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Working for a Safer, More Sustainable Future

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Working for a Safer, More Sustainable Future The world runs on trust Working for a safer, more sustainable future 2019 ANNUAL REPORT At UL, we are endlessly curious. We use science to substantiate trust. We ask the hard ContentsContents questions, and we test, inspect, audit, certify and verify to find the 04 Progression, protection and sustainability right answers. We A message from Jennifer Scanlon, president and chief executive officer, UL work to enable smarter decision making 06 Organization overview and life-enhancing technologies aimed at 08 Our year in review creating prosperity and 11 Progression well-being for all. Evolving our capabilities 17 Protection Making the world safer 23 Sustainability Creating a better future 29 Leadership Board of directors and company leadership 02 | Progression, protection and sustainability A message from Jennifer Scanlon, president and chief executive officer, UL To our employees, customers factors in autonomous vehicles, from wire certification and advisory activities of UL, We view the future vision of UL through the and cable to advanced medical devices. In the for-profit entity. Since then, we at UL lens of opportunity. We pursue the safety of and stakeholders the process, we’ve helped ensure that our have made 47 acquisitions. Today, we are our customers’ new-to-the-world technologies customers can keep their brand promises. driving efficiency through our operations via our Connected Technologies segment and delivering the highest quality services while we creatively apply technology to our For 125 years, UL has helped to make the UL is much more than our history. to our customers. Working with customers Retail and Industry segment to help ensure world a safer place. We started when We are transforming our business for and other stakeholders, we devise the testing the safety of customers’ more traditional electricity was the cutting-edge technology of that enables us to anticipate and solve our products. We send thousands of field our next century. As lovers of data, the day and through testing and certification, customers’ biggest safety issues. engineers on over 650,000 site visits each we made the world safer by minimizing fire students of science and dedicated year to inspect our customers’ operations and electrical risks. UL has expanded well safety advocates, we see technology As a 125-year-old company, we are clearly around the world. We employ hundreds beyond our focused beginnings to services disruption as a business opportunity. not a “startup.” Yet, we are an agile industrial of software engineers to develop new and that now span a range of testing, inspection, leader implementing new strategies reflective different ways to apply digitization to our certification, verification, learning and advisory Seven years ago, we launched our Second of today’s digital age. We understand our customers’ safety challenges. services: from electromagnetic compatibility Century initiative, distinguishing the research, customers’ safety needs from the inside out. (EMC) to environmental, sustainability and standards development and advocacy There’s never anything old about the rigor of governance (ESG), from chainsaw safety to activities of the Underwriters Laboratories our science and the precision of our testing. cybersecurity, from seat belts to human nonprofit entity from the testing, inspection, 03 | A message from Jennifer Scanlon continued We send thousands of a learning organization where we provide 125th anniversary, our employees helped clean expertise in an impressive array of traditional field engineers on over training to enable our employees to embrace 125 rivers and streams around the world. UL and emerging sciences. It’s important that the trends that are rapidly reshaping pursues profit but never at the expense of we think strategically about embracing the our world. our responsibilities to people or planet. technology that better connects the whole 650,000 value chain – customers, suppliers, employees SITE VISITS EACH YEAR Protection reflects UL’s overall dedication Regulators, our customers and the public and partners. I have a long history of to safety. UL is the global safety science have sent the message loud and clear that appreciating how to best leverage technology to inspect our customers’ operations leader, which means we hold ourselves to every organization must take responsibility in this ever-changing business environment. around the world. the highest standards. Making the world a for building sustainability into its operations. Sustainability is no longer a “nice to do”; it’s an Even in my short time with UL, I have As the breadth and depth of our business safer place begins with us in our facilities. We are committed to taking an integrated imperative. This imperative means helping our witnessed hundreds of stories of our work offerings have become more complex, I customers implement environmental health with customers. In this 2019 annual report, believe it’s important to summarize our risks approach to Protection. We fully understand and embrace our dual role as stewards of our and safety initiatives, addressing material and we are bringing you just a few. It was hard and opportunities in three general categories: supply chain complexities, and supporting to choose because we are so proud of the Progression, Protection and Sustainability. customers’ most valuable assets, while at the same time protecting our own our customers’ participation in a closed- work we do behind the scenes to help our intellectual property. loop economy where resources are recycled, over 90,000 customers be more successful in Progression describes the evolution that repaired and reused. delivering trusted innovation. In the course our culture is experiencing, that is, to be of our work, we meet extraordinary people Sustainability has become a driving force more data-driven, market-focused and fully whose companies are having an extraordinary in today’s world. Collectively, we are called engagedin solving our customers’ greatest impact on the world. to be responsible stewards of the Earth. MORE safety challenges while holding fast to our THAN Sustainability at UL goes beyond addressing mission to make the world a safer place. 14,000 Stay tuned. UL’s best century is yet to come. the effects of climate change. It also includes Progression also includes the power of our mission-driven employees of UL, dedicated taking steps to contribute to a self-sustaining innovations to create new offerings that to helping to make the world a safer place. world. In other words, UL is focused on will expand our value and relevance to people, planet and profit. For our people, we our customers. As the new CEO, I couldn’t be more thrilled help ensure a safe work environment and to join the more than 14,000 mission-driven engagement in exciting and meaningful work. Our employees are embracing progression employees of UL, dedicated to helping UL is taking important steps to reduce its and evolving and growing our collective to make the world a safer place. We are Jennifer Scanlon carbon footprint. In fact, as celebration of our capabilities. We pride ourselves on being scientists, engineers and professionals with President and Chief Executive Officer 04 | Organization overview We believe that safe and responsible innovation creates a better future for all. To fulfill a common mission of working for a safer world, UL solves critical challenges through business solutions UNDERWRITERS LABORATORIES UL while our nonprofit affiliate, Underwriters Underwriters Laboratories conducts rigorous To advance the company mission, independent research and analyzes safety UL offers testing, inspection, auditing, Laboratories, is dedicated to the discovery data, convenes experts worldwide to address certification, verification, advisory, risks, shares knowledge through safety training, analytics and digital solutions. and application of scientific knowledge. education and public outreach initiatives, With scientific research and data-driven and develops UL Standards to guide safe insights, we help companies around the commercialization of evolving technologies. world get their innovations to market. 05 | We are organized into two business units to best serve the global community: the Connected Technologies business unit and the Retail and Industry business unit. Connected Technologies divisions Connected Technologies business unit The Connected Technologies business unit was organized to take Appliances, Automotive Consumer Energy and advantage of ongoing digital transformation trends across industries as HVAC/R and Technology Power Lighting Technologies well as the evolution from products to systems. This business unit aims to address new customer challenges related to cybersecurity, wireless services, functional safety, human factors engineering and other ecosystem-driven advancements. Identity Life and Health Small Management Sciences Appliances and Security Retail and Industry divisions Retail and Industry business unit The Retail and Industry business unit leverages product and global Building and Consumer Environment Materials and Wire and regulatory expertise combined with software solutions to help Life Safety and Retail and Supply Chain Cable Technologies Services Sustainability organizations in the chemicals, materials and components supply chain, retail and consumer products, and building and construction segments better address the growing complexity of their value chains. This business unit helps customers address increasing global regulations
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