ALAMO GROUP TARGETS 50% GREENHOUSE GAS EMISSIONS REDUCTION BY 2030

Rhea-AI Summary

Alamo Group Inc. (NYSE: ALG) announced a target to reduce its greenhouse gas emissions by 50% by 2030, using 2019 as a baseline. The company has already cut energy consumption by 9% and aims for an additional 30% reduction. Investment in energy-efficient technologies, including LED lighting and renewable energy sources, will support this goal. The company emphasizes that these efforts not only benefit the environment but also promise strong returns for shareholders. The sustainability report covering these efforts will be released in 2021.

Positive

• Targeting a 50% reduction in greenhouse gas emissions by 2030.
• Achieved a 9% reduction in total energy consumption since 2019.
• Plans to invest in energy-efficient technologies to drive further reductions.
• Commitment to purchase energy from renewable sources for a lower carbon footprint.

Negative

• Potential risks in achieving ambitious ESG (Environmental, Social, and Governance) targets.
• Market demand fluctuations and supply chain disruptions remain concerns.

SEGUIN, Texas, March 7, 2022 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) announced today a 2030 target to reduce its greenhouse gas emissions by 50% as compared to its 2019 base year.  This target covers Scope 1 & 2 emissions as defined in The Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standards published by the World Business Council for Sustainable Development and World Resources Institute.  Additional information regarding the Company's sustainability goals and actual emissions for the past three years will be included in its forthcoming 2021 Sustainability Report.

Dan Malone, Alamo Group's Executive Vice President and Chief Sustainability Officer, commented, "We are pleased to announce an initial 2030 target for reducing our Company's greenhouse gas emissions. Setting meaningful Scope1 & 2 GHG emissions goals is an   important step in the right direction.  Since 2019, our Company has reduced, in absolute terms, its total energy consumption by about 9%, and we anticipate that we will further reduce it by an additional 30% by 2030.  More efficient use of energy, which accounts for 97% of our GHG emissions, will be a primary driver toward achieving our 2030 emissions goal. Investments in LED lighting and energy management systems, as well as energy efficient welding, laser cutting, and air compression equipment have been, and are expected to be, the major contributors in this effort.  Installing more efficient heating systems and other building improvements to reduce winter heat loss are also expected to produce significant favorable impacts.

"Not only do we plan to become more energy efficient, but we expect the electric power we use in 2030 will also have a much lower carbon footprint. Our Company plans to make additional investments in onsite renewable power generation facilities, and we will continue to purchase power from renewable and other low carbon sources to incentivize power companies to continue to lower the carbon footprint of electricity taken from the grid.

Jeff Leonard, Alamo Group's President and Chief Executive Officer commented, "We've made very good progress to date, and our early successes have encouraged us to set the more aggressive target.  We still have many opportunities to make internal improvements, which not only reduce our GHG emissions, but also provide an excellent return on investment for our shareholders.  Scaling up these best practices is an immediate priority while we concurrently develop plans for measuring and implementing sustainable business practices throughout our supply chain."   

About Alamo Group

Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications. Our products include  truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers,  snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. The Company, founded in 1969, has approximately 4,200 employees and operates 29 plants in North America, Europe, Australia and Brazil as of December 31, 2021. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

Forward Looking Statements

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: overall market demand, continuing  impacts from the COVID-19 pandemic including more significant supply chain disruptions, further reductions in customer demand, sales and profitability declines, operational disruptions, full or partial facility closures, our inability to achieve planned ESG-related targets, and other similar impacts, competition, weather, seasonality, currency- related issues, and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

View original content:https://www.prnewswire.com/news-releases/alamo-group-targets-50-greenhouse-gas-emissions-reduction-by-2030-301497101.html

SOURCE Alamo Group Inc.

FAQ

What is Alamo Group's greenhouse gas emissions target for 2030?

Alamo Group aims to reduce its greenhouse gas emissions by 50% by 2030.

What has Alamo Group achieved in terms of energy consumption since 2019?

The company has reduced its total energy consumption by 9% since 2019.

What investments is Alamo Group making to support its sustainability goals?

Alamo Group is investing in energy-efficient technologies and renewable energy sources.

When will Alamo Group release its sustainability report?

The sustainability report detailing emissions and goals will be released in 2021.

What risks could affect Alamo Group's sustainability targets?

Risks include market demand fluctuations and supply chain disruptions.