Dover Corporation - Climate Change 2022
(C0.1) Give a general description and introduction to your organization.
Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $8 billion. Dover delivers innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies.
The Company's core strengths of ownership, entrepreneurship, and accountability fuel our ability to deliver cutting edge products and solutions to our customers. Dover is headquartered in Downers Grove, Illinois and currently employs approximately 25,000 people worldwide.
Dover's five operating segments are as follows:
Engineered Products delivers industry-leading equipment, components and software serving the vehicle aftermarket, waste handling, industrial automation and aerospace & defense end markets.
Clean Energy & Fueling provides a comprehensive portfolio of safety and efficiency solutions for the convenience retail, fueling and clean energy, cryogenic gas and vehicle wash markets.
Imaging & Identification leads the design and manufacture of equipment, consumables and software, in addition to providing support services for the marking & coding, product traceability and authentication and digital textile printing markets.
Pumps & Process Solutions supplies performance-critical components and solutions for the safe handling of fluids across the chemical, bioproduction, hygienic, energy and diversified industrial markets.
Climate & Sustainability Technologies develops and supplies innovative and energy-efficient equipment and systems serving the commercial refrigeration, heating & cooling and beverage packaging equipment markets.
(C0.2) State the start and end date of the year for which you are reporting data.
Indicate if you are providing emissions data for past reporting
Select the number of past reporting years you will be providing emissions data
(C0.3) Select the countries/areas in which you operate.
United Kingdom of Great Britain and Northern Ireland
(C0.4) Select the currency used for all financial information disclosed throughout your response.
(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier for your organization
(C1.1) Is there board-level oversight of climate-related issues within your organization?
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Our Board of Directors (the "Board") provides oversight for the development and execution of our Environmental, Social, and Governance ("ESG") strategy and the incorporation of sustainability-
related risks and opportunities, including climate-related risks, into the Company's strategy and operations. Dover's CEO, who is a member of the Board, has management responsibility over ESG
issues, including those related to climate change. As part of its continued focus on sustainability, the Board identifies strategic objectives for our CEO that are related to sustainability and, in
discharging its oversight responsibilities, considers the Company's progress on ESG in evaluating our CEO's performance. In 2021, the CEO and the Board approved setting science-based targets
committing to reduce Dover's operational greenhouse gas emissions 30% and Dover's value chain emissions 15% by 2030 from a 2019 base year. Also during 2021, the Board reviewed the results
of the TCFD assessment and scenario analysis conducted in two workshops. The board approved Dover's 2021 acquisitions of Acme Cryogenics, Inc. ("Acme") and ECI Holding Company, LLC
("RegO"), both focused on clean energy solutions, exemplifying Dover's CEO and Board's strategic expansion of the Company's sustainable product offerings. Recognizing these acquisitions and
other changes to the Dover portfolio, the CEO, Board, and management made the decision to rename our Fueling Solutions segment to "Clean Energy & Fueling", and our Refrigeration & Food
Equipment segment to "Climate & Sustainability Technologies" to better reflect the markets and customers served by these businesses.
(C1.1b) Provide further details on the board's oversight of climate-related issues.
Our Board of Directors (the "Board") provides oversight for the development and execution of our Environmental, Social, and Governance ("ESG") strategy and the
incorporation of sustainability-related risks and opportunities, including climate-related risks, into the Company's strategy and operations. The Board's oversight spans a wide
array of ESG issues, including those related to climate change, health and safety, diversity and inclusion, ethics and compliance, and long-term environmental protection.
Directors receive periodic updates on company-wide energy and carbon performance against targets and are regularly briefed on each segment's operational performance
including productivity and safety performance. As part of its continued focus on sustainability, the Board identifies strategic objectives for our CEO that are related to
sustainability and, in discharging its oversight responsibilities, considers the Company's progress on ESG in evaluating our CEO's performance. The Board also has
established a comprehensive enterprise risk management process to identify and manage risks, including any risks related to environmental and social issues. In 2021, the
Board was kept abreast of all ESG disclosures and performance including the formalization of our commitment to science-based emissions targets by announcing a goal of
reducing scope 1 and scope 2 market-based GHG emissions of 30 percent by 2030 (from a 2019 baseline year) and reducing scope 3 GHG emissions of 15 percent by
2030 (from a 2019 baseline year. Furthermore, the Board was informed of Dover's climate risk assessment and scenario analysis aligned with the Task Force on Climate-
related Financial Disclosures ("TCFD") reporting framework and the publishing of a summary of the results; and the establishment of a working group with four of our largest
operating companies by emissions designed to embed sustainability considerations into product development.
(C1.1d) Does your organization have at least one board member with competence on climate-related issues?
Criteria used to assess competence of
Primary reason for no board-level
Explain why your organization does not have at least one board member with
board member(s) on climate-related
competence on climate-related issues and any plans to address board-level
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Name of the position(s) and/or
Frequency of reporting to the board on climate-related
Both assessing and managing climate-related risks and
Both assessing and managing climate-related risks and
(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).
Our CEO, who is a member of the Board, has management responsibility over ESG issues, including those related to climate change.
To help manage the ESG issues that impact our businesses, we established a cross-functional Sustainability Steering Committee comprised of Dover corporate, including its CEO, and operating company leaders to oversee our sustainability strategy, initiatives, target-setting, performance, and reporting. The Sustainability Steering Committee also considers water- and climate-related risks. The Sustainability Steering Committee aims to meet at least quarterly and provides an update to the Board at least annually. The Sustainability Steering Committee participated in a robust climate risk analysis this past year to understand climate-related risks and opportunities to Dover. The committee also established climate, employee health and safety, and diversity and inclusion goals. This past year, the cross-functional Sustainability Steering Committee helped track progress against the Company's Science-Based Targets, identifying opportunities for improved performance and improved tracking.
Our Senior Vice President, Operations is responsible for managing our processes for internal reporting of energy consumption and GHG emissions. Working with operational and financial representatives from Dover's operating companies, as well as the Sustainability Steering Committee and corporate stakeholders, the Senior Vice President, Operations also coordinates our action plan to achieve energy and greenhouse gas reductions across our facilities worldwide. This group leads the implementation of Dover's energy and greenhouse gas initiatives, monitors energy performance, and provides support, training, and tools for all of Dover's operating companies in pursuit of energy efficiency and carbon reduction.
Our Senior Vice President, General Counsel & Secretary is responsible for managing overall sustainability and ESG reporting and strategy for Dover. She chairs the Sustainability Steering Committee and oversees implementation of the sustainability strategy as set by the CEO and the Board and leads day-to-day action around sustainability disclosure, ESG performance, and governance.
Dover is committed to creating economic value for shareholders by developing products designed to help customers meet their sustainability goals in response to evolving regulatory and environmental standards. Dover believes that sustainability-driven innovation presents a significant growth opportunity while contributing positively to enhanced resource efficiency and reduced.
(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Provide incentives for the management of climate-related issues
(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
The effective oversight and management of ESG matters is one of the CEO's strategic objectives under our Annual Incentive Plan with a weighting of 16.67% for 2021. In 2021,
the specific actions included: successfully implementing the second year of a multi-year ESG strategic plan by further improving transparency and setting public facing goals on
ESG topics. Actions completed in 2021 to support these objectives included seeking shareholder feedback and considering other external perspectives; conducting a climate
risk assessment and scenario analysis aligned with the Task Force on Climate-related Financial Disclosures ("TCFD") reporting framework and publishing a summary of the
results; and establishing a working group with four of our largest operating companies by emissions designed to embed sustainability considerations into product development.
(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
(C2.1b) How does your organization define substantive financial or strategic impact on your business?
One way that Dover defines a substantive financial or strategic impact on our business when identifying and assessing climate-related risks is an event or trend that could drive a significant positive or negative change in our sales revenue, pre-tax earnings, market position, competitive landscape or product innovation. Examples include innovative new products that would meet significant customer needs, or a sustained downturn in a key market that would reduce demand for our products and services. We use a number of criteria to identify a substantive financial or strategic impact including an evaluation of the potential impact on our finances, operations, reputation, business strategy, and legal and regulatory compliance. We also assess the likelihood and severity of the impact, and our ability to implement controls to mitigate impact. Financial impact is based on a scale which ranks impact into five categories, from a "Low" impact event with a potential financial impact of $2 million to a "Critical" impact event with a potential financial impact of $10 million. Since climate-related risks are evaluated on a longer time horizon than other enterprise risks, this scale was used as a guide together with other factors for relative risk ranking of climate-related risks and opportunities. In the future, a climate-specific risk impact scale may be developed.
Additionally, risks that impact our ability to operate that may not meet the financial thresholds defined above may also be considered to be of substantive impact. For example, shut downs of manufacturing facilities due to extreme weather events.
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Dover Corporation published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 21:08:03 UTC.