Forward, Together 2019 Corporate Social Responsibility - Agilent
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Forward, Together 2019 Corporate Social Responsibility
Letter from the President
Once again, I am proud that our team delivered a At Agilent, we have always believed in the power
year of growth and success in spite of significant of collaboration – working together to innovate
challenges. Our strong business model and and achieve the best results. We’ve also learned
outstanding team allowed us to shift, redirect that when we transfer this approach to working
and successfully address unexpected market externally – joining forces with customers,
changes, including the onset of the COVID-19 suppliers, educational institutions, nonprofits,
virus at the end of 2019. even similar businesses – our learnings and
All totaled, we delivered award-winning products, results are greater than ever.
process improvements and service innovations; Let’s remember these lessons as we consider the
invested over $5 million in infrastructure massive sustainability issues our world is facing.
improvements to further reduce environmental As individuals and as businesses, we must choose
impact; acquired two new companies; launched wisely. Together, we are powerful.
three international research hubs; added three
Please join with us as we seek a safer and
new solar installations, providing clean and
more sustainable world.
renewable sources of energy; achieved sound
growth and earned awards and recognition,
including the highly respected number 1 rank
in Barron’s 100 Most Sustainable Companies.
Working together as One Agilent, we are fulfilling Mike McMullen
our mission: to deliver trusted answers and President and Chief Executive Officer
insights that advance the quality of life. Agilent Technologies, Inc.
But as 2020* unfolded, we saw COVID-19
* As expected, this report will highlight our social responsibility work in 2019.
grow into a pandemic. We were all reminded Due to the onset of the COVID-19 pandemic, our reporting was delayed and
that everything in our lives – our families, our therefore, we also address relevant activities in the first half of 2020.
jobs, our businesses, our food supply, our health
care – can literally change overnight. The
challenges we have all faced have often seemed
insurmountable. However, by working together
we know we can achieve the impossible.
2 3
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is a global leader in life
sciences, diagnostics and applied chemical markets, delivering
insight and innovation toward improving the quality of life. Agilent
instruments, software, services, solutions and people provide
trusted answers to customers’ most challenging questions.
Whether we are working with our customers to keep food
supplies safe, improve the quality of air, water and soil, or fight
change cancer with more precise diagnoses and targeted treatments,
picture Agilent employees share a passion and commitment to
advancing the quality of life.
For the fiscal year ended October 31, 2019, Agilent business units include the Life Sciences and
Applied Markets Group, the Diagnostics and Genomics Group and the Agilent CrossLab Group.
• Life Sciences and Applied Markets provides application-focused solutions that include
instruments and software that enable customers to identify, quantify and analyze the physical
and biological properties of substances and products, as well as enable customers in the clinical
and life sciences research areas to interrogate samples at the molecular and cellular level.
• Diagnostics and Genomics is composed of six areas providing active pharmaceutical
ingredients (APIs) for oligo-based therapeutics as well as solutions that include reagents,
instruments, software and consumables which enable customers in the clinical and life sciences
research areas to interrogate samples at the cellular and molecular level.
• Agilent CrossLab spans the entire lab with its extensive consumables and services portfolio,
which is designed to improve customer outcomes.
In addition, we provide centralized order fulfillment and supply chain operations resources
for manufacturing, engineering and strategic sourcing to our respective businesses. The order
fulfillment and supply chain organization (OFS), together with Agilent Technologies Research
Laboratories, is supported by our global infrastructure organization, which provides shared
services in the areas of finance, information technology, legal, certain procurement services,
workplace services and human resources.
4 5
Forward, Together
Our Mission
Our One Agilent Culture
To deliver trusted answers Life Science Tools
Gas and Liquid Chromatography
and insights that advance Mass Spectrometry
the quality of life. Atomic and Molecular Spectroscopy We are a community
Cell Analysis
We are inclusive as we lead, win and grow as one company.
Laboratory Management Software
We are diverse, passionate and driven to provide trusted answers.
Our Promise
$2.3B
We embrace flexibility to balance work demand with personal life.
To deliver trusted answers to
our customers’ critical questions
and challenges – helping them We work collaboratively
achieve superior outcomes Agilent CrossLab We focus intensely on our customers to deliver differentiated outcomes.
in their laboratories, clinics, CrossLab Services
We lead in innovation and simplify continuously in all we do.
Chemistries and Consumables
organizations and the world Lab Enterprise Services We act like owners with positive urgency.
they seek to improve.
$1.8B
We develop continuously
Our Core Values We openly recognize and learn from our wins and mistakes.
• Innovation and contribution We welcome feedback and adapt, always developing ourselves and others.
Diagnostics & Genomics
• Trust, respect and teamwork Genomics Solutions
We celebrate our achievements and share in the company’s success.
• Uncompromising integrity Cancer Diagnostics
Therapeutic Oligonucleotides
• Speed
• Focus $1.0B For more information, please see the 2019 Proxy Statement and Form 10-k.
• Accountability
6 7
Forward, Together
Sustainability Specific Agilent Actions
statement
Our Sustainability Guiding Principles
• Develop products designed to enhance the
sustainability initiatives of our customers.
We strive to consistently improve our • Partner with our suppliers to operate sustainably
and drive full transparency from vendors regarding
sustainability in our operations, and sustainable products and services.
also through our innovative products
and technologies that address complex
• Continue to provide the most healthful and safe
• Create employee work environments
workspaces possible through sustainable renovations,
issues in a sustainable way. operations and certifications. that are safe, healthful and conducive
Our mission is to provide trusted answers and insights
• Implement sustainability opportunities, identify metrics to collaboration and innovation.
and track progress throughout our operations and
that advance the quality of life, and we believe that
sustainability is an important part of meeting that
supply chain; ensure compliance through a combination
• Enable our customers to operate
of self and third-party audits and certifications.
mission. We are committed to being a good corporate more sustainably and address world
citizen, to acting responsibly in pursuit of our goals. • Continue to encourage and develop diversity and
That means we must operate in a sustainable manner inclusion in our workforce, investing in programs that challenges through the use of our
and help others do the same. advance these principles. products and services.
This is nothing new for us. All of our actions are • Encourage employees to share their knowledge and
based on our long-standing values and achieved with talents in building sustainable communities by providing
• Reduce environmental impact of our
uncompromising integrity. Our culture has always paid volunteer time off, matching their charitable
included respect for the contributions of every employee contributions and encouraging science education operations through resource conservation,
in our global workforce. We support the communities through a variety of Agilent science programs. reducing our carbon footprint and waste.
in which we live and work and encourage employees • Report on our sustainability practices and progress to
to share their time and talents to help others. employees, investors and customers on a regular basis. • Drive consistent, responsible profit.
• Embrace diversity and inclusion in all
aspects of our business.
• Be an economic, intellectual and
sustainable leader in communities
and countries where we operate.
8 9
Forward, Together
Agilent Enterprise In addition, we use tools such as the “General Specification
for the Environment” and our “Design for the Environment Supply Chain
Risk Management
Guidelines” to help minimize the environmental impacts of
product packaging. Agilent’s supply chain organizations are
chartered to provide optimal value-added
The Agilent Enterprise Risk Management (ERM) program Materials declaration requirements sourcing and procurement services that are:
provides a framework for identifying material risks across At Agilent, we require hazardous and restricted material
the company, determining ownership of the risk and composition data for purchased materials used in our
supporting the creation and maintenance of our business products, including parts procured on Agilent’s behalf by
continuity plan. It ensures adequate plans across key
Legal, accountable and auditable
third parties, such as contract manufacturers, distributors
business flows, appropriate testing/drills and the and third-party logistics suppliers.
Ethically, environmentally and
availability of a central repository for documentation.
To meet the various requirements of our customers
socially responsible
and product chemical content restrictions imposed by
Quality Management System (QMS) numerous country laws and regulations, Agilent must
Economically effective
QMS is built upon a quality policy aligned with our customer maintain material composition data on hazardous
expectations: Agilent earns customer loyalty by providing substances. Our company requests data about regulated ISO compliant
trusted answers through continuous improvement of hazardous substance content of materials in order to
products, services, and interactions of the highest quality trade in legal compliance worldwide – we do not ask
and greatest value. suppliers about other, non-regulated substances.
Our Order Fulfillment and Supply Chain Organization (OFS)
Agilent’s General Specification for the Environment
To achieve this result, we will: centralizes all order fulfillment and supply chain operations
(GSE) consolidates all material restrictions into one
in our businesses. They provide resources for manufacturing,
• Ensure that all of our products comply with applicable document, which covers environmental laws in the
engineering and strategic sourcing to our respective businesses.
safety and regulatory requirements. Americas, Asia-Pacific and Europe.
Each of our businesses, together with OFS, is supported by
• Ensure our products meet or exceed their published our global infra-structure organization, which provides shared
specifications. Information security approach services in the areas of finance, information technology, legal,
• Maintain and continually improve the effectiveness The Agilent security program is based on industry workplace services and human resources.
of our product and service business management standards including ISO 27002 Code of Practice, NIST Agilent has been streamlining and improving its supply chain
systems to conform at a minimum to ISO9001 Quality and the COBIT 5 Framework. Our policies, standards and and manufacturing for the past several years. Among the
Management Standard or more stringent or legally operating procedures provide a comprehensive approach company’s innovations:
required standards as dictated by specific markets. to maintaining the confidentiality, integrity and availability
• Four Centers of Excellence around the world focus on
• Continually monitor and improve customers’ total of the data and systems in our environment. Security is a
manufacturing, bioreagents, chemicals and logistics.
experience. company-wide priority and we continuously invest in our
people, processes and tools to strengthen our security • An online OFS Academy helps employees understand
• Establish quality requirements for suppliers, partners their role in the overall supply chain and align toward
posture to protect data for both Agilent and our customers.
and contractors and hold them accountable to comply. common goals. The Academy recently added a School
To support our company-wide approach, we have a
• Treat customers in accordance with Agilent’s Standards of Digital Innovation.
dedicated IT Information Security and Risk Management
of Business Conduct and Privacy policies. • The OFS Future Lab enables employees to contribute
(ISRM) department that is accountable for the following
key areas: suggestions and ideas related to emerging megatrends,
Product environmental management such as artificial intelligence.
Policy, Standards and Operating Procedures
Agilent aims to minimize the environmental impact of To address potential disruption in our supply chain, we use a
our products and their packaging. We are committed • IT Compliance number of techniques, including qualifying multiple sources of
to conforming with applicable regulations related to the • Security Operations supply and redesign of products for alternative components.
Restricted Substances in Products. When a customer In addition, while we generally attempt to keep our inventory
• Risk Management
decides their business no longer needs a product, Agilent at minimal levels, we do purchase incremental inventory as
will take it back for reuse or ensure it is properly recycled. • Threat and Vulnerability Management circumstances warrant to protect the supply chain.
• Security Awareness
10 11
Forward, Together
Committed to the Materiality Assessment:
Our commitment to the future
UN Sustainable At Agilent, we believe that we have a responsibility beyond
making a profit; we are committed to advancing the quality
Development Goals of life. Therefore, we must think long-term and consider the
needs of others as we make decisions.
It’s important to pause and analyze our situation – to
At Agilent, we have a long-standing history of commitment
understand the types of issues our business could
to sustainability. Last year, we declared alignment with
generate. We must analyze these potential influences in
the 17 United Nations Sustainable Development Goals
advance of any problems and determine which could have
(UN SDGs), which were launched in 2015, creating a
the most impact on our environment, communities and
blueprint for a better and more sustainable future for all.
business. When we understand the importance of these
Agilent’s work touches nearly all the UN SDGs, with specific
issues, we can better determine business priorities and
contributions to those shown on this page.
strengthen our positive impact on society.
Watch for these icons throughout this publication,
That’s why, in 2018, we laid the groundwork to begin
indicating how our work is contributing to specific goals.
our Materiality Assessment, completing the process in
2019. These results will continue to inform our evolving
sustainability strategy and our business planning until
our next Materiality Assessment in 2021. The chart below
illustrates the many ways Agilent impacts our environment,
our society and our economy.
The materiality matrix displays the 19 social, environmental
and governance issues that matter most to our stake-
holders and upon which we believe our business can
have the most impact. Agilent will continue to periodically
conduct assessments in the future to better inform our
business decisions.
Materiality Matrix
Ethical business conduct
Climate change & energy
Innovation
Product safety & quality
Market presence & pricing
High
Customer satisfaction
Community & giving Governance & leadership
IMPORTANCE TO Labour practices
Economic performance Talent attraction & retention
STAKEHOLDERS Occupational health & safety
Supply chain sustainability Sustainable products
Water & effluents
Waste management & solutions
Moderate
Chemicals &
Air quality & other emissions hazardous materials
Diversity & inclusion
Moderate High
SIGNIFICANCE OF IMPACTS
12 KEY People Business integrity & prosperity Planet All themes 13
Forward, Together
Key policies Stakeholder
Supplier Code of Conduct policy engagement Employees
Our Supplier Code of Conduct policy states that we will not • CEO all-managers meetings provide business
establish or maintain a business relationship with a supplier if we updates with Q&A each quarter.
believe that its practices violate local laws or basic international
Agilent engages with a wide range of
• Agilent conducts an annual Leadership Survey
principles relating to human rights, anti-corruption, bribery, labor stakeholders on issues that affect the that allows employees to provide feedback
standards or environmental protection. We expect our suppliers company’s operations. During business on leadership effectiveness.
– and their suppliers – to adhere to environmental and social
planning, Agilent considers external • Every employee has regular performance reviews
responsibility principles that are similar to those valued in Agilent.
charters, principles and guidelines. and discussions with immediate supervisors.
• Employee Coffee Talks are held to share business
Conflict Minerals policy We also participate in industry and trade groups at local,
updates and country-specific information and
regional, state, national and international levels to address
Agilent supports the goal of ending violence, human rights answer employee questions.
emerging issues; develop industry-wide approaches to
violations and environmental devastation in the Covered • Agilent holds an annual gathering of senior leaders.
environmental and social challenges; and cooperate with
Countries. We are committed to complying with all requirements
governments, non-governmental organizations and other
applicable to our company under the Conflict Minerals Rule. We
stakeholders on common concerns. Investors
are also committed to sourcing components and materials from
organizations that share our values around human rights, ethics Agilent meets all applicable laws, regulations and • Each quarter, Agilent conducts a financial results
and environmental responsibility. standards where we do business. Agilent engages conference call that presents analysts and investors
with our stakeholders through consultation, surveys, with an opportunity to ask questions and share
ad-hoc feedback and reviews: concerns with the CEO and CFO.
Quality policy
• At Agilent’s annual shareholder meeting, all attendees
We earn customer loyalty by providing products and services of
Customers are presented with the opportunity to ask questions of
the highest quality and greatest value.
our CEO, executive staff members and members of the
• When customers engage with Agilent in any manner,
Board of Directors.
including face to face, on the phone or digitally, Agilent’s
Political activities goal, across all key touchpoints, is to ensure that they • If analysts and institutional investors are unable to
Agilent may contribute to dialogue and decision-making on public have a delightful experience that delivers on Agilent meet directly with our CEO, CFO or Treasurer, then
policies affecting the company, our employees and operations. Trusted Answers, our brand promise. they can rely on regular contact with our Investor
Relations department.
• Over the past year we have made significant
improvements to the customer experience:
Anti-Corruption policy
• Introduced an automatic notification system
Suppliers
One of Agilent’s most important company assets is our
that confirms when a product is ordered and • Agilent’s relationships with suppliers are of great
reputation for ethical behavior, honesty and fair dealing.
shipped, and utilizes a real-time tracker for delivery strategic importance.
Agilent’s anti-corruption policy incorporates the common
information. • Agilent generates strong results from carefully
elements of anti-corruption laws and regulations worldwide
that apply to Agilent’s business. • Provided easier and more complete access to choosing the correct suppliers, and then working
site preparation guidance for customers closely with them in specific areas to improve
Agilent’s policies and practices are consistent with many
purchasing instruments. quality and productivity.
internationally accepted charters and principles. For more
information, please see p. 24. • Faster delivery time and online purchase options • The basic strategy for establishing these good working
for consumables to improve customer purchase relationships is through the establishment of mutual
and delivery experience. performance expectations and measures. Agilent also
• Reduced the time it takes to schedule service. expects its suppliers to adhere to the quality, product
regulatory, social responsibility and environmental
principles that are core to our company.
Related UN Sustainable Development Goals
14 15
6 9 12 13 15
Forward, Together
Sustainability highlights
$5 Million Globally 5 existing on-site solar photovoltaic
invested in systems amounted to a net offset of
sustainability
initiatives in 2019
623 CO2 emissions
11%
Solar photovoltaic generation has offset reduction in
annual Greenhouse Gas Emissions by nearly site carbon
footprint
3000 MT since FY15 since FY14
GOAL 1 GOAL 2
1% energy reduction each year 95% solid waste diversion
Analytica
My Green Lab
5% by 2019 from landfill by end of 2020
Agilent is earning the highly
conference respected Accountability,
Consistency and Transparency
10% by 2024
ON TARGET
First planned carbon neutral event for kWh/sq. ft. 85% of solid waste diversion
(ACT) label on products BELOW TARGET
which was 3.2% from landfill
ON TARGET with 18% reduction 94% of total waste generated
in kWh/headcount in 2019 globally diverted from landfill
GOAL 3 GOAL 4
2% water reduction per year 1% CO2e reduction per year
10% reduction by 2019 5% reduction by 2019
20% by 2024 10% by 2024
BELOW TARGET for m3/sq. ft. ABOVE TARGET
which was 4% with 17% reduction by sq. ft.
ON TARGET with 19% reduction and 30% reduction by
by headcount in 2019 headcount in 2019
Related UN Sustainable Development Goals
16 17
8 9 10
Forward, Together
16,300* employees
serving customers
Business highlights in 110 countries
R&D and/or
Manufacturing sites
2019 Revenue Over Approximately USA (California, Colorado,
Delaware, Massachusetts,
$5.16 Billion $7.5 million 8% of revenue Texas), Australia, Belgium,
China, Denmark, Germany,
5% reported revenue donated to universities, invested in Research & Italy, Japan, Malaysia,
Netherlands, Singapore
growth and 5% increase hospitals, research and Development every year and the United Kingdom
in core revenue charitable organizations Logistics Centers
China, Denmark, Germany,
Earnings per share
of $3.37, up 247% 3,000+ 600+ India, Italy, Japan, Malaysia,
Singapore and the U.S., plus Headquarters
year over year Active published additional regional hubs. Santa Clara, CA
issued patents
worldwide patent applications *approximately
2019
86% 87%
Acquired two companies: BioTek Instruments, Inc. and ACEA Biosciences, Inc.
Leadership
Survey Product innovation highlights
of employees would of employees intend
recommend Agilent as to stay at Agilent
a great place to work
Magnis
38.6% 32.6
of full-time employees average hours of
are female employee training
per employee
LC/Mass Spec 8890 Gas Chromatograph
Detector iQ
Agilent CrossLab Smart Alerts
Related UN Sustainable Development Goal
18 19
9Forward, Together
Recognition and Awards
Barron's Management Best Employers Employer 93% CEO
Most Sustainable Top 250 for Diversity Excellence Award Approval Rating
Company
Wall Street Journal Forbes Malaysia Employee Federation 4.0 rating, Glassdoor
#1 in 2019
#3 in 2018
Just 100 List Best Employers Best Family Friendly Learning!
for New Grads Management 100 Award
Industry Leader Forbes
for Life Sciences Forbes Korea Minister of Gender eLearning Magazine
Tools and Services Equity & Family
AAA Rating
Dow Jones Best Mid-Size Talent Payback
Sustainability Rankings MSCI ESG Employers Healthiest of the Year Award
by RobecoSAM Workplaces
Forbes SCM World,
World’s Best AIA Malaysia A Gartner Company
EcoVadis Employers
Best Workplaces
Gold rating for Forbes Cycle Friendly Best in Class
sustainability performance, China, Germany, Singapore, Employer Contact Center
three consecutive years Spain, GPTW Institute
America’s Best Denmark Training & Development
Employers Program, Customer
Best Corporate for Women Best Workplaces Contact Week Awards
Citizens for Women 90th Percentile
Forbes
Corporate Responsibility Greater China, Employee Engagement,
Magazine GPTW Institute Perceptyx
20 21Forward, Together
Our markets
Agilent serves customers in 110 countries, focusing on six key markets Diagnostics Chemical and energy
where we help our customers achieve their goals. These markets Agilent gives doctors a head start in the fight against The natural gas and petroleum refining markets use
cancer and other diseases. Our solutions help pathology Agilent products to measure and control the quality of
provide a
n estimated $52B opportunity, growing 3-5% annually.
laboratories deliver fast, accurate information to the their finished products and to verify the environmental
doctors, hospitals and medical centers they serve. safety of their operations. Petroleum refiners use our
We help medical professionals make more accurate measurement solutions to analyze crude oil composition,
diagnoses so patients can receive the most perform raw material analysis, verify and improve refining
Pharma Chemical & Energy Clinical & Diagnostics effective therapies. processes and ensure the overall quality of gasoline, fuels,
$16B TAM* $4B TAM* $11B TAM*
Environmental and forensics
lubricants and other products. Our solutions are used in
the development, manufacturing and quality control of
#2 #1 #2-3
Market Market Market fine chemicals and other industrial applications such as
Position Position Position From pesticides to pharmaceutical residues to trace materials analysis. Agilent also helps energy researchers
metals, we provide fast, accurate and sensitive methods investigate biofuels, renewable fuels and other forms of
for monitoring contaminants affecting the quality of alternative energy.
life. Agilent solutions also play an important role in law
enforcement by providing robust tools and instruments
Academic & Government Food Environmental & Forensics
to analyze and verify evidence at trial. Research
$11B TAM* $5B TAM* $5B TAM*
Most life sciences and diagnostics research is done
at top-tier universities, with funding from governments
Food
#2
Market
Position
Market
Position #2 Market
Position #1 Agilent helps ensure our global food supply is free
around the world. Agilent is helping these researchers learn
more about cancer, cardiovascular diseases, diabetes,
of contaminants, whether chemical, viral, bacterial or Alzheimer’s, Parkinson’s, autism and other conditions. Our
microbiological. Our customers include government instruments, software and sample preparation solutions
*TAM = Total Available Market. Market size per 2019 Company estimates.
regulators and labs that control food safety, as well as help scientists conduct faster, more accurate research.
private companies that produce, package and sell
food to the public.
Pharmaceutical
Agilent has one of the broadest solutions
portfolios of any company serving the
pharmaceutical industry. Our solutions
provide precise answers for every segment
of the pharmaceutical industry, from
disease research and drug discovery to
drug development, manufacturing and
quality control. The start-to-finish solution
set means customers can get products to
market faster. Customers trust us to help
them test the purity of their therapeutics,
and Agilent also ensures that their
instruments and processes conform to
the highest compliance.
22 23Forward, Together
Good governance • Agilent managers are responsible for promoting
awareness of and enforcing compliance with the policy
identify errors and potential fraud. Tests are performed
periodically throughout the year, ensuring that all
complementary mergers and acquisitions to augment
our core growth, geographic penetration in high-growth
among their reports at all levels and must not actively transactions in an identified population are reviewed markets, and digital innovation to transform the way
or passively authorize or ignore corrupt activities in during the year. we work inside and outside the company.
Agilent is led by a chief executive officer
their organization. • Agilent runs multiple tests on data including purchase • Agilent invests approximately 8% of its annual
and overseen by a board of directors.
• Employees who violate the policy will be subject to orders, payables, vendor data, customer data, sales revenue in R&D, and over the next three years,
The current four committees of the disciplinary action, which may include termination orders, expense reports, site access, etc. we expect to invest more than $1 billion.
board are: of employment. No employee will suffer adverse • Agilent policy forbids anti-competitive behavior, antitrust, • In fiscal 2019 we continued our tradition of introducing
consequences for refusing to offer or make a corrupt and monopoly practices and in the current reporting highly differentiated solutions to help our customers
payment even if it may result in the loss of business. period, there was no legal action for antitrust and anti- advance their work. Our innovation also extends to
Audit and Finance
• During the reporting period, 100 percent of all Agilent competitive behavior. how we meet our business goals.
business units were analyzed for risks related to
Compensation • More than 50% of our Agilent CrossLab Group
corruption and 100 percent of management and Interactions with competitors consumables orders are digital. E-commerce
non-management employees in all locations were
Executive • Never agree with a competitor or potential competitor initiatives are making it easier for customers to
required to receive anti-corruption training. do business with Agilent.
(including our own channel partners) to set the terms
Nominating / Corporate Governance • Agilent has a formal process for investigating and on which Agilent and its competitor will compete, or • We are also investing in the digital lab of the future.
resolving allegations of corruption should they occur. whether or not they will compete. Even the appearance Informatics is a strategic differentiator for Agilent.
of an agreement may be unlawful. We are bringing to market technologies that help
The board selects the chief executive officer in accordance Agilent complies with: our customers leverage their data for even more
• Never discuss or exchange pricing information with any
with the company’s bylaws and other applicable policies. insights and discoveries.
• The laws and regulations of each country where competitor or potential competitor.
Information on Agilent’s governance structure can be
Agilent conducts business. • Never allocate customers or bids between Agilent and • Our mergers and acquisitions strategy complements
found on our Investor Relations website.
• The laws and regulations of the United States, another company, or agree that Agilent or its competitor organic growth by bringing new capabilities and unique
Agilent has 11 board members, 10 of whom are offerings to the company. Our One Agilent approach to
including the Foreign Corrupt Practices Act. will provide complementary bids to give the appearance
independent directors. Agilent has adopted the standards integration fully leverages our scale to drive revenue
• Other international anti-corruption laws and of actual competition.
for director independence in compliance with the NYSE’s and create cost synergies.
corporate governance listing standards. See details here. regulations, including the U.K. Bribery Act of 2010 • To work to better understand the rules governing
and the OECD Anti-Bribery Convention, to which interactions with competitors. • In 2019, Agilent acquired 100 percent of the stock
38 countries are signatories. of ACEA Biosciences Inc. (ACEA), a developer of
Anti-corruption cell analysis tools, for $250 million.
• Agilent’s policies and procedures. Economic performance
Agilent does business directly or indirectly in over • In addition, we completed the acquisition of
• Agilent’s Standards of Business Conduct. privately-owned Lionheart Technologies LLC
110 countries around the globe, each of which has its • Our One Agilent cultural transformation promotes
own unique laws, customs and business practices. greater collaboration across the company and has (BioTek), a leader in the design, manufacture and
Agilent requires its employees and business partners in all Anti-competitive behavior made it easier for customers to do business with us. distribution of innovative life science instrumentation,
geographies to conduct their affairs with uncompromising for $1.17 billion. The financial results of these
• Agilent understands that commitment to ensuring • Our Agile Agilent business system and
integrity and will not tolerate corrupt activities of any kind. businesses have been included in our financial
compliance to these laws is salient to participating in associated initiatives are driving continual
results from the date of the close.
Agilent maintains a written policy against corruption that the global marketplace. operational improvements.
prohibits promising, offering or giving to, or receiving from, • Revamped research and development programs and
• Agilent is committed to competing vigorously and fairly Defined benefit plan obligations and other
any individual anything of value or personal benefit with execution of our mergers and acquisitions strategy
in all markets in which we do business. We place the retirement plans
the expectation of receiving a favor, a grant of business, or are building an even stronger portfolio, focused on
highest importance on maintaining compliance with
any other business advantage in return. Such actions are customer-centric products and solutions. Percentage of salary contributed by employee and
competition laws globally.
sometimes referred to as bribes, kickbacks or improper employer vary by country. Separate funds exist in some
• Evaluation is completed by the continuous Audit • Agilent serves large, attractive markets where growth is
quid pro quos. countries to pay the plan’s pension liabilities. For details of
team which uses audit software, IDEA and Tableau, to fueled by investments to improve the human condition.
• Agilent’s anti-corruption policy incorporates the Agilent’s material plans, please see the Agilent Form 10-K.
conduct semi-automated analysis of large populations • Agilent is focused on four key growth drivers to continue
common elements of anti-corruption laws and
of Agilent data in order to control deviations, and our momentum: innovation from our R&D engine,
regulations worldwide that apply to Agilent’s business.
Related UN Sustainable Development Goal
24 25
8Forward, Together
Indirect economic impacts Energy Other sustainability-driven projects include the substitution of some of Agilent’s
uction
• Our products are found in leading research and teaching Agilent has identified energy use as one of its significant
vacuum pumps with a new dry scroll pump range that does not use any oil, ed
r
eliminating oil consumption and waste.
20 %
laboratories. Our global connection to academia also and material environmental impacts.
includes educational support, recruitment of top
ye a r s
• Approximately 80% of Agilent’s site energy footprint
university talent and philanthropy. is reported from the sites that are included in its Water
10
• Through our Thought Leader Program, Agilent supports annual analysis of energy use and carbon emissions. Water use has been identified as one of Agilent’s globally xt
ove r t h e n e
scientific advancements by leading researchers around • Agilent has invested in over 5 Megawatts of solar significant environmental aspects. The company has established
the world. We also contribute through financial support photovoltaic (PV) power and new energy fuel a target of 20% reduction in normalized municipal water
and providing products and expertise for research in the server technology. consumption over the next 10 years from an FY14 baseline.
• YTD global total (municipal
life sciences, diagnostics and applied chemical markets.
• Energy consumed in FY 2019 was approximately consumption): -4% normalized
146,000 MWh (525,000 GJ). Water withdrawal by source by operational sq.ft against the
Our environment FY14 baseline:
Agilent integrates climate change into its business Reductions in energy requirements of Water withdrawal 1000 m3 2019 2018 2017 • By Region: AP: +2%;
strategy in several ways. products and services EU: -5%; US: -3%
Ground water 136 157 173
• First, Agilent has an active sustainability program
Agilent is working on improving the energy efficiency of • YTD global total (municipal
in which our ISO14001 environmental management Municipal water supplies or other
selected products/product families including instruments consumption): -13% normalized
system is engaged to drive operations to monitor 347 341 311
with high energy consumption. Associated benefits for this water utilities by site headcount against the
and reduce our environmental impacts from energy
sustainability focus include reductions in carbon footprint, FY14 baseline:
consumption and the associated CO2 emissions. Total water withdrawal (volume) 483 498 484
water use, waste and chemicals.
• By Region: AP: -18%;
• Secondly, Agilent recognizes that having a reputation For example, our new Agilent Intuvo 9000 Gas Normalized withdrawal (m3/site sq ft) 0.137 0.141 0.145 EU: -18%; US: -17%
as an environmental leader is a competitive advantage. Chromatography (GC) system made significant energy
This allows Agilent to attract and retain the best and reductions compared to the predecessor instruments, now • Groundwater is extracted from our
brightest employees, obtain and maintain business using nearly half the power of a regular GC. The employed sites in Turin (113,000 m3) and
from other companies who choose suppliers with Manesar (23,000 m3).
direct heating technology is a much faster and more Emission
strong environmental practices, and attract investors efficient way to do GC and can run methods faster, in half
interested in the same. Agilent’s only direct emissions are the arisings from the on-site • Most Agilent sites do not withdraw
the space (footprint), with using less than half the power
combustion of fuel for heating or local electricity generation. water from sources that are
• Supplier selection and procurement decisions are also normally required.
significantly affected by withdrawal.
influenced by climate change considerations. Since This adds to and aligns with our strategy from previous
2004, Agilent has had in place a Supplier Environmental Direct (Scope 1) GHG emissions
years, that most of the energy savings achieved are based
Social Responsibility (ESR) Code of Conduct, which on two key factors:
GHG emissions in metric tons of CO2e 2019 2018 2017
we use to evaluate existing and potential suppliers on
• The increased type and volume of tests that can be
factors including adoption of sound environmental
conducted, thus increasing tests per watt. Gross direct (Scope 1) GHG emissions 9,192 7,518 8,195
practices and conformance with relevant laws,
regulations and international principles. • Enhanced existing product features, thus bringing more
measurement capabilities to the same product footprint.
Direct (Scope 1) GHG emissions by gas (CO2e) 2019 2018 2017
Another great example of Agilent’s sustainable innovation
is the 4210MP optical emission spectrometer that is
CO2 7,693 6,317 6,908
the perfect alternative to the traditional flame Atomic
Absorption Spectroscopy (AAS) technique. This CH4 239 191 205
instrument runs on air instead of combustible gases,
leaving a much lower energy and carbon footprint. N2O 1,260 1,010 1,082
Related UN Sustainable Development Goals
26 27
12 13 15Forward, Together
Energy indirect (Scope 2) GHG emissions Nitrous oxides (NOx), sulfur oxides (Sox) and other significant air emissions
Agilent has been reporting direct NO2 emissions since FY15.
GHG emissions in metric tons of CO2e 2019 2018 2017
Gross location-based indirect (Scope 2) GHG emissions 39,735 54,350 51,291 2019 2018 2017
Total direct (Scope 1) GHG emissions 9,192 7,518 8,195 NOx emissions (MT) 1,260 1,010 1,082
Total (Scope 1) + (Scope 2) GHG emissions 48,927 61,868 59,486 NOx intensity: factored against base figure: MT / Sq.ft. 0.000330 0.000265 0.00030
Other indirect (Scope 3) GHG emissions Effluents and waste
Waste is identified as one of Agilent’s significant Environmental Aspects. In FY19, the overall global waste
GHG emissions in metric tons CO2e 2019 2018 2017
diversion (from landfill) goal was 95% and Agilent narrowly missed this target, diverting 94.1% of all its
wastes from landfill.
Gross other indirect (Scope 3) GHG emissions 169,001 153,589 151,547
Environmental compliance
GHG emissions intensity Agilent operates an Environmental Management System (EMS) and strategic sites operate under a
single company-wide externally endorsed certificate. The EMS provides a structure for identifying and
Scope 1+2 CO2e 2019 2018 2017 mitigating Agilent’s environmental risks. The systematic identification of its significant aspects and impacts,
implementation of controls, measurement of performance, and the setting of improvement objectives
GHG emissions intensity ratio: MT of CO2e per site square footage 0.01283 0.01623 0.01627 ensures that Agilent continues to operate in an environmentally sustainable manner.
A key part of this process is the identification of significant environmental aspects and impacts.
Reduction of GHG emissions Agilent’s Environmental (EHS) Policy outlines a fundamental corporate commitment to reductions in
pollution (emissions) and conservation of resources (energy) and drives operations to meet long-term
2019 2018 2017 environmental sustainability goals.
Total GHG reductions metric tons CO2e 52 5,704 4,490 Non-compliance with environmental laws and regulations
In FY19, Agilent reported zero alleged regulation compliance violations and accordingly there were
Projects commenced in FY19 and due to be operational in early no monetary fines or penalties.
2,141
FY20: Expected CO2e reduction (MT)
Emission of ozone-depleting substances (OOS)
Agilent does not use, produce, import or export Ozone Depleting Substances (ODS)
prohibited under the Montreal Protocol on Substances that Deplete the Ozone Layer.
Agilent uses very small amounts in the formulation of analytical standards which are largely
used as references by analytical labs in the pursuit of their detection in the environment.
Related UN Sustainable Development Goals
28 29
12 13 15Forward, Together
Our products Sustainable practices
At Agilent, we continue to dedicate Sharing insights, partnering with a leadership organization in sustainability
8% of our revenue each year to In the spirit of partnership – working with even more people, groups and businesses to
funding innovations in Research build a sustainable world – Agilent took several steps forward in 2019.
and Development.That consistent • We have added an important new section to our website: How Corporations Can Help Shape a More
commitment continues to deliver Sustainable World. We address the pillars of sustainability, the United Nations Sustainable Development
Goals and more. We are working to help educate all people – customers, businesses and consumers –
innovative new products that
about sustainability and how we can all take steps to begin making a difference.
are making a difference:
• In addition, Agilent has recently become a top-level sponsor of My Green Lab, a nonprofit organization
dedicated to improving sustainability of scientific laboratories. This infographic details the breadth
LC/Mass Spec Detector iQ and depth of the sustainability challenges facing this industry – underscoring the importance of
supporting the work of My Green Lab.
This Single running anywhere in the lab. The Remote Assist feature
Quadrupole mass allows users to immediately send a service request to
detector for Liquid Agilent. All these capabilities are designed to deliver
Chromatography was reduced downtime and sustained instrument performance.
developed specifically
for chemists and
Magnis
chromatographers These values are graded on a scale
who will benefit from This new benchtop instrument provides a complete of 1-10, with 1 indicating the least
the intuitive design system for next-generation sequencing (NGS) library environmental impact and 10 indicating
the highest environmental impact
and greater level of preparation. Fully automated, it self-detects and tunes,
This category is either yes or no
confidence in results and delivers reproducible results, making it easy to assay Detailed scoring explanations
for each category are outlined
that come with multiple genes and complex genetic aberrations from
in the verification guide for
mass detection. It genomic DNA including degraded samples. Magnis each category
can quickly confirm requires minimal NGS expertise to run and enables labs
compounds and to perform complex NGS sample preparations with the These values represent actual daily
press of a button. Silver award for Most Innovative New consumption and apply only to equipment
provide more specificity and selectivity than a
UV detector, even for compounds that are Product in Genomics by Life Science Industry Awards.
chromatographically unresolved. Named Best New The sum total of all values
equals the Environmental
Spectroscopy Product by Analytical Scientist and 8890 Gas Chromatograph A lower number indicates a lower
Impact Factor
The Medicine Maker 2019 Innovation Awards. overall environmental impact
This system delivers fast and accurate results with flexible ACT labels are valid for two
years from the date of issue
configuration capabilities to address specific analysis
Agilent CrossLab Smart Alerts demands. When results are critical and instrument
This software easily installs on any PC in the lab and operation is a must, the 8890 exceeds expectations for
helps increase instrument/lab productivity. No Internet uptime and accuracy, every time. Built-in intelligence
connection is required. It monitors instrument health enables remote connectivity and the autonomous, user- “We hope that our partnership with My Green Lab will encourage more businesses
and provides email-based alerts, notifying users when to initiated system checks system health, alerting users to to commit to this cause. Sustainability must be a priority element in science and
consider replacing key consumables, when to perform potential issues and suggesting solutions. Named Best
Spectroscopy Product by Scientists’ Choice Awards.
the scientific community. I’m proud of Agilent’s leadership in collaborating with
preventive maintenance, and when an instrument stops
My Green Lab and bringing these practices to analytical instrumentation.”
– Darlene Solomon, Chief Technology Officer
Related UN Sustainable Development Goals
30 31
9 12Forward, Together
Sustainable packaging:
Working to close the loop
With millions of products shipped daily in Eberhard Obreiter, Software & DataSystem manufacturing Starting cold and staying cold: not easy
boxes, crates and more, sustainability in engineer, and the Agilent team in Germany are leading the Temperature-controlled shipments are still an industry-wide
packaging is more important than ever. switch from plastic packaging to paper-based packaging issue. We continue to research and test alternatives to
for their software and data system components (such expanded polystyrene (EPS) coolers used in sites that
Taking a team approach as instructional DVDs and thumb drives), eliminating ship products that must be kept at specific temperatures.
To drive more sustainable packaging at Agilent, Nick Valerio, 120,000 plastic boxes shipped each year.
The work for these teams is challenging because there’s
packaging engineer from the New Product Introduction almost always room for improvement.
Team in Santa Clara, California, is leading Agilent‘s Repurposing waste and moving
Incubator for Environmental Sustainability and Global to recyclable materials
Packaging teams. These teams are exploring Incubator teams continue to
and implementing many packaging solutions. conduct experiments with
Like most companies, Agilent uses filler in our packing
One important topic being addressed: the use of bio-based, repurposing lab plastic
process to prevent damage during shipping. Our team
not fossil-based, plastics. The world produces more than waste into 3D printer filaments,
in Penang, Malaysia, has begun replacing plastic-based
400 million tons of plastics every year. Half of that is from which could be used globally
styrofoam peanut-shaped filler with Kraft paper.
plastic packaging and only 9% of it gets recycled, so a at Agilent sites for prototyping.
sustainable solution in this category would be a Filaments that can’t be used
significant improvement. internally would be dedicated to
social enterprises. According to
estimates, the world’s bioscience
labs generate as much as 5.5 million
metric tons of waste annually,
so repurposing lab plastic waste
could truly have a global impact.
“Even when we introduce an
improvement, we continue to
look for better ways. We’re very
The team’s initial efforts
proud of the forward-looking
have saved about 530 lbs.
research and testing that we
in styrofoam peanut usage.
are doing, and we hope to add
more improvements as we learn.
Ultimately, we would love to
Paper is preferred
see all packaging everywhere,
In the coming year, Agilent’s Global Packaging Team
Coming soon: Sustainability info on product labels will evaluate the use and implementation of sustainable from every company, become
This year, Agilent started the process of having our instruments independently audited to
paper-based filler at all of Agilent’s manufacturing and 100% sustainable.”
logistics sites.
achieve the Accountability, Consistency and Transparency (ACT) label. This respected label
– Nick Valerio, packaging engineer from
provides information about the environmental impact of manufacturing, and the use and disposal In the U.S., Agilent eliminated the use of plastic foams in the New Product Introduction Team
of a product and its packaging. This empowers buyers to make better-informed, sustainable over 25% of our packaging in 2019. For the packages that
choices. Samples of Agilent labels can be seen here, with more to come in the near future. still required the use of foam, we implemented the use of
a foam that contains 60% - 100% recycled content.
Related UN Sustainable Development Goals
32 33
9 12 13Forward, Together
Supplier teamwork: observing, Manufacturing team improves
suggesting, improving results for all efficiency, provides jobs for
Agilent is proud to be an active collaborator with
people with disabilities
customers and suppliers. At times, the actual Last year, the manufacturing team for the Biomolecular
help we provide may be as simple as a minor Analysis Division in Waldbronn, Germany was challenged
suggestion, but sometimes those small things to convert an existing assembly line to include a new,
can lead to great results. additional product without adding any production space.
For example, in 2019, we were working with a supplier Line Supervisor Christian Scharf asked his team to gather
whose product packaging shipments were creating all the problems they were facing, asking a simple question:
minor labor and quality issues on our end. What slows you down in your daily work?
The Logistics Inventory Storage (LFS) team in Little Falls, The cross-functional teams started brainstorming and
Delaware noticed that products were packed too loosely, then developed an “Ease and Impact” matrix to simplify the
causing movement during transportation and higher rates problems. As the team started identifying improvements,
of damage. The oversized packaging also required extra it decided to focus on assembling devices and improving
storage space on shelves. processes instead of interrupting its work to prepare one
small but essential part.
Agilent team members discussed the issue with LFS
Procurement, and our buyer noticed that the packaging
also led to excess freight costs. The solution? The team decided to outsource
that task and support an important community
Details make the difference organization at the same time.
Agilent was already working with Lebenshilfe BBA, a
Working with Logistics, the Procurement team inspected
nonprofit organization that provides employment
the original packaging of each item, took dimensional
opportunities for people with disabilities. The new Agilent
and weight measurements, and noted issues in
work was awarded to Lebenshilfe BBA and today, many
the current designs. Then the team reached out to
of its members are proud to be earning paychecks for
the supplier to discuss learnings and team up to
their hard work, preparing small, important parts for
determine potential solutions.
use in one of Agilent’s analytical instruments.
Americas Logistics, Category Management, and
Procurement Engineering collaborated with our supplier
to develop new, more efficient packaging and shipment-
lot quantities for 37 different part numbers.
The supplier happily made the packaging improvements,
which, in the long run, helped their business and saved
Agilent over $100,000.
The best result
After right-sizing packaging and reducing shipping weight,
those products are now more sustainable for all end-users.
The workers of Lebenshilfe BBA, a nonprofit that provides jobs for the disabled,
Related UN Sustainable Development Goals are now assembling small parts for our site in Waldbronn, Germany.
34 35
8 9Forward, Together
Energy outlook: brighter every day Analytica: Agilent plans its first In addition, in September, we
supported the planting of 200 trees
Clean energy clearly has a bright future at Agilent. In 2019, carbon neutral event
we increased our commitment to clean, reusable energy
in the Great Rift Valley as part of The Calculating Agilent’s future
Analytica – considered the world’s leading trade fair for Kenya Reforestation project, which
with the addition of three new solar sites that will provide a carbon footprint at Analytica
laboratory technology, analysis and biotechnology – also helped provide employment for
total carbon offset of 277 metric tons.
presents a massive business opportunity for Agilent. impoverished people. Agilent partnered with Carbon Footprint Ltd., which offers a
• In Middelburg, the Netherlands, a 120-kilowatt solar But with well over 1,000 exhibitors vying for attention, great range of carbon offset projects meeting international
The planning team was thrilled to see
photovoltaic rooftop system was completed in May how would Agilent stand out? standards as well as the Quality Assurance for Carbon
photos of our actual tree planting event,
2019. It is now generating about 108.000 kWh of Offsetting standards.
First, by starting well in advance. Work on this event began complete with workers wearing Agilent
power per year.
in early 2019, when Agilent’s marketing experts decided the t-shirts, and excited to use these Based on data provided by Agilent, Carbon Footprint Ltd.
• The Lexington, Massachusetts, site started on a best approach would be to play to our strengths, as well as images at Analytica. developed an initial estimate of 20.23 tons of carbon dioxide
660-kilowatt solar photovoltaic carport system in to market needs. Our booth theme became “Better Results, that would be emitted by our Analytica participation. To
2019, which was completed in January 2020. This Sustainably Inspired.” ensure that our attendance would be carbon neutral, we
Along came COVID-19
project will reduce annual energy usage by more volunteered to offset 10 times more than that estimate.
But planners decided they wanted to do even more to stand Due to the global onset of
than 32%, while providing covered parking and
out. They couldn’t overlook the fact that while promoting COVID-19, the Analytica conference
stormwater management. The carbon footprint assessment included:
sustainability, their attendance would negatively impact the transitioned to a virtual event and
• A new solar photovoltaic carport for Singapore is environment – especially carbon emissions – by travelling • Site energy consumption (estimated)
rescheduled for October 2020.
one of the largest business-owned solar installations to the event and shipping all the necessary materials. • Hotel stays
in the country. It is expected to reduce our carbon While the team was initially
The team hired Carbon Footprint Ltd. to lead an initiative disappointed, they translated • Car travel to and from events
footprint by approximately 1.5 million tons. Started
that would offset the unavoidable carbon emissions, their plans for an on-site booth
in 2019, the site went live in early 2020. • Air travel to and from events
making Agilent’s participation at Analytica a to a strong virtual presence.
These three new solar installations are in addition to our carbon-neutral event. • Taxi travel during events
impressive BioTek solar facilities, which are expected to The group plans to continue
• Freight transportation
offset 100% of the site’s annual electricity costs well into responsible event organization,
the future. They rely on a five-acre, 500-kilowatt solar farm going paperless and plastic-free,
in Whiting, Vermont and an 88-kilowatt photovoltaic solar and partnering with environmentally
energy installation in Milton, Vermont. conscious vendors.
Second Bloom energy
fuel server powers up
Agilent’s commitment to sustainability took another major
step forward in 2019 as our second Bloom energy fuel
server powered up, this time in Little Falls, Delaware. The
innovative 1.3-megawatt system converts natural gas into
electricity by chemical reaction rather than combustion. It
provides about 80% of Little Falls’ site power, generates no
emissions of smog, nitrogen dioxide (NO2) or sulfur dioxide
(SO2), and offsets carbon dioxide emissions by about
3,500 metric tons per year. This is the equivalent of taking From the Amazon rainforest to the
about 757 passenger vehicles off the road, while saving Great Rift Valley, Kenya
Agilent $1.2 million in electricity costs over 15 years.
Through Carbon Footprint Ltd., Agilent donated money
in support of the Verified Carbon Standard project in the
Amazon, the world’s largest remaining rainforest, in Brazil.
This project works to prevent deforestation, and is expected
Related UN Sustainable Development Goals to avoid the consequences of over 22 million tons of
6 8 13 15 carbondioxide equivalent greenhouse gas emissions,
over a 40-year period.
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