2013 Global Citizenship Report
DEMONSTRATING
COMMITMENT IN ACTION
CHAIRMAN’S MESSAGE
OUR COMMITMENT IN ACTION
John Deere is setting financial records as we find new and better ways to serve those
linked to the land. In the same way, we remain deeply committed to fulfilling our
duties as a responsible corporate citizen to our neighboring communities and society
at large. Deere is widely admired for its citizenship efforts. And our contributions
to philanthropy, environmental sustainability, safety, and employee success made
further advances in the past year.
John Deere’s long-standing
commitment to safeguarding the
environment is reflected in
our facilities, our products, and
our employees worldwide.
ENVIRONMENT
Highlighting the importance of responsible stewardship, the company established
an aggressive set of eco-efficiency goals to reduce the environmental impact of
its products and operations. We also launched an awards program that recognizes
extraordinary contributions to environmental performance. And we continued
to introduce new products that lessen environmental impact. One example is the
644K Hybrid Wheel Loader, which reduces fuel use by as much as 25 percent
compared with conventional models.
As an extension of ongoing efforts
to reduce our environmental
footprint, the company has
adopted aggressive 2018 Enterprise
Eco-Efficiency Goals.
PHILANTHROPY
The John Deere Foundation continued efforts to alleviate hunger and advance
education and community development through initiatives such as the BackPack
program. BackPack provides weekend food to hungry school children. In addition to its
annual support of the Red Cross, the foundation also aided disaster recovery efforts
following Hurricane Sandy and matched employee relief contributions. Thousands of
John Deere employees volunteered in their communities during the year as part of
a “Celebrate Through Citizenship” initiative marking the company’s 175th anniversary.
SAFETY
Our rigorous approach to workplace health and safety continued to produce safety
records that are among the best in the world. Many units have logged millions of
work-hours without incurring lost-time injuries. Our products reflect the same
concern for safety. As one example, our adaptive cab suspension available for some
tractors anticipates and compensates for motion, giving better control.
EMPLOYEE WELL-BEING
Deere’s employee development and teamwork training methods are one reason the
company is regularly recognized, as it was in 2012, as among the best places to work
in various countries.
In citizenship, as in everything we do, unshakable adherence to our core values of
integrity, quality, commitment, and innovation continues to earn John Deere a place
on annual lists of the most ethical and admired companies and most valuable brands.
This report provides a few illustrations of our global citizenship approach. More
information is available on our website (www.JohnDeere.com). Also there you’ll find
our Global Reporting Initiative index. It reflects our support of the initiative as a
framework for global sustainability reporting.
On behalf of the John Deere team,
Samuel R. Allen, Chairman and CEO
COVER: John Deere Argentina employees planted trees in a park near their factory
in Granadero Baigorria as part of the company’s 175th anniversary celebration.
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ENVIRONMENT
The goals do more than address
environmental sustainability and
responsible management of natural
resources; they also support
our efforts to grow and achieve
our business objectives.
2018 Enterprise Eco-Efficiency Goals
15%
Reduce energy consumption and greenhouse
gas emissions by 15% per ton of production
15%
Reduce water consumption by 15% per ton
of production
75%
Recycle 75% of total waste
Use life cycle engineering to create products and services
that meet customer needs and reduce their environmental impact
ENGINEERING CENTER LENDS
NATURE A HAND
Maintaining a wetlands area is easy –
just let it be.
However, maintaining 80 acres of wetlands
adjacent to an engineering, development,
and testing facility requires balancing
competing interests – something
employees at John Deere’s Global Crop
Harvesting Product Development Center
(PDC) are committed to doing.
To protect wetlands surrounding our Silvis,
Illinois, facility while meeting the demands
of increasingly complex and frequent
equipment testing, employees developed
a two-pronged approach. It involves
education and facility design and
management.
All employees at the site are trained on the
potential risks of operating near wetlands.
Workers posted signs and painted and
labeled storm drains as reminders to protect
the wetlands. They also landscaped using
native trees, grasses, and perennials.
Employees redesigned and updated existing
testing areas rather than build new ones.
When the facility was expanded, PDC made
sure the new building and parking projects
affected only low-impact areas – not the
neighboring wetlands.
Results have been rewarding for both the
company and environment: PDC expanded
its testing capabilities while developing a
wildlife refuge that hosts native populations
of deer, turkeys, and ducks, as well as
migrating waterfowl.
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CELEBRATING THROUGH CITIZENSHIP
Last year, to honor our 175th anniversary,
John Deere challenged employees to
“Celebrate Through Citizenship” by
demonstrating their commitment to social
responsibility. Many units chose projects
promoting sustainability and environmental
awareness.
At seven John Deere facilities in Mexico, we
helped collect e-waste – electronic items
whose hazardous components require
separate disposal – as part of a campaign to
encourage more environmentally conscious
disposal habits.
PUNE EXCEEDS AMBITIOUS
ENVIRONMENTAL GOALS
John Deere Pune Works in Maharashtra,
India, has grown rapidly. So have its
demands on the environment.
As tractor output more than doubled in
recent years, the facility’s sprawling paint
shop consumed more energy, water, and
liquefied propane gas (LPG). More hazardous
waste was produced as well.
So a group of employees and managers set
out to reduce the paint shop’s environmental
impact. Their goal was to shrink energy,
including liquefied propane gas, and water
requirements, as well as hazardous waste
generation, by 5 percent in each category.
The Pune team saw many opportunities
to save energy by optimizing equipment
ratings and reducing or eliminating idle
running time. They also shortened
equipment cycle time and, in another case,
saved some 5,000 liters of water daily by
installing a sensor on a sprayer line.
Redesigning one process reduced LPG
use on a paint hanger line by 3 kilograms
per tractor and increased productivity
by 70 percent.
Nearly 700 employees from our John Deere
Brazil facility in Catalão planted 4,000
saplings. John Deere Argentina employees
planted a tree for every year we’ve been in
business to help landscape a new park
adjoining the Rosario-Victoria Bridge. And
in Mexico, employees planted 175 trees
in public parks in Monterrey while workers
from our Torreon facility delivered 1,500
trees to be planted locally.
These and dozens of other volunteer
activities reflect our employees’ personal
commitment to citizenship and the
environment.
The team cut hazardous waste production
by replacing conventional liquid paint
with powder coating. The switch more than
doubled paint efficiency and eliminated
volatile organic compounds.
Results far exceeded the original goals.
Annual energy and water consumption
per tractor was reduced by more than
20 percent. Paint sludge produced per
tractor declined by a similar amount.
64.6
2010
69.2
72.5
2011 2012
Total Waste
2.9
3.1
Kilograms per metric ton
of production
2010 2011 2012
Hazardous Waste
0.54
0.53
0.49
Kilograms per metric ton
of production
Indirect
Emissions
Direct
Emissions
2010
2011
2012
Greenhouse Gas
Emissions
Metric tons of CO2-equivalent
per metric ton of production
Total waste, hazardous waste,
and water charts are for the fiscal
year. Greenhouse gas emissions
data is for the calendar year.
As necessary, previously
reported data has been restated
due to acquisitions, d ivestitures,
and improved accuracy.
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2.5
11.4
9.0
9.0
2010 2011 2012
Total Water Consumption
Cubic meters per metric ton
of production
Working through local John Deere dealers, we
donated six Gator TM utility vehicles to assist in search
and recovery efforts and to support warehouse
operations in the aftermath of Hurricane Sandy.
PHILANTHROPY
John Deere’s proud legacy of
philanthropy continued in 2012,
with the company and the
John Deere Foundation
contributing more than $24.4
million to support citizenship
initiatives around the globe.
Guided by our focus areas
of solving world hunger,
empowering others through
education, and developing our
communities, we invest with
purpose to achieve sustainable,
measurable outcomes.
Simply put, we want to make a
positive difference in John Deere
communities around the world
through both philanthropy
and employee volunteerism.
IMPROVING LIVES IN RURAL INDIA
Tackling the most pressing challenges of
poverty at their very core is the idea
behind the John Deere Foundation’s JIVA
(Joint Initiative for Village Advancement)
project in the state of Rajasthan, India.
The project addresses the life-changing
issues of food and income security,
education, and infrastructure in three
rural villages.
A community needs assessment
conducted last fall by the John Deere
Foundation and a partner agency served
to build rapport, collapse barriers, and
open up dialogue with stakeholders,
including farmers, teachers, health care
workers, and agriculture officers.
JIVA is now in the program development
phase, addressing critical needs such
as agricultural practices, better access
to quality education, and improved
sanitation. It’s hoped the lessons and
success of this pilot project can be
replicated in other parts of the world.
PREPARING FOR DISASTER
No one knows when or where disaster will
strike. That’s why we support the American
Red Cross and International Red Cross,
organizations that mobilize disaster services
quickly, efficiently, and effectively.
As a member of the American Red Cross
Annual Disaster Giving Program, the
John Deere Foundation contributes more
than $500,000 annually for disaster
preparedness in the U.S. and around the
world. When Hurricane Sandy ravaged nine
U.S. states in October 2012, we donated
an additional $150,000 to the Red Cross,
including employee matching gifts.
John Deere Foundation 2012 Contributions
Community Development
Solutions for World Hunger
Education
Disaster Relief
15%
24%
5%
56%
“John Deere has always been
generous with the Red Cross.
The people really appreciate it.”
– John Deere retiree
and Red Cross volunteer
Pat D’Alessandro
The John Deere Foundation is partnering with CDC Development Solutions to improve three rural Indian villages.
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JOHN DEERE INSPIRE SUPPORTS
STEM LITERACY AROUND WORLD
Being competitive in a technology- and
innovation-driven global economy is
increasingly dependent on having a high
quality, diverse workforce with strong
STEM (Science, Technology, Engineering,
and Math) skills. With some 40 percent
of Deere’s salaried employees working
in STEM-related positions, we know the
importance of preparing students for
21st century learning and jobs.
Introduced in 2012, the John Deere Inspire
global initiative connects employee
volunteers with school-aged children,
sparking their interest in STEM professions
through hands-on experiences.
Working primarily through strategic
partners FIRST (For Inspiration and
Recognition of Science and Technology)
and Project Lead the Way, our volunteers
mentored robotic teams, judged
international LEGO championships, and
hosted summer externship assignments
for STEM-related teachers.
In all, some 300 employees volunteered
15,000 hours over the past year to inspire
the next generation of innovators.
SUPPORTING EDUCATION
IN RURAL CHINA
John Deere Harbin (China) Works employees
are demonstrating their commitment to
those linked to the land by volunteering
at a nearby elementary school, many of
whose students come from farm families.
Employees first visited Gongnong
Elementary School in 2012 to deliver
200 books donated by factory staff,
30 backpacks, and other supplies.
Today, employees continue to volunteer at
the school, mentoring students in math,
science, and English-language lessons.
In 2012, the
John Deere Foundation granted
$211,882
in employee matching gifts.
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John Deere employees
last year recorded more than
VOLUNTEERISM
40,000 Hours
of volunteer service.
Being a responsible corporate
citizen is as much about donating
time, talent, and passion as
donating money. Employees
have enthusiastically embraced
our company’s newly launched
volunteerism initiative, recording
more than 40,000 hours of
volunteer service in 2012, all
while improving the condition
of our communities.
To further encourage employees to
volunteer and track their volunteer
hours, the John Deere Foundation
launched a Dollars for Doers
program in 2012. Under the
program, employees may earn
a $1,000 grant for an approved
charity at which they have
volunteered 40 or more hours
in a year.
“What a terrific program and
encouragement for your
employees to be active in their
communities. This Dollars for
Doers support will help us
continue our efforts …in our
community and beyond.”
– Susan Corrado
Farley Center for Peace,
Justice and Sustainability
Verona, Wisconsin
April Talbot and Meals from the Heartland Executive
Director Dave Bradley take a break from packaging meals.
FIGHTING HUNGER FROM THE HEARTLAND
April Talbot’s 11 years of project
management experience at John Deere
Financial in Johnston, Iowa, serve her
well in her volunteer work at Meals from
the Heartland (MftH). The locally-based
organization packages meals of rice,
soy protein, dried vegetables, vitamins,
and minerals for distribution to hungry
people around the world.
As a board member, April takes pride
knowing that MftH has packaged more than
22 million meals since its inception in 2008.
She puts her passion and job skills
into action by organizing and managing
MftH’s Annual Hunger Fight each summer.
The week-long event brings together
15,000 volunteers, including many of her
colleagues, to produce five million meals.
“I have met so many amazing people
through volunteering – it’s a great
networking tool,” April says. “Not only
can I apply my knowledge from work to
this project, I’ve used the skills learned
while volunteering to be a better leader
in my company.”
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SAFETY
Providing a safe and healthy work
environment is a part of
responsible corporate citizenship.
Deere’s commitment to safety
resulted in further improvement in
2012 to an already exemplary
safety record. The rate of injuries
causing time away from work
reached a record low, and more
than half of our locations did not
report a single lost-time incident.
Lost-Time Injury
Frequency Rate
Lost-Time Injury
Severity Rate
Injuries per
200,000 hours worked
Days lost per
200,000 hours worked
0.26
6.94
2010*
0.19
2011
0.14
2012
2010*
3.99
2011
*2010 metrics include 20 new reporting sites.
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2.40
2012
NEW EMPLOYEES GET THE MESSAGE:
WORK SAFELY, GO HOME HEALTHY
John Deere has long been a leader in
workplace safety and works hard to instill
a strong safety culture.
While this holds true for every facility, it’s
especially important at new John Deere and
joint-venture factories. At Leyland Deere,
a newly-built construction-equipment
factory in Gummidipoondi, India,
instructing employees in company safety
practices starts before they’re even hired.
Prior to getting a job offer, prospective
employees complete several weeks of
safety training. Once hired, they receive
personal protective equipment and
extensive training on its proper use. Safety
issues are discussed at daily production
meetings and safety-related messages
appear throughout the factory.
Workplace safety is everyone’s business,
and we’re committed to a culture in which
each employee’s health and welfare is a
top priority.
69 119
of
Deere locations went without
a lost-time injury during FY 2012.
39
By the end of FY 2012
Deere locations had exceeded
1,000,000 HOURS
without a lost-time injury.
SMALL SITES POST BIG SAFETY NUMBERS
Operating 10 or more consecutive years
without a lost-time injury is impressive.
But it’s not surprising in a company like
John Deere that places such a high priority
on workplace safety. This elite group
of facilities shares a common focus on
safety day-in and day-out through effective
programs and processes, employee
engagement, and management
commitment.
John Deere Fabriek Horst B.V., Netherlands,
hasn’t recorded a lost-time injury in nearly 11 years.
Longest-Running Facilities without Lost-Time Injury
John Deere Cylinder Group
September 1995
Moline, IL
Regional Distribution Center Monterrey, Mexico
August 2000
Regional Distribution Center
Lathrop, CA
October 2001
John Deere Fabriek Horst B.V.
Horst, Netherlands
August 2002
John Deere Cary
Cary, NC
June 2003
Many of these facilities have small
workforces, so none is likely to match
Dubuque (Iowa) Works’ record of 16 million
hours without a lost-time injury. Their
commitment to safety, however, is every
bit as uncompromising.
Topping the list of longest-running facilities
without a lost-time injury is John Deere
Cylinder Group, Moline, Illinois, where
the last recorded lost-time injury was in
September 1995. Now that’s impressive!
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EMPLOYEE WELL-BEING
Nothing gives John Deere a
greater long-term competitive
advantage than fully engaged
employees. Our success begins
with building a dynamic, inclusive
business in which employee
contributions are recognized,
respected, and rewarded.
John Deere has many practices
and programs in place that
support and strengthen our
valued human resources.
WORK-LIFE MANAGEMENT
Building strong John Deere teams requires
recognizing the need for flexible work
arrangements. Thus we support work-life
management by offering flexible schedules,
telecommuting, and part-time work options.
In 2012, we added to the long list of places
where employees can work from home with
their supervisor’s approval. Among the
countries in which Deere now offers
flexible work arrangements are the U.S.,
Canada, China, India, Ireland, Luxembourg,
and the United Kingdom.
Flexible schedules, along with employee
well-being programs available in many
countries around the world, are ways we
support the whole employee, rather than
focusing just on time spent at work.
This boosts employee engagement and
contributes to the company’s business
performance.
EMPLOYEE RESOURCE GROUPS
To build a sense of rapport, teamwork,
and understanding in its workforce,
John Deere supports a wide range of
employee resource groups at facilities
around the world – and that network
continues to expand.
Among 40 such groups, one of the
fastest-growing is WomenREACH (Relating,
Enriching, Achieving, Challenging, and
Helping). It aims to help women build
professional relationships.
Other resource groups bring together
new and experienced employees, those
from multicultural backgrounds, parents
and caregivers, and the LGBT (Lesbian,
Gay, Bisexual, Transgender) community.
John Deere added a new Teleworkers
Unlimited group in 2012.
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MANAGING STRESS
After surveying a random sample of 2,000
John Deere employees around the world
about workplace stress, the company
created a video series in 2012 to address
the issue. In the videos, leaders recognized
for positive employee-engagement behavior
talk about how they manage stress in their
own lives and help their employees do so
as well.
“We hope to model good manageremployee relations for newer managers
while at the same time inspiring all
employees to take care of themselves,”
says Gail Henderson, manager, work-life
benefits planning and programming.
HEALTHY FOOD OPTIONS
Eating healthy at John Deere is now
an easy choice, thanks to new global
guidelines for food suppliers announced
in 2012.
The guidelines require suppliers to
furnish more healthy food options in
employee cafeterias, vending machines,
and catering services.
HIGHLY ALIGNED TEAMWORK
Employees aligned in a common purpose are
a powerful force. But aligning nearly 67,000
employees in locations around the world
can prove challenging. To help those of all
backgrounds work together productively,
we offer specialized training at Deere sites
throughout the world.
In 2012, the company expanded its efforts
to train each employee in the importance
of working inclusively and building inclusive
teams. Courses teach employees how to
manage differences through a better
understanding of themselves and others.
“I’ve just always liked
working here. I feel fortunate.
It’s a great company.”
– 50-year employee
Tom Sparrow
Cylinder Works, Moline, IL
This results in a workplace that values
diversity and inclusion, both of which are
essential qualities for aligned, highperformance teamwork.
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2012 AWARDS
–– World’s Most Admired Companies, Fortune magazine
–– America’s Most Reputable Companies, Reputation Institute and Forbes.com
–– World’s Most Ethical Companies, Ethisphere Institute
–– Most Honored Company, Institutional Investor magazine
–– Best Global Brands, Interbrand consulting firm
–– Corporate Board Award, Kellogg School of Management, Northwestern University
–– 100 Best Places to Work in Brazil, Great Place to Work Institute
–– Best Employers in Argentina, Apertura business journal
–– Great Place to Work in Mexico, Great Place to Work Institute and Gestión magazine
–– Best Employer, Guanghua School of Management, Peking University
–– Top 100 Employers Among German Engineering Students, WirtschaftsWoche magazine
–– Most Innovative Users of Business Technology, InformationWeek magazine
Deere & Company
One John Deere Place
Moline, Illinois 61265
(309) 765-8000
www.JohnDeere.com
GCRAN Litho in U.S.A. (13-05)