Hillenbrand : 2024 Sustainability Update

Published: 2025-05-14 08:47:12 ET HI

Published on 05/14/2025 at 08:47

2024

SUSTAINABILITY UPDATE

This abbreviated report offers Hillenbrand's Fiscal Year 2024 sustainability data and a restatement of 2022 and 2023 data, except where noted, to reflect the shift from calendar year to fiscal year (September 30) reporting. Hillenbrand expects to publish its full Sustainability Report further aligning to European Sustainability Reporting Standards (ESRS) at the end of CY 2025.

WELCOME MESSAGE FROM OUR PRESIDENT AND CEO

Dear Stakeholders,

I'm pleased to share an update on our 2024 sustainability performance and highlight key accomplishments featured in this year's disclosures. We are providing this

abbreviated, data-focused report to continue our transparency and progress as we begin to align to the Corporate Sustainability Reporting Directive (CSRD). We expect to file our full Sustainability Report by the end of the 2025 calendar year.

CSRD and other sustainability-related regulations require that we adjust our reporting to align our data to our fiscal year, which runs

from October 1 to September 30 and has a different reporting timeline. This will ensure our sustainability reporting aligns with our financial data and the upcoming regulatory timelines.

Our teams are continuously refining our data and positioning us to meet the evolving regulations. As a result of these efforts, we published three new disclosures in 2024. In May, we published a report on Canada's Forced Labour Act, a new disclosure in compliance with Bill S-211. In October,

we published our inaugural Task Force on Climate-Related Financial Disclosures (TCFD)report, demonstrating our commitment to transparency and our progress in addressing climate change, and further preparing us for regulatory frameworks that use TCFD as a baseline. At the end of the year, we published our first LkSG report, in compliance with the German Supply Chain Due Diligence Act. These disclosures support our continued progress toward CSRD alignment.

Through the data disclosed in this report, we reaffirm Hillenbrand's commitment to the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment, and Anti-Corruption.

We are dedicated to integrating these principles and the U.N. Sustainable Development Goals (SDGs) into our business, culture, and daily operations.

Our commitment is more than a statement - it's a daily practice that reflects our Purpose to Shape What Matters For Tomorrow. I am particularly proud to share that in December, Hillenbrand was recognized as one of America's Most Responsible Companies - a testament to our efforts in advancing sustainability practices. This recognition not only highlights our commitment to transparency but also aligns with our valued customers' expectations.

Our entire team has a role in upholding our commitments to monitor and address human rights and environmental risks within our supply chain. The progress we have made is a direct result of the dedication of our associates worldwide, the partnerships with our supply chain, and the trust our customers place in our comprehensive solutions to their most challenging processes.

Thank you for your interest in this year's update, and a special thank you to our teams, who make meaningful contributions to our company every day, by being an integral part of Hillenbrand's sustainability journey.

Sincerely,

Kim Ryan

President and Chief Executive Officer

2024 SUSTAINABILITY UPDATE 2

Governance

HILLENBRAND AT A GLANCE1

Listed NYSE: "HI"

•~8,500+ associates

•60+ global locations

•$2.7 B combined net revenue2

All figures on this page as of 9/30/24 and exclude the Milacron injection molding and extrusion ("Milacron") business. In March 2025, Hillenbrand sold its majority ownership stake in Milacron. All data presented in this report is on a FY basis, except where noted. FY 2024 data presented in this report excludes Milacron. FY 2022 and 2023 data for Energy & Emissions and Water & Wastewater also excludes Milacron.

As of 9/30/24, excluding Milacron. Combined net revenue is a non-GAAP financial measure. See appendix for GAAP reconciliation.

2024 SUSTAINABILITY UPDATE 3

Environment, Health and Safety

ENERGY USE

FY221

FY232

FY243

Energy (GJ) by Type

Electricity (total)

254,287

259,570

251,276

Electricity from Renewable Sources

35,382

47,996

47,432

Percentage of Electricity from Renewable Sources

14%

18%

19%

Natural Gas

141,014

139,932

128,846

Gasoline4

7,338

7,415

7,580

Diesel (total)

8,218

9,196

11,814

Diesel from Renewable Sources

750

927

1,136

Propane

1,535

1,879

2,136

Kerosene

3,531

3,514

2,212

Biomass Byproduct

918

Residual Fuel Oil

259

Purchased Heat & Steam

3,932

4,237

4,499

Energy (GJ) by Region

North America

201,815

212,053

194,225

From Renewable Sources

255

280

Europe

149,185

141,210

135,694

From Renewable Sources

36,010

43,222

42,758

Asia

68,855

73,364

78,628

From Renewable Sources

5,447

5,529

South America

Total Energy Use (GJ)

Energy (total)

419,855

426,661

408,622

Energy from Renewable Sources

36,132

48,923

48,568

Percentage of Energy from Renewable Sources

11%

12%

Total Energy per Revenue (M USD)

181

151

128

Unless otherwise stated, FY22 data and associated normalizations represent 100% of Company's manufacturing sites and reflect the current state of our operations, excluding divestitures and including acquisitions. Due to the timing of acquisitions, some Q1FY22 data has been estimated.

Unless otherwise stated, FY23 data and associated normalizations represent 100% of Company's manufacturing sites and reflect the current state of our operations, excluding divestitures and including acquisitions.

Unless otherwise stated, FY24 data and associated normalizations represent 100% of Company's manufacturing sites and reflect the current state of our operations, excluding divestitures and including acquisitions. In line with the Greenhouse Gas Protocol, we define the reporting boundary for our climate-related impacts in terms of operational control.

Includes ethanol, petrol, and liquified petroleum gas.

2024 SUSTAINABILITY UPDATE 4

Environment, Health and Safety

SCOPE 1,2,3 EMISSIONS

FY221

FY232

FY243

Scope 1 GHG Emissions

8,380

8,442

7,938

Scope 2 GHG Emissions (location-based)

26,326

26,829

26,350

Scope 2 GHG Emissions (market-based)

25,621

24,917

24,441

Scope 1 GHG Emissions per M Working Hours

415

410

476

Scope 2 (market) GHG Emissions per M Working Hours

1,270

1,209

1,466

Scope 1 GHG Emissions per Revenue (M USD)

Scope 2 (market) GHG Emissions per Revenue (M USD)

Scope 3 Emissions

28,825,871

22,632,308

10,742,299

Category 14

608,951

610,991

604,408

Category 115

28,216,919

22,021,317

10,137,892

Scope 3 Emissions per Revenue (M USD)

12,450

8,009

3,375

WATER USE BY SOURCE

FY221

FY232

FY243

Total

Areas with Water Stress

Total

Areas with Water Stress

Total

Areas with Water Stress

Water Withdrawal (KL)

135,739

34,135

151,263

31,438

143,763

36,136

Third-party water

125,155

32,311

143,662

29,559

138,728

34,035

Ground-water

10,584

1,824

7,601

1,879

5,035

2,101

Water Discharge (KL)

142,964

24,620

136,288

33,155

Third-party water

137,221

23,779

131,508

32,107

Ground water

5,743

842

4,780

1,048

Water Consumption (KL)

8,299

6,818

7,474

2,981

Third-party water

6,441

5,780

7,219

1,928

Ground water

1,858

1,038

255

1,053

% Operations in Water Stressed Areas6

17%

Category 1 data represents 89% of all manufacturing sites by energy footprint, excluding divestitures and including acquisitions. Emissions were estimated using emissions factors from an Environmentally Extended Input-Output database and spend on purchased goods and services across 85% of the organization.

Category 11 data represents 80% of all manufacturing sites by energy footprint, excluding divestitures and including acquisitions. Emissions were estimated using total annual electricity consumption and average lifespan of each product. Electricity consumption was multiplied by a global and U.S. average emissions factor, depending upon where the majority of products were sold. FY22 and FY23 includes CY data as a proxy only where FY data was unavailable.

Water stress was assessed using the World Resources Institute Aqueduct Water Risk Atlas. Areas are considered water-stressed if they are in a region with a "High" or "Extremely High" water risk indicator.

2024 SUSTAINABILITY UPDATE 5

Disclaimer

Hillenbrand Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 12:46 UTC.