PennEngineering®
Site Sustainability Policies

1Preface
Welcome to the PennEngineering Site Sustainability Policies Document.
At PennEngineering, we are committed to driving sustainability across all ourmanufacturing sites. This document outlines a set of sustainability-related requirements
and recommendations designed to guide us to become a more sustainable company.
Each action within these guidelines is clearly labeled as either a recommendation or arequirement, ensuring clarity on what must be done versus what should be done.
Our objective is to provide a structured pathway to achieve our sustainability goals while
highlighting any significant cost benefits that can be realized through these actions.
The guidelines contained in this document are comprehensive and may impact various
departments and groups within our organization.
It is the responsibility of site managers to champion these policies and ensure theirimplementation throughout their respective facilities. Where available, Environmental,Social, and Governance (ESG) or Sustainability teams will support the affected
departments in putting these policies into practice. They will also play a crucial role inauditing and ensuring compliance with the requirements.
Importantly, this document does not duplicate the policies laid out in the PennEngineering
Employee Handbook or regional handbooks, nor does it cover legal requirements. In
instances where local and regional laws and regulations conflict with our guidelines, thelegal requirements will always take precedence.
Recognizing the importance of continual improvement, this document is intended to be aliving resource. We will continue to evolve our practices and add new ones as we learn andprogress on our sustainability journey.
Thank you for your dedication to reviewing and implementing these practices at your sites.
Together, we can drive PennEngineering towards a more sustainable tomorrow.
Thank you,

Brian Bentrim
Global VP Sustainability
PennEngineering2What’s New
In future releases of this document, the What’s New section will highlight any policychanges, making it simple for implementers to see what actions are needed tostay compliant.

New initiatives will
be shown herein summary withlinks to the details.

3Policies
This section outlines our various policies. For quick reference, mandatory tasks will
be marked with a(tree) in the right margin, while recommended actions will bemarked with a(branch).
Each policy will explain what needs to be done and why, including the benefits. When
there are clear cost savings, these will also be briefly detailed to justify certain actions.

CoffeeCoffee provided in offices and shops should be ethically sourced. Avoid single-use
options like Keurig cups, or ensure they are recyclable and properly recycled.
Why: Much of the coffee we consume today is produced on plantations where workers
face harsh conditions, receive poor pay, and sometimes even include young laborers. By
choosing ethically sourced coffee, we ensure that we do not support these practices.
Additionally, single-use packaging has significantly increased waste in a short time.

Company Vehicles
It is highly recommended that all new company vehicles be electric. This applies tofactory vehicles such as trucks, tractors, plows, and fork trucks, as well as the cars
provided to employees.
Why: Electrical vehicles (EVs) have a larger carbon footprint during production, but
their carbon emissions during use are significantly lower. Over a typical lifespan, EVs
result in much less overall carbon emissions, especially when driven frequently.
Cost Benefit: Over the lifespan of an EV, the cost of ownership is significantly lower
compared to traditional vehicles. This reduction in cost usually outweighs any initialexpenses related to energy efficiency. Additionally, installing EV chargers at ourcompany sites and benefitting from lower electricity rates at our facilities further
decreases the overall cost of ownership.

Compressed Air Leaks
It is important to identify and fix compressed air leaks as soon as possible. Aircompressors are expensive to operate, consuming a lot of energy. Addressing air leaks
reduces both costs and emissions directly.
Why: Running the compressors to fill a system with multiple leaks wastes energy andis inefficient.
Cost Savings: It is estimated that one single leak in a compressed air system costs
about $35 annually.

4

This symbol will beused to highlight
where money canbe saved with theimplementation.

Computer Use

When not in use, monitors, computers, and other peripherals should be turned off. At
the end of the workday or shift, make sure to power them down completely. Even whenidle, these devices can consume power to stay in a ready state. Adjust your computer’s
energy settings to minimize this power draw.
Why: Each computer, screen, printer, and peripheral device may use just a bit ofelectricity, but together they add up to a significant energy draw. By turning off thesedevices when they’re not in use, you can help reduce energy waste and support ourcarbon neutrality goals.

Equipment: Electrically PoweredIt is highly recommended to use electric energy for all new equipment, including heaters,ovens, furnaces, water heaters, cleaners, and any other facility or office devices. This isespecially important for equipment with a long lifespan, as electric energy is a safer andmore sustainable option compared to natural gas, propane, or other combustible fuels.
Why: Our mission to become carbon neutral involves eliminating carbon emissions.
We’re transitioning to green electricity through on-site generation and improvements inthe electrical grid, which means more of our energy will gradually become carbon-free.
Though this shift won’t happen overnight, significant progress is being made behindthe scenes with utility companies. Eventually, all electrically powered devices will becarbon neutral. However, for any on-site combustion, we’ll need to replace equipmentwith carbon-neutral alternatives to meet our carbon neutrality goals.

Equipment: ENERGY STAR or Equivalent

All new appliances and equipment purchased must have an ENERGY STAR rating,or an equivalent. This applies to all office appliances like refrigerators, coffee pots,
and dishwashers, as well as shop equipment such as heaters, cleaners, and othermanufacturing tools.
Why: Products with the ENERGY STAR label help you save both energy and money, allwhile maintaining high performance. By consuming less energy, these products also
contribute to reducing greenhouse gas emissions, which play a role in climate change.
Visit EnergyStar.gov for more information.
Cost Benefit: Reducing electrical consumption will lower operating costs throughout
the asset’s lifetime. This typically compensates for any extra expenses related toimproving energy efficiency.

5EV Chargers
It is recommended that each site install EV chargers. This is a great way to encourage
employees to drive electric vehicles for their daily commute.
Why: One part of PennEngineering’s carbon footprint comes from employee
commutes. By encouraging and supporting the use of electric vehicles for thesecommutes, we can help reduce our overall carbon emissions.

Green Energy: Solar
Every location should explore opportunities to generate its own green energy. Solarpanels are the most common option, but other green energy systems are also viable.
Prioritize installations on rooftops first, then on existing impervious surfaces likeparking lots, and lastly on green spaces. If we own the building, we should install ourown solar systems. If we lease or rent, we can partner with or encourage the landlord
to install them.
Why: Installing our own green energy sources speeds up our move towards carbon
neutrality. While these systems alone (without batteries or energy storage) won’t keep
the lights on during brownouts or blackouts, they do prioritize our usage. Additionally,
as demand for electricity grows and strains the energy grid, local, small-scale power
generation helps ease this burden.
Cost Benefit: These systems generally have a payback period of 5 to 10 years. Although
this timeframe is longer compared to other investments, they compensate by meetingcustomer demands for increasing the use of green energy in production.

ISO 14001: Environmental Management Systems
ISO 14001 sets clear environmental goals, metrics, and methods for evaluation andreporting. It uses internationally recognized practices that can be integrated into othermanagement systems. The aim is to reduce waste and improve our environmental
impact in a sustainable and business-minded way. Each location should strongly
consider adopting these practices.
Why: Our customers appreciate our commitment to environmental practices, andthese efforts also drive us to improve continuously. By implementing these systems,
we will achieve our carbon footprint goals, adopt circularity practices, and enhance
our overall environmental impact.

ISO 45001: Occupational Health and Safety
Implementing ISO 45001 at each location should be strongly considered. This system
integrates employee safety reviews and metrics into our management processes. Likeother ISO systems, it is designed to work seamlessly with existing management systemframeworks.
Why: Implementing these practices ensures that our employees remain healthyand safe, which our customers also view as responsible behavior. By putting thesemeasures in place, management demonstrates their commitment to employee safety
and workplace improvements. This not only boosts morale but can also reduce
work-related injuries and insurance claims.

6ISO 5001 (Energy Management) or ENERGY STAR Certification
Sites should consider getting certified with ISO 50001 or ENERGY STAR. Thesecertifications help us review how we use energy and implement systems to reduce
consumption. Not only are these certifications environmentally friendly, but they also
save on electricity costs. Plus, customers often prefer vendors with these certifications.
Why: Buildings certified by ENERGY STAR use less energy and, on average, emit 35%
fewer greenhouse gases. By earning this certification, you’re helping to combat climatechange and making a positive impact on our environment. Visit EnergyStar.gov formore information.
Cost Benefit: Implementing ISO 50001 will help uncover numerous opportunities
for energy savings, leading to significant cost reductions. While the implementation
itself may not offer an immediate payback, it will reveal various other cost-saving
opportunities over time.

Lighting: LEDAll sites must switch to LED lighting by 2025. This includes areas such as production,warehousing, utilities, offices, and outdoor areas. From 2025 onward, only LED lights
will be used.
Why: LED lighting consumes less energy than any other option and lasts much longer.
This efficiency plays a vital role in helping us achieve our carbon neutrality goals.
Cost Benefit: Switching to LED lighting from traditional options offers a quick returnon investment and leads to significant cost savings.

Lighting: Motion Detection and Switching Off
To conserve energy, install motion sensors to automatically switch off lights when noone is present. Additionally, make it a habit to turn off lights in unused areas and at theend of your shift. Posting signs at exits can help reinforce this behavior. This is especially
important in low-traffic areas like bathrooms, utility closets, and back hallways, whereleaving lights on can waste significant energy.
However, safety should always come first. Ensure that parking lots and areas withobstructions or uneven surfaces remain well-lit to prevent accidents and ensure
everyone’s safety.
Why: Excess lighting not only wastes electricity but also contributes to light pollution,
which can confuse animals and insects.
Cost Benefit: Installing a basic motion-detecting switch can quickly pay for itself
through energy savings.

7Lighting: Natural Light
Maximize the use of natural light instead of relying on artificial sources. Install large
windows with diffusing shades that can be adjusted to allow light in without blocking
it completely. If indoor lighting isn’t necessary, keep it turned off.
Why: Switching to energy-efficient lighting can significantly lower electricity costs.

Going Paperless
Transitioning to a completely paperless work environment might seem ambitious, but
reducing paper use is a significant step towards being more eco-friendly. Before hitting
print, ask yourself if it’s necessary. Posting reminders near shared printers can help
reinforce this habit.
Consider purchasing recycled paper to minimize environmental impact. Remember,
paper is one of the easiest materials to recycle. Used paper can often be repurposed as
scrap paper, but ensure confidential documents are shredded, not reused.
When paper has served its purpose, recycle it. Whether shredded or whole, make sure itgoes to recyclers for reuse. Additionally, printers must be set to default to double-sided
printing—it’s a simple change that can drastically cut down paper consumption.
Why: The production of paper consumes a significant amount of water and energy, andit greatly contributes to deforestation. This industry is one of the largest consumersof water and ranks high among the most polluting industries. It’s also responsible forabout 5% of global deforestation, with some estimates suggesting that over 40% of
harvested trees are used for paper production. Additionally, the paper industry is amajor contributor to global warming pollution in the industrialized world.
Cost Benefit: Implementing this has minimal costs and can significantly reduce paperrelated expenses for your location.

Paper Products
We should source eco-friendly options for paper towels, napkins, toilet paper, and otherpaper products.
Why: Paper use significantly harms the environment in many ways.

Ride Sharing
Plants should encourage and promote ride-sharing among employees for commuting
and local off-site trips. This can be facilitated by having a list board (either paperor virtual) where people can offer or seek ride-sharing opportunities. Additionally,providing reserved parking spots for ride-share vehicles can further support andencourage this practice.
Why: Reducing commutes can significantly lower the carbon footprint of our facilities.
By sharing a ride with others, we help decrease the overall distance traveled, which
positively impacts our Scope 3 Carbon Footprint emissions score. Every mile saved
makes a difference.

8

Single-Use Plastics
Single-use plastics, as defined by the U.S. Department of the Interior, include items
such as plastic and polystyrene food and beverage containers, bottles, straws, cups,
cutlery, and disposable plastic bags. These items are designed for one-time use andthen discarded.
We should make every effort to reduce and eliminate single-use plastics in ourworkplace. For example, replace plastic cutlery and flatware with reusable metal
versions that can be washed and reused. Even paper cups with plastic linings, often
mistakenly seen as eco-friendly, can contaminate recycling streams. Instead, opt forreusable mugs, bottles, and glasses to minimize waste.
Why: Plastics take a very long time to decompose, often lasting for decades or morein their original form. Even as they break down, they leave behind microplastics thatpose serious risks to wildlife. These plastics accumulate in our oceans, lakes, ponds,
rivers, streams, and wetlands. Due to their significant environmental impact, many
countries have banned them entirely.
Cost Benefit: While reusable cutlery and flatware might have a higher upfront cost,they quickly pay for themselves over time. Although you need to be careful not toaccidentally dispose of them and some loss is inevitable, the savings are significant.
For example, 100 plastic forks cost $14 (or $0.14 per fork) on Amazon.com, while 16
metal forks are priced at $10 (or $0.63 per fork). After just five uses, the metal forks
have paid for themselves.

Trash, Recycling, Composting & Electronics Waste
Each facility must have a program in place for separating trash, recycling, and, wherepossible, composting. Proper signage and clear labeling of waste containers shouldmake it easy for employees to determine where to dispose of different types of waste.
In a manufacturing environment, scrap and disposal containers for both solid andliquid waste must also be clearly labeled to indicate what type of waste should beplaced inside.
Each plant must ensure that waste is collected by agencies that follow the establisheddisposal plan. This includes on-site composting for community or site gardens whereapplicable.
Electronics waste must be collected separately and disposed of according to local waste
disposal regulations.
Why: Properly separating trash, recycling, and other waste ensures efficient recycling
processes. It also reduces landfill waste and promotes a circular economy.

9

Water Bottles and Dispensers
Plastic water and soda bottles are everywhere, and their waste often ends up polluting
our land and waterways. Instead of relying on plastic bottles, offices should installwater filling stations. This way, employees can easily fill cups, glasses, and reusablebottles with clean water.
Why: Every year, Americans alone purchase over 25 billion water bottles, most ofwhich end up in landfills. Adding to this problem, each bottle can take up to 1,000
years to decompose, significantly contributing to plastic waste. By reducing ouruse of plastic bottles and encouraging others to do the same, we can take small but
impactful steps towards addressing this issue.

Water Leaks
Water leaks should be identified and fixed as quickly as possible. To help address leaks
promptly, place signs in bathrooms and kitchens that inform employees who to reportleaking faucets or plumbing to.
Why: Leaking faucets and running toilets can waste a significant amount of water. For
example, an open fill valve on a toilet can waste up to 4,000 gallons (15 kL) of water
every day.

Windows and Doors
Regularly inspect windows and doors to ensure they seal properly and maintain highefficiency ratings. The U.S. Department of Energy provides guidelines to help confirm
that your windows meet the sufficient ratings for your area. Often, simple actions likeadjusting stops, replacing seals, or cleaning frames can restore windows and doors to
optimal condition.
Why: Poorly sealed doors and windows can lead to significant heat loss during winterand cooling loss during summer, resulting in higher energy bills as you strive tomaintain a comfortable environment.
Cost Benefit: Replacing old windows can offer significant cost savings. Energy
efficiency companies can help you calculate the precise payback, ensuring you
understand the financial benefits of this upgrade.

10Summary
Let’s keep driving PennEngineering’s sustainability efforts forward. By collaborating witheach other and like-minded companies, we can collectively make a positive impact on theworld. We encourage all employees to not only follow these policies at work but also toincorporate them into their daily lives. Remember, every small action counts.

Thank you!

www.pemnet.com

11www.pemnet.com
www.pemnet.com/company/sustainability/

12