Xylem Sustainability Report 2012

7/28/2019 Xylem Sustainability Report 2012

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TRANSPARENCY

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3

ORGANIZATIONAL

COMMITMENT AND ALIGNMENT

Leadership Commitment

Sustainability Strategy

Organizational Structure and Governance

Organizational Alignment

Internal Culture and Employee Engagement

CORESUSTAINABILITY PERFORMANCE

Environmental Initiatives

Health and Saety

Labor and Human Rights

Human Capital

Supply Chain Responsibility

Products, Systems and Services

Innovation

STAKEHOLDER

COMMUNICATION AND ENGAGEMENT

Community and Social Initiatives

Strategic Partnerships

Political Advocacy and Lobbying

Customer and DistributionPartner Engagement

External Reporting

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We have solutions to help customers

recover rom the increasing

number and severity o weather-related

water emergencies. Ater Hurricane

Sandy, our Godwin-brand dewatering

pumps were employed in Belmar,New Jersey and other ooded areas in

the northeast United States.

Our Value o Water survey raised

understanding about the

need or investments i n Americas

water inrastructure.


7/24

KEY SOLVING WATER METRICS

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8/246

Xylem reduced Injury Frequency

and Injury Severity in 2012,

and we are introducing action plans

to reduce them urther by targeting

common saety issues, including

lacerations, slips and alls.

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9/247

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Boosting our TransformationEfforts with Better CareerRoadmaps

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How do Career Frameworks differ fromtraditional job competency models?Th mwk d h k, hvd xc dd v cg h m ccd dvg Xm g. A wd

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Why is this good news for employees?Th c xc hw cm mv Xm, d hw ccd dg Xm . Id d

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Recruitment and Retention

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active steps to reduce its environmental impactdXylem makes signifcant

contributions to the communities in which we work. Xm d

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KEY EMPLOYEES AND WORKPLACE METRICS

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More than 7,500 employees participated

in our frst-ever Xylem Global Employee

Survey, which measured our perormance as

employers, as sellers and as stewards o

the planet and communities where

we reside.

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In 2012, eight o 10 Xylem board o

directors were independent. The current

board includes nine o 11 independentdirectors, including board Chairman

Markos Tambakeras.

In 2012, we updated both our Code o Conduct

and Anti-Corruption Manual, and 100

percent o employees participated in Code

o Conduct Training.


11/24

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Risk management

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The Guardians of CorporateGovernance

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What is the role of Xylems LegalDepartment when it comes to corporategovernance?W cc gd c gvc. A -h c c cm, m c h c d h m h wh

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What is the Legal Departments role inenhancing Xylems sustainability efforts?Th Lg Dm cd Ehc & Cmc m, whch mg hcd cmc gm d cv g c dd cmc . Th Lg Dm cd Evm, S &Hh gz, whch cc dvg --c

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Whats one important way the LegalDepartment advanced Xylemssustainability efforts in 2012?T m cmc v cmd vd h mkc, w hv w cmg wh h w d g

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KEY LEADERSHIP AND GOVERNANCE METRICSS2011S2012

During Hurricane Sandy, we used

our business continuity plans to

get our Dewatering Solutions branch

in New Jersey back into operationquickly so we could help customers

with their ooding issues.

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12/24

Our largest plant in Emmaboda, Sweden,

will soon start reusing waste heat

now being stored and charged in 140boreholes drilled into the ground to lower

its energy usage by 50 percent.


13/24

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Serving as an Example

of Solving Water

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How are you elevating your effortsto walk the talk and solve waterat Xylem operations?I wh mm. U -d-h g, w w g

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What are some tangible ways you areworking to reduce water use at Xylemoperations?I 3, w g m h gv m gdc d

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Besides changes to your operations,are there other ways you can helpconserve water?I , w c kg mhw h v w hm hd v, d hd h wh h gz w cgm w . W cdg w gg w-dc d dvgc h dcdg k w mk gv m , whch hdcd dcg w g hgh

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Waste Management

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KEY ECO EFFICIENCY METRICS

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Our new Xylem India ofce met LEED

criteria or energy efciency and its

adjoining plant installed Xylem products to

enable wastewater to be reused asdrinking water. Pictured here, Sam Yamdagni,

President and Managing Director o

Xylem India.

Through a 2012 contest, Paul Shute, Variable

Speed Drive Specialist at Applied Water

Systems, U.K., and many other employees

shared examples o how they are solving

water at work or at home.

S2011S2012

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14/24

MAKING PROGRESS WHERE IT MATTERS

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Eco-Efciency

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A test at a wastewater plant in Sweden

showed our Sanitaire diusers,

blowers and control systems reduced

energy consumption by 65 percent.

Our e-SV hot water circulator pumps are

the most energy-efcient pumps in their class.

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15/24

3

Quality and Saety

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S Formation o a product saety review board or Xylem and each Xylem business.

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Product Pricing and Target Markets

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Life Cycle Assessmentsand EnvironmentalProduct Declarations

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What percentage of Xylem productscurrently offer customers LCAs and EPDs?W hv dvd c LCA d EPD wh gz.Rgh w, w cm wh

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In March 2013, we launched our frst

Essence o Lie product, a human-powered

stepper irrigation pump or customers

in emerging markets and economically

challenged regions.

KEY PRODUCTS, SYSTEMS AND SERVICES METRICSS2011S2012

7% 79%

59.4%58.9%


16/24

4

Xylem is taking steps to ensure we dont work

with suppliers selling conict minerals.

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ONGOINGONGOING

Event


17/24

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Qualifying Suppliers Based on

Sustainability Criteria

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Why is it important that Xylem work withsustainable supply partners?O x hXm m d c

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Can you describe how the newsupplier sustainability assessmentcriteria will work?W d m m h g dmc c, ch c,-m dv cd, cg, d qd vc v. Gg wd, w

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What if it comes down to a low-costsupplier versus a higher-cost butsustainable supplier?W k vhg cdwh cg h gh .B h w-c cd d cg m c h c mm h g . S w k ck c.W v h v c wh cvc d xg h

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Raw Material Demand

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Supply Chain Standards and Selection

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Supply Chain Engagement

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We provide Lean Six Sigma training

to our Tier One suppliers.

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KEY SUPPLY CHAIN METRICS

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18/24

6

In 2012, Xylem Watermark volunteers worked

with with Water For Peoples World Water

Corps to collect data on water, sanitation

and hygiene conditions in schools and

communities in West Bengal, India (seen here)

and the Cajamarca Region o Peru.

photocre

dit:

Cassan

draNe

lson/MercyCorps


19/24

7

Young students at a school in ood-prone

western Nepal learn how to stay sae

in the event o disaster. The training was

provided by Mercy Corps with aid

rom Xylem Watermark unds.

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Another Way to Solve Water

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What makes Xylem Watermark such apowerful corporate citizenship program?Xm Wmk c czhd c vm gm wh dc d gc g w g. Thgh h dv, w g c w, d hg dc cmm d d h wd. W vd w h mh

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How will the program continue toimprove and expand?W w c k w wh c h xd mc d h wd, d w c h d c m d h dkhd. A chg vv, w wwk dv v c hdv d h cmm whch w . Ad wh w gc chg d ckg hjc w d, mvg wd w w dm m h h jc d v gm.

Was there a moment in 2012 thatdefined the long-term promise of XylemWatermark?O gc chvm w dd m md g h w hvmcd h v m h m d h wd c hch h gm. Wh w vdWmk 8, w hd hghh h chg w cd mk, dh h w . Lkg

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Community Contributions

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For World Water Day 2013, Xylem

employees took part in activities to improve

the water quality in their local communities.

In Shenyang, China, employees and their

amilies visited a wastewater plant to learn

more about how it operates.

KEY GLOBAL CITIZENSHIP METRICSS2011S2012

Community InvestmentsT

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Community Impact

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20/24

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9

GLOBAL REPORTING INITIATIVE AND U.N. GLOBAL COMPACT INDEX

ProfleDisclosure Description Reported Report Sect ion

UNGCCOP Element

ECONOMIC

EC1 Direct economic value generated and distributed Fully Xylem 2012 Annual Report, Form 10-K

EC2 Financial implications and other risks and opportunities or the organizationsactivities due to climate change

Fully Solving Water; Xylem 2012 Annual Report,Form 10-K

ENVIRONMENT

EN3 Direct energy consumption by primary energy source Part ia lly Eco-Efciency

EN4 Indirect energy consumption by primary source Part ia lly Eco-Efciency

EN8 Total water withdrawal by source Part ia lly Eco-Efciency

EN16 Total direct and indirect GHG emissions by weight Fully Eco-Efciency

EN21 Total water discharge by quality and destination Partially Eco-Efciency Principles 7 8

EN22 Total weight o waste by type and disposal method Partially Eco-Efciency

EN23 Total number and volume o signifcant spills Fully Eco-Efciency

EN24 Weight o waste, type o disposal and percentage transported under

terms o Basel Convention

Part ial ly Eco-Efciency

EN28 Monetary fnes and non-monetary sanctions or non-compliance Fully Eco-Efciency

SOCIAL: LABOR PRACTICES AND DECENT WORK

LA7 Rates o injury, occupational disease, lost days and absenteeism, and numbero work-related atalities by region and by gender

Partially Employees and Workplace

LA11 Programs or skills management and l ielong learning that supportthe continued employability o employees and assist them in managingcareer endings

Partially Employees and Workplace

SO1 Percentage o operations with implemented local community engagement,impact assessments and development programs

Partially Global Citizenship; Reporting, Recognitionand Partnerships

No specifc COPrequirement

SO3 Percentage o employees trained in organizations anti-corruption policiesand procedures

Partially Leadership and Governance

SO5 Public policy positions and participation in public policy developmentand lobbying

Fully Leadership and Governance

PR1 Lie cycle stages in which health and saety impacts o products and services areassessed or improvement, and percentage o signifcant products and servicescategories subject to such procedures

Partially Products and Services

PR5 Practices related to customer satisaction, including results o surveys measuringcustomer satisaction

Partially Products and Services Principle 9

PR6 Programs or adherence to laws, standards and voluntary codes related tomarketing, communications

Partially Products and Services

HR2 Percentage o signifcant s uppliers, contractors and other business partners thathave undergone human rights screenings, and actions taken

Partially Products and ServicesPrinciples 1 2

Principles 1 6

Principle 10

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Xylem Sustainability Report 2012

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