As trusted suppliers of industrial machinery for our customers, it is critical that we maintain a supply chain that ensures our ability to produce and ship quality products to customers and take measures to identify and manage risk of sourcing materials, including considering the environmental impacts. Many of the large customers that we supply have ambitious environmental goals, and through our science-based targets to reduce our own environmental impacts and focus on innovation for sustainability, we seek to deliver environmentally responsible products that meet their needs. While we have made significant progress, we know we can only fully achieve this by holding our suppliers accountable to the same standards.

Environmental Management in the Supply Chain

We drive supply chain responsibility, including for issues related to environmental protection, by requiring that all our suppliers comply with our Supplier Code of Conduct, which is an extension of the Dover Code of Business Conduct & Ethics. The Supplier Code of Conduct (the “Supplier Code”) establishes our expectations regarding environmental issues, workplace standards and business practices for our suppliers.

Additionally, we utilize a supplier evaluation scorecard which evaluates supplier environmental management certification (ISO 14001), environmental health and safety, quality (including continuous improvement and Six Sigma) and other practices. We are in the process of engaging with suppliers more directly on environmental issues and have plans to increase environmental standards such as by requiring suppliers to complete a sustainability assessment.

Each year we report on our climate and water-related environmental engagement with our suppliers and customers in our Climate Change and Water CDP responses. We intend to increase our engagement with suppliers in the coming years and will report on progress here and in CDP.

Environmental Sustainability Expectations for Our Suppliers

We are committed to creating economic value for our shareholders and customers through sustainable practices that protect the long-term well-being of the environment, employees, and the communities in which we operate. Our suppliers are required to comply with all applicable environmental laws, regulations, and standards and minimize any adverse impact on the environment. Our suppliers must also endeavor to conserve natural resources, including water and energy, and reduce or eliminate waste and the use of hazardous substances.