FuelCell Energy, Inc. (FCEL) 2024年CSR報告「NASDAQ」.pdf

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1、Fiscal Year 2024Sustainability ReportFuelCell Energy Fiscal Year 2024 Sustainability Report|2Key TermsBOP:Balance of plant CDP:formerly known as the Carbon Disclosure ProjectCHP:combined heat and powerCO2:carbon dioxideCO2e:carbon dioxide equivalentDOE:U.S.Department of EnergyEHS:environmental,healt

2、h and safetyEPA:U.S.Environmental Protection AgencyESG:environmental,social and governanceFY:fiscal yearGHG:greenhouse gasGRI:Global Reporting InitiativeHHV:high heating valueIEA:International Energy AgencyIPCC:Intergovernmental Panel on Climate ChangeIRA:Inflation Reduction ActISO:International Org

3、anization for Standardizationkg:kilogramLCA:life cycle assessmentMT:metric tonMW:megawattMWh:megawatt-hourNOx:nitrogen oxidesSASB:Sustainability Accounting Standards BoardSDGs:Sustainable Development GoalsSOEC:solid oxide electrolyzer cellSOFC:solid oxide fuel cellSOx:sulfur oxidesTCFD:Task Force on

4、 Climate-related Financial DisclosuresYOY:year-on-yearContentsIntroduction.3About This Report.4A Letter From Our CEO .5A Letter From Our CMSO .6About FuelCell Energy.7Sustainability Management and Strategy .8Materiality Assessment .10Stakeholder Engagement .11ESG Ratings.122024 in Review:Highlights.

5、14Product.15Scalable Solutions to Accelerate Power Availability.16Decarbonizing Power .17Carbon Capture and Recovery.20Hydrogen Electrolysis .22Customer Service and Technical Support.24Climate&Environment .25Working Towards Net Zero .26Climate Risks and Opportunities .29Environmental Stewardship .31

6、Our Approach to Circularity .35People .38Workforce Development and Training.39Talent and Belonging.41 Safety,Health and Well-Being .45 Responsible Supply Chain.47 Community Impact.48 Governance .51Corporate Governance.52Enterprise Risk Management.53Ethics and Compliance.54Data Privacy and Informatio

7、n Security .56Appendix.57GRI Content Index:Material Disclosures.58GRI Content Index and Data Tables.60SASB Disclosures.65 UN SDGs.66Forward-Looking and Cautionary Statements.68FuelCell Energy Fiscal Year 2024 Sustainability Report|3IntroductionIn this section:About This Report .4A Letter From Our CE

8、O.5 A Letter From Our CMSO.6About FuelCell Energy .7Sustainability Management and Strategy .8Materiality Assessment .10Stakeholder Engagement .11ESG Ratings .122024 in Review:Highlights.14 AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceFuel

9、Cell Energy Fiscal Year 2024 Sustainability Report|4The 2024 Sustainability Report is the third annual report covering FuelCell Energys sustainability progress and performance.This report focuses primarily on fiscal year 2024 activities,unless otherwise noted.All references to a year throughout the

10、report refer to FuelCell Energys fiscal years,unless“calendar year”is specified.FuelCell Energys fiscal year starts on November 1 and ends on October 31.Information in this report includes all entities and global operations covered in our Annual Report unless otherwise stated.This report was prepare

11、d in accordance with the Global Reporting Initiative(GRI)Standards as well as the Sustainability Accounting Standards Board(SASB)Fuel Cells&Industrial Batteries Sustainability Accounting Standard.We also provide a summary of our progress in addressing climate change in line with the recommendations

12、of the Task Force on Climate-related Financial Disclosures(TCFD).GRI reporting principles were applied in this report as defined in GRI 1:Foundation 2021.The principles are:Accuracy:We provide information that has been internally verified and is,we believe,sufficiently detailed to allow an assessmen

13、t of FuelCell Energys impacts.Balance:We have aimed to provide a fair representation of FuelCell Energys positive and negative impacts,including key challenges.Clarity:We report in a way that is accessible,using plain and clear language.Comparability:We disclose information in a way that,we believe,

14、enables analysis of changes in FuelCell Energys impacts over time,to the extent possible.Completeness:We provide information about our activities that have material impact to enable an assessment of FuelCell Energys effects during the reporting period.Sustainability context:We report our sustainabil

15、ity impacts within the wider context of sustainable development with reference to global priorities and trends.Timeliness:We report on a regular schedule alongside our Annual Report,so that information is available in a timely manner for users to make decisions.Verifiability:We provide details of th

16、e basis of our reporting so information can be examined to establish its quality.The information and data in this report have been internally verified and are believed to be an accurate representation of our performance.Additionally,the sustainability data in this report,including our Scope 1 and 2

17、greenhouse gas(GHG)emissions,have been externally assured by an independent Carbon Disclosure Project(CDP)Gold Accredited verifier.The Assurance Statement can be accessed here.We welcome your queries and feedback and invite you to contact us at .About This ReportNote:The use of the logos above is fo

18、r informational purposes and does not imply an endorsement of the contents of this Sustainability Report by any such organization.AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceFuelCell Energy Fiscal Year 2024 Sustainability Report|5A Lette

19、r From Our CEOAs we reflect on the past year,I am proud to share the progress FuelCell Energy has made in assisting our customers in achieving their sustainability goals and advancing our sustainability mission.At FuelCell Energy,our focus has always been to help our customers on a practical and imp

20、lementable journey to sustainability for the world we share and the longterm sustainability of their business without asking them to change or stop delivering valuable goods and services.Our commitment to enabling a world empowered by clean energy remains steadfast,and we continue to innovate and de

21、liver solutions that drive meaningful impact.In 2024,we celebrated several significant milestones that underscore our dedication to sustainability and innovation.We launched the worlds first“Tri-gen”hydrogen production system at the Port of Long Beach facility with Toyota North America,marking a maj

22、or achievement in clean energy technology and assisting our customer,Toyota,in advancing its commitment to hydrogen fueled transportation.We signed an agreement for our fuel cell technology to power a biogeneration microgrid project at the Sacramento Area Sewer District,converting on-site biofuel in

23、to clean electricity.What makes this so unique is that once again,FuelCell Energy is demonstrating its differentiated capability to use on-site biogas,eliminating the need for common carrier pipeline transportation and reducing emissions.Additionally,we continued to develop breakthrough carbon captu

24、re technology with ExxonMobil,which will be piloted at its Rotterdam Manufacturing Complex.We also entered into an agreement with Gyoenggi Green Energy to supply 42 carbonate fuel cell modules for the worlds largest single-site fuel cell power platform and agreed to jointly pursue hydrogen productio

25、n projects in South Korea with Korea Hydro&Nuclear Power Co.,Ltd.as South Korea seeks to strengthen its energy independence and continue its pursuit of clean power generation and transportation fuels.These initiatives highlight our forward-looking product strategy,which focuses on delivering solutio

26、ns based on our two electrochemical platforms.Sustainability is key to our mission of clean energy,and we are dedicated to achieving success now and in the future.External rating agencies,including the Institutional Shareholder Services(ISS)ESG,Sustainalytics,MSCI ESG and CDP,have all evaluated our

27、performance,and their ratings reflect the progress of our sustainability strategy.FuelCell Energys mission is to enable a world empowered by clean energy,and we are proud of the impact our customers have on the world through the use of our energy delivery and emission management platforms.We count o

28、ur customer wins as wins for their shareholders and for society as a whole.We are pleased to support our customers in their sustainability journeys,providing solutions that help them reduce their carbon footprints,enhance energy security,support economic development and focus on delivering valuable

29、goods and services without disruption while supporting their commitment to social responsibility.As we look ahead,we remain focused on our goals and strategies for continuous improvement and growth.We are committed to addressing the opportunities and challenges in the evolving energy landscape,and w

30、e will continue to lead the way in clean energy innovation.Thank you for your continued support and partnership.Together,we are creating a cleaner,more sustainable future and company.Jason Few President and Chief Executive OfficerSincerely,AppendixAboutFuelCell EnergyIntroduction2024 in Review:Highl

31、ightsProductClimate&EnvironmentPeopleGovernanceFuelCell Energy Fiscal Year 2024 Sustainability Report|6Betsy SchaeferSenior Vice President,Chief Marketing and Sustainability OfficerA Letter From Our CMSOWe are pleased to present FuelCell Energys 2024 Sustainability Report,underlining our commitment

32、to sustainability and progress over the past year.Our sustainability strategy is intricately aligned with our business goals,emphasizing ethical,responsible and transparent operations so that we can positively impact our communities,the environment and society at large.Our sustainability strategy pr

33、ioritizes key environmental,social and governance(ESG)responsibilities and stakeholder needs,with an emphasis on our customers needs.We have aligned our efforts with global trends and standards,including the United Nations Sustainable Development Goals(SDGs)and the GRI and SASB standards.In 2024,we

34、achieved significant milestones in our companys sustainability journey,incorporating adaptation and mitigation strategies as part of our comprehensive sustainability strategy.We are dedicated to decarbonization across our value chain from our supply chain to our operations and the use phase of our p

35、roducts.Key milestones include:Established an internal process for an annual,corporate-level greenhouse gas(GHG)emissions inventory for 2024 Completed a product-level life cycle assessment(LCA)to understand and potentially reduce GHG emissions throughout the value chain,from production through decom

36、missioning(all of which are informing our circularity strategy)Conducted a climate risk assessment aligned with the Task Force on Climate-related Financial Disclosures(TCFD)to analyze the physical and transition risk across our manufacturing facilities,inform our business strategy and take appropria

37、te mitigation measures Continued shaping our sustainability strategy to prioritize and holistically address our key ESG responsibilities and stakeholders needs Successfully integrated a sustainability governance model into our business processes Achieved the ISS ESG Prime status and improved our MSC

38、I and Sustainalytics ratingsLooking ahead,we will continue to prioritize circularity in every aspect of our product life cycle,from design to end-of-life management.A cornerstone of our approach is to improve resource efficiency and conservation,while gradually incorporating closed-loop principles i

39、nto our processes.Thank you for your continued support and interest in FuelCell Energys sustainability journey.AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceAbout FuelCell Energy*Under development.*Patents are for FuelCell Energy,Inc.and o

40、ur subsidiary,Versa Power Systems,Inc.*As of November 30,2024.As of October 31,2024,the company had 584 employees.*As of October 2024,certain sites have multiple platforms.For example,our 14MW Derby,Connecticut,project site has five SureSource 3000 platforms containing a total of 10 modules.Our Tech

41、nologyFuelCell Energy is an American clean technology and manufacturing company dedicated to improving energy efficiency,resilience and security with low-to-zero carbon solutions.Supplies hydrogen through our electrolyzer with up to 100%efficiency;or co-produces hydrogen,power and water from biogas

42、or natural gas with our Tri-gen system.Only known technology in the world that can capture CO2(for use or sequestration)while making power.Converts excess power from renewables to hydrogen,then converts hydrogen back into power when its needed.*HQDanbury,Connecticut3Continents:customers in Asia,Euro

43、pe and North AmericaFCELListing:NASDAQ188Modules in operation*500Employees*16Million MWh generated with patented technology542Global patents covering our fuel cell technologyA global leader in fuel celltechnology innovation*Company HighlightsOurValuesAccountabilityTo ourselves,our stakeholders and o

44、ur community.InnovationDeliver impactful products to our customers.IntegrityIn everything we do.SafetyPhysical&PsychologicalFoster a healthy and safe environment.Produces low-to-zero carbon power withflexible fuel options,including biogas,natural gas and hydrogen.FuelCell Energy Fiscal Year 2024 Sus

45、tainability Report|7AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceWhile the Environmental,Health and Safety(EHS)management team has been evolving and successfully accomplishing its core responsibilities for several decades,in 2022,FuelCell

46、 Energy made an organizational commitment to develop its broader sustainability agenda with the appointment of the companys first Chief Sustainability Officer.A year later,we reinforced our team with the addition of a Director of Environmental,Social and Governance(ESG).In 2024,we continued developi

47、ng our sustainability governance model to ensure the effective coordination of these efforts between various stakeholders furthering our objective of having a positive impact on our communities,our people and our planet in measurable and meaningful ways.Our companywide Sustainability Council collabo

48、rates on the systematic execution of our sustainability-related commitments.This work is overseen by the Nominating,Governance and Sustainability Committee of our Board of Directors.From our Board of Directors to our front-line business units,we continue to deepen our expertise and skills and drive

49、sustainability performance at all levels.Board of DirectorsCompensation and Leadership Development Committee Audit,Finance and Risk CommitteeInternal CommitteesWorking GroupsNominating,Governance and Sustainability Committee President and CEOExecutive Leadership TeamChief Financial OfficerChief Mark

50、eting and Sustainability OfficerSustainability CouncilBusiness UnitsFuelCell Energy is committed to playing a strong role in sustainable development through technology,innovation and the development of climate-friendly solutions that will enable broadscale uptake of clean energy.Since the beginning,

51、FuelCell Energy has prioritized our product and workplace safety as well as environmental stewardship.Sustainability Management and StrategyOur multi-level sustainability governance model has been established as a foundation for effective development and implementation of sustainability strategies a

52、nd programs that touch each part of the Company.FuelCell Energy Fiscal Year 2024 Sustainability Report|8AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceSustainability StrategyOur sustainability strategy is deeply aligned with our business st

53、rategy and our financial goals.Sustainability is fundamental to our mission of enabling a world empowered by clean energy,and we are committed to conducting our business in a way that facilitates both organizational success today and long-term future growth.At FuelCell Energy,we are dedicated to ope

54、rating in an ethical,responsible and transparent manner.We strive to harness the best-in-class capabilities and collective passion of our colleagues to positively impact our communities,the environment and society at large.Our sustainability strategy prioritizes our key ESG responsibilities and stak

55、eholder needs.This strategy,developed in discussion with our Senior Leadership Team and Board of Directors,was informed by multiple engagements with our customers,business partners,investors and analysts as well as with our employees throughout the business.We also considered current global trends,E

56、SG standards and frameworks including,but not limited to,the United Nations Sustainable Development Goals(SDGs)and the GRI and the SASB standards specific to our industry.Our sustainability strategy consists of 12 broad action areas that will define our focus in the coming years.These action areas a

57、re defined in accordance with our key material topics and serve as the framework for operationalizing sustainability and helping us achieve our long-term vision.We continue to develop our key objectives along with systems for tracking and measuring our performance.Our Sustainability Strategy encompa

58、sses 12 action areas that will guide our actions in the coming years.FuelCell Energy Fiscal Year 2024 Sustainability Report|9AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceWe have identified 10 sustainability topics that can impact our abil

59、ity to create value over time.The list of topics was developed following an analysis of the demands of sector-based sustainability standards and investment analyst requirements,as well as global trends,peer benchmarking and customer interest.Similarly,we have examined these topics from the perspecti

60、ve of our impact as an organization on the economy,people and the environment and incorporated this understanding into our overall sustainability strategy and practice.Our materiality assessment was conducted using best-practice methodologies and informed by the guidance of the most widely recognize

61、d global organizations,including the GRI and the SASB.Material TopicDefinitionKey Environmental and Social ImpactsKey Sustainability-Related Risks and Opportunities Climate Change and GHG EmissionsAdvancing access to affordable clean energy and minimizing operational GHG emissions across our value c

62、hain+Improving global access to zero-or low-carbon energyEmitting GHGs through our value chain+Major market opportunities for clean energy;increased revenue through demand for low-and zero-carbon solutionsPotential limits to rapid uptake of affordable clean energy growth due to legislation lagging a

63、nd not keeping pace with technological advancesEnergy ManagementMinimizing use of energy and utilizing clean energy across our operations and supply chain+Virtually no harmful air pollutants due to non-combustion technology Use of natural gas-based energy generates GHG emissions+Advancement of high-

64、efficiency power and hydrogen generation technologiesHigher cost or lower availability of clean energy to support zero-carbon operations across the entire supply chain ProductEfficiencyDriving innovation to improve the life cycle performance of fuel cells and related products+Continuing to invest an

65、d deliver breakthrough technology to make fuel cells more efficient than ever +Continuous improvement creates opportunities in sales and value for utilities and other consumersReturn on investment in new technology slower than planned due to low market uptake or competitive productsProduct End-of-Li

66、fe ManagementDesigning fuel cells for recyclability and ensuring safe disposal at end of life+Advancing a circular economy Potential unsustainable disposal of products at end of life+Reduced supply cost due to recycling/reuse;increased business resilience through improved control of materials and co

67、mponentsPotential high cost of designing for recyclability or implementing customer take-back schemesHazardous Waste ManagementAddressing hazardous waste and safe and sustainable disposal methods+Continuous adherence and compliance to regulations governing hazardous waste+Increased product value due

68、 to improved recycling and reuse of hazardous waste Potential cost of addressing hazardous waste pollution and product design process to minimize the use of hazardous substancesHazardous waste impacts on human health and the environment Product Life Cycle ManagementManaging life cycle impacts by des

69、ign to minimize negative environmental impacts+Enabling customers to achieve sustainable operations through use of fuel cell based products+Increased revenue and product value through improved product operating lifePotential cost of technology required to address all life cycle impactsMaterials Sour

70、cingAddressing resource scarcity of critical materials and ensuring ethical supply chains+Reduced demand for raw materials,as more than 90%of thecarbonate fuel cell can be recycled or reused+Decreased manufacturing cost due to the replacement of raw materials with recycled and reused materialsPotent

71、ial high cost of ensuring ethical supply of critical materials or replacing them in our product designDepleting limited non-renewable resources;potentially sourcing products from conflict areasProduct SafetyDelivering products that are designed to be safely operated in the use phase+Improving global

72、 access to zero-or lower-carbon energy that is safe for use for customers and communities and has no adverse effects on water,air or soil+Avoided cost associated with product recalls involving health and safety risks;strong product reputation supporting business growth Potential cost of addressing u

73、nforeseen safety issuesWorkforce Health&SafetyAdvancing a safe working culture and providing a workplace free from safety hazards Potential risks and hazards due to unsafe practices at work+Reduced cost of accidents;improved employee retention;reduced insurance cost Potential cost increase and disru

74、ption of business due to major safety incidentsBusiness EthicsMaintaining a compliant and ethical culture and providing opportunities for speaking upPotential negative social impacts of corruption or ethical violations in our operations+Investor confidence in ethical business supports long-term sust

75、ainable growthMateriality AssessmentFuelCell Energy Fiscal Year 2024 Sustainability Report|10AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceWe engage frequently with stakeholders throughout the year to align expectations,as well as to addre

76、ss their needs and concerns in a dynamic business environment.The insights we gain from these interactions inform our prioritization of ESG topics and contribute to the development of our sustainability strategy.StakeholderTypes of EngagementKey Topics We Engage OnKey Expectations of FuelCell Energy

77、Our ResponseCustomers Regular,frequent interaction throughout the year to review performance and new requirements GHG emissions,sustainability targets and challenges Product-and technology-related topics Affordable clean energy solutions Quality,reliability and cost efficiency Ongoing support and se

78、rviceSee section:ProductEmployees Regular,daily interactions and communications programs as well as individual performance reviews and Employee Engagement Survey Health and safety,culture and DEI Companys business and sustainability strategies Values-based culture Open and transparent communications

79、 Competitive rewardSee section:PeopleSuppliers Regular meetings and discussions to review our requirements,supplier performance and ongoing plans Responsible material sourcing Sustainability risks and performance Fair opportunity to bid for our business Trust-based relationshipsSee section:Responsib

80、le Supply ChainInvestors Annual meetings with key investors to present our financial and ESG performance,quarterly earning calls and attendance at investor-focused conferences and events Sustainability strategy and ESG performance Product safety and sustainability Corporate governance Positive finan

81、cial returns Robust corporate governance Strong ESG performance Ethical conductSee sections:Sustainability Management and Strategy ESG RatingsGovernment Ongoing education on the benefits associated with FuelCell Energys technologies Continuous research,analysis and collaboration with all levels of g

82、overnment Energy security,reliability and affordability Scaling advanced technologies Carbon capture and decarbonization Grid support and increasing base-load power Reliable policy resource Accelerating clean energy technology Applying data-driven expertiseSee section:ProductCommunities and Civil So

83、ciety Engagement to address concerns or consider opportunities to advance low-carbon,clean energy solutions and improve community life Community development Clean,affordable and reliable power generation Advancing clean energy solutions Improving air quality Supporting local communities Addressing e

84、nvironmental issuesSee section:Community ImpactStakeholder EngagementFuelCell Energy Fiscal Year 2024 Sustainability Report|11AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceESG RatingsWe are rated by several ESG rating agencies,including In

85、stitutional Shareholder Services(ISS)ESG,Sustainalytics,MSCI ESG and CDP.Their results show that we are on track with our sustainability strategy and have demonstrated substantial improvements in our performance.We welcome these ratings as objective assessments of our organization,and as a means to

86、identify areas for improvement.FuelCell Energy has been a company with sustainability at its core since it was founded more than 50 years ago.We strive to help our customers on their sustainability journey and place a high priority on sustainable practices in our operations.It is essential for us to

87、 not only address our material topics effectively but also to communicate our performance to stakeholders accurately and transparently.We are proud that our ESG performance and high level of transparency have earned us ISS ESG Prime status,underscoring our commitment to responsible business conduct.

88、Liubov VolkovaDirector,ESG ISS ESG RatingIn September 2024,our company achieved“Prime”status in the ISS ESG Corporate Rating,along with a C+score.ISS is one of the worlds leading rating agencies for corporate governance and sustainable investments.ISS ESG,the responsible investment arm for ISS,score

89、s companies based on an analysis of more than 100 sector-specific ESG factors.Prime status is awarded to companies with an ESG performance above the sector-specific Prime threshold,which means that they fulfill ambitious performance requirements.Learn more about ISS ESG ratings here.Note:The use of

90、the logos above is for informational purposes and does not imply an endorsement of the contents of this Sustainability Report by any such organization.*The CDP SME questionnaire is designed for small and medium-sized enterprises(SMEs).FuelCell Energy Fiscal Year 2024 Sustainability Report|12Appendix

91、AboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceMSCI ESG RatingIn 2024,FuelCell Energy received an“A”rating in the MSCI ESG Ratings assessment.1MSCI ESG Research provides MSCI ESG Ratings for global public and a limited number of private companies o

92、n a scale from AAA(leader)to CCC(laggard),accounting for exposure to industry-specific ESG risks and the ability of a firm to manage those risks relative to its peers.Learn more about MSCI ESG ratings here.Morningstar Sustainalytics ESG Risk RatingIn March 2024,FuelCell Energy received an ESG Risk R

93、ating of 21.3 and was assessed by Morningstar Sustainalytics to be at Medium risk of experiencing material financial impacts from ESG factors.2,3 Morningstar Sustainalytics ESG Risk Ratings measure a companys exposure to industry-specific material ESG risks and how well a company is managing those r

94、isks.This multidimensional assessment of ESG risk combines the concepts of management and exposure to measure ESG risk,i.e.,a total unmanaged ESG risk score or the ESG Risk Rating,comparable across all industries.Sustainalytics ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk an

95、d distinguish between five levels of risk:negligible,low,medium,high and severe.Learn more about Sustainalytics ESG Risk Ratings here.CDP Climate Change DisclosureIn February 2025,we received a CDP SME B score for Climate which was the highest possible SME score in 2024.CDP scoring methodology asses

96、ses the level of detail and comprehensiveness in a response,as well as the companys awareness of environmental issues,its management methods and progress towards environmental stewardship.The CDP SME questionnaire was designed to provide an improved experience for SMEs.Responders are allocated a let

97、ter score for each environmental issue area on which they have been scored,ranging from SME B to SME D.The data disclosed in 2024 through the CDP SME questionnaire will be used to develop and deploy a meaningful methodology for an SME A score for 2025 disclosure.Learn more about CDP here.1 Disclaime

98、r statement:the use by FuelCell Energy of any MSCI ESG research LLC or its affiliates(“MSCI”)data,and the use of MSCI logos,trademarks,service marks or index names herein,do not constitute a sponsorship,endorsement,recommendation,or promotion of FuelCell Energy by MSCI.MSCI services and data are the

99、 property of MSCI or its information providers,and are provided“as-is”and without warranty.MSCI names and logos are trademarks or service marks of MSCI.2 In no event shall this Sustainability Report be construed as investment advice or expert opinion as defined or implied by applicable legislation.T

100、he information contained or reflected herein is not directed to or intended for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted,and Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for th

101、e actions of third parties in this respect.3 Copyright 2024 Sustainalytics,a Morningstar company.All rights reserved.This sustainability report includes information and data provided by Sustainalytics and/or its content providers.Information provided by Sustainalytics is not directed to or intended

102、for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted.Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for the actions of third parties in this respect.Use of such data is subject to condit

103、ions available at https:/ Energy Fiscal Year 2024 Sustainability Report|13AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceProductAnnounced use of our fuel cell technology to power a biogeneration project for Sacramento Area Sewer District.Bu

104、ilding carbon capture technology with ExxonMobil to be piloted at its Rotterdam Manufacturing Complex.Delivering 42 1.4 MW of fuel cells to Gyeonggi Green Energy at the worlds largest fuel cell park.BiofuelCarbon CaptureLow-Carbon PowerPeopleClimate&EnvironmentGovernance2024 in Review:HighlightsSign

105、ed joint agreement on H2 production projects with Korea Hydro&Nuclear Power Co.,Ltd.Conducting feasibility study for a low-carbon fuel production facility in Malaysia with MMHE.Launched the worlds first“Tri-gen,”producing H2,water and electricity for Toyotas Port of Long Beach operations.Hydrogenpro

106、portion of women in our workforce.Up 3%from 23%in 2023completed hours of training by our employees.Up 64%from 13,643 hours in 2023Total Recordable Injury Rate(TRIR).Down 38%from 1.68 in 20231.04More than22,00026%avoided by our power generation platforms*avoided by our fuel cells*of waste diverted fr

107、om landfills and incinerationof our product materials recycled or reused at end of life428 MT NOx43%93%100%completion rate of human rights and anti-corruption training50%Board gender diversity38%Board ethnic diversityPrime Statusawarded by ISS ESGadded in 2024 to our fuel cell power generation opera

108、ting portfolioof power generated with patented technology as of end of FY202419.1 MW170,000 MT CO2More than16,000,000 MWh*The estimates of avoided emissions due to generation from the Companys fuel cells are calculated assuming that the generation from the fuel cells replaces electricity generated b

109、y the combustion of fossil fuels.Emissions factors used in the calculations are sourced from various databases,including published information provided by the U.S.EPA.FuelCell Energy Fiscal Year 2024 Sustainability Report|14AboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&Envi

110、ronmentPeopleGovernanceAppendixProductIn this section:Scalable Solutions to Accelerate Power Availability.16Decarbonizing Power.17Carbon Capture and Recovery.20 Hydrogen Electrolysis.22 Customer Service and Technical Support .24 FuelCell Energy Fiscal Year 2024 Sustainability Report|15AppendixAboutF

111、uelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceScalable Solutions to Accelerate Power Availability Our portfolio of advanced fuel cell technologies demonstrates our commitment to delivering versatile and sustainable energy solutions.Our carbonate fuel ce

112、lls not only efficiently convert biogas into clean energy but also play a vital role in water treatment applications,supporting a circular economy.Meanwhile,our solid oxide fuel cells provide highly efficient combined heat and power solutions,enabling customers to maximize energy utilization while r

113、educing emissions.Together,these innovations showcase how we are addressing diverse energy challenges and empowering a more sustainable future.Myalee MullerSenior Product ManagerAt FuelCell Energy,we strive to enable a safe,secure and practical journey to net zero.We believe every company,and every

114、industry,will continue to be impacted by energy policies.We design our technologies to complement every step and aspect of the energy conversation including renewables,electrification and the decarbonization of power,heavy industries,transportation and other sectors.Learn more about our solutionsFue

115、lCell Energy Fiscal Year 2024 Sustainability Report|16AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceDecarbonizing PowerDeep decarbonization efforts will be necessary to achieve global climate change mitigation targets.At FuelCell Energy,we

116、 offer practical and reliable solutions for energy decarbonization.Our innovative platforms co-produce valuable resources while mitigating the environmental impacts of industrial processes.Our fuel cell plants generate electricity and usable heat or steam from the same unit of fuel Our microgrids in

117、crease energy resilience while establishing predictable energy costs Our carbon-recovery platform separates and purifies carbon dioxide(CO2)recovered from our fuel cells as a valuable resource for utilization or sequestration We offer the only known platform that can capture carbon from an external

118、source and simultaneously co-produce power and hydrogenThe only fuel cell manufacturer with demonstrated performance of platforms over 10 MW,20 MW and 58 MWwith more than five years of run time.FuelCell Energy Fiscal Year 2024 Sustainability Report|17AppendixAboutFuelCell EnergyIntroduction2024 in R

119、eview:HighlightsProductClimate&EnvironmentPeopleGovernanceMicrogrids and Low-Carbon Power for Data Centers and BuildingsPower demand is growing faster than it has in previous decades.Due to variables such as the popularity of electric vehicles,the growth of the data center industry and the mandate t

120、o lower carbon footprints worldwide,electricity demand is projected to more than double by 2050.4 But grid reliability in many countries,including the United States,still varies.To adapt to this new reality,The Department of Energy(DOE)has estimated that the U.S.needs to grow its transmission infras

121、tructure by 57%by 2035.5 Fuel cell microgrids for optimized energy outcomesFuelCell Energy powers microgrid resiliency by providing large-scale,reliable power in the face of increasing power insecurity.As a trusted solution for critical power applications,we operate microgrids across the U.S.,which

122、provide reliable baseload power in the case of utility outages.Globally,we have demonstrated successful large-scale fuel cell power plants,including one 58.8 megawatt(MW)plant in South Korea.Our fuel cells are proven to operate with a variety of distributed generation assets,including battery energy

123、 storage and solar and wind power.Our low-carbon technology reduces emissions,limits risk and aims to avoid costly outages by facilitating a near-continuous source of clean,on-site power.Expanding decarbonized power production In 2024,we continued to build on our longstanding legacy of providing eff

124、icient power production using electrochemical platforms.FuelCell Energy manufactures fuel cell platforms and operates them on the basis of long-term service agreements,enabling our customers to reap the benefits of an efficient and reliable clean power supply.With options to run our power platforms

125、using different fuels,including biogas and zero-carbon hydrogen,our clients can progressively improve their carbon footprint while delivering energy security for local populations as well as efficient energy for businesses,bolstering local economies.A long-term commitment to clean energy in South Ko

126、rea In South Korea,we have been supporting affordable clean energy for more than two decades.We maintain and operate a 20 MW power plant for the Korean Southern Power Company,and in 2023,we strengthened our engagement through a long-term service agreement for an additional 20 MW fuel cell plant owne

127、d by Noeul Green Energy Co.,Ltd.In 2024,the South Korean energy company Gyeongii Green Energy Co.,Ltd.(GGE)purchased 42 1.4 MW upgraded carbonate fuel cell modules to replace existing fuel cell models at the Hwaseong Baran Industrial Complex,the worlds largest fuel cell platform.This platform,establ

128、ished in 2013 with FuelCell Energys design and technology,has the capacity to produce 58.8 MW of electricity from 42 fuel cell modules.It can power around 135,000 homes and generate 250 billion kilocalories of hot water,heating approximately 20,000 homes annually.Currently,our technology is deployed

129、 across South Korea and produces more than 100 MW of sustainable energy without combusting fuel.Additionally,this year,Fuel Cell Energy announced a partnership with Korea Hydro&Nuclear Power Co.,Ltd.through which the two companies will jointly pursue the development and implementation of hydrogen bu

130、siness initiatives.Our cooperative approach will combine South Koreas domestic clean energy sources with FuelCell Energys electrolyzer platform to produce lower-cost,domestic clean hydrogen,with the ultimate goal of diversifying South Koreas hydrogen supply.In 2024,we also reinforced our commitment

131、to the South Korean market during an event in Seoul,“Accelerating Koreas Energy Transition with Advanced Fuel Cell Solutions.”The event,which was attended by FuelCell Energy executives and leaders in the South Korean energy industry,outlined advancements made to our carbonate fuel cell platform,incl

132、uding its carbon capture abilities.We also presented on our solid oxide platform,which we believe will play a vital role in Koreas commitment to providing clean,efficient and reliable energy by supplying 15 gigawatts of power from fuel cells by 2040,according to the countrys Hydrogen Economy Roadmap

133、.In 2024,our fuel cell platforms generated more than1.7 million MWh of electricityThats equivalent to the grid electricity consumption of more than 35,000 average U.S.households for one year.*We estimate that more than170,000 MT CO2 and428 MT NOxwere avoided last year.*Note:the calculations are base

134、d on the U.S.EPA Greenhouse Gas Equivalencies Calculator https:/www.epa.gov/energy/greenhouse-gas-equivalencies-calculator.*Note:the estimates of avoided emissions due to generation from the Companys fuel cells are calculated assuming that the generation from the fuel cells replaces electricity gene

135、rated by the combustion of fossil fuels.Emissions factors used in the calculations are sourced from various databases,including published information provided by the U.S.EPA.4 Global Energy Perspective 2024,McKinsey,September 17,2024.5 National Transmission Needs Study,U.S.Department of Energy,Febru

136、ary 2023.Learn more about fuel cell microgridsFuelCell Energy Fiscal Year 2024 Sustainability Report|18AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceBiogas and Wastewater Treatment PlantsOur technology produces low-to-zero carbon power wit

137、h flexible fuel options including biogas,natural gas and hydrogen.We have been doing business in California since 2005,partnering with several government entities to provide innovative solutions for clean power including successful biogas-fueled projects in Riverside,San Bernadino and Tulare.A solut

138、ion for clean power using biogasIn 2024,we announced that our carbonate fuel cell technology would be used in a new biogeneration project developed by Ameresco for the Sacramento Area Sewer District.A 2.8 MW carbonate fuel cell platform will convert on-site biofuel into clean electricity and useful

139、heat.The project also has the potential to integrate our carbon recovery feature,which would make the renewable,carbon-neutral project carbon negative.As part of the system,waste heat generated by the fuel cell will be used to support the anaerobic digestion process,creating biogas,while our proprie

140、tary fuel clean-up system will remove unnecessary compounds and maximize efficiency.Using our technology,the city of Sacramento will further its sustainability goals by avoiding the use of combustion-based heat,as well as increase its resiliency and limit dependence on the local grid.Our carbonate f

141、uel cell systems are designed to thrive in applications that use anaerobic digester gas.Our system runs directly off digester gas at high efficiency to produce renewable electricity and useful heat.Our proprietary treatment system removes siloxanes and sulfur compounds to maximize useable biogas.The

142、 gas does not need to be cleaned up to pipeline standards,reducing cost and improving efficiency.The SureSource 1500 fuel cell plant cleans and consumes renewable biogas from the wastewater treatment process to generate carbon-neutral power and heat for the facility.CITY OF RIVERSIDE(1.4 MW)Carbonat

143、e fuel cells are uniquely capable of operating with on-site biogas No performance impact from low-Btu,diluted on-site biogas No need to upgrade gas to pipeline quality500,000operating hours of experience from14biogas-fueled projectsLearn more about fuel cell biogas systemsFUEL CELL BIOGAS SYSTEMSBio

144、gas in.Renewable energy out.FuelCell Energy Fiscal Year 2024 Sustainability Report|19AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceThe World Economic Forum has described CO2 as an industrial feedstock that could change the world,predicting

145、 trillion-dollar markets in the manufacturing sector.6 In purified form,CO2 can be used for water treatment,the creation of dry ice for pharmaceuticals and in a number of agricultural applications.In addition to capturing carbon dioxide from external sources,our fuel cell generation platforms have t

146、he capacity to extract and purify carbon dioxide produced by the fuel cell power-generation process allowing for the efficient utilization of a valuable resource.Carbon Utilization for the Food and Beverage IndustryCO2 is an essential raw material in the food and beverage industry,with global demand

147、 reaching close to 10 MT CO2 per year as of 2019,according to the IEA.7 Many companies rely on a stable supply of beverage-grade CO2 to keep their operations running,for purposes such as carbonating beverages and purifying water.Over the last few years,intermittent shortages of beverage-grade CO2 ha

148、ve forced some businesses to slow or cease production entirely.8 Often this CO2 is transported to its destination over long distances,at significant cost.But by using our novel carbon capture technologies,companies can simultaneously reduce the carbon footprint of generated power and provide critica

149、l raw materials for the food and beverage industry.Inside our fuel cells,methane is steam-reformed and converted into hydrogen and CO2,recycling the CO2 into a valuable product.By producing CO2 on-site,companies can reduce costs and provide vital materials for food processing,beverage carbonization

150、and other key industrial functions.In addition to capturing carbon dioxide from an external source,our fuel cell power generation platforms have the capacity to extract and purify carbon dioxide produced by the fuel cell power generation process.Our carbon separation technology allows carbon dioxide

151、 to be extracted and purified for utilization or sequestration.This is a win-win because it reduces the carbon footprint of generated power from our fuel cell platforms,while at the same time providing a valuable raw material for a range of industries,including the carbonated drinks sector.Carbon Ca

152、pture and RecoveryWe are able to incorporate our carbon capture-ready modified fuel cell module into new platforms as well as retrofit existing systems during upgrades.Over time,as we replace fuel cell stacks in our deployed modules,we plan to integrate our carbon separation technology,affording eve

153、ry FuelCell Energy customer the possibility of carbon separation and utilization.6 Using CO2 as An Industrial Feedstock Could Change the World,World Economic Forum,January 9,2020.7 Putting CO2 to Use,IEA,September 2019.8 Greenhouse Gas Emissions from Energy Data Explorer,IEA,August 2,2024.FuelCell E

154、nergy offers the only known platform that can capture carbon from an external source while simultaneously generating power and hydrogen.Learn more about carbon utilization for the food and beverage industryTake a virtual CO2 recovery tourON-SITE HEAT AND POWER WITH CARBON RECOVERYFuelCell Energy Fis

155、cal Year 2024 Sustainability Report|20AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernance 9 Greenhouse Gas Emissions from Energy Data Explorer,IEA,August 2,2024.Were developing a breakthrough emissions-reduction technology.Carbonate fuel cells

156、could capture CO2 more efficiently and cost-effectively.Well demonstrate this technology at ExxonMobils Rotterdam site starting in 2026.KEY TAKEAWAYSLearn more about the Esso Nederland BV Rotterdam Manufacturing ComplexPhoto:the pilot plant project at Esso Nederland BV Rotterdam Manufacturing Comple

157、xCarbon Capture in Hard-to-Abate IndustriesAccording to the IEA,carbon capture and storage is one of the critical technologies necessary to achieve net-zero emissions.Carbon emissions from energy combustion and industrial processes account for 89%of energy-related GHG emissions globally.9 Using carb

158、onate fuel cells,these emissions can be reduced dramatically,with cost-effective and efficient carbon capture.FuelCell Energy offers the first and only known platform that can capture CO2 as it produces electricity and hydrogen.Our flexible carbonate fuel cell platform has the unique ability to capt

159、ure CO2 as it produces power,and it can co-produce hydrogen and clean water.We believe this technology holds tremendous potential to accelerate decarbonization in industrial settings a feat which has historically been difficult to achieve.FuelCell Energy and ExxonMobil have been working together to

160、develop a technology which our research indicates could capture over 90%of CO2 from the exhaust of an industrial plant,preventing the CO2 from being released into the atmosphere.In 2024,we advanced our ongoing joint development agreement with ExxonMobil Technology and Engineering Company through Dec

161、ember 31,2026,to allow for continued development work on the technology,including support of the pilot project at the Esso Nederland BV Rotterdam Manufacturing Complex.Carbonate fuel cells have a unique ability to capture CO2 emissions from industrial sources before they are released into the atmosp

162、here,while simultaneously generating valuable co-products.This feature increases the overall efficiency of the capture process and provides additional value streams ultimately reducing the cost of carbon capture and storage and providing a path for a wide range of industries to work towards a decarb

163、onized future.FuelCell Energy Fiscal Year 2024 Sustainability Report|21AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceFlexible Hydrogen SolutionsUsing our platforms,hydrogen can be produced from non-renewable feedstocks with carbon capture,

164、providing a path to inexpensive,low-carbon hydrogen.It can also be made through the electrolysis process with zero-carbon renewable or nuclear power,a process with the potential to produce zero-carbon hydrogen.Hydrogen:Can be used as fuel to produce high-grade heat for industrial applications such a

165、s steel and glass production.This is in addition to its traditional uses for the refining process:making ammonia,cement and chemicals;in-building heating;combustion power-generation and residential heating.Is an effective medium for the storage of energy,offering a reliable,secure and environmentall

166、y friendly storage option.Can be produced near end users.Distributed hydrogen production avoids transportation of compressed or liquid hydrogen and can lessen the significant transmission infrastructure needed to support large-scale electrolysis.Provides near-continuous power and,with the ability to

167、 store hydrogen,enables overall grid independence or supplements the intermittent energy production of renewables such as wind or solar.Enables zero-emissions transportation by utilizing a zero-carbon feedstock as the fuel to power cars,trucks,buses,ships,trains and,in the future,aircraft and other

168、aerospace applications.Hydrogen Electrolysis At Fuel Cell Energy,our commitment to continuous,customer-driven innovation is at the core of everything we do.By leveraging cutting-edge advancements,we are not only enhancing the performance and reliability of our fuel cell platforms but also driving th

169、e development of groundbreaking carbon capture and carbon recovery technologies.These advancements reflect our dedication to providing sustainable energy solutions that support global decarbonization goals while delivering exceptional value to our partners and the communities we serve.Shankar Achant

170、aExecutive Vice President,Chief Product and Technology Officer10 Global Energy Perspective 2023:Hydrogen Outlook,McKinsey,January 10,2024.Reducing EmissionsLower-and zero-carbon hydrogen products support a clean energy future by providing a scalable,affordable path to reducing emissions.We believe h

171、ydrogen is a critical tool for our clean energy future.Its unique properties make it an ideal energy carrier,with the capacity to be readily and affordably scaled.By 2050,the consultancy McKinsey expects clean hydrogen demand to account for between 75%and 100%of total hydrogen demand globally.Across

172、 scenarios,clean hydrogen demand is expected to reach 125 to 585 million tons per year by 2050.10Learn more about our hydrogen production platformsFuelCell Energy Fiscal Year 2024 Sustainability Report|22AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopl

173、eGovernanceSolid Oxide ElectrolyzerSolid oxide electrolyzer cell(SOEC):A highly efficient,fuel-flexible and hydrogen-ready platform to support customers as they work to meet their sustainability goals.Our patented solid oxide fuel cell(SOFC)technology enables high-efficiency power generation,allowin

174、g for more affordable production of low-carbon power.These systems can be deployed in combined heat and power applications using natural gas,biogas or hydrogen fuel.The same cells can be used in electrolysis systems.A fuel cell makes power and water from fuel,but an electrolyzer makes hydrogen from

175、power and water.When used in electrolysis systems,our SOECs can operate at up to 100%electrical efficiency.With their small footprint,theyre easy to scale up or down given an organizations needs.Additionally,theyre flexible enough to ramp up or down depending on day-to-day energy availability and hy

176、drogen requirements.Investing in green hydrogen production for energy In 2023,we began commercialization of our unique solid oxide platform,which we believe is among the most efficient available power generation technologies.In 2023,we began expanding our solid oxide operations in Calgary,Canada and

177、 Danbury,Connecticut to enable our further growth.These developments followed significant investment in and support for our technology:In October of 2020,the U.S.DOE awarded FuelCell Energy and the Idaho National Laboratory a$12.5 million grant for a project integrating hydrogen production and nucle

178、ar power in a demonstration at the laboratory.Collaborating for green hydrogen on the global stageLowering the cost of energy remains a critical factor in scaling clean energy production and accessibility.Through a collaboration with Malaysia Marine and Heavy Engineering Sdn.Bhd.,a wholly owned subs

179、idiary of Malaysia Marine and Heavy Engineering Holdings Berhad,were designing large-scale electrolyzer facilities for potential deployment in Asia,New Zealand and Australia to help transform access to energy resources.We believe the design of these facilities will increase efficiency and reduce the

180、 cost of green hydrogen production.Our joint project is expected to produce zero-carbon hydrogen to decarbonize industrial,mobility and power applications.Solid oxide is among the most efficient commercially available electrolysis technologies:Our SOEC technology has demonstrated about 90%efficiency

181、(HHV)when operating solely on electricity and can operate at 100%efficiency(HHV)when paired with available excess heat from industrial or nuclear facilities.Learn more about the fundamentals of SOEC,and how it reduces the cost of hydrogen production,from our white paper.HOW DOES SOEC WORK?Our Calgar

182、y facility is integral to our solid oxide fuel cell development.By expanding our facilities,increasing production capacity and investing in cutting-edge R&D we are driving efficiency improvements and solidifying our leadership in this critical sustainable technology.Guenther BrandstetterGeneral Mana

183、ger,Solid Oxide Development(Canada)FuelCell Energy Fiscal Year 2024 Sustainability Report|23AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceOur dedicated account managers work to ensure that our systems daily needs are always met.Operation t

184、echnicians in our Global Monitoring and Control Center(GMCC)monitor systems remotely,24/7,to ensure that they are operating at peak efficiency and provide data-driven insights to proactively anticipate issues.Our experienced field service technicians staff service centers near our customers and crea

185、te proactive maintenance plans,reducing downtime and maintaining availability for rapid on-site support.Customers can access a customized dashboard in real time via FuelCell Energys online portal to view their systems key metrics to continuously improve performance.We operate and maintain all of our

186、 project platforms for the life of the project,regardless of ownership structure.For any operating platforms not covered by a power purchasing agreement(PPA),our customers enter into a long-term service agreement(LTSA),which can span as many as 20 years.Under both of these ownership structures,we of

187、fer a comprehensive portfolio of services including engineering,project management and installation as well as long-term operating and maintenance programs.In addition to our service agreements,we provide comprehensive warranties protecting against manufacturing or performance defects.Our environmen

188、tal and safety policies are applicable to all the fuel cell plants we operate,regardless of ownership.Safety data sheets are available to 100%of our clients,and region-specific EHS personnel provide support for all of FuelCell Energys products.Customer Service and Technical Support At FuelCell Energ

189、y,we believe in providing dependable support for the life of our systems and offer support 24 hours a day,seven days a week.We approach customer service and support through a comprehensive lens:From a world-class ecosystem of partners ensuring safe and timely installation to waste management on deco

190、mmissioned products,we work tirelessly to increase the efficiency of our systems and minimize waste.Learn more about our customer service and technical support.FuelCell Energy Fiscal Year 2024 Sustainability Report|24AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&Env

191、ironmentPeopleGovernanceClimate&Environment In this section:Working Towards Net Zero .26Climate Risks and Opportunities .29 Environmental Stewardship.31 Our Approach to Circularity.35 FuelCell Energy Fiscal Year 2024 Sustainability Report|25AppendixAboutFuelCell EnergyIntroduction2024 in Review:High

192、lightsProductClimate&EnvironmentPeopleGovernanceFuelCell Energy Fiscal Year 2024 Sustainability Report|26AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceAs a company providing best-in-class solutions for a clean energy future,were proud of o

193、ur dual commitments:to offer innovative,sustainable products to help our customers meet their environmental goals,and to ensure that our own operations maintain a minimal climate footprint.Our sustainability strategy complements our business process,providing avenues to continuously reduce our emiss

194、ions,mitigate waste and protect the natural environment throughout our manufacturing and production processes.Working Towards Net ZeroOur Net-Zero ApproachFuelCell Energy is a business delivering solutions for a greener future,and a company committed to enabling a world empowered by clean energy.As

195、such,our most significant positive climate and environmental impacts are delivered through our fuel cell technologies,as well as our other offerings to our customers around the world.Weve continued to innovate and enhance our current platforms to give our customers the best options for carbon manage

196、ment,emissions reduction and other environmental benefits.In addition,as a manufacturing company with plans for growth,we are committed to ensuring that our own operations are consistent with global sustainable development objectives.In fiscal year 2024,we continued addressing and managing the mater

197、ial impacts of our own operations.Our key advancements in climate change mitigation and environmental strategy include:Performing a corporate-level GHG emissions inventory for 2024.Completing a product-level life cycle assessment(LCA)to understand and potentially reduce GHG emissions throughout the

198、value chain,from production through decommissioning.Conducting a climate risk assessment aligned with TCFD to analyze the physical and transition risk across our manufacturing facilities,inform our business strategy and take appropriate mitigation measures.Continuing to develop our sustainability st

199、rategy to prioritize and holistically address our key ESG responsibilities and stakeholders needs.Successfully integrating an ESG governance model into our business processes.FuelCell Energy Fiscal Year 2024 Sustainability Report|27AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsPro

200、ductClimate&EnvironmentPeopleGovernanceGHG Emissions and Energy ConsumptionFuelCell Energy takes a systemic approach to climate change,including adaptation and mitigation strategies,in keeping with our FuelCell Energy Sustainability Strategy.We are committed to decarbonization along our value chain

201、from our supply chain to our own operations and the use phase of our products.In addition to furthering our own core purpose of empowering our customers with net-zero technology and solutions,we continuously aim to reduce our operational carbon footprint.This includes making organizational and techn

202、ical improvements to continually reduce our GHG emissions.We have evaluated our GHG emissions for the last five years and continue to track and carefully analyze our carbon footprint on a regular basis.We measure our carbon footprint assessment in accordance with the GHG Protocol,applying the financ

203、ial control approach when identifying our operation boundaries.We classify our GHG emissions as follows:Scope 1 emissions are GHG emissions directly caused by FuelCell Energy activity.We calculate Scope 1 emissions based on the fuel consumptions of our fuel cell plants as well as the natural gas and

204、 industrial gases used in our manufacturing processes.Scope 2 emissions are associated with the consumption of purchased electricity by our offices and manufacturing facilities.We calculate these emissions based on the electricity consumption data received from electricity suppliers.Scope 3 emission

205、s encompass indirect emissions that occur in our upstream and downstream activities,including the emissions of our suppliers and customers.We have identified the following categories as the most significant to our business:Purchased goods and services Capital goods Fuel-and energy-related activities

206、 not included in Scope 1 or Scope 2 Upstream transportation and distribution Waste generated in operations Use of sold productsThe categories that are considered relevant but not significant are:Waste generated in operations Business travel Employee commuting End-of-life treatment of sold productsBa

207、sed on our analysis,including the product-level LCAs conducted in 20232024,the following categories are classified as irrelevant to our activities and are therefore not included in our carbon inventory:Upstream leased assets Processing of sold products Downstream leased assets Franchises Investments

208、In 2024,the main source of our Scope 1 and 2 emissions remained associated with the consumption of natural gas and purchased electricity.Between 2023 and 2024,FuelCell Energy experienced growth across key activity metrics,including the size of our power generation portfolio and manufacturing capabil

209、ities.Commensurate with this growth,we experienced increases in certain GHG inventory categories driven by increased activity factors like consumed natural gas and purchased electricity.Compared to 2023,our total absolute emissions in 2024 increased 39%overall,inclusive of our Scopes 1 and 2 invento

210、ries.The increase is associated with the new fuel cell power plants added to our portfolio,including the Toyota Project,which became operational during the first quarter of fiscal year 2024,and the Derby Projects,both of which became operational in December 2023.In 2024,we completed our LCA that all

211、owed us to identify the most significant categories of Scope 3 emissions.Purchased goods,or Scope 3 category 1,is one of the most substantial categories in our value chain emissions.We continue to seek partners who can provide products that are more carbon efficient and work with our dealers and sup

212、ply chain partners to improve the environmental profile of our value chain activities.We are also working to better manage the lower-impact Scope 3 categories over which we have direct control,including employee commutes and business travel.Learn more about our 2020-2024 carbon inventory and energy

213、consumption on p.61 of this report.FuelCell Energy Fiscal Year 2024 Sustainability Report|28AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceRisk ManagementProcess and management of risk:An assessment of climate-related financial risks is inc

214、luded in our annual enterprise risk management process,which is led by our senior leadership team and approved by the Board of Directors.Short,medium and long-term risk factors across current and emerging ESG-related risks,including climate-related risks,are assessed and prioritized for mitigating a

215、ction.In 2024,we performed a detailed scenario analysis of physical climate risks and evaluated transition risks,in line with the TCFD methodology.Climate change integration:Mitigating climate change is an integral consideration across all of our business activities,in line with our purpose of empow

216、ering a clean energy future.Our goal is to help our customers reduce their carbon footprint and climate change impact,and in doing so,we aim to ensure that our own operations achieve this goal.Resource efficiency and energy and emissions reduction are key objectives within our operations,from design

217、 to delivery to customer service,and are addressed at every stage of our planning,manufacturing and supply.StrategyOur corporate purpose is to empower a clean energy future.To support this,and our business strategy,we have formalized a Sustainability Strategy that encompasses 12 action areas that wi

218、ll define our focus in the coming years,including those related to climate change and achieving net-zero emissions.We incorporate climate and carbon considerations into every aspect of our business.Climate-related risks and opportunities:For FuelCell Energy,we believe that climate change opportuniti

219、es outweigh the risks,since our company is focused on driving emissions down across the value chain and the facilitation of access to affordable clean energy,including zero-carbon hydrogen as an essential power source.As the need for clean energy grows in the U.S.and around the world,and governments

220、 become bolder in incentivizing a transition to clean energy,we expect to grow our business in a sustainable manner.GovernanceBoard oversight:FuelCell Energys Board of Directors is actively engaged in guiding our sustainability strategy and ESG performance.The Board is supported by the Nominating,Go

221、vernance and Sustainability Committee,which has oversight of the evaluation,management,mitigation and communication of our climate-related risks and opportunities.The Board also reviews and approves specific,climate-related goals and targets,including our target to deliver net-zero value chain emiss

222、ions by 2050.The Senior Vice President of Investor Relations provides quarterly reports to the Board on climate risks,opportunities and performance against our net-zero target.Managements role:Accountability for our net-zero strategy and performance rests with our Chief Financial Officer and Chief M

223、arketing and Sustainability Officer,who are supported by a cross-functional team of senior leaders,including the Chief Operating Officer and the Chief Product and Technology Officer.This team monitors performance and provides support and guidance to the organization to help reach our goal.Metrics an

224、d TargetsMetrics:We measure our Scope 1,2 and 3 emissions,as well as biogenic emissions,in accordance with the GHG Protocol standards.Performance:During fiscal year 2024,we performed our carbon inventory and continued to develop our approach to achieve net-zero emissions by 2050,including a net-zero

225、 action plan.Targets:We are committed to achieving net-zero emissions across our value chain by 2050 and have defined our net-zero path to deliver this target.The Task Force on Climate-related Financial Disclosures(TCFD)framework,developed by the Financial Stability Board(FSB),is a voluntary framewo

226、rk that facilitates effective climate-related disclosures that could promote informed investment and other financial decisions.The following is an overview of our current operations,in line with the TCFD framework.Climate Risks and OpportunitiesFuelCell Energy Fiscal Year 2024 Sustainability Report|

227、29AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceClimate Scenario AnalysisIn accordance with the TCFD recommendations,we categorize our risk assessment into two primary areas:risks associated with the physical impacts of climate change,and

228、risks and opportunities related to the transition to a lower-carbon economy.To this end,we are continually working to enhance our methodology and data accuracy.In 2024,we conducted an in-depth analysis of climate-related risks and opportunities.Transition risks and opportunities related to climate c

229、hange are integrated into the business cases for our investments in new assets and activities,and we consistently monitor political,technological,market and reputational developments.Additionally,during the design and construction phases of our assets,we perform climate risk assessments to evaluate

230、both acute and chronic weather patterns.A crucial element of risk and opportunity analysis,as recommended by the TCFD,is the use of scenario analysis across various time horizons to account for the long-term nature of climate change.The key findings from the scenario analysis of physical risks are s

231、ummarized in the table below.FuelCell Energy Fiscal Year 2024 Sustainability Report|30AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceEnvironmental StewardshipEnvironmental Management SystemAs a fuel cell manufacturer,we facilitate the produ

232、ction of power and hydrogen in an efficient,environmentally friendly way.We are committed to comprehensive environmental protection throughout the entire life cycle of our systems from design,sourcing and manufacturing through operation,decommissioning and recycling.Our overarching aim in the years

233、to come is to further reduce the environmental footprint of our fuel cells and our entire company.Our EHS department is responsible for operational environmental protection.We have implemented an integrated,high-quality occupational safety,health protection and environmental management system.This s

234、ystem is applied across the entire company,including in all global facilities and sites.Our management system is certified according to the relevant International Organization for Standardization(ISO)standards:9001:2015,14001:2015 and 45001:2018.More than 90%of employees are under the scope of the m

235、anagement system,including the entirety of our U.S.and German operations.Moreover,it enables us to meet our compliance requirements and environmental objectives in line with the principles defined by our EHS Policy.We regularly conduct internal audits to review and optimize our processes,with the ai

236、m of continuous improvement.By embedding rigorous practices and innovative solutions into our global manufacturing and operations,FuelCell Energy strives to minimize impact while maximizing efficiency.Our environmental management systems reflect our dedication to preserving natural resources,reducin

237、g emissions and driving the transition towards a greener future.Robert StroblSenior Vice President,Europe,Carbonate Manufacturing and OperationsEHS PolicyFuelCell Energy Fiscal Year 2024 Sustainability Report|31AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&Environme

238、ntPeopleGovernanceWasteOur design and manufacturing processes aim to minimize waste throughout our production processes and optimize the reuse and recycling of our operational waste.We generate modest amounts of waste through our manufacturing and R&D facilities,aiming to minimize waste at the sourc

239、e and work on increasing the reuse of parts and materials in our operations.As part of our ISO-certified Environmental Management System,we maintain a cradle-to-grave Waste Management Policy designed to ensure that all waste types(including hazardous waste,non-hazardous waste and universal waste)are

240、 properly and safely managed from their generation through handling,storage and preparation for transportation and disposal.The policy defines how waste is managed in each waste stream in accordance with applicable federal,state and local regulations.We also maintain a Waste Minimization Program in

241、which we apply the following practices,among others:Pollution prevention efforts to reduce or eliminate pollution and waste at the source,including recovery of metals via recycling and energy recovery through the conversion of nonrecyclable waste materials into usable heat,electricity or fuel Incorp

242、oration of waste minimization into management practices to ensure ongoing efforts to reduce waste in product design,production operations and maintenance Incorporation of waste minimization as an integral part of organizational strategies to increase productivity and quality Working with suppliers t

243、o develop products and procedures that will assist in reducing waste Working towards internal targets for the reduction of both the volume and toxicity of waste streams Maintaining an employee awareness and training program to involve employees in waste minimization planning and implementationMost o

244、f the waste we divert to landfills is non-hazardous waste for which there is no current viable alternative.We maintain efforts as part of our Waste Minimization Program to replace input materials with non-hazardous options wherever possible and to reduce overall waste in our processes.The generation

245、 of both hazardous and non-hazardous waste is one of the most heavily reviewed and controlled environmental aspects at our factories,R&D facilities and plant installations.At all of our sites,we collaborate with authorized service providers specializing in waste management to handle the waste genera

246、ted.Internally,we continuously track our waste generation at the manufacturing level on a quarterly and annual basis.When tracking our impacts associated with waste,we differentiate not only between hazardous and non-hazardous waste,but also between various waste recovery and disposal methods in acc

247、ordance with the GRI Standards.2024 Total Waste:Hazardous and Non-Hazardous,Metric TonsHazardous 30.54Non-Hazardous 441.8 94%6%2024 Total Waste by Type,Metric TonsMetals 67.6Other recyclable 131.3Other waste 273.458%28%14%FuelCell Energy Fiscal Year 2024 Sustainability Report|32AppendixAboutFuelCell

248、 EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceHazardous SubstancesWe are committed to the highest standards of safety and environmental stewardship in managing hazardous chemicals and substances of concern,ensuring compliance with evolving regulations and prio

249、ritizing the well-being of our workers and the environment.FuelCell Energy complies with laws regulating the use of chemical substances and their potential impacts on both human health and the environment,such as the Toxic Substances Control Act.We actively monitor and manage our operations as new c

250、hemicals regulations are developed.We regularly check whether material substitutions are possible to reduce the overall number of hazardous materials as well as their respective water hazard class,thus reducing the extent of any potential environmental damage.Such substitutions can make it easier to

251、 develop occupational safety,environmental and health protection measures,while also simplifying logistics processes and reducing operating expenditure and administrative effort.We employ a range of measures at our manufacturing facilities to protect our employees,partners and the environment agains

252、t hazardous materials.We pay close attention to handling hazardous materials in an environmentally friendly way and to safely transporting these materials to project sites and regional service points.As a result,training courses play an integral role for the safe handling,disposal,storage and transp

253、ortation of hazardous materials.We ensure that all personnel who work with and around hazardous materials are sufficiently trained as part of our Hazard Communication Program.Hazardous Materials Management ProgramWe obtain or develop Chemical Safety Data Sheets(SDS)for all chemicals utilized during

254、the fuel cell manufacturing process.The Chemical SDS are stored in the online library accessible to all employees.We follow a thorough chemical review process to ensure that our EHS group reviews all new chemicals before they come into a manufacturing facility.In 2024,key employees were given a refr

255、esher training on the new chemical review process.Responsible waste management is a cornerstone of our commitment to sustainability.By minimizing waste generation,optimizing recycling and ensuring safe disposal practices,we not only protect the environment,but also set a standard for operational exc

256、ellence.Leah ScottManager,Environmental,Health and SafetyFuelCell Energy Fiscal Year 2024 Sustainability Report|33AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceWaterWe are modest users of water,which we use for power generation,the manufac

257、turing processes,R&D processes and non-production related maintenance processes.Our water consumption in fiscal year 2024 was 0.4 megaliters,or 5%of the total water withdrawal,which is 10%lower than in fiscal year 2023 11.All the water we use is withdrawn from municipal systems;part of it is process

258、ed and released into the air,while the remaining water is returned to the municipal systems.We strive to minimize our water use through water-saving mechanisms at all our facilities.In addition to our commitment to water efficiency and conservation in our manufacturing facilities,our carbonate fuel

259、cells have the capacity to produce usable water while generating electricity.Our Tri-gen power plant in Long Beach,California can produce up to 1,440 gallons of excess water per day through an electrochemical process that converts renewable biogas into power,while co-producing renewable hydrogen.The

260、 excess water is then distributed to our clients car wash operations.Air Pollution We recognize that air emissions from our operations can have significant environmental and health implications.Therefore,we prioritize emissions reduction and control through the following initiatives:Emissions monito

261、ring and reporting:We employ state-of-the-art monitoring systems to track and analyze emissions from our facilities,enabling us to provide real-time data monitoring and reporting to regulatory authorities and stakeholders.Emissions reduction:We seek to minimize our emissions through the use of contr

262、ol technologies,chemical management best practices and material substitution.Our unique non-combustion technology produces power without emitting harmful emissions.Our manufacturing facilities do not impact local air quality.In particular,our processes emit only insignificant amounts of emissions,su

263、ch as nitrogen oxides(NOx)and sulfur oxides(SOx)or particulates through our production and our power-generating platforms.In 2024,we successfully demonstrated continuance of minimal harmful emissions produced across our power plants and obtained renewed Distributed Generation certifications with the

264、 California Air Resources Board(CARB).Obtaining the certifications validates the clean air profile of our plants and allows local air quality management districts in California to exempt the fuel cell installation from the clean air permitting process.BiodiversityFuelCell Energy is committed to prot

265、ecting biodiversity,and our manufacturing practices are designed to minimize disruption to our natural environment.Protecting biodiversity is an integral aspect of our product development,and we also take it into consideration when commissioning new operational sites.To the best of our knowledge,we

266、do not operate facilities located in or near protected areas or with valuable levels of biodiversity.As we use natural resources such as water and fuels in our offices,manufacturing facilities and sites,we interact with the environment and could potentially introduce negative impacts into local ecos

267、ystems,habitats and species.Therefore,the conservation of biodiversity is integrated into our environmental management system as well as into instructions for both manufacturing locations and project sites,with the goal of avoiding or minimizing the negative impacts of our operations.Wherever we cou

268、ld cause potential impacts,engineering and administrative controls are initiated to mitigate possible negative influence on the environment.Water Usage in Operations,Megaliters 11 Water consumption:the difference between water withdrawal and water discharged.FuelCell Energy Fiscal Year 2024 Sustaina

269、bility Report|34AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceOur Approach to CircularityFuelCell Energy prioritizes circularity throughout the entire product life cycle,from design to end-of-life management.We are committed to continuous

270、improvement in resource efficiency and conservation.In 2024,we developed a framework for our approach to circularity which includes five stages of the product life cycle.The framework outlines the primary actions we take to keep materials in circulation,reducing waste and the necessity for new raw m

271、aterials,and are gradually incorporating closed-loop principles into our processes.By design,93%of our entire energy platform(on a weight basis)can be reused or recycled at the end of its useful lifeFuelCell Energy Fiscal Year 2024 Sustainability Report|35AppendixAboutFuelCell EnergyIntroduction2024

272、 in Review:HighlightsProductClimate&EnvironmentPeopleGovernance Circular Product Design and EngineeringDesigning for durability,longer lifespan,material and resource efficiency in the manufacturing phaseWe consider variables associated with the durability,efficiency,maintenance,ease of repair and re

273、cyclability and reuse of materials during the design stage,while aiming to extend the useful in-service life of our product and its parts.Durability and longer lifespan are some of the key considerations in the selection of materials.Selecting the right material reduces the need for frequent replace

274、ments.Our balance of plant(BOP),representing the mechanical and electrical components surrounding the fuel cell,is designed to have an operating life of 25 to 30 years.In 2024,we continued investing in research and development,focusing on the advancement of our core carbonate and solid oxide cell mo

275、dule capabilities and supporting our commercial fleet with product enhancements and improvements.As it relates to our fuel cell modules,these improvements center around delivering more uniform temperature distribution within the stack modules.Our intent is to improve output over the life of the modu

276、les and achieve the products expected design life.Continued extension of design life and output of our modules over time is a core research and development focus.Product EfficiencyThe electrical efficiency of our carbonate fuel cell solutions ranges from approximately 47%to 60%upon initial operation

277、s of our platforms,depending on the configuration.When configured for combined heat and power(CHP),our system efficiencies can potentially reach up to 90%,depending on the application.Our solutions are designed to deliver high electrical efficiency where the power is used,avoiding transmission line

278、losses,which average around 5%for the U.S.grid.In 2024,we continued exploring new ways of further improving the efficiency and effectiveness of our platforms.Our objective is to continue improving our competitive position.We plan to meet these goals by investing in areas such as the offering of mult

279、iple platform solutions.Additionally were investing in methods for producing clean hydrogen,solid oxide and carbon recovery and carbon capture in order to add value for customers looking for clean and renewable energy and to aid in their decarbonization goals.We continue to work on improving and mat

280、uring our products,implementing lessons learned into our product designs and manufacturing process subsequent to introduction.We also have continued to invest in improvement initiatives with respect to our core carbonate technology.This includes reducing internal temperatures to improve thermal mana

281、gement and improving the performance of our electrical balance of plant.Additionally,were exploring implementing design changes to our commercial platforms,which are expected to improve overall product performance and efficiency.Life Cycle AssessmentTo understand,measure and reduce the environmental

282、 impact of our products over the entire life cycle and to identify circularity potentials,we conduct regular LCAs.This year,we completed a product-level LCA for our standard carbonate fuel cell platform(natural gas and biogas options),as well as for the fuel cell with carbon recovery.The LCA focused

283、 on carbon footprint assessment and was conducted in accordance with the ISO standards 14040:2006,14044:2006,14067:2018 and 14026:2017.The results from LCAs are used to:Identify opportunities to improve environmental performance in all life cycle stages,from the design of the product to its end of l

284、ife Provide us with detailed information on the environmental impacts of our products,such as the highest emission materials,manufacturing processes,transport,installation and operations activities and inform our decisions and drive circularity initiatives Communicate environmental performance and i

285、mprovement potential to internal and external stakeholders Give our customers clear insights into how our products will affect their emissions as they continue to focus on clean technologies Sustainable Materials and Supply Chain We prioritize the use of renewable and recyclable materials,parts with

286、 lower embodied carbon emissions and sourcing from responsible suppliers.This is an essential part of our strategy to engineer and develop sustainable products.In 2023,we invested in a digital manufacturing insights platform.This platform improves our product cost management and design,enhancing man

287、ufacturability,sustainability and supplier collaboration.It also allows us to reduce material waste by optimizing product design,shape and material.The system enables access to carbon data on a product-level model.Through this system,we can compare suppliers globally,identify carbon emissions of var

288、ious components and materials and choose best-in-class suppliers while minimizing carbon emissions.In 2024,we continued integrating the system into our design,engineering and procurement processes.FuelCell Energy Fiscal Year 2024 Sustainability Report|36AppendixAboutFuelCell EnergyIntroduction2024 i

289、n Review:HighlightsProductClimate&EnvironmentPeopleGovernance Efficient Manufacturing and OperationsResource-efficient operations contribute to our broader circularity approach and improve our product life cycle footprint.This includes reducing our energy and water consumption,as well as mitigating

290、waste and pollution in our facilities.We aim to enhance our environmental management systems,aligned with ISO 14001:2015,and improve our resource efficiency through sustainable design and lean practices.We strive to maximize metal recovery,such as scrap,at our manufacturing sites and work with recyc

291、lers and waste managers who collect and recycle scrap materials.These reuse and recycling solutions allow us to reduce the portion of virgin materials and create material efficiency at the production level by capturing value from manufacturing reverts.Extended UseWe operate and maintain all of our p

292、lants for the life of the project,regardless of the ownership structure.We offer a comprehensive portfolio of services,including engineering,project management and installation,and long-term operating and maintenance programs,including trained technicians who remotely monitor and operate our platfor

293、ms around the world,24 hours a day and 365 days a year.We commit to providing high-standard maintenance and repair services and continuous optimization of our installed base to ensure safe,resilient and long-term operation.End-of-Life SolutionsWe maintain a chain of custody and responsibility for ou

294、r products throughout the product life cycle and strive for“cradle-to-cradle”sustainable business practices,incorporating sustainability into our corporate culture.When our platforms reach the end of their useful lives,we decommission them,refurbish and reuse certain parts and then recycle most of w

295、hat we cannot reuse.By weight,approximately 93%of the entire power plant can be reused or recycled at the end of its useful life.On a regular basis,our Global Monitoring and Control Center(GMCC)determines if there is a need for platform repairs or upgrades.The materials that cannot be reused are sen

296、t to recycling facilities.As a result,out of an approximately 110,000-pound carbonate fuel cell module,the weight of components that go to landfill without a recycling,reuse or refurbishment stream comprises approximately 6,300 pounds,or less than approximately 7%of its total weight.Typical componen

297、ts that go directly to landfill without refurbishment or recycling are sealants,adhesives,filters,tape,non-recyclable plastics,insulation materials and ceramic components.In 2024,we made adjustments to our waste analysis to support a more accurate picture of our waste management,reuse and recycling.

298、We also started exploring new ways to recover metals in our internal manufacturing shops to increase recoverability rates and deliver more reclaimed metal to our supply chain and back to the production processes.When we decommission our platforms at the end of their useful life,there are multiple en

299、d-of-life management pathways available:Parts can be upgraded,repaired and returned to the manufacturing process,reducing the number of new parts required for production.Parts can be recycled and returned to the raw material stream,then re-enter the value chain.In 2024,we began efforts to adopt lean

300、 operating principles more fully at FuelCell Energy.The lean methodology is a proven framework to effectively identify waste,seek continuous improvement and pursue exceptional achievements in quality and productivity.Kix RyenSenior Vice President,Chief of Staff and Transformation OfficerJan de Bakke

301、rSupervisor,Project Engineering The mild environment of carbonate fuel cells means that many components can be recovered from end-of-life modules,refurbished to as-new condition and redeployed into new builds.In 2024,we were focusing on working with our module deconstruction vendors to identify best

302、 opportunities for component reuse,which we will be pursuing into 2025.This will reduce our carbon footprint,reduce the amount of virgin material sourced and of course significantly reduce cost.FuelCell Energy Fiscal Year 2024 Sustainability Report|37AppendixAboutFuelCell EnergyIntroduction2024 in R

303、eview:HighlightsProductClimate&EnvironmentPeopleGovernancePeopleIn this section:Workforce Development and Training.39Talent and Belonging.41 Safety,Health and Well-Being.45 Responsible Supply Chain.47Community Impact.48 FuelCell Energy Fiscal Year 2024 Sustainability Report|38AppendixAboutFuelCell E

304、nergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceAt FuelCell Energy,were building an exciting,inclusive community while striving to enable a world empowered by clean energy.We believe that the most innovative workplaces embrace people of all experiences,and were en

305、ergized by bringing a diverse group of committed individuals together to work towards a shared vision.Workforce Development and TrainingPrioritizing Our PeopleWe dont just believe in building a sustainable future we also believe in creating a sustainable business community for our partners and emplo

306、yees.These practices include hiring from a diverse candidate pool,fostering deep engagement as part of our company culture and training the next generation of innovators.Some notable highlights from fiscal year 2024 include:The company-wide deployment of a mentorship program,SuccessFUEL,to exchange

307、ideas and provide support outside traditional reporting structures A successful first year of PowerFUEL Women,our employee resource group for women and their allies An employee engagement survey suggesting improved performance in key areas including accountability and communication An expanded strat

308、egic diversity,inclusion and belonging plan outlining critical initiatives and metrics for success A new employe resource group,Fuel4Life,devoted to developing key initiatives around physical,emotional and financial wellnessEmployee Engagement Survey A continuous culture of excellence A companys cul

309、ture is continuously evolving.We strive to listen to our people and iterate accordingly.In 2023,FuelCell Energy launched an annual employee engagement survey to better understand the needs of our growing global workforce.Weve continued this practice into 2024.The response rate for this years employe

310、e engagement survey was 75%,and we were excited to see progress in a number of areas.Our community indicated we had improved performance in several ways,including:Performance and accountability Communication Management effectiveness Noting some areas in which FuelCell Energys workforce suggested roo

311、m for improvement,we launched a series of focus groups with team members to better understand concerns and ensure better outcomes.FuelCell Energy Fiscal Year 2024 Sustainability Report|39AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceDevelo

312、ping the Talent of Tomorrow As a leader in our industry,we take our responsibility to train the workers of today and of tomorrow seriously.Our training and development programs are designed to foster best-in-class safety practices and empower strong leaders in the sustainability sector.Nurturing the

313、 next generation of clean energy pioneersAt FuelCell Energy,weve been thrilled to introduce young scientists and engineers to our vision for a clean energy future.This past year saw the continuation and expansion of our internship program,which launched in 2023.In 2024,we welcomed six students from

314、five universities,all studying mechanical or chemical engineering,to our Danbury and Torrington,Connecticut,offices.In our Calgary location,13 additional interns from four universities joined our rigorous co-op program,in which young people are placed in our mechanical,automation,engineering,materia

315、ls or research departments.Over the course of an eight-to 16-month term,co-op participants are assigned to a specific project,building critical skills and applying them to meaningful work.Leveraging the diversity of our people for success This year,we launched SuccessFUEL,a formal mentorship program

316、 co-developed by FuelCell Energys Human Resources department,and PowerFUEL Women,our employee resource group for women and allies.The program was designed to facilitate the exchange of new ideas and enable growth within our community,as well as leverage the diversity of our people for our collective

317、 benefit.By building active and trusting relationships across reporting lines,mentors and mentees can accelerate their professional development and freely exchange ideas to meet their business goals.For junior employees from groups traditionally under-represented in the science,technology,engineerin

318、g and mathematics(STEM)fields,a formal mentorship opportunity can represent a particularly critical opportunity for support.The program pairs employees seeking an opportunity for professional development with leaders who are eager to provide career guidance and support.For leaders,the engagement bri

319、ngs fresh ideas and an opportunity for reflection.During a four-month pilot program in early 2024,open exclusively to members of PoweFUEL Women,mentors and mentees met every two to four weeks.The pilot had excellent results:100%of the 20 mentors and mentees opted to continue their relationship,resul

320、ting in a broader rollout of the program across the entire FuelCell Energy community in July.Our people remain our greatest asset.This year,we made tremendous strides by enhancing training and professional development,formalizing mentorship partnerships and expanding our internship program.These ach

321、ievements not only empower our workforce,but also strengthen our ability to deliver world-class sustainable energy solutions.Christine Alba QuarantoDirector,Learning and Talent Development2Two full-time employees at FuelCell Energy deliver in-person training across the organization year-round.Approx

322、imately$538,000invested in formal training for employees in fiscal year 2024.75%of employees strongly agreed or agreed that they were provided with sufficient training to perform their roles in our fiscal year 2024 Employee Engagement Survey.38hours of formal training per employee in fiscal year 202

323、4 were delivered,supplementing significant on-the-job training for all employees.100%of FuelCell Energy employees are eligible for an annual performance review.In fiscal year 2024,100%of employees received a review.FuelCell Energy Fiscal Year 2024 Sustainability Report|40AppendixAboutFuelCell Energy

324、Introduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceWe believe a diverse company is a strong company,and that innovation is fostered in a safe and empowering community whose members possess varied backgrounds and viewpoints.Our strategic diversity,inclusion and belonging f

325、ramework guides how we foster an inclusive workplace that supports all employees.Talent and BelongingOur Belonging Strategy We continuously reinforce the principles of diversity,inclusion and belonging through our hiring practices,our Human Resources policies and in our employee training.FuelCell En

326、ergy tracks key workforce diversity metrics at every level of the organization and conducts regular audits to identify and address disparities within the business.As a growing company,we have identified three pillars of focus as we continue to build a workplace in which inclusivity is valued and eve

327、ry employee feels comfortable.Workforce Diversity at FuelCell Energy,Fiscal Year 2024White 69%People of Color 31%Employees DiversityPeople of Color Representation in WorkforceAsian 11.0%Hispanic or Latino 10.1%Black or African American 6.9%Two or More Races 3.2%FuelCell Energy Fiscal Year 2024 Susta

328、inability Report|41AppendixAboutFuelCell EnergyIntroduction2024 in Review:HighlightsProductClimate&EnvironmentPeopleGovernanceEducation and building awareness FuelCell Energy provides ongoing education to promote understanding and respect among employees.We believe such ongoing learning,including tr

329、aining programs focused on cultural competency and unconscious bias,can raise awareness and foster a respectful environment.We also prioritize inclusive communications,striving to ensure that company policies and messaging are gender neutral and mindful of difference.We are in the process of develop

330、ing additional comprehensive training for all employees,focusing on understanding the complex interplay of diversity,equity,identities,cultures and abilities in the workplace as well as the importance of inclusive language and spaces.Community engagement and partnerships As a company,we work to faci

331、litate partnerships and engagements that help ensure that the communities in which we work are thriving.FuelCell Energy has consistently worked with a wide variety of stakeholders to tailor our installations to the needs of the local community,including working directly with municipalities and/or no

332、nprofits to address specific concerns,such as improving air quality or promoting more general needs,like raising awareness regarding the many sources of clean energy.Talent life cycle development At FuelCell Energy,we prioritize equitable hiring practices by ensuring a diverse slate of candidates fo

333、r every role to be filled and cast a wide net to recruit the most capable talent.We periodically review promotions and the progression of current roles to ensure fairness and equity,and track the representation of groups along the lines of gender,age,disability status and race/ethnicity at all levels of the organization.We regularly examine turnover and areas with low engagement scores to see wher