2016 Sustainability Report

GRI Content Index

Legend: 10-K — Form 10-K, AR — Annual Report, FC — Front Cover

GENERAL Standard Disclosures

Standard
Disclosure

Description

Response

Strategy and Analysis

G4-1

Provide a statement from the most senior decision-maker of the organization.

Approach – CEO Message

Organizational Profile

G4-3

Report the name of the organization.

Approach – Xylem At-A-Glance

G4-4

Report the primary brands, products, and services.

Approach – Xylem At-A-Glance

G4-5

Report the location of the organization’s headquarters.

Approach – Xylem At-A-Glance

G4-6

Report the number of countries where the organization operates.

Approach – Xylem At-A-Glance

G4-7

Report the nature of ownership and legal form.

Xylem Inc. (XYL) is a publicly traded company listed on the New York Stock Exchange.

G4-8

Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

Approach – Xylem At-A-Glance

G4-9

Report the scale of the organization.

Approach – Xylem At-A-Glance

G4-10

Breakdown of Employee Type.

Xylem People – Global Workforce

G4-11

Report the percentage of total employees covered by collective bargaining agreements.

Xylem People – Global Workforce
10-K (10)

G4-12

Describe the organization’s supply chain.

Business Performance – Supply Chain

G4-13

Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.

Business Performance – Supply Chain

G4-14

Report whether and how the precautionary approach or principle is addressed by the organization.

Operational Impact – EH&S Overview

G4-15

List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

Approach – Stakeholder Engagement

G4-16

List memberships of associations (such as industry associations) and national or international advocacy organizations.

Approach – Stakeholder Engagement

Identified Material Aspects and Boundaries

G4-17

List all entities included in the organization’s consolidated financial statements or equivalent documents.

Approach – Reporting Practices

G4-18

Explain the process for defining the report content and the Aspect Boundaries.

Approach – Materiality

G4-19

List all the material Aspects identified in the process for defining report content.

Issue

Internal

External

Boundary

GRI Aspect(s)

Economic Value Creation (1)

X

X

All Xylem operations & communities in which we operate

-Economic Performance

-Market Presence

Integrity & Transparency (16)

X

All Xylem operations

-Human Rights Investment

-Supplier Human Rights Assessment

-Anti-Corruption

-Anti-Competitive Behavior

-Society, Compliance

Innovation (2)

X

All Xylem operations

-Energy

-Emissions

-Products and Services

Sustainable Products & Services (3)

X

X

All Xylem operations & communities in which we operate

-Materials

-Energy

-Emissions

-Water

-Effluents & Waste

-Products and Services

-Customer Health & Safety

Water Thought Leadership (5)

X

X

All Xylem operations & communities in which we operate

-Products and Services

Talent Development (14)

X

All Xylem operations

-Training and Education

Community Impact (4)

X

X

All Xylem operations & communities in which we operate

-Indirect Economic Impacts

-Local Communities

EH&S at Xylem (13)

X

All Xylem operations

-Occupational Health & Safety

Responsible Supply Chain (17)

X

X

All Xylem operations & supply chain

-Procurement Practices

-Transport

-Supplier Environmental Assessment

-Supplier Assessment for Labor Practices

-Human Rights Investment

-Supplier Human Rights Assessment

-Supplier Assessment for Impacts on Society

Water Stewardship (10)

X

All Xylem operations

-Water

-Effluents & Waste

G4-20

For each material Aspect, report the Aspect Boundary within the organization. Report whether the Aspect is material within the organization.

G4-21

For each material Aspect, report the Aspect Boundary outside the organization.

G4-22

Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

Approach – Reporting Practices
Operational Impact – EH&S Overview

G4-23

Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Approach – Reporting Practices
Operational Impact – EH&S Overview

Stakeholder Engagement

G4-24

Provide a list of stakeholder groups engaged by the organization.

Approach – Stakeholder Engagement

G4-25

Report the basis for identification and selection of stakeholders with whom to engage.

Approach – Stakeholder Engagement

G4-26

Report the organization’s approach to stakeholder engagement.

Approach – Stakeholder Engagement

G4-27

Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns.

Approach – Stakeholder Engagement

Report Profile

G4-28

Reporting period for information provided.

Approach – Reporting Practices

G4-29

Date of most recent previous report.

Approach – Reporting Practices

G4-30

Reporting cycle.

Approach – Reporting Practices

G4-31

Provide the contact point for questions regarding the report or its contents.

Approach – Reporting Practices

G4-32

Report the ‘in accordance’ option the organization has chosen.

Approach – Reporting Practices

G4-33

Report the organization’s policy and current practice with regard to seeking external assurance for the report.

Approach – Reporting Practices

Governance

G4-34

Report the governance structure of the organization, including committees of the highest governance body.

Corporate Governance Highlights

Ethics and Integrity

G4-56

Describe the organization’s values, principles, standards, and norms of behavior such as codes of conduct and codes of ethics.

Xylem People – Ethics

Specific Standard Disclosures

DMA and Indicators

Description

Response

Economic

Aspect: Economic Performance

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Business Strategy
Business Performance – Economic Impact

G4-EC1

Direct economic value generated and distributed

Business Performance – Economic Impact

G4-EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change

Business Performance – Business Strategy
Water Solutions – A Water Secure Future
Operational Impact – EH&S Overview

Aspect: Market Presence

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Business Strategy
Business Performance – Economic Impact
Xylem People – Global Workforce

G4-EC6

Proportion of senior management hired from the local community at significant locations of operation

Xylem People – Employee Engagement

Aspect: Indirect Economic Impacts

G4-DMA

Generic Disclosures on Management Approach

Community – Corporate Citizenship
Community – Watermark Partnerships
Community – Watermark Employee Volunteerism

G4-EC8

Significant indirect economic impacts, including the extent of impacts

Community – Corporate Citizenship
Community – Watermark Partnerships
Community – Watermark Employee Volunteerism

Aspect: Procurement Practices

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Supply Chain

G4-EC9

Proportion of spending on local suppliers at significant locations of operation

Business Performance – Supply Chain

Environmental

Aspect: Materials

G4-DMA

Generic Disclosures on Management Approach

Water Solutions – Product Efficiency

G4-EN1

Materials used by weight or volume

Xylem does not actively track this data.

G4-EN2

Percentage of materials used that are recycled input materials

Xylem does not actively track this data.

Aspect: Energy

G4-DMA

Generic Disclosures on Management Approach

Water Solutions – A Water Secure Future
Water Solutions – Product Efficiency
Operational Impact – EH&S Overview
Operational Impact – Energy & Emissions

G4-EN3

Energy consumption within the organization

Operational Impact – Energy & Emissions

G4-EN4

Energy consumption outside of the organization

Water Solutions – Product Efficiency

G4-EN5

Energy intensity

Energy intensity for 2016 is 72.2 megawatt hours per annual revenues in millions USD.

This ratio includes direct consumption sources (renewable electricity generated, natural gas, propane, and fuel oil) and mobile sources (gasoline, diesel, and propane) in addition to indirect consumption sources (purchased heat, electricity and energy).

G4-EN6

Reduction of energy consumption

Operational Impact – Energy & Emissions

G4-EN7

Reductions in energy requirements of products and services

Water Solutions – Product Efficiency

Aspect: Water

G4-DMA

Generic Disclosures on Management Approach

Operational Impact – EH&S Overview
Operational Impact – Water

G4-EN8

Total water withdrawal by source

Operational Impact – Water

G4-EN9

Water sources significantly affected by withdrawal of water

At Xylem, we are working to ensure there are no water sources significantly affected by our withdrawal of water. The work in this area is still in the early stages, but we are moving ahead on a number of fronts.

Operational Impact – Water

G4-EN10

Percentage and total volume of water recycled and reused

Operational Impact – Water

Aspect: Emissions

G4-DMA

Generic Disclosures on Management Approach

Water Solutions – A Water Secure Future
Water Solutions – Product Efficiency
Operational Impact – EH&S Overview
Operational Impact – Energy & Emissions

G4-EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

Operational Impact – Energy & Emissions

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Operational Impact – Energy & Emissions

G4-EN17

Other indirect greenhouse gas (GHG) emissions (Scope 3)

Water Solutions – Product Efficiency
Operational Impact – Energy & Emissions

G4-EN18

Greenhouse gas (GHG) emissions intensity

Operational Impact – Energy & Emissions

G4-EN19

Reduction of greenhouse gas (GHG) emissions

Operational Impact – Energy & Emissions

G4-EN20

Emissions of ozone-depleting substances (ODS)

Xylem does not use significant amounts of ozone-depleting substances, and for that reason we do not track their use. We adhere to the Montreal Protocol, administered by the United Nations Environment Programme (UNEP), which maintains the list of ozone-depleting substances that are targeted for reductions and total phase-outs.

G4-EN21

NOX, SOX, and other significant air emissions

Operational Impact – Energy & Emissions

Aspect: Effluents and Waste

G4-DMA

Generic Disclosures on Management Approach

Operational Impact – EH&S Overview
Operational Impact – Materials & Waste

G4-EN22

Total water discharge by quality and destination

Operational Impact – Water

G4-EN23

Total weight of waste by type and disposal method

Operational Impact – Materials & Waste

G4-EN24

Total number and volume of significant spills

Operational Impact – EH&S Overview

Aspect: Products and Services

G4-DMA

Generic Disclosures on Management Approach

Water Solutions – A Water Secure Future
Water Solutions – Product Applications
Water Solutions – Product Efficiency

G4-EN27

Extent of impact mitigation of environmental impacts of products and services

Water Solutions – A Water Secure Future
Water Solutions – Product Applications
Water Solutions – Product Efficiency

Aspect: Transport

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Supply Chain

G4-EN30

Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce

Business Performance – Supply Chain
Operational Impact – Energy & Emissions

Aspect: Supplier Environmental Assessment

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Supply Chain

G4-EN32

Percentage of new suppliers that were screened using environmental criteria

Business Performance – Supply Chain

G4-EN33

Significant actual and potential negative environmental impacts in the supply chain and actions taken

Business Performance – Supply Chain

Category: Social

Sub-Category: Labor Practices and Decent Work

Aspect: Occupational Health and Safety

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Safety

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Xylem People – Safety

Aspect: Training And Education

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Talent Development

G4-LA9

Average hours of training per year per employee by gender, and by employee category

Xylem People – Talent Development

G4-LA10

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Xylem People – Talent Development

Aspect: Supplier Assessment For Labor Practices

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Supply Chain

G4-LA14

Percentage of new suppliers that were screened using labor practices criteria

Business Performance – Supply Chain

G4-LA15

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Business Performance – Supply Chain

Sub-Category: Human Rights

Aspect: Investment

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Ethics

G4-HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Xylem People – Ethics

Sub-Category: Society

Aspect: Local Communities

G4-DMA

Generic Disclosures on Management Approach

Community – Corporate Citizenship
Community – Watermark Partnerships
Community – Watermark Employee Volunteerism

G4-SO1

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

Community – Corporate Citizenship
Community – Watermark Partnerships
Community – Watermark Employee Volunteerism

Aspect: Anti-Corruption

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Ethics

G4-SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Xylem People – Ethics

G4-SO4

Communication and training on anti-corruption policies and procedures

Xylem People – Ethics

G4-SO5

Confirmed incidents of corruption and actions taken

Xylem People – Ethics

Aspect: Anti-Competitive Behavior

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Ethics

G4-SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

10-K (90)

Xylem People – Ethics

Aspect: Compliance

G4-DMA

Generic Disclosures on Management Approach

Xylem People – Ethics

G4-SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

10-K (90)

Aspect: Supplier Assessment for Impacts on Society

G4-DMA

Generic Disclosures on Management Approach

Business Performance – Supply Chain

G4-SO9

Percentage of new suppliers that were screened using criteria for impacts on society

Business Performance – Supply Chain

G4-SO10

Significant actual and potential negative impacts on society in the supply chain and actions taken

Business Performance – Supply Chain

Sub-Category: Product Responsibility

Aspect: Customer Health And Safety

G4-DMA

Generic Disclosures on Management Approach

Water Solutions – Product Applications
Water Solutions – Product Efficiency

G4-PR1

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

At Xylem, we conduct safety risk assessments on all new products and changed products where the design revisions have a possible impact on safety.