Zurn Water : ESG Report

2021 SUSTAINABILITY REPORT

S U S T A I N A B L Y I N S P I R E D

S U S T A I N A B I L I T Y R E P O R T 2 0 2 1

Table of

Contents

03 MESSAGE

	FROM OUR
	CHAIRMAN
	& CEO
06	ABOUT ZURN
	WATER SOLUTIONS
	AND THIS REPORT
08	Mission, Vision and Values
Sustainability Pillars
10	Environmental, Health and
Safety Vision and Playbook
15	Looking Ahead

11	About this Report

17	ENVIRONMENT
19	Sustainably Inspired
Products
28	The Zurn Environmental
Management System

31	HEALTH & SAFETY
32	Product Safety
35	Safety in Our Facilities
40 Associate Wellness

41	PEOPLE
43	Employee Engagement
45	Talent Management,
Training and Development
49	Diversity and Inclusion

51 COMMUNITIES

52	Corporate Giving

Associate Giving and

56 Volunteerism

58	GOVERNANCE & ETHICS
60	StructureCorporate Governance
61	Responsibility for ESG
63	Compliance and Ethics
65	Responsible Sourcing
66	Supplier Code of Conduct
67	Supplier Quality and
Development Program

69 ESG CONTENT

INDEX

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Message from Our Chairman and CEO

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An Inherently Sustainable Company

The year 2021 was momentous for our company, as we completed the spin-off of our Process & Motion Control business and changed our name from Rexnord Corporation to Zurn Water Solutions Corporation (Zurn Water Solutions). Doing the Right Thing has long been one of our guiding principles; becoming a pure-play water management company only strengthens our ability to grow both as a water business and as a leader in sustainability.

Effective, safe and efficient water management is an essential component of sustainability. For more than a century, we've developed solutions that help manage this most-important natural resource - water. Our products contribute to sustainability in a myriad of other ways as well. We design products that reduce energy consumption, as well as help to mitigate the impact of climate change. Our roof drains help address the increased risk of heavy rain and flooding; our pressure-reducing valves, automatic control valves and touchless fixtures help reduce water usage to offset water scarcity and the ever-increasing impact of droughts; and our energy-efficient hand dryers eliminate the need for paper towels, helping prevent deforestation that contributes to climate change.

Human health is another key component of our sustainability focus. Our BrightShield suite of touchless and hygienic solutions help to fight the spread of COVID-19, bacteria and other germs. Our backflow preventors protect water quality and prevent water- borne illnesses by keeping unclean or contaminated water out of drinking supplies. Our acid neutralization cartridges and tanks enable laboratories and research facilities to discharge wastewater safely. And our suite of interceptor products helps restaurants, car washes, auto repair shops and other facilities keep fat, grease, oil, and other waste out of the public sewage system, protecting sewage treatment plants that are vital for maintaining healthy communities.

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Message from Our

Chairman and CEO

Strengthening Our Commitment to ESG

Operating as a pure-play water management company grants us greater flexibility and focus in pursuing our mission, enables us to provide even greater support and incentives to our associates and communities, and presents new opportunities to embed ESG (Environmental, Social and Governance) principles and practices into every aspect of our business. We organize our ESG efforts around five pillars of sustainability: environment, health & safety, people, communities and governance & ethics.

An engaged board-level committee oversees our ESG work. This committee has led us in developing and publishing specific ESG related targets, including commitments to reduce greenhouse gas (GHG) emissions and energy use and goals for diversity among leadership and suppliers, all of which are described in this report. We have provided 1% of company time for associate volunteerism and renewed our philanthropic commitment, including setting a $5 million giving target by 2024. We have joined the UN Global Compact, a voluntary initiative that reaffirms our commitment to universal principles on human rights, labor, anti-corruption and the environment. Our mission at Zurn Water Solutions aligns directly with UN SDG Goal 6: to ensure availability and sustainable management of water and sanitation for all. And Zurn has implemented new governance

policies that reflect our commitments, with streamlined reporting that provides increased transparency for our shareholders and other stakeholders.

Looking Ahead

We are pleased that our ESG efforts are being recognized. Our scores with third- party ESG ratings agencies such as Sustainalytics and MSCI ESG improved in 2021, Newsweek recently named Zurn Water Solutions one of America's Most Responsible Companies for the second year in a row, and we were named one of USA's Top Workplaces in February of 2022.

We recently introduced an employee-led social impact fund to provide resources for associate ideas that advance our sustainability efforts. We know that the best and most innovative ideas come from our associates and we are ready to fund those ideas.

We are excited to build on this momentum in the years to come as we strive to realize our potential as an inherently ESG-focusedcompany.

Sincerely,

Todd A. Adams

Chairman and CEO

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S U S T A I N A B I L I T Y R E P O R T 2 0 2 1

100%			$2M	34B		83
		Foundation
			donation to the Zurn
of associates	25%		gallons of water saved
participate in long-		by our engineered	Associate Inclusion Index
	score in 2021, ahead of
term incentive		products this year, about
programs	increased associates' paid time		as much as Wisconsin	the industry average
		score 70
	for company-sponsored		uses in 2 months
	volunteer events,	from 16 hours
			30%
	to 20 hours annually				5
				2021	of our sales come
				from products that
136				promote hygiene and	Board oversight
			committees including
			keep people safe
			by the			ESG with
associate promotions					3 of 8
which is more than	$5M		Numbers		diverse independent
10of total%
spent in 2021 doing business
	directors
associates	with suppliers owned by
	women, minorities,			Zurn touchless hand
	veterans, LGBTQ, or			dryers replace over
	HUBZone locations			5B
		+90%		paper towels per year
work for Zurn Water		and save over		pillars
Wellness Program		200,000
84%		of our U.S. workforce	70%			5
of associates are proud to	participates in our			sustainability
Solutions				trees per year
			of our revenue

from sustainable products in 2021

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