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Executive Message

ITW’s longstanding commitment to sustainability is rooted in our core values and fundamental to who we are as a company. Supported by strong governance practices, we are inspired to make a difference for our people, our communities and the environment.

Guided by our decentralized, entrepreneurial culture, our sustainability strategy is operationalized at the division level – each of our 83 divisions executes the programs and initiatives that provide meaningful impact for their business, all in support of our goal to be one of the world’s best performing, highest quality and most-respected industrial companies.

In 2021, we continued to make steady and consistent progress on our diversity and inclusion goals as we work to diversify our workforce and build a more inclusive workplace. We also expanded our inclusive-leader training initiative to all managers and supervisors across our global businesses. Over the past year, nearly 4,300 global managers and supervisors participated in the training.

We also continued to execute our “Do More” Agenda – a priority for ITW that reaffirms our commitment to promote and support more inclusive economic growth and opportunity in underserved communities. This agenda includes specific areas of focus that are impactful and closely aligned with our capabilities, skill sets and business needs as a company. For example, in partnership with technical colleges serving disadvantaged communities, we have initiated two important programs in our Food Equipment and Automotive segments to hire and develop skilled technicians. This provides well-paid and sustainable job opportunities while also filling a critical talent need for our businesses.

In addition, we made progress toward our goal to increase U.S. third-party spend on products and services from diverse suppliers, which includes racially/ethnically diverse, woman-owned, veteran-owned and LGBTQ+-owned companies. Our focus on supplier diversity, as well as other strategic sourcing practices, supports the resiliency and continuity of our supply chain. With strong supplier relationships and considerable effort from our ITW team, I am proud of our ability to overcome significant supply chain issues and sustain best-in-class customer service levels throughout the year.

With respect to the environment, we continued to execute our greenhouse gas (GHG) emissions intensity reduction strategy, resulting in a 37 percent reduction through 2021 (compared with the 2017 baseline). Based on this progress toward our 40 percent intensity reduction target by 2030, we are carefully considering our next GHG emissions target, which includes actively studying the feasibility of a potential path to carbon neutrality. These learnings will inform our strategy and we look forward to sharing more as we have meaningful updates.

ITW is committed to expanding our portfolio of clean-tech products, which represented approximately 29 percent of our overall revenue in 2021. Over the past four years, we have increased our clean-tech revenue by 7 percentage points. Products in this portfolio support our customers in addressing climate change-related challenges and opportunities, such as the growing electric vehicle market. We are proud to partner with our customers through these responsible innovations.

In closing, thank you for your continued interest in ITW, and thank you to ITW’s dedicated colleagues around the world who support our sustainability journey.


Chris O’Herlihy signature

Christopher A. O’Herlihy
Vice Chairman

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