BY DAYO ADESULU
Emerson (NYSE: EMR) has announced the publication of its 2020 Environmental, Social and Governance (ESG) Report (www.Emerson.com/en-us/esg).
It highlights how the company develops and delivers technologies, software and services to enable greater sustainability, efficiency and safety for essential industries while supporting communities worldwide.
As Emerson helps drive progress across industries, the company is advancing its diversity, equity and inclusion. Within the new report, Emerson shared its goal to double the representation of women globally and U.S. minorities at the leadership level by 2030. This goal underscores Emerson’s commitment to empowering a diverse global workforce.
“Building on our ESG focus has truly brought out the best in our employees – and our company,” said Lal Karsanbhai, president and chief executive officer of Emerson. “We are building momentum in vital areas like sustainability and inclusion, and we are actively cultivating a workforce that reflects the world around us.
“Our employees are energized to live out our Purpose, driving innovation that makes the world healthier, safer, smarter and more sustainable. Accelerating our progress in this space is one of my top priorities, and we look forward to continuing these efforts alongside our customers and our communities in the future.”
The 2020 ESG Report reinforces the company’s focus on empowering more sustainable operations and addressing complex challenges facing modern life in commercial, industrial and residential markets. Highlights of the report include:
Environmental
In 2020, Emerson took measurable steps to further enhance the company’s approach to environmental sustainability and in defining its role in making the world more sustainable. The company reported a 10% decrease in CO2 emissions, an 11% decrease in global electricity usage and a 9% decrease in global water consumption over the past year. Emerson also articulated its “Greening Of, By and With” framework to build on sustainability momentum.
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“We have made progress not only intangible sustainability initiatives but in driving engagement and excitement across the organization,” said Mike Train, who was recently named Emerson’s chief sustainability officer. “From the way we approach customer challenges to the unified Purpose that connects us as a global organization, sustainability is truly top of mind for our teams and in our approach to innovation.”
The company continues to address environmental, social and governance issues in partnership with stakeholders across its supply chain while maintaining high standards of corporate governance. In 2020, Emerson enhanced its focus to engage suppliers along their paths to reducing waste, controlling emissions and making the world more sustainable by establishing an environmental sustainability council with key suppliers.
Social
Emerson undertook several key initiatives to accelerate its diversity, equity and inclusion efforts this year. In addition to setting goals for diverse representation among leadership, Emerson hosted “Courageous Conversations,” a series of regional dialogues on topics related to advancing equity; launched Diverse Slates, a recruitment initiative to build a diverse talent pipeline; and launched two new employee resource groups: Somos, for Latin American and Hispanic employees, and the Asian & Pacific Islander Alliance.
In addition, Emerson continued its legacy of giving back to communities. In 2020, Emerson contributed $24.5 million to more than 1,300 charities, nonprofit organizations and educational institutions across the United States. The company also committed $3 million in support of STEM education programs over the past year, which included delivering thousands of STEM activity kits to elementary and middle school-aged children and to organizations that work with under-served youth to promote hands-on experiences in the remote learning environment.
Governance
Emerson has a longstanding dedication to high tenets of corporate governance. In 2021, Emerson shifted to an independent chair structure, electing independent director James Turley as chair of Emerson’s board of directors. In addition, the company recently added Chief Compliance Officer Lisa Flavin to its Office of the Chief Executive, reinforcing its commitment to ethical behaviour and high standards among all employees.
“Our 2020 ESG Report highlights the many ways we are putting our Purpose into action as we strive to be a strong corporate citizen both within the critical industries we serve and the communities where we live and work,” said Akberet Boykin Farr, vice president of diversity and social responsibility for Emerson. “We look forward to the many ways we will continue to deliver against our goals to help make the world more sustainable and inclusive in 2021 and beyond.”
