Improving our Environmental Performance on an Ongoing Basis
With support from ITW’s senior management, each division is directly responsible for implementing the most impactful environmental performance improvement opportunities for their unique operations. As we work continuously to improve our environmental performance, we take a three pronged approach:
1. Auditing our facilities. ITW’s annual environmental, health and safety compliance audits help ensure that the company’s facilities meet regulatory requirements and reinforce ITW’s commitment to safeguarding the environment. The audits also highlight the ways ITW businesses go above and beyond baseline compliance to reduce the company’s impact on the environment and preserve natural resources.
Our goal is to audit our largest facilities annually. We partner with ERM-Environmental Resources Management Limited to audit environmental and safety risk at our facilities, and our businesses systematically address any identified issues.
2. Transparent Reporting. We monitor third-party frameworks and surveys and evaluate their relevance to our business and our stakeholders. For example, we have been monitoring the financial materiality framework of the Sustainability Accounting Standards Board (SASB) as a way to assess the financial materiality of environmental, social and governance risks to our company. In 2019, we utilized the SASB Materiality Map® to review the risks identified by SASB for companies in the Industrial Machinery and Goods industry under SASB’s Sustainable Industry Classification System®. We also continued our voluntary participation in CDP’s climate change and water questionnaires in 2019, which we have made public to increase our transparency in reporting.
3. Implementing policies that guide our progress. Each ITW division is responsible for complying with the ITW Environmental & Sustainability Policy. Everyone in the organization has a responsibility to preserve and protect the environment, conduct operations in a safe manner and recognize the potential impacts of our operations.
As part of ITW’s ongoing drive for overall operational excellence, many of our businesses pursue third-party certifications. The well-respected International Organization for Standardization (ISO) develops standards and criteria for effective environmental management systems, and many of our facilities have taken the step to become certified. At the end of 2019, 111 sites, accounting for approximately 26 percent of ITW’s manufacturing sites globally, had ISO 14001 certification for environmental management.
Read more about our environmental management in Governance & Ethics.
Reducing Our Environmental Impact
ITW is committed to continuous improvement in reducing greenhouse gas (GHG) emissions. In 2019, ITW established a company-wide GHG emissions intensity reduction target: By 2027, reduce combined Scope 1 and 2 GHG emissions per U.S. dollar of operating revenue by 20 percent below 2017 levels.
To achieve our target, we are taking the following approach:
- Reducing energy consumption and improving operational efficiency in our manufacturing and ITW-owned facilities, implemented in accordance with our division-led environmental management systems.
- Expanding our purchase of energy from renewable sources, including wind and solar, across our global footprint where possible.