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
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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: SWilson@flowserve.com
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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.
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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
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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. Flowserve valves are used in
the most severe and demanding industries,
including high levels of corrosion, extreme
temperatures and pressures, zero fugitive
emissions and nuclear power plants.
Backed by strong engineering and global
support, Flowserve delivers valves
engineered to help customers maintain
production goals and keep facilities
operating at peak efficiency. Together with
the industry’s most complete range of
actuators, positioners, controls, switches
and accessories –complemented by our
comprehensive R&D, engineering and
global support services- Flowserve provides
every customer with a one-stop solution to
their flow control needs.
Product Examples
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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.
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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