Reducing Our Carbon and GHG Emissions

The urgent threat presented by climate change requires a global effort to reduce carbon emissions.

We are committed to doing our part through our plan to cut our carbon emissions intensity in half by 2030 (compared to our 2021 baseline).

Scope 1 and Scope 2 Emissions

The combination of Zurn and Elkay in 2022 required us to consolidate energy and emissions data between the two companies, recalculate the GHG baseline in accordance with the GHG Protocol Corporate Accounting Standard, analyze the results and incorporate this new information into our strategic planning process. Our adjusted 2021 baseline is 20.8 metric tons of CO2 equivalent (CO2e) per $M revenue, and our carbon intensity in 2022 was 16.8 metric tons CO2e/$M revenue, a 19.2% reduction in carbon intensity between 2021 and 2022 for the combined Zurn Elkay.

The energy reduction projects described in the 2022 Sustainability Report's Energy Usage and Intensity section will help lower our GHG emissions. In addition to these projects, we continued taking steps in 2022 to lower our GHG emissions through renewable energy procurement:

In early 2023, we received third-party verification of our 2022 Scope 1 and 2 greenhouse gas inventory. This is a limited verification statement that at least 70% of the inventory has been reviewed. This type of verification is widely used.

In May, we signed contracts with utility providers at four of our facilities to purchase Renewable Energy Certificates (RECs). RECs represent the purchase of renewable energy that is added to the electrical grid, and they help companies address indirect GHG emissions associated with purchased electricity (Scope 2 emissions). Our REC contracts covered 2,929 MWh and saved 1,065 metric tons of CO2e in 2022.

Building on the success of our solar panel installation at our Paso Robles, Calif., location, we continue to investigate opportunities for onsite solar across our facilities to broaden our utilization of renewable energy. Our solar array produced 907 MWh and saved 212 metric tons of CO2e in 2022.

Scope 3 Emissions

Recognizing the importance of accounting for upstream and downstream emissions in our value chain, we conducted an assessment of the Scope 3 categories that are material to our business to help us establish a Scope 3 inventory baseline this year. In our ESG Index, we provide our Scope 3 emissions resulting from each of the seven relevant categories described to the right.

Our Scope 3 GHG emissions assessment has laid the groundwork for establishing a science-based target (SBT) for GHG reductions inclusive of our entire value chain, across Scope 1, 2 and 3 emissions. As part of our strategic planning process, we are working towards a decarbonization roadmap to define a pathway to reduce emissions in line with the Paris Agreement goals.