Our sustainability strategy is an intrinsic part of our business operating system, consistent with our vision for a world of sustainable progress and enduring results. The strategy is based on the core principles of transparency, accountability and shareholder engagement and driven by our materiality assessment.
As outlined in the discussion, “Our Approach to Sustainability,” which is included in the “Sustainability at Ingersoll Rand” section of this Supplement, sustainability is embedded in our business model. Our products, services and solutions are focused on heating, cooling and automating homes and buildings, enhancing commercial and industrial productivity, and keeping transported food safe and fresh. Across our portfolio of offerings, we are working to address the growing global demand for energy and its effects on the environment.
Recognition by third-party organizations documents our improved performance, while also allowing us to benchmark ourselves against peer companies. We were honored to be listed on the 2015 Dow Jones Sustainability World and North America Indices for the fifth consecutive year in addition to our debut appearance on the FTSE4Good Index Series. Ingersoll Rand’s placement on this index series further solidifies its position as an economic, environmental and social leader in its industries.
Our materiality analysis reflects this positioning, and the key elements of our sustainability strategy directly address our primary material issues:
- Greenhouse Gas Emissions and Climate Change. The Ingersoll Rand Climate Commitment is key to our greenhouse gas emissions reduction initiatives. We are making rapid progress in reducing the climate impact of our portfolio of product and service offerings.
- Energy Efficient Products. Energy efficiency joins reliability as the highest priority for product design at Ingersoll Rand. Executing on our Climate Commitment, in 2015 we launched the Ingersoll Rand EcoWise™ portfolio of products. The EcoWise endorsement is given to products with next-generation, low-GWP refrigerants and high efficiency operation.
- Technology and Innovation. Using our business operating system to drive innovation ensures that we are continually weighing our new ideas against their ultimate value to our customers. Deploying our product growth team approach, we have launched or improved more than 190 products over the past three years.
- Company Energy Use. Our business operating system enables us to execute with discipline and precision in pursuit of continuous improvement. Increasing the energy efficiency of our global facilities and fleet is core to operational improvement in all of our business units, and our total energy use, normalized by net revenue, has declined 5 percent over just the past two years.
Beyond closely managing and reporting our progress on these key material issues, we are focused on improving our performance related to additional environmental metrics such as water consumption, natural resources and, and waste and recycling management. In addition, we work with our suppliers to reduce their environmental impacts and thus improve sustainability across the entire value chain.
Our Position on Climate Change:
- Ingersoll Rand supports government policies that recognize the importance of managing future greenhouse gas (GHG) emissions. This provides an incentive for technology investments in energy efficiency that would reduce future GHG emissions.
- We believe that enforceable global governmental agreements which provide clear direction for all domestic GHG policies are necessary to effectively reduce and manage future GHG emissions.
- Refrigerants are a key component that impact the performance of our products, but current refrigerants have relatively high global warming potential (GWP). We are already launching new products with significantly less GWP that are safe, energy efficient, cost effective and environmentally sound, ahead of regulations. We actively participate in international forums, such as the United Nations Framework Convention on Climate Change and the Montreal Protocol, to help create an organized approach to global refrigerant transitions. We are also working proactively with government agencies and refrigerant suppliers to help identify alternatives and facilitate a practical transition that reduces GHG emissions as early as possible.
- Ingersoll Rand supports cost effective policies that facilitate market transition to more energy efficient technologies. We believe that improving energy efficiency in commercial, residential and industrial buildings can significantly contribute to solving some of our most pressing global challenges. We support strong energy efficiency requirements for new and existing construction and are working with governments in the United States, Canada, Mexico, European Union, China and India to facilitate adoption and enforcement of such programs.
Thermo King announced its commitment to offer North American customers new options for trailer and self-powered transport refrigeration products with lower global warming potential (GWP), pending approval by the U.S. Environmental Protection Agency under the Significant New Alternatives Policy (SNAP) program. The new units are part of the Ingersoll Rand EcoWise™ portfolio of products. They are energy-efficient and reliable, and use a next-generation refrigerant with about half the GWP of the refrigerant currently used for these applications.
We will continue to offer our North American customers Thermo King’s current line of transport refrigeration products, ensuring that optimum levels of service are available throughout the products’ lifecycle until customers are ready to transition. The new EcoWise products are currently available to customers in Europe, the Middle East and Africa, and more than 500 units were sold in their first three months on the market.