Hillenbrand : 2023 Sustainability Report

MAKE IT MATTER

2023 Sustainability Report

ABOUT

HILLENBRAND

GOVERNANCE

OUR PEOPLE

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN

SERVING OUR STAKEHOLDERS

INDICES

TABLE OF CONTENTS

Welcome Message From Our President and CEO	3
ABOUT HILLENBRAND
Who We Are	5
Our Purpose	5
Our Core Values	5
Our Business, Operating Segments, and End Markets	6
Awards and Recognition	8
GOVERNANCE
How We Think About Sustainability	10
Hillenbrand's Approach to Ethics and Anti-Corruption	15
Cybersecurity and Data Privacy	16
Executive Compensation	17
Human Rights	18
OUR PEOPLE
Purpose and Core Values	20
People Management	21
Diversity, Equity, and Inclusion	22
Compensation and Benefits: Choose Well, Live Well	25
ENVIRONMENT, HEALTH, AND SAFETY
Energy and Emissions	29
Water, Waste, and Biodiversity	33
Building a Safety Culture	36
Supporting our Customers' Safety Goals	38

INNOVATION
Technology Solutions Supporting Sustainability	41
End Market Focus	44
SUPPLY CHAIN
Supplier Standards	51
Supplier Diversity	53
SERVING OUR STAKEHOLDERS
Customers	55
Shareholders	55
Suppliers	55
Communities	56
INDICES
Approach to Reporting	61
Policies	61
Global Reporting Initiative (GRI) and UN Sustainable Development Goals	62
Sustainability Accounting Standards Board (SASB)	67
Reconciliation Table	68
Cautionary Note Regarding Forward-Looking Statements	69

2023 SUSTAINABILITY REPORT

2

ABOUT

HILLENBRAND

GOVERNANCE

OUR PEOPLE

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN

SERVING OUR STAKEHOLDERS

INDICES

WELCOME MESSAGE FROM OUR PRESIDENT AND CEO

Dear Stakeholders,

I am pleased to share Hillenbrand's 2023 Sustainability Report highlighting the year's accomplishments in our sustainability journey. This was a historic year for Hillenbrand, as we transformed into

a pure-play industrial company more keenly focused on making industrial products that positively impact the world around us. This is how we live our Purpose to Shape What Matters For Tomorrow™.

This year, we continued to focus on and execute our sustainability strategy because what matters to our customers, suppliers, and associates matters to us. We are determined to face challenges head- on, support the circular economy, and help our customers meet their critical needs in the areas of durable plastics, food, and recycling.

In 2023, we concentrated our investments in key end markets and ramped up efforts to fully integrate recently acquired companies into our business. Last fall's acquisition of the Schenck Process Food and Performance Materials (FPM) business further positioned us to address food insecurity around the world.

We highlight that progress in this year's Sustainability Report and demonstrate key elements of Hillenbrand's commitment to support the Ten Principles of the United Nations Global Compact (UNGC) in the areas of Human Rights, Labor, Environment, and Anti-Corruption. We also disclose our continuous effort to integrate the Ten Principles and U.N. Sustainable Development Goals (SDGs) into our business strategy, culture, and daily operations. These goals and principles are at the heart of the commitments we make, the partnerships we develop, and the policies and Code of Ethical Business Conduct (the "Code") to which we hold ourselves, and others, accountable.

We continue to enhance our understanding of our data and automate its collection, analysis, and reporting. This keeps us positioned to provide easier access to data and transparency about our operations to our many stakeholders and, through governance and technology, comply with forthcoming regulations and reporting standards.

Advances in artificial intelligence (AI) technology prepare us for these changes and allow us to do more to serve our customers with less. Our business is built on speed and innovation, and AI boosts our efficiency and helps us make data-driven decisions, safeguard sensitive information and adhere to data protection regulations.

Our stakeholders also expect this same swiftness in the execution of our climate strategy. We have established governance, process, and capability to increase our proactive data disclosures to include Scope 3 emissions.

This was a year of celebrations and progress, which was recognized on a global scale by our nomination as a finalist in the Reuters Responsible Business Awards for our work to communicate our Purpose and by the increase in our MSCI environmental, social, and governance (ESG) rating from A to AA, which puts us in a leadership category in our industry.

Our progress is a testament to our associates around the world who live our Purpose and commitment to strengthen the communities in which we operate. Transforming as the world transforms, innovating our process capabilities, and using lean and green practices with

common benefits for our stakeholders and the environment are at the core of sustainability, and this report is a visual display of our team's accomplishments.

I continuously encourage the team to think big and think of what we are doing for tomorrow, and I am confident in our ability to continue to drive positive results for all stakeholders. Thank you for your interest in this year's report and for being a part of our journey to become world class.

Sincerely,

Kim Ryan

President and Chief Executive Officer

2023 SUSTAINABILITY REPORT

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01		ABOUT		GOVERNANCE			OUR PEOPLE
		HILLENBRAND
		ABOUT HILLENBRAND

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN		SERVING OUR		INDICES
	STAKEHOLDERS

NOTE FROM OUR CHIEF SUSTAINABILITY OFFICER

When I speak to our stakeholders, there is no doubt that climate change has taken center stage. As governments set targets for emissions reductions and drive changes through regulation, industrial manufacturing companies are looking for new ways to deliver value to the customer across the supply chain and lifespan of their products.

I have had the privilege of building and leading our sustainability efforts since we formally started our program in 2021, and have enjoyed watching our associates transform how we look at our products, our business, and our world. Together, we have come to recognize that finding new ways to work and using lean and green practices with common benefits for the environment and stakeholders alike are at the core of sustainability. When we put the customer and stakeholder first, sustainability truly becomes a way of doing business.

2023 was the first year we had visibility into all three scopes of our emissions. We gained new insights into the emissions from our equipment and the impact of those emissions on our customers' operations-and with insight comes opportunity. In 2024, our team is exploring the use of innovative technologies, preparing for a rapidly changing regulatory environment, and partnering with

customers and suppliers to help them think

and drive our positive impact far across the value

Sustainability is a team sport, and this report each of us, all of us, come together to Make It am incredibly grateful for the work of our people such meaningful impacts and truly Shape What For Tomorrow.

Sincerely,

Tory Flynn

Chief Sustainability Officer,

VP Corporate Affairs

2023 SUSTAINABILITY REPORT

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ABOUT		GOVERNANCE
HILLENBRAND

WHO WE ARE

We are the engineers, the manufacturers, the makers, and the shapers whose work impacts how people live, work, play, travel, eat, and heal. Hillenbrand is a global industrial company that provides highly-engineered,mission-critical processing equipment and solutions to customers in over 100 countries around the world. Because we make what matters, it matters how we make it. Sustainability is an interwoven and integral part of our business strategy, and we lead our industries by delivering innovative products and solutions that help address today's challenges and tomorrow's needs.

We remain committed to delivering on our strategy to grow, enhance, and optimize our business through three key steps:

1.	Deliver world-class products,
	solutions, and service to our
	customers.
2.	Focus on continuous
improvement through the
deployment of the Hillenbrand
Operating Model (HOM).
3.	Drive long-term shareholder

value through disciplined capital allocation.

OUR PEOPLE		ENVIRONMENT, HEALTH,		INNOVATION
	AND SAFETY

HILLENBRAND AT A GLANCE1

GLOBAL LEADER IN HIGHLY-

ENGINEERED INDUSTRIAL

PROCESSING EQUIPMENT

AND SOLUTIONS

Listed NYSE: "HI"

~10,000 associates

60+ global locations

$3.3B combined net revenue2

1. All figures as of 9/30/23.
2. Including pre-ownership period results for Peerless and FPM and
   Hillenbrand's 9/30/23 as reported results on a continuing operations basis. Combined net revenue is a non-GAAP measure. See appendix for GAAP reconciliation.

SUPPLY CHAIN		SERVING OUR		INDICES
	STAKEHOLDERS

OUR PURPOSE

Hillenbrand associates around the world are united by a shared Purpose - to Shape What Matters For Tomorrow. Each of our Core Values helps activate our Purpose, guides our decision-making, and continually challenges us to be better.

OUR CORE VALUES

WIN AS ONE To Win As One, we collaborate with care and respect. We embrace the individuality and diverse knowledge of our global teams and hold each other accountable to the highest standards.

PARTNER WITH POSSIBILITY We are problem solvers and work with our customers to develop solutions. We use our technical expertise to overcome challenges and find breakthrough solutions.

MAKE IT MATTER Hillenbrand makes things that matter, so it matters how we make them. We operate with integrity and work with one another, our customers, and our suppliers to safely manufacture mission-critical products that keep our world moving.

DRIVE TO DELIVER We are a performance-driven organization. Our growth mindset drives us to be leaders within our industries. Through the HOM, we understand, focus, execute, and grow, continuously evolving from each experience.

2023 SUSTAINABILITY REPORT

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ABOUT

HILLENBRAND

GOVERNANCE

OUR PEOPLE

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN

SERVING OUR STAKEHOLDERS

INDICES

OUR BUSINESS, OPERATING SEGMENTS, AND END MARKETS

The 2023 calendar year marked Hillenbrand's transformation into a pure-play global industrial company. A series of strategic acquisitions in the past two years built upon our strength and expertise in process technology and engineering and positioned us to deliver greater service and value in key end markets that are vital to the world around us, including durable plastics, food and pharmaceuticals, and recycling.

END MARKETS BY

OPERATING SEGMENTS

Global macro trends, including an expanding global middle class, a more urgent push for sustainability, and future supply chain needs continue to drive demand for our products and solutions.

Plastics & Recycling

Food & Pharmaceuticals

Chemicals

Minerals

Other Industrial

ADVANCED PROCESS

SOLUTIONS

A global leader in highly- engineered process and material handling equipment and systems for a wide variety of industries, including the durable plastics, food, and recycling industries.

Automotive

Consumer Goods

Custom Molders

Other Industrial

Packaging

Construction

Medical

Electronics

MOLDING TECHNOLOGY SOLUTIONS

A global leader in highly- engineered processing equipment, systems, and aftermarket parts and services for the plastic technology processing industry.

2023 SUSTAINABILITY REPORT

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ABOUT

HILLENBRAND

GOVERNANCE

OUR PEOPLE

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN

SERVING OUR STAKEHOLDERS

INDICES

LOCATION OF HILLENBRAND AND MAJOR OPERATIONS

Batavia, Ohio

Georgetown, Canada

Kansas City, Missouri

Salina, Kansas

Mount Orab, Ohio

McPherson, Kansas

Wytheville, Virginia

Sabetha, Kansas

Cincinnati, Ohio

Batesville, Indiana

Sydney, Ohio

Headquartered in Batesville, Indiana, USA

Our Corporate headquarters is in Batesville, Indiana, in a facility that we lease. We own or lease several manufacturing and assembly plants, warehouse distribution centers, service centers, and sales offices located all over the world. The map (above) shows our major operations.

Advanced Process Solutions (APS) Major Operations Excluding warehouse distribution centers, service centers, and sales offices.

Molding Technology Solutions (MTS) Major Operations Excluding warehouse distribution centers, service centers, and sales offices.

				Osnabrück, Germany
Peterborough, UK					Stuttgart, Germany
Baden-Baden, Germany						Baienfurt, Germany
Montaigu, France						Sasovice, Czech Republic
			Niederlenz, Switzerland

Nanjing, China Kunshan City, China

Ahmedabad, India

Coimbatore, India

2023 SUSTAINABILITY REPORT

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ABOUT		GOVERNANCE		OUR PEOPLE		ENVIRONMENT, HEALTH,		INNOVATION		SUPPLY CHAIN
HILLENBRAND				AND SAFETY

AWARDS AND	Hillenbrand and its Operating Companies (the "Company") prioritize collaboration to Win As
RECOGNITION	We are proud to share the accomplishments of both our teams and leaders.
	One. We see our diverse, global teams achieving more together than they could individually.

SERVING OUR STAKEHOLDERS

INDICES

In 2023, Hillenbrand improved its MSCI ESG Rating to AA from A. This rating places us among the top performers in environmental, social, and governance practices in the industry.

Since February 2022, Hillenbrand has received a "1" (the highest score) on ISS' Governance QualityScore.

Kim Ryan, President & CEO, Hillenbrand- Recognized as one of the region's most influential business leaders on Cincinnati Magazine's Cincinnati 300 list.

She was also named to the Indianapolis Business Journal's inaugural Indiana 250, a list of the state's most influential and impactful business and community leaders.

Hillenbrand is a signatory of the Women's Empowerment Principles and United Nations Convention against Corruption, UNCAC.

Hillenbrand was named as a finalist in the 2023 Reuters Responsible Business Awards in the category of Purpose- Driven Consumer Communications for our work to integrate our Purpose to

Shape What Matters For Tomorrow throughout our organization.

Readers of Kunststoff Magazin, a leading German-language trade journal for the plastics industry, recognized the ZS-B MEGAfeed side feeder as one of the best products of 2023, selecting the innovative development from 40 nominations, and awarding it 3rd place in the Peripherals category. Coperion also won the Stuttgart Innovation Award 2023 for the side feeder. See more on page 41.

Mold-Masters received an award of distinction from Targi Kielce during PLASTPOL, the 27th International Fair of Plastics and Rubber Processing for the innovative M3 Temperature Controller, a full-featured controller platform with wireless and other revolutionary technologies.

Pam Manis, IT Director at Mold-Masters and DME, received the LGBTQ+ Leadership Award from the Ohio Diversity Council for her leadership in fostering a more inclusive workplace for our LGBTQ+ associates and allies. Pam founded the HI Pride Business Resource Group (BRG).

Associates at Baker Perkins, a FPM company, recently earned five finalist nominations and two wins in the Peterborough Telegraph Apprenticeship Awards 2023. Rhys Ockwell won Engineering Apprentice of the Year, and Nigel Wilkinson won Mentor of the Year.

2023 SUSTAINABILITY REPORT

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02	ABOUT		GOVERNANCE
		HILLENBRAND
		GOVERNANCE

OUR PEOPLE

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION

SUPPLY CHAIN		SERVING OUR		INDICES
	STAKEHOLDERS

NOTE FROM OUR GENERAL COUNSEL AND SECRETARY

Governance is at the foundation of our Sustainability program. The strong rules and ethical standards that guide our performance and decision-making are critical enablers for maintaining trust with our stakeholders. Within our Governance working group, we have cross-functional teams that align compliance, risk, and stakeholder engagement. In addition, our sustainability strategy is reviewed quarterly with our Board of Directors ("Board") and aligns with our commitment to delivering value to our shareholders.

We believe our progress is possible only because of our unwavering dedication to conducting business with the highest standards of integrity and transparency, protecting data and information, ensuring human rights, fighting corruption, and maintaining our commitment to continuous improvement. While the Board works to ensure that Hillenbrand remains a sustainable, ethical, and

profitable enterprise, it is the daily actions of our associates in offices and manufacturing facilities around the world that make it possible. I appreciate the continued support of our organization and its steadfast commitment to our stakeholders as we work to positively impact the world around us.

Sincerely,

Nicholas R. Farrell

Senior Vice President, General

Counsel and Secretary

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ABOUT		GOVERNANCE		OUR PEOPLE
HILLENBRAND

HOW WE THINK ABOUT SUSTAINABILITY

ENVIRONMENT, HEALTH,

AND SAFETY

INNOVATION		SUPPLY CHAIN		SERVING OUR		INDICES
		STAKEHOLDERS

	Environment	Our People	Governance
5
"high" "very

Since the inception of our Sustainability program, Hillenbrand has been committed to positively impacting the environments in which we operate through

our people, products, and partnerships. Following our commitment to the UNGC in 2019, we formally established our program with the publication of our 2020 Sustainability Report and have released a new report every year since.

Each report further emphasizes our commitment to heightened transparency, showcasing our progress around key metrics and the evolution of our sustainability strategy. Our strategy is a combination of best practices from our Operating Companies and key functions, paired with valuable insights we have gathered from stakeholder feedback and comparisons with peers, industry, and regulatory trends. We aim to build sustainability in our business decisions, as we believe this approach not only benefits our stakeholders but also boosts long-term shareholder value.

DOUBLE MATERIALITY ASSESSMENT1

To ensure our strategy aligns with our stakeholders' expectations, we engage with key stakeholders to identify the significant topics that should be our primary focus.

While we formally engaged our stakeholders in 2019 through a materiality assessment, we believe it is best practice to continue to assess key parties every few years to ensure our focus is providing value to our stakeholders. In 2023, we recognized that the evolving geopolitical landscape and significant changes to our portfolio would require us to reassess these material topics. We also became aware of the growing need to address the requirements set by the European Commission's Corporate Sustainability Reporting Directive and other regulations and engaged an independent consultant to conduct our first "double materiality" assessment. Conducting this type of assessment also meets or exceeds the standards required for the International Sustainability Standards Board, the Sustainability Accounting Standards Board (SASB), and the Global Reporting Initiative (GRI).

A traditional materiality assessment evaluates the materiality of sustainability topics from a single perspective, asking only which topics are most material to Hillenbrand. In contrast, a double-materiality assessment also evaluates the Company's impact on the world. This is done from two perspectives, the impacts of people, the economy, and the environment on the value of the Company, and the Company's impact on people, the economy, and the environment, including impacts on human rights. Using this dual lens has allowed us to collect new insights into key sustainability topics, and the results have enabled the continued evolution of our Sustainability strategy.

to high"

Environment

4

Business Ethics

Employee

Cybersecurity

Health &

Supply Chain Management

Safety

Waste

Product

Innovation

People,

3

Diversity. Equity, Inclusion

Economy,

Community Engagement

Climate Change

2

Energy

Impact on

1

"high" to

"very high"

0

1

2

3

4

5

Impact on Hillenbrand

1. The use of "material" or "materiality" in this report is not related to, or intended to convey, matters or facts that could be deemed "material" to a reasonable investor as referred to under U.S. securities laws or similar requirements of other jurisdictions.

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