Tennant : 2024 (FY23) Sustainability Report

2024 (FY23) SUSTAINABILIT Y REPORT

Table of contents

05		18		31		47

03 Our leadership

Message from our CEO

Message from our Senior Director of Sustainability & ESG

05 About Tennant Company

Our brands & markets

Our products

Recognition

Global footprint

08 Sustainability at Tennant

Integrating sustainability

Thriving People. Healthy Planet.

Materiality

Sustainability governance

14 Measuring our progress

Thriving People. Healthy Planet. progress report

18 Thriving People

Employee success Health & safety Well-being& development Diversity, equity, & inclusion Gender & equitable pay Social impact

Human rights

Investing in our communities Shared spaces Delivering on our purpose

31 Healthy Planet

Climate & energy

Our commitment to net-zero by 2040 Greenhouse gas (GHG) emissions Renewable energy

Fleet emissions

Value chain emissions Water & chemical use Establishing baselines Circular products & waste Circular products

Accelerating the adoption of robotic cleaning

ISO 9001 & 14001 certification IPC carbon footprint analyses Waste

47 Governance

Ethics & integrity

Our suppliers

50 About this report

Scope Structure Stakeholder engagement

UN Sustainable Development Goals

Environmental, social, and governance (ESG) metrics

Forward-looking statements

58 Index

Our leadership | About Tennant | Sustainability | Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index

3

Our leadership

Message from our CEO

2023 was a record year for Tennant Company. In addition to our financial results, I am proud to highlight the significant progress we have made in our sustainability journey. Over our 150+ year history, Tennant has a strong legacy of stewardship; and now, we have refined that commitment into a structured approach to define and deliver meaningful results against specific sustainability targets. The Thriving People. Healthy Planet. framework that we activated in 2023 details our bold future targets and outlines our approach

to embedding sustainability into the fabric of daily operations at Tennant. This 2024 (FY23) Sustainability Report demonstrates the progress we are making.

Thriving People.

We know that when our business is inclusive and reflects the communities where we operate and the customers we serve, everyone has better outcomes. That's why we have set meaningful ambitions grounded in inclusivity: we aspire to increase the representation of women in leadership positions globally to 33% by the end

of 2030, and increase the representation of U.S. employees identifying as BIPOC (Black, Indigenous, People of Color) to 30% over the same timeframe.

Our investments in an inclusive workplace support our ambitions: we have established diversity, equity, and inclusion (DE&I) training for leaders and developed the structured ways we support our employee resource groups (ERGs), which create spaces for our employees to connect, share their knowledge and experience, and amplify their voices. Our global DE&I Council, launched last year and comprised of employees from across our business functions, geographic regions and diverse populations, will also play a vital role in advancing our DE&I initiatives worldwide.

Healthy Planet.

We know that we share in the responsibility to improve our environment and address global climate challenges. We are partnering with our customers to drive innovation across our business and through our products, helping them reach their sustainability goals, and contributing to our own bold goals. We are leading the way in the cleaning equipment industry

with our net-zero by 2040 targets that were approved by the Science Based Targets initiative (SBTi).

To continue our journey to improve the circularity of our products and offer sustainable solutions that help our customers clean spaces more effectively and efficiently, we've identified five themes where we can drive the most impact. Our product development and engineering teams are integrating these themes into their processes.

Looking ahead

In this important work, we know that we are well aligned with our customers, employees, and stakeholders in our efforts to drive positive change and create shared value. Our Thriving People. Healthy Planet. framework aligns our business strategy with the principles of sustainability and promotes accountability for the delivery of targets across our business. Our commitment to sustainability at Tennant is steadfast, and it is an investment in our future.

A sincere thank you to our employees, customers, suppliers, and shareholders for your support and shared interest in our bold goals. Together, we are building a more sustainable future for generations to come.

Sincerely,  

David W. Huml 

President and CEO of Tennant Company 

Our leadership | About Tennant | Sustainability | Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index

4

Message from our Senior Director of Sustainability & ESG

As a global community, we are at a critical juncture that requires leadership from businesses, governments, civil society, and others to drive the systemic change needed to address our collective global challenges.

At Tennant, that leadership is not new. We've been at this work for a long time, as evidenced by our commitment to stewardship and our technologies that require less detergent, use less water, and improve the experience for the operator. This all

comes to life in the benefits delivered to collective and shared spaces when a Tennant product provides a differentiated type of clean.

At Tennant, sustainability is inspired by our vision to create a cleaner, safer, healthier world - and it sits at the intersection of our operations, products, and customers' needs.

In 2023, we launched our Thriving People. Healthy Planet. sustainability framework. The framework is rooted in the efforts we make every day to enable our vision and serves as the lens for the company to set goals, align plans, and integrate sustainability across our business.

Over the course of 2023, we began implementing and activating this framework, integrating it across our corporate strategy, Elevate, setting bold goals, and driving performance. Information about how we are embedding sustainability across how we think, plan, and operate at Tennant is found in this report.

We recognize our unique opportunity - and responsibility - to create sustainable value for our business, customers, and society. In doing so,

we are enabling business performance, setting our own goals that drive efficiencies and innovation across our business, and delivering solutions that solve the challenges we hear about from our customers, supporting them at every stage of their sustainability journey.

This work allows us to have a broader impact and affect change on the global issues we are uniquely positioned to contribute solutions to.

We know Tennant's impact is amplified when we work with others, sharing knowledge and resources to strengthen our collective action toward a more sustainable future.

Join us as we work together to create a cleaner, safer, healthier world so all may thrive.

Sincerely,

Reilly Goodwin

Sr. Director of Sustainability and ESG

& Vice President, Tennant Foundation

Our leadership | About Tennant | Sustainability | Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index	5

About Tennant Company

George H. Tennant began his business in Minnesota in 1870, originally operating a sawmill on the banks of the Mississippi River in Minneapolis. He quickly transitioned to making wooden flooring for houses and businesses in the growing metropolitan area. The Company reached a turning point in the 1930s when leaders recognized the potential in a newly patented device that automated laborious floor maintenance tasks and began to focus the business on floor care.

Today, Tennant Company, headquartered in Eden Prairie, Minnesota, is a world leader in designing, manufacturing, and marketing sustainable cleaning

innovations that empower our customers to create a cleaner, safer, and healthier world.

For more than 150 years, our products have cleaned shared spaces around the world, from retail establishments and grocery stores to airports, factories and warehouses, and from arenas and stadiums, office buildings, schools, and universities, to hospitals and clinics, and more. Throughout our history, we have focused on advancing our industry by pursuing new technologies, creating a culture that celebrates innovation, and investing in our product portfolio to deliver value to our customers and drive

profitable growth for our shareholders. Our innovations and technologies deliver high-performance solutions and allow our customers to clean more sustainably through autonomous operation and reduced energy, water, and chemical use.

Our leadership | About Tennant | Sustainability | Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index

6

Our brands & markets

Our family of brands helps create healthy, safe, and clean shared spaces for the people and places in our customers' care.

• Arenas & stadiums	• Government
• Automotive	• Healthcare
•	Aviation &	• Hospitality
	transportation	• Logistics & warehouse
• Building service	• Manufacturing
	contractors	• Mining
•	Education	• Municipalities
• Electronics	• Pharmaceutical
• Food & beverage	• Retail

Our products

We offer products and solutions consisting of mechanized cleaning equipment for both industrial and commercial use, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and business solutions such as financing, rental and leasing programs,

and machine-to-machine asset management solutions. We are committed to developing cleaning technologies, including robotic solutions, which increase cleaning productivity. Our product and solution categories include:

• Scrubbers	• Autonomous Mobile
• Sweepers	Robot (AMR) Machines
• Sweeper-Scrubbers	• Specialty Cleaning
• Extractors	Equipment
• Burnishers & Floor	• Pre-Owned Machines
Machines	• Cleaning Tools
• Vacuums	• Parts
• Pressure Washers	• Service

Recognition

We continue to be recognized and awarded for our work across the breadth of our business.

• 2023 America's Most Responsible Companies by Newsweek recognition
• Leading our industry with net-zero by 2040 targets, approved by the Science Based Targets initiative (SBTi)
• Received our sixth consecutive A-, Leadership level designation from the CDP Climate Change program
• 2023 Honor Roll Company by St. Catherine University and Twin Cities Business for our achievement of the number of women in senior
  leadership roles and on our Board of Directors
• 2023Good Design Award for the IPC PW-H101, a hot water high-pressure washer with technology that reduces the amount of fuel, electricity, and detergent needed for cleaning

Our leadership | About Tennant | Sustainability | Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index

7

Global footprint

As of December 31, 2023, Tennant Company sells products directly in 15 countries and through distributors in more than 100 countries. We have 11 global manufacturing locations and operations in the Americas, Europe, the Middle East, Africa (EMEA), and Asia Pacific (APAC).

	Employees by region	Employees worldwide*
	AMERICAS		EMEA		APAC		*AS OF DECEMBER 31, 2023
	2,349		1,641		467		4,457

UDEN,

NETHERLANDS

Distribution Center &

Manufacturing: Tennant

EDEN PRAIRIE,				YOKOHAMA,
MINNESOTA, USA				JAPAN
World Headquarters				Japan Sales
Manufacturing: Tennant	LOUISVILLE, KENTUCKY, USA			Headquarters
	Distribution &
	Brush Manufacturing			SHANGHAI, CHINA
AGUASCALIENTES,			VENICE,
		ITALY	APAC Headquarters
MEXICO
		IPC Global	Manufacturing:
Sales & Service		ANTWERP,
	Gaomei, Rongen, & Tennant
	Manufacturing:
HOLLAND,		BELGIUM
	IPC Euromop, Gansow,
MICHIGAN, USA		EMEA
LIMEIRA,	Portotecnia, Pulex, &
Manufacturing:	Headquarters	Soteco factories
BRAZIL
Tennant & Nobles	Manufacturing:
	Alfa & Tennant

SYDNEY,

AUSTRALIA

Australia Sales & Service Headquarters

Our leadership | About Tennant	| Sustainability |Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index	8

Photo by Malisa Lieser, Tennant employee

Sustainability at Tennant

We are at an important juncture in creating positive business, societal, and environmental outcomes. This is not new for Tennant; we have been improving our collective spaces for decades with the core principle of stewardship in mind. We have a legacy of investing in technologies that require less detergent, use less water, improve the experience for the operation, and delivering against our customers' needs. All to create cleaner, safer, and healthier spaces.

Today, we are tackling issues like climate change and circularity, creating an inclusive and diverse workplace, and investing in our communities - all while increasing our leadership and rigor in reporting our progress and complying with the growing body of regulations in the space. But even more, we are creating value for our customers by delivering solutions that help them reach their goals, cementing our leadership, and being the kind of partner they want to work with.

Our leadership | About Tennant	| Sustainability |Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index	9
9 SUSTAINABILITY AT TENNANT

Integrating sustainability across our business

In 2023, Tennant launched a new enterprise strategy guided by our strategic intent to elevate our industry leadership by focusing on key innovations, acquiring new customers, and investing in our business infrastructure and teams. The new strategy, Elevate, is centered on three strategic pillars: Growth, Performance, and People.

Our Growth pillar will target differentiated organic and inorganic growth and expanded profit margins.

Our Performance pillar will focus on how we're transforming the business by modernizing our

business processes and data systems and embedding our Thriving People. Healthy Planet. sustainability framework into how we work across the enterprise.

We recognize that global challenges are accelerating, and our stakeholders' expectations for Tennant's products and how we operate our business

are growing. By centering sustainability in our Performance pillar, we embark on a journey to integrate sustainability more deeply across how we think, plan, and operate our business. This includes how we partner with our customers as we build products and services that solve their cleaning challenges while also helping them achieve their

sustainability goals. This integration allows Tennant to help address rising global challenges and meet our stakeholders' growing expectations around sustainability and environmental, social, and governance (ESG), maintain our leadership position within our industry, and build resilience by future- proofing our business in an ever-changing world.

Our People pillar will prioritize how we attract and develop the best talent. People are the heart of our business. Our investment in employees will allow us to drive change and deliver exceptional products and services to our customers and achieve our growth and performance goals.

• Pricing excellence		• Enterprise resource		• Employee value
• Product innovation		planning		proposition
• New channels & markets		• Sustainability
• New business models
• Strategic acquisitions

Our leadership | About Tennant

| Sustainability |Measuring progress | Thriving People | Healthy Planet | Governance | About this report | Index

10

sustainability framework

Our Thriving People. Healthy Planet. framework provides the lens through which we can set goals, align plans, and integrate sustainability across our business - enabling performance. The framework is centered on two pillars: Thriving People and Healthy Planet. It encompasses six impact areas where we know we can create change - because our business cannot be successful without a healthy planet and thriving people.

We recognize our unique opportunity, and our responsibility, to drive positive change in six impact areas while creating sustainable value for our business, our customers, and society. This framework provides the lens for our company to set our goals, align our plans, and integrate sustainability into our business. We believe that by working toward ambitious commitments together with our stakeholders, we can help people thrive and contribute to a healthier planet.

Employee success - Ensure the health, safety, well-being, and development of all our employees,

and continually support diversity, equity, and inclusion in our company.

Social impact - Help to improve the lives of people we engage with outside of our company, including the workers in our supply chain, the operators who use our products, and the local communities where we operate.

Shared spaces - Partner with our customers and other stakeholders as we reinvent how the world cleans to enhance the health, safety, and

well-being for all who use and rely on our collective and shared spaces.

Driving innovation	Collaborating
in our products	with our customers to
& services	help them achieve their
	sustainability goals

I M PAC T

A R E A S

Integrating sustainability into our business operations, manufacturing & supply chain

Climate & energy - Contribute to global decarbonization by achieving net-zero GHG emissions in our operations and reducing emissions in our supply chain. Increase

our product energy efficiency and offer our customers solutions that will eliminate GHG emissions from the use of our products.

Water & chemical use - Improve water stewardship in our operations and continually strive to design products that require fewer cleaning chemicals and reduce water use while cleaning.

Circular products & waste - Design our products to enhance the ability to repair, replace parts, and recover materials, alongside services and

manufacturing processes that reduce waste and help close the loop on the lifecycle of our products.

Engaging employees,	Strategically investing
stakeholders,	to unlock value
and communities to	from sustainability
deliver shared value	opportunities