Better Health for All

The company has incurred a total of $802,962 in penalties for 20 environment-related offenses since 2000.

These include a $345,000 air pollution violation in 2021, a $108,500 air pollution violation in 2019, and a $34,158 pesticide violation in 2024. These indicate significant health-harming externalities and ongoing community impacts.

Fair Money & Economic Opportunity

Illinois Tool Works (ITW) is a diversified manufacturer, not a financial institution.

The 'Fair Money & Economic Opportunity' value assesses companies involved in lending, insuring, moving, or storing money, and their impact on financial inclusion through financial services. As ITW does not offer consumer lending, deposit services, or other financial products, all KPIs related to these activities are not applicable. This includes metrics such as underserved client share, pricing fairness, exploitative fee exposure, loan/insurance book inclusion initiatives, customer finance data accessibility, fair lending compliance, customer wealth building outcomes, community finance reinvestment, financial literacy programs, customer debt burden ratios, geographic inclusion for financial access points, and financial product simplicity. Therefore, all KPIs are scored as 0.

Fair Pay & Worker Respect

ITW recorded four substantiated labor-law infractions in the past three years (2022-2024), which include one employment discrimination record in 2023

and government safety inspection fines in 2022, 2023, and 2024 . Additionally, a subsidiary settled a $4.2 million wage and hour violation case in 2018 . The company's Total Recordable Incident Rate (TRIR) was 1.38 incidents per 100 employees in 2024 , and it reported one fatality in 2023 . ITW has increased its ISO 45001 safety management system certifications to 70 sites in 2024 . Employee engagement surveys indicate that 85% of colleagues recommend ITW as a great place to work , and 87% find their work meaningful . The company provides comprehensive U.S. employee benefits, such as medical, dental, and vision coverage for colleagues and dependents, a 401(k) retirement savings program with company matching, paid parental leave, and education assistance . ITW also participates in pay gap reporting in the United Kingdom and Ireland .

Honest & Fair Business

ITW's Board of Directors consists of 11 members, with 10 identified as independent according to NYSE definitions, representing approximately 90.9% of the board.

The company maintains a comprehensive Global Anti-Corruption Policy, updated in July 2024, which explicitly prohibits bribery in all forms and does not allow facilitating payments. This policy commits to compliance with the Foreign Corrupt Practices Act (FCPA), the OECD Anti-Bribery Convention, and the UK Bribery Act, and requires accurate record-keeping and a system of internal accounting controls. For reporting violations, ITW provides a confidential helpline managed by a third-party, which allows for anonymous reporting in permitted countries and prohibits retaliation against individuals who report suspected violations in good faith. The reporting system is available in multiple languages and to external stakeholders, with reports addressed promptly and thoroughly.

Kind to Animals

No specific evidence was found in the provided articles regarding Illinois Tool Works Inc.'s (ITW.US) practices, policies, or performance related to animal welfare. The articles discuss state-level legislation in Illinois concerning a proposed mink farming ban

and a ban on the sale of animal-tested cosmetics, but these do not provide direct, measurable data points about ITW.US's operations, products, or supply chain activities relevant to the 'Kind to Animals' ethical value.

No War, No Weapons

ITW's Supplier Code of Conduct mandates humane treatment, prohibits child and forced labor, and requires compliance with laws, including international trade laws and anti-bribery laws.

The company conducts an annual Reasonable Country of Origin Inquiry (RCOI) and due diligence process for 3TG (tin, tantalum, tungsten, and gold) to comply with the Dodd-Frank Act, which addresses humanitarian concerns in conflict-affected and high-risk areas (CAHRAs). Senior management is regularly briefed on RCOI results, and a committee meets regularly to discuss 3TG compliance, modern slavery, and supplier risk. If non-conformant smelters or refiners are identified, ITW takes steps to transition to conflict-free sources or influence them to become conflict-free. As a result of 2024 due diligence, ITW identified non-conformant smelters and refiners and intends to remove them from its supply chain. ITW's due diligence processes and efforts conform to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

Planet-Friendly Business

In 2024, the company's water use was 145.07 m³ per $1 million operating revenue.

Approximately 66% of its total electricity spend was sourced from renewable energy. The waste diversion rate stood at 72.9% in 2024. The company incurred $15,987 in government environmental fines in 2024.

Respect for Cultures & Communities

In 2022, 80% of global third-party spend was with suppliers located in the same regions where the company sells.

The company has at least four formal partnerships with local community groups, including a long-standing partnership with United Way, sponsorship of the ITW David Speer Academy, a partnership with the Urban League, and a formal partnership with Legambiente of Milan. There are no reported cultural appropriation incidents. FPIC processes are not applicable to the company's operations, and there is no public documentation of engagement in safeguarding indigenous rights.

Safe & Smart Tech

ITW has not experienced any material cybersecurity incidents during 2022, 2023, or 2024.

The company implements a risk-based cybersecurity program based on the NIST Cybersecurity Framework , which includes annual cybersecurity training and quarterly phish simulation testing . A vulnerability management program is in place , with results of third-party vulnerability testing reported to the Audit Committee . ITW states it complies with all applicable data protection and privacy laws , including specific considerations for CCPA and European Economic Area residents . Users are provided with rights to access, correct, or delete their personal information , opt-out of promotional communications , and exercise specific CCPA rights via email or phone . There are no documented incidents of unauthorized data use.

Zero Waste & Sustainable Products

In 2024, the company achieved a waste diversion rate of 72.91%, with 81,447 U.S. tons of material recycled compared to 30,260 U.S. tons of solid waste.

ITW has implemented several waste reduction initiatives, including using software for accurate truss system design to reduce material waste, efforts to reduce manufacturing scrap, recycling scrap materials through vendor partnerships, reusing pallets and packaging materials, and installing water recycling systems. However, the company has a history of environmental non-compliance. In 2021, a subsidiary faced an EPA settlement for multiple serious violations of chemical safety regulations, including failures in inspection, maintenance, and hazard analysis of outdoor chemical storage tanks and piping. Furthermore, the company incurred government environmental inspection fines in 2022, 2023, and 2024, with at least two specific waste disposal violations (air pollution and pesticide) recorded in 2024, indicating multiple serious waste disposal violations over the past three years.