Parker Commits to Achieving Carbon Neutral Operations by 2040, Advances Technologies that Enable a Sustainable Future
27 July 2021 - 10:00PM
Parker Hannifin Corporation (NYSE:PH), the global leader in motion
and control technologies, today released its 2020
Sustainability Report and announced a new commitment to
achieve carbon neutral operations by 2040. Parker has also
established a series of emissions targets to ensure continued
progress.
Scope I, II and III Emissions Targets
- Reduce absolute emissions directly from the company’s
operations and indirect emissions from purchased energy (scopes I
and II) by 50% by 2030.
- Reduce other indirect absolute emissions related to materials
sourcing, logistics and services (scope III) by 15% by 2030, and
25% by 2040.
- Achieve carbon neutral operations (scopes I and II) by
2040.
“Parker has made great progress on our
sustainability journey and we recognize the need to do even more,”
said Tom Williams, Chairman and Chief Executive Officer of Parker.
“Our technologies enable customers around the world to be cleaner
and more efficient, and this commitment to reducing our own carbon
emissions is another important step we are taking to create a more
sustainable future for generations to come.”
The targets, featured in this year’s report, will
be submitted for approval by the Science Based Targets initiative,
which defines and promotes best practices in emissions reductions
and carbon neutral targets in line with climate science. Parker’s
long-term strategy includes actions to reduce its energy
consumption, investments in renewable energy and working closely
with suppliers to further reduce energy use and
emissions.
Technologies Enabling a Sustainable
Future
The 2020 Sustainability Report also highlights
Parker’s interconnected portfolio of motion and control
technologies, which features a broad range of highly efficient
products and systems engineered to help customers reduce resource
consumption and greenhouse gas emissions.
Parker delivers technology solutions that enable
the adoption of cleaner and more efficient energy, electrification,
light-weighting and other innovations with a positive, global
environmental impact to hundreds of thousands of companies across
the industrial, mobile and aerospace markets, including:
- A comprehensive suite of engineered materials such as thermal
management, coatings, adhesives and vibration control that enable
more electric applications.
- A broad range of motion and control technologies to support the
use of various clean energy sources such as batteries, fuel cells,
hydrogen, sustainable fuels and renewable energy.
- Strongest motion technology offering with electro-hydraulic,
electro-mechanical, and pneumatic actuators, valves, pumps, motors,
controllers, software and conveyance for more electric aerospace,
mobile and industrial applications.
- Broad platform of filtration technologies to accelerate a
cleaner and more sustainable world.
- Exciting bill-of-material expansion opportunities both for
onboard OEM equipment as well as significant new infrastructure
investment to support a cleaner technology world.
“With more than a century of experience, we are
often called to the table for the collaborations that help to solve
the most complex engineering challenges,” Williams added.
“Breakthroughs that make the world cleaner, smarter and safer would
not be possible without Parker technologies.”
Sustainability Report Key Achievements
Other key achievements related to Parker’s
sustainability initiatives detailed in the report include:
- Safety is a core value that all Parker team members share, and
the company has reduced its Recordable Incident Rate by 72% from
2015 through 2020. In 2020, the recordable incidents per 100 team
members was 0.40, a reduction of 35% from 2019.
- Since 2010, Parker has reduced energy intensity (MWh/USD) by
42% and greenhouse gas intensity (MT/USD) by 50%. In 2020, Parker’s
climate disclosure score was ranked in the top quartile among
diversified industrial peer companies.
- Today, Parker recycles more than 85% of waste generated by
manufacturing operations and continues to reduce the volume of
waste sent to landfills.
- The Parker-Hannifin Foundation has donated $64 million since
2010, including $6 million in 2020.
Additional information is available in Parker’s
latest 2020 Sustainability Report. Learn more
at www.parker.com/sustainability.
About Parker HannifinParker
Hannifin is a Fortune 250 global leader in motion and control
technologies. For more than a century the company has been enabling
engineering breakthroughs that lead to a better tomorrow. Learn
more at www.parker.com or @parkerhannifin.
Forward-Looking
Statements Forward-looking statements contained in this
and other written and oral reports are made based on known events
and circumstances at the time of release, and as such, are subject
in the future to unforeseen uncertainties and risks. These
statements may be identified from the use of forward-looking
terminology such as “anticipates,” “believes,” “may,” “should,”
“could,” “potential,” “continues,” “plans,” “forecasts,”
“estimates,” “projects,” “predicts,” “would,” “intends,” “expects,”
“targets,” “is likely,” “will,” or the negative of these terms and
similar expressions, and include all statements regarding future
performance, earnings projections, events or developments. Parker
cautions readers not to place undue reliance on these statements.
It is possible that the future performance and earnings projections
of the company, including its individual segments, may differ
materially from current expectations, depending on economic
conditions within its mobile, industrial and aerospace markets, and
the company's ability to maintain and achieve anticipated benefits
associated with announced realignment activities, strategic
initiatives to improve operating margins, actions taken to combat
the effects of the current economic environment, and growth,
innovation and global diversification initiatives. Additionally,
the actual impact of changes in tax laws in the United States and
foreign jurisdictions and any judicial or regulatory interpretation
thereof on future performance and earnings projections may impact
the company’s tax calculations. A change in the economic conditions
in individual markets may have a particularly volatile effect on
segment performance.
Among other factors which may affect future
performance are: the impact of the global outbreak of COVID-19 and
governmental and other actions taken in response; changes in
business relationships with and purchases by or from major
customers, suppliers or distributors, including delays or
cancellations in shipments; disputes regarding contract terms or
significant changes in financial condition, changes in contract
cost and revenue estimates for new development programs and changes
in product mix; ability to identify acceptable strategic
acquisition targets; uncertainties surrounding timing, successful
completion or integration of acquisitions and similar transactions,
including the integration of LORD Corporation or Exotic Metals; the
ability to successfully divest businesses planned for divestiture
and realize the anticipated benefits of such divestitures; the
determination to undertake business realignment activities and the
expected costs thereof and, if undertaken, the ability to complete
such activities and realize the anticipated cost savings from such
activities; ability to implement successfully capital allocation
initiatives, including timing, price and execution of share
repurchases; availability, limitations or cost increases of raw
materials, component products and/or commodities that cannot be
recovered in product pricing; ability to manage costs related to
insurance and employee retirement and health care benefits;
compliance costs associated with environmental laws and
regulations; potential labor disruptions; threats associated with
and efforts to combat terrorism and cyber-security risks;
uncertainties surrounding the ultimate resolution of outstanding
legal proceedings, including the outcome of any appeals; global
competitive market conditions, including global reactions to U.S.
trade policies, and resulting effects on sales and pricing; and
global economic factors, including manufacturing activity, air
travel trends, currency exchange rates, difficulties entering new
markets and general economic conditions such as inflation,
deflation, interest rates and credit availability. The company
makes these statements as of the date of this disclosure and
undertakes no obligation to update them unless otherwise required
by law.
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Media –
Aidan Gormley, Director, Global Communications and Branding
216/896-3258
aidan.gormley@parker.com
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