Honeywell International : Report on Due Diligence Processes to Identify and Address Environmental and Social Risks

HONEYWELL'S DUE DILIGENCE PROCESSES TO IDENTIFY AND ADDRESS ENVIRONMENTAL AND SOCIAL RISK

Updated April 12, 2022

TABLE OF CONTENTS

Letter from the Lead Director .......................................................................................... 3

Health, Safety, and the Environment ............................................................................. 5

Honeywell's Environmental and Social Due Diligence Processes ........................................................ 6

Plan-Do-Check-Act Management System ................................................................................................................................... 6

Process for Identifying Risks ................................................................................................................................................................. 6

Processes for Addressing Risk ............................................................................................................................................................... 7

Addressing Risk in the Value Chain ................................................................................ 9

Legacy Operations ............................................................................................................. 10

Communications and Stakeholder Engagement: .................................................................................................................... 11

Processes and Principles: ..................................................................................................................................................................... 11

Onondaga Lake, Syracuse, New York .............................................................................................................................................. 14

Other Sites of Interest ............................................................................................................................................................................. 22

LETTER FROM

THE LEAD DIRECTOR

Honeywell believes that responsible corporate citizenship requires robust and core processes to identify, thoroughly assess, mitigate, and then monitor the potential environmental and social impacts of our operations and legacy sites.

The Board of Directors is responsible for overseeing and guiding Honeywell's management team to ensure it operates in the best long-term interests of its stakeholders. The Board's Corporate Governance and Responsibility Committee (CGRC) provides oversight and thought leadership with respect to the company's role as a responsible corporate citizen and has specific oversight responsibility with respect to health, safety, and environmental matters.

Honeywell takes seriously its commitment to corporate social responsibility, protection of the environment, and creation of sustainable opportunity everywhere it operates. This commitment underlies the principle that good business, economic growth, and social responsibility work together. Honeywell's ESG initiatives are aligned with the company's long-term strategy, both informing and supporting Honeywell's strategic plans. This alignment emerges from the inclusion of Environmental and Social (E&S) considerations in scenario planning and other strategic processes where E&S-related business risks and opportunities are identified and addressed.

The Board's engagement and oversight extends to the E&S impact of our operations in four principal ways:

• • The CGRC has primary jurisdiction for managing risks and opportunities associated with E&S, meeting regularly with the Chief Sustainability Officer, the Senior Vice President for Government Relations, the Senior Vice President and Chief Human Resources Officer and other leaders with responsibility for E&S to review and discuss various E&S topics.

• • The Management Development and Compensation Committee (MDCC) takes into account performance on ESG matters, including health, safety, environmental, and inclusion and diversity, when making compensation decisions.

• • Direct CGRC, Audit Committee and Board engagement with E&S risk areas through a robust and comprehensive Enterprise Risk Management (ERM) program. ERM is a key tool for understanding the range of risks facing Honeywell and assessing whether management's processes, procedures, and practices for mitigating those risks are effective. The ERM assessment deployed by management is robust, based on both an enterprise-wide "top down" and "bottom up" view of a comprehensive set of risk factors, and an assessment of the strategies that are in place to mitigate those risks. Key to the ERM program is a commitment to identify and address environmental and social impacts of ongoing operations and legacy responsibilities.

• • Direct Board engagement on select E&S topics. In the past 12 months, management has presented to the Board on a variety of E&S initiatives such as inclusion and diversity, safety, business resiliency, and environmental matters.

• • Feedback from engagement with shareowners. The Board values shareowners' perspectives on corporate responsibility and sustainability, and the company (oftentimes with our Lead Director, MDCC Chair, or CGRC Chair) engages directly with shareowners throughout the year to discuss activities, goals, and achievements in these areas and to hear shareowner's views and suggestions so that the feedback can be provided to directors.

The attached report describes Honeywell's detailed processes to address the E&S impacts of its current operations and legacy sites and to manage all aspects of potential impacts to the surrounding community while ensuring community engagement. For ongoing operations, the report describes Honeywell's Plan-Do-Check-Act process, which explicitly requires community outreach. The report also describes the robust communication principles that underpin the company's proactive process for identifying, assessing, and addressing legacy contamination at our former sites with a view toward creating new assets aligned with community priorities where practicable.

Our track record shows strong management of our environmental footprint and how we positively impact the world through our operations, our revitalization of legacy properties, and our products.

Scott Davis

Lead Director

HEALTH, SAFETY, AND THE ENVIRONMENT

Honeywell has implemented a health, safety, and environmental program to identify and address the environmental and social impact of our operations on the surrounding communities and ensure compliance with regulatory standards.

The Health, Safety, Environment, Product Stewardship, and Sustainability (HSEPS) organization, led by our Chief Sustainability Officer, comprises functions focused on workplace safety and health, environmental performance, regulatory compliance, and risk, including risk related to climate change. Honeywell's commitment to health, safety, and the environment is outlined in our Sustainable Opportunity Policy.

Health, safety, and environmental considerations are embedded into every operation within Honeywell via our comprehensive management system based on recognized third-party standards, including ISO 14001 (the international standard that specifies requirements for an effective environmental management system) and ISO 45001 (which specifies requirements for an occupational health and safety management system), as well as industry best practices. All Honeywell sites are required to implement an HSEPS Management System founded on common core principles.

Our HSEPS practices are managed by a global team of more than 800 trained professionals with extensive knowledge and hundreds of years of collective experience in occupational health, chemistry, hydrology, geology, engineering, safety, industrial hygiene, materials management, energy efficiency, and stakeholder engagement.

The HSEPS Management System under which each of our facilities operates follows a Plan-Do-Check-Act approach for identifying and addressing the potential environmental and social impacts of our operations and ensure compliance with regulatory standards:

• • Plan. 360-degree assessment of all aspects of the operation that could result in environmental or social harm (Aspects). The assessment requires evaluation of internal and external stakeholders, including employees and community members.

• • Do. Implement training, internal and external communication, operational controls, emergency preparedness, and response planning to ensure that the facility and its stakeholders have the competency needed to address impacts and ensure compliance.

• • Check. Conduct self-assessments, audits, and management reviews to evaluate measures taken to plan for and control potential environmental or social harm.

• • Act. Requirement to address all findings by developing and tracking corrective actions, and regularly review the HSEPS Management System program for potential improvements.

Honeywell's HSEPS Management System encompasses 18 core standards that require the company's businesses to identify HSEPS Aspects, legal requirements, and goals; set clear objectives for improvement; and maintain programs designed to achieve those objectives. In addition, Honeywell has developed detailed operational controls in approximately 90 specific areas that prescribe required management elements. All Honeywell facilities are required to comply with both these operational controls and any applicable legal requirements. Areas