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2017 SUSTAINABILITY REPORT

Managing our supply chain to
promote responsible behavior and
reduce impacts from sourcing
raw materials.

Supply Chain Practices
At ESCO, we see the diversity of our markets and corresponding supply chain as a strength. Leveraging our widespread reach, we use our processes for supply chain management to promote sustainability, increase transparency regarding conflict mineral use and create positive change throughout our supply chain.

Each ESCO subsidiary uses ESCO’s Transparency in Supply Chain Disclosure, which outlines our commitment to refrain from doing business with any vendor we know to be involved in human trafficking or slavery. The ESCO Vendor Code of Conduct explicitly details the standards we expect all suppliers and third party agents to meet and is supported by periodic assessments to guarantee compliance. These requirements include:

  • Compliance with anti-corruption laws
  • Compliance with fair competition laws,
    Environmental Health & Safety (EH&S) regulations, trade controls and export/import requirements
  • Maintaining a professional demeanor
  • Refraining from offering gifts, bribes or
    other incentives
  • Respecting ESCO’s intellectual property rights
  • Honestly billing for products and services
  • Refraining from public communications about
    ESCO unless authorized
  • Sharing ESCO’s commitment to human rights
    and fair labor

Our subsidiaries have the responsibility to ensure that their vendors meet these expectations, and each has processes and procedures to monitor their vendors. For example, ETS ensures accountability of suppliers by conducting internal reviews of critical production suppliers and periodically evaluating its installation services providers to ensure that safety and quality requirements are met.


Conflict Minerals

Eliminating conflict minerals is a complex endeavor, but like other large companies, ESCO has the opportunity to leverage relationships with our thousands of suppliers and lead the way to fair extraction of all minerals. We collaborate with our suppliers to identify and monitor the procurement of products that may contain minerals sourced from the Democratic Republic of Congo and adjoining regions where the extraction of these minerals is often associated with human rights abuses.

In collaboration with suppliers, we use a five-step approach to conflict minerals management:

  • Establish strong company management systems
  • Identify and assess risks in the supply chain
  • Design and implement a strategy to respond to identified risks
  • Perform due diligence on the sources of our suppliers’ conflict minerals
  • Report annually on supply chain due diligence

Our Conflict Minerals Policy specifically outlines ESCO’s expectation that all suppliers cooperate in this effort, and our commitment to thorough review and transparency. ESCO annually requests its’ suppliers to provide information about the smelters and refiners from which they source conflict minerals. ESCO’s annual Conflict Minerals Report includes a list of the smelters and refiners identified by our suppliers and whether they have been certified as third-party conflict free.


Supplier-Customer Relationships

Customers are an increasingly important driver of our sustainability programs. ESCO counts many of the world’s largest and most well-known companies among its customers, and they are becoming increasingly rigorous in what they require from their vendors. We are regularly asked for data by our customers regarding our environmental, labor, quality and health and safety programs and practices, and many government contracts require a certain level of assurances and documentation about how we conduct business. In general, transparency and accountability are of paramount importance in our relationships with our customers.

For example, certain European customers of PTI, Crissair, ETS, and Mayday-Hi-Tech ask us to comply with the European Union’s REACH regulation. Other customers of TEQ/Plastique have sent surveys requesting energy consumption, carbon emissions, and water usage information, which we willingly provide. Beyond information sharing, Crissair also accommodates customers who require minimal packaging to reduce waste while engineers at Doble utilize product specifications provided through the formal Engineering Control Notification process to design products that take sustainability into account. These examples showcase the dedication of each of our subsidiaries to the administration of a balanced, responsible and change-making supply chain.


Corporate Resources

Corporate Resources


ESCO Conflict
Minerals Report for 2016

ESCO Transparency in
Supply Chains Disclosure

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