E3. Emissions and energy This is our third year of completing a greenhouse gas (GHG) emissions inventory. The calculations follow the guidance provided in the GHG Protocol Corporate Standard, covering Scope 1 (direct), Scope 2 (electricity-indirect), and select Scope 3 emissions categories. Please see the Appendix for details on the inventory methodology and energy and emissions data disaggregated at the individual facility level. We consider Scope 1 emissions to be negligible given our “OpEx Lite” operating model, where we do not own or operate any large factories. Emissions from our 昀椀eld service and training vehicle 昀氀eet do not represent more than 5% of our total emissions and are excluded from our GHG inventory per GHG Protocol guidelines. Energy consumption among our leased facilities globally creates our Scope 2 emissions. We are managing Scope 2 emissions by increasing on-site PV generation capacity by installing new PV systems on leased buildings and completing energy e昀케ciency projects on a continuing basis. Our energy management program is informed by the ISO 50001 standard, though we do not currently hold ISO 50001 certi昀椀cation. Note that we intentionally forgo market solutions such as Renewable Energy Certi昀椀cates (RECs) to drive down Scope 2 emissions 昀椀gures. This allows us to con昀椀dently claim that our operations run on renewable energy, while cultivating a net positive outcome. By leaving installed PV on the leased buildings after we vacate, we leave the facilities in a better condition than originally found. We completed a screening inventory as outlined in the GHG Protocol to determine which of the 昀椀fteen Scope 3 categories to include in the GHG inventory. Factors in昀氀uencing inventory inclusion or exclusion include relevance and the ability to capture and disclose accurate data. Several of our key suppliers and customers have set ambitious GHG reduction targets through the Science-Based Targets Initiative (SBTi), helping to drive down our Scope 3 emissions. We continue to measure our Scope 3 emissions and explore opportunities for further reductions moving forward. Table 1: 2023 GHG emissions* Emissions type Units Direct emissions (Scope 1) (MTCO e) 0 2 Electricity-indirect emissions (Scope 2) (MTCO e) 15,529 2 Other indirect emissions (Scope 3) (MTCO e) 49,077 2 Total emissions (MTCO e) 64,606 2 *All emissions 昀椀gures represent location- and market-based calculation. 24
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