Fortive Corporation Annual Sustainability Report

Accelerating Progress Toward
A Sustainable Future
Fortive Corporation Annual Sustainability Report | 2022 Reporting Year

Appendix ESG Disclosure Frameworks|

Introduction1Fortive Corporation Annual Sustainability Report|

Appendix

2

Appendix
Introduction

3

Data Tables

4

United Nations Global Compact Communication on Progress Index

11

Task Force on Climate-Related Disclosures Index

13

United Nations Sustainable Development Goals

15

Sustainability Accounting Standards Board Index

17

Global Reporting Initiative

19

Fortive Corporation Annual Sustainability Report|

Appendix

3

APPENDIX

Introduction
In addition to the policies, initiatives, and goals outlined in this report, Fortive is committed to transparency and accountability for all
financial and non-financial impacts. To benchmark our performance against well-established standards, we have gathered and submitted
data consistent with the following frameworks:nUnited Nations Global Compact (UNGC) Communication on
Progress Indexn

The SDGs were adopted by all UN member nations in 2015,
provide a shared blueprint for peace and prosperity for people
and the planet, now and into the future. The goals are an urgent
call for action by all countries in recognition that ending poverty
and other deprivations must go hand-in-hand with strategies
that improve health and education, reduce inequality, andspur economic growth – all while tackling climate change, andworking to preserve our oceans and forests.

The UNGC requires participating companies to produce anannual communication that details their work to embed the 10
principles of the Compact into their strategies and operations,as well as efforts to support societal priorities.
n

Task Force on Climate-Related Disclosures (TCFD) Index
The Financial Stability Board (FSB) created the TCFD to develop
recommendations on the types of information that companies
should disclose to support investors, lenders, and insurance
underwriters in appropriately assessing and pricing risks related
to climate change.

United Nations Sustainable Development Goals (UN SDGs)n

Sustainability Accounting Standards Board (SASB) Index
SASB standards guide the disclosure of financially material
Sustainability information by companies to their investors and thefinancial community. Available for 77 industries, SASB identifies
the subset of environmental, social, and governance (ESG) issues
most relevant to financial performance in each industry.

nGlobal Reporting Initiative (GRI) Index
GRI was the first accountability mechanism to ensurecompanies adhere to responsible ESG principles. Overtime, GRI has broadened to reflect the breadth of ESG
issues, guiding businesses and other organizations to takeresponsibility for the actions and impacts by providing acommon language for communication.

ESG Governance Model
The Nominating and Governance Committee of Fortive’s Boardof Directors has responsibility for ESG disclosure and reporting.
Fortive’s Senior Vice President and General Counsel Peter
Underwood reports to the CEO and provides regular updates tothe Board, Fortive’s senior leadership team, Segment CEOs, andoperating company leaders about Sustainability-related initiatives
and performance. The Corporate Sustainability team, led by SeniorDirector, Alexis Fuge, is responsible for developing and deploying the
Sustainability strategy across the company.

ESG Disclosure Task Force
In 2022, we established an ESG Task Force, chaired by the
Corporate Secretary, Chief Accounting Officer, and SeniorDirector of Sustainability. The Task Force’s duties include advising
the Board and executive leadership on an action plan and process
to update Fortive’s disclosure controls and procedures to ensurethat the controls and procedures for climate-risk disclosure are
effective and in compliance with applicable rules.
Although the U.S. Securities and Exchange Commission (US SEC)
has delayed in issuance of their final Climate risk-related rule,
we continue to prepare for the growing ESG regulatory climate
across the globe.

Fortive Corporation Annual Sustainability Report|

Appendix

APPENDIX

Data Tables
Stakeholder Engagement
Stakeholder Audience

Frequency

Engagement Approach

Topics of Discussion – Goals, Initiatives, Performance
Environmental

SocialGovernance•

Employees

Quarterly, Monthly, Weekly

Sustainability Report CEO Message, internal All-hands, all-employee newsletters, company intranet••

Customers

Ongoing

Operating company sales and product leaders’ communications with customers••

Shareholders

Quarterly

Quarterly results

•

•

•

Suppliers

Suppliers

Supplier questionnaire••(theirs)

Local Communities

Annually and ad hoc

Day of Caring, ongoing engagement via local events and partnership activities••

Other (Insurance Agencies)

Ongoing

Sustainability Report, insurance applications, underwriter Q&A

•

•

•

4

Fortive Corporation Annual Sustainability Report

2022 Employee Diversity
Metric|Appendix2022 Parental Leave
2022

Gender1

MetricMale

FemaleTotal

Eligible

7,810

3,656

11,466

Female38%

Took parental leave

258

161

419

Male

62%

Returned to work

244

152

396

Retention after 12 months

225

138

363

Return to work rate

95%

94%

95%

Retention rate

87%

86%

87%

Employment type2
Permanent hourly

4,617

Temporary hourly

78

Full-time, salaried

12,192Part-time, salaried

261

Employee Experience Survey Results1

Region3

North America (excl. Mexico)

10,361

Europe

2,625

Asia

2,973

Australia and New Zealand

224

Latin America (incl. Mexico & Caribbean)

501

Middle East & Africa

115[1] Gender data represents global, salaried, FTE, and PTE employees[2] Global headcount[3] All employees globally, including temporary, contractor, part-time workers

5

Metric

2019

2020

2021

2022

Overall Employee Engagement Score

73%

77%

77%

78%

Inclusion and Belonging Score

79%

80%

80%

82%

My supervisor gives me the support I need to do my job well.

79%

81%

81%

84%

I am provided with opportunities for learning and development.

73%

74%

74%

76%

[1] The Employee Experience Surveys are a critical element of our continuous improvement culture. With over 80% of our global team participating in our quarterly surveys over the last twelve
months, we continue to gain deep, frequent insights about our employees’ experiences to inform and improve the work experience of our global team. Similar to other companies in ourbenchmark data set as we emerge from the COVID-19 pandemic, we saw a decline in Engagement to 74% in our most recent survey. Reflective of the broad impact of leading and working throughthe challenges throughout the last two years. We are taking action through monthly operating reviews in our operating companies, and in 2021 we improved our ability to take action by providing
our people and leaders with resources to manage our evolving hybrid work approach. Our team continues to share a strong sense of inclusion and belonging, with that index score holding at 80%
favorable. Inclusion is an important part of hearing from all voices, innovating and servicing our customers. We remain committed to achieving a rating in the top 25% of benchmarked companies
across all of our indices—creating the best places to build your career and have an impact in the world.

Fortive Corporation Annual Sustainability Report|

Appendix2022 Employee Diversity
MetricSenior Leaders1

Professionals and Managers

Total

Age Range <30

Age Range 30–50

Age Range 50+

Women2

32%

33%

38%

13%

57%

30%

Men

68%

67%

62%

12%

54%

34%

BIPOC3

23%

28%

36%

16%

50%

34%

Non-BIPOC

77%

72%

64%

11%

44%

45%

Our 2021 Metrics

Our 2022 Metrics% Change (2021-2022)

Our 2025 Goals

Gender Representation

37%

38%

+1.00%

50%

Gender Representation in Professional & Management

32%

33%

+1.00%

48%

BIPOC Representation

34%

36%

+2.00%

37%

BIPOC Representation in Professional & Management

27%

28%

+1.00%

36%

Senior Leader Diversity

43%

44%

+1.00%

50%

Inclusion & Belonging Score in Employee Experience Survey

80%

82%

+2.00%

85%[1] Senior Leaders: Employees in Director level roles or higher[2] Gender data represents global, salaried, FTE, and PTE employees. Diversity data represents U.S. employees.
[3] BIPOC includes Asian, Black or African American, LatinX, and Other (Native American or Alaska Native, Native Hawaiian or Pacific Islander, and “Two or More Races”)

Inclusion and Diversity
Metric[1] Women and U.S. Male BIPOC Director+

6Fortive Corporation Annual Sustainability Report|

Appendix2022 Employee Benefits
MetricU.S. Non-Union

Canada

U.K.

China

Life insurance

Yes

Yes

Yes

Yes

Health care

Yes

Yes

Yes

Yes

Disability and invalidity coverage

Yes

Yes

Yes

Yes

Parental leave

Yes

N/A1

N/A1

N/A1

Retirement provision

Yes

Yes

Yes

Yes

Stock ownership

Available based on role through retirement plan

Available based on role and seniority

Available based on role and seniority

Available based on role and seniority

OthersDental, Vision, HSA, FSA, DCFSA, Basic Life,
Voluntary EE Life, Voluntary EE ADD, Voluntary SP
Life, Voluntary Child Life, ID Theft, Legal Services,
Critical Illness, Accident Insurance, Hospital
Indemnity, EAP, Backup/ Emergency Childcare
and Eldercare, Financial Well-Being

N/A1

N/A1

N/A1

[1] Our employee benefits are generous across the globe, but because our cross-operating company benefits are only harmonized in the United States, China, the United Kingdom, and Canada,
we have focused on those countries. Those four jurisdictions make up over two-thirds of our employee population. Exact benefits, both company-provided and those subsidized by the local
government(s), vary by operating company and locality outside of the United States, China, the United Kingdom, and Canada.

7

Fortive Corporation Annual Sustainability Report|

Appendix

Energy Use and Greenhouse Gas (GHG) Emissions
MetricUnit of Measure

2019

2020

2021

2022

2019-2022 (% change)

EnergyNatural Gas

mmBtu

153,077

152,508

142,447

155,645

1.7%

Diesel Fuel

liters215,773

154,536

177,390202,264-6.3%

No. 2 Fuel Oil

liters49,71587,866

18,39018,603

62.6%

Electricity

kWh137,276,946

127,800,258

125,298,331

126,298,570-8.0%

Emissions
Scope 1MT CO2e21,071

19,631

13,81815,428-26.8%

Scope 2

MT CO2e44,75940,055

38,10235,692-20.3%

Scope 1 & 2

MT CO2e65,83059,68651,92051,120-22.4%

Absolute Delta (YOY)

YOY

-9.3%

-13.0%-1.5%

8

Fortive Corporation Annual Sustainability Report|

Appendix

Environmental Health and Safety (EHS) Metrics and Certifications
Operating Company

SafetyTRIR

DART

Hazardous Waste

No. of Certifications at EHS Significant Manufacturing Sites

Reported Quantity
Hazardous Waste (lbs)

ISO 14001
or 450013

ISO 90011

2

OHSMS
or OSHA VPP5
4Advanced Healthcare Solutions (AHS)[1] ISO 9001: Quality[2] ISO 14001: Environmental Manegement[3] ISO 45001: Energy Management[4] OHSMS: Occupational Health & Safety
Management System

Advanced Sterilization Products

0.39

0.24

360,545

Censis Technologies

0.00

0.00

Fluke Health Solutions

0.00

0.00

Provation

0.00

0.00

Invetech

0.30

0.30

Accruent

0.00

0.00

Service Channel

0.00

0.00

Fluke

0.25

0.09

Gordian

0.00

0.00

Intelex

0.00

0.00

Industrial Scientific

0.30

0.15

Anderson-Negele

0.45

0.45

Gems Sensors

1.20

0.20

7,229

2 of 2 (100%)

1 of 2 (50%)

Hengstler Dynapar

0.15

0.15

9,293

5 of 5 (100%)

1 of 5 (20%)

Pacific Scientific

0.90

0.39

137,486

2 of 2 (100%)

2 of 2 (100%)

1 of 2 (50%)

Qualitrol

0.59

0.20

15,976

4 of 4 (100%)

2 of 4 (50%)

2 of 4 (50%)

Setra

0.00

0.00

Tektronix

0.32

0.30

[5] OSHA VPP: Occupational Health & Safety
Administration Voluntary Protection Program(U.S. only)

2,207

1 of 1 (100%)

15,108

8 of 8 (100%)Intelligent Operating Solutions (IOS)

Precision Technologies (PT)
2 of 3 (66%)
1 of 2 (50%)

1 of 1 (100%)
9,176

5 of 6 (83%)

2 of 6 (33%)

No. of Certifications at EHS Significant Manufacturing Sites

30

8

4

Total No. of EHS Significant Manufacturing Sites Across Fortive

32

32

32

Percentage of EHS Significant Manufacturing Sites with Certifications

94%

25%

13%

9

Fortive Corporation Annual Sustainability Report|

Appendix

10

Membership Associations
n
n
n
n
n
n
n
n
n
n
n
n

n

n
n
n

n

n
n
n
n
n
n
n

n
n
n

n
n

n

ABIMAQ – Brazilian Association of Machinery and Equipment Industry
ACC – Association of Corporate Counsel
ACM – Association for Computing Machinery
AHA - American Hospital Association
AIAA - American Institute of Aeronautics and Astronautics
AIST – Association for Iron and Steel Technology
ANSI – American National Standards Institute
APS - American Physical Society
ARM – Alliance for Regenerative Medicine
ASA – American Supply Association
ASHE – Association for Safe Healing Environments
ASHRAE – American Society of Heating, Refrigeration and Air
Conditioning Engineers
ASME BPE – American Society of Mechanical Engineers: Bioprocessing
Equipment ASNT – American Society for Nondestructive Testing
ASTM – American Society for Testing and Materials
Avixa
BayMe VBM – Bayerische M+E (Employers’ Associations of the Metalworking
and Electrical Industries)
BICSI - supporting the advancement of the information and communications
technology (ICT)BISS Association
BSI - British Standards Institute (UK)CC-Link Partner Association
CCRM – Industry Consortium for Regenerative Medicine
CCSA - China Communications Standards Associatio
CDCC - China Data Center Committee
CECOD – Committee of European Manufacturers of Petroleum Measuring
and Distributing Equipment
CEN – European Committee for Standardization
CharIn - Charging Interface Initiative e. V.
China Society for Electrical Engineering Committee of Electromagnetic
Measurement
CiA – Canadian Industrial Auctioneers CII – Confederation of Indian Industry
CIGRE- Conseil International des Grands Réseaux Electriques (Council on
Large Electrical Systems) (Europe)
CompTIA – Computing Technology Industry Association

n

n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n

n
n

n
n
n

n
n
n

n
n

DICA - Defense Information Communication Association
Gambica Association Ltd (UK)DIN – Deutsches Institut für Normung
EHEDG – European Hygienic Engineering and Design Group
Energy Institute
Ethernet Alliance
Evofenedex (Netherlands)
Fachausschuss FA 8.14 & 8.16 – Technical committees for heat and temperature
FEF – Forecourt Equipment Federation
FISA – Distributors Serving Sanitary Processing association
IEC – International Electrotechnical Commission
IEEE – Institute of Electrical and Electronics Engineers
IHK – Association of German Chambers of Commerce
IJPC - International Journal of Pharmaceutical Compounding
IPC – formerly the Institute for Interconnecting and Packaging Electronic Circuits
ISA – Industrial Supply Association
ISCT – International Society of Cell and Gene Therapy
ISHRAE – Indian Society of Heating, Refrigeration and Air Conditioning Engineers
ISO - International Organization for Standardization
ISPE – International Society for Pharmaceutical Engineering
Japan Profibus Association
JEITA (Japan Electronics and Information Technologies Industries Association)
Johanniter Unfall Hilfe e.V (Die Johanniter) – Voluntary humanitarianorganization
Korean Industry Association and Chambers of Commerce
LBM – Lhr Aktiver Berufsverband (State Association of Bavarian and Saxon
Dairy Specialists and Dairy Farmers)
MA - Manufacturers Alliance (formerly MAPI)MCAA – Measurement, Control and Automation Association
MSC – Manufacturers and Services Council NACS – National Association ofConvenience Stores
NAED – National Association of Electrical Distributors
National Safety Council
National Technical Committee of Standard Voltages, Current Ratings andFrequencies
National Technical Committee of Temperature Metrology
NCSLI – National Conference of Standards Laboratories

n
n
n
n
n
n
n
n
n
n
n
n

n
n
n
n
n
n
n
n
n
n
n

n
n
n
n
n
n
n

n
n
n
n

NCWM - National Conference on Weights and Measures
NECA
NEMA – National Electrical Manufacturers Association
NEMRA – National Electrical Manufacturers Representatives Association
NIST - National Institute of Science and Technology
ODVA – Open DeviceNet
Open Industry 4.0 Alliance
Optec BB
Patentverein
PCI – Payment Card Industry Security Standards
PEI – Petroleum Equipment InstitutePrivate Brauerein Föderverien – Association for the promotion of mediumsized private breweriesProfibus Nutzeroganisation
Reflow Over Control Task Force Reflow Profiling Task ForceRegelermittlungsausschuss – Legal Metrology association
SEA - Society of Automotive Engineers
Silicon Saxony
SITAC – Sensors and Instrumentation Technical AdvisorySociety for Women Engineers
Spartanburg Chamber of Commerce
SPEC - Single Pair Ethernet Consortium
SPIE – Society of Photo-Optical Instrumentation Engineers
Test & Measurement Coalition led by EPPA – Emergency PhysiciansProfessional Association
TIA - Telecommunications Industry Association
TIA/FOTC
TIA/SEPCUBIC (Brazillian Union of Cabling Installers)
VDE - Association for Electrical, Electronic & Information Technologies
VDMA – Mechanical Engineering Industry
VDSI – Verband für Sicherheit, Gesundheit und Umweltschutz bei der Arbeit(German OSHA)
Washington State Bar Association (WSBA) (US)
Women in Manufacturing
WVIB – Wirtschaftsverband Industrieller Unternehmen Baden e.V.
ZVEI – Zentralverband Elektrotechnik- und Elektronikindustrie eVFortive Corporation Annual Sustainability Report|

Appendix

APPENDIX

United Nations Global Compact Communication
on Progress (UNGC CoP) Index
Our operations, policies, and practices are aligned with the 10 Principles of the Global Compact, which are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s
Declaration on Fundamental Principles and Rights at Work, the United Nations SDGs (UNSDGs), and the United Nations Convention Against Corruption.

UNGC Topic

Principle

Description

References

Human Rights

Principle 1

Businesses should support and respect the protection of internationally proclaimed
human rights; andHuman Rights

make sure that they are not complicit in human rights abuses.

Human Rights

Principle 2

Supplier Code of Conduct

Supplier Code of Conduct
Labor

Principle 3

Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining;

Fortive recognizes freedom of association and the right to collective bargaining as fundamental
rights of our employees.

Principle 4

the elimination of all forms of forced and compulsory labour;

Human Rights
Code of Conduct
Supplier Code of Conduct
Transparency in Supply Chains Statement
California Transparency in Supply Chains Act of 201011

Fortive Corporation Annual Sustainability Report

UNGC Topic

Principle

Description

References

Labor

Principle 5

the effective abolition of child labour; andHuman Rights
Code of Conduct
Supplier Code of Conduct
Transparency in Supply Chains Statement

Principle 6

the elimination of discrimination in respect of employment and occupation.

Code of Conduct
Supplier Code of Conduct

Environment

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Climate Change and Greenhouse Gas Emissions

Principle 8

undertake initiatives to promote greater environmental responsibility; andClimate Change and Greenhouse Gas Emissions
Environmental, Health, Safety and Sustainability Policy

Anti-Corruption

Principle 9

encourage the development and diffusion of environmentally friendly technologies.

Products and Services

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Ethics and Compliance
Code of Conduct
Anti-Corruption Policy
Supplier Code of Conduct|

Appendix12Fortive Corporation Annual Sustainability Report|

Appendix

APPENDIX

Task Force for Climate-Related Financial Disclosures (TCFD)
We shared our commitment to alignment with TCFD last year, and in 2022, completed
the following:n

Added climate change experience to the skills matrix for members of the Board Nominating andGovernance Committee

We are committed to continuing our alignment to TCFD in 2023, including the following:nnnIncorporated climate-related performance goals for leaders and management with
relevant responsibilities
nn

Reviewed and refined the risks and opportunities for operating companies within the Risk
Assessment Process (RAP) to capture short- and long-term physical and transition risksnnnExpanded our Scope 1 and 2 greenhouse gas (GHG) accounting to include over 95% of our realestate footprint, aligned with the Science Based Target initiative (SBTi) guidance
Announced our commitment to reduce water use at our major operations by 2029, from 2022 levelsnDevelop a roadmap to conduct and apply the outcomes of quantitative climate scenario analyses
Integrate the results of the climate scenario analyses into our enterprise risk management process
and business continuity planning
Publish a Sustainability policy that affirms our commitment to the goals of the Paris Agreement andthe need for action across all industries, including our own
Evaluate other resilience targets for relevancy and impact
Continue to review and refine our processes, policies, and practices to account for and manage
climate-related risks and opportunities

13

Fortive Corporation Annual Sustainability Report|

Appendix

TCFD Topic

Disclosure

Location

TCFD Topic

Disclosure

Location

Governancea. Describe the Board’s oversight of climate-related risks
and opportunities

CDP C1.1b

Risk Managementa. Describe the organization’s processes for identifying and assessing
climate-related risks.

CDP C2.12023 Proxy

CDP C2.2
CDP C2.2ab. Describe management’s role in assessing and managing climaterelated risks and opportunities

CDP C1.2
CDP C1.2a2023 Proxy

Strategya. Describe the climate-related risks and opportunities the organization
has identified over the short, medium, and long term.

CDP C2.1a
CDP C2.3

b. Describe the organization’s processes for managing
climate-related risks.

CDP C2.1

c. Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organization’s overallrisk management.

CDP C2.1

a. Disclose the metrics used by the organization to assessclimate-related risks and opportunities in line with its strategy and risk
management process.

CDP C4.2

b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhousegas (GHG) emissions and the related risks.

CDP C6.1

CDP C2.2

CDP C2.2

CDP C2.3a
CDP C2.4
CDP C2.4ab. Describe the impact of climate-related risks and opportunities on theorganization’s businesses, strategy and financial planning.

CDP C2.3a
CDP C2.4a

Metrics andTargets

CDP C3.1

CDP C3.4
c. Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C or
lower scenario.

CDP C3.2
CDP C3.2b

CDP C6.3
CDP C6.5

CDP C3.2b
CDP C3.3

CDP C9.1

c. Describe the targets used by the organization to manage climaterelated risks and opportunities and performance against targets.

CDP C4.1
CDP C4.1b
CDP C4.2

14

Fortive Corporation Annual Sustainability Report

APPENDIX

United Nations Sustainable Development Goals (UN SDGs)
Goal
UN SDG 3
Good Health and Well-being

Description

Fortive Pillar Alignment

Impact Alignment

Ensure healthy lives and promote well-being for all at all ages.

Work and Source Responsibly

Advanced Healthcare Solutions
Products and Services
Employee Well-Being, Safety, and Health

UN SDG 4
Quality Education

Ensure inclusive and equitable quality education and promote
lifelong learning opportunities for all

Invest in Our Communities

UN SDG 5
Gender Equality

Achieve gender equality and empower all women and girls.

Empower Inclusive and Diverse Teams

Inclusion and Diversity

Invest in Our Communities

Fortive Foundation

Fortive Foundation
Fortive Scholarship Program

Day of Caring
UN SDG 7
Affordable and Clean Energy

Ensure access to affordable, reliable, sustainable, and modern
energy for all.

Protect the Planet

UN SDG 8
Decent Work and Economic Growth

Promote sustained, inclusive, and sustainable economic growth,
full and productive employment, and decent work for all.

Work and Source Responsibly

Responsible Supply Chain and Procurement

Operate With Principle

Human Rights

Climate Change and Greenhouse Gas Emissions
Products and Services

Ethics and Compliance|Appendix15

Fortive Corporation Annual Sustainability ReportGoal
UN SDG 9
Industry, Innovation and Infrastructure

Description

Fortive Pillar Alignment

Impact Alignment

Build resilient infrastructure, promote inclusive and sustainableindustrialization and foster innovation.

Protect the Planet

Intelligent Operating Solutions

Work and Source Responsibly

Precision Technologies
Products and Services

UN SDG 10
Reduced Inequalities

Reduce inequality within and among countries.

Invest in Our Communities

Intelligent Operating Solutions

Protect the Planet

Precision Technologies

Work and Source Responsibly

Products and Services

UN SDG 11
Sustainable Cities and Communities

Make cities and human settlements inclusive, safe, resilient,and sustainable.

Protect the Planet

Climate Change and Greenhouse Gas Emissions

UN SDG 12
Responsible Consumption and Production

Ensure sustainable production and consumption patterns.

Protect the Planet

Products and Services

Work and Source Responsibly

Responsible Supply Chain and Procurement

UN SDG 13
Climate Action

Take urgent action to combat climate change and its impacts.

Protect the Planet

Climate Change and Greenhouse Gas Emissions
Products and Services|

Appendix16Fortive Corporation Annual Sustainability Report|

Appendix

APPENDIX

Sustainability Accounting Standard Board (SASB)SASB Topic

Code

Metric

Unit

Location

Description of policies and practices forprevention of: (1) corruption and bribery and(2) anti-competitive behavior

N/A

Ethics and Compliance

Description of the management of risks
associated with the use of critical materials

N/A

SASB Industry: Resource Transformation – Electrical & Electronic Equipment
Accounting Metrics

Business Ethics

Materials Sourcing

RT-EE-510a.1 version 2018-10

RT-EE-440a.1 version 2018-10

GRI Index

Responsible Supply Chain and Procurement
Human Rights
The Fortive Supplier Code
Fortive Conflict Minerals Report

Energy Management

RT-EE-130a.1 version 2018-10

Total energy consumed, percentage gridelectricity, and percentage renewable

Gigajoules (GJ), Percentage (%)

Data Tables
2022 CDP Climate Change Response, C8.2a

Hazardous Waste
Management

RT-EE-150a.1 version 2018-10

Amount of hazardous waste generated,
percentage recycled

Metric tons (t), Percentage (%)

253t

Product Lifecycle
Management

RT-EE-410a.1 version 2018-10

Percentage of products by revenue that
contain IEC 62474 declarable substances

Percentage (%) by revenue

While we do not currently track this data, we are seeking togather data for future reporting cycles.

RT-EE-410a.2 version 2018-10

Percentage of eligible products, by revenue,
that meet ENERGY STAR® criteria

Percentage (%) by revenue

Fluke confirmed with the Department of Energy that theirproducts are not eligible for ENERGY STAR® qualification17

Fortive Corporation Annual Sustainability Report

SASB Topic
Accounting Metrics

Activity Metrics

Product Lifecycle
Management|

Appendix

Code

Metric

Unit

Location

RT-EE-410a.3 version 2018-10

Revenue from renewable energy-related andenergy efficiency-related products

Reporting currency

In 2022, over 60% of Fortive’s revenue was generated fromsustainability-enabling products and services. Included in
the qualifying criteria of sustainability-enabling are:
 Energy reduction/energy efficiency
 Carbon reduction
 Renewable energy (enabling/support)

RT-EE-000.A version 2018-10

Number of units produced by productcategory

NumberWe are working to gather data for future reporting cycles.

RT-EE-000.B version 2018-10

Number of employees

Number17,148 (as of year-end 2022)18

Fortive Corporation Annual Sustainability Report|

Appendix

APPENDIX

Global Reporting Initiative (GRI)GRI Standard

Disclosure

Description

Location or Direct Answer

Organizational details

Fortive Corporation;

General Disclosures
The organization and its reporting practices
GRI 2: General
Disclosures 2021

2–1

2023 Proxy Statement p. 8-9 and 2022 Form 10-K p. 22
6920 Seaway Blvd, Everett, WA 98203
2022 Form 10-K p. 22.
2–2

Entities included in the organization’s sustainability reporting

About Fortive and Fortive Business Directory;
2022 Form 10-K p. 2 – 4, 23;
All metrics reported in this Report and its Indices reflect performance across the entire Fortive portfolio, unless specified as
relevant to a particular operating company.
As of year-end 2022, Fortive had 18 operating companies, as identified in the Fortive Business Directory.

2–3

Reporting period, frequency and contact point

January 1 2022 through December 31 2022, Annually
January 1 2022, through December 31 2022, Annuallysustainability@fortive.com or investors@fortive.com

2-4

Restatements of information

There were no restatements or corrections in 2022.

2-5

External assurance

Fortive did not seek external assurance for this report.

19

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

2–6

Activities, value chain and business relationships

About Fortive and Fortive Business Directory|

Appendix 20

Activities and workers
GRI 2: General
Disclosures 2021

Fortive is an industrial technology company
i. About Fortive and Fortive Business Directoryii. Responsible Supply Chain Managementiii. About Fortive and Fortive Business Directory; each operating company has a unique customer set, relevant to the industry
and products and services sold by each operating company. Fortive’s operating companies manage their customer
relationships independently.
Fortive is a minority investor in the following organizations:

Falkonry

Telestream



RealWear

Datamaran

No significant differences to note
2–7

Employees2022 Employee Diversity Data Tables
2022 Employee Diversity Data Tables
2022 Employee Diversity Data Tables
Talent and Reward Systems
Talent and Reward Systems

2–8

Workers who are not employees

Consistent with the decentralized nature of Fortive’s operating companies, each operating company and/or site is responsible
for managing contracts and contractual requirements with workers who are not employees.
Each operating company has responsibility for tracking and/or reporting workers who are not employees, consistent withapplicable local, regional, and/or national requirements.

Fortive Corporation Annual Sustainability ReportGRI Standard|

Appendix21

Disclosure

Description

Location or Direct Answer

2–9

Governance structure and composition

Our strategy and associated progress is routinely reviewed with the Board as they maintain oversight with respect to reportingand disclosure.

Governance
GRI 2: General
Disclosures 2021

2023 Proxy Statement p. 19-35
2023 Proxy Statement p. 18-32 and 2022 CDP Climate Change Response, C1
2023 Proxy Statement p. 19-35
2–10

Nomination and selection of the highest governance body2023 Proxy Statement p. 27-29
Data Tables and 2023 Proxy Statement p. 27-29

2–11

Chair of the highest governance body

The Chairman of the Board is independent and not a senior executive of Fortive.
Not applicable

2–12Role of the highest governance body in overseeing themanagement of impacts

Corporate Governance Guidelines and 2023 Proxy Statement p. 19-35
Corporate Governance Guidelines and 2023 Proxy Statement p. 19-35
Corporate Governance Guidelines and 2023 Proxy Statement p. 19-35

2–13

Delegation of responsibility for managing impacts

2023 Proxy Statement p. 19-35
2023 Proxy Statement p. 19-35

2–14

Role of the highest governance body in sustainability reporting

The Board Nominating and Governance Committee is the highest governance body responsible for reviewing and approving
this Report.
2023 Proxy Statement, p. 40

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 2: General
Disclosures 2021

2–15

Conflicts of interest

2023 Proxy Statement, p. 24
2023 Proxy Statement, p. 40

2–16

Communication of critical concerns

2023 Proxy Statement p. 19-35
Corporate Governance Guidelines

2–17

Collective knowledge of the highest governance body2023 Proxy Statement p. 22

2-18

Evaluation of the performance of the highest governance body2023 Proxy Statement p. 31-32
2023 Proxy Statement p. 31-32
2023 Proxy Statement p. 31-32

2-19

Remuneration policies

2023 Proxy Statement p.442023 Proxy Statement p.44

2-20

Process to determine remuneration

2023 Proxy Statement p.442023 Proxy Statement p. 50

2-21

Annual total compensation ratio

2023 Proxy Statement p. 82-85
2023 Proxy Statement p. 58
2023 Proxy Statement p. 82-85|

Appendix22Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

2-22

Statement on sustainable development strategy

A Message from Our CEO

2-23

Policy commitments

Operate with Principle;|

Appendix

23

Strategy, policies and practices
GRI 2: General
Disclosures 2021

Human Rights;
Operate with Principle
Human Rights
Conflict Minerals Policy Statement
Policies are approved at the most senior level, i.e., CEO, CFO, CHRO or General Counsel
Our policies guide and determine how our business activities and relationships are handled.
Policies are communicated during supplier and employee onboarding and trainings.
2-24

Embedding policy commitments

How We Work
Fortive maintains a centralized internal policy hub, MyPolicies, which makes company-wide policies readily available toemployees. Operating companies develop a Tier II policy, where necessary, and make those policies available to employees ina shared location (e.g., SharePoint) accessible by all employees.
i. Responsibility for implementing the commitments is allocated through legal organizations across regions and theoperating companies.
ii. Policy commitments are implemented through FBS, embedded with standard tools, policies, and practices used acrossthe organization.
iii. All suppliers are provided with a copy of the Supplier Code and required to acknowledge receipt, review,
and understanding.
Responsible Sourcing
iv. Annual ethics and compliance training and learning toolkits are provided for email/computer enabled employees. Typicalcurriculum topics include Code of Conduct, Sexual Harassment Awareness and Prevention, Anti-bribery/Anticorruption,
Fair Competition, and Financial Integrity.

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 2: General
Disclosures 2021

2-25

Processes to remediate negative impacts

Operate with Principle|

Appendix

24

We have an established history of supporting SpeakUp!, our anonymous, open hotline available in over 20 local languages
and a web reporting tool available to hear any and all employee concerns. We continue to evaluate and evolve this process toreflect changing standards and best practices.
We maintain and train internal investigators on the SpeakUp! process, including actions required to move a reported casethrough the workflow toward resolution.
We direct all complaints or concerns raised through the SpeakUp! process to ensure full and proper actions are executed toreview any report of negative impacts, suspected or realized.
SpeakUp! is available to the initiator of a case and the assigned internal investigation team at any time. Visibility is limited tothose involved in the case, to ensure confidentiality for those who submit an incident.
Within the SpeakUp! workflow, there are defined tollgates with specific actions that must be completed to move through theworkflow. The actions, assigned responsible person(s), and time lapsed are visible to those involved in a case, at any time.
2-26

Mechanisms for seeking advice and raising concerns

Refer to GRI 2-24
Additionally, employees can ask their manager, Human Resources business partner, Legal business partner, or business unit
leader for advice on implementing policies and practices.
Refer to GRI 2-25

2-27

Compliance with laws and regulations

Fortive Compliance Program
Our compliance programs are evaluated through internal self-assessment and external assessment. In the spirit of continuous
improvement, we had an external, third-party review of the compliance program conducted in 2021. An external assessment
occurs periodically every 3–5 years.

2-28

Membership associations

Membership of Associations

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

2-29

Approach to stakeholder engagement

Stakeholder Engagement Data Table|

Appendix

25

Stakeholder Engagement
GRI 2: General
Disclosures 2021

We identified our stakeholder audience through the use of interviews with Fortive’s executive leadership, the EHS LeadershipCouncil (EHSLC), and employees. We selected stakeholders based on their knowledge of Fortive’s operations, Sustainability,
and the industries in which Fortive operates.
2-30

Collective bargaining agreements

Fortive recognizes freedom of association and the right to collective bargaining as fundamental rights of our employees.
Outside the United States, we have government-mandated collective bargaining arrangements and union contracts in certain
countries, particularly in Europe where a certain number of our employees are represented by unions and/or works councils.

3-1

Process to determine material topics

Economic Performance is not a material topic for Fortive. We understand that some stakeholders may wish for further
information and this can be found in our Annual Report and 2023 Proxy Statement.

3-2

List of material topics

Economic Performance is not a material topic for Fortive. We understand that some stakeholders may wish for further
information and this can be found in our Annual Report and 2023 Proxy Statement.

Specific Disclosures
Economic Performance
GRI 3: Material
Topics 2021

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Source Responsibly|

Appendix

26

Through our supplier engagement programs, we communicate our standards clearly – each supplier is provided, andrequired to acknowledge, review and affirm, their receipt and understanding of Fortive’s Supplier Code, which outlines
our expectations of operations, conduct, labor management, material sourcing, and compliance with applicable laws andregulations.
Fortive takes great care to select suppliers who provide not only timely, cost-effective and quality materials and services, but
who operate in a manner consistent and in conformance with the Supplier Code.
Conflict Minerals Policy Statement
California Transparency in Supply Chains Act of 2010 Statement
UK Modern Slavery Act of 2015 Statement
Suppliers are audited against a range of criteria, which include but are not limited to:Environmental management, labor standards and practices, materials sourcing, and ethics and compliance with applicablelaws and regulations. The frequency of audits is no less than every 5 years, with higher risk and/or newer suppliers being
audited every 1-3 years.
The key performance indicators used to evaluate suppliers, includes on-time delivery, cost, quality, material sourcing
transparency, labor standards, and overall risk management, in an ongoing manner. Further, through our supplier audit
program, we re-audit these suppliers periodically to ensure continued compliance and improvement against the standards
outlined in the Fortive Supplier Code which includes, among other things, our focus on the environment, health, and safety
aspects as well as fighting the risk of forced labor in our supply base.
The result of these various actions and initiatives is a stronger, more resilient supply chain. We have strengthened relationships
with strategic suppliers, broadened our aperture for prospective suppliers where sole source conditions existed, and reduced
risk in our operations associated with materials, services and supplier readiness.

GRI 201: Economic
Performance 2016

201-1

Direct economic value generated and distributed

2022 Form 10-K p. 58

201-2

Financial implications and other risks and opportunities due toclimate change

2022 CDP Climate Change Response, C2.3
2022 CDP Climate Change Response, C3.1

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

3-1

Process to determine material topics

Sustainability Materiality Map|

Appendix

Procurement Practices
GRI 3: Material
Topics 2021

To identify the initial list of potentially material ESG topics, in 2020 we analyzed which topics aligned with our shared purpose,values, and industry classifications. From more than 100 ESG topics, we narrowed the list to 70+ topics relevant to Fortive’s
business and consolidated similar topics into a final list of 27.
Among the 27 topics, 11 topics emerged as material from the internal and external views. While many of the material topics
identified in the 2017 materiality assessment were reaffirmed, the 11 material topics reflect current priorities. Our executive
leadership team validated the results of the materiality assessment, the revised sustainability pillars, and the report content.
Unless otherwise stated, the material topics discussed in this report cover our direct operational impacts.
We surveyed a diverse, representative group of over 1,100 employees worldwide1 to rate the relevance of each ESG topic to
Fortive’s business.
To incorporate external perspectives, we assessed the following data sources: current and emerging/proposed regulations
and policies, 1,000+ global news sources, publicly available financial and sustainability reports, social media, and a selectgroup of investors.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Responsible Supply Chain and Procurement
Human Rights

GRI 204: Procurement
Practices 2016

204-1

Proportion of spending on local suppliers[1] Employees represented all operating companies, geographies, and job levels.

52% of our direct materials spend in the last 12 months (excluding divestitures and acquisitions) was from locally sourced
purchasing factories, where local is defined as in-country.

27Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

3-1

Process to determine material topics

Sustainability Materiality Map|

Appendix28

Anti-Corruption
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Work and Source Responsibly
Operate with Principle
Fortive’s Global Compliance Program is managed at the corporate level, where the Chief Compliance Officer and thecompliance team oversee Fortive’s global compliance program. The team sets global standards and issues global policies
that establish expectations for the operating companies. In addition to the Corporate team, each operating company has acompliance team. The Board of Director’s Audit Committee has oversight responsibility for the compliance program overall.
The global compliance program sets the global minimum standard. Each operating company makes an assessment about
their business model and their industry(ies) to determine if there is a need to adopt more explicit, restrictive, and/or additional
policies or procedures. Compliance is a significant element of the risk assessment process, which is conducted annually. We
customized the Intelex software to enable a software-based annual risk assessment.
Our compliance programs are evaluated through internal self-assessment and external assessment. In the spirit of continuous
improvement, we had an external, third-party review of the compliance program conducted in 2021. An external assessment
occurs periodically every 3–5 years.
Measuring and tracking our KPIs for ethics and compliance is integral to continue making positive and real change. We review
our metrics on a quarterly basis with Fortive’s senior leadership to provide visibility and transparency on our current state andimprovement opportunities.

GRI 205: AntiCorruption 2016

205-2

Communication and training about anti-corruption policies
and procedures

Refer to GRI 2-23 through 2-27

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

3-1

Process to determine material topics

Sustainability Materiality Map|

Appendix

29

EnergyGRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Protect the Planet
Operating companies manage their energy procurement independently; however, in 2022, guidance was deployed to ourEHS significant sites to prompt feasibility of procuring clean energy through utility
providers, installation of on-site renewable energy sources, and clarity regarding the environmental attributes associatedwith both transactions. We are compiling and tracking options based on the results of this effort.
Through the EHS Risk Score, each EHS significant site is responsible for conducting this review, developing an action plan (ifapplicable) and documenting their findings, progress, and outcomes. The EHS Risk Score is evaluated semi-annually, with theobjective of reducing the overall risk score each year.
In 2022, we established an energy roundtable, comprised of facilities, EHS, and operations managers across the operatingcompanies. Meetings were conducted quarterly to enable cross-operating company best practice and knowledge sharing, as
well as introduce external expert insights to those directly responsible for managing energy at our largest sites.
We developed a renewable energy policy to define generally accepted sources of renewable energy and procurement
options available to operating companies. This policy guides operating companies as they explore renewable energy
procurement through their utility providers, as well as on-site renewable installations. We have a third-party provider whomonitors and manages energy procurement in deregulated markets in U.S. and Europe.

GRI 302: Energy 2016

302-1

Energy consumption within the organization

Data Tables
2022 CDP Climate Change Response, C8.2a

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 302: Energy 2016

302-3

Energy intensity

Data Tables|

Appendix 30

2022 CDP Climate Change Response, C9.1
302-4

Reduction of energy consumption

Data Tables

3-1

Process to determine material topics

Sustainability Materiality Map

Emissions
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Protect the Planet
We implemented standard work to align our GHG inventory management, accounting, and disclosure process and controls
with the Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard. In 2022, we successfully achieved
Limited Assurance for our 2019 (base year) and 2021 GHG inventories. We are committed to conducting third-party
assurance each year; Limited Assurance for the 2022 inventory was achieved in May 2023.
In 2020, we transitioned to the Intelex Sustainability Performance Indicators (SPI) platform, where data quality tollgates andchecks are configured to automatically flag anomalous and/or significantly different consumption quantities of key sources of
GHG emissions.
Environmental data undergoes a quarterly internal audit to improve data quality. Feedback is provided to users if/when data
anomalies are identified and corrective actions are needed.
In 2022, we deployed a PowerBI dashboard to provide visibility across the organization to environmental data, including GHG
emissions, water, and waste. This has enabled greater understanding and immediate access to data, empowering operatingcompanies to action their reporting gaps and performance.

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 305: Emissions
2016

305-1

Direct (Scope 1) GHG emissions

Data Tables
2022 CDP Climate Change Response, C6, C7

305-2

Energy indirect (Scope 2) GHG emissions

Data Tables
2022 CDP Climate Change Response, C6.2, C6.3

305-4

GHG emissions intensity

Data Tables
2022 CDP Climate Change Response, C4.1b

305-5

Reduction of GHG emissions

Data Tables
2022 CDP Climate Change Response, C7.9

Supplier Environmental Assessment
GRI 3: Material
Topics 2021

3-1

Process to determine material topics

Sustainability Materiality Map
Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.

3-2

List of material topics

Sustainability Materiality Map|

Appendix31Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Source Responsibly|

Appendix

32

Refer to GRI 3-3
Supply chain challenges that emerged during the height of the COVID-19 pandemic are still evident, although showing signsof improvement. In response to these challenges, over the last few years, we have strengthened our deployment of standards,
relationship building with strategic suppliers, and increased preference for local suppliers, where local refers to in-country.
The result is these various actions and initiatives is a stronger, more resilient supply chain. We have strengthened relationships
with strategic suppliers, broadened our aperture for prospective suppliers where sole source conditions existed, and reduced
risk in our operations associated with materials, services, and supplier readiness.

GRI 308: Supplier
Environmental
Assessment

308-1

New suppliers that were screened using environmental criteria

100% of our suppliers in the Responsible Sourcing Audit program were screened using environmental criteria.

3-1

Process to determine material topics

Sustainability Materiality Map – Employee Well-Being, Safety and Health, Organizational Culture

Employment
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Empower Inclusive & Diverse Teams|

Appendix

33

Our people are our greatest assets; they are at the heart of who we are, what we do, and how we work. Our inclusive growthculture drives the next decade of Fortive’s success.
In 2022, we launched a Human Resources Transformation initiative to improve our strategy and market position for talentacquisition, retention and rewards (e.g., compensation and benefits).
Fortive maintains a centralized internal policy hub, MyPolicies, which ensures company-wide policies are readily available to all
employees. In many cases, operating companies develop a Tier II policy, and make those policies available to employees in ashared location (e.g., SharePoint) accessible by all employees.
The Employee Experience Survey measures the effectiveness of our employee-related programs. A supervisor effectivenessscore is generated from the Employee Experience Survey and every people leader receives a score. People leaders are
expected to understand their scores and create action plans to improve their scores and respond to feedback.
In 2021 and through 2022, we conducted quarterly pulse surveys with employees to gain a more regular understanding of
employee sentiment. People leaders were provided with the data and discussed the results with their teams to understandwhat was going well, and where to improve.
In 2022, the Employee Engagement score was 78% (+1% pts from 2021, +5% pts from 2019) and the Inclusion & Belonging
score was 82% (+2% pts from 2021,+3% pts from 2019).

GRI 401: Employment

401-2

Benefits provided to full-time employees that are not provided totemporary or part-time employees

This data is not available

401-3

Parental leave

Data Tables

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

Process to determine material topics

Sustainability Materiality Map|

Appendix

Labor/Management Relations
GRI 3: Material
Topics 2021

3-1

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Empower Inclusive & Diverse Teams
Refer to GRI 401: 3-3

GRI 402: Labor/
Management Relations
2016

402-1

Minimum notice periods regarding operational changes

Fortive fully complies with applicable national and/or local legal requirements for minimum notice periods regarding
significant operational change.

Process to determine material topics

Sustainability Materiality Map – Employee Well-Being, Safety, and HealthOccupational Health and Safety
GRI 3: Material
Topics 2021

3-1

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

34

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Disclosure

Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Environmental, Health and Safety (EHS)|

Appendix

The Environmental, Health, and Safety Leadership Council (EHSLC), which includes senior EHS leaders from across thecompany, sets the EHS strategy for the company at the corporate level. The EHSLC determines which areas of focus are mostimportant for the business and task the operating companies with implementation of any objectives.
Our internal EHS management system is now managed using the Intelex Environmental, Health, Safety, and Quality (EHSQ)
platform. To quantify and drive continuous improvement, our operating companies assess the EHS Risk level at each of our
EHS significant sites and report an EHS Risk Score on a semi-annual basis. EHS significant sites are those with 50 or more
employees that have any level of manufacturing or light assembly operations.
The EHS Risk Score is a Fortive standard metric comprising EHS performance criteria, organized into three major categories:
Operational Risk, Leadership Engagement, and EHS Metrics. Operational Risk includes Safety, Health and Industrial
Hygiene, and Environmental Compliance criteria. Effective in 2022, we incorporated Sustainability criteria and metrics into
the Risk Score framework to evaluate the sustainability performance of each operating company. The EHS Risk Score isweighted based on site employee population and our goal is to reduce the average EHS Risk Score across the company byimplementing EHS and Sustainability programs and initiatives tailored to the work environment.
94% of our manufacturing EHS Significant Sites1 have at least one ISO certification. All certified sites host manufacturing,
service, and/or light assembly operations.
We leverage data and FBS tools for EHS management across all our operating companies. FBS provides a consistent baseline
direction for applicable operations, which sites can tailor for their specific operations. This approach creates consistency
and a common understanding for any employee to understand processes, operations, and decision-making, which is vitalfor a functional EHS program. FBS tools also enable EHS management to seamlessly integrate with other business partner
operations, making EHS compliance a standard practice in how we conduct our business.

GRI 403: Occupational
Health and Safety 2018

35

403-1

Occupational health and safety management system

EHS Metrics and Certifications Data Table
Many operating companies have EHS management systems that are consistent with the requirements of recognized
standards, including OHSAS 18001, OSHA’s Voluntary Protection Program, and Process Safety Management.

403-2

Hazard identification, risk assessment, and incident investigation

Employee Well-Being, Safety, and Health[1] EHS Significant Sites are any Fortive location with 50 or more employees or that is engaged in any of the following activities other than as a de minimis activity at the site: Manufacturing,
Assembly, Engineering (other than software engineering), Research and Development (other than software R&D), Warehousing (but not simple storage) or Service operations.

Fortive Corporation Annual Sustainability Report|

Appendix

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 403: Occupational
Health and Safety 2018403-3

Occupational health services

All Fortive employees have access to occupational health services, appropriate for any occupational risks they may be
exposed to at work. These occupational health services may be external and/or internal based on an assessment of inhouse capabilities, exposure types, and required skills/competencies to ensure all employees have access to the required
occupational health support.

36

The results of occupational health exposure monitoring are available only to the respective worker and the required EHS andoccupational health staff. In any case of exposure above acceptable levels, managers/supervisors may need to be involved tohelp resolve an exposure issue but will not be provided access to the individual’s occupational health records.
Fortive provides its employees with access to an internal website providing practical solutions and support on life, health,family, work, and finances.
403-4

Worker participation, consultation, and communication on
occupational health and safety

Employees are actively engaged in health and safety awareness through online and in-person training, internal/external
program auditing, regular communications, and system performance. Employee communications include meetings, training
events, and presentation of health and safety topics. Work councils or committees, where in place at a majority of EHS
Significant Sites1, are proactively engaged in the review of health and safety programs and advise on matters of work safety
and accident prevention. These committees typically consist of both employee and management representation to ensurethat all activities and recommendations are adequately supported by the organization. The committees typically meetquarterly and conduct an annual review and consultation with site management. The scope of the EHS management includes
all employees under management’s operational control at the site, which includes contractors operating on-site.

403-5

Worker training on occupational health and safety

Operating companies conduct training as required by applicable local, regional, and national regulations. Training topics
are tailored to the operations and regularly updated to comply with changing regulations and workplace risks. Trainings aredelivered in various formats depending on the operating company and the type of training.

403-5

Worker training on occupational health and safety

Core benefits programs are offered to employees, including medical, dental, vision, life, disability, retirement, parental leave,
etc. In addition, Fortive offers an Employee Assistance Program as well as backup/emergency childcare and eldercare for U.S.
employees and added financial wellness and well-being support for U.S. employees.

[1] EHS Significant Sites are any Fortive location with 50 or more employees or that is engaged in any of the following activities other than as a de minimis activity at the site: Manufacturing,
Assembly, Engineering (other than software engineering), Research and Development (other than software R&D), Warehousing (but not simple storage) or Service operations.

Fortive Corporation Annual Sustainability Report|

Appendix

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 403: Occupational
Health and Safety 2018

403-7

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

Omission: prevention and mitigation of occupational health and safety impacts directly linked by business relationships
is omitted.
Reason for omission: information unavailable. Operating companies implement site-level contractor safety programs.

403-8

Workers covered by an occupational health and safety
management system

Omission: Information unavailable.

3-1

Process to determine material topics

Sustainability Materiality Map

Training and Education
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Empowering Inclusive & Diverse TeamsThrough MyFortive, our online human capital management system, we continue to deploy resources, trainings, andeducational programs for our employees in alignment with our Development for Growth (D4G) philosophy, i.e., focus on
personal and professional growth and development.
We use internal tracking to evaluate the success and impact of employee-related projects and programs, measuring both
qualitative and quantitative metrics.
For example:nnn

The Employee Experience Survey measures the effectiveness of our employee-related programs;
The Inclusion & Belonging score measures the degree to which employees across the company feel included (e.g., seen
and heard) and a sense of belonging; andA supervisor effectiveness score is generated from the Employee Experience Survey and every people leader receives a score.

People leaders are expected to understand their Employee Experience and Inclusion & Belonging scores and create actionplans to improve their scores and respond to feedback.

37

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

GRI 404: Training and
Education 2016

404-2

Programs for upgrading employee skills and transition assistanceprograms

Empowering Inclusive & Diverse Teams|

AppendixAcross Fortive, there are a career’s worth of opportunities available to employees. We have a strong commitment todeveloping talent within the organization and seek to support our employees who wish to develop their skillsets throughvaried industry, operating company, and/or business unit opportunity.
To ensure all of our employees and people leaders are considering how to support, challenge and promote talent within, weoffer a robust set of tools and frameworks to support the operating companies with leadership development.
Through performance and development goals, employees are encouraged to, and have ready access to training resources
through libraries including MyLearning and LinkedIn Learning.
Our approach to employee upskilling is to dedicate efforts at the point of greatest impact, which is at the operating company
level. Technical and upskilling to learn a new software or a new skill occurs at the respective operating companies and varies
at each.
Our Performance for Growth (P4G) program enables employees to maintain an open dialogue with managers throughquarterly check-ins to discuss topics around goal setting, career development, and performance. In alignment with our pay
for performance philosophy, employees receive feedback and rewards based on their contributions.

Diversity and Equal Opportunity
GRI 3: Material
Topics 2021

3-1

Process to determine material topics

Sustainability Materiality Map
Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.

3-2

List of material topics

Sustainability Materiality Map

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Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Empowering Inclusive & Diverse Teams|

Appendix

To track our progress towards achieving our internal inclusion, diversity & equity (IDE) goals, we use a combination of
governance practices, tracking infrastructure, and programmatic initiatives. Our Vice President of IDE works closely with
our senior management, our IDE Council, and our Operating Company IDE practitioners. We also cascade annual Inclusion
and Diversity goals into executive and senior leader performance measures. Additionally, our Board of Directors and ourCompensation Committee oversee our IDE efforts as part of our People strategy and measurement actions.
Our internal human resources infrastructure, MyFortive, allows us to track diversity and employment metrics in the U.S. andglobally, as well as metrics on career progression, employee experience, and pay. The insight that this technology provides
enables a better and more holistic view of our culture and the daily experience of our employees. The data and trends we see
directly impact how we evolve our IDE programs and efforts.

GRI 405: Diversity andEqual Opportunity 2016405-1

Diversity of governance bodies and employees

Data Tables [IDE]2023 Proxy Statement p. 6-12

Non-Discrimination
GRI 3: Material
Topics 2021

3-1

Process to determine material topics

Sustainability Materiality Map
Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.

3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Empowering Inclusive & Diverse TeamsTo track our progress towards achieving our internal IDE goals, we use a combination of governance practices, tracking
infrastructure, and programmatic initiatives.
Our internal human resources infrastructure, MyFortive, allows us to track diversity and employment metrics in the U.S. andglobally, as well as metrics on career progression, employee experience, and pay. The insight that this technology provides
enables a better and more holistic view of our culture and the daily experience of our employees. The data and trends we see
directly impact how we evolve our IDE programs and efforts.

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Disclosure

Description

Location or Direct Answer

GRI 406: NonDiscrimination 2016406-1

Incidents of discrimination and corrective actions taken

Omission: information unavailable. This data is maintained by the operating companies and extends beyond our
topic boundary.

Process to determine material topics

Sustainability Materiality Map

Appendix 40

Forced of Compulsory LaborGRI 3: Material
Topics 2021

3-1

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Supplier Diversity & Engagement
We assigned a Senior Director in our Supply Chain team to govern our responsible sourcing policies and make changes to our
Supplier Code, Supplier Audit Program, and Supplier Assessment as needed.
Through these programs, we identify opportunities for improvement and deploy actions, which include:nbriefings with C-Suite executives, senior Operations and Procurement leadersne-learning modules to inform employees on updates and changes to these policies and relevant procedures

Using information provided via third-party service providers and industry groups, we benchmark against peers to ensure
our management approach and programs utilize best practices available. These results, which include these standards, ourrelative performance, and plans for continuous improvement, are reported up to senior leaders within the organization and
the Board semi-annually.
GRI 409: Forced ofCompulsory Labor

409-1

Operations and suppliers at significant risk for incidents of forced orcompulsory labor

We continued our supplier audit cycle in 2022, leveraging the changes implemented during the last cycle to continue our
focus on the environmental, health, and safety aspects as well as fighting the risk of forced labor in our supply base.
106 direct material suppliers were identified in 2022, based on our risk matrix, which is not limited to “significant risk.” Noneof these suppliers qualify as “significant risk.” Responsible sourcing audits were completed with all significant risk suppliers.
No findings required escalation or further investigation (i.e., suppliers receive at least a ‘satisfactory’ rating) and areas for
improvement were limited to policy/process improvements.

Fortive Corporation Annual Sustainability ReportGRI Standard

Disclosure

Description

Location or Direct Answer

3-1

Process to determine material topics

Sustainability Materiality Map – Community Engagement and Support|

Appendix

Local Communities
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views
related to the material issues and goals.
3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

Invest in Our Communities
Fortive Corporation Charitable Contributions Policy
Fortive’s annual Day of Caring is coordinated and executed at the local level, i.e., site- or operating company-level, by our Day
of Caring Champions. The Champions are responsible for communication, coordination, and recording participation in theevent(s) planned by the site/operating company. Participation and impacts are reported to the operating company President
and to the Corporate Communications and Sustainability Teams for data aggregation and all-employee communications.
Participation and hours of service dedicated are reported in Invest in Our Communities.
In 2022, the Foundation Management team developed an annual proposal and plan for the planned annual grants to nonprofit organizations whose missions align with the Foundation’s Giving Areas.

GRI 413: Local
Communities

413-1

Operations with local community engagement, impact
assessments, and development programs

Invest in Our Communities

Process to determine material topics

Sustainability Materiality Map – Responsible Supply Chain and Procurement, Human Rights

100% of our operating companies participate in local community engagement through the Fortive Day of Caring.
In 2022, our teams collectively dedicated more than 25,000 hours to support partner organizations in over 150 communities
across 16 countries.

Supplier Social Assessment
GRI 3: Material
Topics 2021

3-1

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.

41

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Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-2

List of material topics

Sustainability Materiality Map

3-3

Management of material topics

The Fortive Supplier Code|Appendix

Sourcing Responsibly
Fortive Conflict Minerals Statement
To fully integrate responsible sourcing as a focus topic in our leadership, we hired a Senior Manager to lead our Supplier
Diversity program. We further strengthened this program by drafting robust governing policies, setting ambitious goals, andworking closely with leaders at our operating companies to fully understand, articulate, and measure its value.
To evaluate the effectiveness of our supply chain and sourcing programs, we analyze cost, compliance, and coveragemeasures associated with each function to ensure that baseline performance within the business has been establishedalong with targets to improve results year over year. Measures of performance are comparable with industry peers and webenchmark our progress with peers within and across the industry.
GRI 414: Supplier Social
Assessment 2016414-1

New suppliers that were screened using social criteria

100% of our suppliers in the Responsible Sourcing Audit Program were screened using social criteria.

3-1

Process to determine material topics

Sustainability Materiality Map

Customer Privacy
GRI 3: Material
Topics 2021

Refer to GRI 3-1 for a description of the process, including identification and inclusion of stakeholders’ views.
3-2

List of material topics

Sustainability Materiality Map

42

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Disclosure

Description

Location or Direct Answer

GRI 3: Material
Topics 2021

3-3Management of material topics

Operate with Principle|

Appendix

43

Our Chief Information Security Officer (CISO) examines Fortive’s security program, the effectiveness of our security efforts,
defines an appropriate policy baseline, and works with the operating companies to implement technical controls to
implement those policies.
Some operating companies have their own Chief Security Officers, and there is a clear delineation of roles and responsibilities
between the corporation and the operating companies. Additionally, we consider this to be an area of great importance when
considering the attributes and experience of those individuals sitting on the Board of Directors. 2023 Proxy Statement, p. 5.
Our digital security program includes a combination of procedural elements, policy aspects, and technical controls. We havea vulnerabilities management program and regularly invest in industry leading technical controls, such as network perimetersecurity controls and antivirus-like capabilities. As a decentralized model, resources exist within the operating companies
to address digital privacy and security issues. The CISO defines the roles and responsibilities of all the core cybersecurity
functions for Fortive at the corporate level, including defining policies focused on governance, risk, and compliance.
Risk management processes are in place to capture, manage, and document security risks and manage exceptions to the policy.
Our incident response is a combination of directly managed resources, matrix resources across the operating companies, matrix
resources into the corporate IT infrastructure teams to manage their technical controls, and a dedicated managed securities
provider. We recently completed our centralized cookies management system and continue to maintain the systems so thatusers around the world are presented with a cookie banner and consent mechanism that delivers correct and compliant cookies
for their web session based on the laws and regulations of the jurisdiction from which they are visiting our web pages.
We regularly assess our cybersecurity processes both from an internal and external perspective. We use our own tool, the Fortive
Risk Score, to provide monthly metrics at the operating company level. These are shared with both operating company leadersin IT and segment leaders. A macro level view of these data are presented at the executive and board levels. We monitor risks
and associated strategy on a quarterly basis with the audit committee, presented by the Chief Information Officer. Externally,a third-party consultant performs an annual assessment of our cybersecurity process. We also use a service for external
assessment with BitSight to identify issues at the operating company level. This number is reported to the audit committee.

GRI 418: Customer
Privacy 2016

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

Omission: information unavailable. We are reviewing our internal processes to more clearly capture this data and will include
the data in next year’s reportFortive Corporation Annual Sustainability Report

GENERAL CORRESPONDENCEFORTIVE INVESTOR RELATIONS

If you would like to contact a member ofFortive’s Sustainability team, you may do
so by email or mail:If you would like to contact a memberof Fortive’s Investor Relations team, you
may do so by email, telephone, or mail:Fortive Corporation
6920 Seaway BoulevardEverett, Washington 98203

Fortive Investor Relations
6920 Seaway BoulevardEverett, Washington 98203

Email: sustainability@fortive.com

Email: investors@fortive.com

www.fortive.com

Tel: (425) 446-5000|

Appendix 44