Marcus Avolio
Strategy Operations Manager
❝
Throughout my time at Hillman, I’ve had the opportunity to work with diverse teams across Human Resources, Health & Safety, Compliance, Legal, and now executive leadership. This exposure has allowed me to experience firsthand what Hillman truly stands for. Our Responsibility Program embraces the support and recognition deserved throughout the organization.
For me, organizational success hinges on two fundamental principles, process management and behavior management. Hillman's internal and external stakeholders look to streamline processes improving efficiency, increasing productivity, and reducing cost and waste. However, process streamlining is finite, this is where the importance of behavior management comes in.
Whether reflected in engagement levels, attitudes, or through the development of high-trust relationships, Hillman fosters a positive and inclusive culture that enables all to not just exist but thrive. In this lies a system approach, enabling us to remain both competitive and sustainable through our evolution in the economic, social, and environmental realms.
For these reasons, I am proud to be a part of the Hillman team and its Responsibility Program. By focusing on high-impact initiatives that realize and deliver strategic values to our shareholders, employees, and customers, the program amplifies our potential to drive positive change across our shared environment.
At Hillman, our commitment to building a stronger future drives our innovative, collaborative, and responsible business practices. Our Responsibility Program focuses on high-impact initiatives that deliver strategic value to our shareholders, employees, and customers. With our products reaching almost every household across North America, our program amplifies our potential to drive positive change for both our stakeholders and our shared environment.
1
Responsibility Program & Environmental Commitment
As a company part of the distribution, supply chain, and service network, our continued commitment to reducing environmental impact is realized through our Responsibility Program as we meet and exceed expectations set by our shareholders, stakeholders, and customers.
In 2022, Hillman completed an Environmental Materiality Assessment using life cycle assessment (LCA) methodologies aligned with the International Organization for Standardization (ISO) 14040 and 14044 standards.
From 2020-2024, Hillman successfully completed assessments of Scope 1, 2, and 3 Greenhouse Gas (GHG) emissions in accordance with the GHG Protocol to better understand annual trends and support ongoing improvements in data quality. Now, in 2025 and on, Hillman continues to report GHG emissions under the GHG Protocol while improving our data quality; however, we have since implemented a new sustainability management software to support our responsibility efforts.
This new methodology enables Hillman to leverage powerful tools and draw from the expertise of cross-functional teams. We remain focused on this new implementation, and the opportunities for improvement it enables us to identify and achieve.
TABLE 1
2023-2025 Scopes 1-3
GHG Emissions (MT CO2e)
1. For Scopes 1-3 Emissions: Where utility data gaps exist, calculations are based on the best available data or assumptions in certain cases, utilizing the most recent figures or estimates aligned with publicly available and internal sources (i.e. location-based).
2. Exclusions Due to Data Gaps: Exclusions due to data unavailability include waste generation in all Hillman operations, with minimal impact anticipated due to their low volumes and packaging material data assumed as virgin material.
3. The category of Purchased Goods and Services primarily focuses on the products themselves, excluding direct packaging materials from consideration in lesser instances than previous years.
4. Utility data for 3PL (Third Party Locations) has not been included in 2025 GHG calculations.
5. Assumption made for transportation data based on best available data; 90% of mixed “Outbound/Inbound” data being considered as “Outbound”.
6. Since Hillman operates primarily on a procurement-based model, where the majority of its products are directly purchased from suppliers before being sold to customers, the same data source is being used for calculating emissions associated with Purchased Goods and Services and Products Sold.
7. Data sources are continuously being improved for Hardware Solutions in the Purchased Goods and Services category given the outsize impact of that area.
8. Purchased Goods and Services and End of Life data now includes 2024 acquisition Intex, but not Koch.
Hillman's new sustainability software is a cloud-based sustainability management platform that helps track, manage, and report on environmental, social, and governance performance. It provides powerful tools for data collection, analytics, and reporting to ensure we can confidently meet regulatory requirements and stakeholder expectations. With customizable dashboards and real-time insights, the software supports holistic decision-making and drives continuous improvement through our Responsibility Program and organization as a whole.
Through our new sustainability software, Hillman is better equipped to align its environmental reporting with leading frameworks and standards, including the Task Force on Climate-related Financial Disclosures (TCFD), CDP, the Sustainability Accounting Standards Board (SASB), Greenhouse Gas (GHG) Protocol, among others. The platform enhances the consistency, repeatability, and overall management of our ESG data while supporting climate risk management, greenhouse gas accounting, environmental disclosures, and industry-specific reporting.
Centralized sustainability data on one integrated platform
Preloaded sustainability standards to simplify and accelerate reporting
Increased security for sustainability data and information
Real-time sustainability situation assessment and metrics visualization
Transparent and traceable process improve the ease of sustainability auditing and assurance
Potentially improved company sustainability scores, opening new and better investment opportunities
Reduced negative environmental impact, and the ability to do good more effectively
Innovation and continuous improvement are central to Hillman long-term growth. These principles guide our product development efforts, helping us deliver practical, high-quality solutions while maintaining a competitive edge.
Our renewed focus on product development began in 2017 with the strategic expansion of our engineering team. Since then, we have strengthened our product development capabilities through facilities such as our Innovation Center in Cincinnati, Ohio, and our engineering lab in Toronto, Ontario. Together, these facilities support every step of the development process—from concept and design to testing, validation, and packaging.
Our accredited lab is a place for product development, from product to package, concept to execution. By conducting product testing and packaging evaluations in-house, our engineering team can assess product performance early in the development process, helping improve quality, reliability, and speed to market. These capabilities reflect Hillman's ongoing commitment to innovation and delivering products that meet the evolving needs of our customers.
With the right tools and resources, our teams push boundaries — testing our products and themselves through curiosity and creativity. Our packaging team of engineers and specialists actively reduce the use of Hex chemicals and prohibits the use of polyvinyl chloride (PVC) as a packaging substrate*, substituting it with polyethylene terephthalate (PET) where practical. In addition, we work with corrugated fiberboard and paperboard suppliers that are members of the Forest Stewardship Council® (FSC®), supporting responsible forest management and the sourcing of sustainably certified forest products.
*Traces of PVC may still be present due to cross-contamination along the procurement process.
95-99%
of packaging is recyclable*
60-66%
of packaging is made of recycled content
75%
of compressed paper board & corrugated fiber board are comprised of recycled material
100%
of domestic paper board is recyclable
*% range accounts for offshore suppliers
Innovation Center - Cincinnati, OH
Research & Development Lab - Toronto, ON
150,000
Trees planted in 2025
377+
Acres of National Forest Land
5
National Forests Projects
Hillman and Minute Key are proud partners of the National Forest Foundation (NFF) since 2015 with the goal of supporting reforestation and the long-term health of America's national forests.
Through this collaboration, we contribute to tree planting initiatives that restore vital ecosystems, improve air and water quality, and combat climate change. Our commitment to environmental stewardship aligns with the NFF’s mission to promote the sustainable management and restoration of public lands for future generations.
How outputs become outcomes.
Medicine Bow-Routt National Forest, Wyoming
This project planted lodgepole pine across the Medicine Bow-Routt National Forest to restore areas impacted by a severe mountain pine beetle infestation in the late 2000s that killed 70–90% of lodgepole pines. Reforestation efforts aim to improve watershed health, enhance visual quality, and support habitat for endangered, threatened, and sensitive plant and animal species.
35,000
Trees
85
Acres
Grand Mesa, Uncompahgre and Gunnison National Forest, Colorado
This project planted ponderosa pine across the three Forests in response to a concentrated bark beetle outbreak. The project worked with the Indian Youth Service Corps (IYSC), a local tribal partner, and the Ancestral Lands Youth Corps. This effort not only supports forest recovery and the long-term health of a culturally significant landscape, but also offers valuable training in natural resource careers for local youth, helping to build skills and stewardship for future generations.
35,000
Trees
104
Acres
Umpqua National Forest, Oregon
This project enhanced forest resilience near Diamond Lake on the Umpqua National Forest by planting Shasta red fir seedlings among pre-existing naturally regenerated saplings. In 2020,the Thielsen Fire burned nearly 10,000 acres near Crater Lake and Diamond Lake in Oregon. By supplementing natural regeneration with additional Shasta red fir, the project increased species diversity and will support long-term ecosystem recovery.
25,000
Trees
114
Acres
Huron-Manistee National Forest, Michigan
This project planted red pine and eastern white pine across the Huron-Manistee National Forest to restore areas affected by the 2021 Brittle Fire. This marks the third year of reforestation following the fire, which burned 5,600 acres of mature timber along the River Road Scenic Byway near Lumberman’s Monument, a popular area visited by thousands each year. In addition to restoring the Forest, the project provides important habitat for deer and other wildlife species, supporting both ecosystem recovery and wildlife habitat.
25,000
Trees
31
Acres
Homochitto National Forest and Francis Marion National Forest, Mississippi
This project planted longleaf pine in partnership with the Longleaf Alliance across the De Soto–Chickasawhay Ranger District, De Soto Ranger District, Homochitto National Forest, and Francis Marion National Forest. The project focuses on restoring longleaf pine ecosystems that provide critical habitat for keystone species and support fire-adapted forest landscapes. Through targeted planting and restoration activities, this effort strengthens ecosystem resilience, enhances biodiversity, and advances the long-term conservation of one of the Southeast’s most ecologically significant forest types.
30,000
Trees
43
Acres
Our waste management platform numerically converts our total diverted waste into environmental savings for the sites within the system*
*15 US locations are considered within our waste
management platform
17,115
Trees Saved
2,993 MTCO₂e
GHG Emissions Saved
4.12M gal
Water Saved
2.46M kWh
Electricity Saved
Hillman is proactively preparing to meet upcoming climate disclosure requirements under various state disclosure bills. We are developing reports under commonly accepted frameworks like the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the Greenhouse Gas Protocol, among others.We will continue to track Scope 1-3 GHG emissions. These initiatives reflect our commitment to transparency, accountability, and continuous improvement in managing climate-related risks and impacts in line with global best practices.
SASB INDEX
The information represented in the SASB Index below is in accordance with the Industrial Machinery and Goods industry for January 1, 2025 – December 31, 2025, and is referred to as "2025" unless otherwise stated.
SASB Code
Metric(s)
Unit of Measure
Response (FY25 Data)
RT-IG-130a.1
(1) Total energy consumed, (2) Percentage grid electricity, (3) Percentage renewable
Gigajoules (GJ) Percentage (%)
Year
1
2
3
2025
160,164 GJ
100%
0%
2024
174,349 GJ
100%
0%
2023
116,193 GJ
100%
0%
2022
104,742 GJ
100%
0%
2021
99,957 GJ
100%
0%
2020
94,971 GJ
100%
0%
SASB Code
Metric(s)
Unit of Measure
Response (FY25 Data)
RT-IG-320a.1
(1) Total recordable incident rate (TRIR) (2) Fatality rate, (3) Near miss frequency rate (NMFR) for (a) direct employees and (b) contract employees
Rate
Year
1
2
3a
3b
2025
1.81
0.00
1.70
0.03
2024
1.96
0.00
1.73
0.10
2023
2.37
0.00
—
—
Topic
SASB Code
Metric(s)
Unit of Measure
Response (FY25 Data)
Fuel Economy & Emissions in Use Phase
RT-IG-410a.1
Sales-weighted fleet fuel efficiency for medium-heavy duty vehicles
Litres per 100 tonne-kilometers
Not applicable. Hillman does not manufacture or sell medium‑ or heavy‑duty vehicles.
RT-IG-410a.2
Sales-weighted fuel efficiency for non-road equipment
Litres per hour
Not applicable. Hillman does not manufacture or sell non‑road equipment that requires fuel sources.
RT-IG-410a.3
Sales-weighted fuel efficiency for stationary generators
Kilojoules per litre
Not applicable. Hillman does not manufacture or sell stationary generators.
RT-IG-410a.4
Sales-weighted emissions of (1) nitrogen oxides (NOx) and (2) particulate matter (PM) for: (a) marine diesel engines, (b) locomotive diesel engines, (c) on-road medium- and heavy-duty engines and (d) other non-road diesel engines
Grammes per kilojoule
Not applicable. Hillman does not manufacture or sell diesel engines, including marine diesel engines, locomotive diesel engines, on‑road medium‑ and heavy‑duty engines, or other non‑road diesel engines.
Material Sourcing
RT-IG-440a.1
Description of the management of risks associated with the use of critical materials
n/a (Discussion & Analysis)
Hillman manages risks associated with critical materials through responsible sourcing practices and supplier oversight, with a specific focus on conflict minerals. Related policies and due diligence processes are disclosed in Hillman’s Conflict Minerals Policy and SEC Form SD filings.
Remanufacturing Design & Services
RT-IG-440b.1
Revenue from remanufactured products and remanufacturing services (2)
Presentation Currency
Not applicable. Hillman does not engage in remanufacturing activities or provide remanufacturing services; therefore, no revenue is generated from remanufactured products or remanufacturing services.
Activity Metrics
RT-IG-000.A
Number of units produced by product category (3)
Number
Sales and revenue information broken out by segment is provided in Hillman’s reports to shareholders on Forms 10-K and 10-Q and is regularly communicated to investors on our quarterly earnings calls. See 2025 Form 10-K: Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations)All documents can be found here.
RT-IG-000.B
Number of employees
Number
3,986 (FT & PT)
