Sustainability, the concept of being profitable without compromising our future, has become increasingly important to our shareholders, customers, employees and communities in which we operate. This report, which covers fiscal year 2012, highlights achievements and progress made in the area of environmental stewardship, product stewardship, social responsibility and employee empowerment, safety, wellness and diversity. The report is available electronically on www.parker.com under the About Parker section (LINK TO REPORT). http://www.parker.com/parkerimages/Parker.com/About%20Us/Literature/Parker%20FY12%20Sustainability%20Report.pdf

1. 2012 Sustainability Report
Making a Meaningful and Positive Impact on the World

2. About this Report
The information in this report
addresses how Parker is making
a meaningful and positive impact
on the world by applying its
core technologies and creating
exciting growth potential. All data
corresponds to Parker’s fiscal year
2012 (July 1, 2011 through June 30,
2012) unless otherwise noted. The
last report published corresponded
with Parker’s fiscal year 2011.
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
more than a 50 percent 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
Table of Contents
About Parker ............................................ 2
Message from the Chairman,
CEO and President .................................... 4
Sustainability ............................................ 6
Governance and Compliance..................... 8
Product Stewardship .............................. 10
Environmental Stewardship .................... 14
Parker People ......................................... 16
Social Responsibility ............................... 20
1

3. About Parker A Meaningful and
Positive Impact on
the World
With approximately 60,000 people
in 48 countries around the world,
Parker can be found on and around
everything that moves. Parker is the When you view the world as
global leader in motion and control Parker does, through the lens of a
technologies, providing precision- broad range of motion and control
engineered solutions for a wide technologies, you can see a vast
variety of mobile, industrial and number of engineering challenges.
aerospace markets.
By applying decades of technological
For fiscal 2012, Parker had annual expertise, Parker is not only
sales of $13 billion. Parker is a developing solutions to these
company with a deep rooted belief challenges, but making a meaningful
that premier customer service and difference in our lives.
engineering spirit will sustain success
going forward. Further, Parker The search for more efficient ways
realizes that a sustainable company to deliver power from traditional
is one that has an ongoing need, energy sources; the development
and obligation, to manage natural of wind, solar and a host of other
resources efficiently, attract and renewable energy platforms; the
retain talented employees, engineer desire to produce and distribute
products that will help the world clean water; new drug discovery
thrive and support the communities and medical advances; the building
in which Parker operates. of infrastructure and transportation
to support a developing world;
Parker’s employees bring it all the safe cultivation, transportation
together, partnering with customers and preservation of food sources;
to help solve some of the world’s emerging needs and developments
greatest engineering challenges. in defense; and the protection of
the environment.
These challenges create
opportunities that push the bounds
of Parker’s capabilities. It’s what
drives Parker people forward –
seeking new ways to innovate
by combining technologies,
collaborating, developing systems
and partnering with customers. In
doing so, Parker creates exciting
growth potential and makes
significant contributions to the
world, for this generation and for
generations to come.
2 3

4. Message from
the Chairman, CEO
and President Financial Highlights
The principles of sustainability
are deeply rooted in Parker’s 95 Operating Data 2012
year history. These principles are Net sales .................................................................................................................................................. $ 13,145,942
maintained today by our adherence Gross profit .............................................................................................................................................. 3,187,605
to a set of core values that promote Net income attributable to common shareholders .................................................................................... 1,151,823
a winning culture grounded by Net cash provided by operating activities ................................................................................................. 1,530,385
integrity, honesty and respect, and
our aspiration to raise the standard Per Share Data
of living through responsible, global Diluted earnings ....................................................................................................................................... $ 7.45
stewardship. Sustainability is also Dividends ................................................................................................................................................. 1.54
embedded within our operating Book value ............................................................................................................................................... 32.72
framework, the Win Strategy, which
emphasizes premier customer
service, operational excellence
that reduces our costs and
environmental impact, and innovation Examples of our sustainability efforts The Win Strategy
in new product development for a in the past year include: Built on long established Parker goals of premier customer service, financial performance and profitable growth,
better world. All this is supported the Win Strategy is a disciplined and consistent business strategy that has transformed the company and improved
by empowered employees who • Introducing new, innovative • Strengthening environmental operations worldwide since it was initiated in 2001. Designed as an instrument of operational change, the Win Strategy
make our organization and the products such as the Parker protection through continued is a powerful document adopted by all Parker locations worldwide.
communities in which we operate a RunWise System that reduces waste management, waste
better place. fuel consumption up to 50 minimization efforts and Empowered employees represent the foundation of Parker’s strategy and the key to sustained success, as they have
percent and lowers a single environmental management remained steadfast in their dedication to the strategy’s implementation. Empowered employees work to execute the
Within this report for our fiscal truck’s emissions by up to 48 systems. Win Strategy by taking responsibility, accepting accountability for results and supporting a culture of respect for the
year 2012, you will get a complete tons per year, making the contribution of every person.
understanding of sustainability at drive train more efficient and • Supporting employee
Parker. You will find examples of contributing to a greener volunteerism in their local
how Parker products are having a environment. communities.
meaningful impact on the global
environment and on people as we • Using lifecycle assessment and Every day Parker employees around
Parker's Win Strategy
direct our technologies to solving material optimization to give our the world, in the 48 countries where
the world’s greatest engineering customers a selection of product we operate, are striving to drive our
challenges. When we integrate that offers premium performance company forward, partnering with Vision The #1 Motion & Control Company
sustainability into our products and while minimizing environmental our customers to help them become
systems, we reduce our customers’ impact. more productive and profitable, and Goals #1 Premier
Customer Service
Financial
Performance
Profitable
Growth
environmental impact, improve along the way, have a positive and
our competitiveness and create meaningful impact on our world. It is
customer value. this drive and passion for excellence S ◆ Quality Products
on Time
◆ Suppliers: Strategic
Procurement
Internal
T Acquisitions Globalization
in all that we do that will sustain our R ◆ Value Added Services
A ◆ Operations: Lean
You will also understand some of the company beyond the next 95 years. T ◆ Best Systems - PHconnect
◆ Innovative Products
initiatives we have in place for our E ◆ Customers: Strategic
Pricing ◆ Systems Solutions
G
employees that ensure we create an I
empowered workplace that drives E ◆ European Initiatives ◆ Strong Distribution
S
our success. Don Washkewicz, Chairman, Chief Executive
Officer and President
4
March 2013 Empowered Employees 5

5. CASE STUDY CASE STUDY
Kirklees Excellence in the Parker Racor Super Impactor
Sustainability
Environment Awards 2012 BEEA Award
Parker manufactures products for Stakeholder Engagement
motion and control applications. Parker engages a number of The Parker Racor Filter Division Parker Racor Filter Division Europe
To be successful, the company stakeholders in the development of Europe took home a total of five was awarded the Grand Prix at
needs a supply of raw materials, its sustainability goals and objectives. awards presented at the Kirklees the British Engineering Excellence
the ability to attract talented people Contributing stakeholders include: Excellence in the Environment Awards (BEEA), which aim to promote
to design, make and sell the employees through a biannual Awards. The event, hosted at the the quality of engineering design
product and viable communities global survey; the management Cathedral House in Huddersfield, UK, within the UK. The Parker Racor
in which to operate. A shortage team through interviews and polls; recognizes businesses for their green Super Impactor crankcase ventilator,
or loss of any of these elements customers through direct feedback and corporate social responsibility a breakthrough in engine design, was
would jeopardize the company’s from the marketing and sales credentials. recognized for its ability to reduce
ability to sustain a successful and team, as well as selected phone diesel engine emissions. The device
prosperous organization. Each of interviews; and supply chain through Parker Racor’s Dewsbury location reduces the production of harmful
these aspects of operations have feedback in their compliance with has been a part of the community pollutants.
clear, sustainable parameters which the sustainability requirements for over a decade, and management
is why sustainability is a key element in Parker’s supply chain portal. recognizes the obligation to have Parker Racor’s project was the result
of Parker’s business model. Additionally, Parker analyzes a positive impact on the local of a collaborative partnership with
information from sustainability environment. This commitment is Leeds University and has taken a
Key Opportunities ratings/shareholder feedback and shared by all employees, and each multifaceted approach to design
There are a number of opportunities benchmarks with its industrial peer plays a part in contributing to the that emphasizes sustainability
associated with sustainability: group. division’s sustainability initiatives. throughout all stages of the product’s
lifecycle. The Super Impactor does
• Parker’s technological expertise The current engagement process The Kirklees Excellence in the not feature any rotating parts or
helps customers respond to their is informal. The stakeholders that Environment Awards recognize the electrical components, and it does
unique business challenges. By have been identified as most significant resources Parker Racor not require a filter, which would need
focusing on new products and important to Parker are the customer, has invested in waste reduction to be replaced annually in traditional
the sustainability of materials the employee, the supplier, the and education, pollution prevention, designs. It is even made from nylon
and resources, Parker minimizes shareholder/investment community, sustainable purchasing and PA66, a recyclable material that can
waste while providing high the management team and transportation reduction, as Parker be melted and reused at the end of
quality, cost-effective solutions competitors. These stakeholders finished third overall in the Green its life.
for customers. The opportunity were identified by evaluating the Business of the Year Award.
to differentiate products and requirements of the stakeholder The Super Impactor is compatible
rapidly adapt to changing needs against the importance and influence with a range of engines, as its
is a key opportunity. in which they impact the company. modular design allows engine
manufacturers to adapt the device
• A passion for innovation enables Two key areas of focus that have to their manufacturing processes.
Parker to have a meaningful been identified in Parker’s stakeholder With over 30 million diesel engines
and positive impact on solving engagement efforts have been: manufactured each year, the
some of the world’s greatest Super Impactor has the potential to
engineering challenges. • Need for additional emphasis on significantly reduce overall engine
product stewardship emissions.
• Parker employees are
continuously originating new • Need to have more visibility
ideas to make both the and opportunity to engage in
workplace and their communities community involvement
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.
6 7

6. Whether Parker is solving the world’s a formal follow-up process. The Labor Relations
greatest engineering challenges, responsible business or functional Parker has established a labor relations
delivering on world class customer leader must present a corrective action program, which is managed by the
service or supporting its communities, plan to senior leadership when a Vice President of Global Labor and
Parker strives to do what is important business or function receives an audit Employee Relations, and has
for the company and its stakeholders. grade signifying that the business or established global policies for human
function needs improvement. rights and labor standards. Parker is in
Parker is committed to the highest the process of deploying these policies
standards of ethical behavior and Parker management has embraced throughout the organization and
corporate conduct. Parker’s directors, Sarbanes-Oxley requirements, which providing appropriate education. The
officers and employees have a includes quarterly self-assessment policies largely align with standard ILO
responsibility to serve stakeholders in and reporting of key financial risks and UN Labor and Human Rights in
all aspects of their jobs with honesty, and controls by management, and is accordance with local laws and to the
fairness and integrity. Parker is augmented by ‘peer’ testing of controls extent in which they are consistent with
Parker’s Board of Directors
governed by an 11 member Board of at all Parker reporting locations. Parker’s Code of Conduct. Further,
Among Highest Rated for
Directors. Ten of the 11 directors are Parker is aligning current labor relations
Board Governance Capacity of
“independent” based on the applicable In fiscal year 2012, management language in the supply chain to the new
America’s Largest Companies
independence standards of the New completed peer tests of controls at 218 global standards.
York Stock Exchange and Parker’s locations (divisions, sales companies
Parker was ranked in the top
Independence Standards for Directors. and shared service centers), nine Reporting Violations
ten in all three evaluation
Parker’s Chairman, CEO and President, corporate departments and four IT Parker has established an Integrity
categories in The Weight
Don Washkewicz, is the only Parker centers. Line that is open to everyone, inside
of American Boards 2012
employee on the Board. or outside the company, to report
report, an independent study
Integrity and Ethics any concerns about possible illegal,
of America’s 500 largest
Each director must stand for election Parker believes that a sustainable unethical or improper conduct. The
companies conducted by
annually. The board has responsibility company is built on a foundation Integrity Line is administered in most
James Drury Partners. The
for overseeing the business and of good governance that promotes countries, includes a web-based
study measures the experience
affairs of the company. To meet ethical behavior at all levels. The reporting tool and allows callers the
and business acumen of board
Parker’s Board, visit www.phstock.com/ company took an important step in option of remaining anonymous. These
members. Parker’s Board
corporategovernance. its governance efforts in August 2012 numbers are available 24 hours a day,
was ranked #1 in the Average
by creating an Office of Integrity and seven days a week. Parker’s Enterprise
Director Weight category that
Audit and Internal Controls Ethics that is separate from Audit and Compliance Office treats Integrity Line
evaluates the experience and
Parker’s Audit and Compliance Office Compliance operations. The move was calls seriously and follows up on every
business acumen of each
is responsible for overseeing all internal made not in response to any problem, call received.
director on the Board and
investigations of suspected ethics but in recognition of the critical role
was ranked second in the
and compliance-related misconduct, that integrity and ethics play in the Enterprise Compliance
Composite Weight category
including violations of law or Parker’s success of a sustainable company. The Parker has an established, and
that assesses a Board of
Code of Conduct and related policies. company recently hired its first Vice continuously evolving, compliance and
Directors overall governance
The Audit and Compliance Office has President of Integrity and Ethics. ethics infrastructure. Parker’s Enterprise
Governance
capacity.
established processes and procedures Compliance Network consists of the
to ensure that all internal investigations Code of Conduct Board of Directors, Senior Parker
The final report included
are conducted by qualified personnel Parker’s ethics initiatives are built Leadership, Office of Audit and
& Compliance
evaluations of 4,564 directors
who have been trained to conduct around the principles in its Code of Compliance, the Legal Department,
sitting on the boards of 466 of
investigations lawfully, promptly, Conduct. Parker puts these principles local Compliance Officers and local
America’s largest companies,
thoroughly, professionally, fairly and into practice through a comprehensive Compliance Administrators. The Vice
and places value on current
confidentially. training regimen that is proliferated President – Audit and Compliance has
and past professional
throughout Parker, including annual a solid-line reporting relationship to the
achievements. Extra weight
The Vice President – Audit and training on the Code. Parker’s Code Chief Financial Officer and a dotted
was given to directors with
Compliance reports to the Audit of Conduct is an evolving document line reporting relationship to the Audit
accomplishments in high
Committee of the Board of Directors. that is updated periodically to respond Committee of the Board of Directors.
revenue organizations, noting
In fiscal year 2012, Internal Audit to changing conditions and to reflect
the complexity of corporate
completed 186 audits. Audit topics changes in law. Compliance Officers provide overall
governance in the largest
included anti-bribery, anti-corruption, leadership direction for Parker’s
companies. The fundamental
anti-trust, information systems security Parker’s Code of Conduct is available compliance program. They create the
premise is that director
and financial reporting. online at www.parker.com and is provided foundation for, encourage and stimulate
business acumen is the most
to employees globally in 14 languages a culture of compliance behavior
important factor in calibrating
To ensure management has addressed and is available to suppliers. throughout Parker. Compliance
governance capacity and
8 therefore maintaining
identified risks and implemented Administrators are individuals at Parker 9
corrective action, Internal Audit has locations assigned to specific areas of
shareholder value for the
compliance oversight.
most complex businesses in
America.

7. CASE STUDY CASE STUDY
Palletized Multi-function
Fuel Cell RunWise ®
In the airline industry, where Although nobody looks forward to a
passenger safety and aircraft good night’s sleep being cut short
reliability are paramount, changes by refuse trucks rumbling down
in aircraft design are implemented the street before sunrise, noise
only after careful consideration, pollution is far from the biggest
substantial research and intensive challenge facing the fleet of trucks
testing. Parker and partner Airbus that transport waste and recycling.
are at the forefront of one such Refuse trucks consume roughly
breakthrough, developing an 8,600 gallons (32,554 liters) of fuel
innovative aircraft system that utilizes each year and emit a significant
power generated by a palletized amount of greenhouse gases in the
multi-function fuel cell. process. Considering emissions and
fuel dependency are two major
From an environmental perspective, issues, refuse trucks emerged as
the multi-function fuel cell system an ideal place to start developing a
provides benefits in several ways. solution.
First, despite being fundamentally
Product
inefficient, it has long been standard Upon braking, Parker’s RunWise
practice to utilize an aircraft’s main system works seamlessly with the
jet engines during taxiing. The multi- refuse vehicle’s standard friction
Stewardship
function fuel cell system may provide braking system using pressurized
power directly to electric motor-driven hydraulic fluid to decelerate the
wheels which move the plane on the vehicle, while simultaneously
ground, significantly reducing fuel transforming and storing the vehicle’s
consumption and emissions, and kinetic energy in accumulators for
eliminating noise generated by the use when the vehicle starts moving
Product innovation at Parker is Parker has consistently introduced large engine turbines. again.
targeted at solving some of the products across a wide array
world’s greatest engineering of business segments that are The multi-function fuel cell system The system is able to capture and
challenges and is centered on the more energy efficient, weigh less also replaces the small engine reuse more than 70 percent of the
concept of designing products to and save space and energy; with located near the rear of the aircraft energy generated during braking,
meet the needs of the customer. significant focus on the reduction of known as the Auxiliary Power Unit which would otherwise be lost as
A new dimension to that core hazardous materials in products and (APU). The APU provides power to heat. The more stops a vehicle makes
competency is the concept of manufacturing processes. start the main aircraft engines, and during the day, the more efficient
integrating sustainable design generates electricity used to operate the system becomes relative to a
practices into the innovation process. Today, Parker is placing further accessories such as air conditioning conventional drive train.
Parker realizes that there are emphasis on this aspect of design. before the aircraft has taken flight.
aspects of its products in use and With the development of tools and Replacing the APU with a multi- The results are significant, as
end life that have impacts to the systems that identify and quantify functional fuel cell system will enable RunWise reduces fuel consumption
environment and recognize there product impacts in application, emission-free ground operation, up to 50 percent and lowers a single
are opportunities associated with Parker can develop products that drastically improving air quality in truck’s emissions by up to 48 tons
creating customer value. create value for the customer metropolitan areas where airports are per year. For perspective, this is
and reduce the impact on the located. equivalent to removing nine mid-
Parker has been a champion of environment. sized cars from the road, or planting
product design for the environment Parker’s multi-function fuel cell 1,100 trees and letting them grow for
throughout the company’s history. Parker Energy Systems system is anticipated to reduce fuel ten years. The system also reduces
Early on, Parker eliminated Parker has a business unit consumption and emissions up to brake wear, helping to minimize
hexavalent chromium and cadmium dedicated to innovating and 25 percent, providing a solution to maintenance and downtime.
from its industrial fittings. Recently, creating more energy efficient significantly increase the efficiency
Parker has largely eliminated and sustainability of the world’s By reducing fuel consumption and
10 systems as well as converting 11
chlorinated solvents from its conventional systems into airline fleet. emissions, RunWise is contributing to
manufacturing processes. renewable energy solutions. a greener environment.

8. Life Cycle Assessment for Compact Spiral ™ Hose CASE STUDY CASE STUDY Life Cycle Assessment for LIQUIfit ® Fittings
(Normalized to Max) (Parker Legris vs. Market Standards)
CC RMD
Compact Spiral Hose™ LIQUIfit ® Fittings
CE OD HWP ED
80 Parker’s Compact Spiral Hose is one At first glance, Parker LIQUIfit
of the most significant developments fittings look much like any other
60 in hydraulic hose technology in instant fitting on the market. It may
FD HT
decades. Developed by engineers at not be immediately apparent how WE WD
40 Parker’s Hose Products Division, the this particular fitting from Parker
Compact Spiral Hose has half the Legris is setting a new standard for
20 bend radius of conventional hoses sustainable design without sacrificing
with one-third less effort, reducing a performance.
MD PO customer’s hose needs by as much
as half. The outside diameter is nearly Further inspection would reveal the
30 percent smaller, enabling it to fit body and threads of LIQUIfit fittings WT GW
into tight spaces or even allowing are manufactured from a bio-based
a customer to increase a hose size polymer. This material, a unique
for better flow characteristics. It has bio-based high performance polymer
WD TA
twice the impulse life of other hoses, produced entirely from renewable
as well as a highly abrasion-resistant plants, eliminates the use of fossil-
cover, greatly extending time between based resources in manufacturing, AA OD
replacements and minimizing reducing carbon dioxide emissions up
FE FWE to five times in the process.
downtime.
Parker Legris
TE POC AT
Parker Compact Spiral Hose While it is certainly a revolutionary This bio-based polymer is perfect
Market Standards
product from an operational for water and beverage applications,
Conventional Hydraulic Hose perspective, the environmental offering both high mechanical
benefits of the Compact Spiral strength to endure demanding RMD Raw Material Depletion
Hose are equally impressive. performance requirements and ED Energy Depletion
CC Climate Change
Advancements in design and ensure long-term resistance, as WD Water Depletion
OD Ozone Depletion construction have contributed to a well as perfect chemical resistance GW Global Warming
HT Human Toxicity hose that utilizes 40 percent less to compounds such as chlorine,
OD Ozone Depletion
PO Photochemical Oxidant Formation material and weighs 25 percent chloramines, UV, alcohol and others.
AT Air Toxicity
TA Terrestrial Acidification less than a conventional spiral
hose, offering significant savings in Parker LIQUIfit fittings set the POC Photo Ozone Creation
FWE Freshwater Eutrophication
shipping and packaging costs. The standard for quality components AA Air Acidification
TE Terrestrial Ecotoxicity
weight reduction also significantly in water and beverage delivery WT Water Toxicity
FE Freshwater Ecotoxicity
improves efficiency, which reduces systems. These low-pressure WE Water Eutrophication
WD Water Depletion fuel consumption and emissions. fittings are available in a variety HWP Hazardous Waste Production
MD Metal Depletion These improvements equate to a 90 of shape and size configurations, 101 Smart Products
FD Fossil Depletion percent reduction in carbon footprint and are ideal for use in a range of View additional examples of
CE Cumulative Energy Demand (fossil) over the life of the hose. applications including point-of-use Parker innovations that are
water softeners and purification creating a more sustainable
With an incredibly diverse range systems, water heaters and coolers, future and making our world a
of applications stretching from industrial water treatment systems better place to live. “Sustainable
agriculture and construction to and beverage dispensers, offering Business: 101 smart products
injection molding, mining and oil field premium performance while from the global leader in motion
service, the long-term environmental minimizing environmental impact. and control technologies.” is
benefit of the Compact Spiral Hose available by scanning this tag
may be difficult to measure but is or visiting:
impossible to overstate. www.parker.com/smartproducts
12 13

9. Environmental CASE STUDY CASE STUDY
Stewardship Parker Canada Reduces Energy
Consumption By 15%
O-Ring “We Care” Scrap
Recycling Program
To take advantage of energy The Parker O-Ring Division’s Lebanon,
rebates and minimize their impact Tennessee plant receives over
Parker respects the needs of the Future efforts will be to further Parker’s Energy Index
on the environment, Parker Canada one million tons of raw production
communities in which employees evaluate water, packaging and 250 developed a plan to reduce energy materials each year, and after finished
live and work. This is exemplified electronic waste and to identify other
consumption and utility costs. products for customers are packaged
in the company’s long standing opportunities in waste minimization
and distributed, they are left with a
tradition of protecting the quality of and recycling. 200 A key opportunity to improve lighting large quantity of byproducts ranging
the environment. Parker’s products,
conditions was quickly identified by from metals, cardboard and skids to
services and manufacturing methods Energy Management Environmental Management
employees at the facility. Inadequate liquids, gases and hazardous waste.
reflect this concern and the belief Energy use awareness, legislation 150
Parker is currently involved in
lighting was contributing to problems
that what is good for the environment and increased costs have all environmental remediation at various
beyond rising costs, as employees To address the issues of rising waste
is good for Parker. Sound waste raised the importance of energy manufacturing facilities presently,
came forward to voice concerns disposal costs and the associated
management and source reduction reduction initiatives for manufacturing or formerly, operated by Parker and
100 regarding safety and quality control impact on the environment, Parker
practices, recycling and energy operations at Parker. has been named as a “potentially
due to outdated fixtures and bulbs. created the Waste Elimination and
conservation are Parker’s primary responsible party,” along with other
Cost Awareness Reward Everyone
sustainability objectives. Across the enterprise, Parker is using companies, at off-site waste disposal
50 The first step was to upgrade (We Care) program.
energy more efficiently and reducing facilities and regional sites.
from 400 watt metal halide bulbs
In meeting that commitment, Parker direct and indirect emissions of
to T8 fluorescent, which provide The objective of the We Care team,
has a public policy for environmental greenhouse gases (GHGs) globally. 04 05 06 07 08 09 10 11 0
As of June 30, 2012, Parker had
better lighting and utilize energy a cross-functional High Performance
management which includes Parker’s Energy Index = Total Energy Used (MWh equivalent) divided by a reserve of $11.9 million for
Total Net Sales (millions of dollars). more efficiently. The combination Team, is to analyze the plant’s waste
provisions to minimize resource use Results Carbon Disclosure Project environmental matters, which are
of improved bulbs and a new light stream and identify opportunities
as well as impact on the environment Since 2004, Parker’s energy use, probable and reasonably estimable.
80 fixture layout allowed for a reduced to generate income or alternative
to the extent reasonable. This as measured by its energy index This reserve is recorded based
number of total fixtures. uses for the byproducts that would
translates into internal procedures (MWh/Sales), has decreased by 47 70 upon the best estimate of costs to
otherwise be discarded.
for sound waste management, percent while sales have increased be incurred in light of the progress
Parker Canada took advantage
waste minimization efforts and 77 percent over this same period. 60 made in determining the magnitude
of energy rebates to adhere to a Last year, the We Care program
environmental management systems. of remediation costs, the timing and
50 two-year payback requirement generated more than $100,000 in
Parker Energy Policy extent of remedial actions required
in carrying out an overhaul of the revenue for the division, a combination
• Over 40 percent of Parker’s New for 2012, the Parker Energy 40
by governmental authorities and
lighting conditions, a project which of value added from scrap revenue
global operations are ISO Policy covers issues related to the amount of Parker’s liability in
started with the Parker Grimsby and the elimination of waste collection
14001 certified. energy reduction. The policy 30 proportion to other responsible
and Parker Milton locations but will and handling costs. Of the total
contains protocols for Parker division parties.
20 be implemented at Parker facilities byproducts produced at the facility,
• Parker recycles over 80 percent leadership, energy procurement,
across the country. To date, Parker 60 percent were recycled and just
of the waste generated from data collection, energy efficiency and Parker’s estimated total liability
10 Canada has achieved energy 40 percent were sent to the landfill.
manufacturing operations. energy/carbon reduction goals. for environmental matters ranges
08 09 10 11 12 0 from a minimum of $11.9 million to
reductions of over 1.2 million kilowatt The program also allows other Parker
hours per year, saving over $130,000 divisions to send scrap byproducts to
• Parker’s energy reduction efforts The Parker Energy Policy requires a maximum of $71.5 million. The
Bloomberg annually. the Lebanon facility for consolidation
have helped avoid over 500,000 each Parker division to nominate largest range for any one site is
and shipment to scrap purchasers.
metric tons of CO2 emissions an “energy leader” who is then 60 approximately $6.1 million. The actual
While utility costs were recently one
from direct and indirect energy responsible for implementing the costs to be incurred by Parker will
of the biggest issues facing Parker Despite the success of We Care, the
use. energy/carbon reduction at each be dependent on final determination
50 Canada, they now look forward to team is continuously looking for new
of their locations. These duties of contamination and required
their monthly bill as it solidifies the ways to expand and improve the
• Parker aims to minimize water include assisting in or identifying remedial action, negotiations with
40 results of their efforts to decrease program by developing a market and
use in its operations. reduction opportunities, prioritizing governmental authorities with
energy consumption. Through careful generating revenue from materials
opportunities and communicating respect to cleanup levels, changes in
planning and implementation, Parker that are currently unable to be
• Parker has been able to largely performance information to division 30 regulatory requirements, innovations
Canada was able to reduce lighting recycled.
eliminate highly hazardous management and employees. in investigatory and remedial
costs, improve working conditions
substances, such as chlorinated 20
technologies, effectiveness of
and decrease their energy use. With the We Care program, the O-Ring
solvents, cadmium and remedial technologies employed, the
Division is setting the precedent for
hexavalent chromium, from its ability of other responsible parties to
10 a recycling program that could be
14 products and processes. pay and any insurance or other third- 15
adopted by other Parker facilities,
09 10 11 12 0
party recoveries.
improving the company’s operations
and impacting the environment on a
global level.

10. Employee Empowerment enables the Win Strategy and creates
expectations for how employees work together. It is what
differentiates Parker and creates a competitive advantage by reflecting
Parker People
its unique values, promoting a structured approach to teamwork,
recognizing the contribution of all employees and holding employees
accountable for results.
Values
Parker’s core values center on a Winning Culture, Passionate People,
Valued Customers and Engaged Leadership. Deeply rooted in Parker’s Empowerment Workplace Safety All business units worldwide report lost workdays rate but it is only a
history, these are the principles that executive management model, Empowered employees are the The safety of employees is a Parker their accident rate monthly into the portion (35 percent) of the recordable
that guide employees’ behavior and define Parker employees. foundation of Parker and work priority. Parker works to provide management scorecard. From 2003 accidents rate. Results to date show
to support the Win Strategy by all employees with a safe and until 2010, the reporting metric was a greater than 75 percent reduction
Inclusive Culture taking responsibility, accepting secure workplace. Each of Parker’s accidents involving lost days of in lost workdays rate over a ten year
Diverse perspectives are important, contribute to Parker’s culture accountability for results and facilities around the world develops work normalized to 100 employees period and a 32 percent reduction in
and can help Parker develop unique solutions. The similarities and supporting a culture of respect for and administers its own safety per year. Starting in 2010, Parker recordable accident rate over a
differences among Parker people are valued and respected. the contribution of every person. and emergency plans to prevent switched the metric to all recordable three year period.
workplace accidents and injuries. accidents requiring medical treatment
High Performance Teams & Leaders In recent years, an Employee In the event of an accident, Parker beyond first aid. Parker continues to
Collaborative decision making and problem solving, through a Empowerment Council has been ensures injured employees receive monitor the accidents with
structured approach to team work, leverage the power of collective formed to bring greater clarity the care they need.
effort and individual ideas. and definition to what employee
empowerment means and to Parker introduced an enterprise-
Accountability coordinate a range of initiatives wide workplace safety
Parker’s employees are accountable for delivering the value and aimed at increasing the level of initiative in 2003.
results stakeholders expect. empowerment among leaders and Recordable Accident Rate
employees.
Elements of these principles and standards are embedded within
Recordable Accidents Recordable Accidents with Lost Time
Parker’s Code of Conduct, Parker’s Ethics Policy and are the
foundation to the Win Strategy. 3.0
Major global empowerment initiatives underway, or completed, include
2.5
the deployment of High Performance Teams, diversity and inclusion
training of leaders, the establishment and communication of Parker
Values and a comprehensive employee empowerment survey. 2.0
1.5
1.0
0.5
0.0
2009 2010 2011
16 17