Managing ESG
In support of the United Nations 2030 Agenda for Sustainable Development, and as part of our 2025 Higher Standard Strategy, we integrate sustainability into our operations, product, and community engagement initiatives. The table below illustrates how our efforts align with the UN Sustainable Development Goals (SDGs):
| 2025 Higher Standard Strategy Goals | UN SDG |
|---|---|
| Customer Focus | |
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Invest in our network of 41 international Application Resource Center (ARC) locations, which provide an interactive educational and collaborative space to showcase Lincoln Electric's unique solutions and application expertise to help customer's drive greater operational excellence in their fabrication processes. Mature a global customer relationship management platform with enhanced account data, functionality, and solution information to make it easier for customers to do business with us. |
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| Solutions & Value | |
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Invest approximately 2% of our revenue in research and development (R&D), including investments in new solutions and engineering expertise to support the infrastructure and energy end markets—like our automated 3D plasma and welding solutions for structural steel fabrication; our HyperFill® solution for more efficient production of earth-moving/construction equipment; and our Long Stick Out (LSO) solution for wind turbine fabrication. Maintain a leading new product Vitality Index score, which is a measure of our innovation and commercial success—calculated as the percentage of annual sales from new products launched within the last five years. In 2022, our Vitality Index was 37% for total sales and 57% for equipment. |
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| Employee Development & Engagement | |
| Work toward greater gender parity and ethnic diversity in our workforce. As of 2022, 21% of our global workforce identifies as female, and three of our 10 Board directors are women. |
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| Introduce career development opportunities by offering an industry-leading tuition reimbursement program with a new $125,000 student loan forgiveness option (US only). |
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| Continue to support our communities through philanthropy, led by grants, scholarships and a U.S. matching program provided by the Lincoln Electric Foundation, as well as in-kind gifts provided by Lincoln Electric businesses globally. Our Foundation giving themes center on alleviating poverty and illness, promoting access to education with emphasis on STEM, supporting health and human services, and bringing cultural vibrancy to our communities. |
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| Operational Excellence | |
| Prioritizing the health and safety of our workforce and communities by reaching a 52% reduction in safety incidents by 2025 (vs. 2018 baseline). | |
| Reducing water consumption across our operations by 14% by 2025 (vs. 2018 baseline). |  |
| Making significant waste reductions across our operations and achieving a recycling rate of 80% and a landfill avoidance rate of 97% by 2025. |  |
| Reducing our greenhouse gas emissions by 10% by 2025 (vs. 2018 baseline). Reducing our energy intensity by 16% by 2025 (vs. 2018 baseline). |  |