2016 Sustainability Report

2016 Sustainability Report

Operational Impact

Energy & Emissions

Xylem
Goal

20%
GHG Emissions Intensity
By 2019

Electricity consumption is the largest contributor to GHG emissions associated with our operations. By inspiring our global sites to make reductions in energy use and increase investments in renewable energy, we aim to lower our GHG emissions intensity levels. We’re making great progress, from identifying our highest-emitting activities to engaging employees across our company to adopt a more energy-efficient mindset — all of which will help move us toward achieving our GHG intensity goal.

For example, in 2016, we focused on reducing fuel consumption in our vehicle fleet by piloting an online safe- and eco-driving training project with select Xylem drivers. We also contracted with an external consultant with the goal of implementing a world-class energy management solution.

Some of our most successful initiatives to engage employees in energy-reduction efforts have been “Energy Treasure Hunts” at selected facilities. During these events, cross-functional teams of employees identify possible day-to-day energy-efficiency improvements. The goal is to find opportunities to reduce energy use, costs and greenhouse gas emissions related to energy.

Many of these opportunities are low- or no-cost improvements and relatively easy to implement, such as the installation of more efficient lighting and mechanical systems; ovens; motors, belts and drives; fans and pumps; refrigeration systems; and office equipment. Treasure Hunts have been conducted at 20 Xylem sites across the world, starting with our highest resource-consuming facilities. These exercises have led to more than 600 recommended actions, which combined could prevent the use of 4.4 million liters of water and avert 131 tons of CO2 emissions.

Emissions Intensity

Total Greenhouse Gas (GHG)
Emissions Intensity
(metric tons CO2 equivalent/annual revenues in millions USD)

2015* 2016
Scope 1 and 2 Emissions Intensity 19.38 19.15
Scope 1 and 2 Emissions Intensity,
Net of Renewable Energy
18.90 16.62
Percentage Decrease Relative
to 2014 Baseline
4.30% 15.7%

* Values in this table have been restated. See Reporting Practices and EH&S Overview for additional information.
† A normalized metric based on annual revenues to allow for a consistent year-over-year comparison that is not impacted by acquisitions, divestitures, employee turnover and the like.

Direct and Indirect Emissions

Direct And Indirect emissions

Level Definition 2015* 2016
Scope 1 Direct GHG Emissions; those
that come from sources owned
or controlled by Xylem
37,142 34,883
Scope 2 Indirect Emissions; those resulting
from the offsite generation of
electricity, heating and cooling, or
steam by third-party providers and
purchased by Xylem
39,657 38,762
Scope 3 Indirect Emissions Due to Business Travel 7,734 7,759

* Values in this table have been restated. See Reporting Practices and EH&S Overview for additional information.

Scope 1 Emissions

Direct Greenhouse Gas (GHG)
Emissions by Type
(metric tons CO2 equivalent)

2015* 2016
Natural Gas Used 11,538 9,504
Stationary Source Gaseous Propane <1 17
Stationary Source Liquid Propane 375 351
Stationary Source Fuel Oil 552 765
Cryogenic CO2 2 0.2
Refrigerant Use 462 248
Total Stationary GHG Emission 12,930 10,885
Mobile Source Gasoline 4,856 882
Mobile Source Diesel 18,733 23,018
Mobile Source Liquid Propane 694 75
Total Mobile GHG Emissions 24,282 23,975
Total Direct GHG Emissions 37,212 34,860

* Values in this table have been restated. See Reporting Practices and EH&S Overview for additional information.

Scope 2 Emissions

Indirect Greenhouse Gas (GHG)
Emissions by Type
(metric tons CO2 equivalent)

2015* 2016
Purchased Electricity 38,794 37,984
Purchased Heat 862 778
Total Indirect GHG Emissions 39,657 38,762

* Values in this table have been restated. See Reporting Practices and EH&S Overview for additional information.

Energy Consumption

Direct Energy* by Type
(Megawatt-Hours — MWh)

2015 2016
Renewable Electricity Generated 55 148
Natural Gas Used 63,653 52,431
Stationary Source Gaseous Propane 2 48
Stationary Source Liquid Propane 1,792 1,761
Stationary Source Fuel Oil 2,192 3,141
Total Stationary Energy Usage 67,693 57,529
Mobile Source Gasoline 18,476 3,305
Mobile Source Diesel 69,633 85,587
Mobile Source Liquid Propane 27 3
Total Mobile Energy Usage 88,137 88,895
Total Direct Energy Usage
(Stationary + Mobile)
155,830 146,425

* Natural gas, diesel fuel oil, gasoline and renewable sources used in our facilities and/or by mobile vehicles to transport our products.

Indirect Energy* by Type
(Megawatt-Hours — MWh)

2015 2016
Purchased Electricity 137,326 128,640
Purchased Heat 1,871 2,527
Total Indirect Energy Usage 139,197 131,167

* Electricity and heat purchased from energy companies that use various fossil, renewable and non-fossil energy sources to produce and provide these energy products.
† Value restated due to change in reporting rule in 2015 (+50.1%).

Total Energy Consumption
(Megawatt-Hours — MWh)

2015* 2016
Consumption
(Megawatt-Hours - MWh)
295,026 277,592

* Values in this table have been restated. See Reporting Practices and EH&S Overview for additional information.

Air Emissions

Volatile Organic Compounds (VOC)
Emissions (metric tons)

2015 2016
Purchased Renewable Energy Credits 116 92

Renewable Energy
One of the simplest ways to reduce our overall GHG emissions is through the purchase of renewable or “green” energy credits and renewable energy. Currently, 23 Xylem manufacturing facilities and sales offices purchase renewable electricity. Combined, these sites purchased over 68 million kWh of renewable energy and nearly 9,600 CO2 equivalent metric tons in renewable energy during 2016.

>Sites that purchase these credits include:

  • Åby, Sweden
  • Auburn, New York, USA
  • Bergen, Norway
  • Cheektowaga, New
    York, USA
  • Dallas, Texas, USA
  • Dordrecht, Netherlands
  • Emmaboda, Sweden
  • Gällivare, Sweden
  • Göteborg, Sweden
  • Herford, Germany
  • Karlstad, Sweden
  • Luleå, Sweden
  • Malmö, Sweden
  • Mariestad, Sweden
  • Montecchio, Italy
  • Morton Grove,
    Illinois, USA
  • Örebro, Sweden
  • Strzelin, Poland
  • Sundbyberg, Sweden
  • Sundsvall, Sweden
  • Umeå, Sweden
  • Uppsala, Sweden
  • Yellow Springs,
    Ohio, USA

In addition to purchasing renewable electricity, our sales office in the Netherlands offsets its natural gas consumption through certified green natural gas credits. Through the Gold Standard Foundation’s Fairtrade Carbon Credit program, companies such as Xylem are able to invest in green energy; increase the resilience of producer groups to the negative impacts of climate change; and help provide a more sustainable future for communities through diversifying community income streams, teaching new skills and creating local employment.

In our Australia and South Africa operations, we continue to grow our onsite solar energy generation program. The combined solar panels at our Australian (Adelaide, Brisbane and Sydney) and South African (Boksburg) locations resulted in the generation of 148,259.61 kWh of energy during 2016. We continue to evaluate our green energy strategy with an eye toward its expansion in the years ahead.

Another area where we’re making progress is reducing air quality emissions. We are working to move away from using paints that contain volatile organic compounds (VOCs) and toward water-based painting systems in our operations. Where this is not possible, we are generally destroying VOCs or using materials with lower VOC content. For example, our production facility in Emmaboda burns VOCs and reuses heat from its painting process.

2016 Energy & Emissions Performance
Our energy- and emissions-reduction initiatives resulted in a 12-percent decrease in GHG emissions intensity from 2015 to 2016. This represents a 15.8-percent decrease from our 2014 baseline, continuing to advance us toward our goal of achieving a 20-percent decrease in GHG emissions intensity by 2019. A significant driver of our progress in 2016 was the increase in renewable energy credit purchases.

In 2016, Xylem engaged ERM-CVS, an independent certification and verification provider, to conduct assurance of the environmental metrics contained within our EHS metrics system. ERM-CVS provided an assurance statement for total direct energy use, total indirect energy use, total direct GHG emissions, total indirect GHG emissions, total water withdrawal, total hazardous waste and total non-hazardous waste. Click here to view the assurance statement from ERM-CVS.