Publishing an annual Sustainability Supplement — a practice at Ingersoll Rand since 2007 — is an expression of our commitment to social, environmental and financial responsibility. As in prior years, this supplement is designed to provide a comprehensive update on our progress in these areas in a clear and easily accessible format.
The content of this supplement illustrates our passion for social, environmental and financial sustainability at every level — that is, to demonstrate how sustainability is intrinsic to our corporate purpose, how we are embedding it in our products and how we engineer and manufacture them, and our pursuit of sustainable progress and enduring results in the communities where we operate.
This supplement follows the Global Reporting Initiative (GRI) G4 framework. Visit the GRI Content Index appended to this supplement to learn more about our 2015 sustainability performance. For more information on GRI, please visit www.globalreporting.org.
Ingersoll Rand has published this supplement to transparently and comprehensively communicate the company’s social, environmental and economic performance. The scope of this supplement corresponds to calendar year 2015 — our fiscal year — and spans our global operations including subsidiaries, certain leased facilities and joint ventures in which we have a controlling interest.
We define our organizational boundary using the financial control approach. In 2014 we completed a corporate-wide review of Scope 1 and 2 GHG emissions for all owned and leased assets using the Greenhouse Gas Protocol accounting standards. We feel this more accurately reflects the direct impact of our operational footprint. Accordingly, prior years’ data has been restated.
We report data from newly opened and acquired facilities as soon as valid data is available. For recently closed or sold facilities, the data is included for the time period it was part of the enterprise and to ensure year-over-year comparisons remain consistent. As such events occur, baselines are adjusted to account for these significant changes in our operations. As our data collection system continues to mature and improve, the environmental data we report improves in accuracy and expands in breadth.
Data is presented in absolute and normalized terms. Normalizing environmental and energy data to total revenue provides us necessary insight into the level of eco-efficiency across our diversified operations and benchmarking against the performance of other industrial companies. Our safety data is normalized by number of hours worked. Please refer to our GHG and Energy Efficiency Inventory protocol document for further information.
Changes during supplement cycle (G4-13): Organizational Profile
The data presented in this supplement reflects the company’s purchase of the assets of Cameron International Corporation’s Centrifugal Compression Business, which became part of our compressed air business in January 2015. It also reflects the company’s acquisition of FRIGOBLOCK, which became part of our Thermo King business in March 2015. For more information about significant organizational and operational changes during the supplement period, please refer to our Form 10-K.
This supplement contains “forward-looking statements,” which are statements that are not historical facts, including our ability to address environmental and social challenges, the future success of our growth and operational excellence initiatives, our future financial performance, our growth and our positioning in and the performance of the markets in which we operate. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue dependence on our forward-looking statements. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. They are subject to future events, risks and uncertainties—many of which are beyond our control—as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. You are advised to review the factors described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in our Form 10-K for the fiscal year ended December 31, 2015, our Forms 10-Q for the quarters ended March 31, 2016 and June 30, 2016, and any further disclosures we make on related subjects in materials we file with or furnish to the Securities and Exchange Commission. We do not undertake to update any forward-looking statements.
Assurance (G4-33): Supplement Profile
We have our environmental and safety data assured by an independent third party. The assurance process is led by the Vice President, Environmental Health and Safety, Operations, who supplements to the Senior Vice President, Global Operations and Integrated Supply Chain. The results of this assurance are available here.