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PEOPLE
PLANET
PRODUCTS
Sustainability
Report 2015
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 of approximately $13 billion
in fiscal year 2015, 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 Parker
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 2015 (July 1,
2014 through June 30,
2015) unless otherwise
noted. The previous
report corresponded to
Parker’s fiscal year 2014.
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 comments and questions about its
sustainability efforts by email: parkerEHS@parker.com
TABLE OF CONTENTS
Leadership Message	 2
Sustainability	4
Governance, Ethics & Compliance	 8
People	12
Planet 	 18
Product Stewardship	 22
Financial Highlights
Premier Customer
Experience
• Quality Solutions On Time
• eBusiness Leadership
• Ease of Doing Business
Profitable
Growth
• Market-Driven Innovation
• System Solutions
• Strong Distribution
• Grow Share
• Engineering Expertise
Financial
Performance
• Simplification
• Lean Enterprise
• Strategic Supply Chain
• Value Pricing
Organic
Acquisitions Services
Engaged
People
• Environmental, Health
& Safety
• Entrepreneurial
• High Performance
Teams & Leaders
Goals
Our Vision: Engineering Your Success
STRATEGIES STRATEGIES STRATEGIES STRATEGIES
TM
•
•
•
•
•
Our Values
We are Parker… Our business is founded in a history of fair dealings, and listening to our customers
and employees. We believe our future growth is assured by honoring that tradition of excellence and by
ongoing adherence to our core values.
Winning Culture We insist on integrity, honesty, respect and ethical behavior. We welcome and
encourage diversity in all aspects of our global business. We seek to raise the standard of living through
responsible, global stewardship.
Value
needs
innov
Engag
Our e
THE WIN STRATEGY
Introduced in 2001 and recently refreshed under new leadership, the Win Strategy™
is the Parker business system. It focuses on long-established Parker goals of
engaged people, premier customer experience, profitable growth and financial
performance, and will continue to be instrumental in transforming the company
and improving operations.
For the Year Ended June 30 (dollars in thousands, except per share data)
1
		 2015
Net sales	 $12,711,744
Gross profit	 3,056,499
Net income attributable to common shareholders	 1,012,140
Net cash provided by operating activities	 1,301,941
Diluted earnings per share	 $ 6.97
Number of employees	 54,754
2
This year marked the
introduction of the
new Win Strategy, an
update to the Parker
business system which
has been instrumental
in transforming the
company’s operations
and optimizing
performance since it was
first introduced in 2001.
In developing the new
Win Strategy, with
valuable input from many
Parker stakeholders and
team members, we had an
opportunity to redefine
what it will take for Parker
to be successful in a
rapidly changing global
business environment. In
addition to strategies for
growing the business and
achieving strong financial
performance, the new
Win Strategy reinforces
our commitment to
responsible operations.
It reflects Parker’s
determination to create
a positive impact in
the lives of our team
members, to always be
good stewards of the
environment and to
support the communities
around the world which
we call home.
Our approach prioritizes
safety, because nothing
is more important than
making sure every Parker
team member returns
home safely after each
work day. We are now
more focused than
ever on establishing a
safety-first culture and
achieving our goal of zero
accidents. While this may
seem an ambitious target
considering Parker’s
size and scope, our
accident rate continues
to decline year after
year. Parker leaders and
team members around
the world are highly
engaged in improving
our safety performance,
and our near-term goal
is to reduce workplace
accidents by 50%.
However, we will continue
to study best-in-class
safety practices, optimize
our equipment and
operations and diligently
train our team members
in pursuit of an accident-
free workplace.
With hundreds of
manufacturing facilities
around the world, Parker
must also play a role in
proper environmental
stewardship and we are
in a unique position to
lead by example with our
sustainability efforts. With
guidance from corporate
sustainability leaders,
Parker is developing and
implementing creative
initiatives to reduce
energy consumption
and water use, and to
minimize waste sent
to landfills by reusing
or recycling materials.
We accomplish this in
part through a series
of distinctive programs
designed by team
members to address
local sustainability
goals. Their efforts are
not only placing Parker
on a path to reach our
sustainability goals, but
also are making us more
efficient, and the results
have been remarkable.
Today Parker recycles 82%
of the waste generated
from our manufacturing
operations. We are
targeting an additional
20% reduction of waste
sent to landfills by 2020.
Parker engineers are
continuing to leverage
innovative technologies
to advance the way
our products are made
and how they operate.
Leadership Message
3
Thomas L. Williams
Chairman and Chief Executive Officer
Lee C. Banks
President and Chief Operating Officer
financial performance
goals, but strengthened
our commitment to
social responsibility
and environmental
stewardship. Throughout
this report you will see
examples of what Parker
team members are
doing to improve safety,
conserve resources
and support their local
communities, and learn
about our long-term plan
to help make the world a
better place.
Without sacrificing
performance, they are
creating components and
systems that are lighter
and more compact, and
designed to operate with
unmatched efficiency.
Exciting new sensor
capabilities fueling the
Internet of Things (IoT)
provide critical data that
will enable us to help
customers to streamline
maintenance and
minimize equipment
downtime. The benefits
of such rapidly advancing
technologies are being
seamlessly integrated
into Parker’s proven
products and systems.
We are constantly
improving our ability
to help our customers
increase their productivity
and profitability, while at
the same time minimizing
their environmental
impact.
With the introduction
of the new Win Strategy,
this year Parker has not
only reestablished the
strategies the company
will employ to achieve its
March 2016
The fundamental elements of a sustainable
business have been in place throughout
Parker’s history. For nearly a century the
company has strived to develop products
that help customers increase productivity,
and to create a positive impact on employees
and in local communities. These ambitions
have always been central to Parker’s identity.
Sustainability
To align and reinforce
efforts across its global
operations, Parker
recently defined
its sustainability
commitment as:
engaging employees
and helping them
thrive in their personal
and professional lives;
strengthening local
communities and
supporting organizations
that make the world
a better place. These
opportunities to make a
difference inspire Parker
to be better every day.
PLANET
As a global manufacturer
Parker must also act
responsibly with the
planet’s natural resources.
By using eco-friendly
materials, minimizing
waste and reducing
the consumption of
resources such as energy
and water, Parker is
actively minimizing its
environmental footprint.
4
PEOPLE
Parker views sustainability
through a human lens,
and measures the success
of its sustainability efforts
by the company’s impact
on the lives of people it
reaches.
Creating a safety-first
work environment in
pursuit of zero accidents;
To responsibly
solve the world’s
greatest engineering
challenges to
foster enduring
success for
the company,
customers and
communities.
Parker views
sustainability
through a human
lens, and measures
the success of
its sustainability
efforts by the
company’s impact
on the lives of
people it reaches.
PRODUCTS
Used in countless
applications by a diverse
range of partners,
Parker’s products
and systems offer an
immense opportunity
for the company to
fulfill its commitment
to sustainability. Using
sustainable materials in
manufacturing, improving
operating efficiency and
engineering products that
can be reused or recycled
are all approaches Parker
is taking to help preserve
the planet.
5
6
In celebration of the 45th anniversary of Earth Day, Parker challenged all
employees to work together to reduce energy and water use, establish
recycling programs and initiate other projects to help minimize the company’s
environmental footprint. Demonstrating the collective power of many individual
efforts, this year Parker employees around the world responded overwhelmingly
to the Earth Day Challenge by:
Earth Day Challenge
Reducing energy use by
12 MILLION kWh
Preventing more than
6 TONS OF WASTE
from reaching landfills
21.5MILLION GALLONS
Decreasing water
consumption by
POTENTIAL RISKS
AND BOUNDARIES
Parker must address a
number of risks related
to the manufacture, sale
and application of its
products. The transition
away from a carbon-
based economy could
impact demand for
Parker’s products, and
scarcity of raw materials
such as metals and
organic compounds
could interfere with the
company’s ability to
deliver those products.
Parker also assumes
the operational risk
of a disruption to
manufacturing due to
the inability of supply
chain partners, or even
the company itself, to
meet environmental or
social standards. Failure
to meet the expectations
of stakeholders related
to environmental and
social accountability also
creates a long-term risk
for the company.
The boundary condition
of these risks varies based
on the area of focus. For
the People initiative of
its sustainability strategy,
Parker’s boundary
condition encompasses
its employees, partners
and the communities
around the world in
which the company
operates. The boundary
condition of the Planet
initiative is largely the
company’s manufacturing
footprint, with additional
focus on select areas of
the supply chain. Lastly,
the Product initiative
focuses primarily on
internal innovation, but
the boundary condition
also extends to the
customer and target
markets.
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
input through direct
feedback from: its
marketing and sales
teams; suppliers on
their compliance with
Parker’s sustainability
requirements through
the company’s supply
chain web portal; the
Parker leadership team;
and ratings from the
investor community.
Parker also analyzes
information from
benchmarking efforts
within its diversified
industrial peer group.
SUPPLIER
PARTNERSHIPS
Parker partners with
world-class suppliers
which share its
commitment to reducing
resource consumption
and waste, while
maintaining the highest
standards for premier
customer experience,
quality and on-time
delivery. With an annual
supplier spend exceeding
$6 billion, continuing to
improve the supply chain
in these areas of focus
presents a compelling
opportunity for Parker
to reduce its global
footprint and improve the
resilience of its suppliers.
As a supplier itself, Parker
is also responsible for
conserving resources,
optimizing manufacturing
processes, upholding
human rights and
creating highly efficient
and reliable products and
systems which enable
customers to minimize
their own environmental
impact.
7
In a complex and unpredictable global
market, Parker’s success can be attributed
to its ability to constantly adapt to meet the
needs of its customers. Parker’s values,
however, are unchanging. They serve as
the core beliefs which Parker employees
use to define ethical behavior, and provide
a clear and unwavering guide to conducting
business with integrity and respect.
Governance,
Ethics &
Compliance
Parker is a values-driven
company and encourages
employees to navigate
both their lives and
careers with a strong
sense of purpose. It is the
Parker culture and values,
more than any strategy
or measure that will
determine the company’s
success in the future.
CORPORATE
GOVERNANCE
The strong values and
culture upon which
Parker has built its
success and reputation
as a trusted partner
begins with its Board
of Directors. The Board
has a 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.
Parker’s Board of
Directors is guided by the
company’s Global Code
of Business Conduct,
corporate governance
guidelines and
charters for each board
committee, available
at www.phstock.com/
corporategovernance.
8
9
Parker is a
values-driven
company and
encourages
employees to
navigate both their
lives and careers
with a strong
sense of purpose.
10
WINNING WITH INTEGRITY
Creating and sustaining a strong internal culture is
key to growth. Throughout its history, Parker has
recognized the link between maintaining a culture
which emphasizes honesty, integrity and respect,
and achieving strong financial performance and
customer satisfaction.
Parker’s culture is a unique competitive advantage
and to preserve it, the company takes a strength-based
approach to culture and leadership known as Winning
With Integrity. This approach draws out the very best
qualities of Parker’s diverse employees and enables
them to grow, which in turn helps grow the business.
Winning With Integrity principles and methods are
founded on a simple idea: employees who have the
opportunity to do what they do best each day are more
engaged, productive and fulfilled by their contributions
at work.
“Our strength-
based approach
to culture and
leadership builds
on our already
strong culture
and contributes
to long-term
sustainable
growth. Focusing
on what people
do well increases
engagement and
positively impacts
leading indicators
such as customer
engagement,
improved morale
and discretionary
effort.”
– Catherine A. Suever,
Vice President and
Controller
11
CORPORATE
COMPLIANCE
Parker’s compliance
structure and programs
are regularly adapted to
enable employees around
the world to always do
what is right. Through
annual compliance
training, the company
educates employees on
conflicts of interests,
the giving and receiving
of gifts, third-party
relationships and other
issues which reflect
the modern challenges
of the global business
environment.
Parker’s Global Code
of Business Conduct is
also an integral part of
onboarding education for
those who join Parker. The
Code is available online
at www.parker.com/
integrityandethics.
Following nearly a
century of doing business,
Parker’s reputation as a
trusted partner is stronger
than ever due to the
employees who embrace
the responsibility to
preserve it. The Integrity
Line is available to all
Parker stakeholders
to report any behavior
that is misaligned with
the company’s values,
and all reports are
investigated lawfully and
confidentially.
By creating a culture in which individual
perspectives are embraced and where the
safety of every person is prioritized above all
else, Parker has attracted some of the most
driven and talented individuals from around
the world.
People
Encouraging flexibility,
autonomy and the
ability to explore and
excel, Parker strives to
engage all employees in
leveraging their expertise
to improve their portion
of the business.
In this environment
Parker employees can
thrive both personally and
professionally, charting
the course for their own
success while creating a
positive impact on the
lives of those around
them.
SAFETY
Nothing is more
important to Parker
than making sure every
employee returns home
safely after each work
day. The company is
committed to ensuring
the safety and security
of all employees,
contractors, customers
and any other guests who
visit a Parker facility.
All of Parker’s
manufacturing facilities
periodically measure
the performance of
their safety program,
comparing their progress
to company-wide
standards to identify
areas for continuous
improvement.
This year Parker’s
emphasis was on the
following aspects of its
safety program:
• Management systems,
including management
of change
• Robust incident
investigations
• Equipment and
machine safety
• Ergonomics
• Job safety analysis
12
13
Nothing is
more important
to Parker than
making sure
every employee
returns home
safely after
each work day.
By implementing routine machine
inspections and providing comprehensive
safety training reinforced by ongoing
communications, several safety-focused
High Performance Teams across Europe
helped the division to achieve an 80%
reduction in the number of injuries since
2012, including a Recordable Accident
Rate of 0.5 in 2015.
Pump and Motor Division Europe
in the number of injuries
80%REDUCTION
since 2012
Safety Leader
Parker’s 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.
The goal is always zero
accidents. In the near
term, Parker is driving
to reduce the number
of workplace accidents
by 50%.
Since 2011, Parker has
achieved a 35% reduction
in the Recordable
Accident Rate, including
a 10% improvement in
2015 during which 171
Parker facilities were
accident free.
Parker deeply regrets
an employee fatality
which occurred at a
United Kingdom facility
this year. The company
is cooperating with
responsible authorities
on an investigation
and taking action to
prevent such incidents
in the future.
Recordable Accident Rate
Normalized to 100 employees per year.
1.432015
2014 1.59
2013 1.76
2012 2.15
2011 2.22
14
ENGAGED PEOPLE
There is a direct
correlation between
high engagement and
great performance, and
Parker has accentuated
the importance of
employee engagement by
establishing it as the first
Win Strategy goal. In an
environment structured
to enable growth and
development, Parker
employees leverage
their diverse knowledge
and experiences to
improve the company’s
performance.
15
High Performance
Teams, a structured
approach to team
work and collaborative
decision making, facilitate
collaboration and engage
employees in solving
problems, supporting
customers and growing
the business.
GLOBAL WELLNESS
PROGRAM
Parker is committed
to helping employees
embrace a healthy
lifestyle which includes
a balanced and nutritious
diet, routine exercise
and the conscientious
management of
everyday stress.
Supported by a
wellness-focused team
of employees at each of
its facilities, Parker’s
wellness program is
designed to provide
comprehensive
educational resources,
establish group exercise
programs and create a
supportive environment,
enabling employees
to take control of their
health and affect positive
change in their own lives.
INCLUSION
The ability of Parker
to develop innovative
technologies and grow
the business is dependent
upon attracting talented,
driven employees from
diverse backgrounds,
and creating a culture in
which they can leverage
their creativity and
unique skill sets to thrive.
At the individual level,
Parker is engaging
employees by forming
business resource groups
(BRGs) for people with
shared characteristics
or interests. This year
marked the launch of
Peer W, a BRG established
to support the attraction,
development and
retention of talented
women at Parker,
providing resources,
networking opportunities
and support for women
in all roles across the
organization. Peer W is a
pioneering effort which,
following a pilot phase in
Northeast Ohio, will help
to establish a framework
for similar groups to be
formed in other regions
around the world.
16
Holiday Spirit
O-Ring Division
Lexington, KY, USA
Determined to do their part to make the world
a little brighter during the holidays, employees
donated more than 6,400 pounds (2,903 kg)
of food and water to a local food bank.
Building on their success, they also sent
packages containing magazines, fishing
gear and other items to a U.S. Army platoon
stationed in Kuwait to deliver a small piece of
home to the soldiers’ remote base.
6,400 POUNDS
More than
of food and water
to a local food bank
donated
SOCIAL RESPONSIBILITY
The practice of volunteering and charitable giving has
been central to Parker’s culture since the company
was founded nearly a century ago. Many of Parker’s
manufacturing facilities are located in rural areas, and
longstanding relationships with community members
and local organizations are vital to the company’s
success.
Parker has recently established a Disaster Relief
Program to provide critical support in times of need
following a catastrophic event. The program is designed
to rapidly distribute funds to Parker employees and
their families who have been impacted by a disaster.
To strengthen the recovery process throughout
the affected region, Parker has also established a
collaborative program with the American Red Cross
through which every dollar donated by a Parker
employee will be matched by the Parker Hannifin
Foundation.
In addition to thousands of volunteer hours generously
contributed by employees, this year the Parker
Hannifin Foundation donated more than $6 million to
approximately 200 qualified charitable organizations.
The Foundation strategy is focused on the needs of
the communities in which Parker operates, math and
science education, and water and energy conservation.
17
The Parker Hannifin Foundation
Focus Areas
Civic /
Community
Health
Arts
Education
25%
12%
26%
37%
Bicycle
Campaign
Ten years ago
Parker employees
in Northeast Ohio
began donating time
and money to provide
bicycles to local
children in need of
economic assistance.
In the past decade
the program has
spread to several
Parker locations
around the world
through the generosity
of employees, who
have since donated
more than 6,000
bicycles globally.
bicycles
DONATED
GLOBALLY
More than
6,000
Today Parker challenges its employees
to not only discover innovative ways to solve
problems for customers, but to do so in a
way that minimizes the company’s impact
on the environment.
Planet
This commitment to
responsible operations
is shared across all
areas of the company,
from engineering
and manufacturing
to distribution and
services. Parker’s way
of doing business is
based in its conviction
that minimizing
the consumption of
resources, recycling to
reduce waste sent to
landfills and engineering
products that precisely
balance performance
and efficiency will help to
create a better future
for all.
ENVIRONMENTAL
STEWARDSHIP
In addition to a detailed
policy with provisions
to reduce resource
consumption and waste,
Parker has established
a global network of
Environmental, Health
and Safety experts and
provides them with the
educational materials
and tools to improve the
company’s sustainability
performance.
The results of their efforts
have been promising.
Today Parker recycles 82%
of the waste generated
from its manufacturing
operations, and since
calendar year 2010, the
company has reduced the
amount of water used in
operations by 12%.
There are still ample
opportunities to build
on these achievements,
and Parker is targeting an
additional 20% reduction
of water use, waste sent to
landfills and energy use
by 2020.
18
Today Parker
recycles 82%
of the waste
generated from
its manufacturing
operations, and
is targeting an
additional 20%
reduction of water
use, waste sent to
landfills and energy
use by 2020.
19
Hazardous Materials
Across all of its
manufacturing operations
Parker strives to avoid
using materials which
could cause damage
to the environment.
The collective effort of
operations experts at
all Parker locations has
enabled a 90% reduction
in the use of chlorinated
solvents and eliminated
over 80% of other U.S.
Environmental Protection
Agency (EPA) target
chemicals.
Parker has also largely
eliminated highly
hazardous substances
such as cadmium and
hexavalent chromium
from its products and
processes.
Remediation
Parker is helping to rectify
past environmental
impact by actively
investing and engaging
in the remediation of
properties affected
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, 2015,
Parker had an accrual
of $17.0 million for
environmental matters.
20
Manufacturing
Overhaul
Chomerics
Division Asia
Shanghai, China
Chomerics Division
Asia engineers
a wide range of
electromagnetic
shielding, conductive
coating and
thermoplastic
solutions in
custom sizes and
configurations based
on customer needs,
often resulting in
material waste
generated during
manufacturing.
By redesigning
product molds and
implementing a
recycling program
to repurpose scrap
material that was
previously sent to
a landfill, engineers
were able to minimize
material waste
generation and
reduce manufacturing
costs by more than
$260,000.
manufacturing
REDUCED
by more than
$260,000
costs
21
ENERGY MANAGEMENT
Perhaps the greatest opportunity for Parker to reduce its impact on the environment
is by reducing energy consumption and emissions. From optimizing manufacturing
processes to modernizing facilities, Parker employees drive this initiative by
implementing creative solutions to decrease energy use at the local level.
Since 2004, Parker has been able to reduce absolute energy consumption by 20%
while growing sales by 83%.
As measured by indexing to sales, this represents a greater than 50% reduction in
energy use and associated greenhouse gas emissions.
Parker’s Energy Use and Emissions Reduction Results
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
116 697,5862011 2011
105 672,2232012 2012
99 619,5252013 2013
96 603,0432014 2014
amount
REDUCED
Trash to Food
Fluid System Connectors Division
Albion, IN, USA
Finding a unique way to benefit both the
environment and their community, employees
began sorting cardboard, metal and wood
skids from other trash and using the money
collected from recycling these materials
to support local charities. This year they
reduced the amount of waste sent to the
landfill by 62% and donated more than
$7,900 to a local food bank.
sent to landfill by
62%
of waste
Parker utilizes a unique approach to new
product development called Winovation,
which establishes specific deliverables at
each stage of the process to ensure suitable
rigor in the research and development of new
technologies, products and services.
Product
Stewardship
Winovation provides
the framework needed
to guide Parker’s global
product development
teams toward the
accomplishment
of shared strategic
objectives.
The Winovation process,
coupled with direct
customer and user
interaction, allows
Parker to utilize its
extensive knowledge
base to create new
solutions that incorporate
both industrial and
environmental value.
Examples include
products that increase
industrial system
performance while
also reducing weight,
22
increasing efficiency and
reducing the use of scarce
resources. Parker proudly
counts an increasing
number of projects that
significantly improve
sustainability among
the wide range of new
solutions offered to its
customers.
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.
Used in countless
applications by a
diverse range of
partners, Parker’s
products and
systems offer an
immense opportunity
for the company to
fulfill its commitment
to sustainability.
23
AIR SAVER
Given its
effectiveness
in eliminating
moisture, reducing
temperature and
clearing away dust
or other substances,
compressed air is
a critical tool used in
industrial and automotive
manufacturing, food
processing, electronics
assembly, bottling
and countless other
applications.
Generating compressed
air, however, is an energy-
intensive process that
can account for as much
as 20% of a facility’s total
power consumption.
In most cases, air
compressors provide a
MODULATED TURBINE CLEARANCE CONTROL VALVE
Developing a cleaner, more efficient airplane can benefit airlines, passengers and
the environment, but such advancements present a unique challenge in an industry
where passenger safety and aircraft reliability are paramount, and changes to aircraft
design are implemented only after careful consideration and extensive testing.
To address this challenge Parker has
developed the Modulated Turbine
Clearance Control Valve (MTCCV) for
large civil aircraft. The MTCCV is an
actuator-driven butterfly valve used
in aircraft engines, which manages
airflow to enable the expansion or
contraction of the casing surrounding
the engine.
By controlling the distance between the
casing and the engine’s rotating blades,
known as tip clearance, the MTCCV
increases the engine’s efficiency.
24
constant supply of
compressed air, regardless
of when and how it is
being used.
Air Saver is a switching
valve technology
that, when supplied a
continuous stream of
compressed air, generates
pulsed air blow that is
only “on” when air is
required by the operator.
By stemming the supply
in between periods of
active use, Air Saver
reduces air consumption
by 50%.
By cutting compressed
air use in half, Air
Saver can decrease a
facility’s overall power
consumption by up
to 5%, significantly
reducing emissions
and operating costs.
Air Saver requires no
power to operate, and
installation requires no
modifications to plant
operations and does not
interrupt production. Air
Saver is a simple plug-in
solution to improve
efficiency, protect the
environment and benefit
the bottom line.
The benefits of
this performance
improvement
include extended
service life, as well
as a reduction in
fuel consumption
and emissions.
FAST-FILL
COMPRESSED
NATURAL GAS
DISPENSER
To reduce their
environmental footprint
and decrease fuel costs,
many fleet operators
are turning to natural
gas as an alternative
to gasoline or diesel.
Natural gas provides
comparable amounts of
power and acceleration
while producing lower
levels of emissions and
particulates, often at a
significantly lower cost.
A heavy duty vehicle
powered by natural gas,
such as a refuse truck or
passenger bus, produces
up to 15% fewer emissions
of greenhouse gases and
harmful particulates than
a standard diesel model.
When it comes to filling
the tank, the transition
to a vehicle powered by
natural gas feels seamless
to a driver refueling with
a Parker Compressed
Natural Gas (CNG)
dispenser. The unit is
capable of quickly refilling
the empty fuel tank of a
small passenger car or
heavy duty truck, refuse
vehicle or passenger bus.
It displays traditional
metrics such as the fuel
quantity and cost, in
addition to natural gas-
specific measures of flow
rate and pressure, offering
a familiar and convenient
user experience.
Designed with safety as
a top priority, the Parker
CNG dispenser uses
a series of protective
sensors, breakaway
couplings and hose
25
disconnects to eliminate
the risk of mechanical
or user malfunctions.
The system is held to
the highest standard of
quality to prevent leakage,
minimize downtime and
provide consistent and
reliable service.
Approximately 500,000 natural gas vehicles refuel
using Parker dispensers every day, a significant first
step toward the future of sustainable transportation.
PS-2045 April 2016© 2016 Parker Hannifin Corporation
Parker Hannifin Corporation
6035 Parkland Boulevard
Cleveland, OH 44124
Tel: 216-896-3000
parkerEHS@parker.com
www.parker.com
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.

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Parker 2015 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 of approximately $13 billion in fiscal year 2015, 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 Parker 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 2015 (July 1, 2014 through June 30, 2015) unless otherwise noted. The previous report corresponded to Parker’s fiscal year 2014. 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 comments and questions about its sustainability efforts by email: parkerEHS@parker.com TABLE OF CONTENTS Leadership Message 2 Sustainability 4 Governance, Ethics & Compliance 8 People 12 Planet 18 Product Stewardship 22
  • 3. Financial Highlights Premier Customer Experience • Quality Solutions On Time • eBusiness Leadership • Ease of Doing Business Profitable Growth • Market-Driven Innovation • System Solutions • Strong Distribution • Grow Share • Engineering Expertise Financial Performance • Simplification • Lean Enterprise • Strategic Supply Chain • Value Pricing Organic Acquisitions Services Engaged People • Environmental, Health & Safety • Entrepreneurial • High Performance Teams & Leaders Goals Our Vision: Engineering Your Success STRATEGIES STRATEGIES STRATEGIES STRATEGIES TM • • • • • Our Values We are Parker… Our business is founded in a history of fair dealings, and listening to our customers and employees. We believe our future growth is assured by honoring that tradition of excellence and by ongoing adherence to our core values. Winning Culture We insist on integrity, honesty, respect and ethical behavior. We welcome and encourage diversity in all aspects of our global business. We seek to raise the standard of living through responsible, global stewardship. Value needs innov Engag Our e THE WIN STRATEGY Introduced in 2001 and recently refreshed under new leadership, the Win Strategy™ is the Parker business system. It focuses on long-established Parker goals of engaged people, premier customer experience, profitable growth and financial performance, and will continue to be instrumental in transforming the company and improving operations. For the Year Ended June 30 (dollars in thousands, except per share data) 1 2015 Net sales $12,711,744 Gross profit 3,056,499 Net income attributable to common shareholders 1,012,140 Net cash provided by operating activities 1,301,941 Diluted earnings per share $ 6.97 Number of employees 54,754
  • 4. 2 This year marked the introduction of the new Win Strategy, an update to the Parker business system which has been instrumental in transforming the company’s operations and optimizing performance since it was first introduced in 2001. In developing the new Win Strategy, with valuable input from many Parker stakeholders and team members, we had an opportunity to redefine what it will take for Parker to be successful in a rapidly changing global business environment. In addition to strategies for growing the business and achieving strong financial performance, the new Win Strategy reinforces our commitment to responsible operations. It reflects Parker’s determination to create a positive impact in the lives of our team members, to always be good stewards of the environment and to support the communities around the world which we call home. Our approach prioritizes safety, because nothing is more important than making sure every Parker team member returns home safely after each work day. We are now more focused than ever on establishing a safety-first culture and achieving our goal of zero accidents. While this may seem an ambitious target considering Parker’s size and scope, our accident rate continues to decline year after year. Parker leaders and team members around the world are highly engaged in improving our safety performance, and our near-term goal is to reduce workplace accidents by 50%. However, we will continue to study best-in-class safety practices, optimize our equipment and operations and diligently train our team members in pursuit of an accident- free workplace. With hundreds of manufacturing facilities around the world, Parker must also play a role in proper environmental stewardship and we are in a unique position to lead by example with our sustainability efforts. With guidance from corporate sustainability leaders, Parker is developing and implementing creative initiatives to reduce energy consumption and water use, and to minimize waste sent to landfills by reusing or recycling materials. We accomplish this in part through a series of distinctive programs designed by team members to address local sustainability goals. Their efforts are not only placing Parker on a path to reach our sustainability goals, but also are making us more efficient, and the results have been remarkable. Today Parker recycles 82% of the waste generated from our manufacturing operations. We are targeting an additional 20% reduction of waste sent to landfills by 2020. Parker engineers are continuing to leverage innovative technologies to advance the way our products are made and how they operate. Leadership Message
  • 5. 3 Thomas L. Williams Chairman and Chief Executive Officer Lee C. Banks President and Chief Operating Officer financial performance goals, but strengthened our commitment to social responsibility and environmental stewardship. Throughout this report you will see examples of what Parker team members are doing to improve safety, conserve resources and support their local communities, and learn about our long-term plan to help make the world a better place. Without sacrificing performance, they are creating components and systems that are lighter and more compact, and designed to operate with unmatched efficiency. Exciting new sensor capabilities fueling the Internet of Things (IoT) provide critical data that will enable us to help customers to streamline maintenance and minimize equipment downtime. The benefits of such rapidly advancing technologies are being seamlessly integrated into Parker’s proven products and systems. We are constantly improving our ability to help our customers increase their productivity and profitability, while at the same time minimizing their environmental impact. With the introduction of the new Win Strategy, this year Parker has not only reestablished the strategies the company will employ to achieve its March 2016
  • 6. The fundamental elements of a sustainable business have been in place throughout Parker’s history. For nearly a century the company has strived to develop products that help customers increase productivity, and to create a positive impact on employees and in local communities. These ambitions have always been central to Parker’s identity. Sustainability To align and reinforce efforts across its global operations, Parker recently defined its sustainability commitment as: engaging employees and helping them thrive in their personal and professional lives; strengthening local communities and supporting organizations that make the world a better place. These opportunities to make a difference inspire Parker to be better every day. PLANET As a global manufacturer Parker must also act responsibly with the planet’s natural resources. By using eco-friendly materials, minimizing waste and reducing the consumption of resources such as energy and water, Parker is actively minimizing its environmental footprint. 4 PEOPLE Parker views sustainability through a human lens, and measures the success of its sustainability efforts by the company’s impact on the lives of people it reaches. Creating a safety-first work environment in pursuit of zero accidents; To responsibly solve the world’s greatest engineering challenges to foster enduring success for the company, customers and communities.
  • 7. Parker views sustainability through a human lens, and measures the success of its sustainability efforts by the company’s impact on the lives of people it reaches. PRODUCTS Used in countless applications by a diverse range of partners, Parker’s products and systems offer an immense opportunity for the company to fulfill its commitment to sustainability. Using sustainable materials in manufacturing, improving operating efficiency and engineering products that can be reused or recycled are all approaches Parker is taking to help preserve the planet. 5
  • 8. 6 In celebration of the 45th anniversary of Earth Day, Parker challenged all employees to work together to reduce energy and water use, establish recycling programs and initiate other projects to help minimize the company’s environmental footprint. Demonstrating the collective power of many individual efforts, this year Parker employees around the world responded overwhelmingly to the Earth Day Challenge by: Earth Day Challenge Reducing energy use by 12 MILLION kWh Preventing more than 6 TONS OF WASTE from reaching landfills 21.5MILLION GALLONS Decreasing water consumption by POTENTIAL RISKS AND BOUNDARIES Parker must address a number of risks related to the manufacture, sale and application of its products. The transition away from a carbon- based economy could impact demand for Parker’s products, and scarcity of raw materials such as metals and organic compounds could interfere with the company’s ability to deliver those products. Parker also assumes the operational risk of a disruption to manufacturing due to the inability of supply chain partners, or even the company itself, to meet environmental or social standards. Failure to meet the expectations of stakeholders related to environmental and social accountability also creates a long-term risk for the company. The boundary condition of these risks varies based on the area of focus. For the People initiative of its sustainability strategy, Parker’s boundary condition encompasses its employees, partners and the communities around the world in which the company operates. The boundary condition of the Planet initiative is largely the company’s manufacturing footprint, with additional focus on select areas of the supply chain. Lastly, the Product initiative focuses primarily on internal innovation, but the boundary condition also extends to the customer and target markets.
  • 9. 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 input through direct feedback from: its marketing and sales teams; suppliers on their compliance with Parker’s sustainability requirements through the company’s supply chain web portal; the Parker leadership team; and ratings from the investor community. Parker also analyzes information from benchmarking efforts within its diversified industrial peer group. SUPPLIER PARTNERSHIPS Parker partners with world-class suppliers which share its commitment to reducing resource consumption and waste, while maintaining the highest standards for premier customer experience, quality and on-time delivery. With an annual supplier spend exceeding $6 billion, continuing to improve the supply chain in these areas of focus presents a compelling opportunity for Parker to reduce its global footprint and improve the resilience of its suppliers. As a supplier itself, Parker is also responsible for conserving resources, optimizing manufacturing processes, upholding human rights and creating highly efficient and reliable products and systems which enable customers to minimize their own environmental impact. 7
  • 10. In a complex and unpredictable global market, Parker’s success can be attributed to its ability to constantly adapt to meet the needs of its customers. Parker’s values, however, are unchanging. They serve as the core beliefs which Parker employees use to define ethical behavior, and provide a clear and unwavering guide to conducting business with integrity and respect. Governance, Ethics & Compliance Parker is a values-driven company and encourages employees to navigate both their lives and careers with a strong sense of purpose. It is the Parker culture and values, more than any strategy or measure that will determine the company’s success in the future. CORPORATE GOVERNANCE The strong values and culture upon which Parker has built its success and reputation as a trusted partner begins with its Board of Directors. The Board has a 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. Parker’s Board of Directors is guided by the company’s Global Code of Business Conduct, corporate governance guidelines and charters for each board committee, available at www.phstock.com/ corporategovernance. 8
  • 11. 9 Parker is a values-driven company and encourages employees to navigate both their lives and careers with a strong sense of purpose.
  • 12. 10 WINNING WITH INTEGRITY Creating and sustaining a strong internal culture is key to growth. Throughout its history, Parker has recognized the link between maintaining a culture which emphasizes honesty, integrity and respect, and achieving strong financial performance and customer satisfaction. Parker’s culture is a unique competitive advantage and to preserve it, the company takes a strength-based approach to culture and leadership known as Winning With Integrity. This approach draws out the very best qualities of Parker’s diverse employees and enables them to grow, which in turn helps grow the business. Winning With Integrity principles and methods are founded on a simple idea: employees who have the opportunity to do what they do best each day are more engaged, productive and fulfilled by their contributions at work. “Our strength- based approach to culture and leadership builds on our already strong culture and contributes to long-term sustainable growth. Focusing on what people do well increases engagement and positively impacts leading indicators such as customer engagement, improved morale and discretionary effort.” – Catherine A. Suever, Vice President and Controller
  • 13. 11 CORPORATE COMPLIANCE Parker’s compliance structure and programs are regularly adapted to enable employees around the world to always do what is right. Through annual compliance training, the company educates employees on conflicts of interests, the giving and receiving of gifts, third-party relationships and other issues which reflect the modern challenges of the global business environment. Parker’s Global Code of Business Conduct is also an integral part of onboarding education for those who join Parker. The Code is available online at www.parker.com/ integrityandethics. Following nearly a century of doing business, Parker’s reputation as a trusted partner is stronger than ever due to the employees who embrace the responsibility to preserve it. The Integrity Line is available to all Parker stakeholders to report any behavior that is misaligned with the company’s values, and all reports are investigated lawfully and confidentially.
  • 14. By creating a culture in which individual perspectives are embraced and where the safety of every person is prioritized above all else, Parker has attracted some of the most driven and talented individuals from around the world. People Encouraging flexibility, autonomy and the ability to explore and excel, Parker strives to engage all employees in leveraging their expertise to improve their portion of the business. In this environment Parker employees can thrive both personally and professionally, charting the course for their own success while creating a positive impact on the lives of those around them. SAFETY Nothing is more important to Parker than making sure every employee returns home safely after each work day. The company is committed to ensuring the safety and security of all employees, contractors, customers and any other guests who visit a Parker facility. All of Parker’s manufacturing facilities periodically measure the performance of their safety program, comparing their progress to company-wide standards to identify areas for continuous improvement. This year Parker’s emphasis was on the following aspects of its safety program: • Management systems, including management of change • Robust incident investigations • Equipment and machine safety • Ergonomics • Job safety analysis 12
  • 15. 13 Nothing is more important to Parker than making sure every employee returns home safely after each work day.
  • 16. By implementing routine machine inspections and providing comprehensive safety training reinforced by ongoing communications, several safety-focused High Performance Teams across Europe helped the division to achieve an 80% reduction in the number of injuries since 2012, including a Recordable Accident Rate of 0.5 in 2015. Pump and Motor Division Europe in the number of injuries 80%REDUCTION since 2012 Safety Leader Parker’s 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. The goal is always zero accidents. In the near term, Parker is driving to reduce the number of workplace accidents by 50%. Since 2011, Parker has achieved a 35% reduction in the Recordable Accident Rate, including a 10% improvement in 2015 during which 171 Parker facilities were accident free. Parker deeply regrets an employee fatality which occurred at a United Kingdom facility this year. The company is cooperating with responsible authorities on an investigation and taking action to prevent such incidents in the future. Recordable Accident Rate Normalized to 100 employees per year. 1.432015 2014 1.59 2013 1.76 2012 2.15 2011 2.22 14
  • 17. ENGAGED PEOPLE There is a direct correlation between high engagement and great performance, and Parker has accentuated the importance of employee engagement by establishing it as the first Win Strategy goal. In an environment structured to enable growth and development, Parker employees leverage their diverse knowledge and experiences to improve the company’s performance. 15 High Performance Teams, a structured approach to team work and collaborative decision making, facilitate collaboration and engage employees in solving problems, supporting customers and growing the business. GLOBAL WELLNESS PROGRAM Parker is committed to helping employees embrace a healthy lifestyle which includes a balanced and nutritious diet, routine exercise and the conscientious management of everyday stress. Supported by a wellness-focused team of employees at each of its facilities, Parker’s wellness program is designed to provide comprehensive educational resources, establish group exercise programs and create a supportive environment, enabling employees to take control of their health and affect positive change in their own lives.
  • 18. INCLUSION The ability of Parker to develop innovative technologies and grow the business is dependent upon attracting talented, driven employees from diverse backgrounds, and creating a culture in which they can leverage their creativity and unique skill sets to thrive. At the individual level, Parker is engaging employees by forming business resource groups (BRGs) for people with shared characteristics or interests. This year marked the launch of Peer W, a BRG established to support the attraction, development and retention of talented women at Parker, providing resources, networking opportunities and support for women in all roles across the organization. Peer W is a pioneering effort which, following a pilot phase in Northeast Ohio, will help to establish a framework for similar groups to be formed in other regions around the world. 16 Holiday Spirit O-Ring Division Lexington, KY, USA Determined to do their part to make the world a little brighter during the holidays, employees donated more than 6,400 pounds (2,903 kg) of food and water to a local food bank. Building on their success, they also sent packages containing magazines, fishing gear and other items to a U.S. Army platoon stationed in Kuwait to deliver a small piece of home to the soldiers’ remote base. 6,400 POUNDS More than of food and water to a local food bank donated
  • 19. SOCIAL RESPONSIBILITY The practice of volunteering and charitable giving has been central to Parker’s culture since the company was founded nearly a century ago. Many of Parker’s manufacturing facilities are located in rural areas, and longstanding relationships with community members and local organizations are vital to the company’s success. Parker has recently established a Disaster Relief Program to provide critical support in times of need following a catastrophic event. The program is designed to rapidly distribute funds to Parker employees and their families who have been impacted by a disaster. To strengthen the recovery process throughout the affected region, Parker has also established a collaborative program with the American Red Cross through which every dollar donated by a Parker employee will be matched by the Parker Hannifin Foundation. In addition to thousands of volunteer hours generously contributed by employees, this year the Parker Hannifin Foundation donated more than $6 million to approximately 200 qualified charitable organizations. The Foundation strategy is focused on the needs of the communities in which Parker operates, math and science education, and water and energy conservation. 17 The Parker Hannifin Foundation Focus Areas Civic / Community Health Arts Education 25% 12% 26% 37% Bicycle Campaign Ten years ago Parker employees in Northeast Ohio began donating time and money to provide bicycles to local children in need of economic assistance. In the past decade the program has spread to several Parker locations around the world through the generosity of employees, who have since donated more than 6,000 bicycles globally. bicycles DONATED GLOBALLY More than 6,000
  • 20. Today Parker challenges its employees to not only discover innovative ways to solve problems for customers, but to do so in a way that minimizes the company’s impact on the environment. Planet This commitment to responsible operations is shared across all areas of the company, from engineering and manufacturing to distribution and services. Parker’s way of doing business is based in its conviction that minimizing the consumption of resources, recycling to reduce waste sent to landfills and engineering products that precisely balance performance and efficiency will help to create a better future for all. ENVIRONMENTAL STEWARDSHIP In addition to a detailed policy with provisions to reduce resource consumption and waste, Parker has established a global network of Environmental, Health and Safety experts and provides them with the educational materials and tools to improve the company’s sustainability performance. The results of their efforts have been promising. Today Parker recycles 82% of the waste generated from its manufacturing operations, and since calendar year 2010, the company has reduced the amount of water used in operations by 12%. There are still ample opportunities to build on these achievements, and Parker is targeting an additional 20% reduction of water use, waste sent to landfills and energy use by 2020. 18
  • 21. Today Parker recycles 82% of the waste generated from its manufacturing operations, and is targeting an additional 20% reduction of water use, waste sent to landfills and energy use by 2020. 19
  • 22. Hazardous Materials Across all of its manufacturing operations Parker strives to avoid using materials which could cause damage to the environment. The collective effort of operations experts at all Parker locations has enabled a 90% reduction in the use of chlorinated solvents and eliminated over 80% of other U.S. Environmental Protection Agency (EPA) target chemicals. Parker has also largely eliminated highly hazardous substances such as cadmium and hexavalent chromium from its products and processes. Remediation Parker is helping to rectify past environmental impact by actively investing and engaging in the remediation of properties affected 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, 2015, Parker had an accrual of $17.0 million for environmental matters. 20 Manufacturing Overhaul Chomerics Division Asia Shanghai, China Chomerics Division Asia engineers a wide range of electromagnetic shielding, conductive coating and thermoplastic solutions in custom sizes and configurations based on customer needs, often resulting in material waste generated during manufacturing. By redesigning product molds and implementing a recycling program to repurpose scrap material that was previously sent to a landfill, engineers were able to minimize material waste generation and reduce manufacturing costs by more than $260,000. manufacturing REDUCED by more than $260,000 costs
  • 23. 21 ENERGY MANAGEMENT Perhaps the greatest opportunity for Parker to reduce its impact on the environment is by reducing energy consumption and emissions. From optimizing manufacturing processes to modernizing facilities, Parker employees drive this initiative by implementing creative solutions to decrease energy use at the local level. Since 2004, Parker has been able to reduce absolute energy consumption by 20% while growing sales by 83%. As measured by indexing to sales, this represents a greater than 50% reduction in energy use and associated greenhouse gas emissions. Parker’s Energy Use and Emissions Reduction Results 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 116 697,5862011 2011 105 672,2232012 2012 99 619,5252013 2013 96 603,0432014 2014 amount REDUCED Trash to Food Fluid System Connectors Division Albion, IN, USA Finding a unique way to benefit both the environment and their community, employees began sorting cardboard, metal and wood skids from other trash and using the money collected from recycling these materials to support local charities. This year they reduced the amount of waste sent to the landfill by 62% and donated more than $7,900 to a local food bank. sent to landfill by 62% of waste
  • 24. Parker utilizes a unique approach to new product development called Winovation, which establishes specific deliverables at each stage of the process to ensure suitable rigor in the research and development of new technologies, products and services. Product Stewardship Winovation provides the framework needed to guide Parker’s global product development teams toward the accomplishment of shared strategic objectives. The Winovation process, coupled with direct customer and user interaction, allows Parker to utilize its extensive knowledge base to create new solutions that incorporate both industrial and environmental value. Examples include products that increase industrial system performance while also reducing weight, 22 increasing efficiency and reducing the use of scarce resources. Parker proudly counts an increasing number of projects that significantly improve sustainability among the wide range of new solutions offered to its customers. 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.
  • 25. Used in countless applications by a diverse range of partners, Parker’s products and systems offer an immense opportunity for the company to fulfill its commitment to sustainability. 23
  • 26. AIR SAVER Given its effectiveness in eliminating moisture, reducing temperature and clearing away dust or other substances, compressed air is a critical tool used in industrial and automotive manufacturing, food processing, electronics assembly, bottling and countless other applications. Generating compressed air, however, is an energy- intensive process that can account for as much as 20% of a facility’s total power consumption. In most cases, air compressors provide a MODULATED TURBINE CLEARANCE CONTROL VALVE Developing a cleaner, more efficient airplane can benefit airlines, passengers and the environment, but such advancements present a unique challenge in an industry where passenger safety and aircraft reliability are paramount, and changes to aircraft design are implemented only after careful consideration and extensive testing. To address this challenge Parker has developed the Modulated Turbine Clearance Control Valve (MTCCV) for large civil aircraft. The MTCCV is an actuator-driven butterfly valve used in aircraft engines, which manages airflow to enable the expansion or contraction of the casing surrounding the engine. By controlling the distance between the casing and the engine’s rotating blades, known as tip clearance, the MTCCV increases the engine’s efficiency. 24 constant supply of compressed air, regardless of when and how it is being used. Air Saver is a switching valve technology that, when supplied a continuous stream of compressed air, generates pulsed air blow that is only “on” when air is required by the operator. By stemming the supply in between periods of active use, Air Saver reduces air consumption by 50%. By cutting compressed air use in half, Air Saver can decrease a facility’s overall power consumption by up to 5%, significantly reducing emissions and operating costs. Air Saver requires no power to operate, and installation requires no modifications to plant operations and does not interrupt production. Air Saver is a simple plug-in solution to improve efficiency, protect the environment and benefit the bottom line. The benefits of this performance improvement include extended service life, as well as a reduction in fuel consumption and emissions.
  • 27. FAST-FILL COMPRESSED NATURAL GAS DISPENSER To reduce their environmental footprint and decrease fuel costs, many fleet operators are turning to natural gas as an alternative to gasoline or diesel. Natural gas provides comparable amounts of power and acceleration while producing lower levels of emissions and particulates, often at a significantly lower cost. A heavy duty vehicle powered by natural gas, such as a refuse truck or passenger bus, produces up to 15% fewer emissions of greenhouse gases and harmful particulates than a standard diesel model. When it comes to filling the tank, the transition to a vehicle powered by natural gas feels seamless to a driver refueling with a Parker Compressed Natural Gas (CNG) dispenser. The unit is capable of quickly refilling the empty fuel tank of a small passenger car or heavy duty truck, refuse vehicle or passenger bus. It displays traditional metrics such as the fuel quantity and cost, in addition to natural gas- specific measures of flow rate and pressure, offering a familiar and convenient user experience. Designed with safety as a top priority, the Parker CNG dispenser uses a series of protective sensors, breakaway couplings and hose 25 disconnects to eliminate the risk of mechanical or user malfunctions. The system is held to the highest standard of quality to prevent leakage, minimize downtime and provide consistent and reliable service. Approximately 500,000 natural gas vehicles refuel using Parker dispensers every day, a significant first step toward the future of sustainable transportation.
  • 28. PS-2045 April 2016© 2016 Parker Hannifin Corporation Parker Hannifin Corporation 6035 Parkland Boulevard Cleveland, OH 44124 Tel: 216-896-3000 parkerEHS@parker.com www.parker.com 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.