Tennant : 2023 Statement and Third-Party Assurance Report

Deloitte & Touche LLP 50 South 6th Street Suite 2800 Minneapolis, MN 55402 USA

Tel: [phone] www.deloitte.com

INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Board of Directors of Tennant Company:

We have reviewed management of Tennant Company's assertion that the Statement of Greenhouse Gas (GHG) Emissions for the year ended December 31, 2023 (the "Statement") is presented in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) published by the World Resources Institute/World Business Council for Sustainable Development (the "GHG Protocol"). Tennant Company's management is responsible for its assertion of the Statement. Our responsibility is to express a conclusion on the Statement based on our review.

Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to the Statement in order for it to be presented in accordance with the GHG Protocol. The procedures performed in a review vary in nature and timing from and are substantially less in extent than, an examination, the objective of which is to obtain reasonable assurance about whether the Statement is presented in accordance with the GHG Protocol, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion. Because of the limited nature of the engagement, the level of assurance obtained in a review is substantially lower than the assurance that would have been obtained had an examination been performed. We believe that the review evidence obtained is sufficient and appropriate to provide a reasonable basis for our conclusion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements related to the engagement.

The procedures we performed were based on our professional judgment. In performing our review, we performed analytical procedures, inquiries, and other procedures as we considered necessary in the circumstances. For a selection of the specified information included in the Statement, we performed tests of mathematical accuracy of computations and compared the specified information to underlying records.

The preparation of the Statement requires management to interpret the GHG Protocol, make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. Measurement of certain amounts, disclosures, and metrics may include estimates and assumptions that are subject to substantial inherent measurement uncertainty, including for example, the accuracy and precision of conversion factors or estimation methodologies used by management. Obtaining sufficient appropriate review evidence to support our conclusion does not reduce the inherent uncertainty in the in the amounts, disclosures, and metrics. The selection by management of a different but acceptable measurement method, input data, or model assumptions, or a different point value within the range of reasonable values produced by the model, may have resulted in materially different amounts, disclosures, and metrics being reported.

Information outside of the Statement was not subject to our review and, accordingly, we do not express a conclusion or any form of assurance on such information. Further, any information relating to periods prior to the year-ended December 31, 2023, or information relating to forward-looking statements, targets, goals, progress against goals, and

1

linked information was not subject to our review and, accordingly, we do not express a conclusion or any form of assurance on such information.

Based on our review, we are not aware of any material modifications that should be made to the Statement for the year ended December 31, 2023 in order for it to be presented in accordance with the GHG Protocol.

June 27, 2024

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Tennant Company Greenhouse Gas (GHG) Emissions Statement for the Year Ended December

31, 2023

Management of Tennant Company ("Tennant" or the "Company") is responsible for the completeness, accuracy, and validity of the Company's Greenhouse Gas (GHG) Emissions Statement for the year ended December 31, 2023. The Company is also responsible for the collection, quantification, and presentation of the 2023 GHG Emissions Statement and for the selection of the criteria, which the Company believes provide objective bases for measuring and reporting. The Company asserts that the 2023 GHG Emissions Statement for the year ended December 31, 2023, is presented in accordance with Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) published by the World Resources Institute/World Business Council for Sustainable Development ("the GHG Protocol").

	2023 emissions metric	2021 emissions metric
GHG Emissions	tonnes of CO2e	tonnes of CO2e*
Scope 1	21,802.1	24,105.6
Scope 2 location-based	8,371	10,202
Scope 2 market-based	837.4	1,903.6
Combined Scope 1 and Scope 2 (market-based)	22,639.5	26,009.2
Scope 3, category 1, purchased goods and
services	148,202	155,795
Scope 3, category 4, upstream transportation
and distribution	64,842	33,515
Scope 3, category 11, use of sold products	473,784	515,997

*This information was not subject to review by Deloitte & Touche LLP and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

Basis for preparation and presentation

This 2023 GHG Emissions Statement reflects activities and initiatives in our 2023 fiscal year (January 1, 2023 - December 31, 2023). All quantitative data, unless otherwise stated, reflect the fiscal year 2023.

Greenhouse gas (GHG) reporting scope and boundary

We apply the operational control approach in alignment with the Greenhouse Gas Protocol's Corporate Standard. The reporting boundary includes Tennant owned and leased facilities and Sales & Service fleets. Based on an analysis of the facility ownership, rental, lease arrangements, and utility usage, we have identified 48 facilities as material. All fleets in

countries with direct sales and service presence are within the reporting boundary. The facilities outside the boundary are, in the aggregate, less than 1% of our total emissions and energy consumption.

Base year GHG emissions

The base year for GHG emissions is FY2021 and is the base year for net-zero by 2040 targets approved by the SBTi in October 2023. Tennant's accounting policies guide adjustments to our base year emissions in accordance with the GHG Protocol. The organizational boundary is assessed annually to evaluate if any structural changes (i.e., acquisitions, divestitures, or new buildings) were made in the reporting year. If any structural changes or other material changes are identified and are determined to have a substantive impact, Tennant will recalculate the base year and intermittent years accordingly. Recalculations will occur once acquired or divested facilities enter or leave Tennant's operational control boundary. We will account for structural changes using the most accurate Scope 1 and 2 market-based emissions data available. However, when GHG inventory data are unavailable, Tennant will backcast data points according to GHG Protocol guidance.

Methodology

All GHG emissions figures are in metric tonnes of carbon dioxide equivalents (CO2e). The global warming potentials (GWPs) are from the IPCC Fifth Assessment Report (AR5), 100-year average. In accordance with the GHG Protocol, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) are included in GHG accounting and reporting. Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3) emissions have been omitted as they are not material sources of GHG emissions.

Scope 1 GHG emissions are direct emissions from owned or controlled sources, including stationary and mobile combustion. The data is collected from each facility and the corresponding emissions are calculated through the application of emissions factors detailed in table 1.

Scope 2 GHG emissions are indirect emissions from purchased electricity. Both location-based and market-based Scope 2 emissions are calculated. The data is collected from each facility, and the corresponding emissions are calculated through the application of emissions factors detailed in Table 1. Tennant's purchased Environmental Attribute Certificates (EACs), including Renewable Energy Credits (RECs) and Guarantees of Origin (GOs), are accounted for in our market-based Scope 2 emissions. The market-based method calculation also includes the use of residual mix emissions factors for purchased electricity data where EACs are not applied. The reporting organization can apply the Quality Criteria in the GHG Protocol Scope 2 Guidance so

that the contractual instruments convey GHG emission rate claims and to prevent double counting. If a residual mix is unavailable, a grid-average emission factor is used as a proxy.

Table 1

Scope 1 & 2 GHG emissions methodology

Emissions source	Emission source type	Emissions factor employed
Scope 1	Propane, natural gas,	2023 UK Department for
	liquified petroleum gas,	Environment, Food & Rural
	motor gasoline, diesel, E85,	Affairs (DEFRA) GHG
	and ethanol	Conversion Factors for
		Company Reporting
		2023 Canada's National
		Inventory Report
		2023 U.S. Environmental
		Protection Agency Emissions
		Factors for Greenhouse Gas
		Inventories
Scope 2	Purchased electricity	2023 U.S. Environmental
		Protection Agency eGRID
		2023 Green-e Residual Mix
		Emission Rates
		2023 AIB Residual Mix
		2023 Canada's National
		Inventory Report
		2023 Australian National
		Greenhouse Accounts
		Factors
		2023 IEA Emissions Factors
		2023 DEFERA GHG
		Conversion Factors for
		Company Reporting

Scope 3 GHG emissions are upstream and downstream value chain emissions. The Company determined a 1% threshold relative to total Scope 3 emissions and the material Scope 3 categories are indicated in Table 2. To ensure the 1% threshold relative to total Scope 3 emissions for material categories and the material and/or relevant categories are accurate, Tennant conducts a full value chain GHG emissions analysis every 5 years.

Table 2

Scope 3 GHG emissions methodology

Emissions		Emission factor
source	Methodology	employed	Material	Relevant
	Annual spend on purchased goods
	and services is collected and the
	corresponding emissions are
	calculated through the application of
	emissions factors. Given the
Category	emission factors are based on 2022,
1,	deflation factors from the World
purchased	Bank are utilized to convert the
goods and	annual spend on purchased goods
services	and services to 2022 USD.	2022 Exiobase	Material	Relevant
	Annual spend on transportation and
	distribution of products is collected
	and the corresponding emissions are
	calculated through the application of
Category	emissions factors. Given the
4,	emission factors are based on 2018
upstream	USD, deflation factors based on the
transporta	U.S. Bureau of Labor Statistics CPI
tion and	are utilized to convert the annual
distributio	spend on transportation and	2018 US EPA
n	distribution to 2018 USD.	EEIO	Material	Relevant
	Annual, model-specific machine	EEA, EEA
	sales are utilized to calculate	France,
	category 11 emissions. Each machine	Australian
	has characteristics based on model	Govt. DOEE,
	specifications: Machine average	Iceland UN
	power consumption per hour,	FCCC Report
Category	Average hours of operation, Average	(2021), IEA
11, use of	number of times used each year,	2012, IEA,
sold	Average machine life. Using these	Columbia
products	values, an average total power	Center on	Material	Relevant

consumption over the machine's life can be used with a geography- specific emissions factor to determine lifetime category 11 emissions, which are accounted for in the year of sale.

Sustainable

Development,

US EPA, CER

2020, HKE

2021, Jersey

Govt, IRENA,

IGES 2023, IGES

2024, Energy

Administration

of Taiwan