John Deere is committed to the success of our customers whose work is linked to the land. We therefore take our responsibility to safeguarding the environment seriously. We offer products that are efficient and effective and minimize environmental impact. We also design, build, and support those products in offices, factories, and dealerships that are built and maintained with the environment in mind. We're constantly on the lookout for opportunities to reduce our energy and water consumption plus our waste, and to improve our air- and water-quality systems.
We're committed to reducing our environmental footprint worldwide and have developed a set of eco-efficiency goals to do so. Our approach is simple: involve every area of the company in the effort to reduce the amount of energy and water we use, increase the amount of waste we recycle, and use life-cycle analysis in the product-development engineering phase to reduce the overall impact of our products and services on the environment while still meeting our customers' needs.
Reduce greenhouse gas emissions and energy consumption per ton of production 15% from 2012 through 2018
From our manufacturing and materials engineering to our data centers and paint operations, we will aggressively seek ways to reduce our energy use and greenhouse gas emissions.
Reduce water consumption per ton of production 15% from 2012 through 2018
We know how precious fresh water is, especially to our customers, and is why we're committed to reducing our overall water use, especially in geographical areas where water is scarce.
Recycling at least 75% of total waste by 2018
We are improving our recycling efforts by analyzing every waste stream in our manufacturing facilities — from aerosol cans and construction waste, to paint process waste and wood pallets — for ways to increase our total recycling.
We know that responsible resource management is vital not just to our company, employees, and customers, but also to our world. Every one of our operating processes reflects this strong commitment to environmental protection. We're constantly on the lookout for energy-efficient systems, as well as systems that sustain air and water quality or reduce or eliminate waste. And when investing in new products, approaches, or technologies, we give preference to those that have the least environmental impact.
Use life-cycle analysis in the product-development engineering phase
Life-cycle analysis and design-for-environment principles helps us develop, produce, and deliver solutions that meet customer needs while reducing environmental impact.
Minimizing Environmental Impact
We strive to reduce the environmental impact of our operations and products. Each manufacturing location incorporates environmental impacts and risks into management decisions and has an active environmental management system in place.
Reduction of Environmental Impact and Risk
Each manufacturing facility reviews environmental risks and associated impacts annually. We set goals to reduce our environmental impact annually based on the reviewed risks.
Energy and Greenhouse Gases
We are focused on energy efficiency and greenhouse gas (GHG) emission reduction. This is nothing new at John Deere: We have documentation of facility energy-efficiency awareness programs extending back to 1932. Our environmental programs make good business sense.
In 1972, we initiated our formal energy-efficiency program. Then in 2003, we added a worldwide GHG inventory program.
The results: between 1972 and 2006, our energy conservation programs reduced our total worldwide GHG emissions by 63% per ton of production. To further reduce GHG emissions from our operations and identify cost-effective energy-saving opportunities, we joined the U.S. Environmental Protection Agency's Climate Leaders program in 2007. Under this program, we established a goal to reduce the company's global GHG emissions by 25% per dollar of adjusted revenue from 2005 through 2014.
With the introduction of our enterprise eco-efficiency goals in 2013 and the ending of the Climate Leaders program, we retired this goal two years early, having achieved a 17% reduction in GHG emissions per dollar of adjusted revenue. More than 40% of our facilities met or exceeded the goal two years early. Looking at this achievement in other ways, over the same time period of 2005 to 2012, we reduced GHG emissions 26% per ton of production and 41% per dollar of reported revenue while holding our absolute emissions relatively flat, with less than a .5% increase.
We continue to look for ways to reduce our energy use and GHG emissions per our 2018 Enterprise Eco-Efficiency Goals.
Water is important to us, and it is a key resource for our customers. We track and collect water usage data at all of our manufacturing locations. Standards and guidelines for constructing new manufacturing facilities encourage the inclusion of water-reduction technology in the initial project design.
Sustainable Facility Design
As we grow, we ensure we grow efficiently by incorporating into our facility design process a commitment to sustainable design with a focus on water reuse, energy efficiency, recycling, and waste elimination.
We follow through on our commitment to sustainable practices and environmental stewardship by supporting environmental policies, vigilantly complying with applicable regulations wherever we do business, considering environmental impact in all our business planning, and fostering a culture of eliminating waste.
Environmental Management System
Our environmental policy is integrated into the company's worldwide operations through the John Deere Environmental Management System. This system includes a set of documented processes for controlling and continuously improving environmental performance based on the ISO 14001 standard. Our manufacturing facilities worldwide must follow this standard. A global network of regional environmental managers work within our factories to ensure compliance with regulations and to implement sustainable practices.
Each year, all of our manufacturing and parts distribution facility managers provide formal documentation of their efforts to appropriately manage risks and safeguard employees and the environment. Formal audits are also conducted at manufacturing sites based on risk, and internal audits are completed at other sites, to verify compliance with the John Deere Environmental Management System standards and local legal requirements around the world. We also record and analyze environmental incidents to focus on continuous improvements in our environmental performance. To ensure proper disposal of waste materials, waste disposal suppliers must be approved prior to use.
For acquisitions and leases of property, we take steps to identify and quantify any environmental risks and liabilities. A formal integration process ensures implementation of the John Deere Environmental Management System at acquired businesses and newly constructed factories.
Global environmental professionals attend regular training, helping them understand complex legal and corporate requirements and vital company processes and procedures.
Furthermore, our leaders provide oversight. A senior-level council of cross-functional leaders provide support, advocacy, and financial resources for operational changes needed to implement environmental strategies. The Board of Directors receives annual updates on strategy in conjunction with a briefing on environment, health, and safety issues.
To ensure suppliers conduct business with a high degree of integrity and in a socially and environmentally responsible manner, all of our suppliers are expected to adhere to our Supplier Code of Conduct.
Environmental compliance is a key expectation of suppliers. They must ensure their operations comply with all laws related to air emissions, water discharges, toxic substances, and hazardous waste disposal. Suppliers are encouraged to conduct their operations in a way that minimizes the impact on natural resources and protects the environment, customers, and employees. We encourage our suppliers to participate in our Achieving Excellence program for suppliers, where their environmental sustainability efforts can be highlighted and recognized by John Deere.
Suppliers' products must comply with the John Deere Restricted Materials List. And they must maintain sufficient knowledge of input materials and components to ensure they were obtained from approved sources, in compliance with laws and regulations. Suppliers may be required to validate this origin.
We proactively monitor suppliers to mitigate risks of a negative impact on human rights, health, or safety, as well as the environment, and we take measures to ensure that our suppliers conduct business in a highly ethical manner.
A risk management tool is in place to monitor supplier risks for compliance, financial health, performance, and event and business continuity planning. The compliance portion of the tool monitors activity related to the Supplier Code of Conduct, compliance to environmental and quality assessments, and all other compliance issues reported through other channels. This tool allows for improved risk management in the supply chain.
Our products and solutions are designed for efficiency and productivity. By truly understanding your needs and incorporating innovative technology, we're able to offer machines and technology solutions that are not only more productive and more efficient, but also minimize impact on the environment. "Product Sustainability," as it's known, is one of the best ways to offer lasting value to our employees, our business, our customers, and our world.
Using Life-Cycle Analysis, we carefully examine every stage of our products' life cycles, looking for ways to reduce the environmental footprint while improving their performance and durability.
As part of the Life-Cycle Analysis, we consider:
Using the "Design for Environment" process, we focus on selecting more environmentally friendly materials when designing and building products, and minimizing the use of virgin materials in every one of our products. The Design for Environment process also incorporates minimizing energy and water use in the factory and supply chain, and, most significant in our case, minimizing the environmental impact of products in their use through improvements such as better fuel economy.
Product efficiencies as a result of Design for Environment include reduced material use in product manufacturing, which leads to lower input costs and improved worksite productivity; improved electrification, hybrid powertrains, and new components that reduce operational energy requirements; and reduced use of hydraulic systems, which leads to lower environmental risks.
It's amazing what new technology can do for you by making your life easier, simpler, more productive, and cost-efficient. At John Deere, we know that the best technology can do all these things, as well as help the environment.
For example, by using GPS (Global Positioning System), we can increase machine efficiency and productivity in many operations. Besides helping to steer equipment, our precision GPS technology helps control equipment functions, from field preparation through harvest. Planting and seeding equipment can use GPS to control where to plant or seed, helping prevent wasteful overlap or planting through waterways. Machines that apply crop-protection products and fertilizers use GPS with other machine intelligence technology, as well. This leads to more precise application of crop-care products with less waste, and less environmental impact.
Harvesting equipment uses machine intelligence features that deliver automatic feed-rate control, assisted steering for higher efficiency, and less fuel consumption.
Of course, saving time in the field also dramatically reduces fuel use. The John Deere Load Command system can reduce the time needed to load a self-propelled sprayer from as much as 15 minutes to as little as 3 minutes. Over a growing season, that saves hours of field time and gallons of fuel.
With our construction and forestry equipment, machines are designed for maximum efficiency, productivity, and minimal environmental disturbance. For example, forestry skidders with lockup torque converters make better use of available horsepower. Because our machines use fuel more efficiently, less fuel is needed overall for each operation. Design is a factor, too. For instance, booms on some of our forestry machines can extend beyond 30 feet in many cases, reducing machine movement and requiring less fuel.
Our 844K Loader features ride control to navigate jobsites more quickly. And intelligent shifting technology matches clutch engagement to the load. Many of our machines have Total Machine Control, an electro-hydraulic system that automates many functions.