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1、Emersons Environmental,Social and Governance progressSustainability Report2023 EMERSON SUSTAINABILITY REPORT 22023 EMERSON SUSTAINABILITY REPORT About This ReportEmersons 2023 Sustainability Report presents information focused primarily on data collected and activities that occurred during Emersons

2、fiscal 2023(October 1,2022 September 30,2023),and is reported based on 62,000 employees and 130 manufacturing locations,except where indicated otherwise.Some data and information in this report is as of the report release date,June 2024.The brands depicted in the presentation are the trademarks and

3、registered trademarks of their respective owners and are not owned by Emerson Electric Co.Portfolio management is an integral component of Emersons growth and value creation strategy.Over the past three years,the Company has taken significant actions to accelerate the transformation of its portfolio

4、 through the completion of strategic acquisitions and divestitures of non-core businesses.These actions were undertaken to create a higher growth and cohesive industrial technology portfolio as a global automation leader serving a diversified set of end markets.The Companys recent portfolio actions

5、include the following transactions:On October 11,2023,the Company completed the acquisition of National Instruments Corporation(“NI”).NI provides software-connected automated test and measurement systems that enable enterprises to bring products to market faster and at a lower cost.In the report,thi

6、s business will be referred to as Test&Measurement.On May 31,2023,the Company completed the previously announced sale of a majority stake in its Climate Technologies business to private equity funds managed by Blackstone.Emerson retains a 40 percent non-controlling common equity interest in a new st

7、andalone joint venture between Emerson and Blackstone.The Climate Technologies business includes the Copeland compressor business and the entire portfolio of products and services across all residential and commercial HVAC and refrigeration end-markets.The new standalone business is named Copeland.O

8、n October 31,2022,the Company completed the divestiture of its InSinkErator business,which manufactures food waste disposers,to Whirlpool Corporation.On May 31,2022,the Company completed the divestiture of its Therm-O-Disc sensing and protection technologies business to an affiliate of One Rock Capi

9、tal Partners,LLC.Certain data,statistics and metrics included in this report,including those related to greenhouse gas emissions,are estimates,have not been prepared in accordance with generally accepted accounting principles.Although this information is based on accepted methodologies and assumptio

10、ns believed to be reasonable at the time of preparation,they should not be considered as guarantees and may be subject to further revisions.The cover photo of this report was selected as part of the Emerson Sustainability Photo Contest.Emerson Employee Roxana-Maria Florea took this photo of Dragan D

11、am in Romania during the fall of 2023.ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGVALUE CREATION2023 EMERSON SUSTAINABILITY REPORT 32023 EMERSON SUSTAINABILITY REPORT About This ReportThe content of this report is informed by collaboration and engagement with various stakeholders and considers

12、frameworks and initiatives such as the United Nations Sustainable Development Goals,the Global Reporting Initiative(GRI)Standards,the Sustainability Accounting Standards Board(SASB)and the Task Force on Climate-Related Financial Disclosures(TCFD).In this report,we may use certain terms including tho

13、se that the GRI or other standards refer to as“material,”“substantive,”or“significant”to reflect the issues or priorities of that are important to us and our various stakeholders or topics or standards designated as such under the GRI or other applicable standards.These terms as used in this report

14、are not intended to be construed as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction,or as these terms are used in the context of financial statements and financial reporting.No part of this report constitu

15、tes,or shall be taken to constitute,an invitation or inducement to invest in us or any other entity and shall not be relied upon in any way in connection with any investment decisions.This report is not comprehensive and should be read in conjunction with our Annual Report on Form 10-K and our other

16、 SEC filings.Information on our website does not constitute part of this document.We expect to update this report annually.However,we undertake no obligation to update any statements herein to reflect later developments.Any questions or comments regarding this report can be directed to our:Chief Sus

17、tainability Officer 8000 West Florissant Avenue St.Louis,MO 63136+1-314-553-2000TREATMENT OF RECENT ACQUISITIONS AND DIVESTITURES IN THIS REPORT*BusinessDivest or AcquireFiscal Quarter of TransactionCompany,Business Description and Relevant Financials Narrative Social DataEnvironmental Sustainabilit

18、y DataCopelandDivest Majority OwnershipQ3 2023OutOutOutIn Scope 3 Category 15 InvestmentsNIAcquireQ1 2024InInOutOutAspenTechAcquire Majority OwnershipQ3 2022InInOutIn Scope 3 Category 15 InvestmentsFlexim AcquireQ4 2023InOutOutOutAFAGAcquireQ4 2023InOutOutOutInSinkEratorDivestQ1 2023OutOutOutOut*Exc

19、ludes any divested companies prior to fiscal 2023,but includes any bolt on acquisitions since fiscal 2022.ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGVALUE CREATIONNon-GAAP Financial MeasuresIn this report we provide non-GAAP measures to show our Companys performance,and the reconciliation of t

20、hose measures to the most comparable GAAP measures is contained in the Reporting Section of this report or available at our website,www.E,under Investors.These non-GAAP measures include results for the Companys segments on an underlying sales and adjusted segment EBITA basis and are intended to supp

21、lement the Companys results,including its segment earnings which are defined as earnings before interest and taxes.The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense,and restructuring and related expense.Underlying sales exclud

22、e the impact of currency translation and significant acquisitions and divestitures.Underlying sales and adjusted segment EBITA margin are measures used by management to evaluate the Companys segments performance and are useful in understanding our ongoing operations and ongoing operational trends.Th

23、ese measures should be considered in addition to,and not as a replacement for,the most comparable GAAP measure.2023 EMERSON SUSTAINABILITY REPORT 42023 EMERSON SUSTAINABILITY REPORT Safe Harbor StatementThis report contains various forward-looking statements and includes assumptions concerning Emers

24、ons operations,future results and prospects.You can identify forward-looking statements by the use of words such as“anticipate,”“estimate,”“expect,”“aim,”“project,”“intend,”“plan,”“believe,”“will,”“should,”“could,”“target,”“goal”,“forecast,”and other words and terms of similar meaning in connection

25、with any discussion of future operating,financial performance,or business plans or prospects.These forward-looking statements are based on current expectations and are subject to risks and uncertainties.Emerson undertakes no obligation to update any such statements to reflect later developments.In c

26、onnection with the“safe harbor”provisions of the Private Securities Litigation Reform Act of 1995,Emerson provides the following cautionary statements identifying important economic,political and technological factors,among others,changes in which could cause the actual results or events to differ m

27、aterially from those set forth in or implied by the forward-looking statements and related assumptions.Such factors include,but are not limited to,the following:(1)the current and future business environment,including capital and consumer spending,potential volatility of the end markets served,prici

28、ng,interest rates,inflation,and economic and currency conditions;(2)competitive factors and competitor responses to Emerson initiatives;(3)development and market introduction of anticipated new products;(4)the ability to defend and protect our intellectual property rights;(5)favorable environments f

29、or and execution of acquisitions and divestitures,domestic and foreign,including regulatory requirements and market values of candidates;(6)integration of acquisitions and separation of disposed businesses;(7)the availability of raw materials and purchased components;(8)stability of governments and

30、business conditions in countries where we operate which could result in adverse changes in exchange rates,changes in regulation,tariffs or trade barriers,nationalization of facilities or disruption of operations;(9)unrestricted access to capital markets;(10)our ability to attract,develop and retain

31、key personnel;(11)ability to prevent security breaches or disruptions of our information technology systems;(12)impact of potential product failures or similar events caused by product defects,cybersecurity incidents or other intentional acts;(13)Emersons ability to successfully complete on the term

32、s and conditions contemplated,and the financial impact of,the proposed National Instruments transaction;(14)changes in tax rates,laws or regulations and the resolution of tax disputes in U.S.and non-U.S.jurisdictions;(15)the impact of improper conduct by our employees,agents or business partners;(16

33、)the outcome of pending and future litigation,including environmental compliance;(17)availability of renewable energy on a commercially reasonable basis;and(18)the Russia-Ukraine conflict,among others that are set forth in Emersons most recent Annual Report on Form 10-K and subsequent reports filed

34、with the U.S.Securities and Exchange Commission.Statements in this report regarding our aspirational purpose,causes,values,and related commitments,goals or targets,including those regarding sustainability,greenhouse gas emissions,our net zero ambition and related goals,diversity,equity and inclusion

35、 or other initiatives,contain forward looking statements and are also intended to qualify for the protections of the“safe harbor”protections of the Private Securities Litigation Reform Act of 1995.Such statements are intended to help Emerson adapt and rise to the call of our various stakeholders and

36、 are not intended to create legal rights or obligations.Because success in these areas depends on the collective efforts of others and other factors such as competing economic and regulatory factors,technical advances,policy changes,labor markets,availability of candidates,and supplier and customer

37、engagement,there may be times where actual outcomes vary from those aimed for or expected.While we strive to live our purpose and make a positive impact on society while continuing to advance toward our commitments,sometimes challenges may delay or block progress and we cannot assure that the result

38、s reflected or implied by any such statements will be realized or achieved.ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGVALUE CREATION2023 EMERSON SUSTAINABILITY REPORT 52023 EMERSON SUSTAINABILITY REPORT Table of ContentsABOUT EMERSON 07 CEO Message08 Chair Message09 Company Profile10 Our Purpo

39、se11 Awards and Recognitions12 Report At-A-GlanceVALUE CREATION14 Built to Deliver on An Exciting Future16 What We Do19 The Critical Role of Automation21 Innovation and A Vision for Boundless Automation24 Emerson Management System25 Differentiated Financial TargetsENVIRONMENTAL SUSTAINABILITY27 Over

40、view31 Greening Of Emerson62 Greening By Emerson84 Greening With EmersonSOCIAL RESPONSIBILITY97 Overview98 Building a Culture of Empowerment100 Legacy of Innovation103 Challenging,Purposeful Work107 Diverse People,Working Together117 Limitless Growth129 Global and Local Impact 134 Workplace Safety G

41、OVERNANCE ANDACCOUNTABILITY142 Overview 143 Corporate Governance149 Integrity and Ethics154 Supply Chain168 Cybersecurity REPORTING 173 UN Sustainable Development Goals176 GRI Index189 SASB Index191 TCFD Index195 Sustainability Data203 Reconciliation Tables ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONRE

42、PORTINGVALUE CREATION2023 EMERSON SUSTAINABILITY REPORT 6Emerson Office in Cluj-Napoca,Romania Photo by:Alexandra Viorela Marginean|Emerson Employee2023 EMERSON SUSTAINABILITY REPORT AboutIN THIS SECTION:R CEO MessageR Chair MessageR Company ProfileR Our PurposeR Awards and RecognitionsR Report At-A

43、-GlanceThis section encapsulates who we are and the purpose and values that drive our business,laying out our commitment to driving progress in Environmental,Social and Governance matters and summarizing our performance,awards and recognitions.EmersonENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTING

44、Our PurposeCompany ProfileChair MessageCEO MessageAwardsReport At-A-GlanceVALUE CREATION2023 EMERSON SUSTAINABILITY REPORT 72023 EMERSON SUSTAINABILITY REPORT CEO MessageOver the past few years,we have been on a tremendous journey to transform Emerson,and we made great progress towards our goals in

45、2023.Our people are integral to this process,and I am inspired by the passion,determination and talent our team continues to display.We made several bold portfolio moves,including the acquisition of NI and the sale of Copeland,which further our position as a global leader in automation.Through these

46、 actions,we have built a cohesive portfolio that enables customers to navigate the full automation spectrum and aligns with the secular growth trends of digital transformation,sustainability and decarbonization,energy security and affordability and nearshoring.Advancing sustainability and driving va

47、lue for our customers and shareholders are closely aligned.Emersons customers rely on our technologies to better manage their operations,enhance productivity,reduce energy usage and emissions and improve safety and reliability.Our Emerson Management System has enabled strong operational execution,gr

48、owth,innovation and risk management throughout our transformation by focusing our leaders and employees time and resources.I would like to share a few highlights of the significant progress we made in fiscal year 2023 and through the date of this report:We procured 49%of electricity used by Emerson

49、locations from renewable sources,progressing toward our goal to source 100%of electricity from renewable sources by 2030.This,and a continued focus on energy efficiency and Scope 1 emission abatement strategies,has enabled us to reduce our Scope 1 and 2 greenhouse gas(GHG)emissions intensity by 52%s

50、ince 2021.We continue to report climate-related data proactively and transparently.Emerson voluntarily participates in the Carbon Disclosure Project(CDP)and maintained an A-score in 2023;additionally,we were included in the CDPs Supplier Engagement Leaderboard,which represents the top 8%of companies

51、 assessed for supplier engagement on climate change,for the second consecutive year.We built upon the Your Voice Counts culture initiative,our company-wide continuous listening strategy,with our first“pulse check”survey.More than 39,000 employees responded,and we saw increases across 75%of engagemen

52、t questions.We increased our representation in leadership for women globally and US minorities in 2023 by two and four percentage points,respectively,and were named a“Worlds Top Employer for Women”by Forbes.Our 2023 sustainability report illustrates how we plan to navigate the complex challenges in

53、business today,drive impactful solutions for decarbonization for customers and stakeholders and maintain our commitment to long-term value creation.We have a 134-year history of pioneering change through innovation and are excited for the opportunities ahead to continue to disrupt the state of autom

54、ation.Thank you for joining us as we go ahead to the boundless future of automation.Lal Karsanbhai President and Chief Executive OfficerENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOur PurposeCompany ProfileChair MessageAwardsReport At-A-GlanceVALUE CREATIONCEO Message2023 EMERSON SUSTAINABILITY

55、 REPORT 82023 EMERSON SUSTAINABILITY REPORT Chair Message2023 was a pivotal year for Emerson,and in the midst of continued global macroeconomic uncertainty,Emerson advanced its transformation and delivered on our strategy,including the sustainability initiatives highlighted in this report.Our Board

56、takes its role as stewards of Emersons sustainability goals seriously and continues to oversee the management team in their efforts to further Emersons sustainability programs.I am proud of the work Emersons management team has accomplished,driving significant progress on their commitments.Emerson,w

57、ith its transformed portfolio,people and technology,is well positioned to benefit from powerful secular trends including sustainability and decarbonization and support customers in their energy transition.The Board remains committed to ongoing refreshment to ensure we continue to have the right mix

58、of skills,diversity,background and tenure,including to oversee our sustainability efforts.We have added seven new Directors over the past five years with a Board that will be composed of 50%women or people of color and a broader set of industry knowledge and expertise.We recently appointed Calvin Bu

59、tler,President and Chief Executive Officer of Exelon,to our Board,effective August 1,2024.In addition to business transformation experience,he brings significant expertise in reliable,clean and affordable energy solutions that will advance our leadership position in the energy transition markets.We

60、look forward to helping guide the management team to lead our company and help our customers move towards a brighter and more sustainable future.James Turley Chair,Emerson Board of DirectorsENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOur PurposeCompany ProfileCEO MessageAwardsReport At-A-Glance

61、VALUE CREATIONChair MessageEMR NYSE39%Americas35%Asia,Middle Eastand Africa26%Europe38%Americas27%Asia,Middle Eastand Africa35%Europe74,000employees130 locationsmanufacturing 1890FoundedHeadquartersGeographic distributionGeographic distribution18,100active patentsSt.LouisMO,USA67years of increaseddi

62、vidends2023 EMERSON SUSTAINABILITY REPORT 92023 EMERSON SUSTAINABILITY REPORT Emerson At-A-GlanceCOMPANY PROFILEEmerson is a global leader in automation software and technology.We partner with customers in critical industries like energy,chemical,power and renewables,life sciences and factory automa

63、tion to help them operate more sustainably while improving productivity,energy security and reliability.ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOur PurposeChair MessageCEO MessageAwardsReport At-A-GlanceVALUE CREATIONCompany Profile*The data/information on this page is current as of June 20

64、24.2023 EMERSON SUSTAINABILITY REPORT 102023 EMERSON SUSTAINABILITY REPORT PLANETHUMANITYHUMANITYCHAMPIONINCLUSIONFUTUREEmerson is uniquely positioned to bring innovation,enabling technology and domain expertise that supports essential industries that we all depend on in our daily lives.Our Purpose

65、reflects the important role and impact we can deliver.It is also the rallying cry to our employees to be forward thinking,collaborative,committed and excel in all we do to support our stakeholders,communities and the world.Our Causes and Values are the driving forces behind our Purpose,and serve as

66、the foundation for how we make decisions,act and collaborate.They inform our direction as an organization,reflect our culture and establish the foundation of how we engage and lead in the world.Our PurposeWe drive innovation that makes the world healthier,safer,smarter and more sustainable.Our Cause

67、sWe deliver sustainable solutions that improve efficiency,reduce emissions and conserve resources.We lead our customers through complex technical,regulatory and economic challenges.We promote STEM education and programs that prepare the next generation of critical thinkers and problem solvers.We cul

68、tivate an environment based on trust and support.We strive to advance health,comfort,food quality and safety.Integrity We are uncompromising in our honest and ethical behavior,which creates trusting relationships with one another,customers,suppliers and communities.Safety&Quality We are unwavering i

69、n our commitment to the highest standards of safety and quality for ourselves and our customers.Support our People We attract,develop and retain exceptional people in an inclusive work environment,where all employees can reach their greatest potential.Customer Focus We actively listen to our custome

70、rs to deeply understand their needs and deliver the unique solutions that ensure their success.Continuous Improvement We constantly strive for improvement in all aspects of our business,guided by metrics,feedback and our disciplined management process.Collaboration We work seamlessly across geograph

71、ies and functions to fully leverage our breadth and expertise.Innovation We passionately pursue new technologies,capabilities and approaches to drive tangible value for our customers.OUR VALUESENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGCompany ProfileChair MessageCEO MessageAwardsReport At-A-G

72、lanceVALUE CREATIONOur Purpose2023 EMERSON SUSTAINABILITY REPORT 112023 EMERSON SUSTAINABILITY REPORT Emerson is taking bold action to deliver progress toward our sustainability goals,such as our 2045 net zero value chain and 2030 net zero operations emission targets,as well as our 2030 diversity ta

73、rgets.While there remains progress to be made,the intentional focus on specific topics across our teams worldwide is evident in our improved performance,as demonstrated by recognitions and awards from some of the leading organizations around the globe.Awards and Recognitions2023 Readers Choice,Top 5

74、0 Employer,ranked#222023 Industrial IoT Company of the Year(Emerson is a five-time recipient)Among the top 8%assessed for supplier engagement on climate change2023 Readers Choice,Top 50 Employer,ranked#15Placed first in 30+categories across the 2023 CONTROL Global Readers Choice AwardsAwarded a Silv

75、er EcoVadis ratingEcoVadis Carbon Management LeaderRated A-by CDP on climate change leadership2023 Readers Choice,Top 50 Employer,ranked#412023 Americas Most Innovative Companies,ranked#33 of 300 companiesAward for a second year distinguishing corporate energy management programs 2023 Americas Most

76、Responsible Companies,ranked#143;(Emerson has been ranked four consecutive years)Americas Best Employers for Women,ranked#205 of 400 companies2023 Americas Best Large Employers,ranked#192 Worlds Top Employers for Women,ranked#269 of 400 companies2023FORTUNEMagazineNewsweekMagazineForbesMagazine2023F

77、ORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazineFORTUNEMagazineNewsw

78、eekMagazineForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazineFORTUNEMagazineNewsweekMagazineForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazineFO

79、RTUNEMagazineNewsweekMagazineForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023Newswe

80、ekMagazine2023ForbesMagazineFORTUNEMagazineNewsweekMagazineForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazine2023FORTUNEMagazine2023NewsweekMagazine2023ForbesMagazineENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOur PurposeCompany ProfileChair MessageCEO MessageReport At-A-Gl

81、anceVALUE CREATIONAwards2023 EMERSON SUSTAINABILITY REPORT 122023 EMERSON SUSTAINABILITY REPORT ENVIRONMENTNet Zero Value Chain emissions by 2045 from a 2021 baseline.Net Zero Operations by 2030 from a 2021 baseline.Near-term and Net Zero targets have been approved by the Science Based Targets initi

82、ative.Reduced Scope 1 and 2 GHG emissions intensity by 52%since 2021.Reached 49%of electricity procured from renewable sources at Emerson locations worldwide.Achieved a 41%reduction in energy intensity from 2018,surpassing the 25%reduction target in advance of 2030.Report At-A-GlanceSOCIAL40%of glob

83、al leadership targeted to be women by 2030.30%of U.S.leadership targeted to be minorities by 2030.8 Employee Resource Groups with over 13,000 members.Company-wide continuous listening strategy with 85%employee participation and an employee engagement score of 78%.Implemented company-wide wellbeing p

84、rograms and policies.$200M pledged to address education equity over 10 years.Goal to continuously work toward zero recordable injuries.A 36%reduction in first aid cases and a 23%reduction in recordable injuries compared to FY2022.Nick Piazza appointed Chief People Officer,August 2023.GOVERNANCE50%of

85、 Directors are women or persons of color.*of required Board Committees are chaired by women.The Board added 7 new Directors in the last five years,underscoring the Emerson Boards commitment to ongoing refreshment.*Achieved CDP Supplier Engagement Leader status for a second year.Key elements of our p

86、rimary data centers,cloud environments and our enterprise IT organization are certified under ISO 27001.Michael Tang appointed Chief Legal Officer,January 2024.ENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOur PurposeCompany ProfileChair MessageCEO MessageAwardsVALUE CREATIONReport At-A-Glance*De

87、picts data/information effective August 20242023 EMERSON SUSTAINABILITY REPORT 132023 EMERSON SUSTAINABILITY REPORT ValueIN THIS SECTION:R An Exciting FutureR What We DoR The Critical Role of AutomationR InnovationR Emerson Management SystemR Financial TargetsEmersons transformation into a focused a

88、utomation leader offers exciting opportunities to accelerate value for all stakeholders.This section provides details on our strategy,the role of automation in essential industries,innovation and growth,and continued operational excellence delivered through our Emerson Management System.CreationVALU

89、E CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationWhat We DoAn Exciting FutureManagement SystemFinancial Targets2023 EMERSON SUSTAINABILITY REPORT 142023 EMERSON SUSTAINABILITY REPORT Portfolio Transformation ActionsOur large portfolio transformation moves are su

90、bstantially complete.In October 2022,we completed the sale of InSinkErator,a long-term Emerson business focused on kitchen-based waste disposal and water products,to Whirlpool Corporation.We followed this with the sale of a majority stake in our Climate Technologies business to Blackstone,in May of

91、2023,now named Copeland.On the addition side,we completed a landmark transaction with AspenTech in May 2022,acquiring a majority ownership stake in one of the premier industrial software companies.Emerson,together with AspenTech,has one of the industrys most comprehensive portfolios of advanced auto

92、mation technologies and software serving essential industries.In October 2023,Emerson completed the acquisition of NI,a provider of software-connected automated test and measurement systems that enable enterprises to conduct and bring important innovation to market faster and at a lower cost.Emerson

93、 also completed the acquisition of two smaller companies with very relevant technology.In August 2023,Emerson acquired Flexim,a global leader in clamp-on ultrasonic flow measurement for liquids,gases and steam.The combination of Emersons comprehensive measurement suite and Flexims innovative technol

94、ogy will enhance the value we bring to customers across a variety of industries.Flexim is reported in our Measurement&Analytical business segment.In September 2023,Emerson also acquired Afag,a technology leader in electric linear motion solutions that is complementary to the motion products in our D

95、iscrete Automation business.Afag serves customers in attractive,growing end segments including battery manufacturing,automotive,packaging,medical,life sciences and electronics.Afag is reported in our Discrete Automation business segment.Built to Deliver on an Exciting FutureThe work at Emerson is bu

96、sy and rewarding.We delivered a strong set of operating results in fiscal 2023.We made significant progress in our sustainability and human capital management efforts.And at the same time,the organization,together with our Board of Directors,made substantial progress over the past three years with a

97、 comprehensive portfolio transformation of Emerson becoming a focused,cohesive global automation leader.This report provides information on the Emerson business we owned and operated through the 2023 fiscal year and,where indicated,incorporates updates on progress made as of June 2024.We are proud o

98、f our organization and the impact we make on the world.The people at Emerson,no matter the job function or strategic initiative,bring a high level of passion,integrity,creativity and professionalism to what they do.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of Auto

99、mationWhat We DoManagement SystemFinancial TargetsAn Exciting Future2023 EMERSON SUSTAINABILITY REPORT 152023 EMERSON SUSTAINABILITY REPORT Built to Deliver on an Exciting FuturePeople at the Heart of Everything We Do at EmersonEmersons portfolio of technologies is critical to delivering value in a

100、wide set of essential industries.But the true power of what Emerson has to deliver is in our people and the expertise that we bring to our customers everyday.Emerson operates a global organization with design engineering,procurement,manufacturing,project engineering,service and sales activities.Emer

101、son employees work very closely with customers to innovate,apply technologies and support their critical operations.We are fortunate that people choose to make long careers at Emerson,have developed deep domain knowledge and serve as important experts and stewards for automation and the industries t

102、hat we serve.We are intently focused on building an inclusive culture and making sure we have an exceptional team empowered to deliver on value creation for our customers and shareholders.We have assembled an incredible portfolio and are focused on innovation that matters for our customers and the i

103、mportant industries that we serve for the years ahead.Finally,we have a legacy of demonstrating operational excellence in a complex global environment and are focused on continuing to deliver value for our stakeholders.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of

104、AutomationWhat We DoManagement SystemFinancial TargetsAn Exciting Future21%EnergyEndMarket17%Discrete9%Power&Renewables17%General Industries 16%Others8%Hybrid12%Chemical2023 EMERSON SUSTAINABILITY REPORT 162023 EMERSON SUSTAINABILITY REPORT We are often involved early in the design and conception of

105、 new greenfield facilities to provide expertise on the best digitalization strategies and to support the project implementation process.Once operations are established,we provide local support,service and replacement products to help customers make sure their facilities keep running.In many of the i

106、ndustries we serve,customers will replace and enhance their automation assets during pre-planned shutdown events,for which we frequently provide support on planning and implementation.We also support our customers when unplanned events occur.Finally,we provide add-on software and hardware automation

107、 technology options such as our suite of wireless instrumentation products and our AspenTech optimization software offerings that can create additional value in existing facilities.Emersons installed base is estimated at$150 billion,and greater than 60%of our automation revenue in 2023 came from sup

108、porting these existing installations.What We DoEmersons complete automation portfolio includes advanced intelligent devices,control systems and design and optimization software solutions to support a diverse set of industries and infrastructure that are essential to daily life.Customers rely on Emer

109、son technologies to manage and automate operations better,increase productivity,reduce energy usage and emissions,improve safety and enhance reliability.A typical Emerson customer manages long-lived plants that can operate continuously for decades.Our worldwide operational footprint provides a high

110、level of responsiveness and intimacy with customers throughout the lifecycle of their facilities.IMPORTANT FACTS ABOUT OUR BUSINESS*Sustainability Enabling Technologies are defined as Emersons technologies which are capable of being utilized for sustainability enabling activities.Neutral technologie

111、s such as services,enclosures,mechanical devices and products or services purchased from a third party but included in the overall sale are excluded from sustainability enabling technologies as they do not have a direct enabling impact.Emersons definition of sustainability enabling technologies is n

112、ot intended to and does not align to any governmental or other third-party taxonomy or framework.of our sales are related to maintenance and replacement of installed base in 202360%of 2023 sales from software13%of installed base in customer facilities$150 billionof Emerson sales are tied to sustaina

113、bility enabling technologies*70%POST-ACQUISITIONS END MARKETS Note:End market numbers represent post-acquisition 2023 Emerson including Test&Measurement.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationAn Exciting FutureManagement SystemFinancial TargetsWhat

114、 We Do2023 EMERSON SUSTAINABILITY REPORT 172023 EMERSON SUSTAINABILITY REPORT What We DoControl Systems&SoftwareControl Systems&Software control plant processes by collecting and analyzing information from measurement devices in the plant.These technologies determine optimal settings with software b

115、ased on a customers specific algorithms and use that information to adjust valves,pumps,motors,drives and other control hardware for maximum product quality,process efficiency,sustainability and safety.AspenTech*AspenTech specializes in asset optimization software that enables industrial manufacture

116、rs to design,operate and maintain their operations for maximum performance.It combines decades of modeling,simulation and optimization capabilities with industrial operations expertise and applies advanced analytics to improve the profitability and sustainability of production assets.Test&Measuremen

117、t*Emerson completed the acquisition of NI on October 11,2023.This business will be referred to as the Test&Measurement segment going forward.It provides software-connected automated test and measurement systems that enable enterprises to bring products to market faster and at a lower cost.Important

118、markets for this segment include semiconductor,transportation,aerospace and research institutions.The Test&Measurement business spans the full range of customer needs including modular instrumentation,data acquisition and control solutions and general-purpose development software.Our Reported Busine

119、ss Segments Software&Control*Emerson is a majority owner of AspenTech,which is publicly traded on NASDAQ:AZPN*As reported,based on 2023 Emerson fiscal year basis.2023 Revenue:$2.6 Billion2023 Revenue:$1.0 Billion2023 Revenue:$1.7 Billion2023 Underlying Sales Growth:11%2023 Underlying Sales Growth:(1

120、%)2023 Adjusted Segment EBITA Margin:21.5%2023 Adjusted Segment EBITA Margin:36.4%2023 Adjusted Segment EBITA Margin:21.2%Process Hybrid DiscreteProcess Hybrid DiscreteProcess Hybrid DiscreteIndustries ServedIndustries ServedIndustries Served2023 Underlying Sales Growth:N/AVALUE CREATIONENVIRONMENTS

121、OCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationAn Exciting FutureManagement SystemFinancial TargetsWhat We Do2023 EMERSON SUSTAINABILITY REPORT 182023 EMERSON SUSTAINABILITY REPORT What We DoMeasurement&AnalyticalEmersons Measurement&Analytical business is a leading supplier of int

122、elligent instrumentation measuring the physical properties of liquids or gases,such as pressure,temperature,level,flow,acoustics,corrosion,pH,conductivity,water quality,toxic gases and flame.These devices transfer data and asset management information to control systems and automation software,allow

123、ing process and hybrid industry operators to make educated decisions regarding production,reliability,sustainability and safety.Final ControlOur Final Control business is a global provider of control valves,isolation valves,shutoff valves,pressure relief valves,pressure safety valves,actuators and r

124、egulators for process and hybrid industries.These solutions respond to commands from a control system to continuously and precisely control and regulate the flow of liquids or gases to achieve safe operation along with reliability,sustainability and optimized performance.Safety&ProductivityEmersons

125、Safety&Productivity business delivers tools for professionals that support important infrastructure,promote safety and enhance productivity.Pipe-working tools include pipe wrenches and cutters,pipe threading and roll grooving equipment,battery hydraulic tools for press connections,drain cleaners and

126、 diagnostic systems,including sewer inspection cameras and locating equipment.Electrical tools include conduit benders and cable pulling equipment,battery hydraulic tools for cutting and crimping electrical cable and hole-making equipment.Discrete AutomationOur Discrete Automation business designs s

127、olenoid valves,pneumatic valves,valve position indicators,pneumatic cylinders and actuators,air preparation equipment,pressure and temperature switches,electric linear motion solutions,programmable automation control systems and software,electrical distribution equipment and materials joining soluti

128、ons used primarily in discrete industries.Our Reported Business Segments Intelligent Devices2023 Revenue:$2.6 Billion2023 Underlying Sales Growth:3%2023 Adjusted Segment EBITA Margin:21.4%Process Hybrid Discrete2023 Revenue:$3.6 Billion2023 Underlying Sales Growth:16%2023 Adjusted Segment EBITA Marg

129、in:27.1%Process Hybrid DiscreteIndustries ServedIndustries Served2023 Revenue:$1.4 Billion2023 Underlying Sales Growth:(1%)2023 Adjusted Segment EBITA Margin:23.9%Process Hybrid DiscreteIndustries Served2023 Revenue:$4.0 Billion2023 Underlying Sales Growth:13%2023 Adjusted Segment EBITA Margin:24.7%

130、Process Hybrid DiscreteIndustries ServedVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationAn Exciting FutureManagement SystemFinancial TargetsWhat We Do2023 EMERSON SUSTAINABILITY REPORT 192023 EMERSON SUSTAINABILITY REPORT Our intelligent devices sense and m

131、easure critical variables such as pressure,temperature,flow rate,analytical properties,density and level to support the SEE function.These variables are then communicated to a control system,which is constantly evaluating inputs and judging how to best adjust processes in real time,serving as the DE

132、CIDE function.The control system then sends signals to intelligent actuators and valve elements to make physical adjustments to the process,fulfilling the ACT function.Software technologies like those in AspenTechs portfolio utilize data provided by intelligent devices and control systems to analyze

133、 trends over time,simulate potential enhancements and offer options for incorporation into the control system logic as part of the OPTIMIZE function.Emerson has established global leadership in each of the intelligent device,control system and software functions and serves as a steward and thought l

134、eader in the future direction of automation in the diverse industries we support.Automation serves as the digital backbone and nerve center for our customers critical operations.Leveraging significant accumulated domain knowledge,automation provides important insights into what is happening in the c

135、ustomers process and provides the levers for enhancing product quality,yield,efficiency,reliability,uptime,energy efficiency,emissions intensity,regulatory reporting,asset integrity and personnel safety.The Critical Role of AutomationOne of Emersons unique attributes is the global leadership positio

136、ns established across our advanced intelligent devices,control systems and design and optimization software solutions businesses.Our technology portfolio supports the foundational functions of automation through its complete cycle:See-Decide-Act-Optimize.COMPLETE AUTOMATION OFFERINGDECIDEOPTIMIZEACT

137、SEEModeling&AIPowered Analytics forperformance optimizationAutomation Systemsfor intuitive and automated decisionsPrecision Control to ensure safe,responsive operationsSensing&Measurementto optimize insightand decision makingVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationWh

138、at We DoAn Exciting FutureManagement SystemFinancial TargetsRole of Automation2023 EMERSON SUSTAINABILITY REPORT 202023 EMERSON SUSTAINABILITY REPORT Global Macroeconomic Trends and Organic Growth DriversWe have identified several global macroeconomic trends that we anticipate will drive Emerson opp

139、ortunities going forward.Digital transformation remains a key theme in the industrial world where technological advancements provide new value creation opportunities for safety,efficiency and productivity.Sustainability and decarbonization are critical drivers in a world that is rapidly embracing an

140、d deploying solutions to meet global net zero goals by 2050.Energy security and affordability remain important themes as the energy transition process takes place,given its importance in supporting economies and livelihoods around the world.And finally,we are supporting regionalization and nearshori

141、ng to provide resilience and self-sufficiency across a wide set of critical industries and value chains.Intentionally providing more focused exposure to these global macro trends is at the center of Emersons organic growth plan,and at the heart of our innovation focus as we consider the most impactf

142、ul value we can create for the industries we serve.We believe Energy Transition,Industrial Software and Priority Hybrid and Discrete Markets are three growth platforms that will create superior market-based growth and expand specific opportunities for Emerson in both the near-term and long-term.Ener

143、gy TransitionMuch of the worlds energy systems are undergoing comprehensive change with a focus on substantially reducing carbon dioxide emissions.Over time,we are seeing a significant increase in the deployment of renewable energy,hydrogen,carbon capture,biofuels and biogas from waste,resource circ

144、ularity,electrification and smart grid management.Emersons automation portfolio serves as the digital backbone and is strongly aligned with these global sustainability imperatives,and actively supports each of these critical energy transition solutions.These energy transition solutions are expected

145、to provide an opportunity to grow Emersons future relevance and impact.Industrial SoftwareIt is our belief that automation will become increasingly more software centric over time.Building additional strength and depth in AspenTech and Emerson software will become increasingly important for enhancin

146、g the impact of automation.Priority Discrete and Hybrid MarketsEmerson has a well-established leadership position in process-related industries.We have a strong presence in hybrid and discrete-related industries such as life sciences,metals and mining and factory automation,but have room to expand o

147、ur exposure through intentional innovation actions,complete floor to cloud value-creating solutions and targeted portfolio moves.The Critical Role of AutomationDigitalTransformationEnergy Security&AffordabilitySustainability&DecarbonizationNearshoringGLOBAL MACROECONOMIC TRENDSVALUE CREATIONENVIRONM

148、ENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationWhat We DoAn Exciting FutureManagement SystemFinancial TargetsRole of Automation2023 EMERSON SUSTAINABILITY REPORT 212023 EMERSON SUSTAINABILITY REPORT Emerson has brought forward many important industry innovations over time including development a

149、nd contribution of intellectual property to HARTTM,WirelessHARTTM and FOUNDATIONTM Fieldbus networking protocols that are widely used across the world.We were also one of the first companies to move away from custom designed computing platforms and instead significantly leverage and adapt widely ava

150、ilable commercial information technologies with the creation of the DeltaV distributed control system.The DeltaV and Ovation control systems have continued to break new ground with capabilities related to better project implementation,adaptability to manage late design changes in large projects,buil

151、t-in cybersecurity architecture and development of a wide set of software applications including simulation,asset management,planning and training.NI transformed the test industry by pioneering a revolutionary software-driven modular hardware architecture to provide new levels of flexibility.Emerson

152、 innovation has also extended to the field device layer with extensive sensing technology developments.These include specialized final control capabilities to perform in very challenging conditions,high-performance discrete automation control and sensing devices,and battery powered professional tool

153、s to support the build-out of important molecule and electron infrastructure.Our recently acquired Test&Measurement business has been a leader in the test automation space where its LabVIEWTM software serves as the backbone for electrical testing in many industries worldwide.As we look ahead,we are

154、excited for what is possible to advance the state of automation and create even more valuable insight,control,software and data management capabilities for our customers.We are focused on four important technology spaces.The first is DISRUPTIVE MEASUREMENT TECHNOLOGIES to bring more insight to what

155、is happening in our customers manufacturing processes.We also consider the best ways to bring these capabilities to the environments of our customers and how they can be added in existing operations.SOFTWARE-DEFINED AUTOMATION SYSTEMS is our second focus area.Changes in computing power,software cont

156、ainerization and the evolution of more capable edge computing capabilities provide opportunities to drive further value with software that can operate at various levels of an automation architecture.A related third area is SELF-OPTIMIZING ASSET SOFTWARE which can continuously leverage the knowledge

157、across the operating assets in a facility to infer the health of these assets and help predict when maintenance intervention might be required.The final area focuses on SUSTAINABILITY TECHNOLOGY solutions that help customers address optimal performance and sustainable operations.These innovations fo

158、cus on the energy transition,use of more sustainable materials and the importance of advancing infrastructure capabilities to support the evolution of renewable power and storage installations,support the full hydrogen ecosystem from production to transport to use,emissions management and carbon cap

159、ture,the battery value chain and the enablement of circularity capabilities.Innovation and a Vision for Boundless AutomationInnovation is fundamental to everything we do at Emerson.We work closely with customers to help advance the state of automation and value creation across a wide range of proces

160、s,hybrid and discrete industries.Given our customers design and operate long-lived facilities and expect Emerson to help keep these facilities running over time,our innovation process is focused on bringing additional value to both existing installations and new greenfield operations.Disruptive Meas

161、urement TechnologiesSoftware-Defined Automation SystemsSelf-Optimizing Asset SoftwareSustainabilityINNOVATION PRIORITIESVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGRole of AutomationWhat We DoAn Exciting FutureManagement SystemFinancial TargetsInnovationUNIFYING DATA FABRICINTELLI

162、GENTFIELDEDGECLOUDBoundlessAutomation2023 EMERSON SUSTAINABILITY REPORT 222023 EMERSON SUSTAINABILITY REPORT Innovation and a Vision for Boundless AutomationA Vision for Boundless Automation These technologies and others enable Emersons recently introduced Boundless Automation vision for how automat

163、ion will continue to extensively evolve and incorporate a number of important advancements to make data systems more flexible,more unified and more inherently secure.As we consider what will be possible with cloud computing,edge computing and software capabilities,as well as intelligent devices,soft

164、ware,diagnostics and communications capabilities in the field,there will be opportunities to move beyond the siloed system architectures of the past to a future where data and insight more readily moves to where it is needed.In various parts of our customers organizations,more powerful data analytic

165、s can span not just one location,but across a fleet of locations,with more involved simulation and modeling capabilities leveraging artificial intelligence technologies that can further enhance operational excellence.We are introducing new features in our products now that support our vision for Bou

166、ndless Automation,and there will be many more capabilities in the years to come.Advancing the world of automation requires a significant amount of domain knowledge across the industries we serve.It will also require significant collaboration with customers and other technology providers.It is our vi

167、ew that Emersons customers will create more value of their own as software features are made more granular and can be flexibly placed at whatever level of the cloud,edge,or intelligent field makes the most sense for a given application.In fiscal 2023,Emersons innovation spend was 7%of sales.With the

168、 more intentional focus on our innovation pace and the inclusion of the test and measurement business in 2024,we expect this level will increase.Emerson spent approximately 7%of sales on innovation in fiscal 2023VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGRole of AutomationWhat We

169、 DoAn Exciting FutureManagement SystemFinancial TargetsInnovation2023 EMERSON SUSTAINABILITY REPORT 232023 EMERSON SUSTAINABILITY REPORT Innovation and a Vision for Boundless AutomationEmerson Ventures Expands Our Innovation FocusSince launching the Emerson Ventures program in 2021,we have continued

170、 to make investments in early-stage technology companies of high strategic relevance to our businesses and served markets.Our focus areas include disruptive discrete automation technologies,industrial software,environmental sustainability solutions and associated enabling technologies like AI,cybers

171、ecurity,wireless and edge computing.Currently,we have nine companies in the Emerson Ventures portfolio,including three new companies added in the past year.These new companies are focused in the areas of manufacturing management software,AI-based fuel and CO2 savings technology for shipping and veri

172、fication and validation for automated systems.In the past year,we also deepened our commitment and partnership with an existing portfolio company in the edge computing orchestration and virtualization space via a second investment.In 2021,we committed to investing$100M in Emerson Ventures.For More I

173、nformation please refer toEmerson Venture Capital Investments webpage.E EVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGRole of AutomationWhat We DoAn Exciting FutureManagement SystemFinancial TargetsInnovation2023 EMERSON SUSTAINABILITY REPORT 242023 EMERSON SUSTAINABILITY REPORT Th

174、ere are six central elements of the Emerson Management System.The first element is INNOVATION,which involves developing key technologies to unlock more organic growth and value creation.This is coupled with COMMERCIAL EXCELLENCE,building on our ability to address customer needs,leverage our installe

175、d base and drive enhanced customer intimacy and impact.The third element is OPERATIONAL EXECUTION,which maintains a strong focus on operational and supply chain excellence,leveraging Emersons tremendous footprint and scale.The fourth element is a WORLD-CLASS MERGERS AND ACQUISITIONS(M&A)process,maxi

176、mizing value through disciplined portfolio management and integration activities.While these four elements form a strong nucleus of capabilities,we believe there are two additional elements that are essential to a complete system approach.Our MANAGEMENT PROCESS,which includes the cadence of how and

177、when we interact through meetings and business updates enhances efficiency and agility in decision making.The final element is driving a modern CULTURE and empowering our teams to achieve results.We believe the Emerson Management System is the key to delivering value creation.Emerson has established

178、 well-acknowledged operational capabilities across the world.Our teams have experience managing all relevant phases of the global economy and utilize some of the best toolkits to understand,plan and maximize agility and value creation.Over time,we have regionalized our operational and supply chain f

179、ootprint to provide responsiveness to customers while supporting a focus on best cost and resiliency.Our process is integral to driving top-quartile performance within our global business operations.The execution of short-range plans is reviewed quarterly,and medium-range and long-range plans are re

180、viewed annually.The cadence of review balances delivery of near-term goals with planning for continuous operational improvement.Established tools and analytics provide comprehensive visibility into plans and execution performance.Operating margin improvements have reflected this process over the pas

181、t three years with achievement of cost reset targets.Throughout the process of transforming our portfolio,we have remained focused on right-sizing all functional areas and leveraging the enterprise through shared services and overhead management.We are also increasing our focus and investment in aut

182、omation and efficiency in our own manufacturing operations,as well as enhancing the value of our facilities footprint.Emerson Management SystemAs we have transitioned to a more cohesive automation company,we have taken the opportunity to evolve the Emerson management process.Our prior management pro

183、cess was designed for a time with more disparate operating units.We have updated our current Emerson Management System to be comprehensive and focused on the enterprise as a cohesive entity,dedicated to operational execution and enhanced growth,efficient use of leadership time and resources,and a mo

184、re balanced approach to innovation and risk management.INNOVATIONCOMMERCIALEXCELLENCEWORLD CLASSM&AOPERATIONALEXECUTIONMANAGEMENT PROCESSCULTUREVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationWhat We DoAn Exciting FutureFinancial TargetsManagement SystemFor

185、 More Information please refer toEmerson Investor Relations webpage.E E2023 EMERSON SUSTAINABILITY REPORT 252023 EMERSON SUSTAINABILITY REPORT VALUE CREATION FINANCIAL FRAMEWORKthrough-the-cycle organic growth47%incremental margins*35%adjusted EPS growthDouble-digit Free cash flow margins of 1518%Di

186、fferentiated Financial TargetsEmerson adheres to a clear,specific framework of financial targets to create significant value and differentiate the company.Our goal is to deliver a through-the-cycle organic growth rate of 47%,with our ability to deliver this having been further enhanced with our port

187、folio transformation and intentional exposure to important global macroeconomic trends.We are committed to delivering on approximately 35%incremental profit margins and double-digit adjusted earnings per share(EPS)growth.We are also focused on driving free cash flow margins in the 1518%range and lev

188、eraging a disciplined capital allocation framework.Emerson recognizes the importance of performing for a diverse range of stakeholders,including shareholders,employees,customers,partners,governments and communities.In addition to our financial targets,delivering on the strategies outlined in this re

189、port are also important to advancing the needs of these stakeholders,fulfilling our purpose and growing as a more sustainable company.*Incremental margins is defined as the ratio of the change in adjusted segment EBITA for the current period less the prior period,divided by the change in the net sal

190、es for the current period less the prior period.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGInnovationRole of AutomationWhat We DoAn Exciting FutureManagement SystemFinancial TargetsEnvironmental 2023 EMERSON SUSTAINABILITY REPORT 262023 EMERSON SUSTAINABILITY REPORT IN THIS SECTI

191、ON:R OverviewR Greening Of EmersonR Greening By EmersonR Greening With EmersonEnvironmental sustainability is a business imperative for Emerson and our value chain partners,from suppliers and customers to employees and communities.This section provides key insights into the progress made in advancin

192、g our sustainability strategy and supporting that of our suppliers and customers.SustainabilityVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMERSON SUSTAINABILITY REPORT 272023 EMERSON SUSTAINABILITY REPORT Env

193、ironmental Sustainability Highlights1552%100%49%56%4%GREENING OF EMERSONNet Zero Operations by 2030 from 2021 baseline.reduction in Scope 1 and 2 emissions intensity since 2021.Named ENERGY STAR Partner of the Year for a second year.Achieve renewable electricity sourcing by 2030.of electricity procu

194、red from renewable sources at Emerson locations worldwide.Net Zero Value Chain by 2045 from 2021 baseline.reduction in Scope 3 emissions since 2021.*Zero Waste to Landfill by 2032 from a fiscal 2022 baseline.waste diversion rate across our manufacturing sites globally.CDP Climate Change Score A-.8,6

195、00 employees trained on environmental sustainability.GREENING BY EMERSONContinue to progress our environmental sustainability efforts and investing in technologies,solutions and expertise to support customers in their energy transition.Partnered with Syzygy Plasmonics to electrify and decarbonize ca

196、talyst reactions in chemical production using the power of light.Selected by DG Fuels to automate new Sustainable Aviation Fuel(SAF)production facility in Louisiana.Partnered with HaloSep to automate process of converting household waste to power.GREENING WITH EMERSONParticipation in hydrogen associ

197、ations or groups worldwide.In 2023,Emerson presented an innovation exhibit in the Expo City Green Zone of COP28.Emerson became a Terrawatt Partner at Greentown Labs,the largest climate-tech incubator in North America.*Excluding Scope 3 Category 15,InvestmentsVALUE CREATIONENVIRONMENTSOCIALGOVERNANCE

198、ABOUT EMERSONREPORTINGGreening Of EmersonGreening By EmersonGreening With EmersonOverviewLearn more about Emersons participation in COP28 in the Greening With section,pages 84-95E E2023 EMERSON SUSTAINABILITY REPORT 282023 EMERSON SUSTAINABILITY REPORT Emerson is Deploying Environmental Sustainabili

199、ty Strategies and Accelerating Decarbonization Across the GlobeGlobally,there is a concerted effort to transition towards a sustainable future,with nations uniting to achieve net zero emissions by 2050.This commitment extends beyond emissions to encompass initiatives to improve material efficiency,r

200、esponsibly manage water and waste resources,promote circular economy principles for the end-of-life reuse of materials and reduce impacts on biodiversity.Advancements are occurring in specific sectors of the economy,yet substantial progress is required.This underscores the need to accelerate the ado

201、ption of clean technologies and foster ongoing innovation.Achieving a sustainable transformation of the global economy within three decades demands an unparalleled level of collective determination,creativity,cooperation and dedication.Critical sectors such as manufacturing,transportation,constructi

202、on and the food supply chain are central to this shift.The materials and energy infrastructures underpinning these sectors are swiftly evolving towards sustainably sourced materials and increasingly electrified systems with cleaner and more renewable energy sources.The recent COP28 summit in Dubai,U

203、AE,emphasized the urgency to accelerate efforts and renew commitments towards this shift.Key outcomes included the UAE Consensus resolution to double the improvement rate of energy efficiency and to triple the expansion of renewable energy resources by 2030.As a major technology enabler,Emersons ext

204、ensive automation advances industries towards a net zero future.The greatest contribution we can make to global sustainability lies in empowering our customers with our solutions and expertise,enabling them to achieve their environmental goals.Our comprehensive suite of technologies,knowledge and cl

205、ient partnerships is increasingly vital for enhancing efficiency and reducing carbon emissions in sectors that are challenging to decarbonize.As a corporation,our focus is on delivering these solutions while advancing our sustainability initiatives and reducing emissions.Our Approach to Environmenta

206、l Sustainability and a Net Zero FutureMike Train,Chief Sustainability Officer,presenting on Emersons sustainability journey at Emerson Exchange in Dsseldorf.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGGreening Of EmersonGreening By EmersonGreening With EmersonOverview2023 EMERSON

207、SUSTAINABILITY REPORT 292023 EMERSON SUSTAINABILITY REPORT Emersons Portfolio Change Impact on Environmental SustainabilityIn 2023,Emerson significantly reshaped its position as a global automation leader with key portfolio changes,including the finalization of the Copeland transaction(formerly know

208、n as Climate Technologies)and the additions of Flexim and Afag.Along with our successful AspenTech partnership and the early fiscal 2024 acquisition of NI,we have created a unified automation portfolio that supports our customers through digital transformation,energy security,sustainability and deca

209、rbonization.These strategic moves have significantly impacted our environmental sustainability metrics and strategies.About 99%of Emersons GHG emissions up to fiscal year 2022 came from the Copeland business,reflecting the major role of their long-lived electrical compressor technologies in heating,

210、cooling and refrigeration globally.From now on,Emerson will report its equity share of Copelands emissions under Scope 3,Category 15.Learn more about Emersons Scope 3 GHG emissions inventory in the Net Zero Value Chain section.The environmental performance of Test&Measurement,Afag and Flexim will no

211、t be included in this years report.Their contributions will be incorporated after a full year of ownership,as we work to align our reporting with our evolving portfolio and sustainability goals.Emersons Environmental Sustainability GoalsEmerson recognizes the importance of setting ambitious targets

212、to build a more sustainable business and contribute to a more sustainable global economy.Here,we provide a clear overview of our objectives.By 2030Net Zero OperationsEmerson is committed to a 90%reduction in greenhouse gas(GHG)emissions across Scopes 1 and 2,alongside a 25%reduction in Scope 3 emiss

213、ions across our value chain,both compared to 2021.These near-term 2030 emissions targets were approved by the Science Based Targets initiative(SBTi)in 2022.Energy Efficiency and Renewable Energy GoalsTo support the Net Zero journey within our own operations,Emerson has also set additional targets:To

214、 procure 100%of our electricity from renewable sources.Significant strides have been made towards this goal,reflecting our dedication to reducing our carbon footprint and supporting renewable energy.To reduce energy intensity by 35%across our global operations,compared to a 2021 baseline.This goal e

215、xpands on our achievement of surpassing the initial 25%energy intensity reduction target well ahead of schedule,underscoring our ongoing commitment to energy efficiency.By 2045Net Zero Value Chain EmissionsEmerson established a target to reach net zero GHG emissions across Scopes 1,2 and 3,compared

216、to a 2021 base year.This requires an absolute reduction of GHG emissions of at least 90%,with high-quality carbon neutralization measures for any residual emissions that cannot be abated,aligning our approach with ambitious climate science standards.By 2032Operational Zero Waste To LandfillIn 2022,E

217、merson set a target to achieve zero waste to landfill from our manufacturing facilities by 2032,using 2022 as the fiscal base year.This is tailored to align with local conditions and regulatory requirements.Science Based Targets initiative(SBTi)In fiscal 2022,the SBTi approved our near-term 2030 emi

218、ssions targets.SBTi also approved Emersons long-term net zero targets as being consistent with levels required to limit global average temperature rise to 1.5C.OverviewVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGGreening Of EmersonGreening By EmersonGreening With EmersonOverview20

219、23 EMERSON SUSTAINABILITY REPORT 302023 EMERSON SUSTAINABILITY REPORT Creating a Culture of Sustainability to Promote Change and Drive ProgressSetting targets for greenhouse gas emissions,energy efficiency and waste,alongside leveraging our product portfolio to enable our customers progress across v

220、arious industries,has defined Emersons shared vision for environmental sustainability.Our leaderships commitment is visible in the development of organizational structures,resource allocation,investments and the integration of sustainability into our operational and strategic management processes.Ye

221、t,we recognize that achieving a net zero economy more broadly requires daily informed actions and decisions by everyone in our organization and across our value chain.Our employees are the core of our culture,and together,we have the collective responsibility to drive Emersons sustainability goals.C

222、ultivating a culture of sustainability is an ongoing journey that demands focus,learning,commitment,action and the resolve to improve daily.Transforming our purpose statement and sustainability targets into a culture embraced by everyone,from the Board of Directors to new hires,is a challenging ende

223、avor.Its essential that this sustainability-focused culture guides daily employee activities,decision-making and collaboration throughout the organization.Across Emerson,employees actively contribute to sustainability in many ways,from driving energy efficiency improvements in our operations and sup

224、porting customers on their sustainability efforts,to collaborating with external experts on innovative solutions and engaging governments on key policy discussions.The conviction of our people for sustainability is ultimately what shapes our culture and drives our broader impact in the world.Our Env

225、ironmental Sustainability FrameworkEmerson utilizes a framework that groups our environmental sustainability efforts into three broad pillars:Greening Of Emerson,Greening By Emerson and Greening With Emerson.This strategic framework continues to guide our sustainability programs and strategies.It ha

226、s also been instrumental in our communications,resonating well with a broad audience of stakeholders for its ease of understanding and recall.It remains a cornerstone in how Emerson conceptualizes and conveys our dedication to sustainable progress.The following sections are organized according to th

227、is framework:For more information please refer toEmersons Environmental Sustainability webpage.E EVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGGreening Of EmersonGreening By EmersonGreening With EmersonGREENING OFHow we improve our internal environmental sustainability performance.

228、GREENING BYHow we support and enable our customers decarbonization and environmental sustainability efforts.GREENING WITHHow we foster collaboration among stakeholders.Overview2023 EMERSON SUSTAINABILITY REPORT 312023 EMERSON SUSTAINABILITY REPORT Greening Of Emerson:Driving Net Zero OperationsWe ar

229、e working to improve internal environmental performance across our global business.Advancing Transparency and Governance in SustainabilityAt Emerson,we approach sustainability by focusing our efforts on areas where we can make the greatest impact.This philosophy steers our initiatives in key areas s

230、uch as reducing greenhouse gas emissions,optimizing energy use,minimizing waste and conserving water.It shapes our efforts to effectively drive progress and meet our environmental objectives.In our commitment to transparency in reporting our climate strategy and advancements,Emerson proactively shar

231、es its climate-related information by participating in the CDP(formerly known as the Carbon Disclosure Project).Since we set our initial emissions reduction target five years ago,our performance in the CDP evaluations has consistently improved.In 2023,we were proud to maintain an A-rating in the Cli

232、mate Change category,echoing our achievement from the previous year.Additionally,Emerson has been recognized on the CDPs Supplier Engagement Leaderboard for a second year,placing us in the leading 8%of companies evaluated for supplier engagement regarding climate change.We are convinced that openly

233、tracking and communicating our progress fosters trust and showcases effective strategies that can inspire others in their pursuit of sustainability.Therefore,we annually publish our environmental data,net-zero ambitions and strategies to achieve these goals in our sustainability report and through C

234、DP disclosures.For further details on the frameworks that inform our report content,including the Global Reporting Initiative(GRI),CDP,Task Force on Climate-Related Financial Disclosures(TCFD),Sustainability Accounting Standards Board(SASB)and the United Nations Sustainable Development Goals(SDGs),r

235、efer to the Reporting section.Emerson recently established a more formalized sustainability reporting governance framework.This is in anticipation of meeting the diverse range of sustainability disclosure regulations being introduced globally,including the EUs Corporate Sustainability Reporting Dire

236、ctive(CSRD)among others.This effort is marked by robust cross-functional collaboration involving key departments such as external financial reporting,internal audit,sustainability,legal,IT and HR,underscoring the comprehensive approach we are taking to ensure compliance and leadership in sustainabil

237、ity governance.Refer to the Corporate Governance section for more information on Emersons ESG oversight and ESG reporting governance structure.As a leader in the global marketplace,Emerson is committed to excellence in operations and to promoting sustainable business practices that make a tangible d

238、ifference,not only within our own operations but also for our suppliers and customers worldwide.Embedding sustainability into our corporate strategy,management and day-to-day operations is fundamental to our business ethos.Emersons Global Environmental Management and Sustainability policy articulate

239、s the guiding principles that are integrated into our internal environmental management practices and performance standards.This policy is reviewed,and the revised version published,on an annual basis.Please refer toEmersons 2023 Climate Change CDP Report for more information.E ECDP A-rating on Clim

240、ate ChangeCDP Supplier Engagement LeaderSBTi Approved near-term and long-term net zero targetsTCFD Report in alignment with TCFD guidelines:see our response hereVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMER

241、SON SUSTAINABILITY REPORT 322023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonEnvironmental Sustainability Leadership Founded on Strong GovernanceEmerson takes its commitment to environmental sustainability seriously and has established a strong governance structure to help ensure accountability

242、 and progress.Mike Train,Emersons Senior Vice President and Chief Sustainability Officer,leads the companys environmental sustainability strategy and oversees the Environmental Sustainability Steering Committee.Mike reports directly to Emersons President and CEO Lal Karsanbhai and regularly presents

243、 to the Board of Directors on Emersons sustainability initiatives.In 2023,Emerson restructured its Board committees,introducing a Technology and Environmental Sustainability Committee to further enhance its oversight of issues such as product cybersecurity,technology,innovation and the Companys envi

244、ronmental sustainability policies and programs.This Committee is updated regularly on regulatory and public policy trends related to environmental sustainability that may impact the Companys overall business strategy.For more information on Emersons Board Oversight of Company Strategy and Risk Manag

245、ement,See the Corporate Governance sectionUnder Mikes leadership,Emersons Environmental Sustainability Steering Committee is active in coordinating environmental sustainability-related activities and initiatives across the companys global value chain.This committee connects the priorities of our Boa

246、rd,leadership team and colleagues around the world and includes representatives from all functional areas of the company.This includes Emersons executive leadership and management teams,sales and strategy planning,legal,finance and accounting,operations,information technology,human resources,marketi

247、ng,supply chain,technology,engineering,governmental affairs,internal audit and investor relations.The aim is to widely integrate environmental sustainability into the companys business.Recent committee activities include:An update of the climate scenario analysis conducted to identify and quantify p

248、hysical climate risks as identified by the TCFD that are most important to Emersons business.The deployment of Emersons internal carbon valuation in our capital appropriation processes.The implementation of Emersons Zero Waste To Landfill strategy across manufacturing facilities.The establishment of

249、 a Responsible Sourcing Committee that is tasked with driving Emersons responsible sourcing program,including environmental,social and governance aspects across our supply chain activities.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGr

250、eening With EmersonOver 60 volunteers from Emersons Manila team participated in a coastal clean up as part of our Earth Month Ecochallenge.2023 EMERSON SUSTAINABILITY REPORT 332023 EMERSON SUSTAINABILITY REPORT Beyond this,we also drive action on focused topics through more specialized groups.For ex

251、ample:The Energy Sourcing Committee acts as a focal point for reviewing opportunities and engaging in more active sourcing of renewable energy.This group has representatives from sustainability,supply chain,finance and legal functions and works closely with our businesses to evaluate and implement r

252、enewable energy purchases.We also utilize third-party energy specialists who are active in energy markets and aware of emerging opportunities.The Scope 3 Emissions Data Governance Group is responsible for reviewing any improvements or changes to calculation methodologies,data sources,internal contro

253、ls and reporting efforts.This group has representatives from all relevant functions involved in external reporting and the data preparers touching our value chain emissions,from supply chain and logistics to sales and operations.The creation of a cross-functional Carbon Border Adjustment Mechanism(C

254、BAM)steering committee to establish data and reporting processes working with our suppliers and operations teams.The establishment of a working group tasked with integrating key product sustainability considerations and guidelines into Emersons new product development process and design practices.In

255、 coordination with the Board,Emerson leadership compensation programs in 2023 utilized a metrics-based approach incorporating both financial and sustainability targets with a focus on greenhouse gas emissions reductions and human capital management goals.These metrics are reviewed regularly and upda

256、ted according to progress.Doing so helps drive alignment and culture change across our organization.Achieving large-scale progress for a global company necessitates integrating environmental sustainability into our management process and,ultimately,into our culture.At the facility operations level,w

257、e have a sustainability team and leader at all major sites worldwide.These employees lead our local environmental sustainability efforts,which include reducing energy use and resulting greenhouse gas emissions,and our existing programs for managing water use and responsible waste disposal.Environmen

258、tal Sustainability LeadershipVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMERSON SUSTAINABILITY REPORT 342023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonClimate Scenarios Guide Our Long-Term Business and

259、 Risk Management StrategiesIn fiscal 2022,Emerson performed a climate scenario analysis to identify the climate-related risks and opportunities that could be important to Emersons business.The analysis considered risks and opportunities related to the transition to a lower-carbon economy and to the

260、physical impacts of climate change.Although scenarios are not predictions of the future,this assessment helped us better understand how climate change could impact our business.It also showed us how we can successfully transition to a lower-carbon economy and mitigate climate-related effects.Transit

261、ion Risks and OpportunitiesEmerson worked with a third-party risk modeling services provider and followed the Task Force on Climate-related Financial Disclosures(TCFD)recommendations to assess a range of future climate-related scenarios.The analysis included two emissions pathways.For the low emissi

262、ons pathway where the world successfully transitions to a net zero energy system,Emerson used the IEAs Sustainable Development Scenario for transition impacts in a well-below-2-degrees future.For the high emissions pathway,the IEA Stated Policies Scenario was used for transition impacts.In the low e

263、missions scenario,a shift in preferences toward lower emissions technologies is expected to create key transition risks and opportunities.As important energy transition solutions such as renewable electricity,biofuels,hydrogen,energy storage,carbon capture and storage,carbon removal,materials circul

264、arity,electrification and smart grid systems are developed,we expect Emersons existing energy and chemicals-based automation activities will be impacted.Emerson automation technologies and expertise enable these newer energy transition solutions.We modeled the energy and chemicals related automation

265、 revenue impact of both the IEA Stated Policies Scenario(high emissions)and the IEA Sustainable Development Scenario(low emissions)from 2021-2040 to assess the impact of the transition.Note that non-energy and chemical related automation revenue such as life sciences,food and beverage,pulp and paper

266、 and factory automation were treated equivalently in both scenarios.The IEA scenarios incorporate assumptions regarding population,long-term global economic growth,energy demand and the level of each energy resource expected to fulfill demand.In the high emissions scenario,the estimated compound ann

267、ual growth rate of automation revenue from 2021 to 2040 is 3.4%.In the low emissions scenario in which the world economy makes substantial progress toward net zero,the estimated compound annual growth rate of automation revenue is 3.1%.Although many assumptions are necessary for the scenario analysi

268、s modeling process,one takeaway is that automation plays an increasingly important role in the energy transition.Emerson technologies are ideally positioned to support these transition activities.We will continue to innovate and shape our portfolio to support these critical energy transition solutio

269、ns.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMERSON SUSTAINABILITY REPORT 352023 EMERSON SUSTAINABILITY REPORT Climate Scenarios Guide Our Long-Term Business and Risk Management StrategiesPhysical Risks In

270、2024,the physical risk analysis was updated to assess physical risks to our business operations over a range of time horizons and future climate-related scenarios.For the low emissions pathway,the Intergovernmental Panel on Climate Changes Shared Socioeconomic Pathway(SSP)1-2.6 was used for physical

271、 impacts the most optimistic temperature scenario aligning with a temperature increase of about 1.5 degrees Celsius.For the high emissions pathway,the SSP 5-8.5 scenario was used the most pessimistic scenario aligning with a temperature increase of about 4.3 degrees Celsius.As the impacts of climate

272、 change can manifest over varying time horizons,the exercise assessed the potential impact to Emersons facilities and operations of 12 acute and chronic perils over 5-year increments between present-day and 2050.Across these two climate scenarios and future time horizons,Emerson estimated the physic

273、al impacts on the organization,at the asset level,based on the geospatial coordinates of facilities,leading scientific climate models and predictive modeling methodologies.Using the assessments outputs,tropical cyclone risk in the East Asia&Pacific region was identified as a higher risk relative to

274、other regions due to the potential increase in frequency and severity.While we have facilities in this region,our mitigation strategies including global diversification of our facilities and regional production capabilities minimizes any potential impact to company operations.In addition,Emerson has

275、 well-developed emergency response programs and contingency plans to manage these types of risks,and the cost of managing them is included in the scope of the companys insurance program.Moving forward we will continue to periodically refine our scenario analysis assessment and methodologies.Given th

276、e iterative nature of climate scenario analyses,we expect improvements in best-practice approaches,models and data quality over time.We will integrate these assessments into our strategic planning,merger and acquisition activities,product design strategies and enterprise risk management frameworks a

277、s we advance our own net zero goals and support customers in their activities.These efforts are expected to help strengthen our resilience and adaptation to climate change.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emers

278、on Energy Treasure Hunts Compressed air optimization HVAC setback Footprint consolidation Equipment shutdown LED lighting20212023ENERGY EFFICIENCY GAIN RENEWABLE ELECTRICITYGRIDDECARBONIZATIONMajor reductions from59%33%3%49%8%NET ZERO OPERATIONS PROGRESS SOURCE OF EMISSION REDUCTIONS SINCE 20212023

279、EMERSON SUSTAINABILITY REPORT 362023 EMERSON SUSTAINABILITY REPORT For more information please refer toEmersons 2023 CDP Climate Change Questionnaire.E EGreening Of EmersonNet Zero Operations UpdateEmerson Continues to Accelerate Emissions Reduction ProgressIn 2019,Emerson announced a goal to reduce

280、 Scope 1 and 2 greenhouse gas emissions intensity by 20%.The original goal was normalized to sales across our entire global manufacturing footprint by 2028,compared to our 2018 baseline.We successfully exceeded this target in 2022,six years early,thanks to substantial enhancements in energy efficien

281、cy and increased sourcing of renewable electricity.Achieving Emersons initial target of reducing greenhouse gas intensity by 20%helped Emersons teams aim for a more ambitious 90%reduction in absolute Scope 1 and 2 emissions by 2030 from the 2021 baseline.As we strive to meet this goal,we will contin

282、ue focusing on energy efficiency and renewable electricity sourcing,along with Scope 1 emission abatement strategies.Emerson has achieved a steady decline in total energy consumed,normalized to sales(i.e.energy intensity),over recent years thanks to our commitment to energy efficiency across our ope

283、rations.We previously announced a target to reduce our energy intensity 25%by 2030,compared to a 2018 baseline.This baseline year,although different from our more recent science-based net zero emissions target baseline,was chosen to align with Emersons first greenhouse gas intensity reduction goal a

284、nd recognize our global teams for the efficiency gains they had historically achieved.We are proud to announce that we have surpassed the 25%energy intensity reduction target well in advance of the 2030 deadline,achieving a 41%reduction from the original 2018 baseline in 2023.As evidence of our cont

285、inued commitment to energy efficiency,we are expanding our target and updating to a more ambitious 2021 base year,challenging our global operations to reduce their energy intensity 35%by 2030.We look forward to reporting progress on this revised energy intensity target in the years to come.VALUE CRE

286、ATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson SCOPE 2 SCOPE 1 SCOPE 1 GHG EMISSIONS SCOPE 2 GHG LOCATION-BASED (thousands mtCO2e)(thousandsmtCO2e)202120229991852332023289252202120222023SCOPE 2 GHG MARKET-BASED (thousands mtC

287、O2e)(thousands mtCO2e)(mtCO2e permillion dollarsin sales)131284194202120222023 -44%216383285202120222023SCOPE 1 ANDSCOPE 2 EMISSIONSMARKET-BASED EMISSIONS INTENSITYMARKET-BASED 20232022202129.620.614.2Reduction from 2021 BaselineEmersons full Scope 1 and Scope 2 emissions reporting includes all site

288、s within our operational control including manufacturing and non-manufacturing facilities(e.g.distribution centers,headquarter buildings,sales offices,service centers)along with mobile emissions from leased or owned vehicles,aircraft and fugitive emissions from leaked refrigerants.Our total greenhou

289、se gas emissions for fiscal year 2023 included 190 major energy consuming facilities reporting actual energy usage data as well as the 383 remaining facilities under Emersons operational control.Where primary activity data was not available,we have made estimations based on square footage,site use a

290、nd other factors.Noteworthy revisions to historical energy consumption and emission data previously reported for fiscal years 2018-2022 were driven by the divestiture of the Climate Technologies(now called Copeland)and InSinkErator businesses along with improved energy data availability for our leas

291、ed vehicle fleet.ERM CVS has been engaged by Emerson to provided limited assurance for the 2023 GHG emissions dataset disclosed in this report.ERM CVSs full assurance statement,including opinion and basis of opinion,is available on page 204.LOCATION-BASED EMISSIONS Includes grid electricity emission

292、 factor averages multiplied by the total purchased electricityMARKET-BASED EMISSIONS Includes verified renewable energy purchasesScope 1 and 2 Emissions DataProgress towards 2030 Net Zero Operations2023 EMERSON SUSTAINABILITY REPORT 372023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonVALUE CREAT

293、IONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson0100,000200,000300,000400,000500,000600,000051015202530Thousands mtCO2e2021202220232024202520262027202820292030Efficiency gainsRenewable electricityScope 1 abatementCarbon neutraliz

294、ationActual/projected emissionsEmissions intensity mtCO2e/million dollars in sales2023 EMERSON SUSTAINABILITY REPORT 382023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonNet Zero Operations 2030 RoadmapThere are four key levers in Emersons roadmap for achieving net zero emissions across our opera

295、tional footprint:energy efficiency improvements,renewable electricity sourcing,Scope 1 emissions abatement through electrification and low carbon fuels and neutralization.Emerson can most directly control the first three levers and consequently that is where we have centered our efforts to date.Neut

296、ralizing carbon emissions through a combination of high-quality technological and nature-based solutions will be considered for residual emissions consistent with threshold limits set by the Science Based Targets Initiative.The chart below provides our anticipated emissions profile and projected imp

297、act of the four strategies to achieve our 2030 net zero operations target.Energy efficiency has historically been foundational to Emersons strategy in reducing emissions,and it will continue to be a focal point of our decarbonization roadmap into the future.Renewable electricity sourcing is now play

298、ing an increasingly important role in reducing our carbon footprint.Given the proportional split between our Scope 1 and Scope 2 emissions,we expect renewable electricity to continue driving significant emission reductions.Scope 1 abatement projects are currently being piloted in multiple world area

299、s and will be scaled up once proofs of concept have been validated.2030 NET ZERO EMISSIONS ROADMAPVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With EmersonProfessional ToolsAsh Flat,USABUILDINGAUTOMATIONSYSTEMINSTALLWASHPROCESS

300、REDESIGN550MWh saved150MWh savedMeasurement&AnalyticalBeijing,ChinaVARIABLESPEEDMOTORRETROFITS250MWh savedEmerson Tool Company Reynosa,Mexico2023 EMERSON SUSTAINABILITY REPORT 392023 EMERSON SUSTAINABILITY REPORT ENERGY EFFICIENCY PROJECT HIGHLIGHTSGreening Of EmersonEnergy Treasure Hunt Program Con

301、tinues to Drive More Energy EfficiencyEnergy Treasure Hunts continue to serve as a successful driver of Emersons progress on energy efficiency.These multi-day events are facilitated by a trained energy expert and include participation from a local team representing diverse functional groups.Groups b

302、egin by evaluating the operation on a low production day to determine how energy is being managed,and then the same process is repeated on a high production day to understand energy flows and opportunities.Energy and associated emission reduction opportunities are then reviewed,prioritized and docum

303、ented to share with local and business unit-level leaders.Repositories of Treasure Hunt results are made available to stakeholders across the company to enable collaboration and best practice sharing.We typically identify 1015%in energy savings opportunities during an Energy Treasure Hunt,and use th

304、e enthusiasm generated to invigorate our cultural transformation around sustainability.Not only are event participants empowered to identify future decarbonization opportunities at their site,but they now have the required training and experience to support Energy Treasure Hunts at other Emerson fac

305、ilities.This“train the trainer”approach to scaling up our energy management program has driven extensive coverage and participation:Emerson teams have now completed Energy Treasure Hunts at more than 70 unique,global facilities,representing over 60%of our manufacturing emissions footprint.Unlocking

306、Energy Efficiency OpportunitiesEmersons facility in Dammam,Saudi Arabia conducted an Energy Treasure Hunt that identified a combination of low-cost savings and impactful capital investment opportunities.This event was facilitated by our Middle East&Africa based energy experts with virtual support fr

307、om the Enterprise Sustainability team to review findings and validate saving calculations.Noteworthy opportunities from this event included LED lighting retrofits,lighting sensor installation,compressed air leak detection and set point adjustments to optimize HVAC energy consumption.Dammam,Saudi Ara

308、biaVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With EmersonRENEWABLE ELECTRICITY COVERAGE BY WORLD AREA50 MWh100 MWh150 MWh200 MWh250 MWhRE usage by region(%)Total electricity usage(MWh)51%52%93%1%19%0%North AmericaLatin Ameri

309、caEuropeMiddle East&AfricaAsia Pacific(w/o China)China2023 EMERSON SUSTAINABILITY REPORT 402023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonRenewable Electricity Emerson is committed to sourcing 100%renewable electricity across our global operations by 2030.We continue to make steady progress i

310、n expanding our renewable electricity coverage through both grid sourcing and onsite generation.In 2023,renewable electricity accounted for 49%of our aggregated global power consumption.The companys overall transition to renewable electricity is overseen by the Energy Sourcing Steering Committee,ens

311、uring a uniform approach consistent with the technical criteria issued by the Climate Groups RE100 initiative.Grid-Sourced RenewablesEmerson continues to effectively transition to grid-sourced renewable electricity in North America and Europe,markets that historically have offered more favorable ren

312、ewable supply levels.For example,a recent collaboration between our Measurement&Analytical operation in Minneapolis,Minnesota,and its local utility provider Xcel Energy resulted in a green tariff agreement that will provide locally sourced renewable power to the site for several years to come.Signif

313、icant progress was also made in 2023 with Emerson cementing an agreement to source 100%renewable electricity across all Mexico operations.Looking ahead,we have turned our focus towards sourcing renewable electricity for our core operations in the Middle East and Asia Pacific.Emerson recently engaged

314、 a third-party advisor to analyze the availability of supply and cost expectations in these key markets,and ultimately develop a transition roadmap in line with our broader 2030 renewables target.of all purchased electricity worldwide was renewable49%Championing Energy Efficiency Across Global Opera

315、tionsPallavi Sachan and Bakul Purohit are Emerson Indias Green Team Network Coordinators,leading sustainability initiatives and championing the Greening Of program locally.For several years,they have facilitated Energy Treasure Hunts,educated staff on Emersons sustainability goals,and promoted best-

316、practice sharing while ensuring active Green Teams in all facilities.Bakul has led sustainable renovations in Maharashtra for Indian Green Building Council certification,and Pallavi has engaged with renewable energy providers to identify high-impact sourcing options and in doing so aid Emerson India

317、s energy transition.Delhi and Pune,IndiaVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMERSON SUSTAINABILITY REPORT 412023 EMERSON SUSTAINABILITY REPORT Renewable ElectricityOn-Site Renewable GenerationWe contin

318、ue to invest in onsite renewable electricity generation across our global facility footprint with over 10 MW of installed capacity presently available.We have identified preferred onsite solar developers in multiple world areas to streamline our vendor selection process and accelerate the rate at wh

319、ich these projects are commissioned.Furthermore,Emerson has published a Sustainable Building Standards document stipulating that all greenfield construction and existing facility expansion projects will evaluate onsite renewable generation options as part of their design process.We will continue pri

320、oritizing and expanding our onsite renewable portfolio in the years to come.Emersons Actuation Technologies operation in Fiorenzuola,Italy installed a 0.9 MW capacity solar array which provides approximately 30%of the sites total annual electricity usage.This car park solar array is the first of its

321、 kind for the company,providing dual benefits of renewable electricity supply and covered parking for the sites employees.Emersons Discrete Automation factory in Songjiang,China,installed a 0.3 MW capacity rooftop solar array which provides approximately 15%of the sites total annual electricity supp

322、ly.The project also serves as benchmark for other,similar onsite solar investments to be made at Emerson China operations in the future.VALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson14%Refrigerants2%41%Natural gas43%

323、Mobile fuelsOtherstationaryfuels2023 EMERSON SUSTAINABILITY REPORT 422023 EMERSON SUSTAINABILITY REPORT Greening Of EmersonScope 1 Emission Abatement Through Electrification and Low-Carbon FuelsOur Scope 1 footprint primarily results from the combustion of fuel in company facilities,either in manufa

324、cturing processes or comfort space heating,as well as mobile vehicles owned or leased by Emerson.ElectrificationIn addition to energy efficiency measures,Emerson continues to implement decarbonized solutions to convert from combustion-based to electrified processes.We are actively assessing investme

325、nt opportunities for electrifying process and comfort heating systems and have begun piloting these approaches at select operations,considering technologies such as heat pumps and electric boilers.In parallel,we are mapping Scope 1 energy flows across the organization,which will enable the developme

326、nt of comprehensive electrification strategies tailored to specific end-use applications.Alternative FuelsWe believe alternative fuels such as hydrogen,renewable natural gas and other biofuels have a role to play in the energy transition.Alternative fuels can serve as a bridge solution in situations

327、 where complete electrification of thermal processes by 2030 is cost prohibitive or constrained due to inadequate utility infrastructure or renewable electricity supply.We are engaging with protocol organizations,project developers and value chain partners to evaluate the feasibility of fuel-switchi

328、ng opportunities aligned to net zero standards.Electric Vehicles2023 marked a critical first step in electrifying our global vehicle fleet,as internal policies were updated to allow electric vehicle(EV)and hybrid vehicle(HV)options to Emerson employees in multiple world areas and across vehicle grad

329、es.EVs and HVs now compose 12%of our global vehicle fleet,a year-over-year increase of more than 70%.To support this transformation,Emerson teams have identified preferred suppliers for EV charging infrastructure to expedite negotiation and on-site installation timelines.We intend to replicate regio

330、nal leased vehicle policies to all world areas as EV technology and local charging infrastructure continue to develop.SCOPE 1 EMISSIONS BREAKDOWNVALUE CREATIONENVIRONMENTSOCIALGOVERNANCEABOUT EMERSONREPORTINGOverviewGreening Of EmersonGreening By EmersonGreening With Emerson2023 EMERSON SUSTAINABILI

331、TY REPORT 432023 EMERSON SUSTAINABILITY REPORT Scope 1 Emissions AbatementAssigning a Carbon Value to Drive Incremental Decarbonization Investments Emerson uses an internal carbon price to place a monetary value on carbon emissions and evaluate the financial and environmental impacts of capital inve

332、stments.This analysis is fully integrated within our traditional valuation process and is now mandatory for investments that affect energy consumption or emissions in a meaningful way.Carbon valuations play a crucial role in allowing us to understand and prioritize opportunities that generate the hi

333、ghest emission reductions,factoring in expected,future decarbonization costs.We considered university research,benchmarked existing carbon markets around the world and ran a series of internal pilot investment analyses to determine an appropriate internal carbon price.Emersons Chief Financial Officer and Chief Sustainability Officer assess the carbon value annually against current prices and histo