TCFD Index

Dover Task Force on Climate-related Financial Disclosures (TCFD) Index

We recognize that climate change is a serious concern that warrants timely, meaningful action on a global basis. The recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD) are an important framework to consider climate risks and opportunities, and in 2021 we completed our initial climate risk assessment and scenario analysis. The information below summarizes our actions in response to the TCFD recommendations.

Download a PDF of Dover’s TCFD Index

Governance

Disclose the organization’s governance around climate-related risks and opportunities.

Recommended disclosure	Comments and examples	More information
Describe the board’s oversight of climate-related risks and opportunities.	Our Board of Directors (the “Board”) provides oversight for the development and execution of our Environmental, Social, and Governance (“ESG”) strategy and the incorporation of sustainability-related risks and opportunities, including climate-related risks, into the Company’s strategy and operations. Dover’s CEO, who is a member of the Board, has management responsibility over ESG issues, including those related to climate change. During 2020, the CEO and Board approved a sustainability assessment which found Climate Change Risks and Opportunities to be one of the relevant sustainability topics for Dover, approved an ESG strategic assessment which prioritized five topics including energy and emissions and innovation for sustainable products, approved beginning the process of setting updated sustainability goals including evaluating science-based targets, and approved initial disclosure on the website in alignment with the Task Force on Climate-related Financial Disclosures (TCFD). In 2021, the Board approved setting science-based targets for our scope 1, 2 and 3 emissions, reviewed the results of a TCFD assessment and scenario analysis conducted in two workshops, confirmed Dover’s top climate-related risks and opportunities and associated TCFD disclosure on the website.	CDP 1.1a, 1.1b Climate Change Risks and Opportunities
Describe management’s role in assessing and managing climate-related risks and opportunities.	Our CEO, who is a member of the Board, has management responsibility over ESG issues, including those related to climate change. To help manage the ESG issues relevant to our businesses, we established a cross-functional Sustainability Steering Committee comprised of Dover corporate and operating company leaders to oversee our sustainability strategy, initiatives, target-setting, performance, and reporting. The Sustainability Steering Committee also considers water- and climate-related risks. The Sustainability Steering Committee meets at least four times per year, regularly briefs the CEO, and provides an update to the Board at least annually. The Sustainability Steering Committee participated in a robust climate risks analysis this past year to understand climate-related risks and opportunities to Dover. Our Senior Vice President, Operations is responsible for managing our processes for internal reporting of energy consumption and GHG emissions and coordinates our action plan to achieve energy and greenhouse gas reductions across our facilities worldwide. Our Senior Vice President, General Counsel & Secretary is responsible for managing overall sustainability and ESG reporting and strategy for Dover.	CDP 1.2a Climate Change Risks and Opportunities

Strategy

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.

Recommended disclosure	Comments and examples	More information
Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.	In addition to our enterprise risk assessment process, we conducted a detailed climate risk assessment process where members of the Sustainability Steering Committee analyzed a broad range of climate-related risks and opportunities to Dover and our operating companies. The process began by prioritizing a broad universe of existing and emerging climate-related risks and opportunities based on criteria such as likelihood, potential impact on Dover, and stakeholder views . From the initial list, eight top physical risks, transition risks and opportunities emerged: Risk of carbon pricing increasing operational costs Opportunity of improving energy efficiency and switching to renewable energy resulting in lower cost and risk Opportunity of innovating more sustainable products Risk of reduced demand for fossil fuels and Dover products serving energy and retail fueling industries Risk of carbon pricing increasing logistics and materials costs Risk or opportunity of inaction or action on climate change, including stakeholder views Risk of increased frequency and severity of extreme weather affecting operations Risk of disruptions to suppliers due to extreme weather potentially resulting in supply change shortages and operational impacts	CDP 2.1a, 2.2, 2.3a and 2.4a Climate Change Risks and Opportunities
Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.	As part of the climate-related risks and opportunities analysis completed in 2021, we completed a scenario analysis to assess the potential likelihood and impact of risks and opportunities to our business under two different climate scenarios. Where possible, we translated climate risks and opportunities into potential financial impact using a series of facts and assumptions based on scientific literature, Dover’s internal information and professional judgment. For example, Dover modelled potential carbon prices under two climate scenarios in order to estimate a range of potential impacts. The minimum impact assumes a $6 carbon price by 2050 under a “Red” or business as usual scenario, and the maximum impact assumes a $100 carbon price by 2050 under a “Green” or two-degree climate scenario. Average annualized cost to Dover in the minimum “Red” scenario resulted in an estimated additional cost of $80,000 (approximately 0.001% of Dover’s 2020 annual revenue of ~$6.7B). In the “Green” two-degree scenario, an additional average annualized cost of $1,500,000 is approximately 0.02% of Dover’s 2020 annual revenue. Additional detail on impacts for the remaining seven risks and opportunities identified above can be found in our annual CDP response.	CDP 2.3a, 2.4a, 3.3 and 3.4 Climate Change Risks and Opportunities
Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios in accordance with the Paris Agreement, including a 2°C or lower scenario.	As part of the climate-related risks and opportunities analysis completed in 2021, we completed an in-depth scenario analysis to assess the potential likelihood and impact of risks and opportunities to our business under two different climate scenarios – one aggressive mitigation 2°C scenario aligned with RCP 2.6¹ and one business-as-usual scenario 4°C aligned with RCP 8.5. We found typically low to moderate impact of climate risks, with higher transition risk under the 2°C scenario and higher physical risk under the 4°C scenario and similar levels of opportunity and risk under both scenarios. We believe our plan to achieve our new 2030 science-based targets helps us with resilience to climate risks under both scenarios and are evaluating the results of our scenario analysis to further improve climate risk management and capture opportunities presented by climate change.	CDP 3.1b, 3.2a and 3.3 Climate Change Risks and Opportunities

¹ RCP = Representative Concentration Pathway (RCP), physical models from the IPCC, the Intergovernmental Panel on Climate Change, the U.N. body for assessing climate science

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks.

Recommended disclosure	Comments and examples	More information
Describe the organization’s processes for identifying and assessing climate-related risks.	We have established a risk assessment team consisting of senior executives, which annually oversees a risk assessment made at the segment and operating company levels and, with that information in mind, performs an assessment of the overall risks our company may face, including with respect to any climate related risks. The assessment of risk and opportunities includes consideration of the potential impact of the risk on our overall market position, competitive landscape, product innovation, sales revenue and pre-tax earnings, as well as the likelihood and severity of the impact and mitigating controls in place. In addition to our enterprise risk assessment process, we conducted a climate risk assessment process during which members of the Sustainability Steering Committee (SSC) analyzed a broad range of climate-related risks and opportunities to Dover Corporation and all our operating companies. The process began by the group prioritizing a broad universe of existing and emerging climate-related risks and opportunities based on criteria such as likelihood, potential impact on Dover, and stakeholder views. From the initial list, eight physical risks, transition risks and opportunities were prioritized. These risks will be considered for incorporation into the broader enterprise risk management process where risk owners manage and regularly review risks to understand and monitor enterprise resilience. The climate risks will be primarily managed by the Sustainability Steering Committee and designated risk owners.	CDP 2.2 and 2.2a Climate Change Risks and Opportunities
Describe the organization’s processes for managing climate-related risks.	Our Board of Directors oversees a comprehensive enterprise risk management process to identify and manage risks, including any risks related to environmental and social issues, and periodically reviews the processes established by management to identify and manage risks and communicates with management about these processes. Dover’s senior management is fully engaged in and responsible for managing climate-related risks and opportunities. Our cross-functional Sustainability Steering Committee, comprised of senior Dover corporate and operating company leaders, oversees our ESG initiatives and sets our sustainability strategy and targets, including those related to energy and climate change. The CEO and Sustainability Steering Committee approved and are overseeing Dover’s Science-Based Targets which we believe will help address climate-related risk and capture opportunities.	CDP 2.1a, 2.1b, 2.2 and 2.2a Climate Change Risks and Opportunities
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.	The climate risk assessment process conducted included members of the cross-functional Sustainability Steering Committee who also sit on the overall enterprise risk management committee. A similar process and criteria were used to align the overall risk management with climate risk management (e.g. thresholds for level of impact of risks). The climate risks and opportunities assessed will be considered for incorporation into the broader enterprise risk management process where risk owners manage and regularly review risks.	CDP 2.2 Climate Change Risks and Opportunities

Metrics and targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

Recommended disclosure	Comments and examples	More information
Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.	As part of our annual CDP reporting, we track metrics such as: Scope 1, 2, and 3 GHG emissions GHG emissions intensity Energy use and energy intensity Water As part of our assessment of climate-related risks, we further consider metrics such as global carbon prices, oil demand, our scope 3 emissions from use of sold products (category 11), % renewable energy, among others.	CDP section C4 Energy and Emissions Water
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.	The company discloses Scope 1, Scope 2, and Scope 3 GHG emissions in our CDP response. Our energy and GHG metrics are verified by a third party before being disclosed in our sustainability webpages and annual CDP submission. For more information, refer to the Company’s CDP response.	CDP section C6 Energy and Emissions
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.	Our new 2030 greenhouse gas goals have been approved by the Science-Based Targets initiative (SBTi). The company’s 2030 Science-Based Emissions Targets are to reduce Scope 1 + 2 GHG emissions each by 30% and reduce Scope 3 GHG emissions by 15%, in all cases based on a 2019 base year. We report performance against these targets annually in our CDP Climate response and on our Energy and emissions webpage.	CDP 4.1a and 4.1b Energy and Emissions

All statements in this document other than statements of historical fact are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous risks, uncertainties, assumptions and other factors, some of which are beyond Dover’s control, that could cause actual results to vary materially from those indicated or anticipated by such forward-looking statements. These risks, assumptions and uncertainties include those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and in other documents that we file or furnish with the Securities and Exchange Commission. Dover undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

The climate risks identified should not be interpreted as a decision by Dover that such information is “material” as that term is used or understood in filings with the Securities and Exchange Commission.