2016 Sustainability Report

2016 Sustainability Report

Sustainability Approach

Goals & Progress

Our sustainability strategy ties directly to Xylem’s business strategy, enabling sustainability to be effectively and seamlessly integrated into all we do. Our five-year sustainability goals are aligned with the four key areas of our sustainability strategy: our offerings, our operations, external engagement, and organization and culture.

The goals continue to be incorporated into our business operating planning process, and progress is evaluated through various measures, including our goal deployment process. In the spirit of continuous improvement, we are reviewing the best ways to track our progress against some of the harder-to-measure metrics. Below shows our progress as of the end of 2016:

OFFERINGS

Goal

Improve product energy efficiency of specific Xylem product lines

Progress

0.4% decrease in average product efficiency since 2015; 2.6% improvement since 2012

Goal

Increase Vitality Index (percentages of sales from products launched in the past five years) to 30% by 2020 to drive product innovation and efficiency; following the acquisition of Sensus, we increased our Vitality Index 2020 goal from 25% to 30%

Progress

19% of sales (excluding Sensus) are from products launched in the past five years

OPERATIONS

Goal

Reduce Xylem water use by 25% by 2019*

Progress

9.2% reduction in water usage intensity

Goal

Reduce greenhouse gas (GHG) emissions intensity by 20% by 2019*

Progress

15.7% reduction in GHG intensity, net of renewable energy

Goal

Reduce waste sent to landfill by 20% by 2019*

Progress

43.6% reduction in total waste to landfill

Goal

Reduce injury frequency rate to less than 0.5 and injury severity rate to less than 6.0 by 2019*

Progress

Injury Frequency: 0.93
Injury Severity: 18.16

Goal

Achieve 100% environmental compliance at all manufacturing and service sites

Progress

Two environmental notices of violation (NOVs) without fines

* from 2014 baseline

EXTERNAL ENGAGEMENT and organization & culture

Goal

Increase impact of Xylem Watermark®, our corporate citizenship program, through investments to nonprofit partners

Progress

32% increase in new projects with our nonprofit partners
69% increase in employee contributions vs. 2015

Goal

Increase employee involvement in Xylem Watermark® by 15% year-over-year

Progress

21,078 employee volunteer hours logged in MyWatermark in 2016*

Goal

Position Xylem as a leading advocate for sustainable water policy worldwide

Progress

Xylem continues to expand its work in advocating for sustainable water management policies. In 2016, the company co-convened a conference entitled “Disruptive Resilience: Chief Technology Officers Map America’s 2030 Water Future,” was invited to participate in the White House Water Summit, and conducted a statewide survey in California to better understand public perceptions about recycled water.

*All employee volunteer hours are logged into MyWatermark, our employee engagement interactive website; employee volunteer hours were not logged in previous years.