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2018 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,

ESCO Technologies portfolio of companies manufactures and provides customers with highly engineered, technologically superior products and process solutions. ESCO is dedicated to ensuring an efficient utilization of natural resources and raw materials, thus reducing our environmental impact.

Our 2018 sustainability efforts have focused on continuing to gain a better understanding of our energy consumption and carbon footprint. In addition to the environmental benefits, we believe our sustainability initiatives increase employee engagement and workplace satisfaction and 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.

This is the third year we have filed a sustainability report. In the first year, 2016, we performed a comprehensive materiality assessment to determine the most important environmental, social and governance (ESG) topics for ESCO. Our 2016 report outlined how we identified and engaged our most important internal and external stakeholders and analyzed the input we received to arrive at the 8 sustainability topics we identified as most critical for our businesses. Our 2016 report also included our first measure of energy usage and greenhouse emissions. This created a starting point from which to begin to measure and set goals for our ongoing performance. In 2017, we expanded our report to include a comprehensive discussion of the core actions, processes and practices that are ongoing under each of our 8 key topics. In 2017 we also highlighted our most recent successes and current initiatives in each of the 8 areas.

This year, 2018, our focus and priority was to streamline our data collection by automating the process. We licensed a software platform which collects the utility data directly from the service providers and provides benchmarking and other data analytics and tools. Our largest 31 sites are served by 54 different utility providers and 94 separate utility accounts. Inputting each account into the new software required extensive coordination and effort from each site. Going forward we will have trackable and comparable data from these utilities that we can use to understand our impact and pinpoint opportunities for greater efficiencies.

We believe that our investment in the software platform to measure, benchmark and manage our utility data and carbon emissions will enable us to further integrate sustainability into our ongoing business model. Using this information will not only create economies in data collection, but also will ensure accurate and consistent reporting of our carbon footprint information. We will be able to rely upon objective data based upon verifiable information. This will enable us to be more transparent with ourselves and our stakeholders.

In this report, we present our numbers and also include a short discussion under each of the 8 key topics of our successes and accomplishments since our last report. We believe we are making meaningful progress in better understanding and managing our impact on the environment and our local communities. Going forward, we will use the data analytics to better understand our usage as well as make comparisons over time and across our many locations, allowing us to set and achieve new goals.

With best regards on behalf of our team,

Vic Richey
Chairman, Chief Executive Officer & President


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