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General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for:
Industrial Machinery & Goods

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Energy Management

Energy Management

Energy is a critical input in industrial machinery manufacturing. Purchased electricity represents the largest share of energy expenditures in the industry, followed by purchased fuels. The type of energy used, magnitude of consumption, and energy management strategies depends on the type of products manufactured. A company’s energy mix, including the use of electricity generated on-site, grid-sourced electricity, and the use of alternative energy, can play an important role in influencing the cost and reliability of energy supply, and ultimately affect the company’s cost structure and regulatory risk.

Employee Health & Safety

Employee Health & Safety

Employees in industrial machinery manufacturing facilities face health and safety risks from exposure to heavy machinery, moving equipment, and electrical hazards, among others. Creating an effective safety culture is critical to proactively mitigate safety incidents, which could result in higher healthcare costs, litigation, and work disruption. By implementing strong safety protocols, including incident reporting and investigation, and promoting a culture of safety, companies can minimize safety-related expenses and potentially improve productivity in the long term.

Product Design & Lifecycle Management

Fuel Economy & Emissions in Use-phase

Many of the Industrial Machinery & Goods industry’s products are powered by fossil fuels and therefore release greenhouse gases (GHGs) and other air emissions during use. Customer preferences for improved fuel economy combined with regulations addressing emissions are increasing the demand for energy-efficient and lower-emission products in the industry. As such, companies that develop products with these characteristics may be well-positioned to capture expanding market share, reduce regulatory risk, and improve brand value.

Materials Sourcing & Efficiency

Materials Sourcing

Industrial machinery companies are exposed to supply chain risks when critical materials are used in products. Companies in the industry manufacture products using critical materials with few or no available substitutes, many of which are sourced from deposits concentrated in only a few countries, which are subject to geopolitical uncertainty. Companies in this industry also face competition due to increasing global demand for these materials from other sectors, which can result in price increases and supply risks. Companies that are able to limit the use of critical materials through use of alternatives, as well as secure their supply, can mitigate the potential for financial impacts stemming from supply disruptions and volatile input prices.

Remanufacturing Design & Services

Industrial machinery and goods manufacturing uses large quantities of steel, iron, aluminum, glass, plastics, and other materials. Remanufacturing of industrial machinery systems (called "cores") is an opportunity for industrial machinery companies to limit the amount of raw materials needed to produce new machinery, as well as the time and other resources required to produce finished goods. Remanufactured products can also create value from products otherwise destined for disposal or recycling. Industrial machinery companies can achieve cost savings by reusing end-of-life parts to build remanufactured machines, which may be resold to customers. Thus, remanufacturing in process and design can reduce demand for raw materials, reduce manufacturing costs, and create new sales channels.

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