2022 Report Highlights
Letter from our CEO
Get insight and a deeper perspective on our sustainability strategy from our leadership.
Quick Summary
Get a quick, digestible look at our progress, from highlights to recent awards.
TCFD, SASB, GRI & Performance Data
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We’re Investing in Sustainability for a Brighter Future
All our high-level goals have either been achieved, are on track, or are demonstrating progress—this includes both quantitative and qualitative targets relating to our four key focus areas: Employees, Environmental & Climate Change Risks, Innovation & Opportunity, and Products.
Announced goal to reduce our emissions in relation to our revenue by 65% by 2026 from a 2021 baseline.
Annually, we help our customers save $5.9 billion in energy expenses and avoid 17.2 million metric tons of emissions.
Our Environmental Management System (EMS) was certified to the internationally recognized ISO 14001 standard at the end of 2022.
Participated in the Great Places to Work survey and were certified as a Great Place to Work for the second year in a row.
MSCI upgraded our ESG rating from AA to its highest rating of AAA—placing us as one of the highest performing companies in MSCI’s Industrial Machinery industry. This is the third straight year that Energy Recovery has received an upgrade in its MSCI rating, demonstrating our commitment to consistent, measurable improvement.
Our UNSDG Alignment
Target 6.1, 6.3, 6.4, 6.A
Our energy recovery devices, including our flagship PX® Pressure Exchanger®, positively impact the water industry by increasing efficiencies for water desalination facilities and reducing costs and emissions. Our PX U Series for wastewater treatment applications significantly reduces the energy needs, costs, and emissions associated with treating wastewater discharge through ultra high-pressure reverse osmosis (UHPRO) applications.
Target 7.3
Our products reduce emissions related to the production of vital resources through improved productivity, increased efficiency, and reduced energy consumption. Our energy recovery solutions save customers 17.2M metric tons of CO₂ equivalents annually, making resource-intensive industries, such as seawater desalination and wastewater treatment, affordable and accessible.
Target 9.2, 9.4
Our products and solutions help build more resilient infrastructure and advance sustainable industrialization by enabling energy and cost-efficient commercial and industrial processes. More than 120 countries have signed on to the Kigali Amendment, aligning with specified timelines to phasedown HFC use. Our PX G1300® device offers customers the ability to increase the energy efficiency of CO₂ refrigeration systems, improving their bottom line while reducing their carbon footprint and following international protocol.
Target 12.2, 12.4-7, 12.A
Our products and solutions are aligned in their focus on the efficient management and use of natural resources. Our emerging product lines in industries such as refrigeration are especially focused on accelerating the transition to natural refrigerants and reducing emissions from our customers’ operations. Furthermore, in conjunction with pursuing ISO 14001 certification, we are committed to adopting more sustainable consumption and production practices in our own operations.
Target 13.1, 13.2, 13.3
Our product lines reduce energy consumption and greenhouse gas emissions globally, reclaim wastewater, and provide drinking water to communities. Our decision to respond to the TCFD framework further integrates the management of climate change-related risks and opportunities into our business strategy and strengthens our resilience to natural disasters and hazards.
Our Focus on Sustainability
Building community partnerships for a more sustainable future
Just as our company is dedicated to delivering efficient and sustainable products to our customers, we are committed to supporting the local and global communities where our employees live and work with that same spirit. Our aim is to lead by example and empower our partners who share this purpose.
Ensuring accountability and transparency
As a publicly traded company (NASDAQ: ERII), our corporate governance efforts are focused on effectively managing risk and preserving long-term, sustainable value for the benefit of our shareholders, our employees, and the broader ecosystem in which we operate.
Awards & Ratings
MSCI ESG Rating “AAA”
Silver EcoVadis Sustainability Rating
IR Awards: “Best ESG Communications” and “Best ESG Reporting among small to mid-cap companies”
Sustainalytics ESG Risk Rating: Medium
2nd Runner Up for “Best First Time Report”
MSCI ESG Small Cap Leaders Index
As of 2023, Energy Recovery, Inc. received an MSCI ESG Rating of AAA. THE USE BY ENERGY RECOVERY, INC OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF ENERGY RECOVERY, INC BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.
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In November 2022, Energy Recovery Inc. received an ESG Risk Rating of 27.7 and was assessed by Morningstar Sustainalytics to be at Medium risk of experiencing material financial impacts from ESG factors. In no event the rating shall be construed as investment advice or expert opinion as defined by the applicable legislation.