2016 sustainability metrics - Eaton

Health and safety In 2016, we reduced the Total Recordable Case Rate (TRCR) by 14% (0.69) and Days Away Case Rate (DACR) by 17% (0.25) compared to 201...

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2016 sustainability metrics

Health and safety In 2016, we reduced the Total

Recordable Case Rate (TRCR) by 14% (0.69) and

Days Away Case Rate (DACR) by 17% (0.25) compared to 2015.

Total Recordable Case Rate

Days Away Case Rate

Rate per 100 employees

Rate per 100 employees

TRCR actual rate

DACR actual rate

TRCR goal

DACR goal

.84

.80

.69 goal

.32 .30

.69 .60

.23 goal .25

.18

2014

2015

2016

2017

2014

Health and safety recordable cases are work-related injuries or illnesses as defined by the U.S. Occupational Safety and Health Administration (OSHA).

EATON 2016 sustainability metrics

2015

2016

2017

Days away cases are injuries or illnesses involving one or more days away from work as defined by OSHA.

© 2017 Eaton. All rights reserved.

Greenhouse gas generation Indexed to sales, our greenhouse

gas (GHG) generation increased by 0.2% in 2016 compared to 2015. On

an absolute basis, we decreased our GHG generation by 51,000 metric tons (from 1,010,000 to 959,000), or 5.1% compared to the prior year. Since 2014, we have reduced the total amount of GHG generated by our operations from 1,020,000 metric tons to 959,000, which equals a 6.0% reduction. Indexed to sales, we increased our GHG emissions by 7.3% over the period.

GHG generated

Indexed GHG generated

Thousand metric tons of GHG per year

Metric tons of GHG per million dollars of sales (USD)

GHG indirect

Indexed GHG indirect

GHG direct

Indexed GHG direct Indexed GHG indirect goal Indexed GHG direct goal

1,020

1,010

48.4 goal 959

48.4

48.6

48.6

40.3

40.8

40.8

45.2

849

841

806

37.6

171

170

153

7.6

8.1

7.7

7.7

2014

2015

2016

2014

2015

2016

2017

Emission rates are generated using World Resources Institute-recommended CO2 conversion factors, which account for variations by region. These conversion factors are based on typical energy generation methods, such as those using fossil fuels or other energy sources. When we compare 2016 to 2015, sales from the manufacturing plants that make up Eaton's GHG profile decreased by 5.3%.

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Water consumption Indexed to sales, our water

consumption decreased by 1.1% in 2016 compared to 2015. On an absolute basis, we

decreased our water consumption by 6.4% compared to the prior year. Eaton does not consume large volumes of water, therefore the majority of the decrease relates to reduction efforts of a few targeted plants. Since 2014, we have reduced water consumption from 5,751,000 to 4,834,000 cubic meters, which equals a 15.9% reduction. Indexed to sales, we reduced water usage by 4.0% over the period.

Water consumed

Indexed water consumed

Thousand cubic meters of water

Cubic meters of water per $1,000 of sales (USD)

Water consumed

Indexed water consumed Indexed water consumed goal

5,751 .241 goal 5,164

0.255 4,834

2014

2015

2016

2014

0.248

0.245

2015

2016

0.237

2017

Water consumption data reported represent a majority of Eaton’s water consumption at manufacturing plants worldwide. Of the sites reporting, 17% were in Asia Pacific; 30% in Europe, the Middle East and Africa; 4% in South America; and 49% in North America. When we compare 2016 to 2015, sales from the manufacturing plants used to create Eaton’s water profile decreased by 5.3%.

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Energy consumption Indexed to sales, our energy

use decreased by 0.9% in 2016 when compared to 2015. On an absolute basis, our energy

consumption decreased by 159 million kilowatt-hours, or 6.2% compared to the prior year. Since 2014, we have reduced the total energy used by our operations from 2,606 million to 2,409 million kilowatt-hours, which equals a 7.5% reduction. Indexed to sales, we increased usage by 5.6% over the period.

Energy used

Indexed energy used

Million kilowatt-hours

Kilowatt-hours per $1,000 of sales (USD)

Energy indirect

Indexed energy indirect

Energy direct

Indexed energy direct

2,606

2,568 2,409

1,656

1,632

950

936

843

2014

2015

2016

1,566

123

122

45

43

73

78

79

2014

2015

2016

116

42

Energy consumption data was compiled from a majority of Eaton’s manufacturing plants worldwide. Of the sites reporting, 16% were located in Asia Pacific; 29% in Europe, the Middle East and Africa; 3% in South America; and 52% in North America. When we compare 2016 to 2015, sales from the manufacturing plants that make up Eaton’s energy profile decreased by 5.3%.

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Waste to landfill Indexed to sales, our waste

to landfill, which includes waste incinerated without heat recovery, decreased by 14.9% in

2016 compared to 2015. On an absolute basis, we decreased our generation by 19.4% (from 33,351 metric tons in 2015 to 26,872 in 2016), a total decrease of 6,479 metric tons. Since 2014, we have reduced the waste sent to landfill by our operations from 39,609 to 26,872 metric tons, which equals a 32.2% reduction. Indexed to sales, we lowered landfilled waste by 22.5% over the period.

Waste to landfill

Indexed waste to landfill

Thousand metric tons of landfilled waste

Metric tons of landfilled waste per million dollars of sales (USD)

Waste to landfill

Indexed waste to landfill Indexed waste to landfill goal

39.6 1.76

33.4

1.55 goal 1.60 1.36

26.9

2014

2015

2016

2014

2015

2016

1.32

2017

Waste to landfill data were compiled from a majority of Eaton’s manufacturing plants worldwide. Of the sites reporting, 16% were in Asia Pacific; 30% in Europe, the Middle East and Africa; 4% in South America; and 50% in North America. When we compare 2016 to 2015, sales from the manufacturing plants used to create Eaton’s waste profile decreased by 5.3%.

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Workplace, inclusion & diversity Bringing diversity to our leadership positions is a global priority, and in 2016 we increased the number of women and minorities holding manager roles.

Eaton global employment diversity Number of minorities

Percentage of minorities

13

4

30.8%

26.9%

26

8

30.8%

114

18.7%

436

60

13.8%

7,512

1,458

19.4%

4,247

648

15.3%

All other employees

87,332

28,053

32.1%

24,399

7,767

31.8%

All employees

95,480

29,632

31.0%

29,108

8,483

29.1%

Number under 30

Percentage of under 30

Number of 30-50

Percentage of 30-50

Number of over 50

Percentage of over 50

Board of directors

0

0%

5

35.7%

9

64.3%

Global leadership team

0

0%

8

30.8%

18

69.2%

Executives

0

0%

349

57.2%

261

42.8%

Managers

97

1.3%

4,790

63.8%

2,625

34.9%

All other employees

19,683

22.5%

48,195

55.2%

19,454

22.3%

All employees

19,780

20.7%

53,342

55.9%

22,358

23.4%

Total global

Number of women

Percentage of women

U.S. total

Board of directors

14

4

28.6%

Global leadership team

26

7

Executives

610

Managers

(As of December 31, 2016)

(U.S. only)

(U.S. only)

Eaton global employment by age group

(As of December 31, 2016)

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Supplier diversity A diverse

supplier base is important to the continued growth and success of our company and communities. In 2016,

we purchased more than $1.5 billion of goods and services from small and diverse suppliers. While our total U.S. spend with all suppliers was down nearly 20 percent, our combined spending with minority, women and veteran-owned diverse businesses increased slightly compared to the previous year (10.6 percent in 2015 versus 10.9 percent in 2016). Our spending with women-owned, veteran-owned and small business suppliers each increased by more than 20 percent. Despite the acquisition of one of our large, minority-owned suppliers last year, which resulted in a drop of 18.2 percent in minority-owned business spend from the previous year, we maintain our commitment to partner with innovative diverse companies that generate value, improve efficiencies and provide high-quality products and services.

(In millions)

2016 actual

Percentage of 2016 spend

2015 actual

Percentage of 2015 spend

Minority-owned business

$206

4.2%

$310

5.2%

Women-owned business

$205

4.2%

$206

3.4%

Veteran-owned business

$118

2.4%

$120

2.0%

Small business

$991

20.4%

$928

15.5%

(other than classified above)

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

Charitable contributions In 2016, our charitable

contributions were $11.1 million. Of this, almost 60 percent went to health and human

services; about 17 percent went toward education; 14 percent toward arts and culture; and the remaining supported civic and community efforts as well as global disaster relief. United Way Matching gift U.S. International Community effort and global disaster relief

2014 $9.8

2015 $10.2

2016 $11.1

Health and human services Education Arts and culture Civic and community efforts and global disaster relief

EATON 2016 sustainability metrics

© 2017 Eaton. All rights reserved.

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We make what matters work.

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At Eaton, we believe that power is a fundamental part of just about everything people do. Technology, transportation, energy and infrastructure—these are things the world relies on every day. That’s why Eaton is dedicated to helping our customers find new ways to manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. To improve people’s lives, the communities where we live and work, and the planet our future generations depend upon. Because that’s what really matters. And we’re here to make sure it works.

See more at Eaton.com/whatmatters

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