2017 Sustainability Report

Operational Impact

Energy & Emissions

Electricity consumption is the largest contributor to greenhouse gas (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 significant 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 closer to achieving our GHG intensity goal.

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.

XYLEM GOAL
20%
Reduction in GHG Emissions
Intensity by 2019

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 31 Xylem sites around the world, starting with our highest resource-consuming facilities.

In 2017, we began using Eco Project Deck, a software that allows us to track all projects from Treasure Hunts, from the simple to the most complex. Through Eco Project Deck, we’ve determined that our energy Treasure Hunts have led to 128 recommended projects, 66 percent of which are underway. Through 2017, the projects are expected to avert 800 tons of CO2 emissions and save 955,000 kilowatt hours. We also estimate a reduction of 3,000 liters of liquid fuels and 2,000 cubic meters of natural gas.

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. As of year-end 2017, 57 Xylem manufacturing facilities and sales offices purchased renewable electricity – up from 23 in 2016. Combined, these sites purchased 15,024 CO2-equivalent metric tons in renewable energy, electricity and gas during 2017, a 57 percent increase over the previous year.

Xylem corporate office with LED lighting.

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.

We remain committed to 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.

2017 Energy & Emissions Performance

Our energy and emissions reduction initiatives resulted in a 7.6 percent decrease in GHG emissions intensity from 2016 to 2017. This represents a nearly 18.7 percent decrease from our 2014 baseline. A significant driver of our progress over the past couple of years has been the increase in renewable energy credit purchases.

In 2017, 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, and total water withdrawal. Read the assurance statement from ERM-CVS.

Emissions Intensity*
Total Greenhouse Gas (GHG) Emissions Intensity**
(metric tons CO2 equivalent/annual revenues in millions USD)
2016 2017
Scope 1 and 2 Emissions Intensity 19.92 19.25
Scope 1 and 2 Emissions Intensity, Net of Renewable Energy 17.36 16.04
Percentage Decrease Relative to 2014 Baseline 12.0% 18.7%

* Values in this table have been restated.

** 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*
Level Definition 2016 2017
Scope 1 Direct GHG Emissions (those that come from sources owned or controlled by Xylem) 35,105 37,325
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) 39,893 53,258
Scope 3 Indirect Emissions Due to Business Travel 7,755 9,425**

* Values in this table have been restated.

** Increase due to 20% increase in air travel emissions and Xylem’s use of hotels now included in the calculation

Scope 1 Emissions*
Direct Greenhouse Gas (GHG) Emissions by Type
(metric tons CO2 equivalent)
2016 2017
Natural Gas Used 9,774 12,539
Stationary Source Gaseous Propane 1 3
Stationary Source Liquid Propane 377 524
Stationary Source Fuel Oil 713 1,577
Cryogenic CO2 0.2 1.3
Refrigerant Use 267 519
Total Stationary GHG Emission 11,132 15,164
Mobile Source Gasoline 869 791
Mobile Source Diesel 23,043 21,321
Mobile Source Liquid Propane 61 48
Total Mobile GHG Emissions 23,973 22,161
Total Direct GHG Emissions 35,105 37,325

* Values in this table have been restated.

Scope 2 Emissions*
Indirect Greenhouse Gas (GHG) Emissions by Type
(metric tons CO2 equivalent)
2016 2017
Purchased Electricity 39,116 51,635
Purchased Heat 778 1,623
Total Indirect GHG Emissions 39,893 53,258

* Values in this table have been restated.

Energy Consumption*
Direct Energy by Type (Megawatt hours — MWh) 2016 2017
Renewable Electricity Generated1 112 115
Natural Gas Used2 53,919 69,173
Stationary Source Gaseous Propane3 7 16
Stationary Source Liquid Propane4 1,799 2,504
Stationary Source Fuel Oil5 2,829 6,260
Total Stationary Energy Usage 58,666 78,069
Mobile Source Gasoline 3,305 3,011
Mobile Source Diesel 85,656 79,255
Mobile Source Liquid Propane6 2 2
Total Mobile Energy Usage 88,964 82,268
Total Direct Energy Usage (Stationary + Mobile) 147,630 160,336
Indirect Energy§ by Type (Megawatt hours — MWh)    
Purchased Electricity 130,900 160,634
Purchased Heat 2,527 4,959
Total Indirect Energy Usage 133,427 165,593
Total Energy Consumption (Megawatt hours — MWh)    
Consumption (Megawatt hours — MWh) 281,056 325,929

* Values in this table have been restated.

† Natural gas, diesel fuel oil, gasoline, propane gas and renewable sources used in our facilities and/or by company cars and service trucks.

§ Electricity and heat purchased from energy companies that use various fossil, renewable and non-fossil energy sources to produce and provide these energy products.

1 Correction of 2016 reporting errors

2 Adjustment of 2016 reporting (estimated versus actual number from invoices)

3 Correction of 2016 reporting error at one facility – incorrect conversion from kilogram to ft3

4 Correction of 2016 reporting errors with Mobile LPG

5 Correction of 2016 reporting error with Mobile Source Diesel

6 Correction of 2016 reporting errors with Stationary LPG

Air Emissions
  2016 2017
Volatile Organic Compound (VOC) Emissions (metric tons) 90 91