Corporate Social Responsibility Report
Cooper Industries plc
Cooper Industries plc
5 Fitzwilliam Square
Dublin 2, Ireland
Administrative Headquarters
600 Travis Street, Suite 5600
Houston, TX 77002-1001
www.cooperindustries.com
To view this report online or to download a PDF, visit www.cooperindustries.com.
For more information, contact:
Mark Doheny
Director of Investor Relations
Cooper Industries
mark.doheny@cooperindustries.com
About This Report
The 2009 Cooper Industries plc Corporate Social Responsibility Report follows the release of
the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report. As Cooper’s second
corporate social responsibility report (CSRR), the 2009 CSRR represents Cooper through
calendar year 2009 unless otherwise stated. To develop the 2009 CSRR, Cooper adopted the
same scope, boundary and measurement methods that it used to develop the 2007 CSRR.
Cooper intends to continue releasing a CSRR on a biannual basis.
Cooper’s 2009 CSRR conforms to the principles outlined in the Global Reporting Initiative (GRI)
Sustainability Reporting Guidelines version 3.0 (G3). The GRI is a voluntary, internationally
recognized framework for sustainability reporting that allows organizations the opportunity to
measure and report their economic, social and environmental efforts in a consistent manner.
The GRI also offers a variety of application levels, which show the extent to which G3 guidelines
have been applied throughout the report and provide guidance on how organizations can
continuously improve their reporting. Based on an internal review, Cooper determined that this
report achieves a GRI C-level application.
Report Application Levels
GRI
Checked
B
B+
A
A+
Report Externally Assured
Third
Party
Checked
C+
Report Externally Assured
Mandatory
Optional
Self
Declared
C
Report Externally Assured
2002
In Accordance
Some statements in this report are forward-looking and relate to the manner in which Cooper
intends to conduct certain activities, based on management’s current plans and expectations.
The Cooper Industries plc 2009 Annual Report discusses important factors that could impact
whether any of the forward-looking statements materialize.
Corporate Headquarters
Cooper Industries plc
5 Fitzwilliam Square
Dublin 2, Ireland
Administrative Headquarters
Cooper Industries
600 Travis Street, Suite 5600
Houston, TX 77002-1001
713-209-8400
Mailing Address
Cooper Industries
P.O. Box 4446
Houston, TX 77210-4446
Website
www.cooperindustries.com
Credits
Strategy and Report Development: Burns & McDonnell / www.burnsmcd.com
Designed by Curran & Connors, Inc. / www.curran-connors.com
Cooper Industries is proud to be selected for inclusion in the highly respected socially
responsible stock index, FTSE4Good, and leading intellectual property index, Ocean Tomo 300.
For more information, contact Investor Relations.
TableofContents
2
LetterfromtheChairmanandCEO
3
4
AboutCooperIndustries
4
Markets Served
4
Cooper Industries Worldwide Locations
5
Financial Summary
5
Corporate Governance and Ethics
6
Cooper Business Units
7
Five Strategic Business Initiatives
Long-Term Global Trends
8
9
Environmental Policy and Accountability
10
Environmental Impact of Operations
12
Other Environmental Considerations
13
Case Study: Environmental Excellence Awards
16
17
EnvironmentalStewardship
Innovation
Customer Satisfaction
19
Case Study: Lighting Controls
20
Case Study: Empowering the Smart Grid
22
Case Study: LED
23
Case Study: Making Renewable Energy Possible
24
25
27
Employees
One Team, One Purpose, One Vision, One Strategy
Case Study: Employees Taking Charge
28
Community
30
GlobalReportingInitiativeIndex
1
LetterfromtheChairmanandCEO
To our customers, employees and
stakeholders around the world:
Since publishing our inaugural
corporate social responsibility
report (CSRR), we have weathered
one of the most challenging
economic periods in our Company’s
176-year history. Thanks to the hard
work of our employees, ethical
leadership and relentless focus on
the customer, we have successfully
navigated the most severe recession since the Great
Depression and have emerged stronger than ever. We
challenged ourselves to follow the mission to achieve
sustainable growth while also respecting people, communities
and the natural environment. Our future success will not only
be measured by our financial performance, but also by our
continued commitment to environmentally and socially
responsible practices.
As part of this strategic commitment to sustainability, I am
proud to introduce the 2009 Cooper Industries plc Corporate
Social Responsibility Report—our second, biannual CSRR—
which highlights Cooper’s business activities in 2009. This
report follows the Global Reporting Initiative’s Sustainability
Reporting Guidelines version 3.0 and achieves a C-level
application.
EnvironmentalStewardship
We strive to better understand the environmental impact
of our business operations, because our actions affect our
employees, customers, shareholders, suppliers and the
communities where we all live and work. Since 1995, we’ve
recognized efforts that positively impact our environment
through sustainable practices such as reducing energy
consumption, emissions and water use. We continue to follow
a formal, written environmental policy and have a strong
organizational structure in place to support the initiatives that
reduce our environmental impact around the globe. One such
initiative was the introduction of cleaner-burning fuels at
many of our facilities, including converting our largest U.S.
manufacturing facility in Syracuse, N.Y. to natural gas.
While we are proud of our progress and the external recognition
the Company receives—such as our ranking in the top 100
of Newsweek’s inaugural Green Rankings in 2009—we have
more work to do. For example, we recently partnered with an
experienced energy consultant to determine our greenhouse
gas inventory, which details our greenhouse gas emissions
and identifies opportunities for improvement.
Innovation
As a global manufacturer of electrical products through seven
distinct business units, Cooper has an extensive portfolio of
innovative energy-efficient products with the ability to affect
large-scale, environmental change. Our energy automation
solutions empower the Smart Grid by introducing electric grid
intelligence that enables utilities to reduce electricity demand
and overall environmental impact. Our LED technology,
lighting controls and occupancy sensors provide better light
quality to our customers while consuming less energy and
reducing the end user’s carbon footprint.
At Cooper, we continue to make significant investments in
sustainable technologies. In 2009, we opened the Cooper
LED Innovation Center in Peachtree City, Ga., as a facility
dedicated to the research, development and design of
proprietary LED and other advanced lighting technologies.
EmployeesandCommunity
Stakeholders who know Cooper are already familiar with the
Company’s longstanding commitment to our employees,
ethical business practices and community involvement. In
2009, we made nearly $1.9 million in charitable contributions
and supported it with community involvement across the
globe. Actions such as these support our continued inclusion
in socially responsible investment indices such as FTSE4Good
—a recognition that we believe is simply the result of Cooper’s
culture, which promotes an environment of doing things the
right way.
LookingForward
Cooper remains committed to leading the way to a better
tomorrow for our customers, our shareholders and our
communities. We will continue to limit the environmental
impacts of our operations; introduce innovative, sustainable
new products; and protect and develop our employees in
ways that will strengthen our legacy of being a socially
responsible corporation.
Kirk S. Hachigian
Chairman, President and Chief Executive Officer
2
Long-TermGlobalTrends
Four key, global trends—increasing electricity consumption, growing
demand for more energy-efficient products, continuing the global
infrastructure build-out, and needing to ensure the safety of people
at work and in their daily lives—significantly impact Cooper Industries’
business today and will continue to influence its business strategies
and practices in the future. Cooper’s portfolio of high-quality businesses
is uniquely positioned to respond to these global trends and to adapt
products and services to align with industry needs.
ElectricityDemand
To meet increasing electricity demand, Cooper is focused on improving the
efficiency, reliability and productivity of the electric grid through optimization
and automation. From transmission through distribution and, ultimately, to the
consumer, Cooper is helping utilities obtain more usable energy out of the existing
utility infrastructure by transforming it into the next generation of the electric grid,
the Smart Grid.
EnergyEfficiency
Preserving the planet is paramount. To assist customers in reducing energy
consumption and emissions, Cooper is committed to creating energy-efficient
products. Whether it’s LED technology, occupancy sensors, lighting controls or
power demand management products, Cooper leads the way to a better tomorrow
for customers and their communities.
GlobalInfrastructure
Cooper’s innovative products and solutions continue to play an instrumental role
in supporting the ongoing global infrastructure build-out. Cooper manufactures
products that are integral to advancing the transportation, energy, communication,
commercial and industrial infrastructure worldwide.
SafetyandProtection
Through a comprehensive suite of safety products and solutions, Cooper protects
people, buildings, plants and critical equipment across the globe every day.
Cooper is at the forefront of safety and notification systems as a leading supplier
of emergency lighting, fire detection systems, notification solutions, lighting and
workplace safety products.
3
AboutCooperIndustries
2009MarketsServed
Sales by End Market
(percent of revenues)
Industrial
Other
Commercial
Utility
Residential
10%
CooperIndustriesplc(NYSE:CBE)is a global manufacturer of electrical
products with more than 28,000 employees and manufacturing facilities
in 23 countries as of December 2009. Incorporated in Ireland, with its
administrative headquarters in Houston, the company had nearly 19,000
shareholders of record at the end of 2009. Founded in 1833, Cooper’s
sustained level of success is attributable to a constant focus on innovation,
evolving business practices while maintaining the highest ethical standards
and meeting customer needs. The company has seven operating divisions
with leading market share positions and world-class products and brands
including: Bussmann electrical and electronic fuses, Crouse-Hinds and
CEAG explosion-proof electrical equipment, Halo and Metalux lighting
fixtures, and Kyle and McGraw-Edison power systems products.
39%
22%
5%
24%
CooperIndustriesWorldwide
128
Manufacturing Plants
91
Sales Offices
32
Warehouses
7
Other Facilities
Countrieswithmanufacturingfacilitiesasof2009:Australia | Brazil | Canada | China | Colombia | Denmark | France | Germany | Greece | Hungary | India | Italy | Korea |
Mexico | Netherlands | Romania | Saudi Arabia | Spain | Switzerland | Sweden | Taiwan | United Kingdom | U.S.
4
FinancialSummary
2009
2008
2007
2006
2005
$5,069.6
$ 6,521.3
$ 5,903.1
$ 5,184.6
$ 4,730.4
Continuing income before restructuring and unusual items
425.2
630.8
582.8
484.3
391.1
Net income
439.1
632.2
692.3
464.0
163.9
($ in millions, except per share data)
Revenues
DilutedIncomePerCommonShare
Continuing income before restructuring and unusual items
$
Net income
$
2.61
Shares used in computation of earnings per share
Cash dividends declared per common share
2.52
1.00
$
3.60
168.5
$
3.59
1.00
$
3.73
175.6
$
3.14
0.84
$
2.47
185.5
$
2.58
0.87
187.6
$
0.74
2.06
190.0
$
0.74
BalanceSheetatDec.31,2009
Total assets
Total indebtedness
Shareholders’ equity
$5,984.4
$ 6,164.9
$ 6,133.5
$ 5,374.8
$ 5,215.1
934.4
1,233.1
1,266.1
1,008.5
1,021.9
2,963.3
2,607.4
2,841.9
2,475.3
2,205.2
These financial highlights contain non-GAAP financial measures. See the reconciliation of these measures to the most directly comparable GAAP measure in the 2009 Cooper
Industries plc Annual Report, which can be found at http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-reportsAnnual.
CorporateGovernanceandEthics
Cooper Industries has a long-standing tradition of operating in accordance
with the highest ethical standards, driven by strong corporate governance.
Through its interactions with investors, customers, suppliers, employees
and the communities in which it operates, Cooper strives to be honest
and fair and to comply with applicable rules and regulations. The
company’s corporate governance principles have been approved by
Cooper Industries’ Board of Directors and, along with the charters of
the board committees, provide the framework for the governance of the
company. The transparency of Cooper’s financial and sustainability
reporting also reflects these business principles.
Cooper is proud of its tradition of ethical conduct. Its standards of ethical
behavior and core values permeate all of Cooper’s operations and
business transactions, creating a better way of life for all of its
stakeholders.
To learn more about Cooper Industries’ corporate governance and ethics,
visit http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-govHighlights.
5
AboutCooperIndustries
CooperBusinessUnits
Global provider of innovative, labor-saving support systems (e.g., bolted framing,
cable tray, spring steel fastener, pipe hanger and safety grating) and enclosure solutions for engineered
facility subsystem applications.
Global leader in innovative circuit protection products and services, on-vehicle
power distribution, conversion and control systems, magnetic components, and wireless control and
monitoring systems for the electrical, electronics and transportation industries.
Diversified manufacturer of electrical and instrumentation products that
enhance safety and productivity in demanding industrial and commercial environments worldwide.
Product solutions include lighting, plugs and receptacles, and harsh- and hazardous-environment
instrumentation devices.
Innovative, high-quality lighting solutions and energy-efficient lighting technologies
for commercial, industrial, institutional, residential and retail customers worldwide.
Provider of quality solutions for medium- and high-voltage electrical
equipment, components and systems that deliver reliable electric power worldwide. CPS is also a leader
in utility automation, providing Smart Grid solutions that enable customers to increase productivity,
improve system reliability and reduce costs.
Specializing in products designed to save lives and protect property in commercial
and industrial facilities. State-of-the-art security, fire detection and mass notification systems combine
with market-leading emergency lighting to provide comprehensive safety solutions.
Leading manufacturer of electrical connection and control products for
residential, commercial and industrial construction and renovation, including switches, receptacles,
GFCIs, wall plates, plugs, sensors, structured wiring systems and sophisticated interconnection solutions
for demanding environments.
ApexToolGroup,LLC*, based in Sparks, Md., is one of the largest worldwide producers of industrial
hand and power tools, tool storage, drill chucks, chain, and electronic soldering products. Directly and
through its subsidiaries, Apex serves a multitude of global markets, including automotive, aerospace,
electronics, energy, hardware, industrial and consumer retail. Through a joint venture with Danaher Corp.,
Cooper Industries holds a 50% interest in Apex as of July 2010.
6
* Through a joint venture, Apex Tool Group, LLC formed after the 2009 reporting period. For more information, please
visit www.cooperindustries.com.
FiveStrategicBusinessInitiatives
Cooper Industries’ core business initiatives—customer loyalty, innovation, globalization, talent
development and operational excellence—have allowed Cooper to succeed in both expanding
and declining economies.
✔CustomerLoyalty
Customer loyalty begins with the Cooper Connection initiative and challenges the
company to always put the customer first. Cooper strives to incorporate innovative
process disciplines to enhance customer value, making Cooper easier to do business
with. Leveraging brand strength and building customer relationships are central to
Cooper’s growth strategy.
✔Innovation
Innovation is Cooper’s lifeblood. Sales from newly introduced products have nearly
tripled from 2004 to 2009, and the company has actions in place to deliver 25% of
annual revenues each year from products introduced within the prior three years.
Cooper focuses on expanding technology in every business through exciting new
platforms including Cooper’s energy automation solutions for Smart Grid, mass
notification and energy-efficient lighting such as LED and lighting controls. Internal
development and acquisitions better enable the company to make dumb products
smart—differentiating Cooper in the marketplace.
✔Globalization
Globalization continues to be an area of major opportunity and investment for Cooper,
and the company has significantly improved its competitive position in international
markets. Cooper has developed region- and country-specific strategies and expanded
its physical presence in local markets. In 2009, Cooper generated approximately 39%
of total company revenue outside the U.S., selling in more than 100 countries.
✔TalentDevelopment
Talent management across the company enables Cooper’s strong leadership team
to grow increasingly more effective in successfully navigating Cooper into the future.
The company’s integrated talent blueprint is marked by acquisition, development,
deployment and retention strategies and processes. The results of this focused
corporate initiative include a significantly enhanced leadership pipeline, enhanced
diversity representation, a learning culture with structured development opportunities
and a pay-for-performance architecture that drives business results by differentiating
the best and brightest talent.
✔OperationalExcellence
Operational excellence involves every business unit. Since 2002, Cooper has radically
changed its manufacturing approach and physical footprint. The company began by
establishing a global, strategic sourcing initiative, followed by the launch of an internal
productivity program. In addition, Cooper has reinforced its safety and environmental
programs around the world.
7
EnvironmentalStewardship
Cooper Industries understands the importance of environmental stewardship and is committed to
minimizing its environmental impact through sustainable design, responsible sourcing and innovative
manufacturing of its products. Through its product portfolio, Cooper helps customers handle the
challenges of higher energy costs, renewable energy generation and environmental preservation.
This eco-friendly attitude extends to Cooper’s corporate culture. In addition to complying with
environmental regulations, the Company trains its employees to make sound environmental decisions,
minimizes waste and helps government agencies develop science-based environmental standards.
Cooper is also evaluating its energy consumption, improving environmental data collection and
beginning to track greenhouse gas emissions to establish a baseline. Cooper continues its commitment
to its long-standing environmental policy for a more sustainable future.
8
EnvironmentalPolicyandAccountability
Environmental Policy
Cooper has a formal, written environmental policy that lists guiding principles for minimizing
its impact on the environment. The policy reinforces standards of operation and reminds
employees that environmental considerations have the highest priority at Cooper. The
environmental policy principles Cooper practices worldwide include:
• To observe all environmental laws and regulations
• To respond effectively to environmental concerns involving Cooper facilities and
products
• To minimize and, wherever possible, to eliminate environmental impacts through
continuous improvement
• To conduct operations in a manner that demonstrates respect for the environment
• To cooperate with federal, state and local governments in developing scientifically
based environmental standards
• To encourage the development of environmentally sound procedures and to conduct
business with the best-available technology
• To maintain environmental monitoring programs that ensure compliance with
governmental requirements and these principles
• To provide training programs that emphasize the individual’s responsibility for sound
environmental decisions
Beyond achieving compliance with applicable environmental regulations, Cooper continuously
seeks opportunities to implement environmental, health and safety best practices throughout
its facilities.
Environmental Team
Led by the Vice President of Environmental Health & Safety and seven regional directors,
Cooper’s Environmental Team manages the day-to-day environmental performance of each
region and business unit. Plant management, environmental coordinators and engineers at
each Cooper facility support the Environmental Team, while the Vice President of Operations
and the Board of Directors offer executive oversight. The Board of Directors receives annual
environmental and safety reports and meets each year to review Cooper’s environmental
performance. Environmental Health & Safety committees in the U.S., Europe and Asia share
lessons learned, methodologies and environmental impact reduction capabilities. These
committees also meet to review and share updates in environmental regulations and health
and safety matters relevant to their businesses.
Cooper’s Environmental Team doesn’t stop there. Every Cooper employee shares in the
Company’s environmental responsibility by actively putting the environmental policy into practice.
For instance, every manufacturing facility maintains environmental protection and pollution
prevention goals. Cooper employees integrate environmental considerations into product
innovation standards and the continuous improvement process. Environmental training and
accountability for achieving the Company’s environmental targets encourage employees to
participate in the Company’s environmental commitment.
9
EnvironmentalStewardship
OneoftheTop100GreenestCompaniesinAmerica
CooperIndustriesranked#9intheindustrialgoodssectorand#97
overallinNewsweek’sinauguralGreenRankingsin2009.Newsweek
partneredwithenvironmentalresearcherstorankthe500largest
U.S.companiesbasedonactualenvironmentalperformance,policies
andreputation.
Environmental Management Information System
Cooper’s commitment to comply with regional and international environmental health and safety
regulations is evident in its established procedures and record-keeping processes. Cooper’s
operating facilities worldwide use the environmental management information system—or
EMIS—to assist in environmental monitoring and data-gathering requirements. Cooper also
maintains systems at each plant to meet daily compliance requirements.
EnvironmentalImpactofOperations
Consistent with the guiding principles of the Company’s environmental policy, Cooper strives
to minimize its impact on the environment by assessing the emissions, quality of effluents,
utilized resources and waste generated from its business activities, product manufacturing and
services. Cooper is also committed to continuously improving its environmental performance.
Internally, Cooper recognizes its facilities that reduce environmental impact and exceed Company
targets through its Environmental Excellence Awards program. Externally, as of 2009, registrars
certified 13 Cooper manufacturing facilities as compliant with International Organization for
Standardization (ISO) 14001 guidelines. ISO 14001 certification verifies that these facilities have
environmental management systems that enable sustainable business operation.
In 2009 Cooper embarked on a robust environmental initiative, which builds on the success
of previously implemented programs and prepares the Company for future reductions of its
environmental impact. Cooper partnered with an experienced energy consultant to measure
both direct and indirect energy consumption. Collecting this data establishes an environmental
performance baseline, which will help Cooper develop future environmental goals. The energy
consultant gathered and audited utility bills from Cooper production facilities worldwide as well
as other data metrics to determine Cooper’s collective energy consumption. A portion of the
findings from this audit are discussed below. For the next step in this initiative, Cooper will
work with its energy consultant to develop a greenhouse gas (GHG) inventory that details GHG
emissions and identifies opportunities for improvement. Cooper will present the GHG inventory
results in its next corporate social responsibility report (CSRR).
10
2009 Energy Use by Region
U.S.
European Union, Middle East
Mexico, Central and South America
Pacific Rim*
9%
Energy Consumption
Cooper tracks energy consumption at operation sites worldwide, including all of its
manufacturing, research, warehousing and testing facilities. These facilities represent 94%
of Cooper’s worldwide energy use. Cooper compiles its facilities’ utility records into a single
database, which can identify energy use by source, building location and other factors. Cooper’s
total electricity use, or indirect energy consumption, for 2009 was approximately 469 million
kilowatt-hours (kWh), or approximately 7.5 kWh per hour worked. Its total natural gas use, a
portion of its direct energy consumption, in 2009 was approximately 947,000 million British
thermal units (MMBtu), or 0.015 MMBtu per hour worked.
15%
9%
67%
*Includes China, India, Australia
and other countries in the region
2009EnergyUsageandRelatedEmissions
EnergySource
Usage
Rate
Emissions
Electric Power
469,000,000 kWh
7.5 kWh/hour worked
291,000 metric tons of CO2e
Natural Gas
947,000 MMBtu
0.015 MMBtu/hour worked
71,000 metric tons of CO2e
Air Quality
Based on electricity use, natural gas consumption and the World Resource Institute’s Greenhouse
Gas Protocol, Cooper is able to report a portion of its 2009 GHG emissions. In 2009, Cooper
emitted approximately 71,000 metric tons of carbon dioxide equivalent (CO2e) from the burning
of natural gas and 291,000 metric tons of CO 2e from electricity usage. With this data and
the upcoming GHG inventory, Cooper is establishing its baseline GHG emissions to enable
measurement of future reduction initiatives.
Cooper has tracked its sulfur oxide (SOx ) and nitrogen oxide (NOx ) emissions since 2005. In
the past, Cooper reported its total SOx and NOx emissions based on roughly 100 of its larger
facilities. As part of Cooper’s commitment to continuous improvement, in 2009, the Company
2009SOxandNOxEmissions
Constituent
Emissions
Rate
SOx
10.1 tons
0.00033 per equivalent employee
NOx
104.3 tons
0.0034 per equivalent employee
11
EnvironmentalStewardship
tracked SOx and NOx emissions from 182 of its operation sites. The resulting emissions in 2009
are collectively 10.1 tons of SOx, or 0.00033 tons SOx per equivalent employee, and 104.3 tons
of NOx, or 0.0034 tons NOx per equivalent employee. Cooper’s 2008 and 2009 effort to consume
cleaner-burning fuels—such as natural gas at its Syracuse, N.Y., plant—resulted in a 33.5-ton
decrease in total SOx emissions despite the addition of a significant number of facilities to the
calculated total.
Resource Consumption
In the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report (2007 CSRR),
Cooper discussed tracking its water use. Since that time, the Company has decided to first
focus its environmental data collection and tracking efforts on a GHG inventory. Cooper
recognizes that water is an essential resource and hopes to expand its environmental
performance data collection and tracking to include water use in the future.
Waste Generation
In order to better understand the impact of its waste minimization efforts, beginning in 2010,
Cooper will begin tracking and reporting the total amount of waste it sends to landfills. Cooper
will present these figures in its next CSRR.
OtherEnvironmentalConsiderations
In addition to assessing the impacts of daily business operations, Cooper works to mitigate
outstanding issues related to the past use of hazardous chemicals and asbestos.
Cooper historically acquired businesses, which at one time produced and sold products that
contained asbestos (before Cooper acquired those businesses). The 2007 CSRR discussed the
asbestos liabilities relating to the sale of Cooper’s Automotive Products businesses to FederalMogul Corp. and Federal-Mogul’s subsequent bankruptcy. At that time, the bankruptcy court
had not yet ruled on Cooper’s ability to obtain protection under a trust set up under the FederalMogul bankruptcy. The court has since ruled that the trust was not a permissible vehicle to
resolve the liability in this instance, and Cooper is continuing to defend the lawsuits.
Superfund is the federal government’s program to clean up the nation’s most significant
hazardous waste sites. As part of Cooper’s acquisitions and divestments, the Company is
associated in some way with 38 Superfund sites, 22 of which are considered active sites under
remediation. Cooper is considered a de minimis contributor and is typically one of several
participating parties at many of these sites.
12
CaseStudy
EnvironmentalExcellenceAwards
Cooper’s annual Environmental Excellence Awards are presented to Cooper facilities that
best demonstrate significant, lasting and measurable excellence in such areas as process
improvement, pollution prevention, innovative product design and resource conservation.
Cooper employees at these facilities drive environmental efforts and have proven that doing
the right thing can lower costs, improve performance and create direct financial benefits for
both the customer and Cooper. The scope of this award program is broad enough for all major
environmental and conservation accomplishments of any Cooper operation to be eligible.
Nominations can relate to a specific accomplishment or to a group of projects demonstrating
continuous improvement. Cooper honors top performers on an annual basis with grants to
local programs promoting environmental stewardship. Top performers have the freedom to
select which community programs benefit from the grant.
Recent Award Winners
The Riom, France, Cooper Safety Plant recognized an opportunity to reduce not only its
environmental impact, but also customers’ environmental impact through innovative product
solutions. Employees at this plant realized that its emergency lighting products used inefficient
batteries and sought a more energy-efficient battery option. Cooper employees began to work
with a third-party manufacturer to develop this environmentally friendly battery, the ECOSAFE
by Cooper. The ECOSAFE battery not only has a significantly increased lifespan of 10 years,
compared to the previous batteries’ lifespan of four years, it also has a reduced environmental
impact. Compared to the old, inefficient battery, an ECOSAFE battery consumes 60% less
energy, uses approximately 80% less water and reduces hazardous waste production by 80%.
When this battery is used in Cooper products it also reduces the product’s overall environmental
impact and improves efficiency.
13
EnvironmentalStewardship
The Cooper LED Innovation Center in Peachtree City, Ga., identified energy saving measures
that could be molded into innovative products that help customers reduce their environmental
impact. Cooper Lighting designed and developed the new Halo LED H7 collection at the Cooper
LED Innovation Center. This new lighting collection offers energy savings to customers by
providing the same quantity and quality of light as traditional light sources while operating
more efficiently. Cooper Lighting also designed the Halo LED modules to have a longer lifespan,
which also minimizes relamping maintenance costs. The Halo LED H7 1200 series exceeds
light output of a 90-watt PAR38 halogen lamp, a 120-watt BR40 incandescent lamp and a
32-watt compact fluorescent luminaire, while consuming less than 25 watts. These LED fixtures
also provide 70% of their initial light output after 22 years of use. The new Halo LED H7 collection
is just one of the innovative lighting solutions Cooper is creating at its new LED Innovation
Center. (See the LED case study on page 22 for more on the Cooper LED Innovation Center.)
Life Cycle Analysis Tool
The Cooper Safety Research and Development and Marketing teams at the Cooper Safety Plant
in Riom, France, implemented a life cycle analysis (LCA) tool that calculates the environmental
impact of a product throughout its life, from raw material extraction to manufacturing through
transportation and end use. This LCA tool uses Environmental Information and Management
Explorer software to perform the complex calculations based on ISO 14040-41-42-43 standards.
The software works with an extended database that contains relevant information about all
electronic components, plastics and other materials that make up Cooper Safety products.
With data about the product’s materials, logistics such as the distance between the factory and
customer, power consumption, maintenance and other factors, the LCA software measures a
product’s environmental impact through the use of 10 indicators:
• Natural resources depletion
• Energy depletion
• Water depletion
• Global warming potential
• Stratospheric ozone depletion potential
• Air and water toxicity
• Photochemical ozone creation
• Air acidification potential
• Water eutrophication
• Hazardous waste production
14
Cooper understands that customers are becoming increasingly more interested in information
about the environmental impact of products they purchase. The LCA tool provides an opportunity
to consider the entire product life cycle, so customers can make sustainable purchasing
decisions. LCAs of Cooper products are available to customers through product literature and
on the Cooper Safety France website at www.cooperfrance.com. Cooper is considering LCA
application for other product lines and plans to extend the use of this tool beyond the Cooper
Safety facility. Other companies are also using this LCA tool, making it easier for customers to
compare products from different suppliers.
Manufacturing
Distribution
LifeCycleAnalysis
LifeCycleAnalysisconsidersthe
impacttotheenvironmentfromthe
entireproductlifecycle,fromraw
materialextractiontomanufacturing
throughtransportationandenduse.
Use
Raw Material
Extraction
End of Life
15
Innovation
Cooper drives customer value with innovation through technological advancements in products
across every business unit. Cooper’s innovative products—such as energy automation solutions for
the Smart Grid, energy-efficient light-emitting diode (LED) lighting and lighting controls, and alternative
energy solutions for wind and solar power—help its customers handle the challenges of higher energy
costs, environmental preservation and global warming. Through responsible design, sourcing and
manufacturing of its products, Cooper offers eco-friendly solutions to utilities, industrial and commercial
enterprises, and buildings and households around the globe to help them more efficiently and
sustainably meet their lighting and power needs.
16
New Product Vitality Index* (percent of sales)
25%
Target
2009
CustomerSatisfaction
19%
15%
At2008
Cooper, customers come first. Cooper
strives to continually enhance customer satisfaction
with
Cooper products available across the globe. To accomplish this goal,
2003the thousands of7%
Target: 25%
Cooper invests in the processes, people, information systems and metrics necessary to closely
monitor customer satisfaction. Cooper welcomes customer suggestions and feedback through
phone and face-to-face conversations, online inquiries, tradeshows, polling and questionnaires.
By listening to and incorporating customer feedback, Cooper is able to increase overall product
value while enhancing customer satisfaction levels.
On-Time
Delivery
0
5
10
15
20
25
Cooper’s CEO, executive management and front-line personnel continually monitor on-time
delivery performance for all business units, because Cooper understands how important on-time
delivery is to its customers. With a commitment to achieve an on-time delivery performance of
95%, Cooper’s on-time delivery performance has improved year after year.
On-Time Delivery Performance (percent of total deliveries)
95%
Target
2009
88%
87%
2008
2007
2006
83%
74%
Target: 95%
Cooper Customer Center
Since the 2007 launch of the Cooper Customer Center (C3)—an interactive web portal featuring
real-time product availability, net pricing, order status and tracking information in one easily
navigated user interface—Cooper has enhanced C3’s functionality, communication and scope
0
20
40
80
100
to further
improve
customer
service.60 C3, available
at www.cooperc3.com,
features thousands
of unique products, and is available to customers in both Spanish and English. Cooper is proud
of the latest addition to C3: a centralized location for One Cooper events, literature, training,
news and more. Other enhancements include quick search functionality for recent orders;
multiple part number searches across all Cooper business units; downloadable order and
product information to Excel; more accurate pricing including freight charges; and easy access
to catalog sheets, invoices, advanced shipping notices, order acknowledgements and packing
slips. Cooper has improved communication with customers through C3 with a real-time
messaging board for customer alerts and an online C3 training demonstration. To measure
customer satisfaction with C3 improvements, Cooper conducted a voice-of-the-customer
survey, in which 89% of respondents were either satisfied or very satisfied with C3. Customers
selected to take this online survey represented a wide range of C3 users from those who are
highly active to those who don’t use C3 regularly. Ongoing improvements to C3 continue to
enhance the customer experience, making it easier for customers to do business with Cooper.
17
Innovation
Cooper Connection
Through the Cooper Connection program, customers gain access to the most highly specified
products in the electrical distribution business. Designed to promote long-term growth while
enhancing competitiveness, Cooper’s best-in-class brands create a solid platform for distributors
to improve their positions in the marketplace. An increased breadth of product offerings through
one of the largest sales infrastructures in the industry combined with access to state-of-the-art
technology helps reduce costs while maximizing productivity. With additional access to marketing
tools, training programs and promotional opportunities, each Cooper Connection distributor is
able to drive its own growth and profitability.
New Product Vitality Index
The new product vitality index—an internal Company metric that tracks the percent of sales of
products introduced within the previous three years compared to total sales—demonstrates
Cooper’s customers’ adoption of new products that result from Cooper innovation and a
commitment to customer satisfaction. In the 2007 Cooper Industries, Ltd. Corporate Social
Responsibility Report, Cooper stated a goal of a new product vitality index of 20%. After
achieving a 19% new product vitality index in 2009, Cooper decided to increase its target to
25%. This revised goal demonstrates the importance Cooper places on delivering innovative
products to customers.
New Product Vitality Index* (percent of sales)
25%
Target
19%
2009
2008
2003
15%
7%
*Cooper’s new product vitality index is an internal
Company metric that tracks the percent of sales of
products introduced within the previous three years
compared to total sales.
Target: 25%
Cooper Technology Center
With new products and innovative technologies hitting the market almost daily, education and
training have never been more crucial. So in January 2009 Cooper opened a world-class industrial
training facility for Cooper stakeholders, the Cooper Technology Center (CTC), in Houston.
0
5
10
15
The 35,000-square-foot
facility
features
global20 industrial25trends in a hands-on classroom setting
with a board room, auditorium, training rooms and a full-scale mock refinery that incorporates
more than 400 Cooper products. The CTC has committed displays featuring Cooper products
from all business units and is committed to the ongoing training and education of end-users,
distributors, and engineering and procurement professionals.
With its breadth of product offerings, range of customer tools and ongoing commitment to
On-Time service,
Delivery Cooper
Performance
(percent of total deliveries)
customer
not only
continues to meet but regularly exceeds customer expectations.
Target
95%
TopInnovator
88%
87%
2008
InDecember2009,thePatentBoard,aleadingindependentpatent
2007
83%
analyticsandresearchinstitution,recognizedCooperasthe#9
74%
2006
Target: 95%
innovatorinitspatentqualityrankingsofindustrialcomponents
andfixturescompanies—animprovementof20placesfrom2008.
2009
18
CaseStudy
LightingControls
The largest electricity-consuming system in a
commercial building is lighting, which according to
the Energy Information Administration consumes more
than 40% of a commercial building’s daily electricity
use. Lighting control strategies such as time schedules,
switch timers, photosensors, occupancy sensors,
multi-level switching and daylight dimming can reduce
this expense. When these hardware solutions are
combined with Cooper Controls software, building
owners and facility maintenance personnel can control
meter usage in real time and monitor space utilization,
enabling increased electrical efficiency and reduced
maintenance and operating costs.
Cooper Step Up Program
According to the U.S. Department of Energy, lighting
products offer one of the quickest returns for energy
saving investments, with a payback period that averages
less than two years—and in some cases, less than one
year. Lighting system upgrades can produce up to
40% energy savings for the end-user which, in turn,
reduces environmental impact by burning less fossil
fuel. Cooper developed its Step Up Program to assist
companies in accurately estimating and measuring the
energy savings of installing an efficient and effective
lighting system upgrade.
Sears Distribution Center
Cooper’s Greengate lighting control system helped Sears
Holdings Corp.—the fourth largest broadline retailer in
the U.S. with 3,900 retail stores in the U.S. and Canada
—obtain Leadership in Energy and Environmental
Design (LEED®) certification on its 780,500-square-foot
distribution center in Stockton, Calif. This distribution
center is one of the most energy-efficient warehouses
in the U.S., with an effective lighting power density of
0.18 watts per square foot—78% less than the maximum
prescribed by California’s title 24 energy code.
Cooper’s Greengate lighting control system—comprised
of relay panels, daylighting controls and occupancy
sensors—controls all of the lighting in the distribution
center. For safety reasons, Greengate keeps lighting
on at all times in critical areas of the distribution center.
Designed to minimize wasted energy, the Greengate
lighting control system employs a unique algorithm to
ensure that unnecessary lights in a building are turned
off after business hours, when rooms are empty or
when there is sufficient daylight available in the space.
Facility managers can also actively monitor and
manage the energy consumption of the building
through Greengate.
Lighting in the distribution center includes 16,000 linear
feet of Cooper’s Metalux MB Series T5HO Micro-Bay
fixtures in linear rows mounted 32 feet off the floor.
Available in narrow and medium distributions for high
mounting heights, Micro-Bay luminaires are designed
to deliver energy savings, superior lumen maintenance
and longer lamp life, improved color rendition, integrated
control options and easy configuration. Select luminaires
were specified with emergency battery backup, providing
mandatory illumination in the event of a power outage.
The narrow profile of Micro-Bay also enabled the
electric lighting to integrate with the building’s daylighting
strategy through minimized blockage of daylight entering
the space through a series of skylights aligned over
the center of each racked aisle. Except on cloudy days,
these 4-foot by 8-foot, double-dome skylights, which
cover 2% of the roof area, are able to meet target light
levels without requiring any electric lighting during
daytime hours. These fluorescent light fixtures feature
instant-on operation, making automatic energy-saving
switching strategies much easier to implement.
For more information about Cooper’s lighting energy
management products, visit www.coopercontrol.com.
19
Innovation
A
CaseStudy
EmpoweringtheSmartGrid
Cooper Power Systems has been creating equipment
for the electric utility industry since the days of Thomas
Edison. Today, the Company’s products empower
the Smart Grid, improving efficiency, reliability and
productivity of the next generation of the electric grid
through optimization and automation.*
A. Cooper Power Systems helps develop collection
system solutions that connect, transform and
protect renewable energy as it travels through the
electric grid.
B. Voltage and volt-amperes reactive management
solutions address electricity losses that occur as
electricity moves through the distribution system.
Through products such as the Cooper Power Systems
Capacitor Bank Control, utilities can save up to
2.57 million kilowatt-hours (kWh) per year and
prevent 1,846 metric tons of carbon dioxide (CO 2 )
emissions from escaping into the atmosphere.
C. Cooper Power Systems brings intelligence to the
electric grid by linking distribution equipment and the
utility control center through its Yukon Automation
software, simplifying systemwide automation to
enable more efficient and reliable energy delivery.
For instance, the Company’s feeder reconfiguration
systems are equipped for two-way communication
that senses activity on the grid, relays the status
to a decision-support application and directs the
response to automatically adjust the grid accordingly.
D. The Company’s high-efficiency step voltage regulators
result in annual energy savings as high as
160,000 kWh, mitigating roughly 115 metric tons of
CO2 emissions.
E. Sulfur hexafluoride (SF6 )-free switchgear, available from
Cooper Power Systems, prevents the incorporation
of one of the most potent greenhouse gases into
20
the electrical transmission and distribution system.
One green switchgear unit eliminates the use of
roughly 30 pounds of SF6, or 330 metric tons of CO2.
F. Transformers are occasionally damaged by storms
and accidents or simply fail due to age. Based upon
Cooper’s analysis of data collected from various
state environmental and pollution control agencies,
this can often result in hundreds of thousands of
gallons of oil spilled each year. Using Cooper Power
Systems biodegradable, soy-based Envirotemp FR3
dielectric fluid in distribution transformers is safer
for customers and the environment.
G. Every day, power is lost as electricity passes through
distribution transformers. By converting to the
Cooper Power Systems high-efficiency distribution
transformers, an average utility can save as much
as 3.3 million kWh in energy losses, reducing CO2
emissions by 2,400 metric tons.
H. Simple steps can all add up. An average utility can
prevent roughly 28,000 kWh of system inefficiencies
by using the Cooper Power Systems Evolution
Arrester. The ultra-low wattage loss design can
contribute to reductions of CO 2 emissions by
20.2 metric tons.
I. Implementing the Cooper Power Systems demandresponse solution on as few as 8,000 home air
conditioners can reduce annual system losses by
51,000 kWh, preventing 36.6 metric tons of CO 2
emissions and saving roughly 6% of peak energy use.
G
C
D
F
H
B
A
I
E
These solutions help utilities reinvent their energy
delivery systems by applying new perspectives to an
aging grid. Using Cooper Power Systems’ innovative
Smart Grid solutions, utilities can engage consumers
through smart meters and the supporting advanced
metering infrastructure that allow consumers to adjust
energy consumption based on real-time pricing
information. Utilities can better implement distributed
generation that addresses both power generation and
renewable energy challenges, and they can improve
power reliability and quality, which lessens vulnerability
to natural disasters by restoring power rapidly and
efficiently when unexpected events occur.
For more information about Cooper Power Systems,
visit www.cooperpower.com.
AmericanElectricPowerEmploysYukonFeederAutomationSoftware
American Electric Power (AEP)—owner of the nation’s largest electric transmission system, nearly 39,000 miles
of 765-kilovolt extra-high voltage transmission—installed Cooper’s Yukon Feeder Automation software as a core
component of its Smart Grid deployment. “It (Yukon Feeder Automation software) will improve grid reliability by
detecting disturbances and automatically reconfiguring the system to isolate problems,” Thomas F. Weaver III, PE,
manager of grid management deployment at AEP, said. “This will help minimize the total number of customers
impacted by a potential power outage. The partnering of Cooper Power Systems and AEP engineers to work through
the learning curve of this first install on the AEP system was key to successfully putting this new technology in
service on time and on budget.”
As a dynamic, self-healing distribution automation solution, Yukon Feeder Automation software accommodates
the addition or removal of devices and integrates compatibly into existing supervisory control and data acquisition
(SCADA) and distribution management systems. It allows operators to control intelligent electronic devices, enable
and disable automation, and view a comprehensive dashboard of the current state of the system. Yukon Feeder
Automation software works with multiple communication media for easy upgrading as new technologies emerge.
It facilitates testing through the Yukon Feeder Automation Simulator, maintains a complete log of device operation
and status changes for post-event traceability, and reduces system cost. This energy automation software maximizes
customer satisfaction through service restoration to the most customers in seconds when an outage occurs,
avoiding penalties for extended outages.
*Energy and emissions savings are based on estimates from typical utility equipment usage and system parameters.
21
Innovation
CaseStudy
LED
Of the more than 869 million recessed lighting fixtures
installed in the U.S., 83% use incandescent lighting.
LEDs, however, consume up to 85% less energy
and with significantly longer average rated lives can
eliminate up to 40 replacements of incandescent
lighting. The more than 137 million outdoor street and
area lighting units installed in the U.S. can also benefit
from LED technology. Compared to the traditional metal
halide selection, LED is 30% to 60% more energy
efficient while eliminating up to seven lamp replacements.
Cooper’s comprehensive capabilities in LED—design,
thermal modeling, accelerated life and reliability testing,
photometric measurement, and rapid prototyping and
manufacturing—are unmatched among North American
lighting manufacturers. As a result, Cooper offers a
broad range of industry-leading indoor and outdoor
LED lighting products with best-in-class capabilities.
Cooper LED Innovation Center
Opened in 2009, the 60,000-square-foot Cooper LED
Innovation Center in Peachtree City, Ga., is home to
the research, development, design, validation and
manufacturing of proprietary LED and other advanced
lighting technologies. Skilled mechanical, electrical,
thermal, optical and reliability engineers work with
industrial designers, lab technicians and manufacturing
personnel to accelerate the development and
commercialization of relevant industry-leading LED
solutions. Testing ensures robustness in application,
intended performance over rated life, and compliance
with industry standards such as lumen maintenance
(LM)-79, LM-80, ENERGY STAR and Underwriters
Laboratories’ (UL) certification.
As one of the first luminaire manufacturers in the
lighting industry to offer an extensive LED training
program, Cooper offers courses and workshops in LED
technology and architectural lighting controls at its LED
Innovation Center. Design professionals gain a working
understanding of LEDs and learn integration methods.
Courses introduce typical real-world applications of
LEDs in both residential and commercial environments.
22
Cooper’s LED Innovation Center demonstrates its longterm commitment to developing relevant, industryleading lighting solutions to challenging market needs.
Outdoor Headquarters Lighting Upgrade
At its headquarters in Peachtree City, Ga., Cooper
Lighting upgraded its 400-watt metal halide outdoor
area lighting with energy-efficient Ventus luminaire LED
lighting that not only maintains recommended light
levels, but also improves illumination. By automatically
varying the number of the Ventus’ 12 LightBAR optics
being illuminated at a time, Cooper experiences 33%
to 77% energy savings over the older metal halide
fixtures, depending on the brightness required for the
time of day. Developed at the Cooper LED Innovation
Center, the Ventus luminaire has a projected average
rated life six times longer than its predecessor at
50,000 hours and can safely operate in high ambient
temperatures.
For more information on Cooper’s LED solutions, visit
www.cooperlighting.com/led.
CaseStudy
MakingRenewableEnergyPossible
As renewable energy sources become increasingly
more important factors in the global energy portfolio,
Cooper is developing the products that are making the
use and distribution of alternative energy sources like
solar energy possible.
Cooper B-Line products help drive down lifecycle costper-watt of solar energy systems for both commercial
and utility applications. Cooper B-Line offers a
comprehensive set of mounting and wire management
solutions—including strut, cable tray, grating and
wireway—for mounting solar panels in ground, pole,
rooftop and open-structure applications. Each of these
solutions incorporates optimal access for system
maintenance, and in rooftop applications Cooper
B-Line has designed fully ballasted mounting systems
to protect roofs from damage.
Cooper Power Systems creates the products and
services that connect large, utility-grade photovoltaic
(PV) energy systems to the electric grid. High-efficiency
solar generation step-up transformers cooled with
Envirotemp FR3 soy oil-based dielectric fluid are specially
designed with inverter technology and energy harvest
in mind. A full line of molded rubber parts provides
reliable transformer interconnection up to 35 kV.
Substation products—including capacitors, arresters,
relays and automation communication systems—along
with interconnection systems ensure that the solar power
installation’s electric quality meets grid requirements.
Through a single housing or a complete system with
monitoring electronics, Cooper Bussmann and Cooper
Crouse-Hinds combiner boxes provide a convenient
means of connecting the conductors from several
arrays or solar panels into one main bus or feed.
Cooper Bussmann’s fast-acting solar fuses are designed
specifically for protecting solar panels and conductors
used in PV power systems from extreme cycling
conditions and low-magnitude overloads.
Cooper Crouse-Hinds’ solar power kits provide reliable
electricity in remote applications. These systems are
pre-wired to National Electric Code standards to
minimize installation time and wiring errors. Solar power
kits are installed in weather-proof enclosures to withstand
harsh environments and high wind loads. Cooper
Notification’s Wireless Auto Visual Emergency System
(WAVES) and Tactical WAVES (TACWAVES) are portable
systems designed to alert, warn and inform people of
what to do in an emergency or disaster. These units
include solar panels to maintain battery charge.
For more information about Cooper’s renewable energy,
energy-efficient and eco-friendly products, visit
www.cooperindustries.com/markets/green.
23
Employees
Cooper Industries is committed to its most valuable resource—its employees. Cooper employees
work at more than 200 facilities around the world. To protect and develop its employees, Cooper
has policies and practices to encourage employee safety, continuous education and professional
advancement. Multi-year employee education, development and training programs —with emphasis
on operations, finance, human resources, general management, and sales and marketing—are
available to train future Company leaders. Cooper actively mentors emerging leaders and builds
teams to promote diverse perspectives that improve decision-making and enhance innovation.
Salaried employees, exempt and non-exempt, receive annual performance evaluations. Cooper
maintains effective labor relations, protects association rights and prohibits harassment and
discrimination globally. Child labor is also prohibited—no one under the age of 16 may be employed
by Cooper anywhere in the world. By respecting the rights of its employees and maintaining safe
workplaces free from discrimination, Cooper creates an environment that is conducive to diversity
and continued growth and success.
24
OneTeam,OnePurpose,OneVision,OneStrategy
When a Company is spread out around the world and the acquisition of complementary
businesses is part of the growth strategy, creating a focused, cohesive group of employees is
a challenge. Cooper meets this challenge by promoting its culture and values. Acting ethically
and with integrity and accountability earns the respect and trust of co-workers, customers and
other stakeholders, while protecting Cooper’s reputation. Following the Company’s strategic
vision, Cooper employees are committed to producing work of the highest quality in a timely and
effective manner, driving customer loyalty by exceeding customer expectations and responding
to their needs, exercising technical excellence and adaptability by responding to emerging
trends in technologies and customer requirements, and translating challenges into relevant and
actionable plans.
2009 Global Workforce
International Hourly
U.S. Hourly
U.S. Salaried
International Salaried
20%
42%
22%
Cooper provides a comprehensive benefits package to help attract and retain a competitive
workforce. While programs may vary from one country to the next based on the availability of
certain services and government regulations, the Company strives to be competitive and always
comply with government regulations in each region of operation. Cooper’s benefit programs
offer employees tools to provide for their health care needs, prepare for retirement and manage
the financial challenges of higher education.
16%
As part of Cooper’s commitment to continuous improvement, the Company conducted an
online survey of its salaried employees in 2007 and will do so again globally in 2010. Feedback
from the survey is used to assess how Cooper can more effectively run the Company. Resulting
actions from employee suggestions include:
• Continuing to invest in training and information technology tools to make employees’
jobs easier and business systems more productive
• Building on a companywide campaign to promote the five strategic business initiatives—
customer loyalty, innovation, globalization, talent development and operational excellence
• Implementing an integrated talent blueprint to improve communications about the
Company’s vision and hone our senior leadership’s effectiveness
Through 2009, 140 leaders companywide participated in Cooper University in
Houston to enhance leadership effectiveness focusing on functional development,
strategic thinking and compliance.
• Establishing a pay-for-performance compensation model and resurrecting the service
award program to better recognize employee loyalty and accomplishments
• Creating career maps, working on succession planning and establishing a more rigorous
talent review process
0
1
2
3
4
• Renewing focus on customer solutions
• Incorporating more technology into products and creating end user-specified solutions
The survey also indicated that Cooper employees have confidence in the Company’s senior
leadership and their immediate supervisors, feel they are encouraged to behave ethically, find
their work environment cooperative, and would recommend Cooper to a friend or relative.
25
5
Employees
EmployeeSafetyMetrics
Occupational health and safety is a high priority at Cooper.
Total Recordable Incident Rate*
2009
2008
2007
2006
2.08
Domestic
0.40
International
2.44
0.40
2.99
0.64
3.50
1.10
4.20
2005
1.70
Lost Time Incident Rate**
2009
2008
2007
2006
2005
0.38
Domestic
0.20
International
0.31
0.22
0.46
0.40
0.70
0.80
0.90
1.20
* Total recordable incident rates are based on Occupational Safety and Health
Administration criteria.
**Lost time cases are ones where an employee misses a complete day of work
after a workplace injury.
26
LaborRelations
Asof2009,approximately60%of
Cooper’shourlyU.S.workforcewas
employedin43manufacturingfacilities,
distributioncentersandwarehousesnot
coveredbylaboragreements.Several
collectivebargainingagreements—15
bargaininggroupsat17locationsinthe
U.S.—coveredtheremaining40%ofthe
hourlyU.S.workforce.In2009,Cooper
concludednewcollectivebargaining
agreementscoveringitsU.S.hourly
employeesateightlocations.Cooper
considersitsemployee relationstobe
excellent.
EmployeeDevelopment
Allsalariedemployeesreceiveregular
annualperformanceandcareer
developmentreviews.Theperformance
reviewandcareerdevelopmentprocess
forhourlyemployeesvariesbydivision
and/orlocation.
CaseStudy
EmployeesTakingCharge
Occupational safety and health is a high priority ingrained in the culture at Cooper. It is one
reason Cooper has established a unique program, the Take Charge Safety and Health Awards,
to increase awareness and promote effective management of safety and health processes at
all of its facilities, with a goal of keeping accidents and injuries to a minimum. This program is
a highly visible, effective means of reinforcing the importance of safety in every employee’s role.
The Take Charge awards recognize facilities that have outstanding safety records and
demonstrate creative approaches to safety management. The program focuses on three key
measurements for each competing facility: management of safety programs and systems,
safety and health performance statistics, and innovations within the safety and health program.
Cooper honors top performers on an annual basis with grants to local programs—such as fire
prevention, emergency planning and CPR training—promoting community safety. Top performers
have the freedom to select which local community programs benefit from the grant.
One of the most recent Take Charge award winners was Cooper Safety in Doncaster, England.
The employees at this facility recognized that the electrical testing of the site’s manufactured
lights included an inherent safety risk. Employees worked together to develop effective,
engineered solutions for the product testing stations. The employees investigated and tried
different safety systems until reaching a final design that error-proofed the risk. These
solutions included guards that allow product flow but prevent hands from entering the test
zone, continuously challenged interlocks, and remote controls and systems that verify current
employee training and knowledge before the test stands will function. The changes not only
improved safety for Cooper employees, but also added confidence in overall product quality.
The safety initiatives implemented at the Doncaster facility contributed to the facility achieving,
in March 2009, a cumulative 1 million hours of operations without a single lost time incident.
27
Community
Corporate giving and community outreach are pillars of Cooper Industries’ operating philosophy and
business practices. Cooper’s charitable giving reaches communities across the globe and comes
from the Cooper Industries Foundation, a 501(c)(3) nonprofit funded by Company contributions,
the corporate office and the operating funds of each business division. As an important portion
of Cooper’s overall community investment, the Company budgets corporate giving funds to each
business division as part of the annual planning process. The Company gives local Cooper business
leaders broad discretion in determining what will best serve their communities. This approach best
serves all of the interests at stake—giving back to society locally, while allowing Cooper employees
to concentrate on creating and delivering innovative products to customers, which, in turn, creates
the profits that allow Cooper’s charitable giving programs to thrive.
The Company’s corporate giving and community outreach—reported on a dollars expended basis—
supports education, health and human services, the environment, and arts and culture. The variety of
programs and grant requests funded by the Cooper Industries Foundation and the business divisions
reflects the diversity of Cooper employees and the places where Cooper operates. The following
highlights a sample of Cooper’s community investments.
28
MatchingGiftProgram
Cooper supplements charitable contributions made by employees through a variety of matching
gift programs companywide. To United Way alone, the Cooper Industries Foundation contributed
more than $417,000 in 2009.
ScholarshipProgram
The Company’s scholarship program provides the children of full-time Cooper employees in the
U.S., Mexico and Canada with an opportunity for educational advancement through one-year,
non-renewable scholarship awards up to $5,000. Independently administered, the program
provides scholarships for students pursuing a bachelor’s degree from a four-year university
or who plan to study at a two-year community college or vocational school. Cooper awarded
$150,000 in 2009. Selection criteria include academic merit, demonstration of financial need,
evidence of outstanding character and extracurricular activities.
WestOremFamilyYMCA
In 2009, Cooper Industries Foundation completed a five-year grant totaling $125,000 for capital
development of the West Orem Family YMCA in southwest Houston. The YMCA is a worldwide
organization and one of the largest nonprofit community service organizations in the U.S.
The West Orem Family YMCA is now open, serving the underprivileged in approximately
54,000 households through family support services including athletic programs, preschool
development programs and after-school childcare. One way Cooper’s grant is helping the
community is through the YMCA’s Water Wise program, which provides swimming instruction
and educates the community about drowning prevention through partnerships with the Texas
Children’s Hospital and the Houston Apartment Association. As the second-leading cause of
accidental death among children, child drowning has become of great concern with 32 children
drowning in the greater Houston area in 2009.
JuniorAchievementExchangeCity
In 2009, Cooper Industries Foundation also completed a seven-year grant totaling $100,000 in
support of Junior Achievement’s Exchange City in Houston. Through participation in a simulated
city, Exchange City provides students with the opportunity to work in a city hall, post office,
bank, restaurant, newspaper, radio station and retail stores. This program teaches students
about economics and reinforces math, reading, speaking, decision-making, teamwork, problem
solving and budgeting skills. As a result of this program, students learn how they can impact
the world as individuals, employees and consumers and are better prepared to tackle economic
and workforce issues.
Charitable Giving
Political Contributions*
2009
$1,898,400
2008
2009
$1,961,544
2007
$2,106,590
2006
$30,500
2008
$145,100
2007
$2,383,988
2005
$80,100
2006
$3,101,726
$133,000
2005
$12,500
*Contributions are made to both Republicans and Democrats who understand the concerns and needs of manufacturers and strive to
improve the regulatory and legislative climate for businesses, the overall health of our economy and Cooper’s global competitiveness.
29
0
500
1000
1500
2000
2500
3000
3500
0
30000
60000
90000
120000
150000
Global ReportingInitiativeIndex
Profile Disclosure
Description
Page
1. Strategy and Analysis
1.1
Statement from the most senior decision-maker of the organization.
2
2. Organizational Profile
2.1
Name of the organization.
2.2
Primary brands, products, and/or services.
Cover
4, 6
2.3
Operational structure of the organization.
4, 6
2.4
Location of organization’s headquarters.
4
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues
covered in the report.
4, See Note 1
2.6
Nature of ownership and legal form.
4, See Note 1
2.7
Markets served.
4, See Note 1
2.8
Scale of the reporting organization.
5, See Note 1
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
2.10
Awards received in the reporting period.
6
10, 18
3. Report Parameters
3.1
Reporting period for information provided.
See Note 2
3.2
Date of most recent previous report.
See Note 2
3.3
Reporting cycle.
See Note 2
3.4
Contact point for questions regarding the report or its contents.
3.5
Process for defining report content.
3.6
Boundary of the report.
3.7
State any specific limitations on the scope or boundary of the report.
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from
period to period and/or between organizations.
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.
See Note 3
2, 4, 6, See Note 2
2, 4, 6, See Note 2
Addressed Throughout the Report
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
3.12
Table identifying the location of the Standard Disclosures in the report.
4, 6
12, See Note 2
See Note 2
30
4. Governance, Commitments, and Engagement
4.1
Governance structure of the organization.
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
4, See Note 4
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
See Note 4
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
See Note 4
4.14
List of stakeholder groups engaged by the organization.
See Note 4
4.15
Performance Indicator
Basis for identification and selection of stakeholders with whom to engage.
Description
See Note 4
Page
See Note 4
Economic
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments.
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
5, 29, See Note 1
28–29
Environmental
EN4
Indirect energy consumption by primary source.
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
11
EN20
NO x, SOx, and other significant air emissions by type and weight.
19–23
11
Social: Labor Practices and Decent Work
LA1
Total workforce by employment type, employment contract, and region.
25
LA4
Percentage of employees covered by collective bargaining agreements.
26
LA12
Percentage of employees receiving regular performance and career development reviews.
26
Social: Society
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
29
Social: Product Responsibility
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
NOTES:
(1) Cooper Industries plc 2009 Annual Report, http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-reportsAnnual
(2) “About this Report” on inside front cover
(3) Inside back cover
(4) “Corporate Governance-Highlights” on Cooper Industries’ website, http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-govHighlights
30
17–18
For more information, contact:
Mark Doheny
Director of Investor Relations
Cooper Industries
mark.doheny@cooperindustries.com
About This Report
The 2009 Cooper Industries plc Corporate Social Responsibility Report follows the release of
the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report. As Cooper’s second
corporate social responsibility report (CSRR), the 2009 CSRR represents Cooper through
calendar year 2009 unless otherwise stated. To develop the 2009 CSRR, Cooper adopted the
same scope, boundary and measurement methods that it used to develop the 2007 CSRR.
Cooper intends to continue releasing a CSRR on a biannual basis.
Cooper’s 2009 CSRR conforms to the principles outlined in the Global Reporting Initiative (GRI)
Sustainability Reporting Guidelines version 3.0 (G3). The GRI is a voluntary, internationally
recognized framework for sustainability reporting that allows organizations the opportunity to
measure and report their economic, social and environmental efforts in a consistent manner.
The GRI also offers a variety of application levels, which show the extent to which G3 guidelines
have been applied throughout the report and provide guidance on how organizations can
continuously improve their reporting. Based on an internal review, Cooper determined that this
report achieves a GRI C-level application.
Report Application Levels
GRI
Checked
B
B+
A
A+
Report Externally Assured
Third
Party
Checked
C+
Report Externally Assured
Mandatory
Optional
Self
Declared
C
Report Externally Assured
2002
In Accordance
Some statements in this report are forward-looking and relate to the manner in which Cooper
intends to conduct certain activities, based on management’s current plans and expectations.
The Cooper Industries plc 2009 Annual Report discusses important factors that could impact
whether any of the forward-looking statements materialize.
Corporate Headquarters
Cooper Industries plc
5 Fitzwilliam Square
Dublin 2, Ireland
Administrative Headquarters
Cooper Industries
600 Travis Street, Suite 5600
Houston, TX 77002-1001
713-209-8400
Mailing Address
Cooper Industries
P.O. Box 4446
Houston, TX 77210-4446
Website
www.cooperindustries.com
Credits
Strategy and Report Development: Burns & McDonnell / www.burnsmcd.com
Designed by Curran & Connors, Inc. / www.curran-connors.com
Cooper Industries is proud to be selected for inclusion in the highly respected socially
responsible stock index, FTSE4Good, and leading intellectual property index, Ocean Tomo 300.
For more information, contact Investor Relations.
Corporate Social Responsibility Report
Cooper Industries plc
Cooper Industries plc
5 Fitzwilliam Square
Dublin 2, Ireland
Administrative Headquarters
600 Travis Street, Suite 5600
Houston, TX 77002-1001
www.cooperindustries.com
To view this report online or to download a PDF, visit www.cooperindustries.com.