2015 ITW CSR Report

Working Together

Environmental Responsibility

ITW’s future as a company relies on a healthy planet and sustainable business practices. The ITW Environmental, Health, Safety and Sustainability (EHSS) Group provides tools and assistance to our businesses, which are directly responsible for managing their own performance. This structure is aligned with our decentralized culture. Across our organization, we are measuring, managing and reducing our environmental impact.

Reporting 2015 environmental impact

ITW is pleased with its progress in 2015 on a number of environmental aspects, including energy usage, air emissions, waste generation and water consumption from company-owned facilities and leased manufacturing facilities located around the globe. Of course, there is more ITW can do, and we’re committed to working together to drive continuous improvement in this area.

Total Energy*

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

Total Emissions*

*Includes CO2, N2O, CH4

Intensity Indicators*^

*Only operating revenue from participating divisions was included in the calculation of intensity indicators; ^2014 data adjusted to reflect reported 2014 revenues

Total Water Withdrawn
Total Recycled Materials
Total Solid Waste
Government Environmental Inspections
Government Environmental Inspections' Resulting Fines

The reporting period for ITW's environmental, health, and safety data is January 1 - December 31, 2015. 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 94 percent of the included companies.

Energy reduction program update

In 2011, ITW identified an energy reduction target covering its top 10 energy-consuming businesses. In 2012, ITW launched its Enterprise Strategy, which included divesting non-core businesses, simplifying our business structure and focusing on strategic sourcing initiatives. As part of these overall strategic initiatives, ITW divested several of the businesses included in its original reduction target and significantly scaled up the management structure within our operating businesses. Each ITW business leadership team is now empowered to identify and pursue energy reduction or other environmental-related goals for their individual businesses – and those teams are in the best position to implement the most impactful changes. Consistent with this deep commitment to our decentralized operating philosophy, we recently made the decision to formally end the top-down target identified in 2011. However, our commitment to reducing our environmental footprint at the business and enterprise level remains strong, and we are dedicated to pursuing these goals in a manner consistent with our overall operating framework.

Managing ITW’s environmental performance

ITW maintains a dedicated structure to address environmental management throughout its decentralized operations. The ITW Director of Environmental Health and Safety and Sustainability (EHSS Director) has the highest level of dedicated environmental-related responsibility within the company, reporting directly to the Deputy General Counsel with a line of accountability leading to the CEO. The EHSS Director oversees environmental and regulatory compliance initiatives in cooperation with ITW's operating leadership.

As we evaluate and strive to improve our environmental performance, we take a three-pronged approach: 

Implementing policies that guide our activity

Each ITW business 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 ITW’s operations.

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 the Carbon Disclosure Project (CDP)

CDP is an independent, nonprofit organization working to encourage the disclosure of global emissions and water usage by businesses and cities. In 2015, ITW continued its voluntary participation in the CDP investor and water questionnaires. As a result of the company’s CDP participation, ITW has continued to increase its understanding of the impact of carbon emissions and water withdrawals, which are being used to inform ITW’s strategy for reducing environmental impact. 

In addition, many of our businesses pursue third-party certifications as part of ITW’s ongoing drive for overall operational excellence.  For example, as of the end of 2015, ITW had more than 60 sites with ISO 14001 certification for environmental management. The well-respected International Organization for Standardization (ISO) develops standards and criteria for effective environmental management systems, and we’re proud of our facilities that have taken the step to become certified.

Understanding ITW’s water usage and impact

ITW recently embarked on an effort to track and better understand its water usage during the completion of the annual Carbon Disclosure Project (CDP) Supply Chain Water survey, in which we participate.

Inspired by ITW’s 80/20 management process, the sustainability team identified which ITW businesses’ key customers were involved in the survey and selected those businesses to participate in the survey. The team worked with them to identify primary stresses on the water system and map out possible solutions. None of the participating businesses face substantive water-related risks. However, in relation to this initiative and other ongoing process improvements, ITW’s Miller Electric Welding Accessories business in Watertown, South Dakota, U.S., built diversion dams between finishing tanks to reduce water usage and wastewater generation. Conversations are ongoing with other businesses regarding how to proceed with this program.

Many ITW businesses around the world have been addressing water issues at the local and regional levels. For example, Hobart China, which sells professional kitchen equipment, focused on water conservation during World Environment Week (WEW). The team educated fellow colleagues about top water issues, including life in arid areas and the influence of el Niño, and offered tips on conserving water in their everyday lives.

Hobart China team members take in the water information posted during WEW