Environment: Materials

Since we manufacture many of the components included in our products, we employ a wide variety of renewable and non-renewable materials, including steel, copper and aluminum. We buy 85% of the materials used in our U.S. manufacturing from U.S. suppliers. We work closely with our suppliers to ensure they match our commitment to corporate social responsibility. We work with them to reduce packaging, shipping costs and related emissions. Read more about Supplier Transparency and Performance. For more information about our materials management strategy, please refer to our Form 10-K.

We buy 85% of the materials used in our U.S. manufacturing from U.S. suppliers

 

MATERIALS DATA

Savings in emissions from returnable packaging projects (annually) of more than 1,000 tons of CO2e; reduction in solid waste from returnable packaging projects (annually) of more than 1,000 tons..

Approximately 14% of our total volume of products and materials (by revenue) was taken back in 2017 and reused or recycled by Ingersoll Rand.

 

Management Approach

Product Take-Back and Recyclability

The Ingersoll Rand Product Development Process (IRPDP) stipulates that we design with end-of-use considerations, including disassembly, repair and reusability of product components. IRPDP also encourages the use of recycled content in new product designs. For several of our products, we have also developed specific end-of-use manuals. To date, we have created seven end-of-use manuals. Our goal is to create an end-of-use manual for 100% of New Product Development (NPD) projects by 2020. Please see our Progress Toward 2020 Targets section.

As part of the IRPDP, our Product Footprint Study tool—a streamlined life cycle assessment (LCA)— addresses material use and allows for a comparison between design scenarios. When we design a product, we account for all aspects of the product, including manufacturing, the use phase and end-ofuse considerations. By incorporating the life cycle considerations during the design phase, we identify and implement other environmental impact reductions that include packaging, recycling, manufacturing improvements, etc.

Packaging

$8 million saved to date

in productivity growth and cost avoidance

As part of our environmental policy, Ingersoll Rand is committed to eliminating packaging waste. This includes considerations such as transport, recycling of packaging material and waste disposal concerns.

Our packaging engineers develop innovative solutions for packaging finished goods and parts efficiently. In addition, our global logistics team looks for ways to implement returnable packaging on inbound and finished goods where feasible in our supply chain.

Recognizing that one-way packaging supply chains result in an unacceptable amount of waste, Ingersoll Rand initiated a returnable packaging program. Supported by the global logistics team’s returnable packaging engineers, the effort is currently underway at fourteen North American manufacturing sites. The program, aimed at reducing the more than 2,500 pounds of solid waste produced from packaging each year, has saved the company more than $8 million to date in productivity growth and cost avoidance. Currently, the Thermo King, Trane Commercial, Trane Residential, Industrial, and Compression Technologies and Services (CTS) strategic business units are all part of this initiative. The team is even beginning to look at intercontinental opportunities for returnable packaging.

In addition, we publish packaging guidelines for our business partners on our website. According to the guidelines, packaging methods that include elements that need to be disposed of through a landfill are not acceptable for deliveries to Ingersoll Rand facilities or associated third-party warehouses. Preferred packaging systems are returnable, reusable or recyclable.

Material Take-Back Programs

Remanufactured equipment from Ingersoll Rand makes it easy to meet our goals by providing higherefficiency products, reducing our environmental footprint and promoting the strength and ingenuity of our people. Ingersoll Rand’s CTS business continues to expand remanufacturing capabilities in new regions to increase remanufacturing reach.

Multiple businesses within Ingersoll Rand have a take-back program.

  • Thermo King independent dealers take back refrigeration units to be resold into secondary markets. Thermo King equipment is preferred in this regard and commands premium pricing in the secondary market, as it is more durable, reliable and supported than other brands.

  • The Ingersoll Rand Tools business generates revenue through refurbished batteries, air motors, and engine starters.

We have increased our total revenues represented by products that are disassembled, remanufactured, reused or recycled.

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