Sustainability Report 2023

A word from our CEO

As we reflect on the past year and look ahead to the opportunities and challenges on the horizon, it is clear that the corporate sustainability landscape is rapidly evolving as companies are being called upon to help combat the effects of climate change and protect the equalities and livelihoods of all people around the globe. Not only has EnerSys begun to answer that calling, but we are also well-poised to help our customers and other stakeholders transition to a low-carbon economy through the positive impact of our products and services. Sustainability is increasingly integrated into our overall message because it is a core part of who we are and what we do.

Our commitment to sustainability is ingrained in our core values. By prioritizing continuous improvement, we seek to remain an industry leader, driving positive, sustainable and profitable change in our operations. Our increasingly energy-efficient products meet the demands of our customers’ energy needs and storage challenges while concurrently reducing electricity costs and carbon emissions; they also have a net positive impact on the climate. This impact, which we now quantify at the product level and plan to detail at the enterprise level in the coming months, is a testament to our dedication to sustainable practices and integration of environmental stewardship throughout our operations.

In 2023, EnerSys reached a significant milestone. According to the preliminary findings from our 2023 Scope 1, 2 & 3 emissions inventory, the avoided emissions associated with the use of our batteries in electric forklifts (replacing diesel and propane forklifts) on average range between five to ten times the emissions from mining, manufacturing and shipping our batteries, depending on battery model and how clean the electric grid is where the forklifts are used. In some locations, the avoided emissions from using EnerSys batteries reach a 20x net benefit. As we continue to reduce our operational and supply chain emissions footprint, these values improve even more. The findings from this past year emphasize the transformative impact our products have on mitigating the carbon footprints across the various industries our 10,000+ customers represent.

At EnerSys, we are committed to improving the sustainability, resiliency, and efficiency of our products, tailoring our services to help our customers reach their sustainability goals, and reducing our operational impact on the environment. As we advance solutions that contribute to a more sustainable future, we remain steadfast in our commitment to minimizing the impact of our manufacturing, transporting, and distribution processes.

I am proud of the progress EnerSys has made in 2023. Together, we will continue to champion sustainability for the betterment of our company, our stakeholders, and the planet. Thank you for reading our 2023 Sustainability Report. I welcome your feedback and ongoing interest in EnerSys.

Sincerely,

David M. Shaffer
President & CEO

A word from the Chair of the EnerSys Nominating and Corporate Governance Board Committee

In an era marked by urgent global challenges, the EnerSys Board of Directors reaffirms its unwavering commitment to sustainability. As stewards of our company’s mission, this commitment is not just a part of our business strategy; it’s woven into the fabric of our organizational culture and governance practices.

The Board’s oversight role in environmental, social and governance matters is fundamental to our governance structure. Our Nominating and Corporate Governance Committee is fully engaged in shaping robust ESG practices, leveraging our board members’ collective wisdom and experience.

In just a few short years since the inception of our sustainability department, we have witnessed remarkable growth and transformation. For instance, we have cut our Scope 1 emissions by over a quarter since 2019 and reduced our water use intensity per kWh of storage by nearly 7%. Our management team’s tireless efforts have yielded these tangible results, demonstrating our commitment and capacity to positively drive demonstrable progress and meaningful impact both in our own operations, for our customers, our employees, our investors, and our communities.

What sets EnerSys apart is not only that we employ sustainability practices throughout our operations, but we also see sustainability as integral to our product offerings and our bottom line. Our products are not only solutions for customer needs, but also a testament to our commitment to creating a more sustainable future. By aligning our sustainability initiatives with our broader brand strategy, we differentiate ourselves in the market and reaffirm our role as a leader for positive change.

We firmly believe that through our actions, EnerSys can lead industry change, serve our shareholders, customers, employees and communities, while also contributing to the transformation of our energy economy.

Looking ahead, I am filled with excitement and optimism for the future of sustainability at EnerSys. Together, we have achieved remarkable progress, and we will continue to power the future – everywhere for everyone.

Sincerely,

Rudolph Wynter
Chair of the EnerSys Nominating
& Corporate Governance Committee