CORPORATE RESPONSIBILITY REPORT 2016

Transcription

1 CORPORATE RESPONSIBILITY REPORT 2016 Start Here

2 A Letter from the Chief Executive Officer Just as we commit to customers that we will develop and deliver leading-edge products and services, we also share a deep commitment to improve the lives of our employees and strengthen our communities. This report provides a summary of our work in 2016 to support the communities where we live and work, detailing our progress around charitable giving, talent development, environmental health, employee safety and ethics. Specifically, we are highlighting our commitment in each of our focus areas: Scott C. Donnelly Chairman and Chief Our Local Communities: Executive Officer We make a positive impact in our local communities by supporting a diverse group of organizations, groups and interests. Through our philanthropic giving, which includes matching our employees contributions to qualified charitable organizations and the volunteer efforts by our people, we are making a difference for our neighbors. The Health & Safety of our Employees & the Environment: Just as innovation is at the heart of how we develop and produce our new products, innovation also drives our work to minimize the environmental impacts of our businesses and enhance the safety and well-being of our employees. Our Talent Strategy: One of the pillars of our company s growth strategy is our talent pipeline, which enables people to gain great experiences and pursue future opportunities within our businesses. Through formal and informal networking and learning and development programs, we identify and match talent to critical positions which, in turn, enables us to accomplish key business goals. Acting Ethically and Responsibly: Our reputation is our most valuable asset. We regard our values integrity, respect, trust and the pursuit of excellence as our North Star in how we conduct business with our employees, customers, suppliers and shareholders. We are proud of our work to build stronger communities, develop talent, reduce our environmental footprint and keep our employees safe and healthy and are committed to enhancing our work in each of these areas. It is part of the commitment that we make to our stakeholders in our role as a global corporate citizen. We are proud of our work to build stronger communities, develop talent, reduce our environmental footprint and keep our employees safe and healthy.

3 By the Numbers Textron is one of the world s best known multi-industry companies with businesses that serve a diverse and global customer base. With a rich history that began in 1923, we are equally excited about the future. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands. $13.8 Billion Revenues 36,000 Employees The day-to-day operations are led by each subsidiary and operating division while oversight, direction, and assistance is provided by Textron s Corporate Office consistent with sound corporate governance practices. For more details about our structure, governance, leadership and financial performance, please refer to the Textron 2016 Annual Report and the Textron 2016 Fact Book. 25 Countries Operations 209 Fortune 500 Rank

4 Our Commitment Making a Difference Our culture of continuous improvement is what drives us to build exciting new products and find new and more efficient ways to serve our customers. The same holds true for how we partner with charitable organizations, minimize our impact on the environment, grow the capabilities of our people and work with our communities. There are always new solutions or ways to improve on how we deliver for all of our stakeholders. How We Engage with Stakeholders We are engaged with our stakeholders on an array of issues. They include shareholders, employees, customers, suppliers, government agencies and civic and community organizations. With each of these stakeholders, we are committed to open and ongoing dialogue, keeping them informed on issues and events. Here are some of the ways that we are communicating: Employees Continuous improvement discussions Ethics and compliance reporting programs and Help Line Corporate and business-level print and electronic communications Customers Voice-of-the-customer product development surveys and interviews Customer satisfaction surveys to identify improvement opportunities Customer tours of Textron facilities and maintenance operations Customer advisory boards and dealer conferences Certification And Regulatory Agencies ISO and OHSAS certification inspections of Textron sites Adherence to Greenhouse Gas Protocols of the World Business Council for Sustainable Development Development And The World Resources Institute Partnership with the U.S. Department of Energy s Better Plants program Participant in the Carbon Disclosure Project Suppliers Workshops and documentation to align and collaborate workstreams Audits of supplier sites and operations Associations And Non-Governmental Organizations Board member and employee participation in non-governmental organizations and trade associations

5 Our Communities We are involved in our communities in many different ways. An employee group leads a donation drive to benefit a family in need. A business sponsors a team to participate in a community fundraising walk. Several departments band together to build a home for a non-profit organization. Look around our businesses and you ll see people dedicated to helping others in their community. The passion they bring to work each and every day is evident in what they do to help others. A Very Unique Partnership We are truly appreciative for what Textron Aviation has done for our Club, says Anne Chandler, the development director for the Boys & Girls Club of South Central Kansas. They ve truly made a difference, and it s safe to say our Club would not be where it is today without Textron Aviation s long-standing support. Anne describes Textron Aviation as the Club s big brother. Whatever the Club s need, Textron Aviation employees are there to lend a hand. employees themselves. We re able to take these kids and introduce them to people who are succeeding and being productive citizens, Anne says. Their people talk to the kids about potential career opportunities and what they need to do educationally to get there. Textron Aviation has also motivated other community leaders and businesses to embrace the Club and its mission. She cites the leadership of Scott Ernest, Textron Aviation s president & CEO and a member of the Club s board, for creating a heightened awareness within the community that has allowed the Club to provide enhanced services and programs for their members. Textron Aviation frequently hosts plant tours for Club kids. For them, walking through the cavernous manufacturing facility with aircraft lined up in various stages of production is awe inspiring. Equally inspiring is hearing from the I think it s a very unique partnership, says Anne of the Club and Textron Aviation. Time and time again, even when we don t think there s an answer, Textron Aviation will come through and help us work through a solution.

6 Our Communities Serving Families in Need The Ronald McDonald House in Providence serves as a home away from home for the families of children who are hospitalized or receiving major medical treatment at area hospitals. For the past five years, Textron and employees in the Corporate headquarters have provided support to the House so these families can feel even more at home during a difficult time. The partnership began in 2008 when the Textron Charitable Trust provided a grant to the Ronald McDonald House. In 2010, the first group of Textron employees volunteered to come to the House and make dinner for the families. The team enjoyed its work so much that they told their colleagues and, soon, a second team volunteered to make dinner. Since then, Textron employees have visited every eight weeks to prepare dinner for families. They ve also taken on other causes for the House. When their two kitchen stoves were in need of repairs, our employees rallied and raised enough money to purchase two new stoves. Serving a need in our community and some hearty meals, too is one way we give back. A Hand for Our Veterans We are proud of our work in supporting the men and women of the military with outstanding products and systems so they can carry out their missions safely and effectively. We also take great pride in having many veterans within our businesses they bring valuable skills sets and outstanding qualities to the workplace. Their presence makes us a stronger company. To enhance our recruiting of military veterans, Textron Systems has partnered with Edge4Vets, a national program that mentors veterans as they transition to the civilian workforce. In November, Textron Systems joined other businesses to help veterans understand how the values, skills and experiences they learned in the military translate to a civilian career. The program included a working session to help veterans map out career strategies as well as face-to-face networking to foster relationships that could lead to potential job opportunities. This is a valuable program for both the veterans, who are grateful to gain insights from businesses like Textron Systems, and for the businesses themselves to tap into some outstanding talent.

7 Our Communities Charitable Giving The Environment Our People: Safety Our People: Talent Ethics and Compliance Charitable Giving Making a positive impact on the local communities around the globe where we do business is an important pillar of our corporate mission. We fulfill that role by supporting organizations that share our concerns through active volunteerism, philanthropic giving and our non-profit Textron Charitable Trust. In 2016, we gave more than $6.2 million to help solve the big issues that matter to us. Our giving is focused in two areas: Workforce Development & Education and Healthy Families/Vibrant Communities. Of our total giving, 35% supported Healthy Families/Vibrant Communities; and 29% supported Workforce Development & Education. In addition, 23% of our giving was through our Matching Gifts program to organizations our employees personally supported and 13% supported United Way. Workforce Development & Education These are the programs that provide educational experiences for people of all ages and socioeconomic backgrounds. They are also important to develop the world s future workforce. In addition, they support our corporate values of integrity, trust, respect and pursuit of excellence. They include job training and employment development, educational enrichment and mentoring programs for youth and college/university assistance. Healthy Families/Vibrant Communities The focus of these programs is to invest in the quality of life in the communities where we do business. A wide range of organizations fit this description. They encompass arts and culture, community revitalization and health and human services. Charitable Contributions Healthy Families/Vibrant Communites $2,204,327 35% Workforce Development & Education $1,792,189 29% Matching Gifts $1,476,454 23% United Way $808,115 13%

8 The Environment At Textron, minimizing the environmental impacts of our business activities is a key component of our facility operations. Our commitment to the environment starts with compliance to government regulations and our Global Textron EHS Policies. Beyond compliance, we are focused on reducing the energy and natural resource intensity of our operations by setting targets and measuring key environmental performance indicators. Textron business units set individual annual improvement targets for energy efficiency, greenhouse gas emissions reduction and waste minimization. These targets vary by business and generally represent between 1 to 2.5% annual improvement. Energy and Fuel Consumption Greenhouse Gas Emissions 2 Our 2016 performance data are shared to the right. Going forward we will continue to work diligently to reduce our environmental footprint, applying what we learn and improving our processes. Waste Minimization Recycling 1 Environmental performance metrics are normalized to revenue. 2 Greenhouse gas (GHG) emissions are determined follows the Greenhouse Gas Protocols of the World Business Council for Sustainable Development and the World Resource Institute. Consistent with these protocols, Textron accounts for direct (Scope 1) and indirect (Scope 2) GHG emissions in terms of CO2-equivalents.

9 The Environment Chromate Reduction Collaboration Leads to a Better Solution. For years, chromate-based primers have been standard in the aerospace industry because of their anti-corrosive properties. Yet chromates have characteristics than can be harmful to humans and the environment, and their use requires extensive control measures. Bell Helicopter is leading the way as the aerospace industry moves away from chromate-based primers. A cross-functional team from Bell Helicopter worked diligently to evaluate alternative solutions. Over the course of several years, this team of product, facility and environmental engineers as well as paint and supply chain specialists at Bell s facilities in both the U.S. and Canada screened a number of alternatives. Following a thorough evaluation and a rigorous series of testing, the team selected a chromate-free primer and process that met rigorous aerospace performance criteria for our products, while being safe for our employees and the environment. This new primer is now being used on commercial helicopters at Bell Helicopter s Mirabel, Quebec; Piney Flats, Tennessee and Mexico facilities. Recognizing the worker safety and environmental benefits, it has also been adapted by the majority of Bell Helicopter s suppliers. The collaboration among the Bell team that bridged functions, facilities and countries is now being carried over to other areas of our manufacturing operations. The Bell team is working with Textron Aviation to examine other chemicals and processes that are in use and determine if there are safer, more effective alternatives.

10 Our People Workplace Safety At Textron, we are committed to maintaining and enhancing the safety and well-being of our employees and work hard to achieve our ultimate vision of zero workplace injuries. Employee Health and Well-Being Textron s well-being mission is to develop a culture that empowers employees and their families to adopt and maintain a healthy lifestyle. Our well-being core operating principles are: Textron manages EHS systematically. At the corporate level, our Global EHS Policies establish a framework that includes facility auditing, performance reporting and standards around EHS programs. The businesses augment the corporate program with management systems of their own. For instance, Kautex facilities are ISO and OHSAS certified. The overall program is guided by the Textron EHS Council, whose members include the senior EHS leaders from the Textron corporate office and each Textron business unit. We use an annual goal setting process to drive environmental and injury rate improvements. The injury rate reduction goal is one of a few key performance metrics that reside at the highest level of the organization. Performance to these goals is tracked and reported to senior leadership as part of our Plan-Do-Check- Act process. Healthy, empowered employees are safer and more productive. A healthy work environment promotes healthy lifestyles outside of work. We offer a wide range of well-being services for employees and their families and constantly solicit feedback to ensure services and resources are meeting their needs. Our mission is aligned around three major core activities: Developing a healthy work environment Improving the communication about resources and services Promoting programs focused on physical, mental, financial and social well-being Textron uses a number of metrics to evaluate health and safety performance globally. The United States Department of Labor Occupational Safety & Health Administration (OSHA) recordkeeping rules are the guidelines all Textron facilities use for reporting injuries. In 2016 we had a Total Recordable Injury Rate (TRIR) of 1.23 and a Lost Time Injury Rate (LTIR) of 0.31.

11 Our People Ergonomics Looking Out for Our Customers. Greenlee makes the tools that are used each and every day by electrical and plumbing contractors. For these customers, ergonomic-related injuries can be all too common. From elbow and wrist strains to rotator cuff tears, these types of injuries mean time away from the job site and more time in doctor s and physical therapist s offices. To address some of these issues, Greenlee product engineers have teamed up with in-house ergonomics specialists to design tools that alleviate some of the underlying causes of common injuries. Greenlee s Gorilla Press tools, for example, require less gripping force than the tools of competitors, thereby reducing strain on necks, arms and shoulders. Greenlee also works with its customers to educate them on how to avoid injuries through its mobile ErgoLab an industry first that shows the effects that poor posture and repetitive motion can have on their bodies. Using electromyography sensors attached to different muscle groups, our researchers can measure and record the amount of electrical activity produced by those muscles using different tools and in a variety of positions. This information helps our customers understand how to select the right tool for the job. Practicing what we preach, Greenlee is also using its expertise to make change within its own facilities. Our internal ergonomics program focuses on improving how Greenlee, Greenlee Communications, Sherman & Reilly and HD Electric employees go about their jobs and how their workstations could be better optimized to decrease musculoskeletal injuries. When your business is developing products for customers to work faster, safer and easier, keeping their bodies in good working order and educating them on muscoskeletal health fits with that mission.

12 Our People Developing Talent Our talent, more specifically, the talent of our 36,000 employees around the world, is what drives our success as a company. We are committed to providing meaningful opportunities for our people to advance their careers within Textron, helping them succeed and driving growth for our company. When our people advance, it creates exciting opportunities for others to take on new roles and allows us to bring in new talent to join us and begin their career journey. We look at our talent strategy as an active pipeline in which we continually create exciting opportunities for our people to grow and contribute in meaningful ways that, in turn, opens additional opportunities for others. It begins by matching the right people with the right positions. Ongoing discussions enable us to communicate and set performance expectations and then reward outstanding results-oriented performance. Through our annual talent review process, our senior leaders assess the talent needs of each business, ensuring that top talent has challenging assignments as the businesses grow and evolve. This process, along with ongoing workforce planning, provides insights into the current and future talent needs of the organization. We build the capabilities of our people through informal and formal learning experiences with opportunities to learn advanced technical skills as well as skills for their ongoing professional development. Textron University offers courses that are both specific to their business as well as their function.

13 Our People Reaching Potential Through Manufacturing: A Life Changer for Students As Textron Specialized Vehicles in Augusta, Georgia adds to its product line-up and expands its operations, they have to ensure a pipeline of talent to sustain its manufacturing operations. Preparing local students for these positions, however, proved challenging. The local school district s graduation rate was 65 percent with many students facing issues related to poverty, homelessness and families with addiction issues. But an intrepid team from TSV has come up with a solution that not only helps the business plan for the future, but gives at-risk high school students a chance to succeed. From these challenges came Reaching Potential Through Manufacturing (RPM). Started in August, RPM is a school-within-a-manufacturing facility. Students at greatest risk for dropping out were selected for the program. Located in TSV s new 50,000-square-foot building that serves as a subassembly manufacturing facility, the 75 students work four-hour-shifts while taking classes either in their school or at the facility. The school district provides these students with a plethora of services, including breakfast, lunch and dinner as well as transportation to and from the facility, to help address some of their basic needs. Some of the students who complete the program will be hired full time by TSV. Others will have gained valuable manufacturing experience that they can take to another job. Ultimately, we are creating a pipeline of talent that is good for our business, the community and the students. A lot of people told us this couldn t be done, says Heather Meyer, the plant manager. But we did this with three key things: a strong commitment, a keen understanding of the school system and a recognition of the challenges. The program is working. The attendance rate among students has risen to 95 percent from 84 percent and the first student has successfully graduated. Dr. Angela Pringle, the superintendent of the local school system that has partnered with TSV says of RPM: It s a life changer.

14 Ethics and Compliance Reinforcing Ethical and Compliant Behaviors Business Conduct Guidelines All new employees are asked to review and acknowledge receipt of Textron s Business Conduct Guidelines, which constitute our Code of Conduct. Ethics & Compliance Action Plans Each business unit adopts an annual plan to ensure mitigation of compliance risk. As a company that does business around the world, we adhere to a strict standard of conduct to ensure that every person acts in an ethical manner and complies with the relevant laws and regulations of our host countries. Textron s Ethics and Compliance Program reinforces our values of integrity, respect, trust and the pursuit of excellence. By building this Program, Textron has distinguished itself as a company that does the right thing. Our strong culture of ethics and compliance has enhanced our standing among customers, suppliers, shareholders and employees, and enabled us to maintain strong relationships with these stakeholders. For more than 30 years, Textron s Ethics and Compliance Program has served as a road map and a resource for our employees and it evolves with changes in business and regulations. As part of this Program, each business unit prepares an annual risk-based Ethics and Compliance Action Plan and engages in a variety of rigorous processes to assess and mitigate compliance risk. Compliance Training Modules Training and awareness are an integral part of the Ethics and Compliance Program. Live and online compliance training are required, and more than 100,000 online training modules were completed in Ethics Helpline Multiple avenues exist to raise issues, ask questions or report violations without fear of retaliation, including our confidential Ethics and Compliance HelpLine.