Emerson Electric : 2021 Environmental, Social and Governance Report

2 0 2 1 E N V I R O N M E N TA L ,

S O C I A L A N D G O V E R N A N C E R E P O R T

TA B L E O F C O N T E N T S

0 2 1 E M E R S O N E S G R E P O R T | Table of Contents

3	CEO Message	9 Environmental
5	Chair Message	Sustainability
Our Approach to
6	Company Profile	Environmental Sustainability
7	Report At-A-Glance	and a Net Zero World
Driving Net Zero Operations:
8	Our Purpose	Greening Of Emerson

Solving for Net Zero in Essential Industries: Greening By Emerson

Collaborating for a Net Zero World: Greening With Emerson

37 Social Responsibility

Modernizing Our Culture and Driving Diversity, Equity and Inclusion

Employee Engagement Training and Development Workforce Development Industry Stewardship Corporate Philanthropy STEM Education

57 Governance and Accountability

Corporate Governance Integrity & Ethics Workplace Safety Supply Chain Cybersecurity

71 Reporting

UN Sustainable Development Goals

GRI Index SASB Index TCFD Index Environmental Data

99 About This Report

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D ea r St a ke h o l d e r s

This past year has represented the start of a transformation for this company.

2 0 2 1 E M E R S O N E S G R E P O R T | CEO Message

When I assumed the role of CEO, I prioritized cultivating an

exceptional culture, transforming our industry-leading portfolio and continuing to drive the best-in-class execution that has long been a hallmark of Emerson. Our efforts to drive Emerson's leadership on environmental, social and governance (ESG) issues have been a top priority across these areas.

Emerson's ESG commitment mirrors our unified global Purpose: "We drive innovation that makes the world healthier, safer, smarter and more sustainable." Our 86,700 employees

live out this charge to not only identify opportunities for efficiencies and improvements today, but also to reimagine what our company and our world could look like tomorrow.

TA K I N G A C T I O N O N

E N V I R O N M E N TA L S U S TA I N A B I L I T Y

Recent scientific reports continue to reinforce the urgency of climate change and meeting goals set out in the Paris Climate Agreement. We all have a role in these efforts.

In 2021, we appointed Mike Train as Chief Sustainability Officer. This role, part of our Office of the Chief Executive, reflects our focus on sustainability across our company. Under his leadership, Emerson has made significant strides, and we are strengthening our leadership position as our customers and suppliers work to deliver their environmental targets.

As part of our longstanding commitment to operational execution and excellence, we remain dedicated to doing our part as a global business leader to drive tangible, sustainable business practices and to help our customers around the world do the same.

O U R N E T Z E R O A M B I T I O N

Emerson has set an ambitious target to achieve net zero greenhouse gas (GHG) emissions across our value chain by 2045 compared to a 2021 baseline. To set us on the right pathway, we will target net zero operations and a 25% reduction of our value chain emissions by 2030, also compared to a 2021 baseline. The invaluable lessons we learn from decarbonizing within our four walls will enable us to drive emission reductions where we can have the greatest impact for our customers, suppliers and partners.

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2 0 2 1 E M E R S O N E S G R E P O R T | CEO Message

D R I V I N G P R O G R E S S

O N S O C I A L I S S U E S

As a global company operating across industries and geographic borders, our technologies and innovations are grounded in helping people live better lives. Advancement in this area starts within our own walls.

Creating a culture where everyone is welcomed, trusted, celebrated and empowered is not only the right thing to do - it's the best way for us to create value. At Emerson, we're dedicated to modernizing our workplace so our company can meet the needs and expectations of today's workers and attract talent that will help us thrive.

In 2021, we introduced a goal of doubling representation at the leadership level of women globally and minorities in the U.S. by 2030. And, to lead our efforts to support our people and strengthen the employee experience, we appointed Elizabeth Adefioye as Emerson's first Chief People Officer. Her energy and fresh perspectives will help ensure our people and culture agenda support our ambitious business objectives and global strategies.

We're also committed to creating positive change in the communities where we live and work. Education is an area of particular importance to us, because we know it can be the catalyst to great opportunity for under-resourced communities and minority populations. We are now focusing our giving

efforts, pledging $200 million over the next 10 years to organizations that address the vital issue of education inequity, with a particular emphasis on the development of children and youth. This commitment underscores our vision to create a more equitable future for all.

R E I N F O R C I N G O U R C O M M I T M E N T T O S T R O N G G O V E R N A N C E

Governance and execution have been fundamental to Emerson's identity since our founding more than 130 years ago. We continue to evaluate our structures and policies to integrate our ESG priorities throughout the various facets of our organization, including our total compensation discussions and programs.

Reinforcing the importance of compliance and ethical behavior in our governance measures, we promoted Chief Compliance Officer Lisa Flavin to our Office of the Chief Executive. Lisa helps to ensure we maintain a disciplined approach to evaluating and continuing to improve our systems of internal control, financial reporting and compliance.

We're also privileged to be guided by a Board of Directors that has served as a strong and trusted partner in our ESG journey.

In 2021, we appointed James Turley as non-executive independent chair of the Board. Jim's experience with Emerson and in finance, public company service and executive leadership are a true asset.

We are also proud to have strong diversity as well as leadership by women on our Board, with two of the three required Board Committees now led by women.

I want to extend my sincere thanks to the Emerson Board of Directors and the Office of the Chief Executive, as well as our employees and customers. Our accomplishments this year would not have been possible without the collective input, creativity, time and efforts of each and every one of you. And there's so much more to come through our commitment to our culture, portfolio and execution - with ESG as a driving force. When we combine the talents and passion of our global workforce, the impact we can make for our customers, industries and communities we serve is truly limitless.

My personal regards,

Lal Karsanbhai

President and Chief Executive Officer

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D ea r St a ke h o l d e r s

This year has been one of great momentum for Emerson.

2 0 2 1 E M E R S O N E S G R E P O R T | Chair Message

Environmental, social and governance topics have never been

more important to the vitality of the company and our world - and the Board is energized by Emerson's refreshed focus on progress in this area.

The Board of Directors is a critical partner in determining and evolving company strategy. As we partner with Lal to catalyze growth and anticipate customer needs, we have a particular

focus on environmental initiatives, as more and more companies around the world prioritize setting, measuring and progressing toward sustainability targets.

Emerson's Environmental Sustainability Steering Committee, formed in 2020, is driving actions to enhance Emerson's environmental initiatives and encourage best practices throughout the organization. In this spirit, the committee continued to develop working groups in 2021 to enhance the company's global value chain, including efforts focused on Emerson's supply chain and energy sourcing. Looking ahead, the committee is supportive of Emerson's net zero target and energy-reduction targets, as well as the work to advance key innovations and participation in leading global climate forums.

The Board is also supportive of the accelerated vigor surrounding Emerson's people and culture initiatives, spearheaded by Lal and the company's leadership team. The energy surrounding diversity, equity and inclusion is reflected among the Board - and we are focused on ensuring the Board is diverse in backgrounds, experiences and expertise. In 2022, 45% of our directors are women or persons of color, and four of our six new

directors over the last five years have been gender or ethnically diverse. Women play a strong leadership role on the Board, leading two of our three required committees and holding two positions on the Executive Committee.

The actions taken by Emerson in 2021 set a strong ESG foundation - and I speak for the entire Board when I say I look forward to continuing to serve as a partner to the company in advancing this strategy in the months and years to come.

Sincerely,

James Turley

Chair, Emerson Board of Directors

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