Solving water challenges is a never-ending mission, and we are working to ensure our company is built to endure the long road ahead. We operate our business responsibly, guided by high standards of governance, fostering a culture that is focused on achieving financial growth in an ethical, sustainable and compliant manner.
The foundation of Xylem is based on our four core values: respect, responsibility, integrity and creativity. Through Code of Conduct training, Xylem employees gain a deep understanding of these core values and the types of behaviors, actions and decisions that will enable them to support these company values. Every other year, we conduct global Code of Conduct training for all employees, and we provide training to all new employees and to targeted locations throughout Xylem on a continuous basis.
A critical component of our mission to create an enduring company is a commitment to pursue sustainable innovation. Whether innovation comes in the form of new products, services or even business models, this process of continuous improvement provides us with a competitive advantage and opens the door to forging new partnerships that bring us closer to emerging water issues.
Following are certain full-year financial results. Our complete 2015 financial results* can be found here:
In 2015, Xylem transitioned its production of new mobile Godwin brand dewatering pumps in the U.S. to meet new Tier 4 emission standards. The standards, issued by the U.S. Environmental Protection Agency, require diesel engines that emit significantly lower particulate matter and nitrogen oxides. As one of the world’s largest provider of rental and for-sale portable, diesel-powered dewatering pumps, Xylem’s adherence with the new standards positions us for more and bigger jobs.
Strong Governance Practices.
In the past year, Xylem began the transition to annual terms for its directors and, following shareholder outreach, adopted “proxy access.” Proxy access is a mechanism that gives certain company shareholders the right to nominate a qualified director candidate on the company’s proxy card to be voted upon by the shareholders as part of the annual shareholder meeting. With both of these practices, Xylem’s board of directors continues to demonstrate its commitment to transparent and responsible governance practices.
Building Employee Loyalty to Xylem.
Employee retention and engagement is a vital element in building an enduring company. With our new Career Frameworks tool, employees now get detailed direction from their managers about the competencies they need to succeed in their current job or to be considered for the next step in their career journey within Xylem. In 2015 Xylem provided two types of training to help managers engage their employees in the Career Frameworks program. During the year, approximately 75 percent of all Xylem managers took part in technical training on how to use Career Frameworks and/or training on how to operate as a coach when having development discussions with their employees. We have also designed a Building a Culture of Continuous Improvement program to drive a “productivity for growth” mindset within Xylem. In 2015, 139 members of our Extended Leadership Group and 31 Subject Matter Experts participated in the program.
We are committed to meeting our customers’ needs and expanding the markets we currently serve. One way we can accomplish this is by enhancing our current offerings with complementary solutions and intelligent full-systems capability. This year we activated our acquisition strategy and acquired Hypack - whose ocean and coastal management solutions and application expertise supports our strategy to acquire businesses that complement our global analytics portfolio. Hypack is a leading provider of hydrographic survey data acquisition, processing, and visualization software.
Xylem strives to be part of the solution in countries where the water crisis is at a critical stage — and where we can make an immediate and lasting difference.
In April 2015, Xylem was invited to participate in the U.S. Presidential Trade Mission to the People’s Republic of China. Xylem executives accompanied senior leaders from 25 other companies on this weeklong “Smart Cities — Smart Growth Development Mission.” Visiting Beijing, Shanghai and Guangzhou, Xylem executives had the opportunity to meet with government officials and business leaders to discuss opportunities to provide Chinese communities with sustainable products and services, such as clean air and water technologies, smart buildings, green data centers, energy efficient technologies, waste treatment technologies, smart grid and green transportation.
Just prior to the Mission, state media in China reported that the government was committing $330 billion to implement an action plan to combat pollution of its increasingly scarce water resources. “We are very encouraged by the Chinese government’s commitment,” said Xylem President and CEO Patrick Decker. “With a long history of operating in China and a strong local presence, we will continue to invest our time and resources to accelerate research and partner with local communities to solve their water challenges.”