Shaping a
better world
ESAB Corporation overview
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9,000 associates around the world
120 year history
2023 Net Sales of
$2 .6 billion*
Serving customers in approximately
150 countries
Introduced
135 new products in 2023
World Headquarters in North Bethesda, MD, USA
* Excludes Net Sales of $154 million attributable to the Company’s business in Russia.
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Our story
ESAB Corporation (ESAB or the Company) is a focused premier industrial
compounder, providing our partners with advanced equipment, consumables, Fabrication Technology
gas control equipment, and automation. Our rich history of innovative
Since its founding, ESAB has been a leader in fabrication technology,
products and workflow solutions and our business system, ESAB Business
delivering efficient, high-productivity solutions to customers in the
Excellence (EBX), allows us to realize our Purpose of Shaping the World
world’s biggest manufacturing industries. Today we have more than
We Imagine.TM We believe the progress we make today makes the world we
25 trusted brands worldwide in the fabrication, cutting, welding,
imagine possible.
robotics and automation industries.
Our Company continues the legacy of Swedish engineer Oscar Kjellberg,
who produced the world’s first welding electrode and founded Elektriska
Svetsnings-Aktiebolaget (ESAB) in 1904. This year marks the 120-year
anniversary of ESAB building on the innovation of Mr. Kjellberg. In Gas Control
April 2022, we completed our separation from Enovis Corporation (formerly
Our gas control platform, led by our flagship brand Gas Control
known as Colfax Corporation) and launched as an independent, publicly-
Equipment (GCE), is a leading provider of specialty gas solutions,
traded corporation listed on the New York Stock Exchange (NYSE: ESAB).
developing and manufacturing all types of equipment for pressure
Today, our business consists of two pillars: Fabrication Technology and Gas and flow control of high-pressure gasses across various industries.
Control. Both are united by our shared Purpose, Values, and commitment to With extensive experience in handling high-pressure gasses, GCE’s
continuous improvement, allowing us to make meaningful improvements origins date back to the beginning of the twentieth century when
that deliver real impact. oxy-acetylene cutting and welding methods were invented. Today’s
product portfolio fits a large variety of applications for industrial,
medical, life sciences, and specialty gas controls. GCE is tackling
these challenges head-on by not only enabling development of
innovative products and solutions, but by relentlessly looking for
ways to drive continuous improvement and deliver additional value to
customers, healthcare providers, and shareholders.
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Growth
We built our business through organic growth as well as a series
of acquisitions. Over the past year, we completed several strategic
acquisitions, including Therapy Equipment, a regional leader in the medical
gas market for oxygen therapies, and Sager, a leading provider of repair and
maintenance services in South America.
Over the course of our 120-year history, we secured our position as
a leading connected fabrication technology and gas control solutions
business in part by prioritizing responsible business practices, including
maintaining an industry-leading safety record. Today, we remain steadfast
in our commitment to being responsible global citizens and shaping a
more sustainable world. Our Board of Directors and executive leadership
team recognize that the choices we make can enrich our business and
shareholders as well as the lives of our associates and their communities.
We have set a strategic vision to take care of and improve the world around
us while delivering substantial returns to investors. This Sustainability
Report articulates our ongoing efforts in service of that vision.
You can learn more about ESAB in our most recent Annual Report on
Form 10-K and our Proxy Statement, each of which have been filed
with the U .S . Securities and Exchange Commission and can be found at
investors .ESABcorporation .com .
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Our purpose
Shaping the World We Imagine.TM
We believe the progress we make today makes the world we
imagine possible. We know that the power to create better—
for our customers, our associates, and our shareholders
—begins with having the best team, pursuing
common goals, operating at the highest
levels, and delivering extraordinary
outcomes.
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Our values
Our Values shape the way we work. They guide us and drive us to be better each day.
S H A P E
SHARED HELP EACH ALWAYS PURPOSEFUL EVERY VOICE
SUCCESS OTHER WIN IMPROVING LEADERSHIP VALUED
We’re there for our We collaborate as Continuous We lead with heart We’re diligent about
customers’ triumphs a team to achieve improvement is at the and purpose because creating an inclusive,
and challenges, our shared vision— core of our business we take pride in our welcoming culture
knowing our success bringing the right management system, work and believe in that values every
is a direct reflection people together ESAB Business its impact . We build perspective—
of our ability to create to explore creative Excellence . We never strong leaders who because real
solutions that work solutions, build on settle for “good meet challenges progress depends
for them . each other’s ideas, enough” and are head on, celebrate on diversity, empathy,
and hold ourselves constantly pursuing wins, and learn from and mutual respect .
accountable . innovative solutions to every obstacle .
make real progress .
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Shaping a better world
Our innovative portfolio of
products empowers people
to shape a better world.
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Our journey
Responsible business practices are a fundamental part of our Company’s
120-year history. We believe corporate social responsibility is a driver
of value creation for our business and stakeholders and critical to our
long-term success. In addition, we believe an appropriately tailored
sustainability program can help mitigate risk as well as reinforce and
strengthen our core Values.
Our Chief Executive Officer, General Counsel, and Board of Directors
lead our sustainability program. We also established a sustainability
committee to execute our strategy and monitor our portfolio of initiatives.
The committee is a cross-functional team of Company leaders, including
representatives from our human resources, environment, health and safety,
communications, legal, internal audit, investor relations, sourcing, utility
management, and supply chain teams.
We approach corporate responsibility and sustainability as a journey.
We are building a results-oriented sustainability program, designed to
allow ESAB to identify and manage sustainability-related impacts to
our business and the global community. We seek to conduct our global
operations in an environmentally sound manner. We are committed to
ensuring each worker returns home every day in the same condition and
has the opportunity for a rich and fulfilling career.
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Shaping our priorities
This Report builds upon the results of our “materiality assessment” conducted in 2022. The purpose
of the assessment was to identify the environmental, social, and governance issues most important • Greenhouse Use (GHG)
Emissions
to our stakeholders. The assessment was designed to understand our Company’s contributions to
• Energy Management
sustainable development and to identify the significant impacts that our organization has on people,
• Hazardous Materials
the environment, and the economy.
(HAZMAT)
The materiality assessment was a critical milestone in establishing ESAB’s approach to sustainability • Life-Cycle Approach
and corporate responsibility. Among other things, the assessment informed our analysis of business risks • Waste Management
and related opportunities. We also gained additional perspectives of how we create value for society. • Water Management
The materiality assessment identified 17 ESAB priorities or significant environmental, social, and
• Diversity, Equity, and
governance topics, each of which we continue to monitor and manage, as appropriate. Inclusion
In addition, using the findings from the materiality assessment as well as our internal assessment of • Employment Practices
that data and taking into account an ever evolving world, we prioritized four of these topics to serve • Human Rights
• Local Communities
as the focus of our sustainability program: (1) workplace health and safety, (2) business ethics and
• Workplace Health and
compliance, (3) technology leadership and innovation, and (4) quality and resource management,
Safety
including management of hazardous materials and our supply chains as well as reducing our
environmental impact.
• Business Ethics and
We plan on continuing to integrate these priorities into our strategy and operations through the Compliance
collaboration of management and associates across multiple functions around the world. • Technology Leadership
and Innovation
Our 2022 materiality assessment did not utilize the definitions of materiality under U.S. federal
• Quality Management
securities laws or the EU Corporate Sustainability Reporting Directive (CSRD). Accordingly, the • Risk Management
topics we have prioritized based on the 2022 materiality assessment are not necessarily material under • Stakeholder Engagement
the U.S. federal securities laws or the CSRD. • Supply Chain
Management
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Sustainability and our values
Our Values shape ESAB’s entire culture. Our sustainability program is no different. We believe our corporate Purpose and Values
are aligned with—and are strengthened by—our commitment to sustainability and corporate responsibility. The integration of our
culture with our sustainability program enables us to SHAPE a more sustainable world.
S H A P E
The Shared Success of
our sustainability program
means collaborating with
We Help Each Other Win
by bringing stakeholders
together to learn, to explore,
Our sustainability program is
built on Always Improving.
Our sustainability program
is driven by Purposeful
Leadership. Management
Every Voice Valued will
continue to be integral in the
building and strengthening of
We are taking an iterative
our customers to address and to hold ourselves approach to our sustainability from all areas of our our sustainability program.
sustainability challenges. Our accountable. We established initiatives and reporting. organization are committed We are committed to routinely
success is a direct reflection a governance structure Our sustainability journey to, and responsible for, identifying and engaging with
of our ability to create more for our sustainability will continue to evolve as sustainability. We are our stakeholders—including
sustainable solutions. Shared program with participation we pursue new pathways to integrating sustainability our employees, customers,
Success is founded in our and accountability across make progress. through all levels of our suppliers, distributors,
ability to meet or exceed multiple functions and Company and across the contractors, investors,
our customers’ expectations geographies. In addition globe. business partners, and
for quality, safety, integrity, to collaborating as a team members of the communities
reliability, and innovation. within ESAB, we also where we operate.
recognize the importance
of routine engagement with
external stakeholders to
better understand and learn
from their perspectives.
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Sustaining our advantage
Our Purpose and Values are part of our business management system, team, which is two-thirds female and/or racially or ethnically diverse, and
ESAB Business Excellence (EBX). EBX is critical to sustaining our Board of Directors, which is half female and/or racially or ethnically diverse.
advantage across all facets of our business. EBX provides the tools,
EBX is also integral in driving our resource management programs. Our
techniques, and values that ensure we are continuously improving our
team continually assesses our corporate footprint and engages in site
business, while inspiring us to be responsible corporate citizens.
rationalizations which generally lower our resource consumption and
EBX is shaped by the following principles which are centered around lead to energy savings. Since 2016, we have reduced our manufacturing
continuous improvement: footprint by approximately 40%.
• Tools: We identify the right tools to define and solve problems, apply Finally, product innovation is a vital component of our process for creating
lean practices, promote growth, and improve business operations. value for our customers through EBX. We believe customers want safer
• Process: We drive improvement by applying our core EBX processes, and more efficient products, which protect the users and the environment.
learning from the results, and adapting as needed. Our research and development team introduced 135 new products in 2023.
Many of these products are more efficient, lessening their environmental
• People: We foster collaboration to build a deep culture of continuous
impact, and boast new safety features. For example, our recently launched
improvement across all our business teams.
Combirex Pro Automated Cutting Machine is equipped with an innovative
• Voice-of-Customer Research: Each year, ESAB associates develop
safety package designed to detect people within the work envelop and stop
strategic plans based on extensive customer research. This voice-of-
the system to avoid an incident. And last year, our Victor brand launched
customer research allows our businesses to have a clear picture of our
the HRF2400 Pro flowmeter regulator with new gas control technology to
market realities, our threats, our risks, our opportunities, and ultimately,
set accurate flow rates and reduce gas waste. Additional information about
our path forward.
these and other recent innovative products is available under “Technology
• Five priorities: We know through continuous conversations with our Leadership and Innovation” on page 56.
customers that their top concerns remain safety, quality, delivery, cost,
and growth of our brands and products. With EBX as our approach to
business and our customer’s top concerns as our focus, we work to meet
or exceed customer requirements every day.
EBX has enabled the Company to shape a robust sustainability program built
on a deep culture of continuous improvement which ensures every voice
is valued across our business. This dedication is reflected in our diversity,
equity, and inclusion program and resulted in our diverse executive leadership
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SASB index
The following table maps information contained elsewhere in this Report to the indicated disclosure topics and accounting metrics in the Industrial
Machinery and Goods industry SASB standard. Information reported in accordance with the foregoing standard and throughout this report is not necessarily
material within the meaning of U.S. federal securities laws and its inclusion herein should not be construed as a determination by the Company as to its
materiality for purposes of the federal securities laws or other applicable laws.
SASB Topic Accounting Metric Code ESAB Disclosure
Energy Total Energy Consumed RT-IG-130a .1 See “Our Performance” on page 19 of this Report .
Management
Percentage Grid Electricity RT-IG-130a .1 During 2023, approximately 91% of our global electricity usage came
from non-renewable energy resources .
Percentage Renewable Energy RT-IG-130a .1 During 2023, approximately 9% of our global electricity usage came
from renewable energy resources .
Employee Health Total Recordable Incident Rate RT-IG-320a .1 See “Health and Safety Performance Metrics” on page 38 of this Report .
and Safety
Fatality Rate RT-IG-320a .1 ESAB does not report fatality rate .
Near Miss Frequency Rate RT-IG-320a .1 ESAB does not report near miss frequency rate .
Fuel Economy Sales-weighted fleet fuel efficiency for medium- and RT-IG-410a .1 Not applicable to ESAB
and Emissions in heavy-duty vehicles
use-phase
Sales-weighted fuel efficiency for non-road equipment RT-IG-410a .2 Not applicable to ESAB
Sales-weighted fuel efficiency for stationary generators RT-IG-410a .3 Not applicable to ESAB
Sales-weighted emissions of: (1) nitrogen oxides (NOx) RT-IG-410a .4 Not applicable to ESAB
and (2) particulate matter (PM) for: (a) marine diesel
engines, (b) locomotive diesel engines, (c) on-road
medium- and heavy-duty engines, and (d) other non-road
diesel engines
Materials Sourcing Description of the management of risks associated with RT-IG-440a .1 ESAB regularly evaluates critical material risks in our supply chain and
the use of critical materials builds information from the evaluation into our business continuity
plans . If the part is sourced from a sole supplier, we utilize mitigation
plans to ensure continuity of supply .
Remanufacturing Revenue from remanufactured products and RT-IG-440b .1 ESAB does not report revenue from remanufactured products and
Design and remanufacturing services remanufacturing services .
Services
Activity Metrics Number of units produced by product category RT-IG-000 .A Proprietary
Number of employees RT-IG-000 .B Approximately 9,000 persons as of December 31, 2023
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