MASHINIi

Smith AO Corporation.

AOS.US | Manufacture of domestic appliances

A. O. Smith Corporation is a global manufacturer of water heaters and boilers, offering a comprehensive product line including residential and commercial water heaters, boilers, water treatment systems, and air purification products. The company operates through North America, Rest of World, and Cor...Show More

Ethical Profile

Mixed.

A. O. Smith Corporation, recognized as one of the World's Most Ethical Companies by Ethisphere for multiple years, demonstrates a mixed ethical profile. Its Aquasana filters are certified to reduce over 99% of lead and other harmful contaminants, with initiatives distributing filters to homes with lead service lines. The company aims for 40 million gallons of annual water savings by 2030 and has surpassed its greenhouse gas reduction target by 17%. However, a 2019 lawsuit allegedly involved misleading investors regarding China operations. Critics also point to employee concerns about strict attendance policies. While one facility achieved 90% waste reduction, company-wide zero-waste programs are less evident, and the company still relies on gas water heaters.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business40
-100100
Kind to Animals0
-100100
No War, No Weapons-20
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities10
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products-10
-100100

Better Health for All

0

A. O. Smith's Aquasana brand offers water filtration products that provide substantial health benefits. These include the first whole-house filter certified to reduce over 99% of PFOA, PFOS, lead, and cysts

1
. Additionally, 17 Aquasana water filter products are NSF certified to reduce PFOA and PFOS contaminants below health advisory levels, addressing concerns such as developmental issues and cancer
2
. The company also partnered with local organizations in Milwaukee to distribute water filtration products to homes with lead service lines, specifically targeting households with pregnant women and children
3
. This initiative was supported by $90,000 in community donations
4
. The company also surpassed its greenhouse gas reduction goal by 17% and donated over $1.75 million to nonprofits in 2023
5
.

Fair Money & Economic Opportunity

0

A. O. Smith Corporation is a global manufacturer of water heaters and boilers, not a financial institution. The company does not offer lending, deposit services, or consumer credit products. Therefore, all Key Performance Indicators (KPIs) related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility for financial data, fair lending compliance, wealth building outcomes, financial literacy initiatives, debt burden ratio, geographic inclusion for financial access points, and product simplicity for financial products, are not applicable to its core business operations. While the company engages in charitable giving, such as $2.1 million in A. O. Smith Foundation grants in 2024, and offers energy-efficient products that can save customers money (e.g., up to $6,000 over 10 years in energy costs for a Voltex AL water heater), these activities do not fall under the specific definitions of the 'Fair Money & Economic Opportunity' KPIs, which are focused on financial services.

1

Fair Pay & Worker Respect

0

No specific quantitative data was provided across the articles for the KPIs under Fair Pay & Worker Respect. While A. O. Smith's Code of Conduct (January 2021) outlines commitments to dignity, respect, non-discrimination, equitable pay, and a safe working environment

1
, and Article 12 (October 2023) mentions a comprehensive compensation program, ongoing pay equity tracking, and safety training
2
, these are policy statements or descriptions of initiatives, not measurable outcomes. Employee reviews (Articles 4, 5) offer anecdotal feedback on pay, benefits, union presence, and turnover
3
,
4
, but lack company-wide percentages or specific metrics. The company conducts a Global Employee Engagement Survey (Article 12) with a 97% participation rate in 2022
5
, but the actual engagement score is not disclosed. Similarly, no data was found for CEO-to-median pay ratio, collective bargaining share, safety incident rate, labor violation incidents, insecure contract share, or health insurance coverage rates.

Fair Trade & Ethical Sourcing

0

In 2023, 80.0% of A. O. Smith's suppliers certified adherence to the company's code of conduct.

1
The company prepared a Conflict Minerals Report for 2023, focusing on tin, tantalum, tungsten, and gold (3TG), with its program designed to conform with OECD Guidance.
2
A. O. Smith contacted over 604 direct suppliers for this report, receiving responses from more than 90% of total supplier spend.
3
Out of seven identified smelters in Covered Countries, three are certified as conformant by the Responsible Minerals Initiative (RMI), one is in the process of being audited, and three are non-conformant.
4
The company expects suppliers to transition to conformant smelters if non-conformant ones are identified.
5
A. O. Smith is a member of the RMI, has an Integrity Helpline for reporting violations, and provides internal training.
6
Supplier contracts typically include conflict minerals reporting requirements.
7
A. O. Smith was recognized as a World's Most Ethical Company by Ethisphere in 2024
8
and 2025.
9

Honest & Fair Business

40

A. O. Smith has been recognized by Ethisphere as one of the World's Most Ethical Companies in 2024

1
and 2025
2
, specifically highlighting its anti-corruption performance
3
. The company maintains a comprehensive Anti-Bribery Policy, last reviewed in February 2023
4
, which applies globally to all employees, directors, officers, managers, third parties, affiliates, subsidiaries, and joint venture partners
5
. This policy prohibits bribes and facilitation payments
6
, outlines guidelines for permissible expenses
7
, requires due diligence on third parties
8
, and mandates accurate books and records
9
. Periodic certification and anti-bribery training are required
10
, with 100% of full-time salaried employees certifying adherence to the code of conduct in 2019 and 2023
11
. The company also has a robust whistleblower policy, including an Integrity Helpline managed by an independent third-party service provider
12
. The Helpline is toll-free
13
, web-based
14
, available 24/7 in multiple languages
15
, and offers anonymous reporting
16
. Reporting procedures are translated
17
, distributed worldwide
18
, publicized through various channels
19
, and highlight the prohibition on retaliation
20
. A special procedure exists for accounting-related reports
21
, which are escalated to the Chief Financial Officer
22
and, if material, to the Chairperson of the Audit Committee for investigation
23
.

Kind to Animals

0

A. O. Smith Corporation's core business of manufacturing water heaters, boilers, and water treatment products is not directly related to animal testing or welfare.

1
The company holds a neutral position regarding direct interactions with animals.
2
There is no specific documented policy or certification concerning animal welfare within its operations or supply chain.
3
While sustainability efforts focus on reducing environmental impact through water conservation and recycling, which indirectly aid habitat preservation, no measurable biodiversity impact or specific conservation metrics are provided.
4

No War, No Weapons

-20

A.O. Smith Corporation has no significant involvement in military contracts or arms manufacturing, having shifted its focus to water heating and treatment products in recent decades.

1
Historically, the company was involved in military manufacturing during the World Wars
2
, but it has since divested from these activities.
3
Currently, its core business has no defense or arms-related activities
4
, and it has no exposure to controversial weapons.
5
The company does not publicly advocate for peace initiatives or conflict resolution programs
6
, nor does it allocate revenue to such programs.
7

Planet-Friendly Business

0

A. O. Smith's water withdrawal was 361.3 m³ per $1 M revenue in 2024.

1
For its North America water heaters and boilers, 65% of the steel used is sourced from recycled steel.
2

Respect for Cultures & Communities

10

The A. O. Smith Foundation partnered with over 170 organizations in 2024

1
and funded 199 nonprofit community organizations in 2023.
2
In 2023, the company donated $1.75 million to community organizations,
3
which represents approximately 0.045% of its $3.9 billion revenue for that year.
4
No cultural appropriation incidents have been reported.
5
The company does not have a specific cultural impact assessment protocol,
6
nor are Free, Prior and Informed Consent (FPIC) processes applicable to its business model.
7
There are no reported cultural site disruptions, as the company's operations do not typically involve such sites.
8

Safe & Smart Tech

10

A. O. Smith has not reported any material data breaches

1
and has an incident response plan in place.
2
The company provides excellent user data control, detailing rights for residents in various U.S. states (California, Virginia, Colorado, Connecticut) and individuals in the UK and EEA, including rights to know, access, delete, correct, opt-out of sale/sharing, and data portability.
3
Users can also opt out of promotional materials and text messages, and links are provided for advertising opt-outs.
4
The company's privacy policy explicitly applies to major privacy regulations in the U.S. and Europe, demonstrating good compliance.
5
However, the privacy policy lists a broad range of personal information collected without explicit mention of data minimization principles or specific retention periods, indicating standard data collection and retention practices.
6

Zero Waste & Sustainable Products

-10

The company uses 65% recycled steel in its North America water heaters and boilers.

1
It has implemented multiple waste reduction initiatives, including a landfill diversion program at its Johnson City plant that achieved a 90% waste reduction
2
and saved $78,000 in 2021.
3
It also reuses glass enamel from its McBee, South Carolina, tank manufacturing process, avoiding 640,000 pounds of glass landfill waste annually.
4
Furthermore, its Protective Coatings Division facility has undertaken various source reduction activities such as raw material substitution and changes in operating practices.
5
The company has a target to divert 525,000 pounds of waste from landfills by 2027, based on a 2024 baseline from its seven largest North American manufacturing plants.
6

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.