2017 Sustainability Report

Sustainability Approach

Goals & Progress

Goals continue to be incorporated into our business operating planning process. 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.

Looking Ahead

As our progress below illustrates, we are moving closer to achieving our current sustainability goals. In light of this progress, we have initiated a comprehensive review of our sustainability approach with an aim to evolve our strategy and establish new long-term goals. Our new goals will continue to reflect our ambition to be a leader in sustainability, creating both economic and social value as a business enterprise. They will also be aligned with the global community’s advancement toward achieving the UN Sustainable Development Goals and with the UN Global Compact Principles. We expect to announce these new goals during 2018.

Below is a summary of our progress as of the end of 2017:

Offerings*

Goal

Improve product energy efficiency of specific Xylem product lines

Progress

0.2%
increase in average product efficiency
since 2016;
2.8% improvement since 2012

Goal

Increase Vitality Index (percentage 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

24%
of sales are from products launched in the past five years
Operations*

Goal

Reduce Xylem water use by 25%
by 2019

Progress

16.7%
reduction in water usage intensity through 2017

Goal

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

Progress

18.7%
reduction in GHG intensity, net of renewable energy, through 2017

Goal

Reduce waste sent to landfill by 20% by 2019

Progress

41.8%
reduction in total waste to landfill through 2017**

Goal

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

2017 Progress

0.94
Injury FrequenCY
13.62
Injury Severity

Goal

Achieve 100% environmental compliance at all manufacturing and service sites

Progress

In 2017, Xylem did not receive any notice of environmental noncompliance.
External Engagement and Organization & Culture

Goal

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

Progress

10%
increase in beneficiaries from projects conducted in conjunction with our nonprofit partners
16%
increase in employee contributions versus 2016

Goal

Position Xylem as a leading advocate for sustainable water policy worldwide

Progress

In 2017, Xylem became a signatory to the UN CEO Water Mandate and issued a public statement of its unwavering commitment to the principles of the Paris Climate Accord.

Goal

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

Progress

35,800+ employee volunteer hours, a 70% increase versus 2016

*from 2014 baseline

**Per dollar of revenue

The Value of Water Information

Why do we need more water data? By collecting and sharing more data, we can help solve local and global water problems…and we can unlock innovation based on what we know, creating more resilient cities and communities across the globe.

Xylem published two new white papers that outlined various challenges and opportunities in managing our water resources more sustainably: Building Resilience: Creating Strong and Sustainable Cities and Communities and The Value of Water Information: Overcoming the Global Data Drought.