A Message from President and CEO Lal Karsanbhai: Our Tremendous Journey to Transform Emerson

Over the past few years, we have been on a tremendous journey to transform Emerson, and we made great progress towards our goals in 2023. Our people are integral to this process, and I am inspired by the passion, determination and talent our team continues to display. We made several bold portfolio moves, including the acquisition of NI and the sale of the Copeland, which further our position as a global leader in automation.   

Through these actions, we have built a cohesive portfolio that enables customers to navigate the full automation spectrum and aligns with the secular growth trends of digital transformation, sustainability and decarbonization, energy security and affordability and nearshoring. Advancing sustainability and driving value for our customers and shareholders are closely aligned. Emerson’s customers rely on our technologies to better manage their operations, enhance productivity, reduce energy usage and emissions and improve safety and reliability.  

Our Emerson Management System has enabled strong operational execution, growth, innovation and risk management throughout our transformation by focusing our leaders’ and employees’ time and resources. 

I would like to share a few highlights of the significant progress we made in fiscal year 2023 and through the date of this report: 

• We procured 49% of electricity used by Emerson locations from renewable sources, progressing toward our goal to source 100% of electricity from renewable sources by 2030. This, and a continued focus on energy efficiency and Scope 1 emission abatement strategies, has enabled us to reduce our Scope 1 and 2 greenhouse gas (GHG) emissions intensity by 52% since 2021. 

• We continue to report climate-related data proactively and transparently. Emerson voluntarily participates in the Carbon Disclosure Project (CDP) and maintained an A- score in 2023; additionally, we were included in the CDP’s Supplier Engagement Leaderboard, which represents the top 8% of companies assessed for supplier engagement on climate change, for the second consecutive year.  

• We built upon the Your Voice Counts culture initiative, our company-wide continuous listening strategy, with our first “pulse check” survey. More than 39,000 employees responded, and we saw increases across 75% of engagement questions.  

• We increased our representation in leadership for women globally and US minorities in 2023 by two and four percentage points, respectively, and were named a “World’s Top Employer for Women” by Forbes. 

Our 2023 sustainability report illustrates how we plan to navigate the complex challenges in business today, drive impactful solutions for decarbonization for customers and stakeholders and maintain our commitment to long-term value creation. 

We have a 134-year history of pioneering change through innovation and are excited for the opportunities ahead to continue to disrupt the state of automation. Thank you for joining us as we go ahead to the boundless future of automation. 
 

Lal Karsanbhai
President and Chief Executive Officer