People and Technology at Work Business Roundtable CEO Members Lead Companies with $7 Trillion in Annual Revenues and Nearly 16 Million Employees
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E • GROW • SUS REAT TAIN C 2016 REPORT People and Technology at Work Business Roundtable CEO members lead companies with $7 trillion in annual revenues and nearly 16 million employees. Business Roundtable member companies have a combined stock market capitalization of $7.9 trillion and invest $129 billion annually in research and development. Our companies pay more than $222 billion in dividends to shareholders and generate more than $495 billion in sales for small and medium-sized businesses annually. Business Roundtable companies also make nearly $8 billion a year in charitable contributions. Please visit us at www.brt.org, check us out on Facebook and LinkedIn, and follow us on Twitter. Copyright © 2016 by Business Roundtable E • GROW • SUS REAT TAIN C 2016 REPORT People and Technology at Work April 2016 DEAR BUSINESS LEADERS AND STAKEHOLDERS: On behalf of the members of Business Roundtable, I am proud to share with you our 2016 sustainability report — Create, Grow, Sustain: People and Technology at Work. Now in its ninth year, the report features narratives from 133 CEOs on how their companies have contributed to sustainable economic growth and a cleaner environment in the United States and around the world. At American Electric Power (AEP), we believe that good business and sustainable environmental practices go hand in hand. For our company, that means harnessing people and technology to safeguard the environment while delivering affordable, reliable electric power to more than 5 million customers in 11 states. Our sustainability achievements include investing more than $7.5 billion in environmental control technology over the last 15 years and reducing smog-generating emissions by more than 80 percent since 2001. Of course, AEP’s story is not unique. Across the board, Business Roundtable companies have put people and technology to work to deliver the extraordinary sustainability successes of the U.S. economy in recent years. One sign of that success is the substantial economywide increase in U.S. energy efficiency. Energy use per dollar of U.S. economic output decreased an average of nearly 2 percent per year between 1992 and 2012, and according to the U.S. Energy Information Agency, this powerful trend is poised to continue. More efficient energy use cuts energy costs for households and businesses, which benefits the economy and the environment alike. There are compelling stories behind these impressive trends. They involve people and technology working together to push our sustainability efforts even further. We have included a number of these stories in this year’s report. From tracking threatened wildlife using footprint identification technology; to using wastewater from yogurt to produce electricity; to recycling more water, energy and material with each passing year, our companies are on the leading edge of solving today’s sustainability challenges with a robust mix of technology and human ingenuity. I hope you enjoy reading this report and learning more about how U.S. companies are providing solutions to our greatest sustainability and quality-of-life challenges. Sincerely, Nicholas K. Akins Chairman, President and Chief Executive Officer, American Electric Power Chair, Energy and Environment Committee, Business Roundtable Business Roundtable iii 3M 1 A. O. Smith Corporation 2 ABB 3 Abbott 4 Accenture 5 ADP 6 AECOM 7 The AES Corporation 8 Aetna Inc. 9 AK Steel Corporation 10 Alcoa Inc. 11 Altec, Inc. 12 American Electric Power 13 American Express Company 14 Anadarko Petroleum Corporation 15 Aramark Corporation 16 Assurant, Inc. 17 AT&T Inc. 18 Ball Corporation 19 Bechtel Corporation 20 BlackRock, Inc. 21 Blackstone 22 BNSF 23 The Boeing Company 24 BorgWarner Inc. 25 Boston Consulting Group 26 C. R. Bard, Inc. 27 CA Technologies 28 Campbell Soup Company 29 Cardinal Health, Inc. 30 Caterpillar Inc. 31 CBRE Group, Inc. 32 CF Industries 33 CH2M 34 Chevron Corporation 35 The Chubb Corporation 36 Cigna Corporation 37 Cintas Corporation 38 Cisco Systems, Inc. 39 iv Create, Grow, Sustain: People and Technology at Work CNH Industrial 40 Comcast Corporation 41 Computer Sciences Corporation 42 ConocoPhillips 43 Convergys Corporation 44 Corning Incorporated 45 CSX Corporation 46 Cummins Inc. 47 CVS Health 48 DaVita HealthCare Partners Inc. 49 Day & Zimmermann 50 Deere & Company 51 Dell Inc. 52 Deutsche Bank 53 The Dow Chemical Company 54 Duke Energy Corporation 55 Eastman Chemical Company 56 Eaton 57 Edison International 58 EMC Corporation 59 EY 60 FedEx Corporation 61 Fluor Corporation 62 Freeport-McMoRan Inc. 63 Frontier Communications Corporation 64 GE 65 General Mills, Inc. 66 The Guardian Life Insurance Company of America 67 Harman International Industries, Inc. 68 Honeywell 69 IBM Corporation 70 Ingersoll Rand 71 International Paper Company 72 The Interpublic Group of Companies, Inc. 73 ITC Holdings Corp. 74 Johnson & Johnson 75 Johnson Controls, Inc. 76 JPMorgan Chase & Co. 77 Kindred Healthcare, Inc. 78 Business Roundtable v KPMG 79 Lockheed Martin Corporation 80 Macy's Inc. 81 Mallinckrodt Pharmaceuticals 82 Marathon Oil Corporation 83 Marathon Petroleum Corporation 84 MasterCard 85 McGraw Hill Financial 86 McKesson Corporation 87 Medtronic, Inc. 88 Motorola Solutions, Inc. 89 National Gypsum Company 90 NextEra Energy, Inc. 91 Northrop Grumman Corporation 92 Owens Corning 93 Pfizer Inc 94 PG&E Corporation 95 Phillips 66 96 Pitney Bowes Inc. 97 PricewaterhouseCoopers International Limited 98 Principal 99 The Procter & Gamble Company 100 Prudential Financial, Inc. 101 Qualcomm Incorporated 102 Realogy Holdings Corp. 103 Rockwell Automation, Inc. 104 SAS 105 Sempra Energy 106 Siemens AG 107 Southern Company 108 Stanley Black & Decker, Inc. 109 Starr Companies 110 Steelcase Inc. 111 Suffolk Construction Company, Inc. 112 Target Corporation 113 Tenneco Inc. 114 Texas Instruments Incorporated 115 Thermo Fisher Scientific Inc. 116 Tishman Speyer 117 vi Create, Grow, Sustain: People and Technology at Work TransCanada Corporation 118 Tyco International 119 United Technologies Corporation 120 UPS 121 Verizon Communications 122 Visa Inc. 123 Voya Financial 124 Walmart 125 WESCO International, Inc. 126 Western & Southern Financial Group 127 Whirlpool Corporation 128 Wipro 129 WPP 130 Wyndham Worldwide Corporation 131 Xerox Corporation 132 Xylem Inc. 133 Business Roundtable vii As the global population marches toward 9 billion people, it is creating an even more urgent need to address sustainability challenges — from air pollution and water shortages to food safety and clean energy. Our greatest opportunity to overcome these challenges lies with innovation and collaboration. As a science company, 3M partners with our customers and communities to make the world cleaner, www.3M.com/Sustainability safer and stronger. Starting with technology and working toward the improvement of every life on the planet allows us to think holistically about addressing global challenges. Our investments in sustainable technologies are guided by our customers’ needs. These include glass ” Starting with technology bubbles that make cars lighter and more fuel efficient, films that make smartphones and buildings more energy efficient, and environmentally friendly immersion fluid that cools data centers. and working toward the Beyond collaborating with customers, 2015 was a year of many partnerships toward building a improvement of every better future: life on the planet allows ◗◗ We joined other global companies to help municipalities implement recycling programs through the Closed Loop Fund. This landmark partnership will invest $100 million to protect us to think holistically the environment, generate revenue for cities and create thousands of jobs. about addressing global ◗◗ We made an agreement to purchase electricity from two wind farms, helping us work toward our renewable energy goals for 2025. challenges.” ◗◗ We announced a revised pulp and paper sourcing policy providing leading-edge protection for forests, critical habitats and forest communities worldwide. ◗◗ During 3M’s Global Volunteer Day, 3Mers from 80 international locations renovated schools, built outdoor learning centers and engaged thousands of students on the power of science to improve lives. This supports our broader work to encourage young people to enter STEM- related fields. Also in 2015, our Pollution Prevention Pays (3P) program celebrated its 40th anniversary, having prevented 4.1 billion pounds of pollution and saving nearly $1.9 billion dollars since 1975. SOLUTIONS AT WORK 3M™ Petrifilm Plates, With an eye toward the future we launched our 2025 sustainability goals. These goals range from Improving Food Safety investing in sustainable materials and energy efficiency to water management and reducing our customer’s greenhouse gases through the use of our products. We have also set goals around Food safety is a complicated effort. building a diverse workforce and worker and patient safety in health care and industrial settings. Food is grown, processed, packaged and transported before it reaches the Moving forward, our emphasis on applying 3M science to improve lives will continue to grow, as grocery store. 3M scientists invented will our emphasis on collaboration — with our customers, partners and communities. a faster, more accurate indicator test that helps food and beverage manufacturers detect microorganisms in food and beverage products before Inge G. Thulin they become potential quality and Chairman of the Board, President and Chief Executive Officer safety