Eliminating injuries and improving the well-being of our employees makes Ingersoll Rand more competitive by increasing productivity, enhancing employee engagement, improving retention and reducing healthcare costs. Creating an open reporting culture and sustaining a safety-focused, zero-incident philosophy is a top priority for all of us.
Our injury reduction strategy is focused on three elements: ergonomic improvements; recognizing, reporting and correcting at-risk behaviors; and recognizing, reporting and correcting unsafe conditions. Creating standard work and training provides employees with the tools and knowledge they need to perform their work safely and without injury.
We publicly released our Environment, Health and Safety (EHS) policy for the first time in 2015. The policy has been signed by Michael Lamach, Chairman and CEO, and EHS commitment and accountability begins with him. Our corporate EHS group creates standard work through our business operating system, training and coaching, which assists our business managers and facilities in executing EHS solutions that address their specific needs. EHS committees meet regularly to create standard work for the service organization. Keith Sultana, senior vice president of Global Integrated Supply Chain, serves as the executive sponsor of EHS programs across all Ingersoll Rand operations.
All of our facilities and service organizations are implementing and maturing our EHS management systems or Business Operating System (BOS). Employee engagement and EHS committees are critical to effective EHS programs and improvements. Direct employee involvement is used in strategic planning, assessing performance status, and as a means to ensure continuous engagement on the part of leadership, subject matter experts and production associates. These committees generally meet at least monthly.
In 2014, we replaced our web-based EHS data management system with Gensuite. Gensuite’s automated system provided an enterprise solution which improved data accuracy and visibility, while also providing mobile tracking and significantly enhancing our data mining and reporting capabilities.
Gensuite is currently supporting nearly 3,000 registered users across the company. The EHS staff uses the Gensuite output to provide monthly reports on EHS progress to the executive leadership team. In a self-sustaining cycle, the insights in these reports lead to training and programming initiatives that drive continuous improvement in our EHS performance.
Our EHS management systems focus on performance monitoring and improvement in the following areas, among others:
Our corporate EHS group regularly monitors facility-level performance in these areas against global EHS standards and applicable regulatory requirements. We use a combination of third-party consultants and EHS staff to arrange independent audits of each Ingersoll Rand site at least once every three years. We also conduct annual self-assessments following a standard protocol to identify opportunities to improve EHS performance. All personnel directly related to GISC and Services activities receive EHS training annually. Indirect and enterprise personnel receive EHS training upon initial hire, and then periodically thereafter based upon individual risk and exposures.
Our foundation for recording and reporting accidents is the U.S. Occupational Safety and Health Organization (OSHA), regulation 29CFR1904. This standard is applied to Ingersoll Rand sites globally. Additionally, sites will comply with local regulations when they are stricter than the US OSHA standard. Our EHS data is assured annually by a third party. The results of our 2015 assurance can be found here.
Employees have a number of ways to be involved in health and safety programs. Global health issues are addressed through multiple mechanisms. These issues include, among others, high-risk travel destinations, global crisis emergency planning, practices for emergency medical responders, and company health programs. Additional awareness training is planned for service personnel who perform work in medical healthcare facilities.
During acquisitions, Ingersoll Rand executes a formal due diligence process that includes EHS considerations. Formal change management programs are implemented for new operations and/or the introduction of new or redesigned products. EHS risk assessments are implemented at multiple levels, including pre-task, pre-project, within change management, and when evaluating overall enterprise risks. Ingersoll Rand does not subscribe to Article 15 of the Rio Principles, and therefore currently does not address the precautionary approach and principle.
Ingersoll Rand is strategically focused on helping to solve some of the world’s most pressing challenges — chief among them the unsustainable demand for energy resources and its impact on greenhouse gas (GHG) emissions. We are pursuing challenging environmental targets related both to the products we provide to our customers and the way we manage our business.
Complementing our product-related sustainability initiatives are actions designed to reduce the environmental impact of our own operations and business policies, processes and practices. Our performance target for these initiatives a 35 percent reduction in GHG emissions from Ingersoll Rand office buildings, manufacturing and vehicle fleet by 2020.
To achieve this emissions reduction target, we are retrofitting our facilities with new equipment that is energy and operationally efficient. To improve fleet fuel efficiency we are making vehicle choices available that significantly increase our fuel economy and reduce emissions. We are designing smaller more efficient mobile workplaces and we’re introducing alternate fuel vehicles with improved fuel economy and lower emissions. In addition, we are reducing the use of high-GWP foam blowing agents in our operations.
In 2015 we set annual EHS goals pertaining to our operations. The significant goals, among others, were:
Beyond closely managing and reporting energy consumption and GHG emissions related to our business operations, we also monitor and disclose our performance related to environmental metrics such as water consumption, natural resources and waste and recycling management. In addition, we work with our suppliers to reduce their environmental impacts and thus improve sustainability across both our supply and value chains.
We believe that making responsible use of Earth’s limited resources and reducing our GHG emissions is integral to achieving operational excellence. Translating this belief into action, we continued to make progress in 2015 reducing the environmental footprint of our global facilities. As an example, we reduced our total energy use, normalized by net revenue, by approximately 5 percent over the past two years. We reduced our absolute emissions by 10 percent over the past two years, or 75,000 metric tons CO2e during the same two year period.
We have established bold targets for reducing the environmental impacts of our products and global operations. Achieving them will require both internal and external cooperation. Our engineering and product management teams will develop and commercialize new products that are tailored for each world region. Our marketing and sales teams will communicate the value of environmentally responsible designs. Our supply chain teams will secure alternatives to existing refrigerants, offering end users the choice of when and how to phase out of products that have high GWP.
In our efforts to accelerate GHG reductions throughout the industry, we plan to spend $500 million (USD) on research and development by 2020 to continue to develop safe and efficient technologies that reduce GHG emissions. All Ingersoll Rand businesses, brands and functions are committed to successfully implementing our Climate Change Action Plan, driven by an expanding number of cross-functional internal teams.
We recognize, however, that climate change is a global challenge and that no one company or institution has all the answers. We will act as a convener to help identify a lower GWP roadmap for areas without other viable options, particularly areas with high ambient temperatures. This includes working with universities to develop and test alternative technologies to address issues such as heat transfer properties and overall performance. We also will work with building owners and industrial and transport customers to better understand their needs and accelerate the development of next-generation sustainability solutions.
2015 – 2016
2017 – 2019