Better Health for All

Energy Recovery, Inc.'s core products, which are energy recovery devices for desalination and wastewater treatment, enable the provision of clean water for drinking and irrigation.

This directly contributes to public health by preventing waterborne illnesses and supporting sanitation, indicating that nearly all of their offerings deliver exceptional health benefits. The company's operations also generate positive health externalities, as customers avoid 22.5 million metric tons of carbon emissions annually and save 47.4 TWh of energy consumption, which indirectly reduces pollution and improves public health. There is no evidence of the company generating revenue from products with negative health outcomes. The company's manufacturing facilities are 100% ISO certified for quality, safety, and environmental management systems, but there is no data on user harm from their products. There is no specific data on the affordability of their products for end-users, the extent to which vulnerable populations are reached, direct investment in preventative health measures, or their response to global health crises. The company's products do not carry health risks requiring disclosure or transparency, nor do they involve health data or mental health outcomes.

Fair Money & Economic Opportunity

Energy Recovery, Inc. manufactures energy recovery devices for industrial applications such as desalination and wastewater treatment.

The company's core business does not involve lending, insuring, moving, or storing money for consumers. Therefore, all KPIs related to financial services, consumer credit, and financial inclusion are not applicable to its operations, and no evidence was found in the provided articles to suggest otherwise.

Honest & Fair Business

Energy Recovery, Inc. was awarded the highest ESG rating of AAA by MSCI ESG Research LLC, indicating world-class transparency.

The company has not indicated any financial restatements in its 10-K filing for the fiscal year ending December 31, 2024. The Audit Committee is composed of independent board members, and the company is subject to the U.S. Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. However, the extent of independent verification of ethical claims is limited to engaging external cybersecurity consultants for risk management systems, and specific details on anti-corruption policy enforcement or training frequency are not provided.

Kind to Animals

Energy Recovery, Inc. manufactures energy recovery devices for industrial applications such as desalination and wastewater treatment. The company's business model does not involve products that require cruelty-free certification, animal testing, or animal-derived ingredients.

There is no evidence of animal husbandry, captive animal operations, or the sourcing of animal products like eggs, meat, or dairy. Furthermore, the company's R&D and policy engagement are not relevant to animal-free substitution or animal welfare policies. Therefore, all KPIs related to these activities are scored as N/A.

Planet-Friendly Business

Energy Recovery, Inc. purchased 100% renewable electricity for all its facilities in mid-2022.

The company used 40% recycled alumina powder in production in 2022, resulting in a recycled to virgin ratio of 40:60. The company achieved ISO 14001 Environmental Management System certification in September 2022 and worked with the Bay Area Air Quality Management District (BAAQMD) to address odors from its San Leandro facility, indicating no major environmental compliance violations. The company is working towards full TCFD alignment by 2024, having completed a qualitative assessment of climate-related risks and opportunities. A quantitative climate scenario analysis covering 2024-2040 has been conducted, considering IPCC and NGFS scenarios such as "Fossil Recovery," "Delayed Transition," "Net Zero," and "Quick Transition." The company has a climate justice initiative through a partnership with GlobalGiving's Climate Action Fund, which includes employee donation matching.

Respect for Cultures & Communities

The company has no reported cultural appropriation incidents.

While the company engages in community activities such as sponsoring local schools, supporting water education programs, and participating in disaster relief efforts, and nearly a third of its employees volunteered in 2024, there is no specific quantitative data provided for other KPIs related to formal partnerships with indigenous or local community groups, revenue reinvested in local community development, or local procurement share. Information on cultural impact assessment protocols, specific grievance mechanisms for community concerns, or cultural preservation investments is also not available.

Safe & Smart Tech

The company has no reported incidents of unauthorized data use.

Its privacy policy mentions user rights to access, deletion, and opt-out, and states compliance with CCPA and GDPR. The company's 2024 Form 10-K mentions compliance with various laws and regulations, but no specific regulatory actions, violations, fines, or compliance issues are detailed in the provided information. A securities litigation settlement was announced for the company, but the specific nature of the violations is not detailed, and it is not related to privacy or data protection.

Zero Waste & Sustainable Products

In FY 2022, 40% of the alumina powder used in PX production was reclaimed.

All manufacturing facilities adhere to quality, safety, and environmental management systems certified to ISO standards, including ISO 14001 by the end of 2022. The company reported zero waste disposal violations in FY 2021 and FY 2022, and one critical concern in FY 2020. Energy Recovery has set a corporate emissions reduction target of 65% by 2026 relative to 2021 revenue, and has introduced new targets focused on waste and water management.