Newsweek Green Rankings 2012: Industrial Goods

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Throughout this varied industry, companies are working to reduce energy use and greenhouse-gas emissions by redesigning production processes, increasing employee involvement, and using cleaner fuel sources such as renewable energy. Leading companies are integrating sustainable practices starting with their early design decisions, resulting in product innovations that are more environmentally friendly. Examples include onsite clean-power generation products and increased product recyclability to reduce end-of-life waste. Additionally, a growing number of components produced in this industry are being incorporated into green building projects. Water consumption is a critical issue for manufacturing and construction companies, yet few in this industry disclose strong water management programs with reduction targets. End-of-life recycling programs are also lacking.

Key Industry Impacts

• Greenhouse-gas emissions and general waste generation and disposal together account for more than 80 percent of the total environmental footprint for Industrial Goods companies.

• The sector accounts for 4 percent of all greenhouse-gas emissions, and 4 percent of the total waste of all the companies in the Green Rankings.

• About 4 percent of the total environmental impact of companies ranked comes from this industry.

Critical Issue Profile: Managing Waste

Many of the companies in this industry are involved in intensive manufacturing processes that use chemical coatings, heavy metals, volatile organic compounds, phthalates, flame retardants, lead, and mercury. These releases—whether to air, water, or land—threaten the vitality of the natural environment. As such, they are increasingly subject to stringent regional and national regulations. Companies aiming to perform beyond a compliance-based approach should have board-level environmental committees in place, tasked with overseeing environmental performance. Leading companies will disclose an ISO 14001 certified environmental-management system along with companywide targets to reduce waste and discharges. Material substitution and recycling, along with end-of-life product programs are also part of a best-practice approach.

Industry Ranking: How U.S. Industrial Goods Companies Stack Up

Industry Rank	Company	Overall Rank	Industry Sector	Impact	Management	Disclosure	Green Score	2011 Green Score
1	Cummins	64	Industrial Goods	54.2	77.5	63.7	65.6	55.3
2	General Electric	83	Industrial Goods	59.8	63.4	79.3	63.4	63.3
3	Fluor	100	Industrial Goods	75.4	49.7	55.6	61.8	56.3
4	KBR	101	Industrial Goods	75.3	61.2	4.2	61.8	61.1
5	Ingersoll-Rand	107	Industrial Goods	51.4	68.0	76.0	61.3	58.8
6	Pall	108	Industrial Goods	60.1	61.5	65.1	61.2	63.1
7	3M	112	Industrial Goods	50.4	69.5	71.4	61.1	61.3
8	AECOM Technology	115	Industrial Goods	75.8	57.1	12.5	61.0	55.8
9	Owens Corning	130	Industrial Goods	39.2	71.3	98.8	59.6	56.3
10	Tyco International	132	Industrial Goods	65.1	56.2	48.7	59.5	58.8
11	Masco	133	Industrial Goods	52.4	64.0	70.2	59.4	51.9
12	Jacobs Engineering Group	153	Industrial Goods	75.3	49.3	20.8	58.1	60.5
13	Dover	163	Industrial Goods	55.4	62.0	46.6	57.4	55.2
14	URS	171	Industrial Goods	75.3	51.9	0.0	57.2	54.4
15	W.W. Grainger	184	Industrial Goods	71.0	51.1	16.7	56.6	56.3
16	Eaton	195	Industrial Goods	49.4	61.4	61.2	56.0	55.4
17	Fastenal	218	Industrial Goods	71.0	50.3	0.0	54.6	52.8
18	Shaw Group	230	Industrial Goods	65.3	54.3	0.0	53.8	52.0
19	Rockwell Automation	238	Industrial Goods	60.1	45.7	58.4	53.4	51.6
20	Stanley Black & Decker	244	Industrial Goods	53.5	56.2	38.9	53.2	49.9
21	Parker-Hannifin	251	Industrial Goods	52.8	49.8	69.0	53.1	48.1
22	Caterpillar	252	Industrial Goods	54.0	54.9	40.3	53.0	56.8
23	Avery Dennison	261	Industrial Goods	45.1	55.8	70.2	52.4	51.6
24	Deere	265	Industrial Goods	53.6	47.7	66.4	52.2	54.1
25	Pentair	276	Industrial Goods	53.7	61.1	0.0	51.7	N/A
26	PACCAR	278	Industrial Goods	53.8	60.8	0.0	51.5	52.0
27	Illinois Tool Works	282	Industrial Goods	51.9	51.5	49.3	51.5	51.4
28	Cooper Industries	284	Industrial Goods	61.0	51.4	8.3	51.4	50.7
29	EMCOR Group	305	Industrial Goods	71.4	40.2	0.0	50.2	50.1
30	Emerson Electric	343	Industrial Goods	57.1	42.9	33.3	48.3	46.6
31	Flowserve	346	Industrial Goods	55.1	43.6	38.0	48.2	40.6
32	Waste Management	371	Industrial Goods	36.2	53.5	67.0	47.1	42.3
33	AGCO	403	Industrial Goods	53.1	47.0	0.0	45.0	46.5
34	Danaher	408	Industrial Goods	61.5	37.1	4.2	44.8	44.9
35	Roper Industries	411	Industrial Goods	63.6	35.7	0.0	44.7	44.6
36	SPX	419	Industrial Goods	53.4	44.5	0.0	44.1	45.7
37	Terex	430	Industrial Goods	52.4	39.2	16.1	42.8	41.4
38	Oshkosh	431	Industrial Goods	52.3	42.8	0.0	42.8	41.0
39	Joy Global	443	Industrial Goods	51.3	40.0	0.0	41.1	39.6
40	Timken	447	Industrial Goods	35.4	53.3	6.3	40.5	40.8
41	Republic Services	462	Industrial Goods	45.3	40.4	4.2	39.0	36.7
42	Ametek	464	Industrial Goods	55.4	30.9	0.0	38.8	38.8
43	Stericycle	473	Industrial Goods	45.3	37.5	0.0	37.2	N/A

Green Rankings 2012: Industrial Goods

This sector includes industrial conglomerates, trading companies, and distributors; construction and engineering companies; and producers of building products, electrical equipment, and machinery.

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