Franklin Electric Co. Inc. (FELE) 2024年CSR報告「NASDAQ」.pdf

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1、2024 Sustainability ReportTABLE OF CONTENTSWelcome /4About this Report /4Message from the Chairperson&CEO /6Company Overview /9Our History /10Corporate Governance /13Board of Directors /14Executive Offjcers /16Committees /20Financial Summary /25Operations /29Water Systems /32Water Treatment /36Headw

2、ater Companies /38Fueling Systems,Grid Solutions and EV Systems /39Supply Chain /40Moving Forward /44Commitment to Safety /46Safety Award Program /48Excellence in Safety Awards /49Compliance with Laws /51Code of Conduct /52Anti-Corruption and Anti-Bribery /53Discrimination /53Forced Labor /53Confmic

3、ts of Interest and Related Party Transactions /54Non-Retaliation Policy /54Environmental Compliance /54Cybersecurity /55Compliance Training /55Environmental Impact /57Conservation in Action /59Environmental Impact Data /60Product Spotlights /67High Effjciency VSI Stainless Steel Cast Pump Series /68

4、Pioneer Pump ElectricPAK VFD/69Power Integrity Remote Control Solution with OVERSITE /70FE PETRO Variable Speed Submersible Pumps /71NexPhase Smart EV Switchgear /72High-Effjciency SmartChoice Softener /73Commitment to Our Communities /75Franklin Wells for the World /76Franklin Electric Charitable a

5、nd Educational Foundation /82Scholarships /83Commitment to Our Employees /85Diversity,Equity and Inclusion /862023 Global Workforce /87Employee Engagement Survey /88Franklin Womens Network/90Employee Training /92Employee Health&Wellness /95Health and Wellness Highlights /96Retirement Plan(FERP)/98In

6、dex /101Sustainability Accounting Standards Board(SASB)/105Safe Harbor Statement /106About this ReportFranklin Electric Co/,Inc/(“We,”“Franklin Electric,”or the“Company”)is pleased to present our 2024 Sustainability Report,providing transparency and insight into our Environmental,Social,and Governan

7、ce(ESG)initiatives and progress/The report conveys details on ESG topics and our 2023 performance that are or may be of interest to our internal and external stakeholders/Information in this report covers our fjscal year ended December 31,2023,unless otherwise indicated/We are proud to be a company

8、that strives toward continuous ESG improvement and hope this report refmects that desire and dedication/WELCOME4|2024 Sustainability Report2024 Sustainability Report|5MESSAGE FROM THE CHAIRPERSON&CEOWith the support of our Board of Directors,I am pleased to present our annual Sustainability Report,a

9、 testament to our commitment to managing our environmental impact and positively infmuencing the communities we serve/Our journey is one of innovation,responsibility,and engagement,driven by a vision to partner with our customers in sustainable growth/In this report,we share the strides weve made in

10、 sustainable business practices,our efgorts to empower our employees and communities,and our pledge to uphold ethical practices across all operations/We believe that our success is measured not only by the products we create but also by the legacy we leave behind/Sustainable manufacturing initiative

11、s are the foundation of our long-term growth/Weve implemented a comprehensive strategy that focuses on employee safety,reducing waste and conserving resources across our global operations/Heres a snapshot of our efgorts:Employee SafetyWe are driving towards Goal Zero our commitment to strive for zer

12、o harm to employees and our environment/Our injury rate is below the average for our industry,and I am encouraged that our incident rates improved over 30%from 2022/While we work to achieve and maintain Goal Zero,we will continue our relentless focus on placing safety fjrst in all that we do/Emissio

13、ns ReductionWeve signifjcantly decreased our greenhouse gas(GHG)emissions year-over-year through optimizing facility usage to accommodate normal fmuctuations in our production needs/Renewable EnergyOne-third of the energy we use now comes from renewable sources,such as solar,hydroelectric,and wind p

14、ower,reducing our carbon footprint/In 2024,we will begin construction of a solar array to help provide renewable energy to our research laboratory at our corporate headquarters/We are committed to reviewing other similar opportunities in our facilities around the world/Resource Effjciency and Waste

15、ReductionWeve optimized our facilities and production processes to use less water and energy,and we are continuously exploring ways to use raw materials more effjciently/Our foundry operation in Araquari,Brazil introduced a new process to reuse sand for their molds which signifjcantly reduced the am

16、ount of waste generated,contributing to the 20%year-over-year reduction in non-hazardous waste generated across our manufacturing facilities/WELCOME6|2024 Sustainability ReportGregg C/SengstackChairperson of the Board and Chief Executive OffjcerProducts Designed for Quality,Safety and Sustainability

17、Our R&D team is dedicated to developing high-quality,innovative products that focus on safety,energy effjciency,and monitoring critical assets/Highlights of these products can be found later in this report/Community EngagementThrough Franklin Wells for the World,we invest in projects that provide lo

18、ng-term accessible and safe groundwater sources to at-risk communities in developing countries/In 2024,were expanding our efgorts to include investments in communities close to our global operations/Our Franklin Electric Charitable and Educational Foundation partners with our employees to contribute

19、 to local organizations,fostering a culture of community engagement beyond our company walls/I am particularly proud of our Excellence in Safety Award program that recognizes the achievements of our teams around the world for making meaningful progress toward Goal Zero/In recognition of these accomp

20、lishments,the company made donations to local charitable organizations selected by the teams,with a focus on organizations that promote safety/These initiatives are just the beginning/Were committed to continuous improvement and innovation in sustainable manufacturing,helping us meet todays needs wi

21、thout compromising the ability of future generations to meet theirs/2024 Sustainability Report|7Our Key Factors for Success are a roadmap to ensure we consistently,sustainably,and responsibly ofger the best value to our customers/QUALITY:Above all,we are committed to providing high quality products

22、and services to our customers/AVAILABILITY:We are committed to delivering our products and services when and where our customer needs them/SERVICE:We are passionate about providing industry-leading technical service,robust training programs,and unwavering support and communication/INNOVATION:We are

23、driven to evaluate new technologies and develop new products,services and processes/Our drive to innovate is at the core of what we do/COST:We consider cost in every decision we make/We strive to control cost for the benefjt of all our stakeholders/8|2024 Sustainability ReportCOMPANY OVERVIEWFrankli

24、n Electric Co/,Inc/(NASDAQ:FELE)is a global leader in the production and marketing of systems and components for the movement of water and energy/Recognized as a technical leader in its products and services,Franklin Electric serves customers around the world in residential,commercial,agricultural,i

25、ndustrial,municipal,and fueling applications/Franklin Electric is proud to be recognized in Newsweeks lists of Americas Most Responsible Companies and Most Trustworthy Companies for 2024,Best Places to Work in Indiana 2024,and Americas Climate Leaders 2023 by USA Today/At Franklin Electric,we strive

26、 to achieve market and fjnancial success,guided by our core values and focus on our Key Factors for Success Quality,Availability,Service,Innovation and Cost/Along with maintaining a culture of safety and continuous improvement,every Franklin Electric employee is expected to make decisions based on o

27、ur Key Factors for Success to ensure we ofger the best value to our customers/We do this not solely because it is good business,but because it is the right thing for our customers,employees,shareholders and business partners/Franklin Electric has grown from a small motor manufacturing company into a

28、 leading global provider of systems and components for the movement of water and fuel/Named after Americas pioneer electrical engineer,Benjamin Franklin,we continue to follow the core of our founders strategy by continuously improving our products and processes to deliver valuable and innovative sol

29、utions that better serve our customers needs/Our vision is to be an indispensable partner to our customers/We consistently deliver products of the highest quality available in the market,provide training that refmects the importance of the safety of our customers and end-users,and develop innovative

30、 products that deliver unparalleled performance,protect the environment and support sustainable energy sources/Our goal is to accomplish these objectives in ways that deliver value to our customers and shareholders/From driving greater productivity in our plants to delivering more effjciency in our

31、global projects,Franklin Electric is committed to operational excellence/In our manufacturing locations,we rely on leading best practices to increase machine availability,yields and value/We are always looking for better ways to turn inputs into quality products;this forward-thinking approach is cru

32、cial to our long-term success/2024 Sustainability Report|9COMPANY OVERVIEWFounded by Edward J/Schaefer&T/Wayne Kehoe in Blufgton,Indiana1944Entered water systems pump market with acquisition of JBD Pumps2004Expanded into the water systems plumbing,heating,ventilation and air conditioning(P/HVAC)mark

33、et with acquisition of Little Giant2006First international location established in Germany1963Established FE Petro Fueling Business1988Corporate Headquarters relocated to Fort Wayne,Indiana2013Entered the water systems distribution business with establishment of Headwater Companies and the acquisiti

34、on of DSI,2M and Western HydroEntered the water treatment market with the acquisition of First Sales,LLC,and subsequent acquisitions of WateriteExpanded water treatment footprint with acquisitions of Puronics and Aqua Systems201720192021Introduced the fjrst fully submersible electric motor for water

35、 pumping/First explosion-proof submersible motor for fueling systems/OUR HISTORY10|2024 Sustainability ReportT/Wayne KehoeEdward J/Schaefer2024 Sustainability Report|1112|2024 Sustainability ReportCORPORATE GOVERNANCEUnder Gregg Sengstacks leadership,the executive team is responsible for the develop

36、ment and implementation of Franklin Electrics strategies,policies and goals related to economic,environmental and social impacts/Board of DirectorsFranklin Electrics Board of Directors drives our culture of compliance and commitment to safety,employee and customer training and engagement,innovative

37、and effjcient product ofgerings,and lean manufacturing activities/The primary responsibility of the Board is to oversee the afgairs of the Company for the benefjt of the Companys shareholders/Board Structure&GovernanceThe Board has three standing committees:Audit,Management Organization and Compensa

38、tion,and Corporate Governance/The Companys Corporate Governance Guidelines provide for an independent non-executive director to act as Lead Independent Director/The Lead Independent Director is appointed by a majority of the independent directors and serves for a three-year term/Jennifer Sherman cur

39、rently serves as the Companys Lead Independent Director/The principal functions of the Board of Directors are to:Review,approve and provide accountability for the long-term strategic objectives and direction of the Company,including oversight of the Companys investment in environmental,social and go

40、vernance disclosures to ensure accuracy Select,advise,counsel,encourage,and evaluate the Chief Executive Offjcer and to select his or her successor Review and support the actions required to provide resources to pursue the objectives,strategies and plans of the Company Evaluate the performance of se

41、nior management Review key performance measures to help assure that it is managed both efgectively and responsibly Nominate suitable candidates for election to the Board and to establish and carry out an efgective system of board governance Monitor and advise on the Companys sustainability strategyC

42、ORPORATE GOVERNANCERead More About the Board of Directorswww/franklin-electric/com/company/board-of-directors25%25%25%37.5%37.5%37.5%37.5%25%75%75%8 DIRECTORS|7 INDEPENDENTMALE|6FEMALE|2 60 YEARS|361-64 YEARS|265+YEARS|3 4 YEARS|35-9 YEARS|210+YEARS|3WHITE|6ASIAN|2GenderAgeTenureEthnicity14|2024 Sus

43、tainability ReportNameAge*Director SincePrincipal OccupationIndependentCommitteesAuditCompensationGovernanceGregg Sengstack652014Chief Executive Offjcer and Chairperson,Franklin ElectricCEOVictor Grizzle622020CEO,Armstrong World IndustriesYes ChairpersonRenee Peterson622015Retired;Formerly,CFO,The T

44、oro CompanyYes ChairpersonAlok Maskara522021CEO,Lennox International,Inc/Yes ChairpersonJennifer Sherman592015CEO,Federal Signal CorporationYesDavid Wathen712005Retired;Formerly,CEO,TriMas CorporationYesThomas VerHage712010Retired;Formerly,CFO,Donaldson Company YesChris Villavarayan532022CEO&Preside

45、nt,Axalta Coating Systems,Ltd/Yes*As of publicationGregg C/SengstackJennifer L/ShermanDavid M/WathenVictor GrizzleThomas R/VerHageChris VillavarayanAlok MaskaraRenee J/Peterson2024 Sustainability Report|15Gregg C/SengstackChairperson of the Board and Chief Executive OffjcerGregg Sengstack joined the

46、 Company in 1988/Since then,Mr/Sengstack has held positions in various departments,with signifjcant leadership experience both domestically and internationally/His long tenure with the company provides us with a unique depth of understanding into our markets and businesses and helps guide our strate

47、gy/Elected Chairperson of the Board in 2015,Mr/Sengstack has served as Chief Executive Offjcer since 2014,at which time he also became a director/He served as President and Chief Operating Offjcer from 2011-2014/Prior thereto,he was Senior Vice President and President,Franklin Fueling Systems and In

48、ternational Water Group,and has held numerous positions in the Companys Finance organization before becoming Chief Financial Offjcer in 1999/He also serves on the board of Woodward,Inc/(WWD:NASDAQ)/CORPORATE GOVERNANCEExecutive OffjcersJefgery L/TaylorVice President,Chief Financial OffjcerMr/Taylor

49、served as Chief Financial Offjcer for Blue Bird Corporation,a leading manufacturer of school buses,prior to joining Franklin Electric/He previously held the position of Senior Vice President and Chief Financial Offjcer of Wabash National Corporation and brings strong fjnancial leadership,operational

50、 expertise and public company experience to our company/Mr/Taylor holds a bachelors degree in chemical engineering from Arizona State University and a Master of Business Administration from the University of Texas/16|2024 Sustainability ReportDeLancey W/DavisVice President and President,Headwater Co

51、mpaniesMr/Davis served as Vice President of Sales and Marketing for Flexcon Industries prior to joining Franklin Electric in 2005/Previously,he was a practicing attorney with the Washington D/C/offjce of Holland&Knight,LLP and for many years represented the water systems industry as a lobbyist for t

52、he Water Systems Council/In 2017 he was named Vice President and President,Headwater Companies,assuming responsibility for the Distribution segment of the Company/Jonathan M/GrandonVice President,Chief Administrative Offjcer,General Counsel and SecretaryMr/Grandon joined Franklin Electric in Septemb

53、er 2016/He had most recently been Senior Vice President,General Counsel and Secretary of Biomet Inc/,a leading multi-national health care and medical device company/He had also previously been a partner in the Chicago offjce of Ropes&Gray LLP,and prior to that was a partner at Mayer Brown LLP/2024 S

54、ustainability Report|17Jay J/WalshVice President and President,Franklin Fueling SystemsMr/Walsh has served as President of Franklin Fueling Systems since 2017 and is responsible for the growth and continued success of our Fueling and Grid Solutions businesses/He started with Franklin Electric in 199

55、5 in the fueling business then known as FE Petro/Prior to taking over as the President of Franklin Fueling Systems,he was responsible for that divisions marketing and sales/CORPORATE GOVERNANCEBrent SpikesVice President,Global Manufacturing OperationsMr/Spikes joined Franklin Electric in 2005/Since

56、joining Franklin Electric,he has held several leadership positions in manufacturing,distribution and engineering/He most recently served as Vice President of Global Water Engineering/Prior to joining the Franklin Electric team,Mr/Spikes held manufacturing leadership roles in the HVAC manufacturing i

57、ndustry with both Trane Technologies,Inc/,and Advanced Distributor Products,a business unit of Lennox International Inc/Mr/Spikes holds a bachelors degree in industrial engineering from Louisiana Tech University and a Master of Business Administration from the University of Saint Francis/18|2024 Sus

58、tainability ReportGreg LevineVice President and President,Global WaterMr/Levine joined Franklin Electric in 2023 from Nidec Motion Control and Drives,St/Louis,where he served as President for six years/In this role,he oversaw an international team of 3,800 across 13 operational sites/During his time

59、 with Nidec,Mr/Levine positioned the company to grow twofold through organic growth and acquisitions/Before working at Nidec,Mr/Levine held senior engineering roles at Emerson for 15 years/2024 Sustainability Report|19CommitteesThe Board of Directors has adopted a Charter for each of its Committees

60、that set forth the committees duties and responsibilities/In accordance with independence standards set forth in the Companys Corporate Governance Guidelines and under the applicable NASDAQ rules,all members of every committee have been determined to be“independent directors/”Read the Company Commit

61、tee Charterswww/franklin-electric/com/company/governanceCorporate Governance Committee:Provides oversight of ESG ProgramVP,Chief Administrative Offjcer&General Counsel:Executive management oversight of ESG ProgramESG Committee:Sets ESG Program goals and strategy and publishes Sustainability ReportCO

62、RPORATE GOVERNANCEA primary responsibility of our Board of Directors is overseeing the Companys strategy/The Corporate Governance Committee provides oversight of the Companys approach to sustainability and corporate social responsibility/The Audit Committee oversees reporting,internal control and co

63、ntinuous disclosures/The Management,Organization and Compensation Committee oversees the Companys goal to continuously improve diversity,equity and inclusion,as well as talent development/Our Vice President,Chief Administrative Offjcer and General Counsel leads the Environmental,Social and Governanc

64、e Committee,which includes the following cross-functional senior leaders:Vice President,Chief Financial Offjcer;Associate General Counsel and Compliance Offjcer;Senior Director,Global IT Infrastructure and Operations;Director,Internal Audit;Director,Global Human Resources;and Director,Global Environ

65、mental Health&Safety/Roles&Responsibility20|2024 Sustainability ReportCorporate Governance CommitteeThe current members of the Corporate Governance Committee(the“Governance Committee”)are Victor Grizzle(Chairperson),Thomas VerHage,Renee Peterson,and David Wathen/Under its charter,the Governance Comm

66、ittee reviews the size of the Companys Board and committee structure and recommends appointments to the Board and the Board Committees;reviews and recommends to the Board the compensation of non-employee directors,including awards to non-employee directors under the Companys equity-based compensatio

67、n plans;and develops and recommends to the Board corporate governance guidelines deemed necessary for the Company/The Committee also directs the Boards oversight of the Companys ESG program/The Governance Committee engages in discussions with the ESG Committee regarding the Companys ESG initiatives

68、and goals at each of its scheduled meetings and works with the Companys management team to set the Companys sustainability strategy/Director Nomination ProcessThe Governance Committee is responsible for identifying and recommending to the Board candidates for director/The Governance Committee consid

69、ers diversity when identifying candidates for directorships/Although the Company does not have a written policy regarding diversity,the Governance Committee seeks to identify persons from various backgrounds and with a variety of life experiences who have a reputation for,and a record of,integrity a

70、nd good business judgment and the willingness to make an appropriate time commitment/The Governance Committee takes into account the current composition of the Board and the extent to which a persons particular expertise,experience and ability will complement the expertise and experience of other di

71、rectors/The Governance Committee believes that candidates for director should also be free of confmicts of interest or relationships that may interfere with the performance of their duties/Based on its evaluation and consideration,the Governance Committee submits its recommendation for director cand

72、idates to the full Board,which is then responsible for nominating the candidates to be elected by the shareholders/2024 Sustainability Report|21Audit CommitteeThe current members of the Audit Committee are Renee Peterson(Chairperson),Chris Villavarayan,Alok Maskara,and Thomas VerHage/The Board of Di

73、rectors has determined that each member of the Audit Committee is an“audit committee fjnancial expert”as defjned by Item 407(d)(5)(ii)of Regulation S-K of the Exchange Act/Under its charter,the Audit Committee assists the Board of Directors in fulfjlling its oversight responsibilities by reviewing t

74、he Companys fjnancial information and internal controls;the Companys processes for monitoring compliance with laws and regulations;and the Companys audit and risk management processes,including an annual risk assessment process/The Audit Committee is also responsible for the review,approval or ratif

75、jcation of transactions between the Company and“related persons,”as required by the Companys policies/Included in the Audit Committees oversight of risk management activities is a review of the Companys environmental,sustainability and cybersecurity risks,and related risk and impact mitigation plans

76、/The Companys current Cybersecurity Response Statement is available online together with the Company Committee Charters/Read the Cybersecurity Response StatementCybersecurity Response Statement-PDFManagement Organization and Compensation CommitteeThe current members of the Management Organization an

77、d Compensation Committee(the“Compensation Committee”)are Alok Maskara(Chairperson),Jennifer Sherman,Chris Villavarayan,and Victor Grizzle/Under its charter,the Compensation Committee recommends to the Board of Directors the annual salary and bonus for the Chief Executive Offjcer,determines and appro

78、ves the equity awards for the Chief Executive Offjcer,and the annual salary,bonus and equity awards of the other executive offjcers of the Company;reviews and submits to the Board of Directors recommendations concerning bonus and stock plans;periodically reviews the Companys management benefjts poli

79、cies and programs;and oversees the Companys management development and organization structure/As part of its oversight of management development,the Compensation Committee encourages consideration of diversity in senior management succession planning/The Compensation Committee will also consider the

80、 extent to which improvement upon the ESG metrics identifjed in this Sustainability Report will be tied to future executive compensation/CORPORATE GOVERNANCE22|2024 Sustainability ReportEnvironmental,Social and Governance CommitteeIn 2020,the Board empowered an executive-led Environmental,Social and

81、 Governance(“ESG”)Committee to focus on sustainability initiatives,including the compiling and disclosure of this Sustainability Report/The ESG Committee meets throughout the year and reports to the Governance Committee of the Board of Directors during its regularly scheduled meetings/The ESG Commit

82、tee is also tasked with driving improvement of ESG targets and monitoring the ESG program alignment with the Companys strategic objectives/Product Review CommitteeAs part of our commitment to safety,we maintain a cross-functional Product Review Committee(the“PRC”)which includes representation from G

83、lobal Engineering,Global Product Supply,Commercial Leadership and Legal/The PRC is responsible for overseeing the evaluation of new products prior to launch to mitigate the risk of personal injury or property damage as a result of the products installation,application or utilization by an end-user/T

84、he PRC also reviews reports of potential safety issues identifjed in the fjeld and responds accordingly,with Franklins commitment to quality and safety guiding all decisions/2024 Sustainability Report|2324|2024 Sustainability ReportFINANCIAL SUMMARYFinancial SummaryOperations 20232022202120202019Net

85、 sales$2,065/12,043/71,661/91,247/31,314/6Operating income$262/4257/2189/2130/5 127/1Operating income as a percent of sales%12/712/611/410/5 9/7Balance Sheet Debt net of cash,equivalents and investments(1)$15/4170/2148/0(36/6)50/6Shareholders equity$1,206/71,067/9946/5847/8 796/5Net debt as a percen

86、t of equity%1/315/915/6(4/3)6/4Cash Flow Net cash fmow from operating activities$315/7101/7129/8211/8177/7Capital expenditures,net(2)$39/941/929/122/821/0Acquisitions(3)$35/65/0235/755/920/8Investment Data Return on average invested capital(4)%17/216/413/812/612/0Weighted average common shares outst

87、anding 46/947/047/046/746/8Income Per Share Per weighted average common share,assuming dilution$4/113/973/252/142/03Dividends per common share$0/90000/78000/70000/62000/5800(1)Debt,net of cash and cash equivalents is comprised of total debt of$100.4,$216.0,$188.5,$94.5,and$115.0 less cash and cash e

88、quivalents of$85.0,$45.8,$40.5,$130.8,and$64.4 in 2023,2022,2021,2020,and 2019,respectively(2)Capital expenditures,net is comprised of additions to property,plant,and equipment of$41.4,$41.9,$30.1,$22.8,and$21.9 less proceeds from sale of property,plant,and equipment of$1.5,$0,$1.0,$0,and$0.9 in 202

89、3,2022,2021,2020,and 2019,respectively(3)Acquisitions is comprised of cash paid for acquisitions,net of cash acquired of$34.8,$1.2,$235.7,$55.9,and$20.8 plus deferred payments for acquisitions of$0.8,$3.8,$0,$0,and$0 in 2023,2022,2021,2020,and 2019,respectively(4)A reconciliation of the calculation

90、of ROIC can be found in the Investor Presentation on the Investor Relations page of the Franklin Electric website(in millions,except per share amounts and ratios)FINANCIAL SUMMARYEarnings per Share:$4/11($millions)0/51/51/02/03/04/02/53/520192020202120222023Net Sales:$2,065/1($millions)9005003001300

91、1700210020192020202120222023Net Income:$193/3($millions)408020120 14060100160 180 2002019202020212022202326|2024 Sustainability Report2023 Highlights$2.1 BRECORD SALESFRANKLIN ELECTRICInvestor Relationswww/franklin-electric/com/company/investor-relations$4.11RECORD EARNINGS PER SHAREBusiness UnitSal

92、esOperating IncomeWater SystemsRecord$1,204 MRecord$197 MFueling Systems&Grid Solutions$297M$93 MHeadwater CompaniesRecord$673 M$34 M2024 Sustainability Report|272024 Sustainability Report|2728|2024 Sustainability ReportOPERATIONSIn our engineering centers and test labs around the world,each one of

93、our more than 40,000 products is engineered to provide a proven and dependable solution to our customers challenges/From our global headquarters in Fort Wayne,Indiana,to our more than three million square feet of manufacturing and distribution facilities across the globe,the same uncompromising qual

94、ity standards apply/OPERATIONS MAP30|2024 Sustainability ReportEvery day,the worlds population uses approximately three trillion gallons of fresh water and consumes approximately one billion gallons of fuel/And,every day,Franklin Electric produces 20,000 pumps,motors,drives and controls that make th

95、at possible/We understand how essential our products are to peoples lives and livelihoods/Together we assure their reliability and availability to our millions of customers around the world/OVER 6,500 EMPLOYEES LOCATED IN 18 COUNTRIES GLOBAL HEADQUARTERSMANUFACTURING FACILITIESOFFICE/WAREHOUSE FACIL

96、ITIES2024 Sustainability Report|31OPERATIONSWater SystemsWater is critical to communities around the world/The vast majority of the worlds fresh water supply is held in underground aquifers,and Franklin Electric products are a trusted solution to bring that water to the surface/Franklin Electric lev

97、erages its expertise in motor applications to grow and serve a number of difgerent markets/Franklin ofgers pumps,motors,drives and controls for use in a wide variety of residential,commercial,agricultural,industrial and municipal installations for both clean and gray water applications,as well as wa

98、ter treatment systems for residential and commercial use/At Franklin Electric,innovation and sustainability work together to enhance our R&D process/We see these as catalysts that drive the development of solutions that add value to global markets/Providing effjcient products of the highest quality

99、will continue to be a cornerstone of our success and growth/From our Global Headquarters and Engineering Design Center,we collaborate with teams around the globe to meet the needs of our customers and markets/US&CanadaFort Wayne,IndianaTo meet the tough water demands of Latin America,our strategic d

100、istribution partners and centrally located distribution centers ofger complete groundwater pumping systems for submersible and surface pumps,submersible motors,and a robust family of electronics/Latin AmericaLinares,MexicoWater Systems:Regions32|2024 Sustainability ReportOfgering a full line of subm

101、ersible motors and pumps that can be used for residential,commercial and industrial pumping applications,our EMEA business is responsible for sales,distribution,and service in Europe,the Middle East and North Africa/EMEADueville,ItalyOur presence in this region allows us to bring our expertise,along

102、 with a complete line of high quality submersible and surface pumps and motors,to key developing markets throughout southern Africa/Southern AfricaJohannesburg,South AfricaThe Asia-Pacifjc(APAC)region includes both mature and emerging markets,and we serve these diverse markets,and others around the

103、world,from our manufacturing facilities and sales offjces in Korea,Thailand,Singapore,China and Australia/Asia-PacifjcSuzhou,China2024 Sustainability Report|33OPERATIONSWater Systems:BrandsLeading-edge hydraulic engineering makes our centrifugal Pioneer Pumps the highest performing pumps on the mark

104、et/These pumps provide better fmow,higher head,greater effjciency and unparalleled service designed to meet unique challenges/Franklin Electric ofgers pumps,motors,drives,and controls for use in a variety of residential,commercial,agricultural,industrial and municipal applications/Our principal mark

105、ets include clean water systems,water transfer and gray water systems/Franklin Electric ofgers a range of wastewater,centrifugal and booster pumps confjgurable to meet our customers specifjc demands,ofgering the advantage of quality,availability,sizing,design and customized confjguration support/Pio

106、neer PumpFranklin ElectricEngineered Products34|2024 Sustainability ReportIn many remote locations around the world,operating submersible pumps and motors is challenging due to unavailable or unreliable power sources/We are committed to developing new systems for renewable energy while using our pro

107、ven system technologies/Solar Pumping SystemsThe Red Lion brand is an integral part of the retail hardware pump industry/We continue to use extensive market research to innovate and grow our product line/The Little Giant brand specializes in the water transfer market with products including wastewat

108、er,sump,sewage,effmuent,dewatering,condensate,magnetic drive,and utility pumps;as well as low pressure sewer systems,and water garden pumps and products/Red Lion PumpsLittle Giant Pumps2024 Sustainability Report|35OPERATIONSAqua Systems is a direct-to-consumer retail water treatment provider based o

109、ut of Avon,Indiana,that also has an extensive dealer network providing equipment to homeowners/These products are all modular with easily swappable parts to reduce waste and complexity on replacement/Aqua SystemsWater TreatmentPuronics provides whole-house water softener treatment systems that fjlte

110、r drinking water to improve the quality of municipal or well water/Products include residential units,under-counter options,full commercial systems,solar-powered units,and even no-salt tank options/Hellenbrand provides water treatment systems to both the dealer and commercial network to improve the

111、quality of municipal or well water/Hellenbrand is known for quality products,expert training and technical support/PuronicsHellenbrand:Brands36|2024 Sustainability ReportAvid Water Systems is a supplier of water treatment equipment to the plumbing and well supply trade/Avid ofgers a complete line of

112、 innovative fjlters,softeners and reverse osmosis systems/These products are available through licensed plumbers,well drillers and pump installers nationwide/Sterling Water Treatment ofgers a wide range of components including both residential and commercial water treatment control valves/Proudly ma

113、nufactured in Indiana,USA,Sterling products are highly effjcient,easy to service,and provide lifetime value to customers/Avid Water SystemsSterling Water TreatmentWaterite is a manufacturing and distribution company that specializes in products for the water treatment,conditioning and purifjcation i

114、ndustry/Its national Canadian network of distributors and water quality specialists supply the residential,industrial,institutional and municipal markets/Waterite2024 Sustainability Report|37OPERATIONSHeadwater Companies,LLC is a collection of leading groundwater distributors/This collective and ves

115、ted group ensures a focused groundwater distribution organization that delivers quality products and leading brands to the U/S/market,providing contractors with the availability and service they demand to meet their application challenges/Headwater Companies38|2024 Sustainability ReportAt Franklin F

116、ueling Systems,everything we do focuses on providing petroleum marketers,distributors,installers and maintenance personnel with the optimal Total System Solution/We provide several solutions that ofger environmental protection,including our line leak detection and Corrosion Control products/Sophisti

117、cated,high-value asset monitoring solutions for utility applications and advanced battery testing and monitoring for mission-critical standby power applications/To meet demands for integrated sustainable support,our Energy Systems segment is comprised of the Fueling Systems,Grid Solutions and EV Sys

118、tems business units/These businesses provide innovative products,services and system solutions for the movement of fuel and the monitoring of critical devices that protect human health and the environment,while delivering the lowest total cost of ownership/Consistent with the Companys commitment to

119、safety,we are driven to be the world leader in equipment training for installers and maintenance personnel,utilizing the FFS PRO and GRID PRO platforms to deliver the premier global online and live training/Our products make a difgerence in industries such as retail fueling,petroleum,telecom,data ce

120、nters and electric utilities/Fueling Systems,Grid Solutions and EV Systems2024 Sustainability Report|39To build the almost 20,000 products produced by Franklin Electric each day,we must have a robust and effjcient supply chain,focused on quality and availability/Supplies:Country of Origin(by spend)W

121、ater SystemsFueling SystemsManufacturing FacilityManufacturing:Facility LocationsMoreLessAPPROXIMATELY 3,300SUPPLIERSAPPROXIMATELY40,000PARTS&COMPONENTS18MANUFACTURINGLOCATIONSFueling Systems1 United States,$47M6 Switzerland,$2M2 United Kingdom,$9M7 India,$2M3 Germany,$4M8 Taiwan,$1M4 China,$4M9 Vie

122、tnam,$1M5 Italy,$3M10 Belgium,$600KWater Systems1 United States,$215M 6 Taiwan,$22M2 China,$103M7 Germany,$20M3 Mexico,$43M8 Turkey,$17M4 Brazil,$30M9 Multiple Countries,$9M*5 Italy,$30M10 South Africa,$7MWater SystemsUnited StatesBrazilCzech RepublicSouth AfricaItalyChinaTurkeyIndiaMexicoFueling Sy

123、stemsUnited StatesChinaMexicoUnited KingdomIndiaSUPPLY CHAIN+200 since 2022*Cost not attributed to a single country40|2024 Sustainability ReportWater SystemsSuppliesManufacturingHeadwater Companies U/S/Locations&Number of BranchesThird Party CustomersMarketsSpend by Category(in order)1Water Treatmen

124、t Components8Components,Electronics15Bar Stock,Rod&Extrusions2Engines9Wire16Elastomers&Seals3Finished Goods,Purchased Complete10Components,Specialized 17Chemicals4Metal Products11Light Fabrications18Fasteners&Hardware5Motors,Electric12Plastics19Bearings6Castings13Electrical20Outside Operations7Heavy

125、 Fabrications14Packaging MaterialProduct Types&Number of ProductsVertical Pumping Systems15,670Wastewater Pumping Systems1,229Water Treatment11,319Large Centrifugal Pumping836Surface Pumping Systems7,087Condensate&Specialty Pumps396Electronics&Controls2,341TOTAL:38,878 SKUsWestMidwestEast2M Company1

126、8Headwater Wholesale8Drillers Service,Inc/19Western Hydro,LLC13Valley Farms Supply8Blake Group13Gicon Pumps&Equipment6Milan Supply Co/5Headwater Engineered Systems1TOTAL:91Headwater Corporate Offjce:Littleton,ColoradoAgricultureMunicipalCommercialResidentialIndustrial2%1%29%18%40%6%3%2024 Sustainabi

127、lity Report|41Energy SystemsSuppliesManufacturingDistributionMarketsProduct Types&Number of ProductsFueling4,748Grid Solutions308TOTAL5,056 SKUsOPERATIONSFueling SystemsGrid SolutionsNumber of Franklin Fueling Systems Distributor LocationsNorth America943Middle East24Asia214South America24Oceania188

128、Caribbean4Europe64Central America1Africa26TOTAL:1,488Number of Grid Solutions Distributor LocationsNorth America260South America4Asia31Middle East3Europe11Oceania1TOTAL:31094%6%Spend by Category(in order)1Light Fabrications8Components,Electronics 15Metal Products2Plastics9Chemicals16Bar Stock,Rod&Ex

129、trusions3Components,Specialized10Tubing17Motors,Electric4Elastomers&Seals11Packaging Material18Bearings5Fasteners&Hardware12Castings19Finished Goods,Purchased Complete6Electrical13Wire20Sintered7Outside Operations14Insulation42|2024 Sustainability ReportPromoting a Sustainable Supply ChainTo increas

130、e effjciency and promote a sustainable supply chain,we focus on shortening the supply chain through localization efgorts that align with our global manufacturing footprint/This reduces our environmental impact from the transportation of those goods/We also focus on manufacturing products that are bu

131、ilt with high quality components to increase durability and reliability,and result in fewer product issues and replacements/Were committed to exploring the feasibility of returnable packaging,specifjcally targeting returnables related to heavy fabrication parts/As noted below in our Supplier Complia

132、nce section,our collaboration with Assent Compliance helps to reduce the risk of purchasing from suppliers who do not have a focus on environmental or social sustainability impacts/Supplier ComplianceConfmict MineralsAn important factor in supply chain sustainability is responsible sourcing practice

133、s,particularly the sourcing of minerals used in our products/Tin,tungsten,tantalum and gold(3TG),commonly known as“confmict minerals,”are associated with human rights violations in the Democratic Republic of the Congo(DRC)and neighboring countries/Franklin Electric communicates its expectation that

134、our suppliers have policies and procedures in place to ensure that any 3TGs used in the production of the products sold to Franklin Electric are DRC confmict-free/This means that the products must not contain 3TGs that directly or indirectly fjnance or benefjt armed groups in the covered countries/F

135、ranklin Electric has invested in Assent Compliance,a compliance management solution,to collect,standardize,validate and communicate confmict minerals data from our supply chain/Supplier Code of ConductTo ensure that our suppliers conduct business with the same standards of integrity and compliance w

136、e hold ourselves to,we maintain and enforce a Supplier Code of Conduct that applies to all direct suppliers/This Supplier Code of Conduct is based on industry and internationally accepted principles such as the United Nations Guiding Principles on Business and Human Rights and the OECD Due Diligence

137、 Guidance/Franklin Electric reserves the right,upon reasonable notice,to audit supplier compliance with our policies and applicable laws/The Supplier Code of Conduct is reviewed annually to ensure it continues to align with industry best practices/Violation of this code will be considered a breach o

138、f suppliers other agreements with Franklin Electric/2024 Sustainability Report|43OPERATIONSMoving ForwardOur Global Product Supply team is focused on sustainability initiatives and is working collaboratively to improve our environmental,economic and social metrics/We identifjed the following as faci

139、lity improvement opportunities that further our sustainability goals/This past year,we completed these initiatives in several of our facilities/ESG Highlights:Progress Toward our Vision1.3100%25%OPTIMIZATION&EFFICIENCYREFRESHED&MODERNIZEDUPGRADES&IMPROVEMENTSMILLION GALLONSLED LIGHTINGLESS WITHDRAWA

140、LIn Linares,Mexico,seven water tanks were installed to capture water from air conditioning units/The collected water is used for sanitary purposes,saving over$57,000 and 1/3 million gallons of water/In Linares,Mexico,the new compressor running schedule allows for run time reductions of 36 hours a we

141、ek/Thats a 78-day difgerence year-over-year/Wilburton,Oklahoma completed the installation of LED lighting in 100%of the facility/The result is approximately$25,000 in annual savings and an approximate 300 kWh reduction in energy/Fort Wayne,Indiana headquarters cleaned the heat exchangers,resulting i

142、n 25%less groundwater withdrawal/In Canby,Oregon,high Volatile Organic Compounds(VOC)paint was replaced with a lower VOC paint throughout the facility/Our foundry in Araquari,Brazil reduced GHG emissions by 38%by installing a new furnace along with other improvements/44|2024 Sustainability ReportLig

143、hting Smart LED Integrated light controls with occupancy sensorsHVAC Systems Smart thermostats Regular maintenance on outdoor condenser units Filter changes Adjusting thermostats+/-a few degrees depending on the season Window UV protectionAir Compressors Install variable frequency drives“Right-size”

144、units and variable speed control compressors Pressure optimization Repair air leaks/regular maintenance Install storage tanks Review intake air quality and humidity Upgrade controls and monitoring systemsWater Consumption Ensure we have“closed loop”systems where possible Capture water(condensation)f

145、rom our HVAC units to re-use for sanitary use(urinal fmushing)Upgrade to“low fmow”toilets Rain water collection Sensing faucetsWaste-Stream Audits Dumpster dive to assess waste generation Determine types and quantity Identify opportunities Aggressively tackle hazardous waste Work toward a zero landf

146、jll certifjcation/focus on recyclingFurnace/Oven/Boiler Tuning Regular air/fuel checks Filter replacement schedules Inspect heating equipment for energy loss due to leaks and improper settings Infrared heaters2024 Sustainability Report|45Franklin Electric is committed to protecting the health and sa

147、fety of our employees,customers and end users/We actively promote a culture in which we continually train employees on health and safety best practices with the goal of zero work-related injuries/We encourage employees to not only look out for themselves,but also for each other/Ultimately,our goal i

148、s to minimize potential safety risks in order to protect our people and assets,and to better position Franklin Electric for future growth/There are a number of risks inherent in producing,assembling,distributing and servicing our products/In order to achieve our goal of zero work-related injuries,we

149、 work diligently to identify and reduce these risks through awareness,training and clear procedures/An Environmental,Health and Safety(EHS)Committee meets at least monthly to conduct assessments of reported incidents,review and revise policies and procedures,and communicate best practices across loc

150、ations/Safety metrics are reviewed with our CEO and other senior leadership at least monthly/COMMITMENT TO SAFETY46|2024 Sustainability ReportLocationHoursTurkey3,453Mexico1,797Czech Republic1,625South Africa407Italy1,277APAC2,985Germany360South America1,931UK377North America11,3052023 TOTAL25,517Tr

151、aining Hours by LocationSafety Performance ImprovementTotal Recordable Rate(TRR)Work-related injury or illness requiring medical treatment beyond fjrst aid,days away from work,restricted work,or transfer to another job/Lost Time Rate(LTR)Work-related injury or illness that results in days away from

152、work/Days Away Restricted Transferred(DART)Work-related injury or illness that results in days away from work,restricted work,or transfer to another job/Rates are based on 100 employees working 40 hours per week for 50 weeks out of the year.2021202320221/41/21/00/90/80/60/50/70/921/510/50Incident Ra

153、tes,Year to Date2022 Industry Averages2.0DART1.2LTR2.9TRRTRRDARTLTRIn the interest of transparency,the 2021 data published in our last Sustainability Report has been revised to present the most accurate information available as we continue to improve our data gathering and validation processes.2024

154、Sustainability Report|47OPERATIONSThe Safety Award Program recognizes employees and facilities that have achieved outstanding safety and health performance in the continual journey to achieve and sustain Goal Zero/This program provides the opportunity to celebrate and communicate health and safety p

155、ractices throughout the company/The program has two types of awards:the Milestone Achievement Award,which is presented to facilities that reach a certain number of workhours or years with lost time free performance,and the Excellence in Safety Award,which is presented annually to facilities that dem

156、onstrate outstanding safety performance based on several criteria,such as incident rate performance and achievement of EHS goals and objectives established through the EHS Scorecard activities/Milestone Achievement Awards for Lost Time-Free Performance(2023)were awarded to the following facilities:S

157、outh America Operations,14 manufacturing and distribution facilities Madison/Deforest,Wisconsin,USA manufacturing facilitySafety Award Program48|2024 Sustainability ReportExcellence in Safety AwardsIn support of the notable achievement of the Excellence in Safety award,the Franklin Electric Charitab

158、le and Educational Foundation,Inc/granted a total of$77,500 USD to local charitable organizations/These organizations with a focus on promoting safety in the community were selected by each facility team/The following donations were made in 2023:Location&Facility TypePerformance ResultsCharitable Co

159、ntributionTotal Recordable RateLost Time RateEHS Scorecard ActivitiesAmountCauseMonte Azul Paulista,Brazil(Manufacturing)0/90/099%$10,000Local hospital to purchase intensive care equipmentJoinville,Brazil(Manufacturing)0/40/0100%$10,000Local hospital to renovate an administration roomSuzhou,China(Ma

160、nufacturing)0/40/480%$5,000Local worker safety foundation to fund training,drills,&assessmentsCedegolo,Italy(Manufacturing)0/00/0100%$5,000Local volunteer rescue team to purchase equipmentDueville,Italy(Manufacturing)0/60/697%$10,000Four separate local organizations to fund initiatives to aid the di

161、sabled,the poor&the elderlySebenza,South Africa(Manufacturing)0/50/591%$10,000Local soup kitchen and local hospice to fund operationsBolton,Canada(Distribution)0/00/098%$2,500Brain injury foundation to fund scholarshipsWinnipeg,Canada(Mfg&Distr)0/00/087%$2,500Local hospital to purchase lifesaving eq

162、uipmentLinares,Mexico(Manufacturing)0/60/495%$10,000Local Red Cross and fjre department to fund building maintenance and purchase equipmentFort Wayne,USA(HQ/Lab)0/00/099%$10,000Local police&fjre organizations to fund renovations of child safety education villageSarasota,USA(Manufacturing)0/00/092%$2

163、,500Local Boys and Girls Club to fund operations2024 Sustainability Report|4950|2024 Sustainability ReportCOMPLIANCE WITH LAWSWe aspire to be the industry leader that endures,thereby providing genuine value to our customers,employees and stakeholders/Franklin Electric takes a strong and unwavering p

164、osition on ethics,business conduct and compliance with laws/COMPLIANCE WITH LAWSSupplier Code of ConductWe expect our suppliers to acknowledge a Supplier Code of Conduct which prohibits bribery,corruption and forced labor,and requires suppliers to abide by local health,safety and environmental stand

165、ards/More information regarding our commitment to a sustainable supply chain can be found in the“Supplier”section/Code of ConductOur Code of Conduct is our commitment to doing business with honesty and integrity/All employees of Franklin Electric have a duty to act with integrity and to treat our co

166、lleagues,customers and suppliers with dignity and respect/Integrity requires,among other things,being honest,ethical and candid/The Code of Conduct requires that each director,offjcer and employee:Act ethically,consistent with our policies Observe all government rules and regulations Adhere to a hig

167、h standard of business ethicsThe Code of Conduct provides guidance for ethical decision-making and outlines our responsibility to abide by the law/The Code of Conduct touches on many topics and is enhanced by separate policies we require employees to acknowledge,including policies covering Anti-Brib

168、ery and Anti-Corruption,Environmental Matters,and Anti-Discrimination/All employees are provided training on the Code and other compliance policies through a combination of in-person and online programs/Targeted training is conducted with specifjc groups based on risk and need/Read the Full Code of

169、ConductCode of Conduct-PDFRead the Full Supplier Code of Conductwww/franklin-electric/com/company/for-our-suppliersEthics and Integrity Hotlineethics/fele/comEthics and IntegrityOur Code of Conduct outlines the ways an employee or stakeholder can report a concern or ask a question,and employees are

170、trained to understand that each of them has a duty to speak up/We encourage employees to speak with their supervisor,the Companys Compliance Offjcer,or a Human Resources representative if they need assistance or to report a concern/The Company also maintains an Ethics and Integrity Hotline,which is

171、a third-party service providing 24/7 confjdential reporting over the phone or through a website portal/Reporting assistance is provided in over 100 languages/Individuals may report anonymously,where permitted by law/52|2024 Sustainability ReportForced LaborFranklin Electric will not tolerate,engage

172、in or support human traffjcking,forced labor or child labor in any of our business practices,including our international supply chain/It is our policy not to enter a business relationship with any supplier that uses or is suspected of using any form of these practices at any stage of the production

173、process or at any point in its own supply chain/If it is suspected that a supplier or any of the suppliers subcontractors or other business partners is engaged in human traffjcking or using forced or child labor,we will commence an investigation and take necessary steps to ensure compliance with our

174、 Human Rights Policy,including termination of the supplier relationship if compliance is not achieved/We are fully committed to ensuring that we source product in compliance with all laws and in a socially responsible manner/Franklin Electric employees receive recurring training,appropriate to their

175、 responsibilities,to enable them to fulfjll their obligations in accordance with this policy/We also endeavor to provide training on forced and child labor prohibitions to our direct suppliers and,to the extent possible,suppliers beyond the fjrst tier in the supply chain/Read the Full Forced Labor P

176、olicyProhibition on Human Traffjcking,Forced Labor and Child Labor-PDFRead the Full Human Rights PolicyHuman Rights Policy-PDFAnti-Corruption and Anti-BriberyWe strive to be an industry leader,but success without fair competition is not acceptable/We operate globally and have a responsibility to act

177、ively address the risks of corruption and bribery,including in our supply chain/We maintain high ethical standards throughout the value chain/Franklin Electric does not tolerate bribery or corruption by any person associated with our company/Generally speaking,our Anti-Bribery Policy prohibits the m

178、aking of improper or unethical payments to government offjcials anywhere in the world/In some cases,the laws of the United States prohibit activities that may not be illegal under the laws of the countries where the activity occurs/Other business activities may raise concerns under both U/S/and loca

179、l laws/For this reason,and as a general matter,we must not act in a manner in any country that would violate either U/S/or local law/Read the Full Anti-Corruption PolicyAnti-Corruption Policy-PDFDiscriminationTo ensure our commitment to the principles of anti-discrimination and in furtherance of our

180、 commitment to a diverse and inclusive workplace,we prohibit discrimination in hiring,promotion,demotion,treatment during employment,rates of pay,and termination of employment on the basis of race,sex,sexual orientation,gender identity,age,color,religion,national origin,disability,citizenship status

181、,Veteran status,or any other category protected under federal,state,or local law/Read About Equal Employment OpportunityEqual Employment Opportunity-PDF2024 Sustainability Report|53Environmental ComplianceFranklin Electric holds a strong commitment to both environmental performance and compliance/As

182、 a manufacturer with a widespread global footprint,this means that we must uphold this commitment at over 100 locations around the world/As part of our commitment to integrity,we have internal procedures and guidelines that govern the manner in which employees must handle,use,store,transport and dis

183、pose of environmentally sensitive materials/Our goal is to develop and maintain an environmental management system that sets high standards on pollution prevention,resources preservation and compliance with applicable laws/We are committed to:Communicating sound environmental policies and practices

184、Minimizing waste through source reduction,reuse and recycling Utilizing energy-effjcient measures in all facilities Reducing and preventing pollution where possible Establishing and reviewing environmental objectives annually,including,to an extent,practicable key performance indicators Reviewing ou

185、r environmental management system for continuous improvement opportunities Efgectively communicating environmental performance to external stakeholdersConfmicts of Interest and Related Party TransactionsWe believe that each of us has a duty to avoid confmicts of interest,including any activity,enter

186、prise,relationship,or association which might compromise or interfere with the obligations of Franklin Electric/Confmicts of interest and related party transactions are reported to the Compliance Offjcer and Internal Audit,and are reviewed and approved,as required,by the Audit Committee of the Board

187、/Read the Full Environmental Policy StatementEnvironmental Policy Statement-PDFRead the Full Confmicts of Interest PolicyConfmicts of Interest Policy-PDFNon-Retaliation PolicyWe want our employees to feel safe when reporting behavior that may confmict with company policy/No retaliation of any kind i

188、s permitted against any employee for complaints or concerns made in good faith/No employee or other person acting on behalf of Franklin Electric who is attempting to comply with our reporting policies will be:Dismissed or threatened with dismissal Disciplined,suspended or threatened with either Pena

189、lized in the terms or conditions of employment Intimidated or coercedRead the Full Non-Retaliation PolicyNon-Retaliation Policy-PDFCOMPLIANCE WITH LAWS54|2024 Sustainability ReportCybersecurityData and information systems are a key part of how Franklin Electric delivers value to our customers,employ

190、ees and stakeholders/Franklin Electrics cybersecurity program is designed to protect our customers,employees,partners,infrastructure and systems/Franklin Electrics cybersecurity program and approach is overseen by our Board of Directors and Senior Leadership/The Board of Directors and Senior Leaders

191、hip review the strategy,tools,metrics,and latest trends afgecting cybersecurity/Franklin Electric utilizes the National Institute of Standards and Technology(NIST)Cybersecurity Framework as the foundation for our cybersecurity strategy and approach/Third parties are engaged to assess Franklins cyber

192、security posture and adherence to the NIST Cybersecurity Framework/Strategies and initiatives are developed based on these assessments/One key area for the Cybersecurity Program is employee cybersecurity education/Our employees play an important role in cybersecurity and complete mandatory cybersecu

193、rity training receive phishing attack simulations,educational events,and news bulletins/Franklin Electric is committed to protecting the data of our customers,employees and partners/Our data protection and privacy program is designed to adhere to and adapt to global privacy and data protection laws/

194、Visit franklin-electric/com/policies to read these and more policies in full/Read the Full Cybersecurity Risk StatementCybersecurity Response Statement-PDFCompliance TrainingIn 2021,we introduced online compliance training to our global workforce utilizing our learning management system/This allowed

195、 us to provide tailored training in employees native languages and enhance employee understanding of compliance policies/2024 Sustainability Report|5556|2024 Sustainability ReportENVIRONMENTAL IMPACTAt Franklin Electric,we manufacture and distribute products that improve lives and benefjt society/In

196、vesting in our manufacturing processes ensures that we deliver value to our customers and foster growth within the business/We are committed to decoupling business growth from negative environmental impact/We dedicate signifjcant resources to research and development,focusing on improvements to the

197、effjciency of our products,all of which ease the reliance on fossil fuels/For example,our investment in innovation led to the development of our solar-powered Fhoton Drive,which provides a high-quality,sustainable solution for agricultural and commercial markets/ENVIRONMENTAL IMPACTWater SystemsPoll

198、ution of groundwater aquifers represents a clear danger to human health,the environment and our business/We are committed to lowering our own environmental impact by mandating clean,sustainable manufacturing and distribution processes,and by designing products that protect against environmental dama

199、ge/Additionally,Franklin Electric is a supporting member of the Water Systems Council,an organization that encourages the sustainable design and use of wells in the United States,and the Water Quality Association,a not-for-profjt association that promotes education and professional standards for the

200、 water treatment industry/We work through the Water Systems Council and the Water Quality Association to address policy issues which promote sensible regulations for small water systems and water treatment systems development/This relationship also allows us to support a sustainable approach to grou

201、ndwater and source water management and to water treatment/Fueling SystemsOur fueling business pioneered advances in petroleum piping and containment systems,electronic leak detection,and overfjll protection,all of which make it possible for providers to safely meet the worlds liquid fuel needs/Thro

202、ugh our FFS PRO:University program,we provide the industrys premier training for petroleum equipment installation professionals/We focus not only on training and certifjcation,but we also aim to be the industry leader in fueling system safety and continued learning/FFS PRO:University takes a system

203、approach to training,giving installers a complete view of a fueling system and a more comprehensive understanding of how one system component afgects another with the goal of eliminating installation errors that could negatively impact the environment/58|2024 Sustainability ReportA 122 solar panel p

204、roject will be coming to our Fort Wayne headquarters in 2024 with an estimated 2,257,000 kWh annual output/This will bring a 60%reduction to HQs annual dependence on non-renewable sources of electricity and an expected payback on investment in just over six years/We are excited to review whether sim

205、ilar installations are feasible at other global facilities/Conservation in ActionHQ Solar Panel ProjectPower Purchase AgreementFranklin Electrics three manufacturing facilities in Brazil will soon receive electrical power directly from the energy generator,rather than a local energy company/The use

206、of the generator ensures that 100%of the energy provided is derived from renewable resources such as solar and wind,for which we receive a yearly certifjcation/All three manufacturing facilities were converted in 2023 and the benefjts of these upgrades are refmected in our Environmental Impact data/

207、New Induction Furnace in AraquariThe furnace in the Araquari manufacturing facility was upgraded from natural gas to an induction furnace that utilizes electricity/Our 0/4 Kg carbon/ton of iron emissions was reduced by 38%in 2023/In this case,electrical power releases less carbon than natural gas an

208、d results in a reduced carbon footprint for this facility/Araquari,Brazil:Operational Improvements in Brazil2024 Sustainability Report|59Environmental Impact DataThe following pages provide emissions and resource consumption data for 2023 and present the data as a measure of Intensity/“Intensity”is

209、a measurement of the total usage of each resource per U/S/dollar of revenue/In 2023,our global manufacturing revenue totaled$1,500,200,000 and our total revenue was$2,173,500,000/In prior Sustainability Reports,we published data for our manufacturing facilities and provided Intensity data as a measu

210、re of our total manufacturing revenue only/In 2023,we invested in tools and resources that allowed us to expand our data collection and reporting capabilities across our organization/With the goal of increased transparency for our stakeholders in mind,we now provide environmental impact data that in

211、cludes all of our facilities across the globe/For 2023,we provide both a year-over-year summary of the Intensity values for our manufacturing operations,as compared to 2022,and the 2023 resource consumption data and Intensity values for our global operations/We believe this provides our stakeholders

212、 with a more complete view of the impact of our operations and will allow us to present information on improvements we make to our operations worldwide/Managing Climate Risk Efgectively We invested signifjcant time and resources into data collection efgorts in order to publish environmental impact d

213、ata in our fjrst Sustainability Reports/We wanted to ensure that we had a full understanding of the current environmental impacts of our global operations before establishing and committing ourselves to GHG emissions reduction targets/Our viewpoint is that a general commitment to reduce environmenta

214、l impacts by a set percentage,without disclosing specifjc plans to achieve those reductions,fails to account for the strategic growth that is necessary for long-term operational and fjnancial stability that benefjts all stakeholders/Through extended discussions with the senior leadership team during

215、 our long-range planning processes,we identifjed meaningful internal targets for reducing the intensity of our environmental footprint/ENVIRONMENTAL IMPACT60|2024 Sustainability ReportGREENHOUSE GAS EMISSIONSSourceMetric TonsIntensity*Metric Tons/$USDTOTAL CO2 EMISSIONS*18,992/363860/00000874CO2 fro

216、m Diesel5,226/0185190/00000240CO2 from Gasoline7,850/645390/00000361CO2 from Natural Gas5,515/6748340/00000254CO2 from Propane400/02511280/00000018ELECTRIC POWER USAGESourcekWhIntensity*kWh/$USDTOTAL ELECTRIC POWER USED53,196,020/000/024From Renewable Sources16,837,836/390/008Generated On-Site393,98

217、4/000/0002Greenhouse Gas EmissionskWhIntensitykWh/$USDFrom Electric Power Used22,661/042780/0000104WATER USAGESourceGallonsIntensity*Gallons/$USDTOTAL WATER USAGE117,981,951/20/05428Wastewater Discharged to the Environment87,889,235/770/04044WASTE GENERATIONSourceMetric TonsIntensity*Metric Tons/$US

218、DTOTAL WASTE GENERATED20,874/020/00000960Hazardous Waste Generated1,276/330/00000059Non-Hazardous Waste Generated13,248/300/00000610Non-Hazardous Waste Recycled6,349/400/00000292All Facilities,202329%Natural Gas2%Propane41%Gasoline28%Diesel32%Renewable1%Generated On-Site68%Non-Renewable74%Discharged

219、 to the Environment6%Hazardous Waste30%Non-hazardous waste is recycled63%Non-Hazardous Waste*Measured using total Net Sales before eliminations.2024 Sustainability Report|61GREENHOUSE GAS EMISSIONSSource Measured using Revenue for FE Manufacturing Segment All GHG CO2 equivalent calculations were cal

220、culated using established U.S.EPA conversion factors.All air emission data is calculated based on fuel usage and was not physically measured.85%Natural Gas4%Propane3%Gasoline8%DieselSource20222023Metric TonsIntensityMetric Tons/$USDMetric TonsIntensityMetric Tons/$USDIntensityPercent ChangeTOTAL CO2

221、 EMISSIONS5,860/630/000003934,656/120/00000310-33%CO2 from Diesel366/240/00000025353/630/00000024-3%CO2 from Gasoline140/150/00000009135/330/00000009-3%CO2 from Natural Gas5,161/400/000003463,983/800/00000266-23%CO2 from Propane192/840/00000013183/360/00000012-5%ENVIRONMENTAL IMPACTManufacturing Fac

222、ilities62|2024 Sustainability Report Measured using Revenue for FE Manufacturing SegmentELECTRIC POWER USAGESource31%Renewable1%Generated On-Site68%Non-RenewableSource20222023kWhIntensitykWh/$USDkWhIntensitykWh/$USDIntensityPercent ChangeTOTAL ELECTRIC POWER USED50,448,6800/03447,798,162/440/032-5%F

223、rom Renewable Sources13,796,1660/00914,903,601/880/0108%Generated On-Site315,0800/0002393,984/000/000325%Greenhouse Gas EmissionskWhIntensitykWh/$USDkWhIntensitykWh/$USDIntensityPercent ChangeFrom Electric Power Used21,8230/000014620,123/210/0000134-8%Manufacturing Facilities2024 Sustainability Repo

224、rt|63WATER USAGEUsage77%Discharged to the Environment Measured using Revenue for FE Manufacturing SegmentUsage20222023GallonsIntensityGallons/$USDGallonsIntensityGallons/$USDIntensityPercent ChangeTOTAL WATER USAGE156,656,5200/10504113,925,684/360/07594-27%Wastewater Discharged to the Environment122

225、,101,1440/0818787,889,235/770/05859-28%ENVIRONMENTAL IMPACTManufacturing Facilities64|2024 Sustainability ReportWASTE GENERATION Measured using Revenue for FE Manufacturing SegmentTotal GeneratedHighlights8%Hazardous Waste36%of all non-hazardous waste is recycled56%Non-Hazardous WasteType20222023Met

226、ric TonsIntensityMetric Tons/$USDMetric TonsIntensityMetric Tons/$USDIntensityPercent ChangeTOTAL WASTE GENERATED20,7800/0000139316,642/660/00001109-20%Hazardous Waste Generated1,2390/000000831,276/330/000000853%Non-Hazardous Waste Generated11,6790/000007839,340/040/00000623-20%Non-Hazardous Waste R

227、ecycled7,8620/000005276,026/290/00000402-23%Manufacturing FacilitiesAraquari,Brazil Foundry introduced a new process to reuse sand for their molds which signifjcantly reduced the amount of waste generated/2024 Sustainability Report|6566|2024 Sustainability ReportPRODUCT SPOTLIGHTSFranklin Electric i

228、nvests heavily in innovative new products,meeting customer needs and solving industry challenges every day/We are driven to evaluate new technologies and develop new products,services and processes,often focused on energy effjciency and environmental protection/Our drive to innovate is at the core o

229、f what we do/PRODUCT SPOTLIGHTSHigh Effjciency VSI Stainless Steel Cast Pump SeriesHigh-Effjciency Borehole Systems Engineered for Excellence and SustainabilityEnergy consumption is becoming a decisive factor when selecting new systems and modernizing existing ones/It is also becoming one of the mos

230、t important aspects when pumping water from boreholes or tanks,alongside the optimum sizing,reliability and quality of the system/As the energy consumption of a pump system accounts for up to 90%of the total life cycle costs,the overall operating costs can be signifjcantly reduced/With its innovativ

231、e High Effjciency System(HES),Franklin Electric is setting new standards in the industry/As a technology pioneer,Franklin Electric has been supplying the submersible pump market with highly effjcient permanent magnet synchronous motors since 2017/The HES achieve outstanding levels of effjciency,part

232、icularly as a complete package including matching components/Several thousand installed units have so far proven this outstanding practicality and show up to double-digit energy savings as well as signifjcantly improved effjciencies/The key factor in energy savings and high effjciency is the permane

233、nt magnet technology of the motor and the constant adapting to the optimum application conditions(duty point)by the speed control/With the introduction of the high-effjciency VSI stainless steel cast pump in summer 2023,Franklin Electric has now added the fjnal crucial piece to its high-effjciency s

234、ystems/Now professional industrial markets can be served in three sizes(8/10/12),three material variants(304SS,316SS and Duplex)and fmow rates up to 650 m/h/Franklin Electric also has succeeded in reducing the costs of these complete packages even further thanks to new electronics(including the Fran

235、klin Electric Cerus X-Drive series)/This makes the amortization of the system even more attractive/Depending on the duty cycles and regional costs,this can be less than 2 years/Franklin Electric proves that technological progress and ecological responsibility can go hand in hand/With the High Effjci

236、ency System in combination with the VSI submersible pumping series,the company ofgers a forward-looking solution for water pumping that is both economical and environmentally friendly/68|2024 Sustainability ReportPioneer Pump ElectricPAK VFDPump owners and operators are tasked with fjnding temporary

237、 and portable surface pumping systems that boost effjciency without sacrifjcing performance and durability/This push is making electric pump packages a more viable solution;in 2022,Franklin Electric introduced the Pioneer Pump ElectricPAK an innovative electric-driven pump package for portable dewat

238、ering/The ElectricPAK not only helped reduce emissions and mitigate hazardous waste cleanup from leaks,the packages also gave operators a low barrier to entry by eliminating the need for time-consuming and costly laser alignment/This encouraged companies to adopt the more environmentally friendly pl

239、atform/In 2023,Franklin Electric again saw an opportunity to enhance the performance of electric-driven pump packages by seamlessly integrating a variable frequency drive(VFD)panel into the ElectricPAK system/An ElectricPAKs effjciency is at its peak when paired with a VFD since the drive helps opti

240、mize pump operation to minimize power usage and reduce energy waste/By utilizing the ElectricPAK platform in conjunction with a VFD,users benefjt from even more operational effjciencies/To bring the ElectricPAK VFD solution to market,the Franklin Electric team needed to overcome several obstacles re

241、lated to VFD portability and programmability,including durability on the jobsite,easy and safe transport,and a lack of user experience with VFDs/Using the companys leadership in electronics and controls,the team developed the SmartPrime control interface/The intuitive-to-use interface ofgers streaml

242、ined programming options and a comprehensive user experience/This solution is ideal for the most common Pioneer Pump applications,ofgering users multiple ways to set up their ElectricPAK for maximum effjciency and reliability/Since vibration control and ease of transport were also critical,the VFD i

243、s secured to a vibration-isolating sub-frame within a fully welded cage/The rigid steel construction ofgers robust impact-protection,built-in lifting eye,and heavy-duty fork pockets that allow for safe transportation and installation/Most of all,ElectricPAK breaks down barriers for deploying electri

244、c pump packages/This paves the way for increased electric package utilization a solution that continues to reduce emissions and each users carbon footprint/2024 Sustainability Report|69PRODUCT SPOTLIGHTSPower Integrity Remote Control Solution with OVERSITE The Power Integrity Remote Control Solution

245、(RCS)combines required fuel system safety devices into a single panel while also providing advanced device power status monitoring,remote E-Stop engagement,and remote power resetting capabilities for fuel system and convenience store critical assets/With OVERSITE remote monitoring and power cycling

246、capabilities,operators can signifjcantly reduce the need for costly on-site maintenance trips and help eliminate the expenses associated with extended downtime of critical assets which are vital to daily operations/It is estimated that up to 80%of their on-site service calls for equipment outages si

247、mply required a power cycle to bring their equipment back online/Traditionally these power cycling activities had to happen at the site,resulting in numerous maintenance calls and truck rolls/The RCS creates an integrated network between an EVO Series console and site assets like circuit breakers,di

248、spensers,pumps,price signage,and more/Through this network,operators gain the ability to monitor equipment status for outages and initiate power cycling sequences to bring assets back online without a maintenance trip/From a sustainability standpoint,OVERSITE technology contributes to reducing CO2 e

249、missions primarily by minimizing the need for maintenance-related vehicle travel/With remote notifjcations,troubleshooting,and device resetting,the RCS signifjcantly cuts down on the number of truck rolls to sites for maintenance/This reduction in vehicle travel directly translates to a decrease in

250、carbon emissions,as fewer trips mean less fuel consumption and fewer emissions from maintenance vehicles/With most medium to large convenience stores averaging four service trips for equipment outages per year,we can illustrate a reduction in CO2 emissions through a practical example/Assuming each r

251、ound trip to the gas station spans 50 miles and considering a maintenance vehicle that achieves 20 miles per gallon,along with the EPAs fjgure of 8/887 kilograms of CO2 emissions per gallon of gasoline burned,the environmental savings can be estimated/Over the course of these four avoided trips,whic

252、h account for an estimated reduction of 200 miles per site per year,approximately 10 gallons of gasoline would be conserved/This conservation translates into a reduction of about 88 kilograms of CO2 emissions/The average convenience store produces 3 tons of carbon emissions in a year.By utilizing th

253、e RCS,the store would be able to reduce their CO2 emissions by 3%compared to a store without it.70|2024 Sustainability ReportFE PETRO Submersible Pumps deliver fuel to thousands of motorists around the globe,day in and day out/One of the unique features found on FE PETRO Submersible Pumps is Variabl

254、e Speed technology/A variable speed pump controller ramps the pump up and down,as-needed,to provide optimal fmow rates at all fueling points/The result is faster,more consistent fmow rates than fjxed speed systems/As station size and volumes have continued to grow,more marketers are choosing variabl

255、e speed to meet the high fuel throughput demands while gaining additional benefjts only variable speed can ofger/At their core,variable speed pumps operate on a simple yet impactful principle:they dynamically adjust the speed of the pump to precisely match the required fmow rates/Unlike traditional

256、fjxed speed pumps that operate at full capacity regardless of demand,variable speed pumps consume energy proportionate to the task/This means that during periods of low demand the system uses minimal power,while it can ramp up to meet higher demands/This adaptive energy consumption model leads to re

257、ductions in electricity usage and can lower CO2 emissions associated with unnecessary power consumption/Variable Speed CO2 Savings StudyFranklin Electric recently conducted a study to measure the energy and estimated CO2 emissions of variable and fjxed speed pumps/The study shows the energy saving p

258、rofjle for a 10 year span/The site studied included fjve fuel types and had an average monthly throughput of 250,000 gallons of fuel/The CO2 emissions were estimated to be reduced by 14-15%with the use of a Variable Speed pumps compared to Fixed Speed pumps.FE PETRO Variable Speed Submersible Pumps2

259、024 Sustainability Report|71PRODUCT SPOTLIGHTSNexPhase Smart EV SwitchgearThe Bipartisan Infrastructure Law(BIL)is a signifjcant piece of recent legislation that aims to address the United States infrastructure needs and stimulate economic growth by allocating funds to various infrastructure initiat

260、ives/As part of the BIL,the National Electric Vehicle Infrastructure(NEVI)Formula Program was created to support the deployment of electric vehicle(EV)charging infrastructure across the United States and aims to accelerate the transition to EVs while reducing greenhouse gas emissions from the transp

261、ortation sector/The NEVI Program provides$5 billion in funding for States to build out the United States alternative fuels corridor with Level 3 DC fast charging stations/Franklin Electrics new EV Systems product line looks to support the development and expansion of EV charging across the country w

262、ith its innovative NexPhase solution for DC fast charging station infrastructure/Uniquely designed to support the NEVI funding program,NexPhase is an intelligent,turnkey solution that provides the entire electrical infrastructure needed to bridge the gap between utility power and DC fast chargers/Ne

263、xPhase combines all switchgear equipment into a single enclosure,eliminating the lengthy design process of traditional post-and-frame systems,which would otherwise require additional costs to design and source a mixed-manufacturer panel system/By minimizing installation time and costs,NexPhase facil

264、itates the rapid deployment of electric vehicle charging stations/In order to receive NEVI funding,DC fast charging station ports are required to be operational 97%of the time compared to the national average today of approximately 75%/Unlike any other switchgear,NexPhase monitors and controls power

265、 before it reaches the chargers/This enables remote monitoring,troubleshooting and control to help identify outages,bring chargers back online faster,and ensure overall uptime/This advanced solution ofgers charge point operators(CPOs)enhanced remote monitoring and control capabilities/Through the em

266、bedded monitoring system,CPOs can access real-time health data with remote power cycling capabilities and automated alarms to facilitate condition-based maintenance planning and help achieve the 97%uptime requirement set by NEVI/NexPhase represents the culmination of Franklin Electrics extensive exp

267、erience in the vehicle refueling systems and utility asset monitoring sectors/Contributing to a greener and more sustainable future,Franklin Electric is poised to play a signifjcant role in supporting the growth of EV charging infrastructure/As part of this,Franklin Electric has established a state-

268、of-the-art research and development EV laboratory and testing facility at its Madison,Wisconsin facility aimed at driving future product development in the evolving EV sector with additional products to come on the heels of NexPhase/72|2024 Sustainability ReportHigh-Effjciency SmartChoice SoftenerIn

269、 2021,Franklin Electric acquired Aqua Systems and Hellenbrand as a part of the Water Treatment line of products/As is true for the rest of Franklins catalog,the Water Treatment products are built around sustainability and effjciency/The Aqua Systems High-Effjciency SmartChoice water softening system

270、 reduces salt and water usage by 50%while also requiring less electricity due to quick regeneration times/Advanced electronics provide data insights into water usage,potential plumbing leaks,and provide historical information logs on water usage patterns/In addition to effjciency benefjts,all Aqua S

271、ystems SmartChoice softeners feature exchangeable components that are easily separated for replacement without requiring an entirely new softener system/This reduces waste associated with typical whole-system replacement/Also featured is a lithium battery backup,patented Vortech technology to extend

272、 life and performance of the media bed,and salt alerts/Non-corrosive materials are used on all parts for long-lasting durability/2024 Sustainability Report|7374|2024 Sustainability ReportCOMMITMENT TO OUR COMMUNITIESFranklin Electrics efgorts in the community are driven by our passion for service,on

273、e of our Key Factors for Success/Our employees answer the call to serve their communities,focusing on the causes that matter most to their families,customers and business partners/Our overall goal is to have a positive impact in the areas where we and our colleagues live and work/COMMITMENT TO OUR C

274、OMMUNITIESFranklin Wells for the World Nearly one billion people in the world do not have access to safe,clean drinking water/As a world leader in designing and manufacturing pumps and motors used to access groundwater,Franklin Electric is positioned to make a substantial impact on the availability

275、of clean water in developing regions through our Franklin Wells for the World Foundation(FWWF)/Founded in 2010,the FWWF has impacted the lives of over 284,000 people by bringing clean water to the surface in 12 difgerent countries/Franklin Wells for the World is our tangible commitment to help allev

276、iate the global water crisis,one well at a time/A majority of the worlds fresh water is buried,contained in aquifers,hundreds of feet below the ground/For most of the developed world,a drink of fresh,clean water is only a few feet away/However,in many developing regions,the nearest source of water i

277、s miles away from villages and often,that water is not safe to drink/These potentially contaminated water sources may cause a host of illnesses,including cholera,diarrhea or dysentery,resulting in approximately 30,000 deaths per week,90%of which are children under six/The lack of access to safe drin

278、king water directly impacts the cycle of poverty in developing regions by contributing to illness and food scarcity and limiting educational opportunities,especially for young women/Our MissionFWWF was established to address the need for clean water systems and to provide long-term accessible and sa

279、fe groundwater sources to at-risk communities in developing countries/FWWF will work with trusted local organizations and volunteers to provide the necessary equipment,expertise,training and technology to accomplish this mission/The Foundation was established with the primary goal to serve populatio

280、ns on the African continent,but in 2023 we are broadening the mission/Our global leadership team is now encouraged to fjnd projects in each of their communities,and we are excited to be able to serve populations in the Americas,EMEA and Asia Pacifjc regions/This is a signifjcant enhancement in the s

281、cope of the Foundation,and our employees are fully engaged to bring all of Franklins experience to bear on these new challenges/We look forward to reporting on these projects in future editions of this Report/76|2024 Sustainability Report2022 ProjectsSouth AfricaRocklands Intermediate School,Ekuphum

282、leni Satellite Clinic,Kuyga Public Primary School,Masifunde Changemaker AcademyKenyaMoricho and Kelelwet CommunitiesMozambiqueZavora Community2024 Sustainability Report|77The Moricho and Kelelwet communities are some of the fastest growing population centers in Eastern and Central Africa/The little

283、water thats available is hard to access,with women and children using much of their day to search for water/This has not only led to an increase in waterborne illnesses but has also afgected education since children must spend so much time in search of water/By installing a borehole in these communi

284、ties,FWWF is helping with hygiene and health,as well as the communities economic future/About 1,500 people live in the Zavora Community and most must walk 8 kms(5 miles)for water from contaminated lakes/Some can capture water from rain,but severe drought has made this nearly impossible/As a result,c

285、hildren often sufger from health conditions like bilharzia and other gastrointestinal diseases/The FWWF funded borehole project covered the drilling and testing of a well and the supply of all ancillary equipment,including an overhead storage tank with basic reticulation/The well will allow this poo

286、r area to access water more regularly,helping to improve the communitys overall health/KenyaMozambique2022 ProjectsCOMMITMENT TO OUR COMMUNITIES78|2024 Sustainability ReportThe Rocklands Intermediate School and Ekuphumleni Satellite Clinic in Gqeberha provide critical services in an area that faces

287、poor socioeconomic conditions and malnutrition/Health conditions,like HIV/AIDS,pneumonia and other respiratory deceases overwhelm the already strained health care system/This becomes exponentially worse when people do not have access to potable water as the municipal supply often fails/With the addi

288、tion of the FWWF borehole,both the health facility and school can provide the water needed for proper hygiene/The school is now better able to prepare a daily meal for students,which is often the only decent food that some learners have for the day/Kuyga Public Primary School in Gqeberha serves 1,01

289、2 learners and 22 teachers/The area sufgers from extreme poverty,poor health and malnutrition,all of which are exasperated by the lack of clean water available/A new FWWF-funded borehole can help alleviate some of these challenges/It is projected to provide 43,488 L of potable water a day(11,488 gal

290、lons)for use by the school and the surrounding community/Masifunde Changemaker Academy is run by Masifunde Learner Development a public benefjt organization with over 15 years of experience/The school,and the surrounding community,encompass around 12,000 residents/With no potable water nearby,reside

291、nts experience many health-related issues,including HIV/AIDS,pneumonia and other respiratory deceases,like tuberculosis/With the addition of a FWWF-funded borehole,residents and students will have access to 52,128 L of water a day(13,770 gallons)/This water can be a critical tool in helping improve

292、hygiene and nutrition in the community/South Africa2024 Sustainability Report|792023 Projects2023 marked Franklin Wells for the Worlds 12th year in providing the equipment necessary to access clean water which increases the overall quality of life for years to come/After completing each FWWF project

293、,we check back with community leaders and residents to assess the projects impact/We often see tremendous growth and increased opportunities for communities and primarily women and children/With another year of FWWF projects completed,the school children,their families,and the surrounding communitie

294、s have all benefjted from new water well installations/BotswanaChildren of the Wilderness,Mokgacha and EretshaCOMMITMENT TO OUR COMMUNITIES80|2024 Sustainability ReportIn 2023,FWWF worked with Children of the Wilderness in Mokgacha and Eretsha to assist with subsistence farming for these villages/Pr

295、eviously,villagers(including women and children)tended to the fjelds and had to walk 10km to get fresh water each day/Even worse,villagers collecting water were at risk from local wildlife including elephant attacks/FWWF worked with local experts to drill boreholes,install solar equipment,test water

296、,and ensure that villagers were trained to maintain their new sources of water/Today,roughly 2,500 villagers enjoy access to clean drinking water/Botswana2024 Sustainability Report|81COMMITMENT TO OUR COMMUNITIESFranklin Electric Charitable and Educational FoundationThe Franklin Electric Charitable

297、and Educational Foundation contributes to non-profjt organizations that are primarily located in communities where we have a business presence/Through the Foundation,we support organizations such as United Way,Boys&Girls Clubs,Big Brothers/Big Sisters,and other charities/We also encourage employee g

298、iving by supporting the causes our employees support,and in many cases will provide matching funds to help our employees make a larger impact with their contributions/In 2022,the Foundation began to tie a portion of its charitable giving to ongoing safety initiatives in the Companys facilities/Facil

299、ities that maintain exemplary safety records are recognized by allowing the employees of those facilities to designate safety-focused non-profjt organizations to receive contributions/This allows all of our employees to celebrate the achievements of those facilities,and for the facilities themselves

300、 to extend the benefjts of our focus on safety and security to their home communities/82|2024 Sustainability ReportScholarshipsFranklin Electric is committed not only to the wellbeing and development of its employees,but also of the families that make up our community/We believe that education plays

301、 an important role in preparing children for successful futures,so the Franklin Electric Charitable and Educational Foundation awards scholarships annually to college-bound high school seniors who have demonstrated outstanding scholastic ability and strength of character/In 2023,the Franklin Electri

302、c Charitable and Educational Foundation made contributions of approximately$368,000,$34,000 of which went to 21 scholarship recipients/The remainder of the contributions were provided to various education,community service,and arts and culture organizations in line with the mission of the Foundation

303、/2024 Sustainability Report|8384|2024 Sustainability ReportCOMMITMENT TO OUR EMPLOYEESWe want to attract,develop and retain talented employees who will drive performance of our strategic objectives and contribute to and share in the Companys success/We use learning and performance management platfor

304、ms to engage and develop our employees to ensure we are focused on both individual and company performance/Diversity,Equity and InclusionFranklin Electric is committed to Diversity,Equity and Inclusion(DEI)/We believe that everyone deserves to be treated fairly and respectfully,and that our diversit

305、y of thought,culture and experience makes us a stronger company/Our commitment to DEI goes beyond words;it is a part of our company culture and is refmected in our actions/Franklin Electric and its employees respect people and their diverse backgrounds,knowledge,talents and perspectives/We are commi

306、tted to fostering an inclusive culture,so everyone feels welcome,comfortable and safe,providing an efgective work environment/Recruiting,Developing and Promoting a Diverse WorkforceA diverse workforce and inclusive culture help drive our vision and deliver on our strategic objectives/Through develop

307、ment,training and hiring the best talent for the job,we continue to build a team that provides varied perspective and creativity in discussion and decision-making/We are proud of the diversity of our workforce and the inclusiveness of our culture,but recognize that we can improve the quality of our

308、employment ofgerings and the availability of opportunities for all of our employees/Our current workforce makeup is described on the next page,and for the fjrst time,we are pleased to increase transparency to our shareholders and other stakeholders by making public EEO-1 data about U/S/employees/The

309、 EEO-1 data presented on the next page is used to review the breakdown of racial and gender data across all levels of our U/S/organization in order to internally measure and report our progress against our DEI goals/We use EEO-1 and workforce data to help our managers recognize potential recruitment

310、 opportunities in the communities where we do business/Managers are regularly informed about demographic data on their teams and potential inconsistencies with available talent in the applicable marketplace,and are actively encouraged to recruit and retain individuals from under-represented populati

311、ons/We give managers tools to succeed in these efgorts,including training described above regarding unconscious bias,and access to job boards and recruiters that specialize in placing under-represented populations/COMMITMENT TO OUR EMPLOYEES86|2024 Sustainability Report2023 Global WorkforceWHITE|77/

312、74%AMERICAN INDIAN/ALASKA NATIVE|2/06%HISPANIC OR LATINO|10/26%TWO OR MORE|2/51%NOT SPECIFIED|0/76%HAWAIIAN/OTHER/PACIFIC ISLANDER|0/12%BLACK OR AFRICAN AMERICAN|4/53%ASIAN|2/02%2023 United States Workforce0200400600800100012001400160018002000Ethnicity,U/S/WorkforceGender Diversity,U/S/WorkforceMALE

313、|2,013Female19%MALE LEADERSHIP|337FEMALE LEADERSHIP|50FEMALE|462Male81%19%13%87%2,475EMPLOYEES6,347EMPLOYEES397LEADERSHIP ROLES673LEADERSHIP ROLESGlobal Retention Rate:77/6%in 202381%GenderChief Executive OffjcerExecutiveVice PresidentSenior DirectorDirectorSenior ManagerManagerSupervisorNon-Manager

314、TOTALMale17133243123118791,5972,013Female00337181919393462TOTAL17163550141137981,9902,475The above information was reported on the Companys most recently submitted EEO-1 Report for the year 2023.2024 Sustainability Report|87Employee Engagement SurveyIn October 2021,Franklin Electric launched its fjr

315、st Employee Engagement survey to its worldwide salaried employees,along with a pilot group of its hourly U/S/and Canada employees/The survey was launched using Qualtrics,a world-class survey tool scientifjcally proven to measure levels of employee engagement and satisfaction/Salaried employees recei

316、ved a personalized link sent to their company email inviting them to complete the engagement survey/Hourly employees included in the pilot program were able to use either a QR code to access the survey or go directly to the Qualtrics site/Franklin Electric obtained an overall response rate of 69%in

317、2023,with 77%participation among its salaried employees/Of those employees who participated in the survey,93%positively reported that“Franklin Electric is committed to employee safety,”refmecting our long-term investment in employee safety initiatives/The Qualtrics Employee Engagement Survey consist

318、s of three components Engagement Index,Equip Factors,and Manager Efgectiveness/The tool defjnes engagement as“the extent to which employees are motivated to contribute to organizational success and are willing to apply discretionary efgort to accomplishing tasks important to the achievement of organ

319、izational goals/”Of the survey questions related to the Engagement Index,Franklin Electric received scores very consistent with industry averages within the Qualtrics system/Sample questions include“Overall,I am extremely satisfjed with Franklin Electric as a place to work”(4%growth since 2021,showi

320、ng strong progress and a favorable response),and“I am proud to work for Franklin Electric/”The tool defjnes Equip Factors as“the extent to which employees have the training,resources,and support to excel at their job/”Franklin Electric employees responded positive,above-industry-averages to the Equi

321、p Factors section,with sample questions such as“I have the training I need to do the job efgectively,”and“Customer problems are dealt with quickly/”In the Manager Efgectiveness portion of the survey,Franklin Electric also received positive scores from the majority of respondents/Sample questions in

322、this section were“My immediate supervisor/manager is an outstanding leader”(6%growth since 2021,with stronger scores than industry average),and“My immediate supervisor/manager does a great job at managing the work/”COMMITMENT TO OUR EMPLOYEES88|2024 Sustainability ReportThe Franklin Electric Employe

323、e Engagement survey also included multiple free response questions/Some examples of these questions were“What is one suggestion you have to make Franklin Electric a better place to work?”and“Whats the one thing you would most like senior leadership to know?”We believe that employees at Franklin Elec

324、tric were excited to have their voices heard,and the leadership at Franklin is committed to actively reviewing and responding to employees comments and suggestions for improvements/Based on the feedback received in the survey,targeted action plans have been created and implemented and employees are

325、already noticing the positive impacts of the process/2023 ImprovementsIn the past year,Franklin Electric has expanded the use of the engagement survey tools ofgered by Qualtrics,and has sought and received employee input on a variety of topics including the competitiveness of our benefjts ofgerings,

326、the efgectiveness of our employee recognition programs and the importance and success of our diversity,equity and inclusion initiatives/Tangible improvements in our employment ofgerings that have directly resulted from these initiatives include increased use of fmexible work arrangements,improved tr

327、aining programs,and increased opportunities for employee development through coaching and mentorship programs/For example,we established our fjrst Employee Resource Group,the Franklin Womens Network,which aims to improve the engagement of and opportunities for women in our workplaces/2024 Sustainabi

328、lity Report|89Franklin Womens NetworkIn January 2023,the company announced the formation of a new employee resource group(ERG),as part of its focus on Diversity,Equity and Inclusion,dedicated to providing an avenue for women to grow both professionally and personally through education,networking and

329、 advocacy/Known as Franklin Womens Network(FWN),the groups promise is to“build a welcoming,inclusive community,provide professional alliances,equip Franklin women with relevant development tools and resources,and guide Franklin women to identify and achieve career milestones/”The groups primary focu

330、s is to create a community where women can learn from one another,share experiences,and support each others professional growth,by providing a range of development tools and resources,including workshops and mentorship opportunities/These resources will equip Franklin women with the necessary skills

331、 and knowledge to thrive and achieve career advancement and goals/While the ERG is targeted towards women who are often underrepresented in the industries Franklin Electric serves the group has made it a point to invite all Franklin Electric employees to participate/In addition to professional devel

332、opment,the group promotes opportunities for networking and building professional relationships to share ideas and experiences while collaborating on projects throughout the organization/COMMITMENT TO OUR EMPLOYEES90|2024 Sustainability Report“Beginning our FWN Chapter has been one of a kind experien

333、ce while creating a baseline hand in hand with intelligent,strong and passionate women from the FE team/We celebrate the warm welcoming and engagement for the FWN mission within our NLA team after our hybrid kick ofg event,thus we feel very positive to continue deploying our 2024 initiatives/”Laura Camacho,Business Operations Coordinator NLA“Being on the steering committee and part of the Franklin