Climate Change Data

Xylem Inc.

Climate Impact & Sustainability Data (2019, 2020, 2021, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:74,306 tCO2e (net)
Scope 1 Emissions:42,471 tCO2e
Scope 2 Emissions:50,127 tCO2e (location-based)
Scope 3 Emissions:11,653 tCO2e (business travel)
Renewable Energy Share:Not disclosed
Total Energy Consumption:366,278 MWh
Water Consumption:442.9 megaliters (withdrawal)
Waste Generated:33,929 tons
Carbon Intensity:14.15 tCO2e/MUSD (net)

ESG Focus Areas

  • Water scarcity
  • Water systems resilience
  • Water affordability
  • Climate Change
  • Business Transformation
  • Intellectual Property

Environmental Achievements

  • 28.3% reduction in greenhouse gas emissions
  • 20% reduction in water use intensity
  • 13 of 22 major facilities achieved zero waste to landfill

Social Achievements

  • 50% employee engagement in Xylem Watermark program, logging 65,000 volunteer hours (21% increase from 2018)
  • 150% increase in beneficiaries from projects conducted with nonprofit partners
  • 100% rating in The Human Rights Campaign Foundation’s Corporate Equality Index

Governance Achievements

  • First sustainable improvement loan in the general industrial sector in the US
  • Portion of CEO and CSO compensation tied to Xylem’s sustainability performance

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce over 3.5 billion m3 of non-revenue water by 2025
  • Treat 13 billion m3 of water for reuse by 2025
  • Prevent over 7 billion m3 of polluted water by 2025
  • Provide access to clean water and sanitation solutions for at least 20 million people by 2025
  • Achieve 50% gender parity in leadership positions by 2025
  • Achieve 25% US minority representation in leadership positions by 2025
  • Reduce injury frequency to 0.5 or below by 2025
  • Require preferred suppliers to take the WASH Pledge by 2025
  • Ensure packaging material consists of 75% reusable, recyclable or compostable content by 2025
  • Achieve zero waste to landfill from processes at major facilities by 2025
  • Develop science-based target for GHG reduction (Scope 1,2,3) by 2025
  • Engage preferred suppliers in sustainability initiatives by 2025
  • Provide all employees with rich learning and development opportunities by 2025
Short-term Goals:
  • Increase US diverse supplier spend to 12% by 2025

Environmental Challenges

  • Supplier issue causing increase in waste to landfill intensity
  • Falling short of 25% water use intensity reduction goal (achieved 20%)
  • Falling short of 0.5 injury frequency rate goal (achieved 0.67)
  • Slower than anticipated adoption of digital products impacting new product sales
Mitigation Strategies
  • Corrected supplier issue and implemented new audit protocols
  • Committed to 100% process water recycling at major facilities by 2025
  • Continued focus on risk reduction programs
  • Working to accelerate adoption of digital products and services

Supply Chain Management

Supplier Audits: Over 250 suppliers audited in 2019; 200+ audited through Supplier Quality Assessment program in 2019

Responsible Procurement
  • Supplier Code of Conduct
  • Localization efforts
  • Sustainability elements integrated into supplier audits

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought
  • Unpredictable weather
Transition Risks
  • New environmental laws and regulations
  • Inability to capitalize on new technologies
Opportunities
  • Delivering more energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001, OHSAS 18001, ISO 9001, ISO 50001

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 6
  • SDG 9
  • SDG 11
  • SDG 13

Xylem's products, solutions, and services contribute to these goals through water management, sanitation, innovation, and climate action initiatives.

Sustainable Products & Innovation

  • Alyza IQ Analyzer
  • Godwin S Series pumps
  • Smart Pump Range
  • MAS 801 pump monitoring system
  • HydroSphere data visualization platform
  • Sensus Cordonel flow meter

Awards & Recognition

  • Fortune “Change the World” list

Reporting Period: 2020

Environmental Metrics

Scope 1 Emissions:39,051 metric tons CO2e/year
Scope 2 Emissions:49,939 metric tons CO2e/year
Scope 3 Emissions:1,968,049 metric tons CO2e/year
Renewable Energy Share:45%
Total Energy Consumption:350,868 MWh/year
Water Consumption:357.8 megaliters/year
Waste Generated:31,723 tons/year
Carbon Intensity:13.08 metric tons CO2e/MUSD

ESG Focus Areas

  • Water scarcity
  • Water systems resilience to climate change
  • Water affordability
  • Diversity, Equity & Inclusion
  • Climate Change
  • Supply Chain Responsibility
  • Community Impact

Environmental Achievements

  • Reduced overall facility water intensity by approximately 30 percent lower than it was in 2014. 2020 water usage was 19 percent less versus 2019.
  • Reduced total company net greenhouse gas emissions intensity by over 7 percent versus 2019.
  • 10 of 22 major facilities are now operating on 100 percent renewable energy, and two are recycling 100 percent of site process water, with 12 sites with projects underway.
  • Helped customers reduce their carbon footprint by 0.7 million metric tons of CO2.
  • Helped customers prevent 1.4 billion m3 of polluted water from flooding communities or entering local waterways.
  • Installed treatment solutions that helped customers reuse 4.3 billion m3 of water.

Social Achievements

  • Expanded global safety and health protocols, extended healthcare and medical benefits, implemented premium pay for essential workers, and expanded paid leave for those directly affected by COVID-19.
  • Assisted communities through Xylem Watermark, supporting non-profit partners in COVID-19 response, producing and donating PPE, and providing WASH education.
  • Advanced diversity, equity, and inclusion efforts, focusing on diversity recruiting, building an inclusive culture, and increasing data transparency.
  • Launched a $1 billion green bond offering.
  • Assisted 4.1 million people with access to clean water and sanitation solutions.
  • Provided water education to 3.6 million people.

Governance Achievements

  • Established the role of Chief Sustainability Officer.
  • Augmented sustainability-linked compensation for an expanding group of colleagues.
  • Launched a U.S. supplier diversity program.
  • Increased transparency in the supply chain by engaging major suppliers to report into EcoVadis and CDP.

Climate Goals & Targets

Long-term Goals:
  • Achieve 50 percent female representation in leadership positions by 2030.
  • Use 100 percent renewable energy at major facilities by 2025.
  • Use 100 percent process water recycling at major facilities by 2025.
  • Achieve zero waste to landfill from processes at major facilities by 2025.
  • Develop 1.5°C science-based target for GHG reduction (Scope 1, 2, 3).
Medium-term Goals:
  • Achieve 35% women in leadership by 2025.
  • Achieve at least 25 percent U.S. minority representation in leadership positions by 2025.
  • Reduce over 3.5 billion m3 of non-revenue water.
  • Treat 13 billion m3 of water for reuse.
  • Prevent over 7 billion m3 of polluted water from flooding communities or entering local waterways.
  • Provide access to clean water and sanitation solutions for at least 20 million people.
Short-term Goals:
  • Reduce injury frequency to an incident rate of 0.5 or below.
  • Increase U.S. diverse supplier spend to 12 percent.

Environmental Challenges

  • COVID-19 pandemic impacting operations, supply chains, and communities.
  • Water scarcity in various regions.
  • Climate change impacting water systems.
  • Achieving diversity and inclusion goals.
Mitigation Strategies
  • Activated business continuity plans, implemented remote work, and provided support to employees and communities.
  • Developed and implemented water reuse solutions and digital tools to reduce water loss.
  • Developed adaptation and mitigation solutions to increase water systems resilience.
  • Implemented diversity recruiting initiatives, built an inclusive culture, and increased data transparency.

Supply Chain Management

Supplier Audits: 15% global spend of suppliers disclosed sustainability information via EcoVadis.

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability requirements in contracts
  • EcoVadis assessment program
  • CDP reporting program

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Drought
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and solutions
  • Increased demand for resilience solutions

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN Sustainable Development Goals (SDGs), Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 14001, OHSAS 18001, ISO 9001, ISO 50001

Third-party Assurance: Lloyd's Register Quality Assurance (LR)

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 6
  • SDG 9
  • SDG 11
  • SDG 13

Xylem's products, solutions, and community initiatives contribute to these goals.

Sustainable Products & Innovation

  • Ecocirc building circulator pumps
  • EXO NitraLED UV nitrate sensor
  • Aquatalk smart water management platform
  • Avensor wastewater asset management platform

Awards & Recognition

  • MSCI ESG rating of AAA
  • Top Sustainalytics score for industrial machinery industry
  • Barron’s Most Sustainable Companies
  • Forbes & JUST Capital: America’s Most JUST Companies
  • Newsweek’s America’s Most Responsible Companies
  • Human Rights Campaign Equality Index score of 100

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:92,276 tCO2e/year (total)
Scope 1 Emissions:47,707 tCO2e/year
Scope 2 Emissions:18,214 tCO2e/year
Scope 3 Emissions:61,206,079 tCO2e/year
Renewable Energy Share:32% of total energy use
Total Energy Consumption:390,493 MWh/year
Water Consumption:342.1 megaliters/year (total withdrawal)
Waste Generated:33,052 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Water Stewardship
  • Climate Change Mitigation through Decarbonization
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emission intensity by 12% and water use by 22% versus 2019
  • Recycled 100% of process water at 8 of 22 major facilities
  • Reduced waste sent to landfill by 22% from 2019 baseline

Social Achievements

  • Reached nearly 80% employee participation in Watermark volunteer program
  • Engaged over 700 students in Xylem Ignite Innovation Challenge
  • Expanded accountability for Sustainability progress by integrating 2025 Goals into executive compensation

Governance Achievements

  • Expanded ESG-linked financing strategies, including an ESG-linked demand deposit account
  • Announced commitment to reach Net-Zero by 2050
  • Completed a Task Force on Climate-related Financial Disclosures (TCFD) assessment

Climate Goals & Targets

Long-term Goals:
  • Achieve Net-Zero emissions by 2050
Medium-term Goals:
  • Achieve 35% female representation in leadership positions by 2025
  • Achieve 100% renewable energy at major facilities by 2025
  • Develop 1.5°C science-based targets for GHG reductions across Scope 1, 2, and 3
Short-term Goals:
  • Reduce water consumption by further implementing water saving initiatives across facilities
  • Accelerate progress towards zero process waste to landfill at major facilities

Environmental Challenges

  • Need to accelerate procurement of renewable heat and natural gas for some large facilities
  • Developing tailor-made approaches to educate and support suppliers at different maturity levels of data disclosure
  • Increased customer focus on climate change mitigation and adaptation influencing product portfolio management
Mitigation Strategies
  • Establishing more nuanced and facility-specific GHG and water targets
  • Continuing to expand Tier 2 Supplier Diversity Program
  • Including sustainability as a strategic pillar in product design phase

Supply Chain Management

Supplier Audits: 40% of critical suppliers evaluated in 2021 (virtual audits)

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessments
  • CDP Supply Chain program
  • WASH4Work Pledge

Climate-Related Risks & Opportunities

Physical Risks
  • Water stress
  • Wildfire
  • Cold wave
  • Heatwave
  • Hurricane
Transition Risks
  • Regulatory changes
  • Carbon pricing
Opportunities
  • Development of energy-efficient products
  • Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001

Third-party Assurance: Lloyd's Register

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 6
  • SDG 9
  • SDG 11
  • SDG 13

Xylem's products and initiatives contribute to these goals through various programs and solutions.

Sustainable Products & Innovation

  • Leopold Texler lamella clarifier

Awards & Recognition

  • 2022 World Benchmarking Alliance’s SDG 2000 Most Influential Companies
  • 2022 Barron’s Most Sustainable Companies
  • 2022 Newsweek’s Most Responsible Companies
  • 2022 HRC Foundation’s Best Places to Work for LGBTQ+ Equality
  • 2022 JUST Capital’s America’s 32 Industry Leaders for Environmental Performance
  • 2022 JUST Capital’s Most JUST Companies
  • 2022 3BL Media’s 100 Best Corporate Citizens
  • 2022 Global Water Award Net Zero Champion

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:28,142 tCO2e/year (combined)
Scope 2 Emissions:31,065 tCO2e/year (combined)
Scope 3 Emissions:629,286 tCO2e/year (combined)
Renewable Energy Share:78%
Total Energy Consumption:343,090 MWh/year (combined)
Water Consumption:2,556 ML/year (combined)
Waste Generated:56,406 tons/year (combined)

ESG Focus Areas

  • Decarbonizing the water sector
  • Accelerating water stewardship practices
  • Advancing WASH (Water, Sanitation, and Hygiene) access and capacity building

Environmental Achievements

  • Reached 2025 Customer Sustainability Goal of enabling customers to treat over 13 billion cubic meters of water for reuse
  • Reached 2025 Customer Sustainability Goal of enabling customers to prevent over 7 billion cubic meters of polluted water from flooding communities or entering local waterways
  • Reduced legacy Xylem's Scope 1 and 2 emissions by approximately 17% compared to 2022
  • Legacy Evoqua reduced its Scope 1 and 2 emissions by approximately 9% compared to its 2022 fiscal year
  • 78% of the combined companies’ electricity came from renewable sources in 2023
  • 19 of 22 major facilities achieved 100% renewable energy use
  • 17 of 22 major facilities achieved zero waste to landfill
  • Recycled 33,308 metric tons of waste (59% of total waste generated)

Social Achievements

  • Launched High-Impact Culture
  • Completed a global gender pay-equity assessment (83% complete globally, 87% in the US)
  • 49% of legacy Xylem’s global supplier base by spend signed onto WASH pledge
  • 89% Watermark participation rate among legacy Xylem employees
  • Provided WASH access to an additional 3.8 million people
  • Reached an additional 3.3 million individuals through water education initiatives
  • Provided humanitarian aid in response to 30 water-related disasters

Governance Achievements

  • Established a control framework for ESG reporting (implementation planned for 2024)
  • Several sustainability-related goals included in executive compensation

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Improve water security for 100M people by 2030
  • Reach an additional 80M people by enabling climate-resilient WASH access and capacity building by 2030
  • Develop 1.5°C science-based targets for GHG reductions across Scopes 1, 2, and 3 by 2025
Short-term Goals:
  • Reduce water intensity by 30% by 2030
  • Reduce the water intensity of our supply chain by 2030
  • Enable customers to reduce water demand by at least 2B cubic meters by 2030

Environmental Challenges

  • Supply chain disruptions
  • Global transition to renewable energy production needed to meet Scope 3 reduction targets
  • Challenges in electrifying a growing commercial fleet
  • Data collection methods are maturing and improving
Mitigation Strategies
  • Developing alternative sourcing strategies
  • Investing in projects aimed at reducing GHG footprint
  • Exploring complementary innovative and data-driven solutions to reduce fleet emissions
  • Strengthening internal controls to enhance the integrity of disclosures

Supply Chain Management

Supplier Audits: Over 500 on-site audits in the past three years

Responsible Procurement
  • Business Partner Code of Conduct
  • EcoVadis assessments
  • CDP Supply Chain program
  • WASH4Work pledge

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Droughts
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Growth in digital solutions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 9001, ISO 50001

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through water stewardship, renewable energy adoption, and GHG emissions reduction

Sustainable Products & Innovation

  • Digital solutions (Vue)
  • Hydrovar X variable speed pump drive
  • Solar power and solar/grid hybrid solutions

Awards & Recognition

  • 2024 Net Zero Carbon Champion – Global Water Awards
  • 2024 America’s Most Responsible Companies – Newsweek (#2 out of 600)
  • 2024 Best Place to Work for LGBTQ Equality in the U.S.
  • 2024 Sustainable Debt Awards for Sustainability-linked loan of the year (Americas)