Governance: Regulations and Policy

Energy efficiency remains integral to our global portfolio innovation efforts. To deliver growth with a focus on innovation, in 2013, we expanded our efforts to understand and capture the full spectrum of our product and service impacts by incorporating life cycle assessments (LCAs), customer opportunity assessments, resource consumption and sustainability risk analysis (including emerging regulations) into the Ingersoll Rand Product Development Process (IRPDP).

We are engaged with policymakers to bring solutions to topics that are material to our business, with the two areas where the company is most active being energy efficiency and refrigerant policy. Ingersoll Rand supports cost-effective policies that facilitate market transition to more energy-efficient technologies. We support strong energy efficiency requirements for new and existing construction and are working with governments in the United States, Canada, Mexico, the European Union, China and India to facilitate adoption and enforcement of such programs. We actively participate in international forums, such as the United Nations Framework Convention on Climate Change and the Montreal Protocol, to help create an organized approach to global refrigerant transitions. We are also working proactively with government agencies and refrigerant suppliers to help identify alternatives and facilitate a practical transition that reduces greenhouse gas (GHG) emissions as early as possible. 

Public Policy

Ingersoll Rand engages in public policy both directly and through associations and coalitions to understand and help shape future regulations. When appropriate, technical policy experts engage directly with regulators and other key stakeholders both in advance of and during the rulemaking process. We periodically review our approach to issues with the impacted business or function and leadership; during this review, we discuss strategies and make adjustments. Success is achieved when organizational alignment is maintained during the issue management process, when individuals and leaders feel prepared for interaction with policymakers and when the businesses and functions are prepared to comply with regulations once final. Grievances are dealt with throughout the periodic review process.

We engage with government agencies and refrigerant suppliers in shaping a global transition to next-generation refrigerants with low-global warming potential. In accordance with our global Climate Commitment, we are working proactively with suppliers to identify and develop a viable, long-term low-global warming potential alternative to R410A, which is the most prevalent hydrofluorocarbon (HFC) used in heating, ventilation and air conditioning (HVAC) today. This alternative is crucial to the success of the Kigali Agreement to the Montreal Protocol, which seeks to phase down HFCs by 85% by 2046.

Our key objective is to offer Ingersoll Rand customers the widest possible range of options. We continue to evaluate the available alternatives for global markets to ensure we have a strong service organization and supply chain in place to support their transition to low-global warming potential alternatives.

Political Activity and Contributions

The laws of many countries prohibit or strictly limit contributions by corporations to political parties and candidates. Although our employees may engage in personal political activity, they are prohibited from doing so on behalf of Ingersoll Rand or in their capacity as a company employee. In the United States, Ingersoll Rand manages a nonpartisan political action committee (PAC), which is compliant with all applicable laws and is regulated by the Federal Election Commission (FEC). Under the FEC, all funds received by the PAC, and resulting contributions to federal candidates, are publicly disclosed. For a list of federal contributions, see here. Although Ingersoll Rand employees may make personal contributions to political parties and candidates, they are not permitted to receive any type of reimbursement from the company.

Ingersoll Rand Federal Political Action Committee Total Contibutions (U.S. Only)

2011

2013

2014

2015

2016

2017

$2,000

$7,500

$37,500

$11,000

$24,500

28,500

 

Compliance

Ingersoll Rand is committed to operating in a way that safeguards our people and protects the environment.

To achieve a zero injury and incident culture and to meet our environmental goals, we are committed to integrating sound environmental, health and safety (EHS) practices into our everyday activities with our stakeholders. From a regulatory authority compliance perspective, Ingersoll Rand:

  • Complies with or exceeds requirements of global, national, state and local statutes, regulations and standards that protect the environment, human health and safety. In all cases, whether or not applicable laws and regulations exist, we apply sound EHS management practices, which continue to drive our strong compliance record.

  • Conducts regular internal and third-party audits to verify compliance with EHS regulatory requirements and company standards.

  • Monitors emerging issues and keeps abreast of regulatory changes and technological innovations.

Ingersoll Rand provides refrigeration, cooling and air conditioning solutions for our customers globally. Therefore, we take responsibility for managing materials in a manner that protects our environment, employees, customers and communities. Some refrigerants used in Ingersoll Rand products are considered ozone-depleting substances and may have high global warming potential. We use responsible and sustainable operating and handling practices, which minimize refrigerant leaks and avoid environmental and safety impacts. 

EHS Management

Our EHS policy is publicly available and has been signed by Michael W. Lamach, chairman and CEO.

Our EHS policy is more than just a document containing guiding principles and a summary of our policies and obligations. It is a compilation of everything we stand for and the trust we have built through decades of proven results.

It is a promise to our customers, business partners, shareholders, communities and each other that we will continue to be good corporate citizens and remain committed to operating safely and protecting the environment.

Keith Sultana, senior vice president of Global Operations and Integrated Supply Chain, serves as the executive sponsor of EHS programs across all Ingersoll Rand operations. Our EHS Council, consisting of EHS leaders from the corporate team and each business unit, meets regularly to develop or enhance our EHS management standards aimed at improving performance. Each of our manufacturing and service facilities continues to mature our EHS management systems. To push us further, we set annual goals in key impact areas and track our continuous improvement.

Employee engagement and EHS committees are critical to effective EHS programs and improvements. We directly involve employees in strategic planning, assessing performance status and as a means to ensure continuous engagement on the part of leadership, subject matter experts and production associates. Employees are able to participate in identifying safety issues and implementing solutions to improve their workplace. These committees generally meet at least monthly.

The EHS function uses a leading cloud-based software solution, Gensuite™, which enables Ingersoll Rand to foster safe and sustainable workplaces worldwide. Gensuite™ is used to collect and track data and provide monthly reports on EHS progress to the executive and facility-level leadership teams. The insights in these reports lead to program improvements and initiatives to drive continuous improvement in our EHS performance.

We focus on performance monitoring and improvement in the following areas:

  • Pollution prevention, environmental management and integrated permitting

  • Air emission management

  • Water supply management, including a water quality management system

  • Hazardous substance management

  • General safety and health management

  • Personal protective equipment

  • Wastewater discharge management

  • Waste management

  • Dangerous substances

  • Physical hazards

  • Mechanical hazards

  • Fire protection

Our corporate EHS group regularly monitors facility-level performance in these areas against global EHS standards and applicable regulatory requirements.

We use a combination of third-party consultants and internal EHS staff to conduct independent audits of each Ingersoll Rand site on a prescribed frequency that depends on the site’s complexity.

Our proactive oversight process also requires key facilities to conduct annual EHS self-assessments, following a standard protocol to identify opportunities to improve EHS performance.

Keeping our employees safe is a longstanding priority for Ingersoll Rand and a fundamental tenet of our culture. The majority of personnel located at our manufacturing sites, other large locations and those team members who complete service work at third-party locations receive EHS training annually. Our foundation for recording and reporting accidents is the U.S. Occupational Safety and Health Administration (OSHA) regulation 29 CFR 1904. This standard is applied to Ingersoll Rand sites globally. Additionally, sites will comply with local regulations when they are stricter than the U.S. OSHA standard. Our EHS data is assured annually by a third party and the results of our 2017 assurance can be found here. Employees have a number of ways to be involved in health and safety programs. Global health issues are addressed through multiple mechanisms, including, among others, high-risk travel destinations, global crisis emergency planning, practices for emergency medical responders and company health programs. Additional awareness training is planned for service personnel who perform work in medical health care facilities.

During acquisitions, Ingersoll Rand executes a formal due diligence process that includes EHS considerations. Formal change management programs are implemented for new operations and/or the introduction of new or redesigned products. EHS risk assessments are implemented at multiple levels, including pre-task, pre-project, within change management and when evaluating overall enterprise risks. Ingersoll Rand does not subscribe to Article 15 of the Rio Principles and therefore currently does not address the precautionary approach and principle. Ingersoll Rand received no significant fines for noncompliance in 2017. Additional information can be found here

Each of our manufacturing and service facilities continues to mature our EHS management systems. To push us further, we set annual goals in key impact areas and track our continuous improvement.

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