SASB Index

Sustainability Accounting Standards Board (SASB)

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Electrical & Electronic Equipment and Medical Equipment & Supplies

SASB Metric
2021 Disclosure
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable

(1) 86,275 Gigajoules (“Gj”) of total energy consumption
(2) 79% grid electricity
(3) 28% renewable
See Energy and GHG Emissions section for more information.
(1) Amount of hazardous waste generated
(2) Percentage recycled

(1) 334 metric tons of hazardous waste
(2) We have not been able to collect the percentage-recycled data from all sites. The sites that were able to provide such information for 2021 accounted for approximately 35% of the total hazardous waste.
(1) Number and aggregate quantity of reportable spills
(2) quantity recovered

In 2021, Novanta had no reportable spills as defined by the U.S. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Ratio of weighted average rate of net price increases (for all products) to the annual increase in the U.S. Consumer Price Index

Due to the basis of this metric being included in the U.S. Consumer Price Index and the nature of Novanta’s operations in a business-to-business (B2B) environment, we do not consider this disclosure to be relevant to our business.
Description of how price information for each product is disclosed to customers or to their agents

Novanta sells medical technology products; barcode scanning, RFID readers and machine vision cameras; components and subsystems for laser-based diagnostic, analytical, micromachining, and fine material processing applications; and miniature precision optical encoders, robust inductive encoders, energy-efficient motors, high-performance servo drives, high-speed air bearing spindles and integrated mechatronic solutions (for more details, visit Novanta is a trusted technology partner to medical and advanced industrial OEMs. Business units negotiate price, volume, delivery times, incoterms, payment terms, limitations of liability, and lead times with OEMs. Price negotiations may be based upon factors such as volume, market share, terms and conditions, long-term commitments, and are generally documented in executed contracts, purchase orders, supply agreements and term sheets.
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(1) Number of recalls issued (2) Total units recalled

1) 1 recall (field correction) issued in 2021 (FDA notified action: software update during regular product maintenance or by trained service technicians)
2) 1,000 total units recalled
Total amount of monetary losses as a result of legal proceedings associated with product safety

List of products listed in the FDA’s MedWatch Safety Alerts for Human Medical Products database

Number of fatalities related to products as reported in the FDA Manufacturer and User Facility Device Experience

Number of FDA enforcement actions taken in response to violations of current Good Manufacturing Practices (cGMP), by type

Total amount of monetary losses as a result of legal proceedings associated with false marketing claims

Description of code of ethics governing promotion of off-label use of products

Novanta registered medical devices (FDA, CE, etc.) have an ‘indication for use’ described in the product’s instruction for use (IFU); ‘off-label use’ is legally not permitted. No indication of potential ‘off-label use’ is provided. Other Novanta products that are not medical devices but are part of or supplement of medical devices of Novanta customers cannot be used without them and therefore the customer products are subject to the legal requirements regarding the adequate labeling or use in accordance with the ‘indication for use’.
Percentage of products by revenue that contain IEC 62474 declarable substances

Novanta does not specifically track products containing IEC 62474 declarable substances. However, we strive to comply with local laws and regulations for potentially hazardous substances, including REACH, RoHS, TSCA, and California Proposition 65. More information on our specific key compliance policies can be found on the Corporate Citizenship page of our website.
Percentage of eligible products, by revenue, that meet ENERGY STAR® criteria

Not applicable. At this time, ENERGY STAR criteria have limited applicability to Novanta products given our B2B business model.
Revenue from renewable energy-related and energy efficiency-related products

Due to the nature of our B2B relationship with our customers and the multiple end-user applications in which many of our products may be used, we do not have verifiable tracking of our sales from renewable energy-related and energy efficiency-related products.
Discussion of process to assess and manage environmental and human health considerations associated with chemicals in products, and meet demand for sustainable products

Novanta’s Corporate Sustainability Policy aims to act in an environmentally responsible manner in the development and manufacture of our products and services. Our employees and managers are expected to support the implementation of this policy in accordance with their duties and responsibilities. Based on applicable environmental regulations, customer requirements, and other specifications, our goal is to protect the environment, reduce hazardous and non-hazardous waste, reduce energy usage, maximize the use of renewable energy, minimize environmental pollution, and continuously improve environmental performance.

At Novanta, new product development will focus on material reduction, energy efficiency, distribution and shipping methods, packaging concepts, and recycling to make our products more sustainable.

Novanta complies, in all material respects, with applicable standards, such as RoHS, including DEHP-free tube sets, REACH, Conflict Minerals, and CA-Prop 65 regulatory compliance for all products. Refer to our Corporate Citizenship Downloads.
Total amount of products accepted for takeback and reused, recycled, or donated, broken down by (1) devices and equipment and (2) supplies

(1) Zero
(2) Zero
Percentage of (1) entity’s facilities and (2) Tier 1 suppliers’ facilities participating in third-party audit programs for manufacturing and product quality

(1) 100% of manufacturing sites. The majority of our products are produced in manufacturing facilities certified under ISO 9001 certification, while most of our products manufactured for the medical market are produced in factories under ISO 13485 certification. In 2021, two of our manufacturing facilities were recertified to ISO 14001 and two additional facilities were certified to ISO 14001 for the first time. Three production facilities also reached ISO 45001 certifications in 2021.

Certain visualization solutions, thermal chart recorders, imaging informatics, and medical insufflators, pumps, cameras, and accessories products are manufactured under current good manufacturing practices (cGMPs), which is a requirement of their medical device classification by the United States Food and Drug Administration (the “FDA”).

(2) Novanta does not currently track the percentage of supplier facilities participating in third-party audit programs for manufacturing and product quality.
Description of efforts to maintain traceability within the distribution chain

Novanta maintains traceability throughout all stages of manufacturing and distribution through our ERP systems.
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Description of the management of risks associated with the use of critical materials

Novanta recognizes that there are serious human rights abuses associated with the extraction, transport, and trade of conflict minerals from the Democratic Republic of Congo and the adjacent countries (collectively, the “DRC Region”) and is committed to the responsible sourcing of minerals throughout its global supply chain. With the support of our vendors, we conduct annual Reasonable Country of Origin Inquiries (RCOI) that seek to identify and eliminate from our supply chain any conflict minerals that have originated from the DRC Region that may have, directly or indirectly, financed or benefited the armed groups in the region. For 2020, we surveyed 955 Tier-1 suppliers and received responses from approximately 88% of these suppliers. As of the date of this report, we are still in the process of conducting the RCOI for our 2021 conflict minerals reporting cycle. We will continue to work with our suppliers to increase the response rate and improve the quality of their and our conflict minerals due diligence efforts.

Novanta works so that our products comply with the EU Chemicals Regulation (Registration, Evaluation, Authorization, and Restriction of Chemicals, also known as REACH). With regards to the EU Directive on the Restriction of Hazardous Substances (RoHS), our Photonics and Precision Motion businesses comply with RoHS 3. Our MIS businesses comply with RoHS 2 and are working to implement the new requirements in accordance with RoHS 3, applying to medical systems only as of July 2021. Novanta is also committed to compliance with China RoHS.

We use an internal chemical classification and labeling system with reference to the Globally Harmonized System (GHS) and/or references to regional classifications (e.g., TSCA, IESCS).

Novanta complies with applicable standards, such as RoHS, including DEHP-free tube sets, REACH, Conflict Minerals, and CA-Prop 65 regulatory compliance for all products. Refer to our Corporate Citizenship Downloads.
Description of policies and practices for prevention of: (1) corruption and bribery and (2) anti-competitive behavior

Refer to our Code of Ethics and Business Conduct (pages 11 and 14). Novanta conducts adverse data search and monitoring of significant customers and suppliers using an online third-party monitoring tool so that we do business only with companies with proper policies, procedures, and controls in place to prevent corruption, bribery, and anticompetitive behaviors.
Total amount of monetary losses as a result of legal proceedings associated with bribery or corruption

Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations

Total amount of monetary losses as a result of legal proceedings associated with bribery or corruption

Description of code of ethics governing interactions with health care professionals

The Novanta Code of Ethics and Business Conduct requires all of our activities to be conducted in accordance with all applicable laws and regulations. The Novanta Code of Ethics and Business Conduct states that “bribes and kickbacks are criminal acts, strictly prohibited by law.” This includes health care professionals. Given our OEM business model, Novanta does not typically interact directly with health care professionals.
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Number of units (EE) produced and (MS) sold by product category

Given the wide range of components produced and sold by Novanta, disclosure of the number of units produced and sold by product category is not considered meaningful.
Number of employees

Approximately 2,700 full-time and part-time employees as of December 31, 2021
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