SUSTAINABILITY REPORTFISCAL YEAR 2023

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

FY23 SUSTAINABILITY REPORTABOUT DONALDSON
3 Chairman, President and CEO Message
4 Senior Director of Investor Relations and ESG Message
5 Company Overview
7 Sustainability Strategy and 2030 Ambitions Update

PRODUCTS
10 Delivering for our Customers
11 Enabling Low-Emissions Power Technologies
13 Product Stories

PLANET
18 Climate and Energy
19 Emissions Reduction
22 Water and Waste

PEOPLE
24 Employee Health and Safety
26 Diversity, Equity, and Inclusion
31 Community Impact

GOVERNANCE
34 Corporate and Sustainability Governance
36 Cybersecurity and Data Privacy
37 Code of Conduct
40 Company Policies and Reports
41 TCFD Report
53 SASB Index
55 GRI Index

ABOUT THIS REPORT
Donaldson’s Fiscal Year 2023 (FY23) Sustainability Report was
published on March 29, 2024, and reflects activities, goals, andinitiatives in the fiscal year (August 1, 2022, through July 31, 2023).
All quantitative company data, unless otherwise stated, reflects FY23.
Information on our company, policies, and governance can be found on
donaldson.com and ir.donaldson.com.
Forward-looking Statements
Statements in this report regarding future events and expectations,such as forecasts, plans, trends, and projections relating to Donaldson’sbusiness performance and sustainability goals are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and are identified by words or phrases such as“will likely result,” “are expected to,” “will continue,” “will allow,”“estimate,” “project,” “believe,” “expect,” “anticipate,” “forecast,”“plan,” and similar expressions. These factors include, but are notlimited to, economic, industrial, and governmental developments that
may impact our operations. These and other risks and uncertainties aredescribed in Item 1A of Donaldson’s Annual Report on Form 10-K forthe period ended July 31, 2023, and may be updated occasionally inother Donaldson reports filed with the SEC. Donaldson makes thesestatements as of the date of this report and undertakes no obligation to
update them unless otherwise required by law.
Materiality
The inclusion of information in this report should not be construed asa characterization regarding the materiality or financial impact of that
information for SEC reporting purposes. For purposes of this report,
we use the definitions of materiality in the Global Reporting Initiative(GRI) and Sustainability Accounting Standards Board (SASB) standards,
which differ from the definition used for SEC filings.

FY23 Sustainability Report | Donaldson Company, Inc.

2

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

DELIVERING INNOVATION TO IMPACT DAILY LIFE
Small steps move us toward achieving big goals.
As a leader in advanced filtration technology,
Donaldson continues to take these steps in thepartnerships we cultivate with industry leaders
and the culture and practices we foster within
our company. We partner with our customers
and deliver best-in-class solutions to real-world
challenges. The result is a broad range of productsthat help deliver innovation that improves daily life.
Sustainability is a big goal and requires a global
and connected response. Our sustainability work
includes mitigating climate change, prioritizing
health and safety, fostering an inclusive culture,and supporting our communities. No one groupor solution will achieve this work alone. Instead,sustainable solutions require strong collaborationand steady progress.
With the perspective of a more than 100-yearold company, we leverage our technology andexpertise for our customers every day as they
face significant sustainability challenges. Fromtransportation to agriculture, aerospace topharmaceuticals, Donaldson continues bringing
filtration solutions to life.
I am proud of our progress on our sustainability
priorities for FY23. Our accomplishments include
the following:

These achievements represent how we are living
out our Filtration for a Thriving Future strategy
through our products and practices to have apositive impact today and create a thriving future
for people and the planet.

• Reduced our total Scope 1 and 2 GHG
emissions by 25% from our FY21 baseline;• Grew our use of renewable energy by 21%
over FY21;• Improved our safety record by reducing thetotal recordable incident rate and the number oflife-changing incidents compared with FY22;• Improved our representation of women in
leadership roles compared with FY22;• Donated $1.2 million through the Donaldson
Foundation to benefit communities with afocus on educational initiatives; and• Submitted our first Climate Disclosure Project(CDP) questionnaire.

Tod E. Carpenter
Chairman, President, and CEO

FY23 Sustainability Report | Donaldson Company, Inc.

33

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

DELIVERING FOR OUR CUSTOMERS IS CRITICAL TO SUCCESSAs the head of ESG at Donaldson, I am excited tobuild upon our sustainability story and share ourprogress as we mature our ambitions and deepen
our related business strategy.
Donaldson’s integrated approach to sustainability
means that we use our products and practices tomake a positive impact. When we consider ourcustomers’ filtration challenges, we find ways
to make innovative products and services thatremove barriers to business growth and provide
sustainable solutions. This is not a new role for
Donaldson. For more than a century, we haveacted as trusted collaborators and innovators indeveloping products and bringing new solutions
to life.
As sustainability moves from brand differentiatorto global imperative, we continue investing intalent and technology to expand our capabilities.
Delivering for our customers is critical, and weneed to understand, anticipate, and prioritize
their needs and offer differentiated products
and solutions that enable their success. This
enablement of customer success helps shape
how we view our sustainability success andweaves our strategy into the fabric of our culture
and how we work.

We create sustainable value for our customers
by supporting a low-carbon transition, enabling
life-changing innovations, and building sustainable
partnerships. Based upon who we are as acompany, these avenues for creating value for ourcustomers are not mutually exclusive and reflect
the “how” of delivering for our customers.
Supporting a low-carbon transition means
advancing the science of filtration to drive down
the carbon output of traditional combustion
engines and energy-intensive activities while
helping our customers bring profitable new
products to market.

I invite you to read through our product stories
to learn more about this important work and its
impact on people and the planet.
Finally, I would like to thank Ashley Merrill, ourformer Director of ESG, for her contributions toadvancing sustainability at Donaldson. Last year,
she took on the role of General Manager in our
Vehicle Electrification business. While Director of
ESG, she was pivotal in growing and maturing the
program, including establishing our sustainability
strategy and 2030 Ambitions.

Enabling life-changing innovations includes
partnering with companies in various industries,
from sustainable food production to life-saving
therapeutics.
Building sustainable partnerships is done
through our deep technical expertise, provenprocesses, and collaboration. No company candrive meaningful change alone, and we standready to partner with customers who need ourexpertise to bring their ideas to life.

Sarika Dhadwal
Senior Director of
Investor Relations and ESG

4

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRICOMPANY OVERVIEW$ 3.4 B

1915

$78 M

2,800

13,000+150+

RevenueYear Founded

R&D Investment

Active Patents

Employees

Locations

Donaldson (NYSE: DCI) is a global leader in technologyled filtration products and solutions, serving a broad
range of industries and advanced markets. We work withsmall business owners to R&D organizations and theworld’s biggest OEM brands. Donaldson solves complex
filtration challenges through three primary segments:
Mobile Solutions, Industrial Solutions, and Life Sciences.
Additional information is available at donaldson.com.

Global Headquarters

Revenue by Region

10%
18%

Bloomington,
Minnesota

43%

U.S. and Canada
EMEA
APAC
Latin America

29%

External Company Recognition
7%

Newsweek
America’s Greatest Workplaces for Diversity 2024

Net Sales by
Business Segments

30%

America’s Most Responsible Companies 2024

63%

Most Trustworthy Companies in America 2023

36%

Industrial Solutions
Life Sciences

Net Sales by End Markets / Applications Served
15%

Air Filtration

Mobile Solutions

Industrial
Air

12%

Fuel andLube

10%
Hydraulic

5%5%

Emissions

Industrial
Gasses4%

4%

AerospacePowerand Defense Generation

4%

3%

2%

Other Life
Sciences

Food andBeverage

Industrial
Hydraulics

FY23 Sustainability Report | Donaldson Company, Inc.

5

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

MATERIALITY: OUR PRIORITY ESG REPORTING TOPICS
At Donaldson, our principles shape how weapproach challenges and opportunities. Engaging
with our stakeholders helps us understand andrespond to their needs, enabling us to improve andadapt how we operate, collaborate, and innovate
to drive results.
When considering our priority ESG topics, our key
internal and external stakeholder groups help us
determine and prioritize the most relevant issues.

Our initial materiality assessment completed in
FY21 considered ESG and sustainability trends andbenchmarked peer companies to determine themost pertinent issues and strategic areas relevant
to our business.
Our engagement with our stakeholders is an
ongoing process that informs our approachto reporting and the establishment of oursustainability strategy and 2030 Ambitions. In

FY24, we plan a deeper review of our priority ESG
topics through a new materiality assessment.
This work will ensure that our approach andreporting are aligned with input from ourstakeholders, including customers, employees,
investors, suppliers, and community partners.
This engagement process is critical for continued
awareness and understanding of our impact,
opportunities, and risks related to sustainability
issues for each stakeholder group.

MATERIALITY MATRIX OF ESG TOPICS
PRIORITY ESG TOPICS
Significance to Stakeholders

Environmental

Priority• Greenhouse Gas Emissions• Energy Management• Non-Hazardous Waste
Management

Material

Social• Employee Health and Safety• Diversity, Equity, and Inclusion

Important• Corporate Citizenship andPhilanthropy

Governance• Cybersecurity and Data Privacy

Significance to Donaldson• Innovation and Continuous
Improvement

ESG REPORTING
Donaldson continuously
looks for ways to improve oursustainability reporting. We
consider internationally recognizedframeworks and guidelines tosupport broader consistency.
We publish reports using theTask Force on Climate-related
Financial Disclosures (TCFD), GRI,
and SASB guidelines. In FY23,
we also submitted our first CDP
Climate Change questionnaire. The
TCFD, GRI, and SASB reports arelocated at the end of this reportor on the sustainability page at
donaldson.com/sustainability.

FY23 Sustainability Report | Donaldson Company, Inc.

6

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

This strategy represents our choices made to ensure
our products and practices have a positive impact today
and create a thriving future for people and the planet.

At Donaldson, we take an integrated approach to sustainability.
Sustainability is not a standalone initiative or goal. It is built into what
we do and why we exist as a company. Our sustainability strategy,
Filtration for a Thriving Future, is grounded by our company purpose– Advancing Filtration for a Cleaner World. This purpose is thefoundation for why we exist and create our technologies, products
and solutions.
Our sustainability strategy also holds us to deeper accountability forour company principles – act with integrity, engage and empower
our people, deliver for customers, cultivate innovation, operate safely

and sustainably, and enrich our communities. These principles are at
the heart of everything we do, guiding our behaviors, relationships
and interactions. Connecting our strategy with our principles means
greater alignment to support our sustainability efforts and achieve
our desired outcomes.
As we look to execute our strategy, integrating sustainability
throughout Donaldson’s operations, from product development
to customer support and service, will be critical. Strategy is about
choices, and our sustainability strategy represents how we prioritize
our choices to ensure we create the most value for our stakeholders.

Donaldson Company Principles
Act with
Integrity

Engage andEmpower our People

Deliver for ourCustomers

Cultivate
Innovation

Operate Safely
and Sustainably

Enrich our
Communities

FY23 Sustainability Report | Donaldson Company, Inc.

7

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGY INTO ACTION: 2030 AMBITIONSOPERATE SUSTAINABLY

OPERATE SAFETY

Help mitigate climate change

Provide safe and healthy workplaces

We aim for absolute reduction of Scope 1 and 2 GHG
emissions by 42% by the end of FY30 from a FY21 baseline.

We aim for year-over-year reduction in life-changing eventswith the goal of consistently achieving zero by the end of FY30.
Life-changing events are work-related fatalities, hospitalizations,
amputations, or vision loss due to serious injury or illness.

113,419

113,644

Scope 1

4

mt CO2e65,783

FY21

FY22

FY23

FY30

PEOPLE

PLANET

5

Scope 2

90,676

FY23

0

FY29

FY30

ENGAGE AND EMPOWER OUR PEOPLE

ENRICH OUR COMMUNITIESAdvance opportunity and equity in the workplace

Positively impact our communities through education

We aim to increase the number of women in global
leadership positions to 35% by the end of FY30
starting from a January 2023 baseline.

We aim to increase charitable giving through the
Donaldson Foundation by 25% every four years,
giving cumulatively at least $13.5M from FY22 to FY30
with a focus on education.

35%

January 2023

22%

FY23

FY30

PEOPLE

20%

PEOPLE

FY22

0

$

1.2M

$

1.2M

$

FY22

FY23

FY24

$

1.5M

$

1.5M

$

FY25

FY26

FY27

$

1.8M

$

1.8M

$

1.8M

FY28

FY29

FY30

1.5M

1.2M

FY23 Sustainability Report | Donaldson Company, Inc.

8

PRODUCTS
The products we deliver for our customers and thepractices we employ to make those products andoperate our company shape our collective impacts.

FY23 Sustainability Report | Donaldson Company, Inc.

9

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

As a global leader in technology-led filtration products and solutions, Donaldson
believes sustainability is about making the world better because we are in it.
Sustainable solutions require strong
collaborations with our customers aimed atlong-term progress. With the perspective of amore than 100-year-old company, we leverage
our technology and expertise for our customers
every day as they face significant sustainability
challenges. From aerospace to pharmaceuticals
and agriculture to transportation, Donaldson
continues to bring new innovations to market.

Our Filtration for a Thriving Future sustainability
strategy articulates our vision for this work. We
look to our products and practices for ways todrive positive change for people and the planet.
The products we deliver for our customers andthe practices we employ to make those products
and operate our company shape our collective
impacts. This strategy integration helps alignour sustainability work with our principles and is

crucial to staying true to our purpose. In particular,delivering for customers is critical because weneed to understand, anticipate, and prioritize ourcustomers’ needs, delivering differentiated products
and solutions that enable their success. This drive
to support customer success helps shape how weview our sustainability progress and weaves our
strategy into the fabric of our culture and how wework with our customers.

We define three primary ways Donaldson creates sustainability value for our customers.

Supporting Low-Carbon Transition

Life-Changing Innovations

Sustainable Partnerships

Advancing filtration to support thetransition to a lower-carbon economy.

Helping companies solve complex
filtration challenges that bring moresustainable solutions to daily life.

Leveraging deep technical expertiseto bring innovative solutions to ourtoughest customer challenges.
FY23 Sustainability Report | Donaldson Company, Inc.

10

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

Enabling Low-emission Power Technologies
As the world seeks more sustainable powersources for critical energy needs, alternative power
solutions are building a bridge to our future lowemission landscape. These innovative technologies

help us collectively move toward a lower-carbon
economy. Donaldson supports this transition by
supplying customers with filtration solutions thatenable more robust and economical alternative

Donaldson Technology
Industrial Air
Filtration Equipment
Manages emission of contaminants
into the environment and withinmanufacturing facilities; provides
combustible dust management

Battery Manufacturing

Electric Powertrain
and Battery Vents with
Tetratex™ Technology
Protect powertrain systems
and battery packs and supports
their longevity and reliability

Battery Electric Vehicles andPlug-in Hybrid Electric Vehicles

power products. Our products play key roles insupporting battery-electric applications, internal
combustion engines using alternative fuels, fuelcells, and the hydrogen energy value chain.

Industrial Air
Filtration Equipment

Liquid and Gas
Fuel Filtration

Emissions
Systems

Air Intake
Filtration

Helps manage contaminationof the environment andmanufacturing facilities;
provides combustible dust
management during end-oflife recycling operations

Enabling optimal
operations
and durability
by filtering
unwanted
contaminants

Integrated
fuel agnostic
technologies thatfilter NOx, particle
matter and oxidizing
unburned residues

Providingfiltered air
to support
performanceand engine
lifespan

Green Energy
Home Storage

Battery Recycling
Fuel Distribution

Alternative Fueled Vehicles

Battery Electric Applications

Internal Combustion Engines

From passenger cars to heavy-duty applications and home energy storage,
our products are well-suited to support battery functions critical to lowemission power solutions. Additionally, we go beyond supporting the usephase and also support battery manufacturing and recycling.

Donaldson is able to provide advanced filtration solutions forinternal combustion engines powered by alternative fuels, suchas HVO, biofuel, methanol, biodiesel blends, methane, andhydrogen. We recognize the key role these liquid and gas fuels
play in making the transition to a low-emission future.
FY23 Sustainability Report | Donaldson Company, Inc.

11

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

Donaldson Technology
Tetratex™
MembraneDe-oxidizer,
Dryers, and Filters

Providing mechanicalreinforcement
necessary for highperformance proton
exchange membrane(PEM) electrolyzers inhydrogen production

Filtering trace
amounts of oxygen,water, and othercontaminants fromraw hydrogenproduced withelectrolysis

Renewable
Energy Generation

Water
Electrolysis

Venting Solutions

Air Intake Filtration

Water Separator

Coolant Ion Exchanger

Tetratex™ technology
helps protect andsupport reliability
and life of fuel cell
enclosures

Capturing dust
particles and chemical
contaminants from the air
to support performanceand lifespan of the fuel cellManaging challenges
posed by liquid water inmultiple areas of the fuelcell system

Keeping coolant
electric conductivity
low as required forfuel cell operation

Gas Filters

Noise absorption
technology to reduce
the high-pitched noise
generated by compressor
and turbine wheel

Humidifier
Ensuring the correct
level of humidity
for the fuel cell tooperate at its best

Filtering
contaminants fromhydrogen fuelNoise Attenuation

Tetratex™ Membrane
Providing mechanicalsupport and integrityto the PEM system

Hydrogen
Fuel Cell
VehiclesGas Dryer
Storage and Distribution

Hydrogen Value Chain
Hydrogen fuel cells represent a powerful resource as the world moves toreduce its reliance on carbon-based energy sources. Our hydrogen fuel cellsolutions support ongoing advancements in fuel cell technology by promoting
effective ion transfer, while simultaneously helping protect highly sensitive
fuel cell and system components from a range of real-world contaminants.

Learn more about our solutions
by industry and application at
donaldson.com, Products & Solutions
FY23 Sustainability Report | Donaldson Company, Inc.

12

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

BIOPHARMACEUTICAL MANUFACTURING PROCESS WITH DONALDSON SOLVENT RECOVERY
Peptide Synthesis

Process
Chromatography

Filtration

Bulk Drug
Substance

New Solvent Waste Disposal Option

Traditional Solvent Waste Disposal Options
Hazardous chemical
waste disposal

Patented Process Technology
High purity achieved through solvent
recovery process, to allow reuse onsite

Fill andFinishSolvent
Recovery

Solvent andwater waste

Traditional recovery methods
are unable to reach required
purity targets for reuse

INNOVATING SUSTAINABILITY IN PHARMACEUTICAL INDUSTRY
Achieving high purity in chemical mixtures inpharmaceutical manufacturing has historicallydemanded significant time, energy, and resources.
Recognizing the need for a transformative solution,
Donaldson partnered with a chemical separations
company to bridge a crucial technology gap.
Together, we aimed to revolutionize how companies
handle waste generated during biopharmaceuticalprocess chromatography, a critical step in purifying
peptide solutions used to produce drugs for weight
loss, diabetes, and cancer.
The challenge was the disposal of waste solvent
mixtures typically containing an initial 30% solvent
by volume. Traditional disposal methods, suchas commercial recycling or incineration, are both
environmentally taxing and expensive, involving
dangerous and costly storage and transportation.
Moreover, commercially available recycling
techniques do not achieve the customer’s required
purity of solvent, thus making the reuse of solvent
not viable today.
The team used its collective knowledge andexperience to select membrane technology
to recover solvents used during peptide
manufacturing. A prototype was created todemonstrate the technology and it recovered
solvent with purity levels meeting or exceeding thatof current recovery methods. Donaldson is working

with PolyPeptide Group, one of the largest peptide
industrial manufacturers, to pilot and further develop
the technology at its facility as a next step in thisinnovation journey.
As this solution undergoes further validation tomeet FDA standards, this work supports the
production of life-changing products while positively
impacting the environment through waste reduction
and minimizing the impact of disposal processes.
Led by the commitment to solving complex filtration
challenges, this collaborative journey exemplifies
the potential of innovation to achieve technologicalbreakthroughs and shift toward sustainable andefficient practices in the pharmaceutical industry.

FY23 Sustainability Report | Donaldson Company, Inc.

13

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

NEVOLINE™ UPSTREAM PLATFORM DELIVERS LIFE-CHANGING INNOVATIONS
Donaldson’s 2023 acquisition of Univercells
Technologies, a global producer of innovative
biomanufacturing solutions for cell and genetherapy research, development, and commercial
manufacturing, represents an important step in thedevelopment of our life sciences strategy.
Prior to joining Donaldson, Univercells Technologies
had been developing its technology aimed at making
vaccines more affordable and accessible. A 2016
grant from the Bill & Melinda Gates Foundation
helped push forward the development of the
NevoLine™ Upstream platform to accelerate
manufacturing and affordable access to essential andepidemic vaccines in developing countries. In 2023,
this technology was put into action at the MADIBA
vaccine facility in Senegal, where it is helping toaccelerate the manufacturing of the measles andrubella vaccine. This technology will help increase
global capacity while reducing costs and is expected
to supply more than 60% of Africa’s required

NevoLine Upstream Platform
The footprint of upstream viral production
unit helping to fight measles and rubella

measles and rubella vaccine doses by 2040.
The NevoLine Upstream platform is also being used
to develop additional therapies and viral vaccines inclinical stages, with several commercial launches
expected soon.
Functionally, the NevoLine Upstream platform
provides integrated up- and mid-stream processing
capabilities in a single unit, driving productivity
improvements, reduced operational footprints, and

PRODUCT SUSTAINABILITY BY DESIGN
Following the creation of the ProductSustainability Impact Process (PSIP) in FY22,
Donaldson continues to invest in integrating
sustainable design practices into our strong
tradition of advancing filtration technologies
through the development of innovative
products. As we evolve our sustainable design
practice, we seek ways to inform the design

decision-making process and help teams
consider a range of impacts from design
choices, including:
•
•
•
•
•

Materials selection and reduction
Reduction of materials of concern
Manufacturing and transportation
Customer or in-use performanceEnd-of-life considerations

greater consistency of results. The system, broadly
applicable to virus manufacturing, revolutionizes
up- and mid-stream processing by seamlessly
integrating virus production, concentration, andclarification into a compact unit, setting new
standards for high-performance virus manufacturing.

PRODUCT SUSTAINABILITY IMPACT PROCESS

End-of-life
Consideration
Customer /In-use Performance

Materials Selection
and Reduction
Reductionof Materials
of Concern
Manufacturing
and Transportation

FY23 Sustainability Report | Donaldson Company, Inc.

14

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIHEAVY-DUTY TRUCK AIR CLEANER
Donaldson Fuel Cell Air-Intake Filter
Air filter with chemical and dust adsorption
layers support a long fuel cell life and efficiency.

The INDEED co-creation workshop with the Donaldson team.

Layer of chemical
adsorption media

Particlefiltration media

EMPOWERING FUEL CELL VEHICLESWITH ADVANCED AIR FILTRATION
To support our customers on their lowcarbon journey, Donaldson has createdan entirely new generation of air intake
systems to safeguard the heart of fuelcell-powered vehicles.
Fine particulates and trace amountsof polar chemicals (acids and bases)
commonly found in the atmosphere cannegatively impact fuel cell performanceand longevity. We developed anindustry-leading cathode air intake
filter to help protect fuel cells fromthis contamination. The filter uses thesynergy of a chemical filtration layer

with advanced characteristics combinedwith a layer of traditional particle
filtration media. This two-part solution
provides the comprehensive filtration
protection a fuel cell requires when
operating in on-highway environments.
Donaldson scientists and engineers
continue advancing fuel cell
filtration performance and useful life
determinations through dedicatedparticulate and chemical breakthroughlaboratory testing, advanced
performance modeling, and customer/
partner field testing.

FOSTERING SUSTAINABILITY AND
A CIRCULAR DESIGN MINDSETThe Mobile Solutions Air Development team recently
partnered with INDEED Innovation, a consulting firm that
supports businesses through product design and circularinnovation, to host a co-creation workshop aimed at inspiringand educating the team on sustainable circularity and circular
design strategies.
To broaden the Donaldson team’s perspectives, individuals
from a variety of roles, from product design to sales, andat varying seniority levels, took part. INDEED Innovation’s
facilitators challenged the team to reimagine the basic building
blocks of our mobile solutions products through a circular lens.
Focusing on selected fuel cell products, the team underwent
four rounds of co-creation group work, from ideation to
sketching and realizing tangible prototypes.
The workshop yielded sustainable insights for future
Donaldson products, and participants gained a deeper
understanding of circular design.

FY23 Sustainability Report | Donaldson Company, Inc.

15

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIA TAILORED SOLUTION FOR CLEAN
AIR AND ENERGY EFFICIENCY
Across many industrial segments, it can bechallenging to avoid environmental contaminationfrom various types of dust and other airborne
contaminants generated during operations. Thiscan become even harder when managing thedust, mist, and fume collector assets effectively
from an energy consumption perspective.
With many variables putting demands onthe equipment, solutions must encompass
customers’ unique needs and empower themwith data intelligence to make the best decisions
to manage their operations for environmental,
health, and safety compliance and enable themto preserve capital equipment. The answer isleveraging Smart-connected technology enabled
by Donaldson iCue™ Connected Filtration
Technology to facilitate proper management of
the filtration assets.
In a recent collaboration with a metal recycling
company, Donaldson developed a customized
installation to help address the technical hurdlesof fine dust removal while supporting a reduction
in environmental emission. The solution is a
tailored dust collection system based on cartridge
filters, delivering high efficiency at low differential
pressures. The design supports a compliant
workplace environment, while the upgradedtechnology provides an estimated 2.5 times

DESIGN IMPACT ASSESSMENT
Filter Differential
Pressure

Reference
SystemCARTRIDGE DUST COLLECTORS

Donaldson
High-Efficiency
Dust Collector

2.5x

reduction in power
consumption for filter
elements, resulting in
reduced CO2 emissions

Donaldson
Cartridge
SystemCO2
EmissionsPower
Consumption

reduction in power consumption for the filter
elements. It also mitigates the environmental
footprint and translates it into tangible costsavings. By integrating Donaldson’s iCue™
technology, the customer can capture data forreal-time performance monitoring, enabling
timely preventive maintenance and supporting
machinery uptime, efficiency, and life.
Our journey with this customer exemplifies ourcommitment to bringing decades of technicalexpertise to deliver advanced filtration technology
and solutions focused on end-user needs andchallenges.

FY23 Sustainability Report | Donaldson Company, Inc.

16

PLANET
Thriving Planet
At Donaldson, we help to mitigate climate change
through decarbonization in our business operations.

FY23 Sustainability Report | Donaldson Company, Inc.

17

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

Actuals (mt CO2e) and Scenario Pathways Considered

125,000

121,863

113,585 113,419

90,67675,000
Actual

1.5°C Scenario Pathway

Ideal Pathway

2030 AMBITION

2030 Ambition

25,000

FY19

FY20 FY21

FY22

FY23

FY24

FY25

Baseline

113,419

113,645
90,676

mt CO2e100,000
80,00060,00040,000

12.5

10.9

10

9.8

9.1

7.5
5

20,000

FY21
Scope 1

FY22
Scope 2

FY26

FY27

FY28

FY29

FY30
Ambition

SCOPE 1 AND 2 GHG EMISSIONS (Market based)

FY23 AMBITION PROGRESS
Donaldson’s total Scope 1 and 2 GHG emissions
decreased by 25% from our FY21 baseline. Our
reduction plan continues to be driven by our strategic
activities and investments. Our investments inrenewable energy resulted in a 21% increase
in renewable energy over FY21. This included
contributions from onsite solar generation, green
energy contracts, and the purchase of energy
attribute certificates (EACs). We also invested
in energy efficiency projects globally through acoordinated program led by our Manufacturing
Excellence team.

Business as Usual Pathway

100,000

50,000We are targeting an absolute reduction of Scope 1
and 2 GHG emissions by 42% by the end of FY30
from a FY21 baseline. This ambition, along with theexecution roadmap, is science-based and aligns with
the Intergovernmental Panel on Climate Change(IPCC) 1.5° C global warming scenario.

113,645

Emission Intensity

Our 2030 Ambition targeting a reduction in our
Scope 1 and 2 GHG emissions reflects a deep
commitment to managing our impact on climatechange. The progress achieved during FY23 is areflection of our long-term reduction strategy and theinvestments needed to accomplish this work.

2030 AMBITION – MAPPING GHG EMISSIONS REDUCTION GOAL

mt CO2e

CLIMATEAND ENERGY

FY23
Emission Intensity

Community Solar
Through partnerships
with renewable energy
developers, we generated
3,800 MWh of renewableenergy that helped green
the electric grid for our
local communities andreduced their emissions by
more than 1,300 mt CO2e.
Donaldson does not own
these energy attributes.

(mt CO2 e / Earned Hours)

FY23 Sustainability Report | Donaldson Company, Inc.

18

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIEMISSIONS REDUCTION
As of the end of fiscal 2023, we are on track to meet our GHG
emissions reduction 2030 Ambition. The major componentsof our reduction strategy include onsite and offsite renewableenergy procurement, supplier programs, operational energy
efficiency, and EAC procurement. As we execute our plan,
we consider the availability and cost implications of specificsolutions to best meet our needs within applicable global
standards.

RENEWABLE ENERGY

GHG EMISSIONS SUMMARY
Market based

FY21

FY22

FY23

Scope 1 GHG Emissions (mt CO2e)25,37926,86423,797

Scope 2 GHG Emissions (mt CO2e)

88,04086,78077,198––(10,319)

Total Scope 1 and 2 GHG Emissions (mt CO2e)

113,419

113,645

90,676

FY23 Highlights

Earned Hours* (thousands of hours)

10,453

11,636

9,941•

GHG Intensity (mt CO2e per earned hour)

10.9

9.8

9.1

We partner with renewable energy producers in global markets
to source emissions reducing solutions. We are exploring
more opportunities for renewable energy applications, energy
certificates, and subscriptions. These opportunities help us
achieve our internal plan milestones and 2030 Ambition.

More than 5,500 MWh of renewable energy wereadded to our energy mix through a green tariff contract,
PPAs, and onsite solar. Of this renewable energy, 4,760
MWh were added through a utility green tariff contract
in our location in Skarbimierz, Poland and 795 MWh ofrenewable energy were added through a direct PPA andthe first full year of energy generation from two onsite
solar installations in South Africa.

•

We mitigated more than 10,300 mt CO2e of emissions
from 22,700 MWh of energy use through the purchase of
EACs.

•

We continued to explore our options to participate in a
virtual PPA in North America, the area representing ourmost significant energy demand. This will be a critical partof our roadmap as we progress toward our GHG emissions
reduction ambition.

Energy Attributes Certificates (mt CO2e)*Earned hours represent the standard number of hours of labor and machine operation expendedin actual production during the reporting period.

Calculation Methodology

Environmental Data Management

The methodology used to calculate our
GHG emissions is in accordance with
the World Resources Institute (WRI)
GHG Protocol. Donaldson uses theoperational control approach to set ouremissions inventory boundary. Our data
includes all Donaldson manufacturing,
distribution facilities, and regional
headquarters, excluding standalone
country headquarters, sales offices, andsmall warehouses.

Over the past year, Donaldson introduced
an environmental data management
system with new processes to capturemuch of our invoice data globally forelectricity, natural gas, and water. The
new system helps improve accuracy
and provide quicker updates to better
inform decisions about renewable energy
purchases and track progress on our GHG
emissions reduction and site-level energy
efficiency goals.

FY23 Sustainability Report | Donaldson Company, Inc.

19

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

318,439

335,133
303,35640

300,000

30

200,000

30.5

28.8

30.5

Energy Intensity

Donaldson’s energy consumption decreased by
10% to 303,356 MWh due to an overall reduction
in energy demand resulting from decreased earned
hours at our production facilities. For FY23, ourrenewable energy usage grew to 7% of our totalenergy use due in part to investments to add more
renewable energy to our energy mix.

ENERGY CONSUMPTION AND ENERGY INTENSITY

MWh

ENERGY USAGE AND RENEWABLE MIX

Non-Renewable
Renewable
Energy Intensity(MWh / Earned Hours)

20

100,000RESPONSIBLE RESOURCE MANAGEMENT
Donaldson is committed to the responsible
management and continuous improvement of
our environmental and energy management
systems. We support this work through third-party
certifications, such as ISO 14001 and ISO 50001.
Donaldson has 36 sites certified to meet the
ISO 14001 Environmental Management System
requirements, and four sites have met the ISO 50001
Energy Management System requirements.

FY21

FY22

FY23

ENERGY USAGE SUMMARY
FY21

FY22

FY23

Renewable Energy (MWh)16,616

17,653

21,102

Non-Renewable Energy (MWh)301,823

317,481282,254

Total Energy Use (MWh)318,439

335,133

303,356

Earned Hours* (thousands of hours)

10,453

11,636

9,941

Energy Intensity (MWh per earned hour)

30.5

28.8

30.5

*Earned hours represent the standard number of hours of labor and machine operation expended in actual
production during the reporting period.
FY23 Sustainability Report | Donaldson Company, Inc.

20

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

OPERATIONAL ENERGY EFFICIENCYFilter Sealant Replacement

In FY23, we continued to invest in our energy
efficiency work and made progress on our GHG
emissions reduction plan. With the help of external
partners and internal experts, we continue
identifying opportunities at our facilities and within
our manufacturing processes to reduce energy
consumption and operating costs. The following are
examples of completed projects that helped reduce
our energy use.

Our Hull, U.K., plant transitioned from using afilter-sealing compound that required heat curing to
one that does not. This replacement contributed toreducing energy consumption by
47 MWh annually.
LED Lighting Upgrade
Three of our facilities in Mexico completed LED
lighting upgrades in FY23, which equated to an
estimated annualized reduction of more than
1,100 MWh annually. Most of our facilities now use
LED lighting.

ENERGY EFFICIENCY PROJECTS
FY23
Total Efficiency Projects Completed

66

Estimated Annual Energy Reduction
from Completed Projects (MWh)8,322

Estimated Annual Emission Reduction
from Completed Projects (mt CO2e) *2,900* Location-based emissions factors were used to
calculate these annualized values.

Assembly Line Energy Savings
In our production facility in Ostiglia, Italy, we
determined that many energy-consuming devices
used to assemble liquid filters could be shut down
during employee break times without negatively
impacting operations. This project reduced ourenergy consumption by 23 MWh annually.
Stevens Point, Wisconsin

AMU Replacement Project
Our production facility in Stevens Point, Wisconsin,
used five natural gas air makeup units (AMU)
to produce positive air pressure and heat in theplant during winter. Natural gas combustion was
identified as a significant source of GHG emissions.
Some of the existing units were replaced withnewer systems that helped reduce the numberof AMUs required to achieve the same effect.
This project reduced our energy consumption by
723 MWh annually.

Air Compressor Replacement
In one of our plants in Wuxi, China, we found that
replacing an existing air compressor with a higherefficiency version reduced energy consumption by
300 MWh annually.
Powder Coating Application System andPaint Process Temperature Reduction
An innovative powder paint was implemented,
and the associated process was simplified at our
Domjean, France, plant. These projects eliminatedan energy-intensive curing step and reduced our
natural gas consumption. Both projects reduced
energy consumption by more than 520 MWhannually at the plant.

BETTER PLANTS PROGRAM
Donaldson has joined the U.S.
Department of Energy’s (DOE) Better
Plants program. The Better Plants
program is a national partnership initiative
to drive significant improvement in energy
efficiency and waste and water reduction
across U.S. industries. Manufacturers
and industrial-scale energy end users
set ambitious energy savings goals
through Better Plants, develop energy
management plans, and track and reporttheir annual progress.
Our partnership with the Better Plants
program will help further improve ourcommitment to prioritizing our goal of
operating sustainably and reducing our
GHG emissions.

FY23 Sustainability Report | Donaldson Company, Inc.

21

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIWATER AND WASTE
Proper water management is critical to asustainable future. Our EHS policy outlines that
we help ensure resources, including water,
are used efficiently. EHS processes foster
risk reduction, continuous improvement, andcompliance with applicable regulations.
There was a 9% increase in water withdrawal
across all sites in FY23 compared to FY22 driven
by factors including new water-intensive productresearch and development and the impact of morewater-intensive manufacturing in our Life Sciencesbusiness segment.

TOTAL WATER WITHDRAWAL
551
500

200
100

Waste management is a material priority for
Donaldson. A global cross-functional team iscurrently working to identify a more detailed
assessment and baseline of the waste streams
we generate. The group plans to identify, prioritize,and execute best practices and opportunities toreduce, reuse, and recycle more materials in ouroperations.

FY22

FY23

RECYCLING AND NON-HAZARDOUS WASTE
26,19728,012

9,730

9,542

9,722

FY21

FY22

FY23

24,10630,000metric tons

Our non-hazardous waste generation increased
by 2% over FY22, while our waste directed tolandfills declined by 36% as sites directed morewaste to incineration. Waste diverted to recycling,including plastic, cardboard, and scrap metal,
decreased by 15% over FY22.

548

300

FY21

WASTE MANAGEMENT

503

400
megaliters

WATER MANAGEMENT

20,00010,000Recycled Material

Non-Hazardous Waste

FY23 Sustainability Report | Donaldson Company, Inc.

22

PEOPLEThriving People
We are proud of Donaldson’s global culture
which helps sustain our ability to deliver leading
products and solutions to our customers.

FY23 Sustainability Report | Donaldson Company, Inc.

23

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

As of July 31, 2023, Donaldson employed more than 13,000
full-time employees. Our diverse, global team, with a broadbase of capabilities, cultures, and perspectives, helps us
deliver for customers. Every role and individual contribution
directly impacts this work.
As our business evolves, ensuring we support ouremployees is at the heart of how we continue to deliver forour customers. We strive to attract the most capable talent
by enabling employees to do their best work and investing intheir career growth. Donaldson seeks individuals with various
experiences and backgrounds and provides training, an
inclusive culture, a safe work environment, and opportunities
for growth, helping employees meet their full potential.

EMPLOYEEHEALTHAND SAFETY
Donaldson regards Environmental, Health, andSafety (EHS) excellence as a fundamental value. We
continue to show our commitment to excellenceby providing safe and compliant workplaces
for our employees, visitors, and neighbors.
Our EHS Framework empowers our people byproviding them with the knowledge and tools
needed to identify and mitigate hazards. This isnecessary to maintain a safe and environmentallysound workplace. Our framework also acts asa global roadmap to success by providing a setof consistent procedures, policies, and tools toachieve performance improvements. Last year, weannounced our 2030 Ambition related to healthand safety. This is our first year reporting on our
progress.

2030 AMBITION
We aim to have year-over-year reductions inlife-changing events and consistently have zero
life-changing events by the end of FY30. These
events include fatalities, serious injuries, or
illnesses related to work involving employees
and temporary workers.

FY23 AMBITION PROGRESSIn FY23, we experienced four life-changing events,
a slight decrease over FY22. We continue to focus
on reducing these events each year toward our goalof achieving zero life-changing events annually.

LIFE-CHANGING EVENTS
Total Fatalities, Serious Injuries or Illnesses
FY22

FY23

Fatalities (employee andtemporary employee)00Serious injury or illness(hospitalization,
amputation or vision loss)

54Life-changing events

5

4

In FY23, Donaldson had 14 facilities
certified to the ISO 45001 Occupational
Health and Safety management systemstandard. Each facility has a third-party
evaluation of how company policies,
procedures, and actions are implemented.

FY23 Sustainability Report | Donaldson Company, Inc.

24

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIHEALTH AND SAFETY
MANAGEMENT
Donaldson’s EHS Policy and Framework
are foundational components of our global
management system and reflect industry
best practices. The EHS Framework outlines
our commitments, procedures, training,
controls, analysis, and employee involvement.
Donaldson identifies and manages exposure to
health and safety hazards through establishedprocesses and methodologies as we
continuously strive to make our workplaces
safer. A critical way in which we evaluate theeffectiveness of this system is through thecollection and review of safety metrics. Theseaid in identifying underlying causes and areused in communications to prevent future
incidents. We are encouraged by our Total
Recordable Incident Rate (TRIR) and Lost
Workday Incident Rates (LWIR) for FY23.

INCIDENT REPORTING AND
CORRECTIVE ACTIONS
The prompt and accurate
reporting of environmental,
health, and safety incidents is
critical to understanding trends
and implementing corrective andpreventive actions. Cultivatinga proactive safety culture is
crucial to properly addressing

TOTAL RECORDABLE INCIDENT RATE
1.54

1.6

LOST WORKDAY INCIDENT RATE
0.69

1.45

0.6

0.63

FY21

FY22

0.51

1.09

FY20

FY21

FY22

FY23

FY20

FY23

TRIR and LWIR are calculations of the number of recordable injuries and lost workday injuries, respectively, per 100 employees.
We classify a recordable incident as a work-related injury or illness which results in death, loss of consciousness, lost workdays,
restricted work, or medical treatment beyond First Aid.

Safety AwarenessEducation and training are essential to ensuringleadership, employees, and visitors have apractical understanding of our safety procedures
and requirements, which increases the healthand safety systems’ effectiveness. Last year,
Donaldson dedicated June as its first Global

issues as they arise and supports
our long-term ambitions. For
example, Donaldson’s facility
in Bucaramanga, Colombia,
instituted a safety campaign
and coordinated a machine risk
assessment through a third party
in FY22, which led to machine
guarding and process upgrades.
The subsequent development
and implementation of a safety

Safety Month to broaden safety awareness,make more tools and resources available, andchampion conversations around safety. Health andsafety is an everyday principle and Global Safety
Month amplifies the way we demonstrate thesignificance for our employees’ well-being.

campaign focused on detecting andpreventing workstation hazards haschanged mindsets and behaviors;
improved safety awareness,
morale, and productivity; andsignificantly reduced incident rates
at the facility. Local operations
management worked withenterprise EHS leadership to seek
prompt incident resolutions with aneye toward long-term solutions.
FY23 Sustainability Report | Donaldson Company, Inc.

25

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

DIVERSITY,
EQUITY, AND
INCLUSION (DEI)
We aim to foster a culture in which all employees
have the ability to contribute, challenge ourselves,and make a positive difference. Our company
culture respects and values all dimensions ofdiversity, including gender, race, sexual orientation,ability, background, experiences, and beliefs. Our
values of integrity, respect, commitment, andinnovation are fundamental to our culture and guideus as we continuously work to build a more diverse,
equitable, and inclusive company.
At Donaldson, DEI will continue to evolve andexpand to meet the needs of our employees,
amplify their voices, and create an environment
where differences are celebrated and valued. We
achieve this by intentionally shaping our practices,building increased accountability through dedicatedleadership, and setting measurable goals. Our 2030
Ambition outlines our aspirations and targets related
to DEI.
We believe in having a globally diverse and inclusive
culture and we know embracing the uniquenessof each individual drives innovation and helps us
exceed customer expectations. We are committed
to advancing opportunity and equity in theworkplace and aspire to recruit, retain, develop, andpromote a workforce that reflects the diversity of
the communities in which we work.

2030 AMBITION
We aim to increase the number of women in global
leadership positions to 35% by the end of FY30,
starting from a January 2023 baseline. We strive to
make progress toward gender parity and to improve
racial and ethnic representation in leadership
positions.

FY23 AMBITION PROGRESSIn FY23, the representation of women in global
leadership positions* rose to 22%, an increaseof two percentage points from our January 2023
baseline of 20%.

GLOBAL GENDER DIVERSITY(% of women)

Jan. 2023

FY23

Director and Above *

20%

22%

Managers and Supervisors

28%

29%

Professional Positions

38%

39%

Production Positions

39%

38%

Total Employees

37%

37%

* We define leadership positions as director and above.
These positions include all directors, vice presidents,and executives.

FY23 Sustainability Report | Donaldson Company, Inc.

26

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

FOSTERING AN INCLUSIVE CULTURE
Amplifying Voices
Donaldson is building a more diverse
and inclusive workplace by elevating
employees’ voices through our Diverse
Voices campaign, launched in February
2023. During heritage months, employees
were asked about their heritage andexperiences. The storytelling approachhelps to reflect the employee experience.
At Donaldson, it is not just about having
diverse faces but about ensuring thatdiverse voices are heard and appreciated.
Volunteer Champions for DEI
DEI Ambassadors are volunteers whochampion diversity and inclusion by
engaging employees and supporting
relevant activities and events. This past
year, ambassadors engaged in book clubs,
documentary events, Autism AwarenessMonth, the United Way campaign, andScience for All activities at the Minnesota
Science Museum.

CELEBRATING,
HONORING andEMPOWERING

DIVERSEVOICESAT DONALDSON(Employee participants in their own words)“I believe having diversity in theworkplace is a benefit to everyone
as it allows an opportunity for people
with different perspectives andstrengths to work together. I am happy
to see that it is valued at Donaldson.”“When I first joined Donaldson many
years ago, I was guided and mentored
by many. I think Donaldson alreadypresents a wonderful diverse team,and I am grateful to be part of it.”

DEI Living and Learning
In FY23, Donaldson launched a global
DEI learning suite. The suite contains
courses to build cultural competencyawareness and skills. Each course
centers on the importance of DEI for
innovation, team building, inclusive
leadership, and creating a workplace of
belonging and inclusivity.

Additionally, our locations in Latin
America held conferences and workshops
across seven sites in Mexico and Brazil.
In total, 2,000 employees participatedand had enlightening conversations about
how to apply DEI principles to their workand everyday lives.

FY23 Sustainability Report | Donaldson Company, Inc.

27

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIEMPLOYEERECRUITMENT
AND RETENTION
Our recruitment and retention efforts focus on
hiring, retaining, developing, and promoting
employees with diverse capabilities, cultures,backgrounds, and perspectives. Fostering a
globally inclusive culture that embraces eachindividual’s uniqueness drives innovation and helps
Donaldson better understand and meet the needsof our customers.

RECRUITMENT
Gender Parity and Racialand Ethnic Representation
Donaldson’s recruitment strategy is a criticalway in which we support our 2030 Ambition toincrease the number of women in leadership
positions and to improve racial and ethnic
representation in global leadership positions.
This strategy aims to foster a work culture thatreflects the diverse communities we serve. We
use online platforms, networking events, strategic
partnerships, and referral programs to reachpotential candidates and ensure we can accessthe best talent for our company. To enhance our
reputation as an employer of choice, Donaldson
has established several champion and ambassador
programs, including Women in Manufacturing(WiM), Society for Women Engineers (SWE),
Women in Sales Everywhere (WISE), Society of
Hispanic Engineers (SHPE), and National Societyof Black Engineers (NSBE).
FY23 Sustainability Report | Donaldson Company, Inc.

28

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

Inclusive Recruitment
Our Talent Acquisition team is intentional about
understanding the cultural nuances of different
geographies and tailoring recruitment approaches
to resonate with local candidates. Those directly
involved in recruiting are provided training andskill development courses on hiring practices andeffective and inclusive communication. A crossculture interview preparation guide for hiring
managers was also created to help support theattracting and hiring of top global talent.
Emerging Talent
Donaldson has accelerated its efforts withinternship programs, including recruiting emerging
talent through partnerships with student

groups, high schools, and colleges. Recent
college graduates can apply to the Operations
Development Associate (ODA) program. This
three-year rotational program exposes participants
to three diverse manufacturing roles in one ormore Donaldson U.S. manufacturing locations.
It helps new college graduates expand their skill
sets and accelerate their careers in manufacturing,
operations, or supply chain leadership.

well-being, and retirement savings plans. As part

Competitive Benefits

Employee Assistance Program (EAP), which

Donaldson is committed to providing employees
a positive total rewards experience throughout
their careers. In the United States, where 31% of
employees work, our benefits program consistsof robust health and welfare, time off, emotionalof this commitment, we provide comprehensive
and competitive reward packages based on local
market trends and practices.
Employees can be their best at home and work byhaving physical, emotional, and financial benefits
that support their overall well-being. We support
these broader needs through benefits like ourprovides comprehensive resources and confidential
support to help navigate the challenges in workand life, including managing stress, improving
relationships, and enhancing work-life balance forall employees and their families.
FY23 Sustainability Report | Donaldson Company, Inc.

29

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIRETENTION
Learning and Growing
To help employees continue to grow andsucceed in their careers—while keeping pacewith a rapidly changing global marketplace—
Donaldson provides multiple learning
opportunities and programs, including ondemand eLearning, facilitated training courses,
and customized development plans. One of themost popular facilitated trainings in FY23 was
Crucial Conversations for Mastering Dialogue,
a course that equips employees with powerfulskills for working through disagreements toachieve better results.

of employees would
recommend Donaldson
as a good place to work.
Communication and Employee Feedback
Donaldson intentionally creates communication
channels where employees can provide
feedback, helping us identify what we are doing
well and understand what we can do better.
In FY23, a Global Spotlight Survey was
conducted to gain insights into Donaldson’s
newly redesigned operating model. Overall,
the results helped the organization gain aclearer perspective on areas of strengthand opportunities to improve the employee
experience. Qualities of our workplace culture

we evaluated include capability, collaboration,
trust, drive, growth, and voice.
To ensure ongoing communication andtransparency among employees, town hallmeetings are regularly held with company
leadership to provide opportunities for twoway communication. These meetings address
pertinent questions and update employees
on happenings, successes, and organizationalchanges.

Town Hall Employee Meeting

Employee Resource Groups
Employee Resource Groups (ERG) arevoluntary, employee-led groups that foster
a diverse, inclusive workplace; promote
employees’ sense of belonging; and help driveorganizational change. This year, planning began
for a Donaldson Women in Manufacturing(WiM) ERG and was launched in early FY24.
Discussions are ongoing around increasing thenumber of ERGs and other networks within
the organization to improve overall employee
engagement and retention. As a Yellow Ribbon
company, we also have a veterans group thathelps foster engagement and support veterans,
active military, and their families.
Founded in 2017 at our Bloomington
headquarters, the Women’s Leadership Network
began as a resource group for women in
leadership roles. The group has an intranet site
open to all employees and continues to growprogramming to connect, inspire, and empower
individuals across the organization.

International Women’s Day 2023

FY23 Sustainability Report | Donaldson Company, Inc.

30

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRICOMMUNITY
IMPACT
Our employees’ dedication to helping each otherand the communities in which we live and work is
ingrained in our culture. In FY23, employees madea difference in both small and large ways. Beloware examples of how our team made an impact,
striving toward growing our community presence
and using our scale for good.
Supporting Families and Communities
Our U.S. employees and retirees have a long
history of supporting communities where we live
and work through the United Way contributions.
The annual United Way campaign is Donaldson’s
single largest community outreach effort. In FY23,
employees and retirees from our Bloomington
headquarters raised more than $300,000 for theannual Greater Twin Cities United Way campaign.
Employees from Donaldson plants raised morethan $65,000 for United Way chapters in theircommunities. The Donaldson Foundation matches
individual contributions to make an even moresignificant impact.
The Hull, U.K., plant supported its neighboring
community by purchasing and installing acommunity defibrillator. The defibrillator is available
to local businesses and members of the public
living in the immediate area.
Our Nicholasville, Kentucky, team held a drive forbottled water, toiletries, non-perishable items,
and cash donations for those impacted by thedevastating floods in that state.

Bike MS: MS 150 fundraiser in Minnesota

Bloomington employees and families donated tothe annual Family Partnership Backpack Drive,
which resulted in 115 supply-filled backpacks forstudents in need to start their school year.
Promoting Recycling through Giving
In Japan, 257 gently used stuffed animals and toys
were donated by employees to NPO MOTTAINAI,a nonprofit organization helping to reduce poverty
rates in the country.
Donaldson India donated new and used books
and toys to local nonprofit organizations thatserve orphans and children in under-resourced
communities. Employees in India also donatedmore than 100 blankets to people experiencing
homelessness.
More than 600 Donaldson employees in China
donated nearly four tons of clothing for recycling.
Enhancing Green Spaces
In March 2023, our employees in China
participated in “Plant Dreams for the Future.”
The team engaged in tree-planting activities toprotect and beautify the environment. This event
established a tree-planting base exclusively for

Purchase of defibrillators in Hull, U.K.

Donaldson in Xidong Ecological Park.
Our Dülmen, Germany, team received acommunity award for their 1.5 hectares flower
meadow. The three-year-old project is now hometo six beehives, with more than 40,000-60,000
bees active in the meadow. The flowers areseeded annually, providing beautiful scenery forbutterflies, bees, our employees, and visitors.
Biking for a Cause
In Haan, Germany, employees participated in a
“Come by Bike Day,” which encourages biking
to work to promote environmental friendlinessand reduce carbon dioxide (CO2) emissions.
This location also offers employees bike leasing
opportunities to help further the environmental
initiative beyond the single event.
Donaldson employees in Minnesota participatedin the annual Bike MS: MS 150 to support
the National Multiple Sclerosis Society. Team
Donaldson was the top Minnesota fundraiser, withmore than 200 riders and $219,000 raised in FY23.
Together, we have given almost $3.7 million for
MS since 2002!

FY23 Sustainability Report | Donaldson Company, Inc.

31

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

DONALDSONFOUNDATION
The mission of the Donaldson Foundation is to
impact our communities in a positive way bysupporting and investing in education. Giving
through the foundation, Donaldson’s primaryphilanthropic vehicle, exemplifies how we liveout our values as an organization. Donaldson
has created a 2030 Ambition to define how we
intend to increase the foundation’s impact.

Hand to Hand

2030 AMBITION
We aim to increase charitable giving throughthe Donaldson Foundation by 25% every four
years, giving cumulatively at least $13.5 million
from FY22 to FY30 to organizations with afocus on meeting educational needs within
Donaldson’s communities.

FY23 AMBITION PROGRESSIn FY23, the Donaldson Foundation distributed$1.2 million in funds. This funding included
grants to organizations, matching funds for U.S.
employee gifts to educational institutions, andscholarships for dependents of U.S. employees.
This level of funding is in line with our 2030
Ambition giving plan.
For more information on FY23 activities,
please see our Foundation’s annual report at
donaldson.com/foundation.

Northside Child Development Center

Jessamine Career and Technology Center

Foundation FY23 Highlights
Hand to Hand, a Thai organization that protects
and serves populations within under-resourced
communities, received a grant of $11,000.
These funds provided free preschool to 20
students, scholarships to more than 90 older
children, job training for parents, and free weekly
meals for 350 families. Also included was
funding for learning materials and equipment tofoster Science, Technology, Engineering, andMathematics (STEM) education.
Jessamine Career and Technology Center, thesecond-largest local career and technology
center in the state of Kentucky, received a grant
for $46,400. This grant was used to purchasewelding equipment for students to enhance
hands-on learning.

The foundation funded a free admission day to
the Minnesota Historical Society’s Historic Fort
Snelling in Minneapolis. The $5,500 sponsorshipenabled more than 700 people to experience thehistoric landmark and educational experiences.
This was more than double the site’s average
daily summer attendance.
Catholic Charities’ Northside Child Development
Center, an early childhood education center
serving families facing economic challenges
in Minneapolis, Minnesota, received a grant
for $20,000. The funding offered space forchildren with early care and education, while
simultaneously providing parents with training
on accessing resources, partnering with otherorganizations, and improving their parenting skills.
FY23 Sustainability Report | Donaldson Company, Inc.

32

GOVERNANCE
Strong governance ensures Donaldson’s purpose isachieved in a way that is consistent with our principles
and values. This includes acting with integrity andconsidering our impact on our stakeholders.

FY23 Sustainability Report | Donaldson Company, Inc.

33

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRICORPORATEGOVERNANCE
Investing in strong corporate governanceis critical to ensure we act with integrityby delivering on our commitments andbeing accountable for our actions. We
execute our commitment to integrityby applying high standards of ethics
and business conduct across our global
operations and with our partners.
We have built a strong governancestructure that provides transparency andaccountability for everyone at Donaldson.
We employ rigorous governance practices
and policies that guide everything wedo, including how we interact withcustomers, suppliers, governments,
investors, communities, and employees.
Our code of conduct provides guidance
and resources to our employees to help
us maintain a workplace of integrity,
respect, safety, and excellence.
The oversight roles of the Donaldson
Board of Directors, its committees,
and company management related tosustainability and climate-related risks
and opportunities are discussed in thissection.

Donaldson’s Board of Directors drives shareholder
value and guides our senior leadership team’s strategic
business decisions and governance practices. Asof the publication of this report, Donaldson has a
10-member board of directors. Tod E. Carpenter,
Donaldson’s President and CEO, is chairman, andWillard D. Oberton is the independent lead director.
Nine of the directors are non-employees and meetthe criteria for independence established by the New
York Stock Exchange and Securities and Exchange
Commission standards. The board members bringdiverse experiences, market knowledge, andbackground to Donaldson.
Three of our nine independent directors are women,
and three are people of color. The Diversity, Equity,and Inclusion section of this report provides more
information about Donaldson’s demographics anddiversity ambitions.
Donaldson’s Proxy Statement contains a more detailed
discussion of the board and its committee structure,
responsibilities, and policies at ir.donaldson.com.

BOARD OF DIRECTORS

30%

30%

Women

People of color

SENIOR LEADERSHIP TEAM

25%

13%

Women

People of color

Data as of March 2024

FY23 Sustainability Report | Donaldson Company, Inc.

34

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRISUSTAINABILITY GOVERNANCE
Donaldson’s Board of Directors oversees sustainability and ESG, including
climate-related risks and opportunities, which all inform our strategy andenterprise risk management.
• The Corporate Governance Committee has oversight of sustainability
and ESG, including climate-related risks and opportunities.
• The Audit Committee has oversight over legal, regulatory, andcompliance matters, including disclosure considerations andrequirements related to ESG. This includes climate-related risks.
• The Human Resources Committee oversees diversity and inclusion
practices and policies.

BOARD OF DIRECTORSBOARD COMMITTEES
Corporate Governance
Audit
Human Resources

SUSTAINABILITY STEERING COMMITTEE
Donaldson’s Sustainability Steering Committee guides
sustainability and ESG commitments, investments, efforts,
and progress. The steering committee, comprised of executive
leadership team members, meets periodically and governs
sustainability strategy and execution. Oversight at this level
ensures that sustainability initiatives are aligned and integrated
into our overall company strategy and practices.

SUSTAINABILITY LEADERSHIP TEAMThe Sustainability Leadership Team comprises a group of global,
cross-functional leaders from the environmental, health, andsafety (EHS), finance, human resources, operations, procurement,
and sustainability functions. The leadership team is responsible
for the development and execution of the sustainability strategy,
and its members are responsible for developing, executing, andadvancing the company’s sustainability aspirations, ambitions,actions, and achievements. The progress of this work is reported
to the steering committee periodically. Some leadership teammembers take on the role of ambition champion for a strategic
sustainability ambition or goal. The ambition champions help lead,collaborate, align resources, and report progress to the leadershipteam and steering committee.

SUSTAINABILITY AND ESG TEAMMANAGEMENT
Sustainability Steering Committee
Sustainability Leadership Team
Sustainability and ESG TeamThe Sustainability and ESG Team is the centralized function
responsible for influencing, coordinating, and driving sustainability
progress. A core function of this group is collecting and organizing
ESG data and reporting. In addition, the Senior Director of Investor
Relations & ESG and the Senior Director of Enterprise Risk
Management lead the review of climate-related responsibilities,
with oversight by the steering committee.

FY23 Sustainability Report | Donaldson Company, Inc.

35

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRICYBERSECURITY
AND DATA PRIVACY
Data and connectivity are essential to Donaldson's
operations. Digital information powers ourrelationships with customers, employees, andsuppliers, and protecting this data is critical to ourability to serve all stakeholders.
Audits and Reviews
Donaldson is committed to building a strong
cybersecurity and data privacy culture. We takeany threat and potential cyberattack seriously.
As a global corporation, we comply with industry
standards and applicable cybersecurity regulations.
We regularly engage in enterprise-wide, internal,
and external cybersecurity audits performed by
reputable and trusted audit firms to ensure we meetthese standards. Cybersecurity leadership regularly
updates the Donaldson Board of Directors and its
Audit Committee on cybersecurity strategy, program
execution, and compliance activities.
Management Approach
Donaldson’s Information Security department
oversees cybersecurity initiatives. This teamdesigns and executes a global strategy that protects
critical infrastructure, systems, and data, including
policies and standards based on ISO 27001/27002
in alignment with the Center for Internet Security
Framework. We perform monthly phishing exercises
to increase awareness and require employees tocomplete cybersecurity training specific to theirroles. Our cybersecurity policies are reviewed
annually and consist of administrative, technical,
and physical controls. Advanced cybersecurity

technologies enable us to monitor and respondactively to threats and risks at multiple levels withpreventive and detective security capabilities. Our
information infrastructure and systems are also
regularly evaluated through vulnerability assessment
and penetration testing. Management takes aproactive approach to research and invests in cyberdefense technologies.
Incident Response
If a cybersecurity incident occurs, Donaldson will
deploy emergency response and crisis teams
to manage and document the issue using our
response plans. These plans have been evaluatedthrough scenario-based practices with updates
to the plans as needed. Business continuity plansand disaster recovery capabilities are documented,
regularly assessed, and tested.

Data Privacy
Our data privacy program is built to meet therequirements of global privacy laws and theprivacy expectations of customers, vendors,
employees, and shareholders. Donaldson has
invested in significant data security and privacyrelated technologies as part of our commitment
to providing a reliable and secure environment toprocess and protect data provided by employees,
customers, and suppliers. All office employees
complete annual cybersecurity and privacy training.
The privacy team actively monitors changes tostate, national, and global privacy regulations
and tracks privacy best practices to identify andimplement enhancements to our privacy program.

FY23 Sustainability Report | Donaldson Company, Inc.

36

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

CODE OF CONDUCTWays to Speak Up

The Donaldson Code of Conduct is the foundation
for how we work, conduct business, and comply
with the law. Our code is in 17 languages andapplies to all employees,
including our executive
leadership team, boardof directors, subsidiaries,
business units, partnerships,
and joint ventures in which
Donaldson has a majority
ownership position or
exercises management
control. It sets expectations
for working with integrity, respect, safety, andexcellence in every country in which we operate
and in all business relationships.

There are several ways people can speak
up if they believe our Code of Conduct has
been violated.

Donaldson promotes a culture of honesty andtransparency. Every employee is responsible foracting ethically. During onboarding and induction
programs, employees are educated on our codeand encouraged to report known or suspectedviolations. All office employees affirm theirunderstanding and adherence to our code.

Our interactive Living Code microsite hosts
videos, learning exercises, and sessions for our
employees to deepen their understanding of andcompliance with our code. This mobile-friendly,
electronic Living Code augments our Code of
Conduct policy document and provides employeeswith an easily accessible resource to reinforce
values, policies, and expectations.

As part of our compliance program, we conduct
annual training for office employees on topics
such as our code, a respectful global workplace,securing data information, and protecting data
privacy. In FY23, more than 30,000 course
assignments pertaining to the code and related
topics were successfully completed. In addition
to annual Code of Conduct topics, employees are
assigned eLearning covering related topics relevantto their location and job responsibilities.

1. Accessing Donaldson Business Conduct
Helpline at ethics.donaldson.com
2. Speaking to an EthicsPoint operator
3. Completing a mobile-friendly web form
4. Contacting Human Resources, Legal,
Compliance, or their manager
5. Using QR codes to access mobile
device-friendly resources

A key component of acting with integrity is theability to speak up and be heard. We strongly
urge anyone who has a concern to make a report.
For ease and convenience, we provide a variety
of different resources. Through Speak Up, athird-party platform, we have multiple ways tohelp global employees ask questions and raise
concerns confidentially, in their language, in goodfaith, and without fear of retaliation.

Donaldson’s independent Audit Committee assists
the Board of Directors in fulfilling its oversight ofthe compliance program, including the Code of
Conduct and monitoring reports to the Speak Up
Business Conduct Help Line.
When making a business decision for Donaldson,
we deal with partners and customers fairly
without seeking any personal advantage, follow
our Gift and Entertainment Policy, and promptly
and fully disclose all personal relationships orother potential conflicts of interest. To help
reinforce these concepts, we will conduct a FY24
global Conflict of Interest assessment to confirm
employee commitment to this policy. This typeof training and engagement often spurs ideasharing for continuous improvements or provides
opportunities to bring concerns forward.
FY23 Sustainability Report | Donaldson Company, Inc.

37

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRISUSTAINABLE
PROCUREMENT
Donaldson expects the companies we work withto share our core values of integrity, respect, andcommitment. In keeping with our core values,
we are committed to applying high standards of
ethics and business conduct to every business
relationship we have globally, including our business
relationships with suppliers.
We expect our suppliers to conduct businessactivities within the guidelines of Donaldson’s
Supplier Code of Conduct and Sustainability Policy.
This policy, combined with the Code of Conduct,outlines our supplier expectations regarding ethics,
employment practices, anti-corruption, antitrust,
conflicts of interest, information protection,
environmental responsibility, health and safety,
compliance, quality, and animal welfare.
To verify compliance with these expectations,
Donaldson uses tools such as our supplier selfassessments, audits, and business conduct helpline(ethics.donaldson.com). In addition to Donaldson’sinternal controls and procedures, these measures
discourage and prevent improper conduct. The
Supplier Code of Conduct and Sustainability Policy
also outlines our expectations for suppliers tocomply with all applicable laws and regulations. As
we collaborate with our suppliers to meet these
expectations, we help ensure our core values andsustainability commitments extend across our
supply chain.
As of September 1, 2023, Donaldson addedsustainability to service, quality, and cost as a fourthpillar in our supplier performance evaluation system,
known as the Donaldson Buys Value scorecard.
Suppliers can earn points by showcasing theircommitment to sustainability through EcoVadis
or Carbon Disclosure Project assessments,
environmental certifications, and engagement insustainability initiatives. Our program empowers
suppliers to make meaningful contributions toenvironmental and social responsibility whilealigning with our 2030 Ambitions. Suppliers wereinvited to a training in September that provided an
overview of the program changes and included
information on how to participate.
FY23 Sustainability Report | Donaldson Company, Inc.

38

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRILABOR, HUMAN
RIGHTS, AND TRADECOMPLIANCE
Human Rights
The Donaldson Human Rights Policy formalizes ourcommitment to uphold and respect human rights
for all people. We are committed to providing safe,
compliant, and respectful workplaces at Donaldson.
Our values of integrity, respect, commitment, andinnovation are fundamental to who we are andguide us as we build a more diverse, equitable, andinclusive work environment where all individuals arevalued, respected, and empowered to pursue theirfull potential.
Our Human Rights Policy addresses environmental
responsibility, health and safety, equitable and nondiscriminatory practices, wages and working hours,
freedom of association and collective bargaining,supplier expectations, child and forced labor
restrictions, and conflict minerals. The policy also
outlines human rights risk governance and how toreport any suspected violations.
All Donaldson suppliers must provide working
conditions that are fair, non-discriminatory,
equitable, and safe. We strongly oppose any personor organization, including our suppliers, using child,slave and forced labor, or participating in humantrafficking. Donaldson is committed to compliancewith all applicable global labor laws, including
California’s Transparency in Supply Chains Act
of 2010, the U.K. Modern Slavery Act, and otherapplicable laws.

Donaldson supports this commitment to humanrights compliance and ethical violations in partthrough training and the Speak Up business conduct
help line.
Conflict Minerals and Materials Compliance
Each new supplier receives and must meet therequirements of Donaldson’s Supplier Code of
Conduct and Sustainability Policy, which includes
content on ethical sourcing, conflict minerals,
materials of concern, and sustainability.
We also require suppliers to comply with allapplicable environmental, health, and safety laws,
substance regulations, and directives, including,but not limited to, REACH, RoHS, ISPM 15, antilead regulations, Transportation HazMat/Dangerous
Goods regulations, and their global equivalents. We
communicate these requirements in our Purchasing
Terms and Conditions, Supplier Code of Conduct andSustainability Policy, and Supplier Quality Manual.
Donaldson continues working with supply chain
partners to take reasonable steps to ensure conflictminerals are not sourced in a way that would directly
or indirectly benefit armed groups responsible forserious human rights abuses in the Democratic
Republic of Congo or adjoining countries. Donaldson
expects our suppliers to provide statements andperform due diligence about the source of any
conflict minerals in the materials and products
supplied to us.
Global Trade Compliance
Because Donaldson is a U.S.-based company
operating worldwide, our policies, processes,
and people must conform to applicable importand export laws and regulations as a part ofour commitment to global trade compliance.
This is accomplished through automated tools
and regular training in export controls, importprocesses, procurement requirements, sanctions,and embargoes, which are carried out during
employee onboarding and followed by targetedtraining. Donaldson employees can access
additional information and resources about ourtrade compliance practices and policies through thecompany’s intranet site.
FY23 Sustainability Report | Donaldson Company, Inc.

39

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRICOMPANY REPORTS AND POLICIESFY23 COMPANY REPORTS
Annual Report FY23 on Form 10-K
Proxy Statement 2023
TCFD Report
SASB Index
GRI Index
Reports are available at ir.donaldson.com or on the sustainability pageat donaldson.com.

ETHICS AND COMPLIANCE RELATED POLICIESFind more information about our Code of Conduct, ethics and compliance,and other policies at donaldson.com.
Code of Conduct
Code of Conduct and Business Conduct Help Line
Human Rights Policy
Environmental, Health, and Safety Policy
Global Trade Compliance Policy
Supplier Code of Conduct and Sustainability Policy
Conflict Minerals Policy
California’s Transparency Act
UK Modern Slavery Act
Trademarks
Sustainability Report ©2023-2024 Donaldson Company, Inc.
Donaldson®, turbo D logo, Ultra-Web®, PowerCore®, Downflo®, Torit ®,Synteq® XP, LifeTec ®, iCue™, Tetratex®, NevoLine™, and the color blue are marksof Donaldson Company, Inc. All other marks belong to their respective owners.

FY23 Sustainability Report | Donaldson Company, Inc.

40

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

TCFD REPORTFISCAL YEAR 2023
The Task Force on Climate-related Financial Disclosures (TCFD) reportoutlines Donaldson’s governance, strategy, risk management, and metrics
and targets associated with climate-related risks and opportunities. With
the help of a third-party consultant, Donaldson began with the TCFD
universe of physical and transition risks and opportunities and prioritizedthem based on potential impact, likelihood, and stakeholder relevance.
The TCFD framework has been incorporated into our overall governance,risk assessment, and strategy. We will continue to evaluate our positionand strategy and increase our readiness for potential physical andtransitional risks associated with climate change.

FY23 Sustainability Report | Donaldson Company, Inc.

41

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

GOVERNANCEa) Describe the board’s
oversight of climate-relatedrisks and opportunities.

The Donaldson Company Board of Directors has oversight of sustainability and Environmental, Social, and Governance(ESG), including climate-related risks and opportunities. Sustainability, ESG, and climate-related risks and opportunities
inform our strategy and enterprise risk management.
• The Corporate Governance Committee has oversight of sustainability and ESG, including climate-related risks andopportunities.
• The Audit Committee has oversight for legal, regulatory, and compliance, including disclosure considerations andrequirements related to ESG and climate-related risks.

b) Describe management’s
role in assessing andmanaging climate-relatedrisks and opportunities.

Donaldson’s Executive Leadership Team has oversight and accountability for the day-to-day management of company
risks, including climate-related risks and how they inform overall business strategy. The Sustainability Steering Committee
and the Enterprise Risk Management (ERM) Committee provide oversight for management of the company’s climaterelated risks.
The Sustainability Steering Committee is responsible for guiding sustainability and ESG commitments, investments,
efforts, and progress. The steering committee, comprising of members of the executive leadership team, meets
periodically and governs sustainability strategy and execution. Oversight at this level ensures that sustainability initiatives
are aligned and integrated into the overall company strategy and practices.
The Sustainability Leadership Team comprises a group of global, cross-functional leaders from the environmental,
health, and safety (EHS), finance, human resources, operations, procurement, and sustainability functions. The
Sustainability Leadership Team is responsible for the development and execution of the sustainability strategy, and its
members are responsible for developing, executing, and advancing the company’s sustainability aspirations, ambitions,actions, and achievements. The progress of this work is reported to the steering committee on a periodic basis. Some
Sustainability Leadership Team members take on the role of Ambition Champion for a strategic sustainability ambition orgoal. The Ambition Champions help lead, collaborate, align resources, and report progress to the steering committee andExecutive Leadership Team.
The Sustainability and ESG Team is the centralized function responsible for influencing, coordinating, and driving
sustainability progress. A core function of this group is collecting and organizing ESG data for reporting. The Senior Director
Investor Relations & ESG and the Senior Director of ERM lead the review of climate-related responsibilities, with oversightfrom the Sustainability Steering Committee.

FY23 Sustainability Report | Donaldson Company, Inc.

42

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Donaldson performed a climate-related risk and opportunity assessment to identify the priority issues to which theorganization is exposed. With the help of a third-party consultant, Donaldson began with the TCFD universe of physical andtransition risks and opportunities and supplemented them with insights drawn from peer disclosures, industry research,and internal stakeholder interviews. These risks and opportunities were then prioritized based on potential impact,
likelihood, and stakeholder relevance. Three risks and three opportunities were identified for a further qualitative andquantitative scenario analysis.
Each of the prioritized risks and opportunities was assessed against three of the Intergovernmental Panel on Climate
Change’s (IPCC’s) Shared Socioeconomic Pathways (SSPs) and considered over a short (until 2025), medium (2026-2030)
and long (2030 to 2050) time horizon. The SSPs considered were an Aggressive Climate Action Scenario (SSP1-2.6),
Moderate Climate Action Scenario (SSP2-4.5), and Insufficient Climate Action Scenario (SSP5-8.5). These scenarios andtime horizons are described later in the Strategy section on Page 50.

Risk 1

Transition to Alternative Powertrain Technologies May Cause
Decreased Demand for Diesel Engine Filtration Products
Risk type: Market
Description: As the world transitions to a low-carbon economy, equipment using conventional carbon-intensive fuels will
likely be replaced with alternatives. The shift to alternative powertrain technologies may reduce demand for Donaldson’s
diesel engine products, such as engine air or liquid filtration products, provided by our Mobile Solutions segment.
Transition to alternative powertrain technologies in the agricultural, construction and mining machinery, commercial vehicle,
and aerospace and defense industries that our Mobile Solutions products support, will likely follow a longer transition
pathway when compared to the passenger vehicle market. In the Aggressive and Moderate Climate Action Scenarios, we
expect this demand shift from diesel to alternative powertrains to occur in the medium and long term. In the Insufficient
Climate Action Scenario, we expect a more modest transition to alternative powertrain technologies, emerging more in thelong term.

FY23 Sustainability Report | Donaldson Company, Inc.

43

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

ImpactTime horizon: Medium to long term
Magnitude of potential impact: HighPrimary potential financial impact: Decreased revenues due to reduced demand for diesel engine products
Approachb) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Donaldson continues to invest in research and development to identify technologies, products, and solutions for emerging
market segments, such as filtration products for alternative powertrain technologies, to ensure we can maintain or increase
our market share in a lower-carbon economy. Alternatives, such as hydrogen fuel cells and electric batteries, represent
versatile power solutions as the world moves to reduce its reliance on carbon-intensive energy sources. Donaldson
has decades of advanced engineering expertise and proven solutions related to hydrogen fuel cells and electric vehicle
batteries that support the efficiency and reliability of zero-emissions vehicles. Our innovative cathode air intake filtration
technologies promote system longevity by protecting fuel cell components from harsh contaminants, including dust, water,
and chemicals. Donaldson’s expanded polytetrafluoroethylene (ePTFE) membranes are integral to fuel cell proton exchange
membranes and help generate electricity by supporting efficient ion transfer within fuel cell electrode assemblies. Our fuelcell and battery vent technologies support the drive to zero emissions mobility by helping protect highly sensitive fuel celland electric vehicle battery packs.
Beyond our alternative power solutions, Donaldson is continuing to advance into the life sciences industry. These
investments hold advantage and help diversify our product offering. Our investments in life sciences will enable us toprovide more comprehensive solutions to food and beverage customers and expand our access to biopharma and otherkey life sciences markets. With a strong pipeline of opportunities for both focused organic growth and acquisitions, wehave confidence we can deliver on our strategic priorities while creating value for our stakeholders as the world transitions
to a low-carbon economy.

FY23 Sustainability Report | Donaldson Company, Inc.

44

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Risk 2:

Carbon Pricing Mechanisms
Risk type: Policy and Legal
Description: As more countries consider implementing regulations around the cost of carbon, Donaldson faces risks
related to increased operational costs, which may differ across jurisdictions in which we operate. We view these potential
regulations as an industry challenge rather than a specific risk to Donaldson. Raw materials and goods such as iron, steel,aluminum, electricity, natural gas, and hydrogen could be subject to additional taxes. These directives also may increase theprice of goods Donaldson procures or manufactures.
In the Aggressive Climate Action Scenario, we expect these carbon pricing mechanisms to increase globally, leading to aquicker reduction in the use of carbon-intensive fuels. Under the Insufficient Climate Action Scenario, we expect little to no
increase in carbon prices in the short and medium term, with large spikes in the price of carbon in the long term.
ImpactTime horizon: Medium to long term
Magnitude of potential impact: Low to medium
Primary potential financial impact: Increased capital, raw material and operational costs to comply with carbon pricing
mechanisms or the need to modify operations and product specifications to decrease the impact of carbon pricing
mechanisms
Approach
Donaldson is committed to helping mitigate climate change. We are targeting an absolute reduction of our Scope 1 and
2 GHG emissions by 42% by the end of fiscal year 2030 from a fiscal year 2021 baseline. This ambition, along with theexecution roadmap, is science-based and aligns with the Intergovernmental Panel on Climate Change (IPCC) 1.5°C global
warming scenario. By working toward our 2030 Ambition, we believe we can continue mitigating the risk associated withcarbon pricing mechanisms. Our GHG reduction ambition and roadmap include executing operational energy efficiency
projects to reduce our energy demand and a mix of renewable energy procurement strategies.

FY23 Sustainability Report | Donaldson Company, Inc.

45

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Risk 3:Business and Supply Chain Disruptions from Physical Risks
Risk type: Acute and Chronic Physical Risks
Description: Donaldson may see increased business interruption and workforce and service impacts on operations due
to climate-related events such as extreme weather events (e.g., floods, heatwaves, and storms). These climate-relatedrisks may also cause supply chain disruptions as severe weather events may hinder the movement of goods, both to ourcustomers and from our suppliers, causing strain on our supply chain, delivery of goods, and overall ability to conductbusiness. Under the Insufficient, Moderate, and Aggressive Climate Action Scenarios, Donaldson will likely see increased
exposure and severity to acute and chronic climate-related physical risks on our global operations and supply chain overthe short, medium, and long terms.
ImpactTime horizon: Short, medium, and long term
Magnitude of potential impact: Medium to highPrimary potential financial impact: Decreased revenues and higher costs due to business interruptions and productivity
lossesApproach
As the climate changes and severe weather events increase in frequency and severity, Donaldson continuously takes
steps to mitigate the risks to operations and supply chain. This assessment has identified priority acute and chronic
physical risks to Donaldson’s operations and suppliers. We continue to build contingency plans at manufacturing facilities
to increase our ability to provide customers with our products during disruptions from extreme weather events. As part ofour risk management process, we consider the concentration of our suppliers’ locations and exposure to physical risks togain insight into additional related risks to our supply chain. We also have built redundancies in our supply chain and madestrategic investments in our inventory so we may continue procuring the materials needed to manufacture our products.

FY23 Sustainability Report | Donaldson Company, Inc.

46

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Opportunity 1:

Increased Demand for Alternative Power Solutions
Opportunity type: Markets, Products and Services, Resilience
Description: As the world transitions to a low-carbon economy, our customers will look to Donaldson to provide filtration
solutions for alternative powertrain technologies. Donaldson has a tremendous opportunity to grow in this new market
by providing filtration products to support alternative powertrains, namely in hydrogen fuel cell and battery venting
applications. By becoming the filtration provider of choice for these emerging technologies, Donaldson can maintain ahigh market share in mobile filtration solutions to support revenues.
Under the Aggressive Climate Action Scenario, we expect this market for alternative powertrain filtration products
to emerge in the medium term. The market may take longer to mature under the Moderate and Insufficient Climate
Action Scenarios due to decreased regulatory incentives and mandates and customers taking longer to develop thesetechnologies to commercial scale. Donaldson has already developed product solutions for multiple alternative powertraintechnologies and will continue to monitor the evolving landscape to meet the demands of our customers.
ImpactTime horizon: Medium to long term
Magnitude of potential impact: HighPrimary potential financial impact: Revenues and market share from increased sales on alternative powertraintechnologies
Approach
Donaldson continues to invest in research and development to identify technologies, products, and solutions for
emerging market segments, such as filtration products for alternative powertrain technologies. Donaldson’s productofferings in this space already include fuel cell air intake filtration, proton exchange membranes, and fuel cell andbattery vents. Through the continuous planned expansion of products in the alternative powertrain market, Donaldson ispreparing to capitalize on the opportunity emerging from the transportation sector to transition away from conventional
carbon-intensive fuels.

FY23 Sustainability Report | Donaldson Company, Inc.

47

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Opportunity 2:

Cost Savings Due to Improved Operational Energy Efficiency
and Increased Procurement of Renewable Energy
Opportunity type: Resource Efficiency and Energy Source
Description: Donaldson has an opportunity for cost savings as we reduce our energy consumption as part of our GHG
reduction goal. As we advance our renewable energy procurement strategy to reduce our GHG emissions, we will work
to develop a portfolio of sources that can potentially deliver a predictable cost for renewable energy. Under the Aggressiveand Moderate Climate Action Scenarios, Donaldson expects to see increasing returns on investments made to reduceenergy consumption through the medium and long term. These scenarios also incorporate a faster transition to a majority
use of renewable energy, and transition risks are greater as companies face reputational risks based on increased climate
action expectations. In the Insufficient Climate Action Scenario, the global economy may see increased costs of resources
such as electricity and other fuels as changes in climate increase the need for fuels and electricity to maintain the heating
and cooling of buildings during extreme weather events.
ImpactTime horizon: Short to medium term
Magnitude of impact: Low to medium
Primary potential financial impact: Increased returns on efficiency investments and ongoing reduction of operating costs
due to reduced energy consumption
Approach
Donaldson’s GHG reduction ambition and roadmap include executing operational energy efficiency projects to reduceenergy demand. In FY23, we continued making progress against opportunities identified in our energy efficiency
assessment. Each Donaldson facility’s annual energy reduction goal aligns with our emission reduction roadmap.
The speed and scale at which Donaldson can incorporate energy efficient improvements will determine cost savings.

FY23 Sustainability Report | Donaldson Company, Inc.

48

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYa) Describe the climaterelated risks andopportunities theorganization has identified
over the short, medium,and long term.

b) Describe the impact
of climate-related risks
and opportunities on theorganization’s businesses,
strategy, and financial
planning.

Opportunity 3:

Increased Demand for Climate-friendly Filtration Products
Opportunity type: Market
Description: Customers may increasingly search for lower carbon products, and Donaldson may see
increased market share if we can incorporate and market the environmentally preferred attributes of our
product offerings. From our analysis, we may see markets for these products emerge in the medium term
under the Aggressive and Moderate Climate Action Scenarios, with the markets maturing in the long term.
These markets may take longer to emerge in the Insufficient Climate Action Scenario, with more demand in
the long term.
We expect to see increased demand across all considered climate scenarios for industrial products, especiallyfiltration products for natural gas applications. This demand could peak in the medium term for the Aggressive
Climate Action Scenario as coal and oil applications are replaced with natural gas before eventually moving
toward cleaner energy sources. Under the Moderate Climate Action Scenario, we expect demand forindustrial filtration products related to natural gas to peak later, moving toward the longer term. Finally, underthe Insufficient Climate Action Scenario, we expect demand for such products to continue increasing throughthe long term.
ImpactTime horizon: Medium to long term
Magnitude of potential impact: Low to medium
Primary potential financial impact: Increased revenues
Approach
Donaldson offers products that help our customers manage their environmental impacts and reach theirsustainability goals. Further, Donaldson invests in research and development to continue our long history ofinnovating products to help customers achieve their environmental goals. Such investments are evidenced byour life science and food and beverage acquisitions. These investments will enable us to continue providing
products with climate-related benefits.

FY23 Sustainability Report | Donaldson Company, Inc.

49

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

STRATEGYc) Describe the resilience ofthe organization’s strategy,
taking into considerationdifferent climate-related
scenarios, including a 2°C or
lower scenario.

Donaldson assessed the potential impacts of climate-related risks and opportunities through scenario analysis,
examining three time horizons and three climate scenarios. The time horizons are short (until 2025), medium(2026-2030), and long (2030-2050). The scenarios use information consistent with the Intergovernmental Panelon Climate Change’s (IPCC’s) Shared Socioeconomic Pathways (SSPs). These scenarios are:• Aggressive Climate Action Scenario: This scenario is consistent with the IPCC’s SSP1-2.6, assuming
an average global temperature increase of 1.7°C from 2041-2060 and 1.8°C from 2081-2100 comparedto the preindustrial age. This scenario is characterized by ambitious global collaboration by governments,society, and industry toward climate-related commitments, laws, and regulations determined to reduce GHG
emissions and negative environmental impacts. These measures could intensify transitional changes like new
regulations for Donaldson. The rapid reduction of GHG emissions is expected to lead to lower climate-related
events or physical risks in the long term.
• Moderate Climate Action Scenario: This scenario is consistent with IPCC’s SSP2-4.5, assuming an
average global temperature rise of 2°C from 2041-2060 and 2.7°C from 2081-2100 compared to thepreindustrial age. This scenario is characterized by moderate emissions reductions and consistent applicationof laws and provisions among governments. The moderate pace of action is expected to result in a slower
pace of emissions reductions and higher frequency and intensity of physical risks, severe ecosystem andbiodiversity loss, and large reduction of available agricultural lands.
• Insufficient Climate Action Scenario: This scenario is consistent with the IPCC’s SSP5-8.5, assuming
an average global temperature increase of 2.4°C from 2041-2060 and 4.4°C from 2081-2100 comparedto the preindustrial age. This scenario is characterized by less ambitious emissions reductions and a wide
range of laws and provisions across the globe. The lack of action is expected to result in the slowest paceof emissions reductions and highest frequency and intensity of physical risks and severe ecosystem andbiodiversity loss.
Donaldson’s priority climate-related risks and opportunities impact Donaldson in various ways over the time
horizons and scenarios considered. We believe we are well-positioned to mitigate the risks and seize theopportunities across the evaluated scenarios discussed above. Donaldson will consider the quantitative andqualitative results of the scenario analyses as we continue to evaluate our position and strategy, always with themission of advancing filtration for a cleaner world.

FY23 Sustainability Report | Donaldson Company, Inc.

50

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIRISK MANAGEMENTa) Describe the organization’s
processes for identifying andassessing climate-related risks.

The ERM Committee monitors the risk environment for Donaldson and provides direction for activities to mitigate, to an
acceptable level, the risks, including climate-related risks, that may impair our ability to achieve our goals. The committee
facilitates ongoing identification of key climate-related risks and continuous improvement capabilities for managing thoserisks.
The ERM Committee meets periodically and is composed of the Chief Executive Officer, Chief Financial Officer,
Chief Legal Officer, and other key members of leadership, which represent global business and functional areas. The
composition of the ERM Committee is intended to provide a broad knowledge of operations, strategy, and sensitivity to
the management of key risks, including climate-related risks, and related events that could significantly impair our ability tomeet our goals.
A cross-functional TCFD group, which included external advisors, was formed to advance the identification and assessmentof climate-related risks and opportunities. The group’s efforts are intended to improve our capability for identifying andmanaging climate-related risks and enhance company ERM and strategy-setting processes.

b) Describe the organization’s
processes for managing
climate-related risks.

Climate-related risks are identified and monitored through the ERM process and at the business unit level, with the
management of the specific risks occurring at the business unit level as part of our normal strategy setting process. The
process includes oversight and support from the Sustainability Steering Committee and Executive Leadership Team as
noted in the Governance section.

c) Describe how processes
for identifying, assessing,and managing climaterelated risks are integrated
into the organization’s
overall risk management.

Climate-related risks are managed as part of the company’s overall process for management of key business risks.
Business units have primary responsibility for identifying and managing risks, including climate-related risks, while the ERM
Committee monitors risk management activities through periodic reviews. The Board of Directors has responsibility for theoversight of risk management and, either as a whole or through its committees, regularly discusses with management thecompany’s risk assessments and risk management procedures and controls. Further integration and planning of climaterelated risks into overall risk management is ongoing.

FY23 Sustainability Report | Donaldson Company, Inc.

51

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

METRICS AND TARGETSa) Disclose the metrics
used by the organization toassess climate-related risks
and opportunities in linewith its strategy and risk
management process.

Donaldson is committed to helping mitigate climate change and operating sustainably. We continue to make investments,
refine practices, and prioritize climate action to reduce GHG emissions across our operations and facilities through renewableenergy investments and energy efficiency improvements.

b) Disclose Scope 1,
Scope 2, and, if appropriate,
Scope 3 greenhouse gas(GHG) emissions and therelated risks.

GHG EMISSIONS SUMMARY

The methodology used to calculate our GHG emissions is in accordance with the World Resources Institute (WRI) GHG
Protocol. Donaldson uses the operational control approach to set our emissions inventory boundary. Our data includes
all Donaldson manufacturing plants, distribution facilities, and regional headquarters, excluding standalone country
headquarters, sales offices, and small warehouses.

FY23
Scope 1 (mt CO2e)

23,797

Scope 2 location-based (mt CO2e)

81,758

Scope 2 market-based (mt CO2e)

66,879

Scope 3c) Describe the targets
used by the organization
to manage climate-relatedrisks and opportunities andperformance against targets.

Donaldson does not currently trackor report Scope 3 GHG emissions.

Donaldson’s sustainability strategy – Filtration for a Thriving Future – establishes a set of 2030 Ambitions, including a GHG
emissions reduction target. We are targeting an absolute reduction of our Scope 1 and 2 GHG emissions by 42% by the end of
fiscal year 2030 from a fiscal year 2021 baseline. This ambition, along with an execution roadmap, is science-based and aligns
with the Intergovernmental Panel on Climate Change (IPCC) 1.5°C global warming scenario.
This target was established in fiscal year 2022 by a cross-functional team of operations, procurement, sustainability, andEHS leaders. The group engaged with external subject matter experts to develop a long-term carbon reduction strategy anddetailed execution roadmap. The 2030 GHG emissions reduction target, strategy, and execution plan positions Donaldson to
make the necessary investments to help manage climate-related risks.

FY23 Sustainability Report | Donaldson Company, Inc.

52

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRISASB INDEXThe International Sustainability Standards Board (ISSB) of the IFRS Foundation is
responsible for maintaining the SASB Standards. Donaldson reports against the Industrial
Machinery and Goods standards defined by SASB’s Sustainable Industry Classification
System (SICS). The information in the report is based on data for fiscal year 2023.

Topic
Energy Management

Metric

Units

Code

Response

Total Energy Consumed

Gigajoules (GJ)

RT-IG-130a.1

1,092,082 GJ

Percentage grid electricity

Percentage (%)

RT-IG-130a.1

51%

Percent renewable

Percentage (%)

RT-IG-130a.1

7%Total Recordable Incident Rate (TRIR)

Rate

RT-IG-320a.1

TRIR = 1.09 *Fatality Rate

Rate

RT-IG-320a.1

Fatality Rate = 0 *RT-IG-320a.1

Donaldson incorporates near-miss as aleading indicator within our sites locallyand emphasizes the importance ofreviewing all work-related health andsafety incidents, including near misses.

Employee Healthand Safety

Fuel Economy andEmissions in Use Phase

Remanufacturing Design
and Services*

Near Miss Frequency Rate (NMFR)

Rate

Sales-weighted fleet fuel efficiency for medium- and heavyduty vehicles

Gallons per 1,000
RT-IG-410a.1
ton-miles

Not applicable to Donaldson

Sales-weighted fuel efficiency for non-road equipment

Gallons per hour

RT-IG-410a.2

Not applicable to Donaldson

Sales-weighted fuel efficiency for stationary generators

Watts per gallon

RT-IG-410a.3

Not applicable to Donaldson

Sales-weighted emissions of: (1) nitrogen oxides, and (2)particulate matter for: (a) marine diesel engines, (b) locomotive
diesel engines, (c) on-road medium- and heavy-duty engines,and (d) other non-road diesel engines.

Grams perkilowatt-hour

RT-IG-410a.4

Not applicable to Donaldson

Revenue from remanufactured products and remanufacturingservices

Reportingcurrency

RT-IG-440b.1

Donaldson does not have revenue fromthe remanufacturing of its products.

Reflects employees and temporary employees.

FY23 Sustainability Report | Donaldson Company, Inc.

53

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRI

Topic
Material Sourcing

MetricDescription of the management of risks associated withthe use of critical materials

Units

Code

N/A

RT-IG-440a.1

Response

Donaldson’s procurement operations span worldwide to acquire goods and services essential for our manufacturing processes, focusing on critical categories such as
media, metals, plastics, and adhesives. We prioritize responsible procurement practices, risk management, and sustainability across our global operations:• Supplier Onboarding: We enforce stringent onboarding processes, ensuring suppliers align with our values and sustainability commitments.
• Conflict Minerals Review: We engage third-party consultancies to assess suppliers’ compliance with material regulations and maintain ethical sourcing practices.
• Price Agreements: We use index agreements to help stabilize costs and mitigate financial risks associated with price fluctuations.
• Risk Mitigation: Our robust process identifies and addresses supply disruptions, exploring alternative sources and validated locations to maintain operational
continuity.
• Donaldson Buys Value: We measure supplier performance based on cost, quality, service, and sustainability criteria, supporting underperforming suppliers to improvetheir operations.
• Sustainable Procurement Program: Launched in 2023, this program incentivizes suppliers to prioritize sustainability through assessments and engagementin eco-friendly initiatives, aligning with our long-term ambitions and priorities.
These initiatives underscore our dedication to reliability, integrity, and sustainability throughout our supply chain operations.

*

Activity Metric

Units

Code

Response

Number of units produced by product category

Number

RT-IG-000.A

Proprietary

Number of employees

Number

RT-IG-000.B

13,000* full-time employees

As of July 31, 2023.

FY23 Sustainability Report | Donaldson Company, Inc.

54

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIGRI INDEX

Donaldson has reported the information cited in this GRI content index for theperiod August 1, 2022, to July 31, 2023, with reference to the GRI Standards.

GRI Standard

Disclosure Title

Response / Reference

2-1

Organizational details

Donaldson Company, Inc. is a publicly traded company listed on the New York Stock
Exchange. Corporate headquarters are located in Bloomington, Minnesota, USA.
About Donaldson (Page 5), FY23 Annual Report on Form 10-K

2-2

Entities included in the organization’ssustainability reporting

FY23 Annual Report on Form 10-K

2-3

Reporting period, frequency, and contact

Donaldson Company, Inc. reports annually in accordance with our fiscal year.
Email sustainability@donaldson.com with questions about this report.
About This Report (Page 2)

2-4

Restatements of information

None

2-5

External assurance

We have not sought external assurance at this time.

2-6

Activities, value chain, andother business relationships

FY23 Annual Report on Form 10-K, 2023 Proxy Statement

2-7

Total employees

FY23 Annual Report on Form 10-K

2-8

Total workers who are not employees

FY23 Annual Report on Form 10-K

2-9

Governance structure and composition

FY23 Annual Report on Form 10-K, 2023 Proxy Statement

2-10

Nomination and selection of thehighest governance body

FY23 Annual Report on Form 10-K, 2023 Proxy Statement

2-11

Chair of the highest governance body

FY23 Annual Report on Form 10-K, 2023 Proxy Statement

2-12

Role of the highest governance bodyin overseeing the management of impacts

FY23 Annual Report on Form 10-K, 2023 Proxy Statement,

2-13

Delegation of responsibility
for managing impacts

FY23 Annual Report on Form 10-K, 2023 Proxy Statement,

FY23 Sustainability Report | Donaldson Company, Inc.

55

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIGRI Standard

Disclosure Title

Response / Reference

2-14

Role of the highest governance bodyin sustainability reporting

Sustainability Report (Pages 34-35)

2-15

Conflicts of interest

Code of Conduct, Sustainability Report (Page 37)

2-16

Communication of critical concerns

FY23 Annual Report on Form 10-K, 2023 Proxy Statement,
Sustainability Report (Pages 37)

2-17

Collective knowledge of the highest governance body2023 Proxy Statement

2-18

Evaluation of the highest governance body’s performance

2023 Proxy Statement

2-19

Remuneration policies

2023 Proxy Statement

2-20

Process to determine remuneration

2023 Proxy Statement

2-21

Annual total compensation ratio

2023 Proxy Statement

2-22

Statement on sustainable development strategy

Sustainability Report (Pages 6-8)

2-23

Policy commitments

Code of Conduct, Human Rights Policy, Sustainability Report (Page 40)

2-24

Embedding policy commitments

Code of Conduct, Human Rights Policy, Sustainability Report (Page 40)

2-25

Processes to remediate negative impacts

Code of Conduct, Human Rights Policy, Sustainability Report (Page 40)

2-26

Mechanisms for seeking advice and raising concerns

Code of Conduct

2-27

Compliance with laws and regulations

Code of Conduct, Sustainability Report (Pages 40)

2-28

Membership associations

Donaldson partners with many organizations, including industry
partners, governments, and nongovernmental organizations,as we pursue our sustainability ambitions. We make reference
to key partnerships in the Sustainability Report.

2-29

Approach to stakeholder engagement

Sustainability Report (Pages 6)

FY23 Sustainability Report | Donaldson Company, Inc.

56

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIGRI Standard

Disclosure Title

Response / Reference

3-1

Process to determine material topics

Sustainability Report (Pages 6)

3-2

List of material topics

Sustainability Report (Pages 6)

3-3Management of material topics

Sustainability Report (Pages 6)

201-1

Direct economic value generated and distributed

FY23 Annual Report on Form 10-K

201-2

Financial implications and other risks andopportunities due to climate change

TCFD Report (Page 41)

201-3

Defined benefit plan obligations
and other retirement plans

FY23 Annual Report on Form 10-K

201-4

Financial assistance received from government

FY23 Annual Report on Form 10-K

203-1

Infrastructure investments and services supported

FY23 Annual Report on Form 10-K

203-2

Significant indirect economic impacts

FY23 Annual Report on Form 10-K

204-1

Proportion of spending on local suppliers

FY23 Annual Report on Form 10-K

205-1

Operations assessed for risks related to corruption

FY23 Annual Report on Form 10-K, Code of Conduct,
Supplier Code of Conduct and Sustainability Policy

205-2

Communication and training aboutanti-corruption policies and procedures

FY23 Annual Report on Form 10-K, Code of Conduct,
Supplier Code of Conduct and Sustainability Policy

205-3

Confirmed incidents of corruption and actions taken

FY23 Annual Report on Form 10-K, Code of Conduct,
Supplier Code of Conduct and Sustainability Policy

206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

FY23 Annual Report on Form 10-K, Code of Conduct

302-1

Energy consumption within the organization

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

302-2

Energy consumption outside of the organization

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

FY23 Sustainability Report | Donaldson Company, Inc.

57

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIGRI Standard

Disclosure Title

Response / Reference

302-3

Energy intensity

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

302-4

Reduction of energy consumption

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

303-1

Interactions with water as a shared resource

Sustainability Report (Pages 22)

303-2

Management of water discharge-related impacts

Sustainability Report (Pages 22)

303-3

Water withdrawal

Sustainability Report (Pages 22)

305-1

Direct (Scope 1) GHG emissions

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

305-2

Energy indirect (Scope 2) GHG emissions

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

305-3

Other indirect (Scope 3) GHG emissions

Not available for disclosure at this time.

305-4

GHG emissions intensity

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

305-5

Reduction of GHG emissions

Sustainability Report (Pages 18-21),
CDP Response (FY23 data published after Sustainability Report)

305-6

Emissions of ozone-depleting substances (ODS)

CDP Response (FY23 data published after Sustainability Report)

305-7

Energy consumption outside of the organization

CDP Response (FY23 data published after Sustainability Report)

306-1

Waste generation andsignificant waste-related impacts

Sustainability Report (Pages 22)

306-2

Waste by type and disposal method

Sustainability Report (Pages 22)

306-3

Waste generated

Sustainability Report (Pages 22)

306-4

Waste diverted from disposal

Sustainability Report (Pages 22)

FY23 Sustainability Report | Donaldson Company, Inc.

58

ABOUT DONALDSON | PRODUCTS | PLANET | PEOPLE | GOVERNANCE | TCFD | SASB | GRIGRI Standard

Disclosure Title

Response / Reference

403-1

Occupational health and safety management system

Sustainability Report (Pages 24-25)

403-2

Hazard identification, risk assessment,
and incident investigation

Sustainability Report (Pages 24-25)

403-3

Occupational health services

Sustainability Report (Pages 24-25)

403-4Worker participation, consultation, and communication
on occupational health and safety

Sustainability Report (Pages 24-25)

403-5

Worker training on occupational health and safety

Sustainability Report (Pages 24-25)

403-6

Promotion of worker health

Sustainability Report (Pages 24-25)

403-8

Workers covered by an occupational health and safety
management system

Sustainability Report (Pages 24-25)

403-9

Work-related injuries

Sustainability Report (Pages 24-25)

403-10Work-related ill health

Sustainability Report (Pages 24-25)

404-2

Programs for upgrading employee skills and transition
assistance programs

Sustainability Report (Pages 29)

405-1

Diversity of governance bodies and employees

Sustainability Report (Pages 34-35)

408-1

Operations and suppliers at significant risk
for incidents of child labor

Supplier Code of Conduct and Sustainability Policy, Human Rights Policy

409-1

Operations and suppliers at significant risk
for incidents of forced or compulsory labor

Supplier Code of Conduct and Sustainability Policy, Human Rights Policy

413-1

Operations with local community engagement, impact
assessments, and development programs

Sustainability Report (Pages 31-32)

414-1

New suppliers that werescreened using social criteria

Supplier Code of Conduct and Sustainability Policy, Supplier Self-Assessment

FY23 Sustainability Report | Donaldson Company, Inc.

59

Donaldson Company, Inc.
Global Headquarters
1400 West 94th Street
Bloomington, MN 55431

donaldson.com
linkedin.com/company/donaldson