Parker 2013 Sustainability Report | Parker Hannifin

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Table of Contents
Message from the Chairman,
CEO and President.....................................2
Sustainability.............................................3
Governance, Ethics and Compliance..........4
Parker People............................................6
The Planet............................................... 11
Product Stewardship............................... 14
About Parker
With approximately 58,000 people
in 49 countries around the world,
Parker can be found on and around
everything that moves. Parker is the
global leader in motion and control
technologies, providing precision-
engineered solutions for a wide
variety of mobile, industrial and
aerospace markets.
For fiscal year 2013, Parker had
sales of $13 billion. Parker is a
company with a deep rooted
belief that premier customer service
and engineering spirit will sustain
its success going forward. Further,
Parker realizes that a sustainable
company has an ongoing need,
and obligation, to manage natural
resources efficiently, attract and
retain talented employees, engineer
products that will help the world
thrive and support the communities
in which it operates.
Parker is Committed to
Partnering with World-Class
Suppliers
With an annual spend exceeding
$6 billion, Parker partners with
suppliers who share the beliefs
of premier customer service,
maintaining the highest quality
standards, on-time delivery and a
culture of continuous improvement.
Parker views suppliers as partners
who will help the company remain
competitive in the marketplace and
achieve growth objectives. Key
criteria for Parker suppliers include
their ability to meet foundational
business requirements in technology,
quality, lead time, delivery quantity,
price and continuous improvement.

About this Report
The information in this report
addresses how Parker is making
a positive impact on the world by
applying its core technologies and
creating exciting growth potential.
All data corresponds to Parker’s
fiscal year 2013 (July 1, 2012
through June 30, 2013) unless
otherwise noted. The previous report
corresponded with Parker’s fiscal
year 2012. Parker’s intention is to
report on an annual basis.
Report Scope
The data provided in this
document reflects Parker’s global
manufacturing operations in which
Parker has a 50% controlling
interest or majority ownership. It
also includes employees in those
operations and the associated
headquarters and distribution
centers under Parker ownership.
The scope does not include Parker
suppliers, customers, distributors,
contractors or joint ventures in which
a minority ownership is held.
Contact Us
Parker welcomes your comments
and questions about this document
and its sustainability efforts by e-mail:
rtaylor@parker.com

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Operating Data 2013
Net sales................................................................................................................................................... $ 13,015,704
Gross profit............................................................................................................................................... 2,929,029
Net income attributable to common shareholders..................................................................................... 948,427
Net cash provided by operating activities.................................................................................................. 1,190,935
Per Share Data
Diluted earnings........................................................................................................................................ $ 6.26
Dividends.................................................................................................................................................. 1.70
Book value................................................................................................................................................ 38.44
Parker's Win StrategyParker's Win Strategy
Goals
Vision
S
T
R
A
T
E
G
I
E
S
◆ Quality Products
on Time
◆ Value Added Services
◆ Best Systems -
◆ Suppliers: Strategic
Procurement
◆ Operations: Lean
◆ Customers: Strategic
Pricing
◆ European Initiatives
Internal
Acquisitions
◆ Innovative Products
◆ Systems Solutions
◆ Strong Distribution
Globalization
#1 Premier
Customer Service
Financial
Performance
Proﬁtable
Growth
Empowered Employees
The #1 Motion & Control Company
PHconnect
The Win Strategy
Focused on long established Parker goals of premier customer service, financial performance and profitable growth,
the Win Strategy is a disciplined and consistent business strategy that has transformed the company and improved
operations worldwide since it was initiated in 2001. Designed as an instrument of operational change, the Win Strategy
is a powerful document adopted by all Parker locations worldwide.
Empowered employees represent the foundation of Parker’s strategy, as they have remained steadfast in their
dedication to the strategy’s implementation. Empowered employees work to execute the Win Strategy by taking
responsibility, accepting accountability for results and supporting a culture of respect for the contribution of every
person.
Financial Highlights
For the year ended June 30,
(dollars in thousands, except per share data)

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Message from
the Chairman, CEO and
President
In the spirit of Parker’s long-standing
commitment to environmental
stewardship and social responsibility,
this year we strengthened our
sustainability program by focusing
on the primary points through which
we interact with the world around us:
People, Products and Planet.
We empower our employees by
providing the resources to excel in
the workplace and to take control
of their health and wellness, while
supporting the communities in which
we live and operate. This enables
Parker to attract remarkable people
who will drive our future growth and
maintain our financial strength.
Parker’s ability to engineer highly
efficient products and systems
is reflected throughout all stages
of the product lifecycle, reducing
the environmental impact of our
manufacturing processes and
contributing to the sustainability
and profitability of our customers’
businesses.
Our ongoing efforts to reduce
resource consumption and waste
generation and optimize the
management of hazardous materials
throughout our supply chain
improves our competitiveness while
protecting the environment.
This report provides a comprehensive
overview of Parker’s efforts
throughout our global operations
in fiscal year 2013. It reflects on the
targets reached throughout the year,
which have positioned us to achieve
the long-term goals established
by the Win Strategy for employee
empowerment, operational efficiency
and product innovation. Examples
of individual campaigns throughout
the report illustrate the engagement
of Parker employees in improving
their health and wellness, supporting
the local communities in which they
live and work, and minimizing their
environmental impact to create a
sustainable future.
Following the principles of our
sustainability program, key
accomplishments in the past year
include:
• A 6% reduction in energy use, on
an absolute basis, in our global
operations.
• An 18% reduction in recordable
accident rate and a 26%
decrease in accidents with lost
time rate.
• Establishing 19 model locations
on four continents to assist
our global facilities to expand
employee options under our
global wellness program.
• Donating millions of dollars to
support charitable organizations
through the Parker Hannifin
Foundation, while employees
continued their benevolent tradition
of organizing volunteer and giving
programs.
Parker’s 58,000 employees operate
in 49 countries each day, and our
innovative products and systems
facilitate motion and control in
countless markets and applications.
The breadth and scope of Parker’s
operations obligates us to ensure our
business is conducted in alignment
with the best interests of our
employees, the environment and the
communities we call home. We are
inspired by our commitment to meet
this responsibility and to make a positive
impact on the world around us.
Don Washkewicz
Chairman, Chief Executive Officer and President
March 2014
Don Washkewicz, Chairman, Chief Executive Officer and President

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Parker manufactures products for
motion and control applications. To
be successful, the company needs:
• A secure supply of raw materials.
• The ability to attract talented
people to design, manufacture
and sell products.
• Viable communities in which to
operate.
A shortage or loss of any of
these elements would jeopardize
the company’s ability to sustain
a successful and prosperous
organization. Each of these
material aspects have clear,
sustainable parameters which is
why sustainability is a key element of
Parker’s business model.
These aspects are pertinent to
Parker as a global manufacturer of
diversified industrial components and
systems in several ways, including:
energy consumption and emissions
for environmental performance,
occupational health and safety,
child labor and nondiscrimination
for human rights performance,
community for social performance,
and economic results for economic
performance.
The boundary condition used for
all of Parker’s key aspects and
performance metrics is from the
point of supplier delivery to the point
of distribution of a finished product.
At this point, the company only takes
measured steps into the area of
raw material sourcing and finished
product application in the sustainable
aspects such as energy, emissions,
safety, human rights and social
performance.
This position on material aspects and
boundries is not a significant change
from the previous report.
Key Opportunities and Risks
There are a number of key
opportunities and risks associated
with sustainability:
• Parker uses a wide array of
metals and organic materials to
produce its products. Scarcity
of these materials impacts the
current composition and design
of Parker’s products.
• Parker’s products rely on energy
to function. A change in energy
source can impact product
design.
• Parker’s technological expertise
helps customers respond to their
unique business challenges. By
focusing on new products and
the sustainability of materials
and resources, Parker minimizes
waste while providing high
quality, cost-effective solutions
for customers. The ability to
differentiate products and rapidly
adapt to changing needs is a key
advantage.
• A passion for innovation enables
Parker to solve some of the
world’s greatest engineering
challenges.
• Parker employees are
continuously originating new
ideas to make their workplaces
and communities more
sustainable. These ideas
are extremely valuable and
help create a culture where
employees are empowered to
look for better, more efficient
ways of doing things.
Stakeholder Engagement
Parker engages a number of
stakeholders in the development of
its sustainability goals and objectives.
Contributing stakeholders include:
• Customers through direct
feedback from Parker’s
marketing and sales teams.
• Employees through a biannual
global survey.
• Suppliers through feedback
on their compliance with the
sustainability requirements in
Parker’s supply chain portal.
• The Parker management team
through interviews and polls.
Additionally, Parker analyzes
information from sustainability
ratings and shareholder feedback,
and benchmarks with its diversified
industrial peer group.
The current engagement process is
informal. The stakeholders that have
been identified as most important to
Parker are customers, employees,
suppliers, the shareholder/investment
community and the management
team. These stakeholders were
identified by evaluating the
requirements of the stakeholder
against the importance and influence
in which they impact the company.
Two key areas of focus that have
been identified to further Parker’s
stakeholder engagement efforts are:
• Additional emphasis on product
stewardship.
• More visibility and opportunity to
engage in local communities.
Sustainability
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Parker is committed to operating
in accordance with the law and the
highest standards of ethical conduct.
Whether solving the world’s greatest
engineering challenges, delivering
on world class customer service
or supporting local communities,
Parker strives to do what is right for
the company and its stakeholders.
The company has a long history of
excellence in corporate governance,
ethics and compliance.
Corporate Governance
Parker’s commitment to responsible
corporate citizenship and the
sustainable, long-term growth of the
company begins with its Board of
Directors. Parker is governed by a 12
member Board of Directors. Eleven
of the 12 directors are “independent”
based on the applicable independence
standards of the New York Stock
Exchange and Parker’s Independence
Standards for Directors. Parker’s
Chairman, CEO and President,
Don Washkewicz, is the only Parker
employee on the Board. Each director
must stand for election annually. The
Board has responsibility to represent
stakeholders in overseeing the
business strategy and governance
matters of the company.
To learn more about Parker’s
Board, visit www.phstock.com/
corporategovernance.
Integrity and Ethics
Parker has earned a reputation as
a company that can be trusted by
customers, investors and employees.
A reputation built on trust increases
predictability and economic value in
an uncertain world. Parker’s reputation
as a trusted company is an important
competitive advantage that cannot
be taken for granted. In April 2012,
Parker’s Board approved a new
approach for success through ethical
behavior built around character –
“Winning with Integrity.”
“Winning with Integrity” provides a
common language of character defined
by virtues that transcend cultural
boundries to help safeguard the
company’s reputation. The objectives
are to raise employee awareness of
the virtues, draw attention to how
these virtues help Parker win in the
marketplace and commit to future
actions that empower employees
and solidify employee engagement. A
focus on virtues is one way in which
employees can align their own personal
values with Parker’s to increase trust
and pride. Virtues have been linked to
positive outcomes such as increased
productivity, customer satisfaction
and profitability, in addition to reduced
turnover, absenteeism and code of
conduct violations.
In developing Parker’s approach, a
broad range of business leaders,
academics and the U.S. military were
consulted to better understand how
these organizations rely on virtues
to drive performance. Based on
best practices, Parker’s approach is
designed to cultivate purpose, passion,
persistence and relationships.
Although it is recognized by a new
name, “Winning with Integrity” is about
enhancing what Parker employees
already do. As a result, Parker
employees have been open to finding
personal, as well as professional,
meaning in the application of a
character-based approach to business.
Global Code of Business
Conduct and Policies
Parker’s Global Code of Business
Conduct is the foundation of the
Integrity and Ethics, and Compliance
programs. The Code outlines the
company’s basic standards and
expectations, highlights important
policies and summarizes certain
fundamental legal requirements that
employees must follow at work. It also
provides guidance about resources to
which employees can turn to if there
are questions or concerns about a
potential legal or ethical problem. The
Code is available in multiple languages,
and every Parker employee receives a
personal copy. Parker’s Global Code of
Business Conduct is available online at
www.parker.com/integrityandethics.
Enterprise Compliance
Parker has an established compliance
infrastructure. Parker’s Enterprise
Compliance Network consists of the
Board of Directors, Senior Parker
Leadership, the Office of Audit,
Compliance and Enterprise Risk
Management, the Legal Department,
and local Compliance Officers and
Administrators. Collectively, this team
encourages, stimulates and creates
the foundation for a values based
culture throughout Parker. The Vice
President – Audit, Compliance and
Enterprise Risk Management has
a solid-line reporting relationship
to the Chief Financial Officer and a
dotted-line reporting relationship to
the Audit Committee of the Board of
Directors. The compliance program is
continually assessed and adjusted to
reflect developments in the company’s
operations.
Governance, Ethics
and Compliance

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Global policy statements on specific
compliance measures are issued by
the Parker Management Committee
and updated as necessary. Additional
policies, procedures and guidelines
are issued by the respective functional
areas.
Parker’s Integrity Line
Parker’s Integrity Line is a service
through which complaints and
concerns can be reported to the
company on a confidential and
anonymous basis. Access to the
Integrity Line is available through
a secure website and toll-free by
telephone from all countries in which
Parker does business. The availability
of the Integrity Line and instructions
for its use are widely publicized to
employees around the world. Parker
complies with the special requirements
of the European Union. All reports to
the Integrity Line are investigated by
qualified personnel who have been
trained to conduct investigations
lawfully, fairly and confidentially.
Education and Training
Parker provides comprehensive training
for every employee on core issues
relating to ethics and compliance. The
company also provides risk-based
training that is tailored to individuals’
roles and the issues associated with
their specific job responsibilities.
Internal Controls
Each year, Internal Audit executes
audits across all Parker regions. Audit
topics include a review of general
control activities in sales, procurement,
inventory, information systems,
fixed assets and human resources.
Additional reviews are also conducted
in areas such as treasury, anti-bribery,
anti-corruption, anti-trust and financial
reporting.
Parker management has embraced
the Sarbanes-Oxley requirements,
which includes quarterly self-
assessments and reporting of
key financial risks and controls by
management, and is augmented by
‘peer’ testing of controls at Parker’s
reporting locations (divisions, sales
companies and shared service
centers), corporate departments and
information technology centers.
Ongoing Commitment
Parker modifies its compliance
program, including policies, procedures
and related training, in response to new
legislative and regulatory requirements,
enforcement trends, political and
public policy concerns and trends in
the broader business and financial
environments. For example, Parker
has established a labor relations
program which is managed by the
Vice President – Global Labor and
Employee Relations.
Parker’s Board of Directors
Among Highest Rated for
Board Governance Capacity of
America’s Largest Companies
Parker was ranked in
the top ten for overall
governance capacity for
the third consecutive year
in an independent study of
America’s largest companies
conducted by James Drury
Partners. Parker’s Board was
awarded top ten rankings
in the 2013 edition for
Average Director Weight,
which evaluates business
competence of each director,
and in the Composite Weight
category that assesses a
Board of Directors’ overall
governance capacity. Parker
was the highest rated company
for both of these categories in
its industry sector.
The 2013 report increased its
scope to include evaluations
of 6,248 directors sitting
on the boards of 647 of
America’s largest companies,
now including the top
500 companies in market
capitalization. “The Weight of
America’s Boards” is published
annually and measures
the business acumen and
experience of board members
across all industries of the
largest public companies in
the United States as measured
by revenue and market
capitalization. The developing
trend in the analysis is a clear
connection between a board’s
governance capacity and
overall investor return or stock
performance.

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Parker People
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* Safety data restated from the 2012 Sustainability Report for acquired and divested business units.
2.50
2.00
1.50
1.00
0.50
0.00
Recordable Accidents
Recordable Accident Rate
Accidents with Lost Time Rate
2010 2011 2012 2013
Calendar Year
Parker employees are the backbone
of the organization. At any Parker
facility, you will find employees with
10, 20 and 30 years of service,
which speaks to Parker’s positive
employment climate. However, the
company is continually challenged,
as a global organization, to maintain
a safe, stimulating and empowering
work environment.
Workplace Safety
Parker values the safety of its
employees and works to provide
safe and secure workplaces. During
fiscal year 2013, Parker launched
a program which established
organization-wide expectations
for safety management and
performance. These expectations
supplement local, regional and
national safety laws and regulations.
The program is designed to provide
Parker operations a consistent
means of identifying and controlling
safety and environmental risks.
Aspects of the program include
electrical safety, equipment and
machine safety, ergonomics and
emergency preparedness. All
manufacturing facilities evaluate
conformance to the program on a
quarterly basis and use the program
for continuously improving employee
safety.
In 2013, Parker also completed
the launch of a safety leadership
engagement program and formed
safety leadership teams in each
of the company’s seven business
groups. These leadership teams
meet periodically to monitor safety
performance and to establish
standards and best practices within
the business groups.
Parker’s worldwide safety
performance is measured by the
number of work-related accidents
which require medical attention
beyond first aid, normalized to 100
employees per year. Since 2010,
Parker has achieved a 29% reduction
in its recordable accident rate and a
23% reduction in accidents with
lost time rate. During fiscal year 2013,
Parker achieved an 18% reduction
in its recordable accident rate and a
26% reduction in accidents with
lost time rate.
Parker deeply regrets the deaths
of two employees in workplace
accidents which occured during
fiscal year 2013. Parker has taken
actions to prevent such tragic
incidents in the future.
Labor Relations
Parker has established a labor relations
program, which is managed by the
Vice President – Global Labor and
Employee Relations. Parker has
established global policies for human
rights and labor standards, and is in the
process of deploying them throughout
the organization and providing
appropriate education. The policies
largely align with International Labour
Organization (ILO) standards, and are
in accordance with local laws and
consistent with Parker’s Global Code of
Business Conduct.
Employee Empowerment and
Engagement
Parker’s success is based on a
simple and powerful equation:
empowered employees operating
in an environment that is serving
customers by generating ideas and
solutions. Empowered employees
represent the foundation of the Win
Strategy, which creates a unique
competitive advantage for Parker.
The Employee Empowerment
Council, formed in 2008, is made
up of senior leaders across the
company and coordinates a range
of initiatives aimed at improving the
business by increasing the level of
empowerment among leaders and
employees.
As a global organization operating
in a rapidly evolving business

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CASE STUDY
Gym Inspires Healthy Lifestyle
Dewsbury, England
Since first opening its doors in 2013,
the gym at Racor Division Europe in
Dewsbury, England has contributed
significantly to improving the health
and fitness of employees. The idea to
build a gym, however, was gener-
ated in response to a simple goal: to
encourage healthy lifestyle choices by
presenting an expanded set of options
for wellness and care.
After the prospect of constructing an
on-site gym was raised at a Wellness
Team meeting, the response was
overwhelmingly positive and the gym
was designed and built based largely
on employee input. The existing wash
rooms at the facility were redesigned
with new showers, changing areas
and lockers, and an industrial
ventilation system was installed to
accommodate the gym itself.
The gym is equipped with a range
of equipment to serve users of all
fitness levels, including treadmills,
cross training machines, stationary
bicycles and a set of dumbbell
weights. When the gym opened, a
qualified trainer was provided to
instruct employees on the proper
use of the equipment and to share
advice on ideal fitness and nutritional
routines.
Employees report the convenience
of being able to use the facility in the
morning or after work has enabled
them to increase their activity level,
and the initiative has helped to draw
in those who have otherwise avoided
visiting a gym due to barriers such as
cost or sensitivity to public exercise.
The staff at Racor Division plans to
expand the availability of healthy food
options at the facility, and the gym
will continue to support Parker’s belief
that even small lifestyle changes can
create a significant impact on the
health and wellness of employees.
CASE STUDY
High Performance Team
Salt Lake City, UT, U.S.A.
A High Performance Team (HPT) at
Parker’s Engineered Polymer Systems
Division has drastically improved
productivity within the S-Line of the
4300 Cell at their plant in Salt Lake
City, Utah.
The goal was to remodel the area’s
workflow process by implementing
the 5S organizational methodology,
a technique built upon the five basic
steps of Sorting, Straightening,
Shining, Standardizing and
Sustaining.
When the HPT performed its initial
audit, the area’s production process
was assessed a total average score
of 0.63 out of 5 on the 5S scale.
When the cell reached its target score
of 2.5 within the first month, the team
was confident the procedures for
standardizing the new work practices
would enable employees to maintain
their new level of performance.
What the team did not expect,
however, was that the area’s 5S
score would continue to rise,
ultimately peaking at an exceptional
2.75 just two months after the new
operational standards had been fully
implemented.
As a result of the HTP’s efforts, work
in progress (WIP) has dropped from 5
to 3.5 days in queue, on-time delivery
has increased from 71% to 95%
and dollars per direct labor hour has
been increasing steadily, all of which
can be attributed to the organized
structure of each work area.
Employee engagement has also risen
drastically as the new processes have
become standard. All employees in
the area are participating and have
been eagerly involved in tracking
the improved metrics, which have
come as a direct result of their own
planning and participation.
environment, it is important for
Parker to be able to adapt quickly to
changes in the market and respond
efficiently to changing customer
needs. To address these complex
challenges, Parker has implemented
High Performance Teams (HPT)
throughout its global operations. This
structured approach to team work
and collaborative decision making
leverages the power of both leaders
and employees, driving improvement
in all aspects of the business.
Global Wellness Program
Parker recognizes that the health of
the company is critically connected
to the health of its employees and
has globalized its wellness program
which was launched in 2003.
The program focuses on wellness,
prevention and education. Current
efforts include establishing wellness
model sites, providing tools for
launching local wellness programs,
providing more comprehensive
educational opportunities for Parker
employees and expanding employee
treatment options to include
integrative medicine.
Wellness model sites have been
established at 19 Parker locations:
13 in North America, four in Asia,
and one each in Europe and Latin
America. These locations have at
least 100 employees, represent all
of Parker’s business groups and
serve as a best practice model for
other locations. Each model site
has a Parker business leader who
is a champion of wellness, a HPT
focused on wellness and access to
a local integrative medicine service
provider for assistance.
Parker’s HPT program is used
as a tool for launching wellness
programs at Parker facilities focused
on the areas of nutrition, exercise,
prevention and stress management,
to positively impact employee health.

8
These teams are developing tailored
programs that address specific
areas of health risk identified among
employees at their facility. As these
programs prove successful, Parker
will be able to create standard
implementation plans and identify
service providers for use across the
organization.
Aligned with Parker’s support of
expanding employee options in
treatment and preventive medicine,
Parker has established a network
of integrative medicine practitioners
whose services are covered under
the company’s Wellness and
Preventive Medicine Plan, including
a network of practitioners who
administer specialized cancer
treatments.
Going forward, Parker’s Corporate
Wellness Team will develop a
guidance and assessment tool
for implementing wellness programs
and continue to develop educational
materials around some of the key
program initiatives such as diet,
nutrition, stress management and
exercise.
Diversity and Inclusion
Diversity at Parker means
embracing the differences that
exist in all stakeholders, including
employees, customers, suppliers
and communities worldwide. It
means more than just gender, race,
ethnicity or nationality differences.
It also includes characteristics such
as culture, religion, experience,
educational background, functional
expertise, age, thinking style, sexual
orientation and disability. Parker is
committed to building a diverse,
inclusive workforce that not only
respects the unique perspectives
and contributions of each individual,
but truly values their differences
as an asset to the organization.
Parker’s ability to leverage diversity
and build an inclusive culture is
key to remaining a premier global
organization.
Parker sees diversity and inclusion as
more than just policies or practices.
They are important elements of the
company’s identity and strategy.
Seeking to develop and sustain a
diverse and inclusive workforce is a
commitment undertaken in order to
best serve all of Parker’s customers
by attracting, developing and
retaining the best and brightest talent
worldwide.
Parker’s diversity and inclusion
strategy is led by the Employee
Empowerment Council. The strategy
to support a culture of inclusion
and diversity is built on three
pillars: Leadership and Ownership,
Awareness and Cross-cultural
Competence, and Structure and
Inclusive Processes. Parker is
expanding awareness of this topic
through communication to the
entire employee population and
implementing training globally.
Additionally, the company’s
globally administered Employee
Empowerment Survey consists
of questions that allow Parker to
continue to gauge its progress in
this area, and to develop continuous
improvement strategies as the
company learns from employees
through focus groups and surveys.
Social Responsibility
Parker employees around the world
give back to the communities in
which they work and to organizations
that make the world a better place.
In fiscal year 2013, Parker and its
employees gave millions of dollars
to hundreds of organizations, and
more than 20% of employees
donated time and effort to their local
communities.
Many of Parker’s manufacturing
facilities are located in rural areas and
there is often a close link between
the facility and the community.
Parker values this relationship as it
is vital to the company’s success as
well as the community’s.
In the U.S., Parker employees
provide tremendous support to the
United Way with $900,000 pledged
in calendar year 2012. Parker also
has established close ties with more
than 100 colleges globally through
scholarships, labs and endowments.
Further, in fiscal year 2013, the
Parker Hannifin Foundation donated
millions of dollars to charitable efforts
around the U.S.

9
CASE STUDY
Weight Loss Program
Dublin, GA, U.S.A.
Parker’s Control Systems Division
in Dublin, Georgia has launched a
weight loss program to provide the
resources, motivation and support
needed to help employees lose weight
and maintain a healthy lifestyle.
The program is structured around
a simple points system, and
participants are provided training
to learn about the values assigned
to various foods and beverages, in
addition to the points earned for
exercise and physical activity. Each
individual is assigned a final point
target based on a comprehensive
health assessment before starting
the program, with specific milestones
designed to help employees stay
on track as they work toward their
weight loss goal.
Throughout the 13-week program,
which has been offered by the
division three times during the past
year, progress is measured through
a series of weekly weigh-ins. This
structure rewards employees by
regularly demonstrating the results
of their hard work and provides
motivation to continue to improve
their health.
This year participants lost a combined
400 lbs (181 kg) by maintaining their
commitment to the program, greatly
improving their physical well-being
and reducing the risk of health
complications.
Employees have expressed their
appreciation for the accountability
and support provided by their peers,
and are grateful for the lasting impact
the weight loss program has made on
their lives.
CASE STUDY
Volunteerism Program
Hollis, NH, U.S.A.
While Parker has a spirited history of
donating time, money, food, clothing
and other resources to support local
charities, the Precision Fluidics
Division in Hollis, New Hampshire;
Mooresville, North Carolina; and
Pinebrook, New Jersey are leading
the way in ensuring the opportunity
to volunteer is accessible to all
employees.
Through their Volunteerism Program,
the division enables employees to
become involved with a non-profit
organization by compensating them
for up to eight hours of volunteer time
each year.
The list of eligible organizations is
tailored to address pressing needs
in the community, but suggestions
are encouraged to help identify,
and include, organizations relevant
to employees’ specific interests.
Participants may choose from
programs supporting a diverse set
of humanitarian initiatives, including
education, food banks, veteran
support, homeless shelters and youth
art programs.
As participation continues to increase,
the division may expand the number
of hours available for employees
to volunteer, and will explore other
opportunities to increase the impact
of their actions in the community.
Precision Fluidics Division employees
are proud of the difference their
hard work has made through the
Volunteerism Program, and grateful
to be able to contribute directly to the
well-being of their local community.
CASE STUDY
Girls Youth Basketball Club
Sadská, Czech Republic
For over a decade, Parker has
sponsored the girls youth basketball
club at the Sadská Primary School
in Sadská, Czech Republic, helping
to teach the children the importance
of teamwork and perseverance at an
early age.
The club has grown from humble
beginnings since it was founded in
2001, when the only place the team
could practice was the court at a local
gym. When that facility closed the
club found another to use, refusing
to let any setbacks halt the progress
they had made. After several years a
gym was constructed at the school,
providing the club with not only a
home court on which to practice and
compete, but a new sense of purpose
and determination.
The club has continued to expand
each year and there are currently over
100 girls who participate, ranging in
age from six to 16, as many join in
elementary school and continue to
play through their teenage years.
Through their hard work and
determination, the club has reached
a number of significant milestones
in recent years. Individual teams
within the club were honored by a
third party organization with a Best
Regional Sports Team award in 2009
and 2011. The club won several
international tournaments, in addition
to a silver medal at the Czech Youth
Basketball Championship in 2011,
and is now recognized as an official
sports center alongside the leading
professional programs in major cities
throughout the country.
Parker is proud to support the Sadská
Primary School girls youth basketball
club, and is grateful for the impact the
team has made on the children and
the community.

CASE STUDY
All Charities Campaign
Winnipeg, Canada
The official motto of the city of
Winnipeg, Canada is a Latin phrase
that translates to “One with the
strength of many.” The expression
evokes a sense of commonality and
togetherness, and is clearly reflected
in the actions of employees at
Parker’s Electronic Controls Division.
For each of the last 14 years,
the division has held weeklong
campaigns to raise money for local
charities. The fundraising events
include luncheons, prize raffles and
other contests.
Parker matches employee
donations, dollar for dollar, and
this year employees demonstrated
their tremendous generosity
by contributing $50,000. With
the company’s match, a total of
$100,000 was distributed among
local charitable organizations.
Employees are encouraged to direct
their donation to any registered
charity they wish to support, so each
year the campaign helps to provide
members of the community with a
range of vital services.
The staff at each receiving
organization has continually
expressed sincere gratitude, as their
work would not be possible without
the support of local individuals and
businesses.
Electronic Controls Division
employees are grateful for the
opportunity to give back to the local
community, and proud to work
for a company that shares their
commitment to charitable giving.
Arts
10%
Health
15%
Civic/Community
25%
Education
50%
The Parker Hannifin Foundation
Focus Areas
10

11
The Planet
Environmental Stewardship
At Parker, environmental stewardship
focuses on conserving and recycling
resources within the company’s
footprint. Parker initiated efforts in
this area in the 1990s when the U.S.
Government defined hazardous
waste reduction and the elimination
of target chemicals under the U.S.
Environmental Protection Agency’s
(EPA) “33/50” program. Through
these efforts, Parker reduced the use
of chlorinated solvents by greater
than 90% and eliminated over 80%
of its U.S. EPA-listed hazardous waste.
In calendar year 2004, Parker
expanded its focus to include
electricity and natural gas use and,
to date, has reduced this footprint by
more than 52% as indexed to sales.
Another aspect of environmental
stewardship is the appropriate
remediation of properties from past
pollution or chemical management
practices. Today, many of the sites
the company is remediating were
acquired, and the pollution occurred
prior to Parker’s ownership. However,
Parker strives to clean these sites up
to applicable local standards.
In the future, Parker will look for
additional opportunities to reduce the
use of resources such as packaging
materials, and to decrease raw
material waste and non-hazardous
waste. Further, Parker believes there
is additional opportunity related to
substances of concern.
Environmental Management
Resource conservation is practiced
daily at all Parker manufacturing
facilities, with the objectives of sound
waste management and source
reduction practices and recycling.
In meeting that commitment, Parker
has a public policy for environmental
management which includes
provisions to minimize resource use
as well as impact on the environment
to the extent reasonable. This
translates into internal procedures
for sound waste management,
waste minimization efforts and
environmental management systems.
• Over 50% of Parker’s global
operations are ISO 14001
certified.
• Parker recycles over 80% of
the waste generated from its
manufacturing operations.
• Parker aims to minimize water
use in its operations.
• Parker has been able to largely
eliminate highly hazardous
substances, such as chlorinated
solvents, cadmium and
hexavalent chromium, from its
products and processes.
Future efforts will be to further
evaluate water, packaging and
electronic waste and to identify other
opportunities in waste minimization
and recycling.
Energy Management
Parker encourages its employees
to suggest ideas for improving
processes, such as optimizing
energy efficiency and reducing
carbon emissions. Employees are
empowered to make decisions and
drive change within the company’s
energy management program.
The program involves business
unit targets and action plans and
is managed and supported by a
corporate energy leader. Each Parker
division keeps an up-to-date energy
action plan which is used to meet
Parker’s yearly energy reduction
targets.
Each division also has an energy
leader who guides engagement
across their division. Since the
program’s inception, Parker has
provided training to help these
leaders identify energy resource
reduction opportunities.
Since calendar year 2004, Parker’s
energy use, as measured by its
energy index (MWh/USD Sales), has
decreased by 52% while sales have
increased from $7.4 billion to $13.1
billion over this same period.
Indexed to sales, Parker’s energy use
has decreased by 10% in calendar
year 2012 compared to calendar year
2011. On an absolute basis, Parker
decreased its energy use by 93,000
MWh, or 6%, compared to the prior
calendar year.
Since calendar year 2004, Parker
has reduced the total amount of
greenhouse gas (GHG) emissions
generated by its operations by 4%
from 697,171 metric tons to 670,814
metric tons, while revenue has
increased over 80% during the same
time frame. Indexed to sales, Parker
lowered its GHG emissions by 43%
over the same period and by 7%
from calendar year 2011.
Parker also participates in the U.K.
Carbon Reduction Commitment
(CRC), which taxes its operations
directly on the use of energy using
emission factors to calculate GHG
emissions. Parker is not regulated
directly on any other carbon or
climate regulation or standard. Parker
recieved a ranking of 139 out of
2,097 participants in the 2011/2012
CRC league table in the U.K.
Environmental Liabilities
Parker is currently responsible
for environmental remediation at
various manufacturing facilities,
presently or formerly, operated by the
company and has been named as a
“potentially responsible party,” along
with other companies, at off-site
waste disposal facilities and regional
sites.
As of June 30, 2013, Parker had
a reserve of $12.5 million for
environmental matters, which are
probable and reasonably estimable.

12
This reserve is recorded based upon
the best estimate of costs to be
incurred in light of the progress made
in determining the magnitude
of remediation costs, the timing and
extent of remedial actions required
by governmental authorities and
the amount of Parker’s liability in
proportion to other responsible
parties.
700
600
500
400
300
200
100
0
Scope I and II Greenhouse Gas Emissions
Measured in Thousand Metric Tons
2004
Baseline
2009 2010 2011 2012
100
80
60
40
20
0
Carbon Disclosure Project Scores
2009 2010 2011 2012 2013
250
200
150
100
50
0
MWh/USD Sales
Parker’s Energy Index = Total Energy Used (MWh Equivalent)/
Total Net Sales (Millions of Dollars)
2004
Baseline
2009 2010 2011 2012
Calendar Year
Calendar Year
Calendar Year

13
CASE STUDY
Cardboard Reduction
Lincolnshire, IL, U.S.A.
While Parker has made significant
progress in efforts to improve the
sustainability of its manufacturing
operations and reduce resource
consumption at facilities around the
globe, packaging represents a new
and exciting opportunity to minimize
environmental impact.
This potential was recognized
by employees at Parker’s Hydraulic
Cartridge Systems Division in
Lincolnshire, Illinois, who set out
to eliminate the use of cardboard
throughout their tube assembly
department.
The division was using hundreds of
boxes each month to send tubes for
plating or brazing. The packages
were often soaked with oil by the
time the tubes were shipped back
and reached the production lines for
final assembly, with occasional leaks
creating potential safety hazards.
With the aid of valuable employee
input, a solution was devised to
transition from the cardboard boxes
to reusable plastic containers,
which were custom designed to fit
the standard quantities and sizes of
the tubes.
In addition to the benefits of improved
safety and increased operational
efficiency, each year the reusable
plastic containers save the division
approximately $40,000 and eliminate
more than 2,000 cardboard boxes
from the waste stream.
The solution has created a positive
impact on the environment and
sets an example for manufacturing
facilities around the world, reinforcing
Parker’s focus on natural resource
conservation.
CASE STUDY
Battery Recycling
Cleveland, OH, U.S.A.
In the global campaign to recycle
precious resources and minimize the
amount of waste sent to landfills,
it is often the smallest changes
in behavior that offer the largest
potential impact. Such was the
philosophy behind an employee-
driven battery recycling program
recently initiated at Parker’s global
headquarters, in Cleveland, Ohio.
It’s a simple, typically thoughtless
act, pulling the spent batteries out
of an electronic device and tossing
them into the trash. Most people do
not stop to consider where these
batteries will end up, and the effect
of their harmful chemicals on the
environment.
Rather than discarding them, Parker
urges employees to deposit their
batteries into collection bins located
in each department and common
area throughout the corporate office.
Every three months the contents are
picked up by a local company that
specializes in handling electronic
waste. All scrap is sorted and
dismantled at a state-of-the-art
facility, and reusable materials are
distributed for manufacture into a
wide variety of new products.
Parker employees collected roughly
300 lbs (136 kg) of batteries for the
first pickup and more than 700 lbs
(317 kg) for the second, preventing
over 1,000 lbs (453 kg) of hazardous
materials from reaching the landfill in
just a few months.
Future plans will aim to widen the
scope of the program to include
other forms of electronic waste and
introduce collection campaigns at
Parker facilities around the world.
CASE STUDY
Energy Conservation & Recycling
Cachoeirinha, Brazil
Many Brazilians take pride in the
natural beauty of their country and
the substantial measures utilized to
preserve it. Employees at Parker’s
facility in Cachoeirinha are no
exception.
The team has recently initiated a
new strategy to reduce energy use,
minimize waste generation and
increase recycling at their facility.
Employees have taken action by
establishing procedures to turn off
all lights at the end of each shift,
installing capacitors for various
equipment and machines to reduce
their energy consumption, and
replacing aging light fixtures with
highly efficient LED lamps.
These practices have drastically
reduced electricity consumption at
the facility, and resulted in savings of
approximately $16,000 per month.
Employees also have created a
comprehensive system for waste
disposal, with signs and separate
containers placed throughout the
building to promote recycling and
eliminate excessive waste.
The actions of Parker’s employees in
Cachoeirinha not only increased the
efficiency of their operations, but have
also demonstrated their commitment
to environmental sustainability.

14
Beyond improving functionality to
more effectively meet the needs
of the customer, a central aspect
of product innovation at Parker is
adhering to sustainable engineering
practices which aim to minimize
environmental impact throughout all
stages of the product lifecycle.
Parker realizes that its goals
of creating customer value
and optimizing environmental
sustainability are not mutually
exclusive, and has strived to
maintain its position at the forefront
of ecological product design for
decades.
Instances of sustainable leadership
are scattered throughout the
company’s history, as Parker
was one of the first companies
to eliminate the use of hexavalent
chromium and cadmium, and has
largely removed chlorinated solvents
from its manufacturing processes.
Product
Stewardship
CASE STUDY
Global Vehicle Motor
Regardless of size, type or
application, all disciplines of vehicle
design follow a simple principle:
reducing energy demanded from
the engine will decrease fuel
consumption and emissions.
With this fundamental concept
in mind, Parker has leveraged
decades of motor engineering and
manufacturing expertise to launch
a new line of high performance
motors for use in hybrid and electric
vehicles.
The primary function of the Global
Vehicle Motor (GVM) is to use
electrical energy, typically stored
in battery packs, to perform
functions that would otherwise be
mechanically driven by the engine.
In this configuration, power from the
motor can be used to operate such
functions as braking, power steering
and air conditioning.
In a hybrid vehicle, the additional
power from the GVM enables
manufacturers to downsize the
conventional engine, significantly
reducing fuel consumption and
emissions. With the ability to
provide full torque immediately
upon engagement and operate
with high efficiency at all rotational
speeds, the motor can even be used
to provide additional power and
acceleration in performance hybrid
vehicles.
The GVM can also replace a
standard gasoline or diesel engine
altogether, converting energy to
motion in all-electric vehicles
ranging from motorcycles and small
cars to heavy-duty trucks and buses.
By providing a scalable solution
to reduce fuel consumption and
emissions across a limitless range
of applications, the Global Vehicle
Motor is leading the charge into the
future of sustainable transportation.
As Parker continues to build upon
this legacy, the company will
continue to introduce new products
and systems which will expand
the bounds of performance and
sustainability.
The work of Parker’s engineers is
never complete, as they relentlessly
explore and uncover new ways
to improve efficiency, decrease
weight, save space and reduce
energy consumption, all in the
name of improving performance
for customers and preserving the
environment for future generations.

15
101 Smart Products
View additional examples of
Parker innovations that are
creating a more sustainable
future and making our world a
better place to live. “Sustainable
Business: 101 smart products
from the global leader in motion
and control technologies.” is
available by scanning this tag
or visiting:
www.parker.com/smartproducts
CASE STUDY
Frequency Controlled
Hydraulics
By applying variable speed drive
technology via integrated frequency
inverters, Parker is partnering with its
customers to improve efficiency and
reduce the energy consumption of
hydraulic systems across a range of
industrial processes.
An unregulated electric motor,
such as one supplying power to a
hydraulic pump, operates at a fixed
level to produce a consistent power
output, despite the fact that demand
is cyclical and any excess energy
generated is simply wasted.
By seamlessly adapting a pump’s
speed to changes in energy demand
and reducing output during periods
of low demand, Parker frequency
inverters significantly diminish the
average power need of an industrial
system.
The use of a frequency inverter
improves the efficiency of industrial
systems regardless of power
source – be it oil, gas or electricity –
and reduces wasteful energy
consumption, operating costs and
emissions produced in the process of
generating the source energy.
With a simple, compact design easily
integrated into diverse industrial
systems, Parker’s frequency inverters
also help to reduce hydraulic oil
consumption and noise levels and
extend the life of the electric motor
and hydraulic components.
The frequency inverters are
compatible with standard pumps and
motors, creating significant value for
Parker’s customers, with the potential
to reduce the environmental impact
of industrial operations around the
world.
CASE STUDY
Bath Sensing Module
Parker’s bath sensing module is a
monitoring system which improves
productivity and reduces the emission
of harmful pollutants in large-scale
aluminum smelting operations.
Smelting plants typically contain
hundreds of pots, inside of which an
electric current initiates the process
by which aluminum is extracted and
refined. Pneumatic cylinders are used
to break up the hardened material
which forms atop the molten ore.
This conventional system provides no
feedback as to whether the cylinder
successfully penetrated the top layer
and cannot indicate when residual
material builds up around the tip
of the cylinder, preventing it from
functioning properly.
Beyond requiring maintenance and
causing unacceptable levels of
machine downtime, these issues
contribute to the increased production
of toxic greenhouse gases.
Parker’s bath sensing module retracts
the cylinder at the precise moment
it makes contact with the molten
aluminum. This significantly reduces
energy consumption and decreases
the temperature of the chisel tip,
making it difficult for hardened ore to
build up over time.
The bath sensing module also
extends the life of the pneumatic
cylinder chisel and the pot itself by
reducing the temperature inside, and
has proven adept at operating in the
harsh conditions characteristic of
aluminum smelting systems.
Applying advanced sensor technology
and reliable monitoring capabilities,
Parker’s bath sensing module
contributes to the future of
sustainable aluminum production.

PS-2036 March, 2014© 2014 Parker Hannifin Corporation
Parker Hannifin Corporation
Rick Taylor, Corporate Vice President EHS
6035 Parkland Boulevard
Cleveland, OH 44124
phone 216 896 3000
rtaylor@parker.com
www.parker.com
10%
The data and information presented is a compilation of information reported into the corporate office from more than 100 business units worldwide. Data is not independently validated but is internally checked for significant deviation from expected results.

Parker 2013 Sustainability Report | Parker Hannifin

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