Zurn Elkay Water Solutions Corporation (ZWS) — ESG & Values Scores

Environment story

ZWS operates in water management with moderate environmental exposure. The company discloses limited Scope 1/2 emissions data and has not disclosed Scope 3 emissions, triggering a 15-point deduction. No explicit net-zero target year is stated in filings reviewed, triggering a 15-point deduction. The 10-K acknowledges climate change physical risks (rainfall variability, extreme weather) and regulatory risks (climate legislation), but mitigation strategies are not quantified. Environmental liabilities exist (contaminated site remediation, PRPs), though no material fines are disclosed in the excerpt. The company's core product portfolio (water safety, filtration, flow control) inherently positions it as a climate-adaptation beneficiary, but this does not offset disclosure gaps.

Criticisms on file

Environmental Liabilities and Potential Responsible Party Status
Source: ZWS_10k.txt, Legal and Compliance Risks section: Company acknowledges potential liability as PRP for contaminated sites, possible cleanup obligations at current and former facilities, and discovery of additional contamination at acquired facilities. No quantified accruals disclosed in excerpt.
Undisclosed Scope 3 Emissions from Supply Chain
Source: ZWS_10k.txt, MD&A and Risk Factors: Company acknowledges dependency on raw materials (bronze, iron, brass, stainless steel, carbon steel, zinc, engineered plastics) sourced globally but does not disclose upstream (Scope 3) carbon footprint or mitigation targets.
Climate Change Demand Risk
Source: ZWS_10k.txt, Risk Factors: Long-term climate change may decrease demand for certain products if rainfall/water availability patterns shift, potentially altering product mix and reducing margins. Uncertainty regarding net impact.

Disclosed initiatives

Sustainability Report Annual Publication

Company publishes annual sustainability report with strategy goals and targets, though specific metrics are not itemized in the 10-K excerpt.
Product Portfolio Alignment with Water Sustainability

Core business in water safety, flow control, filtration, and hygienic products positions company to support climate-resilient water infrastructure.

Indirect positive: supports municipal water adaptation and building health; not direct operational decarbonization.

Social story

ZWS has not disclosed CEO-to-median-worker pay ratio, workforce turnover, or leadership diversity percentages in the 10-K excerpt provided. No active union-suppression activity or strikes are documented. The company emphasizes recruitment and retention of skilled technical personnel as a strategic challenge and acknowledges human capital management as critical to competitive positioning. Supply chain governance around labor rights is not explicitly addressed. Absence of disclosed diversity metrics and pay ratios prevents full assessment but does not indicate active violations. The company's reliance on ~1,000 independent sales representatives and 65 third-party warehouses suggests indirect labor exposure that is not directly audited.

Criticisms on file

Undisclosed Diversity and Pay Equity Metrics
Source: ZWS_10k.txt, entire filing: CEO-to-median-worker pay ratio, executive/board gender and racial diversity, and pay equity are not disclosed in the 10-K excerpt, limiting social assessment.
Supply Chain Labor Governance Gap
Source: ZWS_10k.txt, Operational Risks section: Company relies on global suppliers for raw materials and third-party distributors (1,000+ sales reps, 65 warehouses) but does not disclose labor audits, modern slavery statements, or living wage commitments for supply chain partners.

Disclosed initiatives

Human Capital Management and Talent Retention

Company identifies recruitment, training, and retention of highly skilled management and technical personnel as core strategic priority in competitive manufacturing sector.

Positive: internal focus on workforce development, though no specific programs or metrics disclosed.
Workforce Safety and Compliance

Company subject to occupational safety regulations and facility-specific safety standards; no specific incidents or improvements detailed in excerpt.

Governance story

ZWS does not disclose share structure details (dual-class or single-class) in the excerpt provided, preventing assessment of voting equality. Board independence percentage is not stated. The company does not disclose annual lobbying expenditures or PAC contributions. No active antitrust, consumer-safety, or financial-fraud regulatory proceedings are mentioned. The 10-K acknowledges compliance with extensive environmental, occupational safety, and product liability regulations but reports no material SEC consent decrees, product recalls, or regulatory fines in the excerpt. Governance structure appears standard for a public manufacturer, but lack of transparency on board composition, lobbying activity, and shareholder engagement limits full assessment. The company is subject to restrictive debt covenants (credit agreement) that constrain capital allocation and strategic flexibility.

Criticisms on file

Undisclosed Board Independence and Share Structure
Source: ZWS_10k.txt, entire filing: Board independence percentage and share-class structure are not disclosed in the 10-K excerpt, preventing assessment of dual-class voting or board diversity.
Undisclosed Lobbying and Political Contributions
Source: ZWS_10k.txt, entire filing: Annual lobbying expenditures and PAC contributions are not disclosed, limiting transparency on political engagement and potential conflicts with climate/environmental policy.
Goodwill and Intangible Asset Impairment Risk
Source: ZWS_10k.txt, Financial Risks section: Goodwill and intangible assets totaled $795M and $835M respectively as of Dec 31, 2025, representing substantial portion of assets and stockholders' equity. Company acknowledges significant impairment risk from industry downturns, integration failures, market-cap declines, or increased discount rates.
Product Liability and Litigation Exposure
Source: ZWS_10k.txt, Legal and Compliance Risks section: Company acknowledges potential product liability claims from use of raw materials (including potential hazardous substances) in products and exposure at manufacturing facilities; maintains insurance but cannot guarantee adequate coverage.

Disclosed initiatives

Debt Covenant Compliance Framework

Company maintains restrictive credit agreement covenants limiting debt incurrence, dividend payments, asset sales, and affiliate transactions to manage financial risk and creditor protection.

Neutral: standard risk-mitigation mechanism; may limit strategic flexibility.
Regulatory Compliance and Internal Controls

Company subject to extensive environmental, occupational health & safety, tax, and product liability regulations; maintains product liability insurance and internal compliance monitoring.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Zurn Elkay Water Solutions Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Zurn Elkay Water Solutions Corporation in the app for interactive charts and portfolio building.

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