August 2023 - Sustainability at Checon

Our Climate Champion Commitment to GHG Reduction

Introduction
As a responsible corporate citizen, Checon LLC, with operations in the United States, has set a target to significantly reduce its Greenhouse Gas (GHG) emissions over the next two years.  Our company’s leadership has pledged to decrease Checon’s emissions by 50% by 2025, using the emission levels of the baseline year 2019 as a reference.

Growth Through Strategic Acquisition & Organic Market Expansion
Checon experienced significant growth through a strategic acquisition in 2023, compounded by expansion in its facility footprint, operations activities, infrastructure, and general support programs.  This increase in production and support activities was made more significant by the organic growth achieved in 2019 through 2022 from Checon’s penetration of crucial market sectors, primarily those emphasizing electrification and alternative energy distribution.  Notably, this overall expansion occurred simultaneously while accelerating the reduction in GHG emissions, a testament to Checon's commitment to sustainable and responsible business practices.

2022 Results:
Scope 1- 925.00 (tons)
Scope 2- 1780.00 (tons)
GHG Intensity- 0.0000588044
Baseline Reduction- 9%

50% GHG Intensity & Reduction Targets:
2023- 0.0000500926 | 22% Reduction
2024- 0.0000308845 | 52% Reduction
2025- 0.0000247414 | 62% Reduction

Checon’s Reduction Strategy
‍
Manufacturing and Process Efficiency: Implementing efficiency measures in the manufacturing processes through acquisition efficiencies, consolidation of capabilities and manufacturing automation systems. Specific examples include the ongoing replacement of gas furnaces with induction furnaces and the addition of motorized valves to air storage tanks (completed in 2024), will result in close to a 10% reduction in GHG emissions. These implementations demonstrate Checon's commitment to improving efficiency and doing so in an environmentally conscious manner.

Renewable Energy Partnerships: Through strategic partnerships with electricity suppliers, Checon has enrolled in market-based rates, significantly subsidized by renewable energy sources, estimated at 40%.  This initiative is expected to be fully implemented at the close of Q1, 2024, and will contribute approximately 25% to the emission reduction goal, fostering a transition towards greener energy solutions.

Digital and EV Efficiency Opportunities: Through strategic partnerships with electricity suppliers, Checon has enrolled in market-based rate programs significantly subsidized by renewable energy sources, estimated at 40%.  This initiative is expected to be fully implemented at the close of Q1, 2024, and will contribute approximately 25% to the emission reduction goal, fostering a transition towards greener energy solutions.

Looking Forward with Continuous Improvement Beyond 2025
With year-over-year targets meticulously outlined for Scope 1 and Scope 2 emissions and our supply chain partnerships focused on reductions in Scope 3 emissions, Checon will continue to deepen its commitment to sustainability for years. Our leadership is planning for the present and steadfastly preparing for a future where corporate responsibility and environmental stewardship are at the forefront.

For more information about Checon’s Sustainability programs, contact Ryan Powers, SVP, Operations Alloy Holdings, LLC at ryanpowers@morvilloproducts.com.