Our ESG Governance
Oversight at the Highest Levels
As a leading global provider of key technology solutions to the medical and advanced industrial end markets, we link technical and economic progress with environmental, social, and governance responsibilities for the well-being of future generations and for achieving our business goals now and in the future.
This is not just because it is the right thing to do, but we also view ESG as essential to our continued growth. Therefore, the responsibility for managing and making decisions on these topics has been placed with our senior-most leaders, the Novanta Leadership Team, under the oversight of our Board of Directors (the “Board”). It extends throughout our organization to department heads and others. In fact, individuals throughout Novanta are encouraged and empowered to institute new ESG initiatives and speak out when they see room for improvement.
As we mature on our ESG journey, we are deepening the role of ESG considerations throughout our operations. As part of our Novanta Way approach, we are harmonizing and consolidating our approaches in key areas such as supply chain management, product development, talent acquisition and employee engagement. At the same time, we are taking that opportunity to integrate ESG into our policies and procedures at the global company level and cascading them down across the organization. Read on to learn more about how we believe that a bias for responsible behavior is embedded throughout Novanta.
The oversight of our ESG topics rests with our highest governance body, our Board of Directors. As of December 31, 2022, our Board of Directors consisted of eight members, including our Chair and CEO, Matthijs Glastra. Our Board of Directors monitors and oversees the Company’s ESG program through its Environmental, Social and Governance Committee (the “ESG Committee”).
ESG Committee
Novanta’s Board of Directors, through its ESG Committee, overseas, reviews, and assesses the Company’s ESG strategy, program, policies, and risk management. The ESG committee, which meets at least three times a year, regularly reports to the Board of Directors on these matters. In addition, the full Board of Directors also reviews the Company’s ESG program and initiatives once a year.
The Environmental, Social and Governance Committee Charter is available on our website with our other governance documents. It states the full responsibilities of the ESG Committee, the highlights of which are summarized in the table below.
ESG Committee Responsibilities
Environmental | Social | Governance |
|---|---|---|
|
|
|
ESG Committee Responsibilities
Environmental |
|---|
|
Social |
|---|
|
Governance |
|---|
|
ESG Committee Responsibilities
Environmental |
|---|
|
Social |
|---|
|
Governance |
|---|
|
Novanta Leadership Team
The Novanta Leadership Team, including the Chief Executive Officers (CEO), Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO), General Counsel and Corporate Secretary, Executive Vice President of Supply Chain & NGS and two other business Group Presidents, is responsible for Novanta’s ESG strategy, goals, and compliance programs, as well as the management of risks and opportunities. The Novanta Leadership Team manages day-to-day assessment and decision-making around Novanta’s risks and opportunities with a focus on our most significant risks. Our Board of Directors and Board committees oversee and guide these efforts. These risks include, but are not limited to, cybersecurity, product quality and safety, effect of economic and political environment and government regulations on our businesses, data privacy, protection of intellectual property, supply chain disruptions, business acquisitions, anti-bribery and anti-corruption, natural resources, waste and toxicity, climate-related risks and opportunities, labor, health and safety, and human rights.
The Novanta Leadership Team relies on both the Environmental Sustainability Committee and the DEI Committee for information and status updates as well as to cascade its vision and strategic decisions around ESG goals and initiatives.
Environmental Sustainability Committee
Novanta’s Environmental Sustainability Committee is composed of key business leaders, who meet at least quarterly. The committee is responsible for the development and definition of environmental strategy and goals, establishing the tone, importance, and prioritization for quality, environmental sustainability, and employee health and safety programs, and creating a unified response to sustainability and environmental requirements and audits. The committee recognizes and takes into consideration the importance of engaging with key stakeholders.
DEI Committee
Novanta’s DEI Committee is a committee of the Company’s executive Leadership Team, chaired by our Vice President of Leadership Development and Diversity, Equity, and Inclusion, with an annual agenda focused on executing our DEI Strategy and Initiatives. The committee provides strategy and governance for Novanta’s DEI initiatives and organizes teams to help execute the DEI initiatives. The committee’s goals and strategy are governed by the ‘Novanta Way,’ which is a structure that defines how Novanta employees work and collaborate and builds cohesive teams all based on diverse and inclusive principles anchored in trust, commitment, and accountability. Our Vice President of Leadership Development and Diversity, Equity & Inclusion is also responsible for organizing and leading the Company’s Culture Councils, coordinating activities amongst the three Employee Resource Groups (ERG), and organizing a multitude of working teams. This governance structure helps to institutionalize Novanta’s DEI commitment and aspirational goals – forming Novanta’s “True North” for DEI.
A view from the field
