Tennant Company 2015 CDP Supply Chain Response...The APPLAUSE program rewards employees for going above and beyond their assigned duties or tasks. One APPLAUSE award category is 'Stewardship,

Tennant Company 2015 CDP Supply Chain Response

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CDP CDP Supply Chain 2015 Information Request

Tennant Company

Module: Introduction

Page: Introduction Supply Chain

Climate change

Please tick the box below to complete the introduction questions for Climate Change

true

CC0.1

Introduction

Please give a general description and introduction to your organization. Tennant Company, a Minnesota company that was founded in 1870 and incorporated in 1909, is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. The Company’s floor maintenance and outdoor cleaning equipment, chemical-free and other sustainable cleaning technologies, coatings and related products are used to clean and coat surfaces in factories, office buildings, parking lots and streets, airports, hospitals, schools, warehouses, shopping centers and other retail environments, and more. Customers include building service contract cleaners to whom organizations outsource facilities maintenance, as well as end-user businesses, healthcare facilities, schools and local, state and federal governments who handle facilities maintenance themselves. The Company reaches these customers through the industry’s largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide. The Company offers products and solutions mainly consisting of mechanized cleaning equipment, chemical-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings, and business solutions such as financing, rental and leasing programs. The Company offers their water-based sustainable cleaning innovation, ec-H2O NanoClean™, on walk-behind and rider scrubbers. The Company’s suite of offerings are marketed and sold under the following brands: Tennant®, Nobles®, Green Machines™, Alfa Uma Empresa Tennant™ and Orbio®. The Orbio brand of products and solutions is developed and managed by Orbio Technologies, a group created by the Company to focus on expanding the opportunities for a category of sustainable On-Site Generation (OSG) technologies that create and dispense effective cleaning and antimicrobial solutions on site


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within a facility. The Company's principal markets include targeted vertical industries such as retail, manufacturing/warehousing, education, healthcare and hospitality, among others. The Company sells products directly in 15 countries and through distributors in more than 80 countries. The Company serves customers in these geographies via three geographically aligned business units: The Americas, which consists of North America and Latin America; EMEA, which consists of Europe, the Middle East and Africa; and APAC, which consists of the Asia Pacific region. Form 10-K (Annual Report) Filed 02/27/15 for the Period Ending 12/31/14 is attached.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day/month/year (in full i.e. 2001).

Enter Periods that will be disclosed

Wed 01 Jan 2014 - Wed 31 Dec 2014

Tue 01 Jan 2013 - Tue 31 Dec 2013

Sun 01 Jan 2012 - Mon 31 Dec 2012

CC0.3

Country list configuration

Please select the countries for which you will be supplying data.


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Select country

Australia

Belgium

Brazil

Canada

China

France

Germany

Japan

Netherlands

Spain

United Kingdom

United States of America

Rest of world

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

CC0.5

Please select if you wish to complete a shorter information request.

Water


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Please tick the box below to complete the introduction questions for Water

false

Further Information

Tennant Company 2014 10-K Report is attached

Attachments

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/Introduction/2014 Tennant 10-K.pdf

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Senior Manager/Officer

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

The Director, Sustainable Enterprise, is responsible for sustainability within Tennant Company. Areas of specific responsibility include the company's Greenhouse Gas (GHG) Emissions. The Director, Sustainable Enterprise reports to the President and Chief Executive Officer.


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CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Environment/Sustainability managers

Monetary reward

Emissions reduction project Emissions reduction target

The Director, Sustainable Enterprise and Senior Sustainability Manager have performance goals tied to: a) overall Sustainable Enterprise strategy; and b) specific projects in the four Sustainability Enterprise Focus Areas. One Focus Area is GHG Emissions/Energy. Performance goals are defined annually and reviewed at least quarterly. In 2013, performance goals were tied to completing materiality analysis workshops, updating the sustainability strategy, and developing quantitative objectives, goals, and metrics. In 2014, performance goals were tied to finalizing the objectives, goals, and metrics; beginning to embed sustainability into company operating policies/practices and decision making frameworks; and rolling out the new sustainability strategy globally. An example project from 2014 is revising the New Product Development Process to include setting customer use-phase environmental impact reduction targets within the process.

All employees Monetary reward

Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target

The APPLAUSE program rewards employees for going above and beyond their assigned duties or tasks. One APPLAUSE award category is 'Stewardship,' Tennant Company's Core Value. We define Stewardship as leaving things in better condition than when we found them. In 2014, more than 200 employees received monetary rewards for Stewardship via APPLAUSE. Two employees received APPLAUSE rewards for working with suppliers to reduce shipping frequency. Results of these efforts include cost savings and inbound transportation GHG Emissions reduction. One employee received an APPLAUSE reward for volunteering his time, along with company vehicle and large trailer, to deliver equipment to a trade show. If this employee had not volunteered, the sales representative would have required 5-6 round trips to deliver the equipment. A significant fuel savings resulted.


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Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Behaviour change related indicator

Another employee received an APPLAUSE reward for embedding GHG Emissions/Energy consideration into the Annual Operating Plan framework for Capital Equipment. Embedding this process improvement helps quantify and highlight projects with GHG Emissions reductions across the enterprise.

All employees Recognition (non-monetary)

Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Behaviour change related indicator

The annual Leading Edge program recognizes employees from across the globe who have made significant contributions towards Tennant Company’s Strategic Priorities. One Leading Edge award category is 'Stewardship,' Tennant Company's Core Value. We define Stewardship as leaving things in better condition than when we found them. Leading Edge awards have recognized employees who develop innovative products with reduced environmental footprint; minimize or reduce GHG emissions, energy consumption, and costs; reduce waste; and make positive contributions in our communities. One of the winners from the Stewardship category in the 2014 Leading Edge program is a Falkirk, Scotland Operations employee. This employee "….is always looking for ways to make improvements and contributions to the business…… Working on his own time to investigate new cutting lens for the laser, this had the impact of reducing cutting times by up to 40% on some materials." The improved laser lens increased the process efficiency and reduced electrical use per unit of production.

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a


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Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are results reported?

Geographical areas considered

How far into the future are risks

considered?

Comment

Annually Board or individual/sub-set of the Board or committee appointed by the Board

All countries in which we conduct business

> 6 years

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Risks and opportunities related to climate change are identified at the company and asset levels, as part of the annual Enterprise Risk Assessment process. Tennant Company conducts an Enterprise Risk Assessment each year involving more than 70 senior management and key employees throughout the world. The Enterprise Risk Assessment is done at the company level by a survey process which includes leaders from all business units and functions, as well as all significant sites (i.e. assets). Survey participants are specifically asked to identify the most significant risks to the organization using a methodology provided by our Internal Auditor firm. The prior year risk profile is provided to participants, along with risk assessment criteria, and examples of Strategic, Operations, Compliance, and Financial risks. Climate change risks & opportunities are identified and embedded within several risk/opportunity categories. These include Business Continuity Planning, Product Regulatory Compliance, and Product Development. Within Business Continuity Planning we assess the risks associated with extreme weather that could adversely impact our facilities, employees, supply chain, etc. Within Product Regulatory Compliance we assess the risks and opportunities related to changing regulations that could impact batteries, engines, and other items used in our products, along with emissions from the products. Within Product Development we assess the risks and opportunities around Tennant’s commitment to industry innovation leadership and providing products that clean in a more sustainable, environmentally-friendly manner. The prioritization process includes consideration of timing of regulatory and other changes, along with cost benefit analysis models to optimize risk mitigation.

CC2.1c

How do you prioritize the risks and opportunities identified?


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The Tennant Risk Committee reviews our annual Enterprise Risk Assessment survey results, including prioritization & comments provided by all participants, to determine risk prioritization. Prioritization takes into account: 1) Impact (financial, operational/technology, disruption, compliance, & strategic/reputational perspectives); 2) Likelihood; and 3) Management Preparedness. The top ten risks are categorized as Tier 1 and other risks as Tier 2. Tier 1 risks are aligned with the appropriate senior management team member(s) and remediation/action plans are developed with a goal of mitigating risk exposures. The completed Enterprise Risk Assessment is approved by senior management, presented to and reviewed by the Board of Directors Audit Committee each December, and a copy is provided to full Board of Directors. The Enterprise Risk Assessment is then reviewed each quarter. Any significant changes in the ranking of risks, mitigation efforts, or identification of new risks are discussed with the Board of Directors Audit Committee and provided to the full Board of Directors.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Tennant Company’s Core Value is 'Stewardship,' defined as leaving things in better condition than when we found them. In 2012, we evolved our Vision to: "lead our global industry in sustainable cleaning innovation that empowers our customers to create a cleaner, safer, and healthier world." See attached Investor Presentation, pg. 4. We believe our Vision & strategies provide short & long term competitive advantage.


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i. We began to update our sustainability strategy in February 2013. Materiality workshops were held in 6 global locations. Climate change related issues were identified as risks and opportunities in each workshop. Participating in the 2013 CDP Supply Chain program was also an influential part of the strategy update process. The Sustainable Enterprise strategy was finalized in April 2014. GHG Emissions/Energy and Products are 2 of the 4 Focus Areas we identified. A target was set for Scope 1 & 2 GHG emission reduction. For Products, we now set goals for environmental impact reduction which can include Scope 3 GHG emissions. In May 2014, we began to embed detail in our business processes & decision making tools to help achieve these goals. ii. Several aspects of climate change have influenced our strategies including: 1) the need to take a long view, look at our business holistically, and commit to both long term success and quarterly earnings to maximize stakeholder value; 2) the opportunity to reduce costs via energy/fuel efficiency improvement; and 3) business opportunities from developing and commercializing sustainable cleaning innovation. iii. The most important short-term strategy component influenced by climate change is energy/fuel use & associated cost savings. We’ve implemented energy saving projects for years, but some facilities make faster progress than others. The facility with greatest efficiency gains has a highly engaged employee who drives for continuous improvement - a true efficiency 'champion.’ Developing a formal network of energy reduction ‘champions’ is an example business strategy influenced by climate change. Our goal is one key, engaged person embedded in each material GHG emitting entity. These entities include major facilities and sales/service vehicle fleets. Project planning was completed in 2014. Champions were identified for our 5 largest facilities, totaling > 45% of Scope 1 & 2 GHG emissions. In 2015, we are formalizing the process to identify & track efficiency projects - then share them across entities. In 2016, this process will be rolled out to fleets and facilities representing > 90% of Scope 1 & 2 GHG emissions. Expected project outcome is faster energy/fuel saving project identification and completion, across all entities. This strategy helps address climate change risks identified in CC5. iv. The most important long term strategy component influenced by climate change is product & technology development. 'Use of sold products' is, by far, the largest area of our Scope 3 GHG emissions. We applied significant effort to our Products Focus Area in 2014, with 1 project started and 2 completed. The first project was to embed targeting of product use-phase (Scope 3) environmental impact reductions in the New Product Development process. Product replacement cycles are long for capital goods manufacturers, so this project was given high priority. The objective is to develop products offering measurable environmental impact improvement, in one or more customer use-phase categories. The categories include GHG emission reduction. The goal for replacement products is to measurably improve, compared to the Tennant product being replaced. The goal for line extension/new-to-market products is to measurably improve, compared to competitive products. These process changes were completed in August 2014. With the formal process change, we expect to maintain or accelerate improvement in this critical Scope 3 GHG emissions category. The second project was a Life Cycle Assessment (LCA) for the T300, a product in development. T300 was launched in early 2015 and replaces T3, a high volume product. We partnered with thinkstep (formerly PEI) to perform this LCA. The objective was to identify product life cycle hotspots from cradle to grave. The project was completed in December 2014. Use-phase is dominant for all environmental impact categories, including GHG emissions. In 2015, LCA findings are being analyzed to define additional Products Focus Area objectives, goals, & metrics - if appropriate. The third project, started Q4 2014, is a value stream assessment using economic input-output LCA methodology. A materiality analysis for Scope 3 GHG Emissions was part of the project scope. A short list of potential partners and request for proposal was developed and issued in December 2014. Trucost was selected as business partner in February 2015. The assessment was completed in June 2015. High level findings are included in CC14. In Q3-4 2015, project findings will be analyzed to define additional GHG Emissions and Products Focus Area objectives and goals - if appropriate. Expected outcomes from the 3 Products Focus Area projects are: 1) reduction of GHG emissions in Scope 3, Category 11; 2) business growth; and 3) progress toward climate change opportunities in CC6.


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v. We launched a product in 2014 that continues our strategy of innovation around use-phase improvement - including GHG emission reduction. The Orbio® os3 system is an on-site generator of cleaning & sanitizing/disinfecting solutions. The os3 uses electrolysis to create the solutions. Prior to product launch, we partnered with Ecoform to perform an LCA for os3. Installation and use scenarios were developed for Rehabilitation Hospital, Community College, and 4-Year University. For these scenarios, each installed os3 avoids 19.1, 1.5, and 13.8 mT of CO2e respectively, over 5 years of use. GHG emissions avoidance is in comparison to the use of conventional cleaning chemicals. At the ISSA/INTERCLEAN® North America trade show, the os3 was honored with the 2014 ISSA Innovation Award in the Dispensers category. See LCA & ISSA award press release - attached. Development & introduction of eco-advantaged products like os3 and ec-H2O provide strategic business advantages over competitors. Since the 2008 introduction of ec-H2O, over 65,000 units have been sold to >7,500 customers at 29,000 locations. See attached product literature. Total 2008-2014 revenue from ec-H2O is $740,000,000. See attached Investor Presentation, pg. 22. vi. The most substantial business decision we've made is continuing to prioritize/invest in development and commercialization of eco-advantaged products & technology. Customer preference for solutions which help reduce their environmental impact, including GHG emission reduction, is growing. This creates demand for products providing GHG emission and other environmental impact reductions for the customer.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price of carbon?

Yes

CC2.2d

Please provide details and examples of how your company uses an internal price of carbon

In 2014 we assessed the potential financial impact of a carbon tax, at the company level. Carbon taxes exist as a mechanism to address climate change in some markets. We expect tax and other market mechanisms will be used more broadly over time, in regions and countries where we operate. A range of potential carbon tax rates was developed, based on published sources of data, including "Global corporate use of carbon pricing - Disclosures to


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investors," CDP, September 2014. The potential financial impact was discussed in: 2014 strategic planning; 2015 annual operating plan reviews; meetings with the senior management team; and meetings with other company leaders. The potential impact is greater than the Company's limit definition of financial materiality. In 2015, we plan to extend the carbon tax impact assessment to each Business Unit and functional group within the Company. The analysis will show historical potential impact in prior years 2012-2014, plus a future year forecast. We expect the outcome will be increased awareness and motivation to pursue energy and fuel use reduction initiatives.

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Trade associations Funding research organizations

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

No

CC2.3c


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Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

Yes

CC2.3e

Do you fund any research organizations to produce or disseminate public work on climate change?

No

CC2.3f

Please describe the work and how it aligns with your own strategy on climate change

CC2.3g

Please provide details of the other engagement activities that you undertake

CC2.3h

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?


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Tennant has an internal policy on Political and Public Policy Activities. Direct activities are an exception and must be reviewed and approved by the Board of Directors. It is the Company’s policy not to make direct Political Contributions and to only engage in public policy activities where there are legal and support issues that directly affect our business objectives and protect or enhance the interests of our stakeholders. The Company’s management will report any direct lobby efforts and direct Political Contributions to the Governance Committee of the Company’s Board of Directors. Indirect activities, through trade and research organizations, are consistent with our business strategies and Stewardship core value - leaving things in better condition than when we found them. Examples of trade and research organizations where we engage include Environmental Initiative, U.S. Green Building Council (National and Minnesota Chapter), several MAPI councils including the Sustainability Council, Twin Cities Conflict Minerals Task Force, Waste Wise Minnesota, Global Environmental Management Initiative, NorthStar Initiative for Sustainable Enterprise, EUnited, the International Sanitary Supply Association, BSCAI, PRSM and CIRI (Cleaning Industry Research Initiative).

CC2.3i

Please explain why you do not engage with policy makers

CC2.4

Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit global temperature rise to under two degree Celsius from pre-industrial levels in line with IPCC scenarios such as RCP2.6?

No opinion

CC2.4a

Please describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to help deliver this agreement at the 2015 United Nations Climate Change Conference in Paris (COP 21)

The Board has not taken a position as of 31 December 2014.


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Further Information

Regarding CC2.3d, we provide a list of trade and other organizations of which we are members in our annual Corporate Sustainability Report. The 2013 CSR (and Global Reporting Initiative index) is attached. The list represents a good faith effort to identify all memberships, but may not be complete.

Attachments

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/Investor-Presentation-May-2015.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/ec-h20 nanoclean_comm brochure_tennant_5.001.007.am.en.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/2013_CSR_GRI_FINAL.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/2013_TENNANT_CSR_FINAL.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/Orbio os3 Wins ISSA Innovation Award.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC2.Strategy/os3 LCA Report Final - 10-29-14.pdf

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Intensity target

CC3.1a

Please provide details of your absolute target


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ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope

% reduction from base

year

Metric

Base year

Normalized base year emissions

Target year

Comment

Int1 Scope 1+2

100% 25% metric tonnes CO2e per unit revenue

2012 31088.8 2020

2012 base year emissions are restated at 31,088.8 mT, 4.2% lower than the 32,463 mT reported last year. We have corrected some calculations and acquired more complete utility data for some locations.

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects


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ID

Direction of change

anticipated in absolute Scope 1+2 emissions

at target completion?

% change anticipated in absolute Scope 1+2 emissions

Direction of change

anticipated in absolute Scope 3 emissions at

target completion?

% change anticipated in absolute

Scope 3 emissions

Comment

Int1 No change 0

With programs currently in place, we expect that our emissions reduction activity will proceed at a faster pace than business growth. We have not set any Scope 3 emission goals, as of 2014. We plan to do so in 2015-2016. In June 2015, we completed Scope 3 materiality and supply chain footprint analyses for our 2014 spend. These results provide the quantitative information needed to set meaningful and appropriate Scope 3 goals.

CC3.1d

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete (time)

% complete (emissions)

Comment

Int1 25% 14.3%

Progress toward the target improved in 2014, compared to 2013. For 2014, the annualized intensity decrease was 3.3%, compared to a 0.3% decrease for 2013. In 2014, two insourcing projects created a shift of 675 mT from 2013 Scope 3 to 2014 Scope 1 emissions. When this reporting boundary shift is taken into account, our standing against the target is a 5.5% decrease and "% complete (emissions)" is 22.1%.

CC3.1e

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years


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CC3.2

Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

Yes

CC3.2a

Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party

Tennant Company goods and services (products) enable our customers to avoid significant GHG emissions. Our Vision is "to become a global leader in sustainable cleaning innovation that empowers our customers to create a cleaner, safer and healthier world." Products is one of 4 Focus Areas in our Sustainable Enterprise strategy. The others are GHG Emissions/Energy; Waste; and People & Communities. Our products help customers avoid GHG emissions and other environmental impacts, in the “use-phase.” Use-phase improvement continues to be a major focus in our technology research and product development programs. We make significant investments to develop technology, products, and solutions which help our customers reduce their environmental footprint. Recent examples include ec-H2O, ec-H2O NanoClean™ (next generation technology), os3, Eco-ITS, 5000-Sc, and 500ze. Technologies and products that provide use-phase environmental improvement are intentionally prioritized through product development process governance. Our product development processes include sets of cross functional policies and practices. Overall product development is governed by R&D and Marketing leadership, key internal stakeholders, and senior leadership. In early 2014, we committed to embedding use-phase environmental impact reduction in our product development processes. On 1 August 2014, we revised the New Product Development process such that all projects address use-phase impact reduction. GHG emissions is one impact reduction category. Reporting on this product use-phase metric will begin with our 2014 CSR, currently underway. Life Cycle Assessments (LCA’s) have shown that Scope 3 GHG emissions from the ‘Use of sold products' category is greater than Tennant Company Scope 1 & 2 emissions - by a large margin. This finding reinforces our use-phase oriented strategy for technology and product development. We strive to achieve incremental improvement in replacement products. We also develop disruptive innovation products which can enable dramatic GHG emissions avoidance. In these cases, third parties LCA’s are completed to quantify GHG emissions reduction when compared to competitive products. For the combined installed base of three product categories, we estimate our customers avoided more than 12,000 mT CO2e in 2014. This estimate is based on three independent LCA's performed by Ecoform - attached. Each product is complex and multiple scenarios are included in the LCA, so it is not possible to state all methodology, assumptions, and emissions factors here - given input character limits. Avoided emissions are the result of significant reductions of input materials, elimination of packaging, and elimination of emissions from transportation. We are also moving toward cradle-to-cradle solutions, which can yield sustainability improvement including Scope 1, 2, and 3 GHG emissions avoidance. We are investing in our reconditioned (Recon) equipment business in several markets. The Recon business model promotes re-use and is less carbon intense than production of new equipment. We have not yet made specific calculations or comparative LCAs for our Recon vs. new products. We do know that similar capital


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goods products (copiers, etc.) have achieved significant emissions reductions with a Recon business model. We plan to perform detailed GHG emissions analyses for Recon products/solutions in future years. While Tennant does provide third parties an ability to decrease emissions, through use of our products, we are not in a position generate carbon credits associated with our products.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 12

To be implemented* 7 425

Implementation commenced* 1 2

Implemented* 11 370

Not to be implemented 1

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below


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Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Energy efficiency: Building services

Added insulation to heated sidewalk (safety), as part of replacement project

25 Scope 2

Voluntary

4665 2100 <1 year 11-15 years Minneapolis, MN P1/HQ

Energy efficiency: Processes

Dust collector upgrade 35 Scope 2

Voluntary

6589 8000 1-3 years 11-15 years Minneapolis, MN P1/HQ


Laser replacement 17 Scope 2

Voluntary



VFD motor controls 38 Scope 2

Voluntary



HVAC mini-split 11 Scope 2

Voluntary

2000 2500 1-3 years 6-10 years Minneapolis, MN P1/HQ


Unit heater decommissioning and set-point changes

154 Scope 1

Voluntary

20000 300 <1 year >30 years Minneapolis, MN P1/HQ

Behavioral change

AMU discharge temperature set-point change

55 Scope 1

Voluntary

5665 0 <1 year >30 years Minneapolis, MN P1/HQ

Energy efficiency:

Added automatic temperature based control to gutter downspout heating systems

3 Scope 2

Voluntary

534 1500 16-20 years

6-10 years Minneapolis, MN P1/HQ


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Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Building services


Air dryer 5 Scope 2

Voluntary

1135 13823 11-15 years

6-10 years Uden, The Netherlands


Air control, powder coating 13 Scope 1

Voluntary

1135 17514 16-20 years

16-20 years Uden, The Netherlands

Behavioral change

Implemented monthly fuel mileage reporting, which includes trend analysis for all sales and service vehicles/drivers. Provides visibility and enables both management by objective and coaching.

14 Scope 1

Voluntary

10000 0 <1 year >30 years United Kingdom vehicle fleets

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

Regulatory requirements & standards around energy and fuel efficiency continue to help drive emissions reduction.


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Method

Comment

Employee engagement Employees are encouraged to submit energy and other efficiency improvement ideas as part of several different programs. These include "5S" and '8 Wastes."

Financial optimization calculations

Estimating energy / fuel reduction for new equipment and process investments was added to the Annual Operating Plan-Capital Planning template in 2014. Additional detail will be required in Capital Equipment Requests (CERs), when the CER template is revised in 2015. The CER is used to analyze and justify investments.

Internal incentives/recognition programs

Employees can be nominated by their peers and leadership for APPLAUSE and Leading Edge Awards. These programs can provide both recognition and monetary rewards for work toward energy/fuel efficiency and emissions reductions.

Other The Annual Operating Plan process was revised so Capital Equipment projects which yield GHG emission reductions are distinctly identified. Beginning in Q4 2014, these projects were reviewed as a portfolio - at the company level.

Other We employ independent energy assessment organizations to identify energy reduction and efficiency opportunities. We also engage our business partners, including utilities and fleet management companies, to identify new opportunities and best practices around energy / fuel efficiency improvements and emissions reductions.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Attachments

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC3.TargetsandInitiatives/Tennant EC-H2O Report - Final - Sep'10.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC3.TargetsandInitiatives/os3 LCA Report Final - 10-29-14.pdf https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC3.TargetsandInitiatives/Orbio 5000SC LCA Report-Aug 28 '11.pdf

Page: CC4. Communication


22

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

In voluntary communications

Underway - previous year attached

Pages 4, 6, 11-16 https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CC4.1/2013_TENNANT_CSR_FINAL.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a


23

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Fuel/energy taxes and regulations

RoHS, REACH, and pending rules from the EPA may affect internal combustion engines and/or batteries used in our products in UK, EU, and USA, respectively. These rules and regulations have the potential to impact the sale of our products. These regulations also have the potential to impact material selection and costs. These risks apply to all products and all manufacturers. The financial impact would be cost of compliance.

Reduced demand for goods/services

3 to 6 years

Indirect (Supply chain)

About as likely as not

Medium > $1,000,000

Our Director of Product Regulatory Affairs, along with three staff members, monitor and address regulatory issues in all regions in which we conduct business. Product Regulatory Affairs personnel are involved in each product development project, as well as the governance of our product development roadmap. This provides long term regulatory insight to the product planning process and roadmap.

~$200,000

Air pollution limits

Internal combustion engine emissions regulations. Some of our products employ internal combustion power sources.


Unknown Indirect (Client)

Very likely Medium-high

Up to $1,200 additional product cost per unit for internal combustion products. This

We actively manage our product costs and the cost of compliance with emissions regulations.


24

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

cost would be passed on to our customers.

CC5.1b

Please describe your inherent risks that are driven by change in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Other physical climate drivers

Extreme weather events, such as tornados, hurricanes, typhoons, and flooding, present a global business continuity risk to Tennant. Due to our global manufacturing and sourcing model, extreme weather also has the potential for manufacturing interruption.

Increased operational cost

Unknown Direct Unlikely High

Total replacement of our largest facility (in Minneapolis, MN) would cost over $100 million.

This is integral to our annual risk assessment and monitored day to day by our EH&S management group. All facilities are insured to cover losses.

Total cost of property insurance is ~ $550,000, for the most recent annual term.


25

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Other physical climate drivers

Extreme weather events, such as tornados, hurricanes, typhoons, and flooding, present a global business continuity risk to Tennant. Due to our global manufacturing and sourcing model, extreme weather also has the potential for upstream supply chain interruption.

Increased operational cost

Unknown Indirect (Supply chain)

Unlikely High

Problems in our supply chain could make us unable to produce and ship finished goods. The potential financial implications range widely, depending on particular suppliers and the number of product lines affected.

We have assessed our supply chain, identified critical suppliers, and developed contingency plans for interruption/disruption.

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Reputation

Several of our products are marketed as sustainable solutions, with environmental


1 to 3 years

Direct Unlikely Low

We have a rigorous review process for all marketing claims and the Legal Department is process owner. Our product development


26

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

footprint reduction as part of the value proposition. Should these products not perform as expected, our reputation could be damaged and sales of our products could decrease as a result.

process includes extensive testing in both laboratory settings and actual applications. In our production facilities, we have a robust quality control program. These processes help ensure that our products are reliable and perform as promised.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure


27

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

General environmental regulations,

Regulations to keep grounds and facilities clean, free of

Increased demand for existing products/services

1 to 3 years

Direct Likely Medium >$1,000,000

Our Director of Product Regulatory Affairs, along

~ $200,000


28

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

including planning

debris and safe for occupants may drive increased demand for our products. Regulations for improved air quality (reduced particulates) may drive increased demand for our products.

with three staff members, monitor and address regulatory issues in all regions / countries in which we conduct business. Product Regulatory Affairs personnel are involved in each product development project, as well as the governance of our product development roadmap. This provides long term regulatory insight to the product planning process and roadmap.

CC6.1b

Please describe the inherent opportunities that are driven by changes in physical climate parameters


29

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Other physical climate opportunities

Extreme weather events, such as tornados, hurricanes, typhoons, and flooding, may increase awareness of climate change as a serious issue. In turn, this awareness may drive increased demand for our products and solutions that offer customers carbon emissions avoidance.


Unknown Direct More likely than not

Medium-high

>$5,000,000

We prioritize technology and product development which includes carbon emissions avoidance and other environmental improvement in use of sold goods (our Scope 3). Products is one of 4 Focus Areas in our Sustainable Enterprise strategy.

CC6.1c

Please describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Changing consumer behaviour

Tennant strives to create innovative, new products to


3 to 6 years

Direct Likely High >$10,000,000

We closely monitor our customer's needs and expectations and

>$1,000,000


30

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

meet customer needs. Trend and voice of customer research indicate more efficient and sustainable products and fewer chemicals are desired by customers.

also consider general societal trends. This enables Tennant Company to develop industry leading products and services as well as continuously develop innovative sustainable solutions for customer facility maintenance needs.

Induced changes in human and cultural environments

Tennant strives to create innovative, new technologies to meet customer needs. Trend and voice of customer research indicate more efficient and sustainable products and fewer chemicals are desired by customers.

New products/business services

>6 years Direct Likely High >$10,000,000

We actively track 'mega-trends' including: population demographics; resource demands; environmental pressures; new technologies; etc. Observations and potential impacts are fed into our strategic planning process, to identify potentially disruptive and far term business opportunities. This enables Tennant Company to develop innovative sustainable solutions for future customer facility maintenance needs.

>$1,000,000


31

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology


32

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Sun 01 Jan 2012 - Mon 31 Dec 2012

20771.8

Scope 2 Sun 01 Jan 2012 - Mon 31 Dec 2012

10317.0

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

The Climate Registry: General Reporting Protocol

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions


33

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CH4 IPCC Fifth Assessment Report (AR5 - 100 year)

N2O IPCC Fifth Assessment Report (AR5 - 100 year)

HFCs IPCC Fifth Assessment Report (AR5 - 100 year)

PFCs IPCC Fifth Assessment Report (AR5 - 100 year)

SF6 IPCC Fifth Assessment Report (AR5 - 100 year)

CO2 IPCC Fifth Assessment Report (AR5 - 100 year)

Other: R410A Other: ASHRAE 34 Standard

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Electricity 1036.00 lb CO2 per MWh

Other - Xcel Energy Data - 2012 Corporate Responsibility Report. Xcel Upper Midwest has a factor of 1,036 lbs CO2/MWh.

Other: Other: All emissions factors applied and their origin are included in the attached Excel spreadsheet.


34

Further Information

All emissions factors applied and their origin are included in the attached Excel spreadsheet.

Attachments

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC7.EmissionsMethodology/CDP Q7.4.xlsx

Page: CC8. Emissions Data - (1 Jan 2012 - 31 Dec 2012)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

20771.8

CC8.3


10317.0


35

CC8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

No

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions

from this source


excluded from this source

Explain why the source is excluded

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 1

More than 2% but less than or equal to 5%

Assumptions

For two fleets, Brazil and Japan, fuel consumption (liters) is calculated by dividing total yearly purchases in local currency by average price per liter for the year. These fleets do not track fuel usage quantity.


36

Scope

Uncertainty range

Main sources of

uncertainty


Scope 2


Data Gaps Assumptions Metering/ Measurement Constraints

We collected utility data directly from providers in all but two instances, Brazil (2 locations) and China. For China, the landlord provides usage data. For Brazil, we compiled totals from utility invoices. Our Falkirk, Scotland and Newbury, Ohio locations are missing data for 3 months in 2012 so we made estimates based on historical usage.

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Type of verification or assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions verified (%)

CC8.6b


37

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7



CC8.7a





Relevant standard

Proportion of reported Scope 2

emissions verified (%)

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2


38

Additional data points verified

Comment

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

Yes

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

2545

Further Information


CC8.1


Operational control

CC8.2


39


21178.8

CC8.3


10366.4

CC8.4


No

CC8.4a


Source


from this source




CC8.5


40


Scope

Uncertainty range

Main sources of

uncertainty


Scope 1 More than 2% but less than or equal to 5%

Assumptions

For two fleets, Brazil and Japan, fuel consumption (liters) is calculated by dividing total yearly purchases in local currency by average price per liter for the year. These fleets do not track fuel usage quantity.

Scope 2 More than 2% but less than or equal to 5%

Assumptions Metering/ Measurement Constraints

We collected utility data directly from providers in all but two instances, Brazil (2 locations) and China. For China, the landlord provides usage data. For Brazil, we compiled totals from utility invoices.

CC8.6



CC8.6a




Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions verified (%)


41

CC8.6b


Regulation


Compliance period


CC8.7



CC8.7a





Relevant standard



CC8.8



42


Comment

CC8.9


Yes

CC8.9a


2545

Further Information


CC8.1


Operational control

CC8.2


43


21996.2

CC8.3


11348.4

CC8.4


No

CC8.4a


Source


from this source




CC8.5


44


Scope

Uncertainty range

Main sources of

uncertainty


Scope 1



For two fleets, Brazil and Japan, fuel consumption (liters) is calculated by dividing total yearly purchases in local currency by average price per liter for the year. These fleets do not track fuel usage quantity. For one Minneapolis facility, there is an ongoing discussion with a utility around potentially incorrect natural gas metering. Since the data reported by the utility is implausibly low, we notified the utility. We made several estimates with differing sets of assumptions and have included the most conservative estimate in our 2014 Scope 1 totals. We will restate as necessary in future reporting, when the matter is resolved.

Scope 2



We collected utility data directly from providers in all but two instances, Brazil (2 locations) and China. For China, the landlord provides usage data. For Brazil, we compiled totals from utility invoices.

CC8.6


Third party verification or assurance complete

CC8.6a



45

Type of verification or

assurance


Page/section

reference

Relevant standard



Moderate assurance

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CC8.6a/Tennant 2015 CDP Assurance Statement AA1000 v1_1 (1).pdf

Pg. 1 AA1000AS 95

CC8.6b


Regulation


Compliance period


CC8.7


Third party verification or assurance complete

CC8.7a



46

Type of verification or

assurance



Relevant standard

Proportion of

reported Scope 2 emissions verified

(%)

Moderate assurance

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CC8.7a/Tennant 2015 CDP Assurance Statement AA1000 v1_1 (1).pdf

Pg. 1 AA1000AS 95

CC8.8



Comment

No additional data verified

CC8.9


No

CC8.9a



47

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2012 - 31 Dec 2012)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

Australia 505.1

Belgium 142.8

Brazil 288.2

Canada 757.2

China 0

France 1027.3

Germany 541.4

Japan 228.9

Netherlands 922.6

Spain 581.8

United Kingdom 1135.2

United States of America 14499.6

Rest of world 141.7


48

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division By GHG type

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

Americas 15545.0

EMEA 4492.8

APAC 734.0

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c


49

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CO2 20700.1

CH4 8.4

N2O 63.3

CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


CC9.2e

Please break down your total gross global Scope 1 emissions by legal structure

Legal structure


Further Information



50

CC9.1


Yes

CC9.1a


Country/Region


Australia 478.2

Belgium 139.5

Brazil 456.2

Canada 736.0

China 0.0

France 956.2

Germany 550.1

Japan 187.1

Netherlands 980.7

Spain 558.7



Rest of world 138.9

CC9.2


51



CC9.2a


Business division


Americas 15989.4

EMEA 4524.1

APAC 665.3

CC9.2b


Facility


Latitude

Longitude

CC9.2c


52


GHG type


CO2 21104.1

CH4 8.8

N2O 65.9

CC9.2d


Activity


CC9.2e


Legal structure


Further Information



53

CC9.1


Yes

CC9.1a


Country/Region


Australia 558.6

Belgium 125.5

Brazil 546.8

Canada 763.5

China 0.0

France 875.4

Germany 561.6

Japan 163.9

Netherlands 967.4

Spain 570.0



Rest of world 133.6

CC9.2


54



CC9.2a


Business division


Americas 16894.7

EMEA 4379.0

APAC 722.5

CC9.2b


Facility


Latitude

Longitude

CC9.2c


55


GHG type


CO2 21894.5

CH4 10.7

N2O 91

CC9.2d


Activity


CC9.2e


Legal structure


Further Information



56

CC10.1


Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region


Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted for in CC8.3

(MWh)

Australia 189.0 228.8

Belgium 42.7 105.0

Brazil 17.0 240.2

China 294.2 383.6

Japan 35.3 70.5

Netherlands 121.7 1798.9 1500

United Kingdom 321.1 723.6

United States of America 9296.0 16903.8

CC10.2


By business division


57

CC10.2a


Business division


Americas 9313

EMEA 485.5

APAC 518.5

CC10.2b


Facility


CC10.2c


Activity



58

CC10.2d


Legal structure


Further Information


CC10.1


Yes

CC10.1a


Country/Region



(MWh)


(MWh)


Belgium 42.7 105.0

Brazil 17.5 247.4

China 290.8 379.1

Japan 37.2 74.4

Netherlands 177.7 1936.8 1500


59

Country/Region



(MWh)


(MWh)



CC10.2



CC10.2a


Business division


Americas 9337.8

EMEA 511.4

APAC 517.2

CC10.2b



60

Facility


CC10.2c


Activity


CC10.2d


Legal structure


Further Information


CC10.1


Yes


61

CC10.1a


Country/Region



(MWh)


(MWh)


Belgium 30.6 75.2

Brazil 18.5 260.5

China 296.6 386.8

Japan 35.1 70.2

Netherlands 929.8 2285.7



CC10.2



CC10.2a



62

Business division


Americas 9560.5

EMEA 1269.1

APAC 518.8

CC10.2b


Facility


CC10.2c


Activity


CC10.2d



63

Legal structure


Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?


CC11.2

Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Fuel 94681

Electricity 21711.9

Heat 0.0

Steam 0.0

Cooling 0.0

CC11.3

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type


64

Fuels

MWh

Other: 1

Diesel/Gas oil 61151

Liquefied petroleum gas (LPG) 204

Natural gas 33197

Propane 128

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3

Basis for applying a low carbon emission factor

MWh associated with low carbon electricity, heat, steam or cooling

Comment

No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1a


65

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value

(percentage)

Direction of

change

Comment

Emissions reduction activities

1.2 Decrease 2014 emissions reduction activities (ERAs) produced a 370 mT decrease in CO2e. 2013 total emissions were 31,545 mT. (370 / 31,545 = 1.2%)

Divestment

Acquisitions

Mergers

Change in output 2.8 Increase Net sales grew by 9.3% in 2014, compared to 2013, with an associated 885 mT increase in CO2e emissions. 2013 total emissions were 31,545 mT. (885 / 31,545 = 2.8%)

Change in methodology

Change in boundary

Change in physical operating conditions

Unidentified

Other 4.1 Increase

We insourced rotomold part manufacture at two facilities (Uden, The Netherlands and Minneapolis, MN). This insourcing resulted in a 675 mT CO2e increase in Scope 1 emissions. The 675 mT increase is a Scope 3 to Scope 1 shift - not an emissions increase. Insourcing projects yield overall total emissions reduction when factors like process efficiency and transportation are considered. The rotmold equipment purchased and installed in Uden and Minneapolis are the highest efficiency models currently available. In 2013, we purchased 1500 MWh of biomass energy in The Netherlands. Without the biomass purchase in 2014, we saw a 610 mT increase in CO2e emissions. 2013 total emissions were 31,545 mT. ((675+610) / 31,545 = 4.1%)

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue


66

Intensity figure

Metric numerator

Metric denominator

% change from previous year

Direction of change from previous year

Reason for change

40.6 metric tonnes CO2e unit total revenue 3.3 Decrease Business growth rate greater than emissions growth

CC12.3

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure

Metric numerator

Metric denominator



Reason for change

10.8 metric tonnes CO2e FTE employee 0 No change

CC12.4

Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure

Metric numerator

Metric denominator



Reason for change

metric tonnes CO2e

Further Information


67

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, but we anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

Our current priority is embedding efficiency improvement strategies and tactics in the organization. We anticipate evaluating emissions trading schemes in the various countries and markets where we operate in the next two years.

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a


68

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes of CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits cancelled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data

obtained from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

108154 2014 spend data was mapped to business sectors and emissions were calculated using Trucost Environmentally Extended Input-Output (EEIO) life cycle model, or company data where available.

Capital goods Not relevant, calculated

3080 2014 spend data was mapped to business sectors and emissions were calculated using Trucost EEIO.

Calculated emissions are LESS than 1%, the threshold we are using for material (relevant).


69


Evaluation status

metric tonnes CO2e




partners

Explanation

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Not relevant, calculated

6486

FY 2014 energy data was converted to consistent units, using DEFRA conversion factors. GHG emissions from well-to-tank and transmission/distribution losses were calculated using DEFRA conversion factors.


Upstream transportation and distribution


2273 2014 spend data was mapped to business sectors and emissions were calculated using Trucost EEIO.


Waste generated in operations


1815

A waste analysis report for the Minneapolis facility (largest) was used to calculate GHG emissions from waste and the intensity (in mT per employee). Total waste quantities for other locations were estimated based on headcount and the Minneapolis waste intensity. The total quantities were split for different destinations, using data from The World Bank. The emissions factors for waste were derived from DEFRA.


Business travel Not relevant, calculated

1649

Raw air travel information for flights booked from the US was used, including arrival & departure airport. Mileage and GHG Emissions were calculated for 75% of total US flights, then scaled to 100%. Calculated emissions are 1,649 mT CO2e. Detailed air travel information was not available for EMEA & APAC bookings. Based on business sizes and headcounts, EMEA & APAC business travel emissions are less than US. We assess the business category as not relevant.


Employee commuting


7629

Based on employee headcount by Tennant location and commuting statistics for those locations. For countries in which data was not available, a global average considered. DEFRA emission factors and OECD data were used to calculate GHG emissions.

Upstream leased assets

Not relevant, explanation provided

0 We do not have upstream leased assets.


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Evaluation status

metric tonnes CO2e




partners

Explanation

Downstream transportation and distribution


13442 Calculated based on sector classification. All suppliers with the sector mapped to "Truck transportation" were considered to calculate emissions in Category 9.

Processing of sold products


0 We do not process sold product beyond our "dock."

Use of sold products


543000

A process Life Cycle Assessment (LCA) for our T300 product is the basis for calculation. More than 80% of GHG emissions from T300 use-phase come from electricity use. We assumed the T300 is representative of our entire product line. T300 use-phase emissions were scaled based on selling price, then applied to total 2014 product unit sales data.

We plan to conduct additional LCAs and other analyses to refine this calculation.

End of life treatment of sold products


864 Trucost EEIO model, commodity prices for product types, and average waste disposal routes for US and world. Based on data from The World Bank and DEFRA conversion factors.


Downstream leased assets


0 We do not have downstream leased assets.

Franchises Not relevant, explanation provided

0 We do not have franchises.

Investments Not relevant, explanation provided

0

We do not have investments, other than cash instruments.

Other (upstream)

Other (downstream)


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CC14.2



CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification

or assurance



Relevant standard

Proportion of Scope 3 emissions verified (%)

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

No, this is our first year of estimation

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year


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Sources of Scope 3

emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, our customers Yes, other partners in the value chain

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

We have identified 8 key stakeholder groups, along with engagement strategies and tactics specific to each group. The 3 priority stakeholder groups are customers, investors, and employees. Another key group is our value stream partners. Our engagement strategies and tactics appear on page 5 of our 2013 Corporate Sustainability Report - attached. We have active programs in place for our stakeholder's highest priorities. As an example, for customers we report to CDP and have energy, waste and packing reduction initiatives. Some of our suppliers regularly provide GHG emissions data, particularly transportation companies. We are just beginning our supplier engagement initiative, which will build on the Scope 3 analysis completed for 2014. Scope 3 emissions are primarily from suppliers in the manufacturing, warehousing, and transportation sectors with manufacturing being the largest. A relatively small number of suppliers (5) account for 18% of our Scope 3 emissions. The top 25 suppliers accounting for 42%. In Q3-4 2015, we will assess each supplier in the top tier and develop engagement priorities and actions.

CC14.4b


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To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of suppliers

% of total spend

Comment

0 0% Our strategy for supplier engagement on GHG emissions will be developed in 2015-2016, based on Scope 3 analysis completed in June 2015. The Scope 3 analysis provides quantitative data to help focus and prioritize supplier engagement.

CC14.4c

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make use of the data

Please give details

Other Suppliers who provide information on GHG emissions and climate change strategies are viewed as good business partners, qualitatively. We plan to expand activity in this area, based on overall materiality, to include making use of select supplier data.

CC14.4d

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Attachments

https://www.cdp.net/sites/2015/77/37977/CDP Supply Chain 2015/Shared Documents/Attachments/CDPSupplyChain2015/CC14.Scope3Emissions/2013_TENNANT_CSR_FINAL.pdf

Module: Sign Off


74

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

H. Chris Killingstad President and Chief Executive Officer. Member, Tennant Company Board of Directors.

Chief Executive Officer (CEO)

Further Information

Module: SupplyChain

Page: SM0. Supply Chain Module - Introduction

SM0.0

If you would like to do so, please take this opportunity to provide a separate introduction to this module

2012 was the first year we compiled an inventory of our global GHG emissions, forming a baseline against which we compare future emissions and emissions reduction impacts. We are investigating methods for calculating the embedded energy and emissions of all products we produce. This is a challenge since we produce a broad and diverse range of products. Product power sources range from cord electric to small battery to industrial battery to internal combustion. Product mass ranges from 6 kg (V3 dry canister vacuum) to 5,670 kg (Sentinel sweeper). In 2014, working with thinkstep we performed a Life Cycle Assessment (LCA) on the T300 product. T300 is a new walk-behind scrubber-dryer, launched in early 2015. It replaces the T3, one of our highest unit volume and revenue products. The T300 LCA provides a sound check point for assessing embedded energy and emissions allocation approaches to our broad product range. Based on this third-party LCA, we know product use-phase is the major environmental impact contributor. We also know that electricity and water use are dominant in the use-phase of our largest product category - battery powered floor scrubber-driers. We plan to perform additional product LCAs and evaluate allocation


75

methods, to eventually cover our complete product range.

SM0.1

Please could you indicate your company’s annual revenue for the stated reporting period?

Annual Revenue

Currency

821983000 USD($)

SM0.2

Do you have an ISIN for your company that you would be willing to share with CDP?

Yes

SM0.2a

Please use the table below to share your ISIN


76

ISIN country code (2 letters)

ISIN numeric identifier and single check digit (10 numbers overall)

US 8803451033

Further Information

Page: SM1. Supply Chain - Allocation A

SM1.1

Please allocate your emissions to your customers listed below according to the goods or services you have sold them in this reporting period

Please note that this table ( for SM1.1) is designed so that only the customer that you select in column 1 ("Please select the requesting member(s)") will be able to see the data relevant to them. If you enter an answer without selecting a requesting member, your answer will not be viewable at all.

Please select the requesting member(s)

Scope of emissions

Emissions in metric tonnes CO2e

Uncertainty (+/- %)

Major sources of emissions

Verified

Allocation method

Please explain how you have

identified the GHG source, including major limitations to this process

and assumptions made

The Coca-Cola Company


77

Further Information

Page: SM1. Supply Chain - Allocation B

SM1.2

Where published information has been used in completing SM1.1, please provide a reference(s)

SM1.3

What are the challenges in allocating emissions to different customers and what would help you to overcome these challenges?

Allocation challenges

Please explain what would help you overcome challenges

Diversity of product lines makes accurately accounting for each product / product line cost ineffective

We plan to perform additional process LCAs on representative products to gain data. This will help us make a formal, data-driven evaluation of potential allocation methodologies. We may use an external business partner to help accelerate progress.

SM1.4

Do you plan to develop your capabilities to allocate emissions to your customers in the future?

Yes

SM1.4a

Please describe how you plan to develop your capabilities


78

We plan to perform more process LCAs on representative products, to gain data. The T300 LCA in 2014 was a good first step. A formal, data-driven assessment of potential allocation methodologies is planned. We may use an external business partner to accelerate progress. We will select an allocation methodology based on this assessment.

SM1.4b

Please explain why you do not plan to develop capabilities to allocate emissions to your customers

Further Information

Page: SM2. Supply Chain - Collaboration

SM2.1

Please use the table below to communicate any proposals you would like to make to specific CDP supply chain members for the collaborative development of GHG emission reducing projects or products

Please do NOT include details of existing commercial offerings of which your customer will already be aware. Use this as an opportunity to think about how you can work with your customer to reduce the emissions associated with the goods and services you provide to your customer. Please note that this table (for SM2.1) is designed so that only the customer that you select in column 1 ("Please select requesting member") will be able to see the data relevant to them. If you enter an answer without selecting a requesting member, your answer will not be viewable at all.

Please select requesting member

Emissions reduction project or product consists of

Estimated timeframe for carbon

reductions to be realized

Details of proposal

SM2.2


79

Have requests or initiatives by CDP supply chain members prompted your organization to take organizational-level emissions reduction initiatives?

SM2.2a

Please select the requesting member(s) that have driven organizational-level emissions reduction initiatives?

Please select the requesting

member(s) that have driven a reduction

Initiative ID

Describe the reduction initative

Give reduction for the reporting year in metric tonnes of

CO2e

Did you identify this

opportunity as part of the CDP Supply Chain Action

Exchange?

Would you be happy for CDP

supply chain members to highlight this work in their external

communication?

Further Information

Page: SM3. Supply Chain - Product Introduction

SM3.1

Are you providing product level data for your organization's goods or services, if so, what functionality will you be using?

Yes, I will provide data using the ORS

SM3.1a

Please give the overall percentage of total emissions, for all scopes, that are covered by these products


80

SM3.2

Please describe the goods/services for which you want to provide data using the following template and attach it to the response

SM3.2a

Please complete the following table for the goods/services for which you want to provide data

Name of good/service

Description of good/service

Type of product

SKU (Stock Keeping Unit)

Total emissions in kg CO2e

per unit

+/- % change from

previous figure

supplied

Date of previous

figure supplied

Explanation of change

Methods used to estimate

lifecycle emissions

Further Information

Page: SM3. Supply Chain - Product Lifecycle Stages

SM3.2b

Please complete the following table with data for lifecycle stages of your goods and/or services


81


Please select

the scope

Please select the lifecycle

stage

Emissions (kg CO2e) per unit at

the lifecycle stage

Is this stage under

your ownership or control?

Type of data used

Data quality

If you are verifying/assuring

this product emission data, please tell use

how

T300 Scope 3

Consumer use

655 No Secondary

Emissions are for one year of use of one machine with the following assumptions: 250 3-hour cleaning cycles per year, 3.8 kWh electricity for each of 250 battery recharges, and 6.89551 × 10-4 mT CO2 / kWh. Ref: EPA (2014) eGRID, U.S. annual non-baseload CO2 output emission rate, year 2010 data

Further Information

Page: SM3. Supply Chain - Product Emissions Reductions

SM3.2c

Please detail emission reduction initiatives completed or planned for this product


Initiative ID

Description of initiative

Completed or planned

Emissions reductions in kg CO2e per unit

SM3.2d

Have any of the initiatives described in SM3.2c been driven by requesting members?

SM3.2e


82

Please explain which initiatives have been driven by requesting members

Requesting member(s)


Initiative ID

Further Information

CDP