Managing ESG
Key internal and external stakeholder groups inform our prioritization and approach to ESG topics. Our primary stakeholders include:
61%
In 2024, we engaged with shareholders representing over 61% of Lincoln Electric's outstanding shares.
Shareholder Engagement
We seek constructive discussions with shareholders and maintain an active investor relations program to nurture long-term relationships with the investment community. During 2024, we met with 180 investment firms, which included shareholders representing over 61% of our outstanding common shares and over 105 prospective firms. As part of our investor outreach, we engaged in a perception study to gauge awareness and alignment with our Higher Standard 2025 Strategy, and we invited stewardship teams from shareholders representing over 50% of outstanding common shares to discuss sustainability matters. As part of our shareholder engagement, we provide broad access to company representatives beyond our Chair and CEO, CFO, and IRO, including our Lead Independent Director, General Counsel and Secretary, members of our executive leadership team, our Vice President of Environment, Health, Safety & Sustainability, as well as product development and application experts from various departments. We discuss a variety of topics including business performance, strategic initiatives, innovation, corporate governance practices, corporate sustainability initiatives, executive compensation and other matters of shareholder interest.
Global Workforce & Employee Engagement
Our employees represent the foundation of our company and our future success. We engage employees through regular meetings, intranet platforms, a biennial global employee engagement survey, employee resource groups, health and safety communications and initiatives, training and development, Pulse surveys, listening sessions, local town hall meetings, global intranet and mobile app, employee wellness and assistance programs, and an ethics hotline.
Community Engagement
We are active members in the communities where we live and work. We participate in community meetings and local business associations; host plant visits; provide grants to nonprofit organizations; and donate resources and time through in-kind gifts, employee volunteerism and nonprofit Board service.
Customer Engagement
We serve an extensive global customer base, including distributors, manufacturers across an array of industries, engineering firms, metal fabrication shops, wholesalers, retailers, educational institutions and students. We engage customers through one-on-one discussions, joint development projects, our global network of 40 Application Resource Center locations, industry trade shows, surveys, seminars, and various media and social media channels.
Supplier Engagement
We engage with suppliers during the supplier development process and at conferences and associations. We work together to ensure legal compliance, ethical, safe, sustainable practices in our supply chain.
Materiality Assessment
An impact materiality assessment, conducted in 2023, has helped inform our business strategy and operations, guide our disclosure, and identify stakeholder priorities to enhance our engagement.
The process enabled us to identify known, new or emerging issues that may impact our company, and the potential impact our business and operations may have on the environment and society. The outcome of the assessment serves as the foundation of our Sustainability governance and disclosure strategy. It also enabled us to advance internal collaboration and leadership knowledge.
In 2024, we began a double materiality assessment in preparation for European Corporate Sustainability Reporting Directive (CSRD) requirements. This assessment aligned with the results of the 2023 impact assessment illustrated to the right
TOP-RATED TOPICS/ISSUES
| Material Topic | Description |
|---|---|
| Climate Risks & Management | The physical and transition impacts, risks and opportunities presented by climate change and the transition to a low-carbon economy, as well as governance systems to manage climate-related risks and opportunities. |
| Transition to Renewables | The transition from a predominantly fossil-based energy production system and consumption to renewable and alternative energy sources, including policies, goals, accounting instruments and technologies that facilitate that transition. |
| Customer Privacy/Data Security | The aspect of information technology that deals with the protection of private corporate information, critical information systems and networks from security breaches. |
| Employee Health/Safety | A company's safety performance and the mechanisms in place to maintain a safe and healthy workplace environment. It captures protocols, training, work arrangements and the physical and mental working conditions to which employees are exposed. |
| Ethical Corporate Behavior | The moral code of conduct and guiding principles to the strategic and operational management of a business. It captures the management of risks and opportunities associated with ethical considerations, lawful behavior and compliance practice. |
| Waste & Haz. Materials Management | The gaseous, liquid and solid substances used or disposed of in business operations or present in products may threaten human health or the environment. Captures the generation, treatment, recovery, recycling and reduction of hazardous and non-hazardous waste. |
| GHG Emissions | Greenhouse gas emissions that an organization generates from activities under its control (Scope 1), from the energy it uses and purchases (Scope 2), and from business-related activities that are created from sources outside its ownership and control (Scope 3). It further captures disclosures on GHG emissions reductions and efficiencies, as well as smarter and eco-friendly transportation systems, infrastructure planning, and logistics management. |
| Energy Management | The company's management of its energy consumption, production, and recovery. |
| Workforce Management | The process of ensuring the workforce is functioning at its most productive levels and copes with organizational changes. It captures employee recruitment, retention and development practices. |
| Employee Diversity and Inclusion | The processes and mechanisms a company has to grow and maintain diversity in the workforce and ensure equal opportunities and treatment for all employees. |