What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-23 compared with 2021-02-22 · 125 added, 45 removed, 175 unchanged (49% of the section changed)

19 unchanged sentences

In 2015, the Company began making shipments of the Full Display Mirror ® ("FDM" ® ), which is an on-demand, mirror-borne LCD display that streams live, panoramic video of the vehicle's rearward view in order to improve driver rear vision.

Also in 2015, the Company signed an exclusive agreement in the ordinary course of business with TransCore LLP to integrate TransCore's toll module technology into the vehicle in a first-to-market application referred to as Integrated Toll Module ® or "ITM®" ® .

Also in 2015, the Company introduced the integration of toll module technology into the vehicle in a first-to-market application referred to as Integrated Toll Module ® or "ITM ® ".

The interior mirror is an optimal location for a vehicle-integrated toll transponder and it eliminates the need to affix multiple toll tags to the windshield.

4 unchanged sentences

The Company believes iris recognition is among the most secure forms of biometric identification, with a false acceptance rate as low as one in 10 million, far superior to facial, voice, and other biometric systems.

The Company's future plans include integrating biometric authentication with many of its other electronic features, including, HomeLink ® and HomeLink Connect ® or the Integrated Toll Module ® .

The Company's future plans include integrating biometric authentication with many of its other electronic features, including HomeLink ® and HomeLink Connect ® or the ITM ® .

The biometric system allows for added security and convenience for multiple drivers by adding an additional factor of authentication for increased security, when a driver (or passenger) enters a vehicle.

1 unchanged sentence

In January 2019, the Company announced that it would be offering, as optional content, its latest generation of variable dimmable windows on the Boeing 777X aircraft.

During the third quarter of 2019, the first production

shipments of variably dimmable windows were made to Boeing for the 777X program.

In January 2020, the Company announced that Airbus will also be offering the Company's dimmable aircraft windows on its aircraft with production starting in late 2020.

During the third quarter of 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program.

In January 2020, the

Company announced that Airbus will also be offering the Company's dimmable aircraft windows on its aircraft with production starting in late 2020.

In January 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic.

3 unchanged sentences

The teams researched, designed, and rapidly iterated multiple prototypes in order to develop unique features that address major gaps in current surgical lighting solutions.

In 2021, the Company will be continuing to work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.

In 2022, the Company will continue to work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.

In April 2020, the Company, in the ordinary course of business, acquired Vaporsens, Inc.

5 unchanged sentences

The Vaporsens technology has a wide variety of use cases in various markets and industries, with potential applications for automotive, aerospace, agriculture, chemical manufacturing, military and first responders, worker safety, food and beverage processing, and medical.

In November 2020, the Company announced a partnership, in the ordinary course of business, with PayByCar™, to pursue compatibility between the Company's ITM ® and PayByCar's innovative payment solution that allows drivers to use their smart phones and toll transponder to fuel up at certain gas stations without using cash or a credit card.

Compatibility between these two technologies can help to grow each company's respective consumer base while introducing new users to the benefits of the transactional vehicle.

In January 2021, the Company announced a partnership, in the ordinary course of business, with Simplenight to provide drivers and vehicle occupants with access to enhanced mobile capability for booking personalized entertainment and lifestyle experiences in addition to everyday purchases.

Simplenight delivers a customizable and robust platform that enables brands to globally offer real-time book-ability across multiple categories such as dining, accommodations, attractions, events, gas, parking, shopping and more.

The platform is unique in that it is designed to seamlessly integrate into automaker infotainment and navigation systems, as well as mobile applications and voice assistants.

Simplenight can be integrated into the Company's current and future connected vehicle technologies, including HomeLink ® , the automotive industry’s leading car-to-home automation system.

HomeLink ® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices.

Integration of Simplenight into the Company's HomeLink Connect ® app is underway and will allow users to program their HomeLink ® buttons and control cloud-based devices from their vehicles.

In January 2022, the Company announced a partnership, in the ordinary course of business, with eSight, a leading provider of vision enhancement technology, to develop and manufacture the next generation of mobile electronic eyewear designed to help people living with visual impairments.

The Company plans to utilize its expertise in digital vision, software development and industrial design to help eSight develop the next generation of eyewear, with a focus on reducing device size, enhancing its form factor, and optimizing overall system performance.

Automotive revenues represent approximately 97% of the Company's total revenue in 2021, mostly consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and automotive electronics.

(b) [Reserved]

The Company designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products, including:

automatic-dimming and non-automatic-dimming rearview mirrors and electronics for the automotive industry;

automatic-dimming and non-automatic-dimming rearview mirrors and

electronics for the automotive industry;

dimmable aircraft windows for the aviation industry;

11 unchanged sentences

Certain of the Company's newer features can be located either in the rearview mirror or other locations in the vehicle.

Additionally, as the Company

expands its Full Display Mirror ® product and the Integrated Toll Module ® system, rearward facing video cameras and integrated toll transponders are being produced and sold.

Additionally, as the Company expands its Full Display Mirror ® product and the ITM ® system, rearward facing video cameras and integrated toll transponders are being produced and sold.

The Company produces rearview mirrors and electronics globally for automotive passenger cars, light trucks, pickup trucks, sport utility vehicles, and vans for OEMs, automotive suppliers, and various aftermarket and accessory customers.

Automotive rearview mirrors and electronics accounted for 97% of the Company’s consolidated net sales in 2021.

The Company is the leading manufacturer of electrochromic automatic-dimming rearview mirrors in the world, and is the dominant supplier to the automotive industry.

Competitors for automotive rearview mirrors include Magna International, Panasonic, YH America, Inc., BYD Auto Company, Murakami Kaimeido Company, Tokai Rika Company, Peak Power Automotive, SMR Automotive, ADAYO, Alpine Electronics, Inc., MEKRA Group, Ningbo Feng Mei, Chogqing Yimei, Guangdong, Xiamen Intretech, Licon, YanFeng, MirrorTech and the China automotive aftermarket.

The Company is the leading manufacturer of electrochromic automatic-dimming rearview mirrors in the world, and is the largest supplier to the automotive industry.

Competitors for automotive rearview mirrors include Magna International, Tokai Rika Company, SMR Automotive, Aolian, Intertech, Kingband, BYD Auto Company, Sincode, Yanfeng Visteon, Xiamen Intertech, Guangdong Yuanfeng, Chongqing Yimei, Murakami, Ultronix, Aizhuo, Alpine Electronics, Inc., Licon, Mirrortech, Ambilight and the China automotive aftermarket.

The Company also supplies electrochromic automatic-dimming rearview mirrors to certain of these rearview mirror competitors.

5 unchanged sentences

biometric authentication systems, hybrid and fully digital camera monitoring systems ("CMS"), driver and cabin monitoring systems, cabin sensing systems, touch screen displays for mirrors, and digital enhancements to displays to improve driver safety, among other things.

Other automotive products currently in development include large area dimmable devices, which include sunroof and moonroof applications, driver and passenger windows and other window surfaces in vehicles, among others.

Other automotive products currently in development include large area dimmable devices, which include sunroof and moonroof applications, driver and passenger windows, interior sun-visors and other window surfaces in vehicles, among others.

Automotive Rearview Mirrors and Electronics Markets and Marketing.

1 unchanged sentence

The Company generally supplies automatic-dimming mirrors and mirrors with advanced electronic features to its customers worldwide under annual blanket purchase orders with customers, as well as under long-term agreements with certain customers, entered into in the ordinary course of the Company's business.

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, FCA Group, Ford Motor Co., Geely/Volvo, General Motors, Honda Motor Co., Hyundai/Kia, Jaguar/Land Rover, Mazda, Mahindra & Mahindra, McLaren, Polaris, PSA/Opel Group, Renault/Nissan/Mitsubishi Group, Rivian Automotive, Subaru, Suzuki, Tesla, Toyota Motor Company, Volkswagen Group, as well as, shipments to domestic China manufacturers (Borgward, BYD, Chehejia, Chery, Great Wall Motors, Hongqi, NextEV, SAIC, and Skywell).

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, Ferrari, Ford Motor Co., Geely/Volvo, General Motors, Honda Motor Co., Hyundai/Kia, Lucid Motors, Mazda, Mahindra & Mahindra, McLaren, Polaris, Renault/Nissan/Mitsubishi Group, Rivian Automotive, Stellantis, Subaru, Suzuki, Tata Motors, Tesla, Toyota Motor Company, Volkswagen Group, as well as, shipments to domestic China manufacturers (Borgward, BYD, Chery, Dongfeng, FAW, Great Wall Motors, Human Horizon, Jianghuai, King Long, Lixiang Auto, NIO, and SAIC).

Revenues by major geographic area are disclosed in Note 7 to the Consolidated Financial Statements.

2 unchanged sentences

In some instances, Company products such as the FDM ® appeal to consumers who are interested in new technology, while also resolving rearward vision limitations created by vehicle design changes that increase aerodynamics.

The Company has contributed to this differentiation strategy, allowing OEMs to maximize profitability and optionality by providing a suite of profitable, mirror-based and in-vehicle technologies that consumers demand.

As more consumers have become familiar with interior and exterior dimming mirrors, HomeLink ® , SmartBeam ® , FDM ® , and other Company technologies, consumers have continued to select these technologies in their subsequent vehicles, driving further market and nameplate penetration as OEMs launch new vehicles and expand into new markets.

The Company has contributed to this differentiation strategy, allowing OEMs to maximize profitability and optionality by providing profitable, mirror-based and in-vehicle technologies that consumers demand.

As more consumers have become familiar with interior and exterior dimming mirrors, HomeLink ® , FDM ® , and other Company technologies, consumers have continued to select these technologies in their subsequent vehicles, driving further market and nameplate penetration as OEMs launch new vehicles and expand into new markets.

Where OEMs had historically used Company technologies only to differentiate from one another, they have now begun to also use Company technologies to differentiate trim lines across their own nameplates.

1 unchanged sentence

Automotive Rearview Mirrors and Electronics Competition.

The Company continues to be the leading producer of automatic-dimming rearview mirrors in the world and currently is the dominant supplier to the automotive industry with an approximate 94% market share worldwide in both 2020 and 2019.

While the Company believes it will retain a dominant position in automatic-dimming rearview mirrors for some time, another U.S.

The Company continues to be the leading producer of automatic-dimming rearview mirrors in the world and currently is the largest supplier to the automotive industry with an approximate 91% market share worldwide in 2021.

While the Company believes it will retain a significant position in automatic-dimming rearview mirrors for some time, another U.S.

manufacturer, Magna Mirrors, a division of Magna International Inc.

("Magna"), continues to compete for sales to domestic and foreign vehicle manufacturers and is supplying a number of domestic and foreign vehicle models with its versions of auto-dimming mirrors and may have considerably more resources available to it.

("Magna"), continues to compete for sales to domestic and foreign vehicle manufacturers and is supplying a number of domestic and foreign vehicle models with its versions of auto-dimming mirrors and appears to have considerably more resources available to it.

As such, Magna may present a formidable competitive threat.

3 unchanged sentences

Moreover, other companies have demonstrated products that are competitive to the Company's Full Display Mirror ® system, and a small number of Chinese domestic mirror suppliers have begun marketing and selling these products, in low volume, within the domestic China Market.

Further, a Japanese manufacturer (Murakami) has begun selling and marketing competitive Full Display Mirror ® products in Japan.

Further, a Japan manufacturer (Murakami) has begun selling and marketing competitive Full Display Mirror ® products in Japan.

The Company acknowledges that dimming device (e.g., electrochromic) technology is the subject of research and development efforts by numerous third parties.

In November 2020, the Company announced a partnership, in the ordinary course of business, with PayByCar™, to pursue compatibility between the Company's Integrated Toll Module ® and PayByCar's innovative payment solution that allows drivers to use their smartphones and toll transponder to fuel up at certain gas stations without using cash or a credit card.

In November 2020, the Company announced a partnership, in the ordinary course of business, with PayByCar™, to pursue compatibility between the Company's ITM ® and PayByCar's innovative payment solution that allows drivers to use their smartphones and toll transponder to fuel up at certain gas stations without using cash or a credit card.

Compatibility between these two technologies can help to grow each company's respective consumer base while introducing new users to the benefits of the transactional vehicle.

8 unchanged sentences

The Company currently believes that the electrochromic materials and manufacturing process it uses for automotive mirrors remains the most efficient and cost-effective way to produce such products.

The Company has also continued to invest in new technologies to improve the manufacturing processes.

The Company has also continued to invest in new technologies to improve manufacturing processes.

In the fourth quarter of 2020, the Company, in the ordinary course of business, completed the acquisition of Argil, Inc., which specializes in electrochromic technology and research and development, which the Company anticipates using to complement and expand its product offerings and leverage for manufacturing efficiencies.

1 unchanged sentence

As the Company continues to expand its automatic-dimming mirror products with additional advanced electronic features and expands the capabilities of its CMOS imager technology for additional features (i.e.

SmartBeam ® , FDM ® , rear video camera, etc.), as well as continuing to expand the capabilities of the Company's hybrid and fully digital CMS technology, the Company recognizes that it is competing with considerably larger and more geographically diverse electronics companies that could present a formidable competitive threat in the future as new products/features and technologies are brought to market.

SmartBeam ® , FDM ® , rear video camera, digital video recorder, etc.), as well as continuing to expand the capabilities of the Company's hybrid and fully digital CMS technology, driver and cabin monitoring systems, the Company recognizes that it is competing with considerably larger and more geographically diverse electronics companies that present a formidable competitive threat in the future as new products/features and technologies are brought to market.

Dimmable Aircraft Windows

2 unchanged sentences

During the third quarter of 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program.

In January 2020, the Company announced that Airbus will also be offering, as optional content, the Company's dimmable aircraft windows on its aircraft.

As previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having began in the fourth quarter of 2021.

Markets and Marketing.

11 unchanged sentences

In the signaling appliance markets, the Company estimates it competes with approximately seven manufacturers.

While the Company faces significant competition in the sale of smoke detectors and signaling appliances, it believes that the introduction of new products, improvements to its existing products, its diversified product line, and the availability of special features will permit the Company to maintain its competitive position.

While the Company faces significant competition in the sale of smoke detectors and signaling appliances, it believes that the introduction of new products, improvements to its

existing products, its diversified product line, and the availability of special features will permit the Company to maintain its competitive position.

Nanofiber Products and Development

As noted, the Company completed the acquisition of Vaporsens in 2020.

Again, Vaporsens specializes in nanofiber chemical sensing research and development.

The Company completed the acquisition of Vaporsens in 2020.

Vaporsens specializes in nanofiber chemical sensing research and development.

Markets and Marketing.

While no current commercialized product yet exists, this technology has the potential ability to sense explosives, toxic industrial chemicals, chemical warfare agents, drugs, consumer goods, and VOCs.

This technology has a wide variety of use cases in various markets and industries, with potential applications for automotive, aerospace, agriculture, chemical manufacturing, military and first responders, worker safety, food and beverage processing, and medical applications.

5 unchanged sentences

The Company believes that these patents provide the Company a competitive advantage in its markets, although no single patent is necessarily required for the success of the Company's products.

The Company also owns 347 foreign Registered Trademarks and 1020 foreign patents, of which 331 Registered

Trademarks and 972 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink ® products.

The Company also owns 357 foreign Registered Trademarks and 1224 foreign patents, of which 341 Registered Trademarks and 1169 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink ® products.

These patents expire at various times between 2022 and 2044.

22 unchanged sentences

quarterly profit-sharing bonuses;

an extensive stock options program, an employee stock purchase plan;

an extensive stock based compensation program that extends to all eligible employees, an employee stock purchase plan;

401(k) plan (or other retirement plan for non-US employees) with Company matching;

and tuition reimbursement.

Equity compensation is also paid to a significant number of employees.

In keeping with the Company's core principle of ownership mentality, compensation is structured throughout the organization so that employees win when all of stakeholders win.

The Company also provides a healthy and safe climate-controlled work environment that includes an on-site wellness center and on-site health clinic at its headquarters.

A number of health-related programs are

available to employees, including:

asthma/COPD management services;

diabetes management;

"Smart Health," which gives employees and spouses a way to earn wellness credits;

Gentex Cares+ Employee Assistance Program;

and crop share, which offers employees fresh fruits and vegetables weekly.

The Company is extremely proud of its workplace injury prevention programs, which have achieved workplace injury rates well below industry averages.

Evidence of the Company's commitment to inclusion is its cultivation of a world-class diversity, equity & inclusion ("DE&I") ethos that allows team members to make a lasting impact in the communities in which the Company operates, all while attracting and retaining diverse talent that can help propel the business forward.

While the Company has an environment of equal employment opportunity related to recruitment, hiring, promotion, discipline, and other terms of employment, the commitment to have a skilled and diverse world class workforce goes beyond that.

The Company's DE&I initiatives are supported by the its Diversity Officer and DE&I Council, which helps implement specific diversity programs, supports internal training, and creates opportunities to spread awareness throughout the organization.

The Company's DE&I initiatives are supported by the its VP of Diversity, Equity, & Inclusion and DE&I Council, which helps implement specific diversity programs, supports internal training, and creates opportunities to spread awareness throughout the organization.

The Company's DE&I Council is led by Mr.

Joe Matthews, Diversity Officer and Vice President of Purchasing.

Joe Matthews, VP of Diversity, Equity, & Inclusion.

Matthews has been honored as a Salute to Diversity Winner by Corp!

1 unchanged sentence

Among current BRGs are Women at Gentex and Veterans at Gentex.

DE&I efforts at the Company extend to the supply base as well, where Company been recognized for ongoing efforts to increase supplier relationships with minority- and women-owned enterprises.

In fact, the Company mentors certain such suppliers to help them develop the business systems and technologies necessary to support

future growth.

The Company is a member of the Michigan Minority Supplier Development Counsel and the Women's Business Enterprise Counsel – Great Lakes Region.

DE&I efforts at the Company extend to the supply base as well, where the Company been recognized for ongoing efforts to increase supplier relationships with minority- and women-owned enterprises.

In fact, the Company mentors certain such suppliers to help them develop the business systems and technology improvements necessary to support future growth.

The Company is a member of or otherwise involved in the Michigan Minority Supplier Development Council, Lakeshore Advantage Supplier Diversity Program Planning, Michigan Diversity Counsel, The Employers Association - HR Conference, Michigan Minority Procurement Conference, the Great Lakes Women's Business Council, and Yanfeng DEI Leadership Panel.

Hiring rates, voluntary and involuntary turnover rates, internal rates of hiring and promotion, and safety records are considered as measures of the Company's success in human capital management.

While hiring and diversity policies are in place as a means to remain on track in terms of appropriate human resources management, the DE&I efforts have furthered the process of creating a welcoming environment so the Company can hire and retain the best people.

The Company produces a sustainability report providing more information regarding diversity and corporate responsibility.

The Company produces a Sustainability Report, referenced below, providing more information regarding diversity and corporate responsibility.

In an effort to ensure an excellent and increasingly diverse employment base, the Company has added Spanish speaking manufacturing lines, which involves materials for recruiting, orientation, on-boarding, training, and work in the Spanish language.

Forbes has named the Company as one of the "200 Best Small Companies" numerous times.

Forbes also recently acknowledged the Company as a "Best Employer for Diversity." In addition, the Company is the recipient of an EPIC Diversity Visionary Award presented by a local Chamber of Commerce.

In 2019, Forbes also acknowledged the Company as a "Best Employer for Diversity." In addition, the Company is the recipient of an EPIC Diversity Visionary Award presented by a local Chamber of Commerce.

Moreover, the Company's DE&I efforts related to actively developing and using minority, women, and veteran-owned suppliers have been acknowledged and recognized by multiple OEM customers.

1 unchanged sentence

has specifically recognized the Company's efforts over the last 10 years to increase supplier relationships with minority business enterprises.

A charitable program run by Company employees has been established as a means to give back to the community.

Employees are encouraged to organize on-site fundraisers and to spend time volunteering at worthy charitable organizations.

The Company has also won a supplier diversity award from Honda and was the City of Holland, Michigan's Human Relations Commission 2020 Social Justice Award winner.

A charitable program led by Company employees has been established as a means to give back to the community.

Employees are encouraged to organize on-site fundraisers and to spend time volunteering at worthy charitable organizations in addition to giving financially.

The Company matches donations given by the employees.

Support is also provided to a number of minority organizations in keeping with the Company's DE&I efforts and to continue to build an even more diverse and skilled workforce.

4 unchanged sentences

and corporate culture.

The Board and management know the right talent is required to implement the Company's strategies.

As such, the Board works with management appropriately regarding the approach to, and investment in, human capital that includes recruitment, talent development, retention, and diversity.

The Board and management know that the right talent is required to implement the Company's strategies.

As such, the Board works with management appropriately regarding the approach to, and investment in, human capital that includes recruitment, talent development, retention, and

The Board has access to all levels of employees in the Company in its efforts to properly oversee human resources issues.

The Board of the Company now has two women directors and the Nominating and Corporate Governance Committee has taken concrete steps to improve Board diversity, including use of various resources and environments to identify qualified and diverse director candidates.

The Company's commitment to DE&I is very apparent by the inclusiveness of the Board of Directors.

The Board of Directors for the Company and the Nominating and Corporate Governance Committee has taken concrete steps to improve Board diversity, including use of various resources and environments to identify qualified and diverse director candidates.

Such candidates are contacted and interviewed in order to continue to build an even more diverse, qualified, and capable Board.

In 2022, the Company plans on disclosing Board of Directors diversity information as required by NASDAQ.

The Board has also implemented a Complaint Submission and Handling Policy for concerns to be raised as needed.

Sustainability

Disclosure on Website.

The Company has a Sustainability section of its website (https://www.gentex.com/about/sustainability) to provide insight into how the Company is committed to protecting the environment by complying with all environmental laws and related requirements, while at the same time striving for continual improvement in sustainability and environmental performance.

The Company's Sustainability Report, published each year and available on the Company's website, provides significant details regarding the Company's approach to sustainability.

The Company makes intentional decisions that reflect the desire to be responsible with all resources and achieve the Company's goal of meaningful change.

Energy and Climate Change.

The Company understands that energy use and manufacturing are large contributors of the Company's overall greenhouse gas emissions.

As such, the Company remains committed to improving energy-efficiency.

To that end, the Company has announced to the following carbon reduction and neutrality goals:

– By 2026, 15% below 2020 levels

– By 2031, 40% below 2020 levels

– By 2041, 70% below 2020 levels

– By 2049, carbon neutrality

The Company implements efficient alternatives for capital equipment, uses automated building management systems to use less energy, and has put in place extremely efficient lights and HVAC equipment.

The Company also participates in the local Energy Smart Program, which promotes the implementation of progressive energy efficiency projects, including achieving the maximum goal possible for lighting and HVAC improvements, compressed air leak audits, and building control systems.

Gentex Environmental Management System (GEMS).

The Company's environmental management system is based on ISO 14001 (international environmental standard).

This system governs environmental performance by addressing the impact of the Company's activities, products, and services on the environment.

At each Company facility, environmental impact is measured and improved upon annually by eliminating waste and emissions, maximizing efficiency of processes and resources, and increased recycling and reuse.

The foregoing has allowed the Company to establish long-term measures for minimizing the negative effects on the environment, while maximizing positive outputs for the communities in which the Company operates.

Various metrics are tracked to gauge the environmental performance of the Company’s facilities, including:

electricity use;

process water use;

natural gas use;

VOC air emissions;

and greenhouse gas emissions (both those directly controlled and those from electricity usage).

Waste and Recycling.

The Company also has robust waste and recycling strategies, tracking solid waste to landfill, solid waste recycled, and regulated waste.

As a part of its strategies, the Company has committed to the following landfill avoidance goals:

– By 2026, 15% below 2020 levels

– By 2031, 60% below 2020 levels

– By 2041, 90% below 2020 levels

– By 2045, 100% zero landfill waste

With respect to sustainability initiatives, the Company has undertaken a number of actions related to energy, waste stewardship, water management, and environmental protection.

With respect to energy, the

utilizes software-managed and occupancy-sensor controlled lighting in all facilities;

has air economizers and energy recovery units in HVAC systems;

utilizes energy efficient fluorescent lighting;

has certain white material roofs to reflect sunlight;

has insulated metal panel systems for exterior walls (for energy efficiency);

captures excess heat from compressed air systems and uses it to pre-heat/temper water used in production;

takes excess water from production processes to use in boiler/snowmelt water;

and installed a centralized water chiller plant to lower energy use.

With respect to waste stewardship, the Company improved its cleaning method for certain products to reduce material usage preventing thousands of pounds of additional waste material and uses recycled materials in facility carpets.

In terms of waste management, the Company:

put in place a water recovery system that significantly reduced overall water usage;

collects storm water to reduce discharge into municipal drain systems;

implemented irrigation software to monitor weather conditions thereby reducing water consumption;

and diligently works to monitor and reduce potential pollutants in its facilities.

In terms of environmental protection, the Company has:

integrated “green roofs”;

adopted a highway to clean waste from public lands;

constructed wetland and wildlife habitat areas;

and acquired property which includes natural wetlands.

As regards transportation, the Company maintains:

22 electric vehicle charging stations;

a bicycle fleet for travel between facilities;

a bus shelter to encourage bus ridership;

and sweed banding choppers at certain facilities to reduce frequency of trips to recycling.

(d) [Reserved]

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business