CREATE 1 GROW 1 SUSTAIN Leading by Example

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CREATE 1 GROW 1 SUSTAIN Leading by Example CREATE 1 GROW 1 SUSTAIN Leading by Example 2015 REPORT Business Roundtable CEO members lead companies with $7.2 trillion in annual revenues and nearly 16 million employees. Business Roundtable member companies comprise more than a quarter of the total market capitalization of U.S. stock markets and invest $190 billion annually in research and development — equal to 70 percent of U.S. private R&D spending. Our companies pay more than $230 billion in dividends to shareholders and generate more than $470 billion in sales for small and medium-sized businesses annually. Business Roundtable companies also make more than $3 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 © 2015 by Business Roundtable CREATE 1 GROW 1 SUSTAIN Leading by Example 2015 REPORT April 2015 DEAR BUSINESS LEADERS AND STAKEHOLDERS: On behalf of the members of Business Roundtable, I am proud to share with you our 2015 sustainability report — Create, Grow, Sustain: Leading by Example. Now in its eighth year, the report features narratives from 148 CEOs on how their companies have contributed to sustainable economic growth and a cleaner environment in the United States and around the world. Aided by the efforts of Business Roundtable member companies, the United States is a sustainability leader. For example, between 2002 and 2012, global greenhouse gas (GHG) emissions increased by approximately one-third while U.S. GHG emissions decreased by more than 9 percent. Business Roundtable companies helped drive this success by setting sustainability goals, improving energy efficiency, investing in renewable energy, and developing new technologies that are transforming the way Americans produce and use energy. In anticipation of the December 2015 meeting in Paris of the United Nations Framework Convention on Climate Change, this year’s report has a special focus on actions or activities by Business Roundtable member companies that help limit GHG emissions. I hope you will enjoy reading Create, Grow, Sustain: Leading by Example 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 1 iii TABLE OF CONTENTS 3M 1 A. O. Smith Corporation 2 ABB 3 Abbott 4 Accenture 5 ACE Group 6 AECOM 7 The AES Corporation 8 Aetna Inc. 9 AK Steel Corporation 10 Alcoa Inc. 11 Altec, Inc. 12 American Electric Power 13 Anadarko Petroleum Corporation 14 Aramark Corporation 15 Assurant, Inc. 16 AT&T Inc. 17 Ball Corporation 18 Barclays PLC 19 Bayer AG 20 Bechtel Corporation 21 BlackRock, Inc. 22 The Blackstone Group 23 BNSF 24 The Boeing Company 25 BorgWarner Inc. 26 Boston Consulting Group 27 CA Technologies 28 Caesars Entertainment Corporation 29 Campbell Soup Company 30 Cardinal Health, Inc. 31 Caterpillar Inc. 32 CBRE Group, Inc. 33 CF Industries 34 CH2M HILL, Inc. 35 Chevron Corporation 36 Cigna Corporation 37 Cisco Systems, Inc. 38 CNH Industrial 39 Cognizant Technology Solutions Corporation 40 Comcast Corporation 41 ConocoPhillips 42 iv 1 Create, Grow, Sustain: Leading by Example Convergys Corporation 43 Corning Incorporated 44 CSX Corporation 45 Cummins Inc. 46 CVS Health 47 DaVita HealthCare Partners Inc. 48 Day & Zimmermann 49 Deere & Company 50 Dell Inc. 51 Deutsche Bank 52 DIRECTV 53 Dominion Resources, Inc. 54 The Dow Chemical Company 55 Duke Energy Corporation 56 Eastman Chemical Company 57 Eaton 58 Edison International 59 Eli Lilly and Company 60 EMC Corporation 61 Exelis Inc. 62 Express Scripts, Inc. 63 EY 64 FedEx Corporation 65 First Solar, Inc. 66 Fluor Corporation 67 Freeport-McMoRan Inc. 68 Frontier Communications Corporation 69 GE 70 General Mills, Inc. 71 W.W. Grainger, Inc. 72 The Guardian Life Insurance Company of America 73 Harman International Industries, Inc. 74 Honeywell 75 Humana Inc. 76 IBM Corporation 77 Ingersoll-Rand 78 International Paper Company 79 The Interpublic Group of Companies, Inc. 80 ITC Holdings Corp. 81 ITT Corporation 82 Johnson & Johnson 83 Johnson Controls, Inc. 84 Business Roundtable 1 v JPMorgan Chase & Co. 85 Kindred Healthcare, Inc. 86 KPMG 87 Lockheed Martin Corporation 88 Macy's Inc. 89 Marathon Oil Corporation 90 Marathon Petroleum Corporation 91 MassMutual Financial Group 92 MasterCard 93 McGraw Hill Financial 94 McKesson Corporation 95 MDC Partners 96 Medtronic, Inc. 97 Motorola Solutions, Inc. 98 Navistar International Corporation 99 NextEra Energy, Inc. 100 Norfolk Southern Corporation 101 Northrop Grumman Corporation 102 Oracle Corporation 103 Owens Corning 104 Peabody Energy Corporation 105 PepsiCo, Inc. 106 Pfizer Inc 107 PG&E Corporation 108 Pitney Bowes Inc. 109 PricewaterhouseCoopers International Limited 110 Principal Financial Group, Inc. 111 The Procter & Gamble Company 112 Qualcomm Incorporated 113 Realogy Holdings Corp. 114 Rockwell Automation, Inc. 115 RR Donnelley 116 SAS 117 Sempra Energy 118 Siemens AG 119 SIRVA, Inc. 120 Southern Company 121 Stanley Black & Decker, Inc. 122 Starr Companies 123 State Farm Insurance Companies 124 Steelcase Inc. 125 Suffolk Construction Company, Inc. 126 vi 1 Create, Grow, Sustain: Leading by Example SunGard Data Systems Inc. 127 Tenet Healthcare Corporation 128 Tenneco Inc. 129 Texas Instruments Incorporated 130 Thermo Fisher Scientific Inc. 131 Tishman Speyer 132 TransCanada Corporation 133 Tyco International 134 United Technologies Corporation 135 UPS 136 Verizon Communications 137 Visa Inc. 138 Voya Financial 139 Walmart 140 WESCO International, Inc. 141 Western & Southern Financial Group 142 Whirlpool Corporation 143 The Williams Companies, Inc. 144 WPP 145 Wyndham Worldwide Corporation 146 Xerox Corporation 147 Xylem Inc. 148 Business Roundtable 1 vii With sales in more than 200 countries of more than 60,000 products, 3M is a global innovation company that never stops inventing. Over the years, our innovations in industries ranging from consumer products to health care, electronics to energy, and industrial to safety and graphics, have led to the development of products that improve life for hundreds of millions of people worldwide. Not only have we made www.3M.com/sustainability driving at night easier, buildings safer, and consumer electronics lighter and less energy intensive, but we’ve also helped reduce infection rates and improved patient care. Our company’s vision guides our business decisions: ◗◗ 3M Technology Advancing Every Company ◗◗ 3M Products Enhancing Every Home ◗◗ 3M Innovation Improving Every Life Put simply, we are committed Put simply, we are committed to improving our business, our planet and every life. to improving our business, Striving to improve every life means putting 3M’s innovative solutions to work to help address our planet and every life. global challenges including energy availability and security, raw material scarcity, water stress, human health, safety, education, and development. It all starts with anticipating the needs of our customers. We’re investing heavily in the development of sustainable materials and the launch of many exciting new products with sustainability advantages, including 3M™ Novec™ Engineered Fluids, Scotch-Brite® Greener Clean Heavy Duty Scrub Sponge and Scour Pad, 3M Littmann® Classic III™ Stethoscope, 3M Petrifilm™ Rapid Yeast and Mold Plate, expanded 3M™ Air and Vapor Barrier portfolio, hard hat- attachable 3M Speedglas™ Welding Shield, 3M™ Floor Pads with Recycled Content, and more. We also focus on how our products are made. Now in its 40th year, our Pollution Prevention Pays program, has saved 3M 1.9 million metric tons of waste and $1.8 billion since 1975. Indexed to net sales, we’ve reduced global water usage by 42 percent (2005–14) and improved energy efficiency by 50 percent (2000–14), as we’ve voluntarily achieved a 57 percent absolute reduction in greenhouse gas emissions (2002–13). Improving every life also means empowering individuals and being intricately linked to the health of our communities. Accordingly, our support of education programs reaches more than 7.6 million young people each year, and we have provided more than $20 million in cash; volunteerism; and in-kind donations to nonprofit partners for disaster preparedness, relief and recovery since 2005. Moving forward, our emphasis on innovation and invention will continue to grow, as will our emphasis on collaboration — with customers, partners and communities. Inge G. Thulin Chairman of the Board, President and Chief Executive Officer Business Roundtable 1 1 As a global water technology company, A. O. Smith Corporation is in a unique position to address the issue of sustainability. Over the last several years, we have placed our emphasis on products, plants and people as we work to develop sustainable solutions for our customers and our employees. www.aosmith.com ◗◗ Products: We developed our first high-efficiency residential water heater in 1976, and today our company offers the most extensive line of high-efficiency and renewable-energy residential and commercial water heaters and boilers on the market. Over the last five years, another focus has been on water treatment technology to meet the growing need for fresh, clean water around the world. Our engineers created a patented technology that increases the output of fresh water from reverse osmosis residential water treatment products. We market
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