Sectoranalysis of reporting industrial and farm equipment sectors

Source: Roberts Environmental Center, 7 March 2007

Of the largest 30 companies in the Fortune Global 500 and Fortune 1000 industrial and and farm equipment sectors whose environmental and sustainability reporting was analyzed by the Roberts Environmental Center in 2006, Mitsubishi Heavy Industries (Japan) achieved the highest ranking in environmental and sustainability reporting based on the Center’s Pacific Sustainability Index. ABB (Switzerland) and Komatsu Ltd. (Japan) were close behind with American Standard (US) and Cummins Engine (US) rounding out the companies with grades of B or higher. Nine companies received grades of C, and over half had Ds and Fs, more than in any other sector we have analyzed recently.

All materials were scored using the Center’s Pacific Sustainability Index which also provides scores for six subcategories of reporting, and several companies with less than B for the overall PSI score achieved Bs or higher grades in one or more of the subcategories. For environmental intent, Tecumseh Products Company (US) got an A-, and Kennametal (US), Snap On (US), ITT Industries (US), and Timken (US) all moved into B territory. On the social side, ITT Industries, Deere & Company (US), Caterpillar (US), and Harsco Corp. (US) all achieved Bs in at least one of the subcatagories.

In this sector the most reported environmental variables were waste recycled, energy used, protection and enhancement of the natural environment, and water used. The most reported social information was employee health and safety, anti corruption practices, equal opportunity, and customer health and safety..

These findings are based on the information available on the web sites of the largest 30 companies in the industrial and farm equipment sectors of the 2005 Fortune Global 500 list as of September, 2006. All firms were invited to review and comment on the analysis prior to publication, and seven of them brought to our attention relevant information. Of particular note is that Eaton (US), Illinois Tool Works (US) and Tecumseh Products Company (US), which got an A- in environmental intent, initiated reporting following receipt of our draft.

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