Letter from our CEO
Dear Fellow Stakeholder,
The events of the past few years serve as a reminder that in our interconnected world, we all need to play a role in ensuring the wellbeing of our communities, be stewards of our environment, conduct our business with high ethics, and make a positive impact on social issues that are important to our company and stakeholders.
Elements of environmental, social and governance (ESG) have long been part of UFP’s DNA but it is now imperative we combine all our ESG strategies and actions into one annual ESG report. Our Board of Directors unanimously agreed to establish a cross-functional team led by senior executives of the Company to set our Sustainability agenda and prioritize our goals and efforts to where we can make the most impact in our communities. We understand that our responsibilities extend beyond corporate profits and therefore, we will track and publish our results. This is the level of dedication we pledge to employee satisfaction, extremely high ethics, environmental sustainability, social issues, and emphasis on providing our customers with innovative products and outstanding service with unsurpassed quality.
While ESG is an ongoing endeavor, we are proud of our efforts to date. Some of which include:
- Donations of food, clothing, and toys to support the victims of the devastating 2021 Mayfield, KY tornado.
- Responding to the shortage of PPE needed by healthcare workers by donating thousands of N95 masks, face shields and gloves to numerous local medical facilities.
- Working with the Hope Network to provide employment for those with disabilities.
- Redirection of over 500 tons of waste material per year from landfills for recycling.
- Installation of a 263.52 kilowatt grid-tied solar electric system which will generate roughly 306,346 kilowatt-hours of electricity every year, offsetting the equivalent of driving over 558,750 miles in a gas-powered car. The solar electric system will take 13% of our energy usage off the local grid.
- Construction of a trailhead for the Cooper North Pasture Preserve surrounding the corporate headquarters to preserve our natural resources.
I thank you for investing in UFP Technologies and please thank my teammates at UFP who executed our strategic plan in a challenging 2021, while recognizing the importance of our contributions to maintaining human rights, workplace diversity, environmental sustainability, and doing our part to improve our stakeholders’ lives and society as a whole. Through our promise of transparency, we will continue to share our ESG goals and progress.
R. Jeffrey Bailly
Chairman and CEO
UFP recognizes the importance of Human Rights, Social Responsibility, and Environmental Sustainability. The following policies and initiatives demonstrate how we aim to achieve our business goals while advancing human rights, fostering social responsibility, and preserving our environment.
To that end, UFP Technologies has an established ESG committee comprising members of the Company’s executive team to oversee and develop the ESG strategy along with specific sustainability goals and targets. The Committee develops and prioritizes the ESG initiatives in compliance with the guidelines of established ESG reporting frameworks and monitors progress against key metrics selected. The framework utilized identifies those sustainability issues and opportunities relevant to the Company’s operations. The Board of Directors approves the ESG Strategic goals and monitors progress quarterly through the Strategic Plan updates provided by management.
The Audit Committee of the Board of Directors provides oversight of the ESG initiatives and procedures. See Audit Committee Charter Paragraph IV.D.9.
UFP is committed to being a good planetary citizen and taking all appropriate actions to minimize harm to our planet and maximize any favorable efforts benefiting our environment both locally and globally. Thus, we have established a diverse, cross functional team which includes several corporate officers to measure, report and improve our overall performance. These initiatives include measuring GHG emissions, water consumption, eliminating generation of hazardous wastes, and ensuring our overall impact aligns with global sustainable development goals (SDGs). Many of these programs and initiatives are in their development or infancy, and we look forward to sharing our results and improvements publicly with our fellow stakeholders.
Electronic Waste recycling programs
- A program is in place whereby obsolete, unusable electronic devices are handled by recyclers that reuse and/or recycle of all individual parts that make up the pieces of equipment in an environmentally acceptable manner. This cuts down on production waste, saves natural resources, and reduces pollution.
- An additional electronics recycling program for the facility with employees invited to participate with their personal electronic devices.
- Shred-It paper recycling is done throughout the year as needed and annually with employees invited to bring in anything they want to shred.
- Redirection of over 500 tons of waste material per year from landfills for recycling.
Energy efficient programs
- LED lighting installed throughout the facility.
- Worked with ReVision Energy to install a 263.52 kilowatt grid-tied solar electric system which will generate roughly 306,346 kilowatt-hours of electricity every year, offsetting the equivalent of driving over 558,750 miles in a gas-powered car. The solar electric system will take 13% of our energy usage off the local grid. For more information click here.
Preserving our natural resources
- UFP constructed a trailhead for the Cooper North Pasture Preserve surrounding the corporate headquarters.
- Clean water for food, sanitation and hygiene is a fundamental human right and UFP fully supports ensuring access to clean water for all people. UFP’s operations generally utilize minimal water in the production process.
Investments made in R&D
UFP is continually looking for new materials and processes designed to best fit the needs of our customers and in the best interest of conserving energy and waste.
UFP is committed to being a leader in social responsibility and we value the rights, working, and living conditions of all people employed by UFP as well as those involved in our supply chain and, to the extent that we can influence, all stakeholders locally and globally on our planet. UFP’s policies and procedures aim to provide a safe and welcoming work environment and to ensure those in our supply chain do the same. As with all aspects of UFP’s sustainability objectives, UFP will measure, publish and continuously work to improve our key social metrics.
Workplace and Labor Rights
UFP is an Equal Opportunity/ Affirmative Action employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, or protected veteran status and will not be discriminated against on the basis of disability. UFP complies with all local applicable laws and regulations relating to wages, work hours, overtime and benefits.
Our goal is to promote a workplace which is professional and treats all of those who work here with dignity and respect. This policy embraces the conduct of UFP's employees in their work-related dealings with each other, but it also extends to conduct from and with our customers, vendors and other business partners. UFP will not tolerate unlawful discrimination and harassment in the workplace. In connection with this policy, UFP expressly prohibits any form of unlawful discrimination and harassment based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, ethnicity, age, physical or mental disability, genetic information, military or veteran status, pregnancy, childbirth or related medical conditions, or any other legally protected status under applicable federal, state or local law.
In managing our supply chain, we issue to our suppliers UFP’s Supplier Guidelines that, among other issues, sets out the requirements and expectations we have for our suppliers (and in turn their suppliers). We evaluate the risk of human trafficking and slavery in our own supply chain, rather than using a third party to do so, and include policies in our Supplier Guidelines to address those risks. Our anti-slavery and anti-trafficking policies include specific requirements and warranties for:
- Prohibition of child labor;
- Compliance with applicable local occupational health and safety and labor laws (including slave, prisoner, or any other form of forced or involuntary labor); and
- A right for UFP to request a higher standard of compliance where we believe that the local laws are not in line with our corporate values.
UFP requires our suppliers to acknowledge all purchase orders inclusive of Supplier Guidelines. Through this, our suppliers acknowledge the materials incorporated into UFP’s products comply with local laws regarding slavery and human trafficking. Failure to comply with any part of the Supplier Guidelines can result in the termination the contract or the business relationship.
Human Rights Policy
UFP is committed to integrity and compliance in all its business dealings. This UFP Human Rights Policy (this “Policy”) sets forth our expectations and policies regarding human rights. UFP always endeavors to live these values and meet the highest standards of corporate behavior in all aspects of business. The foundation for this Policy and our values is integrity and caring for people, which are fundamental to the success of our enterprise. The Board of Directors exercises oversight over compliance of UFP policies.
Healthy and Safe Workplace
As reflected in our Safety policy, we are committed to managing our operations in a safe, secure and sustainable manner.
Children and Young Workers
As a fundamental principle, we do not employ children or support the use of child labor. We do encourage the creation of educational, training or apprenticeship programs tied to formal education for young people.
Freedom of Engagement
We believe that people should work because they want or need to, not because they are forced to do so. We prohibit the use of prison labor, forcibly indentured labor, bonded labor, slavery or servitude.
Equality of Opportunity
Our workplace is a meritocracy, where our goal is to attract, develop, promote and retain the best people from all cultures and segments of the population, based on ability. We support and uphold the elimination of discriminatory practices with respect to employment and occupation, promoting and embracing diversity in all aspects of our business operations. We are an equal opportunity employer and do not discriminate either directly or indirectly against employees or prospective employees on the basis of race, color, religion, sex, sexual preference/orientation, citizenship, marital status, veteran status, national origin, age or disability, or against any other protection established by applicable law or regulation. We are firmly dedicated to creating a workplace that values and respects people from diverse backgrounds and enables its employees to do their best work. We have zero tolerance for discrimination or harassment of any kind. At UFP, we are firmly committed to extending our human rights policies to address the protection of minority groups’ rights and women’s rights.
We ensure that compensation meets or exceeds the legal minimums and is competitive with industry standards. Our compensation philosophy is clearly communicated to employees and is in full compliance with all applicable laws.
Relationships with Communities
Within the framework of our Values, we respect the cultures, customs and values of the people in communities where we operate and take into account their needs, concerns and aspirations. We are committed to engagement and consultation with potentially affected groups and all of our relevant stakeholders as we prepare, evaluate and continue to refine our human rights policies and initiatives. Training
UFP employees complete periodic training on the UFP policies and the Code of Business Conduct and Ethics (the “Code”). In addition, UFP directors and executive officers certify, on an annual basis, as to their acknowledgment of the Code and that they will act in accordance with the Code. In connection with our quarterly and annual SEC reporting certain key members of management similarly certify as to their compliance with certain sections of the Code as well as confirmation of their responsibility to report suspected violations of law, Company policy and/or the Code.
Occupational health and safety
We are committed to providing a safe and secure environment for all employees and visitors. The management of UFP considers no phase of its operation to be more important than the safety and health of all its employees. It is the policy of UFP to provide and maintain a safe and healthful workplace and to adopt and enforce operating practices that will safeguard all employees. In support of this policy, UFP shall comply with all applicable federal, state and local safety and health regulations.
UFP considers safe work practices to be a condition of employment and requires that all employees utilize the safety equipment provided, comply with established safety rules and actively participate in the process of hazard identification, reporting and reduction.
Total OSHA Recordable Incident Rate (per 100 Full time employees and contract workers):
- 2019 - 3.20
- 2020 - 1.84
- 2021 - 1.56
- 2019 - 0
- 2020 - 0
- 2021 - 0
Personal Privacy and Confidentiality
UFP places significant importance on the protection of personal data, including the sensitive data of our employees, directors, customers, contractors and suppliers. We strives to adhere to high standards of privacy and security and take all reasonable steps to anticipate breach methods and prevent unauthorized access to personally identifiable information. UFP has a Protection of Personal Information Policy which identifies specific expectations for the handling of personal information. All employees are trained on acceptable use of information technology, the GDPR regulations, and cybersecurity threats to our systems and data.
UFP Policy prohibits political contributions by the Company or by employees on behalf of the Company, except as approved in advance by the Chief Executive Officer, and subject to review by the Company’s General Counsel. During the most recently ended Fiscal Year, we did not make any political contributions.
UFP Technologies supports responsible sourcing practices including compliance with the Conflict Mineral provision of the Dodd-Frank Act. Click here for a our Conflict Mineral Policy.
Policy on slavery and human trafficking
UFP supports the California Supply Chain Act’s objective to provide consumers with critical information about the efforts that companies are undertaking to prevent and root out human trafficking and slavery in their product supply chains – whether here or overseas. UFP does not engage in or support any forced labor practices including bonded, slavery and human trafficking practices. All work performed at UFP is voluntary and employees have the right to terminate employment at any time. Click here for a our California Transparency in Supply Chains Act.
Supporting our local communities
- Annual donations to the following organizations:
- Massachusetts Chiefs of Police Association
- The Salvation Army
- American Red Cross
- The Jimmy Fund
- Community Action
- Pine Street Inn
- Jeanne Geiger Crisis Center
- LASPA in support of prescription eye wear for children in need.
- Torrance South Bay YMCA in support of community programs for families such as: before and after school care, veterans returning from service in need of family services, senior meals programs, and more.
- Newburyport Education Foundation
- Annual scholarships to Georgetown High School students who want to pursue a trade.
- Participation in the Wonderfund’s annual Holiday Gift Drive to provide gifts for children supported by the Massachusetts Department of Children and Families.
- Volunteer work for Junior Achievement to deliver experiential programs on the topics of financial literacy, work readiness, and entrepreneurship to students in kindergarten through high school.
- Working with the Hope Network to provide employment for people with disabilities.
UFP sets a tone of high integrity and ethical behavior for the Company and believes that strong Corporate Governance oversight provided by officers and directors with relevant skills and expertise, ensures that all shareholders are treated equitably, that the company provides full disclosure and transparency in its communications.
UFP’s Board of Directors (BOD) has adopted a set of corporate governance guidelines and a Code of Conduct and Ethics that applies to all directors, officers, and employees. The guidelines and Code of Ethics, together with the charters of the standing committees of our Board of Directors, our certificate of incorporation, and bylaws, are the framework of our corporate governance.
Highlights of the Company’s Corporate Governance practices include the following:
- Six of the seven Directors on the BOD are independent. 100% of BOD Committee members are independent
- The BOD is comprised of members with a wide range of expertise that is relevant to the operations of UFP Technologies.
- The BOD is provided independent oversight by the Lead Independent Director.
- The BOD and Committee meeting process is designed to ensure that key risks are reviewed.
- The Audit Committee reviews the overall risk management policies and practices as well as financial risk exposures. All Committees play a role in risk oversight.
- The Company’s Code of Conduct and Ethics applies to all executives, employees, and directors and is provided to all employees as part of the onboarding process. It is recommunicated to all personnel on an annual basis, emphasizing the importance of compliance with the ethical expectations of the Company.
- The Company has adopted an additional Code of Ethics for Senior Financial Officers that applies to our principal executive officer, principal financial officer, and controller.
- The Company has a Complaint Procedures for Accounting and Auditing Matters” (“Whistleblower”) program in place to provide an avenue to employees, vendors, customers and others to communicate concerns of fraudulent activities, accounting or auditing matters, or other compliance issues without fear of dismissal or retaliation of any kind.
Visit our Corporate Governance page.