2020 Sustainability Report 2020 Sustainability Report
From Our CEO 3 People 30
Danaher at a Glance 6 Environment 52
Our Response to the Global COVID-19 Pandemic 14 Foundational Elements 62
Innovation 20 About This Report 77
GRI: 102-1 Cover Photo: Glacial Retreat by John Hayes, Beckman Coulter associate Danaher Sustainability Report 2020
From Our CEO
It is my great privilege to share Danaher’s 2020 Sustainability Report—our company’s fifth, and my first as President and CEO. I am proud to carry forward the work of my predecessor, Tom Joyce, and to lead Danaher’s purpose-driven sustainability journey.
My personal commitment to sustainability began early in my career, while working for a global chemical company where considering the responsibilities, risks and impact inherent in our daily work was essential. I have carried that passion with me throughout my career. As I step into this new role, I remain committed to doing what is right and good for our many stakeholders.
Since our earliest days, the pursuit of continuous improvement has been at the heart of everything Danaher does. The challenges facing our society and humanity present both an opportunity and a responsibility for us to do and be better. Unified by OurShared Purpose of Helping Realize Life’s Potential and empowered by the Danaher Business System (DBS), our more than 60,000 global associates address today’s challenges while continuing to make meaningful progress on our three sustainability pillars: Innovation that fuels compelling advances across an array of scientific disciplines; thePeople at the heart of our teams, along with their families and communities; and, the Environment that sustains us. I offer a few highlights here and you will see much more in the pages that follow. FROM OUR CEO
3 GRI: 102-14 Danaher Sustainability Report 2020
Innovation
Danaher’s sustainability efforts begin with innovation. In 2019, Realizing the full potential of our people requires that we foster a we invested over $1 billion toward research and development diverse and inclusive culture and commit to eliminating systemic across our businesses. Our teams work to address some of the most bias. In doing so, we aim to create a work environment in which all pressing health and safety challenges of our time while making a our associates come to work each day as their authentic selves while difference in the lives of our customers and those they serve every differentiating ourselves as an employer of choice. day. As we reflect on the most recent examples of racial injustice There is no more urgent challenge in 2020 than the COVID-19 occurring in the U.S., we recognize that we must accelerate the pace pandemic, and I’m incredibly proud of our operating companies’ of change within our organization as we continue our commitment fast, innovative response to this crisis. Cepheid, IDT and Beckman to diversity and inclusion. We emphatically support our Black Coulter played a vital role as early leaders in the COVID-19 colleagues, and the entire Black community, in calling for respect, diagnostic testing effort. To date, our businesses have collectively justice, equality and peace. We are working to give voice to these enabled or produced more than 60 million COVID-19-related issues and to create opportunities for associate learning, listening diagnostic tests. and support.
At the same time, we proactively support the scientific community In the spirit of transparency and accountability, we have established in their pursuit of new COVID-19 vaccines and therapeutics. Pall two key diversity goals for 2025. We seek to increase our and Cytiva’s products and solutions are involved in most of the representation of women associates globally to 40% from 35% in vaccine and therapeutic research efforts currently underway. 2019. And we seek to increase our People of Color representation among U.S. associates to 35% from 31% in 2019. Our intention is to better reflect the richly diverse communities in which we live, work People and serve our customers.
We believe The Best Team Wins, and our efforts around diversity and inclusion are an important part of how we are building the best team—one that fully reflects who we want to be. Danaher’s highest levels of management drive our diversity and inclusion strategy with input and oversight from our Board. I am excited about our two newest Board members, Dr. Jessica Mega and Dr. Pardis Sabeti, whose scientific expertise and unique perspectives enrich our work
FROM OUR CEO in some of the most promising areas of healthcare and life science research.
4 GRI: 102-14 Danaher Sustainability Report 2020
Environment Helping Realize Life’s Potential
Core to our sustainability strategy is our stewardship of the We live and work in complex times. Nonetheless, Danaher always environment and protecting precious resources for future strives to exceed the expectations of our shareholders, customers generations. Our commitment to the environment is longstanding, and associates, and we know that when we come together to build with businesses such as Hach, ChemTreat and Trojan directly a better world, our potential is limitless. Our innovative portfolio, safeguarding water throughout the world for more than 50 years. the dedication of our passionate people, and our deeply ingrained Across Danaher, we have long considered the environmental impact commitment to continuous improvement amplify our opportunity of our products and operations—and continually strive to improve to create a positive, long-term impact. As we rise-up to meet the on this front. world’s challenges in this unique moment, I see a bright future ahead for all of us. Thank you for your partnership as we build and sustain We have established three clear goals to ensure our commitment this future together. translates to meaningful action. By 2024, we pledge a 15% reduction in energy use, a 15% reduction in Scope 1 and 2 greenhouse gas emissions (both normalized to annual revenue) and a 15% decrease in the percentage of non-hazardous/non-regulated waste sent to landfills or incinerators, in each case compared to 2019 levels. To help us operationalize these environmental improvements, we have enhanced our DBS toolkit with energy management and waste reduction resources. Rainer M. Blair We make this pledge against the backdrop of the meaningful President and CEO environmental solutions our teams provide to the world. I am personally inspired by their daily work to keep raising the bar and do more to fulfill our obligations as global stewards of the environment.
Sustainability holds special meaning for each of us. Thank you to our associates around THANKS TO OUR the world, whose original photography submissions make this report uniquely Danaher.
FROM OUR CEO ASSOCIATES Look for the icon next to photos by this year’s photo contest winners!
5 GRI: 102-14 10 11 by Nelson To, Radiometer associate To, Nelson by Leaving nothing but footprints Sustainability at Danaher Our Businesses 7 8 9 Highlights Our Story Work How We DANAHER AT A GLANCE AT DANAHER Potential Realize Life’s Helping
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 6 20+ AROUND THE WORLD THE AROUND OPERATING COMPANIES COMPANIES OPERATING $4.4B & APPLIED SOLUTIONS ENVIRONMENTAL 2019 REVENUE We enable meaningful innovation in some of of in some innovation meaningful enable We industries. fast-growing most dynamic, today’s based around companies our operating Through businesses our groundbreaking the world, diagnostics, of life sciences, the fields transform product identification. water quality and $6.6B DIAGNOSTICS 2019 REVENUE ASSOCIATES 60,000+ 2019 REVENUE $7.0B LIFE SCIENCES
$17.9B 2019 REVENUE
102-7, 201-1
GRI: HIGHLIGHTS quality of life around the world. the around life of quality to helping customers solve solve customers helping to improving and challenges complex Danaher is a global science and science and global is a Danaher committed innovator technology DANAHER AT A GLANCE AT DANAHER
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 7 102-3, 102-4, 102-6, 102-7 GRI: by our global water supply and promoting environmental stewardship. environmental our global water supply and promoting critical tools and software for clinicians to safeguard patient health, health, for clinicians to safeguard patient critical tools and software the freshness and safety of food, pharmaceuticals and consumer of food, pharmaceuticals and consumer the freshness and safety scientists around the world work at a molecular level to understand to understand world work at a molecular level scientists around the
HQ: DC Washington, Helping new drugs, and test new therapies infection, develop chronic disease and Providing and enhance patient care worldwide, diagnostic confidence, improve Ensuring goods, and Protecting • • • • Near Telescope Peak, Death Valley National Park Death Valley Peak, Near Telescope Beckman Coulter associate Lukyanenko, Vasiliy employees (whom we refer to as associates), we enable meaningful innovation in some of today’s in some of today’s meaningful innovation as associates), we enable (whom we refer to employees and throughout D.C., our headquarters in Washington, industries. From most dynamic, fast-growing the fields of life sciences, businesses transform companies, our innovative our global operating and product identification by: diagnostics, water quality DANAHER AT A GLANCE AT DANAHER Story Our of more than 60,000 team globally diverse companies and a of more than 20 operating As a family
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 8 Guided by our Core Values, DBS drives DBS drives our Core Values, Guided by and of innovation a continuous cycle develop people Exceptional improvement. tools to use proven outstanding plans and sustainable processes, resulting execute in superior performance. Superior attract performance and high expectations people, who continue on the exceptional path. Guiding our efforts are four simple, delivery, customer-facing priorities: quality, cost and innovation. has has Danaher Business System (DBS) Danaher Business System “We strive to be a purpose-led, high performance company which relies on the on relies which company high performance purpose-led, be a to strive “We compliance to integrity, commitment and a System Business the Danaher of strength stakeholders.” all our for potential life’s to realize and sound governance —RAINER M. BLAIR Business System Danaher The The our performance been the foundation of of earliest days and culture since the The world has changed our company. and our DBS tools meaningfully since then, along and processes continue to evolve our toughest with it. DBS helps us navigate products and innovative challenges, deliver solutions, grow our businesses and develop DBS is who we are and best teams. the very how we do what we do. —Helping Realize Life’s —Helping Realize Life’s guide us in our pursuit guide us in our pursuit captures our inspiration for for captures our inspiration Core Values Core Shared Purpose Shared 102-16 Kaizen Is Our Way of Life Kaizen Is Our Way Defines Our Future Innovation Compete for Shareholders We The Best Team Wins The Best Team Listen We Customers Talk, GRI: • • • • • whether we’re supporting our customers, supporting our customers, whether we’re creating tomorrow’s breakthrough our teams or developing innovations, shareholder value: long-term delivering Our better than the last, day every to make ensure a cleaner, safer environment. ensure a cleaner, Values Our Core products to meet changing customer needs, customer needs, products to meet changing challenges, address emerging societal and help facilitate healthcare accessibility, Our Potential— new innovate do. We that we everything Our Shared Purpose Shared Our DANAHER AT A GLANCE AT DANAHER How We Work
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 9 Vice President, Deputy General Counsel Counsel Vice President, Deputy General and Secretary; and our Vice President of The committee Communications. Corporate reports to Danaher’s Senior Vice President Counsel. and General Sustainability Oversight Sustainability Danaher’s Nominating At the Board level, oversees Committee and Governance and social matters of sustainability in the committee’s responsibility as set forth charter. Danaher’s Senior At the management level, Counsel, who Vice President and General President and CEO, reports directly to our responsibility with oversight has general sustainability and respect to matters of and is responsible social responsibility, Danaher’s and approving for reviewing sustainability reports. Danaher’s Sustainability Committee at the The our strategy. helps drive level corporate committee consists of our Vice President and Safety; our Health of Environment,
Foundational Foundational
of our sustainability of our sustainability Environment the Environment Helping Protect a These pillars are supported by compliance foundation of integrity, which and sound governance, we refer to as the Elements to Our dedication program. underlies with integrity operating area of our our approach to every business, including sustainability. Our sustainability strategy is built around is built around Our sustainability strategy three pillars: Innovation Through Problems Helping Solve Innovation People Reach Their Helping People Potential Sustainability Pillars Sustainability Governance 102-18, 102-20, 102-21, 102-29, 102-32, 102-43, 102-47 TCFD: decision-making and improve our program. decision-making and improve GRI: Committee and our Board’s Nominating and Committee and our Board’s Nominating and Committee, and Compensation Governance Committee, as applicable, to help inform their sustainability program from our customers, from our customers, sustainability program share this We associates and investors. feedback with our management Sustainability stakeholders. we In the spirit of continuous improvement, seek feedback on our continue to actively operating structure to enable our operating our operating structure to enable operating companies to pursue sustainability in ways that best fit the needs of their particular resources to drive companywide sustainability sustainability companywide resources to drive sense, while where it makes initiatives the power of our decentralized leveraging which is structured around three sustainability three sustainability which is structured around pillars. and in harnessing Danaher’s scale believe We stakeholders, and included a review of peer of peer and included a review stakeholders, The results of this assessment best practices. sustainability program, formed the basis of our Danaher’s key strategic and sustainability and sustainability strategic Danaher’s key feedback incorporated goals. The assessment of internal and external from a range In 2017, with the support of a consultant, the support of a consultant, In 2017, with materiality an extensive Danaher conducted of to identify the intersection assessment DANAHER AT A GLANCE AT DANAHER Danaher at Sustainability
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 10
102-2, 102-6, 102-7, 201-1
GRI: $7.0 BILLION $7.0 2019 REVENUE treatment outcomes. research possible. Our capabilities extend beyond research research beyond capabilities extend research possible. Our of biopharmaceuticals, cell and gene to power the creation improve and more to advance patient health and therapies, Every day, scientists around the world work to understand the understand the scientists around the world work to day, Every and test new drugs. therapies new causes of disease, develop this leading-edge scientific make Our Life Sciences businesses LIFE SCIENCES LIFE DANAHER AT A GLANCE AT DANAHER Businesses Our
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 11 / OUR BUSINESSES / OUR 102-2, 102-6, 102-7, 201-1 GRI: 2019 REVENUE and automate workflows in laboratories, helping healthcare healthcare helping in laboratories, and automate workflows better patient care. professionals provide $6.6 BILLION settings—from local clinics and family physicians’ offices to offices to clinics and family physicians’ settings—from local Our data cancer and critical care centers. leading trauma, efficiency management systems improve access solutions and Our Diagnostics businesses provide healthcare professionals healthcare professionals businesses provide Our Diagnostics help safeguard and software that instrumentation with clinical across all diagnostic confidence and improve patient health DANAHER AT A GLANCE AT DANAHER DIAGNOSTICS
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 12 Every day, we count on high-quality packaging to ensure packaging to ensure we count on high-quality day, Every safety and authenticity of products freshness, consistency, businesses around the world. Our Product Identification package design, marking and coding color management, provide secure food supply, technologies used to help protect the world’s consumer goods. pharmaceutical packaging and track Water Quality Water increases, so does the demand for our As the world’s population Quality businesses Our Water Water. most precious resource: water supply and enable environmental help protect the global precision instrumentation, advanced deliver stewardship. We and treatment solutions to help analyze, purification technology the world’s water across residential, disinfect and manage and industrial applications. municipal, commercial Identification Product
/ OUR BUSINESSES / OUR
102-2, 102-6, 102-7, 201-1
GRI:
$4.4 BILLION 2019 REVENUE Water Quality and Product Identification. Quality and Product Identification. Water purification, our Environmental and Applied Solutions (EAS) and Applied Solutions (EAS) purification, our Environmental our global precious resources, and keep businesses help protect safe. EAS is comprised of two platforms: food and water supplies APPLIED SOLUTIONS APPLIED water consumer packaging to drinking innovative From DANAHER AT A GLANCE AT DANAHER & ENVIRONMENTAL
Danaher Sustainability Report 2020 DANAHER AT A GLANCE 13 15 16 19 Supporting Our Associates Champions for Our Customers Caring for Our Communities Our Response Response Our to the Global COVID-19 Pandemic response Danaher’s comprehensive pandemic has to the COVID-19 focused on supporting our associates, customers and communities.
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 14 401-2 GRI:
helps associates find helps associates find
Bright Horizons
Keeping in Touch with Our Associates with Our Touch in Keeping our associates to understand pandemic, we surveyed Throughout the COVID-19 doing. Based on results see how they’re their needs and personal situations, and to associates felt 88% of surveyed of our annual Associate Engagement Survey, efforts to care for associates during the pandemic, satisfied with the company’s took actions to maintain a safe while 93% of associates agreed that their leaders used this input to adapt have on-site or remote. We whether work environment, challenges facing our support services to address the evolving our global workforce. Pay Continuity & Expanded Benefits Expanded & Continuity Pay to COVID-19 work due able to who are not associates to pay continued have We to associates to encourage policies our pay aligned and have illness or quarantine sick. home when stay dependent to balance work and support for associates extra providing are also We absence of unpaid leaves paid sick leave, including emergency care commitments, Family and Medical Leave Emergency security and U.S. with return-to-work job with our partnership Furthermore, Act leave. tutors, elder care, pet care and more. providers, subsidized, qualified childcare global associates to all is available (EAP) assistance program Danaher’s employee for their mental wellbeing during support providing and their immediate families, ongoing, virtual mindfulness and The EAP provides pandemic. the COVID-19 with one-on-one counseling and to our associates along resiliency programming if needed. referrals, expert Work Virtual Facilitating our associates’ of us work, intensifying many the way The pandemic has changed have to work virtually as a team. We need for technological support and ways to working remotely the transition in technology and equipment to make invested our in-person quickly pivoted We as seamless as possible for our associates. changing to accommodate our virtual world, including and trainings events philosophy our DBS tools. Our continuous improvement of how we apply many the challenges of taking conferences, ensured that our teams were ready to tackle virtual with minimal disruption. and trainings team meetings, kaizen events - - -
by Chrystal Moore, Danaher Corporate associate Moore, Danaher Corporate Chrystal by Work from home from Work
plementing protocols consistent with U.S. Centers for Dis plementing protocols consistent with U.S. Health Orga and World (CDC) ease Control and Prevention guidance to safeguard our associates’ health. nization (WHO) Our Global Response Team Response Global Our monitors and manages actively Our Global Response Team business response and is responsible for im our COVID-19 including, where applicable, staggered work shifts and staggered work shifts and including, where applicable, required social distancing. protect our essential workers, who continued to do in- who workers, protect our essential face masks in all Danaher person work, we mandated other safety measures, facilities and increased commitment to protect our associates’ health and our associates’ health and commitment to protect remote work where feasible and mandated We safety. To on non-essential travel. implemented restrictions From the earliest days of the COVID-19 outbreak in outbreak in of the COVID-19 the earliest days From orders, global stay-at-home Wuhan, China, through remained steadfast in our Danaher has to today, OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC COVID-19 GLOBAL THE TO OUR RESPONSE
Associates Supporting Our Our Supporting
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 15 - - - has been a leader in this effort. In March, Cepheid launched the first rap has been a leader in this effort. In March, Cepheid best-in-class versus other point-of-care platforms on the market today, providing providing today, other point-of-care platforms on the market best-in-class versus time-to-results. As a testament superior virus detection with one of the fastest this global health crisis, the com to Cepheid’s continued commitment to tackle Food U.S. from the Emergency Use Authorization (EUA) recently received pany test, their Xpert Xpress SARS-CoV-2/Flu/RSV for (FDA) and Drug Administration four-in-one test for detection of the viruses causing molecular diagnostic a rapid Flu A, Flu B and RSV from a single patient sample. COVID-19, Enabling Critical Diagnostics Enabling of the global community’s at Diagnostic testing has been a critical component and curb the spread of COVID-19, tempts to better understand and ultimately Cepheid results within 45 highly accurate that provides id molecular test for COVID-19 that Cepheid’s test performance is minutes. Multiple independent studies indicate
203-1, 203-2 protect against COVID-19. GRI: Notably, many of our operating companies are directly companies are directly of our operating many Notably, effort to diagnose, treat and in the global involved environment and emphasized safety first to ensure our our and emphasized safety first to ensure environment on their commitments customers were able to deliver as well. were deemed essential even at the height of stay- were deemed essential even and field at-home orders. Our manufacturing teams quick to adapt to the new business were workers pandemic—especially their efforts to provide our our pandemic—especially their efforts to provide throughout customers with uninterrupted service critical roles, and most 2020. Our businesses serve We are immensely proud of our operating companies’ companies’ are immensely proud of our operating We the by responses to the challenges brought on
OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC COVID-19 GLOBAL THE TO OUR RESPONSE Champions for Our Customers Our for Champions
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 16 - - - - blood gas instruments and tests blood gas instruments and tests Radiometer’s to enable remote diagnosis using the company’s Ape using the company’s to enable remote diagnosis Surges in hospitalized patients being treated for COVID-19 have in have for COVID-19 Surges in hospitalized patients being treated creased demand for in the blood and carbon dioxide which measure the amount of oxygen to monitor in critically ill patients. With the largest parameters — key Radiometer is well-po global installed base of blood gas instruments, the COVID-19 sitioned to support clinicians and patients throughout pandemic. To help pathologists safely view and diagnose pathology cases from re help pathologists safely view To has permitted the FDA than in a hospital setting, mote locations rather Biosystems Leica This solution Scanner. DX Aperio AT2 Viewer and rio ImageScope DX the best and need to deliver pathologists with the tools they provides location. physical care for patients, regardless of most accurate - / CHAMPIONS FOR OUR CUSTOMERS FOR OUR / CHAMPIONS was the first company in the U.S. in the U.S. was the first company IgM and IgG serology assays determine if a patient determine if a patient IgM and IgG serology assays 203-1, 203-2 has developed an immune response to the SARS-CoV-2 virus. Antibody virus. Antibody an immune response to the SARS-CoV-2 has developed an important role in understanding im play could potentially assays the world’s ability to manage COVID-19 munity and, in turn, improving going forward. Beckman Coulter’s COVID-19. The company has produced primer and probe kits to enable and probe kits to enable has produced primer The company COVID-19. pursuant to the tests to be conducted in the U.S. more than 45 million testing protocol. CDC EUA Integrated DNA Technologies (IDT) (IDT) Technologies DNA Integrated component primer and probe kits for use as a key to offer ready-to-use and detection of testing protocol for the diagnosis of the CDC EUA GRI: OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC PANDEMIC COVID-19 GLOBAL THE TO OUR RESPONSE
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 17 - / CHAMPIONS FOR OUR CUSTOMERS FOR OUR / CHAMPIONS ’ viral RNA extraction kits and auto kits and RNA extraction ’ viral products and solutions are involved in in products and solutions are involved Cytiva’s is supporting scientists who are researching who are researching is supporting scientists and Pall 203-1, 203-2 labs and run initial on-site tests in a matter of weeks. labs and run initial on-site tests in a matter Pall’s Process Development Services team is helping customers scale Services team is helping customers scale Process Development Pall’s pace. In a up vaccine production processes at an unprecedented months, or the course of several place over process that normally takes equipment to the team has designed processes, delivered years, even customers with extensive technical expertise to enable breakthrough enable breakthrough to expertise technical customers with extensive and production capabilities. development companies well-positioned to help bring vaccines and therapies to to and therapies companies well-positioned to help bring vaccines and chromatography In addition to their filtration, faster. market teams provide innovative and Cytiva’s single-use technologies, Pall the majority of the more than 250 vaccine and therapeutic projects projects and therapeutic the majority of the more than 250 vaccine vaccine COVID-19 including every globally, currently underway and Cytiva’s Speed. Pall Warp Operation candidate that is part of U.S. both workflow make leading offerings across the bioprocessing As we look beyond testing, a global race is on to find effective on to find effective is testing, a global race As we look beyond for the virus. As of the date of treatments, vaccines and therapeutics this report, Supporting Vaccine & Therapy Development Therapy & Vaccine Supporting COVID-19 cellular response and vaccine development with microplate microplate with response and vaccine development cellular COVID-19 and cellular imaging systems. readers, washers, biopharma collected RNA is used in qRT-PCR kits to test whether the RNA from a from a kits to test whether the RNA in qRT-PCR collected RNA is used test result. or negative a positive virus is present, yielding Molecular Devices mation support research workflows related to COVID-19 real-time real-time related to COVID-19 research workflows mation support RNA from swab viral XP extracts Their RNAdvance Viral PCR testing. the After extraction, workflow. overall essential step in the samples, an Advancing Research Advancing Life Sciences Beckman Coulter GRI: OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC PANDEMIC COVID-19 GLOBAL THE TO OUR RESPONSE
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 18 , allowing them to more , allowing them to more provides support globally to support globally to provides is focused on ensuring vulnerable is focused on ensuring vulnerable partner organizations is the largest hunger-relief organization in the United the United is the largest hunger-relief organization in community during this difficult time. WHO: COVID-19 Solidarity Response Fund WHO: COVID-19 powered and respond to the pandemic. This fund is detect help prevent, the United Nations Foundation. by and No Kid Hungry the Children Save disruptions to access to food and on reducing severe families have school systems are closed. education in a time when many children’s America Feeding banks to secure enables food Response Fund States. Their COVID-19 of the members the most vulnerable to serve need the resources they Danaher also accelerated more than $200,000 of our planned than $200,000 of our planned more Danaher also accelerated 2020 giving to our manage their organizational priorities in response to effectively impacts. COVID-19 Our associates practicing good safety measures while at work. while good safety measures Our associates practicing • • • . coordinates with public health authorities, coordinates with public health authorities,
The Stop TB Partnership
203-1, 203-2 personal protective equipment (PPE) and essential equipment (PPE) and essential personal protective responding to COVID-19. medical items to health workers Direct Relief Direct to provide nonprofit organizations and businesses globally • million donation to four organizations on the front on the front million donation to four organizations relief: lines of COVID-19 through $1.5 Danaher and our associates made a combined countries and regions impacted by COVID-19. For For COVID-19. countries and regions impacted by donated 100,000 Xpert Xpress Cepheid example, tests molecular diagnostic virus rapid SARS-CoV-2 Since then, our community response has continued response has continued Since then, our community of medical instruments, testing to include donations services and equipment to supplies, and other companies were among the first to respond, donating the first to respond, donating companies were among in diagnostic equipment, reagents nearly $1.5 million to hospitals in Wuhan, China. and other products we have extended our financial support to nonprofit support to nonprofit our financial extended we have relief efforts. In on COVID-19 organizations focused Danaher operating of the pandemic, the early days In addition to caring for our associates and customers, for our associates and customers, In addition to caring OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC COVID-19 GLOBAL THE TO OUR RESPONSE GRI:
Communities Caring for Our Our for Caring
Danaher Sustainability Report 2020 OUR RESPONSE TO THE GLOBAL COVID-19 PANDEMIC 19 25 26 High Impact in Developing Markets High Impact in Developing Quality Product Medical Device 21 22 Highlights Future Defines Our Innovation INNOVATION Innovation Through Problems Solve Helping
Danaher Sustainability Report 2020 INNOVATION 20
Our technologies advance research, research, advance technologies Our the and protect human health improve of life quality enhancing environment, for a the foundation and setting today future generations. better world for
>$1.1 BILLION IN R&D IN 2019 INVESTED TOTAL PATENTS WORLDWIDE WORLDWIDE PATENTS TOTAL END OF 2019 THE AT 7,711 HIGHLIGHTS saving research, and protect our our and protect research, saving supplies. water and food global We develop leading-edge leading-edge develop We life- advance tools, diagnostic INNOVATION
Danaher Sustainability Report 2020 INNOVATION 21 in and the Biomedical and the Biomedical ) to develop a hospital- ) to develop Dascena BARDA Beckman Coulter’s DxH Early Sepsis Indicator detection algorithm, which uses to medical records, is expected conjunction with elements from patients’ electronic while reducing the total intervention help reduce sepsis mortality through earlier cost of care. to study pandemic, this partnership was expanded With the onset of the COVID-19 the majority of sepsis sepsis. Until recently, the early prediction of viral-induced has caused bacterial pathogens, and COVID-19 cases were thought to be caused by decisions for this condition. a shift in how clinicians approach treatment Advanced Research and Development Authority ( Advanced Research and Development This machine-learning-based sepsis wide diagnostic solution for sepsis prediction. Expanding Partnerships for Sepsis Prevention Sepsis for Partnerships Expanding 20- life-threatening condition that affects Sepsis is a difficult-to-diagnose, of almost and has a mortality rate year, every 30 million people worldwide substantial costs to healthcare patient consequences and 40%. Devastating global health concern. Through strategic sepsis a significant organizations make campaigns and, most importantly, and awareness partnerships, prevention of our groundbreaking technologies, Danaher’s Diagnostics the development these outcomes. a lead role in improving taken businesses have with In 2019, Beckman Coulter began a partnership
203-2 better world for future generations. and protecting the environment, our our the environment, and protecting of life technologies enhance quality and set the foundation for a today expectations. By advancing By advancing expectations. health human research, improving Innovation helps us meet— Innovation customers’ and exceed—our GRI:
Future Defines Our Our Defines INNOVATION Innovation
Danaher Sustainability Report 2020 INNOVATION 22 housed housed and more in the search for evidence of past of past and more in the search for evidence life on the red planet. Credit: NASA/JPL-Caltech on 2020 to Mars Headed XOS Rover Perseverance was Rover 2020 Perseverance NASA’s summer and is launched into space this to land on Mars in early 2021. expected role in the mission, a key is playing XOS with a custom supplying the rover focusing optic X-ray polycapillary in an instrument called PIXL at the end optic robotic arm. The XOS of the rover’s will be used in conjunction with six other instruments to measure compositions of various chemical elements in rocks, soils Innovation Innovation , an internal seed-funding , an internal seed-funding with regard to water use, chemicals and with regard to water use, chemicals and more and develop manufacturing, additive sustainable product packaging. Planet Business, invited associates to create associates to create Planet Business, invited business opportunities with significant and the environment impacts for positive customers. More than 1,300 associates 2 months. Six presented 125 ideas over teams were selected to participate in bootcamp and, an 8-week innovation a total of $3.8 million received ultimately, their ideas for up to in funding to execute 12 months. The funded projects include single-use plastics, to work with new ways perform remote factory acceptance manufacturing processes testing, improve Friendly Competition Yields Yields Competition Friendly Ideas Transformative launched In January 2020, Cytiva Accelerator created to source and scale in- program first challenge, Cytiva’s house innovation. , Zolgensma® / INNOVATION DEFINES OUR FUTURE DEFINES / INNOVATION 203-1, 203-2 the leading genetic cause of death for the leading genetic cause of death for infants. bioreactor. Zolgensma® is the first gene is the first gene Zolgensma® bioreactor. to treat children under the age of 2 therapy who suffer from spinal muscular atrophy— In 2019, Pall contributed to a breakthrough contributed to a breakthrough In 2019, Pall pediatric gene therapy, iCELLis using Pall’s which is manufactured Breakthrough Gene Therapy Therapy Gene Breakthrough Children for GRI: INNOVATION INNOVATION
Danaher Sustainability Report 2020 INNOVATION 23 / INNOVATION DEFINES OUR FUTURE DEFINES / INNOVATION policies and processes for identifying and protecting our our policies and processes for identifying and protecting intellectual property. misuse, during or after their employment, for Danaher and for Danaher and their employment, misuse, during or after property our customers. Associates who create intellectual company are required to follow Danaher and operating protect the company’s intellectual property. Relevant Relevant intellectual property. protect the company’s to training annual to take associates are required of unauthorized disclosure or understand the implications Protecting Our Intellectual Property Intellectual Our Protecting our duty to seriously take Danaher and our associates INNOVATION INNOVATION
Danaher Sustainability Report 2020 INNOVATION 24 High High , Cytiva is , Cytiva is Seeding Labs (HBDC) program, which which (HBDC) program, with partnership GeneXpert Systems and millions of Xpert cartridges GeneXpert Systems and millions of Xpert cartridges regions. to some of the world’s most TB-challenged with continues to expand Cepheid’s HBDC program cloud-based the additions of remote calibration, and additions to the data consolidation initiatives Xpert test menu. A New Life for Cytiva Equipment Cytiva for Life A New Through a Back Giving root. Cytiva’s ideas take helping great has facilitated Community initiative to the Science worth of well- $250,000 of over the donation researchers lab equipment to talented maintained since countries in 10 developing at 19 universities has helped researchers 2016. This equipment first large-scale study of Africa’s perform West fight the rapid drinking water, antibiotic residues in in disease among forestry workers spread of Lyme to administer life- easier ways and develop Ukraine Ghana. antimalarial medicines to children in saving Access Global Cepheid Enhances Cepheid is leading the charge against tuberculosis (TB), garnering support from major global partners New for Innovative including the Foundation and the Bill UNITAID Diagnostics, StopTB, USAID, Cepheid’s and Melinda Gates Foundation. Country Developing Burden thousands of launched in 2011, has delivered
102-6, 203-1,203-2 expand access to our innovative products. In products. In to our innovative access expand 2019, 32% of our sales came from developing markets. in these markets, developing products that products that developing in these markets, address local requirements, and improving partnerships to and our commercial strategies to offer a tremendous opportunity for impact. opportunity for impact. to offer a tremendous resources dedicated significant have We needs of populations to understanding the Our strategy for growth delivers breakthrough breakthrough for growth delivers Our strategy populations diverse that serve innovations continue markets around the world. Developing GRI:
Markets in Developing in Developing INNOVATION Impact High
Danaher Sustainability Report 2020 INNOVATION 25 FDA Registered Sites of Danaher’s Subsidiaries (as (as Subsidiaries Sites of Danaher’s Registered FDA 2020) of July Produced at Site) Highest-Risk Device by (Classified 102-12 based on the risk classification of the devices produced at the site. based on the risk classification of the devices GRI: points and illustrates that with few exceptions, our medical medical our with few exceptions, that points and illustrates as low or medium risk. The chart to the right are classified devices sites of Danaher’s subsidiaries categorizes the FDA-registered into, or applied to, the human body, which may carry greater risk greater risk carry which may into, or applied to, the human body, of injury to the human body. reflects these risk classification of our medical devices The FDA’s account results generated from our products, often with other from our products, often with other account results generated By comparison, many factors, in diagnosing and treating patients. that are implanted of our peers primarily produce medical devices of many of our medical device peers. Our medical devices consist consist peers. Our medical devices device of our medical of many organize and primarily of products used to collect, prepare, into take specimens in vitro. Medical professionals may examine around the world the ISO 13485 Medical Devices Quality Quality ISO 13485 Medical Devices around the world the Management System Standard (“ISO 13485”). portfolio differs from that The risk profile of our medical device with respect to the U.S. the Current Good Manufacturing the Current Good Manufacturing with respect to the U.S. Quality in the FDA’s requirements set forth (“CGMP”) Practices and in Europe and other countries Systems Regulation (“QSR”) by the FDA, and by similar agencies in other countries. Our in other countries. Our similar agencies and by the FDA, by to adhere to all manufacturing sites are required medical device regulations and requirements, including applicable quality system Danaher’s subsidiaries make and sell diagnostics, life sciences, diagnostics, life sciences, and sell make Danaher’s subsidiaries identification products and solutions. water quality and product that are regulated are medical devices Certain of these products Regulatory Framework & Our Risk Profile Risk & Our Framework Regulatory INNOVATION Quality Product Device Medical
Danaher Sustainability Report 2020 INNOVATION 26 - - - -
ANNUAL COMPLIANCE TRAINING COMPLIANCE ANNUAL are bolstered by The KPI and auditing controls described above requirements. All associates em GMP-specific annual training companies, including senior operating our medical device by ployed covering annual training management, are required to participate in the advertis governing GMP compliance, and compliance with laws ing and promotion of our products. cable regulatory requirements in their audit protocols, including as protocols, including as cable regulatory requirements in their audit Single Audit Device applicable the ISO 13485 standard and Medical audit func Danaher’s corporate (MDSAP) requirements. Program help ensure compliance tion also regularly audits our businesses to policies company’s with Danaher’s and the applicable operating and promotional pro advertising regarding responsible marketing, and training. cedures, and practices - - - - -
requires that the medical devices the medical devices requires that
/ MEDICAL DEVICE PRODUCT QUALITY PRODUCT DEVICE / MEDICAL Danaher Code of Conduct Danaher Code 417-1 countries, the corporate audit staff typically includes those appli countries, the corporate plier evaluation and monitoring, medical device reporting, recalls, reporting, recalls, monitoring, medical device and plier evaluation listings. With respect and device establishment registrations FDA regulators in other comparable regulated by sites to medical device Annually, Danaher’s corporate staff audits our sites registered with with staff audits our sites registered Danaher’s corporate Annually, regulations relating to Good for compliance with the FDA’s the FDA sup including product testing and (GMP), Manufacturing Practices ing company leadership. ing company PROGRAMS AUDIT CORPORATE adverse events. KPI goals are established for each medical device device KPI goals are established for each medical events. adverse help us meet our DBS tools to and we leverage company, operating these KPIs on a leadership reviews these goals. Danaher’s executive our operat by reviews regular basis, in addition to established QMS product and QMS performance, covering areas such as internal and and areas such as internal covering product and QMS performance, ac and preventive audits, supplier and internal corrective external clinical trials, recalls and defects, complaints, external tions (CAPAs), lar cadence key performance indicators (KPIs) designed to provide to provide performance indicators (KPIs) designed lar cadence key of our accountability and measure the health drive transparency, and post-market KPIs focus on pre-market QMS. These required REGULATORY, QUALITY, & CLINICAL AFFAIRS KPIS AFFAIRS & CLINICAL QUALITY, REGULATORY, and report on a regu companies to track require our operating We our medical device operating companies to drive the safety and the safety and companies to drive operating our medical device Below are highlights of of these products and services. effectiveness these standards and controls. we make and sell strictly comply with all applicable rules and rules and comply with all applicable and sell strictly we make Quality common we deploy ensure compliance, help To regulations. across standards and controls Systems (QMS) Management Centralized Compliance Standards & Controls & Standards Compliance Centralized The GRI: INNOVATION INNOVATION
Danaher Sustainability Report 2020 INNOVATION 27 FDA Inspection Results FDA / MEDICAL DEVICE PRODUCT QUALITY PRODUCT DEVICE / MEDICAL HC-MS-250a.1, HC-MS-250a.4 HC-MS-250a.1, SASB: The table to the right illustrates our FDA recall activity from 2017 recall activity from 2017 our FDA The table to the right illustrates significantly through 2019, with the number of recalls declining time. over the device which may present a risk to health. The FDA classifies classifies present a risk to health. The FDA which may the device III (lowest risk) recalls as Class I (highest risk), Class II or Class the recall. degree of health hazard posed by based on the relative mandated by the FDA. Recalls are required to be reported to the are required to be reported to the Recalls the FDA. mandated by posed by if the recall was initiated to reduce a risk to health FDA caused by a violation of applicable law or to remedy the device product from the market, depending on the nature of the issue issue depending on the nature of the product from the market, recalls are typically and the risk to public health. Medical device also be the manufacturer but may by conducted voluntarily Recalls from a labeling can include actions ranging recall A medical device of the or full removal change or an in-field correction to a partial through 2019. FDA may issue Form 483 Inspectional Observations, Warning 483 Inspectional Observations, Warning Form issue may FDA which list conditions or practices consent decrees, and/or Letters, requirements. The chart indicate a violation of the FDA’s that may from 2017 inspection performance our FDA to the right illustrates authorities audit) registered medical device sites using a risk- medical device authorities audit) registered into account the risk profile of the products based process, taking an inspection, the the site. In connection with manufactured by subject to inspection on a routine basis by the FDA and by similar similar and by the FDA basis by on a routine subject to inspection (and independent inspects FDA other countries. The agencies in regulatory non-U.S. by organizations designated certification Regulatory Inspections Regulatory are facilities our manufacturing manufacturer, device As a medical INNOVATION INNOVATION
Danaher Sustainability Report 2020 INNOVATION 28 include a supplier performance measurement process, supplier process, supplier include a supplier performance measurement action corrective performance monitoring process, supplier process and criteria process, supplier performance improvement suppliers are Where necessary, a supplier. qualify to effectively at the supplier to fix are deployed on DBS tools, which trained performance. The SQM both supports and problems and improve regulatory requirements, medical device applicable incorporates including supplier audits where required. Supplier Quality Management Quality Supplier Supplier Quality As noted, one of the DRS pillars is Danaher’s of SQM elements Management (SQM) system. The iterative / MEDICAL DEVICE PRODUCT QUALITY PRODUCT DEVICE / MEDICAL with the goal of driving world-class reliability. tracking and resolution. The DRS both supports and incorporates The DRS both supports and incorporates and resolution. tracking requirements described on the regulatory the medical device such requirements but goes beyond page as applicable previous DBS fundamental tools, and operates across the product lifecycle. across the product lifecycle. DBS fundamental tools, and operates design for reliability, It consists of six pillars: leadership focus on Supplier Quality Management, Manufacturing Process reliability, customer defect Control, customer service and support, and We deploy a common framework and suite of processes across our and suite of processes across our a common framework deploy We known product quality and reliability, drive companies to operating DRS is one of the as the Danaher Reliability System (DRS). The Danaher Reliability System Reliability Danaher INNOVATION INNOVATION
Danaher Sustainability Report 2020 INNOVATION 29 40 48 50 Coming Together at 2019 Black Leadership Summit Coming Together Diversity + Inclusion Diversity In Our Communities Safety 31 32 33 36 Highlights Our Team Potential Personal Professional Potential PEOPLE Potential their Reach People Helping
Danaher Sustainability Report 2020 PEOPLE 30 74% Internal Fill Rate Senior Leader in 2019 6.5% Turnover Global Voluntary in 2019 Our success is rooted in our people. people. in our is rooted success Our career and compelling offer unique We spanning with opportunities experiences six high-impact industries, multiple more than 20 operating continents and companies. YEAR 2025 GOAL 35% U.S. IN THE PEOPLE OF COLOR 2019 33% as of Year
401-1, 404-2
WOMEN (AS % OF TOTAL ASSOCIATES) % OF TOTAL (AS WOMEN 2019 35% as of Year YEAR 2025 GOAL 40% GRI: most ambitious goals. most HIGHLIGHTS that motivates us to achieve our our to achieve us motivates that unique missions and challenges. Yet, Yet, and challenges. missions unique Purpose Shared a united by are we We are a diverse team of people and and of people team diverse a are We with each companies, operating PEOPLE
Danaher Sustainability Report 2020 PEOPLE 31 by Geonyoung Kim, Cepheid associate Kim, Geonyoung Celebrating Holi “festival of colors” Holi “festival Celebrating
102-7
GRI:
39,000 U.S. OF THE OUTSIDE ASSOCIATES ASSOCIATES IN THE U.S. IN THE ASSOCIATES 21,000 60,000 OF 2019 END THE AT OF ASSOCIATES NUMBER belonging among our associates, we are creating our associates, we are creating belonging among good ideas where company a richly diverse abound. to success and gateways thrive globe to build and sustain our company. With With sustain our company. globe to build and a sense of inclusion and our focus on building Danaher is committed to attracting, engaging engaging to attracting, is committed Danaher the people from around the best and retaining PEOPLE Team Our
Danaher Sustainability Report 2020 PEOPLE 32 (the “say on pay proposal”). At Danaher’s proposal”). At Danaher’s on pay (the “say annual proxy statement annual proxy The goal of our executive compensation program is to build value for our shareholders. is to build value for our shareholders. compensation program The goal of our executive officers who build long-term shareholder to reward executive is designed The program Our annual business goals and maintain long-term careers with Danaher. value, achieve returns and tied closely to shareholder awards, emphasis on long-term equity program’s and holding periods, has been fundamental in attracting subject to significant vesting and them to build long-term careers with Danaher, encouraging skilled executives, performance through and financial sustainable operating motivating them to achieve shareholders an opportunity to cast an our provide We of economic cycles. a range officers, with respect to the compensation of our named executive annual advisory vote as disclosed in our of the say in favor cast were of the votes annual meeting of shareholders in 2020, 95% proposal. on pay Compensation tailored to compensation and benefits, are committed to offering competitive We compensation programs and performance. Danaher’s experience industry, geography, performance, associates, motivate and reward are designed to attract and practices compensation at Danaher includes base retention. In general, growth and support drive In addition, opportunity. or incentive salary and often some form of variable bonus long-term compensation in the form of Danaher equity certain associates receive awards. Compensate Executives We How
102-35, 102-37, 401-2 particularly in Europe where many associates are associates are particularly in Europe where many works councils. and/or unions represented by 300 were hourly-rated, unionized associates at unionized associates at 300 were hourly-rated, the company the end of 2019. Outside the U.S., bargaining collective has government-mandated in certain countries, contracts and union arrangements Collective Bargaining Collective associates, approximately Of Danaher’s 21,000 U.S. support our associates globally. associate can select from a range of physical fitness, fitness, of physical a range associate can select from programs emotional resilience and financial stability we according to his or her individual goals. In 2020, (EAP) to assistance program our employee expanded Danaher’s health and wellness benefits support our wellness benefits support our Danaher’s health and and respond to their needs. Each associates’ wellbeing Health, Wellness & Financial Stability Financial & Wellness Health,
GRI: Personal Potential Personal PEOPLE
Danaher Sustainability Report 2020 PEOPLE 33
and house’s ground floor was under 1.7 meters of water meters of water ground floor was under 1.7 house’s The electricity was days. and mud for two consecutive in the house, it was a out, and with a newborn baby leaders paid attention challenging situation. Pall informed me that monitored our condition closely … they It Fund. I was eligible for the Danaher Associate Relief and did help us to was really a blessing for our family, our normal life. mend our house and help us to recover and thank you.” thank you Thank you, SPOTLIGHT: SUPPORTING ASSOCIATES IN INDONESIA ASSOCIATES SUPPORTING SPOTLIGHT: flooding Jakarta, Indonesia was hit with devastating nearly 200,000 people in on January 1, 2020, leaving Fund emergency shelters. Danaher’s Associate Relief facility filtration was ready to help associates from Pall’s “Our who were impacted. According to one associate, to its list of family-friendly benefits for to its list of family-friendly benefits for Maven / PERSONAL POTENTIAL 203-2, 401-2, 401-3 mental health. GRI: In 2020, Danaher added offers around-the- and Puerto Rico. Maven Canada associates in the U.S., step of parenthood—from fertility treatments and clock support for every and return to work, to breast milk shipping and adoption, to maternity leave expatriates up to 8 weeks of 100% paid leave within the first year of a child’s of a child’s within the first year up to 8 weeks of 100% paid leave expatriates birth, adoption or foster care placement. Family Friendly Benefits & Parental Leave Parental Benefits & Friendly Family U.S. and policy offers new parents in the U.S. Danaher’s paid parental leave has provided more than $3 million in scholarship awards to support the to support the $3 million in scholarship awards more than has provided generation. growth and potential of our next development, based on academic record, demonstrated leadership, participation in school leadership, participation in school based on academic record, demonstrated a statement of and and community activities, honors, work experience, its inception, the Danaher Scholarship Program Since goals and aspirations. education costs for Danaher families. In 2019, we helped fund the academic academic families. In 2019, we helped fund the education costs for Danaher around children at colleges and universities pursuits of 75 of our associates’ selected new scholars and 53 renewals—were the globe. The recipients—22 Danaher Scholarship Program Scholarship Danaher the financial burden of higher helps reduce Program The Danaher Scholarship supplements support they may receive from other organizations, such as the other organizations, such as the from receive may they supplements support Red Cross. to-associate giving in the aftermath of a natural disaster. Primarily funded funded Primarily disaster. of a natural giving in the aftermath to-associate from Danaher and our contributions donations, with additional associate by who our own associates to support the fund exists companies, operating and disaster, after a natural be facing financial hardship immediately may Associate Relief Fund Relief Associate facilitates associate- Associate Relief Fund 2019, the Danaher Launched in PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 34 community and making a lasting impact Beckman Coulter associates giving back to the Beckman Coulter associates giving back to the / PERSONAL POTENTIAL 203-2, 401-2 GRI: volunteerism with team volunteer days and and days volunteer with team volunteerism time off. volunteer and home. Danaher operating companies, companies, and home. Danaher operating and Cepheid, Esko including Beckman Coulter, support their associates’ commitment to IDT, workplace. They know that time spent in the the know that time spent in workplace. They the perspective, service of others provides that makes focus and inspiration gratitude, at work productive them happier and more Volunteer Time Off Volunteer in and out of the Our associates are helpers PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 35 90% Professional associates with a plan at the end of 2019 development 404-2, 404-3 GRI: approach to talent development includes a mix of on-the-job learning (70%), coaching includes a mix of on-the-job learning (70%), coaching approach to talent development (10%). (20%), and leadership and DBS training From individual contributors to managers and senior leaders, we help our associates we help our associates individual contributors to managers and senior leaders, From opportunities. Our typical career development realize their full potential with meaningful Learning & Development Learning PEOPLE Potential Professional
Danaher Sustainability Report 2020 PEOPLE 36 This year, Lindsay moved into her current role current role into her moved Lindsay This year, as Global Vice President, DBS, Videojet where skill set and broad her diverse she can employ “The says, knowledge on a daily basis. Lindsay to grow and change able fact that I’m always me here. new challenges is what keeps and have I can add value to the business in I feel like times.” at different different ways ASSOCIATE SPOTLIGHT: LINDSAY GALAS LINDSAY SPOTLIGHT: ASSOCIATE Galas joined Videojet in 2012 as a Lindsay after Manager Marketing Global Vertical banking and earning her working in investment Manager General MBA. Through Danaher’s has Lindsay (GMDP), Program Development rotated through the business and partnered to DBS, with mentors, gaining exposure product management, consumables strategy, a part and customer care. She has also played marketing, in Videojet’s in major transitions strategies. service and customer experience A Programs Programs Our 12-month “Learn-Do- and change, and talent management and change, and talent management skills. Champion Orientation and Executive Orientation: DBS Leadership Danaher Leadership Program: Program: Danaher Leadership new-to-role General course to provide with Managers and Presidents and skills foundational knowledge around Danaher’s Core Value framed and leadership competencies. Drivers Development Leadership Functional Program: and helps commercial program Teach” solid DBS support leaders develop coaching, prioritization Fundamentals, that immerse new leaders in the DBS that immerse new leaders in the DBS culture through the introduction of DBS fundamentals and hands-on with DBS tools. experience • • • A An A skills- / PROFESSIONAL POTENTIAL / PROFESSIONAL 404-2 Accelerated Learning Program: Learning Accelerated high- course focused on developing potential leaders, their teams and their future results. organization to drive and bring out the best in their people. and bring out the best Performance: Maximizing Leadership A course designed to help mid-level leaders become more effective managers. new managers in developing winning winning new managers in developing teams. Coaching Essentials: designed program based training accelerate to help people leaders performance improve development, Leadership Essentials: Leadership supporting introductory boot camp GRI: practitioners, who undergo formal train-the-trainer programs before receiving before receiving programs formal train-the-trainer who undergo practitioners, major every covering practitioners certification. Danaher has more than 650 certified region in which we operate. Many of Danaher’s learning programs are facilitated by our own certified certified our own are facilitated by programs of Danaher’s learning Many • • • • provide our associates at all levels with the skills and knowledge to succeed at Danaher. at Danaher. and knowledge to succeed with the skills associates at all levels our provide curriculum include: Development Leadership of Danaher’s Select examples We believe that on-the-job learning and direct coaching provides our associates with with our associates provides coaching and direct learning on-the-job that believe We this complement We opportunities. development and impactful the most consistent designed to and learning curriculum development with a robust leadership daily learning PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 37 / PROFESSIONAL POTENTIAL / PROFESSIONAL 404-2 GRI: kaizens and bootcamps. kaizens and bootcamps. system (LMS) to serve as the hub of our associates’ learning and as the hub of our associates’ learning and system (LMS) to serve learning platform, Danaher Using Workday’s journey. development access to numerous digital learning courses and DBS associates have Learning Management System Management Learning management In 2020, Danaher launched a global learning formal classroom-style training, peer best-practice sharing and sharing and peer best-practice training, formal classroom-style learning through kaizens. engagement, and action at Danaher. DBSU provides a wide variety of learning opportunities, variety of learning opportunities, a wide DBSU provides at Danaher. the world (U.S., locations around both virtually and at physical and offering span The DBSU curriculum China, India and Germany). Learning DBS Learning helps associates (DBSU) University Danaher Business System results and capabilities needed to drive DBS competencies develop PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 38 95% Associates who performance received in 2019 reviews +17 POINTS PERCENTAGE Direct supervisor effectiveness BETWEEN 2013 AND 2019: BETWEEN +19 POINTS PERCENTAGE Associate engagement Performance for Growth for Performance for Growth process Our Performance performance-based supports our ensuring that high- rewards system, associates are recognized performing The process for their contributions. managers to provide also encourages feedback ongoing, real-time performance to ensure associate throughout the year success and development. Engagement the best workplace focuses on developing Our engagement strategy conduct an We day. and leaders to meet our associates’ needs every to measure our progress and are proud to annual engagement survey of meaningful progress report that 2019 results reflect another year In of improvement. year and our sixth consecutive on this journey, and Danaher’s survey, 2019, 92% of associates participated in the across all dimensions. score improved Senior leader internal Senior leader in 2019 rate fill 74% / PROFESSIONAL POTENTIAL / PROFESSIONAL 404-2, 404-3 GRI: Consortium, for example, is a key partnership for our early-career our early-career partnership for is a key Consortium, for example, and helps infuse a consistent and reliable talent acquisition strategy the company. flow of underrepresented MBA talent into underrepresented talent throughout the company. We partner partner We underrepresented talent throughout the company. Society of Women with the National Black MBA Association, the of Black Engineers Engineers, Reaching Out MBA, National Society partnership with The and The Consortium, among others. Danaher’s human resources. human resources. is focused on increasing acquisition strategy talent Danaher’s diverse support the next generation’s long-term career aspirations. We partner partner We long-term career aspirations. generation’s support the next internship and leadership with organizations to support our university management and general STEM, in operations, programs development Our team focuses on identifying, attracting and recruiting diverse recruiting diverse and identifying, attracting Our team focuses on needs across the talent to meet current and future business is particularly important organization. Bringing in early-career talent meaningful opportunities for us to provides as it for the company Talent Recruitment Talent Danaher career moves with full support with full support Danaher career moves senior leadership. from their manager and possible. Danaher Go is our commitment to is our commitment to possible. Danaher Go from within. Our hiring and growing careers this commitment internal policy champions empowering associates to pursue intra- by 1,000 available career opportunities across across career opportunities 1,000 available to fill our open roles strive We Danaher. whenever talented associates with our own Danaher Go Danaher than be more time there may one At any PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 39 405-1 GRI: and inclusivity, we maximize the unique we maximize the unique and inclusivity, to and fresh ideas necessary perspectives fuel our growth and ensure innovation, drive effectively our technologies and products a global customer base. serve PEOPLE + Diversity Inclusion is to continuously aspiration our At Danaher, inclusive and and sustain a diverse improve systemic bias and create a work culture free of all associates can bring in which environment to work. their true selves inclusion (D+I) and know that diversity We real are essential to our success because that think breakthroughs come from teams to be heard and all voices big, encourage By building perspectives. learn from diverse in diversity and maintaining a culture rooted
Danaher Sustainability Report 2020 PEOPLE 40 by Robert Winter, Danaher Corporate associate Danaher Corporate Winter, Robert by Hope - Black Lives Matter March Hope - Black Lives / DIVERSITY + INCLUSION 102-15, 405-1 GRI: goals. As a first step, we have established goals to improve gender representation gender representation established goals to improve goals. As a first step, we have and will use our progress against these of Color in the U.S. globally and People efforts. goals to help assess the progress of our D+I Our diversity and inclusion journey began many years ago, and we now believe ago, and we now believe years began many journey and inclusion Our diversity representation diversity the structure and planning in place to set 5-year we have At Danaher, metrics, in tandem with the rigor and focus of DBS, are vital tools that of DBS, are vital tools that metrics, in tandem with the rigor and focus At Danaher, progress. our accountability and quantify our drive populations around the globe. It is the right thing to do. We know a diverse know a diverse We is the right thing to do. around the globe. It populations population reflects ensuring our associate by strengthens Danaher workforce create more innovative work teams diverse base. In addition, our broad customer we serve. to better meet the needs of the marketplaces solutions and products Diversity Metrics Diversity teams and associate of our leadership increase the diversity aspire to We PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 41 The Human Being The Human Being in collaboration with hip-hop legend legend with hip-hop in collaboration . Ultra Black Ultra feed. Instagram , a line of merchandise created to engage, educate and and , a line of merchandise created to engage, educate Initiative from All proceeds equality. empower the public in support of racial sales directly benefit the work of the The Human Being Initiative American Civil Liberties Union and profound beauty of Black culture. to form Up Bear with designer Fuzzed Partnered Created the color Nas’ hit song of the same name, is an by Black, inspired Nas. Ultra richness, complexity electrifying, unifying force representing the To learn about other initiatives Pantone supports, browse the the supports, browse Pantone about other initiatives learn To company’s • OPCO SPOTLIGHT: SOCIAL MEDIA FOR SOCIAL JUSTICE SOCIAL MEDIA OPCO SPOTLIGHT: is followers and counting, Pantone With 2.7 million Instagram and against intolerance committed to using its platform to stand up Pantone: year, support social justice around the world. This • the company’s D+I strategic direction; D+I strategic the company’s accountability measures for the company; and accountability measures for the company; operationalize D+I initiatives and programming and programming D+I initiatives operationalize / DIVERSITY + INCLUSION 102-12, 102-20 Creating Helping companies. across all of our operating Overseeing GRI: engage directly in D+I programming. Danaher’s Board of Directors reviews and provides input input and provides Danaher’s Board of Directors reviews Our Board at least annually. on Danaher’s D+I strategy to opportunities during the year members also have • • • Vice President of Diversity and Inclusion, several Danaher Danaher and Inclusion, several Vice President of Diversity from each of officers and representatives executive Danaher’s platforms, is responsible for: Danaher. which includes + Inclusion Council, The Danaher Diversity President of Human Resources, Danaher’s Senior Vice Danaher’s President & CEO is a signatory to the CEO CEO is a signatory to the CEO Danaher’s President & a clear & Inclusion pledge, setting Action for Diversity regarding D+I’s critical importance to “tone at the top” they are responsible for developing and managing managing and are responsible for developing they as well as supporting programming our D+I strategy In addition, that advance that strategy. and initiatives Danaher’s Senior Vice President of Human Resources of Human Resources Senior Vice President Danaher’s is led and Inclusion, which the Office of Diversity oversees and Inclusion. Together, our Vice President of Diversity by D+I Strategy & Oversight D+I Strategy PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 42 - - identify as the target demographic and eligible “& Friends” to aid to aid Friends” and eligible “& identify as the target demographic outside of in geographies to launch ARGs expect in inclusion. We North America soon. that help under- offer mentoring and coaching programs Our ARGs and with themselves represented talent forge connections among professionals. One a broad group of Danaher leaders and outside which coaching program, ARG & Friends is the Women example for women to access one-on-one coaching an opportunity provides professional. with a licensed career development All ARGs share a common charter: share a common All ARGs en by Purpose Shared enhance Danaher’s “To po full their realizing associates are suring of the representation increasing while tential the of levels all at talent diverse high-potential organization.” associates who are currently open to North American exempt ARGs Beaming with PRIDE / DIVERSITY + INCLUSION 405-1 Asian Descent & Friends Latinx & Friends & Friends LGBTQ & Friends Women African Descent & Friends GRI: • • • • • Mentoring Resource Groups (ARGs). Associate Danaher has five Associate Resource Groups & Diverse Talent Talent & Diverse Groups Associate Resource Inclusive Teams, our global diversity and inclusion training that that and inclusion training our global diversity Teams, Inclusive to identify and understand the impacts of teaches associates how is and mitigate personal bias. The course D+I, and how to recognize in 13 languages. available globally and deployed Danaher’s suite of leadership development courses includes courses includes development Danaher’s suite of leadership creating leader on unconscious bias and targeted D+I training 2019, Danaher launched Growing In accountability for diversity. D+I Training D+I PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 43 / DIVERSITY + INCLUSION 405-1 leaders, and recruiting diverse talent into Danaher at all levels, leaders, and recruiting diverse culture through the rollout of D+I training Building an inclusive of Trust, and Speed Teams Inclusive such as Growing programs, teams, and to help leaders foster inclusive to Europe. Extending ARGs Increasing women in managerial roles through development, development, Increasing women in managerial roles through potential mentorship, sponsorship and coaching to elevate GRI: • • • developing a regional D+I action plan and has identified three a regional D+I action plan and has identified three developing initial focus areas: Leaders from Danaher’s operating companies across Europe have Europe have companies across from Danaher’s operating Leaders our diversity to accelerate Force D+I Task formed the European directly to Danaher’s in Europe. Reporting and inclusion journey Council, the task force is charged with EU Board and the D+I Asia. Topics spanned work-life balance, career opportunities and balance, career opportunities and spanned work-life Asia. Topics from role models. visibility and learning Leadership Summit in Shanghai, China. More than 100 women China. More than 100 women Summit in Shanghai, Leadership came to network, and South Korea leaders from China, Japan women face at Danaher and in North learn and reflect on issues experience inclusion in ways that are relevant to their geography to their geography that are relevant inclusion in ways experience and culture. the first Danaher North Asia Women’s In 2019, Danaher hosted Diversity + Inclusion Around the World the Around + Inclusion Diversity an effort to ensure associates in our D+I initiatives localize We PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 44 / DIVERSITY + INCLUSION 405-1 GRI: focused on organizations supporting Black communities. In total, communities. In total, focused on organizations supporting Black companies and our associates committed our operating Danaher, more than $500,000 to four non-profits: continue to review internal practices and act upon experiences and act upon experiences internal practices continue to review culture. inclusive unique to our Black associates to ensure an with a giving campaign our support also publicly expressed We Together with our operating companies, we are working to inspire, to inspire, companies, we are working with our operating Together personal commitments managers to make engage and activate all We organization. and inclusive truly diverse to build and sustain a support to the Black community. these issues and created elevated we have Within Danaher, learning, listening and support. opportunities for associate peace. Danaher, like many global companies, has been reflecting been reflecting global companies, has many like peace. Danaher, and injustices in the U.S., of racial on the most recent examples visible tangible, and provide to amplify Black voices working we’re Danaher emphatically supports our Black colleagues and the and the our Black colleagues supports Danaher emphatically equality and for respect, justice, community in calling entire Black Supporting Our Black Associates Black Our Supporting PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 45 Human Rights Human Rights (HRC), the largest LGBTQ+ civil rights organization in in civil rights organization LGBTQ+ the largest (HRC), / DIVERSITY + INCLUSION 102-12 GRI: discrimination workplace protections, domestic partner benefits, partner benefits, discrimination workplace protections, domestic health care benefits, competency programs transgender-inclusive community. and public engagement with the LGBTQ+ Campaign Corporate Equality Index (CEI) named Danaher named Danaher (CEI) Equality Index Campaign Corporate The CEI Equality. for LGBTQ+ one of the Best Places to Work including non- policies and practices LGBTQ+-related evaluates Campaign workplace for LGBTQ+ we are building a more inclusive the U.S., the 2019 Human Rights in a row, year the sixth associates. For that sexual orientation and gender identity discrimination are discrimination are orientation and gender identity that sexual VII of the Civil Rights Act. prohibited under Title partnership with the Through our longstanding shown our support for our LGBTQ+ associates and the community the community associates and our LGBTQ+ shown our support for Supreme briefs in important U.S. amicus signing several by affirming supported cases we have Court cases. Most recently, Danaher is committed to speaking out against discrimination out against discrimination committed to speaking Danaher is we have the past decade, Over in our communities. and injustice LGBTQ+ Equality LGBTQ+ PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 46
by Jennifer Mitros, Videojet associate Jennifer by West Dundee Riverwalk along the Fox River River along the Fox Dundee Riverwalk West outlines our associates’ obligations to help detect and prevent detect and prevent outlines our associates’ obligations to help
Code of Conduct protect the rights and dignity of everyone with whom we do business. with whom we do protect the rights and dignity of everyone in the operations of our business partners to their manager, or through our Speak or through our Speak business partners to their manager, of our in the operations Up! Hotline. customers and with one another, Respecting human dignity in daily interactions business partners. and inclusion, accommodating disabilities and helping Promoting diversity Reporting any suspicion or evidence of human rights abuses in our operations or or of human rights abuses in our operations or evidence suspicion Reporting any • • • Our human rights abuses, including: practices, freedom of association, privacy, collective bargaining, immigration, bargaining, immigration, collective freedom of association, privacy, practices, compulsory forced labor, prohibiting hours as well as laws working time, wages and will not We discrimination and human trafficking. employment labor, child labor, the abuse of human rights in our operations. tolerate and supporting efforts to protect human rights around the world. and supporting efforts to fair employment pertaining with all applicable laws Our policy is to comply Anti-Discrimination person to upholding the dignity of every we are committed As a global company, Human Rights & & Rights Human PEOPLE PEOPLE to Commitment
Danaher Sustainability Report 2020 PEOPLE 47 community engagement. To the right are some of the partners the right are some of the partners community engagement. To supports. the Foundation GRI:203-1, 203-2 quality of life around the world. The Foundation’s financial financial quality of life around the world. The Foundation’s healthcare support focuses on four areas: STEM education, disaster preparedness/ and diversity, research and discovery, Corporate Partnerships direct financial we provide Through the Danaher Foundation, vision of improving support to organizations that advance our and administer programs that are important to their are important to their that and administer programs particular stakeholders. by engaging in charitable partnerships, team events, engaging in charitable partnerships, team events, by addition to corporate and more. In local fundraisers companies fund of our operating many initiatives, We believe in being a good steward of the communities the communities in being a good steward of believe We and work. Danaher and our operating in which we live communities companies routinely support our local PEOPLE Communities In Our
Danaher Sustainability Report 2020 PEOPLE 48 , an organization focused on improving access to access to , an organization focused on improving Adream families during the COVID-19 pandemic. With themes of wonder, pandemic. With themes of wonder, families during the COVID-19 their work to future and home, our associates’ children submitted A curated in our Adream Virtual Auction & Art Gallery. be displayed with pieces is featured in a 2021 calendar, collection of the children’s’ online sale proceeds donated to Adream. Kids Go Virtual for Charity in China Charity for Virtual Kids Go companies in China have Danaher’s operating the past four years, For supported our of China. This year, quality education for children in remote parts a dual purpose: celebrating virtual to serve went annual fundraiser and engaging our associates and their Day, International Children’s . This year, Danaher provided Danaher provided . This year, to guide users through CPR in life-or- Invention Convention Invention CPR smart glove / IN OUR COMMUNITIES / IN OUR 203-1, 203-2 GRI: death situations. or healthy living. The winner of the 2020 Danaher Innovation in in of the 2020 Danaher Innovation living. The winner or healthy who Davis, Ana-Lois Award was eighth-grader Medical Technology the developed 32 judges for the U.S. national competition and sponsored the competition and sponsored the national 32 judges for the U.S. Award to recognize a student who Technology in Medical Innovation medical technology has successfully addressed a problem in health, Every year, over 100,000 students from around the world submit from around the world submit 100,000 students over year, Every to The Henry life-changing inventions and sometimes creative Museum’s Ford Showing Heart at the Invention Convention the Invention at Heart Showing PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 49 , a DBS virtual tool that , a DBS virtual tool that kamishibai Incorporated controls for hazards controls for hazards Incorporated with the potential for serious and expanded injuries or fatality, tools for managing exposures. of DBS Energy Began development Management Toolkit. 2020 2016 2018 Expanded use of the DBS Energy Expanded use of the DBS Energy worldwide, Management Toolkit began process of certifying associates in Energy as Certified Practitioners Management, and started pilot testing Minimization tool. a DBS Waste Introduced layered EHS self-audits EHS self-audits Introduced layered and good safety, helps sustain operational and fire protection housekeeping, systems and controls. 2017 2019 2015 Toolkit. workplaces. certification. training and certification. and training Initiated Energy Management Initiated Energy Management Began implementing DBS Energy Began implementing DBS Energy Launched 4E EHS Hazard Control Launched 4E EHS Hazard Control Initiated 4E Certified Practicioner Initiated 4E Certified Practicioner Certified Practitioner training and and training Certified Practitioner consumption at our major facilities. consumption at our major facilities. into our Daily Management process into our Daily Management process to reduce exposure to hazards in our to hazards in our to reduce exposure Management Toolkit to reduce energy to reduce energy Management Toolkit Our 4E Toolkit 4E Our assess tools enables our associates to identify, This DBS-based set of to the four Es: ergonomics, energetics, and control hazards related built, have we the past 5 years, Over and environment. exposures of management tools. and refined our 4E portfolio expanded Introduced leading EHS indicators, such Introduced leading EHS indicators, such as “near misses” and safey observations, observations, as “near misses” and safey -
403-1, 403-2, 403-9 Incident rates are defined as the number of work-related injuries or illness cases serious are defined as the number of work-related injuries or illness cases serious Incident rates Days Away, Restricted or Transferred are defined as the number of work-related inju Restricted or Transferred Away, Days worked. GRI: enough to require treatment beyond first aid, per 200,000 hours worked. enough to require treatment beyond 2 being restrictions, working with physical ries or illness cases that result in an employee to other work, per 200,000 hours from work or unable to do their job or transferring away 1 and other emergencies. and facilities. Our emphasis on improving our crisis management our crisis management on improving and facilities. Our emphasis financial plans helps ensure the physical, and business continuity disasters of our associates during natural and emotional wellbeing Each of our operating companies has processes to protect our to protect our companies has processes Each of our operating hazards and assure from fire and natural associates and facilities to safeguard our teams invest continually We business continuity. Protecting Our Associates Our Protecting coming to work, and that they leave safe and healthy at the end of every shift. We are proud that workplace safety consistently consistently workplace safety are proud that shift. We the end of every at safe and healthy leave work, and that they coming to the top-quartile 2019 safety score exceeded Our Survey. Associate Engagement scores in our annual the highest receives began in 2013. our survey since year every and has increased global clients administrator’s of our survey benchmark Safety good about our associates feel safety to ensure emphasize workplace We in our culture. safety is deeply embedded Associate PEOPLE
Danaher Sustainability Report 2020 PEOPLE 50 companies use the BCP tools to implement their strategies for for their strategies companies use the BCP tools to implement and customers. minimizing impact to our facilities, associates BETWEEN 2010 AND 2019, OUR AND 2019, 2010 BETWEEN REDUCED COMPANIES OPERATING WORKPLACE (TRIR) INCIDENT DANAHER’S 60%. OVER BY (DART) RATES AND INJURY Facilities Our Protecting Interruption Analysis (BIA) and Danaher maintains Business (BCP) tools and templates that are used Business Continuity Plan their resilience, and by newly acquired businesses to improve by and companies to guide change management operating existing our In particular, sustain protections against business interruption. between the BIA tools guide an assessment of interdependencies an company; operating manufacturing facilities within a particular and other impacts of the analysis of the financial, product delivery for a maximum foreseeable period of time; facility loss of a given loss to minimize the impact of such of strategies and development products to our customers. Our operating on our ability to provide establishes the core the core establishes / SAFETY Environment, Health and Safety policy Health Environment, 403-1, 403-2, 403-9 GRI: these risks and sustain past improvements. of our facility design, construction and modification processes to processes to of our facility design, construction and modification In and earthquake. protect our facilities against fire, flood, wind to further reduce addition, each major facility has an action plan facility risk multiple times each year. facility risk multiple times each year. as a standard element engineering best practices also employ We facilities on a semi-annual basis, assessing 16 criteria against four basis, assessing 16 criteria against four facilities on a semi-annual set risk reduction targets teams of performance. Facility-level levels their scores. Senior leaders and maintain action plans to improve of assess our levels company from Danaher and each operating We revised our EHS risk assessment process in 2016 to place risk assessment process in 2016 to place our EHS revised We risk and using DBS to operational greater emphasis on controlling to each of our major assign an EHS risk score manage EHS risk. We EHS Risk Management Process Management EHS Risk Our operating companies put our policy into practice, using DBS using DBS practice, companies put our policy into Our operating and to sustain EHS requirements into their operations to integrate results. Our are built. programs which our EHS management principles upon Environment, Health & Safety (EHS) Policy & Safety Health Environment, PEOPLE PEOPLE
Danaher Sustainability Report 2020 PEOPLE 51 56 58 26 by Feng Zhong, SCIEX associate Feng by Common Merganser- Female - Rattray Marsh, Ontario - Rattray Common Merganser- Female DBS & The Environment Quality Business Our Water Contributing to a Greener Future 53 54 55 Highlights Impact Our Approach to Environmental & Goals Metrics Environmental ENVIRONMENT the Environment Protect Helping
Danaher Sustainability Report 2020 ENVIRONMENT 52 REGULATED WASTE SENT TO TO SENT WASTE REGULATED LANDFILLS OR INCINERATION YEAR 2024 GOAL 15% IN PERCENTAGE REDUCTION OF NON-HAZARDOUS/ NON- Danaher and its operating companies are are companies its operating and Danaher environmental on reducing the focused products. and our of our operations impact a long history have companies Our operating sustainability environmental of enacting initiatives. and other green programs EMISSIONS from (normalized to annual revenue continuing operations) YEAR 2024 GOAL 15% IN SCOPE 1 AND REDUCTION (GHG) GAS 2 GREENHOUSE
CONSUMED from (normalized to annual revenue continuing operations) 15% IN ENERGY REDUCTION YEAR 2024 GOAL HIGHLIGHTS operations and products, and products, and operations the same. customers do our helping We focus on reducing the the on reducing focus We of our impact environmental ENVIRONMENT
Danaher Sustainability Report 2020 ENVIRONMENT 53 by Jake Ford, Pall Medical associate Pall Ford, Jake by Raincloud over Great Barrier Reef Great Raincloud over services. ENVIRONMENT Approach to Our Environmental Impact are committed to reducing the environmental We products, and to and impact of our operations operating helping our customers do the same. Our a long history of leading environmental companies have and other green initiatives, and sustainability programs efficient technologies, processes and more developing
Danaher Sustainability Report 2020 ENVIRONMENT 54
Metrics and Targets
102-15, 302-1, 302-3, 302-4, 303-1, 303-5, 305-1, 305-2, 305-4, 305-5, 306-3, 306-4 305-4, 305-5, 306-3, 306-4 102-15, 302-1, 302-3, 302-4, 303-1, 303-5, 305-1, 305-2, TCFD: TCFD: GRI: compared to 2019 performance): compared to 2019 In 2020, the Danaher leadership team committed team committed Danaher leadership In 2020, the impact environmental 5-year to the following performance goals (based on 2024 reduction ENVIRONMENT & Goals Metrics Environmental REDUCTION IN PERCENTAGE OF NON-HAZARDOUS/ OF NON-HAZARDOUS/ IN PERCENTAGE REDUCTION LANDFILLS OR TO SENT WASTE NON-REGULATED INCINERATION YEAR 2024 GOAL (normalized to annual revenue from continuing operations) from continuing operations) (normalized to annual revenue 15% REDUCTION IN SCOPE 1 AND 2 GREENHOUSE IN SCOPE 1 AND 2 GREENHOUSE REDUCTION (GHG) EMISSIONS GAS YEAR 2024 GOAL 15% REDUCTION IN ENERGY CONSUMED IN ENERGY REDUCTION from continuing operations) revenue (normalized to annual 15% YEAR 2024 GOAL
Danaher Sustainability Report 2020 ENVIRONMENT 55 by Rahul Baghla, SCIEX associate Rahul by Fluke-up Dive Fluke-up , or waste, from our processes. In setting , or waste, from our processes. In setting muda create two DBS Environmental Sustainability Toolkits. The benefits of these toolkits to The benefits of these toolkits to Toolkits. Sustainability create two DBS Environmental helped reduce our cost have and they are significant and measurable, our environment of operations. environmental impact reduction goals, we naturally turned to DBS to help turned to DBS to help impact reduction goals, we naturally environmental our success. and drive our approach operationalize and processes to DBS tools most effective Beginning in 2018, we took some of our DBS helps our teams remove DBS helps our teams remove ENVIRONMENT Environment The & DBS
Danaher Sustainability Report 2020 ENVIRONMENT 56 e 2 e. 2 in annual savings and 10,844 metric tons of CO and in annual savings more than 50 of has implemented reduction. Pall $1 million in annual these projects, realizing over reducing annual carbon and energy cost savings tons CO 6,000 metric emissions by SPOTLIGHT: GETTING STARTED AT HACH AT GETTING STARTED SPOTLIGHT: helped Hach’s Management Toolkit The DBS Energy identify teams Colorado, and Loveland, Ames, Iowa, from savings in potential annual $150,000 over opportunities. energy reduction the DBS Waste employed The Ames facility also an inefficient quality to address Minimization Toolkit disposal of hazardous control process that required be contaminated. The team’s samples suspected to the need to dispose of rigorous analysis eliminated reducing hazardous waste quality control samples, 4 tons. by generation PALL PROGRESS AT SPOTLIGHT: the DBS Energy Management has deployed Pall and Ilfracombe, at its facilities in Portsmouth Toolkit Germany; UK; Hoegaarden, Belgium; Crailsheim, Florida. Richey, Timonium, Maryland; and New Port Kaizen teams identified nearly 100 opportunities with a potential for $2.7 million for improvement, Pall’s Cortland, New York, and Timonium, and Timonium, Cortland, New York, Pall’s Waste Maryland, sites also recently piloted the DBS reducing the amount of waste- Minimization Toolkit, $125,000. over saving 30% and to-landfill by —the physical location where work gets done—to location where work gets done—to —the physical gemba Systematically execute the action plan. Measure the impact and the action plan. Measure the impact and Systematically execute Go to / DBS & THE ENVIRONMENT & THE / DBS Collect and analyze electricity and gas usage data. Establish long- Collect and analyze electricity Monitor performance at regular intervals, keep stakeholders engaged engaged stakeholders keep Monitor performance at regular intervals, 302-4 Sustain: action plan. and add new opportunities for impact to the identify and map all systems, processes and pieces of equipment that use that use processes and pieces of equipment identify and map all systems, and checklists in the Energy gas. Use the guidelines electricity and natural to identify and prioritize opportunities for improvement Management Toolkit an action plan. and develop Implement: results. track Envision: Envision: goals. Establish clear roles and responsibilities. term and short-term reduction Investigate: action plans based on this framework. GRI: implement comprehensive waste minimization strategies. The toolkit follows the The toolkit follows the waste minimization strategies. implement comprehensive recover reduce, reuse, recycle, of controls—avoid, waste management hierarchy and implement waste management treat and dispose. The teams develop energy, DBS Waste Minimization Toolkit Minimization Waste DBS to evaluate Toolkit Minimization teams use the DBS Waste Our facility-level and identify opportunities for improvement current-state waste generation, • • • • Our teams use the toolkit to establish a thorough understanding of energy of energy to establish a thorough understanding Our teams use the toolkit an Opportunity in the form of areas for improvement consumption and identify on energy management action plans based the teams develop Assessment. Next, plans using a variety of DBS tools: and implement those the following framework, prioritizing and implementing measures that improve energy efficiency and energy efficiency and that improve and implementing measures prioritizing emissions. reduce GHG DBS Energy Management Toolkit Management Energy DBS teams in identifying, guides our facility-level Management Toolkit The DBS Energy ENVIRONMENT ENVIRONMENT
Danaher Sustainability Report 2020 ENVIRONMENT 57 by Laura Bas, Cytiva associate Laura by
The North Pole Ice-Glaciers The North Pole
have done for decades. Our passionate teams of water experts dedicate their careers dedicate their careers done for decades. Our passionate teams of water experts have and innovate implement best practices goals, to helping customers meet environmental compliance requirements. products beyond Danaher’s Water Quality businesses help safeguard our global water supply, as they as they water supply, Quality businesses help safeguard our global Danaher’s Water Our Water Quality Business Quality Water Our ENVIRONMENT
Danaher Sustainability Report 2020 ENVIRONMENT 58 203-1, 203-2, 303-1 GRI: adopted regulations adopted regulations to IMO rules with its High Definition X-Ray to IMO rules with its High Definition X-Ray regulated Fluorescence, a next-generation element detection technique that allows in fuel. levels to monitor sulfur operators Anticipating New Regulations Regulations New Anticipating on the Sea International Maritime In 2020, the (IMO) Organization to reduce commercial vessels that require caused by ozone-depleting pollution Hach emitted in ship exhaust. sulfur oxide with creative led the way have and XOS comply with solutions to help operators other more stringent these regulations and in the U.S. emissions requirements methods One of the most cost-effective standards is to meet these air-quality systems by to clean onboard exhaust gas emitted onto raw seawater spraying from ship engines, reducing the amount into the content expelled of sulfur oxide sensor ensures PAH500 atmosphere Hach’s scrubbing used for exhaust the seawater meets purification standards before it is discharged back into the sea. it easier to adhere makes XOS Meanwhile, Go 4 Zero workplace workplace Go 4 Zero Boeing’s Boeing’s unique system needs and solving Boeing’s unique system needs and solving challenges. its water treatment and savings closed loop, cooling and boiler water cooling and boiler water closed loop, locations treatment for the company’s since 2012. ChemTreat across the U.S. this relationship and has expanded Supplier of was named Boeing’s 2019 ChemTreat’s in Sustainability. the Year service team planned, specialized technical a sustainability implemented and tracked to reduce Boeing’s water usage, program carbon footprint. energy consumption and CTVista+ innovative ChemTreat’s cost-savings monitoring system and to understanding were key project tracking Supplier of the Year in in Year the of Supplier Sustainability As part of has provided ChemTreat safety program, by Rebecca Little, Cepheid associate Rebecca by / OUR WATER QUALITY BUSINESS QUALITY WATER / OUR All working in unison....Nature and Mankind All working in unison....Nature goal of 22% water reduction across ten goal of 22% water reduction across ten breweries. of water in the past seven years. Thanks Thanks years. of water in the past seven is on track the customer to ChemTreat, its 2025 sustainability to meet or exceed ChemTreat helped a North American helped a North American ChemTreat 40 million gallons of over brewer save 566 million gallons water in 2019 and over the operational performance of capital performance of capital the operational water-efficient assets and implement partnership with example, solutions. For ChemTreat’s unique model offers water- ChemTreat’s production facilities custom intensive that identify sustainability programs water use, improve opportunities to reduce The ability to protect water sources to protect water sources The ability are water use efficiency and maximize customers. ChemTreat many critical for Supporting Our Customers’ Customers’ Our Supporting Goals Sustainability ENVIRONMENT ENVIRONMENT
Danaher Sustainability Report 2020 ENVIRONMENT 59 more than 40 days. Pall’s Pensacola, Florida, facility continues Florida, facility continues Pensacola, Pall’s of its operations, to engineer waste out onsite recycling. focusing on increasing the team demonstrated Recently, onsite can be that two chemicals used multiple times before disposal recycled site increased its as hazardous waste. The 20% in 2019. over by rate recycling its celebrated Harborgate, UK facility Pall’s to of zero waste year consecutive seventh landfill for all operations. over Milan, Italy facility generated Pall’s That’s 130,000 kWh from solar power. enough energy to power the facility for • • • Design improvements from production from production Design improvements Florida Deland, materials teams at Pall’s and Timonium, Maryland sites removed wrap one million linear feet of spiral over and six metric tons of glue from customer waste streams within a year. Pall celebrated the 50th anniversary of of the 50th anniversary celebrated Pall 285 metric tons purchasing by Earth Day equivalent of a day’s of carbon offsets, the global emissions. worth of Pall teams from around the world joined 14 Pall International the Ocean Conservancy’s collecting a total Coastal Cleanup event, from 20 miles of of 1,710 pounds of trash beach. annual joined Pall’s 500 associates Over challenge, waste reduction ten-day kg at our Fajardo, 2,500 reducing waste by Puerto Rico and Hoegaarden, Belgium facilities alone. • • For more than a decade, Pall has demonstrated its commitment to environmental its commitment to environmental has demonstrated Pall more than a decade, For solutions and community engagement customer-centered creative, sustainability through Here are some highlights from 2019. opportunities for associates. • • Pall’s Commitment to Sustainability Commitment Pall’s innovative innovative , a provider of low- , a provider by 30% by 2030. 30% by by GRI: 203-1, 203-2, 302-4 decreased its energy consumption related to to decreased its energy consumption related stride toward its goal 25%, a great heating by of reducing the energy usage of its operations process, Cytiva captures heat given off by the the off by process, Cytiva captures heat given system to help warm the premises for its 1,200 associates and reduce energy consumption. Between 2018 and 2019, the Uppsala facility sewage treatment plant using an by Adven system developed carbon energy and water solutions. In the an energy-intensive process. To comply with comply with process. To an energy-intensive the facility adjusts regulations, environmental sent to the municipal of water the temperature Cytiva’s manufacturing site in Uppsala, Sweden manufacturing site in Uppsala, Sweden Cytiva’s produces resins used in the development which is and manufacture of therapeutics, Smart Solutions Reduce Solutions Smart Impact Environmental Cytiva’s ENVIRONMENT Future Greener to a Contributing
Danaher Sustainability Report 2020 ENVIRONMENT 60
Cariuma Colour Planner palettes. All Pantone styles styles Colour Planner palettes. All Pantone made with organic and are 100% vegan, tapped natural and ethically cotton canvas X Cariuma pair of Pantone every For rubber. purchased, Cariuma will plant sneakers rainforest, a pair of trees in the Brazilian to directly aid reforestation and the preservation of our endangered species’ habitat. natural to create both a Pantone Color of the Year of the Year Color to create both a Pantone and a fall 2020 Pantone Classic Blue sneaker fall capsule collection. The Pantone sneaker the vibrant collection was inspired by colors found around the world during the from PantoneView fall season and taken A Sustainable Future for for Future A Sustainable Fashion is proud to support a more Pantone the fashion industry sustainable future for who are leading partnering with brands by recently collaborated the charge. Pantone brand with sustainable sneaker wildlife. The team has committed to a long- term partnership with the local municipality of land. for the maintenance of this tract wildflowers, With plans to plant native Grove Biosystems hopes that Leica Leica will become an area associates can connect with through work and in their personal time as the plantings mature and wildlife returns. Native Plantings at Leica Leica at Plantings Native Grove from Leica departments Fourteen recently dedicated Biosystems’ UK facility hours to plant 2,500 800 cumulative over trees on a former animal grazing native paddock, forming a corridor for endangered / CONTRIBUTING TO A GREENER FUTURE A GREENER TO / CONTRIBUTING 203-1, 203-2 ENVIRONMENT ENVIRONMENT GRI: filters are designed to help produce reliable filters are designed to help produce reliable test results in a variety of applications, even in the harshest industrial stacks and flues. around the world use Cytiva’s Whatman Whatman around the world use Cytiva’s collect filters to efficiently and effectively reliable air quality samples. Whatman With such enormous repercussions, the repercussions, the With such enormous validity of air pollution data is critical to protecting human health. Companies and researchers in 190 cities and 50 countries areas where air pollution exceeds WHO WHO exceeds areas where air pollution them more vulnerable thresholds, leaving diseases. and respiratory to cardiovascular Breathe Easy Breathe in 90% of the world’s population live Over
Danaher Sustainability Report 2020 ENVIRONMENT 61 69 73 75 Leading Today and Tomorrow, 2019 North Asia Women’s Leadership Summit 2019 North Asia Women’s and Tomorrow, Leading Today Our Board of Directors & Management Team Risk Oversight Policies 63 64 65 67 Ethical Workplace Highlights Our Culture Ethical Business Conduct FOUNDATIONAL ELEMENTS FOUNDATIONAL & Governance Ethics, Compliance
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 62 98% COMPLETED OF IN-SCOPE ASSOCIATES TRAINING OF CONDUCT AND RELATED CODE IN 2019 CERTIFICATION We believe, with conviction, that acting with with acting that conviction, with believe, We for the foundation at all times is integrity Our and together. both individually success, – compliance motto integrity and internal it all. says Our Success – Integrity, Your
BEST CORPORATE GOVERNANCE: GOVERNANCE: CORPORATE BEST 2014, 2015, 2018 PROGRAM RELATIONS IN HEALTHCARE: INVESTOR BEST 2016, 2017, 2018, 2019, 2020 PROGRAM: RELATIONS OVERALL INVESTOR BEST 2018 IR MAGAZINE AWARDS IR MAGAZINE HIGHLIGHTS and complying with all applicable with all applicable and complying do business. we wherever laws, At Danaher, we are committed to committed are we Danaher, At ethical standards high maintaining FOUNDATIONAL ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 63 by James Leo Antony, Pall associate Pall Antony, Leo James by Growth during tough times Growth FOUNDATIONAL ELEMENTS FOUNDATIONAL Culture Our rooted in a strong Danaher’s culture is and sound governance, foundation of integrity reflects this program and our sustainability companies Our operating same commitment. their associates, trust with developed have decades. customers and local communities over recognized the always we have And at Danaher, which is importance of reputation to our success, we are committed to maintaining the highest why all applicable ethical standards and complying with we do business. wherever laws,
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 64 . AdvaMed’s AdvaMed’s website . Danaher associates in . Danaher associates in #TheBestTeamWins, Shanghai One Site, China #TheBestTeamWins, requires that we comply with all applicable laws laws requires that we comply with all applicable member of AdvaMed, and our Diagnostics businesses have adopted businesses have member of AdvaMed, and our Diagnostics Professionals with Health Care Code of Ethics on Interactions requirements about these information and training receive businesses relevant and periodic online and in-person trainings including in a number of ways, communications. and state regulatory requirements federal and U.S. support industry initiatives We of value to healthcare or transfers information about certain payments to make similar A number of other countries also have professionals publicly available. this information is published on the U.S. disclosure requirements. In the U.S., Open Payments Centers for Medicare and Medicaid Services Ethical Interactions with Healthcare Professionals with Healthcare Ethical Interactions Danaher’s Code of Conduct our and regulations that govern and regulations, including all applicable laws and commercial relationships with promotional activities and our educational advance compliance, Danaher is a healthcare professionals. In an effort to help and and Danaher’s Code of Conduct : 102-12, 102-16, 205-1, 205-2 to implement and comply with these policies and and to implement and comply with these policies programs. interact with customers, colleagues and business and business with customers, colleagues interact our products and services. partners, and market are required companies All Danaher operating corporate ethics and compliance function is function is ethics and compliance corporate responsible for how we that govern related policies and programs Danaher is committed to doing business with with Danaher is committed to doing business of our organization. Our level integrity at every FOUNDATIONAL ELEMENTS FOUNDATIONAL Conduct Business Ethical GRI
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 65
Code of Conduct , the Danaher Product Product , the Danaher . Danaher’s AdvaMed Code of Ethics on Code of Ethics on AdvaMed Code of Conduct MONETARY LOSSES AS A RESULT OF A RESULT AS LOSSES MONETARY WITH PROCEEDINGS ASSOCIATED LEGAL MARKETING CLAIMS.FALSE Responsible Marketing to Customers & to Customers Marketing Responsible Patients to healthcare directly all associates who market require We to follow Danaher’s providers addresses (which and Promotion Policy Advertising Marketing, target used to inform or persuade type of marketing the use of any or service, brand merits of a product, audiences of the relative for FDA-Regulated the Danaher Social Media Guidelines issue), used on Companies (which addresses information Operating and promote online platforms to advertise social media and other as well as the products and services), Professionals Health Care with Interactions our medical products solely based on requires that we promote that we sell our products through accurate labeling, their approved and that all information provided and truthful communications, balanced and to others about our medical products be truthful, experience.. relevant data and supported by INCURRED NO IN 2019, DANAHER , Code of Code of . Pursuant . Pursuant Code of Conduct Channel Partner Code of Conduct Channel Partner / ETHICAL BUSINESS CONDUCT BUSINESS / ETHICAL and anti-corruption training as part of their orientation orientation as part of their and anti-corruption training HC-MS-270a.1; HC-MS-270a.2; HC-MS-510a.2; HC-MS-270a.2; HC-MS-270a.1; 102-16, 205-1, 205-2, 417-1 intermediaries are required to complete our Anti-Corruption Anti-Corruption intermediaries are required to complete our which is a condition to a Danaher training, (ACP) Program entering into or renewing a contract. company operating ensure adherence to our compliance standards and reduce and reduce ensure adherence to our compliance standards to conduct approved potential risk before the channel partner is Diligence is company. business on behalf of a Danaher operating risk-based and conducted at periodic intervals. other third-party Our sales channel partners and many We conduct due diligence on our third parties in an effort to on our third parties in an effort to conduct due diligence We FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL GRI: SASB: • • We also support and monitor our third-party sales partners, such as sales partners, such as also support and monitor our third-party We Management compliance distributors, through our Channel Partner including our programs, to this program: Conduct basis thereafter. process and on an annual expectations with annual training for Danaher associates. Our Our for Danaher associates. with annual training expectations technical, professional, management and business, administrative, to complete mandatory new hires are required executive All Danaher associates must comply with our All Danaher associates and related policies as well as Policy Global Anti-Corruption and regulations, and we reinforce these all applicable laws Preventing, detecting and responding to these risks, as well as as well as to these risks, detecting and responding Preventing, priority for is an important books and records, accurate maintaining companies. its operating Danaher and Countering Bribery & Corruption Bribery Countering for all global enterprises. corruption are risks Bribery and
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 66 98% of in-scope associates completed Code of Conduct and related training certification in 2019 Supporting operating company company Supporting operating compliance teams and leaders and overseeing Developing and implementation of programs campaigns that increase associates’ ethical awareness Reporting quarterly to Danaher’s Audit Committee and at least annually to Danaher’s Board of Directors on matters of ethics and compliance • • • guides our everyday actions and interactions with internal with internal and interactions actions everyday guides our Code of Conduct Developing and facilitating ethics and and facilitating ethics and Developing compliance training data analytics to identify and Leveraging risks ethics and compliance mitigate key Managing our confidential reporting hotline, Speak Up! into alleged investigations Leading misconduct • • • • Engaging Associates in Ethics & Compliance Associates in Engaging Our in 19 languages. It is available stakeholders. and external business, technical, professional, all associates in administrative, Each year, Code career categories are required to take management and executive of the Code and all its and certify their understanding of Conduct training is also Conduct training requirements. Code of new hires when associates join Danaher as provided Code of Conduct and live or through acquisitions, certain cases for our shop floor, in is provided training of Conduct Code sales staff. manufacturing and field we languages; however, in 18 is available training training our local teams the option to order also give materials in other languages if necessary. Central Oversight ethics and compliance function reinforces our robust corporate A central, ethics and The responsibilities of our corporate commitment to integrity. compliance function include: ) reinforce ) reinforce Code of Conduct
102-16, 205-2 respect to integrity and compliance. GRI: We may withhold further recognition, awards withhold further recognition, awards may We or terminate, monetary bonuses from, and/or with associates who do not meet our expectations 2 out of 5 (if they fail to complete one required fail to complete one required 2 out of 5 (if they fail to or 1 out of 5 (if they course) training courses). complete two or more required training associate who fails to complete the required associate who fails to complete the required can achieve year in a given compliance training than a score on the Integrity Anchor of no more respect to this element annually. The Integrity The Integrity respect to this element annually. directly Anchor score an associate receives any impacts their compensation. In general, five Leadership Anchors that guide annual Anchors that guide annual Leadership five and managers at Danaher, performance reviews with numerically score associate performance for compliance with our ethics and integrity our ethics and integrity for compliance with Anchor (“Models Humility, policies. The Integrity and Integrity”) is one of the Transparency track our performance against our peers. our track Danaher associate is personally accountable Every described in this report and, in some cases, the use and, in some cases, the use described in this report identify and mitigate risks. We of data analytics to to and benchmarks practices look to industry best programs (including the (including programs the workplace. of integrity within our culture and compliance systems These include the ethics Ethical Workplace Ethical and Danaher-wide policies Well-established, FOUNDATIONAL ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 67 Code Code www. , in our , in our Code of Conduct Code of Conduct , which is available in 17 17 in available is which , Code of Conduct . of Conduct languages. Reporters can choose to submit languages. Reporters can choose to submit their concerns to Speak Up! anonymously, Danaher will law. local where allowed by against anyone retaliation not tolerate who reports a problem in good faith, nor against anyone retaliation will we tolerate Any who participates in an investigation. to management be reported retaliation may listed in the of the resources or via any are required to report actual or potential or potential actual to report are required our law, violations of or other Danaher policy. In addition, we In addition, we policy. or other Danaher other business partners and our encourage to report with us who interact third parties Up! concerns through Speak compliance an annual Speak Up! through publicize We campaign, and internal communications Up! is always information about Speak in our available on our intranet offices and facilities, and and public website. partners Our associates and business 7 use Speak Up! 24 hours a day, may a week. When a concern is reported days will listen, ask phone, the operator by and then write a questions if necessary summary report. The summary is then for assessment to Danaher provided and further action. Phone numbers are 120 countries. Associates for over available can also file complaints or submit inquiries electronically through danaherintegrity.com Code of Conduct Code of Conduct or any policies, laws, rules or regulations. rules or regulations. policies, laws, or any and expected Associates are encouraged to ask questions when unsure about any ethics or compliance issue, and associates changes in job responsibilities or title, changes in job responsibilities or title, adverse discussion in performance reviews, compensation and/ impact on paid incentive or termination of employment. Program Up! Speak The Speak Up! call center and website are independent from Danaher and staffed and compliance third-party ethics by specialists. Speak Up! is a confidential way to ask questions, seek guidance and report possible violations of the violations. Concerns can be raised through through Concerns can be raised violations. managers, numerous channels, including or Compliance Human Resources, Legal Danaher’s department representatives, the Speak Up! Board of Directors or Hotline. ethics and compliance Danaher’s corporate all reported and oversees function tracks to resolution. concerns from investigation over and investigated In 2019, we received we took 850 reports. Where appropriate disciplinary action, including coaching, Reporting Concerns Reporting guidance associates to seek encourage We to raise and require them on ethical issues ethical possible legal or concerns about / ETHICAL WORKPLACE/ ETHICAL 102-16, 102-17, 102-33 GRI: use this risk-based ranking to conduct to conduct use this risk-based ranking of the company’s a prioritized review locations and implement risk mitigation actions as required. corporate internal audit and compliance and compliance internal audit corporate functions meet regularly with the leadership and senior finance company’s location’s finance leadership, geographic finance leadership, geographic location’s location and historical internal audit performance, among other factors. The company’s business locations from a risk from a risk business locations company’s set of established using a perspective, into account the risk criteria that takes Internal audit also coordinates with Internal audit also coordinates with and compliance ethics Danaher’s corporate the rank function to quantitatively Accounting Principles and to validate the and to validate the Accounting Principles internal of the company’s effectiveness reporting. financial controls over ensure that Danaher’s externally reported reported externally ensure that Danaher’s properly prepared financial statements are Accepted Generally according to U.S. throughout Danaher. The corporate The corporate throughout Danaher. regularly conducts internal audit function audits in an effort to internal extensive Danaher also has a robust corporate has a robust corporate Danaher also with function tasked internal audit proper accounting, validating that controls, exist and accounting-related Corporate Internal Audit Audit Internal Corporate Support FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 68 skills matrix as a guide as well as the results of our annual Board and committee of our annual Board and committee skills matrix as a guide as well as the results Committee evaluates Governance self-assessment process, the Nominating & areas for Board consideration Board composition at least annually and identifies enhance our current and backgrounds that would complement and of expertise recommendations, our Board seeks to Board. In considering the Committee’s that comes from longer-term Board balance the knowledge and experience backgrounds that can and expertise service with the fresh ideas and new domain come from adding new directors. Our Board consists of 12 members, including four women. We have separated separated have 12 members, including four women. We Our Board consists of Chairman is of the Board and CEO and because our the positions of Chairman to Independent Director our Board has appointed a Lead officer, an executive as necessary, independent directors and act as a liaison, chair meetings of the The Board’s directors and the management directors. between the independent Governance Committee and Nominating and Audit Committee, Compensation entirely of independent directors. Committee each consist & Refreshment Composition Selection, Board our directors, members of be suggested by Nominees for Danaher’s Board may search firm. a third-party in some cases, by management, shareholders or, consider the topic of Board refreshment. Using our Board Our directors actively (either directly or through its directly or through its (either the performance and sets the the performance and sets the our risk assessment and risk management our risk assessment and risk management the quality and integrity of Danaher’s the quality and integrity of Danaher’s Danaher’s culture, succession planning planning Danaher’s culture, succession with management, determines Danaher’s Danaher’s with management, determines
Board of Directors Board 102-18, 102-22, 102-23, 102-24, 102-26 over financial reporting, Danaher’s compliance with financial reporting, Danaher’s compliance with over legal and regulatory requirements and Danaher’s and integrity and compliance program, Oversees program. and sustainability program Evaluates compensation of our CEO and other executive officers, Oversees financial statements, Danaher’s internal controls Oversees both a long-term (including and development plan for succession plan and emergency succession talent the CEO position), compensation, benefits, and recruiting and retention, associate engagement programs, and inclusion diversity Together Danaher’s and oversees long-term strategy process, acquisition and integration strategic GRI: • • • • committees): • Structure & Responsibilities Structure Our Management Team Management FOUNDATIONAL ELEMENTS FOUNDATIONAL & of Directors Board Our
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 69 initiated a further director search specifically focused on adding a on adding a specifically focused further director search initiated a community. an underrepresented of Color from Person current our Board’s continues, journey While our diversity As of achieved. we have the progress demonstrates composition is female; two of Danaher’s Board this report, one-third the date of Independent Director leadership positions (Lead Board of our key are held by Committee) & Governance and Chair of the Nominating re than 20% of our independent directors a a female director; more tenure has declined director our average under the age of 50; and the further illustrates The following graph 20% year-over-year. and backgrounds set of skills, knowledge, experiences diverse represented on our Board. / OUR BOARD OF DIRECTORS & MANAGEMENT TEAM & MANAGEMENT OF DIRECTORS BOARD / OUR 102-18, 102-22, 102-24, 405-1 GRI: and preparation by our Board, in August 2020 Danaher formally Board, in August 2020 Danaher formally our by and preparation of Drs. Jessica Mega and Pardis Sabeti to our Board. Building on Building on Sabeti to our Board. Pardis of Drs. Jessica Mega and from these age and national origin diversity the enhanced gender, of additional planning months several appointments, and following conducted a director search that specifically targeted diverse search that specifically targeted diverse conducted a director pool of candidates reflecting each of the individuals, included a in the appointments and resulted of diversity foregoing categories backgrounds appropriate to the Company’s needs, and as a result as a result needs, and Company’s appropriate to the backgrounds origin age and national gender, into account racial/ethnic, it takes In 2019, our Board when considering director nominees. diversity Diversity is a critical dimension of our focus on Board composition composition of our focus on Board is a critical dimension Diversity collectively that it should Our Board believes and refreshment. and experiences set of skills, knowledge, embody a diverse FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 70 by Shweta Thalve, SCIEX associate Thalve, Shweta by Sunsets / OUR BOARD OF DIRECTORS & MANAGEMENT TEAM & MANAGEMENT OF DIRECTORS BOARD / OUR 102-18, 102-24 GRI: appointed Rainer M. Blair to succeed Thomas P. Joyce, Jr. upon his upon his Jr. Joyce, P. appointed Rainer M. Blair to succeed Thomas retirement as Danaher’s President and CEO. regularly interacts with candidates at Board dinners and lunches, candidates at Board dinners and lunches, with regularly interacts at our annual leadership through Board meeting presentations and in 2020 our Board conference. In culmination of this process, development actions and progress over time as well as business time as well as business and progress over actions development are supplemented with performance. The candidate evaluations and the Board also periodic 360-degree performance appraisals, the Board’s annual talent review and succession planning session. planning session. and succession review the Board’s annual talent and compares candidates the Board evaluates At the annual session, each candidate’s model, and reviews using the development behaviors and development experiences. The Board uses the the The Board uses experiences. and development behaviors as a guide in preparing candidates, and in model development positions at executive candidates for the CEO and other evaluating CEO Succession Planning CEO Succession is a Board’s CEO succession planning process The foundation of our consisting of two dimensions: leadership model CEO development FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL
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IR MAGAZINE AWARDS IR MAGAZINE GOVERNANCE: CORPORATE BEST 2014, 2015, 2018 PROGRAM RELATIONS IN HEALTHCARE: INVESTOR BEST 2016, 2017, 2018, 2019, 2020 PROGRAM: RELATIONS OVERALL INVESTOR BEST 2018 / OUR BOARD OF DIRECTORS & MANAGEMENT TEAM & MANAGEMENT OF DIRECTORS BOARD / OUR 102-21, 102-25, 102-33, 102-43 GRI: as applicable, c/o Corporate Secretary, Danaher Corporation, 2200 2200 Danaher Corporation, Secretary, Corporate as applicable, c/o 20037-1701. D.C. Washington, Suite 800W, N.W., Avenue, Pennsylvania or the non-management or independent directors as a group, may do so do so as a group, may or the non-management or independent directors to the Board of Directors, to the specified addressing communications by or independent directors, individual director or to the non-management Communication with the Board with Communication in communicating directly with Shareholders and other parties interested Independent Director Lead our Board, or with individual directors, our decision-making. approximately 25% of our outstanding shares on our governance and and shares on our governance 25% of our outstanding approximately Feedback and sustainability initiatives. compensation programs executive meetings was shared with our Nominating and during these received Committee and Compensation Committee to inform their Governance As noted in this report, we actively seek and highly value feedback from highly value feedback from seek and we actively As noted in this report, investor 2019, in addition to our traditional our shareholders. During we engaged with shareholders representing relations outreach efforts, Shareholder Engagement Program Engagement Shareholder promulgated under the U.S. Securities Exchange Act of 1934, as amended), as amended), Act of 1934, Securities Exchange U.S. promulgated under the person transactions Related practicable. whenever prior to consummation the Committee. by annually are reviewed of an ongoing nature Danaher’s Nominating and Governance Committee reviews and, if and, if reviews Committee Nominating and Governance Danaher’s as (defined person transactions all related approves appropriate, of Regulation S-K under Item 404(a) required to be disclosed transactions Managing Potential Conflicts of Interest Conflicts of Potential Managing FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 72 these matters, and the full Board also receives periodic periodic these matters, and the full Board also receives program. briefings from management on our cybersecurity and Danaher has also updated its disclosure controls risk, procedures to specifically address cybersecurity to address Policy our Insider Trading amending including by ensuring clear linkage between cybersecurity and by Information Danaher’s Disclosure Committee and Chief Security Officer. SPOTLIGHT: MANAGING CYBERSECURITY RISKS MANAGING CYBERSECURITY SPOTLIGHT: includes a programmatic to cybersecurity Our commitment integrity confidentiality, seeking to protect the approach to data and systems. of Danaher’s products, and availability we so rapidly, that cyberthreats emerge realize We consistent with industry to manage cyber-risks endeavor posed from and standards, and mitigate risks best practices procedures. through our global policies and cyberattacks and update our to regularly improve measures take We perform independent program We cybersecurity program. of our testing and scanning assessments, penetration educate and share best We systems for vulnerabilities. awareness globally with our associates to raise practices Incident maintain a Global Security of cyberthreats. We ensure its to regular exercises Response Plan and conduct and maintain our preparedness. effectiveness Danaher’s Chief is led by The cybersecurity program who along with the Chief Information Security Officer, Audit regular updates to the provide Information Officer, including information Committee regarding this program, and the status about cyber-risk management governance of projects to strengthen cybersecurity effectiveness. Board on The Audit Committee regularly briefs the full are best positioned to identify and mitigate are best positioned to identify and mitigate gemba
Governance, Risk Management Governance, 102-15, 102-29, 102-30, 205-1 TCFD: our most significant risks. GRI: of Directors. The strength of our risk management program lies in the lies in the program of Directors. The strength of our risk management the companies to think broadly about our operating we give autonomy know that how best to mitigate them. We face and determine risks they those who are closest to oversee those efforts, with emphasis on our most significant risks. those efforts, with emphasis on our most significant risks. oversee our senior management reports on our risk management process Annually, of that process to our Board to the Audit Committee and on the results The Board’s role in risk oversight is consistent with Danaher’s leadership is consistent with Danaher’s leadership The Board’s role in risk oversight responsibility for assessing and structure: management has day-to-day committees and the Board and its managing Danaher’s risk exposure, risks as dictated by our risk-reward assessment. The result is that Danaher risk-reward assessment. The result is that Danaher our risks as dictated by resilient more are able to build better, companies and its operating a risk-based approach. businesses supported by The risk data collected is used to support effective business decision- is used to support effective The risk data collected our leadership It also gives making and assess risk-reward tradeoffs. and enables us to mitigate risks and countermeasures visibility into key competition, international trade, finance and accounting, cybersecurity accounting, cybersecurity finance and trade, competition, international and IT infrastructure. of the risk topics covered within these pillars include risks relating to to within these pillars include risks relating of the risk topics covered natural dynamics, intellectual property, regulations, sovereign/political business for talent, supply chain, climate change, catastrophe, competition and anti-corruption, compliance, bribery recovery, continuity and disaster all of Danaher’s platforms and operating companies. Danaher evaluates Danaher evaluates companies. and operating all of Danaher’s platforms financial and strategic, main pillars: operational, risks across five Examples and information technology/security. accounting, compliance prudent risk management is necessary to deliver long-term, sustainable sustainable long-term, to deliver management is necessary prudent risk (ERM) Enterprise Risk Management value. The goal of our shareholder risks across key and mitigate inventory comprehensively is to program Risk Oversight Risk recognize that growing a business, we is essential to While risk-taking FOUNDATIONAL ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 73
by In the Peruvian Amazon In the Peruvian Dave Hayden, Pall associate Pall Hayden, Dave / RISK OVERSIGHT / RISK
Governance, Risk Management, Strategy Governance, 102-15, 102-29, 102-30, 201-2 TCFD: TCFD: to accelerate these efforts. to accelerate GRI: where our operating companies have quantified cost savings from environmental impact impact from environmental quantified cost savings have companies where our operating Danaher’s new energy and GHG emission reduction targets, and reduction initiatives. are expected sent to landfills or incinerators, targets to reduce the percentage of waste Danaher’s businesses are increasingly focused on improving efficiency across our efficiency across our on improving Danaher’s businesses are increasingly focused assets, buildings and transport/ production and distribution processes, production include examples waste management. We mobility in relation to energy efficiency and been and will continue to be an innovation driver for Danaher. We include in this report include in this report We for Danaher. driver been and will continue to be an innovation customer feedback and incorporated have companies where our operating examples and solutions to address sustainability-specific needs. In addition, products innovated Key climate-related opportunities for Danaher include the prospect of developing for Danaher include the prospect of developing climate-related opportunities Key sustainability-related needs, and the new commercial solutions to address customers’ Listen” We Talk, that “Customers costs. Given potential to reduce Danaher’s operating regarding sustainability requirements has customer feedback is a Danaher Core Value, to mitigate the potential impact of these types of physical risk to its facilities as well as risk to its facilities as well as of physical to mitigate the potential impact of these types and GHG emissions. Danaher’s efforts to reduce energy consumption may cause sea level rise or chronic heat waves. These physical risks may have financial financial have risks may These physical waves. rise or chronic heat cause sea level may and indirect impacts from such as direct damage to assets implications for Danaher, Danaher has taken Elsewhere in this report, we discuss steps supply chain disruption. A key climate-related risk for Danaher is physical risk resulting from acute or chronic chronic risk resulting from acute or risk for Danaher is physical climate-related A key of extreme include increased severity risks Acute physical changes in climate patterns. risks refer to or floods. Chronic physical hurricanes as cyclones, such weather events, that temperatures) patterns (such as sustained higher longer-term shifts in climate tied to changing customer or community perceptions of an organization’s contribution to to contribution or community perceptions of an organization’s tied to changing customer from the environment. or detraction physical facility risks attributable to climate change; regulatory risks, such as increased increased risks, such as to climate change; regulatory risks attributable facility physical risks due to evolving energy; competitive carbon-based of, or caps on the use taxation of, friendly solutions; and reputational risk for more environmentally customer preferences SPOTLIGHT: RISKS & OPPORTUNITIES RELATED TO CLIMATE CHANGE CLIMATE TO RELATED & OPPORTUNITIES RISKS SPOTLIGHT: specifically prompts (ERM) program Enterprise Risk Management Danaher’s including acute or chronic to climate change, of potential risks related consideration FOUNDATIONAL ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 74 , we , we Danaher Danaher in all activities that in all activities that expect the suppliers (as well as permitted the suppliers (as well as permitted expect who do business with subcontractors) to share these Danaher and its subsidiaries and its subsidiaries commitments. Danaher each supplier to meet strongly encourage in the the standards set forth relationship with Danaher or the applicable relationship with Danaher or the applicable Danaher subsidiary terminated. Building a Network of of Network a Building Suppliers Sustainable committed to a we are At Danaher, of aspect in every excellence standard of all which includes conducting our business, respecting with integrity, our operations and respecting the rights of all individuals As described in the the environment. of Conduct Danaher Supplier Code Supplier Code of Conduct to Danaher relate directly or indirectly of its subsidiaries. or any Corporation a supplier’s compliance with evaluate We these standards in determining whether to status for such or continue preferred grant Suppliers that do not conform to supplier. disqualified from be these standards may their business have preferred status and/or require approval by Danaher’s President Danaher’s President by require approval and CEO. entity operating under 26 U.S.C. Sec. 527 of Sec. 527 of 26 U.S.C. under entity operating entity Code, (3) any the Internal Revenue of Sec. 501(c)(4) organized under 26 U.S.C. ballot Code, (4) any the Internal Revenue communication public measure or (5) any or the election advocates that expressly defeat of a political candidate (“political purposes”). Danaher has no intention of contributing funds or assets for political company any of company contribution purposes; any funds or assets for political purposes would than $25,000 of Danaher’s dues in any in any of Danaher’s dues than $25,000 for political purposes, and the calendar year communicates this policy to the company it is a member. associations of which Expenditures Political or assets of Danaher Since 2012, no funds or its subsidiaries (collectively, Corporation to been contributed have the “Company”) political party or candidate, or for (1) any local, (2) any state or whether federal, Trade/Industry Associations Trade/Industry dues to and pays Danaher belongs and industry trade to certain U.S. policy is that Company associations. more use no may each such association provides provides Code of Conduct 102-9, 415-1 candidate. a charitable make never Associates may or political contribution with the intent to improperly influence someone. candidate unless approved by Danaher Danaher by candidate unless approved Board of Directors or a Corporation’s committee of the Board. Supervisors should not solicit direct or indirect reports to contribute to, political party or support or oppose any make clear that political views and clear that political views and make and not those of actions are their own Danaher. use Danaher never Associates may resources to contribute to, support party or political or oppose any In all communications, associates must associates must In all communications, GRI: • • • • own time and at their own expense. In In own expense. own time and at their our particular, that: participate in the political process. We process. We participate in the political in our associates to be active encourage activities on their charitable and political Political Involvement Policy Involvement Political in the right of associates to believe We FOUNDATIONAL ELEMENTS FOUNDATIONAL Policies
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 75 . declarations declarations Danaher’s conflict Danaher’s conflict [email protected] Conflict Minerals Reporting Template Conflict Minerals , please contact minerals program minerals (“conflict minerals”). (“conflict to being or becoming Suppliers to Danaher are required to commit that such supplier does not source (which means “conflict-free” only from conflict-free smelters. Each and sourcing conflict minerals) completed Responsible supplier to Danaher is required to provide Initiative Minerals commitment to becoming conflict-free such supplier’s evidencing tin, tantalum, tungsten and documenting countries of origin for the more information on and gold that it purchases. For Conflict Minerals Conflict committed to sourcing and its subsidiaries are Danaher Corporation that share our values components and materials from companies and environmental regarding respect for human rights, integrity Danaher is committed to complying with the OECD responsibility. Chains of Minerals Due Diligence Guidance for Responsible Supply and High-Risk Areas, as well as Section 1502 from Conflict-Affected the use of minerals prevent Act, which aims to of the Dodd-Frank armed groups in the that directly or indirectly finance or benefit or in adjoining countries the Congo (DRC) Republic of Democratic / POLICIES : HC-MS-430a.3 102-9, 102-12 GRI: SASB qualification of multiple supply sources. The Company utilizes a number of techniques to address potential a number of techniques to address potential utilizes The Company supply chain, including disruption in and other risks relating to its materials and in certain cases the use of safety stock, alternative components that require particular specifications or regulatory or regulatory components that require particular specifications be a single supplier or a limited or other qualifications there may such components. number of suppliers that can readily provide Company’s costs for freight and utilities. The Company purchases purchases and utilities. The Company costs for freight Company’s around materials from a large number of independent sources raw for some the world. No single supplier is material, although of raw materials, including metallic-based components, electronic electronic materials, including metallic-based components, of raw and other components, chemistries, OEM products, plastics gas also affect the petroleum-based products. Prices of oil and Supply Chain Management Supply a wide variety employ manufacturing operations The Company’s FOUNDATIONAL ELEMENTS ELEMENTS FOUNDATIONAL
Danaher Sustainability Report 2020 FOUNDATIONAL ELEMENTS 76 We define “hazardous/regulated” as wastes as wastes define “hazardous/regulated” We that are deemed regulated or hazardous by point at the national legislation/regulations of generation. When normalizing the environmental for a particular year, metrics to revenue attributable to we do not include revenue acquisitions consummated subsequent to January 1 of such year. The energy usage and GHG emissions emissions The energy usage and GHG faith estimates metrics are based on good purchased energy of fuel consumed on-site, operation and energy consumed through and vehicles of Danaher-owned or -leased non-energy-consumption Danaher’s aircraft. releases GHG emissions, such as refrigerant and process air emissions, are omitted. With into respect to GHG emissions, we take account offsets in calculating such emissions an such offsets are recognized by provided the accrediting organization recognized by CDP. 2019 data from (1) Danaher locations owned owned (1) Danaher locations 2019 data from January 1, 2019 through or leased from account 2019 that in aggregate December 31, our total space, and 75% of for approximately owned or leased by and aircraft (2) vehicles respect to any Danaher during 2019. With from January 1, locations owned or leased 31, 2019 for which 2019 through December to endeavored data was not collected, we extrapolation. by account for such locations have not been externally assured. We expect expect assured. We not been externally have and we our data collection systems to evolve our processes will seek to continually improve for collecting and disclosing accurate, meaningful and consistent data. Danaher applied the following methodology with respect to the metrics and goals included in this report relating to energy usage, GHG emissions, water usage and waste generation from landfills or incinerators and diversion collected metrics”). We (“environmental Any trademarks, product names or brand names or brand product trademarks, Any of herein are the property images appearing owners. their respective as high-growth markets refer to developing We define in our financial reporting and markets experiencing markets them as geographic growth in periods of accelerated extended infrastructure, gross domestic product and the Middle East, which include Eastern Europe, Japan, Asia (except Africa, Latin America and and New Zealand). Australia October 15, 2020 This report is dated as of all data in this and unless otherwise noted, 2020. All financial report is as of October 15, information in this report is limited to and is reported in U.S. continuing operations dollars. Uncertainties are inherent in collecting data of facilities and operations from a wide range The data such as Danaher. in a global company than audited included in this report (other financial data) are good faith estimates and • • • • •
are available only in certain markets. are available not assume any obligation to update or revise obligation to update or revise not assume any forward-looking statement, whether as a any and result of new information, future events or otherwise. developments In this report, we describe certain products and submitted and applications that have devices and/or pending for certain regulatory approvals materially from those envisaged in our forward- materially from those envisaged looking statements are described in Danaher’s filings with the United States Securities and The forward-looking Commission. Exchange statements included in this report speak only to as of the date of this report, and except we do law, applicable by required the extent materially from the results, developments and and developments materially from the results, forward- our by business decisions contemplated should you looking statements. Accordingly, such forward- not place undue reliance on any looking statements. Important factors that in affected us in the past and that some cases have in the future could cause actual results to differ statements are based on assumptions and assumptions and statements are based on in light our management assessments made by historical and perceptions of of their experience future expected trends, current conditions, and other factors. Forward- developments future of guarantees looking statements are not differ results may performance and actual Certain statements included or incorporated by by included or incorporated Certain statements this report are “forward-looking reference in United within the meaning of the statements” All statements securities laws. States federal information are other than historical factual Forward-looking forward-looking statements.
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About This Report This About •
Danaher Sustainability Report 2020 ABOUT THIS REPORT 77 our our The text on the bottom of each on the bottom of each The text references page of this report the reporting standards to the content relevant read page. To included on such visit Index, our Disclosure online. report The content of this publication has not been approved by the United the United by The content of this publication has not been approved Nations or its Nations and does not reflect the views of the United officials or Member States. Task Task (UN (UN (TCFD)and (TCFD)and (GRI) Sustainability Sustainability (GRI) Sustainability Accounting Sustainability Accounting (SASB) Medical Equipment and Equipment and (SASB) Medical United Nations Sustainable Development Goals Sustainable Development United Nations Global Reporting Initiative™ Global Reporting partial responsive information has been provided. information has been partial responsive of the standard, we have referenced each relevant referenced each relevant of the standard, we have full or we believe section of the standard as to which the standard, while this SDGs). With respect to each such all the requirements report is not intended to meet Supplies Sustainability Accounting Standard, the Accounting Standard, Supplies Sustainability Financial Disclosures on Climate-related Force Reporting Guidelines, the Reporting Guidelines, Board Standards and accountability of our sustainability program, this this of our sustainability program, and accountability of disclosures that address elements report contains the As part of our efforts to enhance the transparency transparency enhance the of our efforts to As part ABOUT THIS REPORT ABOUT Frameworks Reporting
Danaher Sustainability Report 2020 ABOUT THIS REPORT 78 (AdvaMed’s Code of Ethics on Interactions with Health Care Professionals) with Health Care on Interactions Code of Ethics (AdvaMed’s Policies Guidance for Responsible Supply Due Diligence (OECD Conflict Minerals Areas) and High-Risk Conflict-Affected from Chains of Minerals - Ethical Business Conduct - Ethical Business Conduct s - Policies - Building a Network of Sustainable Suppliers; Supply Chain - Building a Network of Sustainable Suppliers; Supply Chain s - Policies - Map - Our Story , p. 29, 118 , p. 2 , p. 1-6 , p. 7, 29, 64, 66 , p. 6 (FDA’s Quality Systems Regulation), (ISO 13485 Medical Devices Quality Management Quality Systems Regulation), (ISO 13485 Medical Devices Quality Management (FDA’s System Standard) - Medical Device Product Quality - Medical Device Product - High Impact in Developing Markets - High Impact in Developing (CEO Action for Diversity & Inclusion), (Human Rights Campaign Corporate Equality Index) Corporate & Inclusion), (Human Rights Campaign Action for Diversity (CEO - Our Team - Diversity + Inclusion + Inclusion - Diversity Innovation People Elements Foundational RESPONSE Danaher Corporation a Glance Danaher at U.S. D.C., Washington, Danaher at a Glance 2019 Annual Report Danaher at a Glance 2019 Annual Report 2019 Annual Report Danaher at a Glance Innovation 2019 Annual Report Danaher at a Glance People 2019 Annual Report Element Foundational Management 102-7 102-9 102-12 102-2 102-3 102-4 102-5 102-6 CODE 102-1 / REPORTING FRAMEWORKS / REPORTING External initiatives Supply chain Scale of the organization Ownership and legal form served Markets Location of operations Location of headquarters Name of the organization Name of the and products, Activities, brands, services DESCRIPTION GRI - General Disclosures - Organization Profile - Organization Disclosures - General GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 79 - Our Board of Directors & Management Team & Management of Directors - Our Board - Risk Oversight – Ethical Business Conduct; Ethical Workplace – Ethical Workplace , p. 10-12 , p. 14 – How We Work – How We - Sustainability Oversight - Sustainability Oversight - Environment Metrics & Goals - Environment - Diversity + Inclusion - Diversity Metrics + Inclusion - Diversity - Diversity - Diversity + Inclusion - D+I Strategy & Oversight - D+I Strategy + Inclusion - Diversity RESPONSE Statement 2020 Proxy Danaher at a Glance Elements Foundational Statement 2020 Proxy Danaher at a Glance People RESPONSE Our CEO From 2020 CDP Response Environment People Elements Foundational RESPONSE Danaher Code of Conduct of Conduct Danaher Supplier Code a Glance Danaher At Elements Foundational Danaher Code of Conduct Danaher Supplier Code of Conduct Elements Foundational 102-20 102-17 CODE 102-18 102-15 CODE 102-16 CODE 102-14 / REPORTING FRAMEWORKS / REPORTING economic, environmental, and and economic, environmental, social topics Governance structure Governance for responsibility Executive-level DESCRIPTION Mechanisms for advice and Mechanisms for advice and concerns about ethics Values, principles, standards, and and principles, standards, Values, norms of behavior DESCRIPTION Key impacts, risks, and Key impacts, risks, and opportunities Statement from senior decision- Statement from maker DESCRIPTION GRI - General Disclosures - Governance GRI - General Disclosures GRI - General Disclosures - Ethics & Integrity Disclosures GRI - General GRI - General Disclosures - Strategy Disclosures - General GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 80 - Risk Oversight - Our Board of Directors & Management Team; Shareholder Engagement Engagement Shareholder & Management Team; of Directors - Our Board - Risk Oversight - Our Board of Directors & Management Team of Directors - Our Board & Management Team of Directors - Our Board & Management Team of Directors - Our Board Team & Management of Directors - Our Board Team & Management of Directors - Our Board , p. 9 , p. 14 , p. 13, 65 , p. 1-5 , p. 7 , p. 5 , p. 17-18 , p. 8-9 , p. 12-13 , p. 9 - Sustainability Oversight – Sustainability at Danaher - Sustainability at Danaher - Sustainability Danaher at a Glance Elements Foundational Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Danaher at a Glance RESPONSE Statement 2020 Proxy a Glance Danaher at Elements Foundational Program Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Elements Foundational Statement 2020 Proxy Statement 2020 Proxy 102-32 102-26 102-28 102-29 102-30 102-21 102-22 102-23 102-24 102-25 CODE / REPORTING FRAMEWORKS / REPORTING Highest governance body’s role in in role body’s Highest governance sustainability reporting social impacts of risk management Effectiveness processes governance body’s performance governance Identifying and managing and economic, environmental, in setting purpose, values, and and in setting purpose, values, strategy the highest Evaluating Conflicts of interest body Role of highest governance Nominating and selecting the the Nominating and selecting body highest governance committees Chair of the highest governance body Composition of the highest Composition of the highest body and its governance Consulting stakeholders on on stakeholders Consulting and economic, environmental, social topics DESCRIPTION GRI - General Disclosures - Governance (cont.) - Governance Disclosures - General GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 81 - Ethical Workplace; Our Board of Directors & Management Team & Management of Directors Our Board - Ethical Workplace; Engagement Program - Shareholder , p. 65 , p. 24-57 , p. 24-57 , p. 25 , p. 52 , p. 13 - Sustainability at Danaher - Sustainability at Danaher , p. 1-6; Exhibit 21.1 – Personal Potential – Personal Potential – Personal RESPONSE Statement 2020 Proxy of Conduct Danaher Code Elements Foundational Statement 2020 Proxy People Statement 2020 Proxy Statement 2020 Proxy People Statement 2020 Proxy Statement 2020 Proxy Danaher at a Glance Elements Foundational 2019 Annual Report Danaher at a Glance 102-43 102-45 102-47 102-35 102-36 102-37 102-38 CODE 102-33 / REPORTING FRAMEWORKS / REPORTING List of material topics Entities included in the Entities included in the consolidated financial statements Approach to stakeholder to stakeholder Approach engagement remuneration Annual total compensation ratio Process for determining for determining Process remuneration in involvement Stakeholders’ Remuneration policies Remuneration Communicating critical concerns Communicating DESCRIPTION GRI - General Disclosures - Governance (cont.) - Governance Disclosures - General GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 82 - Risk Oversight - Risk Oversight , p. 97-104 , p. 59-119 2019 Annual Report RESPONSE 2019 2019 Annual [email protected] here Available RESPONSE 2019 Annual Report Danaher at a Glance Elements Foundational CODE 201-1 201-2 201-3 102-51 102-52 102-53 102-55 CODE 102-50 / REPORTING FRAMEWORKS / REPORTING and other retirement plans and other retirement risks and opportunities due to risks and opportunities due to climate change Defined benefit plan obligations Direct economic value generated generated economic value Direct and distributed Financial implications and other DESCRIPTION regarding the report the regarding GRI content index Reporting cycle Contact point for questions Reporting period report recent Date of most DESCRIPTION GRI - Economic Performance GRI - Economic GRI - General Disclosure - Reporting Practice Reporting - Disclosure - General GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 83 - Champions for Our Customers; Caring for Our Communities - Champions for Our Customers; - Champions for Our Customers; Caring for Our Communities for Our Customers; Caring - Champions - Ethical Business Conduct; Ethical Workplace - Ethical Business Conduct; Risk Oversight , p. 109-111 - Our Water Quality Business; Contributing to a Greener Future Greener Quality Business; Contributing to a - Our Water Future Greener Quality Business; Contributing to a - Our Water - Innovation Defines Our Future; High Impact in Developing Markets Impact in Developing High Defines Our Future; - Innovation Markets High Impact in Developing Defines Our Future; - Innovation - Personal Potential; In Our Communities Potential; - Personal - In Our Communities RESPONSE 2019 Annual Report RESPONSE Response to COVID-19 Our Global Innovation People Environment COVID-19 Our Global Response to Innovation People Environment RESPONSE Elements Foundational Elements Foundational 205-1 205-2 CODE 206-1 203-1 203-2 CODE CODE / REPORTING FRAMEWORKS / REPORTING Legal actions for anti-competitive Legal actions for anti-competitive anti-trust, and behavior, monopoly practices DESCRIPTION and procedures related to corruption related Communication and training about anti-corruption policies DESCRIPTION assessed for risks Operations Significant indirect economic economic Significant indirect impacts Infrastructure investments and and investments Infrastructure services supported DESCRIPTION GRI - Anti-competitive Behavior Anti-competitive GRI - GRI - Anti-Corruption GRI - Indirect Economic Impacts Economic - Indirect GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 84 - Environmental Metrics & Goals - Environmental Metrics & Goals - Environmental Metrics & Goals - Environmental - Environmental Metrics & Goals Metrics - Environmental & Goals Metrics - Environmental Metrics & Goals - Environmental Metrics & Goals - Environmental - Environmental Metrics & Goals; DBS & the Environment; Contributing to a Greener Contributing to a Greener Metrics & Goals; DBS & the Environment; - Environmental Quality Business Metrics & Goals; Our Water - Environmental Environment Environment Environment Environment RESPONSE Environment Environment Environment Future RESPONSE Environment Environment RESPONSE Environment CODE 305-1 305-2 305-4 305-5 302-3 302-4 CODE 303-1 303-5 CODE 302-1 / REPORTING FRAMEWORKS / REPORTING Reduction of GHG emissions emissions GHG emissions intensity Direct (Scope 1) GHG emissions Direct (Scope 2) GHG Energy indirect DESCRIPTION Water consumption Water DESCRIPTION water as a with Interactions resource shared Reduction of energy consumption Energy consumption within the within the Energy consumption organization Energy intensity DESCRIPTION GRI - Emissions GRI - Water and Effluents and Water GRI - GRI - Energy GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 85 - Supporting Our Associates - Environmental Metrics & Goals Metrics - Environmental & Goals Metrics - Environmental - Safety - Safety - Safety - Highlights Potential - Personal - Personal Potential - Personal People People People People RESPONSE Environment Environment RESPONSE People Pandemic COVID-19 Our Response to the Global People People RESPONSE 401-3 CODE 403-1 403-2 403-9 306-4 CODE 401-1 401-2 CODE 306-3 / REPORTING FRAMEWORKS / REPORTING Work-related injuries Work-related management system identification, risk Hazard assessment, and incident investigation DESCRIPTION Occupational health and safety employees leave Parental employee turnover employee to full-time Benefits provided not provided that are employees or part-time to temporary DESCRIPTION and hires New employee Waste generated Waste disposal from diverted Waste DESCRIPTION GRI - Occupational Health & Safety GRI - Occupational Health GRI - Employment GRI - Effluents and Waste and - Effluents GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 86 - Our Board of Directors & Management Team of Directors - Our Board - Policies - Political Expenditures - Political - Policies , p. 5 - Highlights; Professional Potential Professional - Highlights; Potential - Professional + Inclusion - Diversity - Commitment to Human Rights & Anti-Discrimination People RESPONSE Policy Expenditures Political Elements Foundational RESPONSE People People RESPONSE Statement 2020 Proxy People Elements Foundational RESPONSE Danaher Code of Conduct Danaher Supplier Code of Conduct 415-1 CODE 407-1 CODE 404-3 CODE 405-1 CODE 404-2 / REPORTING FRAMEWORKS / REPORTING DESCRIPTION contributions Political which the right to freedom which the right to freedom of association and collective bargaining may be at risk DESCRIPTION and suppliers in Operations DESCRIPTION bodies of governance Diversity and employees Percentage of employees of employees Percentage performance regular receiving reviews development and career Programs for upgrading employee employee for upgrading Programs assistance skills and transition programs DESCRIPTION GRI - Public Policy GRI - Public GRI - Freedom of Association of GRI - Freedom GRI - Diversity & Equal Opportunity GRI - Diversity GRI - Training & Education & Training - GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 87 - Ethical Business Conduct , p. 109-111 - Medical Device Product Quality Product - Medical Device RESPONSE of Conduct Danaher Code Code of Conduct Danaher Supplier Innovation Elements Foundational RESPONSE 2019 Annual Report 417-1 CODE 419-1 CODE / REPORTING FRAMEWORKS / REPORTING Non-compliance with laws and and Non-compliance with laws social and in the regulations economic area DESCRIPTION Requirements for product and and for product Requirements and labeling service information DESCRIPTION GRI - Socioeconomic Compliance GRI - Socioeconomic GRI - Marketing and Labeling - Marketing GRI ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 88 - Risk Oversight - Risk Oversight - Risk Oversight - Sustainability at Danaher - Environmental Metrics & Goals - Environmental - Responsible Marketing to Customers & to Customers & - Responsible Marketing to Customers & - Responsible Marketing Customers & to - Responsible Marketing - Supply Chain Management; Conflict - Supply Chain Management; Minerals Foundational Elements Foundational Elements Foundational Danaher At A Glance Danaher At Elements Foundational Environment RESPONSE - Medical Device Product Quality Product - Medical Device Quality - Medical Device Product RESPONSE Innovation Innovation Elements Foundational Patients Elements Foundational Patients Elements Foundational Elements Foundational Patients CODE HC-MS-250a.1 HC-MS-250a.4 HC-MS-270a.1 HC-MS-270a.2 HC-MS-430a.3 HC-MS-510a.2 Disclose how the organization identifies, assesses and manages climate- Disclose how the organization identifies, assesses risks. related Disclose the actual and potential impacts of climate-related risks and risks and Disclose the actual and potential impacts of climate-related and financial businesses, strategy, opportunities on the organization’s such information is material. planning where Disclose the metrics and targets used to assess and manage relevant climate- and manage relevant Disclose the metrics and targets used to assess such information is material. risks and opportunities where related DESCRIPTION risks climate-related around governance Disclose the organization’s and opportunities. Description of code of ethics governing Description of code of ethics governing with health care interactions professionals Number of FDA enforcement actions actions enforcement Number of FDA to violations of in response taken Practices Good Manufacturing current by type2 (cGMP), of monetary losses as a amount Total associated of legal proceedings result claims with false marketing governing Description of code of ethics use of products of off-label promotion of Description of the management use of critical risks associated with the materials DESCRIPTION units issued, total Number of recalls recalled / REPORTING FRAMEWORKS / REPORTING Risk Management Strategy Metrics and Targets Governance TOPIC Management Business Ethics Ethical Marketing Supply Chain Ethical Marketing Product Safety Product Product Safety Product TOPIC TCFD SASB ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 89 - Supporting Our Associates; Our Associates; - Supporting
, p. 40 - Our Businesses – Environmental & Applied Solutions - Our Businesses – Environmental - Our Businesses - Our Businesses - Our Businesses – Environmental Metrics & Goals; DBS & the Environment; Our Water Our Water DBS & the Environment; Metrics & Goals; – Environmental Metrics & Goals – Environmental – Contributing to a Greener Future – Contributing to a Greener Quality Business - Our Water - Highlights; Innovation Defines Our Future; High Impact in Developing High Impact in Developing Defines Our Future; - Highlights; Innovation – Innovation Defines Our Future; High Impact in Developing Markets High Impact in Developing Defines Our Future; – Innovation Diversity + Inclusion - Diversity Metrics; D+I Training; Diversity + Inclusion + Inclusion Diversity Metrics; D+I Training; + Inclusion - Diversity Diversity & Anti-Discrimination; Commitment to Human Rights the World; Around In Our Communities – Professional Potential - Talent Recruitment; Recruitment; - Talent Potential – Professional + Inclusion - Diversity Environment Environment Future Quality Business; Contributing to a Greener Environment 2019 Sustainability Report Danaher at a Glance RESPONSE a Glance Danaher at Diagnostics Life Sciences; Pandemic to the Global COVID-19 Our Response Caring for Our Communities Innovation Environment People Danaher at a Glance & Applied Solutions Environmental Environment Danaher at a Glance People Innovation Markets
Relevant to Danaher Relevant
- Climate Action
/ REPORTING FRAMEWORKS / REPORTING Goal 14 - Life Below Water use the oceans, seas and and sustainably Conserve marine resources Ensure sustainable consumption and production sustainable consumption and production Ensure patterns Goal 13 to combat climate change and its urgent action Take impacts Goal 9 - Industry, Innovation and Infrastructure Innovation Goal 9 - Industry, sustainable promote infrastructure, Build resilient industrialization and foster innovation Goal 12 - Responsible Consumption and Production Goal 6 - Clean Water and Sanitation Goal 6 - Clean Water and sanitation for all access to water Ensure and Economic Growth Goal 8 - Decent Work and sustainable economic growth, inclusive Promote employment and decent work for all Goal 5 - Gender Equality gender equality and empower all women Achieve and girls Goal 3 - Good Health and Well-Being Health and Well-Being Goal 3 - Good well-being for all and promote lives healthy Ensure at all ages SUSTAINABLE DEVELOPMENT GOALS DEVELOPMENT SUSTAINABLE UN Sustainable Development Goals Development Sustainable UN ABOUT THIS REPORT THIS REPORT ABOUT
Danaher Sustainability Report 2020 ABOUT THIS REPORT 90 Contact Us
GENERAL CORRESPONDENCE SUSTAINABILITY
2200 Pennsylvania Avenue, NW, Suite 800W This Sustainability Report, along with all past reports, can be Washington, DC 20037 viewed in the Downloads section of sustainability.danaher.com.
Phone: 202.828.0850 Additional inquiries can be directed to Danaher’s corporate office Fax: 202.828.0860 or Danaher’s Sustainability contact at [email protected] www.danaher.com