IDEX : 2023 Sustainability Disclosures

IDEX Corporation FY2023 Sustainability Disclosures

IDEX Corporation's ("IDEX" or "the Company") sustainability disclosures build on strategies and commitments in our 2022 Sustainability Report and associated publications and include metrics related to our ongoing environmental, human capital, governance, and ethics and compliance efforts. These disclosures contain an updated report under the Sustainability Accounting Standards Board (SASB), an updated ESG Data Table since publishing our last Sustainability Report, and a summary of the climate risk assessment conducted in 2023 under the guidance set forth by the Task Force on Climate-related Financial Disclosures (TCFD).

IDEX 2023 TCFD-Aligned Climate Risk Findings

The recommendations set forth by the TCFD are a widely-adopted framework considered helpful for understanding a Company's climate risks and opportunities. In 2023, we completed our initial climate risk assessment and scenario analysis. The information below summarizes the findings from this assessment.

Overview

In June 2023, IDEX completed a climate risk assessment with a third-party provider in alignment with guidance from the TCFD. The goal of this effort was to identify climate-related risks and opportunities potentially relevant to the IDEX businesses.

The assessment evaluated IDEX reporting units (as opposed to individual business units) to form an initial understanding of which types of businesses may be exposed to potential risks, and which are likely to have potential opportunities.

We performed two main types of analysis. First, we conducted a physical risk analysis to assess potential financial impacts arising from property damage and business interruption due to hazards (fire, flood, etc.). Second, we performed an initial transition risk analysis to evaluate risks and opportunities related to shifts in legislation, market forces, and technological development occurring as a result of a potential global movement towards a lower-carbon economy. These analyses incorporated more than 70 sites, covering 90% of IDEX revenue, and two discrete climate scenarios: (i) a "business as usual" scenario which assumed a physical risk scenario resulting in a 4°C rise by 2100; and (ii) a "net zero by 2050" scenario which assumed temperature rise is kept below 1.5°C by 2100. These climatescenarios were an attempt to represent both ends of the potential climate risk spectrum and, therefore, reflect the range of potential impacts to IDEX's operations.

Initial Outcomes

With respect to potential physical risk to our operations, using our third-party advisor's proprietary model, we determined that IDEX faces low physical risks across our portfolio. Using that particular model, less than 1.5% of our property value and less than 1% of revenue was determined to be at risk of physical damage or disruption from climate-related events that include coastal inundation, riverine flooding, and extreme heat.

In the transition risk assessment, some of the potential risks identified were related to policy and legal considerations. These types of risks would be driven by emerging regulation in certain industries more than others, such as the energy and automotive industries, along with the potential impacts of emerging carbon pricing. Other potential risks identified included R&D risks related to adapting products to new markets, changing consumer preferences for higher-efficiency products, and increasing levels of scrutiny around fossil fuels usage.

In addition to the foregoing potential risks, we also identified several climate transition-related opportunities. Consistent with our long history of partnering with customers to meet rapidly changing and growing technology needs, multiple business units are well-positioned to access and expand coverage in new markets as the world transitions to a lower-carbon economy. These opportunities are considered as part of our ongoing strategic work to continue to drive shareholder value and innovate alongside our customers to have a positive impact on the world around us.

Next Steps

This assessment represented an important step in our understanding of potential climate-related risks and opportunities, and we plan to continue assessing the likelihood and impact of various climate-related risks and opportunities as part of our ongoing risk management and strategic work across IDEX. In addition, we are monitoring emerging global reporting requirements, including but not limited to CSRD and SEC reporting requirements, and we are taking steps to prepare for compliance, as applicable.

IDEX 2023 SASB Index

As a diversified global manufacturer with over 50 wholly-owned subsidiaries serving numerous end markets, IDEX spans multiple industries under SASB. IDEX has aligned its reporting with theIndustrial Machinery & Goods,Electrical & Electronic Equipment,MedicalEquipment & Supplies,Semiconductors,andAuto Parts industries. Unless otherwise noted, all quantitative data reflects all IDEX businesses, except for a single business unit that was acquired in Q4 2023 and accounts for less than 1% of IDEX 2023 revenue.

Metric Description of policies and practices for prevention of: (1) corruption and bribery and (2) anti-competitive behaviorTotal amount of monetary losses as a result of legal proceedings associated with bribery or corruption anticompetitive behavior regulations

Total amount of monetary losses as a result of legal proceedings associated with bribery or corruption

Category Discussion and Analysis

QuantitativeQuantitative

RT-EE-510a.1

The U.S. Sentencing Guidelines, which outline the central tenets of a corporate compliance program, inform the basis of our compliance policies, procedures, and trainings. For more information, please see theBusiness Ethics & Compliance section of IDEX's 2022 Sustainability Report for a description of policies and practices for prevention of corruption, bribery and anti-competitive behavior.

RT-EE-510a.3

TR-AP-520a.1

$0

RT-EE-510a.2

HC-MS-510a.1

$0

SASB Industry Medical Equipment & SuppliesMetric Description of code of ethics governing interactions with health care professionals

(1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) Near miss frequency rate (NMFR)

Category Discussion and Analysis

Quantitative RT-IG-320a.1

1 These metrics do not include businesses acquired in 2023 or the Muon businesses acquired in Q4 2022.

All interactions are governed by our Code of Business Conduct and Ethics. IDEX employees or representatives do not interact directly with health care professionals. For more information, please see theBusiness Ethics & Compliance section of IDEX's 2022 Sustainability Report.

Total Recordable Incident Rate (TRIR): 2023: 1.29 1 2022: 1.37 2021: 1.37

Fatality Rate:

2023: 0

2022: 0

2021: 0

IDEX does not currently track near miss frequency rate at the enterprise level. IDEX is actively considering adding leading indicators, such as this, to the health and safety metrics we collect. For more information, please see the

Occupational Health & Safety section of the IDEX 2022 Sustainability Report.

Semiconductors

Description of efforts to assess, monitor, and reduce exposure of employees to human health hazardsDiscussion and AnalysisPlease see theOccupational Health &Safety andProduct Quality, Safety &Compliance sections of the IDEX 2022 Sustainability Report.

SemiconductorsTotal amount of monetary losses as a result of legal proceedings associated with employee health and safety violations

QuantitativeTC-SC-320a.2

$0

Industrial Machinery & Goods; Auto Parts; Electrical & Electronic Equipment; Semiconductors

(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewableTotal amount of monetary losses as a result of legal proceedings associated with false marketing claims

QuantitativeQuantitativeRT-IG-130a.1

TR-AP-130a.1

RT-EE-130a.1

TC-SC-130a.1

Please see the IDEX ESG Data Tables contained within this report for additional information.

HC-MS-270a.1

$0

Metric Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Amount of hazardous waste generated, and percentage recycled

Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations

Category Discussion and Analysis

QuantitativeQuantitative

In 2021, we strengthened our commitment to emissions reduction by setting a goal to, by 2035, reduce the intensity (by revenue) of our Scope 1 and Scope 2 GHG emissions by 30% below our 2021 baseline. We are continuing to work towards emissions reductions and are considering revising our reduction target to be based on a rolling base year given the acquisitive nature of our business. We expect to provide an update on this potential change in our FY24 disclosures. For additional information on our emissions reductions efforts, please see theOur Planet section of IDEX's 2022 Sustainability Report and the IDEX ESG Data Tables contained within this report for additional information.

RT-EE-150a.1

Please see the IDEX ESG Data Tables contained within this report for additional information.

TC-SC-520a.1

TR-AP-520a.1

$0

SASB Industry Industrial Machinery & Goods; Auto Parts; Electrical & Electronic Equipment; Semiconductors

Metric Description of the management of risks associated with the use of critical materialsDiscussion of process to assess and manage environmental and human health considerations associated with chemicals in products, and meet demand for sustainable products

Category Discussion and Analysis

Discussion and Analysis

TR-AP-440a.1

RT-EE-440a.1

TC-SC-440a.1

IDEX evaluates critical material risks in our supply chain and uses the results to develop strategies for supply continuity. IDEX leverages different methods to mitigate risk including, among others, having safety stock, using alternative/secondary sources, and assessing the ability to bring internal manufacturing processes in-house. IDEX maintains a Supplier Code of Conduct ("Supplier Code") that requires suppliers to comply with all applicable laws and regulations, including environmental and product compliance regulations. For additional information, please see theResponsible Supply Chainsection of IDEX's 2022 Sustainability Report.

HC-MS-410a.1

IDEX maintains both a Supplier Code and a Code of Business Conduct and Ethics. These documents set forth requirements and expectations for IDEX employees as well as those parties with whom we conduct business. Both require compliance with all laws and regulations, including laws relating to environmental, health and safety, and product compliance. For additional information, please see theProduct Quality,Safety & Compliance,Responsible SupplyChain and theBusiness Ethics & Compliance sections of IDEX's 2022 Sustainability

Report.

Metric Number of recalls issued, and total units recalledTotal amount of monetary losses as a result of legal proceedings associated with product safetyNumber of fatalities related to products as reported in the FDA Manufacturer and User Facility Device ExperienceNumber of FDA enforcement actions taken in response to violations of current Good Manufacturing Practices (cGMP) by type

Category QuantitativeQuantitativeQuantitativeQuantitative

RT-EE-250a.1

TR-AP-250a.1

In 2023, Akron Brass, under the regulations of the National Highway Traffic Safety Administration, instituted a recall to update the firmware on 6,792 multiplex nodes that control electrical power to various components on a vehicle. As of the date of this report, approximately 109 nodes have been updated and approximately 100 are in process.

RT-EE-250a.2

$0

HC-MS-250a.3

0

HC-MS-250a.4

0

IDEX annually evaluates critical material risks in our supply chain and uses the evaluation results to inform our business continuity plans. We work to identify secondary sources available for critical material parts. For parts sourced from a sole supplier, we may keep safety stock locally with IDEX and/or with suppliers. We also have the ability to make certain parts in-house. Our suppliers are governed by the IDEX Supplier Code. We also evaluate the risk profile of suppliers and supplier locations. IDEX abides by all laws and regulations, including REACH and RoHS. We monitor pending regulations and remove materials as they become regulated. For additional information, please see theProduct Quality,Safety & Compliance andResponsible

Supply Chain sections of IDEX's 2022

Sustainability Report.

As of 12/31/2023, IDEX had 8,761 employees.

IDEX 2023 ESG Data Tables

Accurate and complete data is an essential foundation of our sustainability program. Data enables us to set targets, track progress, and helps us prioritize our most impactful opportunities, and we continue to improve and refine our data collection processes. Unless otherwise noted, all quantitative data reflects all IDEX businesses, except for a single business unit that was acquired in Q4 2023 that accounts for less than 1% of IDEX 2023 revenue. This business will be accounted for in the next reporting year.

Our Planet

Metrics

Total Scope 1 and 2 (location-based) emissions (MT CO2e)3 Scope 1 GHG Emissions (MT CO2e)

Scope 2 (location based) GHG Emissions (MT CO2e) Scope 2 (market based) GHG Emissions (MT CO2e)

2021 49,928 12,207 37,722 11,733

53,522 64,160

13,178 15,151

40,344 49,009

29,000 51,648

Environmental 1, 2

Emissions intensity (Scope 1 and 2 location-based) (MT CO2e/$M revenue)

18.1

16.8 19.6

Total Electricity Consumption (MWh)

Total Renewable Energy Generation (MWh) Water Consumption (gallons) 5

107,835 98 64,083,944

111,857 635 72,466,815

128,662 3,017 4 103,078,369

1 To collect this data, we relied on data captured through a centralized utility bill management platform and vehicle fleet management platform, as well as data collected by surveying our businesses with respect to additional emissions sources. At the time of inventory completion, December 2023 data was not yet available, so an estimate for emissions data was developed based on actual data for January to November 2023. In the next reporting year, we will restate our 2023 emissions with actual values for December 2023. FY21 and FY22 data has been restated to include Q4 2022 data and minor improvements to FY21 and FY22 data inputs that improved estimation accuracy.

2 GHG emissions are calculated in line with the GHG Protocol Corporate Standard's operational control approach. All businesses held in the reporting year over which IDEX has operational control are included in the boundary.

3 Totals are based on actual emission volumes for the given operational footprint of each respective fiscal year, based on all business units within IDEX's operational control at that time. Given the acquisitions and divestitures that have occurred in the years provided, the emission totals represent a different portfolio of businesses each year. IDEX is considering adopting a rolling base year, which would entail adjusting the prior year to align with the current year's operational footprint and would provide an appropriate basis for comparison for year over year progress. In FY23, the increase in actual emissions is almost entirely driven by the Q4 2022 acquisition of the Muon businesses.

4 Total renewable energy generation refers to the use of onsite solar generation to fulfill our electricity needs. Value reflects January to November 2023 as no renewable energy generation data was available for December 2023.

5 In FY23, the increase in water consumption is almost entirely driven by the Q4 2022 acquisition of the Muon businesses. Water consumption for FY21 and FY22 has been restated to include Q4 2022 data and to reflect minor improvements to FY21 and FY22 data inputs that improved estimation accuracy.

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IDEX Corporation published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 17:02:26 UTC.