As we enter the next phase of Illinois Tool Works’ Enterprise Strategy (2024-2030), we are proud to share the latest sustainability report, underscoring ITW’s commitment to lead as one of the world’s premier industrial companies and do so with a clear focus on environmental and social responsibility.
Our Sustainability Strategy
Consistent with ITW’s Core Values and decentralized, entrepreneurial culture, our sustainability strategy represents ITW’s overall commitment which is then operationalized and realized at the division level. Our strategy is built around four key elements: Our Governance & Ethics, Our Environment, Our People and Our Communities.
Our strategic priorities are based on the following:
- A strategy that fits our business and is consistent with a best performing, highest quality and most respected industrial company in the eyes of all key stakeholders
- An approach that is balanced, data-driven, realistic and aligned with ITW’s reputation as a “Do What We Say” company
- Initiatives that are operationalized in our divisions through a clear framework
Advancing Environmental Goals
In 2022, guided by our Board of Directors and fueled by feedback from our investors, we raised our ambitions for reducing greenhouse gas (GHG) emissions. We committed to a 50% absolute reduction in Scope 1 and Scope 2 emissions by 2030, compared to our 2021 levels. This target is not just ambitious but grounded in a feasible plan that includes reducing energy consumption, increasing our use of renewable energy, exploring solar projects, and electrifying our fleet. The progress we made in 2023, achieving an approximate 30% reduction in GHG emissions from our 2021 baseline, puts us firmly on track to meet our 2030 goal.
Fostering Growth Through Innovation
At the heart of ITW’s strategy is our Customer-Back Innovation process, which directs our efforts to develop clean-tech products that address critical global challenges such as climate change. This commitment to innovation has not only enhanced our product offerings but has also driven our revenue, with clean-tech products now representing approximately 31% of ITW’s total revenue, a significant increase from 22% in 2017.
Building a Responsible and Inclusive Workforce
Our efforts extend to ensuring a diverse and inclusive workplace where all employees can thrive. The Inclusive Leader Initiative and our Employee Resource Groups are part of our strategy to cultivate a welcoming, supportive environment. These efforts are bearing fruit, as shown by the enhanced diversity among our top 1,000 leaders in 2023.
Philanthropy & Community Involvement
ITW has a long-standing legacy of investing in the communities where we do business and where our colleagues live and work. Our decentralized, entrepreneurial culture empowers our people to get involved and make a difference locally, while being connected to an enterprise committed to making a global impact.
Our “Do More” agenda sees us investing in education, workforce readiness, and inclusive economic growth, particularly in underserved communities. A standout initiative is our investment in Chicago’s United Way Commit to a Neighborhood program, which aims to rejuvenate an under-invested neighborhood by introducing well-paying manufacturing jobs and career opportunities.
For a detailed view of our commitments and progress, you can read the full sustainability report here.
