Textron | 2021 Corporate Responsibility Report

SAFE WORKPLACES. A SUSTAINABLE FOOTPRINT. HEALTHY EMPLOYEES. RESILIENT FACILITIES.

Textron has established five-year, enterprise-wide sustainability goals through an initiative launched in 2020, called Achieve 2025. These goals have been set to push our sustainability programs further, incorporating sustainability into how we operate each and every day and increasing our focus on striving for safe workplaces, a sustainable footprint, healthy employees and resilient facilities.

These goals represent more than just milestones for our company. By working toward each goal, we’ll have fewer employee injuries, reduce our environmental impact, increase employee well-being and meet the growing expectations of our customers, our shareholders and our communities. There are also cost savings—our efforts help to contain our insurance premium costs and protect our assets, while lowering energy usage and waste disposal costs.

ACHIEVE 2025 GOALS

SAFETY: 20% REDUCTION IN TOTAL RECORDABLE INJURY RATES (TRIR)

SUSTAINABILITY: 20% REDUCTION IN GREENHOUSE GAS EMISSIONS, 10% REDUCTION IN WASTE, WATER AND ENERGY

WELL-BEING: 20% IMPROVEMENT IN WELL-BEING WORKSITE SURVEY SCORE

RESILIENCY: 90% OR BETTER AVERAGE PROPERTY LOSS PREVENTION RANKING

OUR EHS VISION

We are committed to the health and safety of our employees, contractors and communities. We will actively champion environmentally sound practices and safe behaviors. We will continuously improve our processes, require individual accountability and demonstrate leadership to strive for zero injuries, eliminate adverse environmental impacts and contribute positively to the communities in which we operate.

SO HOW DO WE GET THERE?

Reaching our goals will take all of us working together. Working closely with teams across all our facilities, we’ve incorporated safety, sustainability, health and resiliency into how we operate each and every day.

Achieve 2025: Safety

Our ultimate vision is zero injuries and our 2025 goal is a milestone on this journey to zero. We intend to focus on eliminating uncontrolled hazards and to champion employee-led safety, proactive risk reduction and a continuous improvement mindset.

Achieve 2025: Sustainable Footprint

Our vision is the elimination of adverse environmental impacts. We are working to achieve our 2025 goals by focusing on operationally integrated processes that maximize natural resource efficiency and waste elimination, while creating opportunities for positive engagement with employees, communities and other stakeholders.

Achieve 2025: Healthy Employees

Our vision is to foster a culture of well-being at all of our workplaces, providing access to resources that empower employees to embrace a healthy and productive lifestyle. We’ve developed a survey to measure the maturity of each location’s well-being programs. Key elements to reach a 20% improvement in our worksite well-being scores include enhancing services related to nutrition, physical fitness and mental health as well as changing the physical layout of certain of our facilities to support our employees’ well-being.

Achieve 2025: Resilient Facilities

Our vision for operational resiliency is achieved through the implementation of programs that mitigate the risk and enhance our ability to respond to and recover from crisis events and natural disasters, including those related to climate change. We are measuring improvement using the RiskMark rating system developed by our property loss insurer FM Global. The RiskMark rating system evaluates a location’s relative risk of experiencing a property loss event due to fire or natural hazards. Our Achieve 2025 goal is to reach 90% of our maximum potential RiskMark score. We are also conducting annual reviews of our worksites by FM Global engineering to evaluate their resiliency, maintaining effective crisis management teams, providing emergency response preparedness training and sharing best practices.

TEXTRON AND SAFETY

Safe Workplaces

To maintain and enhance the safety of our employees, we promote a culture of continuous improvement, shared responsibility and individual accountability. This helps us to provide safe workplaces and strive for our ultimate vision of zero workplace injuries.

Safety Performance

At the corporate level, our Global Environmental Health and Safety (EHS) Policies and Standards establish a management system framework that includes goal setting, risk reduction, compliance auditing and performance reporting. Our businesses augment the corporate program with management systems of their own. For instance, Kautex facilities are ISO 14001 and 45001 certified. The overall program is guided by the Textron EHS Council, whose members include the senior EHS leaders from the Textron corporate office and each Textron business unit.

In addition to Achieve 2025 goals, we use an annual goal-setting process to drive injury rate improvements. The injury rate reduction goal is a performance metric that resides at the highest levels of the organization. Performance to this goal is reported to Textron’s Audit Committee and is tracked and reported to senior leadership as part of our Plan-Do-Check-Act process.

Textron uses various metrics to evaluate health and safety performance globally. The United States Department of Labor Occupational Safety & Health Administration (OSHA) recordkeeping rules are the guidelines all Textron facilities use for reporting injuries. In 2021, we had a Total Recordable Injury Rate (TRIR) of 0.90 and a Lost Time Injury Rate (LTIR) of 0.25.

OUR EHS OPERATING PRINCIPLES

No job or activity is worth risking injury
All injuries and environmental incidents are preventable
Working safely and in an environmentally responsible manner is a condition of employment
Each of us is responsible for the safe behavior of ourselves and others
Environmental, Health and Safety is led by senior management, implemented by line management, with each level accountable to the one above and responsible for the one below
We will design and integrate Environmental, Health and Safety into our products, our facilities and into our management process
All employees will be provided the necessary knowledge, skills and abilities to work safely
Strong environmental, health and safety performance is good business

TEXTRON AND THE ENVIRONMENT

Textron understands its responsibility to contribute meaningfully toward ensuring a sustainable future for the planet. Our responsibility to the environment starts with our compliance with regulatory requirements and is supported by our Textron Global EHS Policies and Standards which we follow in all countries where we operate. Beyond compliance, we are focused on reducing the energy and natural resource intensity of our operations and contributing positively to the communities in which we operate.

Achieve 2025 Sustainable Footprint Goals

In 2020, as part of our Achieve 2025 initiative, we established a new set of 5-year sustainability goals specific to the following areas of focus: greenhouse gas emissions, energy use, water use and waste generation. By 2025, Textron will strive to achieve the following goals compared to the 2019 baseline year:

Reduce greenhouse gas emission intensity by 20%
Reduce energy use intensity by 10%
Reduce water use intensity by 10%
Reduce waste generation intensity by 10%

These goals were developed with the intent for Textron to become more efficient in its use of natural resources to meet the expectations of our customers, shareholders, employees and other stakeholders and to better the communities in which our businesses operate. An added benefit of the Achieve 2025 Sustainable Footprint goals will be economic savings due to more efficient operations.