ITW (NYSE: ITW)
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:1,632,651 metric tons CO2e
Scope 1 Emissions:135,081 metric tons CO2e
Scope 2 Emissions:480,293 metric tons CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,540,302 MWh
Water Consumption:651,900 thousand U.S. gallons
Waste Generated:62,421 U.S. tons (recycled)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Governance & Ethics
- Our People
- Our Communities
- Our Environment
Environmental Achievements
- 37 percent reduction in GHG emissions intensity through 2021 (compared with 2017 baseline)
- Increased clean-tech revenue by 7 percentage points over the last four years (representing approximately 29 percent of overall revenue in 2021)
Social Achievements
- Steady progress on diversity and inclusion goals
- Expanded inclusive-leader training initiative to all managers and supervisors (nearly 4,300 participated)
- Launched fellowship program in Food Equipment and Automotive segments to hire and develop skilled technicians in underserved communities
Governance Achievements
- Updated ITW Code of Conduct in 2021
- Annual review of ESG strategy by the Board of Directors
- Annual cybersecurity reviews and evaluations by the Board
Climate Goals & Targets
Long-term Goals:
- By 2030, reduce combined Scope 1 and Scope 2 GHG emissions per U.S. dollar of operating revenue by 40 percent below 2017 levels
- Actively studying the feasibility of a possible path to carbon neutrality
Medium-term Goals:
- By 2025, increase third-party spend on products and services from diverse suppliers to more than $180 million
- By 2023, have 95 percent of U.S. and European preferred carriers recognized under their respective region’s accreditation (SmartWay and Lean & Green)
Short-term Goals:
- Increase U.S. third-party spend on products and services from African American suppliers to $6 million (by 2021 - achieved over $4 million)
Environmental Challenges
- Supply chain disruptions
- Climate-related physical risks (flooding, wind, hurricanes, earthquakes, fire) at some facilities
- Transitional risks from climate-change related regulations (though currently considered not substantive)
Mitigation Strategies
- Strong supplier relationships and considerable effort to overcome supply chain issues
- Emergency response plans and infrastructure upgrades at facilities with physical risks
- Energy conservation projects and material replacement through Customer-Back Innovation process to mitigate transitional risks
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct
- Supplier Expectations
- Standard Terms and Conditions
- Focus on local suppliers
- Efficient distribution and storage practices
- Sourcing sustainable materials
- Responsible minerals sourcing (3TG)
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- Wind
- Hurricanes
- Earthquakes
- Fire
Transition Risks
- Climate-change related regulations
Opportunities
- Growing electric vehicle market
- Development of energy-efficient products
Reporting Standards
Frameworks Used: SASB, TCFD
Certifications: ISO 14001 (220 facilities), ISO 9001 (214 facilities), ISO 45001 (59 sites)
Third-party Assurance: Third-party verification of energy and GHG emissions data
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Clean-tech products (29% of overall revenue)
- Hobart rack type dishwasher CS line (reduced water and energy consumption)
- Lumex LED lighting options
- Formex EV battery and energy storage solution
- Instron test equipment for alternative materials testing
- MTS test equipment for aerospace and wind energy testing
- Texwipe RevolveTM cleanroom wiper products (made from recycled plastic water bottles)
Awards & Recognition
- Smart Fox award (ITW Engineered Fasteners & Components in Selb, Germany)