ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT - Emerson

Transcription

E N V I R O N M E N TA L ,SOCIAL ANDGOVERNANCE REPORT2020

TA B L E O F CO NTE NTS3CEOMESSAG E5CHA I RMESSAG E6CO MPA N YPRO FI LE8O URPURP OSE10PLAN E T Our Approachto EnvironmentalSustainability GreeningOf Emerson GreeningBy Emerson GreeningWith Emerson9O URCO MM ITMENTTO ESG2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R T23H UMAN IT Y30C H AMPI O N40I N C LU S I O N IndustryStewardship CorporateGovernance Diversity, Equityand Inclusion Workplace Safety Integrity & Ethics Health and SafetyPerformance Supply Chain EmployeeEngagement Training andDevelopment51F U T U RE62REP O R TI N G Advancing theFuture of OurIndustries UN SustainableDevelopment Goals Training theWorkforce ofthe Future SASB Advancing theFuture of OurCommunities GRI Index TCFD82ABO UTTH I SREP O R T STEM EducationTA B L E O F C O N T E N T S2

C EO ME SSAGEglobal Purpose in 2020: We drive innovation that makesthe world healthier, safer, smarter and more sustainable.Our Purpose is a daily reinforcement of our shared passion tofurther ESG growth across the organization. This effort is not onlygood for our planet and for our society, but also keeps our businessDear Stakeholders,strong and thriving. For decades, we have helped our customersadvance their sustainability initiatives as we drive our own internalI’ve experienced several firsts in the months since I became Chiefadvancement. We were pleased to name Mike Train as Emerson’sExecutive Officer, but my first time introducing our environmental, socialfirst Chief Sustainability Officer in early 2021. Mike will be aand governance report holds special significance for me. Working acrosstremendous champion for both our customers and the industry.the organization for decades in different roles on different continents,I’ve seen how a determined emphasis on ESG topics brings out the bestin our workforce — and our company. Accelerating our progress in thisspace — and building on our internal culture to sustain this advancement —is one of my top priorities as CEO.Emerson has navigated many tests as the global landscape hasshifted over the past 130 years. And every time, our incrediblytalented workforce, adaptability and commitment to customersand industries have enabled us to not only survive difficult times,but to come out on the other end as a better, stronger company.We all have a responsibility to create a better world. A world that prizesThis was true in 2020, too. It’s fitting, then, that this year we bothand protects our valuable resources. A more equitable world thatcrystallized our Purpose-centered mindset and reimagined thecelebrates and empowers our diverse backgrounds and experiences.Causes we work toward every day, with the input of more thanAnd a world that offers thoughtful solutions to make our lives easier17,000 employees. It’s these new Causes — Planet, Humanity,and smoother so we can focus on what matters. At Emerson, we areChampion, Inclusion and Future — around which we tell the storyso committed to making this vision a reality that we articulated a newof our ESG progress in this report.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TWe drive innovation that makesthe world healthier, safer,smarter and more sustainable.CEO ME SSAGE3

Like every company, we were confronted with the global challenge ofWe all have a role in making this vision a reality. Akberet Boykin Farr,COVID-19. Emerson rallied with an emphasis on three goals: helpingour Vice President of Diversity and Social Responsibility, is a drivingkeep our 83,500 employees safe, ensuring business continuity, andforce for these efforts, in partnership with our Blacks Reinforcingserving customers in essential industries around the world with theDiversity, Women in STEM, Veterans, LGBTQ Allies, Somostechnologies and services they needed to stay operational — including(Latin American and Hispanic) and Asian & Pacific Islander Alliancelife sciences, water, food and beverage, power and energy, the coldemployee resource groups.chain, and indoor air comfort and quality. We also responded tocommunity needs with financial support as the economic crisisresulting from the pandemic began to take effect. More informationabout these efforts is included throughout this report.I want to extend my personal gratitude to the Emerson Board ofDirectors, management team, customers and employees, as wellas retired Chairman and CEO David Farr. The past year has beenfilled with many challenges — and many achievements as we workedWe have been building a foundation for advancing diversity, equitytogether to overcome each one. I’m inspired by what Emersonand inclusion. As a global technology organization, we know thataccomplished in 2020 — and even more energized for what wediverse perspectives and backgrounds are integral to companyare achieving together in 2021.culture and innovation. Unfortunately, events throughout 2020illuminated the very real inequities in our society and ignited aMy personal regards,fire to eliminate racism and discrimination. We are committed toadvancing inclusion throughout our company, ensuring our workforcereflects the industries and world we serve. We recently introduceda goal to drive accountability in this space. As a company, we areLal Karsanbhaicommitted to a goal of doubling representation of womenPresident and CEOglobally and U.S. minorities at the leadership level by 2030.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TCEO ME SSAGE4

C HAI R ME SSAGEDiversity is also top of mind for us — both within the wallsBoard of Directorsof Emerson and on the Board itself. Emerson works hardto ensure the Board is a diverse group with deep expertise.Today, 50% of our members are women, people of color or ofa diverse nationality. Prioritizing diverse viewpoints on theBoard reinforces Emerson’s larger emphasis on creating a moreinclusive workforce, an important goal shared across all levelsof company leadership.Mark A. BlinnClemens A. H. BoersigJoshua B. BoltenMartin S. CraigheadWilliam H. Easter IIIGloria A. FlachArthur F. GoldenCandace KendleLori M. LeeMatthew S. LevatichJames S. TurleyLal KarsanbhaiThe company has set a strong foundation for ESG initiativesthat we will continue to build upon for years to come. WeDear Stakeholders,look forward to advancing Emerson’s ESG strategy throughregular meetings with Lal Karsanbhai and other membersESG strategy is an increasingly important topic at the highest levels ofof management to engage in a dialogue about companycompany leadership. This is for good reason. We know that a focus onprogress and initiatives.ESG is foundational to successful business outcomes, and I’m pleasedthis is reflected within the Boardroom at Emerson.Sincerely,We’ve been formalizing the Board’s commitment to ESG oversight.In 2020, we amended the charter of the Corporate Governance andNominating Committee to emphasize its role in overseeing importantissues of public policy and corporate social responsibility, includinghealth, safety, and environmental and sustainability policies andJames TurleyChair, Emerson Board of Directorsreporting. We also formed the Environmental Sustainability SteeringCommittee to further Emerson’s efforts to drive environmentallyresponsible solutions for the company and the industries it serves.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TCHAIR MESSAGE5

CO MPANY PRO F I LEEmerson is a global industrial software, engineering andmanufacturing company with a 130-year legacy of providinginnovative solutions for customers in industrial, commercial andresidential markets. Through our two business platforms — AutomationSolutions and Commercial & Residential Solutions — we develop andG LO BA L TOTA L Sdeliver advanced technologies, software and services that enhanceproductivity, efficiency, sustainability and safety for our customers.84KA MER I C A S 2 0 0EU RO PEA S I A , M I D D L E E A S T AN D AF R I C AKey Facts at a GlanceRecognitionsHeadquarters: S T. LO U I S ,M I SSO UR I (U SA)RAN K ED #176America’s largestcorporations by revenuein 2020 (FORTUNE 500)Founded: 1890Stock symbol: N YS E: EMR37K10019K5028K5021K active patents heldby Emerson employeesworldwide in 2020More information about Emerson’sbusiness and operational performancecan be found at Emerson.com and in ourlatest Annual Report to Shareholders andForm 10-K filing with the U.S. Securities &Exchange Commission and in subsequentreports we file with the SEC.EmployeesManufacturingLocationsRAN K ED #5FORTUNE 2020 World’sMost Admired Companies(Industrial Machinery category)RAN K ED #12by Women Engineer Magazine’slist of top employersRAN K ED #41in Newsweek’s 2021ranking of America’s MostResponsible CompaniesSCO RED 100%2021 Corporate Equality IndexRAN K ED #205FORBES 2020 World’s BestLarge EmployersC O M PA N Y P R O F I L E6

Business PlatformsAutomation SolutionsCommercial & Residential Solutions55K27KOur leading digital transformation technologies are helping some of the world’s largest companies reach unprecedentedlevels of performance. Our leading software is driving exceptional speed and safety in pharmaceutical manufacturing,and our technologies are helping process, hybrid and discrete manufacturers to protect personnel and the environment,optimize operations, maximize production and enhance energy efficiency.Our advanced technologies and long-standing industry expertise are helping provide human comfort and health, protect thequality and integrity of temperature-sensitive food and pharmaceuticals, and create sustainable infrastructure. We are leadingthe industry in a drive for more sustainable heating and cooling solutions, engineering more efficient technologies that helppeople live comfortable, safe lives with less impact on the environment.I ND U S TR I ES SERV EDI N D U S TR I ES S ERVEDC A PA B I LITI ESK E Y PRO D U C T B R A N DS Life Sciences & Medical Industrial Internet of Things Plantweb Fisher Power Generation,Transmission & Distribution Systems &Asset Management DeltaV Keystone Ovation KTM Chemical Industrial Software PACSystems Vanessa Oil Production,Transmission & Refining MeasurementInstrumentation Rosemount Branson Natural Gas Production,Transmission & LNG Fluid Control & Pneumatics Micro Motion HTE ASCO Appleton AVENTICS OSI, Inc. Food & Beverage Metals & Mining Valves, Actuators& Regulators Water & Wastewater Welding, Assembly& Cleaning Automotive Electrical & Lighting Electronics Industry Services & Solutions BettisC APAB I LITI ESK E Y PRO D U C T B RAN DS Residential Construction& Home Improvement Heating & AirConditioning Technology Copeland Commercial Buildings& Construction Smart Thermostats InSinkErator Home Improvement,Repair & Maintenance Klauke Facility Management& Maintenance Professional Tools RIDGID Food Service & Hospitality Cold Chain Software & Technology Energy & Utilities Food Retail Healthcare & Life Sciences Transportation Commercial Comfort & Cleaning Greenlee Lumity Sensi Real-time tracking anddata services Refrigeration and cold storage Temperature andenvironmental monitoring Energy & FacilityManagement Solutions Food Waste Management2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TC O M PA N Y P R O F I L E7

O UR P U R P OSEOur CausesOur Purpose: We drive innovationthat makes the world healthier, safer,smarter and more sustainable.Our Emerson Purpose is ourOur Causes and ValuesNorth Star that is brought toshape, define and fuellife by our people — throughEmerson’s culture — theytheir ongoing dedicationembody our aspirations andto our Causes and Values.serve as the foundation ofOver 17,000 of our globalour character and behavior.colleagues collaborated to helpMost importantly, they givearticulate our global Purpose,meaning to our daily work,demonstrating a collectiveinspiring us to leave thepassion for our commitment toworld in a better placethe environment, society andthan we found it.operational integrity.We deliver sustainable solutions that improveefficiency, reduce emissions and conserve resources.We strive to advance health, comfort,food quality and safety.Our ValuesI NTEG R IT YWe are uncompromising in our honest and ethicalbehavior, which creates trusting relationships withone another, customers, suppliers and communities.SAF E T Y & Q UALIT YWe are unwavering in our commitment to thehighest standards of safety and quality for ourselvesand our customers.S UPP O R T O UR PEO PLEWe attract, develop and retain exceptional peoplein an inclusive work environment, where allemployees can reach their greatest potential.CU S TO MER FOCU SWe actively listen to our customers to deeplyunderstand their needs and deliver the uniqueWe lead our customers through complextechnical, regulatory and economic challenges.We cultivate an environment basedon trust and support.We promote STEM education and programsthat prepare the next generation of criticalsolutions that ensure their success.CO NTI N U O U S I MPROVEMENTWe constantly strive for improvement in all aspectsof our business, guided by metrics, feedback andour disciplined management process.CO LLABO RATI O NWe work seamlessly across geographies, platforms,business units and functions to fully leverage ourunmatched breadth and expertise.I N N OVATI O NWe passionately pursue new technologies,capabilities and approaches to drive tangiblevalue in our customers.thinkers and problem solvers.OUR PURPOSE8

O UR CO M M ITME NT TO E SGAt Emerson, we continue to advanceour strategy and take actionaround environmental, socialand governance issues (ESG).We are committed toThis page includes aensuring our businessselection of topics as theypractices are sustainable,relate to our continuedand we have an integral roleESG efforts and thein enabling our customerscorresponding page numberand suppliers to do the same.or website link where youcan find more information.E N V I RO N MENTALSOCIALGOVERNAN CEOur Approach to EnvironmentalSustainability, Pages 11-12COVID-19 Response Efforts,Pages 24-25Board of Directors Policies,Pages 31-32Reducing Our GHG Emissions,Page 14Enabling Safety and Security,Page 27Recent Corporate GovernanceActions, Page 32Tracking Our EnvironmentalFootprint, Pages 16-17Workplace Safety, Pages 28-29Risk Management andOversight, Page 33Energy Source Decarbonization:Supporting Low CarbonCommitments, Page 19Diversity, Equity and Inclusion,Pages 41-46Employee Engagement, Pages 47-48Emissions Management: DivertingWaste from Landfills, Page 20Training and Development,Pages 49-50Collaborating with Universitiesaround the World, Page 22Training the Workforce ofthe Future, Pages 53-54Protecting Food Quality andEnvironmental Sustainability,Advancing the Future of OurCommunities, Pages 55-59Page 26Integrity & Ethics,Pages 34-35Supply Chain, Pages 36-39STEM Education, Pages 60-61Supporting SupplierSustainability, Page 38O U R CO M M I T M E N T TO E S G9

PLANETWe deliver sustainablesolutions that improveefficiency, reduce emissionsand conserve resources.

O UR APPROACH TO E NVI RO NME NTA L SUS TA I N A B I LIT YEnvironmental sustainabilitystrategies are a critical issuefor Emerson and industrialmanufacturers across the globe.We understand the importanthelp both Emerson and ourrole we play in advancing newcustomers reach environmentaltechnologies and solutions thatsustainability goals as we workhelp improve environmentaltogether to create a healthier,sustainability for our customerscleaner planet.and the industries they serve.This includes enabling thedeployment of low-carbon fuelsand power sources, reducingemissions leakage, improvingenergy and resource efficiency,and decreasing waste. Worldwide,our teams are driven to developand scale new innovations thatIn 2020, we took measurable stepsGreening OFEmersonGreening BYEmersonGreening WITHEmersonHow we improve our internalenvironmental sustainabilityperformanceHow we support and enableour customers’ decarbonizationand environmentalsustainability effortsHow we foster collaborationamong stakeholdersto further enhance our approachto environmental sustainabilityand define our role in makingParticipating inLE AD I N G S U S TAI NAB I LIT YI N D U S TRY FO RUM Sthe world more sustainable.Our strategy is summarized byour “Greening Of, Greening By,Greening With” framework: G REEN H O U S E G A S(G HG) EM I SS I O N S EN ERG YCO N S UMPTI O N WATERCO N S UMPTI O N2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TImplementingEMER SO N TECHN O LOG I ES ,SO LUTI O N S AN DE X PER TI S EPartnering withacademic institutions toD R IVE S U S TAI NAB LEI N N OVATI O NEngaging withgovernments globally toS UPP O R TS U S TAI NAB I LIT YRELATED P O LI CI ESAN D REG ULATI O N SPLANET11

We established an EnvironmentalThe Committee’s role is toIn 2020, CommitteeSustainability Steering Committee,recommend strategies and actionsactivities included:a decision-making body withthat help advance Emerson’s Analyzing environmentalsustainability and climatepolicy and engaging with key Launching an Environmentalindustry stakeholders andthe mission of centrally aligningstanding on environmentaland coordinating environmentalsustainability across all threeSustainability Intranet Hubdecision-makers in Europesustainability-related activitiesareas of our framework,for Emerson employees to actand China.and initiatives across Emerson.as well as to educate andas connective tissue acrossencourage the use of bestthe corporation on this topic.practices throughout Emerson. Designing a corporate-wide,Looking ahead, the Committeeplans to introduce environmentalsustainability teams at all ourThe Steering Committeelocally driven employeeglobal sites. These management-comprises Emerson’s executiveengagement initiative toled teams, open to people wholeadership and managementdrive a more sustainableare passionate about this topicteams covering all functions,culture and encourageand eager to make a measurableA Word From Emerson’s FirstChief Sustainability Of cer, Mike Trainincluding legal, finance,site-level leadership onimpact, will set goals and targetsoperations, supply chain,environmental sustainability.to achieve.Emerson is serious about focusing our efforts and purpose around environmental sustainability,and I’m proud to serve as our first Chief Sustainability Officer. In this role, I will lead our globalenvironmental sustainability strategy as we drive progress within our facilities and help ourcustomers achieve their ESG objectives. Across our company, Emerson is highly relevant toa more sustainable future with expertise, technologies, solutions and a global perspective thatcan help the world find a path forward. This section of our ESG Report details a few ways we’redoing just that, and we look forward to continuing this momentum in the years ahead.business development and2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R Tmarketing, investor relations,strategy planning. Planning additional ESGdisclosures and publishingan SASB and TCFD addendum.PLANET12

GR EEN I N G O F E ME R SO NIn the effort to improve our internalenvironmental performance,we manage our manufacturingfacilities around the world accordingto a global set of principles.Highlights of our principles include:Emerson’s business unitpresidents implement these Complying with allprinciples and are primarilyapplicable laws andresponsible for carrying outregulations.environmental compliance Working to minimizeenvironmental impact. Conserving energy. Conducting regular training. Auditing our operations.programs with support andguidance from CorporateEnvironmental Affairs. Ourgeneral counsel overseesimplementation of ourenvironmental managementprinciples and periodicallyreports performance to theAudit Committee of theBoard of Directors.We are integrating the “E”of environmental, social andgovernance into our managementprocess, including embeddingenvironmental sustainabilityinto Emerson’s growth planning.These processes are advancingEmerson as a business and helpingus drive our environmentalsustainability goals forward. Forexample, in 2020, we launchedDesigning Green BuildingsEmerson recently opened its Branson welding and assemblytechnologies’ global headquarters in Brookfield, Connecticut,United States. The new building features energy-efficient constructionmethods including space wattage limitations, energy-saving LEDlighting, automated controls for daylight harvesting and recoveringheat from manufacturing operations to help warm the facility.Learn more about Emerson’s green buildings on our website.a number of scenario analysisand road mapping pilot exerciseswith Automation Solutions inBecause our supply chainsupply chain partners andEurope and China and Commercialinfluences our overalllogistics services to support& Residential Solutions Northenvironmental impact, wesimilar environmentalAmerica to identify short-,have also started to identifyobjectives (see Page 38).medium- and long-term businessopportunities for improvementopportunities and risks as a resultamong our energy providers,of decarbonization.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TPLANET13

Reducing OurGHG EmissionsIn 2019, we made a commitmentto reduce our GHG emissionsby 20%, normalized to sales, acrossour entire global manufacturingfootprint and shared servicefacilities by 2028, measured by ourbaseline year of 2018. During the2020 fiscal year, while our overallemissions decreased from 2019,declining sales amid the COVID-19pandemic hampered furtherreductions in our GHG emissionsintensity factor (See Page 16).We are implementing strategiesand action plans to reduce ourGHG emissions worldwide. Anenergy management and GHGreduction playbook was distributedto all operations leaders acrossthe company in 2020, helpingensure best practices in emissionsreductions are implemented acrossour manufacturing sites globally.Additionally, we led virtual andin-person energy audits, whentravel restrictions allowed, toidentify site-level opportunities toreduce energy use and emissions.For example, we identifiedopportunities to reduce energyEnergyWasteWateruse and emissions at our CopelandAlliance facility in Natchitoches,Louisiana, by 4.6 million kWhand approximately 7% from afiscal 2020 baseline, respectively.At our Rosemount facility inPRO FE SS I O NA L TO O L S FACI LIT YRemscheid, GermanyReplaced fluorescent tubes with LED lightingR E D U CI N G E L EC T R I CIT Y CO N S UMPTI O NBY 12% I N FI SC A L Y E A R 2020.Chanhassen, Minnesota, weidentified opportunities to reduce1.1 million kWh in energy andapproximately 8% from a fiscal2020 baseline in emissions.Striving for Efficiencyacross Energy, Waste,Water and Raw MaterialsImplementing and enforcingenergy conservation and efficiencyEMER SO N CO RP O RATEHE ADQ UAR TER SSt. Louis, Missouri, United StatesCO PELAN DFACI LIT YAva, Missouri, United StatesREC YCLEDAPPROXI MATELY81% , O R ABO UT2 M I LLI O N P O UN DS ,of the solid waste generatedon campus in 2020.Replaced analog flowmeters with digital flowmeters to accuratelydispense water toprocess rinses,SAVI N G 5.6 M I LLI O NG ALLO N S O F WATERPER YE AR .CL I MAT E FACI L IT YRayong, ThailandCompleted several process and engineering improvementsincluding reducing air leakage from all compressors,implementing automatic shutdowns of key industrialequipment, and installing more energy efficient equipment,R E D U CI N G 450, 000 K W H O F ELEC TR I CIT YA N D 2. 2 M I L L I O N M 3 O F NAT U R AL G A S PER YE AR .Raw MaterialsME A S UREMENT SO LUTI O N S FACI LIT YBeijing, Chinatactics at our facilities in fiscal2020 contributed to reducingmore than 4.8 million kWhs. Weare also striving to reduce ourUpdated the welding process, leakage detecting andmonitoring system, and upgraded equipment,RED U CI N G 11,200 M 3 O F HELIUM PER YE AR .waste, water and raw materialusage. Some examples fromaround the world include:2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R TPLANET14

Emerson EmployeesMaking an Impact:Making EnergyManagement a PriorityPaul McAndrew is our vicepresident and general manager,Pipe and Electrical, ProfessionalTools North America. Responsiblefor some of Emerson’s largestmanufacturing operations inthe United States, Paul has trulyintegrated energy priorities intohis business unit’s managementprocess. His team of “energychampions” gathers and analyzesdaily electricity usage data, whichhas led to significant reductionsin energy intensity across thebusiness unit. While energyreduction provides cost savings,Paul says it’s about being aresponsible corporate citizen andminimizing the environmentalimpact of Emerson’s operations.PLANET15

EmissionsIntensity*GreenhouseGas Emissions*Location-basedemissions includegrid electricityemission factoraverages multipliedby the total purchasedelectricity.5.5%DECREASE39.1Tracking OurEnvironmentalFootprint: OurEnvironmental DataIn 2020, Emerson drovea 10% decrease in CO2emissions, an 11% decreasein global electricity usageand an 18.5% decrease inglobal water consumption.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R T’1836.0’1937.0in GHGemissionsintensity in2020 fromthe 2018baselinevalue’20MA R K E T- BA S E DI NT E N S IT YGHG emissions intensity is measured in Scope 1 andScope 2 (market-based) metric tons of carbon dioxideequivalent (MT CO2e) per million dollars in sales.*Emerson updated its market-based GHG emissionsintensity calculations to include renewable energy.We also conducted a thorough review of historicaldata, striving to more accurately document anddisclose our historical carbon footprint. This resultedin additional revisions to our energy consumptionand emissions data for FY18 and FY19, including thedecrease in GHG emissions intensity in 2019 fromthe 2018 baseline value, which was 7.8%.692,627 678,912Market-basedemissions includesupplier emissionfactors, netresidual factorsand renewableenergy.697,535 682,177611,523611,660173,987 172,553 154,082’18’19’20SCO PE 1:D I R EC T G HG EM I SS I O N SIncludes the combustion of fossil fuels(e.g., natural gas, fuel oil, propane,etc.) for comfort heating or otherindustrial applications at Emersonmanufacturing and nonmanufacturingfacilities worldwide.’18’19’20’18’19’20SCO PE 2:I N D I REC T G HG EM I SS I O N SIncludes the consumption ofpurchased electricity, steam or othersources of energy (e.g., chilled water)generated upstream from Emersonmanufacturing and nonmanufacturingfacilities worldwide.All GHG emissions are measured in metric tons of carbon dioxide equivalent (MT CO2e).Our emissions reporting includes all facilities within our operational control, including nonmanufacturing facilities such as warehouses,distribution centers, headquarter buildings, sales offices and engineering centers. Our greenhouse gas emissions and electricity calculations forfiscal year 2020 included 185 manufacturing facilities and 548 nonmanufacturing facilities. Our emissions intensity reporting only considersemissions from our global manufacturing footprint. Where primary activity data was not available, we have made assumptions — based onoccupancy, square footage, site use and other factors — to be thorough and transparent.PLANET16

ElectricityUse*Environmental ComplianceAs we design, engineer andmanufacture our products andsolutions, we implement controlsthat help ensure our 0and processes are safe andEmerson’s electricity usage in megawattadhere to industry standardshours, as reported by our manufacturingand nonmanufacturing facilities worldwide.and government regulations,*Emerson updated its marketbased GHG emissions intensitycalculations to include renewableenergy. We also conducted athorough review of historicaldata, striving to more accuratelydocument and disclose ourhistorical carbon footprint. Thisresulted in additional revisionsto our energy consumption andemissions data for FY18 and FY19,including the decrease in GHGemissions intensity in 2019 fromthe 2018 baseline value, whichwas 7.8%.including from an environmentalperspective. In 2020, 81% ofWaterConsumptionEmerson manufacturingfacilities received environmentalOur greenhouse gas emissions andelectricity calculations for fiscal yearcompliance reviews. Due tothe pandemic, many audits2020 included 185 manufacturing1,116,166,389’18facilities. Our water consumptionwere postponed until theycan be carried out in a safe1,156,341,118’19on our website. For 2020 finesand sanctions, please seePage 74 in our GRI Index.2 0 2 0 E M E R S O N E N V I R O N M E N TA L , S O C I A L A N D G O V E R N A N C E R E P O R Tcalculations for fiscal year 2020included 185 manufacturingfacilities. Where primary activitymanner. Learn more about ourenvironmental compliancefacilities and 548 nonmanufacturing942,189,954’20Emerson’s water usage in U.S. gallons,as reported by our manufacturingfacilities worldwide.data was not available, we havemade assumptions — basedon occupancy, square footage,site use and other factors — to bethorough and transparent.PLANET17

GR EEN I N G BY E ME R SO N The management and removalOur customers are prioritizingopportunities to enhance theirenvironmental sustainability andreach Top Quartile performance, whilereducing costs across their operations.of production emissions(e.g., through carbon captureutilization and the storage,monitoring and preventionof fugitive emissions). The growing electrificationof transportation and otherend-uses, such as heat pumps,alongside the integrationTop Quartile performance means An o

2020 EMERSON ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT CHAIR MESSAGE 5 Diversity is also top of mind for us — both within the walls of Emerson and on the Board itself. Emerson works hard to ensure the Board is a diverse group with deep expertise. Today, 50% of our members are women, people of color or of a diverse nationality.