Corporate Responsibility Report at a Glance
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CORPORATE RESPONSIBILITY 20 REPORT 17 DR. CHAUCEY CHANDLER ENGINEER, LEAN SIX SIGMA BLACK BELT AND MANAGER 20 Year Employee of Rockwell Automation TABLE OF CONTENTS 5 CHAIRMAN AND CEO MESSAGE 6 CORPORATE RESPONSIBILITY REPORT AT A GLANCE SUSTAINABLE CUSTOMERS 8 THE CONNECTED ENTERPRISE UNLOCKS OPPORTUNITIES 10 SAFETY IN THE CONNECTED ENTERPRISE SUSTAINABLE COMPANY 12 ENVIRONMENTAL PERFORMANCE 16 BEST-IN-CLASS SAFETY PERFORMANCE 17 INCLUSION AND ENGAGEMENT FUEL INNOVATION 21 INTEGRITY EVERY DAY 21 SUPPLIER RELATIONSHIPS SUSTAINABLE COMMUNITY 22 DISASTER RELIEF AND RECOVERY 22 STEM EDUCATION 26 HIGHER EDUCATION PARTNERSHIPS 2 SOCIAL RESPONSIBILITY AND SUSTAINABILITY KEY PRINCIPLES WE RESPECT and support the dignity of all workers and our company policies and practices are designed to uphold worker human rights. WE EMBRACE equal employment opportunities, reject illegal employment discrimination in any form and strive to treat all employees with fairness and dignity. WE ARE COMMITTED to demonstrating the highest standards of health and safety for our employees and customers. WE STRIVE to continually improve our environmental performance including resource conservation and pollution prevention. WE ARE COMMITTED to making a positive impact on the communities in which we live and work. WE ADHERE to a Code of Conduct based on principles and laws that guide the decisions and actions of our employees and suppliers. You’ll find our complete Global Social Responsibility and Sustainability Policy on our website www.rockwellautomation.com 3 4 FROM BLAKE MORET CHAIRMAN AND CEO As I reflect on my first year as CEO, and assume additional responsibility as Chairman of the Board, I’m incredibly proud of our successes. We’ve delivered value to customers and shareowners, and to our communities. One honor that was particularly meaningful was receiving the prestigious Catalyst Award for promoting workplace diversity, especially the advancement of women. This highly sought-after award recognizes our commitment to have the broadest possible pool of talent and to create a culture where everybody can and wants to do their best work. We were again named as one of The World’s Most Ethical Companies and listed as a member of the Dow Jones Sustainability North American Index. These and other achievements reflect our hard work, but we don’t do it for the accolades. We do it because our mission is to improve the quality of life by making the world more productive and sustainable. We do it because it’s the right thing to do – acting with integrity, ethics, and respect for each other and the environment. Corporate responsibility and sustainability are imperatives to grow our company the right way, and to not sacrifice long-term value for short-term returns. The Industrial Internet of Things is changing how we live, work, and make things. Harnessing this power, we’re bringing The Connected Enterprise to life, integrating control and information across the enterprise to help industrial companies and their people be more productive. Even though we're an automation company, people remain our most important asset. We partner with the best companies, educational institutions, and nonprofits to build a skilled workforce that shares our passion for lifelong learning and is ready to work in today’s modern manufacturing industry. Together with the ManpowerGroup, we celebrated the first class of U.S. military veterans to graduate from our joint Academy of Advanced Manufacturing program. We didn’t just teach these veterans new skills. We secured them new jobs. For more than 100 years, Rockwell Automation has been synonymous with quality, community, and reliability. Our customers know they can trust us, and our employees are proud to work for us. We are a great company with a proud history. We believe when we combine the potential of automation with the imagination of people, good things happen. Sincerely, Blake D. Moret 5 FINANCIAL IN ADJUSTED EPS $6.3 BILLION SALES OF $6.76 EMPLOYEES MORE THAN HALF LITY OUTSIDE THE U.S. BI 22K SI N O P S E R One of only three companies to E win this prestigious honor T A R O Ranked one of the Top 100 Most Attractive Employers in China P R 20 O Earned a perfect score of 100% on the C Human Rights Campaign’s Corporate Equality Index for the sixth consecutive year E C N 17 L A SUSTAINABILITY G DEFERRED A AT • Energy intensity down 27%, from our 2008 baseline, progressing toward 30% reduction goal 84% OF WASTE FROM • Met goal of using less water in the current year LANDFILLS than the year before • Number of locations certified to ISO 14001 environmental management system: 23 • Listed among the 30 top companies in the U.S. in Newsweek Green Rankings Named to Dow Jones Sustainability North American Listed on FTSE4Good Index of Companies Index for the seventh time for more than a decade 6 PHILANTHROPY Rockwell Automation contributed $11 million in cash and in-kind donations globally to education, human services, arts and culture, and civic organizations in 2017 $11 69% EDUCATION MILLION 18% HEALTH AND HUMAN SERVICES 7% CIVIC LITY BI SI 6% ARTS & CULTURE N O P S E R E T A R LOCATED IN SERVING O P 80+ COUNTRIES CUSTOMERS FOR R 20 WORLDWIDE 114 YEARS O C E C SAFETY N L A 17 Global safety performance, as Number of G A measured by Recordable Case Rate locations certified AT 0.35 (0.35), remained best in class in 2017, 15 OHSAS 18001 when compared to the average private industry rate occupational health and and the average rate for electronic manufacturing peers safety standard SUPPLIER DIVERSITY Spent $250 million with more than 750 U.S. businesses owned by women, ethnic and racial minorities, LGBTQ, and veterans or disabled INTEGRITY veterans, as well as designated SBA enterprises Named to Ethisphere Institute “World’s Most Ethical Companies” list for the ninth time 7 SUSTAINABLE CUSTOMERS WE ARE THE WORLD’S LARGEST COMPANY dedicated to industrial automation and information. Our 22,000 employees serve customers in more than 80 countries guided by our mission to make the world more productive and sustainable. THE CONNECTED ENTERPRISE UNLOCKS OPPORTUNITIES We are passionate about helping our customers and their employees be more productive by integrating control and information across their enterprises. We’re working together with a growing number of industrial producers that have started on a digital transformation journey to make better business decisions with better information. Through our In Colorado, one of the America’s fastest growing yoghurt innovation, industry experience, and applications expertise, companies reduced waste from lost batches by 95 percent we’re helping companies use the Industrial Internet of after it built a new production facility and automated Things (IIoT) to realize the vision and benefits of The operations with a Rockwell Automation plant-wide control Connected Enterprise. system. Noosa Finest Yoghurt also improved quality Across industries, applications, and geographies, real-time assurance and FDA regulatory reporting capabilities with information and analysis is unlocking opportunities for real-time data available 24/7, not only throughout the continuous improvement that deliver tangible business value operating plant, but also remotely. Overall, Noosa and smarter, safer, and more sustainable manufacturing. In increased production capacity by 300 percent. the food and beverage industry, for example, connectivity The Kraft Heinz Company increased production capacity and digitized processes have provided our customers access by 10 percent at its Ore-Ida brand potato production to actionable information to optimize operations, better use plant without adding to its footprint. By modernizing its resources, and improve quality. control architecture and incorporating predictive modeling Minnesota-based Milk Specialties processes raw milk technologies from Rockwell Automation, the Oregon and whey into a broad portfolio of ingredients. To drive facility more than doubled its project production goal. production process improvement, this rapidly-growing The new system detects and addresses variability issues company implemented manufacturing intelligence as it continuously makes micro adjustments to optimize technology from Rockwell Automation at three facilities, production and produce consistent foods. including one in Visalia, California. Analytics from the system The facility’s process engineer noted, “We always want to used to monitor water quality helped Milk Specialties meet maximize production, but our main priority is providing high- a state-mandated 30 percent water reduction. quality fries and tater tots to our customers.” 8 OUR PRODUCTS & NEW SUITE OF DRIVES SERVICES CONTRIBUTE INCLUDES ADVANCED TO SUSTAINABLE OPERATIONS ENERGY SAVING SOLUTIONS • Reduced waste Manufacturing operations around the • Increased energy efficiency world have deployed thousands of • Reduced emissions Rockwell Automation variable speed drives to save energy and increase productivity. • Regulatory and environmental compliance Our new PowerFlex® 755T series introduces • Safety of personnel, equipment, and process TotalFORCE® technology for superior electric motor control. The portfolio’s energy-saving features include a built- in regeneration capability that delivers energy from motors back to the incoming supply. Line regeneration reduces the need for braking resistors and associated cooling equipment and helps avoid wasteful energy dissipation. These drives also feature safety options that help protect people and equipment. WATER