Part of ITW’s commitment to operating responsibly in a shared world is recognizing that our operations have global impact. Across our organization, we are focused on measuring, managing and reducing our environmental impact.

Managing Environmental Performance

In keeping with our decentralized culture, ITW divisions are directly responsible for managing their own performance and implementing the most impactful improvement opportunities for their unique operations. As we evaluate and strive to improve our environmental performance, we take a three-pronged approach:

  • Auditing our facilities to drive continuous improvement. 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.
  • Reporting voluntarily to organizations such as CDP. CDP (formerly the Carbon Disclosure Project) is an independent, nonprofit organization working to encourage the disclosure of global emissions and water usage by businesses and cities. In 2017, ITW continued its voluntary participation in CDP’s investor and water questionnaires. As a result, we have continued to increase our understanding of the effects of carbon emissions and water withdrawals, which are being used to inform ITW’s strategy for reducing environmental impact. Going forward, we will also make public the data disclosed to CDP.
  • Implementing policies that guide our activity. Each ITW division is responsible for complying with the ITW Environmental and Safety Policy and the ITW 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.

In addition, many of our businesses pursue third-party certifications as part of ITW’s ongoing drive for overall operational excellence. The well-respected International Organization for Standardization (ISO) develops standards and criteria for effective environmental management systems, and we are proud of our facilities that have taken the step to become certified. For example, at the end of 2017, 68 sites, accounting for approximately 18 percent of ITW’s sites globally, had ISO 14001 certification for environmental management.

Read more about our environmental management in Governance & Ethics.

Reducing Our Environmental Impact

At the division level, we continuously examine ways we can lessen our negative impacts on the environment. For example, the ITW Engineered Fasteners & Components division that serves the automotive industry installed variable frequency drives on its injection molding equipment to reduce overall energy use. From this single improvement, the business estimates an annual savings of 446,021 kilowatt hours, or the equivalent annual energy usage of 41 U.S. homes.

In our ITW Ground Support Equipment division, the business developed a battery-powered ground power unit to replace its diesel-based unit, which is estimated to reduce CO2 emissions by 90 percent and NOx emissions by 95 percent, compared with a T3 engine. Learn more here.

Reporting Our 2017 Environmental Impact

We track our impact on the environment in a number of areas, and we use this data to work toward continuous improvement. In addition, this data will be reviewed and certified by a reputable third party as part of ITW’s ongoing commitment to transparency in its disclosures.

 

2017 Environmental Data

Total Energy1,4
  • Direct energy in MWh
  • Indirect energy in MWh
Energy Intensity2,4
  • Energy intensity (MWh/$MM operating revenue)
Total Emissions3,4
  • Direct emissions in metric ton CO2e
  • Indirect emissions in metric ton CO2e
Emissions Intensity2,4
  • Emissions intensity (metric tons CO2e/$MM operating revenue)
Total Water Withdrawn
  • Purchased water withdrawal in thousands of U.S. gallons
  • Non-purchased water withdrawal in thousands of U.S. gallons
Water Intensity2
  • Water intensity (U.S. gallons/$thousand operating revenue)
Total Solid Waste
  • Hazardous & special industrial waste in U.S. tons
  • Non-hazardous waste in U.S. tons
Total Recycled Material
  • Amount of recycled materials in U.S. tons
  • words
Government Environmental Inspections
  • Number of inspections
  • words
Government Environmental Inspections’ Resulting Fines
  • Fines in U.S. dollars
  • words

1 Included energy sources are electricity, natural gas, heating/fuel oil, diesel, gasoline and propane (fork truck).

2 Only operating revenue from participating divisions was included in the calculation of intensity indicators.

3 Includes CO2, N2O, CH4

4 Energy and emissions data from prior years have been adjusted based on additional data and adjusted emissions factors for certain energy sources.

The reporting period for ITW’s environmental, health and safety data is January 1 – December 31, 2017. The reporting boundary includes companies over which ITW has operational control, with the exception of leased non-manufacturing facilities. The reporting boundary does not include joint ventures.

This report includes data from approximately 75 percent of the included companies.


It is worth noting that in the prior year’s emissions reports, our total GHG emissions and GHG emissions intensity were meaningfully below the average of our peer group of companies identified in our proxy statement. ITW is committed to continuing to reduce our environmental impact and one area where we do this is in our purchase of renewable energy, which accounts for approximately 3 percent of ITW’s energy consumption. While ITW manufactures a wide variety of products, our energy intensity is modest, and we continue to look for ways to be increasingly more efficient.

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