A Message From Our Chief Sustainability Officer
Watts Journey to Sustainability
Ten years of annual sustainability reporting at Watts has been a journey defined by consistency and growth. Each report has built on the one before it, and this 10th annual report provides the most mature reflection of our work to date. The results of our collective efforts can be seen not only in the data we report, but in the depth and discipline we bring to managing our performance and sharing our progress. Over the last decade, we have grown from tracking a handful of environmental metrics to managing a comprehensive environmental, social, and governance (ESG) strategy with quantitative performance targets, clear governance, and engaged teams.
In 2025, we surpassed annual targets across each of our intensity metrics, achieving a 3.6% reduction in water intensity, a 13% reduction in market-based carbon emissions intensity, and a 12% reduction in hazardous waste intensity. We reduced our absolute carbon emissions by approximately 1,300 metric tons against a 2023 baseline. Continued progress against our energy strategy is supported by investments in on-site solar generation and energy efficiency upgrades across the company.
After seven consecutive years of achieving our eco-efficiency targets, future reductions require even more innovation, detailed management, and capital investments. In 2025, we leveraged specialized academic and technical knowledge to support our operational expertise and identify new opportunities. At our Franklin, NH, and Fort Worth, TX, facilities, we continued to partner with local universities to study and evaluate potential solutions to safely divert away waste from landfills.
Employees across Watts continue to engage as active contributors to our sustainability work — a shared commitment rather than a leadership directive. Operations Teams are consistently identifying sitelevel reduction opportunities through monthly operating reviews. For example, our Fort Worth facility is installing a new condensate capture system to reduce freshwater withdrawal. Our Auckland facility installed a closed-loop rainwater system, and the factory now runs on 100% harvested and recycled water.
We were proud to welcome several new brands to the Watts family throughout 2025, with each bringing its own unique capabilities and sustainability expertise, with many having long legacies of social and environmental commitments. With each acquisition, we have taken a methodical approach to understand how our ESG strategy may be impacted, integrating best practices and ensuring strong data governance.
The foundation we have built over the past decade positions us well for what comes next. Thank you for taking the time to learn more about our work.
Sincerely,
Kenneth R. Lepage
General Counsel and Chief Sustainability Officer
“We have taken significant steps to ensure sustainability is ingrained in our culture, business practices, operations, and the way we engage with our communities.”
Kenneth R. Lepage
General Counsel and Chief Sustainability Officer