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Report 2014
Parker can be found on and around everything that moves, providing
precision-engineered solutions for a wide variety of mobile, industrial
and aerospace markets. With annual sales exceeding $13 billion in
fiscal year 2014, Parker is the world’s leading diversified manufacturer
of motion and control technologies and systems.
By applying its engineering expertise and broad range of core
technologies, Parker partners with its customers to improve their
productivity and profitability, while helping to solve the world’s
greatest engineering challenges.
About This Report
The information in this report addresses
how Parker is applying its core
technologies to make a positive impact
on the world. All data corresponds to
Parker’s fiscal year 2014 (July 1, 2013
through June 30, 2014) unless otherwise
noted. The previous report corresponded
to Parker’s fiscal year 2013. Parker’s
intention is to report on an annual basis.
Report Scope
The data provided in this document
reflects Parker’s global manufacturing
operations in which Parker has a 50%
controlling interest or majority ownership.
It also includes employees in those
operations and the associated
headquarters and distribution centers
under Parker ownership. The scope
does not include Parker suppliers,
customers, distributors, contractors
or minority-owned joint ventures.
Contact Us
Parker welcomes your comments and
questions about its sustainability efforts
by email: rtaylor@parker.com
Table of Contents
Message from the
Chief Executive Officer____________2
Sustainability____________________5
Governance, Ethics
& Compliance___________________9
People	________________________13
Planet_________________________19
Product Stewardship____________23
1
The Win Strategy
Focused on long-established Parker
goals of premier customer service,
financial performance and profitable
growth, the Win Strategy is a disciplined
and consistent business strategy that
has transformed the company and
improved operations worldwide since
it was initiated in 2001. Designed as an
instrument of operational change, the Win
Strategy is a powerful document adopted
by all Parker locations worldwide.
For The Year Ended June 30 (dollars in thousands, except per share data)
2014
Net sales $ 13,215,971
Gross profit 3,027,744
Net income attributable to common shareholders 1,041,048
Net cash provided by operating activities 1,387,893
Diluted earnings per share 	 $ 	6.87
Number of employees 57,447
2
Message from the
Thomas L. Williams,
Chief Executive Officer
In recent years Parker has continued to
expand in developed and emerging
markets, and as our global footprint
grows, so too has our opportunity to
make a positive impact on the lives of
those around us and on the environment
in which we operate.
It has become clear that our vision of
operating a more sustainable business
complements our ability to deliver
premier customer service and achieve
our financial performance goals. To guide
our efforts, in 2014 we formalized a
sustainability framework that focuses on
people, planet and products.
One of Parker’s highest priorities is to
provide a safe work environment for its
people. We are on the journey toward
establishing a safety-first culture in which
all employees are engaged in driving
safety performance, by establishing and
embracing operating processes which
3
further reduce the risk of workplace
accidents. Robust management systems
will be used to routinely measure and
evaluate our progress.
Minimizing safety risks begins with
developing a better understanding of
what causes them through
comprehensive education and training.
Increased awareness of risks and how to
prevent them, combined with the
appropriate safety equipment in all
facilities, creates an environment where
we can achieve our safety goals.
Parker aims to rank among the top
quartile of industrial manufacturers for
safety performance; we are making
progress toward this goal and will
continue to take critical steps to further
reduce the number of industrial
accidents. Parker leaders around the
world are engaged in ensuring that every
employee and guest who visits a Parker
facility go home safely.
Considering the size and scope of
Parker’s operations, we fully appreciate
our obligation to operate responsibly and
to preserve the vibrant communities we
call home by serving as active stewards
of the environment. We should try to
conserve whenever possible, and
encourage others to do the same. In fact,
Parker employees are empowered to
reshape aspects of our operations to
reduce the consumption of water, fuel,
electricity and other resources. In doing
so, these employees are implementing
ideas to reduce operating costs and
create alignment between our financial
and sustainability goals, enabling Parker
to be more competitive in an increasingly
challenging business environment.
We continue to look for new ways we can
improve performance. Recently Parker
added a new element to its sustainability
strategy by including packaging as a key
resource conservation opportunity. In
partnership with our customers, we are
currently evaluating several other options
including a packaging take-back
program, increasing the use of recycled
materials and converting to reusable
containers. With hundreds of thousands
of products and systems being
produced, this initiative has the potential
to significantly reduce costs and raw
material consumption, and increase
efficiency throughout Parker’s supply
chain.
Fueled by a passion for innovation, our
engineers are designing products that
are lightweight and built using the safest
materials, operate with greater efficiency,
last longer and are easier to recycle. We
view innovation as customer-driven, and
our advancements to product design are
made to help customers meet their
sustainability goals by reducing energy
consumption and operating costs, and
minimizing their environmental footprint.
From the products and systems we
manufacture to the remarkable
individuals we employ and the world-
class customers we partner with, Parker
is engaged in countless opportunities to
make a positive impact on the world. By
operating in alignment with our renewed
commitment to sustainability, we are able
to achieve profitable growth while
protecting the environment and
improving quality of life today and for
future generations.
Thomas L. Williams
Chief Executive Officer
April 2015
A meaningful measure of
Parker’s impact is the ability
to improve the lives of people
it reaches.
4
5
Sustainability is a vast, complex concept. Determining the ideal
approach for applying sustainable practices across the operations
of a global organization presents both a significant challenge and a
meaningful opportunity.
After years of conducting comprehensive research, benchmarking within the
industry and simply learning by experience, Parker’s sustainability commitment
has been defined as:
To responsibly solve the world’s greatest engineering
challenges to foster enduring success for the company,
customers and communities.
The implications of this commitment can be further clarified according to three key
areas where Parker has an opportunity to maximize the impact of its sustainability efforts.
People
A meaningful measure of Parker’s impact
is the ability to improve the lives of people
it reaches. This obligation is reflected
in Parker’s efforts to help employees
maintain a healthy lifestyle, create an
engaging and safe work environment
and strengthen all of the communities
around the world which Parker
calls home.
Planet
With operations in 50 countries, Parker’s
manufacturing practices can have a
significant and widespread effect on the
world. The company fully understands
this responsibility, and is dedicated to
making a positive environmental impact.
Through the use of eco-friendly materials,
the elimination of waste through various
recycling programs and the active
reduction of resources such as water
and energy used in its manufacturing
facilities, Parker is helping to protect the
environment for future generations.
Products
As a global manufacturer, the most direct
way for Parker to impact the world is
through the products and systems
it manufactures. From conception to
disposal, Parker engineers analyze
the entire product lifecycle to create
products that are produced using
sustainable materials, designed to
operate at peak efficiency and can be
reused or recycled upon disposal to
reduce waste sent to landfills.
6
Potential Risks and
Boundaries
Given the diversity of the markets
Parker serves and the products it
manufactures, as well as the size and
complexity of its supply chain, there
are a range of opportunities and risks
that affect the company’s ability to
meet its sustainability objectives.
Parker’s products rely on energy to
function, and a change in energy source
can impact product design and related
costs. Scarcity of any of the wide array
of metals and organic materials Parker
utilizes could also impact the composition
and design of its products.
Each material aspect of Parker’s
operations have clear, sustainable
parameters and are pertinent to the
company’s success in several ways,
including: energy consumption and
emissions for environmental performance;
occupational health and safety; child
labor and nondiscrimination for human
rights performance; community for
social performance; and economic
results for financial performance.
The boundary condition used for all of
Parker’s key aspects and performance
metrics is from the point of supplier
delivery to the point of distribution of
a finished product. At this point in time,
the company only takes measured steps
into the area of raw material sourcing
and finished product application as it
relates to sustainable elements such as
energy, emissions, safety, human rights
and social performance. This position
is not a significant change from the
previous report.
7
Stakeholder
Engagement
With a focus on continuous improvement,
Parker engages a number of stakeholders
to help strengthen the strategies in place
to reach its sustainability objectives.
Parker receives valuable customer
input through direct feedback from its
marketing and sales teams; from
employees through a biannual global
survey; from suppliers on their
compliance with Parker’s sustainability
requirements through the company’s
supply chain web portal; and from
Parker leaders through interviews
and polls.
Additionally, Parker analyzes information
from sustainability ratings and shareholder
feedback, and benchmarks with its
diversified industrial peer group.
Supplier Partnerships
Parker is committed to partnering with
world-class suppliers focused not only on
premier customer service and maintaining
the highest standards for quality and on-
time delivery, but on reducing resource
consumption and waste.
With an annual spend exceeding
$6 billion, continuing to improve
sustainability throughout the supply chain
presents a compelling opportunity for
Parker to reduce its global footprint.
Precision Cooling Division
New Haven, IN, USA
Employees designed and built a
closed-loop water cooling system
which reduces water consumption
by 4,250,900 gallons of water per
year, and installed high-efficiency
LED lighting which decreases
energy utilization by 643,268 kW
per year, saving the division more
than $40,000 in utility costs.
643,268
GALLONS OF WATER SAVED PER YEAR
kW REDUCTION PER YEAR
DECREASE IN UTILITY COSTS
8
Parker’s way of doing
business is the foundation
of the company’s sustained
value and long-term success.
9
For nearly a century Parker has experienced first-hand the value of
ethical behavior and conducting business with integrity. From
creating enduring partnerships with customers and suppliers to
attracting honest and inspired employees aligned with the company’s
vision, this way of doing business is the foundation of Parker’s
sustained value and long-term success. While the pace of business
today is rapid and the world can change erratically, Parker’s Values
Statement remains strong and constant. Whether solving the world’s
greatest engineering challenges, delivering world-class customer
service or supporting local communities, Parker always strives to do
what is right.
Corporate Governance
To instill the highest standards for
ethical behavior, business leaders
must set an example for all employees
at their company. In Parker’s case, the
company’s commitment to coupling
sustainable, long-term growth with
responsible corporate citizenship
begins with its Board of Directors. The
Board has responsibility to represent
stakeholders in overseeing the business
strategy and governance matters of
the company. Eleven of Parker’s 14
directors are “independent” based on
the applicable independence standards
of the New York Stock Exchange and
Parker’s Independence Standards for
Directors. Each director must stand for
election annually. To learn more about
Parker’s Board, visit www.phstock.com/
corporategovernance.
Global Code of
Business Conduct
A dependable resource for all
employees regardless of background
or location, Parker’s Global Code of
Business Conduct sets clear guidelines
for respectable behavior, highlights
important policies and summarizes
certain fundamental legal requirements
that employees must follow at work. It
also provides guidance about
resources to which employees can turn
if there are questions or concerns
about a potential legal or ethical
problem.
10
Integrity and Ethics
Parker’s commitment to operate
worldwide in a manner that is respectful
and ethical can be traced throughout
the company’s history. As a result,
Parker enjoys open and trustworthy
relationships with its employees,
customers and investors, and values
its reputation as a dependable and
honorable business partner.
Recently Parker has embraced a new
approach to ethical behavior guided
by a set of globally-accepted virtues,
providing a common language which
transcends cultural boundaries. This
framework is explained in “Winning With
Integrity,” a companion publication to the
Global Code of Business Conduct and
Parker’s Values Statement.
Reflective of a natural alignment of the
virtues and their own personal values,
examples of these character attributes
are demonstrated every day by Parker
employees, who are actively engaged
in preserving Parker’s reputation and
protecting its financial strength by
maintaining the highest standards
for ethical behavior.
The Global Code of Business Conduct
and “Winning With Integrity” are available
in multiple languages, and every Parker
employee receives a personal copy.
Both publications are available online
at www.parker.com/integrityandethics.
Corporate Compliance
Parker’s corporate compliance
infrastructure is designed not to satisfy
a defined set of rules or regulations, but
to instill business practices which reflect
the company’s standards for ethical and
responsible behavior.
The Vice President – Audit and
Compliance is available to all Parker
employees, shareholders, business
partners, customers and the general
public to provide guidance on issues
relating to the implementation of
practices described in the Global
Code of Business Conduct.
At the local level, Parker’s network of
Compliance Officers consists of more
than 140 individuals who collaborate
with management, implement
training programs and facilitate open
communication to maintain compliance
and help instill Parker’s values
throughout the organization.
“The virtues are aspirational and inspirational, and help
us to leverage the strengths of our culture. We use the
virtues to aim for the good in all that we do, and they are
an important developmental tool helping us to drive
sustainable business results.”
-Andrew D. Ross, Vice President and President, Engineered Materials Group
11
Parker’s Integrity Line
If any Parker employee witnesses
behavior they feel is misaligned with
Parker’s values, they can voice their
concerns through the Integrity Line on
a confidential and anonymous basis.
Access to the Integrity Line is available
through a secure website and toll-free
by telephone from all countries in which
Parker does business.
The availability of the Integrity Line
and instructions for its use are widely
publicized to employees around the
world. Parker complies with the special
requirements of the European Union.
All reports to the Integrity Line are
investigated by qualified personnel
who have been trained to conduct
investigations lawfully, fairly
and confidentially.
Education and Training
Avoiding any actions which may be
considered unethical or even illegal
begins with developing a thorough
understanding of Parker’s standards
for business conduct. From senior
management down to every individual
employee, Parker provides comprehensive
training on core issues related to ethics
and compliance. Based on individuals’
roles and the risks associated with their
job responsibilities, Parker also provides
in-person training on topics such as
antitrust laws, trade laws and corruption
in business.
Ongoing Commitment
Parker modifies its compliance
program, including policies, procedures
and related training, in response to new
legislative and regulatory requirements,
enforcement trends, political and public
policy concerns and trends in the broader
business and financial environments.
For example, Parker has implemented
a robust anti-corruption program and is
raising awareness through internal training
and sharing its stance with business
partners. Parker believes these actions
are critical in preserving the respect and
trust of its stakeholders.
12
Parker employees are
the foundation of the
company’s success.
13
Create a culture where all individuals are empowered to make
decisions which impact performance. Maintain a resolute focus on
workplace safety. Approach professional development and career
progression at the individual level. Offer the widest range of options
for managing health and wellness.
Although it seems like an ambitious list, these are among the actions
Parker has taken in the interest of its employees, who are the
foundation of the company’s success.
Employee
Empowerment
and Engagement
Of the many potential areas on which
to focus, “Empowered Employees”
was long ago selected to form the
foundation of Parker’s Win Strategy.
This decision reflects the value Parker
sees in empowering employees to
leverage their knowledge and expertise
to present ideas and make decisions
which significantly impact the
company’s operations.
Today, under the guidance of the
Employee Empowerment Council,
several initiatives are underway which
foster collaboration within and among
different functional areas of the
company, and share ownership of
continuous improvement activities
across a broad range of employees.
By implementing High Performance
Teams, a structured approach
to team work and collective decision-
making, Parker empowers employees to
work together to continuously improve
customer service and achieve strategic
business objectives.
Parker Canada
Over 200 employees at Parker
locations across Canada joined
together to raise awareness around
various types of cancer and
donated more than $20,000
to support the Canadian
Cancer Society.
>$20,000TO SUPPORT THE
CANADIAN CANCER SOCIETY
14
Global Wellness
Program
Building upon the success of its wellness
initiative launched over a decade ago,
Parker introduced the global Path to
Wellness program this year to further
strengthen and expand the options
available to employees for managing
their health.
Given the program’s flexible structure,
the offerings available through Path
to Wellness can be customized on
a regional basis. A wellness-focused
team of employees at each of Parker’s
facilities develops programs to address
specific health risks while reflecting the
unique needs, culture, demographics
and budget of the location.
The Path to Wellness program is
designed to enable employees to
embrace a healthy lifestyle consisting of
a balanced and nutritious diet, routine
exercise and the conscientious
management of everyday stress.
Sales Company Spain
Madrid, Spain
Employees converted
an old storage area into
an on-site gym which
offers fitness classes
and hosts educational
sessions covering
nutrition, wellness
and safety.
STORAGE AREA
INTO
ON-SITE
15
Creating significant changes in a daily
routine can be a challenging task,
so comprehensive education and a
supportive environment are essential
components of the Path to Wellness
program. Employees are invited to
participate in group training programs
and health lectures, and offered access
to one-on-one advice from expert
nutritionists and fitness advisors. These
learning opportunities, complemented
by a range of resources such as digital
newsletters and videos, help employees
to take control of their health and affect
positive change in their own lives.
Parker makes available natural treatment
options focused on bolstering the
immune system. As such, Parker has
established a network of integrative
physicians, supporting a proactive
approach to wellness.
Diversity and Inclusion
Parker is committed to building a diverse
and inclusive workforce that respects and
engages the unique perspectives and
contributions of each individual as a
valuable asset to the organization.
Parker’s strategy to support a culture
of inclusion and diversity is based on
three pillars: Leadership and Ownership;
Awareness and Cross-cultural
Competence; and Inclusive Structures
and Processes.
Parker continues to reinforce and
expand its commitment through the
training of its global leadership team and
the development of a leadership profile
that supports the company’s global
workforce. Additionally, Parker’s globally-
administered employee survey includes
questions that enable the company to
continuously gauge progress toward
building a diverse and inclusive work
environment, and to develop new
strategies to support this environment
through direct feedback from employees.
Parker’s ability to leverage the diverse
backgrounds and perspectives of all
employees is key to remaining a premier
global organization. It is a commitment
Parker has undertaken in order to
best serve customers by attracting,
developing and retaining the best and
brightest talent worldwide.
Pump and Motor Division
Europe
Chemnitz, Germany
Through a creative “Stay Fit in
the Winter” program, the division
distributes free fruits and
vegetables and encourages
employees to remain focused on
their health and wellness goals
during the cold winter months.
FRUITS&
VEGETABLES
16
Social Responsibility
The practice of volunteering and
charitable giving at the local level is a
significant aspect of Parker’s culture.
Parker employees are proud to give
back to the communities in which they
work and to organizations that make the
world a better place. Many of Parker’s
manufacturing facilities are located in
rural areas and there is often a close link
between the facility and the community.
Parker values its relationship with local
community members and organizations,
as it is vital to the company’s success.
One of Parker’s primary goals is to help
improve the quality and accessibility of an
outstanding education. Parker employees
donate generously to educational
institutions and charities, in addition to
sharing knowledge and mentoring local
students through various volunteer
programs. The company, through the
Parker Hannifin Foundation, provides
additional support. Students participating
in these programs are future business,
technology and community leaders, and
many would otherwise have a limited
opportunity to pursue a higher education
and achieve their fullest potential.
Moving forward, Parker will continue
to expand and formalize its social
responsibility efforts in order to fully
leverage the company’s capacity
to make a difference in the lives of
employees, help shape local communities
and protect the environment.
Workplace Safety
While productivity and profitability are key
metrics the company uses to measure
its success, nothing is more important to
Parker than making sure every employee
returns home safely after each work day.
The company is committed to maintaining
safe and secure workplaces to protect
all employees, customers and any other
guests who visit a Parker facility. Aspects
of the program include:
•	 Electrical Safety
•	 Equipment and Machine Safety
•	Ergonomics
•	 Emergency Preparedness
In the U.S., Parker
employees donated more
than $900,000 to the United
Way in fiscal year 2014.
The Parker Hannifin
Foundation Focus Areas
Education
41%
Civic/Community
24%
Health
18%
Arts
17%
17
With its safety program, Parker sustains
organization-wide standards for safety
management to supplement local,
regional and national laws and
regulations. These standards provide
consistency in identifying and controlling
safety hazards and environmental impact,
and all of Parker’s manufacturing facilities
measure the performance of their safety
program on a quarterly basis to identify
areas for continuous improvement.
Parker has recently decided to establish
a safety-focused High Performance
Team at each of its facilities, engaging
employees as the company adopts a
proactive approach to safety management.
Parker’s worldwide safety performance
is measured by the Recordable Accident
Rate, which is the number of work-
related accidents which require medical
attention beyond first aid normalized to
100 employees per year. Since 2011,
Parker has achieved a 28% reduction in
the Recordable Accident Rate, including
a 10% improvement in fiscal year 2014.
During fiscal year 2014, Parker
experienced zero workplace fatalities.
Recordable Accident Rate
Number of work-related accidents, normalized
to 100 employees per year.
2011
2012
2013
2014
2.22
2.15
1.76
1.59
18
Parker currently recycles more
than 80% of the waste generated
from its manufacturing
operations.
19
Aligned with Parker’s position as the global leader in motion and
control technologies, the company aspires to occupy a space at
the forefront of sustainable operations. Parker is constantly looking
for new ways to reduce the amount of energy and water used at
its facilities. To minimize the amount of resources used in product
manufacturing. To expand recycling efforts and limit the amount
of waste sent to landfills. To design products that accomplish
more while consuming less. All in the name of conducting business
responsibly and protecting the environment for future generations.
Environmental
Stewardship
Hazardous Materials
Throughout the past several decades,
Parker has applied considerable effort
to avoiding the use of materials in
manufacturing which could cause
damage to the environment. Parker
has reduced the use of chlorinated
solvents by greater than 90% and
eliminated over 80% of other U.S.
Environmental Protection Agency
(EPA) target chemicals.
In 2004, Parker expanded these efforts
to include electricity and natural gas use
and, to date, has reduced consumption
by more than 52% as indexed to sales.
Remediation
Parker is helping to rectify past
environmental damage by actively
investing and engaging in the remediation
of properties damaged by pollution or
poor chemical management practices.
Many of the sites undergoing treatment
were acquired, and the pollution
occurred prior to Parker’s ownership.
As of June 30, 2014, Parker had an
accrual of $13.6 million for environmental
matters, which are probable and
reasonably estimable.
Environmental
Management
Parker is determined to establish a more
concentrated focus on sustainability at all
facilities and reinforce its importance with
educational materials and tools, including
a detailed policy with provisions to
minimize resource consumption and
eliminate recyclable materials from the
waste stream.
To this point the results of Parker’s
sustainability efforts have been
promising; over 50% of Parker’s global
operations are ISO 14001 certified, and
the company currently recycles more
than 80% of the waste generated from
its manufacturing operations.
Parker has also been able to largely
eliminate highly hazardous substances,
such as chlorinated solvents, cadmium
and hexavalent chromium, from its
products and processes.
20
Energy Management
Energy management is a collaborative
effort at Parker, and employees are
encouraged to suggest and help
implement process improvements
which will optimize energy efficiency
and reduce carbon emissions.
While managed and supported by a
corporate energy leader, programs are
designed at the local level on the basis
of each business unit’s specific energy
targets. Each location has an energy
leader who receives regular training on
how to identify and take advantage of
opportunities to reduce energy
consumption.
While there are still significant
opportunities for improvement, the
results of an annual cycle of planning,
executing, analyzing and improving
energy reduction plans are beginning
to add up.
Since calendar year 2004 Parker has:
•	 Reduced energy use, as measured
by its energy index (MWh/USD Sales),
by 55% while sales have increased
more than 77% from $7.4 billion to
$13.1 billion.
•	 Reduced the total amount of
greenhouse gas (GHG) emissions
generated by its operations by 11%
from 697,171 metric tons to 619,525
metric tons, or 50% indexed to sales.
In the past year Parker has:
•	 Decreased annual energy use by
18%, or 6% indexed to sales, a
reduction of more than 93,000 MWh.
•	 Reduced greenhouse gas emissions
by 11%.
ENERGY INDEX
GREENHOUSE
GAS EMISSIONS
SALES FROM
BILLON TO
$13.1	 BILLION
SINCE 2004
77%INCREASED
SALES
21
Racor Division
Beaufort, SC, USA
By adhering to the structure of a
disciplined recycling program, the
division reduced waste disposal by
79% to prevent more than 440,000 lbs.
of refuse from reaching the landfill
in 2014, decreasing disposal costs
by more than $12,000.
WASTE DISPOSAL BY
PREVENTED MORE THAN
440,000 lbs.FROM REACHING THE LANDFILL
DECREASE DISPOSAL COSTS BY
MWh/USD
Parker’s Energy Index = Total Energy
Used (MWh Equivalent)/Total Net Sales
(Millions of Dollars)
Greenhouse Gas Emissions
Measured in Thousand Metric Tons
2010 133 2010 683,483
2011 116 2011 697,586
2012 105 2012 672,223
2013 99 2013 619,525
2004 220Baseline 2004 697,171Baseline
Parker’s Energy Use and Emissions
Reduction Results
22
23
Parker utilizes a unique approach to new product development called
Winovation, which establishes specific deliverables at each stage of
the process to apply structure to the research and development of
new technologies.
Guided by feedback received from
customers and an ever-expanding
knowledge of the environment and
how to protect it, Parker engineers are
discovering new ways to reduce weight,
improve performance and increase the
efficiency of the products and systems
the company manufactures.
Parker continues to find solutions
to problems that not only increase
customers’ productivity and profitability,
but also reduce environmental impact.
Among its thousands of products
designed through the application of the
company’s broad range of motion and
control technologies, Parker proudly
sees an increasing number of products
that demonstrate the value of
sustainable thinking.
Aligned with the company’s
commitment to sustainability, Parker
will continue to explore new methods
of advancing and quantifying the
environmental benefits of its product
innovation process, and partner with
its customers to help solve the world’s
greatest engineering challenges.
SINCE 2005, MORE THAN
HAVE BEEN DEVELOPED THROUGH WINOVATION, RESULTING IN OVER
$8 BILLION
	 IN ACCUMULATED SALES.
24
Parker Tracking
System
From bulldozers and wheel loaders to
massive offshore oil rigs, Parker Tracking
System (PTS) labels can be found on the
components of industrial equipment
around the world. A simple but powerful
idea, PTS labels use bar codes and RFID
tags to significantly improve the process
of servicing equipment.
PTS is a tagging and tracking solution
to store, access and monitor critical
asset information. Real-time access
to this data enables a process known
as reliability-centered maintenance
by scanning for key metrics that
could indicate a potential future issue
and enabling technicians to perform
maintenance on a piece of equipment
before it fails.
Systems do not break down on a fixed
or predetermined schedule, but with
PTS, operators can not only avoid costly
downtime but protect the environment
by significantly extending the life of
their equipment.
SMART Service Tool Kit
Improving the efficiency of heating,
ventilating, and air conditioning/
refrigeration (HVAC/R) systems not
only reduces operating costs, but can
significantly reduce the amount of
energy required to maintain ideal air
quality and temperature levels. Doing so,
however, requires detailed and accurate
data to enable technicians to identify
opportunities for improvement.
Parker Sporlan’s SMART Service Tools
replace traditional manifold gauges,
utilizing wireless sensors to capture
pressure and temperature data and
transmit it to a mobile device, where it is
automatically processed by an app which
performs key calculations. Whether a
residential, commercial or industrial facility,
the robust data captured by performing
HVAC/R system diagnoses using the
SMART Service Tools enables technicians
to quickly and easily increase efficiency
and reduce energy consumption.
SMART Service Tools
decrease refrigerant loss by
98% compared to standard
gauge sets.
There are approximately
15 million PTS tags worldwide,
which have reduced equipment
downtime by more than
30,000 hours.
25
EO-3®
Fittings can only operate leak-free if
they are assembled properly. Errors
such as over- or under-tightening can
contribute to costly downtime, safety
hazards and even leaky operation, which
can pose a risk to the environment in
certain applications.
Parker’s EO-3 fitting system uses
patented indicator rings to provide
direct visual feedback to guide and
confirm proper assembly, without the
use of additional tools or measurements.
This unique design enables every user
to directly control work safety and
machine reliability, and to minimize
the risk of hazardous leakage.
ZoomLock™
Brazing has long been the standard
process for joining copper tubes,
whereby an open flame is applied to
bring a filler metal above its melting
point, which is then used to connect the
two tubes. Parker’s ZoomLock fittings,
however, are joined together with a
specialty crimping tool which creates
reliably secure, leak-proof connections
with highly repeatable results in less than
half the time.
By eliminating the need for an open
flame, ZoomLock removes the safety
and quality concerns associated with
brazing, as well as the consumption of
fuel to produce the flame utilized in the
brazing process.
ZoomLock can reduce
installation time and labor
costs by 40-50%.
Up to 70% of leaky fittings have
been improperly assembled.
PS-2041 April 2015© 2015 Parker Hannifin Corporation
The data and information presented is a compilation of information reported into the corporate office from more than 100 business units worldwide.
Data is not independently validated but is internally checked for significant deviation from expected results.
Parker Hannifin Corporation
Rick Taylor, Corporate Vice President EHS
6035 Parkland Boulevard
Cleveland, OH 44124
Tel: 216-896-3000
rtaylor@parker.com
www.parker.com

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Parker 2014 Sustainability Report

  • 2. Parker can be found on and around everything that moves, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. With annual sales exceeding $13 billion in fiscal year 2014, Parker is the world’s leading diversified manufacturer of motion and control technologies and systems. By applying its engineering expertise and broad range of core technologies, Parker partners with its customers to improve their productivity and profitability, while helping to solve the world’s greatest engineering challenges. About This Report The information in this report addresses how Parker is applying its core technologies to make a positive impact on the world. All data corresponds to Parker’s fiscal year 2014 (July 1, 2013 through June 30, 2014) unless otherwise noted. The previous report corresponded to Parker’s fiscal year 2013. Parker’s intention is to report on an annual basis. Report Scope The data provided in this document reflects Parker’s global manufacturing operations in which Parker has a 50% controlling interest or majority ownership. It also includes employees in those operations and the associated headquarters and distribution centers under Parker ownership. The scope does not include Parker suppliers, customers, distributors, contractors or minority-owned joint ventures. Contact Us Parker welcomes your comments and questions about its sustainability efforts by email: rtaylor@parker.com Table of Contents Message from the Chief Executive Officer____________2 Sustainability____________________5 Governance, Ethics & Compliance___________________9 People ________________________13 Planet_________________________19 Product Stewardship____________23
  • 3. 1 The Win Strategy Focused on long-established Parker goals of premier customer service, financial performance and profitable growth, the Win Strategy is a disciplined and consistent business strategy that has transformed the company and improved operations worldwide since it was initiated in 2001. Designed as an instrument of operational change, the Win Strategy is a powerful document adopted by all Parker locations worldwide. For The Year Ended June 30 (dollars in thousands, except per share data) 2014 Net sales $ 13,215,971 Gross profit 3,027,744 Net income attributable to common shareholders 1,041,048 Net cash provided by operating activities 1,387,893 Diluted earnings per share $ 6.87 Number of employees 57,447
  • 4. 2 Message from the Thomas L. Williams, Chief Executive Officer In recent years Parker has continued to expand in developed and emerging markets, and as our global footprint grows, so too has our opportunity to make a positive impact on the lives of those around us and on the environment in which we operate. It has become clear that our vision of operating a more sustainable business complements our ability to deliver premier customer service and achieve our financial performance goals. To guide our efforts, in 2014 we formalized a sustainability framework that focuses on people, planet and products. One of Parker’s highest priorities is to provide a safe work environment for its people. We are on the journey toward establishing a safety-first culture in which all employees are engaged in driving safety performance, by establishing and embracing operating processes which
  • 5. 3 further reduce the risk of workplace accidents. Robust management systems will be used to routinely measure and evaluate our progress. Minimizing safety risks begins with developing a better understanding of what causes them through comprehensive education and training. Increased awareness of risks and how to prevent them, combined with the appropriate safety equipment in all facilities, creates an environment where we can achieve our safety goals. Parker aims to rank among the top quartile of industrial manufacturers for safety performance; we are making progress toward this goal and will continue to take critical steps to further reduce the number of industrial accidents. Parker leaders around the world are engaged in ensuring that every employee and guest who visits a Parker facility go home safely. Considering the size and scope of Parker’s operations, we fully appreciate our obligation to operate responsibly and to preserve the vibrant communities we call home by serving as active stewards of the environment. We should try to conserve whenever possible, and encourage others to do the same. In fact, Parker employees are empowered to reshape aspects of our operations to reduce the consumption of water, fuel, electricity and other resources. In doing so, these employees are implementing ideas to reduce operating costs and create alignment between our financial and sustainability goals, enabling Parker to be more competitive in an increasingly challenging business environment. We continue to look for new ways we can improve performance. Recently Parker added a new element to its sustainability strategy by including packaging as a key resource conservation opportunity. In partnership with our customers, we are currently evaluating several other options including a packaging take-back program, increasing the use of recycled materials and converting to reusable containers. With hundreds of thousands of products and systems being produced, this initiative has the potential to significantly reduce costs and raw material consumption, and increase efficiency throughout Parker’s supply chain. Fueled by a passion for innovation, our engineers are designing products that are lightweight and built using the safest materials, operate with greater efficiency, last longer and are easier to recycle. We view innovation as customer-driven, and our advancements to product design are made to help customers meet their sustainability goals by reducing energy consumption and operating costs, and minimizing their environmental footprint. From the products and systems we manufacture to the remarkable individuals we employ and the world- class customers we partner with, Parker is engaged in countless opportunities to make a positive impact on the world. By operating in alignment with our renewed commitment to sustainability, we are able to achieve profitable growth while protecting the environment and improving quality of life today and for future generations. Thomas L. Williams Chief Executive Officer April 2015
  • 6. A meaningful measure of Parker’s impact is the ability to improve the lives of people it reaches. 4
  • 7. 5 Sustainability is a vast, complex concept. Determining the ideal approach for applying sustainable practices across the operations of a global organization presents both a significant challenge and a meaningful opportunity. After years of conducting comprehensive research, benchmarking within the industry and simply learning by experience, Parker’s sustainability commitment has been defined as: To responsibly solve the world’s greatest engineering challenges to foster enduring success for the company, customers and communities. The implications of this commitment can be further clarified according to three key areas where Parker has an opportunity to maximize the impact of its sustainability efforts. People A meaningful measure of Parker’s impact is the ability to improve the lives of people it reaches. This obligation is reflected in Parker’s efforts to help employees maintain a healthy lifestyle, create an engaging and safe work environment and strengthen all of the communities around the world which Parker calls home. Planet With operations in 50 countries, Parker’s manufacturing practices can have a significant and widespread effect on the world. The company fully understands this responsibility, and is dedicated to making a positive environmental impact. Through the use of eco-friendly materials, the elimination of waste through various recycling programs and the active reduction of resources such as water and energy used in its manufacturing facilities, Parker is helping to protect the environment for future generations. Products As a global manufacturer, the most direct way for Parker to impact the world is through the products and systems it manufactures. From conception to disposal, Parker engineers analyze the entire product lifecycle to create products that are produced using sustainable materials, designed to operate at peak efficiency and can be reused or recycled upon disposal to reduce waste sent to landfills.
  • 8. 6 Potential Risks and Boundaries Given the diversity of the markets Parker serves and the products it manufactures, as well as the size and complexity of its supply chain, there are a range of opportunities and risks that affect the company’s ability to meet its sustainability objectives. Parker’s products rely on energy to function, and a change in energy source can impact product design and related costs. Scarcity of any of the wide array of metals and organic materials Parker utilizes could also impact the composition and design of its products. Each material aspect of Parker’s operations have clear, sustainable parameters and are pertinent to the company’s success in several ways, including: energy consumption and emissions for environmental performance; occupational health and safety; child labor and nondiscrimination for human rights performance; community for social performance; and economic results for financial performance. The boundary condition used for all of Parker’s key aspects and performance metrics is from the point of supplier delivery to the point of distribution of a finished product. At this point in time, the company only takes measured steps into the area of raw material sourcing and finished product application as it relates to sustainable elements such as energy, emissions, safety, human rights and social performance. This position is not a significant change from the previous report.
  • 9. 7 Stakeholder Engagement With a focus on continuous improvement, Parker engages a number of stakeholders to help strengthen the strategies in place to reach its sustainability objectives. Parker receives valuable customer input through direct feedback from its marketing and sales teams; from employees through a biannual global survey; from suppliers on their compliance with Parker’s sustainability requirements through the company’s supply chain web portal; and from Parker leaders through interviews and polls. Additionally, Parker analyzes information from sustainability ratings and shareholder feedback, and benchmarks with its diversified industrial peer group. Supplier Partnerships Parker is committed to partnering with world-class suppliers focused not only on premier customer service and maintaining the highest standards for quality and on- time delivery, but on reducing resource consumption and waste. With an annual spend exceeding $6 billion, continuing to improve sustainability throughout the supply chain presents a compelling opportunity for Parker to reduce its global footprint. Precision Cooling Division New Haven, IN, USA Employees designed and built a closed-loop water cooling system which reduces water consumption by 4,250,900 gallons of water per year, and installed high-efficiency LED lighting which decreases energy utilization by 643,268 kW per year, saving the division more than $40,000 in utility costs. 643,268 GALLONS OF WATER SAVED PER YEAR kW REDUCTION PER YEAR DECREASE IN UTILITY COSTS
  • 10. 8 Parker’s way of doing business is the foundation of the company’s sustained value and long-term success.
  • 11. 9 For nearly a century Parker has experienced first-hand the value of ethical behavior and conducting business with integrity. From creating enduring partnerships with customers and suppliers to attracting honest and inspired employees aligned with the company’s vision, this way of doing business is the foundation of Parker’s sustained value and long-term success. While the pace of business today is rapid and the world can change erratically, Parker’s Values Statement remains strong and constant. Whether solving the world’s greatest engineering challenges, delivering world-class customer service or supporting local communities, Parker always strives to do what is right. Corporate Governance To instill the highest standards for ethical behavior, business leaders must set an example for all employees at their company. In Parker’s case, the company’s commitment to coupling sustainable, long-term growth with responsible corporate citizenship begins with its Board of Directors. The Board has responsibility to represent stakeholders in overseeing the business strategy and governance matters of the company. Eleven of Parker’s 14 directors are “independent” based on the applicable independence standards of the New York Stock Exchange and Parker’s Independence Standards for Directors. Each director must stand for election annually. To learn more about Parker’s Board, visit www.phstock.com/ corporategovernance. Global Code of Business Conduct A dependable resource for all employees regardless of background or location, Parker’s Global Code of Business Conduct sets clear guidelines for respectable behavior, highlights important policies and summarizes certain fundamental legal requirements that employees must follow at work. It also provides guidance about resources to which employees can turn if there are questions or concerns about a potential legal or ethical problem.
  • 12. 10 Integrity and Ethics Parker’s commitment to operate worldwide in a manner that is respectful and ethical can be traced throughout the company’s history. As a result, Parker enjoys open and trustworthy relationships with its employees, customers and investors, and values its reputation as a dependable and honorable business partner. Recently Parker has embraced a new approach to ethical behavior guided by a set of globally-accepted virtues, providing a common language which transcends cultural boundaries. This framework is explained in “Winning With Integrity,” a companion publication to the Global Code of Business Conduct and Parker’s Values Statement. Reflective of a natural alignment of the virtues and their own personal values, examples of these character attributes are demonstrated every day by Parker employees, who are actively engaged in preserving Parker’s reputation and protecting its financial strength by maintaining the highest standards for ethical behavior. The Global Code of Business Conduct and “Winning With Integrity” are available in multiple languages, and every Parker employee receives a personal copy. Both publications are available online at www.parker.com/integrityandethics. Corporate Compliance Parker’s corporate compliance infrastructure is designed not to satisfy a defined set of rules or regulations, but to instill business practices which reflect the company’s standards for ethical and responsible behavior. The Vice President – Audit and Compliance is available to all Parker employees, shareholders, business partners, customers and the general public to provide guidance on issues relating to the implementation of practices described in the Global Code of Business Conduct. At the local level, Parker’s network of Compliance Officers consists of more than 140 individuals who collaborate with management, implement training programs and facilitate open communication to maintain compliance and help instill Parker’s values throughout the organization. “The virtues are aspirational and inspirational, and help us to leverage the strengths of our culture. We use the virtues to aim for the good in all that we do, and they are an important developmental tool helping us to drive sustainable business results.” -Andrew D. Ross, Vice President and President, Engineered Materials Group
  • 13. 11 Parker’s Integrity Line If any Parker employee witnesses behavior they feel is misaligned with Parker’s values, they can voice their concerns through the Integrity Line on a confidential and anonymous basis. Access to the Integrity Line is available through a secure website and toll-free by telephone from all countries in which Parker does business. The availability of the Integrity Line and instructions for its use are widely publicized to employees around the world. Parker complies with the special requirements of the European Union. All reports to the Integrity Line are investigated by qualified personnel who have been trained to conduct investigations lawfully, fairly and confidentially. Education and Training Avoiding any actions which may be considered unethical or even illegal begins with developing a thorough understanding of Parker’s standards for business conduct. From senior management down to every individual employee, Parker provides comprehensive training on core issues related to ethics and compliance. Based on individuals’ roles and the risks associated with their job responsibilities, Parker also provides in-person training on topics such as antitrust laws, trade laws and corruption in business. Ongoing Commitment Parker modifies its compliance program, including policies, procedures and related training, in response to new legislative and regulatory requirements, enforcement trends, political and public policy concerns and trends in the broader business and financial environments. For example, Parker has implemented a robust anti-corruption program and is raising awareness through internal training and sharing its stance with business partners. Parker believes these actions are critical in preserving the respect and trust of its stakeholders.
  • 14. 12 Parker employees are the foundation of the company’s success.
  • 15. 13 Create a culture where all individuals are empowered to make decisions which impact performance. Maintain a resolute focus on workplace safety. Approach professional development and career progression at the individual level. Offer the widest range of options for managing health and wellness. Although it seems like an ambitious list, these are among the actions Parker has taken in the interest of its employees, who are the foundation of the company’s success. Employee Empowerment and Engagement Of the many potential areas on which to focus, “Empowered Employees” was long ago selected to form the foundation of Parker’s Win Strategy. This decision reflects the value Parker sees in empowering employees to leverage their knowledge and expertise to present ideas and make decisions which significantly impact the company’s operations. Today, under the guidance of the Employee Empowerment Council, several initiatives are underway which foster collaboration within and among different functional areas of the company, and share ownership of continuous improvement activities across a broad range of employees. By implementing High Performance Teams, a structured approach to team work and collective decision- making, Parker empowers employees to work together to continuously improve customer service and achieve strategic business objectives. Parker Canada Over 200 employees at Parker locations across Canada joined together to raise awareness around various types of cancer and donated more than $20,000 to support the Canadian Cancer Society. >$20,000TO SUPPORT THE CANADIAN CANCER SOCIETY
  • 16. 14 Global Wellness Program Building upon the success of its wellness initiative launched over a decade ago, Parker introduced the global Path to Wellness program this year to further strengthen and expand the options available to employees for managing their health. Given the program’s flexible structure, the offerings available through Path to Wellness can be customized on a regional basis. A wellness-focused team of employees at each of Parker’s facilities develops programs to address specific health risks while reflecting the unique needs, culture, demographics and budget of the location. The Path to Wellness program is designed to enable employees to embrace a healthy lifestyle consisting of a balanced and nutritious diet, routine exercise and the conscientious management of everyday stress. Sales Company Spain Madrid, Spain Employees converted an old storage area into an on-site gym which offers fitness classes and hosts educational sessions covering nutrition, wellness and safety. STORAGE AREA INTO ON-SITE
  • 17. 15 Creating significant changes in a daily routine can be a challenging task, so comprehensive education and a supportive environment are essential components of the Path to Wellness program. Employees are invited to participate in group training programs and health lectures, and offered access to one-on-one advice from expert nutritionists and fitness advisors. These learning opportunities, complemented by a range of resources such as digital newsletters and videos, help employees to take control of their health and affect positive change in their own lives. Parker makes available natural treatment options focused on bolstering the immune system. As such, Parker has established a network of integrative physicians, supporting a proactive approach to wellness. Diversity and Inclusion Parker is committed to building a diverse and inclusive workforce that respects and engages the unique perspectives and contributions of each individual as a valuable asset to the organization. Parker’s strategy to support a culture of inclusion and diversity is based on three pillars: Leadership and Ownership; Awareness and Cross-cultural Competence; and Inclusive Structures and Processes. Parker continues to reinforce and expand its commitment through the training of its global leadership team and the development of a leadership profile that supports the company’s global workforce. Additionally, Parker’s globally- administered employee survey includes questions that enable the company to continuously gauge progress toward building a diverse and inclusive work environment, and to develop new strategies to support this environment through direct feedback from employees. Parker’s ability to leverage the diverse backgrounds and perspectives of all employees is key to remaining a premier global organization. It is a commitment Parker has undertaken in order to best serve customers by attracting, developing and retaining the best and brightest talent worldwide. Pump and Motor Division Europe Chemnitz, Germany Through a creative “Stay Fit in the Winter” program, the division distributes free fruits and vegetables and encourages employees to remain focused on their health and wellness goals during the cold winter months. FRUITS& VEGETABLES
  • 18. 16 Social Responsibility The practice of volunteering and charitable giving at the local level is a significant aspect of Parker’s culture. Parker employees are proud to give back to the communities in which they work and to organizations that make the world a better place. Many of Parker’s manufacturing facilities are located in rural areas and there is often a close link between the facility and the community. Parker values its relationship with local community members and organizations, as it is vital to the company’s success. One of Parker’s primary goals is to help improve the quality and accessibility of an outstanding education. Parker employees donate generously to educational institutions and charities, in addition to sharing knowledge and mentoring local students through various volunteer programs. The company, through the Parker Hannifin Foundation, provides additional support. Students participating in these programs are future business, technology and community leaders, and many would otherwise have a limited opportunity to pursue a higher education and achieve their fullest potential. Moving forward, Parker will continue to expand and formalize its social responsibility efforts in order to fully leverage the company’s capacity to make a difference in the lives of employees, help shape local communities and protect the environment. Workplace Safety While productivity and profitability are key metrics the company uses to measure its success, nothing is more important to Parker than making sure every employee returns home safely after each work day. The company is committed to maintaining safe and secure workplaces to protect all employees, customers and any other guests who visit a Parker facility. Aspects of the program include: • Electrical Safety • Equipment and Machine Safety • Ergonomics • Emergency Preparedness In the U.S., Parker employees donated more than $900,000 to the United Way in fiscal year 2014. The Parker Hannifin Foundation Focus Areas Education 41% Civic/Community 24% Health 18% Arts 17%
  • 19. 17 With its safety program, Parker sustains organization-wide standards for safety management to supplement local, regional and national laws and regulations. These standards provide consistency in identifying and controlling safety hazards and environmental impact, and all of Parker’s manufacturing facilities measure the performance of their safety program on a quarterly basis to identify areas for continuous improvement. Parker has recently decided to establish a safety-focused High Performance Team at each of its facilities, engaging employees as the company adopts a proactive approach to safety management. Parker’s worldwide safety performance is measured by the Recordable Accident Rate, which is the number of work- related accidents which require medical attention beyond first aid normalized to 100 employees per year. Since 2011, Parker has achieved a 28% reduction in the Recordable Accident Rate, including a 10% improvement in fiscal year 2014. During fiscal year 2014, Parker experienced zero workplace fatalities. Recordable Accident Rate Number of work-related accidents, normalized to 100 employees per year. 2011 2012 2013 2014 2.22 2.15 1.76 1.59
  • 20. 18 Parker currently recycles more than 80% of the waste generated from its manufacturing operations.
  • 21. 19 Aligned with Parker’s position as the global leader in motion and control technologies, the company aspires to occupy a space at the forefront of sustainable operations. Parker is constantly looking for new ways to reduce the amount of energy and water used at its facilities. To minimize the amount of resources used in product manufacturing. To expand recycling efforts and limit the amount of waste sent to landfills. To design products that accomplish more while consuming less. All in the name of conducting business responsibly and protecting the environment for future generations. Environmental Stewardship Hazardous Materials Throughout the past several decades, Parker has applied considerable effort to avoiding the use of materials in manufacturing which could cause damage to the environment. Parker has reduced the use of chlorinated solvents by greater than 90% and eliminated over 80% of other U.S. Environmental Protection Agency (EPA) target chemicals. In 2004, Parker expanded these efforts to include electricity and natural gas use and, to date, has reduced consumption by more than 52% as indexed to sales. Remediation Parker is helping to rectify past environmental damage by actively investing and engaging in the remediation of properties damaged by pollution or poor chemical management practices. Many of the sites undergoing treatment were acquired, and the pollution occurred prior to Parker’s ownership. As of June 30, 2014, Parker had an accrual of $13.6 million for environmental matters, which are probable and reasonably estimable. Environmental Management Parker is determined to establish a more concentrated focus on sustainability at all facilities and reinforce its importance with educational materials and tools, including a detailed policy with provisions to minimize resource consumption and eliminate recyclable materials from the waste stream. To this point the results of Parker’s sustainability efforts have been promising; over 50% of Parker’s global operations are ISO 14001 certified, and the company currently recycles more than 80% of the waste generated from its manufacturing operations. Parker has also been able to largely eliminate highly hazardous substances, such as chlorinated solvents, cadmium and hexavalent chromium, from its products and processes.
  • 22. 20 Energy Management Energy management is a collaborative effort at Parker, and employees are encouraged to suggest and help implement process improvements which will optimize energy efficiency and reduce carbon emissions. While managed and supported by a corporate energy leader, programs are designed at the local level on the basis of each business unit’s specific energy targets. Each location has an energy leader who receives regular training on how to identify and take advantage of opportunities to reduce energy consumption. While there are still significant opportunities for improvement, the results of an annual cycle of planning, executing, analyzing and improving energy reduction plans are beginning to add up. Since calendar year 2004 Parker has: • Reduced energy use, as measured by its energy index (MWh/USD Sales), by 55% while sales have increased more than 77% from $7.4 billion to $13.1 billion. • Reduced the total amount of greenhouse gas (GHG) emissions generated by its operations by 11% from 697,171 metric tons to 619,525 metric tons, or 50% indexed to sales. In the past year Parker has: • Decreased annual energy use by 18%, or 6% indexed to sales, a reduction of more than 93,000 MWh. • Reduced greenhouse gas emissions by 11%. ENERGY INDEX GREENHOUSE GAS EMISSIONS SALES FROM BILLON TO $13.1 BILLION SINCE 2004 77%INCREASED SALES
  • 23. 21 Racor Division Beaufort, SC, USA By adhering to the structure of a disciplined recycling program, the division reduced waste disposal by 79% to prevent more than 440,000 lbs. of refuse from reaching the landfill in 2014, decreasing disposal costs by more than $12,000. WASTE DISPOSAL BY PREVENTED MORE THAN 440,000 lbs.FROM REACHING THE LANDFILL DECREASE DISPOSAL COSTS BY MWh/USD Parker’s Energy Index = Total Energy Used (MWh Equivalent)/Total Net Sales (Millions of Dollars) Greenhouse Gas Emissions Measured in Thousand Metric Tons 2010 133 2010 683,483 2011 116 2011 697,586 2012 105 2012 672,223 2013 99 2013 619,525 2004 220Baseline 2004 697,171Baseline Parker’s Energy Use and Emissions Reduction Results
  • 24. 22
  • 25. 23 Parker utilizes a unique approach to new product development called Winovation, which establishes specific deliverables at each stage of the process to apply structure to the research and development of new technologies. Guided by feedback received from customers and an ever-expanding knowledge of the environment and how to protect it, Parker engineers are discovering new ways to reduce weight, improve performance and increase the efficiency of the products and systems the company manufactures. Parker continues to find solutions to problems that not only increase customers’ productivity and profitability, but also reduce environmental impact. Among its thousands of products designed through the application of the company’s broad range of motion and control technologies, Parker proudly sees an increasing number of products that demonstrate the value of sustainable thinking. Aligned with the company’s commitment to sustainability, Parker will continue to explore new methods of advancing and quantifying the environmental benefits of its product innovation process, and partner with its customers to help solve the world’s greatest engineering challenges. SINCE 2005, MORE THAN HAVE BEEN DEVELOPED THROUGH WINOVATION, RESULTING IN OVER $8 BILLION IN ACCUMULATED SALES.
  • 26. 24 Parker Tracking System From bulldozers and wheel loaders to massive offshore oil rigs, Parker Tracking System (PTS) labels can be found on the components of industrial equipment around the world. A simple but powerful idea, PTS labels use bar codes and RFID tags to significantly improve the process of servicing equipment. PTS is a tagging and tracking solution to store, access and monitor critical asset information. Real-time access to this data enables a process known as reliability-centered maintenance by scanning for key metrics that could indicate a potential future issue and enabling technicians to perform maintenance on a piece of equipment before it fails. Systems do not break down on a fixed or predetermined schedule, but with PTS, operators can not only avoid costly downtime but protect the environment by significantly extending the life of their equipment. SMART Service Tool Kit Improving the efficiency of heating, ventilating, and air conditioning/ refrigeration (HVAC/R) systems not only reduces operating costs, but can significantly reduce the amount of energy required to maintain ideal air quality and temperature levels. Doing so, however, requires detailed and accurate data to enable technicians to identify opportunities for improvement. Parker Sporlan’s SMART Service Tools replace traditional manifold gauges, utilizing wireless sensors to capture pressure and temperature data and transmit it to a mobile device, where it is automatically processed by an app which performs key calculations. Whether a residential, commercial or industrial facility, the robust data captured by performing HVAC/R system diagnoses using the SMART Service Tools enables technicians to quickly and easily increase efficiency and reduce energy consumption. SMART Service Tools decrease refrigerant loss by 98% compared to standard gauge sets. There are approximately 15 million PTS tags worldwide, which have reduced equipment downtime by more than 30,000 hours.
  • 27. 25 EO-3® Fittings can only operate leak-free if they are assembled properly. Errors such as over- or under-tightening can contribute to costly downtime, safety hazards and even leaky operation, which can pose a risk to the environment in certain applications. Parker’s EO-3 fitting system uses patented indicator rings to provide direct visual feedback to guide and confirm proper assembly, without the use of additional tools or measurements. This unique design enables every user to directly control work safety and machine reliability, and to minimize the risk of hazardous leakage. ZoomLock™ Brazing has long been the standard process for joining copper tubes, whereby an open flame is applied to bring a filler metal above its melting point, which is then used to connect the two tubes. Parker’s ZoomLock fittings, however, are joined together with a specialty crimping tool which creates reliably secure, leak-proof connections with highly repeatable results in less than half the time. By eliminating the need for an open flame, ZoomLock removes the safety and quality concerns associated with brazing, as well as the consumption of fuel to produce the flame utilized in the brazing process. ZoomLock can reduce installation time and labor costs by 40-50%. Up to 70% of leaky fittings have been improperly assembled.
  • 28. PS-2041 April 2015© 2015 Parker Hannifin Corporation The data and information presented is a compilation of information reported into the corporate office from more than 100 business units worldwide. Data is not independently validated but is internally checked for significant deviation from expected results. Parker Hannifin Corporation Rick Taylor, Corporate Vice President EHS 6035 Parkland Boulevard Cleveland, OH 44124 Tel: 216-896-3000 rtaylor@parker.com www.parker.com