Accelerating
Progress Toward a
Sustainable Future2022 SUSTAINABILITY REPORTA Message From Our CEO

3

Company Overview

5

About Fortive

6

Purpose and Values

9Innovation and Technology

10

Our Commitment to Sustainability

13

Empower Inclusive and Diverse Teams

16

Inclusion and Diversity

17

Organizational Culture

20

Talent Acquisition, Retention, and Development

21

Invest in Our Communities

23

Community Engagement and Support

24

Protect the Planet

26

Climate Change and Greenhouse Gas Emissions

27

Products and Services

31

Work and Source Responsibly

35

Employee Well-Being, Safety, and Health36

Responsible Supply Chain and Procurement

38

Human Rights

39

Operate With Principle

41

Ethics and Compliance42

Business Resilience

43

Digital Privacy and Security

45

Appendix

47

Data Tables

48

United Nations Global Compact Communication
on Progress (UNGC CoP) Index

54

United Nations Sustainable Development Goals (UN SDGs)

55

Task Force on Climate-Related
Financial Disclosures (TCFD) Index

57

Sustainability Accounting Standards Board (SASB) Index

58

Global Reporting Initiative (GRI) Index

60

A Message From Our CEO
Q&A with James A. Lico, President and CEO, Fortive
How do you feel about the sustainability progress Fortive has

Our first Communication on Progress is on page 54 of this report

made during its first five years?

and shares how we’re making progress on the Ten Principles of

I’m incredibly proud of the strong foundation we have built, andhow we have embraced an increasingly rigorous, transparent, andambitious approach to sustainability. When we launched in 2016, it
was important to all of us to identify the sustainability issues most
relevant to our business and address them through a strategy thatreinforces our purpose and values. Our natural curiosity about what
is possible, and where we can have the greatest impact, continues
to guide our progress.
As we continue to build momentum and tap into the extraordinaryenergy of our teams, sustainability has become far more than aprogram at Fortive. Sustainability is fundamental to our strategy
and our businesses, and our stakeholders agree. By integrating
sustainability into Fortive Business System (FBS) and how we work
every day, we’re creating value for all of our stakeholders, our local
communities, our society, and the planet. I’m excited about the path
we’re charting to achieve a sustainable future—one that’s stronger,
safer, and smarter for all.

the UNGC. In addition, we have identified ten UN Sustainable
Development Goals (SDGs) that we support through oursustainability pillars, goals, and strategic business segments. Acting
and leading on a global scale allows Fortive to apply our sharedpurpose, values, strengths, and skills to deliver impact and value incritical fields like healthcare, workplace safety, and infrastructure.

How is the view on sustainability from stakeholders changing
your business?
There’s a strong human element to what we do, and our stakeholder
relationships are important to us. We hear clearly from customers,
employees, and shareholders alike that sustainability is a priority.
As we think about customers, for example, we know that theirsuccess is our success. Our customers are trying to solve some of
the world’s biggest sustainability challenges right alongside us. The
outcomes they pursue motivate and inspire us to deliver the tools
and technology they need to be successful.
Our purpose drives us to accelerate progress in the world, and

Why is Fortive’s commitment to the United Nations Global

our business strategies have natural synergies with the principles

Compact (UNGC) significant?

of sustainability as they relate to people, planet, and progress.

We value transparency, accountability, and winning with integrity.
That is why we joined the UNGC as a signatory in 2021. By joining the
UNGC, we:And industry data consistently shows that sustainable companies
outperform in the market—so accelerating our sustainability efforts
is a win for all of our stakeholders.

y communicate our commitment to the Ten Principles;y hold ourselves accountable to driving continuous improvement; andy demonstrate solidarity with the other members around the globe
to achieve a just, equitable, and sustainable world.

Accelerating Progress Toward a Sustainable Future

3

The call to action on climate change is increasingly urgent.

I’m also incredibly proud of the way our teams come together to

How is Fortive responding?

contribute to the communities where we work and live. For example:

The need for climate action is urgent, and we are heeding the call.
We achieved our more ambitious greenhouse gas (GHG) intensity
goal earlier than expected and have established a new greenhousegas (GHG) reduction goal that is aligned with the Science-based
Targets initiative (SBTi) guidance:y Through our annual Day of Caring, Fortive teams have dedicatedmore than 400,000 hours to support organizations in their local
communities.
y Through the Fortive Foundation, we are able to extend our impact
to support organizations worldwide whose missions align with our
Values and Shared Purpose.

We are committing to reduce absolute Scope 1 and 2 GHG
emissions 50% by 2029, from 2019 levels.
This goal will challenge us to go deeper into the organization to
identify and achieve further efficiencies, and in some cases, toreimagine our operations. I am confident that our teams will rise to
the challenge. As a company of innovators, inventors, engineers,and problem solvers, we thrive on addressing challenges at theintersection of science, data, and people.

What 2021 accomplishments are you most proud of?
We have made considerable progress in furthering our commitments
and culture to advance inclusion and diversity (I&D). We have

What’s your outlook for the next five years?
We aim to advance progress toward our vision of a sustainable
future, one that’s stronger, safer, and smarter for all. We willcontinue our trajectory of increased rigor, accountability,transparency, and impact to deliver results that meet and exceed
expectations for ourselves and our stakeholders. We draw on our
FBS toolset and culture of innovation to strengthen I&D, lead on
climate action, advance supply chain and business resiliency, andsafeguard the health, well-being, and privacy of our employees andcustomers. And we will continue to raise the bar through ambitious
new targets to drive value and impact.

been intentional about our actions and communications—taking

What’s most exciting to me are the world-changing products andcare to be transparent about where we are, where we want to go,services that deliver new sustainability breakthroughs. Fortiveand how we’re working to get there. Experience tells us that our

products and services are behind the scenes in many criticalcommitment to I&D strengthens our teams, inspires innovation, andenvironments, helping people in so many ways—some of which

drives grassroots energy and engagement around sustainability.

are highlighted in our Products and Services section, beginning

It’s gratifying to see how our businesses contribute directly to

on page 31. Some of these innovations are taking shape, while

sustainability by ensuring patient and worker safety, maximizing

others have yet to be dreamed up. With strong secular drivers

the lifespan and efficiency of mission-critical infrastructure, andlike climate-conscious energy transformation, healthcare

conserving energy at scale.

advancements, and AI-driven automation, we have significant
opportunity to drive growth and value for all of our stakeholders
and accelerate progress toward a sustainable future.

Accelerating Progress Toward a Sustainable Future

4Company Overview
Fortive is a uniquely powerful combination of global
companies, specialties, and skills that come together toshare knowledge and amplify impact. And when we see a
promising new opportunity to advance our sustainability
goals, we are uniquely positioned to invest in it.

About Fortive
Purpose and Values
Our Commitment to Sustainability
Innovation and Technology

Accelerating Progress Toward a Sustainable Future

5

COMPANY OVERVIEW

About Fortive
GRI 102-6, 102-7

Who We Are
Fortive Corporation delivers essential technologies and connected
workflow solutions across a range of attractive end markets.
Our strategic segments—Intelligent Operating Solutions, Precision
Technologies, and Advanced Healthcare Solutions—are built on
leading brand names, innovative technologies, and establishedmarket positions.
Fortive is based in Everett, Washington, with research andFortive’s essential technology makes the worldstronger, safer, and smarter.
We are a global technology innovator withgenerosity and optimism in our DNA. Making a
positive impact on the world is core to who weare, what we do, and how we do it. Our culture
is deeply grounded in continuous improvement
which equips us with the tools and the drive toaccelerate progress in people-centric fields likeworkplace safety and healthcare.

development, manufacturing, sales, distribution, service, andadministrative operations in more than 50 countries. Fortive’s
global team is united by a powerful shared purpose: essential
technologies for the people who accelerate progress.

What We Do
Our diverse teams across a broad range of operating companies

Accelerating Progress Toward a Sustainable Future

18,000employees

50+

countries$5.2B

2021 revenue

9.5%

organic growthand geographies propel us towards our goal of a sustainable
future through hardware and software-enabled workflow solutions,applied intelligence, advanced analytics, and other rapidly
advancing technologies.
We are energized by our vision of a stronger, safer, and, smarter
world; and boldly pursue the solutions to get us there. To us,

We deliver hardware, software-enabled hardware,and software solutions for our customers that
advance the safety and security across industries
ranging from workplace safety and healthcare to
critical infrastructure and the built environment.

Fortive At A Glancestronger means ethical, resilient, and actively inclusive. Safermeans safeguarding the resources we all depend on, fromHow We Work
Fortive Business Systemclean water and air to personal health and well-being for our

The Fortive Business System (FBS) is our competitive advantage forcustomers and our own data. And smarter speaks to strengthening

driving innovation and delivering unique value to our customers.

communities and connections through principled, efficient, and

FBS is fundamental to who we are and how we work and is both aforward-looking innovation and technology. Our products andmindset and our proven system for continuous improvement. FBS

services enable our customers to reduce their environmental

encompasses a powerful set of tools and methods we employ toimpact, advance community health, and ensure safe workplaces.

drive continuous improvement in everything we do. It facilitates ourOur growth mindset and culture of curiosity are powerful forces

ability to nimbly and effectively drive growth and innovation, ensurethat drive the ideation and experimentation necessary to develop

safety and quality, minimize waste, deliver for our customers, leadthe products and services that accelerate progress for all.

effectively, and scale our successes.

6Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

Delivering leading workflow solutions thatfacilitate field and facility safety, reliability,and productivity

Enabling IoT expansion and accelerating
the development of new technologies
and innovations

Essential products and workflow solutions
that ensure safe, efficient, and timely
delivery of healthcare

Accelerating Progress Toward a Sustainable Future | Company Overview

7Fortive’s Sustainability Value Proposition
At Fortive, our commitment to Sustainability is inextricably linked

We are always gratified to be recognized for the positive impacts

with our shared purpose: essential technology for the people whothat our products and services deliver for our customers as wellaccelerate progress. The work we do, and how we do it, centers

as the quality and commitment we provide in our workplace toaround IMPACT. Every day, Fortive’s products, services, and people

our employees.

are making an impact behind the scenes to:y ensure safe operating conditions for workers in high-risk
environments;y provide software solutions that manage critical metrics for worker
health and safety as well as sustainability performance;y advance automated, tailored perioperative care for the patient
and their procedures;y enable quick and accurate results from medical testing; andy safeguard the operational capacity of critical infrastructure andphysical assets.
We have a portfolio of operating companies with strategic
connections to Sustainability through their products and services.
Incorporating Sustainability into FBS, our engine for growth andinnovation, and our business strategy enables us to scale our impact

In 2021, Fortive was named as one ofAmerica’s Most Responsible Companies
by Newsweek for the 3rd consecutive
year and heralded among the Best Places
to Work for LGBTQ Equality by the Human
Rights Campaign Foundation for the 5thconsecutive year.
We are proud of the recognition and continue to challenge
ourselves to deliver the best workplace and products for ourcustomers and employees.

and capitalize on the ESG headwinds in our current markets anddrive growth and long-term value in new markets.

Awards and Recognition

Our purpose is infused with a spirit of generosity andoptimism that inspires us to build better workplaces
for our employees, better communities for our families,
and a better planet for all of us. It pushes us to innovatefor our customers, as they solve some of the world’s
biggest social and environmental challenges.

Newsweek America’s Most Responsible Companies

Corporate Equality Index

United Nations Global Compact

PETER UNDERWOOD, SVP AND GENERAL COUNSEL

Accelerating Progress Toward a Sustainable Future | Company Overview

8

COMPANY OVERVIEW

Purpose and Values
GRI 102-16

Our purpose—essential technology for the people
who accelerate progress—goes hand in handwith the goals of sustainability. The high-impact
outcomes we pursue include: Environmental
quality indicators, energy efficiency, workplacesafety, reliability and functionality of missioncritical infrastructure, lives saved, and higher
healthcare standards worldwide.
Our values encapsulate the teamwork, customer
focus, growth mindset, and drive that will lead us
to breakthrough sustainability solutions.

ValuesWe build extraordinary teams for extraordinary results.
We are more together, and we all have something unique to offer.
We come together to solve problems no one could solve alone.
Our strong and inclusive culture is the lifeblood of our success.
Customer success inspires our innovation.
We believe our most important breakthroughs are the ones that
help our customers succeed and move the world forward. We break
down barriers and forge new paths to world-changing innovations.
Kaizen is our way of life.
Our commitment to kaizen—continuous improvement—inspires us
to keep growing and learning. We believe that tomorrow can always
be better than today.
We compete for shareholders.
We are a force for good. We believe that prioritizing trust,transparency, sustainability, and positive impact creates long-termvalue for all of our stakeholders—our customers, our employees, ourshareholders, and our communities.

Accelerating Progress Toward a Sustainable Future

9

COMPANY OVERVIEWInnovation andTechnology
At Fortive, we continually invest in innovationand emerging technologies to challenge limits,
move faster, anticipate our customers’ futureneeds, and achieve bigger breakthroughs. By
unlocking the potential of data with AI-driven
software solutions, we empower our customers
to achieve new breakthroughs in productivity,
quality, innovation, and sustainability.
Our two-pronged strategy consists of internalteams within our operating companies
working to innovate and generate organic
growth, while also leveraging external
incubation opportunities.

Accelerating Innovation Efforts
Innovation is at the core of what we do and how we help solve our own

y The Fort partnered with Qualitrol to apply machine learning toand our customers’ toughest challenges. Our operating companies use

auto-classify transmission faults in electrical utilities to reduce

technological solutions built on artificial intelligence/machine learning

outages and down time. Qualitrol expects this will have a three-(AI/ML) applications and leveraging data science solutions:year operational impact of $8.3M.

y ProVation Apex Procedure Documentation, uses AI technology topersonalize and streamline the documentation process for physicians.
y ehsAI (a subsidiary of Intelex) leverages AI to improve environmental,
health and safety compliance, combing through regulatory
documents to enable customers to analyze more accurately, comply
faster, and mitigate risk.
Our team’s creative capacity is accelerated and amplified by The Fort,
our internal innovation hub. The Fort focuses on co-developing AI/MLy Using AI developed by The Fort, Fluke Health Solutions (FHS)
uses predictive analytics to preemptively identify and respondto customer retention risks. Since implementing in 2021,
customer attrition rates have been reduced by half with lower
person-hours required.
y At Accruent, The Fort developed a machine learning system topredict failures in refrigeration systems for a grocery chain in the
U.K., helping prevent food waste.

applications and data science solutions that are both critical and creative
for some of our toughest internal and customer-based problems:

Accelerating Progress Toward a Sustainable Future

10Growth Accelerator
Fortive’s Growth Accelerator is a powerful and proven FBS toolset

47
projects delivered through The Fort,
using data science to help our customers
solve their biggest challenges

24%

for generating and pursuing breakthrough innovation that drives anincrease in our organic growth.

Growth Accelerator provides thespace for our employees to solve
customer problems by developing
inventive solutions and quickly testing
uncertainties and risks to enable fasterlearning and decision making.

improvement in on-time delivery tobring innovations to market faster

Coupling the Growth Accelerator with Lean Portfolio

59

External Partnerships

innovation teams using our
Growth Accelerator framework

Seattle-based incubator lab working to develop breakthroughManagement—a new FBS tool we developed in 2021—enabled ourbusinesses to bring high quality products to market at a faster pace.

Fortive continues our partnership with Pioneer Square Labs, acustomer solutions and scale transformative products and services
with emerging technology. As ESG-related issues become moreprevalent, external partnerships provide valuable opportunities toideate and scale solutions faster.

Accelerating Progress Toward a Sustainable Future | Company Overview

11Enabling Sustainable Innovation With Lean Portfolio Management (LPM)
In 2021, we successfully deployed our newest FBS tool, Lean Portfolio Management (LPM). This process drives teams to make strategic portfolio
investment decisions and carry out innovative growth programs. Through this process, we listen to our customers and leverage our stakeholders’knowledge to determine whether to practice sustaining engineering, which focuses on advancing and supporting our products already in themarket, or to phase out obsolete products and services and make way for new innovations. The LPM process helps Fortive and our operatingcompanies deliver greater returns on research and development and accelerate innovation.

Lean Portfolio Management (LPM) Process

DEVELOPDREAM

Strategy

Customer
Validation

Business Model
Validation

Scale and Perform

DELIVER

SustainTransition
and Retire

ProblemWorth Solving

Accelerating Progress Toward a Sustainable Future | Company Overview

12

COMPANY OVERVIEWOur Commitment
to Sustainability

We conducted a refreshed materiality assessment of environmental,

Based on the results, we refreshed and revised our Sustainabilitysocial and governance (ESG) issues in 2020 to understand which

Pillars, which are on page 15.

issues are most germane to our business, from an internal andThis report provides an update on Fortive’s commitment toexternal perspective. We followed the Global Reporting Initiative (GRI)

Sustainability, including the progress we made on our Sustainability

materiality process to complete the assessment, which includes:

goals in calendar year 2021 and is prepared in alignment with:

y identify;

y the GRI standards: Core;y prioritize; andy the Sustainability Accounting Standard Board (SASB) standard

y validate.

y the Task Force on Climate-Related Financial Disclosure (TCFD)

Datamaran’s AI-powered platform, which incorporates

framework; and®

comprehensive internal and external input.

y the United Nations Global Compact and the United Nations

details please see the GRI Index.

The material ESG issues influenced our Sustainability goals, which
we finalized with the assurance that they align with our sharedpurpose and values.

Materiality Matrix
Human Rights

Climate Change and Greenhouse Gas (GHG) Emissions

Digital Privacy and Security
Ethics and Compliance

Water Use

Employee Well-Being, Safety, and Health

Waste Management

Inclusion and Diversity

Energy Management

Talent Acquisition, Retention, and Development
Political, Societal, Physical Risks
Product Lifecycle Responsibility

Community Engagement and Support
Organizational Culture and Management
Employee Rights

Responsible Supply Chain and Procurement
GovernanceTransparency

Innovation and Technology

Market Competition

Hazardous Materials
Sustainable Building andInfrastructure Management

Low

Customer Satisfaction

Air Emissions

Stakeholder Engagement

Accelerating Progress Toward a Sustainable Future

Sustainable Development Goals.

The results are depicted below in the materiality matrix, for more

External Issue RelevanceOur Sustainability Pillars align our actions with
our purpose and values. The Pillars serve as
the blueprint for our Sustainability strategy,
and we have goals to support and drive
progress within each Pillar.

The materiality assessment results were developed usingHigh

At Fortive, we are boldly pursuing our visionof accelerating a sustainable future for all by
investing in our people, our operations, andbreakthrough innovations that directly addressenvironmental and societal challenges.

for Electrical & Electronic Equipment (RT-EE version 2018-10);

Financial Management
Business Resilience

Internal Issue Relevance

High

13

Sustainability Journey
Our journey is one of continuous improvement and the key milestones are outlined below:

2021
y Fortive announced accelerated GHG emissions intensity reduction goal

2017y Fortive’s first year of
independent operationy Conducted Fortive’s first ESG
materiality assessment

2019y Announced five Inclusion and Diversity (I&D) leadership goalsy Fortive announced its first greenhouse gas(GHG) emissions reduction goaly Published first SASB Indexy Announced first supplier diversity goaly Joined the CEO Action for Diversity andInclusion Pledge
y Fortive Foundation established and registeredy Joined the United Nations Global Compact (UNGC) as a signatory
y Joined the CEO Action for Racial Equity fellowshipy Updated Sustainability Strategy Pillars

2016

2018

2020

2022

y Fortive launchy Established inaugural Sustainability
strategic pillars

y Published first GRI Index; CDP Climate
Change disclosurey Publish fifth annual Sustainability Report, including:y Published first Sustainability Reporty Launched Fortive-wide Employee and Friends
Resource Groups (EFRGs)

Accelerating Progress Toward a Sustainable Future | Company Overview◦ Announcement of Fortive’s new, Science-based
Targets initiative (SBTi)-aligned GHG goaly Inaugural Courageous Conversations◦ Initial Task Force on Climate-Related Financial
Disclosures (TCFD) Indexy Transition to Intelex’s GHG accounting solution◦ First UNGC Communication of Progressy Refresh and re-launch of energy kaizens

y Conduct Scope 3 relevance assessmenty Fortive Foundation makes first majorcharitable contributionsy Expand energy kaizens to include updated water
and waste assessmentsy Refreshed and expanded ESG materiality
assessment to include internal and external inputy And more to come…

14

Sustainability Pillars
Our sustainability pillars, and our alignment with the UN’s SDGs, guide us in how we work and ensure we continue operating in alignment with our sustainability commitments.

Empower Inclusive
and Diverse Teams

Invest in Our
Communities

Protect the Planet

Work and Source
Responsibly

Operate With
Principle

Advance an equitable and inclusive

Create and advocate for positive

Protect the environment andRaise and reinforce expectations to

Establish and enforce boundaries

culture that enables everyone to be

impacts in the communities inresources across the value chain.

ensure people, safety, and quality

to protect critical assets.

authentic and do their best work.

which we work, live, and serve.

y Inclusion and Diversityy Community Engagementy Organizational Culture

and Support

and Managementy Talent Acquisition, Retention,
and Development

Accelerating Progress Toward a Sustainable Future | Company Overview

are priority #1.
y Climate Change
and GHG Emissionsy Water Usey Waste Managementy Employee Well-Being,
Safety, and Healthy Responsible Supply Chain
and Procurement

y Ethics and Compliancey Business Resiliencey Digital Privacy and Securityy Human Rights

15

Empower Inclusive
and Diverse TeamsAt Fortive, we are more together. Our inclusive, winning culture
comes to life through challenging career opportunities thatbring out our best, drive our success, and build a promising
future for our team and the world around us.
CORE ISSUES
Inclusion and Diversity
Organizational Culture
Talent Acquisition, Retention, and Development

Accelerating Progress Toward a Sustainable Future

16

EMPOWER INCLUSIVE AND DIVERSE TEAMS

We know that diverse teams produce better outcomes, and our

Inclusion and Diversity

commitment to diversity starts at the top with the composition of
our Board of Directors. Other measures of progress include the

GRI 103-1, 103-2

through employee and friends resource groups (EFRGs). Our

inclusion and belonging score in our employee pulse surveys and thehundreds of team members building community and connections
EFRGs foster an inclusive environment by creating safe spaces for
Courageous Conversations and contributing diverse perspectives.

At Fortive, we have a clear vision for inclusionand diversity (I&D): We all play a role inbuilding a community where everyone
belongs—where everyone can speak theirmind, be themselves, and feel supported.
It’s how we achieve more together—for eachother, for our customers, and for the world.
We accelerate inclusion, diversity, and equity
through deliberate action and transparency
about our progress.

We have set clear aspirational goals to increase gender representation, BIPOC(Black, indigenous, and people of color) representation, and senior leader diversity
throughout the organization by 2025.

Promoting a Diverse and Inclusive Workforce
Fortive has placed increased importance on inclusion and diversity

We are proud to have scored 100% in the Human Rights Campaign

throughout the talent acquisition process, because we recognize

Index for a fifth consecutive year. We achieved this by meeting thethe immense value that varied perspectives bring to our business.

following criteria:

By making deliberate efforts to increase inclusion in our recruitmenty Workforce Protections: A written employment nondiscrimination

stage and diversify our interview slates, we foster unique thinking,creative ideas, and continuous improvement in our workplace.
Our commitment to I&D is informed through our strategic pillars
and is prioritized at every level of the organization. These pillars act
as a framework for achieving our vision.
y Diversity and Inclusion Matters: Build a diverse Fortive throughDiversity and Inclusion Mattershiring, developing, and retaining a strong and diverse teamy Everyone Owns Inclusion: Invest in development of our teams tobuild a Fortive where you can be yourself and do your best work

Everyone Owns Inclusion
I&D in Our DNA

Accelerating Progress Toward a Sustainable Futurey I&D in Our DNA: Build a culture of equity that enables greater

policy that includes sexual orientation and gender identity acrossthe global workforcey Inclusive Benefits: Equivalency in same- and different-sex
partnerships and equal health coverage for transgenderindividuals without exclusion for medically necessary carey Supporting an Inclusive Culture and Corporate Social
Responsibility: Strong programming including LGBTQIA+
educational and training programs for new hires and managers,
employee resource groups, and a group diversity council
To learn more please visit our Inclusion and Diversity webpage.

innovation for customers and the world
To learn more about our I&D pillars, goals, and progress please visit
our GRI Index.

Fortive scored 100% in the Human Rights
Campaign Corporate Equality Index (CEI)
for a fifth consecutive year.
17Partnering for Racial Equity
Extending our reach beyond our organization is critically important

Workforce Diversity Goals
Our Yearly Metrics

Our 2025 Goals

for our communities, our goals, and providing value to our businessand stakeholders. In 2021, we continued our engagement with the
CEO Action for Racial Equity and the Washington Employers for

Women

Women in Professionaland Management

BIPOC

BIPOC in Professionaland Management

Senior Leader Diversity[1]Inclusion and Belonging Score
in Employee Experience Survey

Racial Equity, organizations that promote and advance racial equity
in public and private companies.

400
leaders completed inclusive
leadership training

CEO Action for Racial Equity
CEO Action for Racial Equity is the first business-led fellowshipfocused on advancing racial equity through corporate engagement
tools and public policy. Fortive is proud to be an active member
driving progress on the Business Diversity Initiative that supports
the growth and scale of Black-owned businesses by increasing

60+

equity and access to capital, networks and opportunities across all
business services.

EFRG leaders participatedin the ERFG summit

63%
ethnic and gender diversity
on our Board of Directors

Washington Employers for Racial Equity
The Washington Employers for Racial Equity is a coalition of
employers across Washington state to support racial equity for thoseworking across the state. Aligned with our internal I&D strategy,
our signatory status includes setting measurable targets, assessing
progress, and publicly reporting results. Further, the coalitioncommits to advocating for state policies that advance equity.
[1] Women and U.S. Male BIPOC Director+

Accelerating Progress Toward a Sustainable Future | Empower Inclusive and Diverse Teams

18

Encouraging Open
Dialogue With EFRGs andCourageous Conversations

Fortive’s EFRGs

In 2021, we saw continued growth and engagement in our Employee
and Friends Resource Groups (EFRGs) and our Courageous
Conversations programs. We have 28 EFRGs across Fortive and ouroperating companies, each with their own mission and charter. Our
EFRGs build community and connections across Fortive toward ashared identity, consisting of members who identify and allies who
support them. Our EFRGs host meetings, speakers, and events
to raise awareness about challenges the communities face andencourage progress through education and engagement.
Courageous Conversations provide a forum for employees toengage in open dialogue that promotes empathy and unity acrossthe organization. Throughout 2021 we had a number of Courageous
Conversations hosted by our various EFRGs on issues ranging from
Stop Asian Hate to mental health to remembering George Floyd, as
well as a sit-down with our CEO to create a dialogue and promotechange on these topics. Our CEO and senior leaders are active
participants in these conversations and value hearing directly from
employees on how they can best create and advance collaborativeand supportive environments for all of our people. By creating thisspace for meaningful conversations, we are living our Values andcelebrating diversity in all its forms.

1,500+
employee and friends resourcegroup members engaged acrossmore than 28 global communities

Accelerating Progress Toward a Sustainable Future | Empower Inclusive and Diverse Teams

19

EMPOWER INCLUSIVE AND DIVERSE TEAMS

Organizational Culture
GRI 103-1, 103-2

We apply the Fortive Business System (FBS) mindset
and toolkit to all our core business operations andconstantly explore and execute strategies to bebetter stewards of the environment and society. Asa culture and operational system, FBS differentiates
Fortive and drives long-term value by:y Empowering and supporting our people to always
do better by providing the mechanisms to unlock
the creative capacity of our teams, maximizing
problem-solving and results.

We continue to apply FBS to drive our sustainability efforts. Examples from 2021 include:

Challenges

FBS Tools

Outcomes

Supply chain risks, delivery inefficiencies andVisual and Dailyy Fluke reduced supply chain shortage risks by $200M+

process waste

Management andy Qualitrol reduced supply chain risks of $21M+ in Q4 2021

Standard Work

from 350 to <40, over 89% reductiony Aligning with sustainability principles by
optimizing for efficiency and productivity whileeliminating muda, or waste.

Freight costs, Supply chain risks andVisual and Daily

inefficiencies due to distributed geographies

Management andy Capturing collective knowledge and provenmethods, while providing the flexibility to adapt
tools to specific situations.

Agility to respond to drastic capacity demand

Value Stream Mapping,and delivery support increases, increase

Transactional Process

production speed and reduce waste

Improvement, andy Providing the framework and tools to rapidly andefficiently experiment, test, and iterate to help
continually improve and accelerate progress.

Accelerating Progress Toward a Sustainable Futurey Industrial Scientific (ISC) reduced shipment shortagesy Advanced Sterilization Products (ASP) reduced freightcosts by nearly $10M

Standard Worky Manufacturing operations saw 5x output efficiency

Standard WorkTo learn more about FBS’s origin and history, please visit our website.

20

EMPOWER INCLUSIVE AND DIVERSE TEAMS

Talent Acquisition,
Retention, andDevelopment
GRI 103-1, 103-2

Investing in Our People
We are focused on attracting, retaining, anddeveloping our extraordinary people to drive
our business and strategic value proposition.
We offer challenging career opportunities thatenable personal and professional growth andan inclusive, winning culture strengthened byhigh expectations.
Our talent strategy is part of our businessstrategy; empowering our talented, global
team to contribute in meaningful ways drives
our success and builds the organization fortoday and the future.

At Fortive, we seek and nurture great people to help us further our mission
and execute our shared purpose and sustainability value proposition. We
hold ourselves to those high standards by using the Fortive9 (F9). F9 is ourleadership framework, consisting of nine key leadership behaviors that guideour ways of working and how we recruit, select, evaluate, and develop our
people. F9 is our framework for maximizing organizational capabilities and isembedded end-to-end across our talent management programs.
The F9 attributes complement our customers’ and our own ambitions
as it guides our behaviors towards our vision of a world that isstronger, safer, and smarter.

900+
future leaders participated inintensive development programs

72%
senior positions filled with internal talent

Accelerating Progress Toward a Sustainable Future21

Employee Experience Survey
The Employee Experience Surveys are a critical element of our70%of employees feel that
Fortive is the right place
for their careerscontinuous improvement culture. With over 80% of our global teamparticipating in our quarterly surveys throughout 2021, we continue
to gain deep, frequent insights about our employees’ experiences
to inform and improve the work experience of our global team. Our
team continues to share a strong sense of inclusion and belonging,with that index score holding at 80% favorable. See the full resultsof our 2021 Surveys on page 49.

FBS Ignite

300

team members across
24 countries completed
our People Leader
Experience training

4,500+

digital learning courses
available to enhance
professional growth

The Fortive Business System (FBS) Ignite program is a uniqueprofessional development opportunity that accelerates career growththrough an immersive, supportive experience. Through FBS Ignite,
participants are provided with:y intensive instruction in the FBS toolkit;
y executive career coaching;y a discrete business challenge to address over three months; andy exposure to other parts of the business and their culture and customers.

Accelerated Leadership Experience (ALE)and People Leadership Experience (PLE)

General Management Development Program (GMDP)

In 2021, we launched the third year of our Accelerated LeadershipManagement Development Program to give groups of high potential, early career

Experience (ALE) and People Leadership Experience (PLE) programs.
Action learning provides ALE participants with a safe space to practiceand apply new leadership behaviors and FBS tools to a real problem.
Participants work in teams for a two-month period on a real-time businesschallenge and ultimately present their solution and recommendations to

To maintain a strong talent pipeline for senior leaders, we offer the Generalleaders the opportunity to learn and grow within various roles across Fortive’s
operating companies. The experience includes formal development, visibility
to senior executives, and powerful mentorship to prepare graduates to become
senior level leaders at Fortive and our operating companies. The GMDP not only
helps us enhance our team’s knowledge, but it also contributes to improving

an executive panel and the sponsoring organization.

retention rates of our high value talent. Our strong talent pool enables Fortive to

ALE and PLE enable us to have some of our highest potential talent focus

products and services.

continue providing our customers with exceptional and increasingly innovativeon solving business challenges we’re facing as an organization.

Accelerating Progress Toward a Sustainable Future | Empower Inclusive and Diverse Teams

22

Invest in Our
Communities
We create and amplify positive impact
in the communities around the world
where we live, work, and serve.

CORE ISSUES
Community Engagement and Support

Accelerating Progress Toward a Sustainable Future23

INVEST IN OUR COMMUNITIESCommunity
Engagement
and Support
GRI 103-1, 103-2

Our commitment to making a difference in ourcommunities has been fundamental since day
one, and we work for global impact at every level.
The Fortive Foundation focuses our corporate
giving on a range of causes, from social justiceand STEM learning to disaster response andenvironmental protection.
We also empower our teams to support local
causes they care about through the employeeled Fortive Day of Caring and invest in the next
generation of leaders and innovators through theFortive Scholarship Program.

The Fortive Foundation
Our employees express to us that supporting mission-driven
organizations aligned with our shared values is important to them.
In 2019, we established the Fortive Foundation to accelerate ourphilanthropic efforts to support community initiatives. In our firsttwo years of charitable contributions, the Fortive Foundation
provided approximately $1 million to non-profit organizations.
Through strategic partnerships with the American Red Cross andGlobal Giving, we are able to extend the reach and impact of ourcharitable contributions.

Virtual5: Celebrating Fortive’s
5-Year Anniversary
To celebrate our five-year anniversary in July 2021, we
invited our employees to participate in a Virtual5:
y walk, run, blade, row, or swim for five kilometers;
y volunteer for five hours with a non-profit organization;
and/ory dedicate 50 minutes to learn something new.
Upon completion, employees were able to select one from agroup of five non-profit organizations to receive a donationfrom the Fortive Foundation.
#FortiveTurns5

Accelerating Progress Toward a Sustainable Future24Day of Caring

Fortive Scholarship Program

Day of Caring is a core Fortive tradition grounded in our spirit of

The Fortive Scholarship Program supports our employees’ children

generosity and optimism. We provide paid time off for all employees

and dependents in their undergraduate and graduate studies

to dedicate their time and energy to serve their communities andthrough scholarship funds. We award the scholarships based on

the causes they are most passionate about, and they consistently

academic performance, leadership potential, and economic need,report that participating in Day of Caring is a positive, transformativewith each scholarship renewable for up to three years.

experience. Thanks to the availability of COVID-19 vaccines, in 2021
many of our teams were able to reconvene in-person community
outreach and engagement.

more young people to pursue their passions and contribute to amore compassionate, sustainable world. And in 2021, we expanded

These videos represent two examples of our Day of Caring tradition.

eligibility for students applying to vocational schools and communityy Fortive Corporation’s Day of Caring with Snohomish County Boys

colleges and renewed our commitment to first-generation higher

and Girls Cluby Fortive China’s Day of Caring event

education students, to celebrate the many pathways that empower
academic and professional development.

400K+

84

service hours contributed in five
years of Fortive Day of Caring

applications

100%
operating company participation in 2021

60+
communities

Accelerating Progress Toward a Sustainable Future | Invest in Our Communities

By investing in the next generations of innovators, we aim to enable

52
new and renewed scholarships

35%
recipients outside the U.S.

25

Protect the Planet
We harness the power of our culture of innovation andcontinuous improvement to protect the environment
and advance Sustainability across our value chain.
CORE ISSUES
Climate Change and Greenhouse Gas Emissions
Products and Services

Accelerating Progress Toward a Sustainable Future

26

PROTECT THE PLANET

Climate Change
and Greenhouse
Gas Emissions

We are proud of our commitments and continued performance toreduce the carbon intensity of our operations. The job of protecting
the planet belongs to all of us, and we take that responsibility
seriously. We have established ambitious goals since day one
to reduce our impacts and we are leveraging FBS to embedsustainability into day-to-day operations across the business.
Last year, we announced a more ambitious goal to achieve a 50%
reduction in greenhouse gas (GHG) emissions intensity by 2025
from 2017 levels.

GRI 103-1, 103-2

Climate change demands bold action to adapt
to changing conditions and protect the health ofcommunities worldwide, now and in the future.
To ensure a sustainable future for all, we areaccelerating our efforts to reduce greenhousegas (GHG) emissions with a new absolutegreenhouse gas (GHG) emissions reduction goalthat is consistent with the Science-based Targets
initiative (SBTi) guidance and Paris Agreement.
We are aligning our Sustainability strategy andclimate-related disclosures with the Task Forceon Climate-Related Financial Disclosures (TCFD)
to fully reflect the strength of our climate-related
governance, strategy, risk management andmetrics and targets.
Accelerating Progress Toward a Sustainable Future

As of year-end 2021, we achieved a
51.0% reduction in Scope 1 and 2 GHG
emissions intensity from 2017 levels
across our EHS Significant Sites[1],meeting our goal four years early.
Having met our goal earlier than expected,
we are taking a bold step forward with anew, absolute GHG reduction goal that isaligned with the Science-based Targets
initiative (SBTi) guidance:
We are committing to reduce absolute
Scope 1 and Scope 2 GHG emissions 50%
by 2029 from 2019 levels across at least
95% of our real estate footprint.

To achieve this goal, we will continue to:y invest in energy efficiency projects;
y leverage our culture of innovation; andy update emissions factors as they are published to realize
electricity grid improvements.
In addition, we will explore opportunities for renewable energy—at
our sites, through utility providers and via large-scale renewable[1] EHS Significant sites are defined as those that have at least 50 employees and/or any manufacturing, light assembly, or service operations. These sites represent
approximately 77% of our real estate footprint.

energy projects, evaluate our operations for process changes andtransformations, and explore new and emerging technologies thatare applicable to our businesses.

27

GHG Emissions (metric tons of CO2e)
Scope 1

Scope 2

Total
66,066
Scope 2
51,998

Total
62,135
Scope 248,093

Total
67,753
Scope 247,537

Total
58,924
Scope 2
41,034

A Focused Approach to Emissions Reductions
We are committed to continuous improvement when it comes to ourInvesting in energy efficiency projects: In 2021, we invested

climate strategy, and are taking steps such as:additional capital to qualified projects ranging from infrastructure-

Establishing GHG targets for operating companies: In 2021, weestablished emissions reduction targets for our highest-emitting
operating companies. On average, the operating companies
reduced 15.6% of Scope 1 and 2 absolute GHG emissions from

related improvements, such as lighting and HVAC system upgrades
to process improvements and operational reconfigurations.
Together, these projects contributed approximately 35% to our
2020–2021 emissions reduction performance.

2019–2021, with the highest-emitting operating companies

Procuring renewable energy: Several of our major sites procure

achieving an average of 16.9% absolute reduction.

clean energy through their utilities. We are conducting a multi-

Conducting energy kaizens: Using our model of continuous
improvement, or kaizen, we evaluate energy sources and systems
across our operations to identify energy efficiency opportunities.
Through energy kaizens last year, we identified potential

Scope 1
14,068

Scope 1
14,0422017

2018

Scope 1
20,217

2019

Scope 1
17,891

2020

Total
53,663
Scope 2
41,097

Scope 1
12,5672021

site assessment to identify additional clean energy opportunities
through utility companies and third parties. We have also begun toevaluate off-site renewable energy opportunities to promote energy
efficiency at-scale.

opportunities to reduce over 680 MTCO2e and annual energy
savings of more than $150,000.

51.0%

reduction in Scope 1 and 2 GHG emissions
intensity (CO2e/$ revenue) from 2017 to 2021

The United Nations International Panel on Climate Change (UN IPCC)’s 6th Annual
Report was a ‘code red’ for humanity, citing that the world is [facing the] imminent riskof hitting 1.5 degrees in the near term. The only way to prevent exceeding this thresholdis by urgently stepping up our efforts and pursuing the most ambitious path.

18.8%

UNITED NATIONS SECRETARY-GENERAL ANTÓNIO GUTERRES[1] For additional details on our GHG accounting methodology, see the GRI Index.

Accelerating Progress Toward a Sustainable Future | Protect the Planet

reduction in absolute Scope 1 and 2
GHG emissions from 2017 to 2021[1]28Scope 3 Emissions
In addition to Scope 1 and 2 GHG emissions, we are actively
engaged in understanding our Scope 3 emissions; the indirectemissions that occur in our value chain. We are conducting anassessment to confirm which Scope 3 categories are relevant andmaterial to Fortive, beginning with Upstream Scope 3 categories.
We will disclose our initial Scope 3 emissions data in our 2022 CDP
Climate Change disclosure.

Managing Climate Risks
and Opportunities

Water Use andWaste Management

As a global company, we recognize that climate change presents

Water is a central resource in our everyday lives and in the naturalrisks and opportunities for our business, operations, value chain, andsystems that support our planet. Water access and availability has

the communities where we live and work. To truly understand thesebeen a challenge from the beginning of time, and water scarcity isrisks and opportunities, we leverage management systems usedbeing amplified by climate change. Recognizing the universal needwithin the company to ensure the financial, operational, and humanfor water stewardship, we are conducting more detailed analyses

health of our business.

of our larger water-using sites to understand the opportunities forconservation and efficiency. Recently concluded site assessments

Our intention in aligning with the TCFD
framework is to provide transparency
into how we identify and manage
climate risks as well as why and how
we evaluate and action opportunities
that benefit our business, customers,
employees, and shareholders.

and data analysis suggest that water usage is not an immaterial
aspect of our businesses. We will conduct further review, andleverage our CDP Water Disclosure results to inform how we proceed.
Waste is a common theme across Fortive, as reducing “muda,”
or “waste,” is the focus of many FBS tools and processes. In theenvironmental sense of the word, waste is a growing humanhealth and environmental issue. We strive to minimize waste in
our processes and operations, and we are working hard to identify
the sources and root causes of our waste streams as well as whichmaterials our teams are already recycling, donating, or reusing. ThisIn 2021, we conducted a gap analysis of the Task Force for
Climate-Related Financial Disclosures (TCFD) in our first step toalign with the TCFD framework. Given the alignment of the CDP
Climate Change questionnaire with the TCFD framework, we

analysis requires considerable effort. As we gain more insight into
the work streams that generate waste, we will evaluate opportunities
to reduce or eliminate waste and continue our efforts to reduce
waste generation and reduce waste disposed of in landfills.

will continue to use the annual CDP disclosure to communicate

Please refer to the GRI Index for an update on our Water Use

the details of Fortive’s climate-related governance, strategy, risk

Management and Waste Management efforts.

management, and metrics and targets.

In 2021, we formally expanded the risk criteria within our Enterprise Risk Management programto account for the financial, operational, and regulatory risks in addition to physical risks forwhich we were already accounting. By incorporating additional climate-related risks into ourexisting protocol for evaluating and identifying risk, we are able to capture climate-related
impacts in a manner that is easily understood by our operating companies.

Accelerating Progress Toward a Sustainable Future | Protect the Planet

29

Task Force for Climate-Related Financial Disclosures (TCFD) Alignment
We are leveraging the TCFD framework to take a holistic approach

Risk Management

to our climate strategy. We are progressing towards full TCFD

y Expand climate-related risks and opportunities that operatingalignment through phased actions planned for the next three years.
In 2022, we will:companies should evaluate via the Risk Assessment Processy Integrate the results of the climate scenario analysis into
the Enterprise Risk Management process and businessGovernancey Add climate change experience to the skills matrix for membersof the Board Nominating and Governance Committeey Incorporate climate-related performance goals for relevant
leaders and management

continuity planning
Metrics and Targets
y Expand Scope 1 and Scope 2 GHG accounting to include atleast 95% of sites, in alignment with SBTi guidancey Develop other resilience targets beyond GHG emissions

Strategyy Conduct a qualitative climate scenario analysis to assess how
physical and transition risks and opportunities may impact

Please refer to our TCFD Index for more detail.

business strategy and operationsy Publish a corporate climate policy in alignment with theParis Agreement

2022

2024+

Phase 2: Secure leadership buy-in andimplement foundational strategies

Phase 4: Continue toadvance alignment

2021

2023

Phase 1: Assess TCFD maturity
and develop TCFD roadmap

Phase 3: Increase TCFD maturity
and communicate progress

Accelerating Progress Toward a Sustainable Future | Protect the Planet

30

PROTECT THE PLANET

Products and Services
GRI 103-1, 103-2

Innovating for the Environment and Society
Fortive’s innovative technologies conserve precious natural resources andminimize environmental impacts. Our products enable our customers tomaximize energy efficiency, monitor resource use, and prevent pollution.
Inspired by our customers’ needs, we create breakthrough solutions that power
communities, protect water supplies, and ensure safer, more efficient workplaces.

Our operating companies advance sustainability
with products and services that:y Help improve energy efficiency at scale.

Innovating for Patient Carey Maximize the lifespan of assets and facilities.

Fortive products and services are at work behind the scenes to ensure patienty Protect employee and frontline worker
safety through prevention, detection, andmonitoring capabilities.
In 2021, we set out to evaluate and qualify theextent to which our products and services are“sustainable.” Our approach is a standardsbased methodology that provides us andour stakeholders with a view on Fortive’s
Sustainability Value Proposition in action today
and the opportunities we have to continue
to accelerate progress toward a sustainable
future for all.

Accelerating Progress Toward a Sustainable Future

and worker safety in healthcare environments. Our suite of software-enabled
hardware and digital solutions monitor the physical environment within
healthcare facilities, track instruments assigned to procedures and used inoperating rooms to ensure patient safety, and provide doctors, laboratory
scientists, and healthcare providers with analytics to quickly and accurately
diagnose patient health conditions and treatments.

Innovating for Safety and Critical Operations
Our operations-focused solutions are built with safety and sustainability in mind.
We know our customers must consider the impact of daily operational decisions
on worker safety, sustainability goals, and the operating budget. We design
our products to provide visibility to all relevant criteria and data visualizations
to support a safe working environment, human health and well-being, andsustainability of their operations.

31

Innovating for the Environment and Society

Tektronix oscilloscopes support efforts

Specialty Product Technologies, within

Gordian’s Job Order Contracting (JOC)

Gems Sensors 1100 series pressure sensor

towards developing carbon-free delivery

Hengstler-Dynapar, provides AGBR Agricultural

system enables our customers to meet theirand RFO rotor sensor are incorporated

solutions and developing next-generation

Encoders that offer high-precision feedback

supplier diversity goals. At its core, JOC isinto agriculture sprayers to ensure

data storage products. See how a carbon-free

to modern agricultural automation systems.

performance-based—suppliers are incentivized

precision dosing of water and fertilizers

delivery start-up in England and a leadingThis reduces and even eliminates errors

to collaborate with owners and treat every

across hundreds of acres. This maximizes

memory and storage company in Siliconrelated to the disbursement of seeds, fertilizers

project as an opportunity to earn future work.

crop yields, reduces waste, and minimizes

Valley work with Tektronix to engineer theand other key resources, enabling a precise

Whatever customers’ priorities are, whether

costs to the agricultural producer.

future in this video.

calibration that generates savings and increased

supplier diversity, sustainability, or emissions

productivity for the agricultural producers.

reductions, contractors will be more invested
in meeting these goals.

Accelerating Progress Toward a Sustainable Future | Protect the Planet

32

Innovating for Patient Care

ASP and Censis provide solutions that,

Invetech’s Haemonetics TEG 6

Gems’ LS-300TFE and LS-700 Level

Setra’s Continuous Environmental

Hengstler-Dynapar’s Acuro AC58

when partnered, address all stages

provides real-time awareness of a

Switches provide a simple and effective

Monitoring System (CEMS) provides

Profinet Encoder is highly accurate

in the sterilization and management

patient’s blood clotting ability inmeans to optimize cancer detection

real-time data visualization fromand energy efficient. It provides

of medical instruments. CensiTracan emergency or surgical setting,systems and provide the most accurate

in-room sensors measuring key

positioning information to improve

Advanced tracks instruments used inresulting in fewer errors, faster results,

results for providers and patients.

environmental parameters andperformance and precision in

the operating room, ensuring they are

and a streamlined team of skilledeven sending alarm notifications tomachinery applications, including

accounted for, sterilized, and properly

personnel in the operating room.

ensure safe, optimal conditions for

positioning medical imaging devices

healthcare workers and patients.

or automatically determining the

reprocessed. Once they reach thedisinfection stage of processing, theheight of hospital beds.

ASP Sterrad Velocity system provides
faster release of sterilized instruments,
allowing for increased output to keep
up with the demands of the busiest
sterile processing departments.

Accelerating Progress Toward a Sustainable Future | Protect the Planet

33

Innovating for Safety and Critical Operations

ServiceChannel’s automation and data-

Qualitrol’s Condition-Based MaintenanceIntelex helps organizations manage

Gordian’s software solutions provide

driven insights ensure regular preventive

Solutions include sensors, instruments,

complex operational data and initiatives

condition and lifecycle assessments

maintenance to keep assets up and running

diagnostic software and services that provide

with applications such as Asset andof buildings and their assets to extend

longer while identifying optimal timing forreal-time insights into health of hydropower

Compliance Tracking System (ACTS),

lifespan through preventive or deferredasset rotation or replacement to phase out

generators and turbine generators to prioritize

Sustainability Performance Indicators

maintenance and capital renewal withinefficient, energy-intensive assets.

corrective measures and plan maintenance(SPI), and award-winning Environmental,

minimal waste and maximum efficiency.

outages to avoid system failures.

Health, Safety, and Quality (EHSQ).

Accelerating Progress Toward a Sustainable Future | Protect the Planet

34

Work and Source
Responsibly
In a world of dynamic working environments,
we put people, safety, and quality first.
CORE ISSUES
Employee Well-Being, Safety, and HealthResponsible Supply Chain and Procurement		
Human Rights

Accelerating Progress Toward a Sustainable Future

35

WORK AND SOURCE RESPONSIBLY

Employee Well-Being,
Safety, and Health
GRI 103-1, 103-2, GRI 103-3, 403-2

Keeping our people safe and healthy is job
number one. We are proud of our worldclass environmental, health, and safety (EHS)
program, which is continually evolving to
respond to dynamic working environments
and emerging challenges.
New policies, tools, and infrastructure keep
Fortive teams safe, healthy, and connected
whether we’re working together on site, remotely,or in a hybrid environment. For example:y Fortive’s Environmental, Health, Safety andSustainability Policyy Fortive EHS Risk Score

Environmental, Health, and Safety Management
Our operating companies use various Fortive Business Systemthree years, to incorporate best-in-class and emerging best EHS(FBS) tools to track EHS metrics that help to identify, prevent,practices to advance our EHS programs to ensure employee andand remediate risks to our employees. Currently, 30% of our EHS

environmental health, safety, and compliance.

Significant Sites maintain ISO 14001/45001 certification and/orInternational Contractors Safety Rating System.

Recognizing the intersection of EHS and Sustainability, the EHS
Leadership Council identified the need to update the EHS Risk

The EHS Risk Score is an internal tool used by all of our operating

Score. In 2021, we conducted an off-cycle refresh of the EHS Risky Supplier Code of Conductcompanies to assess risks, define leading EHS practices, andScore to incorporate Sustainability criteria. The EHS Risk Score wasy Supplier Audit Program

drive continuous improvement. Across Fortive, sites review andupdated to include the following major tenets for EHS Management:

assess their EHS risk profile twice annually and scores are reported

Safety (and Occupational Health), Environmental (Compliance),

to leadership. We review and refresh the EHS Risk Profile every

Sustainability, Leadership Engagement and Metrics.

Accelerating Progress Toward a Sustainable Future36Fortive’s Safety Progress
GOAL: 100% of operating companies achieve U.S. Occupational Safety and HealthAdministration top quartile for Total Recordable Injury Rate (TRIR) and Days Away,
Restricted, Transferred (DART) case rate based on their industry classification

Operating Companies Achieving U.S.
OSHA Top Quartile for Industry for TRIR
Year Data

Fortive EHS Awards
To celebrate the importance of EHS in our day-to-day operations andthe annual EHS Summit we bring our EHS professionals together

management, Fortive’s EHS Awards program acknowledges sites

to learn and share EHS practices and programs used by operatingthat exemplify best practices based on our EHS Risk Score criteria.

companies to foster innovation, ideation, and collective problem

Sites receiving the Best Program award have the lowest (best) EHS

solving. In 2021, more than 200 EHS and Operations professionals

Risk Scores with an emphasis on incorporating sustainability andparticipated in a shared virtual EHS and Ops Summit.

2025 Goal

Operating Companies Achieving U.S.
OSHA Top Quartile for Industry for DART
Year Data

2025 Goal

safety into their culture.
Our operating companies continue to make progress towards
our goal by evaluating their EHS programs for opportunities toimprove practices that keep employees healthy and safe. Operatingcompanies use the EHS Risk Score, industry benchmarking andintra-operating company best practice sharing to understand andmap to best-in-class EHS policies, programs, and initiatives. ThroughAccelerating Progress Toward a Sustainable Future | Work and Source Responsibly

EHS Award Highlights
y Qualitrol, Belfast

y Setra-ICG, Tianjiny Tektronix, Pudongy Gems, Brighton

y Gems, Plainville37

WORK AND SOURCE RESPONSIBLY

Responsible
Supply Chain
and Procurement

Supplier Diversity

Sourcing Locally

At Fortive, we believe that diverse perspectives fuel innovation,

We continue our focus on identifying suppliers that are

inside our operations and with our partners. This is why supporting

geographically closer to both our own sites and our customers’.

Minority-owned, Women-owned, Veteran-owned, certified smallThis strategy not only reduces our carbon footprint by decreasing

businesses, Federal Historically Underutilized Businesses (HUB), anddistances between suppliers and our operations, but also promotes

Disadvantaged businesses is a crucial component of our I&D andbusiness resilience and brings value to local communities. Sourcing

responsible sourcing initiatives. In 2021, we worked with an external

locally also decreases our risk of supply chain disruptions, improving

firm to establish a Supplier Diversity Program which is informed

our resilience in the face of continued supply chain challenges.

by industry best practices and emphasizes education about the
roadblocks surrounding supplier diversity data. We put great effort
into selecting a source for diversity data and subsequently screen all
our operating companies’ supplier spend through this source. Thisbenchmarking provided us with the accuracy and comparability we

Our high standards for health, safety, andquality extend to everyone we do business
with, including our supply chain. The
Fortive Code of Conduct and Supplier
Code of Conduct serve to:y Clearly articulate our values, standards,
and expectations.
y Ensure all partners operate in accordancewith our priorities for safe and fairworking conditions.
y Follow production practices that ensure
quality and protect the environment,
safety, and rights of all people.

Accelerating Progress Toward a Sustainable Futureneed for reporting disclosures as well as provided precise insights
to ensure we had a positive impact in year one of our Supplier
Diversity program.

GOAL

10%

increase in diverse supplier spend in 2021
ACTUAL

12.3%

increase in diverse supplierspend when compared to 2020

38

WORK AND SOURCE RESPONSIBLY

Human Rights
GRI 103-1, 103-2, 103-3

We uphold fair labor standards for all employees
across our operating companies and value chain
by cultivating a culture of respect, integrity, andfairness. We are committed to conducting ouroperations in an ethical and responsible manner.
We also take seriously the need to understandlabor and human rights practices across our
supply chain. We are engaging more deeply with
our suppliers to ensure they support international
efforts to protect human rights and abolishforced labor, child labor, and human trafficking
and address any issues.

Governing Human Rights
Utilizing various governance structures, we pursue continuous

In 2021, we worked with key internal stakeholders and external

improvement of Fortive’s own strategy and performance with

consultants with expertise in global human rights to enhance

respect to human rights. Included in our Supplier Code of

Fortive’s human rights program and policies. As a result, we revised

Conduct, we communicate our expectations that suppliers andour Supplier Code of Conduct to include specific language on

subcontractors conduct their business in a manner consistent withhuman rights and combating modern slavery. We also ensured

our standards and institute policies that prohibit human trafficking,better alignment with the International Labour Organization (ILO)

labor violations, and corruption.

to create consistency among our suppliers and peers. Our impact
is seen through our Human Rights Risk Management and related
Supplier Audit Program.

Accelerating Progress Toward a Sustainable Future

39

Improving Human Rights Risk Management
and Our Supplier Audit Program
We have a systematic approach in place to continuously evaluate theWith this revised audit program much of the conversation withhuman rights risks in our supply chain which leverages independent

the suppliers during the audits was focused on education—bothdata sources to assess the potential for corruption and forced

regarding the necessity (compliance with the law) and to thelabor. In 2021 we added the Global Slavery Index to this approach,relevance (the right thing to do) including the need to flow thisproviding more direct linkage to this particular risk which then serves

down to their own suppliers. While some suppliers were wellas the basis of the requirements for our Supplier Audit Program.

informed through their other partnerships given the recent

To better align our suppliers with Fortive’s standards on humanrights, we revised our Supplier Audit Program for new and existing
suppliers to include more specificity on leading indicators as
defined by the “Guiding Principles on Business and Human Rights,”
with specific definitions adopted by the ILO for human rights

changes in the regulatory landscape, many were unaware of theneed to specifically acknowledge their supply chain and support
processes aligned to support international efforts to protect
human rights and abolish forced labor, child labor, and humantrafficking and address any issues.

abuses. This conveys clear expectations for how suppliers should

One component of our Supplier Audit Program is the internallydemonstrate compliance with our Code of Conduct and provides

certified mutually recognized auditors (MRA), and in 2021 we set out

auditors with guidance when performing their investigations.

to increase our capacity by ten certified individuals. Unfortunately,
due to pandemic restrictions, we fell short of our goal and only
certified three individuals. And while these struggles continue in

GOAL

100%

of audits completed within the cycle

2022, we once again are motivated to target greater certification
numbers in 2022 to equip our people with knowledge and skills tostrengthen accountability for human rights and labor rights as partof our broader MRA supplier assessment process.
With these changes, we conducted more supplier audits thanany prior year, helping us to be more informed buyers and further

ACTUALdemonstrate our commitment to worker safety and human rights.

100%

completed by the deadline

Accelerating Progress Toward a Sustainable Future | Work and Source Responsibly

40

Operate
With Principle
At Fortive we have the courage to takea stand, and know that how we dothings matters as much as what we do.
CORE ISSUES
Ethics and ComplianceBusiness Resilience
Digital Privacy and Security

Accelerating Progress Toward a Sustainable Future

41

OPERATE WITH PRINCIPLE

Ethics and Compliance
GRI 103-1, 103-2, 102-16, SASB RT-EE-510A.1

We are firmly committed to building our businesswith integrity and dealing honestly and fairly with
our employees, customers, business partners,
investors, and competitors.
Fortive upholds a simple but powerfulconcept: Your Integrity/Our Success, which
continues to inform and guide all aspects of
our Compliance Program.

Fortive Compliance Program

The Fortive Code of Conduct, available in 22
languages and signed by every employee, is aclear guide to act with integrity in everything we
do. Our industry-leading compliance program
includes a confidential channel for employees orpartners to raise issues and concerns, available
24 hours a day in 20 languages.

do at Fortive, we are committed to continuous improvement.

We believe that ethical business conduct is foundational to the

In January 2022, we launched an updated Anti-Corruption Policy,

growth and success of Fortive. Stakeholders expect our Compliance

together with additional training modules.

Program to identify business risks early, mitigate these risks asneeded, and properly enable business strategies. As with all that we

We continue to make advancements in the use of data andanalytics to visualize business risks and enable a proactive
approach to remediate risks where necessary. With the help of

In 2021, we conducted the following to enhance our Compliance Program:

the FBS toolkit and support of The Fort, we merge outputs fromy We engaged an external party to assess our Compliance Program andmultiple systems into a singular destination, providing us withto benchmark our Program and execution against best practices;y We launched a new system and centralized repository that houses all
Fortive global policies to enable easier access to policies by employees;
y We launched a “Policy on Policies” to establish better controls anda consistent framework around the creation, approval, review, andupdate of company policies; andy Released a Conflict of Interest Policy and concurrently established

an inclusive view of a region, operating company, or categoryrisks and have ongoing projects to enhance data visualization.
Additionally, our Compliance Monitoring and Auditing efforts took
a risk-based approach and conducted focused reviews of certain
geographies and business activities. These efforts create our“third line of defense.” This provides us more real-time data, withthe ultimate goal of spotting and responding to trends quickly
and ultimately being more predictive.

an electronic reporting mechanism for employees to complete
Conflict of Interest Disclosure Questionnaires on a scheduled andad-hoc basis.

Accelerating Progress Toward a Sustainable Future42

Business Resilience

Managing Risks andOpportunities ThroughEnterprise Risk Management

GRI 103-1, 103-2, 103-3

In 2021, challenges continued due to the COVID-19 pandemic,

OPERATE WITH PRINCIPLE

economic disruption, and global logistics. Fortive responded
and adapted accordingly. We also capitalized on new business

We’re tapping into powerful new systems andstandards to monitor, manage, and mitigate
risks in real time, and to respond quickly toemerging trends and topics.
Fortive’s commitment to Sustainability also
contributes directly to business resilience.
Diversifying our energy and supply sources
minimizes the risk of business and service
disruption and gives us the agility toensure compliance with new and emerging
regulatory requirements.

opportunities related to cybersecurity and data protection, humancapital management, supply chains, business portfolio strategy, andclimate change.
Our Enterprise Risk Management (ERM) approach provides
continuity of core business operations, including better
understanding ESG risks and opportunities. Our integrated
approach to risk management and ESG allows us to respond to
unexpected events swiftly and effectively, ensuring we continue
providing for our customers and employees. For example:y Carbon Emissions: Decreasing carbon emissions is good forbusiness and good for the planet. Lower energy use means costsavings and greater operational efficiency. Diversifying our power

These actions provide beneficial impacts to the world around us andfor our business. Our risk management actions protect our business
reputation and reduce business interruption and unexpected costs,
making Fortive a more profitable organization. Further, our Board of
Directors provides oversight of these risks and opportunities while
we deploy various policies to each operating company to integrate
within their existing processes. This allows for a customized andefficient approach to risk management tailored to the specifics ofeach operating company, which in turn helps Fortive accelerate aresilient and sustainable path forward.

sources reduces energy volatility and reduces regulatory exposure.
y Supplier Risk Management: Our updated Supplier Risk
Assessment process projects the impact of various potential

Risk Assessment Process

events and improvements made to reduce that impact along with

Our Risk Assessment Process (RAP) serves as the tool for Fortive toa catalog of risk management strategies ensuring more consistentidentify and manage risks on an annual and ongoing basis. Fortive

responses and focus on meaningful actions over words. The

requires all operating companies to participate in the RAP annually.

Fortive Supplier Risk Management process is intended to inform

We identify and monitor risks to track progress on actions to

input for the broader Risk Assessment Process.

mitigate or reduce the impact of such risks. The results of the RAP

y Human Rights: We continue to engage more deeply with our
suppliers through our supplier audit program to better ensure
our supply chain is free from human rights abuses such as forcedlabor or human trafficking.
y Ethics and Compliance: A comprehensive Ethics and Complianceprogram and mindset enables a better, stronger business throughthese practices.

are presented to the Board of Directors.
Going into 2022, Fortive has an enhanced process through theintroduction of a sustainability category, including more explicit
criteria to guide consideration of ESG risks beyond the physicalimpacts of climate change. In 2021 we fully transitioned the RAP
to the Intelex platform, which enables us to leverage the advanced
capabilities of the software to conduct and analyze our risk
assessment efforts.

Accelerating Progress Toward a Sustainable Future

43

Our Evolving Approach to COVID-19
The COVID-19 pandemic proved Fortive’s resilience and ability to

Fortive continues to implement actions to best care for ourtake care of the physical and mental wellbeing of our employees.

employees as the COVID-19 pandemic continues to change ourThis was displayed amidst the onset of COVID-19, when Fortive

ways of working. We implemented various actions, going beyond

developed a COVID-19 Task Force, implemented a multitude of

the current pandemic, including:employee resources, and established our guiding principles:y Forming global and local response teams to create standard

Safety, Transparency, Empathy, Science, and Employee Trust.
Today, we are taking what we have learned over the past two years
and are shifting away from an acute, pandemic-specific response toa more holistic approach to health and safety. This shift aligns withprocesses for best practices and maintain constant contact
with our employees;
y Waiving deductibles, co-pays, and co-insurance for COVID-19
testing or treatments and all virtual healthcare visits;

Fortive’s culture—to continuously learn and improve, thus enablingy Enabling flexible work location, schedule, and hours designed

us to provide sustained support to our employee base from now

to balance the needs for both the company and employees;

into the future.
Our guiding principles for navigating the COVID-19 pandemic havehelped us adapt to new challenges and prepare us for the future.

y Ensuring that our essential manufacturing team had theeducation, resources, and support needed to stay safe on the job;y Providing subsidized childcare, caregiver services, andparental counseling;y Ensuring pay continuity for quarantine periods for our
employees; andy Providing enhanced counseling and mental health services on
a global basis.
These efforts have allowed Fortive to adjust and grow over 2021
and have maintained the continued safety and health of all our
employees, their families, customers, and our communities.

Accelerating Progress Toward a Sustainable Future | Operate With Principle

44

OPERATE WITH PRINCIPLE

Digital Privacy
and Security
GRI 103-1, 103-2

Our commitment to being an employer andpartner of choice makes digital privacy andsecurity a top priority. We protect criticalassets by establishing and enforcing clear
boundaries. We continue to invest in cloudbased infrastructure to strengthen privacy andsecurity for customer and employee data.

Safeguarding Digital Privacy
Data is a modern currency as valuable as money, and sometimes

y Establishing a monthly virtual session called “Privacy Officemore so. It is a fundamental necessity for our business and our

Hours” to worldwide employees who support our data protection

customers, and we strive to maintain best-in-class data privacy andprogram. This three-hour long “drop-in” event is a way forsecurity programs and safeguards. In 2021, we improved our data

participants from various operating companies and geographies

privacy and security programs by:

to share their best practices, problem solve, and provide feedback

y Introducing a new set of Key Performance Indicators (KPIs)

to the corporate team.

that cover global privacy operations at both the corporatey Creating a quarterly one-hour session for each of our operating

and operating company levels. The KPI results are reviewed bycompanies’ privacy support teams where the quarterly KPIs are

Fortive’s most senior leaders on a quarterly basis.

shared, training on strategic priorities is provided, and the teams

y Centralizing web cookie compliance at the Fortive level, so thatusers of our operating company web sites around the world
will be presented with a compliant cookie banner and consent

seek guidance on any privacy topics of unique concern to theiroperating company employees and customers.
y Engaging a variety of external data protection experts tomechanism based on the requirements of the visitor’s location,complement our internal expertise, advise and upskill our teams

enabling correct and transparent placement of web cookies on

on complex transformation projects and strategic transactions.

the visitor’s equipment.

These practices and programs fortify our approach to digital privacy
and inspire confidence in our abilities among those who work inside
and alongside Fortive.

Accelerating Progress Toward a Sustainable Future

45

Ensuring Security
Security is part of our value proposition and helps us earn trust

In early 2021 we launched Fortive’s multi-year security strategy. This

with our employees and customers. We safeguard our employees’

included establishing a governance, risk, and compliance program

information, protect customers’ sensitive data, and secure ourwhich involved creating and revising eleven security policies as wellintellectual property with vigor, which allows our teams the freedom

as five security standards. Further, the Fortive Security organization

to maximize their creative potential, rapidly experiment, and innovate.

built out a security strategy and annual performance targets aligned

To integrate security in everything we do, we maintain a top-down
approach that the Audit Committee of our Board of Directors and
our CEO regularly review and vet. We also utilize multiple programs
to manage for:y threat detection;y vulnerability management;
y identify and access management;

Cyber Security Framework. These actions have provided us with
better, more comprehensive security rules and standards for Fortiveand our operating companies as well as a stronger, standardized
strategy aligned with a best-in-class framework.
To ensure we continue progress on our security efforts and goals,
we use third parties to audit and validate our process. This includes
an external audit report to the Board Audit Committee, a third-party

y product security;

security maturity analysis, and BitSight assessment reports. We arey Governance, Risk Management, and Compliance (GRC); andproud of the significant progress we made in 2021, hitting our firsty Business Continuity Planning (BCP), Incident Response

set of goals while gaining valuable insights to continue our progress

Planning to maintain the highest standards of security.

Accelerating Progress Toward a Sustainable Future | Operate With Principlewith the National Institute of Standards and Technology (NIST)

towards superior security.

46

Appendix
Data Tables
United Nations Global Compact
Communication on Progress (UNGC CoP) Index
United Nations Sustainable
Development Goals (UN SDGs)
Task Force on Climate-Related
Disclosures (TCFD) Index
Sustainability AccountingStandards Board (SASB) Index
Global Reporting Initiative (GRI) Index

Accelerating Progress Toward a Sustainable Future

47

APPENDIX

Data Tables
Stakeholder Engagement
Stakeholder Audience

Employees

Frequency

Quarterly,Monthly,
WeeklyEngagement Approach

Sustainability disclosure, Internal All-hands,
All-employee newsletters, Company intranet

Topics of Discussion — Goals, Initatives, Performance
Environmental

SocialGovernancey Climate-Related Disclosuresy Human Capital Managementy Board Compositiony Emissions Reductionsy Inclusion and Diversity

y Sustainability Governancey Fortive Foundationy Executive Compensationy Day of Caringy Digital Privacy
Customers

Ongoing

Operating company sales, Product leaders’communications with customers

y Climate-Related Disclosuresy Inclusion and Diversity

y Sustainability Governancey Emissions Reductions

y Fortive Foundationy Ethics and Compliancey Sustainable Products and Services

y Day of Caringy Digital Privacy

Shareholders

Suppliers

Local Communities

Annually,
Quarterly

Annually

Annually
and ad hoc

Sustainability disclosure, Quarterly results,
Annual shareholder engagement program

Sustainability disclosure, Supplierquestionnaire, Conflict minerals

Day of Caring, Ongoing engagement via
local events and partnership activities

y Climate-Related Disclosuresy Human Capital Managementy Board Compositiony Emissions Reductionsy Inclusion and Diversity

y Sustainability Governancey Sustainable Products and Services

y Supplier Diversity

y Executive Compensationy Climate Impacts

y Human Rights

y Business Resiliencey Digital Privacy

y Shareholder Rights

y Climate-Related Disclosuresy Inclusion and Diversity

y Sustainability Governancey Emissions Reductionsy Supplier Diversity

y Conflict Minerals

y Sustainable Products and Services

y Human Rights

y Climate Impacts

y Inclusion and Diversity
y Fortive Foundationy Day of Caring

Accelerating Progress Toward a Sustainable Future | Appendix

48

2021 Employee Diversity
Metric2021 Parental Leave
2021

Gender[1]MetricMale

FemaleTotal

Eligible

6,400

3,773

10,173

Female37%

Took parental leave

161

101

262

Male

63%

Returned to work

155

98

253

Retention after 12 months

145

95

240

Employment Type[2]Permanent hourly

4,461

Return to work rate

96%

97%

96.5%

Temporary hourly

471

Retention rate

90%

94%

92%

Full-time, salaried

12,213Part-time, salaried

294

Metric2020

2021

Region[3]Employee Experience Survey Results[1]North America (excluding Mexico)

11,866Overall Employee Engagement Score

77%

76%

Western Europe

2,359

Inclusion and Belonging Score

80%

80%

Europe3,463

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

81%

84%

Asia

3,760

I am provided with opportunities for learning and development.

74%

76%

Australia and New Zealand279

Latin America (including Mexico and Caribbean)

488

Middle East and Africa

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
through the 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% ofbenchmarked companies across all of our indices—creating the best places to build your career and have an impact in the world.

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

Accelerating Progress Toward a Sustainable Future | Appendix

492021 Employee Diversity
MetricSenior Leaders[1]Professionals and Managers

Total

Age Range <30

Age Range 30–50

Age Range 50+

Women[2]

30%

32%

37%

14%

59%

27%

Men

70%

68%

63%

12%

57%

31%

BIPOC[3]

22%

27%

34%

17%

53%

31%

Non-BIPOC

78%

73%

66%

12%

47%

42%

[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
MetricOur 2020 Metrics

Our 2021 Metrics

Change (2020–2021)

Our 2025 Goals

Gender Representation

36%

37%

1.0%

50%

Gender Representation in Professional and Management

31%

32%

1.0%

48%

BIPOC Representation

34%

34%

0.0%

37%

BIPOC Representation in Professional and Management

26%

27%

1.0%

36%

Senior Leader Diversity[1]

41%

43%

2.0%

50%

Inclusion and Belonging Score in Employee Experience Survey

80%

80%

0.0%

85%

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

Accelerating Progress Toward a Sustainable Future | Appendix

502021 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/A[1]

N/A[1]

N/A [1]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,

N/A[1]

N/A[1]

N/A[1]

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[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, bothcompany-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.

Accelerating Progress Toward a Sustainable Future | Appendix

51

Energy Use and Emissions
MetricUnit of Measure

2017

2018

2019

2020

2021

2017–2021 (% change)

Natural Gas

mmBtu

155,099

143,040

143,447

139,593

121,967-21.4%

Mobile Sources

gallons

152,139

244,507261,100

53,577

194,60727.9%

Diesel Fuel

liters107,724

86,99969,79386,777

101,872-5.4%

No. 2 Fuel Oil

liters114,575

81,472

114,344

74,2804,800-95.8%

Electricity

kWh127,580,180

127,884,581

126,646,129

113,701,800

112,566,243-11.8%

Energy Use

Emissions[1]Scope 1MT CO2e

14,06814,042

20,217

17,891

12,567-1,501

Scope 2

MT CO2e51,99848,09347,53741,03441,097-10,902

Scope 1 and 2

MT CO2e

66,066

62,13567,75358,92453,663-12,403

Absolute Delta

YOY–-5.95%

9.04%-13.03%-8.93%-18.8%

Carbon Intensity Delta

YOY–-19.13%-9.20%-14.35%-22.04%-51.0%[1] The emissions data reported is the most current as of May 2022, and reflects updates to emissions factors, data corrections, and the portfolio of EHS significant sites.

Accelerating Progress Toward a Sustainable Future | Appendix

52

Membership of Associations
y 135 BACnet Committee – Building Automation and Control Networks

y Ethernet Alliancey NEMRA – National Electrical Manufacturers Representatives Associationy ABIEPS – Brazilian Association of the Equipment Industry for Petrol Pumps

y Fachausschuss FA 8.14 & 8.16 – Technical committees
for heat and temperaturey ODVA – Open DeviceNet

y ACC – Association of Corporate Counsel
y ACM – Association for Computing Machineryy AIST – Association for Iron and Steel Technology
y ANSI – American National Standards Institutey ARM – Alliance for Regenerative Medicine
y ASA – American Supply Associationy FEF – Forecourt Equipment Federationy FISA – Distributors Serving Sanitary Processing associationy IEC – International Electrotechnical Commission
y IEEE – Institute of Electrical and Electronics Engineers
y IHK – Association of German Chambers of Commercey ASHE – Association for Safe Healing Environments

y IPC – formerly the Institute for Interconnecting
and Packaging Electronic Circuits

y ASHRAE – American Society of Heating, Refrigeration
and Air Conditioning Engineersy ISA – Industrial Supply Associationy ASME BPE – American Society of Mechanical Engineers: Bioprocessing
Equipment ASNT – American Society for Nondestructive Testingy ASTM – American Society for Testing and Materials Automotive Aftermarket
y BayMe VBM – Bayerische M+E (Employers’ Associationsof the Metalworking and Electrical Industries)y BISS Associationy ISCT – International Society of Cell and Gene Therapy
y ISHRAE – Indian Society of Heating, Refrigeration
and Air Conditioning Engineersy ISPE – International Society for Pharmaceutical Engineeringy Johanniter Unfall Hilfe e.V (Die Johanniter) – Voluntary humanitarianorganizationKorean Industry Association and Chambers of Commercey OIML – International Organization of Legal Metrology
y Open Industry 4.0 Alliancey Optec BB
y Patentvereiny PCI – Payment Card Industry Security Standards
y PEI – Petroleum Equipment Institutey Private Brauerein Föderverien – Association for thepromotion of medium-sized private breweries
y Profibus Nutzeroganisationy Reflow Over Control Task Force Reflow Profiling Task Forcey Regelermittlungsausschuss – Legal Metrology associationy Silicon Saxony
y SITAC – Sensors and Instrumentation Technical Advisory
y Spartanburg Chamber of Commercey CCRM – Industry Consortium for Regenerative Medicine

y LBM – Lhr Aktiver Berufsverband (State Association of
Bavarian and Saxon Dairy Specialists and Dairy Farmers)y CECOD – Committee of European Manufacturers ofPetroleum Measuring and Distributing Equipment

y MCAA – Measurement, Control and Automation Associationy CEN – European Committee for Standardizationy MSC – Manufacturers and Services Council NACS –National Association of Convenience Stores

y China Society for Electrical Engineering Committeeof Electromagnetic Measurementy NAED – National Association of Electrical Distributors

y VDSI – Verband für Sicherheit, Gesundheit und
Umweltschutz bei der Arbeit (German OSHA)y National Safety Council

y WVIB – Wirtschaftsverband Industrieller Unternehmen Baden e.V.

y National Technical Committee of Standard Voltages,
Current Ratings and Frequencies

y ZVEI – Zentralverband Elektrotechnik- und Elektronikindustrie eV

y CiA – Canadian Industrial Auctioneers CII – Confederation of Indian Industry
y CompTIA – Computing Technology Industry Associationy DIN – Deutsches Institut für Normung
y EHEDG – European Hygienic Engineering and Design Groupy Energy InstituteAccelerating Progress Toward a Sustainable Future | Appendix

y National Technical Committee of Temperature Metrology

y SPIE – Society of Photo-Optical Instrumentation Engineersy Test & Measurement Coalition led by EPPA –Emergency Physicians Professional Associationy VDMA – Mechanical Engineering Industry

y Manufacturer’s Alliancey UNGC – United Nations Global Compact

y NCSLI – National Conference of Standards Laboratoriesy NEMA – National Electrical Manufacturers Association

53

APPENDIX

United Nations Global Compact Communication
on Progress (UNGC CoP) Index
UNGC Topic

Principle

Description

References

UNGC Topic

Principle

Description

References

Human Rights

Principle 1

Businesses should supportand respect the protection ofinternationally proclaimed humanrights; andHuman Rights

Labor

Principle 6

the elimination of discriminationin respect of employment andoccupation.

Supplier Code of Conduct

Environment

Principle 7

make sure that they are notcomplicit in human rights abuses.

Human Rights

Businesses should support
a precautionary approach toenvironmental challenges;

Climate Change andGreenhouse Gas Emissions

Businesses should uphold thefreedom of association and theeffective recognition of the rightto collective bargaining;

Fortive recognizes freedomof association and the right tocollective bargaining as fundamental
rights of our employees.

Environment

Principle 8

undertake initiatives topromote greater environmental
responsibility; andClimate Change andGreenhouse Gas Emissions

the elimination of all forms offorced and compulsory labour;

Human Rights

Human Rights

Labor

Labor

Principle 2

Principle 3

Principle 4

Supplier Code of Conduct

Supplier Code of Conduct

Environment

Principle 9

encourage the development
and diffusion of environmentallyfriendly technologies.

Products and Services

Anti-Corruption

Principle 10

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

Ethics and Compliance

Supplier Code of Conduct
Transparency in Supply
Chains Statement
California Transparency inSupply Chains Act of 2010

Environmental, Health, Safety
and Sustainability Policy

Anti-Corruption Policy
Supplier Code of Conduct

Labor

Principle 5

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

Accelerating Progress Toward a Sustainable Future | Appendix

54

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

Work and Source Responsibly

Day of Caring

Fortive Foundation
Fortive Scholarship Program

Responsible Supply Chain and Procurement

UN SDG 7
Affordable and Clean Energy

Ensure access to affordable, reliable, sustainable, and modern

UN SDG 8
Decent Work and Economic Growth

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

Protect the Planet

energy for all.

Climate Change and Greenhouse Gas Emissions
Products and Services

Work and Source Responsibly

Responsible Supply Chain and Procurement

Operate With Principle

Human Rights
Ethics and Compliance

Accelerating Progress Toward a Sustainable Future | Appendix

55

Goal
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.

UN SDG 11
Sustainable Cities and Communities

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

Empower Inclusive and Diverse Teams

Inclusion and Diversity

Work and Source Responsibly

Responsible Supply Chain and Procurement

Protect the Planet

Intelligent Operating Solutions

Work and Source Responsibly

Precision Technologies
Products and Services

UN SDG 12
Responsible Consumption and Production

Ensure sustainable production and consumption patterns.

UN SDG 13
Climate Action

Take urgent action to combat climate change and its impacts.

Accelerating Progress Toward a Sustainable Future | Appendix

Protect the Planet

Products and Services

Work and Source Responsibly

Responsible Supply Chain and Procurement

Protect the Planet

Climate Change and Greenhouse Gas Emissions
Products and Services

56

APPENDIX

Task Force on Climate-Related Financial Disclosures (TCFD) Index
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 andassessing climate-related risks.

CDP C2.1

b. Describe management’s role in assessing and managing
climate-related risks and opportunities.

CDP C1.2

a. Describe the climate-related risks and opportunities theorganization has identified over the short, medium, andlong term.

CDP C2.1aGovernance

Strategy

CDP C1.2a

CDP C2.3

CDP C2.2a
Risk Management

Risk Management

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

Metrics and Targets

CDP C2.3ab. 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 assess climaterelated 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
greenhouse gas (GHG) emissions and the related risks.

CDP C6.1

Metrics and Targets

CDP C3.2b

CDP C3.4

Accelerating Progress Toward a Sustainable Future | Appendix

CDP C2.2

CDP C9.1

CDP C3.2
CDP C3.2b

CDP C6.3
CDP C6.5

CDP C3.3c. Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C
or lower scenario.

CDP C2.2

CDP C2.4a
CDP C3.1

Strategy

CDP C2.2

Metrics and Targets

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

57

APPENDIX

Sustainability Accounting Standards Board (SASB) Index
SASB Topic

Code

Metric

Unit

Location

Business Ethics

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

Description of policies and practices for prevention of: (1) corruption andbribery and (2) anti-competitive behavior

N/A

Ethics and Compliance

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

N/A

Materials Sourcing

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

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 grid electricity, and percentage renewable

RT-IG-130a.1 version 2018

Gigajoules (GJ),
Percentage (%)

Data Tables
2021 CDP Climate Change Response, C8.2a

Recruiting andManaging a Global,
Diverse, and Skilled
Workforce

TC-SI-330a.2 version 2018-10

Employee engagement as a percentage

Organizational Culture

Recruiting andManaging a Global,
Diverse, and Skilled
Workforce

TC-SI-330a.3 version 2018-10

Percentage of gender and racial/ethnic group representation for(1) management, (2) technical staff, and (3) all other employees

Data Tables

Accelerating Progress Toward a Sustainable Future | Appendix

We are strongly committed to progressing inclusion,
diversity, and equity across our businesses as an equal
opportunity employer. While we believe our goals andprogress best reflect our commitment, our recent EEO-1
report is also available for reference.

58

SASB Topic

Code

Metric

Unit

Location

Product Lifecycle
Management

RT-EE-410a.1

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.

Product Lifecycle
Management

RT-EE-410a.2

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

Percentage (%) by revenue

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

Product Lifecycle
Management

RT-EE-410a.3

Revenue from renewable energy-related and energy efficiency-related products

Reporting currency

While we do not currently track this data, we are seeking togather data for future reporting cycles.
In 2021, we partnered with a team from our Accelerated
Leadership Experience (ALE) program to define “sustainable”
products and services and develop a standard methodology
for operating companies to classify their productportfolios. The team, comprised of five employees fromdiverse functions and operating companies, researchedsustainability standards, including SASB, Principles of
Responsible Investing (PRI), U.S. Environmental Protection
Agency product certifications, and the EU Taxonomy,
to inform their work. The team also benchmarked othercompanies’ sustainable product disclosures to understandand define industry best practices. The results of our work
will be shared in 2022.

Activity Metric

RT-EE-000.A

Number of units produced by product category

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

Activity Metric

RT-EE-000.B

Number of employees~18,000

Accelerating Progress Toward a Sustainable Future | Appendix

59

APPENDIX

Global Reporting Initiative (GRI) Index
GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 102: General Disclosures 2016

GRI 102: General
Disclosures 2016

102-1

Name of the organization

Fortive Corporation

GRI 102: General Disclosures 2016

102-2

Activities, brands, products, and services

About Fortive

General Disclosures
Organizational Profile

Fortive Business Directory
Form 10-K p. 2–4, 23
GRI 102: General Disclosures 2016

102-3

Location of headquarters

6920 Seaway Blvd, Everett, WA 98203

GRI 102: General Disclosures 2016

102-4

Location of operations

Form 10-K p. 22

GRI 102: General Disclosures 2016102-5

Ownership and legal form

Proxy Statement p. 8–9
Form 10-K p. 22

GRI 102: General Disclosures 2016102-6

Markets served

About Fortive
Form 10-K p. 2-4

GRI 102: General Disclosures 2016

102-7

Scale of the organization

About Fortive
Form 10-K p. 2–4

Accelerating Progress Toward a Sustainable Future | Appendix

60

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 102: General Disclosures 2016

GRI 102: General
Disclosures 2016

102-8

Information on employees and other workers

Data Tables

GRI 102: General Disclosures 2016

102-9

Supply chain

Form 10-K p. 4

GRI 102: General Disclosures 2016

102-10Significant changes to the organization and its supply chain

Proxy Statement p. 3–4
Form 10-K p. 2
Form 10-K p. 25

GRI 102: General Disclosures 2016

102-11

Precautionary Principle or approach

We apply the precautionary principle through our risk assessment process that is grounded in the Fortive Business
System (FBS) and implemented by all operating companies.

GRI 102: General Disclosures 2016

102-12External initiatives

United Nations Global Compact, United Nations Sustainable Development Goals, CEO Action on Diversity, The GHG
Protocol Corporate Accounting and Reporting Standard, ISO 14001, 45001, and 50000, Science-based Targets
initiative, Sustainability Accounting Standards Board

GRI 102: General Disclosures 2016

102-13

Membership of associations

Data Tables

102-14

Statement from senior decision-makerA Message From Our CEO

102-16

Values, principles, standards, and norms of behavior

Purpose and Values

Strategy
GRI 102: General
Disclosures 2016
Ethics and Integrity
GRI 102: General
Disclosures 2016

Accelerating Progress Toward a Sustainable Future | Appendix

61

GRI Standard

Disclosure

Description

Location or Direct Answer

102-18Governance structure

Proxy Statement p. 18–36

Governance
GRI 102: General
Disclosures 20162021 CDP Climate Change Response, C1
Our strategy and associated progress is routinely reviewed with the Board as they maintain oversight with respect
to reporting and disclosure.

Stakeholder Engagement
GRI 102: General Disclosures 2016

GRI 102: General
Disclosures 2016

102-40

List of stakeholder groups

Data Tables

GRI 102: General Disclosures 2016

102-41

Collective bargaining agreements

Form 10-K p. 5

GRI 102: General Disclosures 2016

102-42

Identifying and selecting stakeholders

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

GRI 102: General Disclosures 2016

102-43

Approach to stakeholder engagement

Data Tables

GRI 102: General Disclosures 2016

102-44

Key topics and concerns raised

Data Tables
Proxy Statement

Reporting Practices
GRI 102: General
Disclosures 2016

102-45

Accelerating Progress Toward a Sustainable Future | Appendix

Entities included in the consolidated financial statements

Form 10-K p. 3; Exhibit 21.1

62

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 102: General
Disclosures 2016

102-46

Defining report content and topic Boundaries

To identify the initial list of potentially material ESG topics, in 2020 we analyzed which topics aligned with ourshared 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. We surveyed a diverse,
representative group of 1,100 employees worldwide[1] 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, andsocial media. Using AI, Datamaran reviews the prevalence, content, and significance of the ESG topics in publicly
available sources, within business parameters such as industry peers, business sectors, and geography. We also
asked a select group of key investors for their assessment of the ESG topics’ relevance to Fortive’s business.
Among the 27 topics, 11 topics emerged as material from the internal and external views. While many of thematerial topics identified in the 2017 materiality assessment were reaffirmed, our material topics now reflect
existing and new priorities. Finally, our executive leadership team validated the results of the materiality
assessment, our revised sustainability pillars, and the report content during an interactive workshop. Unlessotherwise stated, the material topics discussed in this report cover our direct operational impacts, rather than
impacts across the full value chain.
Focusing on the material issues from an internal and external perspective (102-47), the issues were organized into
strategic pillars. The Sustainability Strategic Pillars inform the structure of this report, through which we report onannual performance related to the material issues and goals.

GRI 102: General Disclosures 2016

102-47

List of material topics

Our Commitment to Sustainability

GRI 102: General Disclosures 2016

102-48

Restatements of information

There were no restatements or corrections in 2021 compared to prior Fortive Sustainability Reports.

GRI 102: General Disclosures 2016

102-49Changes in reportingNo new material topics or topic boundaries from 2020 reporting cycle to 2021 reporting cycle.

GRI 102: General Disclosures 2016102-50

Reporting period

January 1, 2021 through December 31, 2021

GRI 102: General Disclosures 2016102-51

Date of most recent report

May 2021[1] Employees represented all operating companies, geographies, and job levels.

Accelerating Progress Toward a Sustainable Future | Appendix

63

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 102: General Disclosures 2016

GRI 102: General
Disclosures 2016102-52

Reporting cycle

Annually

GRI 102: General Disclosures 2016102-53

Contact point for questions regarding the reportsustainability@fortive.com
investors@fortive.com

GRI 102: General Disclosures 2016102-54Claims of reporting in accordance with the GRI Standards

This report was prepared referencing the Global Reporting Initiative (GRI) Standards, as identified in thisGRI Content Index.

GRI 102: General Disclosures 2016102-55

GRI content index

This serves as the GRI Content Index.

GRI 102: General Disclosures 2016102-56External assurance

Fortive did not seek external assurance for this report.

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Economic Performance is not a material topic for Fortive.

GRI 103: Management Approach 2016

103-2

Specific Disclosures

2021 Annual Report
The management approach and its components

Economic Performance is not a material topic for Fortive.
2021 Annual Report

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Economic Performance is not a material topic for Fortive.
2021 Annual Report

GRI 201: Economic
Performance 2016

201-1

Direct economic value generated and distributed

Form 10-K p. 58

GRI 201: Economic Performance 2016

201-2

Financial implications and other risks andopportunities due to climate change

2021 CDP Climate Change Response, C2.3

Accelerating Progress Toward a Sustainable Future | Appendix

2021 CDP Climate Change Response, C3.1

64

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Responsible Supply Chain and Procurement

GRI 103: Management Approach 2016

103-2

Human Rights
The management approach and its components

Responsible Supply Chain and Procurement
Human Rights

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Responsible Supply Chain and Procurement
Human Rights

GRI 204: Procurement
Practices 2016

204-1

Proportion of spending on local suppliers

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

GRI 103: Management Approach 2016
GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Ethics and Compliance

GRI 103: Management Approach 2016

103-2

The management approach and its components

Ethics and Compliance
Fortive’s Global Compliance Program is managed at the corporate level, where the Chief Compliance Officer andthe compliance 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 a compliance 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 recently customized the Intelex software to enable a software-based annual risk assessment.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Our compliance programs are evaluated through internal self-assessment and external assessment. In the spirit ofcontinuous 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 and improvement opportunities.

Accelerating Progress Toward a Sustainable Future | Appendix

65

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 205:
Anti-Corruption 2016

205-2

Communication and training about anti-corruption
policies and procedures

Annual ethics and compliance training and learning toolkits is provided for email/computer enabled employees.
Typical curriculum topics include Code of Conduct, Sexual Harassment Awareness and Prevention, Anti-bribery/
Anticorruption, Fair Competition, and Financial Integrity. Approximately 12,300 employees, participated in online
training on ethics and compliance topics and we are currently averaging a 99% on-time completion rate for our
online compliance-related training modules.

GRI 103: Management Approach 2016
GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Climate Change and GHG Emissions

GRI 103: Management Approach 2016

103-2

The management approach and its components

Climate Change and GHG Emissions

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Climate Change and GHG Emissions

GRI 302: Energy 2016

302-1

Energy consumption within the organization

Data Tables
2021 CDP Climate Change Response, C8.2a

GRI 302: Energy 2016

302-3

Energy intensity

Data Tables
2021 CDP Climate Change Response, C9.1

GRI 302: Energy 2016

302-4

Reduction of energy consumption

Data Tables

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Fortive’s primary industry classification is Electronics & Electrical Equipment; however, across Fortive, ourbusinesses span industries including Healthcare Equipment & Supplies, Industrial Machinery & Goods, andSoftware & IT Services industry categories. Water use is not identified as a material issue for the broader Industrials
category and the SASB Sustainable Industry Classification System does not identify water as material for any of thefour industry classifications, including Electronics & Electrical Equipment.

GRI 103: Management Approach 2016

103-2

The management approach and its components

To determine and periodically analyze materiality, we collect water use data from EHS significant sites on aquarterly basis via our Sustainability Data Collection campaign. The data is reviewed by a designated operatingcompany EHS and/or Facilities professional, and once approved, submitted to the Corporate Sustainability Teamfor review, reconciliation and/or approval. The data is reviewed quarterly for consistency, trends, and to better
understand the water intensity of our sites. If anomalies or outliers are observed, a quality review process is
initiated and followed to resolution or completion.
We define sites as EHS Significant if they have 50 or more employees and/or any manufacturing, light assembly orlaboratory operations. We have 70 EHS significant sites which comprise more than 77% of our real estate footprint.

Accelerating Progress Toward a Sustainable Future | Appendix

66

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management
Approach 2016

103-3

Evaluation of the management approach

We are developing a management review process for implementation in 2022. Through this process, theCorporate Sustainability Team will report the Sustainability data to the EHS Leadership Council for awareness andengagement with their operating company sites.

GRI 103: Management Approach 2016

103-1

Explanation of the material topic and its Boundary

Climate Change and GHG Emissions
Our 2021 goal to reduce GHG emissions 50% by 2025 from 2017 levels is applicable to our EHS significant sites,
i.e., sites that have an employee population of 50 or more and/or have operations that include manufacturing, lightassembly, servicing, or laboratory operations. The EHS Significant Sites account for approximately 22% of our total
global real estate footprint.

GRI 103: Management Approach 2016

103-2

The management approach and its components

Climate Change and GHG Emissions
We implemented standard work to align our GHG inventory management and disclosure to the Greenhouse
Gas Protocol’s Corporate Accounting and Reporting Standard, updating our emissions factors to the IEA’s 2018
emission factors and EPA’s 2018 emissions factors. We published a renewable energy policy to define what we
consider renewable energy. This policy provides guidance to operating companies as they explore renewableenergy procurement through their utility providers.
We have a third-party provider who monitors and manages energy procurement in deregulated markets in U.S.
and Europe.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

In 2020, we transitioned our sustainability data management to the Intelex Sustainability Performance Indicators(SPI) platform, where data quality tollgates and checks 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
when data anomalies are found and corrective actions are needed.

GRI 305: Emissions 2016

305-1

Direct (Scope 1) GHG emissions

Data Tables
2021 CDP Climate Change Response, C6, C7

GRI 305: Emissions 2016

305-2

Energy indirect (Scope 2) GHG emissions

Data Tables
2021 CDP Climate Change Response, C6.2, C6.3

Accelerating Progress Toward a Sustainable Future | Appendix

67

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 305: Emissions 2016305-4

GHG emissions intensity

Data Tables
2021 CDP Climate Change Response, C4.1b

GRI 305: Emissions 2016

305-5

Reduction of GHG emissions

Data Tables
2021 CDP Climate Change Response, C7.9

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

We track hazardous and non-hazardous waste generation at our EHS significant sites. Hazardous waste ismonitored and measured with rigor due the compliance requirements. The non-hazardous waste profiles of our
EHS significant sites require further evaluation to understand and determine whether non-hazardous waste ismaterial to our business.

GRI 103: Management Approach 2016

103-2

The management approach and its components

We track hazardous and non-hazardous waste generation at our EHS significant sites. Hazardous waste ismonitored and measured with rigor due the compliance requirements. The non-hazardous waste profiles of our
EHS significant sites require further evaluation to understand and determine whether non-hazardous waste ismaterial to our business.
We collect waste data from EHS significant sites on a quarterly basis via our Sustainability Data Collection
campaign. The data is reviewed by a designated operating company EHS and/or Facilities professional, and once
approved, submitted to the Corporate Sustainability Team for review, reconciliation, and/or approval.
The data is reviewed quarterly for consistency, trends, and to better understand the waste generation profile atour sites. If anomalies or outliers are observed, a quality review process is initiated and followed to resolution
or completion.
We define sites as EHS Significant if they have 50 or more employees and/or any manufacturing, light assembly, or
laboratory operations. We have 70 EHS significant sites which comprise more than 77% of our real estate footprint.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

We track hazardous and non-hazardous waste generation at our EHS significant sites. Hazardous waste ismonitored and measured with rigor due the compliance requirements. The non-hazardous waste profiles of our
EHS significant sites require further evaluation to understand and determine whether non-hazardous waste ismaterial to our business.
For non-hazardous waste, we are developing a management review process for implementation in 2022. Throughthis process, the Corporate Sustainability Team will report the non-hazardous waste data to the EHS LeadershipCouncil for awareness and engagement with their operating company sites.

Accelerating Progress Toward a Sustainable Future | Appendix

68

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Responsible Supply Chain and Procurement

GRI 103: Management Approach 2016

103-2

Human Rights
The management approach and its components

Responsible Supply Chain and Procurement
Human Rights
We assigned a Senior Director in our Supply Chain team to govern our responsible sourcing policies and makechanges to our Supplier Code, Supplier Audit Program, and Supplier Assessment as needed. Through these
programs, we deploy actions including briefings with C-Suite executives and senior Operations and Procurement
leaders and e-learning modules to inform employees on updates and changes to policies and procedures such asenvironmental related permits for the operations they manage.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Human Rights
Using third-party service providers and industry groups, we benchmark against peers through various indices toensure our management approach and programs utilize best practices available. These findings informed updates
to our Supplier Code and Supplier Audit Program.

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.

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Organizational Culture

GRI 103: Management Approach 2016

103-2

The management approach and its components

Organizational Culture

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

The Employee Experience Survey measures the effectiveness of our employee-related programs. A supervisor
effectiveness score 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 andrespond to feedback.

Accelerating Progress Toward a Sustainable Future | Appendix

69

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management
Approach 2016

401-2

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

Data Tables

GRI 103: Management Approach 2016

401-3

Parental leave

Data Tables

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Talent Acquisition, Retention, and Development

GRI 103: Management Approach 2016

103-2

The management approach and its components

Talent Acquisition, Retention, and Development
Prioritization of employee-related topics and programs are determined based on the company strategy. In 2021, we
discussed how Human Resources can enable the journey to Fortive 3.0 through talent acquisition, and employee
experience, development, and learning.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

We use internal tracking to evaluate the success and impact of employee-related projects and programs,
measuring both qualitative and quantitative metrics. Our quarterly pulse Employee Experience Surveys measuresthe effectiveness of our employee-related programs. In 2021, we saw increased inclusion and belonging scoresamong our people participating in Fortive’s EFRGs, showing us that our progress towards I&D is reflected in how
our employees feel about working at Fortive. Additionally, a supervisor effectiveness score is generated from the
Employee Experience Survey and every people leader receives a score. People leaders are expected to understandtheir scores and create action plans to improve their scores and respond to feedback.
We have an established history of supporting SpeakUp!, our phone hotline 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 review our Speak Up! activity daily, using it to inform upcoming
trainings and communications, review against external benchmarks, as well as analyze and report the data andmetrics with our Audit Committee and Board of Directors.

GRI 402: Labor/
Management
Relations 2016

402-1

Accelerating Progress Toward a Sustainable Future | Appendix

Minimum notice periods regarding operational changes

Omission: Minimum number of weeks’ notice regarding operational changes is omitted. Reason for omission:
information unavailable. We will engage with our internal talent teams to gather this information for next year’s report.

70

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Employee Well-Being, Safety, and Health

GRI 103: Management Approach 2016

103-2

The management approach and its components

Employee Well-Being, Safety, and Health
The Environmental, Health, and Safety Leadership Council (EHSLC), which includes senior EHS representatives
from across the company, sets the EHS strategy for the company at the corporate level. The EHSLC determines
which areas of focus are most important 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. In 2021, we incorporated Sustainability criteria and metrics into
the Risk Score framework to evaluate the sustainability performance of each operating company. The EHS Risk
Score is weighted based on site employee population and our goal is to reduce the average EHS Risk Score acrossthe company by implementing EHS and Sustainability programs and initiatives tailored to the work environment.
13 of our 68 EHS Significant Sites are certified to ISO 14001, ISO 45001, and/or the International Contractors
Safety Rating System, and 100% of our manufacturing EHS significant sites are ISO certified. All certified sites hostmanufacturing, service, and/or light assembly operations.
We leverage data and FBS tools for EHS management across all our operating companies. FBS tools such as
Standard Work (similar to standard operating procedure) provide 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 vital fora 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 103: Management Approach 2016

103-3

Accelerating Progress Toward a Sustainable Future | Appendix

Evaluation of the management approach

Employee Well-Being, Safety, and Health71

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 403: Occupational
Health and Safety 2018403-1

Occupational health and safety management system

Many operating companies have EHS management systems that are consistent with the requirements ofrecognized standards, including ISO 14001, ISO 45001, OHSAS 18000, OSHA’s Voluntary Protection Program, andProcess Safety Management.
The Code
Environmental, Health, Safety and Sustainability (EHS&S) policy: The EHS policy aligns with ISO 14001. The policy
affirms our commitment to continuous improvement in EHS performance, waste minimization, prevention ofpollution, promotion of sustainable practices and policies, and prevention of workplace accidents and injuries. The
EHS&S policy was reviewed and updated in 2021.
We are currently in the process of rolling out the Intelex software suite of EHS management tools, including injury
and incident reporting and audit tools.

GRI 403: Occupational Health and Safety 2018403-2

Hazard identification, risk assessment, and incident investigation

Employee Well-Being, Safety, and Health

GRI 403: Occupational Health and Safety 2018403-3

Occupational health services

All Fortive employees have access to occupational health services, appropriate for the risks they may be exposed
to at work. These occupational health services may be external and/or internal based on an assessment of in-housecapabilities, exposure types, and required skills/competencies to ensure all employees have access to the required
occupational health support. The results of occupational health exposure monitoring are available only to therespective worker and the required EHS and occupational health staff. In any case of exposure above acceptablelevels, managers/supervisors may need to be involved to help resolve an exposure issue but will not be provided
access to the individual’s occupational health records. Any use of information from occupational health records fornegative treatment of an employee would constitute a violation of our ethics policy. Fortive provides its employeeswith access to an internal website providing practical solutions and support on life, health, family, work andfinances. Such topics can include health related information which encourage employees to self-care via personal
fitness, proper diet and understanding and dealing with medical conditions.

GRI 403: Occupational Health and Safety 2018403-4

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

Fortive operates an EHS Leadership Council that consists of EHS Leaders from multiple operating companies whomeet at a regular cadence to develop, implement, and evaluate the occupational health and safety management
systems for Fortive. The EHS Leadership Council works closely with their respective OpCo’s to ensure awarenessand adherence to the policies and recommended procedures. 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 ofhealth and safety topics. Work councils or committees, where in place at a majority of EHS Significant Sites, areproactively 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 ensure that
all activities and recommendations are adequately supported by the organization. Most typically, the work councils
or committees meet at least quarterly 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.

Accelerating Progress Toward a Sustainable Future | Appendix

72

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 403: Occupational
Health and Safety 2018403-5

Worker training on occupational health and safety

Operating companies conduct training as required by local and regional law and regulation. Training topics are
tailored to the operations, and are regularly updated to comply with changing regulations and workplace risks.
They are delivered in various formats depending on the operating company and the type of training. Our operatingcompany EHS teams deploy trainings regularly—in most cases, monthly, and in some cases, daily or weekly—via
EHS stand-ups.

GRI 403: Occupational Health and Safety 2018403-6

Promotion of worker healthNo changes were made to existing core programs, such as medical, dental, vision, life, disability, retirement,
parental leave, etc. We expanded the Employee Assistance Program visits to 10 per covered event in the U.S. andadded a global/international EAP for all employees. Additionally, we added backup/emergency childcare andeldercare for U.S. employees, and added financial wellness and well-being support for U.S. employees.

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. Fortive corporate does not outline anapproach for occupational health and safety impacts. Operating companies implement site-level contractor safety
programs and can be gathered for future reporting.

GRI 403: Occupational Health and Safety 2018403-8

Workers covered by an occupational health and safety
management system

Omission: Workers covered by an occupational health and safety management system is omitted. Reason foromission: information unavailable. Internal systems do not currently track this information.

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Talent Acquisition, Retention, and Development

GRI 103: Management Approach 2016

103-2

The management approach and its components

Talent Acquisition, Retention, and Development
Utilizing MyFortive, our human capital management system, we continue to roll out resources, trainings, andeducational programs for our employees in alignment with our Development for Growth (D4G) philosophy.

GRI 103: Management Approach 2016

103-3

Accelerating Progress Toward a Sustainable Future | Appendix

Evaluation of the management approach

We use internal tracking to evaluate the success and impact of employee-related projects and programs,
measuring both qualitative and quantitative metrics. The Employee Experience Survey measures the effectivenessof our employee-related programs. A supervisor effectiveness score is generated from the Employee Experience
Survey and every people leader receives a score. People leaders are expected to understand their scores andcreate action plans to improve their scores and respond to feedback.

73

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 404: Training and
Education 2016

404-2

Programs for upgrading employee skills and transition
assistance programs

Talent Acquisition, Retention, and Development
At the corporate function level, we create tools and frameworks to support the operating companies withleadership development. We require all employees to set development and performance goals. Employees haveaccess to training resources through libraries, such as LinkedIn Learning. Our approach to employee upskilling is todedicate efforts at the point of greatest impact, which is at the operating company level. Technical and upskillingto learn a new software or a new skill occurs at the respective operating companies and varies at each.
Our Performance for Growth (P4G) program allows employees to sustain 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.

GRI 103: Management Approach 2016
GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Talent Acquisition, Retention, and Development

GRI 103: Management Approach 2016

103-2

The management approach and its components

Inclusion and Diversity

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

To track our progress towards achieving our internal I&D goals, we use a combination of governance practices,tracking infrastructure, and programmatic initiatives. Our internal tracking infrastructure, MyFortive, allows us totrack diversity and employment metrics in the U.S. and globally, as well as metrics on career progression, employee
experience, and pay. This technology and information provides us with a better and more holistic view of ourculture and the daily experience in our employees. The data and trends we see directly impacts how we evolve our
I&D programs and efforts.

GRI 405: Diversity andEqual Opportunity 2016405-1

Diversity of governance bodies and employees

Data Tables

GRI 103: Management Approach 2016
GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Inclusion and Diversity

GRI 103: Management Approach 2016

103-2

The management approach and its components

Inclusion and Diversity

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

To track our progress towards achieving our internal I&D goals, we use a combination of governance practices,tracking infrastructure, and programmatic initiatives. Our internal tracking infrastructure, MyFortive, allows us totrack diversity and employment metrics in the U.S. and globally, as well as metrics on career progression, employee
experience, and pay. This technology and information provides us with a better and more holistic view of ourculture and the daily experience in our employees. The data and trends we see directly impacts how we evolve our
I&D programs and efforts.

We are strongly committed to progressing inclusion, diversity, and equity across our businesses as an equal
opportunity employer. While we believe our goals and progress best reflect our commitment, our recent EEO-1
report is also available for reference.

Accelerating Progress Toward a Sustainable Future | Appendix

74

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 406: NonDiscrimination 2016406-1

Incidents of discrimination and corrective actions taken

Omission: Total number of incidents of discrimination is omitted. Reason for omission: information unavailable. Thisdata is maintained by the operating companies and extends beyond our topic boundary.

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Responsible Supply Chain and Procurement

GRI 103: Management Approach 2016

103-2

Human Rights
The management approach and its components

Responsible Supply Chain and Procurement
Human Rights
We assigned a Senior Director in our Supply Chain team to govern our responsible sourcing policies andmake changes to our Supplier Code, Supplier Audit Program, and Supplier Assessment as needed. Throughthese Programs, we deploy actions including briefings with C-Suite executives and senior Operations andProcurement leaders and e-learning modules to inform employees on updates and changes to these policies
and relevant procedures.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Responsible Supply Chain and Procurement
Human Rights
Using third-party service providers and industry groups, in 2021 we benchmarked against peers through various
indices to ensure our management approach and programs utilize best practices available. These results werereported up to the most senior leaders within the organization.

GRI 409: Forced ofCompulsory Labor

409-1

Operations and suppliers at significant risk for incidents
of forced or compulsory labor

We amended our responsible sourcing processes, and thus the audit account, to incorporate the Global Slavery
Index (GSI) to supplement the perception corruption index (PCI) which reflects the specific forced labor risk
alongside corruption risk related to geography. With the inclusion of GSI, the count of audits increased, however
this is primarily the result of our 1, 3, 5-year audit frequency, and this being the 3rd year of the cycle. Greater audits
are expected for years 3 and 5.
97 direct material suppliers were identified in 2021 based on our risk matrix, which is not limited to “significant
risk.” None of these suppliers qualify as “significant risk.” Responsible Sourcing Audits were completed with all 97
suppliers. No findings required escalation or further investigation (i.e. suppliers are rated as satisfactory) and areas
for improvement were limited to policy/process improvements as a result of our expanded scope of questions inthis audit year.

Accelerating Progress Toward a Sustainable Future | Appendix

75

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Human Rights

GRI 103: Management Approach 2016

103-2

The management approach and its components

Human Rights
Conflict Minerals Policy Statement
The Fortive Supplier CodeTransparency in Supply Chains Statement

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

Human Rights

GRI 412: Human Rights
Assessment

412-1

Operations that have been subject to humanrights reviews or impact assessments

Omission: Total number and percentage of operations that have been subject to human rights reviews or humanrights impact assessments, by country, are omitted. Reason for omission: information unavailable. We do notcurrently track this data, but we are improving supplier audit rigor and refining our processes to integrate
additional human rights criteria.

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Community Engagement and Support

GRI 103: Management Approach 2016

103-2

Fortive Corporation Charitable Contributions Policy
The management approach and its components

Community Engagement and Support
The Fortive Foundation is governed by a Board comprised of three senior officers of the company and managed
by a team led by two senior directors and two program managers. The management team proposes charitable
contributions that support and align with Fortive’s shared purpose, values, and Sustainability strategy. The Board
and Management Team develop an annual plan and contributions are executed on a quarterly basis.
The Day of Caring is coordinated and executed at the local level (i.e. site- or operating company-level) by the site/
operating company Champion. The Champions are responsible for communication, coordination, and recording
participation in the event(s) planned by the site/operating company. Participation and impacts are reported to theoperating company President and to the Corporate Communications and Corporate Sustainability Teams for data
aggregation and all-employee communications.

Accelerating Progress Toward a Sustainable Future | Appendix

76

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management
Approach 2016

103-3

Evaluation of the management approach

In 2021, the Foundation Management team proposed an Annual Plan model, to be executed on a quarterly basis.
This method is being deployed in 2022. An annual review of the management approach will be conducted as partof the annual planning process.
On an annual basis, the Corporate Communications and Corporate Sustainability teams conduct a Day of Caring
launch meeting to kick off planning. Before and after the Day of Caring season, the teams and the site/operatingcompany Champions evaluate the program for effectiveness and impact. Any changes to the program arecommunicated at the Day of Caring launch meeting conducted with the site/operating company Champions.

GRI 413: Local
Communities

413-1

GRI 103: Management
Approach 2016

103-1

GRI 103: Management Approach 2016

103-2

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

The Fortive Foundation

Explanation of the material topic and its Boundary

Responsible Supply Chain and Procurement

100% of our operating companies participate in local community engagement through the Fortive Day of Caring.

Human Rights
The management approach and its components

Responsible Supply Chain and Procurement
Human Rights
The Fortive Supplier Code
Fortive Conflict Minerals Report
To fully integrate responsible sourcing as a focus topic in our leadership, we hired a Senior Director to lead ourSupplier Diversity program. We further strengthened this program by drafting robust governing policies, setting
ambitious goals, and working closely with leaders at our operating companies to fully understand, articulate, andmeasure its value.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approachTo evaluate the effectiveness of our supply chain and sourcing programs, we analyze cost, compliance, andcoverage measures associated with each function to ensure that baseline performance within the business has
been established along with targets to improve results year over year. Measures of performance are comparablewith industry peers and we benchmark our progress with peers within and across 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.

Accelerating Progress Toward a Sustainable Future | Appendix

77

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its Boundary

Digital Privacy and Security

GRI 103: Management Approach 2016

103-2

The management approach and its components

Digital Privacy and Security
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 technicalcontrols to implement those policies. Some operating companies have their own Chief Security Officers, butthere 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.
Our digital security program includes a combination of procedural elements, policy aspects, and technicalcontrols. We have a vulnerabilities management program and regularly invest in industry leading technical controls,
such as network perimeter security 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 andresponsibilities 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, anddocument security risks and manage exceptions to the policy.
Our incident response is a combination of directly managed resources, matrix resources across the operatingcompanies, 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 sothat users around the world are presented with a cookie banner and consent mechanism that delivers correct andcompliant cookies for their web session based on the laws and regulations of the jurisdiction from which they are
visiting our web pages.

GRI 103: Management Approach 2016

103-3

Evaluation of the management approach

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 withboth operating company leaders in IT and segment leaders. A macro level view of these data are presented at theexecutive 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 assessmentof our cybersecurity process. We also use a service for external assessment with BitSight to identify issues at theoperating company level. This number is reported to the audit committee.

GRI 418: Customer
Privacy 2016

418-1

Substantiated complaints concerning breachesof customer privacy and losses of customer data

Omission: Complaints received from outside parties and substantiated by the organization are omitted. Reason foromission: information unavailable. We are reviewing our internal processes to more clearly capture this data andwill include in next year’s report.

Accelerating Progress Toward a Sustainable Future | Appendix

78

GRI Standard

Disclosure

Description

Location or Direct Answer

GRI 103: Management Approach 2016

GRI 103: Management
Approach 2016

103-1

Explanation of the material topic and its BoundaryBusiness Resilience

GRI 103: Management Approach 2016

103-2

The management approach and its components

Our Enterprise Risk Management (ERM) process uses both a bottom-up and top-down approach. ERM is a collective
and collaborative process owned by each operating company. The operating companies collect and analyze risks
from both probability and magnitude perspectives. All risks have a listed countermeasure(s) and are constantly
actioned. These risks are entered into individual risk matrix profiles, which are reviewed by SVPs. These results arereported to senior management and the risk committee, and distilled into a Board report. The risks identified by theoperating companies are supplemented by strategic thinking led by the Board and senior management.
In 2021, we increased focus on our supply chains to increase resiliency. As a product manufacturing business, werely on the stability and resiliency of our suppliers throughout the value chain. Our operating companies apply FBS
to optimize their supply chains and to respond well to disruptions. They also position themselves for the futureby anticipating the disruptions, reviewing supplier and operating company readiness and implementing Risk
Management plans tailored to a specific supplier.
In 2021, we added human capital management, strategy, and corporate culture to our priority risks andopportunities. We have seen this topic become an increasingly important issue to stakeholders and as such
Fortive’s compensation committee is responsible for managing this risk. The committee keeps ahead of this risk
through performing deep dive studies on diversity, equity, and inclusion to progress our company’s culture to
advocate for inclusion and diversity. We report progress in this area to the Board on a routine basis.
Fortive’s strategy in regard to ESG continues to be of utmost importance. Our strategy and associated progressis routinely reviewed with the Board as they maintain oversight with respect to reporting and disclosure. The
topic is woven into different facets of the business, including monitoring and assessing it during the mergers
and acquisitions due diligence process. We are already seeing the effects of climate change on our business andfacilities, including wildfires and hurricanes, which will only increase in likelihood in the future. And while numerous
risks lie in this area, we also see the immense amount of opportunities. Our products and service offerings will help
customers improve energy efficiency and deal with the expected and unexpected outcomes of climate change.

GRI 103: Management Approach 2016

103-3

Accelerating Progress Toward a Sustainable Future | Appendix

Evaluation of the management approach

A formal review of the ERM process occurs annually. Additionally, we regularly evaluate and assess the health of thebusiness to determine how best to maintain business continuity.

79GENERAL
CORRESPONDENCE
If you would like to contact amember of Fortive’s Sustainability
team, you may do so by email
or mail:
Fortive Corporation
6920 Seaway BoulevardEverett, Washington 98203
Email: sustainability@fortive.com
www.fortive.com

INVESTOR CONTACTS
Postal correspondence
should be sent to:Computershare
P.O. 505000
Louisville, KY 40233
Overnight correspondence
should be sent to:Computershare
462 South 4th Street, Suite 1600
Louisville, KY 40202

FORTIVE INVESTORRELATIONS
If you would like to contact amember of Fortive’s Investor
Relations team, you may do soby email, telephone, or mail:Fortive Investor Relations
6920 Seaway BoulevardEverett, Washington 98203
Email: investors@fortive.com
Tel: (425) 446-5000