Environmental, Social, and Governance

Approach to ESG/Sustainability

At Utex, we seek to deliver high-performance fluid sealing solutions that maximize uptime, production, throughput, and total operational efficiency. It is this same spirit of excellence that drives our approach to environmental, social and governance (ESG) practices across our business.

With Respect to our ESG activities, we strive to:

Our ESG approach is supported by policies and practices that consider differences in the various locations in which we operate. We are proud to share the steps and goals we are committed to across these important areas, while continuing to serve as a partner of choice for our customers.

ESG Steering Committee Charter

The Environmental, Social and Governance Steering Committee (“ESG Committee”) purpose is to support Utex’s mission and corporate strategy by promoting strong ESG practices across the company. The ESG Committee will include individuals with expertise in relevant and varied disciplines, including legal and corporate governance, operations, sales and sourcing, engineering, environmental health and safety and human capital. The Utex Board of Directors and The Utex Executive Management team have oversight responsibility for the ESG Committee.

The ESG Steering Committee is a cross-functional committee and will assist the Utex senior leadership team (SLT) in (a) setting the strategy relating to ESG, (b) developing, implementing and monitoring initiatives and policies based on that strategy, (c) overseeing communications with customer, employees and other stakeholders with respect to ESG, and (d) monitoring and assessing developments relating to, and improving, stakeholder understanding of ESG.

Duties and Responsibilities

The duties and responsibilities of the ESG Steering Committee shall be as follows:

Meetings

The ESG Committee shall meet periodically throughout the year. Recommendations prepared by the ESG Committee will be shared with the SLT, as appropriate, for further discussion and approval.

Approach to the Environment

Utex recognizes the importance of environmental protection and is committed to operating our business responsibly and in compliance with all legal requirements. Across our global operations, it is our objective to continually improve environmental performance by assessing the environmental effects of our activities and responding accordingly. We also acknowledge the impact of carbon emissions on the societies where we live, work and play and are consistently pursuing opportunities to be a part of the solution.

With respect to the environment, we strive to:

  • Make environmentally responsible use of all natural resources, including energy and water
  • Minimize waste by ensuring all operations are as efficient as possible, promoting recycling, and eliminating the use of plastic water bottles in our offices
  • Reduce our carbon emissions by training our workforce on energy efficiency best practices, adopting new technologies, and working with our supply chain partners to reduce emissions across the lifestyle of our products
  • Manufacture products that foster greater productivity, reduced energy usage and increased resource utilization by combining our material engineering and manufacturing expertise with advanced modeling software, R&D and testing procedures
  • Ensure that our products keep fluids and gasses where they belong and do not spill out into the surrounding environment, thus protecting neighboring areas, people and assets

Pollution Reduction Goals

Utex statement of process waste reduction goals:

  • 100% of scrap metals recycled
  • 100% of used oil is recycled

Approach to Human Rights

At Utex, we are committed to the highest standards of integrity and business conduct. Our practices and principles for behavior are noted in our Code of Ethics, which applies to all team members of Utex, its subsidiaries and supplier partners. The practices are further detailed in our Employee Handbook.

At Utex, we take steps to ensure that we:

  • Do not employ child labor or forced labor in our operations in any country where we operate, and will not knowingly engage with a supplier that directly or indirectly does engage in child or forced labor. Utex screens vendors during the Supplier on-boarding process requiring vendor’s commitment that there is no employment of child labor or forced labor.
  • Do not allow or require employees to work more than the maximum number of hours legally permitted by applicable law
  • Avoid the use of conflict minerals
  • Conduct business with transparency and free from unethical persuasion throughout our entire supply chain
  • Strictly comply with the laws, rules and regulations governing our business including those related to the environment, safety and health, employment opportunities, and corporate and accounting practices

Utex is dedicated to honest and ethical business practices today and in the future, and maintaining the culture of human rights that has been a company priority for more than 80 years.

Diversity / Equity / Inclusion

Utex is committed to fostering, cultivating and preserving a culture of diversity, equity and inclusion. Our human capital is our highest priority, and the collective sum of individual backgrounds, skills, cultures, and talent that our employees invest in their work represents a significant part of our company culture and achievement. Our commitment to DEI is embedded in our Code of Ethics and Business Conduct and employment practices.

With respect to DEI, Utex:

  • Values the diversity of our employees and is committed to providing an equal opportunity in all aspects of employment without regard to race, gender (including pregnancy, childbirth or related medical conditions), color, religion, creed, national origin, age, military and/or veteran status, disability, genetic information, sexual orientation, transgender status, gender identity or any other category protected by applicable federal, state or local law
  • Commits to providing an environment free of harassment, intimidation, and discrimination by any person associated with the company (including, but not limited to, Utex’s customers, vendors, suppliers, and other invitees)
  • Pledges to make reasonable accommodations for known physical or mental limitations of an otherwise qualified applicant or employee with a disability as well as providing accommodations for pregnant women and any applicant or employee’s bona fide religious beliefs and practices

All employees have a responsibility to take account of our policies and practices regarding equality, diversity and inclusion as part of their day-to-day work and dealings with colleagues and customers.

We believe all employees should be treated with fairness and respect and are committed to providing a workplace free from discrimination and harassment. We do not tolerate conduct that fosters an offensive or hostile work environment.

Health & Safety Policy

Health & Safety Programs – Monthly trainings include:

  • Hazard Communication & Chemical Safety
  • Bloodborne Pathogens
  • Emergency Action Plan
  • Overhead Crane and Safe Lifting
  • Machine Guarding
  • Hand Tools
  • Powered Industrial Trucks
  • Hearing Conservation
  • PPE
  • Respiratory Protection
  • Lockout/Tagout
  • BBS – Observation Intervention

Additional Employee Safety Perks:

  • Prescription safety eyewear program
  • Safety boots/shoe program

Safety Checklist

EYES

Am I wearing all required PPE?

HANDS

Are my hands in a safe place?

BODY

Is my body in a safe place?

FEET

Are my feed out of the place?

EYES, HANDS, BODY, FEET

MY TASK IS READY TO COMPLETE!

Societal Benefit

Utex is proud to design, test, manufacture, and distribute sealing solutions to maximize uptime and ensure peak performance for our customers. While our products are used across industries including energy, transportation, mining, water distribution and marine, one aspect of our business is universal – our commitment to ESG-driven solutions and strong business relationships.

At their core, our products are intended to greatly improve the protection of the environment, assets and people by ensuring that fluids and gasses (including greenhouse gasses) remain contained where they belong and do not escape into surrounding areas. We pride ourselves in being part of the solution to climate concerns across the globe.

The benefits of our products include, but are not limited to, the following:

These collective benefits contribute to reduced environmental impacts for our customers, directly lowering their energy, water, waste, and emissions footprint. Beyond this, our solutions pave the way for much safer systems, operations and working environments.

We actively seek opportunities to partner with our suppliers by including ESG criteria in each critical phase of our new product development (stage gating) process. This business approach allows us to work collaboratively to develop and consider low emissions alternatives throughout the product lifecycle, while ensuring that our business continues to yield favorable financial outcomes without compromising our integrity.

Supply Chain Management

Business Partner/Vendor Expectations

At Utex, we hold ourselves accountable to high standards of ethics and business conduct, and we seek partners who align with our commitment.

Our Code of Ethics and Business Conduct outlines out the minimum standards expected from our supplier partners. In addition, we encourage our business partners to work with their own supply chains to promote business conduct consistent with these principles.

Our business partners are expected to:

  • Conduct business with honesty, accuracy and integrity
  • Provide and maintain a safe, healthy and orderly workplace, free from harassment and discrimination of any kind
  • Respect basic human rights and dignity, while forbidding the use of forced or child labor and protecting against any form of human trafficking
  • Demonstrate equal treatment of all employees
  • Meet or exceed environmental compliance requirements and minimize impacts to the environment by responsibly managing waste, water, energy and land use
  • Comply with applicable laws of the cities, states and countries in which the company operates, including anti-bribery and corruption laws and regulations
  • Avoid the use of conflict minerals
  • Exhibit transparency in supply chain tracing and cooperate with Utex’s compliance efforts

All business partners of Utex are expected to report any violations to laws, rules and regulations set forth by the Code of Ethics to any member of Utex management or human resources, and to cooperate with respect to any investigations of misconduct.

Reporting/Transparency & Ethics

Purpose and Overview

For more than 75 years we have been working with integrity to meet the needs of a diverse set of clients.

The reputation we enjoy as a trusted provider is one we’ve earned over the years by conducting business ethically – in every transaction and every business decision.

When you do the right thing, you not only protect our reputation, but also help our Company to thrive and to grow in today’s complex and competitive business environment.

To meet our commitments we have created this Code of Ethics and Business Conduct (“Code”). It is organized into six sections and provides standards for:

  • Ensuring compliance with applicable laws, regulations, and Company policies.
  • Promoting integrity and the highest standard of ethical conduct.
  • Helping us to avoid even the appearance of anything improper in connection with our Company’s business activities.

Complying with Laws and Regulations

Utex Industries Inc. (“Utex”) is committed to compliance with all laws, rules, and regulations that apply to our business. It’s impossible to anticipate every question you may have or situation you might face so, in addition to the Code, Utex also has other resources that can be of help. These additional resources are listed throughout the Code. As always, we rely on you to use good judgment and to seek help when you need it.

We operate in several countries, so it’s important to be aware of different laws and customs that may apply. While we respect the norms of our customers, business partners, and coworkers throughout the world, all team members must, at a minimum, comply with the standards and principles in this Code.

If any provision of our Code conflicts with a local law or requirement, you should seek guidance from your team leader or the Company Compliance Officer.

Accurate Recordkeeping

The accuracy and completeness of our disclosures and business records is essential to making informed decisions and to supporting investors, regulators, and others. Our books and records must accurately and fairly reflect our transactions in sufficient detail and in accordance with our accounting practices and policies.

Some team members have special responsibilities in this area, but all of us contribute to the process of recording business results or maintaining records. Ensure that the information we record is accurate, timely, and complete, and maintained in a manner that is consistent with our internal controls, disclosure controls, and legal obligations.