With renewable energy procurement being a key measure in our decarbonization pathway, we have initiated both onsite and offsite projects.

Solar Energy in the PRC We are preparing to install solar rooftops at our facilities in the PRC and are now in the final stages of selecting an external partner for this project. Our aim is for our first installation at our main location in Dongguan in 2022 with all phases scheduled to be completed by 2026. The total area covered by solar panels will be over 120,000 sqm, generating an estimated 13.92 MWh of energy by 2027 for TTI AIP, which represents 18% of the electricity consumed at this location in 2021.

Green Energy in the USA We are also pursuing an offsite project in the USA to help meet our target. Our Milwaukee Tool BU engaged experts at their main energy provider, WE Energies, to perform energy audits at all locations in Southeastern Wisconsin. After review of their projected consumption, Milwaukee Tool entered into a green energy commitment with WE Energies that provides 100% renewable energy at all Southeastern Wisconsin Milwaukee Tool locations. The agreement commenced in February 2022 and makes Milwaukee Tool one of the early adopters of the Energy for Tomorrow program.

In 2021, our Milwaukee Australia BU partnered with local recycling partner Enviro-stream to launch FUTURE FORWARD™. Going beyond simply making battery recycling available to users, the new initiative involves a targeted campaign that seeks to leverage our Milwaukee Australia brand and embed sustainability into our identity. We chose to work with Envirostream as it had established a first-of-akind in Australia, environmentally safe lithium-ion battery recycling facility. By processing onshore, Envirostream is adding value back into the Australian manufacturing sector and growing the local sustainability industry by creating jobs — a factor that was identified as important to our users. Following state-level pilot programs tested in the previous year, Milwaukee launched nationwide retail collection units in June 2021. We also identified key clients and executed several pick-ups at job sites. At the nationwide launch in June, the campaign collected 20 kg of batteries. The volume continued to increase month on month and by November, monthly collections reached 76 kgs of lithium-ion. Currently, the team is using collection data to gauge market reception of the program. Looking forward, the FUTURE FORWARD™ team aims to tailor the next phase of marketing and communications about the project to be more targeted towards different facets of the market. The ultimate goal of the campaign is to fully integrate FUTURE FORWARD™ into the Milwaukee brand and cement battery recycling as part of our central value proposition to users.

Another line of our products that emit less GHG emissions while in use, include the RYOBI cordless lawn mowers and outdoor power tools. We performed an analysis on our cordless lawn mowers conducted by an independent expert. The results showed that there is a reduction of 8% in the GHG emission footprint of the cordless lawn mower when looking purely at the products, namely as a result of their materials, manufacturing and assembly. However, an indicative scenario of 500 uses of the two products yielded different results. Testing showed that after 500 uses, the RYOBI Cordless Lawn mower had a significantly reduced GHG emission footprint, approximately 166% or 2.6 times lower than the gas-powered lawn mower equivalent.