ensure the availability of natural resources now and in the future. • All Energizer round cell batteries sold at retail stores in Europe will be enclosed in 100% recyclable cardboard packaging by 2023. • Energizer uses polyethylene terephthalate materials for most battery labels and all lighting packaging, which consumers can recycle. Similarly, 100% of Energizer’s primary and secondary corrugated packaging and product displays are fully recyclable. Recycling Batteries Energizer’s commitment to sustainability goes beyond the lifetime of our products. Last year, we spent more than $10 million globally on battery recycling initiatives, including campaigns to raise awareness about battery recycling, establishing collection points and supporting safe recycling programs. Energizer has partnered with third-party organizations to educate consumers about battery recycling. Additionally: • Continuing our tradition of innovation, Energizer created the world’s first battery recycling machine in Europe – consumers put batteries in, vouchers for future sales come out. • We earned Nordic Swan certification in Europe and the Call2Recycle Leader in Sustainability Award in Canada. Using Less Water Armor All wash wipes are extra-large, premoistened wipes that give consumers a water-free, easy-to-use option to clean their vehicles and can help save 60 gallons of water per vehicle every year.
Environmental Energizer takes a number of steps to conduct business in a way that ensures consumers enjoy our products today without sacrificing Responsibility tomorrow. In the 1970s, our wastewater effluent standards were exemplary enough to become the model for the U.S. Environmental Protection Agency. Over the past 10 years, we have tracked our waste and water usage in our largest manufacturing facility and have created positive trends year-over-year. Water Through technology improvements designed to reduce water usage and recycle wash water at our Asheboro, North Carolina plant, we have saved more than half a million liters of water per month. Waste Energizer is working toward landfill-free manufacturing facilities. In the United States, our largest facilities – located in Fennimore, Wisconsin and Asheboro, North Carolina – recycle approximately 90% of all waste per year. Across all of our international manufacturing sites, approximately 42% of all waste generated is recycled. In our Washington, U.K. plant, we also removed all plastics from our waste material collection process, which saved more than 5.5 metric tons of plastic and reduced emissions by 23.5 metric tons of carbon dioxide. Greenhouse Gas At Energizer, we recognize the importance of managing and monitoring energy use and associated emissions. We collect information around our plants’ energy use, which is reported to our ESG team on at least an annual basis. It is essential for us to identify opportunities to reduce our impact on the environment, and also determine have that might affect our business and organization. Our ESG team monitors climate-related risks and opportunities and incorporates strategies to address them through our business decisions as well as quarterly updates and recommendations to the Global Executive Team, which includes the top executives and functional leaders at Energizer. In recent years, we began monitoring our scope 1 and 2 greenhouse gas (GHG) emissions to better understand the impact of our operations on the environment. Our GHG emission inventories for calendar years 2019 and 2020 were developed in accordance with the WRI/WBCSD Greenhouse Gas Protocol, which is a corporate accounting and reporting standard. We used an inventory management plan to document our approach. Energizer reduced its GHG emissions by .04% from 2019 to 2020 despite a 1.5% increase in battery manufacturing. 2019 2020 Total direct energy consumption for Scope 11 40,610 39,069 2020 was 351,000 kilowatt-hours. We continuously evaluate other ways Scope 22 63,334 64,451 to reduce our electricity and fuel use Total4 103,9443 103,5203 across our operations. 1 Our scope 1 value includes emissions from fuels used in stationary and mobile combustion as well as refrigerants up to a de minimis threshold. ² We calculated a scope 2 location-based emission value using emission factors from EPA eGrid and the International Energy Agency (IEA). 3 Several facilities were excluded from the inventory because they are subleased by Energizer or they are facilities over which Energizer does not have operational control. 4 GHG emissions data is subject to measurement uncertainties resulting from among other factors limitations inherent in the nature and the methods of determining such data.
Education Efforts Energizer has performed life cycle assessments of its primary and rechargeable batteries, and invested significant time and energy to educate consumers on how to choose the right battery for the right device by weighing environmental and economic factors. For example, in low-drain devices, like wall clocks, both alkaline and lithium are good environmental options compared to carbon zinc ,which requires more batteries. In high-drain devices like digital cameras, lithium, nickel metal hydride rechargeable, and lithium-Ion rechargeable batteries meet the performance requirements while allowing consumers to reduce their environmental impact. The life cycle assessment also demonstrated that battery consumption in a household is not associated with a significant environmental footprint. Flashlight Digital Camera Battery Type Same as X miles driven in car Battery Type Same as X miles driven in car Alkaline 3.5 Alkaline 7.9 Carbon Zinc 11.4 Li-Ion 3.9 Lithium 4.3 Lithium 1.4 NiMH 2.1 NiMH 1.9 Working with Sustainable Suppliers Energizer seeks to work with suppliers that act in a socially, environmentally and economically responsible manner. We expect our suppliers to maintain the same high standard of business ethics to which we have committed, and we share this vision through our Supplier Code of Conduct. Our suppliers must comply with all applicable environmental laws and reporting obligations, maintain all required permits for operation, provide a fair and safe working environment for colleagues and strive to responsibly manage the impacts of their operations on the environment.
Social From our recruitment processes to pay practices and safety standards, we strive to create an environment where our colleagues feel a sense of Responsibility belonging and know they are valued for their contributions. Our Culture Energizer colleagues are passionate about working together to win. As one team we learn together, care about each other and do the right thing to deliver results. We are Energizer Colleagues on a journey to build a culture that will drive our business forward and create a bright By the Numbers future for our brands, products, customers, consumers and colleagues. From town halls, to leadership forums, to engagement surveys, we actively seek out colleague feedback and take action to improve our culture and the colleague experience. 6,012 colleagues Additionally, our culture champion network, with members in all our major global working in markets and facility locations, leads local and global efforts to create inclusive and diverse work environments and bring our values to life. Through virtual meetings 38 countries and global events, we leverage technology to bring our colleagues together across with an average tenure of multiple time zones and geographies to help create a global sense of community and belonging at Energizer. 10 years and an average engagement score of Values Passion, integrity, respect, teamwork, initiative and challenge – these are more than just words to us. They are the foundation of how we do business and serve as 78 a compass for how we work with each other. Learn more about each of them on our website. Diversity, Equity, Inclusion and Belonging Top priorities diversity, We’re committed to fostering an inclusive and diverse culture where colleagues feel a sense of equity, inclusion and belonging, feel listened to, are included in discussions and are valued for their contributions. We treat belonging priorities for colleagues as they would like to be treated. We believe that by embracing our colleagues’ diverse the company include: cultures, experiences, and ways of thinking we will deliver better business results and have a more – A focus on driving engaged workforce. colleague engagement – A comprehensive To foster our culture of inclusion and belonging, we provide learning opportunities for our global inclusion and diversity colleagues to help build self-awareness and personal growth. We encourage open dialogue to share learning and development experiences and create an environment of belonging, and managers and teams can leverage our plan to build awareness and discussion tools for one-on-one and small group discussions. drive inclusive behaviors – A commitment to Our targeted recruitment strategies ensure we have a diverse pipeline of candidates to meet the recruiting, developing needs of our business today and tomorrow. We continually assess our talent decisions to ensure and retaining diverse we’re fair and objective in our hiring and evaluations. colleagues Average engagement score of 78 is from 2020-21 engagement surveys as of July 2021; score is higher than global benchmarks from our third-party survey provider.
COVID-19 Response Our strong culture has been particularly important through the global pandemic. During this challenging time, we continue to focus on keeping our colleagues safe and supporting our communities impacted by the virus. In addition to regular communications from the CEO to all global colleagues, each Energizer location developed pandemic protocols such as: increased sanitation procedures, marking off safe distances, physical barriers between workstations, closing common areas, supplying personal protective equipment, and staggering arrival and departure times to reduce contact. We also created flexible policies for our workforce by expanding our sick leave for those who became ill or needed to care for family members. Colleagues who were able to perform their jobs from home began working remotely, and we adjusted working hours of many of our field sales force to ensure products could be merchandised at times that would minimize interaction with retail staff and consumers. Early in the pandemic, when hand sanitizer and mask supplies were exhausted, our research and safety teams worked together to produce our own and provide them to our U.S. sales and manufacturing associates. Through it all, our employee assistance program provided mental health resources, including drop-in video chats, regular podcasts, and Q&A sessions, to offer practical help to our colleagues across the globe. Well-being and Mental Health Well-being is more important now than ever, and our colleagues value holistic resources to help them balance work and home demands. Energizer has several programs to support four key areas of wellness – physical, mental, social and financial – and we provide ongoing communications and tools to continue meeting our colleagues’ needs in this regard. Safety We care about our colleagues and anyone who enters our workplace. We have a strong environmental, health and safety program to ensure our colleagues go home safe every day. Several of our U.S. manufacturing sites have taken extra steps to be recognized by the U.S. Occupational Safety and Health Administration’s Voluntary Protection Program (VPP) for their low injury rates, top management and colleague commitment to worker safety, worksite analysis, hazard prevention and safety and health training. To put this achievement in context, out of 8 million work sites in the U.S., approximately 2,000 have earned VPP recognition. The same VPP standards implemented by these sites are adopted by Energizer globally to maintain a high standard of performance. Fair Pay We are committed to fair pay and strive to be externally competitive while ensuring internal equity across our organization. We conduct global pay equity assessments and compensation reviews, and actively work to reduce unconscious bias in our hiring practices, performance reviews, succession planning and promotion opportunities. Energizer’s benefit plans are designed to support colleagues’ overall well-being. They are market competitive, offer flexibility and choice to meet the diverse needs of colleagues and their families, and promote shared responsibility and decision-making. Compliance Our Code of Conduct serves to help us conduct our business with honesty, integrity and professionalism. We encourage colleagues to share concerns through multiple avenues, including speaking with their direct supervisor, calling the 24/7 ethics and compliance HelpLine staffed by an independent third party or contacting Human Resources. We investigate every report of alleged misconduct and do not tolerate retaliation.
Community Impact
Community Energizer believes in supporting the communities where we live, work and play. Impact COVID-19 Response The global pandemic has impacted all our lives, and the importance of Energizer products has never felt more pronounced than during the COVID-19 crisis. We take pride in the fact that we supplied our products to consumers at a time when they needed them most. From the households where many people spent the majority of their time, to the medical community, to the professional shipping and transportation industries, Energizer’s products helped ensure critical infrastructure and operations could continue. Further, to do our part to help local communities stay safe, we shifted production on two of our production lines in our Dayton, Ohio, facility to help third parties manufacture disinfectant wipes when U.S. supply could not meet the demand for this essential product. We also launched a disinfectant under our Armor All brand name, allowing people to keep not only their homes clean and disinfected, but their vehicles as well. Giving Back Because many of our colleagues are highly active with charities of their own choosing, the Energizer Giving Foundation enables them to make a greater difference by matching their contributions dollar-for-dollar. In times of natural disaster or crisis, colleagues’ charitable contributions made to qualifying relief agencies are eligible for a 200% match. Disaster Relief Energizer supports disaster relief efforts through its partnership with Feed the Children. Since 2016, Energizer has donated more than 15 million batteries and portable lighting products in North America alone. Raising Awareness The World Health Organization celebrates World Hearing Day every March to encourage individuals to recognize the signs of hearing loss in themselves or loved ones, and advocate for audiology checkups. To support this effort, we promote an online hub of information and articles for consumers to raise awareness. You can learn more at https://rayovac.eu/WorldHearingDay
Consumer Safety At Energizer, the safety of our consumers is paramount. That is why we have dedicated significant time and effort to educate consumers about the importance of: • Changing and testing batteries in smoke alarms and carbon monoxide detectors. • Getting ready to weather any storm or power outage with emergency preparedness tips. • Keeping children safe from lithium coin battery ingestion through work with government and industry groups across the globe for more than 10 years. Specifically, Energizer has led the following efforts: Using child-resistant packaging Requiring the battery compartment for all for all Energizer lithium coin Energizer devices to include child safety batteries, which require features – regardless of whether the device is scissors to open. intended for use by children. Educating the medical community and the Participating in the development of Conducting ongoing research and general public through initiatives such international and local standards development to improve coin lithium as The Battery Controlled, which explains bodies relating to battery battery safety and making much of how to identify and treat children who compartment design, battery that research public in the hopes have ingested coin lithium batteries and packaging design and battery warning that others can improve upon our educates parents through videos. copy to reduce associated risks. significant safety efforts.
Corporate Governance
Corporate Energizer believes that strong governance principles, policies and practices contribute to better results Governance for our shareholders. We are proud to have a diverse and independent board of directors with the skills, experience and perspectives to help chart the course of our global company. To help the board effectively and efficiently fulfill its Board of Directors responsibilities, we have four committees dedicated to addressing the following areas: By the Numbers • Audit 10 11 Independent • Finance and Oversight out • Human Capital of • Nominating and Governance We also have adopted the best-practice governance policies that we believe matter most to our shareholders. We have a declassified board of directors led by an independent chairperson and an overboarding policy 3 Female 2 Black to ensure our directors can effectively fulfill their commitments to the company. 1 Latinx Our Political Involvement Our commitment to doing the right thing guides everything we do, including our work to help develop public policy and legislation that supports priorities related to our business. Reporting up through the 4 last 3 years chief legal officer and working with the business units, Energizer’s global Government Affairs team leads our participation in the public directors appointed within policy-making process at the national, state and local levels, as well as internationally. Oversight with respect to Energizer’s political involvement 3 tenure and contributions is provided by the Nominating and Governance Committee of our Board of Directors. years average Since 2015, Energizer has not made contributions from corporate funds to political campaigns, super political action committees or political parties. We comply with all applicable laws that require reporting on lobbying and related activities. In 2020, Energizer spent $297,000 in lobbying expenditures globally. To gain valuable access and insight into specific industry best practices and lobbying activities on issues most relevant to our business, Energizer contributes to a number of state and national trade associations. Energizer colleagues frequently serve in a leadership capacity within many of these organizations as well, ensuring that our best interests are represented. The state and federal associations we support focus on educating public officials on the importance of certain issues within our industry and advocating on legislative and regulatory issues specific to our industry. As a result, these trade organizations use a portion of contributions for non-deductible lobbying activities. Information on payments to trade associations in 2020, which may be used for potential political purposes, appear here:
Trade Association Contributions in 2020 Association Dues Amount of dues which may be used for lobbying on behalf of the association Portable Rechargeable Battery Association $23,100 $6,930 The Household Consumer Products Association $86,714 $13,874 Auto Care Association $13,900 $6,950 Alliance for Responsible Atmos. Policy $7,000 $5,600 Retail Industry Leaders Association $125,000 $81,250 Wisconsin Manufacturers and Commerce $7,230 $1,446 We do not make or coordinate any contributions to other tax-exempt organizations, such as 501(c)(4)s, that the recipient may use for political purposes, and we maintain an internal policy to help ensure the company and its colleagues adhere to our political involvement guidelines. At the same time, Energizer does not attempt to control, direct, or influence any colleague’s political activities or affiliations. Colleagues engaging in personal political activity must do so as private citizens, not during paid work hours, at their own expense and without using any company resources. Related Policies • Conflict Minerals Sourcing Policy • Supplier Code of Conduct • U.K. Modern Slavery Act
About Our Data The data in this report represents our most recent efforts at collecting our environmental, social and governance data. As we evolve our sustainability program, we will continue to improve our data collection practices. This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including those related to ESG matters. These statements generally can be identified by the use of forward-looking words or phrases such as “believe,” “expect,” “expectation,” “anticipate,” “may,” “could,” “intend,” “belief,” “estimate,” “plan,” “target,” “predict,” “likely,” “should,” “forecast,” “outlook,” or other similar words or phrases. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Additional risks and uncertainties include those detailed from time to time in our publicly filed documents with the Securities and Exchange Commission, including those described under the heading “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission on November 17, 2020. Data in this report covers information that was accurate as of July 2021. Financial information is given in U.S. dollars. Questions related to this report can be directed to ESG@Energizer.com.
You can also read