About ESG and
Our Reporting Approach
At Novanta Inc. (“Novanta”, the “Company”, “we” or “our”), we deliver innovations that matter. From life-saving surgical technologies to advanced industrial technology solutions for electric vehicle production, Novanta products enhance people’s lives, increase safety, and improve productivity of our customers and end-users. As our world changes and our business grows, we are working hard to advance our Environmental, Social, and Governance (ESG) initiatives. This is Novanta’s third annual ESG Report, covering the period from January 1, 2022 to December 31, 2022.
Novanta’s 2022 ESG Report discloses our ESG progress and priorities, aligned with leading reporting frameworks, including the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).
Scope 1 and Scope 2 greenhouse gas (GHG) emissions
Health and safety
Novanta’s strategic priorities revolve around both organic growth and inorganic growth, through investments in both existing businesses and complimentary business acquisitions. Future acquisitions are expected to have a significant impact on our reported Greenhouse Gas (GHG) emissions and other ESG goals, as well as our progress towards the short-, medium- and long-term goals that we set for ourselves. We plan to adopt the following reporting approach that will help enhance both the transparency and the usefulness of our ESG reports.
- For the year during which a business acquisition is consummated, we will exclude the new acquisition from our ESG reporting scope. We will begin to include the newly acquired business in our scope starting with the first full fiscal year following the acquisition date.
- For the first full fiscal year following the acquisition date, we will present our GHG inventory both on an “Organic” basis, i.e., excluding the emissions from the acquired business, and on a “Reported” basis, i.e., including the emissions from the prior year acquisition for the full year.
- In addition, we will reset our base year for both our GHG inventory reporting and our GHG emissions reduction goals based on the Reported GHG emissions for this first full fiscal year following the acquisition date.
This report contains certain forward-looking statements based on Novanta management’s current assumptions and expectations, including statements regarding our sustainability targets, goals, commitments, programs, acquisitions and their impact on our sustainability goals and targets, and other business plans, initiatives, and objectives. These statements are typically accompanied by the words “will,” “could,” “would,” “should,” “intend,” “hope,” “believe,” “expect,” “estimate,” “plan,” “aspire,” “aim,” “goal,” “pledge,” “potential,” or similar words and expressions. The Company makes such forward-looking statements under the provision of the “Safe Harbor” section of the Private Securities Litigation Reform Act of 1995. Actual future results, including the achievement of our targets, goals, or commitments, may vary materially from those projected, anticipated, or indicated in any forward-looking statements as a result of changes in circumstances, assumptions not being realized, or other risks, uncertainties and factors. Such risks, uncertainties and factors include the risk factors discussed in Item 1A of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), as well as, with respect to our sustainability targets, goals and commitments outlined in this report or elsewhere, the challenges and assumptions, risks, uncertainties, and factors identified in this report. You should consider the forward-looking statements in this report in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, and our subsequent Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K filed with the SEC. Novanta urges you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this report. Novanta cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects. The forward-looking statements in this report are made as of the date of this report, unless otherwise indicated, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances, except as required under applicable law.
Topics We Are Focusing On
In 2021, we conducted an ESG assessment under the SASB and TCFD standards, consisting of a survey and interviews of senior leaders at Novanta, cross-referenced with key industry indicators to identify those ESG topics that may be most relevant to our stakeholders. The topics reveal Novanta’s strong commitment to producing the highest-quality products in an ethical manner.
Based on this ESG assessment, we are focusing on the following topics:
- Energy mix
- Waste management
- Business ethics
- Product safety and quality
- Supply chain traceability
- Financial performance
In 2022, we intend to update our ESG assessment and look forward to sharing any changes to the above topics in our 2022 ESG Report.