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Environmental, Health & Safety

Applied’s Environmental, Health and Safety (EHS) process promotes associates’ safety and environmental awareness by defining a set of systems, activities, roles, responsibilities and accountabilities that form the foundation necessary to support the EHS goals and culture of Applied®.

The importance of EHS performance is shared throughout Applied via internal announcements, formalized procedures, Intranet postings and training requirements. Our communications reinforce the following:

• Expectations, roles and responsibilities
• Emphasis on and awareness of EHS
• EHS implementation and success at Applied
• Applied’s EHS Policy, which all associates must review and acknowledge via signature

We emphasize five EHS procedures that align with EPA compliance as well as eight Life Critical Procedures (LCPs). Training for LCPs has been deployed throughout our U.S.-based workforce, which is the substantial majority of our operations.

• Vehicle Safety
• Confined Space Entry
• Electrical Safety
• Line Breaking
• Fall Protection
• Hot Work
• Lockout/Tagout/Try
• Respiratory Protection

Environmental procedures:
• Hazardous Waste Management
• Universal Waste
• Spill Prevention Controls & Countermeasures
• Used Oil
• Air Emissions

Root cause analyses are performed after incidents, with key learnings distributed to our field operations. Regular updates are also provided to senior leadership regarding the status of safety initiatives as well as EHS metrics. Our management team “walks the talk” by demonstrating passionate leadership and commitment to EHS through defined activities and monitoring for adherence to the EHS Management Process. At Applied, we have the foundation, resources and leadership commitment to reinforce a world-class EHS culture and drive EHS to new heights across our organization.

Hazardous Waste Management

As Applied is primarily a distributor of industrial products, our operations typically do not generate a significant amount of hazardous waste. However, as a responsible steward of the environment, we want to ensure any such waste is handled in an appropriate manner and disposed of properly.

To ensure the proper disposal of this material, hazardous waste is handled through our distribution center network via engagements with reputable hazardous waste vendors.

The volume of hazardous waste requiring disposal decreased in 2019 from our baseline reporting year of 20181:

Due to the limited amount of hazardous waste generated, our distribution centers are either classified as Very Small Quantity Generators or Small Quantity Generators.

Associate Safety

Applied is committed to the safety and well-being of all associates. In the U.S., we provide all of our associates with training in the areas of slip and fall prevention, fire extinguisher safety, and defensive driving.

In addition, role-specific training is provided based on the types of hazards our associates may face while carrying out their job function, ranging from operating in confined spaces, to forklift operation and lockout / tagout training. Overall, we have sought to raise associate awareness of risks in the workplace. The following metrics display our commitment of a safe workplace to associates, our customers, and the public, as well as associate commitment to their co-workers:

We monitor our Total Recordable Incident Rate (TRIR), which we believe to be well below industry average, as a measure of our safety performance:

We have also sought to reduce incident rates for the most frequently occurring types of injuries in the workplace. As a result, we have been able to drive down frequency of workplace injuries year over year (based on number of events per $10m in payroll) even with increased payroll due to business growth:

In addition, while medical costs have risen in broader society, the average value of our Workers Compensation claims is trending downward:

Our EHS Policy

Applied Industrial Technologies is committed to sound Environmental, Health and Safety (EHS) practices every day. We actively champion safe behaviors, individual accountability, and continuous improvement to protect the health and safety of our associates and the environment. We ensure adherence to regulatory requirements and pollution prevention efforts including promoting efficient use of natural resources, and proactively managing recycle programs. By aligning EHS activities with our Core Values, we demonstrate our commitment to benefiting all Applied® stakeholders, including associates, customers, communities and shareholders.

Did you Know?

Applied® is ranked among the top 15 of Ohio Fortune 1000 companies for Diversity in Corporate Governance, according to the 2018 report from the National Diversity Council.