Economic Value

GRI Content Index

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is one of the world's most widely used reporting frameworks for performance on human rights, labor, environment, anti-corruption, and corporate citizenship. GRI Guidelines apply to corporations, public agencies, smaller enterprises, non-government organizations (NGOs), industry groups and others.

Eaton is committed to the GRI Framework for reporting the company's sustainability performance. Sustainability reports based on this framework can be used to demonstrate organizational commitment to sustainable development, to compare performance over time, and to measure performance with respect to laws, norms, standards and voluntary initiatives.

Our 2016 report is in accordance with GRI's G4 Core reporting guidelines. Below you'll find the G4 Standard Disclosures Index for our sustainability performance.

General Standard Disclosures

GRI Disclosure Description Location/ Response
G4-1 CEO letter 

The main strategic statement from the CEO is provided in the 2016 Annual Report (pp. 3-4) and a sustainability-specific statement is located on our website ("From the Chairman"). Information specific to climate strategy, risks, and opportunities can be found in our Carbon Disclosure Project response (2017 CDP (CC2.1b-CC6.1c)). More statements from the CEO concerning our commitment to Doing Business Right can be found in our Ethics Guide. For key events and achievements in 2016, see 2016-17 News Releases (you may filter news by year or subject of interest).

G4-2 Key impacts, risks, and opportunities

The main strategic statement from the CEO is provided in the 2016 Annual Report (pp. 3-4) and a sustainability-specific statement is located on our website ("From the Chairman"). More information on the organization's key impacts on sustainability and stakeholders may be found in our Climate Change CommitmentMateriality Analysis2016 Annual Report (Part I and Part II of Form 10-K, pp. 2-7), and Carbon Disclosure Project response (2017 CDP (CC2.1b-CC6.1c)). Information on how we engage with key stakeholders can be found on our Stakeholder Engagement  page and our Corporate Social Responsibility commitment.

The impact of sustainability trends, risks, and opportunities are described in our Carbon Disclosure Project response (2017 CDP (CC2.1b-CC6.1c)). More information on impacts to the company can be found in our Climate Change Commitment and Materiality Analysis.

G4-3 Name of the organization Eaton Corporation plc
Fast Facts
G4-4 Primary brands, products, and services Fast Facts
Products and Solutions
G4-5 Location of the organization's headquarters Corporate Headquarters
Eaton Corporation plc
Eaton House, 30 Pembroke Road
Dublin 4, Ireland

Eaton Center (regional headquarters for North America)
1000 Eaton Boulevard
Cleveland, Ohio 44122
G4-6 Countries of operation  2016 Annual Report (Form 10-K, Note 1 p. 21 and Note 15 p. 57)
G4-7 Nature of ownership and legal form  2016 Annual Report
Fast Facts
G4-8 Markets served  Markets
G4-9  Scale of organization Fast Facts
Employees: Eaton Global Employment data

Net Sales and countries of operation: 2016 Annual Report (Form 10-K, Consolidated Statements of Income p. 16 and Note 1 p. 20)

Products and Solutions

G4-10  Employment breakdown Eaton Global Employment data
G4-11  Collective bargaining agreements  Corporate Social Responsibility commitment
G4-12  Supply chain  Supply Chain
Eaton Suppliers
G4-13  Significant changes in operation  Find a description of recent acquisitions and divestitures in our 2016 Annual Report (Form 10-K, Note 2 p. 25)
Supply Chain
G4-14  Precautionary approach  Eaton treats the environment as a key stakeholder and strives to prevent environmental degradation through a variety of measures. For examples, see:
Climate Change Commitment
Carbon Disclosure Project response
Environment
Sustainable Solutions
G4-15 External charters, principles, initiatives  Ethics Guide (p. 23)
Eaton's Environment, Health and Safety Management system (MESH) combines regulatory compliance, ISO 14001, OHSAS 18001, and internal Eaton directives and programs into a single, unified system
G4-16  Memberships and affiliations  World Business Council for Sustainable Development
Carbon Disclosure Project response (2017 CDP (CC 2.3a-i))
G4-17  List of entities in scope  A list of all Eaton subsidiaries is included in Eaton's 2016 Annual Report (Form 10-K). For a description of sites included in environmental metrics, see our Environment page and Carbon Disclosure Project response (2017 CDP (CC8.4a, 14.1)).
G4-18  Process for defining report content Materiality
G4-19  List of material aspects Materiality
G4-20 Aspect boundaries within the organization Materiality
G4-21 Aspect boundaries outside the organization Materiality
G4-22  Restatements of information Metrics are recalculated annually to reflect changing baselines due to acquisitions and divestitures. Only data from current Eaton sites is included in metrics.
G4-23 Significant scope changes Find a description of recent acquisitions and divestitures in our 2016 Annual Report (Form 10-K, Note 2 p.25).
G4-24 Stakeholder groups engaged by the organization Stakeholder Engagement
G4-25 Identification and selection of stakeholders Stakeholder Engagement
G4-26 Approach to stakeholder engagement Stakeholder Engagement
G4-27 Key topics and concerns raised through stakeholder engagement Stakeholder Engagement
Customer Success Stories
G4-28  Reporting period CY 2016
G4-29 Date of previous report  March 2016
G4-30 Reporting cycle Annual
G4-31 Contact point  Find contact information at Fast Facts or email Sustainability@eaton.com
G4-32 ‘In accordance’ option  G4 Core
G4-33 External assurance  Verification
G4-34 Governance structure  Governance

Corporate Governance
2017 Proxy Statement (DEF 14A) ("Board Committees," pp. 13-14, with specific reference to the responsibilities of the Governance Committee on p. 14 with respect to environmental and social impacts, and the Finance Committee on p. 14 with respect to economic matters – specifically to “financial risk management.”)

G4-35 Process for delegating authority for ESG topics  Governance
G4-36 Executive-level positions for ESG topics 

Governance
See our Leadership Team and Corporate Officers for leadership information, including the Chief Financial Officer, Treasurer, Senior Vice President – Environment, Health and Safety, Senior Vice President – Public and Community Affairs.

G4-37 Mechanisms for stakeholders to provide recommendations to the Board 

Governance
Corporate Governance (Communicating with the Board)
2017 Proxy Statement  (DEF 14A) (“Communicating with the Board,” p. 16)

G4-38 Board composition 

Corporate Governance (Board of Directors Governance Policies)

Meet our Board of Directors

2017 Proxy Statement (DEF 14A) (pp. 1-12)
G4-39  Is Board chair also an executive officer 

Our CEO is also Chairman of the Board

Corporate Governance (Leadership Structure)
G4-40 Nomination and selection processes for the Board  Corporate Governance (Director Nomination Process)
G4-41 Processes to avoid and manage conflicts  Corporate Governance (Director Nomination Process and Board of Directors Independence Criteria)
G4-42 Board roles in developing, approving and updating strategies 2017 Proxy Statement (DEF 14A) ("Board Committees," pp. 13-14, with specific reference to the responsibilities of the Governance Committee on p. 14 with respect to environmental and social impacts, and the Finance Committee on p. 14 with respect to economic matters – specifically to “financial risk management.”)
G4-43 Developing board knowledge of ESG topics

Governance

Corporate Governance (Board of Directors Governance Policies, "Continuing Education for Directors")
G4-44 Process for evaluating Board performance  Corporate Governance (Board of Directors Governance Policies, "Performance Assessment")
G4-45 Board’s role in identification and management of ESG impacts, risks and opportunities 

Corporate Governance (Governance Committee Charter)
2017 Proxy Statement (DEF 14A) ("Oversight of Risk Management," p. 16)
Risk Management

G4-46 Board’s role in reviewing risk management processes for ESG topics  2017 Proxy Statement (DEF 14A) ("Oversight of Risk Management," p. 16)
Risk Management
G4-47 Frequency of Board review of ESG impacts 

2017 Proxy Statement (DEF 14A) ("Board Committees," pp. 13-14 with specific reference to the responsibilities of the Governance Committee on p. 14 with respect to environmental and social impacts, and "Board Meetings and Attendance," p. 15)
Risk Management

G4-48 Highest committee or position that reviews and approves the sustainability report  Chief Executive Officer and President, and Chairman of the Board
G4-49 Process for communicating critical concerns to Board 

Corporate Governance (Governance Committee Charter)

2017 Proxy Statement (DEF 14A) (“Communicating with the Board," p. 16)
G4-51 Board and executive remuneration policies 

Corporate Governance (Governance Committee Charter)

2017 Proxy Statement (DEF 14A) (“Executive Compensation," pp. 27-65)
G4-52 Process for determining remuneration 2017 Proxy Statement (DEF 14A) (“Executive Compensation," pp. 27-65)
G4-53 Stakeholders’ views regarding remuneration  2017 Proxy Statement (DEF 14A) (“Executive Compensation," pp. 27-65)
G4-56 Values, principles, standards Ethics and compliance
Ethics Guide Global Ethics & Compliance
G4-57 Mechanisms for seeking advice on ethical behavior Global Ethics Help Line
Ethics Guide
Ethics and compliance
G4-58 Mechanisms for reporting concerns about ethical behavior

Global Ethics Help Line
Office of Ombuds
Ethics Guide
Ethics and compliance

Specific Standard Disclosures

GRI Aspect Material Topic GRI Disclosure Description Location/Response
Economic performance Economic value G4-DMA Management approach Economic Value

2016 Annual Report (Financial Highlights, p. 2 for a financial summary, Form 10-K for detail)

Economic performance Economic value G4-EC1 Direct economic value 

2016 Annual Report (Financial Highlights, p. 2 for a financial summary, Form 10-K for detail)
Community and Charitable Contributions

Economic performance Economic value G4-EC3 Benefit plans 

2016 Annual Report (Form 10-K, Note 7 pp. 30-38)

Economic performance R&D and innovation G4-DMA Management approach R&D and innovation

We Make What Matters Work

Economic performance R&D and innovation -- Annual spend on R&D 2016 Annual Report (Form 10-K, p. 3, 16)
Economic performance R&D and innovation -- Number of engineers R&D and innovation
Economic performance R&D and innovation -- Number of patents R&D and innovation
Economic performance Safe, efficient, reliable and sustainable products G4-DMA Management approach Products
Economic performance Safe, efficient, reliable and sustainable products G4-EN7 Reduction of energy requirements of products and services

Products
Carbon Disclosure Project response (2017 CDP (CC3.2a, 3.3a, 3.3b))
We Make What Matters Work

Economic performance Operational excellence G4-DMA Management approach Operational Excellence
Economic performance Operational excellence -- World-class benchmarks Operational Excellence
Anti-corruption Ethics and compliance G4-DMA Management approach Ethics & Compliance
Ethics Guide
Global Ethics and Compliance
Anti-corruption Ethics and compliance G4-SO4 Communication and training on anti-corruption policies
and procedures.
Ethics & Compliance
Ethics Guide
Global Ethics and Compliance
- Risk management G4-DMA Management approach Risk management
Supply Chain
Economic performance Risk management G4-EC2 Financial implications and other risks and opportunities for activities due to climate change  Carbon Disclosure Project response (2017 CDP (CC2.1, 5.1 – 6.1))
Supplier environmental assessment Risk management G4-EN32  New suppliers screened using environmental criteria Supply Chain
Supplier assessment for labor practices Risk management G4-LA14  New suppliers screened using labor practices criteria Supply Chain
Supplier human rights assessment Risk management G4-HR10  New suppliers screened using human rights criteria Supply Chain
Public policy Disclosure G4-DMA Management approach Disclosure
Public policy Disclosure G4-SO6  Political contributions Political Accountability
Energy
Emissions
GHG and emissions reduction G4-DMA Management approach GHG & emissions reduction

Carbon Disclosure Project response
Climate Change Commitment

Energy
GHG and emissions reduction G4-EN3  Energy consumption within the organization

Environment
Carbon Disclosure Project response (2017 CDP (CC10.1a – 11.4))
GHG & emissions reduction

Energy
GHG and emissions reduction G4-EN5 Energy intensity

Environment
Carbon Disclosure Project response (2017 CDP (CC12.2 – 12.4))
GHG & emissions reduction

Energy
GHG and emissions reduction G4-EN6  Reduction of energy consumption 

Carbon Disclosure Project response (2017 CDP (CC3.2, 3.2a, 3.3c))
GHG & emissions reduction

Emissions
GHG and emissions reduction G4-EN15
Direct greenhouse gas emissions (Scope 1) 

Environment
Carbon Disclosure Project response (2017 CDP (CC8.2, 9.1a, 9.2a))
GHG & emissions reduction

Emissions
GHG and emissions reduction G4-EN16  Energy indirect greenhouse gas emissions (Scope 2) 

Environment
Carbon Disclosure Project response (2017 CDP (CC8.3, 10.1a, 10.2a))
GHG & emissions reduction

Emissions
GHG and emissions reduction G4-EN17 Other indirect greenhouse gas emissions (Scope 3)  Carbon Disclosure Project response (2017 CDP (CC14.1))
Emissions
GHG and emissions reduction G4-EN18 GHG intensity 

Environment
Carbon Disclosure Project response (2017 CDP (CC12.2 – 12.4))
GHG & emissions reduction

Emissions
GHG and emissions reduction G4-EN19  Initiatives to reduce GHG emissions and reductions achieved 

GHG & emissions reduction
Carbon Disclosure Project response (2017 CDP (CC3.3a-b))

Water Responsible water use G4-DMA Management approach Water use
Water Responsible water use G4-EN8  Total water withdrawal by source

Environment
Water use

Effluents and waste Waste reduction G4-DMA Management approach Waste reduction
Effluents and waste Waste reduction G4-EN23
Waste by type and disposal method 

Environment
Waste reduction


Effluents and waste Spills and releases G4-DMA Management approach Spills and releases
Effluents and waste Spills and releases - Environmental contingencies  2016 Annual Report (Form 10-K, “Environmental Contingencies," p.39)
Occupational health and safety Health and Safety G4-DMA Management approach Health & safety
Occupational health and safety Health and Safety G4-LA6  Rates of injury, occupational injuries, lost days, fatalities

Workforce

Health & safety
Diversity and equal opportunity Inclusion and diversity G4-DMA Management approach Inclusion & Diversity
I&D
Diversity and equal opportunity Inclusion and diversity G4-LA12  Composition of governance bodies and breakdown of employees per category

Inclusion & Diversity
Workforce
Meet our Board of Directors

Diversity and equal opportunity Inclusion and diversity - Members of I&D Eaton Resource Groups Inclusion & Diversity
Training and education Talent management G4-DMA Management approach Talent Management
Careers
Training and education Talent management G4-LA10  Lifelong learning programs
Talent Management
Training and education Talent management G4-LA11  Percent of employees receiving regular performance reviews 100%
Talent Management
Training and education Talent management - Eaton University classes completed Talent Management
Training and education Talent management - Employee engagement Talent Management
Local communities Community involvement G4-DMA Management approach Community Involvement
Local communities Community involvement G4-EC1  Direct economic value

Community