At Allegion, a cross-functional ESG Council supports our ongoing commitment to environmental, social and governance (ESG) matters. To see a comprehensive overview of corporate sustainability oversight, our ESG goals, how we’re measuring and recent progress, click the button below. Or, scroll down on the page for an at-a-glance view of how ESG continues to guide our company.
Environmental
Water usage intensity reduced 16%
As of Dec. 31, 2023, Allegion reduced its water usage intensity by 16% compared to our 2020 baseline year123. By 2030, we aim to use 20% less water than we did in 2020.
In our ESG Goals & KPIs section, you’ll find year-over-year data for both normalized data and the actual volume of water used. While volume may vary due to factors such as production output, active hours or the number of sites we operate, normalized data allows us compare "apples-to-apples."
1 Data is normalized to hours worked. To the extent actual hours worked are not available for any full-time employee, an average of 40 hours per week is used.
2 Actual environmental impact numbers for 2020 and 2021 have been adjusted based on an internal audit completed in 2023. The adjustments did not have a significant impact on reported "Environmental Impact (Normalized)" percentages other than for waste to landfill where percentage change from 2021 to 2020 baseline went from 3% to 1%. Water usage was originally reported at 103.5 mil. and 98.3 mil. gallons for 2020 and 2021 respectively; GHG was originally reported at 100.6 metric and 99.6 metric tons for 2020 and 2021 respectively; waste to landfill was originally reported at 4.3 mil. and 4.4 mil. pounds for 2020 and 2021 respectively and electricity used was originally reported at 113.3 mil. and 115.5 mil. KwH for 2020 and 2021 respectively.
3 Assumes an average of 15 gallons (or 57 litres) of water used per employee per workday.
GHG emissions intensity (Scope 1,2) reduced by 30%
As of Dec. 31, 2023, Allegion reduced its greenhouse gas (GHG) emissions intensity (Scope 1 and Scope 2) by 30% compared to our 2020 baseline year1247. By 2030, we aim to achieve a 40% reduction in GHG emissions intensity for Scope 1 and Scope 2 emissions. In 2024, Allegion increased its GHG emission intensity (Scope 1 and Scope 2) target from 25% to 40% based on continued improvements in its operations.
Allegion aims to achieve carbon neutral emissions globally by 2050, and we support the UN Sustainable Development Goal to take urgent action on climate change. We know that some communities need time to build necessary energy infrastructure to make this vision a reality. In the meantime, our company is pursuing incremental improvement targets, including meeting Allegion’s electricity needs with carbon-free electricity by 2030 (that is, the energy is produced by a non-fossil fuel source that generates no carbon emissions), and achieving carbon neutrality at 50% of our current sites by 2035.
1 Data is normalized to hours worked. To the extent actual hours worked are not available for any full-time employee, an average of 40 hours per week is used.
2 Actual environmental impact numbers for 2020 and 2021 have been adjusted based on an internal audit completed in 2023. The adjustments did not have a significant impact on reported "Environmental Impact (Normalized)" percentages other than for waste to landfill where percentage change from 2021 to 2020 baseline went from 3% to 1%. Water usage was originally reported at 103.5 mil. and 98.3 mil. gallons for 2020 and 2021 respectively; GHG was originally reported at 100.6 metric and 99.6 metric tons for 2020 and 2021 respectively; waste to landfill was originally reported at 4.3 mil. and 4.4 mil. pounds for 2020 and 2021 respectively and electricity used was originally reported at 113.3 mil. and 115.5 mil. KwH for 2020 and 2021 respectively.
4 Calculation includes all scope 1 and 2 emissions except for the company vehicle fleet. Where actual data is not collected, assumes an average of 2,000 BTU of gas usage and 0.6 Kilowatt-hours ("KwH") of electricity usage per square footage per month for warehouse locations and 2,700 BTU of gas usage and 1.5 KwH of electricity usage per square footage per month for office type locations. Calculations showing metric tons rely upon estimates pursuant to the U.S. EPA greenhouse gas equivalencies calculator. The 2022 results include 10,000 purchased Emission Free Energy Credits (EFEC).
7 Data does not include fleet fuel usage, one-time activities not associated with manufacturing or distribution, any metrics associated with the field service activities for Stanley Access Technologies, to the extent applicable. In addition, data associated with the manufacturing activies of Stanley Access Technologies is included in 2023 values, but 2020 baseline data has not been adjusted.
Waste diversion rate 87%
The waste diversion rate from landfill is an essential metric for evaluating environmental performance because it reflects an organization's commitment to sustainability and resource conservation. Waste diversion reduces the environmental impact associated with waste disposal, such as greenhouse gas emissions; soil and water pollution; and depletion of natural resources.
By measuring waste diversion rate, organizations can track their progress in reducing waste generation and promoting circular economy principles. It encourages the implementation of effective waste management strategies, such as source reduction, recycling programs and alternative treatment initiatives. Additionally, a high-waste diversion rate demonstrates a commitment to responsible waste management practices, which can enhance an organization's reputation and stakeholder trust.
Overall, the waste diversion rate serves as a valuable indicator of environmental performance, highlighting an organization's efforts to minimize its ecological footprint and contribute to a more sustainable future.
1 Data is normalized to hours worked. To the extent actual hours worked are not available for any full-time employee, an average of 40 hours per week is used.
2 Actual environmental impact numbers for 2020 and 2021 have been adjusted based on an internal audit completed in 2023. The adjustments did not have a significant impact on reported "Environmental Impact (Normalized)" percentages other than for waste to landfill where percentage change from 2021 to 2020 baseline went from 3% to 1%. Water usage was originally reported at 103.5 mil. and 98.3 mil. gallons for 2020 and 2021 respectively; GHG was originally reported at 100.6 metric and 99.6 metric tons for 2020 and 2021 respectively; waste to landfill was originally reported at 4.3 mil. and 4.4 mil. pounds for 2020 and 2021 respectively and electricity used was originally reported at 113.3 mil. and 115.5 mil. KwH for 2020 and 2021 respectively.
5 Assumes an average of 40 lbs. (18 kilograms) of non-hazardous waste per employee per month. The 2020 and 2021 waste to landfill results were adjusted based on an internal audit conducted in 2023, resulting in a change in the 2021 comparison to baseline year 2020 and it has been adjusted from +3% to +1%. In 2023, Allegion transitioned to Waste Diversion Rate as it believes it is a better measurement for assessing its progress on measuring waste reduction. Allegion will continue to report waste to landfill for continuity purposes.
7 Data does not include fleet fuel usage, one-time activities not associated with manufacturing or distribution, any metrics associated with the field service activities for Stanley Access Technologies, to the extent applicable. In addition, data associated with the manufacturing activies of Stanley Access Technologies is included in 2023 values, but 2020 baseline data has not been adjusted.
Social
Won 2024 Gallup award for exceptional workplace
Allegion has been honored with the prestigious 2024 Gallup Exceptional Workplace Award for being one of the world’s most engaged workplaces. The highly competitive award is a testament to the dedication of all 12,000+ Allegion employees around the globe. By living our values and taking ownership of engagement, we accelerate Allegion’s success and advance our vision of enabling seamless access and a safer world.
YOY LTIR (lost time incident rate) lowered by 42%
One of Allegion's core values is "be safe, be healthy." Our first priority for our workers is their physical wellbeing, and we're proud to see that our safety performance – through the dedication of our people – reflects that.
1 Data is normalized to hours worked. To the extent actual hours worked are not available for any full-time employee, an average of 40 hours per week is used.
8 2020 through 2022 calculations exclude revenue and metric data from the Stanley Access Technologies business acquired in July 2022. 2023 calculations include revenue and metric data from the manufacturing operations of Stanley Access Technologies, but both exclude the Stanley Access Technologies service business.
9 LTIR and TRIR reflect data points as of December 31, 2023.
Of people managers, 25% are women
Allegion promotes advancement and retention of diverse talent at all levels and is actively working to build the pipeline of available, diverse talent ready for leadership opportunities. To make progress, we are intentionally focusing on expanding diversity of talent in people manager roles, and have set a target of achieving 30% global gender diversity and 20% U.S. racial and ethnic diversity by 2030.
As of December 31, 2023, 25% of people managers at Allegion were women, as are 22% of our senior leadership team and 34% of our global workforce. ¶ #
¶ Data as of Dec. 31, 2023. For more information on our U.S. workforce, refer to our EEO-1 report.
# 'Senior leadership team' refers to the members of the company's management, i.e. the Executive Leadership Team (ELT). 'Other leaders' refer to those individuals reporting directly to an ELT member. 'People managers' refer to those individuals who have direct reports that they manage.
Governance
Independent chairs for board, committees
The Board has an independent chair, separate from the CEO. In addition, all Board committees and committee chairs are independent.
Board of Directors 75% diversity
Effective as of the 2024 Annual General Meeting in June 2024, we have 75% diversity across gender, racial and ethnic representation among our Board of Directors.
Executive incentive payouts tied to the ESG scorecard
As of 2023, a component of annual incentive compensation payouts for our executive leadership team is tied to our company's annual environmental, social and governance (ESG) scorecard performance.
Our eight values are at the very heart of Allegion and the way we run our business.
These values are an important guide for our ESG efforts and approach.
Serve others, not yourself
“Serve others, not yourself” represents the idea of helping the people you work with and the people around you. Allegion encourages employees to be good corporate citizens by doing more for the communities in which they work and live. Many locations have developed a dedicated team of employees who plan, decide, and coordinate volunteer service projects for their campus, lifting up their local communities. Events like volunteering at the Ronald McDonald House, building a home with Habitat for Humanity, and environmental beautification projects are some of the most popular initiatives.
Do the right thing
“Do the right thing” encourages employees to act honorably in everything that they do. This value also reminds employees that if there is an inner voice telling you that something is wrong, it probably is - so don’t ignore it! Like all of its values, Allegion hopes that employees always do the right thing both at work and in their personal life.
Fabrizio is the Regional Specification Leader for Italy and Spain, working specifically with project based business. We asked Fabrizio why this was his favorite value, and he had this to say: “I mean, this reminds me that we always have a choice, and often the best thing to do is the tough path. Nevertheless, we do this because doing the right thing always leads to better results.”
Fabrizio considers this value core to all of Allegion’s values. “Customer experience is a part of our DNA. Ensuring that we do the right thing by our customers is always a focus of mine, and I believe that is true for many others at Allegion as well. This is the value that makes all the other values fall into place.”
Be curious beyond the obvious
“Be curious beyond the obvious” encourages employees to be continually interested in everything, everywhere. The core of this value is a continual pursuit of innovation and creativity.
Learn how Dalton uses this value at work.
Have a passion for excellence
“Have a passion for excellence” emphasizes the idea of making Allegion a better company. In turn, having a passion for excellence makes us all a better version of ourselves as both an employee and as a person.
Kevin is the Specification Consultant Development Director for Allegion’s Specification Writing division. He serves as the trainer for the Specification Writers Program, and he is honored to be have an impact on people’s careers. “This is the most rewarding opportunity of my hardware career. I get the opportunity to shape the lives of these young people and provide them with a skill that will serve them regardless of where this company leads them.” Kevin lives this value every day, and in every part of his job. “Allegion has allowed me to develop and grow in many different ways. I’ve been trained in many different areas and offered opportunities to fulfill those trainings.”
Enjoy what you do and celebrate who we are
This value honors Allegion’s past, present and future, while bringing a spirit of play to work. Enthusiasm is contagious, and work is better when we love what we do. We take an honest interest in each other, celebrating all of our unique diversity.
Be safe, be healthy
Allegion promotes good safety and health habits, both inside and outside the office. Whether it’s wearing protective gear, getting some fresh air and exercise, or taking a quick zen break, Allegion wants employees to protect their physical, mental and emotional well-being every day.
Be empowered and accountable
Allegion encourages employees to give themselves and others the tools needed to succeed. There isn’t needless red tape, or bureaucracy for the sake of bureaucracy. Employees have the freedom to be bold and take action, learning as much from failure as success.
Jessica H. feels that this value gives her the freedom to be creative and test out new possibilities, exploring new technologies.
This is your business, run with it
Your work is important! Question process. Cut out inefficiency. Look for ways to continually improve our business by making it your own. Never be satisfied with “Good enough,” and always think of ways we can be better – then work to make it a reality.
