A Message from President and CEO Lal Karsanbhai: A Momentous Year for Emerson

Dear Stakeholders,

It has been a momentous year as we have reshaped Emerson, transforming into a global automation leader. Advancing meaningful change is not easy, and I credit our momentum to our team’s continued focus on managing our portfolio, modernizing our culture and excelling in operations.

Our collective efforts have been strengthened by our Emerson management system, which prioritizes balanced risk taking and innovation with equal dedication to operational execution and growth. This operating model is critical as we progress the cohesive, higher-growth, higher-margin portfolio we have built over the past two years. We have made many bold and strategic moves on this portfolio journey, most recently announcing a definitive agreement to acquire National Instruments (NI), a leader in software-connected automated test and measurement systems, and closing the Climate Technologies transaction. We are pleased to share our value creation progress, supported by our environmental, social and governance (ESG) efforts, in more detail in the “Value Creation” section of this report.

As we share our noteworthy ESG advancements, we are proud to highlight not only the achievements from fiscal year 2022 but also those that have taken place through the date of this report:

• Through rigorous energy efficiency improvements and accelerating renewable electricity sourcing, we achieved a 42% reduction in greenhouse gas emissions intensity (GHG) from the 2018 baseline, surpassing our original Scope 1 and 2 GHG emissions reduction goal of 20% six years ahead of schedule.
• To showcase our dedication to transparently reporting climate-related data, Emerson voluntarily participates in the Carbon Disclosure Project (CDP), and has steadily improved our CDP scores from a C in 2019 to an A- in 2022. We were also included in the CDP’s Supplier Engagement Leaderboard, representing the top 8% of companies assessed for supplier engagement on climate change.
• Recognizing our efforts to implement innovative measures to conserve energy across our facilities globally, Emerson was named a 2023 ENERGY STAR® Partner of the Year for energy management by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
• Demonstrating our commitment to governance and board refreshment, we announced two new directors, Leticia Gonçalves and Jim McKelvey, both of whom will assist in driving our growth efforts.
• We also recently launched our employee value proposition, Let’s Go. We continue to make progress on our goal of doubling the representation of women globally and U.S. minorities in leadership positions by 2030, and in 2022, we were named a “Best Employer for Diversity” by Forbes.

Our global organization has made tremendous strides over the last year as we strengthened Emerson’s position as a global automation leader. Our people and culture are pivotal to this progress. Looking ahead, with our large portfolio actions now announced, we are excited to continue executing on the plans we have outlined and eager to accelerate value creation for all stakeholders.

Thanks for joining us as we go boldly and confidently into the future.

Sincerely,
Lal Karsanbhai
President and Chief Executive Officer