Parker Commits to Achieving Carbon Neutral Operations by 2040, Advances Technologies that Enable a Sustainable Future

Rhea-AI Summary

Parker Hannifin Corporation (NYSE:PH) has released its 2020 Sustainability Report, announcing a new commitment to achieve carbon neutral operations by 2040. Key emissions targets include a 50% reduction in Scope I and II emissions by 2030 and a 15% reduction in Scope III emissions by the same year. The report highlights Parker's advanced technologies aimed at promoting cleaner energy adoption. Key achievements include a 72% decrease in recordable incidents since 2015 and a 42% decrease in energy intensity since 2010.

Positive

• Commitment to achieve carbon neutral operations by 2040.
• 50% reduction target for Scope I and II emissions by 2030.
• 15% reduction target for Scope III emissions by 2030.
• 72% decrease in recordable incidents from 2015 to 2020.
• 42% reduction in energy intensity since 2010.

Negative

• None.

CLEVELAND, July 27, 2021 (GLOBE NEWSWIRE) -- 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 Hannifin
Parker 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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FAQ

What are the carbon neutrality goals for Parker Hannifin Corporation (PH)?

Parker Hannifin aims to achieve carbon neutral operations by 2040, with specific targets to reduce Scope I and II emissions by 50% by 2030 and Scope III emissions by 15% by the same year.

What significant achievements were highlighted in Parker Hannifin's 2020 Sustainability Report?

The report noted a 72% decrease in recordable incidents from 2015 to 2020 and a 42% reduction in energy intensity since 2010.

How does Parker Hannifin plan to reduce emissions in their operations?

The company plans to reduce emissions through energy consumption reduction, investments in renewable energy, and collaboration with suppliers to decrease energy use and emissions.

When was Parker Hannifin's 2020 Sustainability Report released?

The report was released on July 27, 2021.

What is the significance of Parker Hannifin's Sustainability Report for investors?

The Sustainability Report reflects Parker Hannifin's commitment to reducing emissions and improving safety, which may enhance the company’s reputation and operational efficiency, potentially benefiting investors.