1、2024 Corporate and Environmental Responsibility ReportTable of Contents22024 CER REPORTTable of Contents 2Frequently Used Terms 3A Message from Our Chairman and CEO 5Company Overview 62024 Corporate&Environmental Responsibility Report Highlights 7Core Values and CER Principles 8How We Think About Ma
2、teriality for CER Reporting Purposes 9CER Program 10Environmental Philosophy 16Environmental Policy 16Environmental Management System 16Environmental Compliance and Excellence 16The Four Key Pillars 172024 Environmental Performance 18Identifying and Mitigating Climate-Related Risks 18Greenhouse Gas
3、Emissions 19Footprint Consolidation for Greater Efficiency and Sustainability 20Climate and Energy 23Reducing Scopes 1 and 2 GHG Emissions:De-carbonizing Our Operations 23Discontinuing HAPs and Reducing VOCs in Our Operations 24Energy Management 25Renewable Energy 25Hazardous and Non-Hazardous Waste
4、 Reduction 26Reducing Hazardous and Non-Hazardous Waste via the Circular Economy Concept Aims to Reduce Scope 3 GHG Emissions and Improve Operational Efficiencies 28Waste Diversion 29Reducing Landfill Waste via Recycling and Reducing Scope 3 GHG Emissions 29Recycling of Chemicals 30Reportable Spills
5、 30Water and Effluents 31Water Conservation Systems 31Wastewater Discharge 33Empowering Our Partners in their Decarbonization Journey 34Appleton Performance Center Recycles Plastic into Sustainable Fuel 34Investment in Low Carbon and Sustainable Opportunities 34Supporting Key Customers in Fuel Effic
6、iency Improvements 352024 Social Performance 36Human Capital Management 36Equal Employment Opportunity(EEO)36Tenure in Company Leadership 36Investing in our Employees 37Employee Health and Wellness 37Operational Health and Safety 37Employee Engagement 39Employee Stock Ownership Program and Retiremen
7、t Benefits 40Employee Tuition Assistance Program 40Workforce Data 41Ducommun Scholarship Program 41Organizational Development:Building Talent and Opportunity 42Recruitment and Onboarding 42Talent Development 43Performance Management 43Investing in our Communities 43The Ducommun Foundation 43Ducommun
8、 Philanthropy Initiatives 44Local and National Community Involvement 44Newsweeks Most Responsible Companies for 2024 and 2025 45STEM on the Sidelines Program 46Corporate Governance Programs 47IT and Cybersecurity 47Protecting Digital Assets 47Cybersecurity Maturity Model Certification(CMMC)47Board a
9、nd Committee Structure 48Supply Chain 48Conflict Minerals 49Ethics and Protection of Human Rights 49Board Composition 50CER Governance 50Reporting Systems 52Framework and Standards 52About This Report 53Forward Looking Statements and Related Cautionary Notes 53Appendices 55Appendix 1 55Appendix 2 57
10、Appendix 3 59Appendix 4 60Appendix 5 66Appendix 6 68Appendix 7 73Appendix 8 74Appendix 9 78Frequently Used Terms(the)BoardThe Board of Directors of Ducommun IncorporatedASTAbove-ground Storage Tanks BCPBusiness Continuity PlansBLRBLR Aerospace,LLCCDPCarbon Disclosure ProjectCERCLAU.S.Comprehensive E
11、nvironmental Response Compensation,and Liability ActCERCorporate&Environmental ResponsibilityCEUContinuing EducationCFRCode of Federal RegulationsCSRDCorporate Sustainability Reporting DirectiveCTPCertified Thermoplastics Co.,LLCDMADouble Materiality AssessmentDucommun,the Company,we,our,usDucommun
12、Incorporated(NYSE:DCO)and its wholly-owned subsidiariesEHSEnvironmental,Health and SafetyEMSEnvironmental Management SystemEPAEnvironmental Protection AgencyERMEnterprise Risk ManagementESPPEmployee Stock Purchase Plan FMAFabricators and Manufacturers AssociationFYFiscal YearGHGGreenhouse GasGJGigaj
13、oulesGWPGlobal Warming Potential Governance CommitteeCorporate Governance and Nominating Committee of the Board of Directors of Ducommun IncorporatedGRIGlobal Reporting InitiativeHAPHazardous Air PollutantHVACHeating,Ventilation and Air ConditioningIFRSInternational Financial Reporting StandardIPCCI
14、ntergovernmental Panel on Climate ChangeISOInternational Organization for StandardizationIWDIndividuals with DisabilitieskgKilogramsKPIKey Performance Indicator kWhKilowatt per hourLDSLightning Diversion Systems,LLCLEDLight-emitting diodeLMSLearning Management SystemMagSealMagnetic Seal,LLCMBDModel
15、Based DefinitionMFGDayManufacturing DayMTMetric TonsNDEAMNational Disability Employment Awareness Month32024 CER REPORTNoblesNobles Worldwide,Inc.NOVNotice of ViolationNOxNitrogen OxidesNYPANew York Power AuthorityNYSENew York Stock ExchangeOC United WayOrange County United WayOSHAU.S.Occupational H
16、ealth and Safety AdministrationODSOzone Depleting SubstancesPERCPerchloroethylenePOTWPublicly Owned Treatment Works this ReportThis 2024 CER ReportSASBSASB Standards,now overseen by the International Sustainability Standards Board(ISSB)of the International Financial Reporting Standards Foundation.SE
17、CSecurities and Exchange CommissionSOxSulfur OxidesSTEMScience,Technology,Engineering and MathTCFDTask Force on Climate-Relate Financial DisclosureTSDFTreatment,Storage,and Disposal Facilities USTUnderground Storage TanksVOCVolatile Organic CompoundsWSUWichita State UniversityYoYYear-over-Year42024
18、CER REPORTFrequently Used TermsA Message from Our Chairman and CEOEntering into our 176th year in business,I am proud to present our fifth annual Corporate and Environmental Responsibility Report to our stakeholders,a strong testament to our continuing effort to make a positive impact in the communi
19、ties in which we operate through responsible and sustainable business practices.As always,safety lies at the heart of our results-driven culture and we made significant progress in this area with continued improvements along key metrics,including decreasing our total recordable incident rate(TRIR)by
20、 54%over the last four years and incurring only three lost time incidents since 2022.We are also very mindful of our environmental footprint and implemented several initiatives that helped to continue reducing our combined Scope 1 and 2 GHG emissions by 50%in 2024 compared to 2019 levels,increasing
21、our reliance on renewable energy sources and implementing recycling efforts across Ducommun to minimize waste sent to landfills.In addition to reducing our environmental footprint,we continued to actively support local,regional,and national non-profit and charitable organizations that make a differe
22、nce in the communities in which we operate.The Ducommun Foundation,a Section 501(c)(3)organization that serves as Ducommuns philanthropic arm,has donated approximately$1.8 million since its inception in 2019 to assist organizations that support our veterans,active service members and military famili
23、es,aid in natural disaster recovery and efforts to end homelessness.This past November,my wife Regina and I were also proud to serve as Gala Chairs and Centennial Sponsors of the Orange County United Ways Centennial Gala commemorating its 100th anniversary and honoring the visionaries and game-chang
24、ers who help improve lives in Orange County.The event raised over$850,000 to help local students receive the support they need to thrive academically,families gain financial stability,our neighbors experiencing homelessness find a safe and secure place to call home and providing vital resources to t
25、hose in need.Additionally,we again sponsored the STEM on the Sidelines initiative,now in its seventh year,which is an annual regional competition promoting STEM education in L.A.and Orange County high schools,with over 850 students from 119 high schools having benefited from their involvement in the
26、 program since its inception in 2018.As a result of these efforts,we were thrilled to be named to Newsweek magazines list of most responsible companies for the second consecutive year in recognition of our commitment to corporate social responsibility and long-term sustainability.Thank you for your
27、continued trust in Ducommun.We are very proud of our accomplishments and look forward to sharing our future progress on the focus areas identified in this report.Stephen G.Oswald Chairman,President and Chief Executive Officer52024 CER REPORTCompany Overview Ducommun delivers value-added innovative m
28、anufacturing solutions to customers in the aerospace,defense and industrial markets.Founded in 1849,the Company specializes in two core areas-Electronic Systems and Structural Systems-to produce complex products and components for commercial aircraft platforms,mission-critical military and space pro
29、grams and sophisticated industrial applications.Ducommun is committed to respecting,fostering,and advancing the interests of its stakeholders,including customers,suppliers,shareholders and the communities where we operate.Below is a summary of Ducommuns operations between 2019 and 2024:Revenue per E
30、mployee201920212020202420232022Employee CountRevenue per Employee05001,0003,5003,0001,5002,0002,500$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000Number of EmployeesRevenue per EmployeeRevenue(in$millions)201920212020202420232022$721$645$629$786.55$757.30$71320192020202320242022202
31、1Total Greenhouse Gas Emissions 2019-2024Scope 1:Direct Emissions from Natural Gas,Propane,&FuelScope 2:Indirect Emissions from Electricity(Market-based)29,00923,07319,1986,9966,92818,3137,35719,5607,3969,0486,06113,135201920202023202420222021Total Energy Usage 2019-2024396,096335,093320,353341,0803
32、32,183316,37962024 CER REPORT2024 Corporate&Environmental Responsibility Report HighlightsDucommun is proud to present this report to communicate to our stakeholders the key initiatives and continued development of our CER program since the publication of Ducommuns first report for the 2020 FY.Below
33、 is a summary of our CER highlights from 2024.Key Topic2024 TotalsHighlightsGHG Emissions6,061 MT Scope 11 emissions33%reduction in Scope 1 GHG emissions over 2019 baseline,on an absolute basis313,135 MT Scope 22 emissions55%reduction in Scope 2 GHG emissions over 2019 baseline,on an absolute basisE
34、nergy316,379 GJ of Total Energy Use20%reduction over 2019 baseline,on an absolute basis45%energy derived from renewable sources4Over 100%increase since 2019Water55.1M gallons total water withdrawn from utilities and groundwater16.4M gallons total returned to source or recycled13M gallons of total wa
35、stewater discharge1.6M gallons in total wastewater reductionWaste3.9K MT of hazardous waste generated68%of hazardous waste volume reclaimed and recycled1.1 MT of non-hazardous waste generated38%of non-hazardous waste volume recycledOperational Safety0.34 Total Recordable Incident Rate586%reduction i
36、n the Total Recordable Incident Rate since 2019.0.04 Total Lost Time Incident Rate689%reduction in the Total Lost Time Incident Rate since 2019.Scholarships$258,500 of scholarships awarded79%increase over 202392 scholarships awarded11%increase over 2023IT&Cybersecurity73M nefarious firewall connecti
37、on attempts deniedOver 300%increase over 20234M emails inspected for malicious content every monthOver 500%increase over 20231,460 hours of cybersecurity training delivered to all members of management and employees with assigned email boxes.Awards&RecognitionFour awards and recognitions received in
38、 2024 related to our CER programNewsweeks Most Responsible Companies,2025 and 2024Appleton Performance Center:Gold-level Employee Friendly Workplace by the Fox Cities Chamber of CommerceAppleton Performance Center:Exemplary Employer Award by the Wisconsin Department of Workforce Developments Divisio
39、n of Vocational RehabilitationAppleton Performance Center:Plastics recycling award from the Wisconsin Department of Environmental Protection1 Scope 1 GHG emissions are calculated by multiplying the amount of natural gas and propane consumed by the respective emission factors.Refrigerant emissions ar
40、e determined based on the quantity of refrigerant used,adjusted for its GWP as outlined in the GHG Protocol.2 Scope 2 emissions are calculated using both location-based and market-based methods,in line with the GHG Protocol.The location-based method reflects the average emission intensity of the ele
41、ctricity grid,while the market-based method takes into account the emissions associated with purchased electricity,including renewable energy purchases and contractual agreements.Ducommun does not use carbon credits or renewable energy credits to offset its Scope 2 emissions.3 Absolute basis refers
42、to a value or number change by comparing results on a year over year basis or to a set of baseline data.4 Please see pages 25-26 for additional information regarding Ducommuns renewable energy usage.5 The Total Recordable Incident Rate(TRIR),as defined by OSHA,measures the frequency of workplace inj
43、uries and illnesses.It is calculated as the number of recordable incidents per 100 full time workers over a year.To calculate TRIR,divide the number of recordable incidents by the total hours worked by all employees then multiply the results by 200,000 to standardize it to 100 full-time workers.6 Th
44、e Lost Time Incident Rate(LTIR),as defined by OSHA,is a metric used to track the frequency of work-related injuries and illness that result in lost workdays.It is calculated by dividing the number of incidents that caused employees to miss work by the total hours worked by all employees,then multipl
45、ying the results by 200,000.7 Please see pages 41-42 for additional information about the Ducommun Scholars Program.72024 CER REPORTCore Values and CER PrinciplesOur CER principles,guided by the core values of honesty,professionalism,respect,trust and teamwork,focus on environmental stewardship,huma
46、n capital developments,community support and governance,shaping our actions and decisions across all aspects of our business.Figure 1 below depicts our core values:Figure 1Figure 2 below illustrates our CER principles:Figure 2We will focus on setting andachieving key goals in EHSexcellence,continuou
47、slyimprove our EMS,prioritizeemployee awareness andperformance and ensurecompliance with all relevantenvironmental laws andregulationsWe will continue tomaintain human capitalprograms that providefor equal employmentopportunity in our workforce in accordancewith applicable lawsEnvironmentalHuman Cap
48、italGovernanceWe foster a culture of complianceand transparency through ourgovernance framework,ensuring fulladherence to all applicable laws ineverything that we do.This is guidedby our core values,which serveas the foundation for ourcommitment to ethicalpractices and accountabilityin all aspects o
49、f ourbusiness82024 CER REPORTHow We Think About Materiality for CER Reporting PurposesIn 2024,we restructured our materiality assessment to align with the CSRDs double materiality requirements,which includes both traditional notions of financial materiality(i.e.,the potential risks and opportunities
50、 our CER initiatives may have on our financial performance as well as external impacts of environmental or social matters on our business)and impact materiality(i.e.,the effect our operations and value chain may have on people or the environment).We designed a comprehensive DMA that not only confirm
51、s our existing prioritization of the CER initiatives below,but also provides a thorough analysis of critical enablers and emerging issues important to our wide range of stakeholders amid an evolving regulatory landscape.We distributed the DMA survey to over 160 key stakeholders,both internal and ext
52、ernal,including customers,vendors,regulatory agencies,community members,our performance center leadership,HR business partners and employees to identify impacts,risks and opportunities across our manufacturing operations.This process helped frame our sustainability ambitions and clarified the steps
53、needed to achieve meaningful impact in the areas that matter most to our stakeholders.With each assessment,we gain deeper insights into our audience,focusing where our business can truly make a difference.Regular updates to our materiality assessment are beneficial for fostering collaboration among
54、employees at all levels and across all departments,and enhancing our sustainability performance and progress.As a result of this effort,we have identified the following CER initiatives as critical to Ducommuns long-term sustainability,as depicted in order of importance based on survey responses.The
55、following table represents the results of our DMA.The topics listed were ranked based on their significance to both our organizational success and their impact on our external stakeholders.Topics within each section are listed from most to least significant,reflecting the priorities that matter most
56、 to both our Company and our stakeholders.Environmental Waste Reduction Accurate and Auditable ESG Reporting/Disclosures Energy Efficiency Wastewater Efficiency Water Usage Carbon EmissionsHuman Capital Employee Health,Safety and Wellness Employee Training and Development Talent Acquisition Equal Em
57、ployment Opportunity Employee Engagement Community EngagementGovernance Ethics and Compliance Financial Performance and Profitable Growth IT and Cybersecurity Supply Chain Sustainability Corporate Governance92024 CER REPORTCore Values and CER PrinciplesCER ProgramOur CER program integrates sustainab
58、ility across four main environmental pillars:energy efficiency,waste reduction,wastewater efficiency and accurate,verifiable and auditable CER data.Our human capital initiatives prioritize equal opportunity and workforce development,ensuring that all employees contribute to and benefit from our succ
59、ess.Additionally,our strong community support program actively supports nonprofit and charitable organizations that make significant impact in the communities in which we operate.Ducommun has a strong governance framework,covering CER governance,IT and cybersecurity,supply chain management and ethic
60、s and the protection of human rights.Our governance framework aids in the oversight of these critical areas,facilitating our ability to provide long-term value to our shareholders while contributing positively to the environment.Ducommuns comprehensive CER program can be most easily conceptualized i
61、n Figure 3 below:Figure 3CERProgramCorporateGovernanceIT&CybersecuritySupply ChainSustainability and ConflictMineralsEthics and Protection ofHuman RightsCER GovernanceHuman Capital:EqualEmploymentOpportunityEquitable Hiring andEmploymentEqual OpportunityLeadershipHealth and SafetyResourceConservatio
62、n inProductionFour Key Pillars:Energy EfficiencyWaste ReductionWastewater EfficiencyAccurate,Verifiable andAuditable CER DataCommunity SupportCompany DonationsCommunity InvestmentScholarshipsAwards&Recognition102024 CER REPORTA high-level summary of the CER program over the 2024 FY reporting period
63、can be found in Figure 4 below:Figure 4 GHG Emissions Reductions(2019 Baseline vs 2024)Ducommun reduced its combined Scope 1 and 2 GHG emissions by approximately 54%and 34%,normalized to revenue8 and employee count9,respectively,compared to 2019 baseline levels.Ducommun reduced its Scope 3 GHG emiss
64、ions by approximately 21%and 14%,normalized to revenue and employee count,respectively,compared to 2023 levels.All performance centers have fixed natural gas leakages,contributing to a reduction in 28,800 therms of natural gas usage.Total Energy Use Reductions(2019 Baseline vs 2024)We reduced our to
65、tal energy usage by approximately 20%on an absolute basis,compared to 2019 baseline levels.Our use of renewable energy has increased to approximately 89,837 GJ(25.0M kWh)through partnerships with local utility providers and the use of rooftop solar panels,compared to 2019.In 2019,Ducommun utilized o
66、nly 122 GJ of renewable energy.Energy Efficiency Projects Many of our performance centers installed automatic light switches,which reduced our energy consumption by 49K kWh.All of Ducommuns performance centers are either in the process of,or have fully completed,installing LED lighting.Fourteen perf
67、ormance centers have completed the transition and the remaining four are expected to complete the process by 2026.Resource Conservation in Production:Energy EfficiencyScope 1DIRECT Emissions from Sources(On Site)Scope 2INDIRECT Emissions from Energy/UtilitiesScope 3INDIRECT Emissions from Value Chai
68、n/Service8 The reduction in 2024 combined Scope 1 and 2 GHG emissions,normalized to revenue,is calculated by subtracting the 2019 emissions-to-revenue ratio from the 2024 emissions-to-revenue ratio,and then dividing by the 2019 emissions-to-revenue ratio.Calculation is based on MSCI Research LLC.Met
69、hodology,a leading ESG firm.9 The reduction in 2024 combined Scope 1 and 2 GHG emissions,by employee count,is calculated by subtracting the 2019 emissions-to-employee count ratio from the 2024 emissions-to-employee count ratio and then dividing by the 2019 emissions-to-employee count ratio.Calculati
70、on is based on MSCI Research LLC.Methodology,a leading ESG firm.112024 CER REPORTCER ProgramHazardous Waste Generation and Reductions In 2024,Ducommun generated 8.8M lbs of hazardous waste,disposed of 2.8M lbs and recycled or reclaimed 6M lbs.Three performance centers have diverted their empty chemi
71、cal containers from hazardous waste landfills,reducing our volume of waste sent to hazardous waste landfills by 2 MT.Two performance centers utilize onsite evaporators,reducing the volume of hazardous waste shipped by 590 MT.Non-Hazardous Waste Generation and Reductions In 2024,Ducommun generated 2.
72、4M lbs of non-hazardous waste,approximately 13K lbs of electronic waste and 3.2K lbs of universal waste.All of Ducommuns performance centers recycle cardboard,scrap metal and toner,reducing our non-hazardous waste disposed by approximately 926K lbs.Waste Recycling and Reclamation Efforts Reclaiming
73、and reusing PERC solvent has led to the recycling of 85 MT of hazardous waste.Onsite regeneration of spent etchant has resulted in the recycling of 1,937 MT of hazardous waste.Recycling excess plastics and packaging has helped divert 25.8K lbs of non-hazardous waste away from landfills.Two performan
74、ce centers have converted plastic waste into fuel pellets,recycling 24 MT of plastic and diverting it away from landfills.Resource Conservation in Production:Waste ReductionWater Demand In 2024,Ducommun withdrew 55M gals of water from utilities and groundwater and returned 13.5M gallons back to its
75、source.Ducommuns total water demand for 2024 was 41.2M gallons.Closed loop water recycling systems have reduced our water demand by 3.7M gallons annually.Water Recycling Efforts The Santa Clarita,CA performance center has recycled over 200,000 gallons of freshwater in 2024 through their burnt-off ov
76、en water recycling system.The rinse water recycling systems at two performance centers has recycled 167,800 gallons of water annually.The water recycling program at the Tulsa,OK performance center has reduced overall freshwater demand by 226,000 gallons annually.Wastewater Discharge In 2024,Ducommun
77、 discharged approximately 13M gallons of wastewater.Wastewater reductions totalled 1.6M gallons in 2024.All performance centers comply with the local,state and federal regulatory standards when treating and discharging wastewater.Resource Conservation in Production:Wastewater Efficiency122024 CER RE
78、PORTCER ProgramData Management Standards Data is crucial for ensuring transparency,accountability and compliance.Our data management incorporates rigorous verification procedures to ensure the accuracy of our CER environmental metrics through automated data validation,periodic reviews and third-part
79、y limited assurance.Data Management Software Novisto and Green Project are the data management software solutions used to manage our sustainability goals and metrics.Novisto is a sustainability management software used to collect,manage and report data.Green Project10 is a carbon accounting software
80、 that automates the collection and reporting of greenhouse gas emissions.Third-Party Limited Verification In 2024,Ducommun engaged Yorke Engineering to complete a third-party limited assurance of our Scope 1,2 and 3 GHG emissions.The limited assurance verification activities found no inconsistencies
81、 in reporting nor any material misstatements.They also found no deviations from the GHG protocol methodology.Resource Conservation in Production:Accurate,Verifiable and Auditable CER DataHealth and Safety We remain committed to prioritizing employee health,safety and wellness.Between January 1,2021
82、and December 31,2024,Ducommuns lost time incident rate dropped by 87%to 0.04,which was a remarkable achievement,and our total recordable incident rate decreased by approximately 54%during that same period.Equal Opportunity Leadership In compliance with applicable law and in futherance of its core va
83、lues of integrity,respect and excellence,Ducommun is committed to being an equal opportunity employer.Ducommun makes all employment decisions based on individual merit and prohibits all forms of unlawful discrimination.Workplace Culture Ducommun strives to create a collaborative culture at every per
84、formance center,including by promoting and instilling values of fairness and equity at all times during the employment relationship.Human Capital and Equal Employment Opportunity10 Green Project software is used for all of Ducommuns GHG emissions calculations,including Scope 1,2,and 3 GHG emissions
85、calculations.The platform was designed in full compliance with,and per the technical requirements of,the GHG Protocol Corporate Accounting and Reporting Standard,undergoing an annual audit by industry leading third-party GHG accreditation service providers to ensure the methodology remains up-to-dat
86、e.132024 CER REPORTCER ProgramCompany Donations The Ducommun Foundation supports charitable organizations in the communities in which we operate and has donated$1.8 million to support social justice causes and underrepresented communities since 2019.The Ducommun Cares ePledge Campaign,in partnership
87、 with the OC United Way,raised over$65K from our corporate employees and Company matching donations in 2024.Awards and Recognition Ducommun is honored to be included on Newsweek magazine and Statista Americas Most Responsible Companies Award List for the second consecutive year in 2025.Ducommuns App
88、leton performance center received an award from the Wisconsin Department of Environmental Protection for its plastics recycling initiatives,was certified as a gold-level Employee Friendly Workplace by the Fox Cities Chamber of Commerce and was awarded the Exemplary Employer Award by the Wisconsin De
89、partment of Workforce Developments Division of Vocational Rehabilitation.Ducommun once again sponsored the Orange County United Ways Womens Philanthropy Fund and won the Corporate Climber Award at the Orange County United Ways 2024 Rally for Change event.The Company was also recognized by our Nation
90、s Veterans at the annual Patriot Awards Gala.Community Investment&Scholarships In conjunction with the Los Angeles Chargers and the University of California,Irvine,our STEM on the Sidelines initiative serves as a contest to promote STEM education in high schools in Los Angeles and Orange Counties,in
91、 which over 850 students from approximately 119 high schools have participated since the programs inception seven years ago.We awarded a record 92 merit-based scholarships in 2024 to children and grandchildren of employees,a total of over 340 scholarships awarded since 2019.The total value of schola
92、rships awarded in 2024 was approximately$259,000,an almost 9%increase in awards compared to 2023.Community SupportCore Values We continued to promote a culture of honesty,professionalism,respect,trust and teamwork through our Company Core Values and Code of Business Conduct,supported by our ethics h
93、otline,employee communications and training.Code of Conduct We aim to train all employees on ethical decision-making skills and the other values in Ducommuns Code of Conduct.Human Rights Our Prohibition Against Trafficking in Persons Policy and California Transparency in Supply Chains Act disclosure
94、 statement continued to promote responsible sourcing practices.Corporate Governance Programs:Ethics and the Protection of Human Rights142024 CER REPORTCER ProgramRisk Reduction We leverage established standard cybersecurity frameworks to help reduce the likelihood of catastrophic failures resulting
95、in significant loss of data or revenue.Securing the Enterprise We use a multi-layered IT infrastructure approach designed to identify,protect,detect,respond and recover from directed attacks from cybercriminals and adversarial nation-state actors.Security Controls&Privacy We install anti-malware sof
96、tware on computers and servers,and badge access controls to manufacturing sites to help secure our production environment.We strive to implement procedures to comply with all applicable privacy laws to secure personally identifiable information collected for business purposes.Corporate Governance Pr
97、ograms:IT&CybersecuritySupply Chain Sustainability In 2024,Ducommun sent a supply chain questionnaire to the top 50 suppliers at each performance center to assess their impact on environmental and social topics.200 suppliers responded,with 96 suppliers stating they have a CER program in place,40 sup
98、pliers tracking their GHG emissions,84 suppliers with energy reduction goals in place,94 with established waste and water recycling programs and 56 reporting on social metrics.CER Governance Our Board of Directors(the“Board”)oversees risk management,and reviews risks associated with our operations,l
99、iquidity,cybersecurity and the CER program.Ducommuns CER initiatives are overseen by the Governance Committee.Conflict Minerals Ducommun is committed to responsible sourcing of specific minerals and materials and avoiding any contribution to humans rights violations.Ducommun sources from suppliers w
100、ho share these values.Our conflict minerals report is submitted to the SEC annually and is made publicly available on our website.Corporate Governance Programs:CER Governance and Supply Chain152024 CER REPORTCER ProgramEnvironmental PhilosophyDucommun believes that operating sustainably and appropri
101、ately incorporating climate change factors into decision-making helps to strengthen our organization over the long term and makes good business sense.We believe this approach not only enhances the resilience of our organization but also aligns with sound business practices.By fostering collaboration
102、 with our customers,supply chain partners and employees,we strive to continuously improve our environmental performance across our entire enterprise.This collaboration helps us to create shared values,reduce our environmental impact and contribute positively to the communities we serve.Environmental
103、 PolicyOur environmental policy goals are driven by our belief that environmental protection is important to consider when setting business practices and reducing operational risks for the long-term sustainability of our business.Accordingly,management is committed to environmental protection throug
104、h leadership,investment and engagement.As such,we strive to:1.Eliminate spills,releases or other environmental incidents by implementing effective administrative and engineering controls,training our employees on proper material handling practices and promptly investigating and correcting non-confor
105、mances.2.Partner with suppliers who share Ducommuns commitment to the environment and the prudent and safe use of natural resources.3.Work collaboratively with state,local and federal environmental agencies to seek ways to reduce our environmental footprint and improve the sustainability of our oper
106、ations.Environmental Management SystemAt Ducommun,our commitment to environmental stewardship is a cornerstone of our operations.In 2023,we achieved ISO 14001 certification for our New York performance center,and in 2024,we successfully certified four additional performance centers:Parsons,KS and Or
107、ange,El Mirage and Carson,CA.Currently,five out of eighteen,or 28%of the performance centers,are ISO 14001 certified.Our goal is to have all performance centers certified by 2026.ISO 14001 certification is awarded to organizations that demonstrate the successful implementation of an EMS in complianc
108、e with the standards requirements.This involves integrating rigorous environmental practices and undergoing an independent audit by a certifying body.Over time,we hope that implementing this standardized management system will facilitate data-driven decision making,promote the efficient use of resou
109、rces through a risk-based approach,and consequently enhance both environmental performance and operational efficiencies.Additionally,we hope that earning ISO 14001 certification will aid in increasing the transparency and visibility of our environmental program,and build trust with all stakeholders.
110、We are also committed to sharing insights and lessons learned from the certification processes with our other performance centers,which will support our broader goal of achieving comprehensive environmental excellence across our organization.Environmental Compliance and ExcellenceAs manufacturing fa
111、cilities operating in a highly regulated environment,Ducommuns performance centers underwent several routine environmental regulatory inspections in 2024.We are proud to report that there were no environmental regulatory NOVs identified during these inspections.Through the use of EHS and GHG emissio
112、n software,were modernizing our processes.These solutions automate tracking of key metrics like injuries,near misses,first aid,GHG emissions and energy usage,reducing manual data entry and improving overall efficiency and accuracy.162024 CER REPORTCER ProgramThe Four Key PillarsThe approach to the e
113、nvironmental portion of our CER program is built on four key pillars:energy efficiency,waste reduction,wastewater efficiency,and the importance of accurate,verifiable,and auditable data.These pillars are linked to resource conservation in production,driving reductions in GHG emissions,uncovering cos
114、t-savings opportunities,and ensuring sustainable long-term value for our stakeholders.Figure 5Key Pillar No.1 Energy Efficiency:Our commitment to reducing GHG emissions starts with a focus on lowering energy consumption.We pursue this goal through various initiatives,including the implementation of
115、LED lighting and motor and compressor conversion projects.Additionally,we collaborate with our utility providers to secure renewable energy sources for our operations and invest in equipment upgrades.These efforts are aimed at the reduction of Scope 1 and 2 GHG emissions.Key Pillar No.2Waste Reducti
116、on:Building on our past successes,we continue to make progress in reducing both hazardous and non-hazardous waste generation,including reducing our landfill waste generation.Central to this endeavor is our application of the circular economy concept11 which involves recapturing and reusing certain m
117、aterials to minimize waste generated in our manufacturing operations.Additionally,this approach can contribute to a reduction in Scope 3 GHG emissions12,by curbing the miles traveled and fuel consumption of our third-party waste haulers.Key Pillar No.3Wastewater Efficiency:We are committed to explor
118、ing opportunities for reducing water consumption.Furthermore,we strive to emphasize the importance of operating wastewater systems at our facilities to meet applicable wastewater discharge limits and identify ways to reuse treated water in our operations.This not only promotes compliance,but also en
119、ables POTWs to repurpose wastewater for non-potable uses such as irrigation and cleaning,thereby helping to support sustainability and resource conservation in our communities.Key Pillar No.4Accurate,Verifiable and Auditable CER Data:A fundamental pillar of our program is the robust collection,verif
120、ication and auditability of CER data.This data forms the basis of our sustainability efforts and helps to provide transparency and accountability in our reporting.By maintaining rigorous data management standards,we aim to enhance our ability to assess and communicate our environmental impact accura
121、tely and effectively.In 2024,we began limited assurance verification of our Scope 1,2 and 3 GHG emissions data completed by an independent third party to provide key stakeholders with data-driven evidence that our GHG emissions reporting is accurate and auditable.11 A circular economy entails keepin
122、g materials,products,and services in circulation for as long as possible.A circular economy reduces material usage,results in materials,products,and services being less resource-intensive,and recaptures“waste”as a resource to manufacture new materials and products.Source:https:/www.epa.gov/recycling
123、strategy/what-circular-economy.12 Scope 3 GHG emissions are the result of activities from assets not owned or controlled by the reporting organization,but that the organization indirectly affects in its value chain.For this Report,Scope 3 GHG emissions are calculated using current EPA guidelines and
124、 emission factors on third party transportation waste haulers.Current EPA Scope 3 Inventory Guidance can be found at:https:/www.epa.gov/climateleadership/scope-3-inventory-guidance.All values are estimated based on current third-party haulers miles driven.172024 CER REPORTCER Program2024 Environment
125、al Performance Identifying and Mitigating Climate-Related RisksDucommun understands that global warming and climate change may pose an increased risk to,and have the potential to impact,its business and operations.The Corporate Governance and Nominating Committee of our Board of Directors oversees o
126、ur CER program,including the mitigation of climate-related risks to the business and strategies for decreasing GHG emissions and incorporating such measures into the Companys overall strategy.We believe the first step in reducing the severity of such risks is by identifying them before they material
127、ize,and therefore,we implemented a process to evaluate,identify and mitigate climate-related risks and opportunities through the creation and implementation of business continuity plans(“BCPs”).The BCPs developed for each of our performance centers provide a process for identifying and managing both
128、 short-term(by 2030)climate change-related risks,such as tornados and floods,as well as long-term(by 2050)risks like extreme drought,sea level rise and shifts in weather patterns.Moreover,during the past year,we also partnered with our third-party property insurer to assess both the short-and long-t
129、erm impacts of climate change on our operations and the resulting findings included an analysis of our acute and chronic risks for each performance center,categorized by peril and evaluated under various climate scenarios,again,over both short-and long-term horizons.Each BCP contains processes and m
130、ethodologies to help us prepare for,respond to and recover from natural disasters caused by climate change and the steps implemented in developing and updating our BCPs include:1.Climate Change Impact Report:The findings from a report prepared by our property insurer combined engineering and site vi
131、sit data from performance center visits with the latest insights on climate change,utilizing the IPCC Representative Concentration Pathways(RCPs)of 2.6(low),4.5(intermediate)and 8.5(high).It included a breakdown of property values,business interruption risks and the outlook for climate change impact
132、s in both the short-and long-term.2.Risk Assessment&Business Impact Analysis(“BIA”):Each performance center conducts a risk assessment to identify potential natural disasters unique to its location that could compromise the entire facility,building or its operations.The potential impacts from,and ap
133、propriate mitigation measures in response to,each type of natural disaster are identified to help preserve the continuity of operations,and cover various functional areas such as procurement,engineering,maintenance,operations and EHS.These risk assessments and BIAs are reviewed annually by teams at
134、each of our performance centers.3.Crisis Response Plan:Each BCP includes communication and notification protocols for each performance center and their respective leadership teams in the event of a climate-related crisis.4.Business Continuity and Response Plan:Each of our performance centers regular
135、ly updates their respective BCPs to better plan for and mitigate climate-related risks.In addition,they conduct annual tabletop exercises and drills,simulating real-life scenarios to test the effectiveness of their plans.These exercises help identify potential gaps,refine response strategies and ens
136、ure that all key personnel are familiar with their roles during an emergency,ultimately enhancing a performance centers overall resilience and ability to maintain operations during unforeseen events.For climate risk assessment and business impact analysis,refer to Figure 6.5.Annual Training and Exer
137、cise:All employees at each of our performance centers are required to undergo mandatory annual training on BCP processes.In addition,tabletop exercises and drills are scheduled annually to assess the effectiveness of our BCPs.182024 CER REPORTOur BCPs identified the following risks that could potent
138、ially adversely impact our business along with concomitant mitigation measures,which are summarized in Figure 6 below:Figure 6CategoryGeneral DescriptionBusiness ImpactMitigationPhysical RisksRisks associated with natural disasters such as tornadoes,earthquakes and floods.Business interruption,suppl
139、y chain and operations impacts,and employee disruptions.Each BCP defines relevant threats,identifies response measures and requires training on remedial actions.Regulatory RisksRisks associated with new climate-related regulatory requirements that could impact energy pricing,emission restrictions an
140、d compliance costs.Increased compliance and operational costs.Continued implementation of energy efficiency projects to reduce our GHG emissions.Market RisksRisks associated with customers expectations relating to value chain emissions reduction efforts and competitive risks associated with third pa
141、rties who come to market with products enabling our customers to reduce their carbon footprints.Significant investment in technologies,new emerging renewable energy sources and energy storage capabilities.Long-term strategic planning and roadmap development.Greenhouse Gas EmissionsSince publishing o
142、ur first CER report for FY 2020,we have worked diligently to enhance the transparency of our corporate responsibility program and related disclosures.For instance,we made significant improvements to our GHG calculation methodologies to align more closely with GHG protocol recommendations,which inclu
143、des the critical practice of reviewing our GHG baseline when appropriate.In 2024,we contracted with a third-party vendor to conduct a limited assurance review of our Scope 1,2 and 3 GHG emissions.We believe this limited assurance13 will help to ensure our GHG reporting is robust and credible.Through
144、 these efforts,we aim to provide stakeholders with clear and reliable information regarding our environmental impact.In this Report,we first present comprehensive data on our Scope 1 and Scope 2 GHG emissions.Scope 1 GHG emissions include our onsite natural gas consumption,refrigerant use and gasoli
145、ne and propane usage in both on-and off-road vehicles.Scope 2 GHG emissions encompass the indirect emissions associated with sourcing energy from local utilities for our operations.Both Scope 1 and Scope 2 GHG emissions were thoroughly audited and compared against the following baseline:1.2019 Basel
146、ine:We chose 2019 as a baseline year since it reflects our operations prior to the COVID-19 pandemic.By reviewing our 2024 GHG emission levels against those of 2019,we are better able to evaluate the effectiveness of our CER initiatives exclusive of any significant impact from pandemic-related disru
147、ptions.Our emissions data,depicted in Table 1 of Appendix 1 and Figure 7 below,illustrates a 50%decrease in our combined Scope 1 and Scope 2 GHG emissions in 2024 compared to 2019 baseline levels,on an absolute basis.Specifically,we observed a 33%decrease in Scope 1 GHG emissions and a 55%reduction
148、in Scope 2 levels in 2024,compared to those of 2019.13 A limited assurance confirmation letter and processes for our Scope 1,2 and 3 GHG emissions limited assurance calculations can be found in Appendix 8 of this Report.192024 CER REPORT2024 Environmental PerformanceIn 2023,we initiated the reportin
149、g of certain categories of our Scope 3 GHG emissions.We identified six material subcategories within our Scope 3 GHG emissions,reflecting their relevance to our business and potential impact on environmental performance.These subcategories encompass various aspects of our value chain,such as raw mat
150、erial suppliers,transportation and product use14.The six material subcategories are purchased goods and services15,capital expenditure16,business travel17,employee travel18 and waste and transportation(upstream and downstream)19.In 2024,we are continuing to include these disclosures to help enhance
151、our understanding of our carbon footprint,covering selected upstream and downstream activities within our value chain.Our Scope 3 GHG emissions data is depicted in Figure 8 below.We observed an 18%reduction in Scope 3 GHG emissions in 2024 compared to 2023 on an absolute basis as shown in Figure 9.A
152、 summary of our Scope 1,2 and 3 GHG emissions for 2024 is shown in Figure 10.Footprint Consolidation for Greater Efficiency and Sustainability As part of our footprint consolidation efforts,our Monrovia,California and Berryville,Arkansas performance centers ceased operations in late 2024,with produc
153、tion moving to our Coxsackie,New York and Guaymas,Mexico performance centers.We expect this consolidation will positively impact our sustainability and operational goals by removing redundant operations and reducing our overall energy consumption,GHG emissions,waste and water consumption.We also hop
154、e that our footprint consolidation will lead to a decrease in our Scope 1,2 and 3 GHG emissions in 2025.Figure 7Scope 1 and 2 GHG Emissions 2019 BASELINE VS 2024Scope 1 and 2 GHG Emissions(metric tons of CO2e)201920202024202320222021Scope 1:Direct Emissions from Natural Gas,Propane,&FuelScope 2:Indi
155、rect Emissions from Electricity(Market-based)6,0619,0487,3966,9967,35713,13529,00923,07319,19819,56018,3136,928Ducommun achieved a 50%decrease in its combined Scope 1 and 2 GHG emissions in 2024 compared to 2019 baseline levels on an absolute basis.14 See Appendix 5 for the methodology and assumptio
156、ns related to our Scope 3 GHG emissions calculations.15 To provide the highest granularity for Ducommuns spend data,Green Project matched expense items to Supply Chain Emissions Factors at the“Sub-Comm Family”or“Class”level when the“Commodity Category”name likely spanned many product/industry emissi
157、ons factors(e.g.,“Indirect”or“Raw Material”).Within this approach,Green Project started with the 16 unique Commodity Categories in the“Spend Detail”workbook and indicated which matched cleanly to a single Supply Chain Emissions Factor(e.g.,“Connectors”),and which required consideration of their“Sub-
158、Comm Family”and“Class”to ascertain the relevant emissions factor.Green Project then mapped over 300 expense descriptions from Ducommun to relevant Supply Chain Emissions Factors from the USEPA Supply Chain Greenhouse Gas Emission Factors v1.2 by NAICS-6,April 2024,and had Ducommun review these mappi
159、ngs to ensure alignment with Ducommuns accounting controls and expense categorization.16 As any capital expenditures for 2024 were captured in the spend data with the Purchased Goods&Services,please see the methodology in category 3.1 above for more detail on how the spend data was assigned relevant
160、 emissions factors.17 As the data from Christopherson was already calculated in the CO2e for the various quarters,Green Project directly input the CO2e into the platform.For the spend data,Green Project used the US EIA Average Monthly Gas&Diesel prices to convert the spend data to approximate gallon
161、s of fuel used and assumed that gasoline was the fuel type used.18 Employee travel is calculated by first determining the daily miles commuted for each employee along with the number of days and weeks each employee drives to work,then using a CO2 emission factor to determine CO2 GHG emissions for Sc
162、ope 3 employee commute time.Green Project utilized the 2024 US EPA GHG Inventory for the emissions factors for the employee commute data.19 For hazardous and non-hazardous waste,Green Project utilized the 2024 US EPA GHG Inventory for the emissions factors for the employee commute data.For transport
163、ation,Green Project used the US EPAs emissions factor for“General Freight Trucking,Long-Distance,Truckload”from the US EPAs NAICS 2024 dataset.The spend data was then calculated per quarter and applied to this emission factor.202024 CER REPORT2024 Environmental PerformanceFigure 8Scope 3 GHG Emissio
164、nsScope 3 GHG Emissions Estimate(metric tons of CO2e)by CategoryPurchasedGoods andServicesCapitalExpenditureTransportation(upstream anddownstream)WasteEmployeeTravelBusinessTravel58,5263,4925,7774664,5804,656This Report includes estimates20 of our Scope 3 GHG emissions categorized into six areas tha
165、t we identified as the most material to our enterprise.Figure 9Scope 3 GHG Emissions 2023 VS 2024Scope 3 GHG Emissions Estimate(metric tons of CO2e)2023202494,15077,498Ducommun achieved an 18%reduction in Scope 3 GHG emissions in 2024 compared to 2023 on an absolute basis.20 See Appendix 5 for the m
166、ethodology and assumptions related to our Scope 3 GHG emissions calculations.212024 CER REPORT2024 Environmental PerformanceFigure 102024 Total GHG Emissions(metric tons)2177.5K MT80.3%Scope 1Scope 2Scope 36.1K MT6.3%Total GHGemissions:96.7K MT13.1K MT 13.5%In 2024,Ducommun emitted an estimated 6.1k
167、 metric tons of Scope 1 GHG emissions,or 6%of total reported emissions;13.1k metric tons of Scope 2 GHG emissions,or 14%of total reported emissions;and 77.5k metric tons of Scope 3 GHG emissions,or 80%of total reported emissions.21 1 metric ton equates to 1,000 kg,which is approximately 2,204.6 poun
168、ds.222024 CER REPORT2024 Environmental Performance Climate and EnergyReducing Scopes 1 and 2 GHG Emissions:De-carbonizing Our OperationsIn 2024,with the ongoing support of our CER champions,we continue to identify and implement additional energy-saving projects across all Ducommun performance center
169、s.Our CER champions are a multifaceted team of employees representing maintenance,engineering,EHS and operations.They drive initiatives that support our four key environmental pillars,forming the foundation of our CER program.These champions collaborate across departments and performance centers to
170、implement practical and measurable actions that help to improve our environmental performance.Additionally,monthly meetings are held for all CER champions,where current and future projects are discussed to foster collaboration and knowledge-sharing across teams.The following is a summary of projects
171、 implemented in 2024 across Ducommuns performance centers:Performance Center(s)Energy Efficiency Project(s)TypeScopeEstimated GHG Impact(Reduction)22Estimated Energy Impact23 All performance centers Fixing natural gas leakage Scope 1 6.3 metric tons of Scope 1 GHG emissions Reduced overall natural g
172、as usage by 28,800 therms24 Orange,CA Gas fired unit conversion to electric fired units Scope 1 5 metric tons of Scope 1 GHG emissions Reduced natural gas usage by 23k therms Appleton,WI Compressor heat recovery Scope 1 5 metric tons of Scope 1 GHG emissions Reduced natural gas usage by 30k therms C
173、oxsackie,NY Carson,CA St.Croix Falls,WI Warren,RI Tulsa,OK Appleton,WI Joplin,MO Huntington Beach,CA Guaymas,MX Everett,WA Berryville,AR Santa Clarita,CA Gardena,CA Monrovia,CA LED Lighting conversion completed Scope 2 1,226 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by
174、4.6M kWh El Mirage,CA Pneumatic pump conversion to electric Scope 2 29 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 98.5K kWh Gardena,CA Motor replacement and conversion projects Scope 2 29 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 127K
175、kWh Joplin,MO Tulsa,OK Gardena,CA Carson,CA Monrovia,CA Installation of automatic lights off switches Scope 2 24 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 49,000 kWh 22 Scope 2 GHG reductions in metric tons are calculated by multiplying the estimated energy usage red
176、uction by the appropriate emission factors,as outlined in the GHG protocol.23 Estimated energy impact reduction for our energy efficiency projects are calculated based on the projected savings from each initiative,using GHG protocol methodologies and assumptions.24 A therm is a unit of heat equivale
177、nt to 100,000 British thermal units or 1.055 x 10 joules.232024 CER REPORT2024 Environmental PerformancePerformance Center(s)Energy Efficiency Project(s)TypeScopeEstimated GHG Impact(Reduction)22Estimated Energy Impact23 St.Croix Falls,WI Huntington Beach,CA Gardena,CA Carson,CA Coxsackie,NY Parsons
178、,KS Monrovia,CA Increased use of renewable energy sources via utility providers partnerships Scope 2 4,660 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 6.6M kWh Santa Clarita,CA Onsite solar Scope 2 5 metric tons of Scope 2 GHG emissions Reduced overall energy consumpti
179、on by 21K kWh Carson,CA Coxsackie,NY Gardena,CA Huntington Beach,CA Replacement of HVAC units Scope 2 14 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 69K kWh Orange,CA Air compressor replacement/retrofit Scope 2 49 metric tons of Scope 2 GHG emissions Reduced overall en
180、ergy consumption by 560K kWh Carson,CA Equipment Consolidation Scope 2 16 metric tons of Scope 2 GHG emissions Reduced overall energy consumption by 68.5K kWhIn 2024,the amount of renewable electricity utilized increased by approximately 89,715 GJ,or 25.0M kwh compared to the amount of renewable ele
181、ctricity utilized in 2019.We intend to provide updates on our progress in these areas in future CER reports.Discontinuing HAPs and Reducing VOCs in Our OperationsIn 2024,we continued to build on our commitment to responsible operations by advancing efforts to eliminate harmful chemicals like n-propy
182、l bromide and perchloroethylene(PERC)from our processes.We also implemented measures designed to reduce VOC usage,such as recycling spent isopropyl alcohol(IPA),thereby reducing waste and our reliance on the use of VOCs.Figure 11 below illustrates the reduction in the usage of n-propyl bromide,PERC,
183、and VOCs in our operations during 2024,which helps reduce our overall ecological footprint.Figure 11Total HAPs/VOC Discontinued 2024 Perchloroethylene,N-Propyl Bromide and IsopropylAlcohol Discontinued(lbs)PerchloroethyleneN-Propyl BromideIsopropyl Alcohol39,2002,52531,790242024 CER REPORT2024 Envir
184、onmental PerformanceEnergy ManagementWe rely on electricity and other forms of energy to power our operations and to heat,cool and light our facilities.Our performance centers utilize a diverse range of equipment,from traditional machinery like computerized numerical control(CNC)tools and mills,to a
185、dvanced technologies such as high-powered laser cutters,industrial 3D printers and soldering and bonding machines.Additionally,we use large presses for high-temperature part and die processing,as well as ovens and autoclaves for curing paints,bonding components and heat-treating metal parts.Our surf
186、ace processing involves heating and moving large quantities of fluids and managing substantial volumes of air.For aerospace parts,we operate large gantry mills and presses that apply thousands of tons of pressure.These machines require a large amount of energy from a reliable source.Based on our dem
187、and,energy efficiency is a key element of our sustainability program.To advance our energy efficiency campaigns,we regularly identify opportunities for energy reduction through pilot energy efficiency projects at select performance centers.Successful initiatives are then adopted at other performance
188、 centers.Annual energy audits help us identify further opportunities for pilot energy savings projects across all our performance centers.As shown in Table 1 of Appendix 1 and Figure 9,in 2024,our total energy decreased by 20%on an absolute basis compared to the 2019 baseline.This reduction is attri
189、buted to our proactive energy efficiency initiatives and investments in energy-saving equipment and processes,despite the relatively recent acquisition of three new performance centers spread across the United States:BLR in Washington State,MagSeal in Rhode Island and Nobles in Wisconsin.Additionall
190、y,we added our Guaymas,Mexico operations to our reporting scope in 2023.Moreover,as part of our restructuring plan for 2024,we ceased operations at two performance centers-Monrovia,California and Berryville,Arkansas-shifting production to Coxsackie,New York and Guaymas,Mexico.Our 2019 baseline data
191、did not include energy usage from our recent acquisitions.As of December 31,2024,approximately 55%of our energy consumption drew from the grid,with 45%sourced from renewable energy in partnership with local utility providers.Figure 12Total Energy Use2019 Baseline vs 2024(absolute basis)Total Energy
192、Use(GJ)201920202024202320222021396,096316,379332,183320,353341,080335,093Renewable EnergyIn 2024,we significantly increased our reliance on renewable energy sources through the use of power purchase agreements.Specifically,we solidified strategic partnerships with utility providers,such as the NYPA,
193、to source 100%of our energy usage for the Coxsackie,NY performance center from hydroelectric power.Additionally,our Santa Clarita,CA performance center sources 10%of its energy from onsite rooftop solar panels.Our performance centers in St.Croix Falls,WI,and Carson,Gardena and Huntington Beach,CA ha
194、ve been sourcing 100%of their energy needs from renewable sources,which we hope to continue in the future.Additionally,in 2024,our Parsons,KS performance center began sourcing 50%of its energy from renewable sources.252024 CER REPORT2024 Environmental PerformanceWe are also pleased to report that we
195、 now derive approximately 45%of our energy needs from renewable sources on an enterprise-wide basis.Figure 13 summarizes our journey towards increasing our renewable energy usage from 2019-2024.Figure 13Percentage of Total Renewable Energy Usage Percentage of Total Renewable Energy Usage between 201
196、9-20242019202020212022202320240.05%0.08%0.08%45%16%8%Hazardous and Non-Hazardous Waste ReductionDucommun continues to prioritize the responsible management of hazardous25 and non-hazardous waste26,investing significant resources to help reduce our waste footprint by finding innovative ways to recycl
197、e,reuse and extend the service life of materials throughout our operations.The waste streams generated by Ducommun on an enterprise-wide basis are byproducts from various operational processes,such as spent chemicals from process tanks,coating operations and surface preparations.By recycling and reu
198、sing such materials,we may also reduce Scope 3 GHG emissions by decreasing the number of transportation miles driven by third-party waste haulers.By working with third-party waste haulers,we have gained a clearer understanding of our overall waste profile,enabling us to increase the amount of hazard
199、ous and non-hazardous waste eligible for recycling and reclamation.In 2024,Ducommun successfully recycled 17%of hazardous waste offsite27,while 51%was recycled or reclaimed onsite.For non-hazardous waste,Ducommun recycled 35%offsite,disposed of 62%and recycled 3%onsite.Figure 14 illustrates the tota
200、l hazardous waste volumes,including disposal,reclamation and recycling data,and Figure 15 illustrates the total non-hazardous waste volumes,including disposal and recycling data.Figure 16 illustrates our total waste disposed in 2024 by waste type.25 Hazardous waste:Waste that applicable governmental
201、 authorities have determined to have dangerous properties,such as being corrosive,reactive,toxic or flammable.Examples include heavy metals,toxic chemicals and pesticides.The Environmental Protection Agency(EPA)and similar state environmental agencies stringently regulates hazardous waste.26 Non-haz
202、ardous waste:Waste that applicable governmental authorities have determined to not generally have dangerous or toxic properties,such as paper,plastic,wood and organic waste.27 Offsite recycling and reclamation is determined via the hazardous waste management codes,which are received from TSDFs and b
203、ills of lading on all hazardous waste manifests.262024 CER REPORT2024 Environmental PerformanceFigure 142024 Total Hazardous Waste Generated28 Volume Disposed vs Volume ReclaimedOffsite and Reclaimed and Reused Onsite17%51%Total Hazardous Waste Volume DisposedTotal Hazardous Waste Volume Reclaimed O
204、ffsiteTotal Hazardous Waste Volume Reclaimed Onsite32%Figure 152024 Total Non-Hazardous Waste Generated29 Volume Disposed vs Volume RecycledOffsite and Recycled Onsite62%35%3%Total Non-Hazardous Waste Volume DisposedTotal Non-Hazardous Waste Volume Recycled OnsiteTotal Non-Hazardous Waste Volume Rec
205、ycled OffsiteFigure 162024 Total Waste Type Disposed(in metric tons)1,273Total HazardousWaste DisposedTotal Non-HazardousWaste(Landfill)Total UniversalWasteTotal E-Waste161,08728 Hazardous waste generated refers to any waste that meets the applicable governmental authoritys definition of a hazardous
206、 waste and is not exempt from regulation.This includes wastes that are accumulated onsite for any time before disposal or recycling,placed directly into an onsite disposal or treatment unit or generated and removed from storage tanks.29 Non-Hazardous waste generated refers to waste that the applicab
207、le governmental authorities have determined pose reduced risks to humans or the environment compared to hazardous waste.272024 CER REPORT2024 Environmental PerformanceReducing Hazardous and Non-Hazardous Waste via the Circular Economy Concept Aims to Reduce Scope 3 GHG Emissions and Improve Operatio
208、nal EfficienciesDucommun is committed to identifying ways to reduce waste through the circular economy model,helping to enable the recovery and reuse of materials in production.By utilizing proprietary processes,Ducommun works to minimize adverse environmental impacts and improve operational efficie
209、ncy.The adoption of the circular economy concept facilitates the identification of opportunities to reuse and recycle materials used in industrial processes.Ducommun strives to reduce both hazardous and non-hazardous waste byproducts generated from its operations to help support the protection of th
210、e environment and communities in which it operates.By minimizing waste streams,we aim to achieve not only environmental benefits but also improved business performance,which can reduce costs and deliver more value to our stakeholders.Ducommuns efforts and practices to reduce waste generation,and sim
211、ultaneously,Scope 3 GHG emissions in 2024 included the following:Performance Center(s)Waste Reduction Project(s)TypeScopeEstimated GHG Impact(Reduction)30Estimated Environmental Impact31 Carson,CA Coxsackie,NY Monrovia,CA Diversion of empty chemical containers from hazardous waste landfills Scope 3
212、3 metric tons of Scope 3 GHG emissions Reduced the volume of waste sent to hazardous waste landfills by 2 metric tons Carson,CA Gardena,CA Onsite evaporators for non-hazardous and hazardous waste Scope 3 78 metric tons of Scope 3 GHG emissions Reduced the volume of hazardous waste shipped by 590 met
213、ric tons Warren,RI Onsite reclamation of spent lubricant Scope 3 2 metric tons of Scope 3 GHG emissions Recycled and reused 4 metric tons of hazardous materials Orange,CA Offsite reclamation of used PERC solvent Scope 3 176K metric tons of Scope 3 GHG emissions Recycled and reused 85 metric tons of
214、hazardous waste Carson,CA Tulsa,OK Recycling and reusing of spent solvents Scope 3 22 metric tons of Scope 3 GHG emissions Recycled and reused 1 metric ton of hazardous waste Gardena,CA Monrovia,CA Recycling and reusing of spent chemical solution Scope 3 18 metric tons of Scope 3 GHG emissions Recyc
215、led and reused 92 metric tons of hazardous waste Orange,CA Onsite reclamation of spent etchant Scope 3 3,467 metric tons of Scope 3 GHG emissions Recycled and reused 1,937 metric tons of hazardous waste30 The estimated GHG impact from our waste reduction projects includes a reduction in miles driven
216、 by waste haulers,along with lower GHG emissions from reusing materials instead of purchasing virgin raw materials.Applicable EPA and GHG protocol factors are used to estimate the GHG impact reductions.31 The estimated environmental impact is based on the actual volume of waste that was reused,recyc
217、led or processed in house.This data is tracked across all performance centers via a spreadsheet.282024 CER REPORT2024 Environmental Performance Waste DiversionDucommun remains committed to sustainability and environmental stewardship by applying the circular economy concept to waste recycling,divers
218、ion and recovery.Since reusing,recycling and extending the life of materials are essential to the circular economy,we are dedicated to continuously seeking innovative solutions and improving our processes to preserve and enhance the value of spent resources.To that end,metals from production waste s
219、treams,cardboard from packaging,consumed toners from printers and paper waste were all part of an enterprise-wide recycling initiative in 2024.Furthermore,we have partnered with a key customer to reuse packaging material,decreasing our waste landfill impact.Reducing Landfill Waste via Recycling and
220、Reducing Scope 3 GHG EmissionsThe highlights of Ducommuns recycling initiatives in 2024 and corresponding reductions in Scope 3 GHG emissions are summarized below:Performance Center(s)Waste Diversion Project(s)Type Scope Estimated GHG Impact(Reduction)32Estimated Waste Recycling Impact33 All Perform
221、ance Centers Cardboard Recycling Scope 3 5 metric tons of Scope 3 GHG emissions Recycled 43,214 pounds of cardboard All Performance Centers Scrap Metal Recycling Scope 3 89 metric tons of Scope 3 GHG emissions Recycled 882,563 pounds of scrap metals All Performance Centers Toner Recycling Scope 3 3
222、metric tons of Scope 3 GHG emissions Recycled 210 pounds of toners Appleton,WI St.Croix Falls,WI Recycling Plastics as Fuel Pellets N/A N/A Recycled 24 metric tons of plastic Santa Clarita,CA Huntington Beach,CA Recycling Excess Plastics Scope 3 1 metric tons of Scope 3 GHG emissions Recycled 23,868
223、 pounds of excess plastics Gardena,CA Huntington Beach,CA Appleton,WI Recycling packaging Scope 3 2 metric ton of Scope 3 GHG emissions Recycled 1,960 lbs of packaging32 The estimated GHG impact from our waste diversion projects includes a reduction in miles driven by waste haulers,along with lower
224、GHG emissions from reusing materials instead of purchasing virgin raw materials.Applicable EPA and GHG protocol factors are used to estimate the GHG impact reductions.33 The estimated environmental impact is based on the actual volume of waste that was reused,recycled or processed in house.This data
225、 is tracked across all performance centers via a spreadsheet.292024 CER REPORT2024 Environmental PerformanceRecycling of ChemicalsDucommun recycled,reused and reclaimed34 a total of 2,800 metric tons of chemicals,the vast majority of which were reused on site.See Figure 17 below for the total percen
226、tage distribution of recycled chemicals in 2024.Figure 172024 Total Volume of Recycled Chemicals,Reused,and Reclaimed in lbs.73%2%3%22%Reclaimed OnsiteReclaimed OffsiteReused onsiteSaved during tank cleanout Reportable SpillsReportable spills35 are defined as any release of a hazardous substance in
227、an amount equal to or greater than its reportable quantity as defined by applicable regulations.Ducommun manufactures a significant variety of commercial,industrial and aerospace products,and our performance centers are required to store and utilize a wide variety of chemicals during production.Acco
228、rdingly,environmental stewardship and safety are key focus areas at Ducommun to help prevent harm to the environment and avoid employee exposure to such chemicals by maintaining engineering and administrative controls designed to prevent the spill or release of regulated substances.In addition to ut
229、ilizing engineering controls such as secondary and tertiary physical containment systems,administrative controls such as inspection and preventative maintenance programs are also implemented and certified annually by independent third parties.Moreover,we continue to transition away from the use of U
230、STs to ASTs so that the early detection of potential leaks and spills can be more easily identified and quickly mitigated.As depicted in Figure 18 below,for the fourth consecutive year,Ducommun had no reportable spills in 2024,as defined by the SASB Aerospace and Defense Industry Standard.Figure 18R
231、eportable Spills2021202220232024Number of Reportable Spills0000Reportable Quantity Spilled(kg)0000Quantity Recovered(kg)000034 The amount of offsite recycling and reclamation of chemicals is determined via the bills of lading from third-party vendors that recycle and reclaim chemicals.35 Reportable
232、spills are defined by the SASB Aerospace and Defense Industry Standards RT-AE-150a.2.,as any release of a hazardous substance in an amount greater than or equal to the threshold required to be reported to applicable jurisdictional legal or regulatory authorities.For this Report,we consulted Table 30
233、2.4 in Chapter 40 of the CFR Part 302.4 of the U.S.Comprehensive Environmental Response,Compensation,and Liability Act(“CERCLA”),including consideration of reportable quantities of mixtures and solutions as defined under 40 CFR Part 302.6(b)(1).302.4 of the U.S.Comprehensive Environmental Response,C
234、ompensation,and Liability Act(“CERCLA”),including consideration of reportable quantities of mixtures and solutions as defined under 40 CFR Part 302.6(b)(1).302024 CER REPORT2024 Environmental Performance Water and EffluentsWater Conservation SystemsWater is integral to many aspects of Ducommuns oper
235、ations.It is a crucial element of many processes used to produce our various products,such as in process tanks for rinsing,as part of solutions,in restrooms for employee facilities,in boilers for energy production and in the treatment of industrial wastewater.We are committed to using water efficien
236、tly and responsibly across these various functions.In 2024,Ducommun continued its commitment of striving to protect and conserve water resources by managing consumption across all performance centers and implementing water-recycling initiatives where possible.Additionally in 2024,we included water w
237、ithdrawals36,water demand37,water returned to source38 and water recycled or reused39 as key performance metrics to identify future opportunities for improvement.Ducommuns total water withdrawals in 2024 amounted to 55.1M gallons,including 54.5M gallons from utility providers and 564K gallons from o
238、nsite water wells.Total demand for 2024 was 41.2M gallons.We recycled 2.9M gallons of water through recycling efforts.Figure 19 illustrates the distribution of total water withdrawals,demand and total water use avoidance due to recycling and reuse.We are proud of our progress in this key metric,as i
239、t represents our dedication to sustainable water conservation practices.Figure 192024 Ducommun Total Water Withdrawal(utilities and groundwater sources)vs Demand,Recycled,and Returned to Source(gallons)Total WaterWithdrawal(Utilities)Total WaterDemandTotal WaterWithdrawal(groundwater)Total WaterRecy
240、cled(Onsite and Offsite)Total WaterReturned toSource54.5M41.2M13.5M2.9M0.5M36 Water withdrawal refers to the total amount of water taken from the source,including both fresh and recycled water,for use in the manufacturing process.Water procured from water utility companies is considered water withdr
241、awal as the water company withdrew the water from source then delivered it to its consumer.37 Water demand refers to the portion of withdrawn water that is not returned to the source,typically lost through evaporation or incorporated into a product.38 Water returned to source is water that has been
242、diverted for a non-consumptive use,then returned to its original source.39 Water recycled is water that has been treated as wastewater and is reused for other purposes like irrigation or industrial processes.312024 CER REPORT2024 Environmental PerformanceThe following are specific examples of our re
243、cent water demand management initiatives:Performance Center(s)Water Recycling Project(s)Type ScopeEstimated GHG Impact(Reduction)40Estimated Water Recycling Impact41 Santa Clarita,CA Burnt-off oven water recycling system N/A N/A Reduced overall water demand by 202,500 gallons of fresh water annually
244、 Huntsville,AR Rack degreaser project equipped with self-contained recycling unit N/A N/A Reduced overall water demand by over 20,000 gallons of fresh water annually Appleton,WI Tulsa,OK Rinse water recycling system N/A N/A Appleton,WI reduced overall water demand by 161,700 gallons of fresh water a
245、nnually Tulsa,OK reduced overall water demand by 6,100 gallons of fresh water annually Orange,CA Chillers,boilers and compressors for condensate recycling N/A N/A Reduced overall water demand by approximately 455,000 gallons of fresh water annually California performance centers Landscaping watering
246、 reductions and planting of drought resistant plants N/A N/A Reduced overall water demand by approximately 154,023 gallons of fresh water St.Croix Falls,WI Spotweld cooling system N/A N/A Reduced overall freshwater demand by 14,000 gallons annually Coxsackie,NY Closed loop water recycling system N/A
247、 N/A Reduced overall freshwater demand by 3,717,890 gallons annually Santa Clarita,CA Closed loop water recycling system N/A N/A Reduced overall water demand by 52,000 gallons of freshwater Tulsa,OK Wastewater Recycling Program N/A N/A Reduced overall freshwater demand by 226,000 gallons annually Jo
248、plin,MO Water Testing Recycling N/A N/A Reduced overall freshwater demand by 11,500 gallons annually40 The estimated GHG impact for water recycling is not applicable,as no direct GHG emissions are associated with our water recycling processes.41 Our estimated water recycling impact is based on the v
249、olume of water either saved through recycling,reused or recirculated within our processes.Data is tracked accordingly to monitor the effectiveness of these measures.322024 CER REPORT2024 Environmental PerformanceWastewater DischargeDucommun is committed to the responsible treatment and discharge of
250、wastewater,a natural byproduct of its manufacturing processes,in line with regulatory standards.Our maintenance and EHS teams work hard to ensure the wastewater treatment systems comply with the discharge limits set by applicable authorities and follow industry best practices whenever feasible.In 20
251、24,Ducommuns total wastewater discharges were approximately 13M gallons,as seen in Figure 20.Our commitment to sustainable wastewater management includes several key components:1.Compliance and Beyond:While meeting the wastewater discharge limits established by regulatory agencies is essential,we co
252、nsider this merely a baseline rather than an end goal.Our aim is to surpass compliance requirements by seeking opportunities to exceed these limits,hoping to positively impact the local water supply.2.Recycling and Reuse:We actively seek opportunities to recycle and reuse treated wastewater,wherever
253、 possible.This not only conserves precious water resources but also helps to reduce the adverse environmental impact associated with our operations.Figure 202024 Ducommun Total Wastewater Discharge vs Total Wastewater Reductions(gallons)13M,89%Total Wastewater ReductionTotal Wastewater Discharge1.6M
254、,11%332024 CER REPORT2024 Environmental PerformanceEmpowering Our Partners in their Decarbonization Journey Appleton Performance Center Recycles Plastic into Sustainable FuelOur Appleton performance center received an award from the Wisconsin Department of Environmental Protection for its exceptiona
255、l efforts in converting plastics,trash and other waste materials into fuel pellets.These pellets are used as a substitute for coal in power plants across the state,marking a significant step forward in both waste management and sustainable energy solutions.All of the waste materials converted to fue
256、l pellets are diverted from landfills,further reducing our carbon footprint.This award highlights our teams dedication to not only reducing waste but also contributing to cleaner energy production.By transforming non-recyclable plastic waste into fuel pellets,the performance center successfully dive
257、rted large quantities of plastic from landfills and provided a viable alternative to traditional coal-based power generation.This project aligns with Wisconsins broader efforts to reduce carbon emissions and promote cleaner,more efficient energy sources.The innovative process also supports the state
258、s sustainability goals and creates a circular economy where waste is repurposed into a valuable resource.The award from the Wisconsin Department of Environmental Protection serves as recognition of the innovation and forward-thinking solutions our team at the Appleton performance center has implemen
259、ted.We are proud of this accomplishment and remain committed to exploring new and effective ways to contribute to environmental sustainability.Investment in Low Carbon and Sustainable OpportunitiesDucommun continues to invest in products to help develop and expand renewable sources of energy within
260、its industry.As previously reported,our LDS business designs and manufactures segmented lightning diverter strips and protection devices for aerospace,defense and industrial markets.Since 2020,LDS has been in an exclusive licensing relationship with WSU for advanced lightning strike protection techn
261、ology to be used on wind turbines.The intent of the partnership with WSU is to further develop and commercialize the technology,originally developed at WSUs National Institute for Aviation Research,and offer it to wind turbine manufacturers and operators who require more robust,cost-efficient lightn
262、ing strike protection to further develop this renewable energy source.As of 2024,Ducommun remains actively engaged in field trials to commercialize what we view as a significant and sustainable technology.342024 CER REPORT Supporting Key Customers in Fuel Efficiency ImprovementsDucommun recognizes t
263、hat many of our customers have set ambitious GHG emissions reduction goals for fuel efficiency in the design and manufacture of aerospace products.As a supplier to major aerospace companies,Ducommun is committed to helping to meet the evolving needs of its customers through the leadership of its hig
264、h-performance engineering and manufacturing teams,customer relationships and participation in industry associations.We are working closely with our customers to innovate improvements in product design with a focus on reducing drag and overall weight to help improve the fuel efficiency of commercial
265、aircraft and space rockets.The following examples illustrate our collaboration with customers to design and manufacture products to meet evolving aerospace industry fuel efficiency requirements:1.Our Orange,CA performance center utilizes chemical processing on fuel bottle lines used by space rockets
266、 to minimize weight,resulting in a lighter rocket for improved efficiency and performance.2.We acquired BLR in April 2023,which designs winglets,FastFins and Vortex Generators to optimize airflow,and the Whisper Prop,a carbon fiber propeller using natural composite materials instead of metals.BLRs p
267、roducts are intended to reduce drag,thereby enhancing the fuel efficiency and performance of helicopters.3.At our Guaymas,Mexico performance center,we design and manufacture VersaCore Composite components for engine transcowls and aircraft control surfaces.The lightweight composite materials used to
268、 manufacture each component weighs less than traditional materials,therefore helping to improve fuel efficiency by reducing the overall weight of an aircraft.4.Our Santa Clarita,CA performance center designs solutions to replace aluminum parts with lightweight plastic components that help to reduce
269、the weight of,and correspondingly,help to improve the fuel efficiency of aircraft into which such parts are incorporated.5.At our El Mirage,CA performance center,hollow fan blades are chemically milled to reduce weight,improving the efficiency of the rotating components of an engine.6.Our Gardena an
270、d Orange,CA performance centers chemically mill aircraft aluminum skins to reduce the overall weight of aircraft and improve fuel efficiency.352024 CER REPORTEmpowering Our Partners in their Decarbonization Journey2024 Social Performance Human Capital ManagementOur focus on continued improvement wit
271、hin the organization extends beyond manufacturing and operations,including the areas of human capital management and organizational development.As such,we promote fairness and equal opportunity across our employment practices and processes and continue to drive such culture throughout the Company.Th
272、ese priorities are demonstrated by promoting our employees well-being and encouraging the sharing of ideas and unique perspectives,promoting innovation,creativity,collaboration and supporting the development,growth and advancement of individual contributors.Equal Employment Opportunity(EEO)Ducommun
273、makes all employment decisions based on individual merit and prohibits all forms of unlawful discrimination.Ducommuns employment philosophy and practices focus on providing equal and fair opportunities for employment to all.Ducommun maintains an active outreach program so that individuals from varyi
274、ng backgrounds have access to apply for job opportunities within our organization.Tenure in Company LeadershipLeadership positions42 within Ducommun encompass both long-standing expertise and fresh perspectives,as shown in Figure 2143.This provides a balance of both stability and innovation.The lead
275、ership tenure chart highlights the broad range of leadership expertise within the Company,combining deep experience with a wide spectrum of ideas to guide our organization forward.Figure 21Human Capital2024 Tenure of Individuals in Leadership Roles27%10%8%Investing in our EmployeesDucommuns human ca
276、pital strategy involves creating a work environment that encourages safety,health and well-being and overall engagement and development for our employees.It is our goal to promote fairness and growth opportunities within all employment practices,allowing opportunities for all individuals to develop
277、and advance.Employee Health and WellnessDucommun recognizes that our employees are a valuable part of the community within the organization as well as the community at large.Accordingly,our employees health and wellness are critically important.In 2024,health and wellness initiatives offered to our
278、employees throughout the year included improved employee assistance programs,an annual health fair,flu shot clinics and onsite grief counseling support services.Our employees have access to a variety of resources including counselling support,training and development topics such as managing remote w
279、ork,stress management,emotional intelligence and improved self-help resources including tools,videos,financial calculators and informative articles to assist with life decisions and events such as adoption,relationship troubles,legal issues,financial well-being and health issues.Operational Health a
280、nd SafetyAs discussed in the previous sections of the Report,Ducommun places a premium on the safety of its employees,both in terms of overall well-being and in the context of our operations.We are committed to continuing to improve our programs by identifying opportunities to measure and evaluate K
281、PIs relating to EHS issues across the enterprise.Ducommuns operational health and safety initiatives in 2024 included the following:1.We continued to communicate EHS KPIs to senior management on a quarterly basis,which included both lagging and leading indicators.In 2023,the measurement of leading i
282、ndicators was expanded to include first aid cases and near-miss incidents to support the timely completion of corrective actions identified during routine internal compliance inspections and investigations.We mandated that all our performance centers report any first aid and near-miss incidents to t
283、rack identified potential hazards before they result in recordable injuries or illnesses.In 2024,we rolled out behavior-based safety observations to complement our existing safety-related leading indicators.By integrating behavior-based safety into our processes,we can better identify and seek to ad
284、dress behaviors that influence our leading indicators,ultimately helping to reduce our recordable and first aid injuries.The inclusion of these additional metrics into our EHS program led to a 44%reduction in recordable incidents in 2024 compared to 2023.Looking forward,we strive to continue to deve
285、lop our approach by expanding the monitoring and measurement of EHS lagging and leading indicators to identify further opportunities to improve safety outcomes.2.Ducommun continued to implement an enterprise-wide EHS software system to assist the EHS team and local safety committees in tracking the
286、completion of open corrective action items and inspections and identifying opportunities to improve site-level safety.Since 2022,an impressive 99.9%of action items and inspections have been successfully completed through the utilization of the EHS management software across all performance centers.3
287、.In response to emerging trends and insights from our safety metrics and observations,Ducommun focused on addressing critical safety gaps through safety campaigns in 2024.A prominent example is our personal protective equipment campaign,with a goal of improving PPE compliance across the enterprise.T
288、hrough data analysis,the EHS team identified opportunities for improvement,with the campaign not only emphasizing the importance of proper PPE,but also encouraging a culture of employee accountability.With a combination of training,enhanced supervision and regular feedback,our goal is to build a str
289、onger safety culture while ensuring that safety standards are met.4.We regularly issued safety alert communications to the entire organization that aim to prevent future injuries through increasing awareness and education,sharing best practices and facilitating actions to mitigate safety risks.5.In
290、2024,all our manufacturing supervisors and many of our leads completed OSHA 10-hour training to enhance their understanding of workplace safety standards.This initiative was designed to enhance our safety program and ensure that our supervisors and leads have the necessary skills to uphold safety st
291、andards,identify potential hazards and implement corrective actions.It is part of our broader effort to continuously improve safety across our performance centers.372024 CER REPORT2024 Social PerformanceDucommun tracks the number of lost time incidents and total recordable incidents incurred by our
292、employees as a measure of the effectiveness of our health and safety programs.The Lost Time Incident Rate is defined as incidents that resulted in days away from work and is similar to the days away,restricted or transferred metric utilized by OSHA.In 2024,our Lost Time Incident Rate was 0.04,which
293、represented an 89%decrease compared to the baseline year of 2019.In addition,our 2024 Total Recordable Incident Rate was 0.34,a decrease of 86%compared to the baseline year of 2019,or a decrease of 44%compared to the prior year.Moreover,and as previously discussed,Ducommun began tracking the number
294、of first aid and near-misses in 2021 to prevent accidents before they occur and to reinforce our safety-first culture.As a result,183 near-miss incidents were recorded in 2024,and 63 first aid cases were reported.An increase in reporting allows us to address concerns before they result in a recordab
295、le or lost time incident.Our performance against these metrics is depicted in Figure 22 below.Figure 22Lagging Indicators of Safety LOST TIME INCIDENTS RECORDABLE INJURY INCIDENTSLost Time Incident Rate20190.36202120202024202320220.330.04Total Recordable Incident Rate 2019202020212024202320220.341.5
296、22.420.690.610.740.310.000.08Leading Indicators of Safety NEAR-MISS INCIDENTS FIRST-AID INCIDENTSNumber of Near-Miss Incidents Reported44 Number of First-Aid Cases Reported45202173202420232022966310220212024202320221834619310444 We first began reporting our near-miss incidents in 2021,therefore ther
297、e is only a 3-year look back for near-miss cases.45 We first began reporting our first aid incidents in 2021,therefore there is only a 3-year look back for first aid cases.382024 CER REPORT2024 Social PerformanceEmployee Engagement Ducommun 175th Anniversary Celebration:In 2024,employees across all
298、performance centers joined in a company-wide celebration of our 175th anniversary.Employees received a commemorative book,coin and polo shirt.All locations hosted a special luncheon to celebrate the momentous occasion.(See Figure 23 and Appendix 9).Figure 235th Annual Engineers Week:In 2024,we celeb
299、rated our 5th Annual Engineers Week(EWeek),which is dedicated to recognizing and appreciating our engineers and technicians by holding innovation and emerging technologies competitions.Keynote speakers,including one of the independent members of the Boards Innovation Committee,were invited to kickof
300、f and close out the 5th Annual EWeek event.Other events included fun interactive STEM and team building activities such as bridge design competitions,pinewood derby races and golf outings.We also utilize this week to extend outreach to local STEM organizations at the high school and college levels t
301、o promote an interest in the engineering profession.These outreach efforts have allowed our performance centers to develop valuable relationships with local organizations that continue well beyond the one-week celebration.The Excellence in Innovation Award celebrates the completion and implementatio
302、n of projects during the previous year,with 2024s top honors being presented to the Nobles Worldwide performance center for its project on the 50mm Ammunition Handling System(See Figure 24).Figure 244th Annual National MFGDay Event:In October 2024,all of Ducommuns performance centers participated in
303、 the 4th Annual MFGDay event.This event,organized nationally by the Manufacturing Institute and the National Association of Manufacturers,presents unique opportunities for middle and high school students to learn about careers in manufacturing after completing their education.Our teams across Ducomm
304、un hosted onsite tours,presentations and hands-on activities(see Figure 25).Some locations attended local community student events highlighting manufacturing careers for students.In 2024,our performance centers connected with over 1,500 students to provide support and education for career planning.D
305、uring this annual event,we take the opportunity to recognize and appreciate the efforts of our entire workforce for the hard work and dedication they provide the Company and our customers.392024 CER REPORT2024 Social PerformanceFigure 25Employee Appreciation Events:All of Ducommuns performance cente
306、rs recognize the hard work and dedication of our employees through numerous celebrations and events throughout the year.In 2024,we began our Employee of the Quarter recognition program where employees nominate coworkers for outstanding teamwork and achievement.Other events include employee appreciat
307、ion days and luncheons to commemorate the achievement of operational goals and employee milestones,birthdays,retirements and holidays.In 2024,we also held solar eclipse watch parties across many of our performance centers to provide the opportunity to witness a truly unique celestial event.In additi
308、on,we held special events to acknowledge and appreciate our military service employees on Veterans Day(See Figure 26).Figure 26Employee Engagement Survey:In 2024,Ducommun conducted a company-wide smaller engagement pulse survey to collect valuable feedback from our employees.The purpose of this surv
309、ey was to assess overall engagement and track progress in key areas,such as individual recognition and improving the work environment.The participation rate for the 2024 pulse survey was 63%.In nearly 50%of our performance centers,we saw an increase in engagement scores compared to the 2023 full eng
310、agement survey.Engagement priorities for 2025 will continue to focus on opportunities to increase individual recognition and improve overall work environment.Employee Stock Ownership Program and Retirement BenefitsSince 2019,Ducommun has offered its eligible employees the opportunity to participate
311、in the ESPP.The ESPP provides employees with the opportunity to share in Ducommuns success and continued growth through the purchase of shares of the Companys stock.The plan allows eligible employees to accumulate contributions through after-tax payroll deductions to purchase shares of Ducommun stoc
312、k at a 15%discount.Overall participation levels in the ESPP program have increased by 28%since the programs inception.In addition,our 401(k)program has a 91.7%participation rate among eligible employees,with annual training and educational sessions held at each Ducommun performance center.Employee T
313、uition Assistance ProgramDucommun offers a tuition assistance program to encourage employees to continue their formal education.The program provides financial assistance to eligible employees for completing courses that align directly with an employees assigned job function or that will help prepare
314、 them for future advancement within the Company.In 2024,Ducommun issued tuition reimbursement payments totaling more than$30,000 to employees in various functional departments,including engineering,accounting,quality,sales,supply chain and logistics.402024 CER REPORT2024 Social PerformanceWorkforce
315、DataOur employees consistently express that they feel welcomed and valued,with a strong sense of mutual respect among colleagues.The long tenure of many of our employees is indicative of the positive environment we have cultivated,one that promotes equal employment opportunity,authenticity and innov
316、ation.Moreover,the dedication of our employees reflects our focus on fostering a sense of belonging and fairness with the Company.Figure 27 below shows our workforce distribution by tenure.Figure 27Human Capital2024 Tenure of Workforce9%6%Organizational Development:Building Talent and OpportunityAt
317、Ducommun,we recognize our employees as our most valuable resource.The talent and skills of our employees allow us to drive innovation and solutions across the organization in support of our customers and their needs.We continue to seek ways to standardize and improve systems and processes to promote
318、 consistency and fairness in our employment practices.A continued focus on outreach opportunities and partnerships allows us to support our hiring goals.Recruitment and Onboarding Recruiting strong talent and retaining that talent is critical to driving quality and innovation.We use a variety of met
319、hods and resources to attract,recruit and retain our human capital.In 2024,in support of our recruitment strategy for attracting and retaining top talent,our human resources team focused on enhancing the career website and continuing outreach to students and veterans.In addition,ongoing improvements
320、 to the recruiting and selection process support our goal of enhancing the applicant experience.In 2024,our recruiting team implemented several improvements to the career website,improving the applicant experience,as well as enhancing application source tracking to further develop our ability to ana
321、lyze the effectiveness of recruiting sources.Last year,we implemented tools to assist in connecting with college students.We are excited to report that the student connection database has increased to approximately 900 students and has improved our ability to fill critical engineering positions.In 2
322、024,the HR and recruiting teams attended at least 21 career fairs and enhanced our internship opportunities and experience across performance centers.Alexa Wibbenmyer,Missouri University of Science and Technology Aerospace Engineering major,stated“This summer,being a part of Ducommuns Engineering In
323、tern Program has taught me to be consistent in my work,strive for communication,and have fun.I am grateful for the friendships Ive made and opportunities Ive been given.The people here have made my experience truly unforgettable.”Other notable activities included interactive career days with student
324、s at many of our performance centers with a focus on engaging with future talent in support of their long-term career plans(See Figure 29).Outreach efforts to build partnerships with veteran organizations have continued in 2024,resulting in expanded opportunities to build relationships with veterans
325、 that facilitate recruitment and support.Specifically in 2024,we solidified our partnership with SkillBridge and have been utilizing this program to engage with veterans transitioning from the military to civilian employment.In addition,Ducommun is now an approved partner of the VAs Veteran Readines
326、s and Employment(VR&E)program.The VR&E program is designed to support veterans with service-connected disabilities prepare for,obtain and maintain employment.To support our veteran hires,the recruiting team has implemented a Ducommun Veteran Transition playbook and partners new veterans with existin
327、g Ducommun employees who are also former service members that can mentor the new hires.422024 CER REPORT2024 Social PerformanceFigure 29Talent DevelopmentIn 2024,we were very excited to partner with Franklin Covey,an independent consulting firm,to support our talent development initiatives.As a resu
328、lt,we launched a formal leadership development training program for key individuals across the organization with the goal of developing a“leaders mindset”by focusing on equipping our future leaders with essential skills that enhance employee engagement,improve collaboration and communication and dri
329、ve results.We also continued to focus on leadership effectiveness through dedicated sessions to enhance focus on long-term strategy,decision-making and overall communication(See Figure 30).Our LMS e-learning resources have continued to be utilized to offer compliance training,skill development,certi
330、fication preparation and individual development plans.Our future focus will be on enhancing our talent review and succession programs to further drive a high-performance and continuous learning culture.Figure 30Performance ManagementTalent management and performance reviews are vital to increasing o
331、ur capabilities,productivity and efficiency across every facet of the organization.Specifically,robust performance management processes support our philosophy of ongoing coaching and feedback as well as foster employee engagement and collaboration within all levels of the organization and these proc
332、esses are a part of our focused effort to drive organizational effectiveness,process efficiency and talent development.We aim to align core competencies with our core values,annual key focus areas,and employee and leadership expectations with this ongoing initiative.Investing in our CommunitiesDucom
333、mun is committed to being an active member of the local communities in which it operates by contributing financial resources and encouraging employees to volunteer with the non-profit and community-based organizations they care most about.The Ducommun FoundationIn 2019 we founded the Ducommun Foundation,a Section 501(c)(3)organization that serves as the Companys philanthropic arm to financially su
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