2011 Sustainability Report
Transcription
2011 Sustainability Report
2011 Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Table of Contents Flowserve Corporation President and CEO Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Flowserve Chief Operating Officer Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Stakeholder Engagement 6 Governance and Ethics 6 SHEA Policy and Vision 7 Supporting our Workers and Communities 9 Protecting the Environment 10 Marketplace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Highlights for Flow Control Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Scope and Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Workplace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Employment 18 Safety 18 Training 19 Environmental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Energy Usage 21 Water Consumption 22 Climate Change 22 Air Emissions 25 Water Emissions 25 Waste Disposal and Recycling 25 Summary of Safety and Environmental Indicator Data for FCD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 GRI Content Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 i 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division About This Report This report is the 2011 Annual Sustainability Report for Flowserve Corporation, highlighting the Flowserve Flow Control Division (FCD). The report provides general information regarding Flowserve Corporation including a statement from the CEO, an overview of the Flowserve approach to sustainable development, and information regarding our stakeholders, governance, and marketplace initiatives using 2010 data. Some of the data used in this report is based on a limited number of FCD locations and is subject to further refinement/revision. An updated report will be issued in 2012 incorporating additional data (for 2011). The report highlights information specific to FCD for various performance indicators and metrics, using the Global Reporting Initiative (GRI) reporting framework and guidelines. Key indicators were selected based on review of the overall GRI indicator list, and include those that are relevant to FCD manufacturing operations. For purposes of this report, a focus was placed on indicators related to safety, energy usage, emissions, and waste generation. Topics within the report are organized to reflect the Flowserve overall sustainability approach which addresses market, workplace, environmental, and community considerations. Sales information is also included to provide overall context and to assist with normalizing the information for comparability purposes. The report structure considers the use of the information by various stakeholders: employees and management, owners, investors, customers, and the general public. If you have any questions concerning this report, please contact: Stephen Wilson Corporate Director, Safety Health & Environmental Affairs Flowserve Corporation Telephone: 937 226 4477 Cell: 937 707 0064 Fax: 937 226 4472 e-mail: [email protected] ii 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Flowserve Corporation President and CEO Message Flowserve products and services allow companies in the oil and gas, power generation, chemical, water and general industries to move fluids with efficiency and confidence. Two decades ago, predecessor companies to Flowserve Corporation embarked on a mission to better understand the impact we have as a company on our world, with a specific focus on minimizing manufacturing residues disposed of as waste materials and a strong commitment to an annual reduction in workplace accidents. This initiative and our successes in it were in place long before “sustainability” came into vogue. As we embarked on a mission to better understand the impact we have as a company on our world, we examined how we interact with our stakeholders, from the communities we serve and the environment we all share, to the local economies we help improve, and the employees and investors who have a financial stake in our success, and finally to the customers we work with on a wide range of projects around the globe. We were proud to learn that sustainability principles are at the heart of much of what we do at Flowserve everyday. We are committed to such fundamentals as supporting the communities where our employees and customers live and work with monetary contributions and volunteer efforts, as well as ensuring that we act with transparency and with the highest ethical and environmental standards across our business. 1 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Flowserve products and services allow companies in the oil and gas, power generation, chemical, water and general industries to move fluids with efficiency and confidence. Our pumps, valves and seals – backed by our industry expertise – serve to keep critical processes working and vital fluids moving without the fear of loss or leaks. Our mission of ensuring the safe and efficient movement of fluids for the long term success of our business and that of our customers is a main component of our commitment to sustainability. As part of our sustainability efforts, we have started establishing a framework for reporting our progress. We seek to make our operations, and those of our customers, more sustainable in the marketplace. We will also continue serving our employees with respect and fairness, and a strong, continued focus on safety in the workplace. We will protect the environment through constant improvement of our own environmental performance, and by offering products and services that help our customers to be more environmentally responsible. And we will continue to be a vital force for good in the communities where we do business. We’re proud of our accomplishments in Sustainability and are committed to remaining an industry leader in Sustainable Manufacturing Practices, just as we have been leaders in the manufacture and service of valves, pumps and mechanical seals since our inception. Mark Blinn President and CEO Flowserve Corporation Flowserve Chief Operating Officer Message The Flowserve Flow Control Division (FCD) designs, manufactures, distributes and services a broad portfolio of industrial valves and automation solutions. With manufacturing sites and service facilities around the globe and professional partnerships with leading distributors, Flowserve customers have on-the-spot availability, experienced technical support and unmatched service wherever flow control is required. The renowned reliability of FCD products ensures extended service life when combined with on-site and off-site service and rebuild options, this provides some of the lowest life cycle costs in the industry. Based on our high quality and service-oriented approach and through the commitment of our associates working in more than 50 FCD facilities worldwide, we have successfully integrated sustainability principles into our products and services, and by extension, into our customer’s operations. Inherently, we strive to make our facilities sustainable by emphasizing safety of our people, reducing costs by conserving resources, by minimizing potential environmental impacts, and by supporting our local communities. We are now embarking on a program to formally measure and report our progress, and look forward to continued success and identifying opportunities for further improvement. I’m proud of our team and their many accomplishments in sustainability and look forward to sharing our successes as we move forward. Thomas Pajonas Chief Operating Officer Flowserve Corporation 2 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Overview Flowserve has a long history of recognizing the importance of sustainable development, taking into account the need to balance economic, social, and environmental considerations as part of our business activities. Our desire to demonstrate our commitment and raise awareness with respect to sustainability considerations is driven by various factors. Fundamentally, we have always been focused on the well-being of our employees, the interests of our investors and the community at large, while conducting ongoing assessments of the effects of our products and activities. This has allowed us to identify opportunities for development of our products and services, improvements to operations and work practices, and reductions of potential environmental impacts. Furthermore, sustainability topics are increasing in importance to our customers, employees, suppliers, investors, and the public. Communicating relevant information transparently is critical. Our recognition of the importance of sustainable development principles is exemplified by our programs and initiatives in four key areas: • Marketplace • Workplace • Environmental • Community Marketplace Flowserve plays a critical role with products and solutions that help our customers achieve their corporate responsibility goals. 3 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Workplace Flowserve is committed to employee health and safety of its driven, dedicated and focused workforce of more than 16,000 associates in more than 50 countries. Our decades-long commitment to everdecreasing workplace accident rates and our successes in this vital human element is illustrated below. Flowserve Corporation Accident Rate - History* Rate per 100 employees per year 18 16 14 12 10 8 6 4 2 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Year Lost Time Accident Rate: Number of accidents resulting in a day or more away from work per 100 employees per year Total Recordable Accident Rate: Number of accidents more serious than minor first aid events per 100 employees per year (includes lost time accidents) According to the International Labour Organization, the worldwide lost time rate for manufacturing exceeds 8.0 * Acquisitions not included in years prior to acquisition 4 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Environmental Protecting the environment for future generations is a top priority at Flowserve. We do so by providing our customers with quality products which reduce emissions and continuously strive to diminish the potential effects from our operational activities. Our two-decade record of driving both hazardous and solid waste out of our operational processes demonstrates our long-term commitment to minimizing our environmental footprint. Flowserve Corporation Hazardous Waste Generation Pounds Pounds / $ million / $ million in revenue in revenue 600 500 600 500 500 400 Flowserve Corporation Hazardous Waste Generation 500 500 500 398 398 400 398 400 300 300 278 250 300 250 200 200 278 278 250 200 100 100 100 00 0 46 2006 2006 20072007 2006 2007 2008 2008 2008 Year 46 37 37 2009 2010 200946 2011 (Aug) 2010 2009 2010 2011 (Aug) Year We long ago learned the business advantages of proactive environmental practices and reducing our environmental footprint. The graph below illustrates the operational cost savings we have leveraged from our Pollution Prevention/Waste Minimization programs in the past two decades-plus. The aggregate total now exceeds $50 million and is constantly growing as our associates create, implement and succeed at reducing chemical use, emissions and wastes. Approximate Annual Savings from Flowserve's Proactive Safety and Environmental Management Programs* Estimated Annual Cost Savings ($ thousands) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Year Community Flowserve is committed to improving the lives of people throughout the world and giving back to the communities where our employees live and work. Giving back to the local areas where we do business is an important part of our philosophy at Flowserve. We believe we have a responsibility to the communities where our employees and customers live and work, and we constantly strive to find ways to give back. From promoting educational programs for children to volunteering at local food banks and supporting worldwide disaster recovery efforts, Flowserve associates are committed to efforts that improve their communities. 5 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Stakeholder Engagement Many years ago, Flowserve embarked on a journey to understand the impact we have as a company on our world, including our associates, communities, environment, our investors, and finally our customers. The process was extensive: scrutinizing our safety performance; examining wastes and emissions from our operations; asking our employees to assist with identifying improvement opportunities; enhancing environmental management systems; and asking our customers for feedback through surveys and direct discussions. In 2009 we began to publicize these efforts and successes as part of sustainability communications with our stakeholders. We are proud that sustainability principles are integrated within Flowserve to the point that they are at the heart of what we do every day. Governance and Ethics Corporate Governance Highlights Flowserve is committed to implementing corporate governance practices that are consistent with best practices and fully comply with the requirements of the Sarbanes-Oxley Act of 2002 and the listing standards of the New York Stock Exchange. We have adopted corporate governance practices designed to meet the new and proposed governance standards. These practices reflect our requirement that our Board of Directors oversee the company with a forward looking governance structure implemented by diverse independent board members who are keenly focused on serving the interests of all our stockholders. We have developed a series of guidelines, codes of ethics, policies, corporate by laws, and reports related to our governance procedures, which are available on our corporate website. Acting with transparency and with the highest ethical standards Through our Code of Business Conduct, we provide our associates and suppliers with clear guidance about acceptable business conduct, requiring all employees and suppliers to adhere to the company’s codes. In addition to regular communications emphasizing the importance of an ethical and transparent work culture, Flowserve also commits a week each year to Ethics & Compliance Awareness. Events during the week feature training and promotions which emphasize ethical work practices at Flowserve facilities around the world. The Flowserve Ethics Hotline is also a critical resource to ensuring we deliver on our commitment to an ethical culture – for both our employees and our customers. These efforts were substantiated in early 2010 when Flowserve was named one of Forbes magazine’s 100 Most Trustworthy Companies. 6 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division SHEA Policy and Vision It is the philosophy of Flowserve that safety, health and environmental affairs management are integral parts of good management and production, and they cannot be separated. The Flowserve Safety, Health and Environmental Affairs Policy outlines the job titles and responsibilities of Flowserve management to ensure the safety, workplace health, and environmental management programs are carried out to their maximum potential. The policy applies to all divisions, locations and subsidiaries worldwide, and is designed to ensure compliance with all applicable laws, regulations, standards, and best management practices identified by Flowserve. It provides for taking the practical steps necessary, and doing all that is reasonable, to provide and maintain safe and healthy working conditions, to prevent injuries to employees, prevent environmental impacts through strict adherence to applicable government directives, and engage in environmental best practices. The policy also assigns the top ranking executive of the organization at each location with direct responsibility for establishing and maintaining an active safety, health, and environmental program. The program is subject to audits conducted at least once each calendar year by the Corporate SHEA group. The results of these audits are published to Flowserve senior management and the CEOO. Flowserve Safety, Health and Environmental Programs Flowserve strives to foster an environment of mutual respect and teamwork, where ethics are a key driver of how all associates treat each other. Flowserve management and employees work together to create and maintain safe, healthy, and productive workplaces that produce quality products for our customers. Employees participate in a cooperative environmental, safety and health (EHS) infrastructure and maintain high performance through the use of company required safety committees at each location. Committee members undergo safety training and are empowered with the authority to resolve safety issues, or they arrange for the appropriate corrective action to be taken. Committee members interact on the floor with their peers, mentoring them and taking the “safety message” to the shop daily. In addition to management and supervisors, employee members are encouraged to participate in the annual Safety, Health and Environmental Compliance Review (SHECR) performed by a member of the corporate SHEA staff each year. The wall to wall facility and records review audit consists of two parts: the “compliance component” and the “audit component”. The compliance component includes a three part, 721 point checklist utilizing the Safety, Environmental and Fire Prevention/Prevention Checklist. This extensive checklist follows U.S. regulations and consensus standards in the United States and internationally based on country specific regulations (Mexico/U.K.), or a modified U.S. checklist with ISO 14000/ OHSAS 18000 principles and best practices. The “audit component” of the inspection measures the more practical aspects of accident prevention and environmental performance. This portion represents the safety/environmental infrastructure that must be in place for long term EHS continuous improvement. 7 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Employee Competency Building The Flowserve Educational Services Group operates Learning Resource Centers to meet the training needs of our global workforce. Training is standardized, deployed and measured through the use of an online Learning Management System (LMS). Training goals are established each year and are included in individual goals and objectives. This ensures competency building, continuous improvement, and teamwork. EHS excellence is ensured through targeted, regularly scheduled training. The Flowserve Board of Directors demonstrated their support of EHS by approving a significant investment in early 2006 for customized training programs from PureSafety. The programs are deployed by the LMS and currently consist of 33 modules which are available in English, Spanish, French, German, Italian, Portuguese, Dutch and Mandarin Chinese. Total translations represent languages spoken by 95% of all Flowserve associates. In addition to structured training, safety training is further enhanced at the local level through the use of “All Hands” meetings and “Toolbox Talks” which are conducted frequently on the shop floor. Additionally, Flowserve has hundreds of internally developed training resources, available to all associates. SHEA coordinators also participate in advanced EHS training, including an overview of the SHEA Policy and Procedures manual, workplace safety and health expectations, accident reporting, accident goals and performance, environmental management and reporting, audits, safety committees, associate training and self inspections, and an internal certification program. In confidential safety surveys, Flowserve associates have consistently ranked their SHEA training with the highest scores possible. 8 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Supporting our Workers and Communities In addition, the Flowserve Employee Assistance program provides basic needs to employees and their families during natural disasters or other times of need. Our efforts on their behalf in the aftermath of Hurricanes Katrina and Ike, the Chilean and New Zealand earthquakes, and other natural disasters, reflect that commitment to our associates and their families. Metrics Focus Yields Increased Manufacturing Days Metrics Focus Yields Increased Manufacturing Days Number of Lost Work Days (LWDs) Number of Lost Work Days (LWDs) 7000 6000 6000 5000 5000 4000 4000 Theoretical LWDs (avoided) 3000 Total LWDs 3000 2000 2000 1000 1000 Total LWDs 00 19981998 19991999 2000 2000 2001 2001 Theoretical LWDs 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2008 2008 2009 2009 2010 2010 2007 Year Year Metrics Focus Yields Reduced Accidents Metrics Focus Yields Reduced Accidents 1400 1200 Number of Accidents Number of Accidents Supporting our associates At Flowserve, our associates around the globe are considered our most important resource. We believe this is more than lip-service - it’s something we live by every day. They are treated with respect and fairness, and all benefit from a superior, world class safety and health program. Their ideas for improving that program are the driving forces behind our success. Flowserve has set safety performance records year after year for 11 consecutive years, preventing 7,405 recordable injuries and 34,378 days away from work since 1997, based on historical records. Our history of continuous improvement in accident/injury rates spans more than two decades. 1200 1000 1000 800 800 600 Theoretical Accidents (avoided) 600 Total Accidents 400 400 200 200 Total Accidents 00 1998 199819991999 2000 2000 2001 2001 Theoretical Accidents 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2009 2009 2010 2010 2008 Year Year Communities where our associates and customers live and work Flowserve is committed to being a responsible corporate citizen and supporting the communities where our associates and customers live and work through corporate and local monetary contributions. The company also encourages associate volunteerism and participation in charitable initiatives. Many associates at locations around the world regularly participate in organized, collaborative efforts to improve the environment and their communities. 9 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Protecting the Environment The environment Flowserve products and services enable companies in the oil and gas, power generation, chemical, water and general industries to move fluids with efficiency and confidence, minimizing loss or leaks to the environment. Flowserve products are built to last, providing the outstanding value for our customers. Internally, recycling and waste reduction programs paired with rigorous auditing and continuous improvement of internal processes ensure minimal environmental impact. Waste reduction and elimination, recycling, emission controls and pollution prevention programs have been and remain a strong focus at Flowserve. 10 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Summary of Flowserve Safety and Environmental Successes 1988 through 2010 • Won more than 825 awards from the National Safety Council • Named one of America’s Safest Companies in 2010 by EHS Today magazine • Reduced lost time accident rate by 93.6% (>70% less than our peers) • Reduced lost workday severity by 97.7% • Achieved Workers’ Compensation costs >75% less than U.S. manufacturing average of 3. 21% of payroll • Reduced Workers’ Compensation costs from workplace accidents by $17 million • Reduced solvent emissions to the air by 90% • Reduced hazardous waste and machining coolant shipments by 70% • Reduced solid waste disposal by 50% • Achieved a total environmental savings of over $50 million while growing from $300 million in sales to $4.0 billion • Prevented 7,405 (half of the company) recordable injuries and 34,378 days (17.2 work-years) away from work based on historical statistics since 1997 11 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Marketplace Flowserve moves, controls and protects the flow of materials in some of the world’s most critical industries – including oil and gas, power generation, renewable energy, chemicals, and water – using our market-leading pumps, valves and mechanical seals to move, meter and control these vital natural resources. In doing so, Flowserve makes direct and important contributions to economic development in the more than 70 countries where we have customers, while also providing community support and opportunities to our employees and suppliers wherever we operate. To Flowserve, our marketplace presence is closely tied to societal commitments and environmental responsibility, consistent with sustainable development principles. This includes, for example, taking into account the environmental regulatory requirements in various jurisdictions that apply to our products and affect our customers’ operations. As a result, Flowserve continues to lead the industry as the Environmental Protection Agency (EPA) adopted national standards throughout the United States. We supported implementation of German environmental regulations with sealing solutions that met the strict requirements of the 2002 TA LUFT, and are currently supporting the stringent rules associated with the EU, European Integrated Pollution Prevention and Control (IPPC) directive. Flowserve is participating in the U.S. Department of Energy and U.S. Environmental Protection Agency Superior Energy Program, which seeks to improve the energy intensity of U.S. manufacturing by 25% by 2017 through voluntary initiatives. Flowserve also participated in the Fluid Sealing Association’s “Sealing Systems Matter” initiative that helped to “promote educated decision making based on total life cycle costs... associated with energy consumption, water usage... and environmental monitoring.” Flowserve FCD Heritage Brands 12 Accord Gestra Nordstrom Anchor/Darling Kammer PMV Argus Limitorque P&W Atomac McCANNA MARPAC Schmidt Armaturen Automax Mecair Serck Audco Battig NAF Sereg Durco International NAVAL Valtek Edward Noble Alloy Vogt Flowserve Norbro Worcester Controls 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Flowserve delivers reliable solutions for demanding technical challenges and customer applications, backed by local on-site field repair services that are readily available to serve our customers. Services and Solutions for Industry Flowserve services and solutions integrate hydraulic, mechanical and materials engineering knowledge with creative operating and business solutions to:! •! •! •! •! •! •! •! •! Create the best solutions for our customersÕ most challenging applications Improve equipment reliability and performance Reduce energy consumption Manage inventories Maintain flow management equipment Increase plant availability and output Develop and enhance workforce knowledge Improve the safety and environmental impact of operations "! Examples of Current Initiatives As part of our marketplace focus, Flowserve provides solutions to assist various industries to attain their own sustainability goals. Some examples follow. Oil & Gas Methane to Markets Natural gas transmission systems convey gas under pressure utilizing compressor station technology, which is subject to losses of gas to the atmosphere at various stages. Flowserve has developed and provides solutions to these problems that incorporate technological improvements for compressor seals, dump valves, rod packing, and pneumatic devices. Not only do these solutions make sense from an economic and energy efficiency/conservation standpoint, they also reduce atmospheric emissions of methane, the primary component of natural gas, which has a global warming potential around 20 times that of carbon dioxide. 13 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Industrial, Chemical, Power Generation Carbon Dioxide (CO2) Capture Flowserve is a pioneer in carbon capture and storage (CCS). In 1984, we provided the first centrifugal pumps used for CO2 pipeline and injection service. Since then Flowserve products have been used on numerous projects to remove CO2 from process streams in gas plants, refineries, chemical and petrochemical plants. Flowserve is also actively participating in pilot projects to study CO2 capture from industrial flue gas streams. Flowserve was recently chosen to supply process pumps to be used in the CO2 capture process at Mississippi Power’s Kemper County integrated gasification combined cycle (IGCC) power station project. Renewable Energy Solar Power Flowserve pumps are used in concentrated solar power (CSP) designs. In one design, a large number of parabolic mirrors are used to concentrate the sun’s energy onto receivers positioned at the focal point of each mirror. In another design, sun tracking mirrors (called heliostats) are used to focus sunlight on a receiver at the top of a centrally located tower. In both designs, heat transfer fluid is heated and used to create steam, which is then supplied to a turbine to generate electricity. Wind Power Flowserve supplies lift pumps along with water circulation and treatment pumps for transformer cooling systems for offshore wind turbine applications. Cellulosic Ethanol Cellulosic ethanol production is based on extracting sugars from plant materials such as cost efficient, renewable corn and sugarcane. Flowserve provides all of the products needed for each step of the chemical conversion process through other similar industrial applications. In addition, Flowserve collaborates with Verenium Corporation on a 1.4 million gallon per year demonstration scale facility in Jennings, Louisiana which is designed to process sugarcane bagasse (waste) and specially bred energy cane into cellulosic ethanol. Water Desalination Flowserve delivers the advanced products and services required in the worldwide demand for fresh water. Critical to this need are applications such as desalination the conversion of salt water to fresh water and to move large volumes of water from the source to the area where it is needed. Flowserve has supported the desalination industry with products used in thermal and membrane processes for more than 50 years. Recently, Flowserve expanded the products and advanced technologies it offers to the growing global desalination markets though acquisition of CALDER AG, with specialization in the design, engineering and supply of energy recovery equipment and related proprietary technologies for the reverse osmosis process used in desalination plants around the world. Energy recovery equipment is critical technology within reverse osmosis that captures and reuses waste energy, which significantly lowers net energy consumption in the desalination process. 14 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Flow Control Division Products and Applications The Flowserve valve portfolio represents one of the most comprehensive lines in the industry. Our valves can be custom engineered to perform specific functions for our customers’ unique flow control environments. 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Y! -.'56:.-! 15 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Highlights for Flow Control Division Products The Flowserve Flow Control Division (FCD) manufactures valves and actuators to satisfy major global standards for safety and emissions, including ISO, ANSI, ASTM, ASME Boiler and Pressure Vessel Code, TA Luft and EPA. In many cases, rigorous testing well beyond the required standards is completed in state-of-the-art labs within our manufacturing centers to ensure that Flowserve valve performance and emissions control are among the best in the industry. Operations FCD manufacturing operations involved around 4,600 employees working in more than 40 facilities, in 18 countries. Total sales (products and services) were over $1.3 billion (USD). Safety In 2010, the FCD total recordable accident rate was 0.74, the lost work day rate was 0.21, and the lost time severity rate was 2.8. We continue to see a downward trend in these rates compared to previous years and remain well below US valve manufacturing industry rates. Energy, Emissions, and Waste Management We have begun to compile energy usage and emissions information at the facility level to assist with reporting and identifying areas for improvement. Hazardous waste generation for FCD facilities in 2010 was approximately 42.5 lbs per million US dollars in sales, which is well below our corporate goal of 90 lbs. Community Programs We continue to support local programs in our communities, primarily geared toward providing assistance to children. For example, in Suzhou, China, we continue to support local schools and junior achievement programs, and in Texas we provide educational support for safety awareness. Similar efforts are being undertaken in many other FCD facility communities. 16 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Scope and Boundaries The following sections of this report provide information regarding safety and environmental performance for 2010 using GRI indicator protocols and focusing on those aspects that are most relevant to FCD operations. The GRI is a network based organization that has developed the world’s leading sustainability reporting framework. Flowserve has adopted this framework for this report, including the use of GRI guidelines and indicator protocols presented in the following sections. Flowserve Flow Control Division Manufacturing and Service Facilities Asia/Pacific North America (USA) Scoresby, Australia Portage, IN Fremantle, Australia Louisville, KY Chengdu, China * Baton Rouge, LA Suzhou, China *** Raleigh, NC Bangalore, India Philadelphia, PA Hubli, India *** Pittsburgh, PA Singapore Cookeville, TN Data was collected from various Kingsport, TN facilities based on records from January 1 through December 31, 2010. Europe/ Middle East/ Africa Freeport, TX In general, the information presented Villach, Austria The Woodlands, TX herein reflects the activities conducted by the FCD manufacturing facilities in Laitila, Finland Houston (Valbart),TX * the course of their operations within, Thiers, France Houston (Deer Park), TX but not outside, the physical facility limits. The activities conducted by Ahaus, Germany Houston (Jameel Rd), TX suppliers and outside contractors Bremen, Germany Sulphur Springs, TX are not within the scope of the data collection program. Also, sales and Essen, Germany Springville, UT administrative offices external to the Ettlingen, Germany Lynchburg, VA manufacturing facilities are not included. In some cases, the individual facilities Stade, Germany operations include both FCD operations Cormano, Italy North America (Canada) and operations related to other Flowserve divisions, as indicated Mezzago, Italy * Edmonton, Alberta *** above. The labor and environmental Roosendaal, Netherlands indicator data used in this report is for the entire facility, without any Dammam, Saudi Arabia ** Latin America distinction between the FCD and non Johannesburg, South Africa *** Sao Caetano, Brazil *** FCD operations. Linköping, Sweden Three Valbart brand facilities (Houston, Solna, Sweden TX; Mezzago, Italy; Chengdu, China) Jebel Ali, UAE which were acquired in 2010, and the Unieux, France, facility, which was Burgess Hill (Consort), UK divested in 2011, are not included in Burgess Hill (Victoria), UK the reported indicator data, except as noted for the safety data. Also, the Haywards Heath, UK Dammam, Saudi Arabia, facility was Newbury, UK under construction but not operational in 2010 and therefore no indicator * Valbart facility acquired in 2010, indicator data not included in this report data are reported. ** Dammam, Saudi Arabia facility not operational in 2010 Finally, some of the data used in this report is based on a limited number of FCD locations and is subject to further refinement/revision. *** Facility includes FCD and non FCD operations 17 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Workplace Workplace data collection and reporting for FCD facilities in 2010 focused on three key aspects (employment, safety, and training) and the associated GRI indicators, as outlined below. Our workplace safety performance data and training information is comprehensive and represents the entire FCD organization. Employment GRI Indicator LA1 At the end of 2010 the total number of employees was 4,600 (based on a total of 41 facilities in four geographic regions), working primarily on a full time, permanent contract basis. FCD Manufacturing Facilities and Employees by Region 2010 Region Asia/Pacific Europe/Middle East/Africa North America Latin America Total Number of manufacturing facilities Number of employees (at end of 2010) 6 18 16 1 41 494 2,136 1,870 100 4,600 Quantitative information regarding employment types (full time or part time), contract types (permanent or temporary), and supervised workers has not been compiled to date. Safety GRI Indicator LA7 Employee safety has always been a key focus for Flowserve. In 2010, the FCD total recordable accident rate was 0.74, the lost work day rate was 0.21, and the lost work day accident rate was 2.8 (see below). These values are normalized for every 200,000 hours worked based on OSHA reporting requirements in the U.S. and those used in other countries. (The system used for compiling the safety data is based on U.S. OSHA recordkeeping requirements, for both US and international facilities. The lost work days are determined based on scheduled work days beginning the day following the accident.) There were no fatalities at any Flowserve facilities in 2010. Information regarding overall absentee rates is not available for 2010. The overall rates shown below include accidents and occupational diseases. FCD Manufacturing Facilities Accident Rates – 2010 Region US International Sales/Mkt/Admin Overall Total Lost Work Day Accident Rate (Lost Time Frequency Rate) Lost Time Severity Rate Doctor Case Frequency Rate Total Recordable Accident Rate 0.21 0.28 0.0 0.21 2.8 3.8 0.0 2.8 1.2 0.2 0.2 0.5 1.40 0.49 0.20 0.74 Note: the data shown in the above table includes the FCD facilities listed in the Scope and Boundaries section plus the Chengdu, China and Unieux, France facilities (43 total). 18 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Total Recordable Accident Rate Rate per 100 employees per year For comparison purposes, the average Lost Work Day Accident Rate (Frequency Rate) for U.S. manufacturers for valves and associated products is 0.8, and the average Total Recordable Accident Rate is 4.3 (from 2009 U.S. Bureau of Labor Statistics data). The 2010 rates for the FCD are well below these industry averages. Our safety record is a reflection of the commitment of FCD employees and the diligence of Flowserve safety programs and professional staff, and is exemplified by the historical decrease in lost work day and total recordable accidents (see charts). 12 11.0 10.6 10 9.2 9.2 8.6 8 7.6 7.8 7.0 6.0 6.0 6 5.7 4.9 5.4 5.2 5.2 4.4 5.6 5.8 5.4 4.3 4 2.9 2.3 2.4 2 Flowserve - FCD 1.3 US Industry 1.0 0.8 0.64 0.8 0.74 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Rate per 100 employees per year Total Lost Work Day Accident Rate 2.5 2.2 2.3 2.2 2 2.1 1.9 2.1 1.9 1.7 1.7 1.6 1.5 1.5 1.4 1.4 1.1 1.0 1 1.2 1.1 0.9 0.8 0.9 0.6 0.8 0.8 0.6 0.5 0.4 Flowserve - FCD US Industry 0.36 0.33 0.3 0.21 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Training GRI Indicator LA10 Employee training is routinely conducted to provide initial and continuing instruction related to technical, professional, quality, sales, administration, safety/health/ environment and other topics, specific to the employee needs. This is tracked for various employee categories (management, professional, manufacturing, service/repair, application engineers, sales, and office). A sample of U.S. facilities indicates an average of approximately 16 hours of formal training per employee in 2010. It is estimated that formal safety training in 2010 for FCD associates totaled 45,000 to 50,000 man-hours, averaging approximately 10 hours of formal training per employee. Additional training takes place informally and frequently on the shop floor during safety “Toolbox Talk” sessions or safety “all hands” meetings (4 to 8 sessions per month). 19 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division The catalog of employee training modules includes a broad list of topics as shown below. Safety, Health and Environmental Coordinators also participate in advanced EHS training, including an overview of the SHEA Policy and Procedures manual, workplace safety and health expectations, accident reporting, accident goals and performance, environmental management and reporting, audits, safety committees, associate training and self-inspections, and an internal certification program. A total of 37 FCD coordinators have received this training. The Flowserve SHEA Certification Program is designed to provide both fundamental and advanced training in SHEA principles and Flowserve’s system for implementing those principles on a global basis. The program has two certification levels. Level I is designed for individuals who function as site SHEA Coordinators. These individuals have more than one area of responsibility and often perform multiple functions at small to mid-size sites within Flowserve. The two-day Level I course is intended to provide these individuals with the basic principles of human safety management, accident prevention, electrical/chemical/ mechanical safety, and environmental protection, as well as how Flowserve applies these principles to achieve world-class SHEA performance. At the conclusion of the program, the attendee will understand and be able to apply these principles at their assigned location. The Level II certification is designed for those individuals from larger facilities whose primary role is one of site SHEA Manager. Level II certified associates will attend the Level I program and exam, plus a third day of more intensive training and application of SHEA management principles. 20 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Environmental Environmental data collection and reporting for FCD facilities in 2010 focused on six key aspects (energy usage, water consumption, climate change, air emissions, water emissions, and waste disposal and recycling) and the associated GRI indicators, as outlined below. Energy Usage GRI Indicators EN3 and EN4 Energy usage (direct and indirect) was determined by collecting information from energy suppliers for 26 FCD facilities, representing approximately 85% of total 2010 sales1. Natural gas represents the main source of direct energy, with some facilities also reporting the use of other fuels including heating oil, fuel oil, kerosene, diesel, gasoline, propane, LPG, and acetylene. Indirect energy sources for each facility include imported electricity2. In addition, district heating (and electricity) from a local combined heat and power plant (using renewable biomass material and municipal waste) provides most of the energy needs at the Linköping, Sweden, facility. FCD Manufacturing Facilities Energy Usage – 2010 Energy Type Energy Usage Units Energy Usage Units Natural Gas 80,826 GJ 22,451,605 kWh Heating Oil 2,287 GJ 635,373 kWh Other petroleum fuels (12 facilities) 18,310 GJ 5,086,051 kWh Estimated Direct Energy (41 facilities) 145,504 GJ 40,417,731 kWh Electricity 203,224 GJ 56,451,074 kWh District heating 16,209 GJ 4,502,380 kWh Estimated Indirect Energy (41 facilities) 258,630 GJ 71,841,616 kWh Estimated Direct and Indirect Energy (41 facilities) 404,134 GJ 112,259,348 kWh 303 GJ/MM USD 84,160 kWh/MM USD Direct Energy Recorded quantities (26 facilities) Indirect Energy Recorded quantities (26 facilities) Normalized Energy Usage based on Sales (41 facilities) 1 The sales information was used to estimate total energy usage for all 41 facilities on a proportional basis. 2 Primary energy used for production of indirect energy was not determined. 21 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Estimated Energy Usage 36% 64% Indirect Energy 258,630 GJ 71,841,616 kWh Direct Energy 145,504 GJ 40,417,731 kWh Water Consumption GRI Indicator EN8 Water usage was determined by collecting information from water suppliers for 21 FCD facilities, representing approximately 73% of total 2010 sales3. The recorded water consumption (in cubic meters, or m3) for individual facilities ranged from less than 100 m3 to approximately 75,000 m3 with a total of approximately 181,000 m3, all of which was from municipal supply sources. Typical water uses include potable supply, cleaning and limited process operations. In some facilities water is also used for cooling purposes, and water is recycled as much as practical. The estimated total water consumption (for 41 facilities) in 2010 is approximately 249,500 cubic meters (or ~66 million U.S. gallons). Climate Change GRI Indicator EN16 Greenhouse gas emissions have been calculated for 26 FCD facilities that reported direct and indirect energy usage, using Greenhouse Gas (GHG) Protocol methods. Emissions related to direct energy usage were calculated using standard factors based on the type of fuel. Emissions related to indirect energy usage were calculated based on regional and country specific emission factors for electrical power utilities. The estimated total equivalent carbon dioxide (CO2e) direct and indirect emissions in 2010 for FCD manufacturing operations is approximately 46,000 metric tonnes4. Less than 20% of this amount is attributed to direct emissions from FCD facilities. 3 The sales information was used to estimate total water usage for all 41 facilities on a proportional basis. 4 The sales information was used to estimate the total GHG emissions for all 41 facilities on a proportional basis. 22 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division FCD Manufacturing Facilities GHG Emissions – 2010 Emission Type CO2e Emissions Units Natural gas and heating oil (26 facilities) 4,523 Tonnes Other petroleum fuels (12 facilities) 1,139 Tonnes 8,288 Tonnes 31,785 Tonnes Estimated Indirect Emissions (41 facilities) 37,462 Tonnes Estimated Total Direct and Indirect Emissions (41 facilities) 45,750 Tonnes 34.3 Tonnes/MM USD Direct Emissions Calculated Emissions Estimated Direct Emissions (41 facilities) Indirect Emissions Calculated Emissions Electricity and District Heating (26 facilities) Normalized Emissions based on Sales (41 facilities) Estimated GHG Emissions (Tonnes CO2e) 18% 82% Indirect Emissions 37,462 Direct Emissions 8,288 23 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division FCD Energy Usage and Direct Greenhouse Gas Emissions Information presented in this report for direct and indirect energy usage is shown on the figure below, on a regional basis. The figure also shows the estimated direct greenhouse gas emissions (associated with fuel combustion for individual facilities) relative to the U.S. EPA reporting threshold of 25,000 tonnes carbon dioxide equivalent (CO2e) for individual facilities. As shown, the combined direct greenhouse gas emissions for FCD facilities are well below the 25,000 tonne value. 2010 Indirect and Direct Energy (41 Facilities) Europe / Middle East / Africa Latin America 2010 1 16.6 1871.8 116.4 Year: Number of Facilities Sales (million USD): Indirect Energy Direct Energy 6.8 Tonnes Units Indirect Energy Direct Energy Direct GHG Indirect Energy Direct Energy Direct GHG Gigajoules per million USD Sales Latin America North America Asia Pacific Europe Middle East Africa 24 112.8 227.7 161.1 160.3 Gigajoules per million USD Sales 7.0 61.8 77.1 121.2 Tonnes CO2e per million USD sales 0.4 3.1 5.3 7.3 Emissions Emissions RT (25,000) Direct Greenhouse Gas 240 Tonnes Direct Greenhouse Gas RT (25,000) 3607 Tonnes RT - USEPA Reporting Threshold for Direct GHG emissions from individual facilities Sales Gigajoules Gigajoules Tonnes CO2e USD (millions) 1871.8 130954.9 7249.1 79356.7 116.4 35543.4 3471.3 60004.5 6.8 1806.8 240.5 3607.5 16.6 575.2 45.0 495.0 Flow Control Division Emissions RT (25,000) Direct Greenhouse Gas 1806 Tonnes Emissions RT (25,000) 2010 6 45 7249.1 3471.3 Direct Greenhouse Gas Asia Pacific Year: Number of Facilities Sales (million USD): Indirect Energy Direct Energy 2010 16 575.2 130954.9 35543.4 Year: Number of Facilities Sales (million USD): Indirect Energy Direct Energy 2010 18 495 79356.7 60004.5 Year: Number of Facilities Sales (million USD): Indirect Energy Direct Energy North America 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Air Emissions GRI Indicators EN19 and EN20 Air emissions at FCD facilities are associated with process activities and routine building operations. Air emissions are monitored in accordance with facility specific permits as applicable for compliance purposes. Flowserve conducts annual reviews for all facilities to determine compliance with regulatory requirements, permits and authorizations. Detailed quantification of air emissions from FCD facilities has not been conducted to date. Ozone depleting substances (i.e., CFCs, HCFCs, halons, and methyl bromide) are not used in any FCD facility process operations. Estimated NOx emissions associated with fuel combustion at FCD facilities in 2010 are on the order of 10 tonnes. Water Emissions GRI Indicator EN21 Water emissions from process operations at FCD facilities are discharged to municipal sewer systems in accordance with local authorizations. Waste water is pre treated if necessary prior to discharge and monitored as required to meet municipal requirements. Flowserve conducts annual reviews for all facilities to determine compliance with regulatory requirements, permits and authorizations. Detailed quantification of wastewater emissions from FCD facilities has not been conducted to date. Waste Disposal and Recycling GRI Indicator EN22 The wastes that are generated at FCD manufacturing facilities include both hazardous and non hazardous wastes, all of which is managed and disposed in accordance with applicable regulatory requirements and Flowserve standard procedures. Examples of hazardous wastes generated in 2010 include flammable liquids/ paint waste, parts washer solvents, other waste liquids, and batteries. The estimated total amount of hazardous waste generated in 2010 is 25.7 metric tonnes5, which was removed for off site treatment and disposal, or re use. The normalized amount of hazardous waste generated in 2010 is 42.5 lbs/MM USD in sales, which is more than fifty percent (50%) below the corporate goal of 90 lbs/MM USD. Flowserve has reduced global hazardous waste creation and disposal by more than seventy percent (70%) since 19886. Examples of non hazardous wastes include cutting fluids, coolants, absorbent materials; general solid waste; blasting media; containers/drums; packaging materials and wood pallets; and other recyclable material (scrap metal, paper, cardboard). Flowserve has reduced waste machining coolant disposal by 70% since 1988 and in most locations partners with a vendor who recycles the waste coolant into a reusable product. In addition, we have reduced our solid waste disposal quantities by over fifty percent (50%) since 19887. The estimated amount of non-hazardous waste generated at FCD facilities in 2010 (based on a sample of US facilities) is approximately 6,000 tonnes, of which approximately 4,000 tonnes was sent for recycling. 5 Notably, no hazardous wastes were generated in 2010 at 18 FCD facilities. 6 This is based on data collected for Flowserve Corporation and its predecessor company. 7 This is based on data collected for Flowserve Corporation and its predecessor company. 25 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Summary of Safety and Environmental Indicator Data for FCD Indicator Description Amount (2010) Sales Sales Revenue 1,333.9 MM US $ LA1 Total workforce by employment type, employment contract, and region Total number of employees by region (see LA1 for breakdown) LA7 4,600 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region Injury rate (total recordable incidence rate) 0.74 Occupational disease rate (included above) Lost day rate 0.21 Lost time severity rate 2.8 Number of fatalities Reporting system US OSHA LA10 Average hours of training per year per employee by employee category 16 hours EN3 Direct energy consumption by primary energy source Total direct energy consumption (all from non renewable source) EN4 EN8 258,630 Gigajoules Total water withdrawal by source Total volume of water withdrawn (all from municipal supply) EN16 145,504 Gigajoules Indirect energy consumption by primary source Total indirect energy consumption 249,500 cubic meters Total direct and indirect greenhouse gas emissions by weight Total greenhouse gas emissions – direct and indirect – CO2 equivalent EN19 Emissions of ozone-depleting substances by weight EN20 NOx, SOx, and other significant air emissions by type and weight NOx emissions from fuel combustion 26 0 EN21 Total water discharge by quality and destination EN22 Total weight of waste by type and disposal method 45,750 tonnes None ~ 10 tonnes Not quantified Total weight of hazardous and non hazardous waste 6,034 tonnes Total weight of hazardous waste 25.7 tonnes Total weight of non hazardous waste 6,008 tonnes Total weight of non hazardous waste disposed to landfill or other treatment 2,055 tonnes Total weight of non hazardous waste disposed to recycling or other beneficial use 3,953 tonnes 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Community Flowserve is committed to being a responsible corporate citizen and supporting the communities where our associates and customers live and work around the world through volunteer opportunities and contributions. The company also encourages associate volunteerism and participation in charitable initiatives, and many associates at locations around the world participate in organized, collaborative efforts to improve the environment and their communities. Flowserve financial contributions help students stay in school, foster life long learning through the use of technology, provide scholarships and support at risk youth so they can live happy, successful lives: • In North America, Flowserve and associates partner with the Dallas Cowboys to provide ongoing support to more than 100 children at Happy Hill Farm, an academy dedicated to at risk children located in Granbury, Texas. • In Asia, Flowserve sponsors volunteer experts from the U.S. who travel to the region to provide best practices for future support of the education infrastructure in China. • In Europe, Flowserve supports the efforts of Make A Wish Netherlands, making wishes come true for children in need. • Flowserve sponsors “Firefighter Phil,” a fire safety instructional activity book for children, local Safety Council breakfasts, and contributes/matches Red Cross donations after natural disasters such as the earthquake in Japan. Providing Support to Schools in China After Flowserve established operations in Suzhou, China, a top priority was finding ways to give back to the community. Local officials quickly suggested improving the technology access and infrastructure of two schools in the Suzhou Industrial Park (SIP) complex. In response, Flowserve donated a state of the art computer laboratory, science and innovation laboratory at the Loufeng School and No.8 Middle School in Suzhou. Through the labs, area students have access to technology, science and engineering learning tools that provide a foundation for future success. Following the unveiling of the new school labs, the Suzhou Ministry appointed a Flowserve executive to chair the city’s Corporate Social Responsibility committee, whose purpose is to align the city’s needs with corporate support. 27 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Employee Volunteerism and Giving At Flowserve facilities, volunteers contribute generously to their communities in many ways, from supporting local charities and providing direct assistance to families in need; to engaging in programs to support and encourage educational development for local children and young adults. Flowserve volunteers in China Supporting Junior Achievement After expanding operations to Suzhou, China, Flowserve wanted to ensure that local employees were empowered to give back to the community through volunteer initiatives. Flowserve reached out to local officials in Suzhou, and partnered with Junior Achievement (JA), the world’s largest organization dedicated to educating students about work readiness, entrepreneurship and financial literacy. In 2008, Flowserve and JA developed the “Our World” program to kick off an ongoing volunteer engagement with the Loufeng school. During the program, Flowserve employees taught students about international trade and globalization. Since the implementation of “Our World,” Flowserve has developed numerous other programs that encourage employees to share their fast knowledge with students to enrich their education. Teaching students in the U.S. to value Safety Flowserve facilities around the world are proactive when it comes to safety; identifying unsafe acts or conditions and preventing injuries before they happen is critical. Accident prevention is not only important to our work environment – it’s also something we can practice outside of our facilities with our families and communities. Our associates in Sulphur Springs, Texas, have been long time supporters of the Future Farmers of America (FFA) Agricultural Mechanics program at Sulphur Springs High School. With the permission of site leadership, Flowserve associates from the Sulphur Springs facility expressed an interested in partnering with the high school FFA program to conduct an Occupational Health and Safety Administration (OSHA) Outreach Training Program, a voluntary program designed to teach the basics of safety and health hazard recognition and prevention. Our associates recognized that sharing their knowledge and experience would benefit the young students interested in the manufacturing field. 28 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division Awards The Flow Control Division (FCD) has a long history of US and international recognition for safety and environmental accomplishments. Below is a summary of the sites that have received safety recognition from just the US-based National Safety Council (NSC) in 2010 alone. FCD sites around the world have received over 825 awards from the NSC in the past two decades. The data used in this report is based on a limited number of FCD locations and is subject to further refinement/revision. Safety 2010 National Safety Council Awards Occupational Excellence Award (1) Perfect Record Award (2) Baton Rouge, LA Lynchburg, VA Philadelphia (Boothwyn), PA Raleigh, NC Cookeville, TN Cookeville, TN Freeport, TX Linköping, Sweden Louisville, KY Hubli, India Lynchburg, VA Ahaus, Germany Pittsburgh, PA Burgess Hill (Consort), UK Raleigh, NC Burgess Hill (Victoria), UK Springville, UT Haywards Heath, UK Sao Caetano, Brazil Suzhou, China Tuas, Singapore Villach, Austria Thiers, France Bangalore, India Edmonton, Canada Million Manhour Award (3) Hubli, India (passed 2 million) Certificate of Merit (4) Sao Caetano, Brazil Bangalore, India (passed 3 million) Notes: 1) LTR less than 1/2 of Bureau of Labor Statistics Lost Time Accident rate for NAICS Code 2) Entire year without a Lost Time accident involving days away from work 3) Over 1 million manhours without a Lost Time accident 4) Self nominated significant accomplishment FCD Tuas received a Silver Singapore HEALTH award in 2010. This is a national-level award recognition to organizations with a commendable Workplace Health Program. It distinguishes us as a caring employer who values our employees’ health and wellbeing. 29 2011 Annual Sustainability Report Flowserve Corporation • Highlighting the Flow Control Division GRI Content Index GRI Reference Description Report/Page Standard Disclosures Strategy and Analysis 1.1 CEO Statement Page 1, 2 Organizational Profile 2.1 Name of the organization 2.2 Primary brands, products, services 2.3 Operational structure 2.4 Headquarters location 2.5 Countries with operations covered in this report 2.6 Name of ownership and legal form 2.7 Markets served 2.8 Scale of organization (employees, sales, capitalization, products/services) 2.9 Significant changes during reporting period 2.10 Awards received Annual Report – page 5 Annual Report – page 3 US SEC Form 10 K report Annual Report – page 5 Page 17 US SEC Form 10 K report Annual Report – page 4 US SEC Form 10 K report Page 17 Page 29 Report Parameters 3.1 Reporting Period 3.2 Date of most recent previous report 3.3 Reporting cycle 3.4 Contact point for questions 3.6 Boundary of report 3.7 Limitations on scope or boundary of report 3.8 Basis for reporting on joint ventures, subsidiaries, outsourced operations, other entities 3.10, 3.11 Explanation of effects of re statements of information in previous reports 3.12 Table of Standard Disclosures Governance, Commitments and Engagement 4.1 4.2 4.3 4.4 4.14, 4.15 Governance structure Statement regarding Chair position Statement regarding Unitary board structure Mechanisms for input and topics raised Stakeholders engaged and basis for selection Page 17 Not applicable Not applicable Page ii Page 17 Page 17 Not applicable Not applicable See Flowserve corporate website – Investor Relations Social Indicators LA1 LA7 LA10 Total workforce and percentage covered by collective bargaining agreements Rates of injury and other safety performance data Average hours of training per employee Page 18 Page 18, 19 Page 19, 20 Environmental Indicators EN3, EN4 EN8 EN16 EN19 EN20 EN21 EN22 Direct and indirect energy consumption by primary source Total water withdrawal by source Total direct and indirect greenhouse gas emissions by weight Emissions of ozone depleting substances NOx, SOx, and other significant emissions Total water discharge by quality and destination Total weight of waste by type/disposal method Economic Indicators EC1 Economic value generated and distributed 30 Page 21, 22 Page 22 Page 22, 23 Page 25 Page 25 Page 25 Page 25 US SEC Form 10 K report North America Latin America Europe Middle East Africa Asia Pacific Flowserve Corporation 5215 North O’Connor Boulevard Suite 2300 Irving, Texas 75039 flowserve.com