Trane Technologies plc (TT) 2017年CSR報告「NYSE」.pdf

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1、Transforming Everyday Life2017 SUSTAINABILITY SUPPLEMENT 2 2017 SUSTAINABILITY SUPPLEMENT ContentsENVIRONMENTAL SUSTAINABILITY:OUR PLANET 26Climate Change 26Greenhouse Gas Emissions and Refrigerants 26Energy 30Materials 32Energy Efficiency of Our Products 33Product Life Cycle Approach(LCA)and End-of

2、-Use Considerations 35Water 35Waste 36SOCIAL SUSTAINABILITY:OUR PEOPLE 37Diversity and Inclusion in the Workplace 37Anti-Harassment 37Occupational Health and Safety 38Supplier Diversity 39Employee and Community Engagement 39BUSINESS SUSTAINABILITY:OUR PRODUCTS 41Supply Chain Transparency and Perform

3、ance 41Technology and Innovation 42Product Reliability 43Social Impact of Our Products 44GRI CONTEXT INDEX 45LETTERS FROM OUR LEADERSHIP 3Letter From Our CEO 3Letter From Our CTO 6EXECUTIVE SUMMARY 9OUR COMPANY 11Ingersoll Rand 11Our Employees 11Governance,Ethics and Risk Management 12Customer Satis

4、faction 12Regulations and Policy 122017 Awards and Rankings 16Memberships and Partnerships 16Charters 17SUSTAINABILITY AT INGERSOLL RAND 19Sustainability Governance Structure 19About Our Reporting 19OUR DATA 202017 Sustainability Highlights 20Progress Toward 2020 Targets 21Sustainable Development Go

5、als 23 3 2017 SUSTAINABILITY SUPPLEMENT Letter From Our CEO Financial PerformanceOur focus on financial,social and environmental outcomes continued to produce sustainable results in 2017 as we extended our record of meeting our commitments in metrics that matter to our shareholders.As shown in the c

6、harts on page 5,our adjusted continuing earnings per share were up 9%from the prior year,and we generated$1.3 billion of free cash flow118%of adjusted net earnings.This cash enabled us to retain a healthy balance sheet while returning significant cash to shareholders.At the same time,it allowed us t

7、o invest in product and service innovation as well as to pursue value-accretive technology and channel acquisitions aimed at further improving long-term shareholder returns.We remain committed to paying a competitive and growing dividend,totaling approximately$430 million in 2017.We deployed approxi

8、mately$1 billion to repurchase shares and raised the quarterly dividend by approximately 12.5%to$0.45 per share,concluding 2017 at$1.80 annualized per share.Over the past five years,Ingersoll Rand has delivered a 153%total return for shareholdersfar outpacing the S&P 500 Industrials Index.We faced c

9、hallenges in 2017,including persistent inflation,which we successfully offset through strong volume,productivity and price.Through operational excellence tools,we effectively managed these challenges and delivered against our commitments.We had strong topline results,and our industrial segment deliv

10、ered strong operating performance and bookings as these markets improved.DEAR SHAREHOLDER,I spend time each year visiting our facilities and hearing from team members and customers around the world.I come away from each conversation firmly believing that success starts with our people.With engaged p

11、eople,we do more for customers,create more value for shareholders and contribute to a more sustainable world.Our team is at the forefront of innovating where global trendssuch as climate change,urbanization and resource scarcityintersect with buildings,industrial processes and transportation markets

12、.By thinking bigger to help customers around the world solve challenges,we are doing the right thing for our communities,our environment and our business.We are uniquely positioned to grow and to positively transform everyday life.153%total return for shareholdersover the past 5 years 4 2017 SUSTAIN

13、ABILITY SUPPLEMENT Strategic InnovationWe launched 70 new major products and services in 2017,strengthening our digital capabilities and demonstrating our commitment to being environmentally responsible and productive at the same time.For example,we launched a best-in-class mobile app to allow remot

14、e connectivity to TracKing,Thermo Kings fleet management system.We applied a breakthrough web-based platform called Trane GO,which enables residential customers to make more educated and sustainable heating,ventilation and air conditioning(HVAC)purchasing decisions.We doubled the size of our EcoWise

15、 portfolioproducts with reduced environmental impact through next-generation,lowglobal warming potential refrigerants and high-efficiency operationsignificantly ahead of regulatory requirements.In addition,our Compression Technologies and Services business further grew its high-margin customer servi

16、ces worldwide with an array of new CARE service programs,including automated parts shipping and predictive diagnostics.We are watchful for areas where we can be a leader in solving environmental and industrial challenges through organic growth and thoughtful acquisitions.Focused on channel and techn

17、ology investments,we made several strategic acquisitions during the year,including the acquisition of CALMAC,a company specializing in thermal energy storage solutions,and GPSi,a provider of cloud-based technology solutions for fleet managers in various transportation markets,including education,gol

18、f and resorts.Our innovation pipeline is thriving,and we expect the climate and industrial segments to continue building on this growth momentum in 2018.Winning CultureOur commitment to the Ingersoll Rand valuesintegrity,respect,teamwork,innovation and couragecontinues to serve as the catalyst for o

19、ur profitable growth.What matters to our success is not just what we do,but how we do it.We respect and value diverse cultures,backgrounds and perspectives,and we understand that successful strategic execution requires high employee engagement.Our annual employee engagement scores continued to impro

20、ve,reaching top-tier levels in our industry,and we are creating an environment in which our people can learn and thrive in an inclusive and progressive organization.To reinforce our winning culture and commitment to workplace diversity,in 2017,we were the first in our industry to enter the Paradigm

21、for Parity Coalition,a pledge to bring gender parity to our corporate leadership structure by 2030.With my signature,we also joined 150 of Americas leading CEOs in a pledge to cultivate diversity and inclusion in the workplace through the CEO Action for Diversity&Inclusion.Lasting ValueIngersoll Ran

22、d is well positioned to deliver strong shareholder returns over the next several years.Our strategy is tied to attractive,healthy end markets and linked to long-term global trends.We continue to invest to strengthen our leadership position in markets around the world,and we are committed to dynamic

23、and balanced deployment of capital.I am more optimistic today about Ingersoll Rands prospects than at any time since I joined the company.We are fully committed to creating lasting value for our stakeholders and society as we innovate to transform everyday life.Sincerely,Michael W.Lamach CHAIRMAN AN

24、D CEO68%TOTAL NET REVENUEby SegmentCLIMATEINDUSTRIALTOTAL NET REVENUE(Billions)201520162017201520162017$13.5$13.3$14.2ADJUSTED EARNINGSPER SHARE20152016201720152016*2017$4.13$3.73$4.51ADJUSTED OPERATING MARGINS12.1%12.2%11.4%ADJUSTED OPERATING INCOME+DEPRECIATION&AMORTIZATION14.7%14.7%14.1%21%79%201

25、7 REVENUE by GeographyEUROPE,MIDDLE EASTNORTH AMERICA LATIN AMERICAASIA PACIFIC15%13%4%2017 FINANCIAL PERFORMANCE*THESE ARE NON-GAAP FINANCIAL MEASURES.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CAN BE FOUND PRECEDING THE 2018 NOTICE AND PROXY STATEMENT*2016 REROSPECTIVELY RESTATED FOR ADOPTION O

26、F ASU 2017-07*2016 REROSPECTIVELY RESTATED FOR ADOPTION OF ASU 2017-07 6 2017 SUSTAINABILITY SUPPLEMENT Letter from Our CTO Innovating for Our CustomersThrough product and service innovation,we help our customers achieve their business objectives and address sustainability challenges.In addition to

27、climate change,urbanization and resource scarcity,these challenges include shifting demographics and demands for enhanced energy productivity in an increasingly digitally connected world.Our innovative solutions for buildings,transportation markets and industrial processes are leading the way toward

28、 a less carbon-intensive planet and a more sustainable future.Over the past four years,we have refreshed 85%of our product portfolio,achieving superior breadth and depth in nearly every major category in which we compete.Each of these new products features sustainable design,aligns with total life c

29、ycle management principles and uses natural resources more efficiently than before.Innovating for Value CreationWith a proven track record in operational excellence,we are continuously finding new and better ways of improving productivity and making our operations more environmentally sustainable.We

30、 use the same energy efficiency solutions we provide to customers to reduce the environmental footprint of our own operations.Whether were investing in renewable energy,upgrading heating,ventilation and air conditioning systems,modernizing industrial processes or simply replacing incandescent lighti

31、ng with LEDs,we strive to use only the resources we absolutely need.At Ingersoll Rand,we integrate sustainability into every part of our business.It starts with our people,and together,we hold ourselves accountable for keeping sustainability front and center in all that we dofor our customers,in our

32、 own operations,and for the communities around the world where we live and work.When we evaluate a proposed course of action,we first assess whether it aligns with our sustainability vision.Is it an energy-and resource-efficient solution that creates value for our customers?Will it reduce our enviro

33、nmental impact as an organization?Will it contribute to a better world?Our sustainability performance is the cumulative result of many different decisions made through this lens.7 2017 SUSTAINABILITY SUPPLEMENT As part of our Climate Commitment announced in 2014,we are working to achieve a 35%reduct

34、ion in greenhouse gas emissions from our own operations by 2020.To deliver on this goal,we targeted a 10%improvement in energy efficiency from our 2013 baseline.Earlier this year,we announced that we have met this milestonetwo years ahead of scheduleand,coupled with our commitment to incorporating l

35、ow-global warming potential refrigerants,we are on pace to meet our environmental goals.Innovating for a More Sustainable WorldWe realize the power of innovation when our employees feel included and engaged.Thats why we place as much focus on building a diverse and inclusive culture as we do on comp

36、any growth and operational excellence.Through the ingenuity of our engineers,the commitment of our volunteer green teams or the many thousands of hours we volunteer in our communities,its clear that our people believe in what we do.We encourage them to discover the intersection of their personal pas

37、sions and community needsand then supplement their volunteer activity with corporate resources,philanthropic giving and time off from work.For example,our team in India has a passion for science education in rural communities.In 2017,we sponsored vocational training at two National Skill Development

38、 Corporation(NSDC)partner centers,facilitating employment for nearly 250 youths,30%of whom are girls.We also maintain an active partnership with Indias Agastya International Foundation to facilitate hands-on science education for underprivileged children.Delivering Premier PerformanceSustainability

39、is inextricably linked to being a premier-performing company.Thats why we will continue to innovate and invest in new products,services and solutions to help our customers achieve their sustainability goals.Thats why we will continue to invest in new ways to reduce our environmental footprint.Thats

40、why we will continue to invest in our people and our winning culture,and to nurture the best new ideas from a diverse,engaged organization.In all these ways and more,we will continue to invest in a more sustainable future.I look forward to keeping you informed about our progress in the years ahead.S

41、incerely,Paul A.Camuti SENIOR VICE PRESIDENT,INNOVATION CHIEF TECHNOLOGY OFFICERWe realize the power of innovation when our employees feel included and engaged.8 2017 SUSTAINABILITY SUPPLEMENT Ingersoll Rand is a world leader in creating comfortable,sustainable and efficient environments.Our people

42、and our family of brandsClub Car,Ingersoll Rand,Thermo King and Tranework together to enhance the quality and comfort of air in homes and buildings;transport and protect food and perishables;and increase industrial productivity and efficiency.Linking our strategy and business oppor-tunities to impor

43、tant global trends creates long-term value for our people,customers and the world.Whether the challenge is climate change,urbanization or natural resources constraints,our expertise enables us to reduce energy demand and improve efficiency.Executive Summary2017 was defined by real,measurable progres

44、s toward our sustainability commitments.From providing innovative products and services solutions for our customers to reducing our operational footprint,we continued to find ways to embed sustainability throughout our business and culture.For the seventh straight year,Ingersoll Rand was named to th

45、e Dow Jones Sustainability World and North America Indices.2017 was also the fourth consecutive year that we were recognized on Corporate Responsibility Magazines list of the 100 Best Corporate Citizens and the third consecutive year that we were included on FTSE4Goods prestigious index series for m

46、eeting stringent environmental,social and governance criteria.This ongoing recognition of our actions showcases Ingersoll Rands position as an economic,social and environmental leader.The progress and data reported in our 2017 Sustainability Supplement are evidence that by thinking bigger to help cu

47、stomers around the world solve challenges,we are doing the right thing for our communities,our environment and our business.Taking Action to Address Climate ChangeAs a global provider of products that heat,cool and automate homes and buildings,Ingersoll Rand has an important role in reducing global

48、emissions.That is why,in 2017,we joined the We Are Still In coalition and committed to stand by the Paris Agreement.Working together with other stakeholders,we are continuing on the path to widespread renewable energy adoption,breakthrough technology development,innovative corporate sustainability s

49、trategies and strong employee engagement.Our global Climate Commitment outlines goals to significantly reduce greenhouse gas(GHG)emissions from our operations and product portfolio by 2020,and incorporate alternatives with lower-global warming potential(GWP)refrigerants across the companys product p

50、ortfolio by 2030.Executing on this pledge over the last four years,Ingersoll Rand avoided 11 million metric tons of CO2e globally from our products and reduced the GHG intensity of our operations by 37%compared to a 2013 baseline.CO2e EMISSIONS11 million metric tons of CO2e avoided globally from our

51、 products compared to A 2013 BASELINE GHG INTENSITY37%reduction of the GHG intensity of our operations compared to A 2013 BASELINEWE ARE STILL INIn 2017 we joined the We Are Still In coalition and committed to stand by the Paris Agreement 9 2017 SUSTAINABILITY SUPPLEMENT In early 2018two years ahead

52、 of schedulewe achieved our 2020 target of a 10%increase in energy efficiency.In reaching this significant milestone,we reduced energy use by approximately 102,000 million(MM)British Thermal Units(BTUs)and electricity consumption by approximately 22,000 megawatt hours(MWh),which is the equivalent of

53、 powering 1,700 homes for one year.We also announced major investments in renewable energy technologies.We commissioned on-site solar installations at three large manufacturing sites in the U.S.and China to address approximately 15%of the energy loads at these locations.This is equivalent to saving

54、400,000 gallons of gasoline and taking 800 cars off the road.Additionally,we signed a power purchase agreement that will replace 32%of our companys U.S.electricity use with green energy,and reduce U.S.Scope 2 GHG emissions from electricity by 32%.As part of our commitment to reducing GHG emissions f

55、rom Ingersoll Rand products,in 2017,we doubled the size of our EcoWise portfolio of products designed to lower environmental impact with next-generation,low-global warming potential refrigerants and high-efficiency operations.Additionally,we strengthened our digital capabilities and pursued opportun

56、ities at the nexus between energy efficiency and climate change.Trane,a brand of Ingersoll Rand,led the industry in Connected Building Solutions by partnering with building owners and operators to create exceptional energy-efficient buildings and maximum return on investment.“Ingersoll Rand has play

57、ed a leading role in several aspects of the energy transition already,especially over the past decade,”said Daniel Vermeer,Executive Director,Center for Energy,Development and the Global Environment at Duke Universitys Fuqua School of Business,and Ingersoll Rand Sustainability Advisory Council Membe

58、r.“Their innovation in creating high-efficiency products and services for the marketplace has been really critical.”The ever-increasing demand on our energy system is a huge challenge and a huge opportunity.As we continue to look around the corner,anticipate trends and discontinuities and embrace sy

59、stem thinking,Ingersoll Rand is uniquely positioned to grow and to positively transform everyday life.In 2017,we made several strategic acquisitions to enhance our leadership in solving environmental challenges.Sustainability was,and will continue to be,a key factor in how we make our business decis

60、ions.For example,our strategic acquisition of CALMAC expanded our thermal energy storage portfolio.When integrated with Tranes leading building control platform,CALMAC takes pressure off the energy grid,reduces strain on public utilities,reduces operating costs for building owners and allows for bet

61、ter use of renewable forms of energy.We also strengthened our telematics portfolio through the acquisition of GPSi,a provider of cloud-based technology solutions for fleet management in various transportation markets,including education,golf and resorts.We expect the climate and industrial segments

62、to continue building on this growth momentum in 2018.Working with SuppliersFrom our position as a global provider of energy-efficient technology solutions,Ingersoll Rand works systematically to ensure that our suppliers share our values and adhere to our standards of business ethics,health and safet

63、y,environmental and social responsibility as specified in our Business Partner Code of Conduct.ENERGY EFFICIENCY15.6%increase in energy efficiency from a 2013 baseline,two years ahead of our target goal FOR 2020 ENERGY USE102,000 MM BTUs reduction in energy use and 22,000 MWh reduction in electricit

64、y consumption from a 2013 baseline,which is the equivalent of powering 1,700 homes for one yearPOWER PURCHASE AGREEMENT 32%of our companys U.S.electricity use will be replaced with green energy 10 2017 SUSTAINABILITY SUPPLEMENT The Ingersoll Rand Preferred Supplier Program gives first choice for ear

65、ly engagement to suppliers that best align with our high expectations regarding customer and business standards for quality,service,value and risk.Preferred suppliers also have priority opportunity to extend their product and service offerings to all Ingersoll Rand locations.At the end of 2017,54.3%

66、of direct spend was with preferred suppliers,putting us on track to meet our target of 80%of early sourcing by 2020.Our supplier diversity program embraces suppliers who are minority-,women-,veteran-,disabled-,gay-,lesbian-and transgender-owned businesses.Using a seven-step strategic sourcing proces

67、s that includes a Supplier Diversity Matrix has enabled us to avoid using price as the primary driver for supplier selection.In 2017,we purchased$411 million in goods and services from diverse-owned businesses.Cultivating Workplace Diversity and Inclusion At Ingersoll Rand,we believe that a corporat

68、e culture of mutual respect,cross-functional collaboration,and inclusion drives growth and innovation.“The nature of industrial companies is changing,”said Katherine Sierra,Senior Fellow,The Brookings Institution,and Ingersoll Rand Sustainability Advisory Council Member.“Ingersoll Rand is moving awa

69、y from being a company that just makes a lot of products to a company that provides integrated services.”This transition requires a broader base of skills,fresh ideas,expertise and dialogue.Our company is continuously working to integrate diversity and inclusion into the core of our business.In 2017

70、,Ingersoll Rand increased our commitment to creating a progressive,diverse and inclusive workplace.We became the first in our industry to enter the Paradigm for Parity Coalition,a pledge to bring gender parity to our corporate leadership structure by 2030.We also joined 150 of Americas leading CEOs

71、in a pledge to cultivate diversity and inclusion in the workplace through the CEO Action for Diversity&Inclusion.In 2017and again in early 2018the Human Rights Campaign Foundation awarded us a perfect score of 100%in workplace equality on its Corporate Equality Index(CEI).This sustained leadership o

72、n the CEI recognizes our winning culture and commitment to empowering people.Creating Lasting Value Sustainability in all its formsbusiness,social and environmentalis central to our strategy.Our 2017 Sustainability Supplement provides milestone updates on our continuing progress toward building a mo

73、re sustainable and thriving enterprise.We are well on our way toward achieving our 2020 goals,and every day we continue to think bigger and bolder to do more for our customers,create long-term value for our shareholders and contribute to a more sustainable world.PREFERRED SUPPLIERS54.3%of direct spe

74、nd was with preferred suppliers,putting us on track to meet our target of 80%of early sourcing BY 2020 SUPPLIER DIVERSITY MATRIX$411 million of purchased goods and services were from diverse-owned businesses 11 2017 SUSTAINABILITY SUPPLEMENT Ingersoll Rand Ingersoll Rand(NYSE:IR)is a diversified ind

75、ustrial manufacturer with market-leading brands serving customers in global commercial,indus-trial and residential markets.Diversity,engagement,and teamwork drive innovation and fuel our passion for exceeding customer expecta-tions.Together with principled leadership and ethical business prac-tices,

76、our high-engagement culture delivers enduring results that lead to a sustainable world.Read more about our company,brands and governance in our 2017 Annual Report and on our website.Our CompanyOur EmployeesIngersoll Rand employs more than 46,000 people worldwide.This includes 43,265 employees and 3,

77、167 contractors.We respect and value their diverse cultures,backgrounds and perspectives,and we understand that the success of our strategies requires high employee engagement.We strive to create an environment where all employees win when the company winsthat is,where our people can learn and thriv

78、e in their careers and realize their aspirations in a dynamic and progressive organization.We offer employees a comprehensive health care benefits program,including a range of medical treatment options.Read more about our employees on our website.as of December 31,2017EMPLOYEES 46,000 Ingersoll Rand

79、 employeesREAD MOREAbout our company,brands and governance in our 2017 Annual Report and on our websiteWORLDWIDEINGERSOLL RAND POPULATIONREGIONSEMPLOYEE TYPEFEMALEMALETOTALAsia PacificHourly9.44%30090.56%2,8793,179Salaried32.64%1,39567.36%2,8794,274EMEAHourly3.60%10096.40%2,6772,777Salaried28.02%908

80、71.98%2,3333,241IndiaHourly100.00%256256Salaried9.21%13590.79%1,3311,466Latin AmericaHourly16.08%18283.92%9501,132Salaried30.50%39969.50%9091,308North AmericaHourly22.36%2,89677.64%10,05612,952Salaried27.88%3,53572.12%9,14512,680GRAND TOTAL22.77%9,85077.73%33,41543,265 12 2017 SUSTAINABILITY SUPPLEM

81、ENT Governance,Ethics and Risk ManagementThe core values of Ingersoll Randintegrity,respect,teamwork,innovation and courageare the foundation of our enduring success.Integrity leads this list of values because it is fundamental to our 147-year reputation as a company that can be trusted by employees

82、,customers,suppliers,shareholders and the communities in which we operate.Integrity is fundamental to our philosophy of corporate governance.We operate in accordance with the law and the highest standards of ethical conduct,and do what is right for our stakeholders,for the environment and for societ

83、y.Read more about our companys approach to governance,ethics and risk management in our 2017 Annual Report and on our website.Customer Satisfaction Ensuring customer satisfaction and loyalty continues to be a priority at Ingersoll Rand.We are committed to better understanding customer perspectives a

84、nd refining our offerings to meet and exceed their expectations for reliability,energy efficiency and sustainability.We measure customer satisfaction through the Customer Satisfaction Index(CSI),which includes a combination of Net Promoter,Net Delighted,Net Committed and Net Satisfied criteria.We le

85、verage customer relationship management(CRM)systems to drive common processes,connect deep insight on customers and competitors,and drive strategic growth programs that aim to deliver a superior customer experience and financial returns to Ingersoll Rand.We measure specific attributes of the custome

86、r experience to understand where we have high and low levels of satisfaction.These attributes include:1.Sales experience2.Product experience3.Delivery experience4.Service and support experience.We use a consistent global measurement process to capture the voice of the customer and CSI scores of each

87、 strategic business unit(SBU).The data is updated and reviewed with SBU leadership quarterly.All businesses communicate their customer satisfaction data to leadership and functional teams.These teams develop action plans to address items that require immediate corrective action or long-term resoluti

88、on.The data is also used to validate and inform the businesses strategic improvement plans.Additionally,we have 2020 targets related to customer satisfaction that include goals to increase the reliability,durability,health and safety of our products.We do not report our CSI scores publicly;we are ex

89、ceeding our planned targets.Regulations and Policy Energy efficiency remains integral to our global portfolio innovation efforts.To deliver growth with a focus on innovation,in 2013,we expanded our efforts to understand and capture the full spectrum of our product and service impacts by incorporatin

90、g life cycle assessments(LCAs),customer opportunity assessments,resource consumption and sustainability risk analysis(including emerging regulations)into the Ingersoll Rand Product Development Process(IRPDP).We are engaged with policymakers to bring solutions to topics that are material to our busin

91、ess,with the two areas where the company is most active being energy efficiency and refrigerant policy.Ingersoll Rand supports cost-effective policies that facilitate market transition to more energy-efficient technologies.We support strong energy efficiency requirements for new and existing constru

92、ction and are working with governments in the United States,Canada,Mexico,the European Union,China and India to facilitate adoption and enforcement of such programs.We actively 13 2017 SUSTAINABILITY SUPPLEMENT INGERSOLL RAND FEDERAL POLITICAL ACTION COMMITTEE TOTAL CONTRIBUTIONS(U.S.ONLY)2012201320

93、14201520162017$17,500$7,500$37,500$11,000$24,500$28,500participate in international forums,such as the United Nations Framework Convention on Climate Change and the Montreal Protocol,to help create an organized approach to global refrigerant transitions.We are also working proactively with governmen

94、t agencies and refrigerant suppliers to help identify alternatives and facilitate a practical transition that reduces greenhouse gas(GHG)emissions as early as possible.Public PolicyIngersoll Rand engages in public policy both directly and through associations and coalitions to understand and help sh

95、ape future regulations.When appropriate,technical policy experts engage directly with regulators and other key stakeholders both in advance of and during the rulemaking process.We periodically review our approach to issues with the impacted business or function and leadership;during this review,we d

96、iscuss strategies and make adjustments.Success is achieved when organizational alignment is maintained during the issue management process,when individuals and leaders feel prepared for interaction with policymakers,and when the businesses and functions are prepared to comply with regulations once f

97、inal.Grievances are dealt with throughout the periodic review process.We engage with government agencies and refrigerant suppliers in shaping a global transition to next-generation refrigerants with low-global warming potential.In accordance with our global Climate Commitment,we are working proactiv

98、ely with suppliers to identify and develop a viable,long-term,low-global warming potential alternative to R-410A,which is the most prevalent hydrofluorocarbon(HFC)used in heating,ventilation and air conditioning(HVAC)today.This alternative is crucial to the success of the Kigali Agreement to the Mon

99、treal Protocol,which seeks to phase down HFCs by 85%by 2046.Our key objective is to offer Ingersoll Rand customers the widest possible range of options.We continue to evaluate the available alternatives for global markets to ensure we have a strong service organization and supply chain in place to s

100、upport their transition to low-global warming potential alternatives.Political Activity and Contributions The laws of many countries prohibit or strictly limit contributions by corporations to political parties and candidates.Although our employees may engage in personal political activity,they are

101、prohibited from doing so on behalf of Ingersoll Rand or in their capacity as a company employee.In the United States,Ingersoll Rand manages a nonpartisan political action committee(PAC),which is compliant with all applicable laws and is regulated by the Federal Election Commission(FEC).Under the FEC

102、,all funds received by the PAC,and resulting contributions to federal candidates,are publicly disclosed.For a list of federal contributions,see here.Although Ingersoll Rand employees may make personal contributions to political parties and candidates,they are not permitted to receive any type of rei

103、mbursement from the company.14 2017 SUSTAINABILITY SUPPLEMENT Compliance Ingersoll Rand is committed to operating in a way that safeguards our people and protects the environment.To achieve a zero injury and incident culture and to meet our environmental goals,we are committed to integrating sound e

104、nvironmental,health and safety(EHS)practices into our everyday activities with our stakeholders.From a regulatory authority compliance perspective,Ingersoll Rand:Complies with or exceeds requirements of global,national,state and local statutes,regulations and standards that protect the environment,h

105、uman health and safety.In all cases,whether or not applicable laws and regulations exist,we apply sound EHS management practices,which continue to drive our strong compliance record.Conducts regular internal and third-party audits to verify compliance with EHS regulatory requirements and company sta

106、ndards.Monitors emerging issues and keeps abreast of regulatory changes and technological innovations.Ingersoll Rand provides refrigeration,cooling and air conditioning solutions for our customers globally.Therefore,we take responsibility for managing materials in a manner that protects our environm

107、ent,employees,customers and communities.Some refrigerants used in Ingersoll Rand products are considered ozone-depleting substances and may have high global warming potential.We use responsible and sustainable operating and handling practices,which minimize refrigerant leaks and avoid environmental

108、and safety impacts.EHS ManagementOur EHS policy is publicly available and has been signed by Michael W.Lamach,chairman and CEO.Our EHS policy is more than just a document containing guiding principles and a summary of our policies and obligations.It is a compilation of everything we stand for and th

109、e trust we have built through decades of proven results.It is a promise to our customers,business partners,shareholders,communities and each other that we will continue to be good corporate citizens and remain committed to operating safely and protecting the environment.Keith Sultana,senior vice pre

110、sident of Global Operations and Integrated Supply Chain,serves as the executive sponsor of EHS programs across all Ingersoll Rand operations.Our EHS Council,consisting of EHS leaders from the corporate team and each business unit,meets regularly to develop or enhance our EHS management standards aim

111、ed at improving performance.Each of our manufacturing and service facilities continues to mature our EHS management systems.To push us further,we set annual goals in key impact areas and track our continuous improvement.Employee engagement and EHS committees are critical to effective EHS programs an

112、d improvements.We directly involve employees in strategic planning,assessing performance status and as a means to ensure continuous engagement on the part of leadership,subject matter experts and production associates.Employees are able to participate in identifying safety issues and implementing so

113、lutions to improve their workplace.These committees generally meet at least monthly.MANUFACTURING AND SERVICE FACILITIESEach of our manufacturing and service facilities continues to mature our EHS management systems.To push us further,we set annual goals in key impact areas and track our continuous

114、improvement.15 2017 SUSTAINABILITY SUPPLEMENT The EHS function uses a leading cloud-based software solution,Gensuite,which enables Ingersoll Rand to foster safe and sustainable workplaces worldwide.Gensuite is used to collect and track data and provide monthly reports on EHS progress to the executiv

115、e and facility-level leadership teams.The insights in these reports lead to program improvements and initiatives to drive continuous improvement in our EHS performance.We focus on performance monitoring and improvement in the following areas:Pollution prevention,environmental management and integrat

116、ed permitting Air emission management Water supply management,including a water quality management system Hazardous substance management General safety and health management Personal protective equipment Wastewater discharge management Waste management Dangerous substances Physical hazards Mechanica

117、l hazards Fire protection Our corporate EHS group regularly monitors facility-level performance in these areas against global EHS standards and applicable regulatory requirements.We use a combination of third-party consultants and internal EHS staff to conduct independent audits of each Ingersoll Ra

118、nd site on a prescribed frequency that depends on the sites complexity.Our proactive oversight process also requires key facilities to conduct annual EHS self-assessments,following a standard protocol to identify opportunities to improve EHS performance.Keeping our employees safe is a longstanding p

119、riority for Ingersoll Rand and a fundamental tenet of our culture.The majority of personnel located at our manufacturing sites,other large locations and those team members who complete service work at third-party locations receive EHS training annually.Our foundation for recording and reporting acci

120、dents is the U.S.Occupational Safety and Health Administration(OSHA)regulation 29 CFR 1904.This standard is applied to Ingersoll Rand sites globally.Additionally,sites will comply with local regulations when they are stricter than the U.S.OSHA standard.Our EHS data is assured annually by a third par

121、ty and the results of our 2017 assurance can be found here.Employees have a number of ways to be involved in health and safety programs.Global health issues are addressed through multiple mechanisms,including,among others,high-risk travel destinations,global crisis emergency planning,practices for e

122、mergency medical responders and company health programs.Additional awareness training is planned for service personnel who perform work in medical health care facilities.During acquisitions,Ingersoll Rand executes a formal due diligence process that includes EHS considerations.Formal change manageme

123、nt programs are implemented for new operations and/or 16 2017 SUSTAINABILITY SUPPLEMENT the introduction of new or redesigned products.EHS risk assessments are implemented at multiple levels,including pre-task,pre-project,within change management and when evaluating overall enterprise risks.Ingersol

124、l Rand does not subscribe to Article 15 of the Rio Principles and therefore currently does not address the precautionary approach and principle.Ingersoll Rand received no significant fines for noncompliance in 2017.Additional information can be found here.2017 Awards and Rankings 7th consecutive yea

125、r on the Dow Jones Sustainability Index 6th consecutive year on Fortune Worlds Most Admired Companies 5th consecutive year recognized by Times Ascent and the World HRD Congress as the No.1 Dream Company to Work For in the manufacturing sector and No.15 across all industries(India)4th consecutive yea

126、r on Corporate Equality Index,Best Places to Work for LGBTQ Equality 4th consecutive year on Corporate Responsibility(CR)Magazines 100 Best Corporate Citizens 3rd consecutive year on FTSE4Good Index Series A-on 2017 CDP Global Climate Change Report Green Builder Medias Eco-Leaders Award Memberships

127、and Partnerships Advanced Energy Economy(AEE)Air-Conditioning,Heating and Refrigeration Institute(AHRI)Alliance for Responsible Atmospheric Policy(ARAP)Alliance to Save Energy(ASE)AmCham Shanghai American Belt and Road Working Group under the U.S.Embassy American Chamber of Commerce in India(AmCham

128、India)American Council for an Energy-Efficient Economy(ACEEE)American Society of Heating,Refrigerating and Air-Conditioning Engineers(ASHRAE)Association of Energy Engineers(AEE)British Compressed Air Society(BCAS)Business Council for Sustainable Energy(BCSE)Business Roundtable China Building Energy

129、Conservation Association Heat Pump Committee China Federation of Logistics and Purchasing(CFLP)China General Machinery Industry Association Compressor Branch China Industrial Energy Conservation and Clean Production Association China Refrigeration and Air-Conditioning Industry Association(CRAA)Compr

130、essed Air and Gas Institute(CAGI)2017 AWARDSSeventh consecutive year on the Dow Jones Sustainability IndexSixth consecutive year on Fortune Worlds Most Admired Companies 17 2017 SUSTAINABILITY SUPPLEMENT Confederation of Indian Industries(CII)Energy Storage Association European Alliance to Save Ener

131、gy(EU-ASE)European Partnership for Energy and the Environment(EPEE)Hydraulic Institute International Light Transportation Vehicle Association(ILTVA)Manufacturers Alliance for Productivity and Innovation(MAPI)Material Handling Institute(MHI)National Association of Energy Service Companies(NAESCO)Nati

132、onal Association of Environmental Management(NAEM)National Association of Manufacturers(NAM)National Golf Course Owners Association(NGCOA)Residential Energy Services Network(RESNET)Shanghai Green Building Association Shanghai Energy Conservation Center Sustainable Energy for All(SEforALL)Shanghai Re

133、frigeration Institute The China Construction Machinery Association Sightseeing Vehicle Branch The Chinese Association of Refrigeration The Energy and Resources Institute(TERI)The Indoor Environment and Energy Efficiency Association(ACCA)U.S.Business Council for Sustainable Development(US BCSD)U.S.Gr

134、een Building Council(USGBC)Verband deutscher Maschinen-und Anlagenbau(VDMA)World Environment CenterChartersIngersoll Rand aligns with several charters that cover sustainability topics.We Mean Business Commit to reduce short-lived climate pollutant emissions We Mean Business is a coalition of compani

135、es that agree to include measurement of hydrofluorocarbons(HFCs)in their greenhouse gas(GHG)accounting,reduce emissions of short-lived climate pollutants(SLCPs),engage stakeholders in supply chains to reduce SLCPs,promote best practices and showcase successful efforts.Adopt a science-based emissions

136、 reduction target Companies agree to set a science-based target that is in line with the Science Based Target initiatives call-to-action criteria.Ingersoll Rands goal of reducing the GHG refrigerant footprint of our products by 50%by 2020 and reducing the GHG emissions from our operations by 35%by 2

137、020 was verified as a science-based goal in 2016 by the Science Based Target initiative.18 2017 SUSTAINABILITY SUPPLEMENT WEConnect International WEConnect International is a global network that connects women-owned businesses to qualified buyers around the world.Ingersoll Rand reported$205.1 millio

138、n global spend with women-owned businesses in 2017,the first reporting period for this commitment.Global Human Rights Policy Many of the standards set forth in our Human Rights Policy align with basic working conditions and human rights concepts advanced by international organizations such as the In

139、ternational Labor Organization and the United Nations(UN).U.S.Department of Energy(DOE)Better Plants Challenge PartnersHaving met our original goal set in 2009 as part of the DOE Save Energy Now Leaders program,Ingersoll Rand became a Better Plants Challenge Partner in 2016 with a commitment to redu

140、ce energy intensity by 35%by end of year 2019.Climate and Clean Air Coalition HFC InitiativeUnder the HFC Initiative,coalition partners support the development of HFC inventories and studies,information exchange on policy and technical issues,demonstration projects to validate and promote climate-fr

141、iendly alternatives,and technologies and various capacity-building activities to disseminate information on emerging technologies and practices to transition away from high-global warming potential HFCs and minimize HFC leakages.Clean Energy Ministerial(CEM)Advanced Cooling(AC)Challenge The AC Chall

142、enge was designed to urge governments,companies and other stakeholders to make,sell or install super-efficient air conditioner or cooling solutions that are smart,climate-friendly and affordable.It was created as a call to action,recognizing that access to cooling improves health,productivity,econom

143、ic growth and education.We Are Still In An organization of more than 2,800 groups including businesses,mayors,county executives,universities,faith groups and investors that have committed to standing by the Paris Climate Agreement and working to meet its goals.Paradigm for Parity A coalition of busi

144、ness leaders,board members and academics who are committed to addressing the gender gap in corporate leadership.CEO Action for Diversity&InclusionThe largest CEO-driven business commitment to advance diversity and inclusion in the workplace,representing more than 450 CEOs and presidents.WOMEN-OWNED

145、BUSINESSES$205.1 million Ingersoll Rand reported$205.1 million global spend with women-owned businesses IN 2017 19 2017 SUSTAINABILITY SUPPLEMENT Sustainability at Ingersoll Rand Sustainability Governance Structure We approach sustainability by integrating it into the anatomy of how we operate and h

146、elp our customers succeed.Read about our Sustainability Governance,Materiality Assessment,Stakeholder Engagement and Value Chain.About Our Reporting We align our reporting with the Global Reporting Initiative(GRI)Standards at a core level.Our Sustainability Supplement focuses on our top material iss

147、ues,as established in the upper right-hand quadrant of our Materiality Assessment.For each material topic,our report features a topic page that outlines relevant data,our management approach and initiatives that illustrate our work in 2017.A Note About Our Data Throughout the report,we define our or

148、ganizational boundary using the financial control approach.In 2014,we completed a corporate-wide review of Scope 1 and 2 greenhouse gas(GHG)emissions for all owned and leased assets using the Greenhouse Gas Protocol accounting standards.We feel this more accurately reflects the direct impact of our

149、operational footprint.We report data from newly opened and acquired facilities as soon as valid data is available.For recently closed or sold facilities,the data is included for the time period a site was part of the enterprise and to ensure year-over-year comparisons remain consistent.As such event

150、s occur,baselines are adjusted to account for these operating footprint changes.As our data collection system continues to mature and improve,the environmental data we report improves in accuracy and expands in breadth.Data is presented in absolute and normalized(intensity)terms.Normalizing environm

151、ental and energy data to total revenue provides valuable insights into the level of eco-efficiency across our diversified operations and allows benchmarking against the performance of other industrial companies.Our safety data is normalized by the number of hours worked.Our EHS data is assured annua

152、lly by a third party and the results of our 2017 assurance can be found here.20 2017 SUSTAINABILITY SUPPLEMENT Our ProductsOur Planet37.1%REDUCED GREENHOUSE GAS EMISSIONSsince 2013AVOIDED GHG EMISSIONS500k metric tons since 2013NON-HAZARDOUS WASTE TO LANDFILL REDUCTION32.8%INCREASED ENERGY EFFICIENC

153、Y since 201315.6%REDUCTION IN WATER USE45.4%INCREASE IN RECYCLING RATE5%Our PeoplePHILANTHROPIC GIVING$8.3 MillionINCREASE IN SPEND ON GOODS AND SERVICES WITH DIVERSE-OWNED BUSINESSES11%EMPLOYEE VOLUNTEERISM25.3k hoursEMPLOYEE ENGAGEMENT SCORES HAVE INCREASED2 ptsincrease YOYTOTAL WASTE DIVERTED FRO

154、M LANDFILLS1.5 million lbs444 metric tonsTOTAL CO2e REDUCTION4.3 billion BTUsTOTAL ENERGY SAVED1 million gallonsTOTAL WATER SAVED70NEW PRODUCTS LAUNCHEDOF PRODUCT-RELATED CO2e AVOIDED GLOBALLYNEW PRODUCTS ADDED TO THE INGERSOLL RAND ECOWISE PORTFOLIODOUBLEDOur 2017 DataEMPLOYEE GREEN TEAMS92FEMALES

155、IN MANAGEMENT POSITIONS 19.8%22.8%FEMALE SHARE OF TOTAL WORKFORCEsince 2013since 2013since 201311 million metric tons since 2013 21 2017 SUSTAINABILITY SUPPLEMENT GOALTARGETPROGRESS TOWARD TARGETGovernance:Enhance efforts to uphold our standards for ethical business conduct,transparency,compliance a

156、nd oversightAdhere to a Global Framework for Reporting our Sustainability Progress Respond to the annual CDP requestAlign with Global Human Rights Initiatives Maintain and update a Global Human Rights Policy Ensure Standard Guidelines for Responsible Business Behavior to Enhance the Reputation of ou

157、r Company and BrandsAchieve training and certification on annual Code of Conduct by employees and business partners Issue robust communications to all employees to sustain ethical business cultureMaintain a Governance Structure that Enables the Delivery of Our Long-Term Sustainability Plan Suppliers

158、:Collaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needsEnsure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectations100%of new suppliers have agreed to our Business Partner Code of Conduct(BPCoC)BPCoC progress:97%of contro

159、llable spend60%of our direct spend will be PreferredOn track-54.3%Leverage Ingersoll Rand Product Development Process(IRPDP)to Use Preferred Suppliers80%of Early Sourcing Work Plan(ESWP)completed in Phase 1 of IRPDPOn trackMaximize Marketplace Connectivity by Fostering Supplier Diversity Extend supp

160、lier diversity program to spend with diverse companies globally On track WEConnect membership in 2016;$205.1 million global spend with women-owned businesses in 2017Partner with Suppliers to Minimize the Environmental Impact of Our Supply ChainAll businesses will have a packaging improvement planPac

161、kaging improvement plans added at our Monterrey,Clarksville,Pueblo sites,with implementation of returnable packaging saving$704,000 annuallyEstablish baseline of suppliers who have participated in waste,energy and water reduction programs by 2016 and track improvement through 2020On trackEstablish b

162、aseline of suppliers in water-stressed areas who have a water conservation program by 2016 and track improvement through 2020On trackReduce emissions due to freight:goal is 5%reduction On trackMinimize Impacts of our Customers by Ensuring a Viable Supply ChainDesignate 90%of direct material spend as

163、sessed on a quarterly basis for riskOn track 87%Board of DirectorsEnterprise Leadership TeamInternal Sustainability CouncilExternal Sustainability Advisory CouncilCenter for Energy Efficiency and Sustainability 22 2017 SUSTAINABILITY SUPPLEMENT GOALTARGETPROGRESS TOWARD TARGETOperational Footprint:O

164、ptimize the use of natural resources in our operations to reduce environmental impactOptimize Energy UseIncrease energy efficiency in owned facilities by 10%15.6%increase in efficiencyIncrease fuel efficiency in owned fleet1,600 metric tons of CO2e savedEvaluate all long-term leases 100K sq.ft.again

165、st environmental and energy criteriaDeveloped guidebook with environmental criteria and certificationsReduce Our Scope 1 and 2 Greenhouse Gas(GHG)EmissionsReduce Scope 1 and 2 emissions by 35%27.7%decrease in absolute emissions37.1%decrease in emissions intensityImprove Waste Management in Our Opera

166、tionsReduce non-hazardous waste to landfill by 30%32%reductionReduce hazardous waste by 20%25%reductionImprove Water Management in Our OperationsReduce water used at sites located in water-stressed areas by 25%45.4%reductionCustomer Outcomes:Innovate to deliver optimal economic and performance value

167、 over product lifecycleDesign Products for World-Class Resource Efficiency During Use of ProductEstablish portfolios that meet world-class environmental criteria(energy consumption,emissions from the use of the product)EcoWise portfolioReduce Direct GHG EmissionsReduce the GHG refrigerant footprint

168、of our products by 50%55%to goalIncrease Reliability and DurabilityImprove quality and time to solutionOn trackReduce Environmental Impact at End of Products Useful LifePerform a life cycle assessment(LCA)on 100%of new productsIn process 14%of new products had an LCA100%of New Product Development(NP

169、D)projects in IRPDP have end-of-use manual createdIn process seven end-of-use manuals createdImprove Health and SafetyImprove service ability through IRPDPStandard work developedOur People:Build a Winning Culture that is values-based,inclusive and engages and develops people for premier performanceA

170、ttract and Retain Top-Quality,Diverse Talent and LeadershipCreate slates with diverse candidatesOn trackRetain 95%of key talentOn trackDevelop People and Processes to Build Strategic Capabilities95%of employees have development plans in placeOn trackImprove Leadership Effectiveness Index by 80%On tr

171、ackAchieve a Growth and Development Index score of 75%for strategic capability developmentOn trackFoster an Inclusive,Engaging Workplace that Connects Employees to Company PurposeAchieve employee engagement rate of 80%Goal met 81%75%of employees participate in community or sustainability initiatives

172、 On track 31%of employees globally participated in community or sustainability initiatives in 2017Provide a Safe and Secure Workplace that Supports Employee Well-Being and Productivity Provide accessibility to wellness programs to of employee baseGoal met 90.6%of employees have access to global heal

173、th and wellness programsAchieve world-class performance in lost time incident rate,60%reduction from 2013 baseOn track 23 2017 SUSTAINABILITY SUPPLEMENT dGOALTARGETPROGRESS TOWARD TARGETCorporate Citizenship:Address social and environmental imperatives that create shared value,result in sustained cu

174、stomer and employee loyalty,and improve the communities where we have business operations Expand Competency in Energy and Other Resource Efficiency Share energy conservation knowledge with 200 officials in developing regionsOn track 64%of goalLaunch signature program to increase female representatio

175、n in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwideGoal met achieving through participation in vocational technical programs and Tools for SchoolsExpand Competency in Science,Technology,Engineering and Math(S

176、TEM)Launch signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide Sponsor 20,000 females in STEM-related activities to increase career interestGoal met achieving

177、 through support of mobile science labs in IndiaAddress Nutrition and Food Waste ReductionProvide food and nutrition education to 200,000 childrenGoal met achieving through support of Feeding Children Everywhere,American Heart Association and Second HarvestSupport Housing and Shelter NeedsVolunteer

178、40,000 hours related to housing and shelter 45%of goal leveraging Green Teams and our global day of service in conjunction with Habitat for HumanityGOVERNANCEAdhere to a Global Framework for Reporting our Sustainability ProgressRESPONDto the annual CDP requestAlign with Global Human Rights Initiativ

179、esMAINTAIN AND UPDATEa Global Human Rights PolicyEnsure Standard Guidelines for Responsible Behavior to Enhance the Reputation of our Company and Brandstraining and certification of annual Code of Conduct and Ethics by employees and business partnersACHIEVErobust communications to all employees to s

180、ustain ethical business cultureISSUEMaintain a Governance Structure that Enables the Delivery of our Long Term Sustainability PlanBoard of DirectorsEnterprise Leadership TeamExternal Sustainability Advisory CouncilInternal Sustainability CouncilCEESOPERATIONAL FOOTPRINTOptimize the use of natural re

181、sources in Our operations to reduce environmental impactOptimize Energy Useby 10%INCREASEINCREASEagainst environmental and energy criteriaEVALUATEReduce Our Scope 1 and 2 Greenhouse Gas EmissionsREDUCEscope 1and 2 emissions by 35%Improve Waste Management in Our Operationshazardous waste by 20%REDUCE

182、non-hazardous waste to landfill by 30%REDUCEEnsure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectationsof new suppliers have agreed to our Business Partner Code of Conduct100%of our direct spend will be Preferred60%Leverage IRPDP to Use Preferred Suppliersof Early Sourc

183、ing Work Plan(ESWP)completed in Phase 1 of IRPDP80%Maximize Marketplace Connectivity by Fostering Supplier DiversityEXTENDsupplier diversity program to spend with diverse companies globallyMinimize Impacts of our Customers by Ensuring a Viable Supply ChainDESIGNATEof direct material spend assessed o

184、n a quarterly basis for riskPartner with Suppliers to Minimize the Environmental Impact of Our Supply Chainwill have a packaging improvement planALL BUSINESSESbaseline of suppliers who have participated in waste,energy,water reduction programs by 2016 and track improvement through 2020ESTABLISHbasel

185、ine of suppliers in water stress areas with a water conservation program by 2016 and track improvement through 2020ESTABLISHemissions due to freightREDUCE90%SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needsCUSTOMER OUTCOMESInnovate to d

186、eliver optimal economic and performance value over product lifecycleReduce Direct GHG EmissionsREDUCEthe GHG refrigerant footprint of our products by 50%Increase Reliability,DurabilityIMPROVEquality and time to solutionImprove Health and SafetyIMPROVEservice-ability through IRPDPDesign Products for

187、World Class Use of Productportfolios that meet world class environmental criteria(energy consumption,emissions from the use of the product)ESTABLISHReduce Environmental Impact at End of Products Useful LifePERFORMan LCA on 100%of new productsof NPD projects in IRPDP have end of life manual created10

188、0%EMBEDDING SUSTAINABILITYACROSS THE ENTERPRISE2020 GOALS AND STRATEGIC DEVELOPMENT GOALS 24 2017 SUSTAINABILITY SUPPLEMENT GOVERNANCEAdhere to a Global Framework for Reporting our Sustainability ProgressRESPONDto the annual CDP requestAlign with Global Human Rights InitiativesMAINTAIN AND UPDATEa G

189、lobal Human Rights PolicyEnsure Standard Guidelines for Responsible Behavior to Enhance the Reputation of our Company and Brandstraining and certification of annual Code of Conduct and Ethics by employees and business partnersACHIEVErobust communications to all employees to sustain ethical business

190、cultureISSUEOPERATIONAL FOOTPRINTOptimize the use of natural resources in Our operations to reduce environmental impactOptimize Energy Useby 10%INCREASEINCREASEagainst environmental and energy criteriaEVALUATEReduce Our Scope 1 and 2 Greenhouse Gas EmissionsREDUCEscope 1and 2 emissions by 35%Improve

191、 Waste Management in Our Operationshazardous waste by 20%REDUCEnon-hazardous waste to landfill by 30%REDUCEEnsure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectationsof new suppliers have agreed to our Business Partner Code of Conduct100%of our direct spend will be Pref

192、erred60%Leverage IRPDP to Use Preferred Suppliersof Early Sourcing Work Plan(ESWP)completed in Phase 1 of IRPDP80%Maximize Marketplace Connectivity by Fostering Supplier DiversityEXTENDsupplier diversity program to spend with diverse companies globallyMinimize Impacts of our Customers by Ensuring a

193、Viable Supply ChainDESIGNATEof direct material spend assessed on a quarterly basis for riskPartner with Suppliers to Minimize the Environmental Impact of Our Supply Chainwill have a packaging improvement planALL BUSINESSESbaseline of suppliers who have participated in waste,energy,water reduction pr

194、ograms by 2016 and track improvement through 2020ESTABLISHbaseline of suppliers in water stress areas with a water conservation program by 2016 and track improvement through 2020ESTABLISHemissions due to freightREDUCE90%SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative su

195、pply chain to meet customer needsCUSTOMER OUTCOMESInnovate to deliver optimal economic and performance value over product lifecycleReduce Direct GHG EmissionsREDUCEthe GHG refrigerant footprint of our products by 50%Increase Reliability,DurabilityIMPROVEquality and time to solutionImprove Health and

196、 SafetyIMPROVEservice-ability through IRPDPDesign Products for World Class Use of Productportfolios that meet world class environmental criteria(energy consumption,emissions from the use of the product)ESTABLISHReduce Environmental Impact at End of Products Useful LifePERFORMan LCA on 100%of new pro

197、ductsof NPD projects in IRPDP have end of life manual created100%CORPORATE CITIZENSHIPAddress social and environmental imperatives that:create shared value,result in sustained customer and employee loyalty,improve the communities where we have business operationsExpand Competency in Energy energy co

198、nservation knowledge with 200 SHAREsignature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwideLAUNCHExpand Competency in Science,Technology,Engineering and Mathsignat

199、ure program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwideLAUNCH20,000 females in STEM-related activities to increase career interestSPONSORAddress Nutrition and Food Wast

200、e Reductionfood and nutrition education to 200,000 childrenPROVIDESupport Housing and Shelter Needs40,000 hours related to housing and shelterVOLUNTEEROUR PEOPLEBuild a Winning Culture that is values-based,inclusive and engages and develops people for premier performanceDevelop People and Processes

201、to Build Strategic Capabilitiesa growth and development index score of 75%for strategic capability developmentACHIEVEIMPROVEof employees have development plans in place95%Provide a Safe and Secure Workplace that Supports Employee Well-Being and Productivityaccessibility to wellness programs to 75%of

202、 employee basePROVIDEworld class performance in lost time incident rate,60%reduction from 2013 baseACHIEVEAttract and Retain Top-Quality Diverse Talent and Leadershipnumber of women in professional and leadership rolesINCREASEslates with diverse candidatesCREATE95%of key talentRETAINFoster an Inclus

203、ive,Engaging Workplace that Connects Employees to Company PurposeProgressive,Diverse and Inclusive Index score of 80%ACHIEVEemployee engagement rate of 80%ACHIEVEof employees participate in community or sustainability initiatives75%Improve Water Management in our Operationswater used at sites locate

204、d in water stressed areas by 25%REDUCE2020 GOALS AND STRATEGIC DEVELOPMENT GOALS 25 2017 SUSTAINABILITY SUPPLEMENT OPERATIONAL FOOTPRINTOptimize the use of natural resources in Our operations to reduce environmental impactOptimize Energy Useby 10%INCREASEINCREASEagainst environmental and energy crit

205、eriaEVALUATEReduce Our Scope 1 and 2 Greenhouse Gas EmissionsREDUCEscope 1and 2 emissions by 35%Improve Waste Management in Our Operationshazardous waste by 20%REDUCEnon-hazardous waste to landfill by 30%REDUCEEnsure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectationso

206、f new suppliers have agreed to our Business Partner Code of Conduct100%of our direct spend will be Preferred60%Leverage IRPDP to Use Preferred Suppliersof Early Sourcing Work Plan(ESWP)completed in Phase 1 of IRPDP80%Maximize Marketplace Connectivity by Fostering Supplier DiversityEXTENDsupplier div

207、ersity program to spend with diverse companies globallyMinimize Impacts of our Customers by Ensuring a Viable Supply ChainDESIGNATEof direct material spend assessed on a quarterly basis for riskPartner with Suppliers to Minimize the Environmental Impact of Our Supply Chainwill have a packaging impro

208、vement planALL BUSINESSESbaseline of suppliers who have participated in waste,energy,water reduction programs by 2016 and track improvement through 2020ESTABLISHbaseline of suppliers in water stress areas with a water conservation program by 2016 and track improvement through 2020ESTABLISHemissions

209、due to freightREDUCE90%SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needsCUSTOMER OUTCOMESInnovate to deliver optimal economic and performance value over product lifecycleReduce Direct GHG EmissionsREDUCEthe GHG refrigerant footprint of

210、our products by 50%Increase Reliability,DurabilityIMPROVEquality and time to solutionImprove Health and SafetyIMPROVEservice-ability through IRPDPDesign Products for World Class Use of Productportfolios that meet world class environmental criteria(energy consumption,emissions from the use of the pro

211、duct)ESTABLISHReduce Environmental Impact at End of Products Useful LifePERFORMan LCA on 100%of new productsof NPD projects in IRPDP have end of life manual created100%CORPORATE CITIZENSHIPAddress social and environmental imperatives that:create shared value,result in sustained customer and employee

212、 loyalty,improve the communities where we have business operationsExpand Competency in Energy energy conservation knowledge with 200 SHAREsignature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and

213、technology institutes worldwideLAUNCHExpand Competency in Science,Technology,Engineering and Mathsignature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwideLAUNCH20,0

214、00 females in STEM-related activities to increase career interestSPONSORAddress Nutrition and Food Waste Reductionfood and nutrition education to 200,000 childrenPROVIDESupport Housing and Shelter Needs40,000 hours related to housing and shelterVOLUNTEEROUR PEOPLEBuild a Winning Culture that is valu

215、es-based,inclusive and engages and develops people for premier performanceDevelop People and Processes to Build Strategic Capabilitiesa growth and development index score of 75%for strategic capability developmentACHIEVEIMPROVEof employees have development plans in place95%Provide a Safe and Secure

216、Workplace that Supports Employee Well-Being and Productivityaccessibility to wellness programs to 75%of employee basePROVIDEworld class performance in lost time incident rate,60%reduction from 2013 baseACHIEVEAttract and Retain Top-Quality Diverse Talent and Leadershipnumber of women in professional

217、 and leadership rolesINCREASEslates with diverse candidatesCREATE95%of key talentRETAINFoster an Inclusive,Engaging Workplace that Connects Employees to Company PurposeProgressive,Diverse and Inclusive Index score of 80%ACHIEVEemployee engagement rate of 80%ACHIEVEof employees participate in communi

218、ty or sustainability initiatives75%2020 GOALS AND STRATEGIC DEVELOPMENT GOALSRecognizing the global impact of the Sustainable Development Goals(SDGs)a universal call to action to end poverty,protect the planet,and ensure that all people enjoy peace and prosperityand the personal commitment of our em

219、ployees,we moved quickly to align our already established 2020 Sustainability Goals to the SDGs to illustrate how our efforts fit within a larger context for social change.Today we align with 11 out of the 17 SDGs,including zero hunger,gender equality,clean water,affordable and clean energy,sustaina

220、ble cities and communities,and climate action.26 2017 SUSTAINABILITY SUPPLEMENT Our commitment to sustainability extends to the environmental impacts of our people,operations and products and services.From the efficiency of our buildings to our progress in managing energy,water and waste,we continue

221、 to find ways to reduce the companys impact on the environment and embed sustainability throughout our businesses.Environmental Sustainability:Our Planet Climate Change Global action to address climate change remains a critical priority for companies across the world.As a global provider of products

222、 that heat,cool and automate homes and buildings,our industry has an important role to play in helping to mitigate global climate change.According to the Environmental Protection Agency(U.S.EPA),more than one quarter of global greenhouse gas(GHG)emissions come from electricity and heat production.Th

223、at is why,in 2014,we issued our global Climate Commitment.At Ingersoll Rand,we are well on our way to achieving our Climate Commitment to increase energy efficiency and reduce the GHG emissions related to our operations and products.We have already enabled the avoidance of 11 million metric tons of

224、CO2 equivalent(CO2e)emissions globally from our products compared to a 2013 baseline.Read more about our efforts to reduce GHG emissions and refrigerants related to our business operations and products under Greenhouse Gas Emissions and Refrigerants and Product Environmental Impact.Greenhouse Gas Em

225、issions and Refrigerants Our company is committed to managing our GHG emissions.Over the past four years,we have reduced the GHG emissions associated with our operations by more than 200,000 metric tons of CO2e,or 37%,while total energy efficiency has increased 15%.In total,we have avoided 500,000 m

226、etric tons of CO2e in operational GHG emissions since 2013.GHG EMISSIONS37%reduction in the GHG emissions associated with our operations EMISISONS11 million metric tons avoided of CO2e emissions globally from our products OUR CLIMATE COMMITMENT Our climate commitment increases energy efficiency and

227、reduces the greenhouse gas(GHG)emissions related to our operations and products including:1.50%reduction in the GHG refrigerant footprint of our products for our customers by 2020 and lower-global warming potential alternatives across our portfolio by 2030 2.$500 million investment in product-relate

228、d research and development over the next five years to fund the long-term reduction of GHG emissions 3.35%reduction in the GHG footprint of the companys office buildings,manufacturing facilities and fleet by 2020 OVER THE PAST FOUR YEARS COMAPRED TO A 2013 BASELINE 27 2017 SUSTAINABILITY SUPPLEMENT

229、REGIONAL GHG BREAKDOWN20172016201520142013Scope 1(metric tons CO2e)North America Region(NAR)293,291310,147374,288351,198406,374Latin America(LAT)1,9942,2591,8601,7772,237Europe,the Middle East and Africa(EMEA)47,15949,81245,68640,09044,035Asia Pacific(AP)22,21628,64142,13872,85359,805Scope 2(metric

230、tons CO2e)NAR151,844173,459197,055202,602211,362LAT248309178204246EMEA9,52610,12813,34611,14112,514AP32,72931,71535,32637,34036,103GHG EMISSIONS(metric tons CO2e)20172016201520142013Direct CO2e(GHG Scope 1)364,658390,856463,975465,919512,450Breakdown of Scope 1 EmissionsEmissions from fuel126,196127

231、,577130,062127,369126,740Emissions from refrigerants238,462263,279333,913338,550385,710Indirect CO2e(GHG Scope 2)(Emissions from electricity)194,348215,614245,907251,287260,222Total(Scope 1 and 2 Emissions)559,006606,470709,882717,207772,673Normalized GHG Emissions (metric tons CO2e/million USD)39.3

232、744.8953.3755.6362.56Reduction of absolute GHG emissions(2013 baseline)27.65%213,667 metric tons CO2eReduction of GHG emissions intensity(2013 baseline)37.1%In addition to the third-party verification of the 2017 sustainability data,Ingersoll Rand completed a review of the FY2014 through FY2016 data

233、.Minor adjustment opportunities were identified and the adjustments have been incorporated,resulting in slight differences in the Direct GHG Scope 1 emissions compared to the previously reported values.NOX AND SOX EMISSIONS(METRIC TONS)2017201620152014NOx112.23113.32114.01111.19SOx7.116.726895.93 28

234、 2017 SUSTAINABILITY SUPPLEMENT Outlined in our Climate Commitment,we have a goal to reduce Scope 1 and 2 emissions(on a per-unit revenue basis)by 35%by 2020 compared to 2013 levels.This goal was approved by the Science Based Targets initiative as a science-based target and will result in 500,000 me

235、tric tons of avoided CO2e.Approximately 35%of the Scope 1 and 2 GHG emissions from our operations are from the use of electricity.Read about our efforts to reduce our energy use through energy efficiency and renewable energy in the Energy section.Refrigerants or hydrofluorocarbons(HFCs)are essential

236、 to many of our products,and they account for 43%of our Scope 1 and 2 emissions.HFCs trap heat in the atmosphere hundreds to thousands of times more intensively than carbon dioxide.Regulatory efforts in the U.S.and globally are aimed at phasing down the use of HFCs that have a high-global warming po

237、tential.Ingersoll Rand has made investments that enable the company to phase out todays high-global warming potential HFCs ahead of regulatory requirements.We work proactively with government agencies and refrigerant suppliers to help identify alternatives and facilitate a practical transition that

238、reduces GHG emissions as early as possible.We also participate in international forums,such as the United Nations Framework Convention on Climate Change and the Montreal Protocol,to help create an organized approach to global refrigerant transitions.REFRIGERANTS 43%of our Scope 1 and 2 emissions are

239、 from refrigerants,which are essential to many of OUR PRODUCTS ALTERNATIVES We work proactively with government agencies and refrigerant suppliers to help identify alternatives and facilitate a practical transition that reduces greenhouse gas(GHG)emissions as early as possible GHG EMISSIONS BREAKDOW

240、N(SCOPES 1&2)01000002000003000004000005000006000007000008000002016201720152014METRIC TONS OF CO2E2013VOLATILE ORGANIC COMPOUND(VOC)AIR EMISSIONS 20172016201520142013Direct VOC emissions in metric tons 269277271257289REFRIGERANTS DATA20172016201520142013Refrigerant emissions (Refrigerant losses in po

241、unds of refrigerant)337,012354,896422,553408,293474,054Normalized pounds to million USD23.7426.2731.7731.6738.38 29 2017 SUSTAINABILITY SUPPLEMENT Product EmissionsWe set the following goals to address product-related emissions:Reduce the GHG refrigerant footprint of Ingersoll Rand products by 50%by

242、 2020;and Incorporate refrigerant alternatives with lower-global warming potential across the companys product portfolio by 2030.We are on track to achieve these goals and have avoided approximately 11 million metric tons of CO2e globally,equal to the GHG emissions from the energy used in 1.6 millio

243、n homes for one year.By 2030,we aim to reduce our products carbon footprint by 50 million metric tons,which is equal to the GHG emissions from approximately 5.6 billion gallons of gasoline consumed.Our recent work on low-global warming potential refrigerant technology development demonstrates how In

244、gersoll Rand translates our public stance into practical innovation.For example,instead of waiting for the worlds regulatory authorities to mandate the use of next-generation refrigerants,we are working with our suppliers to develop global solutions that are energy-efficient and leverage current des

245、igns to help facilitate a smooth transition.We are also committed to investing$500 million in product-related research and development from 2015 to 2020 to fund the long-term reduction of GHG emissions.Our Refrigerant Management Technical Team works across the organization to establish best operatin

246、g practices and equipment specifications to reduce the potential for refrigerant leaks during refrigerant storage,use and recovery.Ingersoll Rand uses an optical gas imaging camera for the detection of refrigerant leaks at our manufacturing sites.This technology allows proactive identification and c

247、orrection of leaks,thereby reducing the cost of goods sold and avoiding losses of global warming-related materials.Ingersoll Rand has further implemented a monthly reconciliation process to assess refrigerant losses at the manufacturing sites.Fuel-Related EmissionsIn 2017,we increased the efficiency

248、 of our fleet by 5%and our absolute fleet emissions went down by approximately 1%.We undertook several initiatives that will save$700,000 and 1,600 metric tons CO2e over the vehicle life for our fleet.CO2e11 million metric tons of CO2e avoided globally,equal to the GHG emissions from the energy used

249、 in 1.6 million homes for ONE YEARPRODUCT RELATED RESEARCH$500 million invested in product-related research and development from 2015 TO 2020ECOWISE In 2017 we doubled the size of our EcoWise portfolioECOWISE PORTFOLIO In support of our Climate Commitment,in 2015,we launched the Ingersoll Rand EcoWi

250、se portfolio of products,specifically branded for next-generation,low-global warming potential refrigerants without sacrificing energy efficiency and safety.In 2017,we doubled the size of our EcoWise portfolio.MANAGEMENT APPROACHOur Climate Commitment outlines goals that drive GHG emissions reductio

251、ns in our operations and products.Please see our Progress Toward 2020 Targets section.The Commitment is signed by Ingersoll Rand Chairman and CEO Michael W.Lamach.He announced the Commitment at the United Nations Climate Summit in 2014.A third party assures GHG emissions data from our operations eve

252、ry year.In early 2017,we performed an internal audit of the product GHG collection process to ensure the integrity of our data.30 2017 SUSTAINABILITY SUPPLEMENT We continued to minimize large displacement vehicles,only strategically deploying 8-cylinder engines where they are more effective.As part

253、of efforts underway to minimize idle vehicles,we turned in or sold 49 vehicles during our spring order cycle.We officially switched to the hybrid as our standard vehicle in 2016.The introduction of these hybrids,which have a higher upfront cost but significantly increase fuel economy,helped us achie

254、ve an improvement from 16.9 to 17.8 miles per gallon in 2017.EnergyManaging energy is important to our business productivity and the environment.Our plants require energy to manufacture productsapproximately 979,000 megawatt hours(MWh)globally in 2017.We have a goal to increase energy efficiency in

255、our facilities by 10%by 2020 from a 2013 baseline.Over the past four years,our total energy efficiency has increased by 15.6%.We have achieved certification standards at a number of different sites around the world:four ISO 50001 certified sites,four LEED-certified sites and one GreenGlobe-certified

256、 site.ABSOLUTE ENERGY USE 20172016201520142013UNITSDirect(Fuel Use)2,0582,0792,1122,0892,086billion kilojoules(kJ)Indirect(Electricity)1,4681,4971,5331,5721,548billion kJTotal 3,5263,5763,6453,6623,634billion kJNormalized Energy Use0.2480.2650.2740.2840.294billion kJ/million USDNatural Gas8378419079

257、62913billion kJGasoline905932888827860billion kJDiesel241235230224251billion kJPropane5960717662billion kJAviation Fuel16111600billion kJRenewable Energy00000billion kJTotal Direct Energy2,0582,0792,1122,0892,086billion kJFOUR YEARSOUR FLEET$700,000 We undertook several initiatives that will save$70

258、0,000 and 1,600 metric tons CO2e over the vehicle life ENERGY EFFICIENCY 15.6%increase in our total energy efficiency over the past 31 2017 SUSTAINABILITY SUPPLEMENT Energy Efficiency Energy efficiency has been the cornerstone of our efforts to reduce our emissions.We have a goal to increase energy

259、efficiency in facilities by 10%by 2020 from a 2013 baseline.Through initiatives such as optimization of our heating,ventilation and air conditioning(HVAC)systems,Green Team programs,efforts to eliminate leakage in our compressed air systems and relamping in many of our U.S.facilities,we are on track

260、 to meet our energy efficiency goal.Over the past four years,our total energy efficiency has increased by 15.6%.We will strive to exceed this through 2020.We are also a Department of Energy Better Plants Challenge Partner.ABSOLUTE ENERGY USERenewable EnergyReplacing electricity generated from fossil

261、 fuels with that produced from renewable resources is key to addressing climate change as well as creating long-term value for our employees and our customers.We aim to reduce our GHG emissions through impactful investment in renewable energy both on-and off-site.MANAGEMENT APPROACHOur energy reduct

262、ion goal guides our progress in managing our energy use.Please see our Progress Toward 2020 Targets section.In addition,weve implemented several tools that help us better measure and manage our energy use.These include the following:We implemented a company-wide standard work management system withi

263、n the Ingersoll Rand Business Operating System that drives effective and sustainable environmental,health and safety(EHS)practices and procedures.Our operating procedures require that an EHS committee must be formed at all manufacturing and service locations and must include a sufficient number of m

264、anagement and hourly employees.The following items must be reviewed during each EHS committee meeting:performance against enterprise,strategic business unit(SBU)and/or local targets,objectives and goals.We use the EHS software solution Gensuite to manage EHS performance data,sustainability metrics a

265、nd work tasks.Nearly 10,000 Ingersoll Rand team members are registered Gensuite users.Ingersoll Rand has realized systematic data quality improvements and increased the efficiency of delivery of our EHS compliance and risk management practices through the use of Gensuite.3400345035003550201320142015

266、20162017BILLION KJOULES360036503700 32 2017 SUSTAINABILITY SUPPLEMENT In early 2018,we announced major investments in renewable energy.At three large manufacturing sites in the U.S.and China,we initiated or commissioned on-site solar installations to address 15%of the energy loads at these locations

267、.This is equivalent to saving 560,000 gallons of gasoline and taking 1,000 cars off the road.In addition to on-site renewable energy sources,Ingersoll Rand has signed a power purchase agreement(PPA)for wind power.The wind farm will be located in Texas.The energy produced will replace approximately 3

268、2%of the companys U.S.electricity use with green energy and reduce U.S.scope 2 GHG emissions from electricity use by 32%.This is the equivalent of recycling 26,000 tons of waste instead of sending it to a landfill,and preserving 600 acres of U.S.forests.Going forward,the bulk of our renewable energy

269、 mix will likely come from power purchase agreements,either on-site or within a single region.We believe that large-scale investments in renewables,such as through PPAs,are vital to shifting to a clean-energy economy.Our intent is to be a significant investor in that effort.For some of our sites,dir

270、ect investment in renewable energy may make the most sense.In some areas of the world,we are experiencing uncertainty in electricity prices and availability.By investing in on-site renewable energy,we will ensure greater continuity of our operations.MaterialsSince we manufacture many of the componen

271、ts included in our products,we employ a wide variety of renewable and non-renewable materials,including steel,copper and aluminum.We buy 85%of the materials used in our U.S.manufacturing from U.S.suppliers.We work closely with our suppliers to ensure they match our commitment to corporate social res

272、ponsibility.We work with them to reduce packaging,shipping costs and related emissions.Read more about Supplier Transparency and Performance.For more information about our materials management strategy,please refer to our Form 10-K.MATERIALS DATASavings in emissions from returnable packaging project

273、s(annually)of more than 1,000 tons of CO2e;reduction in solid waste from returnable packaging projects(annually)of more than 1,000 tons.Approximately 14%of our total volume of products and materials(by revenue)was taken back in 2017 and reused or recycled by Ingersoll Rand.MANAGEMENT APPROACHProduct

274、 Take-Back and Recyclability The Ingersoll Rand Product Development Process(IRPDP)stipulates that we design with end-of-use considerations,including disassembly,repair and reusability of product components.IRPDP also encourages the use of recycled content in new product designs.For several of our pr

275、oducts,we have also developed specific end-of-use manuals.To date,we have created seven end-of-use manuals.Our goal is to create an end-of-use manual for 100%of New Product Development(NPD)projects by 2020.Please see our Progress Toward 2020 Targets section.As part of the IRPDP,our Product Footprint

276、 Study toola streamlined life cycle assessment(LCA)addresses material use and allows for a comparison between design scenarios.When we design a product,we account for all aspects of the product,including manufacturing,the use phase and end-of-use considerations.By incorporating the life cycle consid

277、erations during the design phase,we identify and implement other environmental impact reductions that include packaging,recycling,manufacturing improvements,etc.PURCHASE POWER AGREEMENT 32%The energy produced will replace approximately 32%of the companys U.S.electricity use with green energy and red

278、uce U.S.Scope 2 GHG emissions from electricity use MATERIALS 85%We buy 85%of the materials used in our U.S.manufacturing from BY 32%U.S.SUPPLIERS 33 2017 SUSTAINABILITY SUPPLEMENT PackagingAs part of our environmental policy,Ingersoll Rand is committed to eliminating packaging waste.This includes co

279、nsiderations such as transport,recycling of packaging material and waste disposal concerns.Our packaging engineers develop innovative solutions for packaging finished goods and parts efficiently.In addition,our global logistics team looks for ways to implement returnable packaging on inbound and fin

280、ished goods where feasible in our supply chain.Recognizing that one-way packaging supply chains result in an unacceptable amount of waste,Ingersoll Rand initiated a returnable packaging program.Supported by the global logistics teams returnable packaging engineers,the effort is currently underway at

281、 fourteen North American manufacturing sites.The program,aimed at reducing the more than 2,500 pounds of solid waste produced from packaging each year,has saved the company more than$8 million to date in productivity growth and cost avoidance.Currently,the Thermo King,Trane Commercial,Trane Resident

282、ial,Industrial,and Compression Technologies and Services(CTS)strategic business units are all part of this initiative.The team is even beginning to look at intercontinental opportunities for returnable packaging.In addition,we publish packaging guidelines for our business partners on our website.Acc

283、ording to the guidelines,packaging methods that include elements that need to be disposed of through a landfill are not acceptable for deliveries to Ingersoll Rand facilities or associated third-party warehouses.Preferred packaging systems are returnable,reusable or recyclable.Material Take-Back Pro

284、grams Remanufactured equipment from Ingersoll Rand makes it easy to meet our goals by providing higher-efficiency products,reducing our environmental footprint and promoting the strength and ingenuity of our people.Ingersoll Rands CTS business continues to expand remanufacturing capabilities in new

285、regions to increase remanufacturing reach.Multiple businesses within Ingersoll Rand have a take-back program.Thermo King independent dealers take back refrigeration units to be resold into secondary markets.Thermo King equipment is preferred in this regard and commands premium pricing in the seconda

286、ry market,as it is more durable,reliable and supported than other brands.The Ingersoll Rand Tools business generates revenue through refurbished batteries,air motors,and engine starters.We have increased our total revenues represented by products that are disassembled,remanufactured,reused or recycl

287、ed.Energy Efficiency of Our Products Nearly half of all global energy consumption takes place in commercial,industrial and residential buildings,with heating,ventilation and air conditioning(HVAC)and lighting systems representing the greatest opportunity for improvement.Industrial processes also con

288、sume significant amounts of energy around the world.We see energy-efficient products as a business opportunity,as more than 90%of our product portfolio directly addresses demands for greater energy efficiency with lower greenhouse gas(GHG)emissions in buildings,homes,industrial spaces and transport

289、markets around RETURNABLE PACKING PROGRAM$8 million saved to date in productivity growth and cost avoidance 34 2017 SUSTAINABILITY SUPPLEMENT the world.We are committed to addressing the environmental impact of our products to help our customers operate more sustainably.Ingersoll Rand is not just cr

290、eating and leveraging new technology solutions,but also repositioning and optimizing existing technologies such as thermal energy systems.Through our 2017 acquisition of CALMAC Corporation,we are well positioned to offer customers even greater choices for managing energy and operating costs.When int

291、egrated with Tranes leading building control platform,CALMAC will take pressure off the energy grid,reduce strain on public utilities,reduce operating costs for building owners and allow for better use of renewable forms of energy.The core of our growth strategy is to invest in opportunities related

292、 to energy efficiency and environmental sustainability in buildings,industrial processes and transportation around the world.We are considered industry leaders in developing and commercializing next-generation,energy-efficient technologies that incorporate refrigerants with lower-global warming pote

293、ntial.ENERGY EFFICIENCY More than 90%of our product portfolio directly addresses demands for greater energy efficiency with lower greenhouse gas(GHG)emissions in buildings,homes,industrial spaces and transport markets CONNECTED PRODUCTS 9,000 Buildings Our North American energy services and controls

294、 business surpassed 9,000 connected buildings PRODUCT ENERGY EFFICIENCY DATAProducts in our EcoWise portfolio must be at least 5%more efficient than the minimum standard where standards apply.Connected Products Connected buildings,industrial facilities,homes and vehicles are providing our customers

295、with more information,accessibility and productivity.We believe the North American market for connected services and controls represents an estimated$400 million growth opportunity over three years.Each of our businesses is executing a digital strategy.For example,our North American energy services

296、and controls business surpassed 9,000 connected buildings in 2017,proving that big data coupled with insights improves energy efficiency.In fact,according to a Berg Insight report,nearly 55%of all households in the U.S.are expected to be“smart homes”by 2021,and Ingersoll Rands Nexia continues to be

297、a defining force in this evolution.In 2017,Nexia was selected as the electronic brain powering the Z-Wave Alliance demonstration home,which features an ecosystem of products working together to create a smarter way of living.MANAGEMENT APPROACHPaul Camuti,Senior Vice President and Chief Technology O

298、fficer of Ingersoll Rand,oversees product stewardship.His oversight includes engineering,innovation,product development and growth strategy.Our EcoWise portfolio of products is designed to lower environmental impact with next-generation,low-global warming potential refrigerants and high-efficiency o

299、peration.In 2017,we doubled the size of our EcoWise portfolio.Ingersoll Rand also relies on the ENERGY STAR program to guide the energy-efficiency requirements of our products.We have a 2020 goal to generate 5%of revenue from products that meet world-class environmental criteria(water,electricity an

300、d fuel consumption from the use of the product).Please see our Progress Toward 2020 Targets section.Several tools help us track and manage the energy efficiency of our products.Recently,we created a product GHG calculator to track our product-related emissions,including emissions generated from elec

301、tricity use.AROUND THE WORLD IN 2017 35 2017 SUSTAINABILITY SUPPLEMENT Product Life Cycle Approach(LCA)and End-of-Use Considerations Many of our products are built to operate for 15 to 20 years.Consequently,designing them to meet current and future regulations adds value for our customers today whil

302、e helping them prepare for the more stringent regulatory environments to come.We have a goal to perform a life cycle assessment(LCA)on 100%of new products by 2020.In addition,we have a goal to create an end-of-use manual for 100%of New Product Development(NPD)projects.PRODUCT LIFE CYCLE/PRODUCT END-

303、OF USE DATA%of new products receiving LCA by EOY 201714%of NPD projects in IRPDP that have end-of-use manual by EOY 2017 We have seven end-of-use manualsWater Ingersoll Rand considers water quality for both intake and discharge an important issue at all of our sites.We track our water use at the fac

304、ility level on a monthly basis through our Gensuite environment management system.The WaterWatch module is used to track effluent discharge monitoring data and trends against regulatory limitations and reporting requirements.We take swift action when approaching a discharge limit to adjust systems t

305、o avoid an exceedance.An internal action threshold is defined for each effluent limit to ensure changing effluent conditions are recognized and pretreatment systems adjusted prior to exceeding a regulatory limit.Our process discharge waters are first internally treated and then discharged with the s

306、ame or higher quality as the withdrawn water.While overall water use for 2017 increased by 2.5%compared to 2016,Ingersoll Rand reduced 2017 water use by 8%at global locations that reside in water-stressed regions.Analyzing Water Stressed RegionsWe periodically conduct a risk assessment using the Wor

307、ld Resources Institute(WRI)Aqueduct tool and designate sites that score medium-high or high for water stress.We consider physical risk quality and quantity as well as regulatory and reputational risk.In 2017,13 sites globally were in areas of medium-high to high water stress.For these sites,we have

308、a 2020 target in place to reduce water consumption by 25%.These 13 sites combined account for 7%of the companys total water use.In total,these sites have reduced their water consumption since 2013 by 45.4%.MANAGEMENT APPROACHThe Ingersoll Rand Product Development Process(IRPDP),used by all Ingersoll

309、 Rand businesses,applies standard work to the product development life cycle to ensure we are meeting customer needs,assessing risk,embedding sustainability and developing intellectual property.IRPDP has several modules that can be applied at various stages of product development.In all,IRPDP has ge

310、nerated or improved more than 70 product development projects.One of the modules is focused on“Design for Sustainability”and consists of tools and standard work fo-cused on environmental impact.In phase 2 of IRPDP,the product team identifies risks related to environ-mental,health and safety(EHS)or s

311、ustainability considerations in compliance with related codes that affect the product.Both our extensive(full)LCAs and our streamlined LCAs cover our product impacts from cradle to grave,including impacts from all stages raw materials,manufacturing,use phase and end of use.We have 2020 goals that ad

312、dress LCA and end-of-use considerations.Please see our Progress Toward 2020 Targets section.LIFE CYCLE ASSESSMENT100%We have a goal to perform a life cycle assessment(LCA)on 100%of new products by 2020WATER USE8%Ingersoll Rand reduced 2017 water use by 8%at global locations that reside in water-stre

313、ssed regions 36 2017 SUSTAINABILITY SUPPLEMENT Waste We continue our journey toward zero waste to landfill.Fifteen of our manufacturing sites reported achieving zero waste to landfill and,in 2017,we reduced our non-hazardous waste to landfill by 10%compared to 2016.Our 2017 recycling rate increased

314、by 3%compared to 2016.For every pound of non-hazardous waste sent to landfill,nearly four pounds are recycled.WATER DATA 20172016201520142013Water use(million cubic meters)3.383.304.204.043.71Normalized water use (cubic meters/million USD)238244316313300Wastewater permit exceedences2481614WASTE DATA

315、20172016201520142013Total hazardous waste generated(metric tons)1,2841,1711,2281,4651,491Normalized hazardous waste(metric tons/million USD)0.090.090.090.110.12Total non-hazardous waste generated(metric tons)35,06634,62033,05634,40535,194Normalized non-hazardous waste(metric tons/million USD)2.472.5

316、62.492.672.85Non-hazardous waste to landfill(metric tons)5,3505,9396,5277,2156,921Normalized non-hazardous waste to landfill(metric tons/million USD)0.380.440.490.560.56Non-hazardous waste recycled(metric tons)28,12126,81325,02525,88424,274Normalized non-hazardous waste recycled(metric tons/million

317、USD)1.981.981.882.011.97In addition to the third-party verification of the 2017 sustainability data,Ingersoll Rand completed a review of the FY2014 through FY2016 data.Minor adjustment opportunities were identified and the adjustments have been incorporated,resulting in slight differences in the pre

318、viously reported values for hazardous waste disposed.37 2017 SUSTAINABILITY SUPPLEMENT Diversity and Inclusion in the WorkplaceOur company has long been committed to building a progressive,diverse and inclusive environment in which people of all backgrounds are treated with respect.We have seven emp

319、loyee resource groups(ERGs)companywide,including a Womens Network,Veterans Employee Resource Group,Asian Employee Resource Group,Global Organization of Latinos and the PRIDE Employee Resource Group.To reinforce our commitment,in 2017,Michael W.Lamach,chairman and CEO,joined more than 150 leading CEO

320、s in a pledge to cultivate diversity and inclusion in the workplace through the CEO Action for Diversity&Inclusion.Additionally,we were the first in our industry to enter the Paradigm for Parity Coalition,a pledge to bring gender parity to our corporate leadership structure by 2030.Anti-Harassment W

321、e provide salaried employees with anti-harassment training and make clear policies available to Ingersoll Rand employees worldwide.Social Sustainability:Our People Ingersoll Rand defines social sustainability as caring about and invest-ing in the needs of our associates and communities over the long

322、 term.We partner with our stakeholders in pursuit of positive societal change,ensuring all parties operate with integrity and an ethical mindset.In doing so,we share responsibilities for delivering results the right way.We strive to engage our employees,produce a better experience for our customers,

323、innovate with our suppliers and collaborate with local nonprofits and educational institutions to improve the quality of life in the communities where we do business.ANTI-HARASSMENT DATA201720162015TargetActualTargetActualTargetActualU.S.salaried employees trained on anti-harassment100%100%100%100%1

324、00%100%Employees able to access anti-harassment policy100%100%100%100%100%100%38 2017 SUSTAINABILITY SUPPLEMENT Occupational Health and Safety Creating and sustaining a safety-focused,zero-incident culture is a top priority for everyone at Ingersoll Rand.This commitment starts with our CEO and perme

325、ates the entire organization.Ingersoll Rand manufactures a variety of products,offers service and installation at customer locations,and may be called upon 24/7 and 365 days a year.To ensure our injury prevention efforts are truly top tier,we completed a benchmarking activity in 2016 that examined i

326、njury rates from multiple instances in several employment sectors,including diversified manufacturing,financial services,mining,construction and education.Our analysis determined that injury rates needed to be less than 0.6 for Total Recordable Incident Rate(TRIR)and 0.06 for Lost Time Incident Rate

327、(LTIR)(per 200,000 total work hours)to be considered world-class in injury prevention.In 2017,we continued to reduce our incident rates and are approaching world-class injury prevention performance.In 2017,our injury prevention efforts were heavily focused on:Maturing our Behavior-Based Safety(BBS)p

328、rogram;and Expanding our ergonomics program and aggressively reducing risk factors at targeted workstations.Everyone at Ingersoll Rand is responsible for our collective safety,and implementation of the BBS program is taking us to the next level of performance.Our BBS program is building a better cul

329、ture of ownership in which employees feel responsibility for their coworkers safety as much as for their own.The BBS program establishes a worldwide structure to promote open discussions with management regarding work-related hazards and safety issues.In responding to this years employee engagement

330、survey,93%of employees stated they believe Ingersoll Rand is committed to employee safety.We communicate our safety expectations through quarterly CEO town hall meetings as well as monthly environmental,health and safety(EHS)meetings at both the facility-and service-organization levels.These meeting

331、s raise awareness of safety risks and preventative measures and provide our employees with opportunities to share best practices.Additionally,we continue to place a strong emphasis on ergonomics awareness and focus on reducing manual material handling,eliminating postural problems and reducing repet

332、itiveness along production lines.OCCUPATIONAL HEALTH AND SAFETY DATAIn 2017,we achieved a 10%reduction in TRIR and 10%reduction in LTIR(per 200,000 hours worked).The company experienced zero work-related fatalities in 2017.The companys employees,including supervised contract employees,worked a total

333、 of 92,010,455 hours in 2017.LOST TIME INCIDENT RATE 2017201620152014(number of employees per million hours worked)0.560.610.640.84EMPLOYEE SAFETY 93%of employees stated they believe Ingersoll Rand is committed toEMPLOYEE SAFETY EMPLOYEE SAFETY 39 2017 SUSTAINABILITY SUPPLEMENT Supplier Diversity Ingersoll Rand is committed to a diverse and innovative supply base.Supplier diversity is integral to