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GE Citizenship Report 2007-2008

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GE Citizenship Report 2007-2008 GE Citizenship Report 2007– 2008 Investing and Delivering in Citizenship contents 4 About This Report 5 Strategic Priorities & Engagement 8 GE Businesses 10 A Letter from Jeff Immelt 11 A Letter from Brackett Denniston & Bob Corcoran 12 A Letter from the Stakeholder Report Review Panel 14 Overview 18 Business Themes & Citizenship Priorities 20 Operational Excellence 21 Compliance & Governance 24 Environment, Health & Safety 32 Public Policy 36 Global Themes 38 Energy & Climate Change 44 Demographics 52 Growth Markets 60 Financial Markets 66 Performance 68 Employees 72 Suppliers 75 Customers 76 Products & Services 83 Human Rights 86 Communities & Philanthropy 88 At-a-Glance Metrics 92 GE by the Numbers 92 GE Recognitions scope This report, published in June 2008, covers GE’s worldwide operations for the 2007 fiscal year, which ends December 2007, except where otherwise stated. This is GE’s fourth citizenship report. Reports for previous years are available at www.ge.com/citizenship. Markets big and small around the world are becoming more dynamic and interconnected than ever before. As the global economy grows, so does GE’s reach. With operations in more than 100 countries, GE and its products and services touch a growing number of people as we strive to meet many of the world’s needs in a responsible manner. Global growth at an unprecedented scale also creates challenges for societies in both developing and developed countries alike. The world faces massive needs for infrastructure, clean water, clean and affordable energy and better healthcare. GE is developing solutions for many of these challenges by applying the investments we have made in leadership businesses and developing people who are great builders. GE is exploring new markets and focusing on new solutions while at the same time committing to a new level of engagement with stakeholders. White indicates GE locations Revenues in $ billions United States $86.2B revenues 155,000 employees Canada & $12.6B revenues the Americas 28,000 employees GE Around the World GE’s presence around the world mirrors global growth opportunities. With operations in more than 100 countries, we are positioned to invest and deliver in big themes to build big businesses. As the Company moves forward in 2008 and beyond, we will continue to focus on capitalizing on global infrastructure investment, emerging market growth, environmental technology, expanding and aging demographics, accelerating digital connections, and creating value from origination. Our focus and investments in leadership businesses and in developing great people and teams are paying off. Today, GE is a great-executing, high-performance growth company. The foundation for future growth lies in the strength and diversity of our businesses, our company-to-country approach (adapting our products and services to fit the specific needs of each market), our technical and management skills, and our ability to be a good partner. To capitalize on opportunities around the world, GE will continue to invest in leadership businesses that address some of the world’s most pressing needs, such as providing clean water, environmental products and services, efficient rail and aircraft, and healthcare solutions. 2 ge 2007–2008 citizenship report Europe $39.9B revenues 92,000 employees Asia Pacific $22.0B revenues 49,000 employees Middle East, $8.0B revenues Africa & Others 3,000 employees $173B* revenues GE World Totals 327,000 employees *includes ~$4B from “other Global” areas ge 2007–2008 citizenship report 3 about this report GE’s approach to citizenship is a full-time commitment with the same goals, strategies, and accountabilities that drive business. REPORTING PRINCIPLES Inclusiveness Issues raised by stakeholders Relevance/Materiality 1. Prioritize issues influencing Printed Report Sustainability context Global social and environmental challenges stakeholder decisions & Web Site 2. Prioritize issues influencing Completeness GE’s worldwide operations and six businesses business success To take on tough challenges in our communities, GE applies its Origination, as well as discussions related to another business long-standing spirit of innovation and unique set of capabilities in theme identified in the Annual Report — Infrastructure Technology. tandem with our responsible leadership and system of operational These thematic discussions are preceded by a section on GE’s excellence. Operational Excellence. GE believes the future will be shaped by six essential business The Performance section that completes this report presents data themes as set out in our 2007 Annual Report: a massive investment points, activities, and progress made on issues that support GE’s in infrastructure technology, the rise of emerging markets, commitment to the themes that drive our business strategy. a demand for environmental solutions, expanding aging demo- The themes and issues we highlight have an impact on GE’s overall graphics, the transforming power of digital connections, and business and on our citizenship priorities. Our report is for the opportunities in origination. Changing demographics over the benefit of all stakeholders, but most importantly, for our employees, coming years, for example, will drive the need for new healthcare because it is our people who make a difference through what solutions along with the need for reliable infrastructure, from they do every day. It is our hope, also, that this report continues to roads to clean water. At the same time, the pace of technical spark the increasing dialogue about citizenship issues. For what is innovation, government regulation and digital connections will responsible citizenship if not a dialogue on the most complex issues? accelerate, especially in emerging markets. In the process, we look for having constructive discussions, and will Given our outlook on the future, this year’s citizenship report adapt as necessary based on what we learn. Through collaboration reviews GE’s citizenship from the perspective of four key themes — on developing solutions, GE can work toward improving the quality Energy and Climate Change, Demographics, Growth Markets, of life for citizens, our employees and our investors. and Financial Markets. These themes correlate with five of the six business themes/trends discussed in the 2007 GE Annual Report: To contact GE, please see the “Contact Information” section Environmental Solutions, Demographics, Emerging Markets, and on the inside back cover of this report. CITIZENSHIP MATRIX shared priorities high Energy Demand & energy & climate Sub-Prime Crisis change Development Liquidity & demographics Human Rights Origination growth markets Expanding Capacity Building financial markets Boundaries Responsible Integrating Investment Energy Solutions themes identified Inadequate Global in citizenship report Frameworks Coordination Community Customer importance to society to importance Involvement Engagement Maintaining Talent low importance to business high 4 ge 2007–2008 citizenship report Strategic Priorities & Engagement Determining scope for corporate citizenship reporting Today it is increasingly acknowledged that businesses affect the Highlights world through not only what they avoid doing, but also through what they choose to do when it comes to environmental and social Reporting issues, actions that in turn can influence business performance. Released new citizenship report focused on key themes, Our approach to identifying and discussing citizenship priorities is context, and relevance to GE. The report development based on three components. More information on these components included inviting a range of experts to provide their can be found online at www.ge.com/citizenship/priorities. opinions on key issues, dilemmas, and challenges GE and multinationals face in the area of corporate citizenship. Business strategy: Investing in trends (Six business themes) Water reduction goal Þ Infrastructure Technology Þ Demographics In May 2008, GE announced a global water reduction goal for our manufacturing operations — a 20% reduction Emerging Markets Digital Connections Þ Þ by 2012 from our 2006 baseline. Þ Environmental Solutions Þ Origination Product innovation in emerging markets Developed a summary of solutions to address needs in Citizenship Leadership (Four citizenship areas of leadership) emerging markets, including healthcare, water, and energy. Þ Ecomagination Þ Compliance and Governance Ecomagination Þ Emerging Markets Þ Environment Health and Safety Ecomagination product revenues increased from $12 billion in 2006 to $14 billion in 2007, which Elements of GE’s citizenship framework as a percent of overall company-wide revenue is 23% in 2007. Þ Make money Þ Make a difference Greenhouse gases and energy reductions Þ Make it ethically In 2007, the Company reduced greenhouse gas emissions by 8% compared to 2004 levels. GHG and energy intensity By integrating our citizenship framework, areas of leadership, and have been reduced by 34% and 33%, respectively, our business themes, we have the ability to better identify citizenship compared to 2004. opportunities and challenges embedded in our business strategy (see opposite page). Human rights Began a program to operationalize human rights New in this year’s report is the graphic on the facing page, considerations that included drafting and testing which features issues — current and potential opportunities and implementation guidelines. Expanded supplier due challenges — embedded in our business strategy. Most important
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