ITW’s commitment to sustainability is deeply rooted in our Core Values and has been a long-standing priority. Our strong governance practices actively guide our sustainability approach, providing the foundation for how we deliver meaningful impact for the environment, our people and our communities.
Aligned with the Next Phase of our Enterprise Strategy, our sustainability strategy is based on a holistic approach that fits our company and is consistent with our goal of being one of the world’s best performing, highest-quality and most respected industrial companies in the eyes of all key stakeholders.
Our sustainability strategy rests on four pillars: Governance & Ethics, Environment, People and Communities. Our decentralized, entrepreneurial culture is the key to how we operationalize this strategy. Through the ITW Business Model, we empower our divisions with clear frameworks and ownership. Our priorities are always data-driven, realistic and aligned with ITW’s “Do What We Say” commitment.
Integrity and the highest ethical standards guide every ITW employee’s actions with colleagues, customers, suppliers and stakeholders globally. We are uncompromising when it comes to ethics: no exceptions, no shortcuts. We recognize that our reputation and credibility are among our most important assets, and we hold ourselves accountable for ensuring that no behavior jeopardizes them.
Consistent with our “never satisfied” mindset, we are driving continuous improvement in our environmental impact. In 2022, we set an ambitious target: a 50% absolute reduction in Scope 1 and Scope 2 (market-based) greenhouse gas (GHG) emissions by 2030, using 2021 as our baseline. Through highly effective division-led initiatives, we have made considerable progress, with a 40% reduction in GHG emissions through 2024. We are very confident in meeting our 2030 goal.
Through our Customer-Back Innovation process, we develop sustainable solutions that address critical customer challenges. We see sustainability as a key growth driver, and we are proud to report that our “clean technology” portfolio now accounts for nearly 32% of ITW’s revenue, a significant increase from 22% in 2017.
ITW’s differentiated long-term performance hinges on attracting, developing and retaining exceptional ITW leaders and talent. We believe that ITW is at its best when we bring together unique perspectives, experiences and ideas. And our people agree: in a recent survey, 84% recommended ITW as a great place to work.
Given our leadership-centric business model, strategy and culture, diversity and inclusion at ITW remain anchored in a very compelling business case. We believe that only by having an inclusive culture and creating an environment where diverse opinions and perspectives are actively sought and freely shared can we be the best ITW that we can be. To realize our full potential, we will continue to access all talent pools, ensuring we hire and retain the best available talent.
ITW is deeply committed to the communities where our colleagues live and work. Our decentralized, entrepreneurial culture empowers employees to drive local impact, while contributing to our global community commitment. Beyond amplifying our employees’ charitable giving, ITW strategically invests in education, workforce development and arts and culture through long-standing community partnerships.
In closing, we express our sincere gratitude to our nearly 44,000 ITW colleagues worldwide, whose ideas, actions and commitment drive our sustainability efforts. And we thank you, our valued stakeholders, for your unwavering support of our sustainability journey.
Michael M. Larsen
Senior Vice President and Chief Financial Officer
March 2025
