Enviromental, Social, and Governance

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.

To ensure alignment with global leading practices, we have engaged an expert ESG third-party provider to advise and support the expansion of our ESG efforts. We anticipate this relationship to continue in 2023 and beyond.

With Respect to our ESG activities, we strive to:

Run all aspects of our operations in an environmentally sound and responsible manner, continually aiming to reduce our environmental impact
Provide clean, healthy and safe working conditions for all employees and other persons who enter our premises
Create a work environment that is free of intimidation, harassment and abuse, and where all individuals are treated with respect
Encourage diversity, equity and inclusion among our workforce, and take action to bring together team members with a wide variety of backgrounds, skills, and cultures
Respect the human rights and dignity of all and support international efforts to promote and protect human rights, including absolute opposition to slavery and human trafficking
Make a positive difference in the communities where we live and work through a diverse range of socially responsible activities and programs
Commit to the highest standards of ethical conduct and integrity, and seek to be honest and fair in all our business relationships

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 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:

Advise the company’s ESG strategy by considering and recommending policies, practices and disclosures that advance the company’s ESG progress and goals
Direct ESG communication streams and disclosures
Study trends and advise leadership of recommended ESG actions that may impact the business, operations, performance or public image of Utex
Implement ESG monitoring and progress reporting program
Recommend, review and assess internal ESG KPIs and recommend any proposed changes for approval
Project manage key initiatives supported by leadership each quarter through implementation, training, and sustainability across functional groups

Committee Structure

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

In 2022, Utex created an ESG Steering Committee comprised of individuals from various business units. Utex leveraged RACI charts to map out existing ESG activities and future initiatives and to assign responsibility to individuals across the organization. Beyond this, Utex identified additional working groups and ERGs that will be mobilized in the next 12 months to further support ESG efforts.

Aligning with UN Sustainable Development Goals

Utex is making a significant investment in sustainability efforts to meet our environmental goals. By implementing a number of strategies to reduce our carbon footprint—from increasing energy efficiency and implementing recycling programs to investing in renewable energy sources—Utex is able to align with six of the UN Sustainable Development goals.

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:

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, assets and people

Utex understands that our business has both direct and indirect environmental impacts, and it is our aim to achieve continuous improvement in our environmental protection pursuance.

Pollution Reduction Goals

Utex statement of process waste reduction goals:

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

Over the last 3 years, Utex has reduced Hazardous Waste disposal down to 10K lbs for a 3 year period.

Reducing Carbon Emissions

Utex’s inaugural scope 1 and 2 footprint calculation lays groundwork for future calculations and reduction initiatives.

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 works 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:

Improved lifespan of high wear parts leading to improved performance
Increased longevity of our customer’s systems, thereby reducing downtime and minimizing premature failure
Reduced mechanical maintenance due to system efficiencies
Optimized operations leading to reduced operating costs
Reduced damage liability as a result of properly functioning sealants
Substantial preservation of the environment
Reduced health and safety incidents

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.

Environmental, Social, and Governance