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2017 SUSTAINABILITY REPORT

Strong partner for growth through
our ethical business practices,
technological innovations and
commitment to transparency.

A Message from Our CEO
Dear Valued Stakeholders,

At ESCO Technologies we recognize the growing global need to mitigate our environmental impact, protect our workers and enhance our communities. Our sustainability efforts are focused on learning to better understand and reduce our energy consumption and carbon footprint. We feel our positive initiatives also provide opportunities to increase employee engagement and workplace satisfaction as well as enhance our presence in the communities where we are located. Ultimately, we see our engagement in sustainability as supporting our goal to create long-term value for our shareholders.

In 2016, we completed a materiality assessment to identify the most important environmental, social and governance (ESG) topics for ESCO and issued our first sustainability report. Our 2016 report outlined our 8 most important topics and included our first measure of energy usage and greenhouse emissions. This created a baseline from which we can now begin to measure and set goals for our ongoing performance. Our 2017 report includes our first measure of water usage and similarly enables us to better understand our current consumption and explore ways to more efficiently manage our water usage. We are working to enhance and standardize our data collection and reporting efforts to further reduce our consumption in these areas.

In 2017 we also surveyed our subsidiaries to get a better understanding of the collective sustainability projects already underway. We are pleased with our initial findings regarding sustainability efforts currently in process. Recent highlights to reduce energy consumption and our carbon footprint include the installation of solar panels, switching to LED lighting, adding motion sensors and programmable thermostats and installing more energy efficient HVAC units and manufacturing equipment. These are just a few examples of the great work the ESCO companies are doing.

As a company, ESCO is focused on generating consistent and profitable long-term growth through the innovation and expansion of our highly engineered products and solutions. In 2017, we delivered solid operating results in our core businesses while expanding our product offerings and end markets served through key acquisitions. Looking ahead to 2018, we will work to integrate these new businesses into our sustainability efforts. We will also continue to deepen our efforts to integrate sustainability thinking into our work.

We hope you find our 2017 report informative as our intent is to demonstrate our commitment to integrating sustainability into our ongoing business model. We feel we are making meaningful progress in better understanding and managing our impact on the environment and our local communities.

With best regards on behalf of our team,

Vic Richey
Chairman, Chief Executive Officer & President


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