2023
SUSTAINABILITY REPORT

Watts • 2023 Sustainability Report1Table of Contents
03 Chief Executive Officer Message

04 Chief Sustainability Officer Message
05 Corporate Profile
07 ESG Strategy
15 Footprint
27 Handprint
43 Social Responsibility
55 Corporate Governance
65 About this Report
66 Appendix

Right: National Backflow Prevention Day in the U.S., an official event createdby Watts to highlight the importance of backflow prevention, educate
the public about this life-saving technology, and recognize water-quality
professionals responsible for installing and maintaining backflow preventers

Watts • 2023 Sustainability Report

Please consider the environment before
printing this report.

2

A Message From Our Chief Executive Officer
In 1874, Joseph Watts began developing a seriesof steam and water pressure regulators that would
safeguard textile mill workers against catastrophic boiler
failures. It was in his small machining shop in Lawrence,
Massachusetts, where our company was founded —creating a ripple effect that would grow to positively
impact communities and people around the globe. Today,
we reflect on 150 years of close partnerships with ourcustomers, tireless efforts of our people, and continuous
improvement of innovative technologies — all to help
make water safer and more accessible.

Today, we reflect on
150 years of close
partnerships with ourcustomers, tirelessefforts of our people,
and continuous
improvement ofinnovative technologies— all to help makewater safer and moreaccessible.

We embark on our next 150 years on strong financial
footing, driving operational and commercial excellence,
continued growth, and further development of an
inclusive organization. During a record-breaking 2023,
we exceeded $2 billion in sales for the first time andimproved adjusted operating margin to a record 17.8%,
despite a challenging macro environment. We also madesignificant long-term investments to meet the current andfuture demands of our customers. Among these were
investments in our digital strategy and the successfulacquisitions of Bradley Corporation and Enware Australia
in 2023, and Josam Company in 2024 — each bringing
its own unique contributions and opportunities to support
our long-term strategy. Integration has been going welland we are excited to add them to our family of brands.
We also achieved an ambitious goal set in early 2019
to expand our smart and connected enabled productportfolio to comprise 25% of total revenues, compared

Watts • 2023 Sustainability Reportto a 2018 baseline of high single-digits. Investments in
our Smart & Connected strategy are delivering superior
customer value with innovative solutions to promotewater safety, energy efficiency, and water conservation.
Additional investments in 2023 were aimed at supporting
our customers in joining the global transition toward
decarbonization, particularly through expanding ourportfolio of electrically powered water heating products
for our customers.

In addition to supporting our customers with innovations
to reduce their environmental impacts, we have taken
significant steps to minimize our own impacts andprotect the communities where we operate. We are proudof our work in 2023 to advance water stewardship, acollaborative mission furthered by our dedicated teams
around the world and engagement with industry peers.
These efforts resulted in a 62% reduction in our own
water use intensity since 2018.
Watts innovations would not be possible without ourpeople. In 2023, we were proud to have our headquarters
named one of the Top Places to Work by The Boston
Globe. The incorporation of inclusivity as part ofour strategic pillars, cultural behaviors, and global
performance management is helping to build a highperformance, values-driven culture that welcomes andcelebrates every employee. By the end of 2025, we plan
to offer leadership and inclusivity training to every Watts
employee globally.

Our teams have also looked outside our walls togenerate impact, leveraging our expertise andcommitment to water stewardship to support access tosafe water for local communities around the world. Our
ongoing partnership with the Planet Water Foundation
provided clean drinking water to nearly 15,000 children
and community members in Cambodia, Indonesia,
Vietnam, and the Philippines in 2023. In addition, we
have committed to donating up to $1 million to nonprofit
organizations dedicated to water-related causes andother issues of importance to our communities, from2024 through 2027.
For the past 150 years, our mission has been driven
by the belief that safeguarding water isn’t just abusiness endeavor, it’s an obligation. And we did all
this while maintaining our strong commitment to ethicalbusiness practices consistent with our Values andCode of Conduct. Looking ahead, we are committed tocontinuing this journey with even greater determination,
and we thank you for your unwavering trust, support,
and partnership.
Sincerely,

Robert J. Pagano, Jr.
CEO, President, and Chairperson of the Board

3

A Message From Our Chief Sustainability Officer

These efforts reflect
our strong belief that
preparing for andaddressing the impactsof climate change
is foundational tofulfilling our mission.

We are pleased to share with you our eighth annual
sustainability report, highlighting the significant strides
we made in 2023 to integrate sustainability at every levelof our business. These efforts reflect our strong belief
that preparing for and addressing the impacts of climatechange is foundational to fulfilling our mission: improving
comfort, safety, and quality of life for people aroundthe world through our expertise in water technologies.
We are proud of the advancements we’ve made overthe past year — throughout our supply chain andoperations, in our approach to product strategy anddesign, and through engagement with our employees
and communities.
Since 2018, we have worked toward achieving a setof goals related to our environmental performance.
For the first time this year, we are expanding thesustainability performance goals we track and reporton by adding measurable and timebound goals acrossall four pillars of our strategy: Footprint, Handprint,
Social Responsibility, and Corporate Governance.
We developed these goals with the intention to better
drive our performance across the entire spectrum of oursustainability strategy.
Over the past 10 years, we have reduced our global
water usage by over 93 million liters. This achievement
far surpassed our original goal to reduce water use

Watts • 2023 Sustainability Reportintensity by 3% annually — or a total of 15% by 2023 —and represents a 62% reduction in water use intensity
since 2018. Still, as a global leader in water stewardship,
we believe we can do more and have committed tocontinue to target 3% annual reductions through 2026.
We are extending this progress from our sites to ourcommunities and beyond — sharing our knowledge andlearnings with partners and peers to accelerate water
stewardship across multiple sectors.
This year, we have taken the important step of
establishing an absolute carbon emissions reduction
target, a change from our previous approach of targeting
reduced emissions intensity. By 2034, our goal is to
reduce our absolute carbon emissions by 30%. To
achieve this new goal, we plan to target our highest
emitting activities and implement efficient solutions, inaddition to installing renewable energy onsite at
our facilities.
A critical piece of our carbon reduction strategy will be
the measurement of emissions throughout our value
chain. In 2023, we continued to enhance visibility into
the sustainability performance of our supply chain,embarking on a robust engagement process with our top
100 suppliers in collaboration with EcoVadis. By 2026,
we expect to have systems in place to track our Scope 3
emissions, a significant first step in driving reductions.

As we actively manage our footprint and generatesavings across our operations, we are also working
to increase the environmental and social value ofour products and services to society. This work
includes targeted improvements in how we design andmanufacture our products, investments in life cycle
assessments (LCAs), and improving transparency for ourcustomers through completion of Environmental ProductDeclarations (EPDs). By 2025, we aim to complete LCAs
for more than 5,000 of our products, prioritizing sites andproducts with potential for the most significant impact.
We believe one of our greatest opportunities to support
the transition toward decarbonization is through ourinnovative product offerings, most notably our electricallypowered heating solutions.
All our actions have ripple effects. We are working withurgency to meaningfully contribute to the global effort tocombat climate change and preserve our most precious
natural resource, water, for generations to come.
Sincerely,

Kenneth R. Lepage
General Counsel and Chief Sustainability Officer

4Corporate Profile

MISSION• To improve comfort, safety, andquality of life for people around theworld through our expertise in awide range of water technologies

ABOUT WATTS WATER TECHNOLOGIES, INC.

Watts Water Technologies, Inc., through its family of companies (“Watts”), is a leading provider of solutions designed to promote safety, energy efficiency, andwater conservation in the commercial, industrial, and residential markets of the Americas and Europe, and Asia-Pacific, the Middle East, and Africa (APMEA).
For 150 years, Watts has designed and produced valve systems that safeguard and regulate water systems, energy efficient heating and hydronic systems,
drainage systems, and water filtration technology that helps purify and conserve water.

• To be the best in the eyes ofour employees, customers, andshareholders

Headquartered in North Andover, Massachusetts, USA, Watts Water Technologies, Inc. was incorporated in Delaware in 1985 as the parent company of Watts
Regulator Co. and trades on the New York Stock Exchange (NYSE) under the stock symbol WTS.
REVENUEVISIONSOME OF OUR BRANDS

We report on our annual net sales for eachof the three geographic segments in which
we operate our business globally. The
regional net sales percentages and the total
are for the year ended December 31, 2023.

• To be the global leader in providing
innovative, high-quality products,
systems, and solutions for theconveyance, conservation, control,and safe use of water through afocus on customers, innovation,and continuous improvement

6%

APMEA

R

VALUES• Integrity and Respect: Doing theright thing in the right way, always• Accountability: Focusing on
results; do what you say you’regoing to do

$2.1B
TOTAL

25%
EUROPE

Watts • 2023 Sustainability Report69%

AMERICAS• Continuous Improvement andInnovation: Maintaining a customer
focus; improving every day• Transparency: Demonstrating
candor and openly sharing
information

5

Corporate Profile*

29% HVAC AND GAS PRODUCTS
62% WHOLESALERS• Wholesale distributors
for commercial andresidential applications

19% SPECIALTY• High-efficiency boilers andwater heaters, water-filtrationand conditioning products
and solutions, specialty
floor and tile products, foodservice products, and leakdetection products

CustomersandMarkets

15% ORIGINAL EQUIPMENTMANUFACTURERS (OEMS)• Americas: Water-heater manufacturers andequipment and water-systems manufacturers needingflow control devices and other products• Europe: Boiler manufacturers and radiant-system manufacturers• APMEA: Water-heater, air-conditioning, and appliancemanufacturers* The percentages are based on total net sales for the year ended December 31, 2023.

Watts • 2023 Sustainability Report• Commercial high-efficiency boilers, water heaters, and heating solutions• Hydronic and electric heating systems for under-floor radiantapplications• Custom heat and hot water solutions, hydronic pump groups forboiler manufacturers, and alternative energy control packages• Flexible stainless-steel connectors for natural and liquid propane
gas in commercial food service and residential applications• Most of our HVAC products and solutions
feature advanced controls enablingcustomers to easily connect tothe building management
system for better
monitoring, control,and operation

10% DRAINAGE
AND WATER
REUSE• Drainage products,
including connectedroof-drain systems• Engineered rainwater
harvesting solutions forcommercial, industrial,
marine, and residential
applications

Products

4% DIY CHAINS• Valves and our waterquality products

56% RESIDENTIAL
AND COMMERCIAL FLOW

• Backflow preventers, water-pressure regulators,
temperature and pressure-relief valves, thermostatic mixing valves,
leak-detection and protection products, commercial washroom
solutions, and emergency safety products and equipment• Many of our flow-control and protection products are now smart
and connected enabled products, capable of warning of leaks,
floods, and freeze with alerts to building management systems and/or personal devices, giving our customers greater insight into theirwater management and the ability to shut off the water supply to
avoid waste and mitigate damages

5% WATERQUALITY• Point-of-use and pointof-entry water filtration,
monitoring, conditioning,and scale prevention
systems for commercial,marine, and residential
applications

6

FOOTPRINT TO HANDPRINT

Actively managing our footprint and generating savings across operations, while increasing
the environmental and social value of our products and services to society• Achieved five-year (2018-2023) eco-efficiency goals for water, emissions, and waste ahead of plan
• 62% reduction in 2023 water efficiency compared to 2018 vs. the stated goal of 15% reduction• 60% reduction in 2023 Scope 1 & 2 GHG efficiency compared to 2018 vs. the stated goal of
15% reduction• 35% reduction in 2023 hazardous waste efficiency compared to 2018 vs. the stated goal of
15% reduction• Committed to new decarbonization goals: 30% absolute reduction in Scope 1 & 2 emissions in 10 years
starting in 2024
• Better quantifying our products’ handprint benefits and future design through life cycle assessment modeling

RINT TP
TO
FO ANDPRIN O
T
H

WATTS SITES TO COMMUNITIESBUIN S IN
FL ESS ST R ATE G YS
AN UENKSI
D O CED BY R ES
P P O RT U N I T I

TTS SITESWA MUNIT TO
I
E
S
COM

SU
S
IT Y
IN TAIN A BIL T
TE
G R ATE D A
EVERY LEVELOur ESG
Strategy

Ensuring our ESG commitments extend to the customers and communities where we operate• Increasing accountability of our suppliers and their adherence to ESG principles• Sponsored a new pontoon boat for a local community organization that takes volunteers to remove trash from
the Merrimack River, local waterways, and shorelines. This vessel will have an impact of removing ~6 US tonsof trash annually.
• Performed quality audits for 1,075 suppliers, representing 22% of our global direct spend

BUSINESS STRATEGY INFLUENCED BY CLIMATE RISKSAND OPPORTUNITIESEngraining sustainability into our strategic initiatives to drive our ESG principles acrossthe business• Employees and Sites: increased employee engagement and supported ERGs
• Analyzed production, logistics, and distribution to maximize our customer reach• Increased our offering and sales from smart and connected enabled products – enabling our customers toachieve their environmental objectives• Incorporating sustainability metrics into our new product development process

SUSTAINABILITY INTEGRATED AT EVERY LEVEL

Demonstrating our commitment to sustainability as an integral part of conducting
business• Making our products and operations more resilient to pollution, extreme climate events, and theincreasing scarcity of water• Reinforcing our mature ethics and compliance program through annual, global Code of Conduct training
for all employees, consultants, and contractors• Enhanced transparency, commitments, and reporting requirements – UNGC, WAVE, CEO Water Mandate,
third-party environmental data validation

Watts • 2023 Sustainability Report7Our Goals
Across the four pillars of our strategy, we have established a series of measurable, timebound goals to continue to drive our performance over the next several years. Our goal-setting
process engaged leaders from across our operations and considered our greatest opportunities for impact. We will report annually on progress against these goals.

FOOTPRINT
Watts is taking responsibility for
reducing our water, energy, carbon,
and waste footprints across ouroperations. We seek to meaningfully
participate in the global effort tocombat climate change by reducing
our impact on the environment whileworking to prevent water-related
hazards, such as water pollution,
scarcity, and flooding.
Our Goals:• Reduce absolute GHG emissions
by 30% by 2034, against a 2023
baseline• Reduce our water intensity by
3% annually through 2026,
against a 2023 baseline*• Begin reporting on Scope 3
emissions in 2026
• Reduce our hazardous waste
intensity by 3% annually through2026, against a 2023 baseline

HANDPRINT
We are creating innovative products
and smart solutions to protect,control, and conserve criticalresources, and helping to educate
our customers to support them in
reducing their footprint through useof our products.
Our Goals:• Invest in life cycle assessments(LCAs) to better design andmanufacture with environmental
impact in mind

• Complete LCAs for all products in
our largest facility by 2025
• Complete LCAs for all products in
our BLÜCHER facility by 2025
• Complete LCAs for two products
in France by 2025

• Complete LCA for one product in
APMEA by 2025

• Drive greater transparency for ourcustomers on the environmental
impacts of our products throughEnvironmental ProductDeclarations (EPDs)• Complete 50 EPDs by 2026

SOCIAL RESPONSIBILITYCORPORATE GOVERNANCE

We are enhancing social value by contributing to safe,
healthy, and strong communities. We enrich, engage, andprotect our employees and the communities in which we
operate. We embrace diversity, equity, and inclusion ascore business and engagement strategies.
Our Goals:• Expand opportunities for Watts employees toparticipate in leadership and professional development
opportunities• Offer leadership and inclusivity training to all employees
globally by the end of 2025
• Grow the number of employees that participate inprofessional development training by 20% each year,
through 2027

• Grow the number of all other professional developmenttraining sessions offered to employees by 10% each year,
through 2027

• By 2027, exceed a score of 75% across inclusivity,
engagement, and training indicators in our annual
global employee engagement surveys• Increase employee engagement in community
projects through Watts Cares by 10% year over year
through 2027
• From 2024 through 2027, donate up to $1 million to
nonprofit organizations dedicated to water stewardshipand other causes important to our communities

We are earning the trust of our stakeholders
by operating responsibly and adhering
to high ethical standards. Our corporate
governance principles provide an essential
framework to ensure we conduct ourselvesin accordance with our mission, vision, andvalues in the work we do every day.
Our Goals:• Ensure that 99% of all employees,
including part-time employees,
consultants, and contractors, complete
our Code of Business Conduct training
and acknowledge their adherence to
our Code, annually• Drive supplier performance on
environmental, social, and governanceissues through robust engagement,
expanded coverage of audits andevaluations, and conformance to our
Code of Business Conduct and Supplier
ESG Standards• Strive to include 100% of suppliers in
our review of Dun & Bradstreet ESG
ratings, annually• Require all new suppliers to confirm theirconformance to Supplier ESG Standards
prior to engaging with Watts*Since 2014, we have reduced water use by over 91 million liters globally. We will soon reach the floor on water reduction as we require water for human consumption and manufacturing processes.

Watts • 2023 Sustainability Report8Evolving Our Sustainability Strategy
2021

2014

• Appointed first Chief Sustainability Officer• Began reporting on
environmental data
• Launched monthly
operating reviews

2018• Set and disclosed
environmental/
eco-efficiency targets• Began engaging
ratings agencies

2019• Engaged Schneider
Electric to track
resource consumption• Established dedicatedcorporate sustainability staff

Watts • 2023 Sustainability Report• CEO joined Board of The Water Council• Developed EHSS policy

2016• Publishedfirst annual
Sustainability
Report2020• Launched global Diversity, Equity,and Inclusion initiatives• Began reporting against
global ESG standards
andframeworks GRI
and UNSDGs• Performed business
continuity analysis• Achieved third-party independent
verification for environmental data

• Promoted to AA rating by MSCI

Present• Launched Employee Resource Groups (ERGs)• Attained Sustainalytics“low risk” rating• Named to ISS Top 15% peer group• Completed materiality
assessment• Disclosed against SASB

• Achieved recognition as
one of America’s Greenest
Companies by Newsweek
and inclusion in the Top 300
U.S. companies for environmental sustainability• Selected as one of America’s Climate Leaders 2023 by
USA Today

2022• Became first company to be WAVE Verified• Issued Human Rights Policy• Joined UN Global
Compact• Became CEO Water
Mandate signatory• Established dedicated Handprint staff• Held ESG Leadership and brainstorming
sessions for employees, managers, andleadership across regions globally• Earned Newsweek's designation as one of America’s
Most Responsible Companies for the fifth consecutive
year, ranking among the Top 600 from 2,000 major U.S.
firms across 14 industries. Achieved No. 50 overall andthird in the industry, the highest ranking in five yearsof recognition.
• Gained further insights into our own supply chain's
sustainability performance by engaging our top 100
suppliers by spend to join the EcoVadis platform. Of
these suppliers, ~70% have completed and shared the
EcoVadis scorecard.

• Participated in EcoVadis global ESG rating assessment
for the first time in late 2023 as a global organization

9

Material
TopicsIn 2023, we completed a reporting gap
assessment, aligned with requirements
and recommendations from the Corporate
Sustainability Reporting Directive (CSRD),
the Global Reporting Initiative (GRI), theSustainability Accounting Standards Board(SASB), and the International Sustainability
Standards Board (ISSB), to inform our global
ESG reporting strategy and priority actions.
In late 2023, we kicked off a double material
assessment under CSRD requirements todetermine the material ESG topics that will
be reported in accordance with the European
Sustainability Reporting Standards (ESRS).
In 2021, we completed a materiality
assessment. These assessments help identify
and report on ESG topics that have the mostsignificant impact on our business and our
stakeholders. It also identified ESG-relatedrisks and opportunities for us to evaluate as
we execute our growth strategy and societal
trends that may impact our ability to meetstakeholder expectations. You can learn more
about the materiality assessment and ourmaterial topic definitions in the Appendix.
Following the materiality assessment,
we identified several key focus areas for
immediate attention and resources. Efforts inthese areas are well underway and are detailed
throughout this report, with highlights on
progress on some of our top material topics:

Watts • 2023 Sustainability Report

Employee Attraction, Development, and Retention:

Energy and Emissions:• Continued to establish partnerships with and conducted recruitment activities
at universities to drive outreach to females and under-represented groups• Decreased energy use and emissions by deploying an air leak detection program,on-site solar, LEDs, and other facility upgrades• Implemented an augmented writing platform to enhance inclusivity in ourjob descriptions• Launched a quarterly training and development calendar featuring virtual
instructor-led training sessions offered through internal facilitators, as well as
through external partnerships with best-in-class vendors• Began a holistic review of our 2024 U.S. benefit plan offering with aneye toward improving our benefit proposition in the marketplace andprovide best-in-class programs that meet the diverse needs of ouremployee population

Diversity, Equity, and Inclusion (DEI):• Completed our five-year plan well ahead of previously set targets, including:• Reduced our Scope 1 & 2 market-based emissions intensity by 60%
in 2023, far surpassing our goal of 15% as compared to 2018

• Committed to absolute reductions in Scope 1 & 2 GHG emissions– 30%
over the next 10 years

Sustainable Innovation and Digital Transformation:• Advanced efforts of embedding sustainability into product development to help
improve our customers’ ability to achieve their sustainability goals, as well as
minimizing our impact on the environment• Continued to implement our 12-month plan designed to execute on our
DEI initiatives• Enhanced several of our products with smart and connected enabled technology
to allow customers to better understand and control their water usage. By theend of 2023, 25% of our revenue came from such products• Focused on 10 U.S. sites for directed implementation of the inclusion andrecruiting pipeline outreach efforts

Climate Change Risk and Resilience:• Established a diverse candidate slate policy to assist in our outreach efforts
and expand the pool of qualified candidates• Offered new supports to our ERGs, which continue to be a platform for
employees to share common interests and experiences, gain professional
development support, engage with our leadership teams, and drive initiatives
to improve DEI at Watts• Conducted internal, leader-led panel and keynote discussions on a variety of
DEI topics• Continued roll out of leadership and inclusivity training throughout the
global organization

Occupational Health and Safety:• Focused on elimination of hazards and engaging our employees on reportingof near-misses and safety observations to help us achieve record safety
performance with a total recordable incident rate of 0.92 and a lost time rateof 0.49, improvements of 21% and 6% year-over-year, respectively• To support continued improvement, conducted machine-guarding
assessments across nine sites in the Americas and Europe and implemented
standardized safety training across 11 operating sites in the Americas• Installed solar at four of our manufacturing facilities generating ~700,000 kWhof electricity• Supported and accelerated utility-level decarbonization by purchasing ~7,200
metric tons of CO2 equivalent (MTCO2e) certified wind renewable energy
certificates (RECs). RECs represent 47% of our market-based emissions globally,as Americas region has the largest share of our global scope 2 emissions

Water Stewardship:• Annual donations of AERCO boiler test units to support local community
organizations while avoiding scrap at the same time (see water section)• Sponsored a new pontoon boat for a local community organization that takes
volunteers to remove trash from the Merrimack River, local waterways, andshorelines. This vessel will have an impact of removing ~6 US tons of trash
annually• Engaged our suppliers, communities, and stakeholders in our watersheds andwater value chains globally

10

Contributing
to the UN
Sustainable
Development
Goals
The United Nations (UN) Sustainable
Development Goals (SDGs) provide thebest-shared definitions of our global
challenges and serve as a framework
to determine where we can make thegreatest impact. Watts is focused on
addressing key impacts and opportunities
to minimize the environmental footprintof our global operations while improving
the health, wellness, and safety of
our employees and customers, andprotecting the communities where we
operate. Our strategy is aligned with
the SDGs, and we believe we can mostmeaningfully contribute to the following
seven goals.

Gender Equality, SDG 5: We are committed to finding meaningful ways to be a morediverse, equitable, and inclusive business. We seek to break down barriers in theworkplace through measures that ensure we attract and retain diverse individuals,
including across gender and race. To advance this work, our talent acquisition and DEI
teams continue to establish partnerships with institutions, professional networks, andsearch firms, attend career fairs, and collaborate with our ERGs. Our Women of Watts
ERG launched a mentorship program in 2023 and promotes and cultivates a more
inclusive environment.
Clean Water & Sanitation, SDG 6: We believe access to clean water is a fundamental
human right, yet billions of people around the world experience water insecurity andwater stress daily. Our products play an essential role in protecting and conserving water
resources and the people who use and rely on them. We are committed to reducing
the amount of water we use and discharge to manufacture our products, ensuring ourbusiness practices protect the water quality and supply in the communities where we
operate, and developing innovative products and services that solve longstanding waterconservation challenges. While water risk is a global issue, solutions must be local. We
are building awareness at the site level on watershed risk and implementing plans topromote water stewardship at our sites. In 2023, we provided clean, safe drinking waterto 24,440 people through our ongoing partnership with the Planet Water Foundation andsponsorship of emergency support following an earthquake in Turkey.

Watts partners with Lawrence Boys & Girls Club
(MA, USA) to host its second Build-a-Bike event

Decent Work & Economic Growth, SDG 8: Promoting inclusive economic growth anddevelopment enables us to better serve our customers and communities, and we strive
to provide our employees with meaningful career-growth opportunities and a positive andsafe work environment. As of December 31, 2023, we employed approximately 5,100
employees across 21 countries.* Our commitment extends beyond our company walls
through educational partnerships and charitable donations. Our Human Rights Policy
outlines our commitment to promoting human rights within our labor force. The policy
applies not only to our employees but also to our supply chain partners.
Industry, Innovation & Infrastructure, SDG 9: For nearly 50 years, our backflow
prevention valves have set the standard for backflow prevention for municipal water
infrastructure, homes, and buildings. Backflow, or the reversal of the normal flow of waterin a system, poses a threat to municipal water systems, and our backflow prevention
valves help ensure that contaminated water does not reenter the potable water supply,saving millions of gallons of potable water from contamination each year. Throughconnecting our products with smart technology, we are able to alert building managementof a leak or flood early on, which allows for early intervention, either manually or remotely.
In 2023, approximately 42% of our revenue was generated from clean-tech products.

Watts partners with Planet Water Foundation tobring clean water to water-stressed communities*Aligns with 2023 Annual Report and includes Bradley Corporation

Watts • 2023 Sustainability Report11Responsible Consumption & Production, SDG 12: We are committed tominimizing the environmental impacts of our operations by reducing our energy
and water consumption, greenhouse emissions, and hazardous and non-hazardous
waste generated at our sites. In 2023, despite including Enware in our environmental
boundary, we reduced over 1,308 metric tons of Scope 1 and 2 market-basedcarbon emissions, as compared to 2022. We are identifying opportunities andinvesting in solutions to accelerate our transition to the circular economy and finding
ways to appropriately divert waste from landfills. Our approach to waste reduction
also includes eliminating single-use plastics and using reusable, recyclable, orcompostable content in our packaging.
Climate Action, SDG 13: We know this decade is critical to mitigating the worst
impacts of climate change, and we are committed to doing our part to build a lowcarbon economy. Our strategy is rooted in existing UN frameworks and climate
science. We aim to reduce not only our energy consumption and carbon emissions
by 30% over the next 10 years, but also to help our customers reduce their carbon
emissions by developing new technologies in our product portfolio. AERCO boilers
helped customers avoid ~89,000 metric tons of CO2, which is nearly three times theWatts Scope 1 and 2 emissions for 2023. We supported decarbonization by installing
solar at four of our manufacturing facilities, generating ~700,000 kWh of electricity.
We continued adoption of energy efficiency best practices and purchase of RECs tooffset our global emissions.*
Life Below Water, SDG 14: Our oceans and seas are precious natural resources thatare home to much of the world’s biodiversity, and a source of livelihood for more than
3 billion people around the world. Our Ballast Water Management Systems provide
accurate measurement of the total residual oxidant of ballast water, desalination,
or wastewater discharge generated onboard marine shipping vessels. Throughthe use of our Ballast Water Management Systems, 2 billion gallons of transferredballast water are analyzed per year. The International Maritime Organization (IMO),
a UN Special Agency, saw a need for this technology. We’re helping to preserve
biodiversity by preventing serious ecological, economic, and health problems fromoccurring due to invasive marine species being carried in a ship’s ballast water fromtheir native environment to a new geographic area.
More information about our contributions to the SDGs can be found in the Appendix.
*This total includes Enware data and does not include Bradley data for 2023 calculations.
Right: Our Blauvelt, NY, USA team completed a project to optimize production floor space and revamp manufacturing
processes. Employees at this facility produce high-efficiency AERCO boilers that help customers avoid ~89,000 metrictons of CO2, which is nearly three times the Watts Scope 1 & 2 emissions for 2023.

Watts • 2023 Sustainability Report

12

ESG GovernanceOur board of directors’ Governance and Sustainability Committee has primary
responsibility for the oversight of our ESG efforts and strategy. The Governance andSustainability Committee reviews the company’s ESG performance and strategic plans at
its regularly scheduled quarterly meetings and receives additional updates from our chiefsustainability officer as needed.
At the management level, our general counsel and chief sustainability officer, whoreports directly to our chief executive officer, has general oversight responsibility for all
sustainability matters. Our general counsel and chief sustainability officer also chairs ourglobal Sustainability Steering Committee, which is made up of senior company leaders
and is responsible for formulating our sustainability strategy and overseeing the executionof our environmental, social, and governance initiatives.
During 2023, our chief sustainability officer presented to the Governance andSustainability Committee on a number of ESG topics, including progress reports onsustainability initiatives, U.N. CEO Water Mandate participation, updates on sustainability
training programs, and new regulatory requirements relating to ESG disclosures. We also
continued to review areas of material risk to Watts with our board, including risks related
to climate change and actions we are taking to mitigate those risks.

Watts • 2023 Sustainability Report13

Stakeholder Engagement

For 150 years, our company has built a reputation for protecting and sustaining the world’s
water supply through our broad portfolio of water products and solutions. Global stakeholders
play an integral role in the growth and success of our business today, as well as ourcommitment to create sustainable, long-term value in the future. To that end, we regularly
engage and interact with key stakeholder groups in a variety of ways, as described in the
Stakeholder Engagement section of the Appendix.

OUR LEADERSHIP’S ACTIVITIES OUTSIDE OF WATTS ON WATERSTEWARDSHIP IN 2023
• Utility Management Conference / AWWA Panel Discussion on the Watts ESG Journey &Water Stewardship• Boston College Center for Corporate Citizenship panel discussion on rethinking resiliency• The Water Council sponsor of events and panel discussion on building water resiliency

ENGAGING EMPLOYEES VIA ESG WORKSHOPS• Americas’ Leadership Meeting (January 2023) - Writing the Watts Future Story• Fluid Solutions EU Workshop (April 2023)• APMEA Virtual Workshop (October 2023)

Since 2021, our CEO Robert J. Pagano, Jr., has been a member of the board of directorsof The Water Council, a global hub dedicated to solving critical water challenges bydriving innovation in freshwater technology and advancing water stewardship.

Right: Watts Water participating in a panel discussion on enhancing resiliency at the 2023 Water Leaders
Summit hosted by The Water Council

Watts • 2023 Sustainability Report14Footprint

Footprint
At Watts, our reputation for quality, safety, and reliability is known worldwide
from the extensive portfolio of differentiated solutions we provide to meet theneeds of our customers. As respectful environmental stewards, we engage inbusiness practices that reflect our values and advance our efforts to promote an
economically, socially, and environmentally sustainable future. We are committed
to minimizing the impact of our global operations and supply chain on theenvironment, protecting the communities where we operate, and delivering
innovative products and services that support our customers in doing the same.
Since 2014, Watts has centrally collected and managed our energy and water
consumption, waste generation, utility costs, and carbon emissions for all major
sites. To ensure accuracy, we use a cloud-based SaaS data collection andanalysis platform to help track resource consumption, and to collect, review,
and process site invoices. Watts employees across Facilities, Operations, EHS,
Finance, Supply Chain, and every other function can have real-time accessto site-specific and enterprise-wide data to help monitor our environmental
performance. Our Environmental Data is available in the Appendix.
The scope of our environmental reporting covers 39 facilities globally, including
office buildings, manufacturing sites, distribution centers, and warehouses.
The facilities listed here are within our operational boundaries for environmental
performance in 2023 and represent approximately 93% of our global workforce.
For 2023, our Enware facility and contract manufacturing facility in Nogales areincluded in our footprint reporting; our Bradley and Josam facilities are not.
Each year, in accordance with our management approach, our sites adopt ecoefficiency targets and identify suitable efficiency and conservation projects toachieve them. During our global monthly operating review process, we monitor
our sites’ key performance indicators (KPIs) against set targets to identify andaddress anomalies and identify and prioritize additional reduction opportunities.
Globally, the greatest drivers of our water consumption are product testing,process water, drinking water, and sanitation. The greatest drivers of natural
gas consumption and Scope 1 emissions are winter space heating and process
heating. Manufacturing and machining processes such as furnaces, cutting,forging, molding, etc., are our largest drivers of electric consumption.

Watts • 2023 Sustainability Report

SITE
Andover, MA

Spindale, NC

Sorgues, France

Blauvelt, NY

St. Pauls, NC

St. Neots, UK

Burlington, ON, Canada

Vernon, BC, Canada

Vildbjerg, Denmark

Calgary, AB, Canada

Woodland, CA

Virey-le-Grand, France

Export, PA

Biassono, Italy

Wingene, Belgium

Fort Myers, FL

Dattenberg, Germany

Auckland, New ZealandFort Worth, TX

Eerbeek, Netherlands

Dubai, UAE

Franklin, NH

Gardolo, Italy

Ningbo, China

Franklin, NH

Hautvillers, France

Ningbo, China

Groveport, OH

Laundau, Germany

Shanghai, China

Nogales, Mexico*

Moirans, France

Sydney, Australia

North Andover, MA

Monastir, Tunisia

Reno, NV

Plovdiv, Bulgaria

San Antonio, TX

Rosieres, France*contract manufacturing partner

OfficeISO 9001

Manufacturing

ISO 14001

Distribution Center

ISO 45001

Headquarters

16

Footprint

Reducing our water, energy, carbon, and waste footprints

WATER

ENERGY

WASTE

Goal: 15%

46%

62%

Goal: 15%

54%

60%

Goal: 15%

Recycling in 2023
METAL SCRAPS

4,965,279 Kg

35%

PLASTIC REGRIND

16,800 Kg
Absolute Reduction
since 2014

Intensity Reduction**baseline year 2018

• Sponsored a new pontoon boat for a local community organizationthat takes volunteers to remove trash from the Merrimack River, local
waterways, and shorelines. This vessel will have an impact of removing~6 US tons of trash annually.
• Donated an AERCO boiler to a local youth organization in New York.
• Recommitted to eco-efficiency reduction goals• Signed the CEO Water Mandate

ALL

Tracking
environmental
data since 2014

Watts • 2023 Sustainability Report50%of global
manufacturing
footprint certified to
ISO 14001 standards

Absolute Emissions
Reduction since 2014

Intensity Reduction**baseline year 2018;
market-based emissions

Certified renewable energy certificates(RECs) reduced our market-based Scope 2
carbon emissions in 2023 by 28%
Two sites installed on-site solar in 2023,
generating ~650,000 kWh of electricity
annually

Exceeded 2018-2023
stated YOY eco-efficiency
reduction goals

Intensity Reduction**baseline year 2018

EXECTRONIC WASTE

12,146 Kg• Reporting non-hazardous stats• Waste benchmarking analysis in 2023 revealed Watts
diverted nearly 60% of waste from landfills throughrecycling programs in Europe and parts of APMEA andAmericas at our top 10 sites, representing over 80% of
Watts global population

Third-party
environmental data
verification since 202017

Environment, Health, and Safety Management
Operating sustainably is good business. Our Environment, Health and Safety,
and Sustainability Policy sets the standard for operational excellence atWatts. Our environmental management system is a key component of thisglobal integration, providing the framework from which we deliver best-inclass performance, while ensuring our facilities operate safely, efficiently, andresponsibly. We take a strategic, risk-based approach to proactively manage
our environmental risk and footprint. We anchor these practices in leanmanufacturing principles and methodologies and serve to drive continuous
improvement and accountability.
The Environment, Health, Safety, and Sustainability Steering Committee
meets quarterly with the CEO and other Global Leadership Team members.
Together, they are charged with spearheading the EHS and ESG programs
at Watts, which encompass all geographies, brands, and employees. Ledby our CEO and Global Leadership Team, committee members review thecompany’s EHS and sustainability performance, and discuss trends andissues, key business drivers, progress on goals and targets, and actions forcontinued improvement.
In 2023, we completed 47 internaland external audits at 27 of ouroperating sites, focusing on
EHS-related compliance andmanagement system effectiveness,representing an increase of 2%.
These audits are part of our overall
EHS Management System, with

Watts • 2023 Sustainability Report

47%

47 EHS-related
audits completed
at 27 operatingsites representing
47% of ourglobal population

audits conducted annually and assigned based on regulatory obligation,
management system (ISO) obligation, relative risk, and global sampling. For
details of types and frequency of audits across all locations of operations,please refer to the table in the Appendix.
Meaningful engagement with our employees, contractors, and utility
vendors has always been important to us to increase awareness and drive
actions. To drive engagement and site-driven sustainability projects, wedeveloped a monthly global operating and review system to track andmanage our sustainability performance across these categories, including
progress against site projects and associated savings. Teams share projectideas with other sites that may benefit from similar improvements. Our
senior vice president of global operations and the sustainability team are
responsible for overseeing the reduction of resource intensities across all
major manufacturing and distribution sites on a routine basis, as well as
establishing annual reduction targets.

ISO CERTIFICATIONOur ISO 14001 certified sites represent 47% of our global population, aslight decrease due to the closure of the Mery, France site. The pursuit ofthis certification provides an external framework to measure continuous
maturation of our environmental management and is inclusive of our overall
global system You can learn more about the certification of our occupational
health and safety (OHS) management system in the Occupational Health and
Safety section of this report.

18

Water StewardshipWe believe access to clean, safe, and affordable water is a fundamental
human right. Water and climate are intricately linked, and an imminent
global water crisis threatens the availability, quality, and quantity ofwater for basic human needs. We are committed to being part of thesolution. Our actions include:• reducing the amount of water we use and discharge in ouroperations;• ensuring our business practices protect the water quality andsupply in the communities where we operate;• developing effective and innovative products and services thatsolve longstanding water challenges in improving water quality andwater conservation; andWe continue to increase the accuracy and immediacy of our total water
usage data so we can take action to reduce it. Our data collection
process utilizes a monthly, automatic bill collection system for all
utilities across 39 Watts sites. Armed with information provided throughmonitoring solutions and applications, cross-functional teams cometogether regularly to increase awareness of our water intensity andexecute reduction strategies.

69%

We have seen a 69% reduction in water use in 2023
compared to 2022 at our corporate headquarters in North
Andover, MA, USA, primarily due to the installation of an
improved, smart irrigation system. New irrigation zoning,smart sensors, and a leak detection system have eliminatedmore than 2.8 million liters of water.

• sharing our expertise and learnings within our industry to drive
greater awareness and collective action on water stewardship.
This commitment is formalized through our Corporate Environment,
Health, Safety, and Sustainability Policy.

M3/$1M141.95PROGRESS AGAINST OUR WATERREDUCTION COMMITMENTS

Watts • 2023 Sustainability Report

Water-Reduction Goal (15%)
Additional 50%
reduction beyond goal

*Baseline year

We have committed to reduce our water intensity by 3% annually
against a 2018 baseline. In 2023, we achieved a water intensity
reduction of 62% since 2018, against a stated goal of 15%. Our water
stewardship work was independently verified by SCS Global Services,
an international leader in third-party certification of sustainability
claims. For more information regarding our 2023 water consumption
data, please visit the Appendix.

2018

86.39

2019

2020

61.85

2021

• Alignment with global water stewardship standards andimplementation of best practices, particularly among
our high water-use facilities and facilities in waterstressed regions• Respect for water-related rights and a guarantee ofappropriate access to safe water, as well as sanitationand hygiene throughout our operations• Acknowledgement of water as a local and sharedresource — acknowledging the numerous impactsof the amount of water withdrawn and consumed,
and the quality of discharges from our manufacturing
operations on the functioning of local ecosystems• Striving to ensure that all Watts facilities meet national
and local requirements for the return of clean and safe
wastewater back into public water sources

Water-Use Intensity

121.09WATER STEWARDSHIP:OUR GUIDING PRINCIPLES

53

53

2022

2023

• Open and transparent engagement with stakeholders,
including support for and coordination with publicsector agencies in the implementation of water- andsanitation-related plans and policies
Since we began tracking water consumption data in 2014,
we have reduced over 93 Million liters of water globallyover the past 9 years. With the recommitment to 3% annual
water intensity reduction for the next 3 years, we may soon
approach a limit on reducing water intensity.
We intend to focus on sites whose human and hygiene
related water consumption is a small percentage of the total
consumption to find opportunities for reduction, reuse, andrecycling of testing and process related water use.

19

UNDERSTANDING WATER AS A SHAREDRESOURCE

In 2022, Watts became the first company to successfully complete
verification for The Water Council’s WAVE: Water Stewardship Verified
program, indicating we have assessed water-related risk across ourenterprise, identified the highest water-related impacts using credible
water-related data, and implemented best practices in improving water
stewardship performance. As part of the WAVE process, 16 Watts sites,
representing 82% of our global water consumption, have participatedin the WAVE Accelerator program. Each site team conducted a waterbalance to learn more about their water inputs and outputs andengaged stakeholders in their surrounding communities.
As a result of this work, we are taking action locally and globally to
reduce water consumption, increase reuse, improve water quality,
reduce negative upstream and downstream impacts, and engage our
local communities in water stewardship activities.

From Sites to Communities: Water Stewardship Engagement in
the Okanagan Region
Through participation in the WAVE accelerator program, our tekmar
team in Vernon, BC, Canada deepened relationships with community
organizations and local government agencies that share an interest inprotecting the local watershed. The Okanagan region where tekmar
is located is considered one of the three most endangered ecologicalregions in Canada and has experienced extreme weather patterns inrecent years. In April 2023, dozens of tekmar colleagues volunteeredat the Allen Brooks Nature Center, adding over 100 plants of various
species to the local habitat, contributing to ongoing research anddevelopment programming for local ecological sustainability initiatives.
On World Water Day in March, tekmar volunteers joined a regional
district river clean up headed by the local government.

Deepening Our Commitment to Protect the Merrimack River
In 2023, we built on our longstanding partnership with the Clean
River Project, a nonprofit dedicated to cleaning and preserving a 45mile stretch of the Merrimack River, which serves as the water supply
to 600,000 residents and is the local watershed to three Watts sites
in Massachusetts and New Hampshire, USA. Our sponsorship of
the organization funded the construction and deployment of a new,upcycled pontoon boat that carries volunteers onto the river for clean
ups. The Watts Water/Clean River Project boat made 30 trips in 2023,
recovering ~6 US tons of trash and debris from the Merrimack. Watts
employees also joined Clean River Project clean up events in Augustand September, collecting over 2 tons of material.

“Our entire team has developed a heightened interest in the impacts we have on the local water supply – both in our operations andthrough community engagement. In addition to continuous improvement on operational water use reductions, we’re taking a more
intentional approach to volunteerism to maximize our impact in the water space. It’s been a great source of pride for our team.”— Operations Manager, tekmar

Left: Watts volunteers cleaning the Merrimack River in 2023

Watts • 2023 Sustainability Report20

Saving Millions of Liters of Water Through Process Improvements
Through an analysis of water consumption and wastewater outputs,
our team in Ningbo, China identified an opportunity for significant water
use reduction in a testing process. The process itself was averaging
1,000 liters of water output per day, and using an additional 1,000
liters per day of potable treated tap water for machining and floor
cleaning processes. Rather than disposing of the testing water as
wastewater, the team installed a water tank to collect and filter it for
use in machining and floor cleaning. This action is saving approximately
249,000 liters annually, as well as reducing costs and demand on thelocal water supply. Coupled with the site’s other water use reduction
initiatives, including upgrades in sanitary facilities, leak detection andrepairs, and smart water metering, our Ningbo team has driven over
1.3 million liters of water savings annually.

In New York, Boiler Donations Bring Safe and Reliable Heat and
Hot Water to Area Nonprofits
Since 2008, the team at our Blauvelt, NY, USA facility has been
supporting local community organizations while diverting waste. Each
year, a small number of Aerco boilers undergo testing at the facility, andwhile they are no longer eligible for sale, they function like new. The
community donation program, which began with the donation of a test
unit to replace a failing boiler at a local school building serving at-riskyouth, has grown to impact 11 local organizations over 16 years. Today,
community centers, food pantries, schools, and other civic buildings
are benefiting from high-efficiency, long lasting Aerco boilers they’dlikely never purchase themselves, due to budget constraints. Two
Blauvelt employees have made site visits as needed for the continued
set up and maintenance of these donated units.
In addition to saving on boiler replacement costs, donation recipientsare saving on fuel and avoiding greenhouse gas emissions. The facility
manager at the site of Aerco’s first donation in 2008 estimates theirhigh-efficiency Benchmark 2.0 boiler has saved the organization over
$10,000 per year in fuel costs.

Ningbo Team Honored for Philanthropic Support of Local Schools
The team at our Ningbo, China site donated 13 water purification
devices, which were installed throughout a kindergarten and primaryschool in the rural Shaanxi Province. In total, the generous contribution
supports the daily drinking habits of approximately 400 children,
helping to protect them from water-related diseases.

Watts • 2023 Sustainability Report

AT WATTS, WATER STEWARDSHIP IS
EVERYONE’S RESPONSIBILITY

Since we began reporting on our water consumption a
decade ago, we’ve taken significant action to cut our
total global water usage by almost half – moving from
200 million liters per year in 2014 to 108.2 million liters
in 2023. There will come a time when opportunities for
major reductions within our operations will plateau,
and daily, individual engagement of every single Watts
employee will be the driver of further reductions.
In 2023, we installed a new monitoring screen at
our corporate headquarters to continue to drive
employee engagement and awareness of site-level
water consumption. Anyone who passes through ourlobby can now see how many gallons of water we’ve
used that day – it’s a symbolic and functional action
that’s sparking new ideas and conversation amongcolleagues, as each of us takes a personal interest inreaching our shared reduction goals.

With the re-commitment to a 3% annual water
intensity reduction for the next three years, we may
soon approach a limit on reducing water intensity.
Our approach through 2026 is to focus on sites
where process, irrigation, and test water use is alarge percentage of the site’s annual total use. We will
explore reduction, reuse, and recycling projects alongwith enhanced monitoring and leak detection.

21

Energy and Emissions“Transition out of fossil fuels and towards sustainableenergy sources is the only way to stop the rise in global
temperatures and its devastating effects on people andthe wider natural world that we depend on”— United Nations Development Programme

Our energy policy is rooted in existing UN frameworks and climate
science as we commit to:• Reducing our energy consumption and carbon emissions
across all facilities• Offsetting emissions through the purchase of renewableenergy certificates (RECs) and carbon offsets• Developing new technologies within our productportfolio to help our customers transition to a lower
carbon economy• Helping our customers advance environmental andsocietal objectives through our products and services
To accelerate this work, we have far exceeded our initial five-year goalof reducing our GHG emissions intensity by 3% annually against a
2018 baseline. In 2023, we ramped up engagement and integrationof sustainability and conservation at every level of the organization– from leadership to floor associates. We continued to target ourhighest emitting activities to implement efficient solutions and adopt
an emissions-reduction mindset.

Through implementation of efficient solutions, continued evaluations,installations of solar at our manufacturing facilities, and the purchaseof RECs to cover 100% of our electrical demand at seven of ourlargest manufacturing and distribution sites in the U.S., we continued
to drive emissions reductions in 2023. Since 2018, Watts has reduced
its GHG intensity by 35% (location-based) against our stated 15%
reduction goal. We improved our tracking and carbon-accounting
mechanisms and have begun to track and report both our locationbased and market-based carbon emissions.1 Doing so allows us tocapture both the work we are doing in reducing our emissions aswell as our investment in RECs. As of this year, we have achieved
an absolute reduction of 49% in market-based GHG emissions ascompared to 2018, and a 54% reduction as compared to 2014. Ourannual intensity reduction in 2023 compared to 2022 was 7.2%
(market-based).
Both the economic recovery after the COVID-19
pandemic and the ongoing war in Ukraine havecontributed to energy-supply concerns and increased
energy costs. Renewables are now projected to lead thepower generation mix by up to 80% in 2050.

Source: Global Energy Perspective, McKinsey

MTCO2e/$1M

22.68

2018

20.84

18.71
14.41

Energy-intensity reduction goal (12%)
9.73

2019

2020

2021

2022

9.02
2023

In 2023, our energy and emissions data, emissions calculations
methodology, corporate inventory management, and GHG reporting
procedures relating to energy and utility data collection were reviewed
and verified by a third party. Please visit the Appendix for more
information.

GHG Intensity Reduction
Goal: 15%60%

A location-based method reflects the average emissions intensity of grids onwhich energy consumption occurs (using mostly grid-average emission factor
data). A market-based method reflects emissions from electricity that companies
have purposefully chosen. (Source: Greenhouse Gas Protocol)

1

Actual: 60%*

Watts • 2023 Sustainability Report

GHG Scope 1 & 2 Market-Based Intensity Trend*Baseline year

We recognize the increasing urgency to avert the worst effects
of climate change through rapid decarbonization and greaterclimate resiliency.

222023 FACILITY HIGHLIGHTS
Ningbo, China
As part of its sustainability journey, themanufacturing facility in Ningbo, China
has joined the newly founded Ningbo
Beilun Green Power Association as one of
its inaugural members.

WATTS AIR LEAK DETECTION PROGRAM:
HEAR IT, TAG IT, SEE IT, FIX IT!
Our standardized air leak program completed its first full year of operation in 2023 after being
launched in late 2022. We focused our attention to 16 of our largest manufacturing sites where
air compressors account for 10-25% of the sites’ total annual electrical consumption. Air leaks
occur in industrial settings, or any area where high-pressure air is used. A system of pipes or
tubes pushes air from a compressor to a machine or tooling device. Leaks in these systems
happen for several reasons such as sealing, vibration, or repetitive use. The more leaks there arein the system, the harder the compressor must work, powering on and off more frequently andtherefore wasting energy and increasing emissions.
We encourage sites across the company to implement visual management tools to help
employees easily access our Watts branded tags and identify air leaks right away. Additional
air leaks are reported into the sites’ maintenance applications where identified leaks are kept
open until fixed and closed by facilities and maintenance teams. Air leak was also added as a
new category under “observation” in our global EHS compliance and management software,
which awards “Watts Bucks” to employees who identify and report air leaks. This represents
a significant improvement toward the best practice of crowdsourcing, detecting, and repairing
air leaks – getting every Watts employee to participate in energy savings. It also alleviates theburden on facilities and maintenance teams, allowing them to spend time fixing more leaks. In
2023, our participating sites fixed more than 350 air leaks. Our top three performing sites are
Hautvillers in France, and St. Pauls and Woodland in the U.S.

Watts • 2023 Sustainability Report

The nonprofit organization is currently
made up of 31 members fromproduction, supply, storage, equipment
manufacturing, engineering testing,and other industries of green power. It
promotes green and low-carbon knowledge, advises on green carbon rights trading, provides
green power technical services, and shares best practices for green projects.
In response to climate change issues and China’s “dual carbon policy,” the facility also
focused on modernizing its energy management and accelerating the optimization of clean
and efficient production processes and energy management systems.
In June 2023, Ningbo obtained its Energy Management System ISO50001 Certificate,
Product Carbon Footprint Certificate, Greenhouse Gas Verification Certificate, and Carbon
Neutral Certificate from relevant certification agencies.
Membership in the association is just the latest step in the site’s sustainability journey, which
has completed several energy conservation and emissions reduction projectss, including
the installation of rooftop photovoltaic power and solar lights, energy efficient lighting, andupgrading the air compressor.
The most notable measure of 2023 was the installation of 14 smart electrical meters acrossthe site.

23

St. Neots, UK

In St. Neots, UK, each employee can grow crops of their choice in the areas
designated for the garden, which currently includes a range of leafy vegetables,
tomatoes, and chilies

QUICK KAIZENS IN
ACTION: ENERGYCONSERVATIONOur St. Neots, UK facility achieved a 16% reduction in electricity
usage, equivalent to ~24,000 kWh. Reduction initiatives included
consolidating all office staff into one location, upgrading to LED lighting
in assembly and production areas, zoning of LED lights with sensors,
and regular training and discussions related to energy conservation.

Spindale, NC, USA

Plovdiv, Bulgaria

Installed UV films on all windows onsite in addition to passive cooling byincreasing green areas around the site.

In 2023, our Plovdiv, Bulgaria site accomplished a 24% reduction
in grid electricity consumption, primarily due to the expansion ofexisting solar installations, ongoing enhancements to lighting inassembly areas, and implementation of real-time energy monitoring.
Additionally, Plovdiv decreased its propane gas consumption throughenhancements made to machinery and components for thesoldering process.

Installed high bay LED lights in threeaisles in the warehouse area.
Moirans, France

St. Pauls, NC, USA
Our St. Pauls site achieved a 27% reduction in natural gas anda 9% reduction in electricity usage in 2023 compared to 2022, a
combined total energy reduction of ~400,000 kWh. The main driversof this reduction are the site’s air leak detection program and efficienttemperature management during summer and winter months despite
increased production related revenue on-site.

A facility manager in Plovdiv, Bulgaria recently visited a local school to share
information about Watts with students

Watts • 2023 Sustainability Report

Our smart and connected enabled products help
increase energy efficiency and conservation forour customers while reducing emissions. You canlearn more in the Handprint section of this report.

24

Waste Reduction

In addition to targeted hazardous waste reduction efforts, ourapproach to waste reduction includes:• Brainstorming pre-waste or waste elimination ideas, such as how
to avoid the waste / recyclable stream from being generated in
the first place• Engaging waste stream vendors on alternatives to divert wastefrom landfills• Ensuring packaging material consists of reusable, recyclable, orcompostable content
Worldwide municipal solid waste is expected toincrease by ~70% to 3.4 billion metric tons, mostof which is expected to end up in landfills.
Source: Global Waste Generation, Statista

Watts • 2023 Sustainability Report

In 2023, we continued to track solid waste, scrap metal, and otherrecycling streams, working closely with our facilities and waste
contractors to understand the source and management of our waste,
and to standardize data collection across sites. This work required
significant collaboration across our global operations; our corporate
sustainability team partnered with site teams to identify opportunities
for improvement through process changes. In late 2023, we launcheda waste study with the University of New Hampshire at our largest
factory in Franklin, NH, USA.

compared to 2018. This decrease was heavily driven by the reduction
in copper-related emissions, which decreased by 24% compared
to 2018.

A deeper understanding of our waste generation and more frequentcollaboration at the site level has generated substantial interest andengagement among colleagues throughout our operations. Employeedriven waste reduction initiatives focus on waste delineation, rezoning, and waste stream elimination, thereby reducing our overall
waste outputs and increasing recycling and reuse. We continue toreplace single-use paper and plastic items with reusable items andinstall direct-line water refill stations to avoid disposing of plastic
water bottles.

In Europe, our Vildbjerg, Denmark site, which generates 69% of theregional hazardous waste, also had a 17% reduction year-over-yearby effectively managing their passivation waste.

Tracking all forms of waste, reducing the overall quantity generated,and diverting from landfills using circular models is a complex
challenge. To accelerate our efforts, we previously committed toreducing our hazardous waste intensity by 3% annually against a
2018 baseline. By the end of 2023, we had reduced our hazardous
waste intensity by 35% against a stated goal of 15%.
For our U.S. operations, toxic waste reported under EPA’s Toxic
Release Inventory Reporting program decreased in 2022, the latest
reporting year available, by 13% compared to 2021 and 36%

We achieved an overall hazardous waste reduction of 25% year-overyear with the Americas achieving an 81% year-over-year reduction.
When backing out the leaded foundry closure in 2022, the Franklin,
NH, USA site still had double digit reduction along with a 57%
reduction at our Fort Worth, TX, USA site.

Hazardous Waste Intensity Trend
Kg/$1M

1,318*Baseline year

We recognize the need to protect our land, waterways, andcommunities by reducing the amount of waste generated by ouroperations. Seventeen of our 39 facilities generate waste classified
as hazardous. Additionally, eight sites generate waste classified as
non-hazardous, regulated industrial discharge with the remainder
generating municipal solid waste, and recyclable waste streams suchas paper, wood, cardboard, plastic, electronics recycling, and metal
chips. We comply with all local and national regulations and track
manifests for hazardous and non-hazardous industrial waste. In 2023,
we began collecting and tracking manifest data for municipal solid
waste and information on how it’s finally disposed, as well as tracking
tonnages for other high-volume recyclables such as cardboard
and wood.

2018

1,561
1,307

1,189

1,165

Waste intensity reduction goal achieved (12%)

859

2019

2020

2021

2022

2023

In 2023, our hazardous waste data, calculations methodology,
corporate inventory management, and hazardous waste reporting
procedures were reviewed and verified by a third party. Please see
the Appendix for more information.

25

2023 FACILITY HIGHLIGHTSQUICK KAIZENS IN ACTION:
WASTE REDUCTION

Nogales, Mexico
At our contract manufacturing location, we achieved a hazardous
waste reduction of 45% in 2023 compared to 2022. This
reduction, equivalent to ~6,000 kgs, was a result of the cleaning
and reuse of coolant, reuse of impregnated rags, and the transferof sulfamic acid as an alternate material for another manufacturing
process on site.

Blauvelt, NY, USA

Implemented a silver alloy braze recycling program with ourbraze material vendor, in which we send back the silver alloys
to be recycled, and in return get a cost deduction on future
shipments of new material
Ningbo, China

Gardolo, Italy

Reduced plastic packaging waste by switching from bubble
wrap to slotted cardboard cartons, thereby eliminating waste
and labor hours related to unpacking valve parts that werepreviously wrapped individually in plastic

In 2023, our Gardolo, Italy site achieved a hazardous waste
reduction of 66%, or 3,403 kgs, compared to 2022, mainly driven
by frequent checking of leakages in the oil fittings of molding
presses. The oil waste from hydraulic circuits constitute 51% of
the hazardous waste onsite.

Vildbjerg, Denmark

Fort Worth, TX, USA

In 2023, Vildbjerg implemented initiatives at its pickling plant toaddress the generation of hazardous waste.

The second largest hazardous waste stream generated in theAmericas region is associated with our passivation/pickling
operations at our facility in Fort Worth, Texas, USA. The Fort
Worth facility has successfully piloted a metals removal system
for in-process passivation tanks resulting in a 57% reduction inhazardous waste in 2023 compared to 2022, equivalent to ~52,000
kgs. This technology is now being evaluated for implementation at
the passivation/pickling operations at our Vildbjerg, Denmark site.
The objective of this technology is to systematically remove excess
metals from the process tanks via filtration technology to extend thelife of the baths, and ultimately reduce hazardous waste generation.
Watts reporting showed a 36% reduction of toxic metals and othermaterials under the U.S. Environmental Protection Agency’s Toxics
Release Inventory Program, compared to 2018.Please refer to thistable in the Appendix for more details.

Watts • 2023 Sustainability Report

During production, parts are degreased prior to pickling, andfollowed by rinsing with demineralized water. The primaryhazardous waste streams are degreaser waste and pickling acid.
To mitigate waste generation, the team implemented enhanced
filtration for the rinse baths following the degreasing, addressing
the accumulation of degreasing sludge and extending the use of
the bath from two months to four months. Additionally, the teamsuccessfully implemented the reuse of pickling acid once every
five weeks instead of four weeks. This initiative alone has thepotential to save approximately 3,000 liters of newly added mixed
acid usage annually.

VOLUNTEER CLEANUPS
Moirans, France

Colleagues participated in a “clean walk event” organized byCentr’alp Association. The team removed eight bags of trashfrom the community and disposed them properly.
Fort Worth, TX, USA

Employees recently represented Watts at a local “Trash
Bash” river cleanup event, co-hosted by the Tarrant Regional
Water District

Quick Kaizens are incremental continuous improvement
efforts that allow all employees at Watts to “fix whatbugs them.” You can read more about Quick Kaizens
and the One Watts Performance System here.

26

Handprint

Handprint
Water is a precious and scarce resource thatsustains people, communities, and economies
throughout the world. While vital to good health andwell-being, water can also threaten people’s healthand safety when not managed properly.
At Watts, we believe our products and solutions havean essential role to play in protecting shared water
resources and the people who use and rely on them.
For 150 years, we have developed and designed
products, components, and systems that solve theworld’s greatest water safety challenges, conserve
water, and improve energy efficiency. We design our
products to benefit users and help their sustainability
efforts based on this “triple play” of sustainability:
Safety and Regulation, Water Conservation, andEnergy Efficiency.
Our goal is to be a solutions partner, not merely acomponents supplier. We deliver superior customer
value by transforming our traditional mechanicalproducts into smart and connected enabled
solutions. We have introduced new productsthat connect our customers with smart systems,
providing data to optimize performance, andconserve critical resources by increasing operability,
efficiency, and safety. Exiting 2023, we reached ourgoal of achieving 25% of our revenue from smart
and connected enabled products.

Watts • 2023 Sustainability Report28

Handprint

Creating innovative products and smart solutions to protect, control, and conserve critical resources.
Our “triple play” of sustainability: Safety and Regulation, Water Conservation, and Energy Efficiency

SAFETY AND REGULATION

Products that help protect the healthand safety of inhabitants of homes andcommercial buildings~74%
of Watts grossproduct revenue*

Product spotlight: Big Bubba® BB-S101 Whole Home Filtration
System filters out certain metal contaminants, PFOA/PFOS, chlorine,and other contaminants from water at its point-of-entry into a home

WATER CONSERVATION

Products that help our customers
conserve water, alerting them toleaks and floods and helping prevent
contamination and water loss in themunicipal water supply~ 42%
of Watts grossproduct revenue*

Product spotlight: Watts Pressure-Reducing Valves sold in 2023
will avoid the use of 17.9B+ gallons of water globally per year

PRODUCT SUSTAINABILITY

ENERGY EFFICIENCY

Products that help our customers
improve the efficiency andsustainability of their buildings,
reducing energy utilization while still
maintaining comfort and safety~24%of Watts grossproduct revenue*

Product spotlight: In 2023, AERCO boilers helped customers
avoid ~89,000 metric tons of CO2, almost three times the Watts
Scope 1 and 2 emissions for 2023

CUSTOMER EDUCATION
194K

Began implementing
product life cycle
assessments in 2022

1M+ repair kits soldto extend useful life ofWatts products

80% reduction in use of plastics
and chemicals for protective
packaging since 2017training sessions
globally in 2023

*Products may fit into multiple categories; products and Watts gross product revenue exclude Bradley and Enware, acquisitions completed in 2023

Watts • 2023 Sustainability Report29Defining the Challenge of Backflow

Safety &Regulation

Dating back to the industrial revolution, ourproducts have kept water, water systemequipment, and the people operating ourwater systems, safe. Preventing the overpressurization of hot water vessels toprevent explosion was our earliest focus;
today, water contamination and scalding areamong the greatest risks we aim to address.
Water can become contaminated in thesource water as well as in its distribution
system after water treatment has alreadyoccurred. Additionally, the growth ofpathogens continues to be a pervasive
health threat to drinking water, particularly
for populations most vulnerable to illness.
Temperature regulation is equally importantto safety, as even small increases in watertemperature can lead to scalding at faucets
in homes and buildings. Scalding leads toover 100,000 emergency room visits per
year in the U.S. One study published in the
Journal of Burn Care Research found that
hot water temperatures were unsafe in 41%
of inspected urban homes.
Watts • 2023 Sustainability Report

Backflow happens when a potable water supply is commingled with used water, industrial fluids, or othercontaminants. Every year, millions in the U.S. are affected by backflow through water supply shutdowns, boil waterorders and even illness or injury. It is a significant safety risk to water supplies, property, and the environment. The
most common cause of backflow is when hydraulic pressure is disrupted in a plumbing system, reversing normal flow
and forcing non-potable water into the clean water supply.
Modern building and industrial codes require backflow prevention valves that automatically discharge contaminatedwater or shutdown supply when backflow is detected. Discharges can flow at a rate as high as 500 gallons per minuteand can last for hours or even days, wasting water and potentially causing property and environmental damage.

Watts Solution: Increasing the Speed of Knowledge to Conserve and Protect Water from Backflow Contamination
Watts has been a leader in backflow prevention since the 1970s, saving many millions of gallons of potable water, but early detection of backflow events
remained a challenge. For decades, facilities’ operators have been searching for solutions to reduce the risk of backflow and prevent adverse events.
Watts Connected Backflow changes the game in system monitoring, delivering robust new capabilities in early detection, diagnostics, and system
optimization. It uses the latest advances in IoT technology to capture and stream performance data directly to building management systems aroundthe clock with real-time alerts. The system can also connect to other IoT enabled equipment such as leak sensors, providing greater visibility into early
indicators of backflow risk.
The concept behind Connected Backflow is “Speed of Knowledge.” When operators have more information sooner, they can triage, diagnose, andaddress risk earlier, before a backflow event occurs. Real-time information means they are no longer limited to just one or two annual inspections – they
get year-round performance data to inform optimization and maintenance.

The Future of Sustainability is Smart and Connected
We expect that Watts smart and connected enabled technology will continue to drive big advances in performance and sustainability across solutions like
digital mixing valves, boilers, floor warming, thermostats, and more. Because the technology is designed to capture data over time, it holds the promise
to deliver new predictive capabilities beyond system protection and prevention. Future smart and connected systems will show operators where problems
are likely to occur and when risks may be elevated. Predictive capabilities can pave the way for even more preemptive action for system optimization,
protection, and prevention.
Our products being smart and connected translates to safer, more efficient, and cost-effective use of water. There is no better demonstration of our visionof sustainability.

30

EXAMPLES OF OUR PRODUCTS AT WORK

Backflow Chill
Challenge: Unexpected freezing temperaturesin typically temperate zones can cause severe
damage to a backflow preventer that hasn’t been
properly winterized. When the mercury rises andequipment thaws, a backflow preventer that iscracked from freezing can leak and cause
further damage.
Solution: With smart and connected freeze
detection, you can anticipate icy conditions andprepare accordingly. With this technology you canmonitor backflow preventers 24/7, help prevent
freeze damage, avoid a costly and time consuming
replacement of a cracked backflow, and reduce
waste water by avoiding the potential flooding that
follows freeze damage.

Watts • 2023 Sustainability Report

Big Bubba BB-S101

Next Gen USGB

Challenge: Many service lines that supply
homes with potable water contain parts suchas pipes or solder that may contain metal
contaminants. Running a tap for 10-15 seconds
can reduce such contaminants in drinking
water, but also wastes water and energy, anddoes not entirely eliminate contaminants. Other
contaminants like perfluoro octane sulfonate andperfluoro octanoic acid (PFOS and PFOA) that areused in consumer products can be found in wells
that supply drinking water.

Challenge: Managing the supply and temperatureof hot water is a year-round challenge for facilities
teams in settings like hospitals, colleges, hotels,
and office buildings. Temperature fluctuation iscommon in plumbing systems and can be causedby seasonality, system pressure fluctuations,and hot water heater malfunctions. Unmitigatedtemperature changes pose significant safety risks,such as scalding and contamination by waterborne
bacteria including Legionella.

Solution: The Big Bubba® BB-S101 WholeHome
Filtration System filters out certain metal
contaminants, PFOA/PFAS, chlorine, and cysts
from water at its point-of-entry into a home. The
system filters up to 84,000 gallons of safe drinking
water, avoiding the need for single-use plastic
water bottles. The system comes standard witha Water Quality Monitor that automatically alerts
users via text message or email when a filter needs
replacement, helping to ensure that clean, filteredwater is always available. The system is IAPMO
and NSF certified, meeting the highest standardsof quality and performance.

Pure H20 Under Counter Lead
Reduction System
Challenge: One of the biggest issues with leaddetection in drinking water is that it cannot beseen, tasted, or smelled. Because of this the U.S.
Environmental Protection Agency set the maximum
contaminant level goal for lead in drinking waterat zero.
Solution: The Watts High Capacity Single-stage
Lead Filtration System produces high-quality,
sage water by removing 99.2% of lead in drinking
water. The system is also certified to reduce
chlorine, taste odor, and sediment for great tastingwater. It is also cost effective as it is a point-of-use
option that only treats water used for cooking
and drinking.

Solution: Watts Lead-Free Under Sink Guardian(LFUSG-B) helps ensure that hot watertemperatures at faucets remain consistent andminimize risk of scalding. It gives system operators
capabilities to individually manage faucets for an
entire building loop at regular intervals mitigate
waterborne pathogen growth. The LFUSG meetsthe reduced Q test statistic criteria of 0.5 ppb forlead per Section 9.5.1.1 of NSF/ANSI/CAN 61. This
ensures that the LFUSG-B can be used for potablewater under the new National Science Foundation
guidelines to further reduce lead content indrinking water.

31

FLORIDA MUNICIPALITY FINDS A BETTER ANALYZER
THROUGH HF SCIENTIFIC
WHAT THE CLIENT NEEDEDA Florida municipality needed a new analyzer to continuously monitor free chlorine for their 20+
ground water treatment plants. They had used a well known analyzer for years. However, due
to the age of the devices and plans by the manufacturer to cease production of the model, themunicipality sought an alternative. They wanted to try a new option to improve efficiency, reduce
maintenance, and maybe even save money.

HF SCIENTIFIC SOLUTIONA CLX DPD-based chlorine analyzer was installed, and JAW reagent provided at one of thecounty plants with the most potential issues with hardness, and both were monitored for overthree months. A new model of their previous analyzer was also tested side by side with the CLX.
The HF scientific CLX proved to be easier to install, required less maintenance, and offeredimproved reliability compared to the previous analyzer. The plant also evaluated a third option;
however, after comparing all three, it was clear that the CLX performed the best.
The municipality chose the HF scientific CLX for its performance and low maintenance. The
CLX was also the lowest capital cost alternative of the three systems and had the lowest cost ofoperation when considering maintenance, time, and parts.
The municipality will have a new cost-efficient, durable system that provides reliable, accurate
chlorine monitoring for more than 20 ground water treatment plants.

Watts • 2023 Sustainability Report32

EXAMPLES OF OUR PRODUCTS AT WORK
Centurion Relief Valve

Conserving
Water

Experts project that the world will face a
40% global water deficit by 2030. Whilewater supply is increasingly threatened,
freshwater use has increased over 600%
since 1960, and continues to grow(Source: UN World Water Development
Report, World Resources Institute). The
world depends on reliable access to cleanwater, and through our products we work
to conserve this precious resource. Everyday, Watts solutions help customers
prevent unnecessary water loss inresidential, commercial, industrial, andmunicipal water systems.

Challenge: Relief valvesconnected to large boilers
or water heaters may
discharge significant
amounts of water due tothermal expansion or otherissues. These leaks can gounnoticed because watertanks are usually located in areas not checked
daily or not properly piped to sufficient drainage.
The International Mechanical Code (IMC)
mandates monitoring of relief valves on water
heaters and boilers that are not easily visible. If
left unchecked, relief valves can release gallons ofscalding hot water per minute, potentially causing
flooding if not properly piped to sufficient drainage
and damage to equipment and property inutility rooms.
Solution: The Centurion Relief Valve is a smart,connected device with a sensor that detects
when the valve is open, discharging water.
When integrated with your building management
system (BMS), it sends real-time alerts, warningof potential issues before they become safety
hazards like flooding or equipment failure. This
ensures IMC compliance, prevents heat and water
waste from hot water flooding, and aids in flood
remediation, avoiding costly repairs.
RainCycle
Challenge: Water is becoming an increasingly
scarce resource and buildings are constantly
looking for ways to reduce their water usage.
Many are specifically looking to reduce the use of

Watts • 2023
2021 Sustainability Report

potable water in applications where non-potablewater can be used in order to achieve a moreenvironmentally friendly solution. In some regionswith high rainfall, building owners need to reduce
the amount of stormwaterrunoff as stormwater can
carry disease causing
bacteria and viruses.
Solution: The RainCycle™
system efficiently captures,stores, treats, and delivers
non-potable water for avariety of end uses including
irrigation, restrooms,
laundry, and more. A
five-tank, 42,000-gallon
Watts RainCycle rainwater
harvesting system can replace 50% or more ofmunicipal water used for grey water and sewage
conveyance in a commercial building. This
saves an average of 140,000 gallons per year
for the facility, which is equivalent to the water
consumption of 482 adults annually.
Enware Smartflow
Challenge: In Australia,
regulation requires water
quality testing at the
point-of-use to mitigate
waterborne pathogen
disease. Manual testing
can be labor intensive,and hot water flushing
Thermostatic Mixing
Valves (TMVs) consume
valuable water resources.

Solution: Enware Smartflow Water Management
Systems help alleviate these issues throughautomatic testing with real-time 24/7 data
capture. This means that testing can be done
easily during normal daily use. It also helps
save water by minimizing water wasted throughflushing. With the installation and proper use of
the Enware Smartflow, a building can reduce theiroperational costs associated with water testing by
up to 65% and have a water savings up to 80%.
Bradley Touchless Faucet
Challenge: Since 2009,
more Americans say they
are washing their hands
more diligently due to
flu and/or coronavirus
outbreaks. Due tosafety concerns, 86%
of Americans believe it
is important that public
restrooms have touchlessfaucets. In addition, manual faucets can be left onor not properly closed, leading to wasted waterand electricity.
Solution: Bradley’s touchless faucets have touchfree dual-sensor activation, avoiding users comingin contact with potential bacteria or viruses.
When not in use, the faucet automatically shuts
off, conserving water. According to a study from
California State University, “automatic faucets
with a 0.5 and 0.35 gpm aerator resulted inan average water reduction of 32% and 54%
respectively in comparison to the manual faucet.”33

HYGIENICPRO AND HYGIENICCLEAN CHANGE THE
GAME FOR THE WATERFRONT MARKET IN DUBAI
BLUCHER HygienicPro has proven to be a game-changer in the recent drainage
renovation for Dubai’s Waterfront Market, significantly contributing to water conservationand energy efficiency.
The HygienicPro channel is designed with a casted grating and smooth surface, andsignificantly reduces water usage during cleaning. Unlike previous solutions withpolyurethane-coated concrete channels that required more water for effective cleaning, theHygienicPro channel’s smooth grating and lack of crevices prevent dirt buildup, leading toefficient cleaning with less water. The HygienicPro is designed to use 96.5% less water than
traditional channel drains.
The Waterfront Market also utilized HygienicClean, a cleaning system specifically designed
to work with our HygienicPro to maintain the cleanliness and hygiene standards of thedrainage system effectively. HygienicClean’s cleaning methods are designed to be highly
effective while using minimal water.
By utilizing HygienicClean alongside HygienicPro, the fish market can achieve significant
water savings during routine cleaning and maintenance activities. The optimized cleaning
process ensures thorough cleanliness without excessive water usage, aligning with water
conservation goals and sustainability efforts.

Watts • 2023 Sustainability Report34

EXAMPLES OF OUR PRODUCTS AT WORK

Improving
EnergyEfficiency

Heating and cooling air and water is amajor source of greenhouse gas emissions.
Heating and cooling account for 27% of
CO2 emissions in commercial settings,
and 38% in residential settings. Water
heating alone represents about 15% of
CO2 emissions in the residential sector,
according to the International Energy
Agency’s Annual Energy Outlook 2018.
Watts products are consciously designed
to reduce their environmental impact anddeliver cost savings for our customers.

Watts • 2023
2021 Sustainability Report

PVI Durawatt
Challenge: Many traditional water heaters are gas
powered and require natural gas or propane tooperate. These are not the most energy efficientsolutions and the gas usage can negatively
contribute to climate change. There are also
safety concerns associated with gas powered
water heaters. If not properly vented or if there areleaks, carbon monoxide can accumulate. Since
they require a combustible fuel source there arealso risks around gas leaks, fires, or explosions.
Solution: Durawatt® is a heavy-duty, medium-tolarge capacity electric water heater, constructedwith individual heating elements that are
combined for higher recovery requirements, rather
than large, high-kilowatt tube bundles that can bedifficult to maintain. It operates at a 98% thermal
efficiency and can also be easily integrated withrenewable energy sources such as solar panels.

Microflex

Stainless Steel Radiant-Heat Manifolds

Challenge: European markets are heavily
focused on energy efficiency and seek to reduce
dependence on outside energy sources. Whenheated or cooled water travels through pipes,
the temperature of the water will move toward
room temperature, meaning that it will need to beheated or cooled again before use. This leads towasted energy usage.

Challenge: Heatinga house can beenergy intensive andexpensive, with a big
environmental impact.
Consumers everywhere,
especially those in theEuropean region, arelooking for ways todecrease high energy
costs and be moresustainable.

Solution: Our Microflex® pre-insulated piping
system is composed of a thermal insulation
around a carrier pipe and covered by a “closed
chamber,” protective, UV-resistant outer casing.
Microflex piping is suitable for use in heating,cooling, and sanitary applications, allowing for
reduced temperature loss and subsequent
energy savings.

Solution: Watts Stainless Steel Radiant-Heat
Manifolds for underfloor heating can help
reduce energy usage when used in conjunction
with standard heating methods. Underfloor
heating concentrates the heat at the living level,
regardless of ceiling height. Using radiant floor
heating also allows for a lower temperature heat
input to achieve a comfortable temperature. The
German Heating Industry Association estimatesthat with radiant floor heating, room temperature
can be reduced by 2ºC and provide the samecomfort level.

35

THE LYNC AEGIS CO2 HEAT PUMP AIDS IN BUILDING FIRST ALL-ELECTRIC
LIVING COMMUNITY IN DOWNTOWN AMHERST
CHALLENGE

Archipelago Investments, LLC, a building owner with a history of constructing LEED and carbon-neutral buildings, faced a pressing
need to transition from centralized condensing gas boilers to electric water heating for domestic hot water production. With the state of
Massachusetts mandating an 80% reduction in greenhouse gas emissions and the nearby University of Massachusetts Amherst aiming
for carbon-zero compliance by 2030, Archipelago Investments envisioned a solution that aligned with these goals when they developed
Eleven East Pleasant, the first all-electric living community in downtown Amherst.

SOLUTIONTo enable the vision of Archipelago Investments to be realized, Lync provided an innovative domestic hot water solution for the newcarbon-zero, all-electric apartment building. The chosen solution featured the Aegis A500 air source heat pump, integrated with Bolt
storage tanks totaling 750 gallons and 108kW of backup electric resistance.
The Aegis CO2 heat pump boasts an impressive heating coefficient of performance (COP) of up to four, making it significantly more
efficient than traditional resistive electric systems. The CO2 refrigerant also exceeds expectations when compared to other common
refrigerants used in heat pump water heaters with a Global Warming Potential (GWP) of one.
Recognizing the importance of storage capacity in an energy-efficient and cost-effective heat pump water heater system solution,
Lync’s Bolt storage tanks were utilized in various sizes and power configurations, with a 25-year warranty ensuring long-term reliability
and peace of mind.

RESULTS

By implementing Lync’s comprehensive solution, Archipelago Investments was able to make the carbon-zero, all-electric apartmentbuilding a reality. They stand to achieve substantial returns on their investment, and the transition to electric domestic hot waterproduction aligns seamlessly with Massachusetts’ emissions reduction goals and the carbon-zero aspirations of the nearby Universityof Massachusetts Amherst.

Watts • 2023 Sustainability Report36Supporting the Transition to
a Lower Carbon Economy
Bold and urgent action is needed for the world to meet the goals of the Paris Agreement,
limit global temperature rise to 1.5 degrees Celsius, and avoid the worst impacts of climatechange. At Watts, we’re poised to play a critical role in supporting a necessary transition
toward decarbonization of the built environment—through electrification, increased relianceon renewable energy sources, and high-efficiency, low-emission operational solutions.

90%

The built environment accounts for approximately one quarter ofthe world’s greenhouse gas emissions; 90% of those emissions area result of fuel consumption.
Source: Building Value by Decarbonizing the Built Environment, McKinsey & Company

We are taking a comprehensive approach to a big challenge, with a portfolio of solutions
that provide our customers with the guidance and tools they need to respond to localized
legislation, achieve cost savings, and meet their own emissions reductions targets. Our
efforts to prepare for a low carbon future come as a natural progression and build on a legacyof climate focus through high-efficiency products.
In 2023, we took several steps to identify and act upon the risks and opportunities thatclimate change poses to our business, including:• Closely monitoring legislation and regulation around the use of natural gas in new
applications across the world, and most notably in the United States• Enhancing our product portfolio and offerings to elevate electrification, high-efficiency,
and low-carbon solutions• Systematically targeting markets that value high-efficiency, natural gas and no-carbon,
electric applications

Watts • 2023 Sustainability Report

37

OPTIMIZING OUR PRODUCT PORTFOLIO

In January 2024, we introduced several new solutions forcustomers seeking to achieve greater efficiency while reducing
their carbon emissions:
The Benchmark® E is a powerful,zero-emission electric boiler thatoffers the same superior reliability andenergy savings of our original gas-fired
Benchmark boiler. Estimates generated by
the U.S. Environmental Protection Agency(EPA) greenhouse gas equivalencies
calculator show that replacing a 4000mbh
gas boiler with the Benchmark® E would
reduce building emissions by about 130
tons of CO2.
• 98.99% efficiency• Carbon free when energy is from renewable source• Meets local regulations and codes on building electrification anddecarbonization• Optimizes plant management: up to 16 boilers can be sequenced,
including hybrid sequencing with our gas-fired Benchmark boilers• Ability to manage peak loads by maximizing charging time during
hours with off-peak electricity rates• Pairs with AERCO’s SmartPlate® EV indirect water heater for a
fully electric heating and hot water solution• Smart and connected Edge® Controller optimizes
system efficiency

The CFR High-Efficiency Boiler is the world’s
first stainless steel condensing boiler that can beinstalled in a Category I Vent. It provides a costeffective solution for building owners and facility
managers to upgrade to a significantly moreenergy-efficient boiler than would have previously
been possible given budget constraints andbuilding infrastructure. Estimates generated
by the U.S. EPA greenhouse gas equivalencies
calculator show that, for a typical 4,000,000 BTU/
hr heating application, a 5% seasonal efficiency
gain by using a higher efficiency appliance resultsin 29 tons of CO2 emissions saved per year.

We’re also expanding existing product lines and responding to
renewed interest in low carbon offerings:• Exceeds efficiency standards with up to 87.6% thermal efficiency• Easy boiler sequencing to maximize energy efficiency• Low NOx emissions• Smart and connected Edge® Controller optimizes
system efficiency
The Sequoia Boiler is a high-voltage immersed electrode hot water
boiler series for large commercial and industrial applications, including
hospitals, universities, and manufacturing plants.
This emission-free, high-efficiency, safe boiler isalso cost-effective to install, easy to operate andcan lower operating and maintenance costs.
• 97% efficiency

Lync Bolt: We made updates to the design of our electric storagetank to make installation even easier and expand compatibility with awider range of heat pump water heater applications
PVI Centurion and PVI Conquest:
We expanded the size ranges of ourhigh-efficiency, domestic hot water
heaters to provide even greater
flexibility to design for the specificwater heating needs of projects.

• Zero emissions• Peak load management• 10:1 modulation

Watts • 2023 Sustainability Report38

PAVING THE PATH TO DECARBONIZATION IN BROOKLYN
Approximately 15,000 residents call Spring Creek Towers in Brooklyn, New York, home. The sprawling,
46-building, multi-family urban community has a larger population density than many small towns, with an onsite shopping center, schools, a post office, senior center, and more.
Heat and hot water were generated and distributed by an aging central, gas-fired combined heat andpower (CHP) plant. When complex owners began planning upgrades with future electrification mandates
in mind, they learned the local electric utility’s grid could not support electrification. They selected AERCO
Benchmark boilers as the best available option—a result of the product’s high-efficiency, patented AERtrim
O2 Trim combustion technology, ultra-low NOx (nitrogen oxide) capability, and predictive maintenance remotemonitoring, which allows facility managers to ensure the units continue to operate at peak performance.
Today, the Spring Creek Towers complex is served by 46 Benchmark boilers of various sizes, across eight
modular EnviroSep plants. Each plant includes heating water pumps, summer pumps, controls and fullelectrical systems, lighting, and heat. Around-the-clock, off-site access helps ensure units are operating at
maximum efficiency with the lowest possible emissions.

DELIVERING EFFICIENCY, RELIABILITY, AND SAVINGS• 15,000 residents supplied with reliable heat and hot water every day• No drain on power grid
• Improved air quality: 91% reduction in nitrous oxide emissions• Fuel-to-hot-water efficiency improved from 49% to 89%• Water preservation: Decentralized system eliminated reliance on aged, leaking pipes

Watts • 2023 Sustainability Report39

Sustainable Innovation
Watts is committed to efforts to embed sustainability into all our
products — both in their function and in the way we manufacture
and package them. In 2023, we continued to invest in our capacity
to incorporate sustainability at the development stage of all new
products by incorporating a sustainability assessment into our“stage-gate” process, used for all new product development. This
creates new opportunities for our customers to increase their own
sustainability through our products.
Exiting 2023, 25% of our revenue was from smart and connectedenabled products, which connect our customers with smart control
systems for optimal performance and conserve critical resources by
increasing operability, efficiency, and safety.

We are excited about the completion of the LCA for many reasons. We
will be able to use the results to further understand the environmental
impact of the raw materials we use in our products and of ourinternal manufacturing processes. This will help us make material
and manufacturing improvements and will inform NPD projects. We
are also excited to use these LCAs to help our customers reach theirsustainability goals. We will be able to provide embodied information
for the products covered under the LCA and will help support green
building projects.

In order to ensure accuracy within our LCA, we completed it inaccordance with ISO 14040 and ISO 14044 guidelines and had it
reviewed by a third party.
Watts • 2023 Sustainability Report• Over 1 million pounds of CO2, the equivalent to keeping
98 cars off the road each year
• 1.3 million gallons of water, the equivalent to saving the waterused by 929 clothes washers over the course of a year

Since 2017, our global sourcing team has conducted comprehensive
reviews of our packaging practices at Watts, which has helped reduce
our use of plastics and chemicals for protective packaging by morethan 80%. In 2023, over 90% of all packaging boxes shipped tocustomers in the Americas were made with a high percentage ofpost-consumer recycled content and crates from low-grade, nonconsumer wood.

LIFE CYCLE ASSESSMENTS AT WATTS

The LCA covered some of our flagship products, including backflow
preventers, regulators, mixing valves, relief valves, hydronics, shut-off
valves, strainers, and other plumbing specialties.

• 1,400 trees

SUSTAINABLE PACKAGING

We also generate 42% of our revenue from clean-tech
products that support water infrastructure and distribution,water resource management and efficiency, and greencertified engineering and construction.

At Watts we’re focused on understanding the environmental impactof our product portfolio throughout the entire life cycle, so we
can continuously work to make every product we produce moresustainable. Over the course of 2023 we furthered our commitment tolife cycle assessments (LCAs) and product transparency through large
scale LCA projects. We have conducted an LCA to cover all of the
products manufactured at one of our top plants in Franklin, NH, USA.

With the transition to QR code instructions, we aim to avoid 12 million
pieces of paper over the next year. This equates to saving:OUR APPROACH TO SUSTAINABLE PACKAGING:• Promote sustainable packaging material content• Minimize total material content and reduce the final weightof packaged products• Design for transportation efficiency

TRANSITION TO QR CODE INSTRUCTIONS

At Watts, we value our natural resources and are always looking to
reduce our resource usage. Over the course of 2023, we worked totransition from paper instruction booklets to half-page insert cards
with QR codes. These QR codes will open online instructions for theuser for applicable products.

• Design for accessibility (assembly and life cycle
service access)• Provide consumer information on environmental
sustainability

40

BRADLEY CORPORATION BRINGS NEW SUSTAINABLE DESIGN CAPABILITIES TO WATTS
A Century of Innovation

In October 2023, we proudly welcomed a newmember to the Watts family of brands with theacquisition of Bradley Corporation, a leading
provider and manufacturer of commercial andindustrial washroom and emergency safety
products. In addition to the company’s wellearned reputation for exceptional customer
service and satisfaction and its broad portfolio of
quality fixtures, accessories, and safety solutions,Bradley’s commitment to environmentally
responsible practices and products directly aligns
with our established sustainability priorities –particularly in advancing water conservation andenergy efficiency.

Bradley’s legacy of delivering innovative,
creative, and efficient customer solutions began
in 1921 when the newly-formed company
began manufacturing its very first product—
the Bradley Washfountain. Originally designed
by Harry Bradley in 1917 and still widely used
today, the group handwashing station could
replace up to eight traditional sinks in commercial
settings, saving water, floor space, and timespent by employees waiting in long lines towash their hands. As the company quickly grew,
new technologies were adapted to enhance
the product’s convenience, efficiency, andsustainability, including the first foot-operated andsemi-circular models introduced in 1925, followedby new sizes, shapes, materials, and features inthe decades to follow. The core concept, design,and benefits of the Bradley Washfountain remainunchanged today, having now been used in morethan one million installations around the world.
Progress Guided by Purpose
Bradley remains committed to designing advanced
commercial plumbing products that provide thehighest levels of user comfort and efficiency, savewater, use fewer materials, and require less energy.
Through internal procedures aimed at reducing
waste and conserving resources, combined withongoing innovations in the sustainable design,use, and life cycle of its products, Bradley andmany of its products have earned sustainability
related industry memberships, certifications, anddesignations, including the following:

U.S. Green Building Council (USGBC): Bradley has been a USGBC member sinceJune 30, 2004.
Leadership in Energy and Environmental Design (LEED): Most Bradley products
are designed with features that support the Leadership in Energy and Environmental
Design (LEED) rating system developed by the USGBC. While LEED does not itself
certify products, many Bradley products contribute to earning points in a LEED
certified building project, particularly across categories of water efficiency, energy andatmosphere, materials and resources, and indoor environmental quality.
UL GREENGUARD and GREENGUARD GOLD Certification: UL GREENGUARD
Certification is earned by products that have been tested and evaluated to meetstringent chemical emissions limits. UL GREENGUARD Gold certification standards
include health-based criteria for additional chemicals and require lower total VOC
emissions levels to ensure that products are acceptable for use in environments
such as schools and healthcare facilities. Bradley currently offers 10 GREENGUARD
Certified and GREENGUARD GOLD Certified products across diverse categories.
Health Product Declarations (HPDs): Health Product Declarations (HPDs) provide
a standardized way of reporting the material contents of building products and theirassociated health effects. Bradley’s product portfolio includes several offerings thatfeature HPDs, including its Lenox Plastic Lockers, Bradmar Partitions, and Bradley
Stainless Steel Partitions.
WELL Building Standard: The WELL Building Standard is a performance-based
system for measuring, certifying, and monitoring features of the built environmentthat impact human health and wellness through air, water, nourishment, light, fitness,
comfort, and mind. While WELL does not itself certify products, many Bradleyproducts can contribute toward earning this certification.
mindful MATERIALS: Bradley recently published many of its materials on mindful
MATERIALS Database. This free, virtual library offers better material transparency tomembers in the architecture and design community.

Bradley not included in eco-efficiency calculations for environmental goals. Please visit Appendix for more details.

Watts • 2023 Sustainability Report41Best-in-Class
Training

Our strong belief in providing training and education tocontractors, plumbers, distributors, engineers, employees,
and building owners dates back to the early 20th century, when
our water safety educational campaign informed plumbing
inspectors about the critical roles both temperature and pressure
regulation play in preventing water heater explosions.
Today, our global Watts Works Learning Program is focusedon customer support and protection and reflects customized
investments intended to promote safe product use, extend
product longevity, and instill confidence in our customers. We
believe educating our customers about our products, as wellas water safety, conservation, and efficiency, is foundational tominimizing any negative impacts our customers, consumers, andemployees make on our water supply.

ENGAGEMENT AND
ACCESSIBILITY FOR ALL

Our training strategy hinges on a blended learning model,
creatively designed to adapt to our customers’ diverse
preferences and schedules. Whether in-person or virtual, eachsession is interactive and engaging, yet succinct and focused.
When the COVID-19 pandemic made in-person learning
impossible, it did not stop our efforts. Instead, we designed
creative solutions to bring the learning to our customers. In
2023, more than 147,000 Watts Works eLearning sessions were
provided to customers worldwide as we continued to see a rebalance to in-person trainings at our Learning Centers.

Watts • 2023 Sustainability Report

ONLINE LEARNING PROGRAM• eLearning courses, available now in 18 countries and 10 languages, feature concise, three-to-sevenminute modules and assessments to confirm knowledge retention• Our Watts Works online training program allows Watts to deliver on-demand product andapplications-based training to customers while reducing gasoline and paper consumption associatedwith traditional in-person training• 2023 highlight: expanded to customers in Australia, Poland, and the Middle East and now offer alibrary of almost 1,000 product and application modules, available in 23 countries and 12 languages

LUNCH & LEARN• Small group, one-hour trainings conducted either onsite with customers or virtually by sales teammembers at Watts• 2023 highlight: launched a customer feedback tool and continued to deliver over 44,000 training
sessions to customers• We have over 30 Continuing Education (CEU) courses available through both the American Society of
Plumbing Engineers (ASPE) and American Institute of Architects (AIA)

INSTRUCTOR-LED TRAINING• In-person training held in a Watts Works Learning Center focused on hands-on learning and productdemonstration in our live wet lab• 2023 highlight: our Learning Centers reached a milestone in 2023, training a record 2,181 customers,
an increase of 20% over the prior year, the first full year of operation following the COVID-19 pandemic

42

SocialResponsibility

SocialResponsibility
We are proud to be an agent for making people
and communities safer, healthier, and stronger.
At Watts, enriching and protecting our people
and finding meaningful ways to be more diverse,
equitable, and inclusive are core to our businessstrategy. Our people-first approach extends globally
through our corporate giving and community
engagement initiatives.
Our company thrives because of employees whobring diverse backgrounds, talents, and ideas toWatts. In an intensely competitive talent landscape,we continued to set ourselves apart in 2023 byproviding our employees with meaningful career
growth opportunities, a positive and safe work
environment, and affirmation that they are heard,
valued, and respected. We also designed andinvested in programs to expand diversity, equity, andinclusion (DEI) initiatives and develop talent acrossour business.

Right: Watts welcomed local first responders to our North
Andover, MA, USA, headquarters on the anniversary of
9/11 to thank them for their service to our community

Watts • 2023 Sustainability Report44Social Responsibility
HEALTH AND SAFETY

Enriching, engaging, and protecting our employees
and the communities where we operate

DIVERSITY, EQUITY, AND INCLUSION

Zero recordable injuries
achieved at 17 operating anddistribution sites

ISO 45001 Certification• Achieved for our global Occupational
Health and Safety program

Celebrated an arrayof cultural milestones
and events• Certified sites represented 23% of ourglobal population

10,000units of safety training delivered

Grew the reachand influenceof our six ERGs

ENRICHING COMMUNITIESProvided clean, safe
drinking water for

24,400peopleLaunched a holistic review
of our 2024 U.S. benefit
plan offering with an eye
toward improving ourbenefit proposition in themarketplace and meetingthe diverse needs of ouremployee population

ENGAGING AND INVESTING
IN EMPLOYEESFocused on 10 U.S. sites
for directed implementationof inclusion and recruiting
pipeline outreach efforts

Implemented anaugmented writing
platform to enhance
inclusivity in ourjob descriptions

100% of Watts colleagues
globally will receive
inclusive leadership andunconscious bias training
by the end of 2025

22,797hours of employee training

3,629

employees trained on Quick
Kaizens, to “fix what bugs them”

8,628

Quick Kaizen submissions, 20%of which directly pertained tosustainability efforts

56

employees awarded $115K throughInventor Recognition program*2023 metrics in the Social Responsibility pillar do not include Enware, Bradley, or Josam

Watts • 2023 Sustainability Report45

Occupational Health and Safety (OHS)At Watts, we believe that occupational injuries and illnesses arepreventable. We recognize healthy and safe working conditions
as a human right and commit to protecting the health and safetyof all employees working at our facilities around the world. This
commitment extends to contractors, visitors, customers, suppliers,
and all other business partners.
Our enterprise-wide OHS management system promotes operational
excellence and enables Watts to build exceptional products infacilities that operate safely, ethically, and responsibly. Its key
elements include worker participation and consultation, risk
assessments, training, written procedures, internal and external
auditing, and a framework for measuring program maturity andidentifying opportunities for continuous improvement. In December
2023, NSF, our certifying body for ISO45001, completed a surveillance
audit of our global OHS system, noting no non-conformances with thestandard. All Watts ISO45001 certified sites also achieved successin their surveillance audits. With the final closure of our Mery, France
operation and the addition of the Enware, Australia business, our ISO
45001 certified sites represent 23% of our global population, a slightincrease year-over-year.

A CULTURE OF SAFETY

We aspire to be a zero-incident workplace, and in 2023, 17 of ouroperating and distribution sites maintained zero recordable injuries.
Our Zero Incidents, Employee Engagement, Risk Reduction, andOperational Excellence (Z.E.R.O.) approach to drive a culture ofsafety at Watts empowers our people with the knowledge, tools, andresources they need to effectively identify hazards, mitigate risks, andexplore improvements. This approach includes:• Safety Committees: These committees generate opportunities
to reduce risk and support the mitigation of those risks.

Watts • 2023 Sustainability Report• Job Hazard Analyses: These analyses identify job-related
hazards through a systematic risk assessment process.

SAFETY PERFORMANCE• Safety Stand-Downs: These stand-downs bring employees andsite leaders together to discuss safety performance and related
issues, and identify opportunities for improvement.
• Early Reporting: Reporting early empowers employees at alllevels to provide input into Safety Observations (“I think this isunsafe”) and Near-Misses (“An event occurred, but nobody washurt”). In 2023, employees submitted more than 5,600 near-missreports and 16,500 safety observations, increases of 3% and 9%
year-over-year, respectively.
• Safety Training: This training promotes a safe and healthy
workplace. In 2023, we delivered more than 10,000 units ofsafety training to our employees on a variety of topics, including
emergency preparedness, accident prevention, and tool andequipment safety.
• In 2023, the organization started to evaluate artificial intelligence
options that would help enable our OHS programs and we plan toimplement two of the technologies in 2024. These technologies
enhance the effectiveness of our data mining and provide tools
for optimizing ergonomic hazards in the workplace.
Injury reductions in 2023 were driven by multiple factors, including
workstation optimization, increased investment in automation, crossfunctional engagement, employee rotation programs, and professional
development, select staffing adds (distribution centers in the Americas
and an occupational health medical professional in France), andincreased best practice sharing across the globe. Emphasis wasplaced on material handling, which is one of the top contributing
factors to the injuries we have experienced.

Total Recordable
Incident Rate (TRIR)

Lost Time Incident
Rate (LTR)

2019

1.97

1.01

2020

1.51

0.68

2021

1.28

0.58

2022

1.16

0.52

2023

0.92

0.49

Recordable Incidents per
200,000 Hours Worked

Lost Time Incident per
200,000 Hours Worked

Each site presents its EHS performance as part of our monthly
operating reviews. Our standard metrics for safety include seven KPIs:
total recordable incident rate (TRIR), lost time incident rate (LTIR),
near-miss reporting, safety observations reporting, risk-reduction
scores, EHS framework score, and finding-closure rate. Twenty-four
operating and distribution sites reduced their year-over-year losttime incident rates or had zero incidents, including seven sites with
reductions greater than 25%.

VACCINATION CLINICS

We sponsored clinics and partnerships with local pharmacies andoccupational doctors to encourage those on our sites, and theirfamilies, to get immunized against influenza, COVID, shingles,
and more.

46

Diversity, Equity,and Inclusion (DEI)
At Watts, we embrace and celebrate the individual identities of all
our employees. We work to ensure that every individual receives
fair treatment and equal access, and feels valued and supported
by our culture and workplace environment. This commitment
touches every aspect of our business and is embedded at eachlevel of our talent process, from recruitment and onboarding, todevelopment and retention.

Throughout 2023, we continued to implement our 12-month plan
designed to execute on our DEI initiatives. Our leaders presented
progress to our board of directors in August 2023, and provided an
overview of actions planned for subsequent years.
In 2023, we continued to make strides in further embedding DEI
throughout our business. We continued to establish partnerships
with and conducted recruitment activities at universities todrive female and underrepresented minority outreach and rolled
out leadership and inclusivity training throughout the globalorganization. We also established a diverse candidate slate policy
to assist in our outreach efforts and expand the pool of qualified
candidates for positions.
Additionally, our ERGs, which are voluntary, employee-led groups
open to all, continue to be a platform for employees to sharecommon interests and experiences, gain professional development
support, engage with our leadership teams, and drive initiatives toimprove DEI at Watts.

Watts • 2023 Sustainability Report

DEI PERFORMANCE HIGHLIGHTS IN 2023

TALENT ACQUISITION
We continue to work toward greater candidate outreach for women andhistorically underrepresented groups at all levels of our organization. To
advance this work, our talent acquisition and DEI teams continued toestablish partnerships with institutions, professional networks, andsearch firms, attend career fairs, and collaborate with our ERGs.
• We launched diverse candidate slate policy training to talent acquisition
partners, HR partners, and hiring managers in 2023
• We focused on 10 U.S. sites for implementation of the inclusion and recruiting
outreach efforts• We implemented an augmented writing platform to enhance inclusivity in ourjob descriptions

Watts sponsored and participated in
the Manufacturers Alliance Women in
Leadership Forum & Luncheon where
several colleagues experienced a powerful
and inspiring networking experience withwomen in manufacturing

TALENT MANAGEMENT
Once candidates choose to pursue a career with Watts, we work diligently
to retain them, including through our talent assessment process and talentdevelopment opportunities. This includes candidates from historicallyunderrepresented groups and women. We also continued our work started
in 2022 to expand our strategic talent-review process to include such
emerging diverse talent, helping to identify opportunities for growth anddevelopment for high-potential colleagues.
Watts at New Jersey Institute ofTechnology Career Fair

47

TALENT DEVELOPMENT• By the end of 2025, all Watts colleagues globally will engage in training on inclusive leadership behaviors
and unconscious bias through a partnership with the NeuroLeadership Institute (NLI). The training was
first implemented to senior leaders in the Americas in October 2022 and continued in 2023 with online
training for U.S. connected employees and on-site workshops for the production population. The
program was launched in late 2023 for our senior leaders in APMEA and Europe, which will continue into
2024. According to survey feedback from our production employees, the sessions received a 7.65/10
rating with comments such as “I learned to keep an open mind, to change, and adapt,” and “Thistraining was really engaging and eye-opening.”• Select members of our ERGs had the opportunity to participate in external trainings and conferences,such as the ERG Academy and ERG Group Leader Coaching with the National Diversity Council.

TOTAL REWARDS• Beginning in February 2023, with the help of Mercer, an international consulting firm, we embarked on aholistic review of our 2024 U.S. benefit plan offering with an eye toward improving our benefit propositionin the marketplace. Our focus was to provide best-in-class programs that met the diverse needs of
our employee population. Our analysis included a review of our medical, pharmacy, dental, and vision
providers, our ancillary services, and programs to help with family planning and parental leaves. Uponour 2023 review, our 2024 plan included the addition of eight weeks of paid parental leave as a familyplanning benefit, as well as a hearing aid benefit. These benefits were some that our diverse population
generally requested that we include in our overall benefits offerings.
• We continued to develop our benefits communications throughout 2023 with a focus on mental health,physical health, and financial health, including presentation and communication pieces geared toward
our diverse populations.

Watts • 2023 Sustainability Report48

DRIVING ENGAGEMENT
IN DEI THROUGH OUREMPLOYEE RESOURCEGROUPSIn 2023, we continued our unwavering
support to each of our six ERGs inestablishing their mission, vision,
purpose, and objectives. These ERGs
led impactful discussions, organizedcultural and heritage celebrations, andraised awareness of how Watts can foster
a welcoming and inclusive environment
for every employee. At Watts, werecognize that diversity and inclusion are
cornerstones for a thriving and successful
workplace. We are proud to have suchdedicated employees who are committed
to fostering a sense of belonging
for everyone.

CELEBRATING CULTURAL MILESTONES IN 2023

We joined our ERGs in celebrating an array of cultural milestones and events throughout 2023.
• Honoring Black History Month, our Black
Matters at Watts ERG hosted the “Amend:
The Fight for America” docuseries, educatingcolleagues on the legacy of the 14th
Amendment to the United States Constitution,
which explores the history of discrimination
and activism for equality in the United States,
as well as a virtual presentation on the historyof Juneteenth.
• Honoring Women’s History Month andsupporting the mission of advancing women,building empowering internal networks,
leadership skills and allyship, the Women of
Watts ERG started a mentoring program.

• Honoring Hispanic Heritage Month and its
historical cultural significance, employees atselect sites were invited to enjoy Hispanic
cuisines from a variety of Latin countries as
an exciting and delicious way to showcase
cultural diversity, while also providing everyone
an opportunity to learn about each other andtheir backgrounds.

• Honoring PRIDE Month and its historicalsignificance dedicated to the celebration andcommemoration of lesbian, gay, bisexual, andtransgender (LGBT) pride, our PRIDE ERG• Honoring and recognizing Breast Cancer
Awareness Month, we elevated our employee
engagement across our global enterprise,partnering with the Susan G. Komen Breast

The Women of Watts ERG marked Women’s
History Month

Watts • 2023 Sustainability Report

hosted panel discussions centered around‘Understanding Microaggressions’, ‘Fosteringa Safe Workspace Through Diversity andInclusion’ and community outreach luncheons,bringing colleagues together, advancing
allyship and cultural impact.

The Latin Americans at Watts ERG welcomed
employees at select sites to enjoy Hispanic cuisinesfrom a variety of Latin countries as an exciting anddelicious way to showcase cultural diversity

Cancer Foundation, to present a global virtual
information session on the advancements inresearch, self-awareness, and health equity.
We also heard inspiring survivor stories
from our teams to raise awareness of theimportance of testing and prevention. Lastly,
we held our third annual “Pink for a Day” global
fundraiser to spread awareness, honor those
who have been impacted by breast cancer,
and help contribute to this important cause.
• Honoring Memorial Day and Veterans Day,
select sites celebrated our veterans in a variety
of ways. Our Vets Matters ERG in Fort Worth,
TX, USA created a Memorial Day Fallen Soldier
Table where Watts Veterans gathered to sharestories, fellowship, and a meal. They each
received a “Thank You For Your Service” gift –a commemorative keepsake coin, which was apoint of pride.

The Pride Matters ERG hosted events throughout
Pride Month, bringing colleagues together toadvance allyship and cultural impact

49

Talent Retention and Development
We implemented a number of measures to further distinguish Watts as an employer of choice and took several actions in 2023.

2023 HIGHLIGHTS
Compensation and Incentives: We regularly analyze wages to retain employees and stay competitive in the labor market. Internal
pay equity review is embedded into our hiring and promotion processes. In 2023, we conducted a complete benchmark of all ourroles in the Americas to ensure we are market competitive in our hiring and retention practices. Where needed, we provided market
adjustments to stay competitive and retain key talent. In 2023, we began a project to revitalize our job architecture that will better alignwith our roles and provide our employees with a more comprehensive career path structure.
Work/Life Balance: In a continued effort to reduce employee overtime at production facilities, we continue to explore diversified
recruiting efforts, including focusing on our U.S. internship program and expanding our partnerships with tech schools, recruitment
agencies, and a number of professional networks. We have also begun to evaluate the possibility of certain roles being fully remoteand continue to hire for hybrid or remote positions.
Employee Development: To facilitate learning opportunities for our connected employees, we launched a quarterly training anddevelopment calendar featuring virtual instructor-led training sessions offered through internal facilitators, as well as partnerships with
best-in-class vendors.
Engagement: Employee pulse surveys conducted in 2023 helped us gain insights on progress on the topics of highest importanceto our colleagues – in relation to key drivers of engagement such as work life balance, career growth, and happiness at work. We also
invested in vibrant social programming for employees, including celebrations for holidays and company-related milestones, volunteer
events, and fitness competitions.

Watts • 2023 Sustainability Report

EMPLOYEE RECOGNITION
We believe in recognizing teams andindividual employees for their contributions— especially those who go above andbeyond their assigned duties. Our “Wayto Go” Program recognizes exceptionalteam efforts that help to advance the Watts
mission and embody our values, and ourinventor recognition program recognizes
an “invention,” patented or not, that
advances the business and/or research anddevelopment efforts at Watts. Any employee
can participate and receive a monetaryaward for invention disclosures, patentapplications, and issued patents. We also
provide recognition and awards for trade
secrets and prolific inventors.

In 2023, 56 employees received
a total of nearly $115,000 aspart of the company’s Inventor
Recognition and Award program.
Since the inception of the programin 2017, 850 awards have been
distributed, totaling more than
$540,000.

50TRAINING AND DEVELOPMENT

We invest in our employees by providing opportunities that support them inenhancing their skills, competencies, and overall professional development.
We offer a variety of in-person and virtual learning and development
programs that, at all levels and regions, are designed to build and retain
a strong global workforce. In 2023, learning and development initiatives
included the launch of a quarterly training and development calendar
featuring virtual instructor-led training sessions offered through internal
facilitators, as well as through external partnerships with best-in-classvendors. We continued the roll-out of our global leadership and inclusivity
training to include workshop sessions offered on-site for our production
workforce. We also increased our partnerships with external vendors to
expand the offerings for individual development needs, publishing a “Watts
Training & Development Offerings” catalog that is available to all employees.
We encourage all managers and employees to include training anddevelopment goals as part of our annual performance management process.
We evaluate the effectiveness of our learning and development programs
via feedback mechanisms (e.g., surveys, focus groups, etc.) and leverage
this data to inform recommendations for future improvements. Last year,
we offered 22,797 hours of online and in-person training on professional
development topics.

INTERNSHIP PROGRAM

Our student internship program aims to recruit, develop, and retain the next
generation of top talent and future leaders at Watts. In 2023, 51 interns
from across the U.S. participated in a variety of training and development
activities as part of a 12-week summer program. At the end of theirinternship, participants presented their learnings and experiences to theleadership teams.
Co-op students participate in key projects over a period of six months
to gain real-world experience and are paired with a mentor for guidanceand support.

STRATEGIC TALENT REVIEWOur approach to workforce planning provides a systematic framework thatenables us to understand the current state of our global talent pool matchedagainst current and future business needs, and how we can solve for any gapsthat may exist. Our Strategic Talent Review (STR) process assesses employee
Watts • 2023 Sustainability Report

performance/potential, retention risk and impact, succession planning for key
positions, and actions to facilitate employee development. This comprehensive
approach to talent and succession allows us to have a deep understanding of
our talent pool and their development needs, consider the company’s future
growth, and identify new positions that need to be filled to advance futurebusiness improvement and retain our current and future leaders. Our board of
directors discusses succession planning at the executive level annually andperiodically receives updates on significant developments.

TALENT MANAGEMENT SCORECARD

Talent management scorecards are produced monthly and presented to the
Global Leadership Team for review. The scorecards highlight progress madeon goals and HR program initiatives across the function globally. They also
provide an at-a-glance view of key metrics that are essential to attracting,retaining, and developing a diverse global workforce, including headcount,
turnover, open positions by location globally, and time to fill metrics, inaddition to the performance of our compensation and benefits programs.

PERFORMANCE MANAGEMENT

Watts launched on-site leadership andinclusivity trainings and workshops at our U.S.
facilities in 2023

In support of our efforts to sustain an engaged workforce and high-performance
culture, we are committed to empowering teams to realize their true potential.
The Watts Performance Management Process helps us to build that culture byencouraging teams to have ongoing performance conversations throughout
the year. During annual performance review conversations, managers andemployees are encouraged to discuss business goals and achievements, aswell as career aspirations. These activities also allow our teams to cascadeorganizational goals to individual employees for better alignment with businesspriorities. The Watts Performance Management Process supports the following
key activities:• Aligning individual goals with the goals of the organization• Facilitating ongoing feedback and coaching• Celebrating employee accomplishments• Acknowledging effective behaviors, tied to the Watts Cultural
Behavior Framework

100%

In 2023, 100% of eligible employees in Watts APMEA, 99.64%
of eligible employees in Europe, and 99.06% of eligible
employees in the Americas received a performance review.

The Watts talent team makes valuable courses
more accessible to employees through thecuration of monthly LinkedIn Learning campaigns

51One Watts Performance System
We believe in a culture of continuous improvement
and reaching higher levels of performance ineverything that we do. Our Business Performance
System is a key differentiator separating goodcompanies from the truly great ones. We power our
One Watts Performance System (OWPS) througha collection of tools, processes, and behaviors
that feed our continuous growth and potential, as
well as fuel our future performance and success.
Designed with our customer as the focal point,
the OWPS serves as the foundation for all
our operations.
Our onboarding process includes training on thebasics of OWPS to simplify, standardize, andimprove our work every day.
We also evaluated the maturity of OWPS byassessing and scoring the Lean Business
Maturity of our processes against best-inclass companies. It identified our businessstrengths and opportunities around strategy,
processes, and culture. Designed to establish
a baseline and roadmap for improvement, thebusiness assessment united leaders not only
from operations, but from all business enterprisedepartments to benchmark the maturity of ourprocesses and helped us prioritize the main
opportunities to grow.
The assessments also promoted a better
understanding of the OWPS Lean tools andprocesses available to increase business success.
This is our DNA and how we act: with integrity,
accountability, continuous improvement,
and transparency.

Watts • 2023 Sustainability Report

KAIZEN EVENTS AND GLOBALREPORT-OUTS

We design Kaizen Events to drive meaningfulimprovements in critical areas that impact ourcustomers and the efficiency of our operations.
Driven by various Lean methodologies, thesecross-functional, multi-day improvement sessions
enable a structured approach to problem-solving.
Six months following the conclusion of a Kaizen
Event, we conduct a Global Kaizen Report-Out,
where Kaizen teams share the results and lessons
learned to inspire other sites to drive continuous
improvement within their facilities and operations.
Leaders across the organization, including the
Global Leadership Team, join report-outs andleverage learnings globally.
In 2023, 97 Kaizen Events linked to keyperformance-indicator needs in the areas of safety,
quality, delivery, cost, and growth were completed.
Nine Global Kaizen Report-Outs and three Global
Spotlights were held to share lessons learned.
Quick Kaizens

Quick Kaizens are smaller-scale, incremental
continuous improvement efforts that allow all
employees at Watts to “fix what bugs them.”
The Quick Kaizen Hub is a mobile-friendly, fully
automated online portal that centralizes thecompany’s improvement activities. Multiple
filtering capabilities allow for submissions to be
tracked, searched, and benchmarked with ease.
Each month, our continuous improvement teamannounces the best submissions received andthe site that submitted the most improvements.

Winners receive a branded ‘wasteologist’ shirt
and global recognition through various internal
communication channels.
In 2023, Watts employees submitted 8,628
Quick Kaizens to the Hub, 20% directly pertaining
to sustainability efforts. More than half of all
Quick Kaizens, 57%, were completed from areas
outside of operations, including customer service,
IT, human resources, and accounting. The Quick
Kaizen application has demonstrated the highengagement of our employees in improving theirenvironment and workplace.

the progress of all activities. To drive accountability,
we review annual productivity targets monthly
at the site level, and across divisions, functions,and platforms — and, ultimately, with our Global
Leadership Team.
In 2023, our teams executed 268 productivity
projects generating millions of dollars in savings.

Blue Belt and Green Belt

Blue Belt is a special designation for our
employees who have mastered the art of the Quick
Kaizens. After training to learn how to detect andeliminate waste, an employee who logs three Quick
Kaizens receives a Blue Belt certificate.
As of 2023, 3,629 employees have been trained
to “fix what bugs them” and 1,821 have been
awarded a Blue Belt certificate. We also launcheda global Green Belt wave consisting of a crossfunction, two-week course that provided the tools
to help leaders develop critical projects at Watts.
Productivity Projects Pipeline

Throughout the year, we identify projects to drive
productivity at Watts. These large-scale continuous
improvement initiatives focus on identifying andgenerating cost savings in plant productivity,
working capital, operational excellence, andorganic growth. We use a cloud-based project
management system to capture, track, and monitor

The Sorgues, France team has completed a dozen Quick
Kaizens focused on sustainability improvements and a Six
Sigma Black Belt project improving chemical usage for
product testing

In 2023, Watts employees
submitted 8,628 Quick Kaizens
to our Quick Kaizen Hub, an
automated online portal that
centralizes improvement efforts. In
2023, 1,606 employees participatedin Quick Kaizens. As of 2023, 1,821
employees have been awarded a Blue
Belt certificate for participating in threeor more Quick Kaizens.

52

Community Impact
COMMUNITY INVOLVEMENTEDUCATIONAL PARTNERSHIPS

Partnering to Save a Life – Colleagues in Fort Myers, FL, USA,
teamed up with Lee Health System for a blood drive to benefit
those in need in the local community. In total, 19 employees
graciously donated enough blood to save 30 lives. Watts also
partners with Lee Health for employee wellness initiatives.

Cultivating the Future Work Force – Colleagues in Plovdiv,
Bulgaria, welcomed students from a local school to learn about the
production process, customer management, and materials delivery.
The visit also prompted discussion about the future of digitalization
and robotization as part of the production process.

Promoting Youth Fitness &Safety – In a decades-longpartnership with the Boys
& Girls Club of Lawrence,
employees in North Andover,
MA, USA, gave their time
and talent by building anddonating 24 bikes to young
club members. The bikes were
safety tested and were pairedwith new helmets and locks, followed by a pizza party. The Club
focuses on three key areas: academic success; healthy lifestyles;
and character building/leadership.

Instilling Sustainability Values – The team in Vildbjerg,
Denmark, partnered with students from two local schools as
part of a community-wide initiative focusing on sustainability,
entrepreneurship, and teamwork. The first project tasked the teamwith generating ideas for smarter, more sustainable packaging,while the second ignited proposals about better use of green spacearound office and production facilities. The resulting, thoughtfulideas were then shared to a larger community initiative.

Supporting the Ecosystem – The team in Vernon, BC, Canada,cultivated a new partnership to improve the ecology in theircommunity, which is considered one of the three most endangered
ecological regions in Canada. In collaboration with Allen Brooks
Nature Center, the team successfully added more than 100 plants
to improve and sustain the local ecosystem.

Watts • 2023 Sustainability Report

Advancing Industry Learning – A Watts colleague joined forces
with students from both his high school and college alma matersin Elizabethtown, PA, USA, to create a plumbing training tool.
Watts provided the products needed, which resulted in a studentcreated working plumbing unit and an activity/training booklet. The
college presented the students with a “Recognition of Excellence
and Professional Potential Award” and the project was featured inContractor Magazine.

FUNDRAISING, SPONSORSHIPS, AND DONATIONSSupporting Vulnerable Populations – For the second year
in a row, colleagues in Landau, Germany, donated to a localorganization that collects and donates surplus food and othergoods from supermarkets, bakeries, butchers, and greengrocersthat would otherwise be destroyed. This sustainable and sociallyconscious organization then sorts and distributes the supplies tovarious vulnerable populations.
Knitting for Those in Need
– Our offices in Andoverand North Andover, MA,
USA, continued a longtime
partnership with a localorganization that offers
community, food, shelter,
clothing, and advocacy services
to people facing poverty, foodinsecurity, and homelessness.
Employees donated critical clothing, food, and personal care items,
including 150 hand-knitted hats in recognition of the company’s
150th anniversary.
Setting the Pace with Nonprofits – Colleagues in Fort Myers,
FL, USA, participated in the regional United Way’s annual
2023 Campaign Kickoff, themed “United More than Ever.” As a
“Pacesetter” organization, the Watts brand HF scientific helped
jumpstart the yearly campaign by raising initial dollars and setting
the tone for community stewardship.

53

GlobalEngagements
Our ongoing partnership with the Planet Water Foundation
supports the organization’s work to bring clean water tothe world’s most impoverished communities through the
installation of community-based water filtration systems,
as well as implementation of water health and hygiene
education programs. Throughout 2023, Watts continued its
partnership with Planet Water Foundation, installing eight
AquaTowers across four countries and positively impacting
up to 14,400 people.
• During World Water Day in March, Watts sponsored theinstallation of four integrated water systems for residents
in Cambodia, Indonesia, and Vietnam• As part of Planet Water Foundation’s Global
Handwashing Day initiatives in October, Watts sponsoredfour additional AquaTowers, bringing clean drinking
water to four vulnerable communities in Cambodia andthe Philippines• Each project provided schools with AquaSan mobile
surface disinfection systems to promote good water
hygiene practices in the schools’ latrines, as well asa water health and hygiene education program forcommunity members• We also sponsored one Aquablock Emergency Water
System in Turkey, providing access to clean, safe
drinking water to 10,000 people impacted by the
Kahramanmaras earthquake

Right: Watts continued its longtime partnership with Planet Water
Foundation to erect dozens of AquaTower water filtration systems
at primary schools, providing children and their families with easy
access to clean, safe drinking water and handwashing facilities

Watts • 2023 Sustainability Report

54Corporate
GovernanceCorporate Governance
At Watts, we earn the trust of our stakeholders through strong corporate governanceand adherence to high ethical standards. We are committed to operating ourbusiness ethically, responsibly, and sustainably, in order to create long-term value
and opportunities for future growth. Our corporate governance principles provide anessential framework to ensure we conduct ourselves in accordance with our mission,
vision, and values in the work we do every day.

GOVERNANCE AND ACCOUNTABILITY

Our board of directors continually works to improve the high ethical standards wepromote and practice at Watts. The board has adopted our Corporate Governance
Guidelines to assist and guide each of its nine members in serving in their director rolesand carrying out the responsibilities within their charge.
In 2023, our board met 11 times and each committee of the board met at least fourtimes, with certain additional meetings as needed throughout the year. Each director
attended at least 75% of the meetings of the board and all committees of the board on
which the director served. In addition, eight of our then-nine board members attended
the 2023 Annual Meeting of Stockholders, in person or by telephone conference call.
We believe our board should be composed of directors who have the collective
experience, qualifications, attributes, and skills required to make informed decisions,provide effective oversight, assess management’s performance, and evaluate ourstrategic direction. Our board understands the important role diversity among its
members has on our long-term success. In recognition of this, all board member
search processes include a requirement to identify and present a substantial numberof qualified women and candidates from historically underrepresented groups for theboard’s consideration.

Learn more about our board composition,
responsibilities, and performance in our 2024
Proxy Statement.

Watts • 2023 Sustainability Report

56Corporate Governance
WATTS BOARD OF DIRECTORS

9Total Members

60
Average Age

Earning the trust of our stakeholders by operating responsibly
and adhering to the highest ethical standards

ETHICS AND COMPLIANCE

7

YEARS

Average Tenure• The Code of Conduct training for all global employees
included a human rights module• Bi-annual, global, third-party due diligence audit confirmed
adherence to anti-corruption processes• Annual Conflict of Interest Certification, by management
and key functions, confirmed global compliance

99%99% of global employees were provided
updated Code of Conduct training andacknowledged adherence to the CodeRESPONSIBLE SUPPLY CHAIN
7/9 Independent
Directors

4/9 Diverse
Directors

Committee Meeting Participation:• Audit: 5• Governance and Sustainability: 4• Compensation: 5

7/9 Directors
With Experiencein ESG Matters

30%
30% increase insuppliers audited,
representing 22%of our global
supplier footprint

Participated in EcoVadis
global ESG rating assessment
for the first time in late 2023
as a global organization, an
improvement from prior years
of individual business entities
participating in ESG
self-assessments.

95%

70%

95% of our global
suppliers, by spend, haveconfirmed conformanceto our Supplier
ESG Standards

70 of 100 top suppliers
engaged in robust
ESG performance
surveys

All board of director details are current as of 5/22/24. The composition of our Board of Directors has changed since 12/31/23. See our investor website for current information about our Board of Directors. To learn more about our board composition,
responsibilities, and performance see our 2024 Proxy Statement.

Watts • 2023 Sustainability Report57Ethics, Integrity, and Transparency
We are committed to acting with integrity in every facet of our operations,and strive to meet and exceed applicable laws, regulations, and standards.
We require all Watts directors, officers, and employees (including parttime employees and contractors) throughout all regions, which includes all
subsidiaries globally, to adhere to our Code of Business Conduct, a guide for
applying our values to everyday actions and all business dealings, including
with employees, suppliers, and other partners. When we follow our Code in
our decisions and interactions, it allows us to Do the Right Thing, Always.
In 2022, as part of the company’s continuing efforts to distinguish itself asa responsible corporate citizen, we implemented a formal Human Rights
Policy outlining our commitment to promoting human rights within our labor
force, including through support of and adherence to the United Nations
Global Compact and the Universal Declaration of Human Rights. As part ofcontinuously improving our programs and to reinforce the policy, in 2023 we
provided human rights training to our employees as one of the Codetraining modules.
Published in 15 different languages to reflect our global footprint, the Codeis accessible via the company’s intranet and public website. Our global
compliance team regularly authors and distributes information throughinternal communications channels to promote awareness of the Code andtimely related topics.

In addition to annual training, we require all employees to acknowledge theCode and its requirements, and encourage them to raise questions andspeak up if they observe conduct that violates it. Each year, we refresh
our training by selecting different areas of focus, which in 2023 included
anti-corruption, harassment, modern slavery, and reporting concerns. In
2024, training will focus on similar and additional Code topics, including
bribery and corruption, diversity, equity, and inclusion, reporting concerns/
whistleblowing, protecting company assets, ESG principles, environment,
health, and safety, and respectful treatment and communication.
We also provide additional ethics and compliance training, both online andin person throughout the year, using a targeted approach that identifies
positions, functions, and regions with a higher risk of potential incidents aswell as in response to global trends and developments, and our own hotline
data. In 2023, we conducted targeted training to finance, sales, sourcing,
operations, and select third parties on anti-corruption policies, businesscourtesies, third-party due diligence, and import/export. We also require
select management and functional areas, including all global employees
at the director level and above, to complete an annual Conflict of Interest
Certification and Disclosure, stating they have read, understand, and willcomply with our Conflict of Interest Policy.

99%

In 2023, we met our goal to have
99% of employees (including parttime employees, consultants, andcontractors), both direct and indirect,
complete our Code of BusinessConduct training and acknowledge
their adherence to the Code. Our 99%
goal remains for 2024.

*2023 metrics in the Ethics, Integrity, and Transparency section do not include Bradley or Josam data

Watts • 2023 Sustainability Report58

DUE DILIGENCE REVIEWS

Before entering into new business relationships with third parties acting
on our behalf, we conduct risk-based due diligence utilizing a multi-factor
questionnaire, anti-corruption law notification, certification of compliancewith such laws, and a continuous international-denied-parties search review.
Based on questionnaire responses — in addition to automated risk ranking
through our third-party due diligence tool (utilizing, among other factors, theTransparency International Corruption Perception Index) — we determine
whether to further supplement the review with risk-based open-source
investigations. Open-source investigations identify and explore red flags,
including business expertise, time in business, name variations, ownership,
sanctions, embargoes, politically-exposed persons, entities, and persons on
government watchlists, and any related events bearing on integrity.
The compliance team in each region then determines whether to approvegoing forward with the relationship or recommend further review andapproval. Using our centralized third-party due diligence tool, we maintainrelevant documentation and records in a global database of due diligencestatus, results, and approvals to facilitate ongoing monitoring and auditingof these third-party relationships. Approved parties must enter into contracts
that include, among other terms, provisions governing payment andcompliance with anti-corruption, and import and export laws. We require all
third parties to complete a certification agreeing to comply with all applicableanti-corruption/anti-bribery laws.
We renew due diligence reviews for third parties every two years, but we
conduct ongoing denied-party-list searches for all parties throughout theyear, including using multiple denied-party-list tools and tools that reachownership interests. Due diligence policies and procedures are documented
and are part of regular training and review for select new hires and positions
at Watts. This process permits us to identify and address higher-risk
third parties.

Watts • 2023 Sustainability Report

RISK ASSESSMENTSManagement, including the compliance function and our internal audit team,conduct annual risk assessments to evaluate corruption and bribery-related
risk as part of the enterprise risk management process. Utilizing multiple
factors, risks, and business developments, these assessments determine
areas of focus and priorities for audits and site visits, during which we
review select compliance processes for evidence of fraud, corruption, or
deficiencies, such as compliance with the U.S. Foreign Corrupt Practices
Act. The internal audit function will then incorporate this into its site visits
for select site audits within its audit plan focusing on internal controls andcompliance with policies. We also conduct routine audits of various policies
and programs that compose our global compliance program, including biannual review of our third-party due diligence program and select risk-based
quarterly business courtesies reviews to ensure compliance with our policies.

MANAGEMENT OVERSIGHT

The Ethics and Compliance Steering Committee is a cross-functional teammade up of business leaders in executive management and internal audit,
including the CEO, chief financial officer, general counsel, chief humanresources officer, chief accounting officer, director of internal audit, and chiefcompliance officer (CCO). This group conducts regular meetings to monitor
compliance matters, business ethics, and corruption issues, as well as ethics
hotline reporting, and other compliance and business ethics developments
for review and action.
The CCO, who reports to the general counsel and chief sustainability officer,
is responsible for management and oversight of the ethics and complianceprogram. The CCO and compliance team regularly monitor trends from
reported hotline matters and legal, regulatory, and industry developments
to update any necessary program and policy enhancements. Each quarter,
the CCO reports to the board of directors and the Audit Committee, whichshare oversight for the ethics and compliance program, regarding additional
compliance and business ethics developments, investigations, ethics hotline
reports, and review status.

ANTI-CORRUPTIONPOLICIES
Our Anti-Corruption Policy is available in 14
languages and sets forth our zero-tolerance
approach to bribery and corruption.
Applicable to all Watts employees (including
part-time employees, contractors, andconsultants) and subsidiaries globally,
suppliers, and any third parties acting on
our behalf, it prohibits the use of bribes,
kickbacks, and other corrupt payments,
including facilitation payments. Our Global
Business Courtesy Guidelines, which areavailable in 10 languages and detail thethreshold levels at which employees mustobtain approval for the receipt or gift of abusiness courtesy and the process for doingso, support our Anti-Corruption Policy. We
apply various maximum thresholds based on
the corruption risk profile of the country inwhich the business courtesy is being given
or received to reflect different norms acrossour global footprint. All business courtesies
involving any government officials anywheremust be submitted for preapproval.
No incidents of corruption wereconfirmed at Watts in 2023, nor wereany legal actions regarding corruption
brought against the company.

59

GOVERNMENT CONTRACTING

We are committed to conducting business with federal, state, andlocal governments in accordance with the letter and spirit of the law,high standards of ethical business conduct, and in accordance with
our values.
The Government Contracts Supplement — an extension of ourCode of Business Conduct — serves as a resource for all employees
who perform work under government contracts and subcontracts,
or communicate with government entities in the U.S. Employees
involved in this type of work are expected to understand and comply
with the requirements and policies in this supplement, as well as therequirements of the contracts on which they work, and according
to the following core principles: We are honest, fair and open in ourcommunications and dealings with the government and its agencies;
We comply fully with the requirements of our government contracts;
We ensure that our employees understand the requirements ofthe contracts on which they are working; We make certain thatall statements, disclosures, invoices, certifications, and otherrepresentations made to the government are accurate, current, andcomplete; and we take appropriate action and report suspicions offraud or deception.

REPORTING CONCERNS

We regularly inform employees of the multiple avenues available tothem to report ethics-related concerns, including to their manager/
supervisor, HR, internal audit, legal, compliance, and our ethics
hotline, which is an independent, third-party, multilingual resource
available 24 hours a day, seven days a week, that allows employees

Watts • 2023 Sustainability Report

to report anonymously and confidentially. Each country has its own
dedicated in-country telephone number, which provides multilingual
support, including initial receipt of the report in the native language
from which the reporter is calling. Each of the numbers is listed on theWatts website and contact and access information is also provided in
postings at each facility.
The deputy general counsel/CCO reviews all ethics hotline mattersand assigns them to an investigator. Primarily conducted by humanresources and the legal department, investigations of reported matterstake place by conducting interviews and collecting documentationin order to assess the validity of the report, with a goal of completing
all investigations within 45 days of receipt. After the investigation iscompleted, the investigator reviews and documents the results andproposed actions, which in the case of a substantiated matter could
include verbal and written coaching, verbal and written warnings,
suspensions, or termination, which the Legal department reviews
before closing the matter. We report all matters on a quarterly basis
to the Ethics and Compliance Steering Committee, and the Audit
Committee of the board of directors. In addition, the chair of the
Audit Committee has full access to the ethics hotline. All allegationsof retaliation and whistleblower protection for reporting mattersor participating in an investigation are directed to, and addressedindependently by, the legal department.

In 2023, the number of reports received by our
ethics hotline was demonstrative of a healthy
and effective hotline according to the Navex
Global benchmark.

NO RETALIATION – WHISTLEBLOWER
PROTECTION POLICY

We encourage our employees to raise concerns about compliance,
ethics, or business conduct without fear of negative consequences.
Our Code of Conduct specifically prohibits retaliation against anyone
who reports a concern or participates in an investigation in good faith,even if the allegation ultimately is not substantiated. As stated in ourCode, such behavior violates company policy and is not tolerated
at Watts. Anyone, regardless of position or tenure, found to haveengaged in retaliatory conduct against someone who has raised abusiness or ethical conduct matter, or participated in an investigation,in good faith, will be subject to disciplinary action, up to and including
termination. The legal department receives and independently
addresses all allegations of retaliation and whistleblower protection forreporting matters or participating in an investigation.

Each year, we review the number of ethics hotline reports against anannual benchmarking report produced by Navex Global, a recognized
leader in risk and compliance management software and the
independent operator of our ethics hotline.

60

OVERSIGHT AND
ACCOUNTABILITY

Privacy and Cybersecurity
At Watts, we believe that protecting the security, integrity, andconfidentiality of our stakeholders’ data and privacy is critical tobuilding and maintaining their trust. In addition to protecting theconfidentiality and integrity of information, maintaining a robust
cybersecurity risk management program is also a foundational
component of our business continuity strategy.
Our Privacy Policy informs users — of our website, mobile and desktop
applications, and connected devices and services — about the data
we collect from them and how we use it. We strive to give users
choices that allow them to control the information they provide to us,
such as opting out of promotional emails, disabling cookies in theirinternet browser settings, and optional product registration. We also
take measures to protect consumer privacy by aggregating data andanonymizing personal information.

We designed our global cybersecurity risk management program inan effort to effectively prevent, detect, and respond to cybersecurity
threats, and preserve the security and integrity of our information
technology systems. Overseen by our information security officer,
who reports to our chief information officer, our cybersecurity programaligns with the National Institute of Standards and Technology (NIST)
Cybersecurity Framework, a voluntary framework of guidance andbest practices used widely across industries. We also partner withleading cybersecurity companies to assess and regularly test our
security controls, incorporating feedback into our strategy, policies,
and practices. We provide mandatory quarterly security training to all
employees to further protect Watts and its employees against evolving
cybersecurity risks.

The board of directors and Audit Committee
receive regular updates from management on
its approach to cybersecurity, as well as reports
from the chief information officer and information
security officer on our business and product security
programs, risk management and risk profile, andthe status of programs to strengthen the company’s
cybersecurity posture. As per its charter, the Audit
Committee has the responsibility for reviewing andoverseeing information security issues. It receives
updates from the chief information officer at least
twice per year. In addition, management updates
the Audit Committee regarding any material orsignificant cybersecurity incidents, as well as
incidents with lesser impact potential as necessary.
Our Cybersecurity Council, comprised of crossfunctional senior leaders, reviews and assesses
security risks and issues from a business andtechnology perspective across all organizations
within Watts.

Safety is Cool: Sparks, NV, USA celebrates 600 incident
free days

Watts • 2023 Sustainability Report61Responsible Supply Chain
2023 PERFORMANCE AT A GLANCE:• 66% of suppliers have confirmed conformance to
our Code of Business Conduct and Supplier ESG
Standards, representing 95% of our global direct spend• Performed quality audits for 1,075 suppliers, representing
22% of our global direct spend• 100 top suppliers engaged in robust ESG performance
surveys through EcoVadis• Participated in EcoVadis’ global ESG rating assessment
for the first time in late 2023 as a global organization• Diverse suppliers comprised 42% of our North
American spend
Our supply chain partners play an integral role in helping us deliver
value to our customers, providing critical materials and services
that support the production of finished goods throughout our global
operations. We are committed to a forward-looking approach inworking to prevent and mitigate social and environmental impacts
in our supply chain. We seek to partner with suppliers that share
our values and high standards for ethical business conduct and weincorporate supplier ESG performance as a factor in our purchasing
decisions. We have continued to lessen our dependence on solesources and prioritize sourcing locally, while maintaining ourcommitment to having one of the most reliable and sustainable supply
chains in the industry. As a supplier ourselves, we continue to work toincrease transparency into our own ESG performance and provide theinformation increasingly being sought by our customers aroundthe world.

With our standard procurement terms and conditions, we require
Watts suppliers to comply with our standards for business conduct,
product quality, and sustainability as outlined in our Supplier Quality
Manual (available in six languages), our Code of Business Conductand our Supplier ESG Standards. These requirements also include
compliance with all applicable international human rights standards,
as specified by local laws and regulations, and are integrated into
our standard procurement terms and conditions. Our suppliers arealso required under our standard procurement terms and conditions
to comply with our Anti-Corruption Policy, our Global Anti-Human
Trafficking Policy and our Conflict Minerals Policy and are expected torequire these same standards of their own suppliers.
In 2022, we began requiring our suppliers to acknowledge and certify
their conformance with our Code of Business Conduct and Supplier
ESG Standards. The standards align with the ten principles of the
U.N. Global Compact, the U.N. Guiding Principles on Business andHuman Rights, and the ILO’s 1998 Declaration on Fundamental
Principles and Rights at Work.

66%

At the end of 2023, 66% of our suppliers
representing 95% of our 2023 global spend
had confirmed their conformance, including
100% of new suppliers.

We strive to ensure that the business practices of our suppliers andsub-contractors:• Safeguard human life by providing safe working conditions for all
employees, customers, and contractors• Respect the protection of international human rights as specified
by local laws, including laws prohibiting discrimination, childlabor, forced labor, and human trafficking. This includes laws suchas the UK Modern Slavery Act, the California Transparency inSupply Chains Act of 2010, and alignment with our Supplier ESG
Standards and the international frameworks embodied in thosestandards, such as the ILO’s 1998 Declaration on Fundamental
Principles and Rights at Work.
• Promote ethical standards through compliance with anticorruption laws, and by identifying and addressing potential
conflicts of interest with customers and suppliers• Protect the environment by limiting the use of natural resourcesand engaging in sustainable business practices that minimize theenvironmental impact of their operations• Keep the supply chain intact by complying with all applicablenational, regional, state, and local laws and regulations governing
the environment, as well as health and safety, in the countries inwhich they operate

Our global sourcing leader, together with our sourcing andprocurement teams, is responsible for oversight of our responsible
supply chain program, and the selection of reputable and qualified
sources. Whenever possible, we work with local suppliers, meaningthat the buying entity and the supplier are located in thesame country.

*2023 metrics in the Responsible Supply Chain section do not include Bradley, Enware, or Josam data

Watts • 2023 Sustainability Report62

ENSURING QUALITY THROUGHOUT OUR
SUPPLY CHAIN

We continue to expand the coverage of our global Supplier Quality
Audit Program. In 2023, professionally trained and certified membersof our audit team performed quality audits at 1,075 suppliers,
representing 22% of our global supplier footprint.
We work with our suppliers on quality corrective action plans toremediate issues of non-compliance via a structured approachand re-audits to check on improvements. This includes training on
current requirements, self-assessment programs, non-compliancereporting, corrective action plans, and all available supplier resourceson our website. We track nonconformances through the corrective
action process in our quality management system. We also measuresuppliers for performance via monthly scorecards issued by Watts
and compared to similar operations within the same manufacturingmethods to align with best practices.

MONITORING AND IMPROVING SUSTAINABILITYPERFORMANCE
We are committed to driving greater transparency on ESG
performance throughout our supply chain. This includes helping our
suppliers track, report, and improve their ESG performance and giving
Watts customers the information they seek on our performance asa supplier. We leverage several third-party tools in this work and arecontinuously evaluating opportunities for further improvement.
In 2023, we expanded our participation as a global supplier on the
EcoVadis platform, allowing our customers to better assess oursustainability performance. EcoVadis reviewed our global policy
and performance in areas including environment, labor, and humanrights, ethics, and sustainable procurement. The review resulted in
the identification of areas where Watts exceeds standards as well as
opportunities for improvement. We will work to implement EcoVadis
recommendations for improvement throughout 2024 and beyond.

Watts • 2023 Sustainability Report

We also worked with EcoVadis to transition from our suppliersustainability audit program to EcoVadis scorecards that evaluate theESG performance of our suppliers. In October 2023, we targeted agroup of our top 100 suppliers to provide information on their ESG
policies and performance through the EcoVadis platform. As of March
31, 2024, approximately 70% of engaged suppliers had completed
performance surveys. This transition to the EcoVadis platform willallow us to expand and streamline supplier sustainability evaluations;in 2024 we will expand the pool of suppliers engaged on the platform
to 250. New suppliers will be engaged in the EcoVadis assessment as
part of their onboarding with Watts.
As we continue to learn about and evaluate the EcoVadis platform,
we will also continue to evaluate software partners and solutions
that will assist us in our journey to track Scope 3 carbon emissions
for our suppliers.
In addition to engagement on the EcoVadis platform, we continue toleverage the Dun & Bradstreet (D&B) ESG Rating Service in annual
reviews of supplier ESG performance, and in our scoring evaluations
for new business awards. The service is a web-based ratings platformthat assesses the ESG operations of suppliers across 70 key topics,
including through peer benchmarking and leading sustainability
frameworks such as Sustainability Accounting Standards Board(SASB), Global Reporting Initiative (GRI), United Nations’ Sustainable
Development Goals (UN SDGs), Task Force on Climate-related
Financial Disclosures (TCFD), and United Nations Principles for
Responsible Investment (UN PRI). In 2023, we reviewed the D&B
ratings records of over 90% of our suppliers, representing 85% of ourglobal spend.

63

ENHANCING OUR APPROACH ON
CONFLICT MINERALSThe most common raw materials found in our products are bronze,
brass, cast iron, stainless steel, steel, and plastic. Many of our
products also contain tin, tantalum, tungsten, and gold (3TG), which
are sometimes referred to as “conflict minerals.” At Watts, we arecommitted to ensuring compliance with our reporting and disclosure
obligations regarding conflict minerals in our products to the U.S.
Securities and Exchange Commission (SEC), as required under the
Dodd-Frank Act. We also comply with all applicable trade laws andregulations and expect the same from our suppliers. We require our
suppliers to comply with our Conflict Minerals Policy, which includes
disclosing the use of conflict minerals, exercising due diligence on
the source and chain of custody of these metals, and implementing
corrective action if we identify a reasonable risk of violation. We
partner with Assent Compliance, Inc., a leading global supply chain
compliance partner, to enhance our analysis of the scope of our 3TG
supply base and to deploy our 3TG supplier surveys. Through these
efforts we achieved a response rate of 72% from our 3TG suppliers to
our conflict minerals survey in 2023. These survey results are issued
yearly in our Conflict Minerals Report, available on the Supplier pageof our website.
In 2023, we continued to enhance our conflict minerals reporting
process by working with Assent to continually reassess our survey
base among our supply partners, along with ensuring that our recent
acquisitions have had their suppliers included in future report scoping.

SUPPLIER DIVERSITYDiversity within our supply chain contributes to its strength andresiliency. We are committed to increasing our spending with diverse
suppliers each year and continue to refine our process for tracking
and reporting this data. In 2023, we focused on expanding ourreporting capabilities for diverse, Tier 1 suppliers in North America,
partnering with the National Minority Supplier Development Council(NMSDC) and Women’s Business Enterprise National Council(WBENC) to ensure that all Watts suppliers certified by theseorganizations are reflected in our data.

42%

Over 42% of our North American spend in
2023 was with diverse suppliers, a nearly
11% increase over 2022.

Clear definitions and certifications available in the North American
market allow us to provide a more accurate reflection of our efforts
where they have the greatest impact. We will continue to develop
and expand this data globally, addressing the varying definitions,certifications, reporting methodologies, and legal requirements acrossthe countries where we operate.
Our strategic sourcing plan includes the continued development ofdiverse suppliers globally. All members of our procurement teams
have received training related to the inclusion of diversity as aconsideration among our key metrics, such as cost, quality, on-time
delivery, and safety. The strength of our One Watts Performance
System supports our ability to identify and develop well-qualified
suppliers, regardless of their background or diversity status.

PUBLIC POLICY & ADVOCACY
We are committed to engaging with policymakers
and sharing industry knowledge to advance our
mission of improving the comfort, safety, andquality of life for people around the world throughour expertise in water technologies. This includes
partnering with a variety of industry organizations
globally. For more details, please refer to ourMembership of Organizations list.
Our advocacy on water safety dates back to the
1930s when Watts was recognized as the national
leader in industry education. This advocacy has
continued throughout our company’s history. For
more details, please refer to Keeping Generationsof People and Water Safe.

POLITICAL CONTRIBUTIONS

Watts does not make contributions to politicalorganizations, causes, candidates, or campaigns.
As such, the company made no politicalcontributions in 2023. However, we encourage our
employees to become involved in civic affairs andto participate in political activities, provided they:• Do so on an individual basis, on their own
time, and at their own expense• Make clear that when speaking on public
issues, any comments or statements madeare their own and not of Watts• Never make a political contribution with theintent to influence the award or retention of
any Watts business or contract

Watts • 2023 Sustainability Report64About this Report
This Sustainability Report is the eigth annual publication of its kind for Watts Water Technologies, Inc. It highlights our commitment
to sustainability and provides information about the progress we are making to promote a sustainable and prosperous future throughresponsible business practices across environmental, social, and governance dimensions. The disclosures we provide in each section ofthis report underwent extensive internal quality checks and are factual to the best of our knowledge at the time of reporting. As is standardpractice at Watts, our 2023 Sustainability Report was formally reviewed by our:
• Global Leadership Team• Sustainability steering committee• Internal audit team
• General counsel and chief sustainability officer
The scope of our environmental reporting covers 39 facilities globally, including office buildings, manufacturing sites, distribution centers,
and warehouses. The facilities listed here are within our operational boundaries for environmental performance in 2023 and represent 93%
of our global workforce.
Additionally, we are proud to include a set of general disclosures with key data points and information in accordance with the 2021 Global
Reporting Initiative (GRI) Standards, as well as the Sustainability Accounting Standards Board (SASB). In many cases we have enhanced
existing disclosures and have also disclosed new information in this year’s report and Appendix.
Additional information about our ESG performance is available in our 2023 Annual Report, Form 10-K, 2024 Proxy Statement, and on
our company website. We welcome your feedback so we can continue to improve our ESG reporting and provide the most relevant
information to our stakeholders. Please direct any questions or comments to sustainability@wattswater.com.

Watts • 2023 Sustainability Report65Appendix
Table of Contents
67 GRI Index

89 SASB Index
91 SDG Index
92 CEO Water Mandate
93 EcoVadis Action Proxies
98 Keeping Generations of People and Water Safe
99 Stakeholder Engagement
100 Materiality Assessment
101 Material Topic Definitions
103 Membership of Organizations
106 Environmental Data
115 Social Data
119 Diversity Profile
123 Governance Data
125 Verification Statements

Watts • 2023 Sustainability Report66

GRI Index
Statement of use

Watts Water Technologies, Inc. has reported in accordance with the Global Reporting Initiative (GRI) Standards for the period January 1, 2023, to December 31, 2023.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)Not applicable

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 2: General Disclosures 2021
GRI 2-1

Organizational details

Watts Water Technologies, Inc. was incorporated in Delaware in 1985 and trades on the New York Stock Exchange (NYSE) under the stock symbol WTS. Watts is headquartered at 815
Chestnut Street, North Andover, MA 01845, USA. Watts operates in the Americas; Europe; and Asia-Pacific, Middle East, and Africa (APMEA).

GRI 2-2

Entities included in theorganization’s sustainability
reportingThe 2023 Sustainability Report covers Watts Water Technologies, Inc. and its consolidated subsidiaries. The scope of our environmental reporting covers 39 facilities globally, including
office buildings, manufacturing sites, distribution centers, and warehouses. The facilities listed here are within our operational boundaries for environmental performance in 2023 andrepresent 93% of our global workforce. Please see a full list of the sites included in the Footprint section.

GRI 2-3

Reporting period, frequency andcontact point

01.01.2023 - 12.31.2023
AnnualPublished: June 2024
Questions or comments should be directed to: sustainability@wattswater.com

GRI 2-4

Restatements of information

There are no restatements of information within the 2023 Sustainability Report with respect to our previous report.

GRI 2-5External assurance

Third-party external assurance is used to validate our environmental data beginning with 2020 data. Our sustainability team is involved in approving scope of verification.
Our external Verification Statements regarding environmental and safety data can be found in the Appendix.

GRI 2-6

Activities, value chain and otherbusiness relationships

Watts Water Technologies, Inc., through its family of companies, is a leading provider of solutions designed to promote safety, energy efficiency, and water conservation in thecommercial, industrial, and residential markets of the Americas, Europe, and APMEA.
For 150 years, Watts has designed and produced valve systems that safeguard and regulate water systems, energy-efficient heating and hydronic systems, drainage systems, and water
filtration technology that helps purify and conserve water.
Markets: Americas, Europe, and APMEA
Customers: Wholesalers, Specialty, Original Equipment Manufacturers (OEMs), and DIY ChainsWe report on our annual net sales for each of the three geographic segments in which we operate our business globally, as well as by product line, customers, and markets:
Total Net Sales: $2.06B USD
Americas: 69%
Europe: 25%
APMEA: 6%

Watts • 2023 Sustainability Report67

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
Our supply partners play an integral role in helping us deliver value to our customers, providing critical materials and services that support the production of finished goods throughout
our global operations. We commit to preventing and mitigating social and environmental impacts in our supply chain, as well as partnering with suppliers that share our values and highstandards of ethical business conduct.
In 2023, we continued to face a diverse range of supply chain challenges that disrupted both the production and flow of materials across our supply chain and logistic platforms. Overthe past two years, we continued to lessen our dependence on sole sources and prioritize sourcing locally while maintaining our commitment to having one of the most reliable andsustainable supply chains in the industry.
For more information, see the Corporate Profile and Responsible Supply Chain sections of the 2023 Sustainability Report, as well as Item 1 of our 2023 Form 10-K.

GRI 2-7

Employees

For information on employees, please see the Diversity Profile in the Appendix.
Methodologies and assumptions:• Head count was used and then separated out by part time or full time
• The data was compiled at the end of the reporting period, effective 12/31/2023. Starting with the 2023 data, we added another element to freeze the data and have a “data entry
date” added so the data doesn’t change (personal information data can be updated or retro transactions entered) if the reports are needed to be pulled again. In 2023, we used
3/16/24 as the data entry date and on 3/15/24 missing genders were uploaded.
There is no significant fluctuation in the number of employees during the reporting period and between reporting periods.

GRI 2-8

Workers who are not employees

Information is not available or incomplete: Certain information and data was unavailable or incomplete for inclusion in this report. We are continuously striving to enhance our datacollection processes and improve the availability and accuracy of information for future reporting cycles.

GRI 2-9

Governance structure andcomposition

Board of Directors:
Rebecca J. Boll
Michael J. Dubose
David A. Dunbar
Louise K. Goeser
Kenneth Napolitano
Joseph T. Noonan
Robert J. Pagano, Jr.
Merilee Raines
Joseph W. Reitmeier
Board of Directors Composition*:
Total Members: 9
Average Age: 60
Average Tenure: 7 years
Independent Directors: 7
Diverse Directors: 4/9 (three female, one African American/Black)
Directors With Experience in environmental, social, and governance (ESG) matters: 7/9
Committee Meeting Participation: Audit (5), Governance and Sustainability (4), Compensation (5)The Governance and Sustainability Committee has primary responsibility for the oversight of our ESG efforts and strategy. The Governance and Sustainability Committee reviews thecompany’s ESG performance and strategic plans at its regularly scheduled quarterly meetings and receives additional updates from our chief sustainability officer, as needed.
For more information regarding governance structure, roles, and composition of the board, see the Corporate Governance and ESG Governance sections of the 2023 Sustainability
Report. Also see pp. 13 – 16 of the 2023 Form 10-K, our 2024 Proxy Statement, and our Board of Directors page.
*The board of directors composition is current as of 5/22/2024.

Watts • 2023 Sustainability Report

68

GRI STANDARDSGRI 2-10

DISCLOSURE TITLE
Nomination and selection of thehighest governance body

WATTS RESPONSE
We believe that our board should be composed of directors who, as a group, have the experience, qualifications, attributes, and skills that are collectively required to make informed
board decisions and provide effective board oversight. The composite skills of the board members and the ability and willingness of individual board members to complement eachother and to rely on each other’s knowledge and expertise should produce informed board members who are not afraid to disagree, can intelligently assess management’s performance,and can evaluate our strategic direction. In considering whether to recommend any candidate for nomination to the board, including candidates recommended by stockholders, theGovernance and Sustainability Committee must be satisfied that the recommended nominee has, at a minimum:• The highest personal and professional integrity• Sound business and strategic judgment• The ability to devote sufficient time and energy to the board• The ability and willingness to challenge management while refraining from assuming management’s role
In addition, the nominee must not serve on more than two public company boards in addition to our board. The Governance and Sustainability Committee will consider for nomination
to the board candidates recommended by stockholders and may consider potential candidates suggested by current directors, company officers, employees, third-party search firms,
and others.
We include more information on our processes and skills considered for board members in the Director Independence, Director Candidates, and Criteria and Diversity sections on p. 15
and pp. 20 – 23 of the 2024 Proxy Statement.

GRI 2-11

Chair of the highest governancebody

In February 2022, our board determined that combining roles of the CEO and chairperson of the board is the most effective leadership structure for the board at this time andunanimously elected Robert J. Pagano, Jr. as chairperson. Robert J. Pagano, Jr. has been the CEO of the company since May 2014.
In conjunction with electing Mr. Pagano as chairperson of the board, the board established the role of lead independent director. The lead independent director’s responsibilities include
acting as a liaison between the independent directors and the chairperson and CEO, providing advice and guidance to the CEO, advising the CEO of the board’s information needs, andhelping to set the agenda items for board meetings.
For more information, please see p. 13 of the 2023 Form 10-K, our Board of Directors page, and the Board Leadership Structure section on p. 14 of our 2024 Proxy Statement.

GRI 2-12

Role of the highest governancebody in overseeing themanagement of impacts

Our board of directors continually works to improve the high ethical standards we promote and practice every day at Watts. Such approaches include periodic reviews of our corporate
policies and practices and leveraging guidance provided by the U.S. Securities and Exchange Commission (SEC) and NYSE. The board has adopted our Corporate Governance
Guidelines to assist and guide each of its members in serving in their director roles and carrying out the many responsibilities within their charge, including, but not limited to:• Monitoring overall company performance, as well as the integrity of our financial controls and legal compliance procedures• Appointing executive officers, as well as overseeing succession planning and our executive officers’ performance and compensation• Supervising the development of operating; financial; and other corporate plans, strategies, and objectives• Overseeing our approach to sustainability and corporate social responsibility• Reviewing and approving the company’s annual business plan, capital expenditures budget, and other key financial and business objectives• Overseeing processes and strategies for identifying; assessing; managing; and mitigating operational, financial, legal, regulatory, strategic, and reputational risk
• Evaluating the board’s own performance, as well as the effectiveness of its three standing governance committees, annually
Sustainable business practices and products are essential to creating financial and nonfinancial value for our stakeholders. We believe that embedding sustainability into our products,
operations, and governance benefits our company and its diverse external stakeholders, including customers, investors, and nongovernmental organizations (NGOs). We completed
a materiality assessment in September 2021 to inform our future strategy and action. This assessment helped us identify, evaluate, and stratify numerous ESG topics that impact ourbusiness and its stakeholders, including ESG-related risks and opportunities, as we execute on our growth strategy, as well as societal trends that may impact our ability to create longterm value and respond to external stakeholder demands and expectations.
Management and our internal audit team conduct annual risk assessments to evaluate risks at all Watts locations and operations globally. Our teams use the Enterprise Risk
Management (ERM) process and annual risk assessments to assess and enhance the program and identify areas of focus for audits and site visits.

Watts • 2023 Sustainability Report69

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
The Audit Committee, chaired by Director Merilee Raines, holds one regularly scheduled meeting each quarter and schedules additional meetings as often as necessary to perform its
duties and responsibilities, which include, but are not limited to:• Overseeing the integrity of financial statements• Evaluating compliance with legal and regulatory requirements• Managing systems of internal control over financial reporting• Overseeing the internal audit function• Evaluating and/or reviewing the performance of the internal audit function• Overseeing the effectiveness of the internal control structure• Reviewing management’s assessment and management of risk
• Managing the qualification, independence, and performance of the independent auditor• Evaluating management’s approach to cybersecurity assessment and risk mitigation• Forming ‘‘whistle-blowing’’ procedures
For more information, see the Governance and Accountability, Stakeholder Engagement, and Materiality Topics sections of the 2023 Sustainability Report, as well as the Corporate
Governance section on pp. 10 – 24 of the 2024 Proxy Statement.

GRI 2-13

Delegation of responsibility for
managing impacts

Our board, primarily through its Governance and Sustainability Committee, provides oversight of the company’s approach to sustainability and corporate social responsibility. In addition,
our Compensation Committee oversees the company’s approach to diversity, equity, and inclusion (DEI), as well as talent development. The board and its committees regularly discusswith management our approach to sustainability, including risks and opportunities and implications for the company’s strategy.
Our board of directors has overall authority and responsibility for our sustainability efforts. In addition to general board oversight, our Governance and Sustainability Committee isprimarily responsible for oversight of governance matters; the Compensation Committee is responsible for oversight of human capital issues; and the Audit Committee is responsible foroversight of our corporate ethics and compliance program.
The Governance and Sustainability Committee has primary responsibility for the oversight of our ESG efforts and strategy.
The Governance and Sustainability Committee reviews the company’s ESG performance and strategic plans four times a year at its regularly scheduled quarterly meetings and receives
additional updates from the company’s chief sustainability officer, as needed. At the management level, our general counsel and chief sustainability officer, who reports directly to ourCEO, has general oversight responsibility for all sustainability matters. Our general counsel and chief sustainability officer also chairs our global Sustainability Steering Committee, which
is made up of senior company leaders and is responsible for formulating our sustainability strategy and overseeing the execution of our ESG initiatives.
For more information, see the ESG Governance section of the 2023 Sustainability Report and the Corporate Governance section on pp. 10 – 23 of our 2024 Proxy Statement.

GRI 2-14

Role of the highest governancebody in sustainability reporting

The board is not responsible for reviewing and approving our annual sustainability reports. The Global Leadership Team, including the CEO and the CEO’s direct reports, is the highest
governance body that reviews and approves the report prior to publication. The board is provided with a copy of the report once it is published.

GRI 2-15

Conflicts of interest

Our Conflicts of Interest Policy is publicly available on our website. We also require select management and functional areas, including all employees at the director level and above, tocomplete an annual Conflict of Interest certification and disclosure, stating they have read, understand, and will comply with our Conflict of Interest Policy. Our board has also adopted
a written Related Persons Transaction Policy, which requires a review of transactions with related persons. This policy covers, but is not limited to, the related party transactions andrelationships required to be disclosed under SEC rules.
Watts employees and business partners should avoid any situation that may involve or be perceived as a conflict between personal, social, financial, or political interests and theinterests of the company.
For more information, see the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report and pp. 23 – 24 of the 2024 Proxy Statement.

Watts • 2023 Sustainability Report70

GRI STANDARDSGRI 2-16

DISCLOSURE TITLE
Communication of criticalconcerns

WATTS RESPONSE
Our board welcomes the submission of any comments or concerns from stockholders and any interested parties. Communications should be in writing and addressed to our corporate
secretary at our principal executive offices and marked to the attention of the board or any of its committees, the lead independent director, individual directors, or nonmanagement or
independent directors as a group. All relevant and appropriate correspondence will be forwarded to the intended recipient(s).
Please see the Communications With the Board section on p. 16 of the 2024 Proxy Statement.

GRI 2-17

Collective knowledge of thehighest governance body

For information on the expertise present in our board of directors, please see p. 22 of the 2024 Proxy Statement.

GRI 2-18

Evaluation of the performance ofthe highest governance body

Our board of directors evaluates the board’s own performance, as well as the effectiveness of its three standing governance committees, annually. For more information, see p. 14 and
19 of the 2024 Proxy Statement and our Corporate Governance Guidelines.

GRI 2-19

Remuneration policies

Executive officer compensation information is available in the Compensation Discussion and Analysis section on pp. 30 – 44, and board compensation information is available in the
Director Compensation section on pp. 8 – 10 of the 2024 Proxy Statement.

GRI 2-20

Process to determine
remuneration

Executive officer compensation information is available in the Compensation Discussion and Analysis section on pp. 30 – 44, and board compensation information is available in the
Director Compensation section on pp. 8 – 10 of the 2024 Proxy Statement. The company conducts annual shareholder advisory votes on named executive officer compensation, as
described in Proposal 2, pp. 60 – 61, of the 2024 Proxy Statement.
At our 2023 annual meeting, the annual advisory vote on named executive officer compensation was approved by more than 98% of shareholder votes. See results of the voting on the
proposals considered at the 2023 annual meeting reported on Current Report on Form 8-K filed May 19, 2023.

GRI 2-21

Annual total compensation ratio

The median of the annual total compensation of all employees of the company (other than our CEO) was $48,675, and the annual total compensation of our CEO was $7,537,395.
Based on this information, for 2023, the ratio of the annual total compensation of our CEO to the median of the annual total compensation of all employees was approximately 155 to 1.
CEO pay increased 6.5% from 2022 to 2023, while the median employee compensation increased by 1.2% in the same period. This reflects a ratio of 5.42 to 1 in yearly increase incompensation for the CEO versus all employees.
For more information, please see the Pay Ratio Disclosure section on p. 59 of the 2024 Proxy Statement.

GRI 2-22

Statement on sustainable
development strategy

See A Message From Our Chief Executive Officer in the 2023 Sustainability Report.

GRI 2-23

Policy commitments

We believe that good corporate governance and an environment of high ethical standards are important for us to achieve business success and to create value for our stockholders. Ourboard is committed to high governance standards and continually works to improve them. We periodically review our corporate governance policies and practices and compare themto those suggested by various authorities on corporate governance and employed by other public companies and consider changes to our corporate governance policies and practices
in light of such guidance and interpretations. We have adopted a Code of Business Conduct applicable to all officers, employees, and board members worldwide that serves as thefoundation for our ethics and compliance program and drives policy development, training initiatives, and reinforcement of our values throughout the global organization.
In 2022, we implemented a formal Human Rights Policy stating our commitment to identifying, preventing, and addressing actual or potential human rights issues within our scope ofcontrol and influence, including through its support of and adherence to the United Nations (UN) Global Compact and the Universal Declaration of Human Rights. Our Human Rights
Policy applies to all its subsidiaries and supply chain partners. The Code of Conduct is approved by our board, while other policies buttressing our Code, including the Human Rights
Policy, are approved by executive and senior management. We provide annual training on the Code of Conduct and provide additional ethics and compliance training, both online andin person, throughout the year using a targeted approach that identifies positions, functions, and regions with a higher risk of potential incidents and in response to global trends anddevelopments and our own hotline data.
Our policies include our California Transparency in Supply Chains Act and UK Modern Slavery Disclosure; Human Rights Policy; Conflict Minerals Policy; Environment, Health, Safety,& Sustainability Policy Statement; Conflict of Interest Policy; Anti-Corruption Policy; Anti-Human Trafficking Policy; Embargoed and Denied Parties; Supplier Quality Manual; and Due
Diligence.

Watts • 2023 Sustainability Report71

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
Please see more information on how these policies are communicated to employees, business, and other parties in the Ethics, Integrity, and Transparency and Responsible Supply Chain
sections of the 2023 Sustainability Report.

GRI 2-24

Embedding policy commitments

Our board of director’s Governance and Sustainability Committee provides oversight of the company’s approach to sustainability. The integration of specific ESG policy commitments
into our strategies and operational procedures is overseen by various cross-functional teams.
For more on our specific policies, please see our policies disclosure on GRI 2-23 and the GRI 3-3 management approaches of the GRI Topic Standards in the Appendix and theEnvironmental, Health, and Safety Management; Water Stewardship; Diversity, Equity, and Inclusion; Ethics, Integrity, and Transparency; and Responsible Supply Chain sections of the2023 Sustainability Report. More information can be found on pp. 11 of the 2023 Form 10-K.

GRI 2-25

Processes to remediate negative
impacts

Please see pp. 59 – 61 in the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report.

GRI 2-26

Mechanisms for seeking advice
and raising concerns

Please see pp. 59 – 61 in the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report.

GRI 2-27

Compliance with laws andregulations

In 2023, Watts had no significant non-compliance with laws and regulations. Please see Item 1 “Business Product Liability, Environmental and Other Litigation Matters” and note 16 of
the consolidated financial statements in our 2023 Form 10-K, filed February 21, 2024, for information regarding certain legal and regulatory proceedings in which we are involved.

GRI 2-28

Membership associations

To advance its mission, Watts partners with a variety of industry organizations and associations around the world, participating in several as a member, on committees, and/or providing
additional funding beyond traditional membership dues.
Since 2021, our CEO Robert J. Pagano, Jr. has been a member of the board of directors of The Water Council, a global hub dedicated to solving critical water challenges by driving
innovation in freshwater technology and advancing water stewardship.
See our full list of Membership of Organizations in the Appendix.

GRI 2-29

Approach to stakeholder
engagement

A diverse range of global stakeholders plays an integral role in the growth and success of our business today, as well as our commitment to create sustainable, long-term value in the
future. To that end, we regularly engage and interact with key stakeholder groups, which align with our sustainability effort, in a variety of ways.
For more information on our stakeholder engagement approach and activities, please see the Stakeholder Engagement section of the Appendix.

GRI 2-30

Collective bargaining
agreementsCollective Bargaining
Our commitment to protecting human rights also applies to freedom of association and collective bargaining. We believe such activities facilitate dialogue and play an invaluable rolein building trust, inclusivity, and transparency in the workplace. In compliance with International Labour Organization (ILO) standards, it is our policy to ensure our employees have theright to form or join associations of their own choice concerning the relationship between the employer and the employees and to bargain collectively. We do not issue disciplinary or
discriminatory actions against employees who choose to peacefully and lawfully organize or join an association. Employees are prohibited from using intimidation tactics of any kind to
obstruct other employees’ right to freely associate and/or right to organize or not.
Communication of Rights
At the local level and where applicable, we work to ensure our employees are aware of and understand their collective bargaining rights. These rights may be communicated to
employees in different ways based on local labor laws, regulations, and/or practices. Employees at Watts may receive information about their collective bargaining rights:  • During the onboarding process• Via internal company channels (e.g., company policies, rules and regulations, information boards, etc.)• Directly from their trade union or work council representative

Watts • 2023 Sustainability Report72

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
Grievance Procedures
Where applicable, grievance procedures for collective bargaining rights may be provided to employees via any of the methods stated above. While individual grievance cases may be
handled differently based on local labor laws, regulations, and/or practices, they are usually resolved within a few days. Employees receive updates on their individual grievance cases
from the trade union or works council representing them. Resolved cases are routed to the appropriate management team at Watts. Cases requiring further escalation are reported to ourGlobal Leadership Team.
In 2023, Watts had approximately 1,614 employees worldwide who were represented by unions, collective bargaining agreements, or works councils. That is approximately 36% of our
total workforce. Working conditions and terms of employment for those not covered by collective bargaining agreements are directed by local laws.

GRI 3: Material Topics 2021
GRI 3-1

Process to determine material
topicsTo address the principle of materiality, Watts undertook a process of identifying its key material topics that have the greatest financial, environmental, and social impact on its business,
as well as those topics regarded as highly important by its key internal and external stakeholder groups. To identify our key focus areas, Watts has selected and prioritized material topics
using a materiality matrix. Through communication and engagement with all our key stakeholder groups, we have identified the material topics that are of highest relevance to them. In
parallel, the material topics identified by other organizations have been taken into account through a benchmarking study focusing on sustainability reporting of peer companies in the
Industrial and Building Water Product Manufacturing sector that use the principle of materiality to identify their priority topics. Upon completion of the above exercise, topics considered
as material for Watts were included in our annual sustainability report.
See more information in the Materiality Assessment section of the Appendix and 2023 updates on material topics in the Material Topics section of the 2023 Sustainability Report.

GRI 3-2

List of material topics

See the Material Topic Definitions section of the Appendix.
There were no changes in our list of material topics compared to the previous reporting period.

GRI 205: Anti-corruption 2016
GRI 3-3Management of material topics

Our global compliance program is managed and administered by the global compliance team at Watts and supported by our board of directors and Global Leadership Team. Led by ourchief commercial officer with support from designated compliance professionals from around the world, the program promotes ethical practices and compliance. To mitigate international
and any industry-specific risks, we employ multiple tools to drive ethics and compliance through our global compliance organization, including our Code of Business Conduct andthe following compliance procedures: compliance training on the Code of Business Conduct and anti-corruption; third-party due diligence reviews and denied-party monitoring; risk
assessments; gifts and entertainment, business courtesy, and anti-corruption policies, specifically prohibiting facilitation payments; and hotline and issue escalation.
We also conduct routine audits of various policies and programs that compose our global compliance program, including:• A biannual due diligence review• A quarterly business courtesies review• Ethics hotline viability and availability• Compliance-focused site visits utilizing detailed checklists designated specifically for a compliance policy and process review, sampling, and training
Employees are encouraged to report any violations to the legal department or through our hotline so that they can be investigated and properly resolved. Management, including thecompliance function and our internal audit team, conduct annual risk assessments to evaluate corruption and bribery-related risks.
Before entering into new business relationships with third parties acting on our behalf, we conduct risk-based due diligence utilizing a multifactor questionnaire, anti-corruption law
notification, and certification of compliance with such laws, as well as a continuous international-denied-parties search review. Based on questionnaire responses — in addition toautomated risk ranking through our third-party due diligence tool (utilizing, among other factors, the Transparency International Corruption Perception Index) — we determine whether tofurther supplement the review with risk-based, open-source investigations. The compliance team in each region then determines whether to approve going forward with the relationshipor recommend further review and approval.

Watts • 2023 Sustainability Report73

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSEManagement, including the compliance function and our internal audit team, conduct annual risk assessments to evaluate corruption and bribery-related risks. Utilizing multiple factors,
risks, and business developments, these assessments determine areas of focus for audits and site visits, during which select compliance processes are reviewed for evidence of fraud,corruption, or deficiencies such as compliance with the U.S. Foreign Corrupt Practices Act; U.K. Bribery Act; and other anti-bribery laws, rules, and regulations — even if it is contrary to
local customs and practices.
For more information, see the Anti-Corruption Policies and the Ethics, Integrity, and Transparency sections of the 2023 Sustainability Report. Please also see the Stakeholder
Engagement section of the Appendix.

GRI 205-1
GRI 205-2

Operations assessed for risks
related to corruption

Audits of all entities are performed related to third-party intermediaries and due diligence. No significant risks related to corruption were identified through the audits.

Communication and training
about anti-corruption policies
and procedures

To promote awareness and understanding of our Code — published in 15 languages — and the importance of operating ethically, we provide annual Code training, and our global
compliance team regularly authors informative articles and distributes information through internal communications channels to promote awareness of the Code and timely
related topics.

For more information, please see the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report.

For more information, please see the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report and the Communication and Training on Anti-Corruption Chart in the
Appendix.
GRI 205-3

Confirmed incidents ofcorruption and actions taken

No incidents of corruption were confirmed at Watts in 2023, nor were any legal actions regarding corruption brought against the company.
For more information, please see the Anti-Corruption Policies section of the 2023 Sustainability Report.

GRI 206: Anti-competitive Behavior 2016
GRI 3-3Management of material topics

We are committed to acting with integrity in every facet of our operations and strive to meet — and often exceed — applicable laws, regulations, and standards. We require all
Watts directors, officers, and employees (including part-time employees and contractors) throughout all regions, which includes all subsidiaries globally, to adhere to our Code ofBusiness Conduct.
For more information on our global compliance program, please see the Ethics, Integrity, and Transparency section of the 2023 Sustainability Report.

GRI 206-1

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

No legal actions regarding anti-competitive behavior or corruption were brought against the company in 2023.

GRI 301: Materials 2016
GRI 3-3Management of material topics

The most common raw materials found in our products are bronze, brass, cast iron, stainless steel, steel, and plastic. Many of our products also contain tin, tantalum, tungsten, andgold (3TG), which are sometimes referred to as “conflict minerals.” At Watts, we are committed to ensuring compliance with our reporting and disclosure obligations regarding conflictminerals in our products to the SEC, as required under the Dodd-Frank Act. We also comply with all applicable trade laws and regulations and expect the same from our suppliers.
We require our suppliers to comply with our Conflict Minerals Policy, which includes disclosing the use of conflict minerals, exercising due diligence on the source and chain of custodyof these metals, and implementing corrective action if we identify a reasonable risk of violation. Since 2021, we have partnered with Assent Compliance, Inc., a global leading supply
chain compliance partner, to enhance our analysis of the scope of our 3TG supply base and to deploy our 3TG supplier surveys. For more information on our management of this topic,
please see the Conflict Minerals section of the 2023 Sustainability Report.
We also know that adopting circular approaches to materials management in our production processes is critical, so we are identifying opportunities and investing in solutions toaccelerate our transition to the circular economy and finding ways to divert waste from landfills. Senior management oversees the sourcing of materials and their impacts on theenvironment. We have a history of designing our products for long life to ensure we are getting the most out of the raw materials that we are using and so our customers do not haveto replace or dispose of products before necessary. For more information on our efforts to quantify and extend product life, please see the Sustainable Innovation and Sustainable
Packaging sections of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report74

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 301-1

Materials used by weight orvolumeInformation is not available or incomplete: Some sustainability data is currently unavailable or incomplete for inclusion in this report.

GRI 301-2

Recycled input materials used

We work to make our products out of recyclable materials to ensure that when they do reach their end of life, the materials get a useful second life. We also try to incorporate recycledcontent into our products to help drive demand for recycled materials, which boosts the recycling infrastructure. Our BLÜCHER products, manufactured in Denmark, contain steel thatconsists of 65% – 85% recycled steel.
For more information, see the Sustainable Innovation section of the 2023 Sustainability Report.

GRI 301-3

Reclaimed products and theirpackaging materials

In 2023, more than 90% of all packaging boxes shipped to customers in the Americas were made with a high percentage of post-consumer recycled (PCR) content and crates from lowgrade nonconsumer wood.
For more information, please see the Sustainable Packaging section of the 2023 Sustainability Report.

GRI 302: Energy 2016				
GRI 3-3Management of material topics

We are dedicated to minimizing our environmental impact by continually improving our manufacturing and business operations. This commitment is demonstrated through our adherence
to all relevant laws, regulations, and standards concerning energy efficiency, emissions, and energy usage. We regularly collaborate with our facilities and personnel to enhance datacollection, monitor key performance metrics, and implement projects aimed at achieving our eco-efficiency reduction objectives.
Our goals are consistently monitored through our environmental management system, monthly internal reports, and other avenues. Environmental indicators such as absoluteconsumption and emissions play a crucial role in tracking our progress. To effectively work toward our goals, we undertake initiatives such as LED replacement, equipment and facility
upgrades, energy audits, and more.
Lessons learned are prominently featured in our best practice sharing across sites, including key areas to focus on during “energy hunts,” insights gained from submetering to better
understand usage and trends, and more. These best practices are shared during monthly reports, through internal articles, and through monthly site meetings.
For further details, please refer to the Energy and Emissions section of the 2023 Sustainability Report and our Environment, Health, Safety, and Sustainability Policy.

GRI 302-1

Energy consumption within theorganization

Totaly Energy Consumption (MWh): 111,714
Our strategy includes a systematic invoice collection and processing system within our environmental management framework, adhering to the Greenhouse Gas (GHG) Protocol for
consistency and comparability. We utilize specific emission factors from the Environmental Management Authority (EMA) for each energy source to ensure accuracy in our calculations.
Subsequent analysis of the data is then completed to identify trends, areas of inefficiency, and opportunities for improvement, enabling informed decision-making to optimize energy use
and reduce emissions effectively. Please note that cooling and steam are not purchased.
For additional information, please refer to the Energy and Emissions section of the 2023 Sustainability Report and the Environmental Data section of the Appendix for more detailed dataand historical environmental data.

GRI 302-2

Energy consumption outside of
the organization

Watts • 2023 Sustainability Report

Information is not available or incomplete: Some sustainability data is currently unavailable, incomplete, or out of scope for inclusion in this report.

75

GRI STANDARDSGRI 302-3

DISCLOSURE TITLE
Energy intensity

WATTS RESPONSE
Energy Intensity Ratio: 54.16 MWh/$1M
Ratio Denominator: $2,022.9 billion
Energy Types Included:• Electricity (kWh)• Renewable Energy Credits (RECs)• Natural Gas (m3)
• Propane (Liter)• Diesel (Liter)• Gasoline – Fleet (Liter)• Acetylene (M3)
• Propylene (Liter)
For additional information, please refer to the Energy and Emissions section of the 2023 Sustainability Report and the 2023 Annual Report. Please see the Environmental Data section of
the Appendix for historical environmental data.

GRI 302-4

Reduction of energy
consumption

In 2023, our energy consumption decreased by 11,352 MWh despite the addition of Enware Australia due to reduced consumption across all fuel categories through regular monitoringand implementation of energy best practices across sites globally.
Our strategy includes a systematic invoice collection and processing system within our environmental management framework, adhering to the GHG Protocol for consistency andcomparability. We utilize specific emission factors from the EMA for each energy source to ensure accuracy in our calculations. Subsequent analysis of the data is then completed to
identify trends, areas of inefficiency, and opportunities for improvement, enabling informed decision-making to optimize energy use and reduce emissions effectively. Our sites have
implemented various measures to reduce energy consumption and emissions. Initiatives to reduce energy include purchasing carbon offsets, improving processes to reduce natural gas
usage, conducting energy hunts, participating in our air leak reduction program, and engaging in external activities such as joining the Green Power Association and undergoing external
audits. Our basis for calculating reductions in energy consumption started by establishing a baseline in 2018. Subsequently, we compare energy consumption levels using data from ourenvironmental management system that allows us to analyze our increase or decrease in overall energy.
For additional information, please refer to the Energy and Emissions section of the 2023 Sustainability Report.

GRI 302-5

Reductions in energy
requirements of products andservices

Several of our products are designed to reduce energy utilization such as our commercial boilers and water heaters, as well as our thermostats. One good expample is our Thermostatic
Mixing Valves (TMV), which help reduce energy utilization by holding heat between 2 degrees of variance.
Customers can calculate their anticipated energy savings when using our products by using the calculator on our website. The calculator is based on the heat source, temperature
settings, TMV system, and setback settings.

GRI 303: Water and Effluents 2018
GRI 3-3Management of material topics

We believe access to clean, safe, and affordable water is a fundamental human right. Water and climate are intricately linked, and an imminent global water crisis threatens the availability,
quality, and quantity of water for basic human needs. We are committed to being part of the solution — by reducing the amount of water we use and discharge to manufacture our
products, ensuring our business practices protect the water quality and supply in the communities where we operate, and developing effective and innovative products and services thatsolve long-standing water conservation challenges.
For more information on our strategy, goals, initiatives, and progress, see the Water Stewardship section of the 2023 Sustainability Report.

GRI 303-1

Interactions with water as ashared resource

Watts • 2023 Sustainability Report

Water-related impacts are identified through our ongoing monitoring of water usage across all our sites. We utilize leak detection devices, utility water monitoring programs, and ourinternal evironmental management system to measure our water consumption and impact. Any identified isssues such as leaks or poor water quality are addressed before they escalate,thereby conserving this vital resource. Additionally, our organization takes proactive measures to ensure that all water discharge meets the standards set for our sewer system, thus
mitigating any adverse effects associated with water discharge. Our water reduction goals are established by our Governance and Sustainability Committee, in collaboration with ourmanufacturing sites. These goals are determined by analyzing the water consumption achievements and setting targets for a 3% year-over-year reduction. Additionally, our water quality
goals are aligned with guidelines provided by the EMA to ensure compliance with industry standards and best practices.

76

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
For more information on goals and yearly progress, see the Water Stewardship section of the 2023 Sustainability Report and the Environmental Data section of the Appendix for historicalenvironmental data.

GRI 303-2

Management of water dischargerelated impacts

Our water stewardship guiding principles include the acknowledgment of water as a local and shared resource — as well as the numerous impacts of the amount of water withdrawn
and consumed and the quality of discharges from our manufacturing operations on the functioning of local ecosystems. We’re ensuring that all Watts facilities meet national and local
requirements for the return of clean and safe wastewater back into public water sources. We also understand that we have a role to play as stewards by reducing the amount of water
we use and discharge to manufacture our products, ensuring our business practices protect the water quality and supply in the communities where we operate, and developing effective
and innovative products and services that solve long-standing water conservation challenges.
For more information, please see the Water Stewardship section of the 2023 Sustainability Report.

GRI 303-3

Water withdrawal

Total Water Withdrawal (All Areas): 108,280,338 liters
Total Water Withdrawal (Water-Stressed Areas): 40.67 megaliters (Burlington, Dubai, Enware – Sydney, Monastir, Ningbo, Nogales, Plovdiv, Shanghai, Sparks, Spindale, Wingene)
Our 2023 environmental data boundary consists of 39 sites, including Enware and excluding Bradley and Josam.
For more information, please see the Water Stewardship section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

GRI 303-4

Water discharge

Water Discharge: 108,280,338 liters
Please see the Environmental Data section of the Appendix for historical environmental data.

GRI 303-5

Water consumption

Total Water Consumption (All Areas): 108.28 megaliters
Total Water Consumption (Water-Stressed Areas): 40.67 megaliters (Burlington, Dubai, Enware – Sydney, Monastir, Ningbo, Nogales, Plovdiv, Shanghai, Sparks, Spindale, Wingene)
Our strategy for managing water consumption revolves around a systematic invoice collection and processing system integrated within our environmental management framework. Thissystem serves as our primary source of water consumption data. Additionally, we utilize water meters to gather real-time data on our water usage. We then conduct a thorough analysisof this data to identify trends, pinpoint areas of inefficiency, and uncover opportunities for improvement.
For more information, please the Water Stewardship section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

GRI 305: Emissions 2016
GRI 3-3Management of material topics

We have committed to reducing our GHG emissions intensity by 3% annually against a 2018 baseline. We routinely engage with facilities and other personnel to enhance data collection,
track key performance metrics, and identify and implement projects to meet our reduction goals. Our energy policy is rooted in UN frameworks and climate science. Lessons learned
are prominently featured in our best practice sharing across sites, including key areas to focus on during energy hunts, insights gained from submetering to better understand usage
and trends, and more. These best practices are shared during monthly reports, through internal articles, and through monthly site meetings. Through ongoing dialogue and collaboration
with stakeholders, we have gained valuable insights into their concerns, priorities, and expectations. This engagement has helped us identify specific areas where action was needed,
allowing us to tailor our strategies and initiatives to address these concerns effectively. By actively listening to stakeholder feedback, we have been able to prioritize actions that alignwith their needs and aspirations, ensuring that our efforts are both relevant and impactful.
For additional information, please refer to the Energy and Emissions section of the 2023 Sustainability Report.

GRI 305-1

Direct (Scope 1) GHG emissions

Total Scope 1: 9,760 metric tons CO2e
N. America: 6,917
Europe: 2,830
APMEA: 12
Gases included in the calculation: Natural gas, diesel, propane, acetylene, and propylene. Gasoline, propane, and diesel were also included for mobile Scope 1 emissions.
Watts uses an operational control approach. Our 2023 environmental data boundary consists of 39 sites, including Enware and excluding Bradley and Josam. For more information,please see the Energy and Emissions section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

Watts • 2023 Sustainability Report77

GRI STANDARDSGRI 305-2

DISCLOSURE TITLE
Energy indirect (Scope 2) GHG
emissions

WATTS RESPONSE
Scope 2 (Location-Based): 15,836 metric tons CO2e
N. America: 10,589
Europe: 3,684.34
APMEA: 1,562.52
Scope 2 (Market-Based): 8,124 metric tons CO2e
N. America: 10,114.89
Europe: 3,684.34
APMEA: 1,554.77
Recs: - 7,230
Gases Included in the Calculation: CO2, N20, CH4
Watts uses an operational control approach. Our 2023 environmental data boundary consists of 39 sites, including Enware and excluding Bradley and Josam. For more information,please see the Energy and Emissions section of the 2023 Sustainability Report and the Environmental Data section and Verification Statements in the Appendix.

GRI 305-3

Other indirect (Scope 3) GHG
emissions

Scope 3 business travel emissions (air and rail for the European Union [EU] and Americas): 3,642 metric tons of CO2. Complete Scope 3 data is currently unavailable or incomplete
for inclusion in this report. For more information, please see the Energy and Emissions section of the 2023 Sustainability Report. Currently, we only disclose business travel-related
emissions for the Americas and Europe regions under Scope 3. For available Scope 3 data, see the Environmental Data section of the Appendix.

GRI 305-4

GHG emissions intensity

GHG Emissions Intensity Ratio: 9.02 MTCO2e/$M
Ratio Denominator: 2022.9 billion
GHG Emissions Included in Ratio: Scope 1 and Scope 2 market-based
Gases Included: CO2, N20, CH4
For more information, please see the Energy and Emissions section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

GRI 305-5

Reduction of GHG emissions

In 2023, we saw a decrease in GHG emissions by 1,003 MTCO2e compared to 2022 because of air leak detection, continued monitoring, controls, and implementation of energy
reduction best practices, as well as the continued purchase of renewable energy certificates (RECs) to offset market-based emissions at seven U.S. sites.
For more information, please see the Energy and Emissions section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

GRI 305-6

Emissions of ozone-depleting
substances (ODS)

Not applicable: Watts does not generate ozone-depleting substances (ODS).

GRI 305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

Please review our U.S. Environmental Protection Agency (EPA) TRI VOC disclosure for metric on significant air emissions in the Environmental Data section of the Appendix.

GRI 3-3Management of material topics

At Watts, we recognize the need to protect our land, waterways, and the community by reducing the amount of waste generated by our manufacturing and business operations. We
recognize the environmental and economic benefits of a circular approach to materials management in our production processes and identifying opportunities to delineate, recycle, andreduce our waste footprint. Since 2014, Watts sites have been tracking their waste streams on an annual basis. Upon selecting 2018 as the baseline year for hazardous waste intensity
reduction targets, we significantly advanced our data collection process by implementing automatic bill collection. A deeper understanding of our waste generation and more frequentcollaboration at the site level has generated substantial interest and engagement among colleagues throughout our operations. Employee-driven waste initiatives focus on wastedelineation, rezoning, and waste stream elimination, thereby reducing our overall waste outputs and increasing recycling and reuse.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report78

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 306: Waste 2020
GRI 306-1

Waste generation and significant
waste-related impacts

In 2023, we continued to track solid waste, scrap metal, and other recycling streams, working closely with our facilities and waste contractors to understand the source and managementof our waste and to standardize data collection across sites. This work required significant collaboration across our global operations; our corporate sustainability team partnered withsite teams to identify opportunities for improvement through process changes.
A deeper understanding of our waste generation and more frequent collaboration at the site level has generated substantial interest and engagement among colleagues throughout ouroperations. Employee-driven waste reduction initiatives focus on waste delineation, rezoning, and waste stream elimination, thereby reducing our overall waste outputs and increasing
recycling and reuse. We continue to replace single-use paper and plastic items with reusable items and install direct-line water refill stations to avoid disposing of plastic water bottles.
Tracking all forms of waste, reducing the overall quantity generated, and diverting from landfills using circular models is a complex challenge. To accelerate our efforts, we previously
committed to reducing our hazardous waste intensity by 3% annually against a 2018 baseline. By the end of 2023, we had reduced our hazardous waste intensity by 35%. Our annual
intensity reduction in 2023, compared to 2022, was 24%.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report.

GRI 306-2

Management of significant
waste-related impacts

Our organization is committed to minimizing waste generation and mitigating significant waste related impacts by optimizing our production processes, extending the life cycle of ourequipment, employing commonly used additives like coolants, reusing regularly utilized items such as oily rags and uniforms, and effectively managing and evaluating waste invoicesfrom third-party haulers. Hazardous and non-hazardous industrial waste are tracked through invoices, site records, and vendor manifests that are compiled and validated annually.
Watts contracts with properly licensed waste vendors and transporters for management of waste.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report.

GRI 306-3

Waste generated

Watts discloses and has data verified for its yearly total waste generated and other environmental data via invoices, site records, vendor manifests, and compliance reporting. In 2023,
the amount of hazardous waste generated was 1,736,761 kg, and 3,255,192 kg of non-hazardous waste generation was reported across Watts global.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report and the Environmental Data and Verification Statements sections of the Appendix.

GRI 306-4

Waste diverted from disposal

Watts has a growing recycling program at our manufacturing facilities. Our diverted waste stream includes metal recycling, plastic regrind, and global electronics waste. See below for
our total recycling and reuse in 2023:
Metal Scrap: 4,965,279 kg
Plastic Regrind: 16,800 kg
Electronic Waste: 12,146 kg
Plastic Waste Recycling: 205,295 kg*We began tracking electronic waste data in 2020, and our first full-year baseline data developed is for the year 2021.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report and the Environmental Data section of the Appendix.

GRI 306-5

Waste directed to disposal

Total Weight of Waste Directed to Disposal: 6,137 MT
Total Weight of Waste Diverted From Disposal: 6,240 MT (does not include recycling, metals, and hazardous and non-hazardous waste streams)
Total Weight of Hazardous Waste Directed to Disposal: 1,736.76 MT
Total Weight of Non-hazardous Waste Directed to Disposal: 3,255.192 MT
For more informaton on how hazardous and non-hazardous wastes are further treated, please see the Environmental Data section of the Appendix.
For more information, please see the Waste Reduction section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report79

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 308: Supplier Environmental Assessment 2016
GRI 3-3Management of material topics

Our supply partners play an integral role in helping us deliver value to our customers, providing critical materials and services that support the production of finished goods throughout
our global operations. We commit to preventing and mitigating social and environmental impacts in our supply chain, as well as partnering with suppliers that share our values and highstandards of ethical business conduct.
In 2022, we published our Supplier ESG Standards and began requiring our suppliers to acknowledge and certify their conformance with our Code of Business Conduct and with these
Supplier ESG Standards. We aligned the standards with the 10 principles of the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the ILO’s 1998
Declaration on Fundamental Principles and Rights at Work. More than 66% of our suppliers — representing 95% of our global annual spend — have confirmed their conformance tothese Supplier ESG Standards. We also require new suppliers to certify conformance with our Code of Business Conduct and with these Supplier ESG Standards.
For more information, see the Responsible Supply Chain section of the 2023 Sustainability Report.

GRI 308-1

GRI 308-2

New suppliers that werescreened using environmental
criteria

We require all new suppliers to complete an onboarding ESG self-assessment, which allows us to continually update and enhance our insight into ESG practices in our supply chain.

Negative environmental impacts
in the supply chain and actions
taken

We engaged with our top 100 suppliers by spend to join the EcoVadis platform to gain further insight into our own supply chain’s sustainability performance. Of these, approximately 70%
have completed and shared the EcoVadis scorecard. Our goal is to engage with an additional 150 suppliers in 2024, for a total of 250 suppliers, to help more of our suppliers track andimprove their performance and enhance our existing ESG assessment process.

For more information, see the Responsible Supply Chain section of the 2023 Sustainability Report.

In 2023, we reviewed approximately 90% of our suppliers, representing approximately 85% of our global annual spend, using the Dun & Bradstreet (D&B) ESG Rating Service. The
service is a web-based ratings platform that assesses the ESG operations of suppliers across 70 key topics, including through peer benchmarking and using leading sustainability
frameworks such as the Sustainability Accounting Standards Board (SASB), GRI, UN Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures(TCFD), and UN Principles for Responsible Investment (UN PRI). Through our expanded use of this tool, we gained increased insight into our suppliers’ sustainability practices, includingthat suppliers making up one-sixth of the global spend we assessed already have advanced ESG systems in place.
For more information, see the Responsible Supply Chain section of the 2023 Sustainability Report.
GRI 3-3Management of material topics

We believe that our employees are our greatest asset, and we aim to provide a safe, inclusive, and high-performance culture where our employees can thrive. At Watts, we strive toattract, develop, retain, and engage high-performing talent, and we reward employee performance. By developing and promoting our talented people, we are creating value for ourcustomers and shareholders. To that end, we have developed, and continue to enhance and refine, a robust and comprehensive talent management strategy that spans from talentattraction to performance management, career development, and retention of our top talent to succession planning across our organization. We continually strive to cultivate and support
a highly engaged and productive workforce with employees from all backgrounds.
For more information, please see the Talent Retention and Development section of the 2023 Sustainability Report.

GRI 401-1

New employee hires andemployee turnoverWatts • 2023 Sustainability Report

Please see the Social Data section in the Appendix.

80

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 401: Employment 2016
GRI 401-2

Benefits provided to full-time
employees that are not provided
to temporary or part-time
employees

We provide our full-time employees, remote or on-site, with a comprehensive benefits package through a mix of plans designed to support their individual and/or family’s health andwellness needs. We offer a standard benefits package in the United States to our eligible employees. In other countries where we operate, government-sponsored programs provide forthe health, disability, retirement, parental leave, and unemployment benefits for our employees as a matter of legislative or national practice in support of their social system. In addition
to these government-sponsored programs, we provide supplemental coverage or benefits in certain countries where we have large employee populations, which may include:• Medical care
• Pharmacy program• Dental care
• Vision care
• Life insurance• Supplemental life insurance• Short-term and long-term disability coverage• Dependent-care spending accounts• Pre-tax health care spending and savings accounts• Voluntary accident and critical illness coverage• Employee wellness program• Business travel and accident insurance• Relocation programs• Employee discounts• Fitness and tuition reimbursement• Performance bonus

We comply with applicable local laws regarding benefits and pay for part-time, temporary, and full-time employees.
GRI 401-3

Parental leave

While Watts did not have an official parental leave company policy in 2023, there are several states in the United States that offer family leave, including California, Colorado, Connecticut,
Delaware, Massachusetts, Maryland, New Jersey, New York, Oregon, Rhode Island, Washington state, and Washington D.C. Of the Watts employee population in 2023 in those locations,
216 females and 532 males were eligible for family leave.
For more information, please see the Social Data section in the Appendix.

GRI 403: Occupational Health & Safety 2018
GRI 3-3Management of material topics

At Watts, we believe that occupational injuries and illnesses are preventable. We recognize healthy and safe working conditions as a human right and commit to protecting the health andsafety of all employees working at our facilities around the world. This commitment extends to contractors, visitors, customers, suppliers, and all other business partners. Our enterprisewide occupational health and safety (OHS) management system promotes operational excellence and enables Watts to build exceptional products in facilities that operate safely,
ethically, and responsibly. Its key elements include worker participation and consultation, risk assessments, training, written procedures, internal and external auditing, and a framework
for measuring program maturity and identifying opportunities for continuous improvement.
Our safety rules apply to all third parties performing activities at our locations, including suppliers, contingent workers, contractors, vendors, visitors, and all other non-Watts employees.
For example, contractors are required to follow our safety practices when working on our sites if they do not have equivalent or more stringent practices.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

GRI 403-1

Occupational health and safety
management system
The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

Watts • 2023 Sustainability Report

Our enterprise-wide OHS management system promotes operational excellence and enables Watts to build exceptional products in facilities that operate safely, ethically, andresponsibly. Its key elements include worker participation and consultation, risk assessments, training, written procedures, internal and external auditing, and a framework for measuring
program maturity and identifying opportunities for continuous improvement.
Individual operating sites prioritize risk assessments and provide a monthly update of progress toward top risks during the monthly operating review. Operating sites also have a target
risk-reduction goal established annually to continue to reduce overall workplace hazards and mitigate risks. Watts has multiple opportunities for workers to report workplace hazards,
including meeting with their supervisors, safety committees, near-miss and safety observation programs, and through our ethics hotline. Our near-miss and safety observation programs
include tracking open items to closure through our environmental, health, and safety (EHS) software, Gensuite.
Our system applies to all employees, contractors, and visitors across all Watts sites. Our system emphasizes worker participation and consultation, risk assessments, training, written
procedures, internal and external auditing, and a framework for measuring program maturity and identifying opportunities for continuous improvement. For example, all employees,
contractors, and visitors are encouraged to report unsafe conditions as part of our near-miss and safety observation programs. Concerns identified are tracked to closure, with closure

81

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE
rates reported by each operating site during our monthly operating reviews. Workers also participate in other elements of our program, including safety committees, conducting risk
assessments, identifying and scoping continuous improvement ideas, training, and inspections.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

GRI 403-2

Hazard identification, risk
assessment, and incident
investigation
The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

We aspire to be a zero-incident workplace, and in 2023, 17 of our operating and distribution sites continued to report zero recordable injuries. Our Zero incidents, Employee engagement,
Risk reduction, and Operational excellence (Z.E.R.O.) approach to drive a culture of safety at Watts empowers employees with the knowledge, tools, and resources they need toeffectively identify hazards, mitigate risks, and explore improvements. Watts sets an expectation that all employees report workplace hazards proactively to reduce the opportunity for
future injuries. “STOP WORK” is included in our OHS training for new-employee orientation, as well as annual refresher training. Included in the OHS system is our incident investigation
standard, which assigns responsibility for investigating injuries and determining root cause and corrective and preventive actions. Workers, supervisors, and EHS professionals are
involved in these investigations.
Workers, including non-Watts employees, are expected to report hazards in the workplace through our near-miss and safety observation program. This includes notifying their supervisor
or EHS representative, completing a near-miss/safety observation card, informing another member of leadership, or raising a concern through our ethics program. Worker disciplinary
actions are focused on intentional behaviors that violate specific safety rules (e.g., intentional bypass of a machine guard or operating a fork truck without proper training). Watts has asafety-critical policy that employees are trained on at new hire orientation and annually to emphasize the importance of following company safety rules.
Our OHS system includes a written incident investigation program that requires the involvement of supervisors, workers, EHS, and others, as necessary. The program includes taking
into account the hierarchy of controls and corrective and preventive actions actions. Workplace injuries are presented to top management monthly, and learnings that have multisite
impact are communicated through best practice sharing calls. In addition, the Senior Leadership Steering Committee review the effectiveness of the OHS system annually, including
recommendations for continuous improvement.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

GRI 403-3

Occupational health services
The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

Watts provides occupational health services in various methods. We have an occupational health professional on staff at our largest site who provides direct occupational health services
to on-site employees, as well as supports the balance of the sites globally regarding ergonomics, injury evaluations, and triage. The occupational health professional also interfaces
with our outside occupational health clinics in assessing care and transitional return to work. In the cases of Mexico, Tunisia, and our largest site in France, we also have occupational
medical professionals on site, as required by country regulations. Other locations also have medical services provided, where required by country regulation. All employees have accessto outside medical services, and where we have influence over the clinics, we seek occupation-specific clinics.
Work-related medical records are either maintained by human resources or the EHS organization. These organizations follow country-specific requirements for the confidentiality of
medical records and worker access to these records. In cases of non-work related medical records, these records are maintained solely by the human resources organization.
The occupational health services are focused on quality of care for work-related matters and also administer transitional return-to-work programs, where allowed by country-specificrequirements (e.g., Canada, United States, and Germany).
In addition, proactive stretching programs are in place across many U.S. sites to encourage prevention of injury.
Wellness programs include vaccination clinics, wellness clinics, and stretching programs. Health screenings, which were impacted by the COVID-19 pandemic, are now back in place.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report82

GRI STANDARDSGRI 403-4

DISCLOSURE TITLE

WATTS RESPONSE

Worker participation,
consultation, and communication
on occupational health andsafetyWorker participation and consultation is incorporated into our OHS system. Workers participate in developing risk assessments (job hazard analysis), training programs, safetycommittees, and lean/continuous improvement programs. Workers are also expected to participate in our early reporting programs, including near-miss and safety observations reporting
and, where allowed, offered token recognitions for both reporting and providing solutions. These recognitions vary around the world and often include awarding points to workers so thatthey may order company logo gifts such as T-shirts, hats, and electronic items (e.g., headphones).

The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

Worker participation and consultation is specifically stated in our standard procedure for incident investigation and risk assessment, encouraging direct input into solutions suchas the redesign of workstations, alternative tools, improved personal protective equipment (PPE), and additional training. The modifications emphasize the hierarchy of control todrive corrective and preventive actions that provide long-term benefits in OHS. Worker disciplinary actions are focused on intentional behaviors that violate specific safety rules (e.g.,
intentional bypass of a machine guard or operating a fork truck without proper training). Watts has a safety-critical policy that employees are trained on at new hire orientation andannually to emphasize the importance of following company safety rules.
Workers are expected to STOP WORK when they feel they are in an unsafe situation or are asked to conduct a task that they are not trained to do. Workers are not disciplined forproactively reporting unsafe conditions or acts. Watts has historically held employee safety stand-downs annually to encourage employee participation and awareness around trending
injury concerns. The safety stand-down approach varies by site but generally includes training, outside guests, and discussion of injury trends.
Joint management worker health and safety committees exist throughout the organization. These committees are responsible for raising concerns from other workers, analyzing data
(e.g., safety concerns, injuries, near-misses), establishing priorities for the local site to focus on, and raising these priorities to the local senior leadership. Committee members may also
be engaged in defining and executing continuous improvement projects.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

GRI 403-5

Worker training on occupational
health & safety
The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

GRI 403-6

Promotion of worker health
The reporting organization shallreport the following informationfor employees and for workers
who are not employees but
whose work and/or workplace iscontrolled by the organization:

Our OHS system requires training for all employees in accordance with country-specific regulations, as well as specific job duties. Each site assesses compliance obligations, as well asother specific training topics that are applicable to workers’ job duties. Each site prepares a training plan and executes the plan over the year. Training is delivered in the local language
and, where additional language assistance is needed, training is delivered to accommodate. Training plans include the frequency of training and vary by site. For example, more complex
training may be broken down into shorter segments to enhance its effectiveness.
Select trainings require testing (e.g., forklift), while others are validated by demonstration (e.g., lockout/tagout) or exercises (e.g., emergency response drill). Training is delivered throughcompetent trainers who may require specialized training (e.g., forklift) or competency through education or experience (e.g., internal safety professional or third party).
Training is delivered during company working hours. If workers need to be sent off site for specialized training, the workers are compensated.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.
Watts provides our employees with a comprehensive benefits package through a mix of plans designed to support their individual and/or family’s health and wellness needs. We offera standard package in the United States to our eligible employees. In other countries where we operate, government-sponsored programs provide for the health, disability, retirement,
parental leave, and unemployment benefits for our employees as a matter of legislation or national practices in support of their social system. In addition to these government-sponsoredprograms, we provide supplementation coverage of benefits in certain countries where we have large employee populations, which may include:• Medical care
• Pharmacy program• Dental care
• Vision care
• Life insurance• Supplemental life insurance• Short-term and long-term disability coverage• Dependent-care spending accounts• Pre-tax health care spending and savings accounts• Voluntary accident and critical illness coverage• Retirement savings (401[k]) plans with generous employer-matching funds• Employee wellness programs• Paid time off• Business travel and accident insurance• Relocation programs• Employee discounts• Fitness and tuition reimbursement• Performance bonus

For temporary workers, benefits are covered by their respective employer. However, for on-site wellness activities, temporary workers are welcome to participate (e.g., wellness fairs,
vaccination clinics).

Watts • 2023 Sustainability Report83

GRI STANDARDSGRI 403-7

DISCLOSURE TITLE
Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

WATTS RESPONSE
Our enterprise-wide OHS management system promotes operational excellence and enables Watts to build exceptional products in facilities that operate safely, ethically, andresponsibly. We aspire to be a zero-incident workplace, and worker participation and consultation is incorporated into our OHS system.
The majority of our sales comes from products that have been approved under regulatory standards incorporated into national, state, and municipal plumbing, heating, building, andfire prevention codes around the world. We manufacture quality products that are safe, reliable, and code compliant. We maintain stringent quality control and testing procedures at our
manufacturing facilities in accordance with superior quality standards and strict performance criteria outlined in local, national, and international codes and standards. Our manufacturing
facilities undergo routine audits for process and quality control procedures, ensuring that both our processes and products have consistent quality control throughout the product life
cycle. We conduct product testing — and periodic retesting and recertification — in accordance with standard compliance methodologies.
The full list of independent testing and certification organizations can be found in the Appendix. For more information, please see the Occupational Health and Safety (OHS) section of the2023 Sustainability Report.

GRI 403-8

Workers covered by an
occupational health and safety
management system

All workers across the organization, including temporary workers, contractors, and visitors are subject to the OHS system. For example, temporary workers participate in the new hireorientation, along with new Watts employees. Watts doesn’t distinguish between workers when implementing the OHS system, and if temporary workers become employees, they
become integrated into the annual training obligations. Globally, Watts applies the U.S. Occupational Safety and Health Administration (OSHA) criteria for reporting injuries.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

GRI 403-9

Work-related injuries

Please see OHS data tables in the Social Data section of the Appendix. Reported rates are based on 200,000 hours worked and include both employees and temporary workers
combined (no distinction) for the global organization. Injuries associated with temporary workers, who work under the direction of Watts, are included in the reported injuries for theorganization. For 2023, strains were the most common injury type, representing 40% of all recordable injuries.
Hazards are identified through multiple means, including conducting workstation risk assessments, employee near-miss and safety observations reporting, workplace first aids, andinjuries.
Efforts to mitigate injuries consider the hierarchy of controls and include:• Increasing automation or new tooling• Existing workstation redesign• New workstation design• Job rotations• Routine stretching programs• Physical assessments (e.g., worker practices, positioning, PPE)
• Workstation assessments (e.g., making minor modifications to operating practices, positioning workers closer to workstations to
reduce reach, modifying tools, modifying PPE)

Watts applies OSHA criteria for reporting injuries globally.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.
GRI 403-10

Work-related ill health

Please see OHS data tables in the Social Data section of the Appendix. Reported rates are based on 200,000 hours worked and include both employees and temporary workers
combined (no distinction) for the global organization. There were no ill health recordable incidents. No lost time cases were driven by illness.
Hazards are identified through multiple means, including occupational noise exposure assessments, workstation risk assessments, employee near-miss and safety observation reporting,
and workplace first aids.
Efforts to mitigate work-related ill health consider the hierarchy of controls and include:• Increasing automation or introducing new tooling (e.g., removing workers from noise exposure)• Existing workstation redesign• New workstation design• Job rotations• Physical assessments (e.g., worker practices, positioning, PPE)
• Workstation assessments (e.g., making minor modifications to operating
practices, positioning workers closer to workstations to reduce reach,
modifying tools, modifying PPE)For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report84

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 404: Training and Education 2016
GRI 3-3Management of material topics

We invest in our employees by providing opportunities that support them in enhancing their skills, competencies, and overall professional development. We offer a variety of in-person
and virtual learning and development programs that, at all levels and regions, are designed to build and retain a strong global workforce. In 2023, we continued our global rollout of amultiphased leadership and inclusivity training program for all employees that is designed to build leadership capability through a set of clear frameworks that are simple to use andeasily recalled, thus encouraging our employees to practice new habits and build inclusive behaviors. This training includes three modules focused on identifying bias to make better
decisions, creating teams where all people feel valued, and empowering people to use their voice and contribute ideas. We partner with external vendors to offer a variety of leadershipand professional development opportunities such as coaching for improved performance, time management, and new manager skills. We provide global, broad-based coaching
opportunities through several external partnerships that are targeted to the individual’s coaching and development needs.
For more information regarding the management approach, career development programs, performance reviews, and key performance indicators (KPIs), please see the Diversity, Equity,and Inclusion and Talent Retention and Development sections of the 2023 Sustainability Report.

GRI 404-1

Average hours of training peryear per employee

For data related to training and development, see the Social Data charts in the Appendix. Prior to 2023, data only included the employee breakdown by the Americas and APMEA region,
but the 2023 data category breakdown is inclusive of all levels.

GRI 404-2

Programs for upgrading
employee skills and transitionassistance programs

Employment Security
We strive for our employees to feel secure in their jobs at Watts and are committed to responsible workforce restructuring practices. We recognize the impact these actions can haveon our colleagues and will only take such steps when deemed necessary to enhance the value and performance of our company. As part of its oversight responsibilities, our board of
directors approves all major restructuring programs. When conducting restructuring activities, Watts adheres to local employment laws and statutes and ensures our employees aretreated fairly. We take measures to assist affected employees in their transition, which may include:• Severance pay, which considers employees’ years of service• Job placement service• Other forms of transition assistance (e.g., training, retraining, counseling, etc.)
For career endings resulting from retirement, employees are offered various forms of transistion assistance, including financial, estate, and long-term care planning.
For information on programs upgrading employee skills, please see the Talent Retention and Development section of the 2023 Sustainability Report.

GRI 404-3

Percentage of employees
receiving regular performanceand career development reviews

In 2023, almost 100% of our eligible employees received a performance review.
For more information, see the Performance Management section of the 2023 Sustainability Report and the Social Data section of the Appendix.

GRI 405: Diversity and Equal Opportunity 2016
GRI 3-3Management of material topics

Our diversity, equity, and inclusion (DEI) mission mission is to cultivate and sustain a workplace that prioritizes and integrates an inclusive culture in everything we do to fuel innovation,
empower our people to reach their full potential, and foster stronger connections with our partners. To support this mission, we have incorporated inclusion into the Watts strategicpillars, cultural behaviors, global performance management, and talent review frameworks, as well as the Global Leadership Team’s goals. We have established partnerships withand conducted recruitment activities at universities to drive female and underrepresented minority outreach and rolled out leadership and inclusivity training throughout the globalorganization, as our comprehensive approach to DEI focuses on awareness and education, recruiting and retention, and advancement programs for all our leaders and employees
to help make sure we are attracting and retaining the most qualified talent. We monitor employee perception on inclusion and diversity through employee feedback, and we createawareness with our employees about DEI-related topics through the company intranet, in employee meetings, through our public website, and through a DEI calendar of events
designed to increase solidarity, engagement, and support. Additionally, we operationalized a Diverse Candidate Slate Policy in the United States for managerial levels, established aregular cadence for pay equity review, and added benefits.
For more information, please see the Diversity, Equity, and Inclusion section of the 2023 Sustainability Report and pp. 20 – 23 of the 2024 Proxy Statement.

Watts • 2023 Sustainability Report85

GRI STANDARDSGRI 405-1
GRI 405-2

DISCLOSURE TITLE

WATTS RESPONSE

Diversity of governance bodies
and employees

Corporate Governance, 2023 Sustainability Report

Ratio of basic salary andremuneration of women to men

We regularly analyze wages to retain employees and stay competitive in the labor market. An internal pay equity review is embedded into our hiring and promotion processes. In 2023,
we conducted a complete benchmark of all our roles to ensure we are market competitive in our hiring and retention practices. Where needed, we provided market adjustments to staycompetitive and retain key talent. In 2023, we began a project to revitalize our job architecture that will better align with our roles and provide our employees with a more comprehensive
career path structure. For more information, please see the Diversity, Equity, and Inclusion section of the 2023 Sustainability Report.

Diversity Profile, Appendix

GRI 413: Local Communities 2016
GRI 3-3Management of material topics

Giving back to the community is important to all of us at Watts. As a responsible corporate citizen, we aim to bring positive change to the communities where we live and work, as wellas the industry in which we do business. We believe in building strong, resilient communities and are committed to promoting social good at the corporate level, as well as regionally andlocally through our strategic partnerships, charitable giving, fundraising, and volunteer activities.
For more information, please see the Community Impact and Global Engagements sections of the 2023 Sustainability Report.

GRI 413-1

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

Community Impact, 2023 Sustainability Report
Global Engagements, 2023 Sustainability Report

GRI 414: Supplier Social Assessment 2016
GRI 3-3Management of material topics

Expectations of suppliers across various areas of ethics and integrity, as well as social and environmental responsibility, are covered in our Human Rights Policy, our Supplier Quality
Manual, and the Watts Code of Business Conduct. Our standard terms and conditions require supplier compliance with the Supplier Quality Manual and the Watts Code of BusinessConduct, including agreement to our Anti-Corruption Policy. In addition, in 2022, we published our Supplier ESG Standards, which are informed by the 10 principles of the UN Global
Compact, the UN Guiding Principles on Business and Human Rights, and the ILO’s 1998 Declaration on Fundamental Principles and Rights at Work. Approximately 66% of our suppliers,
representing 95% of our annual spend, have confirmed their conformance to these ESG standards.
Concerns or violations of our standards regarding our supply chain or supplier quality may be reported at any time through our ethics hotline. Together with the legal department, theteam regularly monitors key social and environmental performance indicators in our supply chain to ensure compliance with our standards, including in areas of health and safety, humanand labor rights, social responsibility, and conflict minerals.
For more information, please see the Responsible Supply Chain section of the 2023 Sustainability Report.

GRI 414-1
GRI 414-2

New suppliers that werescreened using social criteria

We require all new suppliers to complete an onboarding ESG self-assessment, which allows us to continually update and enhance our insight into ESG practices in our supply chain.

Negative social impacts in the
supply chain and actions taken

We engaged our top 100 suppliers by spend to join the EcoVadis platform and provide further insight into our own supply chain’s sustainability performance. Of these, approximately
70% have completed and shared the EcoVadis scorecard. Our goal is to engage with an additional 150 suppliers in 2024, for a total of 250 suppliers, to help more of our suppliers track
and improve their performance and enhance our existing ESG assessment process.

For more information, please see the Responsible Supply Chain section of the 2023 Sustainability Report.

In 2023, we reviewed approximately 90% of our suppliers, representing approximately 85% our global annual spend, using the D&B ESG Rating Service. The service is a web-based
ratings platform that assesses the ESG operations of suppliers across 70 key topics, including through peer benchmarking and using leading sustainability frameworks such as SASB,
GRI, UN SDGs, TCFD, and UN PRI. Through our expanded use of this tool, we gained increased insight into our suppliers’ sustainability practices, including that suppliers making up
one-sixth of the global spend we assessed already have advanced ESG systems in place.
For more information, please see the Responsible Supply Chain section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report86

GRI STANDARDSDISCLOSURE TITLE

WATTS RESPONSE

GRI 416: Customer Health and Safety 2016
GRI 3-3Management of material topics

For 150 years, Watts has developed products, components, and systems that have improved comfort, safety, and quality of life around the world. Our equitable, efficient, andenvironmentally sustainable product designs, acquisition strategy, and widespread advocacy for the safe and efficient conveyance of water center upon keeping people, equipment,
and water safe while protecting the planet. We have complete life cycle assessments (LCAs) of all our products produced in our largest facility in Franklin, New Hampshire. The LCAs
provided us insights into all materials used, and we are publishing the information to provide further transparency.
We are committed to manufacturing products, systems, and solutions in safe workplaces that are environmentally responsible. We participate in and contribute to local and government
initiatives around the world that improve the quality of life in communities where we live and work. We also invest heavily in training our customers on the safe use and installation of
products.
For more information, please see the Safety & Regulation and Best-in-Class Training sections of the 2023 Sustainability Report.

GRI 416-1

Assessment of the health andsafety impacts of product andservice categories

The majority of health and safety impacts of our products is set during the design phase. As a result, 100% of our new products are assessed for health and safety during our standard
new product introduction process. This assessment includes product performance, which targets our customers and other stakeholders, as well as manufacturing and supply chain
health and safety. During the life cycle of our products, our standard quality process and operating system assess all instances of noncompliance for definitive root cause and corrective/
improvement actions. The results of our standard quality process and operating system are discussed monthly in our standard business operating reviews. The majority of our sales
comes from products that have been approved under regulatory standards incorporated into national, state, and municipal plumbing, heating, building, and fire prevention codesaround the world. More than 70% of Watts revenue comes from products that are designed specifically for the safety and regulation of water. We develop our products and enhance ourexisting products under a supervised stage-gate process that includes design for safety, testing at multiple stages before launch, and steering committee oversight to ensure we havesafe, reliable products go to market. We manufacture quality products that are safe, reliable, and code compliant. We maintain stringent quality assurance and testing procedures at our
manufacturing facilities in accordance with superior quality standards and strict performance criteria outlined in local, national, and international codes and standards. We have a global
quality framework to identify and address product safety incidents promptly. Our manufacturing facilities undergo routine audits for process and quality-control procedures, ensuring thatboth our processes and products have consistent quality throughout the product life cycle. We conduct product testing and periodic retesting for recertification — in accordance withstandard compliance methodologies.
For more information, please see the Safety & Regulation and Best-in-Class Training sections of the 2023 Sustainability Report.

GRI 417: Marketing & Labeling 2017
GRI 3-3Management of material topics

We strive to create transparency and a superior buying experience for our customers. We believe in providing information about our products and services that is accessible andhelps our customers make informed purchasing decisions. Watts only uses substantiated claims in its advertising, marketing, and sales materials. We take care to include product use
instructions and warnings that are clear and easy for the end user to understand. Our packaging includes clear information about the product, including size, description, model number,and if it is “lead-free.” Many product labels also include QR codes, which allow customers to quickly access information and resources from their mobile devices. Labels for products
traditionally sold in the retail market in North America include translations in both Spanish and French, providing greater access access for our diverse audience of customers.
We engage in responsible sales and marketing practices that are fair and transparent and help to promote economic efficiency and sustainable growth. At Watts, we believe in promoting
our services honestly and educating our customers about the appropriate use of our products. We expect our employees to be clear, accurate, and truthful when representing the quality,
features, and/or potential hazards of our products.
All our marketing materials go through a standard review process with our legal department prior to the release of facts or comparisons of our products alongside our competitors. Also,
we compete on the merits of our products and services and make no attempts to restrain or limit competition. We strictly adhere to “antitrust” laws in the United States and “competition”
laws in countries in which we operate our business. At Watts, we operate within the boundaries of fair competition and antitrust laws, and we are committed to delivering value to ourcustomers and suppliers by rejecting conduct that undermines fair, stable, and open markets.

Watts • 2023 Sustainability Report87

GRI STANDARDSGRI 417-1

DISCLOSURE TITLE
Requirements for product andservice information labeling

WATTS RESPONSE
The country of origin is defined by where products are assembled or produced. We adhere to all prop 65 labeling requirements as well as lead labeling requirements and labelingrequirements labeling requirements. We also provide documentation on safe use and installation in product packaging,, as well as on our website. 100% of our products are assessedfor proper labeling and compliance. The majority of this activity happens prior to product launch and is performed to the requirements of our new product introduction process. This
assessment includes, but is not limited to:• The sourcing of components of the product or service• Content, particularly with regard to substances that might produce an environmental or social impact• Safe use of the product or service• Disposal of the product and environmental or social impacts• Any other relevant information

Emergency Preparedness and Response was identified as a material topic for Watts but is not covered by the GRI Topic Standards. Reporting against this topic is included in the Occupational Health and Safety (OHS)
section of the 2023 Sustainability Report.

Watts • 2023 Sustainability Report88SASB Index
SASB TOPIC
EnergyManagement

DISCLOSURE
CODE
RT-EE-130a.1

SASB METRIC

WATTS RESPONSE(1) Total energy consumed, (2) percentage grid electricity, (3)percentage renewable

Total energy consumed: 109,559 MWH
Percentage grid electricity: 58,554,048.85 kWh
Percentage renewable: 25,991,453 kWh
Amount of hazardous waste generated: 1,736,761 kg

Hazardous Waste
Management

Product Safety

Product Lifecycle
Management

Materials
Sourcing

Percentage recycled: Data, as requested, is not available at this time. Watts has a strong metal-recycling program at our manufacturing
facilities. In 2023, we recycled 4,965 t of metal scraps and chips and 12.14 t of electronic waste, and we reused 16.8 t of plastic
regrinds, globally.

RT-EE-150a.1

Amount of hazardous waste generated, percentage recycled

RT-EE-150a.2

Number and aggregate quantity of reportable spills, quantity
recovered

We did not have reportable spills in 2023.

RT-EE-250a.1

Number of recalls issued, total units recalled

Watts issued no product recalls in 2023.

RT-EE-250a.2

Total amount of monetary losses as a result of legal proceedings
associated with product safety

Watts had no monetary losses as a result of legal proceedings associated with product safety in 2023.

RT-EE-410a.1

Percentage of products by revenue that contain IEC 62474
declarable substances

Data ia not available.

RT-EE-410a.2

Percentage of eligible products, by revenue, that meet ENERGYSTAR® criteria

Data ia not available.

RT-EE-410a.3

Revenue from renewable energy-related and energy efficiencyrelated products

A total of 24% of Watts revenue in 2023 was from energy efficiency-related products.

RT-EE-440a.1

Description of the management of risks associated with the useof critical materials

Expectations of suppliers across various areas of ethics and integrity, as well as social and environmental responsibility, are covered in
our Human Rights Policy, our Supplier Quality Manual, and the Watts Code of Business Conduct. Our standard terms and conditions
require supplier compliance with the Supplier Quality Manual and the Watts Code of Business Conduct, including agreement to
our Anti-Corruption Policy. In addition, in 2022, we published our Supplier ESG Standards, which are informed by the 10 principlesof the UN Global Compact initiative, the UN Guiding Principles on Business and Human Rights, and the ILO’s 1998 Declaration
on Fundamental Principles and Rights at Work. Approximately 66% of our suppliers, representing 95% of our annual spend, haveconfirmed their conformance to these ESG standards.
Concerns or violations of our standards regarding our supply chain or supplier quality may be reported at any time through our
ethics hotline. Together with the legal department, the team regularly monitors key social and environmental performance indicators
in our supply chain to ensure compliance with our standards, including in areas of health and safety, human and labor rights, social
responsibility, and conflict minerals.
We engaged with our top 100 suppliers by spend to join the EcoVadis platform to gain further insight into our own supply chain’s
sustainability performance. Of these, approximately 70% have completed and shared the EcoVadis scorecard. Our goal is to engage
with an additional 150 suppliers in 2024, for a total of 250 suppliers, to help more of our suppliers track and improve their performanceWatts • 2023 Sustainability Report

89

SASB TOPICDISCLOSURE
CODE

SASB METRIC
and enhance our existing ESG assessment process. We also require all new suppliers to complete an onboarding ESG selfassessment, which allows us to continually update and enhance our insight into ESG practices in our supply chain.
In 2023, we reviewed approximately 90% of our suppliers, representing approximately 85% our global annual spend, using the D&B
ESG Rating Service. The service is a web-based ratings platform that assesses the ESG operations of suppliers across 70 key topics,
including through peer benchmarking and using leading sustainability frameworks such as SASB, GRI, UN SDGs, TCFD, and UN PRI.
Through our expanded use of this tool, we gained increased insight into our suppliers’ sustainability practices, including that suppliers
making up one-sixth of the global spend we assessed already have advanced ESG systems in place.
For more information, see the Responsible Supply Chain section of the 2023 Sustainability Report.

Business Ethics

Activity Metric

RT-EE-510a.1

Description of policies and practices for prevention of: (1)corruption and bribery and (2) anti-competitive behavior

Watts is committed to acting with integrity and has detailed compliance procedures and policies. We confirm that both anti-corruption
and anti-competitive behavior policies are covered in the Code of Conduct.

RT-EE-510a.2

Total amount of monetary losses as a result of legal proceedings
associated with bribery or corruption

No incidents of corruption or associated legal actions occurred in 2023.

RT-EE-510a.3

Total amount of monetary losses as a result of legal proceedings
associated with anti-competitive behavior regulations

No incidents of anti-competitive behavior or associated legal actions occurred in 2023.

RT-EE-000.A

Number of units produced by product category

Information on revenue, products, customers, and markets is available in the Corporate Profile section of the report.

RT-EE-000.B

Number of employees

Watts employed a total of 4,442 people in 2023. This number does not include Enware, Bradley, or Josam.

Watts • 2023 Sustainability Report90SDG Index
Beyond the examples provided in the section on how Watts is contributing to the UN SDGs, you can find more information on how our work contributes to the SDGs in the following hyperlinked sections of our 2023
Sustainability Report:
ALIGNED SDG GOALTARGETSOUR IMPACT: HOW WE ARE CONTRIBUTING

SDG 5: Gender Equality – Achieve gender equality andempower all women and girls• Target 5.1• Target 5.5• Target 5.c• DEI• Diversity Profile

SDG 6: Clean Water and Sanitation – Ensure availability
and sustainable management of water and sanitation
for all••••• Footprint• Environment, Health, and Safety Management• Water Stewardship• Waste Reduction• Handprint• Safety & Regulation• Conserving Water• Global Engagements

SDG 8: Decent Work and Economic Growth – Promotesustained, inclusive, and sustainable economic growth,
full and productive employment, and decent work for all• Target 8.2• Target 8.8

• OHS
• DEI
• Talent Retention and Development• Human Rights Policy• Ethics, Integrity, and Transparency• Responsible Supply Chain

SDG 9: Build resilient infrastructure, promote inclusive
and sustainable industrialization, and foster innovation• Target 9.1• Target 9.4• Energy and Emissions• Handprint• Safety & Regulation• Conserving Water• Improving Energy Efficiency• Sustainable Innovation• Privacy and Cybersecurity• Keeping Generations of People and Water Safe

SDG 12: Sustainable Consumption and Production– Ensure sustainable consumption and production
patterns• Target 12.2
• Target 12.5
• Target 12.6

• Our ESG Strategy• Footprint• Environment, Health, and Safety Management• Water Stewardship• Energy and Emissions• Waste Reduction• Sustainable Innovation• About This Report• Environmental Data

SDG 13: Climate Action – Take urgent action to combat
climate change and its impacts• Target 13.1
• Target 13.2

• Footprint• Water Stewardship• Energy and Emissions• Conserving Water• Improving Energy Efficiency• Sustainable Innovation• Supporting the Transition to a Lower Carbon
EconomySDG 14: Life Below Water – Conserve and sustainably
use the oceans, seas, and marine resources forsustainable development• Target 14.1

• Water Stewardship• Waste Reduction• Keeping Generations of People and Water Safe

Watts • 2023 Sustainability Report

Target 6.1
Target 6.3
Target 6.4
Target 6.b• Target 14.2

• Responsible Supply Chain• Keeping Generations of People and Water Safe
• Sustainable Innovation

91CEO Water Mandate
As a signatory to the mandate, Watts has committed to continuous improvement in the following six core areas of water stewardship practices. This Appendix is hyperlinked to
specific sections of the 2023 ESG Report:
PRINCIPLES
1. Direct Operations

OUR IMPACT: HOW WE ARE CONTRIBUTINGGRI• Our ESG Strategy• ESG Governance• Footprint• Environment, Health, and Safety Management• Water Stewardship• Energy and Emissions• Waste Reduction• Keeping Generations of People and Water Safe
• Sustainable Innovation• Environmental Data
• Environmental, Health, Safety, & Sustainability Policy• 2023 Form 10-K
• 2023 Proxy Statement

GRI 2-12

2. Supply Chain and Watershed
Management• Contributing to the UN SDGs
• Stakeholder Engagement• Footprint• Water Stewardship• Sustainability Assessments, Responsible Supply Chain• Membership of Organizations

GRI 308: Supplier
Environmental Assessment

3. Collective Action• Stakeholder Engagement• Membership of Organizations• Global Engagements• Keeping Generations of People and Water Safe

GRI 2-28• Public Policy & Advocacy• Membership of Organizations• Keeping Generations of People and Water Safe
• Stakeholder Engagement

GRI 2-28

5. Community Engagement• Stakeholder Engagement• Community Impact• Keeping Generations of People and Water Safe

GRI 413: Local Communities

6. Transparency• Ethics, Integrity, and Transparency• Stakeholder Engagement• About This Report• Environmental Data
• Environment, Health, Safety, & Sustainability Policy

GRI 303: Water and Effluents

4. Public Policy

Watts • 2023 Sustainability Report

GRI 2-23
GRI 2-24
GRI 303: Water and EffluentsGRI 2-29
GRI 3-1

GRI 2-29

92

EcoVadis Action Proxies
TOPIC

METRIC

2023 RESPONSE - METRIC

2023 RESPONSE - DESCRIPTION% of the total workforce across all locations
who received training (internally or externally)on environmental issues

42%

Environmental awareness training is provided upon employee onboarding and periodically thereafter; in 2023, this was measured in theAmericas and will be measured across the balance of the globe in 2024.

% of renewable energy out of total energy mix

28%Marked-based emissions based on RECs purchased. Please see our Verification Statements section of the Appendix.

% of total waste diverted from landfills, e.g.
through recycling, reusing or WTE

50.41%

Our organization is committed to minimizing waste generation and mitigating significant waste-related impacts by optimizing our
production processes, extending the lifecycle of our equipment, employing commonly used additives like coolants, reusing regularly
utilized items such as oily rags and uniforms, and effectively managing and evaluating waste invoices from third-party haulers.

Environment

Watts contracts with properly licensed waste vendors and transporters for management of waste.
Watts discloses and has data verified for its yearly total waste generated and other environmental data via invoices, site records, vendor
manifests, and compliance reporting. In 2023, the amount of hazardous waste generated was 1,736,761 kg. For the facilities where data
is available, 3,255,192 kg of non-hazardous waste generation was reported.
For more information, please see the Environmental Data and Verification Statements sections of the Appendix.
% of all operational sites certified to ISO
14001, EMAS or other environmental
management standard

47%

This is calcualted based on headcount and sites that are certified.

% of all operational sites covered by an
employee health & safety risk assessment

100%

Workers, including non-Watts employees, are expected to report hazards in the workplace through our Near Miss and Safety
Observations program. This includes notifying their supervisor or EHS representative, completing a NM/SO card, informing anothermember of leadership, or raising a concern through our Ethics program. Worker disciplinary actions are focused on intentional behaviors
that violate specific safety rules (e.g., intentional bypass of a machine guard or operating a fork truck without proper training). Watts
has a safety-critical policy that employees are trained on at new-hire orientation and annually to emphasize the importance of following
company safety rules.

Labor & Human
RightsOur OHS System includes a written incident investigation program which requires the involvement of supervisors, workers, EHS, andothers, as necessary. The program includes taking into account the hierarchy of controls, corrective, and preventive actions. Workplace
injuries are presented to top management monthly and learning that have multisite impact are communicated through best practice
sharing calls. In addition, the Senior Leadership Steering Committee review the effectiveness of the OHS system annually, including
recommendations for continuous improvement.
Injury reductions in 2023 were driven by multiple factors, including workstation optimization, increased investment in automation, crossfunctional engagement professional development, and increased best-practice sharing across the globe. Twelve of our operating anddistribution sites achieved injury reductions of 25% or greater with 14 sites have zero recordable injuries.
Each site presents its environmental, health, and safety (EHS) performance as part of our Monthly Operating Reviews. Our standard
metrics for safety include seven KPIs: total recordable incident rate (TRIR), lost time incident rate (LTIR), near-miss reporting, safety
observations reporting, risk-reduction scores, EHS framework score, training completion, and finding-closure rate. Twenty-one operating

Watts • 2023 Sustainability Report93

TOPICMETRIC

2023 RESPONSE - METRIC

2023 RESPONSE - DESCRIPTION
and distribution sites reduced their year-over-year lost time incident rates or had zero incidents, including ten sites with reductions
greater than 25%.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report.

% of total workforce across all locations
represented in formal joint managementworker health & safety committees

100%

All sites have safety committees. For Europe, these are required by regulation, for the US, it is state dependent.

% of workforce who are covered by formal
collective agreements concerning working
conditions

36%

Collective Bargaining
Our commitment to protecting human rights also applies to freedom of association and collective bargaining. We believe suchactivities facilitate dialogue and play an invaluable role in building trust, inclusivity, and transparency in the workplace. In compliancewith International Labor Organization standards, it is our policy to ensure our employees have the right to form or join associations of
their own choice concerning the relationship between the employer and the employees, and to bargain collectively. We do not issue
disciplinary or discriminatory actions against employees who choose to peacefully and lawfully organize or join an association. As well,
employees are prohibited from using intimidation tactics of any kind to obstruct other employees’ right to freely associate, and/or right toorganize or not.
Communication of Rights
At the local level and where applicable, we work to ensure our employees are aware of and understand their collective bargaining rights.
These rights may be communicated to employees in different ways based on local labor laws, regulations, and/or practices. Employees
at Watts may receive information about their collective bargaining rights:  

Labor & Human
Rights• During the onboarding process• Via internal company channels (e.g., company policies, rules and regulations, information boards, etc.)• Directly from their trade union or work council representative
Grievance Procedures
Where applicable, grievance procedures for collective bargaining rights may be provided to employees via any of the methods statedabove. While individual grievance cases may be handled differently based on local labor laws, regulations, and/or practices, they areusually resolved within a few days. Employees receive updates on their individual grievance cases from the trade union or works council
representing them. Resolved cases are routed to the appropriate management team at Watts. Cases requiring further escalation arereported to our Global Leadership Team.
In 2023, Watts had approximately 1,614 employees worldwide who were represented by unions, collective bargaining agreements, orworks councils. That is approximately 36% of our total workforce. Working conditions and terms of employment for those not covered bycollective bargaining agreements are directed by local laws.
% of workforce who are covered by formallyelected employee representatives

Watts • 2023 Sustainability Report

Information Unavailable/Incomplete: Despite our best efforts, certain information was unavailable or incomplete at the time of reporting.
We are continuously striving to enhance our data collection processes and improve the availability and accuracy of information for futurereporting cycles.

94

TOPICMETRIC% of workforce who received regularperformance and career development reviews2023 RESPONSE - METRIC

2023 RESPONSE - DESCRIPTION

100%

Employment Security
We strive for our employees to feel secure in their jobs at Watts and are committed to responsible workforce restructuring practices. We
recognize the impact these actions can have on our colleagues, and will only take such steps when deemed necessary to enhance thevalue and performance of our company. As part of its oversight responsibilities, our board of directors approves all major restructuring
programs. When conducting restructuring activities, Watts adheres to local employment laws and statutes, and ensures our employees
are treated fairly. We take measures to assist affected employees in their transition, which may include:• Severance pay, which considers employee years of service• Job placement service• Other forms of transition assistance (e.g., training, retraining, counseling, etc.)
For information on programs upgrading employee skills, see the Talent Retention and Development section of the 2023 Sustainability
Report.

Labor & Human
Rights% of workforce who received career-related or
skills training

100%

See above.

% of workforce who received training on
preventing discrimination & human rights
violations

99%

Included in Code of Conduct training.

% of all operational sites that have been
subject to human rights reviews or humanrights impact assessments

99%

All of Watts suppliers are reviewed by D&B which includes over 70 topics which includes human rights.

% of all operational sites certified to ISO
45001, SA 8000 or other similar management
standard

25%

25% is based on head count and sites certified; Watts provides occupational health services in various methods. We have an
occupational health professional on staff in our largest site who provides direct occupational health services to on-site employees,
as well as supports the balance of the sites globally regarding ergonomics and injury evaluations and triage. The occupational healthprofessional also interfaces with our outside occupational health clinics in assessing care and transitional return to work. In the casesof Mexico, Tunisia, and our largest site in France, we also have occupational medical professionals on site as required by country
regulations. Other locations also have medical services provided where required by country regulation. All employees have access to
outside medical services, and where we have influence over the clinics, we seek occupation-specific clinics.
Work-related medical records are either maintained by human resources or the Environmental, Health, and Safety organization. These
organizations follow country-specific requirements for the confidentiality of medical records and worker access to these records. In
cases of non-work-related medical records, these records are maintained solely by the Human Resource organization.
The occupational health services are focused on quality of care for work-related matters, and also administer transitional return-to-work
programs, where allowed by country specific requirements (e.g., Canada, US, and Germany).
In addition, proactive stretching programs are in place across many U.S.-based sites to encourage prevention of injury.
Wellness programs include vaccination clinics, wellness clinics, and stretching programs. Health screenings, which were impacted by the
COVID-19 pandemic, are now back in place.
For more information, please see the Occupational Health and Safety (OHS) section of the 2023 Sustainability Report

Watts • 2023 Sustainability Report95

TOPICMETRIC% of the total workforce who received training
on business ethics issues

2023 RESPONSE - METRIC

2023 RESPONSE - DESCRIPTION

99%

Code of Conduct Training Proxies
1. Computer Users — Our HRIS system automatically feeds the names of the employees with access to a computer to the learning
management system and the learning management system tracks the completion and acknowledgement of the code as stated above.
2. Factory Floor ­— For the employees that do not have a computer they are trained in person and each person must acknowledge
attending the training and the Code of Conduct.
3. Entity Level Controls — As part of our entity level controls the internal audit team reviews and validates the tracking and completion of
the training by both on-line and in person training.
KPIs – Whistleblowing
Watts Water manages a global hotline and reports on a quarterly basis the number and nature of the incidents.
No incidents of corruption were confirmed at Watts in 2023, nor were any legal actions regarding corruption brought against thecompany.
For more information, please see the Anti-Corruption Policies section of the 2023 Sustainability Report.

% of all operational sites covered by aninternal audit/risk assessment of businessethics issues
Ethics% of all operational sites certified to
ISO 27000 or other information security
management system standard

100%

Due Diligence Audits – Global
Watts performs a bi-annual due diligence verification audit of all third-party intermediaries for all sites globally. This audit conducted by
the compliance teams verifies that all third-party intermediaries have been identified and the due diligence is completed.
Cybersecurity Risk Management and Strategy
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, andavailability of our critical systems and information.
We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”).
This does not imply that we meet any particular technical standards, specifications, or requirements. We use the NIST CSF as a guideto help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is
integrated into our overall enterprise risk management program and shares common methodologies, reporting channels, and governanceprocesses that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial
risk areas.
Our cybersecurity risk management program includes the following:• risk assessments designed to help identify material cybersecurity risks to our critical systems, information,products, services, andour broader enterprise IT environment;• a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and(3) our response to cybersecurity incidents;• the use of external service providers, where appropriate, to assess, test, or otherwise assist with aspects of our security controls;• risk review of certain third-party service providers, including software vendors, third-party cloud services, and third-party hosting
services, with ongoing risk monitoring for critical vendors through an external cybersecurity intelligence service;• cybersecurity awareness training of our employees, incident response personnel, and senior management; and• a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents.

Watts • 2023 Sustainability Report96

TOPICMETRIC

2023 RESPONSE - METRIC

2023 RESPONSE - DESCRIPTION
Information Security Measures
1. Outside Risk Assessment — Watts utilizes third party companies to perform annual enterprise assessment and then we supplementwith other targeted assessments based on potential risk factors or specific events such as an acquisition.
2. Training — Watts has an Information Security Training program that includes quarterly mandatory security awareness training for allcomputer users. We maintain the records of all users that complete the training.

Ethics

3. Phishing Simulation — We perform monthly phishing simulations globally.
% of all operational sites certified to ISO
37001 or other anti-corruption management
system standard

Sustainable
Procurement

No cases of corruption reported, no employees dismissed or disciplined for corruption, no business partners were terminated or not
renewed for corruption violations. No pending legal cases regarding corruption against the company or any of its employees.

% of targeted suppliers who have signed the
supplier code of conduct

66%

66% of our suppliers have confirmed conformance to our Code of Business Conduct and Supplier ESG Standards, representing 95% of
our global direct spend% of targeted contracts that include clauses
on environmental, labor, human rights
requirements

100%

Our standard terms and conditions of purchase require supplier compliance with the Supplier Quality Manual and the Watts Code ofBusiness Conduct, including agreement to our Anti-Corruption Policy.

% of targeted suppliers covered by asustainability assessment

100%

In 2023, we reviewed approximately 90% of our suppliers, representing approximately 85% our global annual spend, using the Dun &Bradstreet (D&B) ESG Rating Service. The service is a web- based ratings platform that assesses the ESG operations of suppliers across70 key topics, including through peer benchmarking and using leading sustainability frameworks such as Sustainability AccountingStandards Board (SASB), Global Reporting Initiative (GRI), United Nations’ Sustainable Development Goals (UN SDGs), Task Force on
Climate-related Financial Disclosures (TCFD), and United Nations Principles for Responsible Investment (UN PRI).

% of all buyers who received training onsustainable procurement

100%

We engaged with our top 100 suppliers by spend to join the EcoVadis platform to gain further insight into our own supply chain’s
sustainability performance. Of these, approximately 70% have completed and shared the EcoVadis scorecard. Our goal is to engage
with an additional 150 suppliers in 2024, for a total of 250 suppliers, to help more of our suppliers track and improve their performance,and enhance our existing ESG assessment process. We also require all new suppliers to complete an onboarding ESG self-assessment,
which allows us to continually update and enhance our insight into ESG practices in our supply chain.
In 2023, we reviewed approximately 90% of our suppliers, representing approximately 85% our global annual spend, using the Dun &Bradstreet (D&B) ESG Rating Service. The service is a web- based ratings platform that assesses the ESG operations of suppliers across70 key topics, including through peer benchmarking and using leading sustainability frameworks such as Sustainability AccountingStandards Board (SASB), Global Reporting Initiative (GRI), United Nations’ Sustainable Development Goals (UN SDGs), Task Force on
Climate-related Financial Disclosures (TCFD), and United Nations Principles for Responsible Investment (UN PRI). Through our expanded
use of this tool, we gained increased insight into our suppliers’ sustainability practices, including that suppliers making up one-sixth of
the global spend we assessed already have advanced ESG systems in place.
For more information see the Responsible Supply Chain section of the 2023 Sustainability Report.

% of targeted suppliers covered by asustainability on-site audit

Watts • 2023 Sustainability Report22%

We did 1,075 audits (which included some elements of ESG). We transisition from on-site audits to the Ecovadis systems within 2023.

97Keeping Generations of People and Water Safe
For 150 years, Watts has developed products, components, and systems that have improved the comfort, safety, and quality of life around the world. Our equitable, efficient,and environmentally sustainable product designs, acquisition strategy, and widespread advocacy for the safe and efficient conveyance of water center upon keeping people,
equipment, and water safe while protecting the planet.

A RICH HISTORY OF SUSTAINABILITY
1970s

1874
Joseph E. Watts, amachinist, founded
Watts Regulator Co.
His company built andsupplied products toLawrence, MA, textile
mills to regulate water,
steam, air pressure, and temperature,
which was essential for the operationof water-heating systems, cylindricaldryers, bleaching and dye vats, andhydraulic presses that required wateror steam flow at low pressure. A firstof-its-kind regulator device provided
steam-pressure relief, ensuring thesafety of workers around hot-water
systems.

LATE 1920s
Watts developed the combination
temperature and pressure relief valve(T&P valve), a device that solved
significant safety problems with hotwater supply tank systems in homes
and buildings. Hot-water supply
tanks and heaters had long
been recognized as potentially
dangerous to home andbuilding occupants, as
the buildup of excess
heat inside a tankcould lead to explosion.

Watts entered the backflow market, developing
new backflow prevention products for buildings
and municipal waterworks to prevent backflowrelated contamination of drinking water systems.
In addition to creating smaller, less expensive
backflow prevention valves, Watts embarked onan educational campaign on the public hazards of backflow andhow to prevent it, aimed at municipalities. Watts also conductedtraining sessions for plumbers and plumbing inspectors on properuse of backflow prevention devices. Educational and advocacy
efforts resulted in the creation of the first backflow plumbing codes.
Backflow, or the reversal of the normal flow of water in a system,
can occur when a supply of potable water becomes connected toa line that contains contaminated water not suitable for drinking.
Backflow imperils individuals drinking contaminated water and,
when detected, can lead to large volumes of contaminated water
being discharged and wasted.

2014
Watts acquired
AERCO, amanufacturer of highefficiency commercial
condensing boilers
and water heaters.
Up to that point,
Watts offered many
components of waterheating systems, but
not the boilers orheaters themselves.
This made Watts
products a one-stop
shop for commercial
customers.

2016
Watts acquired PVI, a manufacturerof high-efficiency commercial water
heaters for new construction andbuilding retrofits.
Watts opened Watts Works Learning
Center in North Andover, MA, amodern, state-of-the-art space
devoted to customer training.
Watts formed a partnership with
Planet Water on social responsibility
initiatives, which has since provided
clean water to tens of thousandsof people in Cambodia, China,
Colombia, India, Indonesia, Mexico,
Philippines, Thailand, andPuerto Rico.

2019

2024
Watts will mark its 150th
anniversary.

Watts unveiled new
product innovations
featuring smart andconnected technology,
enabling facility
managers to remotely
monitor, access, andcontrol products.

Watts was recognized as
one of America’s Greenest
Companies by Newsweek
and included in the Top
300 U.S. companies
for environmental
sustainability.

2022
Watts achieved WAVE
verification from The
Water Council.

LATE 1800s

1920s

1930s

1999

2003

2013

2018

2021

2023

Watts steam andpressure regulators
spread to virtually
every manufacturingconcern in the
Merrimack Valley, andlater, manufacturers
throughout the U.S.,
Canada, and Europe.

Watts diversified into
making regulatorsfor general heating,home plumbing, andpower plants. Watts
regulators could control
any temperature orpressure of any fluidfor any purpose, now
including oil, as well as
steam and water.

Watts advocated forbetter water heater safety
nationally through an
educational campaign
about the dangers of hotwater heater explosions.
Watts led a series of
educational demonstrations
meant to inform plumbers
and plumbing inspectors
about the critical role ofboth temperature andpressure regulation inpreventing explosions.
This campaign helped spur
national safety standards tospecify T&P valves on hotwater heaters.

Watts refocused on water
solutions and spun off its
industrial oil and gas valve
business under a different
entity called CIRCOR.

Watts Industries
changed its nameto Watts Water
Technologies tohighlight its focus
on the watermarket.

Watts opened a 30,000
sq. foot lead-freefoundry to produce
lead-free products.
Today, the majority ofWatts products used toprovide water for humanconsumption in theAmericas are made here.

Watts idled its leadfoundry operationin Franklin, NH,
USA, to focus
on its lead-freefoundry operation.

Watts identified
water-leak detection
in residential andcommerical buildings asa major customer pain
point. Watts acquired
The Detection Group andSentinel Hydrosolutions
as its entry point and to address thiscustomer issue.

Watts acquired
Bradley Corporationand entered into the“front of the wall”
space to complement
its extensive “behind
the wall” offerings.

Watts • 2023 Sustainability Report

2001
Watts entered the water
filtration market anddeepened its commitment
to water conservation withthe acquisition of Premier,acquiring the patented
Premier Zero Waste (ZRO4) under-sink reverse
osmosis drinking water
system.

2010 – 2018
Watts led an effort to lobby the EPA for more stringent leadfree plumbing product requirements and labeling standards.

Watts finalized the decision todecommission its idled lead foundry
operations in Franklin, NH, USA,effective in December 2021, with plans
to complete decommissioning within
12 months.

Watts was proud tohave its headquarters
named a Top Place toWork by The Boston
Globe.

Watts was named one of America’s
Most Responsible Companies by
Newsweek for the third year in a row.

98

Watts • 2023 Sustainability Report

EMPLOYEESCUSTOMERS• Onboarding (for new hires)• Other local/regional town halls• Quarterly CEO video• Quarterly connect meetings• Strategic talent review• Training• Total rewards programs• Unions/works councils• Volunteer opportunities• Work-life balance initiatives• Product responsibility, safety, andquality• Ethics, integrity, and transparency• Occupational health and safety• Environmental compliance• Human rights• Sustainable innovation and digitaltransformation• Sustainable sourcing• Governance and accountability• Recycling and waste• Branded social media channels• Continuous Education Unit (CEU)
courses• Direct engagement via sales teams• Direct marketing, live events,
webinars• External website for Watts and its family ofbrands• In-person training at Watts Works Learning Centers• Trade shows and other live events• Voice-of-customer surveys/focus groups• Watts Works online learning

STAKEHOLDERS
AND DEBTHOLDERS• Employee handbooks• Employee recognition programs• ERGs• Engagement surveys/pulse checks/focus
groups• Ethics hotline and posters• Executive site visits• Learning management system/LinkedIn
Learning• Monthly operating reviews• Diversity, equity, and inclusion• Employee attraction, development,
and retention• Governance and accountability• Occupational health and safety• Climate change risk and resilience• Product responsibility, safety, andquality• Environmental compliance

•
•
•
•
•

• Investor relations website• Quarterly earnings conference calls• Quarterly earnings release• Other press releases

SUPPLIERS• Annual performance management
process• Branded social media channels• Career development programs• Code of Business Conduct• Collective bargaining agreements• Company policies and procedures• Connect intranet• Connect weekly email newsletter• Employee engagement committees

•
•
•
•
•

Governance and accountability
Ethics, integrity, and transparency
Sustainable sourcing
Human rights
Occupational health and safety• Employee attraction, development,
and retention• Diversity, equity, and inclusion• Energy and emissions• Water stewardship• Recycling and waste• Code of Business Conduct• Direct engagement with sourcing,global commodity leaders, buyers, andsupplier quality engineering teams• Harrington quality management
system• Kaizen events• Site visits• Supplier Code of Conduct• Supplier quality manual• Terms and conditions on purchase orders

COMMUNITY

Employee attraction, development, and retention
Ethics, integrity, and transparency
Occupational health and safety
Product responsibility, safety, and quality
Human rights
Data security and privacy
Diversity, equity, and inclusion
Governance and accountability• Community engagement and giving
back• Data security and privacy• Ethics, integrity, and transparency• Recycling and waste• Human rights and occupational
health and safety• Diversity, equity, and inclusion• Climate change risk and resilience• Talent pipelines

•
•
•
•
•

• Scholarships• Social media• Early in Career programs• Student internships

REGULATORYAUTHORITIES

•
•
•
•
•
•
•
•

•
•
•
•
•

Governance and accountability
Ethics, integrity, and transparency
Occupational health and safety
Water stewardship
Energy and emissions• Recycling and waste• Product responsibility, safety, andquality• Human rights• Direct engagement• International Organization for Standardization (ISO) audits and permit application• Codes and standards body membership and participation

BOARD OF DIRECTORS

Stakeholder
Engagement

METHODS OF ENGAGEMENTKEY TOPICS• Occupational health and safety• Product responsibility, safety, andquality• Diversity, equity, and inclusion• Employee attraction, development,
and retention• Ethics, integrity, and transparency• Emergency preparedness andresponse• Sustainable innovation and digitaltransformation• Environmental compliance• Governance and accountability• Energy and emissions• Data security and privacy• Water stewardship• Community engagement and giving
back• Recycling and waste• Climate change risk and resilience• Human rights• Sustainable sourcing• Public policy and advocacy

•
•
•
•

Annual Report/10-K
Annual shareholders meeting
Annual Sustainability ReportCompany filings with the SEC
Investor meetings and conferences

Company website
Educational partnerships
Local outreach via donations andvolunteerism
Planet Water partnership• ESG standards certification• D&B and National Sanitary
Foundation (NSF), ESG
assessment

Quarterly board meetings
Quarterly and ad hoc committee meetings
Annual meeting
Mid-quarter CEO board letter99

Conducted in partnership with a third-party consultant, and in accordance with the GRI standards, ourassessment collected and analyzed data from a variety of sources. Key steps included:• A benchmarking exercise to highlight ESG focus areas among peer companies, ESG ratings
agencies, and in industry-specific ESG reporting standards and frameworks.
• A collection of key internal and external stakeholder input to gather insights to support ESG topic
prioritization aligned to business objectives. This phase included interviews with management,
customers, investors, and NGOs, as well as an employee survey, completed by 82% of Watts
employees.
• Analysis and consolidation of the data into an initial materiality matrix prioritizing ESG topics, basedon impact on stakeholder decisions and importance to our business objectives.
• Alignment on topic prioritization with the Watts Global Leadership Teams as a basis to adjust andfinalize strategic priorities.

FINDINGS Environmental compliance Governance andaccountability Occupational health andsafety Product responsibility,

safety, and quality

 Diversity, equity, andinclusion Human rights

 Energy and emissions
 Data security and privacy
 Water stewardship Employee attraction,

development, andretention

 Ethics, integrity, andtransparency

 Emergency preparedness

and response Sustainable innovationand digital transformation

 Sustainable sourcing
 Public policy and Community engagement

and philanthropy

advocacy

MODERATEASSESSMENT PROCESS Climate change risk andresilience

Impact on stakeholders’ decisions

In September 2021, we completed a materiality assessment to inform our ESG strategy and actions.
This assessment helped us identify and evaluate the ESG topics that have the most significant impact
on our business and our stakeholders. The assessment identified ESG-related risks and opportunities
for us to evaluate as we execute our growth strategy and societal trends that may impact our ability tomeet stakeholder expectations.

HIGH

Materiality Assessment

 Recycling and waste

See right for the resulting materiality matrix.
MODERATE

HIGH

Importance to achieving Watts business objectives

 Environmental

Watts • 2023 Sustainability Report Governance Social

 Expected to increase inimportance over time100Material Topic Definitions
TOPIC

DEFINITION

Environmental topic definitions
Climate change risk and resilience

Forecasting and adapting to the risks posed by climate change, including severe weather events and increased scarcity of natural resources. Evaluating potential opportunities tomitigate climate impacts and increase resilience against risks.

Energy and emissions

Managing the energy consumption and GHG emissions of our operations and value chain by increasing energy efficiency and adopting more renewable energy sources.

Environmental compliance

Complying with all relevant environmental legislation while managing operations that generate water, waste, air pollutants, or hazardous waste and any environmental liabilities
associated with pollution, contamination, and the emission of toxic or carcinogenic substances.

Product responsibility, safety, and quality

Supporting the safe use of products and minimizing negative environmental impacts through all life-cycle stages. Minimizing risks to employees and customers by assessing health andsafety impacts of products through auditing, marketing, labeling, and compliance checks.

Recycling and waste

Limiting the waste generated as a result of our operations, including employing appropriate programs to reduce waste and maximize recycling and reuse of materials.

Sustainable sourcing

Facilitating supply chain resiliency by tracking and evaluating supplier performance in local operating communities across social, environmental, ethics, and risk dimensions.

Water stewardshipManaging water as a shared community resource by monitoring our water use and wastewater discharge-related impacts. Implementing efforts to reduce consumption, especially inwater-stressed areas.

Social topic definitions
Community engagement and philanthropy

Fostering relationships with our communities through employee volunteering, corporate giving, and strategic relationships with nonprofit organizations.

Diversity, equity, and inclusion

Maintaining a culture that recognizes, appreciates, and creates opportunities for diverse representation of people in the workforce (e.g., gender pay equity, diversity at every level of theorganization, and business resource groups). Fostering a culture that is inclusive, authentic, and free of discrimination to build a sense of belonging among Watts employees. Aligning ourpolicies and training to support inclusivity.

Emergency preparedness and response

Developing a plan of action to minimize the risk of potential emergencies in the workplace and having processes in place to minimize impacts of emergencies.

Employee attraction, development, and retention

Committing to and investing in employees by attracting, developing, and retaining a skilled workforce, including providing opportunities that enable skill development and professional
growth.

Human rights

Identifying and managing the social risks (e.g., human rights violations) present in our supply chain. Affirming our commitment to the basic rights and freedoms of all peoples.

Occupational health and safety

Protecting the health and safety of employees and contractors while at work. Fostering a positive safety culture that places a high level of importance on shared safety beliefs, values,
and attitudes.

Watts • 2023 Sustainability Report

101

TOPIC

DEFINITION

Governance topic definitions
Data security and privacy

Safeguarding data to protect the security, integrity, and confidentiality of our customer, supplier, and employee data, as well as using collected data responsibly and securely.

Ethics, integrity, and transparency

Operating with integrity and complying with relevant regulations and the highest standards of ethical and lawful conduct, including anti-bribery and corruption practices andwhistleblower protections.

Governance and accountability

Adhering to established governance principles by providing risk management activities, ethical and environmental compliance, freedom of association and collective bargaining, anda management structure that allows for appropriate oversight, transparency, and fair executive compensation. Providing adequate governance and accountability for managing ESG
strategy and performance.

Public policy and advocacy

Engaging with policymakers and providing industry knowledge and experience that informs the development of relevant environmental and social policies and regulations.

Sustainable innovation and digital transformation

Investing in the development of technologies that enable process optimization and digitization and create competitive advantage.

Watts • 2023 Sustainability Report102Membership of Organizations
MEMBERCOMMITTEEPARTICIPATIONFUNDING BEYOND
MEMBERSHIP DUESFUNDING AMOUNT

Americas

Yes

No

No

N/A

3-A Sanitary Standards, Inc.

Americas and Europe

No

Yes

No

N/A

AFCOM

Americas

Yes

No

No

N/A

Aicarr (Italian Association for HVAC, Heating)

EuropeYes

Yes, Dario Ghisleni

No

N/A

AIG ( Australian Industry Group )Americas

Yes

No

No

N/A

Air-Conditioning, Heating & Refrigeration InstituteAmericas

Yes

Yes

No

N/A

American Backflow Prevention Association

Americas

Yes

No

No

N/A

American Centers for Life Cycle Assessment

Americas

Yes

Yes

No

N/A

American Fire Sprinkler Association

Americas

Yes

No

No

N/A

American Rainwater Catchment Systems Association

Americas

No

Yes

No

N/A

American Society for Testing and Materials

Americas

Yes

Yes

No

N/A

American Society of Heating, Refrigerating and Air-Conditioning Engineers

Americas

Yes

Yes

No

N/A

American Society of Mechanical Engineers

Americas

Yes

Yes

No

N/A

American Society of Plumbing Engineers

Americas

Yes

Yes

Yes

~$48,000

American Society of Sanitary Engineering

Americas

Yes

Yes

No

N/A

American Supply Association

Americas

Yes

Yes

Yes

~$15,000

American Water Works Association

Americas

Yes

Yes

No

N/A

Angaisa (Italian National Association for Plumbing)

Europe

Yes

No

No

N/A

Anima (Italian Mechanical Association for Industry)

Europe

Yes

No

No

N/A

Aqua Italia (Fluid Solutions Association)

Europe

Yes

No

No

N/A

Assotermica (Italian Thermotecnic Association)

Europe

Yes

No

No

N/A

ATTB (Associate Thermische Technieken België)Europe

Yes

No

No

N/A

Australian Backflow Association

Americas

Yes

No

No

N/A

Backflow Prevention Group, Water System Branch, China Engineering and Consulting Association (CEDA)

APMEA

Yes

No

No

N/A

AVR (Italian Association of Valves and Taps Manufacturers)

Europe

Yes

No

No

N/A

BDH (Federation of German Heating Industry)

Europe

Yes

No

No

N/A

BFV (Bundesverband Flächenheizungen und Flächenkühlungen e.V.)

Europe

Yes

No

No

N/A

Building Industry Consulting Service International

Americas

Yes

Yes

No

N/A

BPAA (Backflow Prevention Association Australia)

APMEA

YES

YES

Yes

$11,000 (Business Strategic Partner)

MEMBERSHIP OF ORGANIZATIONSREGION

24x7 Exchange

Watts • 2023 Sustainability Report103

MEMBERCOMMITTEEPARTICIPATIONFUNDING BEYOND
MEMBERSHIP DUESFUNDING AMOUNT

Americas

Yes

Yes

No

N/A

Canadian Standards Association

Americas

No

Yes

No

N/A

China Data Center Committee

APMEA

Yes

No

No

N/A

China Valve Industry Association

APMEA

Yes

No

No

N/A

Confindustria Monza e Brianza (Italian Association of Industry)

Europe

Yes

No

No

N/A

Confindustria Trento (Industry for Trento region)

Europe

Yes

No

No

N/A

Council of Industry

Americas

Yes

No

No

N/A

CTI (Italian ThermoTechnical Association)

Europe

Yes

No

No

N/A

DDA (Dutch Data Center Association)

Europe

Yes

No

No

N/A

Distretto Trentino Tecnologico (Area Trento District for Technology)

Europe

Yes

No

No

N/A

EL 20 Standards Committee

APMEA

No

Yes

No

N/A

EVOLIS

Europe

Yes

No

No

N/A

GCCP (Genie Climatique Couverture-Plomberie)

Europe

Yes

No

No

N/A

Green Data Center Technology Committee

APMEA

YES

No

No

N/A

International Association of Plumbing and Mechanical Officials

Americas

Yes

Yes

Yes

~$2,500

International Code Council

Americas

Yes

Yes

No

N/A

Irrigation Association

Americas

No

Yes

No

N/A

Manufacturers Alliance for Productivity and Innovation

Americas

Yes

No

No

N/A

Manufacturers Standardization Society

Americas

Yes

Yes

No

N/A

Master Plumbers Association

APMEA

Yes

No

Yes

Mechanical Contractors Association

Americas

Yes

No

No

NZD 12,000 (Annual dues 10K, MP
recommends of 2K)

National Fire Protection Association

Americas

Yes

No

No

N/A

National Fire Sprinkler Association

Americas

Yes

Yes

No

N/A

Ningbo Beilun Green Power Association (BLGPA)

APMEA

YES

No

No

N/A

NSF International (National Sanitary Foundation)

Americas

No

Yes

No

N/A

ODE (Heating Networks Flanders)

Europe

Yes

No

No

N/A

Opentherm Association

Europe

Yes

No

No

N/A

Plastic Pipe InstituteAmericas

Yes

Yes

No

N/A

Plumbing and Drainage InstituteAmericas

No

Yes

No

N/A

PPIG ( Plumbing Products Industry Group )

APMEA

Yes

No

No

N/A

Rockland Business Association

APMEA

Yes

No

No

N/A

Rosebank Business Association (NZ)

APMEA

Yes

No

No

N/A

MEMBERSHIP OF ORGANIZATIONSREGION

Canadian Institute of Plumbing & Heating

Watts • 2023 Sustainability Report

N/A

104

MEMBERCOMMITTEEPARTICIPATIONFUNDING BEYOND
MEMBERSHIP DUESFUNDING AMOUNTEurope

Yes

No

No

N/A

APMEA

Yes

No

No

N/A

Yes

No

No

N/A

MEMBERSHIP OF ORGANIZATIONSREGION

Syndicat ACR (ancien MTA concept)
The Australian Industry Group
The Water Council (TWC) (Global)
TMP (Technical Association for Plastic Material)

Europe

Yes

No

No

N/A

U.S. Green Building Council

Americas

Yes

Yes

No

N/A

UNCP-FFB (Federation Francaise du Batiment)

Europe

Yes

No

No

N/A

Underwriters Laboratories

Americas

No

Yes

No

N/A

UNI (Italian Standard Unification)

Europe

Yes

No

No

N/A

Uniclima

Europe

Yes

No

No

N/A

United States Green Building Council

Americas

Yes

No

No

N/A

USC Foundation for Cross-Connection Control and Hydraulic Research

Americas

No

Yes

No

N/A

VIZ - Verband der Installations-Zulieferbetriebe

Europe

Yes

No

No

N/A

Water & Sewer Distributors of America

Americas

No

Yes

No

N/A

Water Quality Association

Americas

Yes

No

No

N/A

WBT (Werkgroep Beveiligingstoestellen) - consultative institution for KIWA

Europe

Yes

No

No

N/A

Western Regional Backflow Conference

Americas

No

Yes

No

N/A

WS026 Australian Standards Committee

APMEA

No

Yes

No

N/A

ASHRAE Falcon Chapter, U.A.E (MEA)

APMEA

Yes

No

Yes

AED 15,750 (Platinum Partner)

Emirates Green Building Council (MEA)

APMEA

Yes

No

Yes

AED 35,000 (Industry partner)

Watts • 2023 Sustainability Report105Environmental Data
2023 GHG EMISSIONS			
Scope 1
Consumption

Units

Emissions (MTCO2e)

Generation of Electricity, Heat, or Steam

64,617,947*

kWh

9,760

Transportation

155,336**

Liters365

2023 Total Scope 1:

10,125

Scope 2: Location-BasedElectricity

58,322,231

kWh2023 Total Scope 2 Location-Based:

15,836
15,836

Scope 2: Market-BasedElectricity

58,322,231

kWhRenewable Energy Credits (RECs)

15,354-7,2302023 Total Scope 2 Market-Based:

8,124

Scope 3Business Travel

5,6402023 Total Scope 3:

5,640

Total Scope 1, 2 (Location-Based), & 3		

31,601

Scope 1 + 2 (Location-Based) Total)		

25,961

Scope 1 + 2 (Location-Based) Intensity (MTCO2e/$M)

12.83

Total Scope 1, 2 (Market-Based), & 3		

23,889

Scope 1 + 2 (Market-Based) Total		

18,249

Scope 1 + 2 (Market-Based) YOY Reduction (%)-7.3

Scope 1 + 2 (Market-Based) Intensity (MTCO2e/$M)

9.02*Includes natural gas, diesel, fuel oil, propane, acetylene, and propylene.
**Includes fleet gasoline, fleet diesel, and propane mobile.

Watts • 2023 Sustainability Report106

HISTORICAL GHG EMISSIONS

2014

2015

2016

2017

2018

2019

2020

2021

2022

N. America

8,168

9,598

10,092

9,241

8,045

7,629

7,855

7,667

7,917

Europe

3,134

3,203

3,191

3,369

3,208

3,262

3,465

3,965

3,102

APMEA

3

3

3

3

3.14

1.27

26.31

31

6

Europe182

305

Total Scope 1 Emissions

11,845

11,330

Scope 1: Natural Gas, Diesel, Propane, Acetylene, Propylene (MTCO2e)				

Scope 1: Company Cars (MTCO2e)							*Sites: Biassono, Dattenberg, Hautvillers, Landau, Moirans, Sorgues, St. Neots, Vildbjerg, Virey

Scope 2: Electricity Location-Based (MTCO2e)							N. America

20,04018,477

16,41916,71915,353

13,58910,488

10,993

11,158Europe

6,529

6,323

6,604

6,686

6,461

6,680

4,628

4,495

3,950

APMEA

1,884

1,890

2,147

2,280

2,416

2,307

1,768

1,995

1,175

Total Scope 2 Location-Based GHG Emissions (MTCO2E)

17,483

16,282

Scope 1 + 2 (Location-Based) Total

29,32827,613

Scope 1 + 2 (Location-Based) Intensity (MTCO2E/$M)

16.21

13.95

N. America

14,184

10,665

Europe

4,223

3,761

APMEA

1,995

1,175

RECs

-6,174-7,374

Total Scope 2 Market-Based GHG Emissions (MTCO2e)14,2288,227

Scope 1 + 2 (Market-Based) Total*

26,073

19,251

Scope 2: GHG Emissions (Market-Based; MTCO2e)

Scope 1 + 2 (Market-Based) YOY Reduction (%)-26

Scope 1 + 2 (Market-Based) Intensity (MTCO2E/$M)

14.41

Scope 1 + 2 (Market-Based) Intensity YOY Reduction (%)

9.73
-32

Scope 3: Business Air Travel Emissions (MTCO2e)							N. America

5,065

1,049

1,044

3,053

185

21

5

100

Total Business Air Travel Emissions

1,049

3,153

Watts Global Total Emissions (MTCO2e) – Using Scope 2 Market-Based

27,122

22,710EuropeWatts • 2023 Sustainability Report

2,241

3,056

4,263

4,417

5,397

107

2023 GHG EMISSIONS INTENSITY RATIO
Scopes Included in Numerator:

Scope 1 & 2 (Market-Based)

Scope 1 & 2 (Location-Based)

Numerator:

18,249 MTCO2e

25,961 MTCO2e

Denominator:

2,022.9 USD per million

2,022.9 USD per million

Ratio:

9.02 MT/$M

12.83 MT/$M

CHANGE IN TOTAL GHG EMISSIONS VS. BASELINE
Baseline Emissions Metric Tons CO2e (2018)2023 Emissions Metric Tons CO2e

% Change of Total Emissions

Total Scope 1, 2 (Location-Based), & 3

40,88331,601-22.70%Total Scope 1, 2 (Market-Based), & 3

40,88323,889-41.57NITROGEN OXIDES (NOX), SULFURE OXIDES (SOX), AND OTHER SIGNIFICANT AIR EMISSIONS* (MT)
2023
SOx

0.00705646

Volatile Organic Compounds (VOC)

6.63924

Hazardous Air Pollutants (HAP)

3.95452

Particulate Matter (PM)0.0479803*Data included is for the largest factory in the Americas, Franklin, NH, that reports a portion of these parameters annually due to the Foundry operations.

Watts • 2023 Sustainability Report108

ENERGY CONSUMPTION

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

78,888,704

75,679,370

71,583,480

72,681,696

67,933,680

62,568,448

61,309,093

65,085,079

61,486,848

58,322,231

26,562,408

25,991,453

Total fuel consumption(Non-renewable sources)
Electricity (kWh)From RECs
Natural Gas (M3)5,729,747

6,454,121

6,716,075

6,368,092

5,697,142

5,546,331

5,753,167

5,839,721

5,511,643

4,862,298

Propane (Liter)

132,452

204,171

203,614

196,826

160,095

123,110

133,562

169,793

198,464

169,000

Diesel (Liter)

81,74574,71050,28163,54852,16030,303

18,55432,40819,73328,579126,609

117,689

Includes forklift usage
Includes fuel oil

Diesel & Gasoline – Fleet (Liter)
Acetylene (M3)

2,946

4,300

2,889

402

311

113

13

36

15

30

Propylene (Liter)

89

0

7,735

10,847

9,780

15,357

11,844

23,61917,783

4,723

Total Fuel Consumption (Renewable Sources):
On-site solar at Ningbo, Plovdiv
Total Energy (MWH)

676,910
141,600

146,600

145,000

142,500

130,200

127,647

123,593

129,856

121,873YOY Energy Reduction
Energy Eco-Efficiency (MWH/$1M)

Watts • 2023 Sustainability Report

111,714
10,159

93.55

99.88

103.69

97.82

83.20

79.75

81.93

71.78

61.55

55.22

109

2023 WATER USAGE (ML)2023

Total Withdrawal (All Areas)

108.28

Surface Water

105.94

Freshwater (≤1,000 mg/L Total Dissolved Solids)

105.94Groundwater

2.34

Freshwater (≤1,000 mg/L Total Dissolved Solids)

2.34

Total Withdrawal (Water-Stressed Areas)

43.83

Surface Water

41.49

Groundwater

2.34

Freshwater (≤1,000 mg/L Total Dissolved Solids)

2.34

Total Water Discharge (All Areas)

108.28

Surface Water

105.94Groundwater

2.34

Total Water Discharge (Water-Stressed Areas)

43.83

Total Discharge by Freshwater and Other Water (All Areas)

108.83

Municipally Sourced

108.83

Total Water Discharge by Freshwater and Other Water (Water-Stressed Areas)
Freshwater (≤1,000 mg/L Total Dissolved Solids)

43.83
43.83

Total Water Consumption (All Areas)

108.28

Total Water Consumption (Water-Stressed Areas)

43.83

HISTORICAL WATER USAGE

2014

2015

2016

2017

2018

2019

2020

2021

2022

Withdrawals: Municipal Supply (Liters)

201,586,525

184,394,341

200,065,018

198,634,913

222,138,840

193,812,312

130,334,449

111,903,727

105,000,652

Asia-Pacific (APAC)

38,902,000

37,823,510

44,143,000

54,124,000

80,650,162

34,444,473

10,673,627

11,646,713

10,453,282

Europe44,805,180

40,990,760

43,137,540

45,974,842

43,250,378

41,960,837

42,126,405

29,727,807

27,307,591

N. America

117,879,345

105,580,071

112,784,478

98,536,071

98,238,300

116,406,941

77,534,417

70,529,207

67,239,779

Discharges: Municipal Treatment (Liters)

201,586,525

184,394,341

200,065,018

198,634,913

222,138,840

193,812,312

130,334,449

111,903,727

105,000,652

Water Eco-Efficiency (M3/$M)

133.17125.63143.07136.36141.95121.09

86.39

61.85

53.04

Consumption (Liters)

Watts • 2023 Sustainability Report1102023 WASTE BY COMPOSITION (MT)
Waste Composition

Waste Generated

2023 WASTE DIVERSION AND DISPOSAL BY RECOVERY AND DISPOSAL OPERATION (MT)
Waste Diverted From
Disposal

Waste Directed to
Disposal

Metal

4,965

4,965

Plastic

222

222

Electronics

12

12

Cardboard

588

588

Wood

1,069

401

Solid Waste

496

496

Non-Hazardous Waste

3,256

3,256

Hazardous Waste

1,717

1,737

Comingled Recycling

29

29

Glass

0

0

Organics

4

4

Paper

17

17

12,377

6,240

Total
% of Waste Prevented

668

6,157
50.41%

OffsitePercent

Incineration (with energy recovery)

38

57%

Incineration (without energy recovery)

14

20%

Landfilling

12

18%

Stablization-Landfill

4

5%

68

100%

Landfill

1,974

85%

Other Recovery

213

9%

Other Treatment

118

5%

Discharge to Sewer

7

0.3%

Incineration

2

0.1%

Energy Recovery

2

0.1%

Other

2

0.1%

2,319

100%

Hazardous Waste

Total*
Non-Hazardous Waste

Total***Represents 89% of hazardous waste generated in the Americas**Represents 99% of non-hazardous waste generated in the Americas

Watts • 2023 Sustainability Report111

HISTORICAL TOTAL HAZARDOUS WASTE
WEIGHT BY REGION (KG)

2014

2015

2016

2017

2018

2019

2020

2021

2022

APAC

0

0

2,780

5,770

16,69017,10018,60012,0005,280

Europe1,558,425

1,488,420

1,260,119

1,563,147

1,878,784

1,933,648

2,214,848

1,950,894

1,890,974

N. America

372,316

313,835

198,142

162,725

167,407

151,351

121,422

188,541

410,839

Total (KG)

1,930,741

1,802,255

1,461,041

1,731,642

2,062,881

2,102,099

2,354,870

2,151.435

2,307,093

Hazardous Waste Eco-Efficiency (KG/$M)

1,276

1,228

1,045

1,189

1,318

1,307

1,561

1,189

1,165

HISTORICAL TOTAL WASTE (KG)

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total Waste (Hazardous & Non-Hazardous)
Hazardous Waste

4,390,554
1,930,741

1,802,255

1,461,041

1,731,642

2,062,881

2,102,099

2,354,870

2,151,435

Non-Hazardous Waste

2,307,093
2,083,461

Recycling & Reuse				Metal Scraps and Chips Recycling

5,609,820

7,325,843

3,446,329

Plastic Regrind Reuse

105,041

122,320

85,695Global Electronic Waste Recycling

3,507

7,888

8,591

WASTE DIRECTED TO DISPOSAL(GRI: 306-5)

2022

Disposal Type

Weight (MT)Percent (%)

Landfill

342

83%

Stablization – Landfill

21

5%

Other – Treatment

15

4%

Other – Physical Treatment

143%

Incineration-Energy Recovery

92%

Incineration

92%

Total Waste Directed to Disposal

410

0.99

Watts • 2023 Sustainability Report112NEW SUPPLIERS SCREENED USING ENVIRONMENTAL CRITERIA			Year

Total Number of New Suppliers

Number of New Suppliers Screened Using
Environmental Criteria

2023

33

33

% of New Suppliers Screened Using
Environmental Criteria
100%

EPA TOXIC RELEASE INVENTORYREPORTING - US SITES ONLY (KG)

2018

2019

2020

2021

2022

2023

Total Toxics Reported

1,441,860

1,177,637

1,114,393

1,117,575

977,064

Not availble until 2025

Total Toxics Recycled

1,441,142

1,144,009

1,079,051

1,062,732

929,096

Not available until 2025

ANNUAL COMPLAINCE PROCEDURES
Sites

NPDES (Storm Water)

Export

●
●

●

●
●

●

●
●

●

●
●

●
●

●
●

●
●

●
●

●

FT Myers

POTW/Categorical

TRI/EPCRA

Tier II/EPCRAState Air Permit

RCRA

Nogales
San Antonio
St Paul’sVernonSpindale
WoodlandFranklin

●
●
●

●
●

Franklin
Sparks●●Groveport
Blauvelt
Ft. Worth

●
●

●
●

●
●

●
●

Nigbo
Apex

Watts • 2023 Sustainability Report

113

ENVIRONMENT, HEALTH, AND SAFETY AUDITS
No.

Plant

Country

RegionAudit Scope1

Audit Type1

Burlington

CanadaAmericas

General Safety

2

VernonCanadaAmericas3

Nogales

Mexico4Nogales

5

No.

Plant

Country

RegionAudit Scope1

Audit Type

Annual2

Internal

31

Hauvillers

FranceEuropeRegulatory Applicability

External

Yes

General Safety

Internal

32

Moirans

FranceEuropeGuarding

External

AmericasISO14001 - Surveillance

External

Yes

33

Moirans

FranceEuropeRegulatory Applicability

External

MexicoAmericasISO45001 - Surveillance

External

Yes

34

Rosieres

FranceEuropeGeneral Safety

Internal

ExportUSA

Americas

Guarding

Internal

35

Rosieres

FranceEuropeISO14001 - Surveillance

External

Yes

6Fort Myers

USA

AmericasISO14001 - Surveillance

External

36

Rosieres

FranceEuropeRegulatory Applicability

External

Yes

7Fort WorthUSA

Americas

General Safety

Internal

37

SorguesFranceEuropeGuarding

External

8Franklin

USA

AmericasISO14001 - Surveillance

External

38

SorguesFranceEuropeISO14001 - Surveillance

ExternalYes

9Groveport

USA

Americas

General Safety

Internal

39

SorguesFranceEuropeRegulatory Applicability

External

Yes

10

No. AndoverUSA

AmericasISO14001 - Surveillance

External

Yes

40

Virey

FranceEuropeGeneral Safety

Internal

11

No. AndoverUSA

AmericasISO45001 - Surveillance

External

Yes

41

Virey

FranceEuropeGuarding

External

12

San Antonio

USA

Americas

General EHS

Internal

42

Virey

FranceEuropeISO14001 - Surveillance

External

Yes

13

St. Pauls

USA

Americas

Air Compliance

External

43

Virey

FranceEuropeISO45001 - Surveillance

External

Yes

14

St. Pauls

USA

Americas

General Safety

Internal

44

Virey

FranceEuropeRegulatory Applicability

External

Yes

15

St. Pauls

USA

Americas

Guarding

External

45

LandauGermany

EuropeISO14001 - Surveillance

External

Yes

16

St. Pauls

USA

AmericasISO14001 - Surveillance

External

46

Monastir

Tunisia

EuropeGeneral Safety

Internal

17

St. Pauls

USA

Americas

Stormwater Compliance

External

18

WoodlandUSA

Americas

General Safety

Internal

19

WoodlandUSA

Americas

Guarding

External

20

Ningbo

China

APMEA

ISO14001 - Surveillance

External

Yes

21

Ningbo

China

APMEA

ISO45001 - Surveillance

External

Yes

22

Plovdiv

Bulgaria

EuropeISO14001 - Surveillance

External

Yes

23

Plovdiv

Bulgaria

EuropeISO45001 - Surveillance

External

Yes

24

Vildbjerg

Denmark

EuropeGeneral Safety

Internal

25

Vildbjerg

Denmark

EuropeISO14001 - Surveillance

External

26

Vildbjerg

Denmark

EuropeGuarding

External

27

St. Neots

EnglandEuropeISO14001 - Surveillance

External

Yes

28

St. Neots

EnglandEuropeISO45001 - Surveillance

External

Yes

29

Hauvillers

FranceEuropeGeneral Safety

Internal

30

Hauvillers

FranceEuropeGuarding

External

Watts • 2023 Sustainability Report

Annual2

Yes
Yes

Yes

Yes

Audits scopes and schedules are updated annually and are based on multiple criteria, including (1) regulatory obligations, (2) management
sytem (ISO) obligations, (3) company risk-based assessments, and (4) a representative sampling of the global portfolio.

1

These audits are required annually in accordance with country-specific compliance requirements or other organizational obligations.

2

Yes

Total Audits in 2023

47

No. of Internal

24

ISO14001

11

Safety14

Multimedia

8

No. of External

ISO45001
Environmental

Annual Audits

23
8

6

0

114

Social Data
NEW EMPLOYEE HIRES & RATE
New Employee Hires (#)

New Employee Hire Rate (%)

2023

2022

2021

2020

2019

2023

2022

2021

2020

2019

780

652

573

213

328

Americas

490

435

364

141

203

63%

67

64%

66%

62%

Europe

238

177

172

40

92

31%

27%

30%

19%

28%

APMEA

52

40

37

32

33

7%

6%

6%

15%

10%

Female

297

223

169

61

102

38%

34%

29%

29%

31%

Male

482

429

404

152

225

62%

66%

71%

71%

69%

Not Specified

1

0

0

0

1

0

0

0

0

0

Under 30 years old

258

196

168

65

88

33%

30%

29%

31%

27%

30-50 years old

352

319

285

102

175

45%

49%

50%

48%

53%

Over 50 years old

116

119

117

45

60

15%

18%

2%

21%

18%

Total
New associate hires by region

New associate hires by gender

New associate hires by age group

Watts • 2023 Sustainability Report

115

EMPLOYEE TURNOVER & RATE
Employee Turnover

Employee Turnover Rate

2023

2022

2021

2020

2019

2023

2022

2021

2020

2019

Total

1054

855

853

783

851

Voluntary

632

616

642

430

559

60%

72%

75%

55%

66%

Involuntary

422

239

211

353

292

40%

28%

25%

45%

34%

Americas

614

527

566

493

502

58%

62%

66%

63%

59%

Europe

357

259

206

208

258

34%

30%

24%

27%

30%

APMEA

83

69

81

82

91

8%

8%

9%

10%

11%

Female

351

285

278

237

259

33%

33%

33%

30%

30%

Male

702

568

574

546

588

67%

66%

67%

70%

69%

Not Specified

1

2

1

0

4

0%

0%

0%

0%

0%

Under 30 years old

233

204

213

166

202

22%

24%

25%

21%

24%

30-50 years old

389

367

394

327

353

37%

43%

46%

42%

41%

Over 50 years old

327

267

237

269

257

31%

31%

28%

34%

30%

Turnover by region (%)

Turnover by gender (%)

Turnover by age group (%)

Watts • 2023 Sustainability Report

116

PARENTAL LEAVE*, **, ***					WORK-RELATED INJURY METRICS*
2023

2022

2023

2022

2021

2020

2019

Total number of employees that were entitled to parental leave

806

576

Number of Fatalities

0

0

0

0

0

Female562

417

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

Male

244

159

Fatality Rate (%)

0.00

0.00

0.00

0.00

0.00

Not Specified

N/A

N/A

24

25

25

29

48

Total number of employees that took parental leave

18

18

Number of High-Consequence WorkRelated Injuries (Excluding Fatalities)

Female14

15

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

Male

4

3

0.49

0.52

0.52

0.65

1.01

Not Specified

N/A

N/A

High-Consequence Work-Related Injuries Rate
(Excluding Fatalities) (%)

Total number of employees that returned to work in the reporting period afterparental leave ended

13

18

Number of Recordable Incidents

21

28

34

36

45

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

Female1015

Total Recordable Incidents Rate (TRIR) (%)

0.43

0.58

0.7

0.81

0.94

Male

3

3

Not Specified

N/A

N/A

Total number of employees that returned to work after parental leave ended
that were still employed 12 months after their return to work

2

Female

2

11

Male

0

3

Not Specified

N/A

N/A

Return to work and retention rates of employees that took parental leave (%)*Reported rates are based on 200,000 hours worked and include both employees and temporary workers combined (nodistinction) for the global organization.

WORK-RELATED ILL HEALTH METRICS*
2023

2022

2021

2020

2019

Number of Fatalities

0

0

0

0

0

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

Fatality Rate (%)

0.00

0.00

0.00

0.00

0.00

0

0

2

1

0

Female

100%

73%

Male

100%

100%

Number of High-Consequence WorkRelated Injuries (Excluding Fatalities)

Not Specified

N/A

N/A

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

High-Consequence Work-Related Injuries Rate
(Excluding Fatalities) (%)

0.00

0.00

0.04

0.02

0.00

Number of Recordable Incidents

0

1

1

1

1

Number of Hours Worked

9,780,517

9,656,944

9,652,990

8,865,719

9,539,222

Total Recordable Incidents Rate (TRIR) (%)

0.00

0.02

0.02

0.02

0.02

*2023 Data Only Captures U.S. and APMEA, 2022 data is US only and was not tracked prior to 2022**One year after the leave, one male employee has returned from leave for one year, and he is still active. The
others who took parental leave in 2023, have not yet been returned from leave for one year.
***There was a 100% return to work rate for males and females. Only 2 males has surpassed the one-year markof employment since returning from leave. All others are still employed, however, they will not have returned for
one year until later in 2024.

*Reported rates are based on 200,000 hours worked and include both employees and temporary workers combined (nodistinction) for the global organization.

Watts • 2023 Sustainability Report

117

TRAINING & DEVELOPMENT		
Training (Total Hours)

Training (Average Hours)

2023

2022

2021

2023

2022

2021

Female14,75514,015

5,854

5.5

5.04

2.03

Male

8,017

8,291

2,757

4.5

5.19

1.67

Not Specified

25

107

102

4.16

0.58

1.85

Total

22,79722,413

8,713

5.13

4.92

1.9

By Gender

By Employee Category (Americas & APMEA)
Senior Level

678

515

313.5

7.5

Middle Level

4,641

2,611

996

8.8

Entry Level

17,478

7,039

2,281

4.6

Total

22,797

10,1653,590.5

5.13

TRAINING & DEVELOPMENT
Regular Performance & Career Development Reviews (%)
2023

2022

2021

2020

2019

Female67.70%

67.30%

67.40%

67.70%

67.20%

Male

33.30%

32.70%

32.60%

32.30%

32.80%

Not Specified

N/A

N/A

N/A

N/A

N/A

Senior Level

1.50%

1.60%

1.80%

1.90%

2.10%

Middle Level

26.60%

26.40%

26.50%

25.90%

26.50%

Entry Level

71.90%

72.10%

71.80%

72.20%

71.50%

Total

100%

100%

100%

100%

100%

Americas99.06%

99.78%

98.82%

97%

Europe99.64%

100%

97.01%

97%

APMEA

100%

100%

100%

99%

By Gender

By Employee Category

By Region

Watts • 2023 Sustainability Report118Diversity Profile
GLOBAL

2021

2022

2023

EntireCompany

Individual
Contributor

Management

Executive

EntireCompany

Individual
Contributor

Management

Executive

EntireCompany

Individual
Contributor

Management

Executive

Female

36%

29%

20%

14%

36.82%

38.93%

22.85%

21.21%

37.62%

39.67%

24.96%

23.53%

Male

64%

71%

80%

86%

63.14%

61.02%

77.15%

78.90%

62.36%

60.31%

75.04%

78.47%

0.04%

0.5%

0%

0%

0.02%

0.02%

0%

0%

Under 30 years old

11.72%

13.09%

3.44%

0%30-50 years old

51.31%

51.08%

54.73%

17.65%

Over 50 years old

36.97%

35.82%

41.82%

85.35%

GenderOther
Age Group

U.S. ONLY — GENDER
2021

2022

2023

EntireCompany

Management

EntireCompany

Individual
Contributor

Management

EntireCompany

Individual
Contributor

Management

Female27%19%28.36%

29.52%

22.94%

29.20%

29.82%

26.61%

Male

73%

81%

71.59%

77.06%

77.06%

70.74%

70.12%

73.39%

0.05%

0.06%

0.00%

0.05%

0.07%

0.00%

Other

Watts • 2023 Sustainability Report119ALL U.S. EMPLOYEES ETHNICITY BREAKDOWN
2021

2022

2023

EntireCompany

Individual
Contributor

Management

EntireCompany

Individual
Contributor

Management

EntireCompany

Individual
Contributor

Management

American Indian/Alaskan Native

1.90%

0.00%

0.00%

1.66%

1.96%

0.29%

1.55%

1.78%

0.56%

Asian

4.30%

4.10%

9.90%

4.63%

4.15%

6.76%

5.50%

5.41%

5.88%

Black/African American

9.70%

6.20%

2.90%

9.83%

11.00%

6.47%

9.77%

11.15%

3.92%

Hispanic/Latino

15.80%

12.90%

5.80%

16.29%

17.38%

11.18%

15.91%

16.95%

11.48%

Native Hawaiian or Other Pacific Islander

0.30%

0.20%

0.30%

0.21%

0.13%

0.59%

0.11%

0.07%

0.28%

Two or more races

1.30%

1.50%

1.20%

1.14%

1.26%

0.59%

1.23%

1.39%

0.56%

White

65.80%

72.90%

79.00%

63.22%

61.06%

73.24%

62.95%

60.36%

73.95%

Other

0.90%

1.40%

90.00%

3.01%

3.24%

3.24%

1.07%

0.99%

1.40%

1.92%

1.91%

1.96%

2021

2022

2023

Blank

HEADCOUNT BY COUNTRY
2021

2022

2023

Australia

31

25

27

Netherlands

16

15

14

Belgium

43

47

47

New Zealand

44

46

42

Bulgaria

249

231

193

Norway988Canada

163

162

162

Poland

14

15

16

China

210

180

185

Russian federation

1

1

0

Denmark

328

314

293

Spain

14

15

15

Finland5

5

4

Sweden23

22

19

France

689

666

617

Tunisia

352

381

400

Germany

220

227

218

United Arab Emirates

18

21

22

Italy

225

234

229

United Kingdom

43

43

41

Republic of Korea

1

1

0

United States of America

1,873

1,922

1,873

Mexico14

15

17Grand total

4,585

4,596

4,442

Watts • 2023 Sustainability Report120

PERCENT OF HEADCOUNT BY REGIONREGION BY CONTRACT TYPE & GENDER

2021

2022

2023

2021

2022

2023

Americas

44.8%

45.8%

46.4%

Americas

2,054

2,106

2,059

Europe

48.8%

48.6%

47.8%

Regular

2,029

2,083

2,036

APMEA

6.4%

5.6%

5.8%

Male

1,483

1,499

1,450

Grand Total

100%

100%

100%

Female

546

583

585

Unspecified

N/A

1

1

Temporary

25

23

23

Male

15

17

13

Female10

6

10

CONTRACT TYPE BY GENDER
2021

2022

2023

Full time

4,505

4,503

4,344

Male

2,868

2,876

2,737

APMEA

Female

294

259

260

1,582

1,625

1,606

Regular

Blank

293

259

260

55

2

1

Male

Part time

168

148

151

80

93

98

Female

Male

125

111

103

15

26

33

TemporaryFemale

1

0

0

65

67

65

FemaleGrand Total

1

0

0

4,585

4,596

4,442

Europe

2,237

2,231

2,123

Regular

2,200

2,194

2,087

Male

1,207

1,220

1,140

Female

952

973

947

Unspecified

41

1

0

Temporary

37

37

36

Male

10

18

16

Female

13

19

20

Blank

14

0

0

CONTRACT TYPE BY REGION
2021

2022

2023

Regular

4,522

4,536

4,383

Americas

2,029

2,083

2,036

Europe

2,200

2,194

2,087

APMEA

293

259

260

Temporary

63

60

59

Americas

25

23

23

Europe

37

37

36

APMEA

1

0

0

Grand Total

4,585

4,596

4,442

Watts • 2023 Sustainability Report121

PERCENTAGE OF HEADCOUNT BY AGE GROUP
2023
Under 30 years old

10.9%

30-50 years old

50.3%

Over 50 years old

38.8%

Grand Total

100%

U.S. ONLY - MILITARY VETS BY CLASSIFICATION
2022

2023

EntireCompany

Individual
Contributor

Management

EntireCompany

Individual
Contributor

Management

Retired

1.77%

1.77%

1.77%

1.76%

1.72%

1.96%

Newly Separated

0.94%

0.95%

0.88%

1%

0.92%

1.40%

Inactive Reserve

0.78%

0.63%

1.47%

0.75%

0.66%

1.12%

Special Disabled

0.36%

0.44%

0.00%

0.32%

0.40%

0.00%

Vietnam Era

0.16%

0.19%

0.00%

0.16%

0.20%

0.00%

Active Reserve

0.10%

0.00%

0.59%

0.11%

0.00%

0.56%

No Military Service

5.25%

5.18%

5.59%

4.80%

4.61%

5.60%

Not Indicated90.64%

90.84%

89.71%

91.5%

91.5%

89.4%

Watts • 2023 Sustainability Report122Governance Data
COMMUNICATION & TRAINING ON ANTI-CORRUPTION POLICIES & PROCEDURES
Training
2021

2022

2023

Americas

100%*

100%*

100%*

Europe

100%*

100%*

100%*

APMEA

100%*

100%*

100%*

Employees: Category

99%

99%

Governance Body: Region

Senior Level

99%

Mid Level

100%

Entry Level

99%

Employees: Region

99%

99%

Americas99%

Europe

99%

APMEA

99%

Business Partners: Type

100%

100%

Distributors

100%

Sales Agents/Reps

100%

Business Partners: Region

100%

100%

Americas100%

Europe

100%

APMEA

100%

*The management team of Watts consists of the Global Leadership Team, the America’s Leadership Team, the European Leadership
Team, and the APMEA Leadership Team

Watts • 2023 Sustainability Report123

ANNUAL COMPLIANCE PROCEDURESNPDES (Stormwater)

A15 - Export

X

A23 - FT Myers

X

Public-Owned Treatment Works(POTW)/CATEGORICAL

TRI (Toxic Release Inventory)/
Emergency Planning and Community
Right to Know Act (EPCRA)

State Air Permits – Includes Volatile
Organic Compounds (VOC) and MoreTier II/EPCRA

Resource Conservation andRecovery Act (RCRA)X

A12 - Nogales
A18 - San AntonioX

A10 - St Paul’s

X

X
X

X

X

V - Vernon
DR02 - SpindaleX

A05 - Woodland

X

X

X

X

X

X

A01 - Franklin

X

X

X

X

X

X

D01 - Franklin
D05 - Sparks

XX

D20 - Groveport
Blauvelt

X

X

X

X

X

Ft. Worth

X

X

X

X

X

X

NingboApex

Watts • 2023 Sustainability Report124Verification Opinion Statement
GRI / Inventory Verification

Watts Water Technologies Inc.
815 Chestnut Street, North Andover, MA 01845, USA
GHG Accounting Standard: The Greenhouse Gas Protocol – Corporate Accounting andReporting Standard – Revised Edition
ISO 14064-1:2018 Specification with guidance at the organizationlevel for quantification and reporting of greenhouse gas
emissions and removals
GRI Disclosure Guidelines
Verifific
cation Criteria:

ISO 14064-3 2019 Specification with guidance for the verificationand validation of greenhouse gas statements

Reporting Period:

CY 2023 (01 January 2023 – 31 December 2023 inclusive)

Scope of the Verifi
ficcationVerification covers the above period associated with Watts Water Technologies Inc. global inventory. Where
assumptions have been made then these have been documented for transparency. These components arecollectively referred to as the “inventory” for the purposes of this Opinion. The verification covers:
The reporter utilizes Schneider Electric’s “Resource Advisor”, a web-based data management systemdesigned to store utility consumption information and invoices. The reporter primarily uses invoices as thesource data but also tracks utility consumption using own reads which can be used as an alternative to
invoices as source data if required. Individual installations are given responsibility to enter data / invoices /own reads into the “Resource Advisor” platform. Robust checks are implemented centrally to ensure thequality of the data is good. Lucideon was provided with guest access to Resource Advisor to enable invoicesampling and interrogation of the inventory. Emission factors are applied to the source data within “Resource
Advisor” to calculate inventory emissions where applicable. The emission factors used were assessed to befrom robust and recognized sources in all cases. While water and waste are not associated with emissions thesame approach was applied to data collection within “Resource Advisor” and the key outputs are litres (water)
and kg (waste). As part of the verification Total Recordable Incident Rate (TRIR) and Lost Time Incident
Rate (LTIR) were verified back to source. The key metrics as reported with the overall inventory data wereassessed to be correct.
The scope of the verification included energy consumption, greenhouse gas emissions, water consumption,
waste generation, TRIR & LTIR. After review of the reported data and it is concluded that the inventory ismaterially correct. Data and calculations selected for verification were based upon a risk assessment
approach. The verification also included ‘boundaries’ completeness checks. Data in spreadsheets were
examined and specific sampling of data was conducted giving consideration to raw data sources. Emission
factors were found to be based on best available information and were from robust and recognised sources
where applied.
Page 1 of 3
Wherever this verification opinion is displayed, all pages shall be made available.

This Assurance Statement is granted subject to conformance with the conditions of contract
Governing the verification.
Further clarifications regarding this statement may be obtained by consulting the organisation.

Lucideon CICS Limited
Queens Road, Penkhull
Stoke-on-Trent
Staffordshire ST4 7LQ, UK

T +44 (0)1782 432188
support@uk.lucideon.com
www.lucideon.com
Reg. England 1871628

Verification Opinion Statement
GRI / Inventory Verification
Verififie
ers Opinion
Based on the evidence provided and the samples selected for verification, nothing has come to our attention
that causes us to believe that the inventory is not materially correct.
The verification was conducted to a limited level of assurance in accordance with ISO 14064-3 (2019).
The inventory is a fair and accurate representation of Watts Water Technologies Inc. actual data compiledin conformance with the verification criteria described above. The data and information supporting theinventory were historical in nature.
The following qualifications and notes apply:• The verification boundary is defined as reported in the reporter’s inventory summaries. All othersource streams are outside the verification boundary.
• Sites where utilities are included in the rent are only included in the inventory if available. Applies
to Ningbo DC, Shanghai, Calgary, Amsterdam & Eerbeek.
• “Business Travel – Air” emissions are those captured through a third-party travel booking
company. Some bookings (assessed to be negligible) may occur outside this system and are notcaptured by the third-party travel booking company.
• Some source streams cover data for sites where data is available only (see footnotes to thesummary data table below).

1
1
1
1
1
1
1
1

Acetylene
DieselFuel Oil
PropanePropane Mobile
Propylene
Natural Gas
Fleet*
Scope 1 Totals

30,250 litres
3,681 litres
24,898 litres
200,271 litres
1,115 litres
4,723 litres
4,862,298 m3
155,336 litres

0.11
10.01
79.05
304.04
1.69
7.72
9,357.56
363.24
10,123.43

tCO2e (Market Based)

tCO2e (LocationBased)

Activity Data

SCOPE

Subscope

Verififie
ed Inventory

0.11
10.01
79.05
304.04
1.69
7.72
9,357.56
363.24
10,123.43

NB: table continued on next page.
Page 2 of 3
Wherever this verification opinion is displayed, all pages shall be made available.

This Assurance Statement is granted subject to conformance with the conditions of contract
Governing the verification.
Further clarifications regarding this statement may be obtained by consulting the organisation.

Lucideon CICS Limited
Queens Road, Penkhull
Stoke-on-Trent
Staffordshire ST4 7LQ, UK

T +44 (0)1782 432188
support@uk.lucideon.com
www.lucideon.com
Reg. England 1871628

Verification Opinion Statement
GRI / Inventory Verification2
2
2

Electric Power
RECs**
Fleet* (Electric Vehicles)
Scope 2 Totals

58,322,231 kWh
25,991,453 kwh
6086 kWh

15,836.44

3

Business Travel - Air
Scope 3 Totals

21,444,465 km

5,639.79
5,639.79

5,639.79
5,639.79

All

Total

31,601.56

23,888.80

Other
Other
Other
Other
Other

Water Consumption (litres)
Hazardous Waste (kg)***Non-Hazardous Waste (kg)****
Total Recordable Incident Rate (TRIR) ******
Lost Time Incident Rate (LTIR) ******

1.90
15,838.35

15,354.01
7,230.32
1.90
8,125.58-

108,280,338
1,736,761
3,255,192
0.92
0.49

* covers the sites with a complete fleet inventory data for 2023 (Biassono,
Dattenberg, Eerbeek, Hautvillers, Moirans, Monastir, Ningbo, Plovdiv, Sorgues,
Vildbjerg, Virey)** covers sites where contractual instruments were used in 2023: Blauvelt, D20,
Export, Franklin, Franklin DC - D01, Ft Worth, North Andover*** covers site where hazardous waste was produced. Vildbjerg, Biassono, Landau,
Hautvillers, Ft. Worth, Franklin, Virey, Caringbah, Rosieres, Nogales, Ningbo,
Sorgues, Plovdiv, Gardolo, Moirans, Woodland, Ft. Myers. Other sites did not
produce hazardous waste during 2023.
**** covers sites where records were available. Franklin, Hautvillers, Virey, St.
Pauls, Woodland, Ft. Worth, Rosieres, Biassono, Export, Enware, Gardolo, Sorgues,
Blauvelt, Ft. Myers.
***** As reported March 2024 noting that the system is dynamic and subject tosmall changes as cases are updated over time.

Signed:

Name:
Date:

Andrew Shepherd – Lead Auditor

Tony Summers

Lead Auditor

Independent Technical Reviewer

11th June 2024

17th June 2024
Page 3 of 3

Wherever this verification opinion is displayed, all pages shall be made available.

This Assurance Statement is granted subject to conformance with the conditions of contract
Governing the verification.
Further clarifications regarding this statement may be obtained by consulting the organisation.

Lucideon CICS Limited
Queens Road, Penkhull
Stoke-on-Trent
Staffordshire ST4 7LQ, UK

T +44 (0)1782 432188
support@uk.lucideon.com
www.lucideon.com
Reg. England 1871628