Description
The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact.
CORPORATE RESPONSIBILITY REPORT
2012 CORPORATE RESPONSIBILITY REPORT
CORPORATE RESPONSIBILITY REPORT LETTER FROM THE CEO
LETTER FROM THE CEO
Welcome to Motorola Solutions’ 2012 Corporate Responsibility Report. We are pleased to share with you this annual review of our progress, which also serves as a reminder of how much more we can accomplish. Motorola Solutions employees at all levels of the company are taking action, motivated by a sense of responsibility and a desire to demonstrate our purpose: to help people be their best in the moments that matter. I’d like to tell you about a few examples. Our communication solutions help make people safer and improve operational efficiency for our government and enterprise customers. In retail, success is all about the customer experience. Our solutions, such as smart badges and enterprise tablets, help to marshal all the resources of the supply chain to focus on serving a single shopper who has placed a single order, accurately and quickly getting the purchase in the shopper’s hands—a moment that matters to both the shopper and the retailer. Our products also enable our customers to reduce their environmental impact. We use green design criteria to assess and improve the environmental performance of our products. For example, we have introduced infrastructure that significantly reduces the hardware required for first responder networks. This results in less natural resource consumption in the products and less energy used over the life of the systems for our customers. Our battery management technology optimizes charge cycles and usable battery life, and we are actively reducing the amount of packaging used when shipping our products. In our own operations, 22 percent of our electricity usage comes directly from renewable sources or through the purchase of renewable energy credits. Our goal is to increase the company’s global use of electricity from renewable sources to 30 percent by
2020 and to reduce greenhouse gas emissions by 15 percent by 2015 from 2011 baseline levels. We also are mindful of the materials in our products and how they impact society. In 2011, we helped initiate the Solutions for Hope project to establish a secure, traceable supply of the mineral tantalum from the conflict areas of the Democratic Republic of Congo. From the mines to the smelter to our supplier, each step is validated as free from involvement with conflict. This past year, we also helped launch the Conflict-Free Tin Initiative, a similar program based in the same region and focused on tin. Motorola Solutions has long been a proactive investor in the community. The Motorola Solutions Foundation focuses on four important community needs: education—specifically science, technology, engineering and math education—public safety, disaster relief and employee volunteering. In 2012, the Motorola Solutions Foundation provided grants impacting more than 700,000 students, first responders and community members in 37 countries. I am humbled by our employees around the world, who logged more than 55,000 hours of volunteer community service in 2012 through the Motorola Solutions Service Corps. Serving as volunteer firefighters, after-school robotics coaches, science fair judges, student mentors, board members and more, their work is an important extension of our grants to non-profit organizations—and proves how we as a company are committed partners in the communities where we live and work. In our company’s 85th year, we continue to evolve our approach to corporate responsibility. I hope you find this report useful, and I welcome your feedback on any aspect of our approach or performance.
Greg Brown Chairman and CEO Motorola Solutions
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CORPORATE RESPONSIBILITY REPORT TABLE OF CONTENTS
TABLE OF CONTENTS LETTER FROM THE CEO ..............................................................................................2 OUR APPROACH ..........................................................................................................5
CORPORATE RESPONSIBILITY AT MOTOROLA SOLUTIONS ........................................................................... 5 THE BUSINESS CASE......................................................................................................................................... 5 CORPORATE RESPONSIBILITY MANAGEMENT ............................................................................................... 6 STAKEHOLDER ENGAGEMENT ......................................................................................................................... 7 BUSINESS CONDUCT ........................................................................................................................................ 8 HUMAN RIGHTS POLICY ................................................................................................................................. 11 PRIVACY ........................................................................................................................................................... 11 PUBLIC POLICY ................................................................................................................................................. 12 WIRELESS COMMUNICATIONS AND HEALTH .............................................................................................. 14
ENVIRONMENT..........................................................................................................15
OUR VISION...................................................................................................................................................... 15
OPERATIONS AND THE ENVIRONMENT ..............................................................16
MANAGEMENT SYSTEM ................................................................................................................................ 16 AUDITS AND COMPLIANCE ............................................................................................................................ 17 ENERGY MANAGEMENT ................................................................................................................................ 18 OPERATIONS: CARBON FOOTPRINT ............................................................................................................... 20 VOLUNTARY PROGRAMS AND RANKINGS ................................................................................................... 21 WASTE ............................................................................................................................................................. 21 WATER ............................................................................................................................................................. 22 VOLATILE ORGANIC MATERIAL ...................................................................................................................... 23 REMEDIATION ................................................................................................................................................. 24
PRODUCTS AND THE ENVIRONMENT ..................................................................25
MATERIAL CONTENT....................................................................................................................................... 25 ENERGY EFFICIENCY........................................................................................................................................ 27 CARBON FOOTPRINT OF OUR PRODUCTS...................................................................................................... 27 INNOVATING FOR A SMARTER WORLD ........................................................................................................ 29 PACKAGING ..................................................................................................................................................... 30 CONSOLIDATING SHIPMENTS........................................................................................................................ 30 RECYCLING....................................................................................................................................................... 31
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CORPORATE RESPONSIBILITY REPORT TABLE OF CONTENTS
SUPPLIERS .................................................................................................................32
SUPPLIER CODE OF CONDUCT ........................................................................................................................ 32 MONITORING PROCESS .................................................................................................................................. 35 CONFLICT MINERALS UPDATE ....................................................................................................................... 39 MATERIALS DISCLOSURE PROCESS .............................................................................................................. 42 SUPPLIER DIVERSITY ....................................................................................................................................... 42
EMPLOYEES ...............................................................................................................45
GLOBAL WORKFORCE...................................................................................................................................... 45 EMPLOYEE ENGAGEMENT.............................................................................................................................. 46 INCLUSION AND DIVERSITY ........................................................................................................................... 47 TOTAL REWARDS ............................................................................................................................................ 49 BENEFITS.......................................................................................................................................................... 50 SAFETY PROGRAMS ........................................................................................................................................ 51
COMMUNITY..............................................................................................................53
EDUCATION...................................................................................................................................................... 53 PUBLIC SAFETY ................................................................................................................................................ 55 DISASTER RELIEF ............................................................................................................................................. 56 EMPLOYEE PROGRAMS .................................................................................................................................. 56
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CORPORATE RESPONSIBILITY REPORT OUR APPROACH
OUR APPROACH
CORPORATE RESPONSIBILITY AT MOTOROLA SOLUTIONS Motorola Solutions is a leading provider of mission-critical communication solutions for government and enterprise customers. Our solutions help people be their best in the moments that matter. We are dedicated to operating ethically, protecting the environment and supporting the communities where we do business. Our 2012 corporate responsibility report highlights the ways Motorola Solutions is working to continue to be a responsible corporate citizen. We invite you to read our report and learn more about our initiatives. THE BUSINESS CASE Corporate responsibility is not just the right thing to do; it is an essential part of good management. It helps us to: § Identify new business opportunities to meet emerging social needs § Reduce costs by becoming more efficient in our use of energy and resources § Avoid business risks and protect our reputation § Anticipate and prepare for future regulation § Maintain good relationships with our stakeholders § Maintain the safety and quality of our products by ensuring high standards in our supply chain § Protect the trust of our customers § Attract and retain the best employees, including increasingly environmentally and socially conscious graduates We aim to manage our business according to the commitments set out in our corporate responsibility business principles (see next page). These commit us to manage the company with integrity, protect the environment and create an inclusive, safe and healthy workplace. They also define our behavior toward external stakeholders, including supporting the communities near our operations, creating economic benefits and selecting suppliers with acceptable labor and environmental standards. Our corporate responsibility business principles are supported by our code of business conduct, our environment, health and safety and human rights policies, and our supplier code of conduct.
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CORPORATE RESPONSIBILITY MANAGEMENT Our corporate responsibility team coordinates our activities and determines which issues are important to Motorola Solutions. The team establishes performance indicators, sets goals for improvement and reports progress to our stakeholders. We operate an Environment, Health and Safety management system and have active participants throughout our businesses, working to reduce the environmental impact of our products throughout their lifecycles. Our supply chain corporate responsibility team assesses suppliers’ compliance
with our business conduct expectations, including labor and environmental standards. We have established metrics in relevant areas of corporate responsibility. We determine these by referring to the Global Reporting Initiative guidelines, the findings of stakeholder engagement and best-practice reporting. We promote corporate responsibility to employees through communication channels including the company intranet, emailed news summaries, employee meetings, leadership messages and internal video systems. Each year, we share metrics and achievements with employees and provide the link to our corporate responsibility report online.
OUR CORPORATE RESPONSIBILITY BUSINESS PRINCIPLES
These principles guide our actions:
INNOVATIVE PRODUCTS, CUSTOMER DELIGHT AND QUALITY
ETHICS AND TRANSPARENCY
ENVIRONMENTAL QUALITY
We create innovative products and solutions with quality and performance that meet or exceed our customers' expectations.
We operate with transparency and according to high standards of ethics and the law in directing and managing the company for all stakeholders.
We foster sustainable use of the earth's resources in our products and operations, and we strive to design environmentally conscious products.
DIVERSITY AND INCLUSION
SAFE AND HEALTHY WORKFORCE
ECONOMIC OPPORTUNITIES AND GROWTH
We create an engaged workforce that can contribute its full potential in an inclusive work environment.
In cooperation with our employees, we work to maintain a safe and healthy workplace and support employees' work-life integration.
We work to create wealth, economic opportunities and growth in regions where we do business, through our products, services, relationships and operations.
SUPPLIER RELATIONSHIPS
COMMUNITY SUPPORT
SHAREHOLDER VALUE
We set expectations for our suppliers and work with them to conduct their operations in compliance with applicable laws and accepted standards of fairness and human decency. We promote supplier diversity.
We support educational, environmental and social needs in the communities where we operate.
We strive to achieve strong financial results and long-term success through sustained profitable growth, technological innovation and market leadership.
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STAKEHOLDER ENGAGEMENT We seek feedback from stakeholders to assess our performance and to inform them of our judgments about issues. Our stakeholder engagement is undertaken at the global, regional and local levels in three main ways: § Responding to specific requests for information § Participating in multi-stakeholder relationships § Initiating our own engagement PERFORMANCE IN 2012 Non-Governmental Organizations Non-governmental organizations (NGOs) are key stakeholders. Their views are of particular importance because they also may represent other interested parties such as workers in our supplier factories, socially responsible investors and communities local to our operations. In 2012, we met periodically with representatives from NGOs working on supply chain issues, including Global Witness, the Enough Project, Free the Slaves, Falling Whistles, Responsible Sourcing Network and the Center for Research on Multinational Corporations (SOMO). Socially Responsible Investors We engage with investors on corporate responsibility issues to better understand their concerns and to learn from their research. In 2012, Motorola Solutions was included in a number of socially responsible investment indices, including: § § § § § § Dow Jones Sustainability World Index Dow Jones Sustainability North American Index FTSE4Good oekom: Prime status Maplecroft Climate Innovation Indexes Calvert Social Index
Sustainability Rankings We also engage with research analysts who develop sustainability rankings for publications to learn from their research and identify ways we can improve. In 2012, Motorola Solutions was included in the following rankings: § No. 77 on CR Magazines’ 100 Best U.S. Corporate Citizens list § No. 20 in Newsweek’s U.S. Green Rankings § No. 7 in our industry category on Fortune’s “World’s Most Admired Companies” list Customers We engaged with customers in the following ways during 2012: § Collaborated with our customers through the Global e-Sustainability Initiative (GeSI) § Completed and responded to customer surveys on corporate responsibility, including selfassessment questionnaires § Participated in corporate responsibility summits hosted by our customers § Assessed and aligned certain products to meet the environmental initiatives of specific customers and to reduce their environmental footprint Employees Our employees have formal and informal channels to discuss corporate responsibility issues. We encourage employees to go to their managers or business conduct champions with any ethical concerns at work. Employees can report suspected violations of our code of conduct anonymously where permitted by law using the global EthicsLine. We also encourage our employees to volunteer and give back to the communities where they live and work. In addition, we share our environmental performance through our employee portal, emails, our internal TV system and posters throughout our offices.
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Suppliers During 2012, we continued to engage with our suppliers on corporate responsibility by: § Offering training sessions to raise awareness of our requirements and to provide guidance on how suppliers can establish internal corporate responsibility and monitoring programs for their own supply chains § Developing new training materials for procurement professionals and factory managers § Requesting self-assessment questionnaires from our preferred suppliers to help us assess risks, identify areas for improvement and target site audits § Incorporating corporate responsibility requirements into supplier agreements § Monitoring suppliers to identify any potential problems and drive continuous improvement in corporate responsibility performance § Working with suppliers to resolve corporate responsibility issues identified by audits Government and Regulators We engage with government officials directly and through industry associations. We provide our perspective on issues affecting our industry and lobby for policies that will promote sound, balanced social and environmental sustainability and business success. In 2012, we engaged with several groups, including the U.S. State Department, the Securities and Exchange Commission (SEC), U.S. Agency for International Development (USAID), Organization for Economic Co-operation and Development (OECD), Rechargeable Battery Association (PRBA), the Dutch Foreign Ministry, the European Union DG Trade, the Democratic Republic of Congo and the Telecommunications Industry Association (TIA). Multi-Stakeholder and Industry Initiatives In 2012, we participated in GeSI, which brings together NGOs and companies to promote sustainability in the information and communication technology industry.
In 2011, we helped pilot the Solutions for Hope project to source conflict-free tantalum from the Democratic Republic of Congo (DRC). We also helped launch the Conflict-Free Tin Initiative (CFTI) to source conflict-free tin from the DRC as an end-user. This project kicked off in 2012, and we are actively supporting it using the knowledge gained from Solutions for Hope to help the CFTI succeed. We also participated in the following additional industry initiatives to improve standards in the minerals supply chain: § Joined the regional alignment meeting for the Public-Private Alliance, a joint initiative between industry, governmental agencies and civil society formed to support the development of supply chain solutions for sourcing responsibly-mined, conflict-free minerals from the DRC and the Great Lakes Region § Initiated a pilot program to assess our suppliers using industry tools and standards developed by the Electronic Industry Citizenship Coalition (EICC) and GeSI for identifying and reporting the origins of conflict minerals BUSINESS CONDUCT We are committed to conducting our business with integrity. This is essential to earning the trust of our stakeholders. Our code of business conduct is available in 13 languages and describes the ethical standards that we require from our employees. In summary, the code requires all employees to: § Obtain and conduct business legally and ethically § Build quality relationships with companies that share our values § Treat the investment of our shareholders as if it were our own § Make business decisions based on the best interests of Motorola Solutions § Report business conduct concerns immediately Read the full code of business conduct on our website.
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We raise awareness of our standards so that employees understand our values, and we encourage them and people outside Motorola Solutions to report ethical concerns using a variety of reporting channels. We investigate all allegations of ethical misconduct and make process improvements and/or take disciplinary action when claims are substantiated, up to and including dismissal. MANAGEMENT OVERSIGHT The audit committee of our board of directors has overall responsibility for compliance with our code of business conduct. The office of ethics presents a full report to the audit committee at its meeting each quarter, as well as monthly reports on matters under review. Our Motorola Solutions Ethics and Compliance Council, which comprises senior management from sales and product operations, human resources and finance and the senior ethics officer, meets quarterly to review and drive progress of our ethics and compliance initiatives. Ethics and compliance councils operate in our Asia Pacific & Middle East, Europe & Africa, and Americas regions, each of which are represented on the Motorola Solutions Ethics and Compliance Council. The office of ethics manages our ethics program for the company and works with our internal business teams, the finance department and the law department to monitor legal compliance and business risk. The office also works closely with our procurement team to ensure compliance with our supplier policies. We have developed an automated tracking system that helps us check if our third-party sales representatives have been properly screened and meet our contractual requirements. Senior leaders regularly communicate business conduct expectations to employees. At the local level, business conduct champions promote compliance programs to employees.
ETHICS AWARENESS AND TRAINING We ensure our employees understand our business conduct requirements through ethics training and awareness activities. During 2012, in addition to regular required online training, we presented targeted training to key employee groups globally, including country managers, finance and procurement. We held individual sessions with more than 100 senior leaders to enhance understanding of ethics program resources and updated the training materials we use with third parties. Our business conduct champions participated in a global, two-day workshop to enhance their understanding and help them more effectively support employees around the world. DUE DILIGENCE We have robust due diligence policies and processes for assessing prospective business partners, including third-party sales representatives and third-party service providers, among others, as well as certain high-risk business opportunities. In 2012, we continued to enhance these processes to include additional types of business partners for our sales channels, and performed self-audits to ensure effectiveness. In 2012, employees, customers, suppliers and others made 202 reports to the office of ethics. This included questions or concerns regarding the code of business conduct, HR-related queries and allegations of misconduct. We strive to ensure people who contact us with ethical concerns can be confident that we will respond quickly and handle their requests discreetly. In addition to the EthicsLine, employees also can use our online EthicsLine Interactive website, which offers the option of anonymous email engagement with the office of ethics in four languages. This enables office of ethics staff to ask for clarification and give feedback online.
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Reports to Office of Ethics and Compliance in 2012
Total reports submitted Reports requiring investigation Investigations substantiated Investigations closed* Resulting disciplinary actions 202 38 14 36 9
Reports by Topic*
Human resources-related Product-related issues and complaints Allegations of impropriety Inquiries about code of business conduct Audit and accounting 68 1 49 59 16
Other concerns 65 * A report may apply to more than one category
Disciplinary Action Separation** Written warning Counseling 3 1 5
Reporting Channels Used
EthicsLine (telephone) EthicsLine Interactive (online) Business conduct champions Audit activity Data privacy line 2 1 Other 110 36 12 4 5 35
Resulting separations** Employees Contractors
Business partners 0 * Includes nine reports opened in 2011 ** Includes resignations and terminations
BUSINESS CONDUCT GOALS Goals for 2012 § In support of continuous improvement efforts, implement targeted policy and process enhancements, with special emphasis in anti-fraud and anti-corruption arenas. § Implement and roll out advanced online anti-corruption course. § Conduct corporate-wide legal risk assessment. Progress in 2012 § Enhanced due diligence processes to include additional types of business partners; provided continuous training to key employees; performed self-audits to ensure effectiveness. § Held targeted live training sessions with employees with relevant job responsibilities in lieu of additional online training. § Continued partnership with internal audit group on enterprise risk management. Goals for 2013 § Deliver targeted ethics and compliance communications to employees at career milestones (e.g., new hire, promotion). § Enhance ethics and compliance content in regular internal audit procedures. § Review and revise global gift and entertainment policies as required.
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HUMAN RIGHTS POLICY Motorola Solutions’ human rights policy is based on our long-standing key beliefs of uncompromising integrity and constant respect for people, and is consistent with the core tenets of the International Labour Organization’s fundamental conventions and the United Nations Universal Declaration of Human Rights. I. ANTI-DISCRIMINATION
require, on a regularly scheduled basis, work in excess of 60 hours per week or in excess of six consecutive days without a rest day. V. WAGES AND BENEFITS
PRIVACY POLICY
We employ people on the basis of their ability to do the job, and we prohibit discrimination based on employees’ personal characteristics, conditions or beliefs. II. FREELY CHOSEN EMPLOYMENT
Our employees are paid at least the minimum legal wage or, where no wage law exists, the local industry standard. In any event, we provide wages and benefits to our employees to at least meet basic needs. For each pay period, we provide employees with an understandable wage statement that includes sufficient information to verify accurate compensation for work performed. We do not make deductions from wages as a disciplinary measure. VI. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Our Information Protection policy, IP-01, and related control standards commit our employees and third parties working for Motorola Solutions to protect the personal information of our employees, customers, consumers and additional third parties. Motorola Solutions’ IP-01 policy requires us to: § Inform customers and consumers about the types of information we collect about them and how we intend to use it § Allow customers and consumers to choose whether their personal information is used for marketing purposes or shared with third parties § Collect, process, transfer and store personal information in accordance with local laws § Ensure the security of personal information so that it remains accurate, is not accessed without authorization and is used appropriately § Provide customers, consumers and employees with the ability to access, correct, amend and/or delete their personal information when appropriate
We do not use forced, prison or indentured labor, including debt bondage. We ensure that terms of employment are voluntary. If we recruit contract or migrant employees, we pay agency recruitment fees and ensure there are no unreasonable employment or relocation expenses. We do not require any employee to remain in employment for any period of time against his or her will, or engage in practices that restrict employees’ ability to terminate employment. We do not require employees to lodge “deposits” or hand over government-issue identification, passports or work permits as a condition of employment, unless required by applicable law. III. NO CHILD LABOR
We recognize the right of our employees to join associations of their own choosing or to refrain from joining, and the right to collective bargaining, unless otherwise prohibited by law. In all cases, we respect employees’ rights to open communication, direct engagement, and humane and equitable treatment. VII. SAFE AND HEALTHY WORKING CONDITIONS
We provide a safe and healthy work environment for employees. In cases where we provide housing or dining facilities, we operate and maintain them in a safe, sanitary and dignified manner. VIII. NO HARSH OR INHUMANE TREATMENT
Our hiring practices conform to the International Labour Organization (ILO) conventions for minimum age and child labor. Employees under the age of 18 should not perform hazardous work and should be restricted from night work if it interferes with educational needs. IV. FAIR WORKING HOURS
The safety and security of employees at our facilities are key priorities. We prohibit physical abuse and harassment of employees, as well as the threat of either. PRIVACY We believe that people have the right to control their personal information and determine how it is collected and used. We are committed to safeguarding personal information of Motorola
Read our online privacy practices statement, which applies to personal information collected through our websites.
We manage operations to ensure that overtime does not exceed levels that create inhumane working conditions. We do not require employees to work more than the maximum hours of daily labor set by local law. We do not
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Solutions’ employees, customers and business partners. We adhere to data privacy laws and regulations globally and design products and services to protect and secure confidential information. Motorola Solutions’ privacy compliance efforts are coordinated jointly by the company’s law and information security organizations. Interdisciplinary teams working in IT, marketing, human resources, sales, product development and procurement play a key role in protecting information and in the company’s broader compliance efforts. We work closely with third parties handling personal information on our behalf to ensure that our privacy and information protection practices meet or exceed industry best practices and legal standards. Employees who violate our information protection policies are subject to disciplinary action, including dismissal. Agents and subcontractors face contractual penalties and/or termination. We have certified compliance with the U.S.-EU Safe Harbor Framework and maintain an interactive Privacy email address, where employees, customers and consumers can direct questions, concerns and complaints about privacy-related issues or practices: [email protected]. MANAGEMENT AND TRAINING Motorola Solutions’ privacy compliance team, along with information security staff and business security managers, raises awareness about our privacy policies and practices, provides advice and assistance to employees, and enforces information protection and privacy policies. All employees are required to take courses for privacy protection and information protection every two years. Detailed privacy and security documentation and tools, including training
modules and issue-specific privacy reference guides, are available to employees and contractors whose jobs involve handling personal information. Our voluntary advanced online privacy course “Privacy Directions 101: Awareness for Motorola Solutions” informs employees about international privacy legislation such as the Organization for Economic Cooperation & Development’s (OECD) privacy guidelines, the European Union’s Directive on Data Protection and its trans-border data flow requirements, and the Asia-Pacific Economic Cooperation (APEC) forum’s privacy framework. PERFORMANCE IN 2012 There were no reportable breaches of personal data in 2012. A reportable breach occurs when unencrypted personal information is believed to have been acquired by an unauthorized person or entity. “Personal information” refers to a person’s last name paired with a first name or first initial and one or more of the following identifiers: a U.S. Social Security or equivalent national identification number; a driver’s license or equivalent identification number; or a number from a bank account, credit card or debit card, along with a password or security code that would give access to the account. PUBLIC POLICY Participation in the public policy process is important, as the actions that governments take can have a significant impact on the company, our employees and our shareholders. We prudently and constructively promote legislative and regulatory actions that further our business objectives and attempt to protect our company from unreasonable, unnecessary or burdensome legislative or regulatory actions at all levels of government. We operate within the guidelines of applicable laws, our code of business conduct and
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compliance policies. Employees who interact with government employees or officials must complete our “Building Government Relations of Strength and Integrity” course. This clarifies the standards and policies relating to ethical conduct and government relations to ensure that employees and third parties protect the company from both reputation and legal risks. POLITICAL CONTRIBUTIONS IN THE UNITED STATES In the United States, where permitted by federal, state and local law, we contribute to candidates and campaigns – regardless of party affiliation – that understand and support policy issues that are important to our business. Contributions are based on the interests of the company without regard to the personal political preferences of our officers and executives. We have a robust policy and an internal online political contribution approval process that governs the review and oversight for ensuring compliance with current campaign finance and disclosure laws, as well as our code of business conduct. We provide an opportunity for employees to participate in the political process by joining our nonpartisan political action committee (PAC). The Motorola Solutions PAC allows employees to pool their financial resources to support federal, state and local candidates, political party committees and political action committees. The political contributions the Motorola Solutions PAC makes are funded entirely by the voluntary contributions of our employees. All contributions through the Motorola Solutions PAC plan are approved by the Motorola Solutions PAC board of directors, and an annual report of Motorola Solutions’ contributions also is submitted to the company’s board of directors. Employees are neither favored nor disadvantaged because of the amount of their contribution or decision to contribute. A committee within our North America government affairs organization develops a plan for all political contributions, identifying the candidates and campaigns that will receive contributions based on a non-partisan effort to
advance and protect the interests of the company, our stockholders and our employees. The vice president of North America government affairs reviews this overall plan, and our legal counsel reviews all political contributions in advance. In addition, the Motorola Solutions board of directors receives an annual report of all corporate contributions. The committee uses a set of criteria for assessing candidates that includes: § Support/leadership for our policy objectives § Geographic representation of our sites and employee population § Strong or emerging positions on issues that impact the high-tech industry and the business community § Assignments on key legislative committees In 2012, the Motorola Solutions PAC distributed $258,308 in employee contributions. The Motorola Solutions PAC does not make contributions to candidates outside of the United States. Read more about our Motorola Solutions PAC contributions. While U.S. law prohibits corporate contributions to federal political candidates, these contributions may be used in some states for candidates seeking state or local offices. In 2012, we contributed $749,500 to state and local candidates, party committees and ballot-measure campaigns in the United States. We have not used corporate funds to make any direct independent expenditure on behalf of candidates running for public office and do not currently have plans to use direct independent expenditures as part of our corporate political contributions program. MEMBERSHIP IN TRADE ASSOCIATIONS Motorola Solutions is a member of trade associations in the United States that represent the public policy objectives of our industry. We pay annual dues of $50,000 or more to belong to these associations:
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§ Alliance for Telecommunications Industry Solutions (ATIS) § Business Roundtable § Information Technology Industry Council § TechAmerica § Telecommunications Industry Association § U.S. Chamber of Commerce § WiFi Alliance WIRELESS COMMUNICATIONS AND HEALTH Wireless communication devices send and receive information using radiofrequency (RF) energy transmitted as waves through the air. Questions have been raised about the safety of RF energy from antenna sites (e.g., cell phone networks, base stations and radio/TV transmitters) and wireless devices (e.g., portable phones, two-way radios, mobile computers and RFID readers). Research into RF energy effects has been ongoing for more than 60 years and is the basis for internationally recognized standards for safe human exposure to RF energy. The World Health Organization (WHO) and many other expert panels and government health authorities around the world (including the U.S. Federal RF Interagency Working Group) who continue to conduct ongoing reviews of the science have consistently concluded that RF products that meet the science-based international standards for exposure to radio waves pose no known health risk. For example, in August 2009, the International Commission on Non-Ionizing Radiation Protection (ICNIRP) published a statement after a comprehensive, multi-year review of several national and international research programs involving wireless communications technologies and international exposure guideline restrictions. ICNIRP concluded: “…the scientific literature published since the 1998 guidelines has provided no evidence of any adverse effects below the basic restrictions and does not necessitate an immediate revision of its guidance on limiting exposure to high frequency electromagnetic fields.” The U.S. Government Accountability Office (GAO) report (2012) also indicated: “Scientific research to date has not
demonstrated adverse human health effects of exposure to radio-frequency (RF) energy from mobile phone use.” Based on an ad hoc committee evaluation, the International Agency for Research on Cancer (IARC) has classified exposure to RF electromagnetic fields, which are emitted by mobile phones, wireless devices, radars, and radio and television broadcasts, as possibly carcinogenic to humans (classification 2B). Following the IARC announcement of the classification, the WHO EMF Project, which specializes in EMF safety issues, posted a fact sheet (No.193) on the safety of mobile phones. In this document, under the question “Are there any health effects?”, WHO says: “A large number of studies have been performed over the last two decades to assess whether mobile phones pose a potential health risk. To date, no adverse health effects have been established as being caused by mobile phone use.” All Motorola Solutions products comply with international exposure guidelines and standards for RF energy exposure and national regulations where applicable. The RF exposure measurement for portable wireless devices under these requirements is called specific absorption rate (SAR). The guidelines and standards set for SAR levels for wireless products provide wide margins of protection for professional users and the general public. Motorola Solutions supported substantial independent biological research and continues to sponsor independent studies through the Mobile Manufacturers Forum (MMF) to increase scientific knowledge about the safety of RF energy. If you have additional questions, please contact Motorola Solutions’ Wireless Communications and Health team at: [email protected]. Read more about research and standards on wireless communications and health, and find answers to frequently asked questions.
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ENVIRONMENT
Our customers expect products with minimal adverse environmental impacts and increased benefits. Our strategy is to understand the environmental impacts of our products and look for opportunities to minimize adverse impacts. We strive to improve each new product to consume less energy, use environmentally preferred materials, have an extended life-span and be easily recycled. Our take-back programs offer our customers an end-of-life solution by collecting electronic equipment for reuse and recycling. We recognize that electronics products can have adverse impacts on the environment. But they also offer significant benefits, such as helping our customers reduce their environmental footprints and cut their energy costs through efficiency improvements. While we are helping our customers reduce their environmental footprints, we continue to reduce our own impacts though a rigorous environment, health and safety management system. OUR VISION The following long-term sustainability objectives reflect our ideals and provide a vision of how we intend to contribute to sustainable development: § Product stewardship: Evaluate and improve environmental attributes and safety of new products § Zero waste: Minimize waste generation and reuse or recycle all waste materials § Benign emissions: Eliminate from manufacturing sites all emissions that adversely impact the environment § Closed loop: Promote the use of recycled materials to conserve natural resources § Green energy: Use energy in highly efficient ways, and increase use of renewable energy § Zero occupational injuries and illnesses: Create a workplace free of occupational injuries and illnesses
CLIMATE CHANGE
Climate change is one of the greatest challenges facing the world, and we are working to be part of the solution. Coordinated action by governments will be essential to meeting the climate challenge. Business also must play a significant role, and Motorola Solutions is taking action in four ways: § Cutting the impact of our operations through energy efficiency measures and renewable energy usage § Improving the energy efficiency of our products § Developing technology to enable a low-carbon future § Helping our customers reduce their carbon footprints
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CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
OPERATIONS AND THE ENVIRONMENT
Designing, manufacturing and distributing electronic communication products uses natural resources, creates emissions and waste and contributes to climate change, principally through carbon dioxide emissions from energy use. We are committed to reducing the environmental impact of our operations. We have set goals and established the necessary policies and processes to achieve them. MANAGEMENT SYSTEM Oversight of our global Environment, Health and Safety (EHS) management system is provided by our vice president of EHS. Our EHS professionals around the world implement common programs at the site level to comply with the global EHS management system. They are supported by EHS policies, procedures, checklists and other resources, as well as location-specific internal websites. Our EHS management system is certified to the international standards ISO 14001 and OHSAS 18001. This covers all of our manufacturing sites and our larger facilities. Sites are classified according to floor space, headcount, type of operation and risk level. Sites with higher scores are classified as Class I sites and are certified to ISO 14001 and OHSAS 18001 by Lloyd’s Register Quality Assurance (LRQA): § LRQA Certificate of Approval for ISO 14001:2004 § LRQA Certificate of Approval for OHSAS 18001: 2007 In addition, our facility in Airport City, Israel is certified to ISO 14001 and OHSAS 18001 by The Standards Institution of Israel. Our facility in Mississauga, Canada is ISO 14001 certified. § The Standards Institution of Israel Certificate of Approval for ISO 14001: 2004 § The Standards Institution of Israel Certificate of Approval for OSHAS 18001: 2007 § BSi Certificate for Approval for ISO 14001:2004 We strongly encourage our tier-one suppliers to have an environmental management system in accordance with ISO 14001 or an equivalent standard. We monitor compliance with this requirement through our supplier assessment program.
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GREEN BUILDING STRATEGY In 2009, we conducted a gap analysis to assess the status of our facility portfolio against the LEED (Leadership in Energy and Environmental Design)Existing Buildings Operations and Maintenance (LEED-EB) standards. The analysis revealed that operations at our facilities already meet many of the LEED-EB standards. As we renovate our existing facilities, we implement additional LEEDEB requirements. In 2011, our EHS team worked with our real estate and procurement teams to develop global guidelines for the purchasing of green products and energy efficient equipment. We use these guidelines globally to help sites set targets for purchasing environmentally preferable paper and office products, IT equipment, furniture, lighting, and janitorial and cleaning supplies to maintain our sites while protecting human health and the environment. In 2012, as part of our ongoing environmental efforts, we installed two electric vehicle chargers at our corporate headquarters in Schaumburg, Illinois, U.S. These electric vehicle chargers are available free of charge to employees, customers and visitors with plug-in electric vehicles. In 2012, we estimate that these electric vehicle chargers helped prevent 650 kg of greenhouse gas emissions from being emitted into the environment, based on data calculated by ChargePoint, the company that provides our chargers. ChargePoint bases its calculations on U.S. Environmental Protection Agency (EPA) estimates. As the chargers installed on the Schaumburg campus are part of a pilot project, we’re investigating their continued use and anticipate expanding the program to other sites. We also provide a shuttle for employees who choose to commute to our Schaumburg campus via train. The shuttle makes two round trips per day between our Schaumburg campus and the nearest suburban commuter train station. Assuming that all shuttle riders would otherwise drive to work individually, we estimate that our shuttle service helps reduce CO2 emissions by approximately 250 metric tons per year. We calculated this reduction
using the Greenhouse Gas Protocols Mobile Combustion GHG Emissions Calculation Tool. EMPLOYEE AWARENESS We engage our employees and promote various EHS programs and targets by displaying posters at our sites, running programs on internal TV monitors, sending emails to all employees and holding site EHS awareness events, such as Earth Day. In 2012, we rolled out a new online EHS orientation course for our employees to help them gain a deeper understanding of how our EHS programs impact our bottom line. SCOPE OF EHS DATA Our EHS data includes measured and estimated data. We measure environmental impacts at our main sites, which accounted for 86 percent of total floor space as of Dec. 31, 2012. We collect this data using our internal reporting system. We extrapolate the measured data to provide an estimate of the remaining 14 percent of the total floor space. Our health and safety metrics are captured at all of our sites as well as in our field services activities. AUDITS AND COMPLIANCE We conduct EHS audits at our sites to assess compliance with our EHS policy, management system and legal requirements. Our ISO 14001 and OHSAS 18001 certified sites each undergo one of the following audits at least once a year through our staggered system: § Internal EHS management system audit: Every two years by internally qualified auditors § EHS legal compliance audits: Every three years by independent, third-party auditors § ISO 14001 and OHSAS 18001 surveillance audits: Approximately every two years by independent, third-party auditors We also conduct EHS legal compliance audits of our Class II non-ISO certified sites. All non-compliances are recorded and tracked to ensure that corrective actions are implemented.
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PERFORMANCE AND GOALS Environment, Health & Safety (EHS) Audit Summary
2008 EHS Legal Compliance Audits ISO 14001/OHSAS 18001 Surveillance Audits ISO 14001/OHSAS 18001 MSI Headquarters Internal EHS Management System Audits 11 3 2 4 2009 11 6 2 3 2010 8 5 2 4 2011 7 3 1 1
†
2012 2 4 1 2
Environment and Safety Non-compliances
2008 Environmental non-compliances* Safety non-compliances 1 0 2009 0 0 2010 0 0 2011 0 0 0
†
2012 0 0 0
Fines or penalties, dollars $500,000** 0 0 * Notices of violation, citations, administrative orders or notices of non-compliance ** Shared with two other companies
The fine in 2008 was related to incomplete ground water treatment by a third party at the North Indian Bend Wash site in Scottsdale, Arizona, U.S. Please visit these links for more information. 2013 COMPLIANCE GOAL No notice of violations or fines. ENERGY MANAGEMENT Our global energy team meets regularly and comprises members of facilities management, corporate sustainability, EHS and procurement, coordinating energy management across Motorola Solutions. We are systematic in the way we seek energy savings in all our facilities. New energy saving measures launched in 2012 included: § Instituted energy audits across all large facilities to help identify areas where we can improve energy efficiency § Began a condition-based maintenance (CBM) initiative focusing on the lifecycle analysis of equipment to ensure that inefficient equipment is exchanged for more efficient equipment § Upgraded boiler control equipment, which has resulted in a 15 percent reduction in natural gas usage Previous energy-saving measures we continued in 2012 included: § An upgrade in cooling equipment that is expected to result in a 10 percent reduction in energy costs § Evaluating the use of green energy at all our facilities § Creating teams to promote energy saving at sites § Conducting inspections to ensure lights are turned off at night § Upgrading lighting in offices and production facilities § Matching lighting more closely with building occupancy
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 18
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
§ Increasing maintenance of air handling units § Upgrading and improving the efficiency of compressors § Optimizing pressure levels on manufacturing equipment § Upgrading controls, removing unnecessary pumps and de-scaling evaporator coils on chillers § Using natural cooling (free cooling) in winter instead of cooling provided by chillers § Upgrading to a more energy efficient humidity system § Improving building management systems to optimize controls § Increasing the temperature in IT rooms to reduce the demand for cooling § Cleaning during the day to avoid having to light offices at night
PERFORMANCE AND GOALS In 2012, we used 346 million kilowatt hours of energy, a reduction of nearly 12 percent from 2011. We achieved this reduction by divesting portions of our business, closing and combining some of our facilities, and completing several energy-saving upgrades in our facilities. This calculation is based on: § Actual data covering 86 percent of total floor space in 2012 § Estimated consumption based on average energy per square foot for the remaining percent
Energy Use: Electricity and Natural Gas (in million kilowatt hours)
2008 Measured Energy Use Scaled up with Estimates 745 955 2009 652 866 2010 628 803 2011 333 392
†
2012 298 346
RENEWABLE ENERGY In 2012, about 22 percent of the electricity we used globally was from renewable sources. Our goal is to increase our global use of electricity from renewable sources to 30 percent by 2020. In addition to the 9 percent of renewable energy available by default in the power grid, about 13 percent of our global electricity came from voluntary purchases. This includes green-e certified renewable energy certificates (RECs) purchased from wind power in the United States and hydropower purchased directly from the generator in Germany and Denmark. In the United States, we purchased RECs from NativeEnergy, which supports Native American, farmer-owned, community-based renewable energy projects helping create social, economic and environmental benefits. Renewable Energy Use as a Percent of Total Energy Use
2008 Percent 10% 2009 15% 2010 23% 2011
†
30% RENEWABLE INCREASE
ENERGY GOAL
Increase use of renewable energy to 30 percent by 2020. This includes purchasing green e-certificates and a calculation of how much energy purchased from providers is from renewable sources.
2012 22%
20%
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 19
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
OPERATIONS: CARBON FOOTPRINT In 2012, our carbon footprint (Scope 1 and 2 emissions from the Greenhouse Gas Protocol) totaled 176,604 tonnes CO2 equivalent. These calculations are based on: § Actual data covering 86 percent of total floor space in 2012 § Estimated impact based on average energy per square foot for the remaining 14 percent Bureau Veritas conducted an independent verification of our 2012 greenhouse gas (GHG) emissions. § Bureau Veritas GHG Emissions Verification Statement EMPLOYEE BUSINESS TRAVEL Our commercial air travel, rail travel, car rentals and business travel in employee-owned cars resulted in 69,841 tonnes CO2 equivalent emissions. Our travel policy requires that, when possible, employees minimize travel by utilizing audio-conferencing, web meetings and video-conferencing. Employees can read tips on how to reduce their travel-related carbon footprints on a dedicated intranet site. PERFORMANCE AND GOALS Carbon Footprint: Global Greenhouse Gas Emissions (Total: Scope One* and Two**)
2008 Tonnes of CO2 equivalent (measured emissions) Tonnes of CO2 equivalent (estimated emissions) 417,434 531,661 2009 329,223 433,373 2010 291,827 369,851 2011
†
2012 153,926 176,604
168,634 197,761
Tonnes of CO2 equivalent per million sales 17.6 19.7 19.2 24.1 20.1 dollars (scaled up to include estimates) * Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources, including boilers, emergency generators, fire pumps, cooking appliances and aircraft ** Scope Two: Includes indirect emissions from electricity use
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 20
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
Carbon Footprint: Global Greenhouse Gas Emissions (Units in Tonnes CO2 Equivalent)
2008 Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources* (not including estimates) Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources (scaled up to include estimates) Scope Two: Indirect emissions from electricity use (not including estimates) Scope Two: Indirect emissions from electricity use (scaled up to include estimates) Scope Three: Business travel Total carbon footprint** 33,125 2009 27,792 2010 28,927 2011
†
2012 24,901
18,017
38,768
33,217
33,349
20,156
26,483
384,309 492,893 146,845 678,506
301,432 400,156 115,128 548,501
262,900 336,502 125,438 495,289
150,617 177,605 52,363 250,124
129,025 150,121 69,841 246,445
* Includes boilers, emergency generators, fire pumps, cooking appliances and aircraft ** Includes scaled up Scope One and Two emissions along with Scope Three emissions
VOLUNTARY PROGRAMS AND RANKINGS We are involved in voluntary climate change programs that promote awareness, encourage us to be transparent about our actions and improve our performance. CARBON DISCLOSURE The Carbon Disclosure Project (CDP) initiative encourages companies to report on greenhouse gas emissions and actions to mitigate them. We have reported our greenhouse gas emissions annually since 2004. In 2011 and 2012, we also participated in the CDP’s Water Disclosure project. The initiative aims to increase the availability of information about the investment risk and commercial opportunity associated with water. GLOBAL E-SUSTAINABILITY INITIATIVE As a member of the Global e-Sustainability Initiative, in 2012 we participated in that organization’s climate change working group, an industry effort to improve the sustainability and energy efficiency of the information and communication technology sector. WASTE We have set challenging goals to reduce the amount of waste we produce at our manufacturing and office sites and to increase recycling.
10% DECREASE
WASTE GOAL
§ Reduce total waste by 10 percent in 2015 from 2011 levels (normalized to headcount) § Increase recycling rate to 90 percent by 2015
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 21
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
PERFORMANCE AND GOALS In 2012, we produced 7,044 tonnes of total waste. Total Waste
2008 Tonnes Tonnes per employee 21,194 0.351 2009 15,953 0.270 2010 21,586 0.367 2011
†
2012 7,044 0.284
8,730 0.320
Recycling/Recovery Rate*
2008 2009 2010 2011
†
2012
Percent 78% 77% 86% 75% 71% * The recycling rate that we’ve reported previously includes waste that is recycled and reused. The recovery rate adds waste that was sent to a facility to be burned for energy use (used as a fuel). The “energy recovery” waste adds approximately 3 percent to our rate.
Our total waste includes hazardous and non-hazardous wastes. Of this total, 97.5 percent is non-hazardous, and 2.5 percent is hazardous (including electronic waste in countries where electronic scrap is regulated as hazardous waste). Of the non-hazardous waste we generate, 61 percent is recycled, 7 percent is reused, 3 percent is burned for energy recovery and 0.1 percent is incinerated. We send only 29 percent to a landfill, and we continue to work to drive that percentage lower. We attribute the majority of the reduction in both our total waste and recycling rate in 2012 to organizational changes, which included the sale and divestiture of portions of our business. WATER Nearly all of the water we use in our own operations is for sanitary purposes in cafeterias and restrooms and for use in cooling towers. We use very little water in manufacturing. WATER USE PERFORMANCE In 2012, we used 799,000 cubic meters of water. This calculation is based on: § Actual water use covering 80 percent of total floor space § Estimated water use based on average water use per square foot for the remaining 20 percent
5% REDUCTION
WATER GOAL
Reduce total water consumption 5 percent by 2015 from 2011 levels.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 22
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
Water Use (In Thousands of Cubic Meters)
2008 Measured data Scaled up with estimates 1,919 2,699 2009 1,642 2,308 2010 1,739 2,331 2011 641 802
†
2012 638 799
WASTEWATER At most of our sites, we discharge our wastewater to public sewer systems for treatment in compliance with regulations. In the United States, we operate two industrial wastewater treatment systems to process a very small amount of wastewater from our research and development laboratories. These systems treat the wastewater for pH and metals before discharging to the public treatment system for further treatment in compliance with local regulations. VOLATILE ORGANIC MATERIAL The majority of volatile organic material (VOM) emissions result from our manufacturing lines where we use organic solvent-based fluids to clean the stencils used in our screen printing operations and when soldering electronic components onto circuit boards. We have significantly reduced our VOM emissions over the years by changing our processes and introducing substitutes. VOM figures are based on actual reported data as we capture the vast majority of these emissions through our data collection systems. PERFORMANCE AND GOALS In 2012, we emitted 7 metric tonnes of VOMs. We have reduced our VOM emissions significantly by changing cleaning and soldering processes at many sites that were responsible for the majority of emissions. Volatile Organic Material Emissions
2008 Tonnes 44 2009 25 2010 24 2011 7
†
2012 7
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 23
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
REMEDIATION Motorola Solutions is involved in environmental remediation at several current and former manufacturing locations, and former waste disposal facilities. These sites were impacted by past activities that were common and accepted practices at the time. At the end of 2012, we had $64 million reserved to cover environmental liabilities. We share environmental liabilities and remediation expenses with other companies and organizations. NORTH INDIAN BEND WASH SUPERFUND SITE The North Indian Bend Wash (NIBW) site is an eight square mile area in Scottsdale, Arizona, U.S., where portions of the underlying groundwater were impacted in part by historical Motorola Solutions operations. In 1983, the EPA designated this area as the North Indian Bend Wash Superfund site following detection of trichloroethylene (TCE) in two public water supply wells. Motorola Solutions, Siemens and GlaxoSmithKline (known as the NIBW Participating Companies) are the principal companies responsible for the NIBW cleanup. Through 2012, we have spent more than $129 million on environmental cleanup activities in the Scottsdale area. More than 94 billion gallons of water have been pumped and treated at the NIBW site since the cleanup began. For more information, please visit this site.
PLANTATION, FLORIDA Historical operations in Plantation, Florida, U.S., resulted in an impacted parcel of the property in the area of a former lawful waste lagoon. In the 1980s, Motorola addressed the lagoon by removing a majority of the impacted soils. Motorola addressed the remaining impacts via a Hazardous and Solid Waste (HSWA) Permit that governed activities on the site up until Motorola Solutions’ most recent remediation efforts. Motorola Solutions addressed the groundwater impacts and completed a soil removal project addressing 27,595 tons of cadmium-impacted soil. We restored the formerly impacted area with low maintenance bahiagrass and trees, increasing the site’s green space and improving aesthetic value. Following completion of the excavation project, we submitted a Site Rehabilitation Completion Report and accompanying documentation, in pursuit of a Site Rehabilitation Completion Order. MACHIAS GRAVEL PIT SITE In cooperation with the State University of New York at Buffalo and the Wildlife Habitat Council, we are conducting a phytoremediation and habitat restoration project at a site in western New York State. The phytoremediation system uses a poplar tree barrier to remove low levels of volatile organic compounds from groundwater. We have re-seeded the site with native grasses and wildflowers and have installed bird and bat boxes at the site to foster habitat restoration.
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CORPORATE RESPONSIBILITY REPORT PRODUCTS AND THE ENVIRONMENT
PRODUCTS AND THE ENVIRONMENT
We are shrinking the environmental footprint of our products, innovating to reduce adverse impacts and increase environmental benefits at each stage of the lifecycle—design, manufacture, distribution, use and end of life. This helps our customers reduce their environmental footprints and cut their energy costs through efficiency improvements. Our takeback programs provide added benefits through the reuse, recycling and proper disposal of unwanted or obsolete equipment. We consider the following environmental principles in our product design: § § § § § Comply with laws and regulations Use environmentally preferred materials Improve energy efficiency Reduce carbon footprint Reduce material consumption, including packaging § Increase the recyclable content of our products MATERIAL CONTENT Motorola Solutions is working to reduce hazardous substances in its products and to find environmentally sound alternatives, without compromising performance and quality. We have a continuing program to research and monitor independent scientific reviews of our materials’ impact on the environment and human health. The result is a growing knowledge resource about substances of concern and environmentally sound alternatives.
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REGULATORY REQUIREMENTS
A number of countries around the world have implemented regulatory restrictions on hazardous substances. European Union's Directive on the Restriction Of Hazardous Substances We voluntarily extended our compliance with the European Union's directive on the restriction of hazardous substances (RoHS) to cover all newly designed products, regardless of where they are sold worldwide. For additional information, download our EU RoHS Statement. China Management Methods China's Management Methods for Controlling Pollution from Electronic Information Products requires manufacturers to report and label usage of the same six hazardous substances listed in the EU RoHS Directive effective as of March 1, 2007. All Motorola Solutions products manufactured after March 1, 2007 and shipped into China comply with the labeling requirements of China Management Methods.
REACH REACH is a European Union substances regulation that became law on June 1, 2007 with phased deadlines to 2018. Motorola Solutions is actively managing and sharing information from our suppliers to meet our obligations and help our customers meet theirs. We are aware of potential future substance restrictions and work with our suppliers to find alternatives in advance. We have implemented our current obligations under REACH and will continue to comply as other obligations are phased in. Read our letter to our customers on our efforts to comply with REACH. If you have questions about specific Motorola Solutions products and conformance to any of these regulations, or substances that may be within the product, please contact your sales representative, or contact us via email.
PRECAUTIONARY APPROACH TO MATERIALS SELECTION We take a precautionary approach to materials selection and have compiled a list of 65 substance categories targeted for exclusion, reduction or reporting during the design and manufacture of our products. We divide these into three groups: § Banned substances — not permitted in any Motorola Solutions product at any level § Controlled substances — limited for use (at extremely low concentrations) in manufacturing processes or certain product applications, with use limits typically defined
by national or international environmental regulations § Reportable substances — not currently banned but their use is carefully monitored and control may be increased in the future Taken together, these three groups address past, current and future substance use restrictions for electronic products. We manage substances of concern by following regulatory requirements and referring to independent expert scientific reviews. Independent reviews of hazardous substances are conducted regularly by agencies such as the International Agency for Research on Cancer (IARC) and the World Health Organization (WHO).
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The results and environmental health guidelines published by these organizations typically are based on the weight of scientific evidence for human and environmental exposures to chemicals and physical agents. In turn, regulatory agencies use IARC and WHO guidance to ban or control exposures to hazardous substances. When scientific evidence about a chemical or physical agent is limited or conflicting, our experts and engineers assess potential adverse impacts, risks of substitutes, needs for precautionary measures, and technical and economic feasibility. This process may lead Motorola Solutions to take voluntary measures to reduce, phase out or eliminate substances that currently are not banned or controlled by regulatory agencies. BATTERIES Batteries that are properly handled and disposed of do not have a detrimental effect on the environment. Our batteries are fully encased and do not release hazardous substances if they are used and disposed of correctly. We fully comply with the EU Battery directive. We voluntarily publish product data sheets that help our customers manage our three main types of batteries: § Nickel Cadmium (NiCd) product data sheet § Nickel-Metal Hydride (NiMH) product data sheet § Lithium Ion (Li-ion) product data sheet Please see this page for more information about recycling batteries. ENERGY EFFICIENCY We are improving energy efficiency across our product range and integrating alternative energy into infrastructure deployments, such as base stations that use electricity generated by wind and solar energy and back-up energy generated by hydrogen fuel cells. Our focus on energy
keeps us ahead of market trends and helps our customers reduce their environmental impacts and costs. It provides efficient, low-cost, secure and reliable energy in many applications and allows networks to be deployed in remote locations with limited connection to the electricity grid. PERFORMANCE AND GOALS Where applicable, all our current external power supplies for mobile computing and advanced data capture devices comply with: § U.S. Energy Independence and Security Act of 2007 § California’s appliance efficiency regulations § Australian and New Zealand energy performance requirements for external power supplies § South Korea MEPS regulation § European Commission (No 278/2009) energy performance requirements for external power supplies (level IV) § Swiss energy efficiency requirements The power supplies for the majority of our mobile computers meet the European Union’s Level V efficiency standards, and we are working to approve Level V efficient external power supplies throughout our entire portfolio. We ship all of our products for the enterprise sector with energy-saving settings enabled. CARBON FOOTPRINT OF OUR PRODUCTS Carbon footprinting helps us to understand the most effective way to reduce carbon dioxide emissions associated with our products. It also enables us to respond to the increasing number of data requests from customers trying to understand the impacts of their supply chain. Below are the results of our comparative partial lifecycle assessments (LCAs) for key products.
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ENTERPRISE MOBILITY
Bar Code Scanner Manufacturing Use Transport 73% 25% 2% Handheld Mobile Computer 77% 22% 1%
The majority of the lifecycle CO2 emissions associated with the barcode scanner (73 percent) and handheld computer (77 percent) used in the assessment result from manufacturing, largely due to the complexity of the devices. The use phase is less significant when compared to some of our other products as the devices are mostly operated sporadically. PUBLIC SAFETY
Portable Radio Manufacturing Use Transport 37% 53% 10% Base Station 2.13% 97.81% 0.06%
For the transportation phase, both inbound and outbound logistics are included. The assessments do not include the impact of accessories, packaging and user guides, and exclude the impacts of the end-of-life phase. Available data for recycling and disposal vary widely, and we are analyzing the current research to determine the most accurate assumptions. Motorola Solutions uses a third-party laboratory to complete LCAs of its products that follow the ISO 14040 and PAS 2050 LCA standards. The assessments were calculated using data collected from our manufacturing facilities, along with secondary data estimated using a thirdparty software tool. Results of LCAs are dependent on the calculation method, scoping and assumptions used. The mobile communications devices industry does not yet have commonly agreed on assessment criteria, which mean it is not always appropriate to compare LCAs conducted by different organizations.
The use phase is the most significant element of the carbon footprint for the portable radio (53 percent) used in the assessment, although manufacturing impacts also are significant (37 percent). Ninety-eight percent of the lifecycle impacts of the public safety base station used in this assessment occur during use. The equipment is often continuously in use, and each base station handles a large amount of data. A high-use phase value is not unexpected when looking at the long life and functionality of base station equipment. Background on our lifecycle assessments The above analysis focuses on the partial lifecycle impact (manufacturing, transport and use) of typical Motorola Solutions products from 2008 and 2009. In the calculations, we conservatively assume the following useful lifetimes: Base station – 7 years Handheld computer – 7 years Bar code scanner – 7 years Portable radio – 10 years
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INNOVATING FOR A SMARTER WORLD Information and communications technology (ICT) equipment, like most goods, has some adverse environmental impacts. However, efficiency and productivity gains provided by this equipment also have significant environmental benefits that often may be overlooked. ICT could reduce global CO2 emissions by 15 percent and save industry $750 billion in annual energy costs by 2020, according to research by The Climate Group (a non-profit) and Global e-Sustainability Initiative (GeSI), an industry group. The SMART 2020 report says the largest savings will be achieved by applying ICT to infrastructure and industry, particularly in buildings, logistics, electricity grids and motor systems. Using our technology, our customers are making their businesses more efficient and shrinking their environmental footprints. Here are some examples: § Our IMPRES™ batteries can be charged 150 more times than a standard battery, lasting 43 percent longer and reducing the number of batteries customers need to buy over the life of the product. § Our mobile computers, enterprise digital assistants, radio frequency identification
§
§
§
§
§
(RFID) handheld terminals and bar-code mobile terminal scanners help streamline supply chains, operations and distribution, saving time and improving asset efficiency. Our GPS and other logistics products help drivers navigate the most efficient routes possible—reducing fuel costs and CO2 emissions. Our mobile computers cut wasted time and fossil fuel use by empowering mobile workers and first responders with the ability to capture and exchange critical information remotely. Our Mobility Services Platform lets IT personnel update, troubleshoot and maintain all mobile devices from their desks— eliminating unnecessary travel, shipping and delays. Our TETRA MTS base stations are highly energy efficient, using approximately 100 watts, or less than a light bulb, bringing huge energy and cost savings for carriers upgrading their networks. Our IP-based virtual core architecture dramatically reduces the number of routers and servers needed by our ASTRO® and TETRA first responder networks. This hardware reduction results in significantly less energy used over the life of the systems.
INTEGRATING ALTERNATIVE ENERGY SOURCES Fuel cells for backup power on TETRA base stations Motorola Solutions has deployed the largest-ever number of TETRA base stations using hydrogen fuel cells for backup power. This demonstrates that alternative fuels can be used effectively to support the high reliability demands of public safety networks. The fuel cells replace diesel generators that emit greenhouse gases, take longer to start up, are less reliable and require more maintenance. As well as offering efficiency and reliability, fuel cells also have environmental benefits as they produce little noise, reduce the risk of spills and contamination, and create no local air emissions, only water vapor.
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Wind- and solar-powered radio services for first responders Motorola Solutions was contracted to provide radio services for police, security, fire and ambulance crews serving military bases and a NASA facility located across 3,200 square miles of desert in the United States. The initial system consisted of 10 sites, including one that was particularly inaccessible. Faced with prohibitively high costs to bring power lines to the site, Motorola Solutions drew on its significant experience of powering remote locations using off-grid energy. Four wind turbines and an array of solar panels provide all the system’s power, avoiding the need to build power lines or a road to bring fuel to the site. Independence from the grid means the base station will continue to operate during power outages. This alternative power system is highly reliable and saves money by lowering energy costs, as well as eliminating the high price of connecting the site to the grid.
PACKAGING We are reducing the weight and volume of our product packaging, offering bulk solutions to minimize shipping volume and costs, and expanding our use of recycled materials. For example, we’re starting to introduce a new starch-based packaging material in place of a petroleum-based, polyethylene foam cushioning. The new packaging is recyclable and biodegradable and, in just its first implementation, is expected to reduce foam packaging material by 6,878 cubic feet and corrugated packaging material by 85,000 square feet. In addition, the new packaging solution saves factory floor space and reduces shipping volume. For another product, we developed a customerspecific bulk packaging design that we expect will reduce packaging and printed material by more than 160,000 square feet. The new bulk solution lowers material costs, reduces shipping volume and reduces waste for our customer. All new and many existing products use packaging marking and materials that comply with regulations and industry standards, which aim to improve the environmental performance of packaging and prevent waste. Our packaging materials are stamped with internationally recognized recycling symbols. Where practical we specify minimum content of post-consumer recycled content to further promote recycling.
Wherever possible, we aim to reduce environmental impacts from freight packaging by: § Increasing packaging density, such as more products per case § Double stacking pallets on each shipment § Using cardboard boxes instead of wood crates to reduce weight CONSOLIDATING SHIPMENTS We are improving product packaging by: § Reducing product packaging to minimize bulk volume of shipments to customers § Providing alternative bulk packaging to customers § Ensuring all packaging materials are identified with internationally recognized symbols to facilitate recycling § Establishing a scorecard to assess the entire supply chain in implementation of green packaging initiatives It is not always possible to remove all printed manuals due to customer requirements and regulations mandating the inclusion of safety instructions in product boxes. However, where possible we replace printed manuals with online instructions. This can significantly reduce the size of the product box as well as the packaging and energy used in transportation.
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RECYCLING We operate take-back programs on our own and in partnership with customers, retailers, recyclers and governments. By law, we are required to take back and recycle our products in the European Union and the European Economic Area under the Waste Electrical and Electronic Equipment Directive (WEEE) and in various other jurisdictions on a product-by-product basis. Our commitment goes beyond legislation. For example, we operate a take-back program in the United States and Canada for government and public safety equipment and products for the enterprise market such as mobile computers and barcode scanners. Customers can use an online booking system to PERFORMANCE
request collection of equipment. We continue to expand the program to other countries. Our products are designed to have a long useful life and to withstand extreme working conditions and environments. Customers often use our products for 12 or more years. Such durability helps reduce demand for raw materials. Unlike consumer products, these devices often have secure technology, and many customers prefer to manage disposal of these devices to ensure protection of data. However, Motorola Solutions can help customers recycle their products in a secure and environmentally friendly manner. Learn more about our take-back program.
HOW WE HANDLE EQUIPMENT RETURNS
Specialist companies process the equipment received through our takeback programs for reuse, recycling of parts and materials and, as a last resort, disposal in a safe and responsible manner. We ensure that our recycling suppliers comply with all regulatory requirements for disposal of electronic equipment and follow Motorola Solutions and industry standards. Like all suppliers, recyclers must abide by our supplier code of conduct. We give suppliers specific instructions on how to break down different types of equipment. If suppliers are unable themselves to recycle the equipment in the specified manner, they must observe it being safely destroyed by a licensed third party. We audit all potential new recycling suppliers before they are contracted, to ensure they meet our standards. We promote industry standards such as R2 and eStewards. We specify in contracts that electronic equipment must not be shipped to developing countries for disposal. If we have concerns that equipment will not be handled correctly in the country where it is collected, we will ship it to an alternative location. For example, equipment collected in some sub-Saharan African countries is processed in the U.K.
In 2012, we collected more than 620 tonnes of electronic equipment waste for recycling. This includes: § Take-back programs, both regulated and voluntary § Internal electronics recycling efforts § External electronics recycling events sponsored by Motorola Solutions Our figures do not include electronics recycled through other industry or partnership programs. Global Take-Back and Recycling Programs
2008 Tonnes 2560 2009 5162 2010 3904 2011† 1050 2012 620
HOW TO RECYCLE MOTOROLA PRODUCTS We run take-back initiatives around the world. Please visit our recycling page to learn more about how to recycle Motorola Solutions equipment, batteries and all other products.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 31
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SUPPLIERS
High labor and environmental standards in our supply chain strengthen both Motorola Solutions and our suppliers. We attach the same level of importance to managing our suppliers as we do to our own operations, and we work continually to improve conditions where necessary. Upholding high standards is essential in maintaining the quality of our products and success of our business. Collaboration with our industry peers is central to our approach. In 2012, our participation in the Global e-Sustainability Initiative (GeSI) industry organization, and our co-leadership of its supply chain working group, helped us advance our supply chain management, while simultaneously building the capabilities of our suppliers to manage their environmental and social performance. A particular area of focus is the work we are doing with our industry peers to improve the traceability of metals used in our products that are mined in the Democratic Republic of Congo (DRC). Motorola Solutions’ leadership in launching the Solutions for Hope Project has resulted in the establishment of a process for responsible sourcing of metals from the DRC. As of Dec. 31, 2012, eight leading electronics manufacturers, one automotive component manufacturer and an additional conflict-freecertified tantalum smelter have joined the project, in addition to the five founding participants. These efforts benefit all parties. We benefit from the high performance of efficient, responsible suppliers, and suppliers provide a much-needed boost to local economies. Economic opportunities in less-developed countries are enhanced by our suppliers, who create jobs, pay taxes and purchase local services. SUPPLIER CODE OF CONDUCT Motorola Solutions’ supplier code of conduct describes our corporate responsibility requirements for our suppliers. These requirements are consistent with the core tenets of the International Labour Organization's fundamental conventions and the United Nations Universal Declaration of Human Rights. It is Motorola Solutions’ policy to conduct business in compliance with the law and widely accepted norms of fairness and human decency (see Motorola Solutions code of business conduct), and we require our suppliers to act similarly. We also expect our suppliers to adhere to our human rights policy. As a condition of doing business with Motorola Solutions, we expect suppliers to conform to these requirements and expect their sources in the supply chain to do so as well. We assess conformance to these requirements and consider a supplier's progress in meeting these requirements and their ongoing performance in making sourcing decisions.
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Suppliers are expected to correct non-conformance issues identified during assessments. We want to work with our suppliers to improve conditions, because the situation for workers can deteriorate if we simply terminate contracts. If a supplier refuses or is unable to correct the non-conformance to our satisfaction, we will terminate the relationship as a last resort. Our requirements for supplier business conduct are: I. COMPLIANCE
Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. To enable us to evaluate supplier components and products for conflict-free status, if requested, suppliers must provide disclosures as outlined in the industry developed Conflict Minerals Reporting Template. VI. NO HARSH OR INHUMANE TREATMENT
Suppliers will maintain compliance systems and be able to demonstrate a satisfactory record of compliance with the law in their business conduct. II. ANTI-CORRUPTION
Suppliers will prohibit the physical abuse and harassment of employees, as well as the threat of either. VII. FREELY CHOSEN EMPLOYMENT
Suppliers will conduct their businesses without engaging in corrupt practices, including public or private bribery or kickbacks. Suppliers will maintain integrity, transparency and accuracy in corporate record keeping. III. NO UNFAIR BUSINESS PRACTICES
Suppliers will act with integrity and lawfully in the proper handling of competitive data, proprietary information and other intellectual property, and comply with legal requirements regarding fair competition, antitrust, and accurate and truthful marketing. IV. ANTI-DISCRIMINATION
Suppliers will not use forced, prison or indentured labor, including debt bondage. Suppliers will ensure that terms of employment are voluntary. If a supplier recruits contract or migrant workers, the supplier will pay agency recruitment fees and will ensure there are no unreasonable employment or relocation expenses. Suppliers will not require any worker to remain in employment for any period of time against his or her will, or adopt practices that restrict worker's ability to terminate employment. Workers will not be required to lodge "deposits" or hand over government-issued identification, passports or work permits as a condition of employment, unless required by law. VIII. NO CHILD LABOR
Suppliers will employ workers on the basis of their ability to do the job, rather than on the basis of their personal characteristics, conditions or beliefs. V. CONFLICT MINERALS
Suppliers will ensure that the materials (tin, tantalum, tungsten and gold) used in components and products supplied are conflict-free. Suppliers must ensure the procurement of these metals does not directly or indirectly finance or benefit illegal armed groups through mining or mineral trading. Suppliers are to establish policies, due diligence frameworks and management systems, consistent with the OECD Due Diligence Guidance for
Suppliers will ensure that their hiring practices are in conformance with International Labor Organization (ILO) Conventions for minimum age (Convention 138) and child labor (Convention 182). Suppliers are encouraged to develop lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet the minimum age requirements. Workers under the age of 18 should not perform hazardous work and should be restricted from night work if it interferes with educational needs.
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IX.
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Suppliers will recognize the right of workers to join or to refrain from joining associations of their own choosing and the right to collective bargaining, unless otherwise prohibited by law. In all cases, worker rights to open communication, direct engagement, and humane and equitable treatment must be respected. X. FAIR WORKING HOURS
Environmentally Preferred Products: Motorola Solutions values environmentally preferred products. We work with and encourage our suppliers to create products that are energy efficient, highly recyclable and contain significant amounts of recycled materials and low amounts of hazardous materials. To enable us to evaluate supplier components and products for environmental performance, suppliers must provide material disclosures as outlined in our controlled and reportable materials disclosure process. Ozone-Depleting Substances: It is Motorola Solutions’ policy to eliminate from our products any components—including components provided by our suppliers—that contain or that are manufactured with a process that uses any Class I ozone-depleting substance. As outlined in the Internal Revenue Service's Publication 510, the U.S. government imposes an environmental tax on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Suppliers need to provide certification that products imported into the U.S. do not contain or are not manufactured with a process that uses any Class I ozone-depleting chemicals. XIV. MANAGEMENT SYSTEM
While it is understood that overtime is often required, suppliers will manage operations in compliance with the law and ensure that overtime does not exceed levels that create inhumane working conditions. Suppliers will not require, on a regularly scheduled basis, work in excess of 60 hours per week or in excess of six consecutive days without a rest day. XI. WAGES AND BENEFITS
Wages and benefits paid will meet, at a minimum, applicable legal requirements. In any event, wages and benefits should be enough to meet basic needs. For each pay period, the supplier will provide workers with an understandable wage statement that includes sufficient information to verify accurate compensation for work performed. Suppliers will not permit deductions from wages as a disciplinary measure. XII. SAFE AND HEALTHY WORKING CONDITIONS
Suppliers will operate a safe and healthy work environment. Suppliers that provide housing or eating facilities will operate and maintain them in a safe, sanitary and dignified manner. XIII. ENVIRONMENTAL SUSTAINABILITY
Suppliers shall adopt or establish a management system that supports the content of this code. The management system will be designed to ensure (a) compliance with applicable laws, regulations and customer requirements related to the supplier's operations and products; (b) conformance with this code; and (c) identification and mitigation of operational risks related to the areas covered by this code. The management system should also drive continual improvement. MONITORING Monitoring helps identify suppliers whose practices do not align with our values and policies. It also raises awareness of our requirements and enables us to target opportunities to improve standards by taking corrective action. We focus our monitoring program on directmaterials suppliers that pose a high risk and those
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Environmental Management System: Suppliers of goods will have an Environmental Management System (EMS) in accordance with ISO 14001 or equivalent. The EMS must be implemented and functioning. Third-party registration is strongly recommended but not required.
CORPORATE RESPONSIBILITY REPORT SUPPLIERS
with which we want to establish deeper, longerterm relationships. We assess potential and existing suppliers for conformance with our supplier code of conduct and investigate reports of potential corporate responsibility issues from internal and external sources. While monitoring is important, we believe that lasting improvements will be achieved only if suppliers have the capability to manage worker rights and environmental impacts themselves. MONITORING PROCESS We take a risk-based approach to supplier monitoring using our supplier engagement model based on EICC and GeSI industry efforts. We require our suppliers to provide information on their labor and environmental practices. In 2012, we gathered, analyzed and managed such information via E-TASC, an online self-assessment tool, which enabled us to assess risks posed by a supplier, identify areas for improvement and target our site audits. Detailed onsite audits are conducted by a third-party firm commissioned by Motorola Solutions. We decide which facilities to audit based on information collected through self-assessments, specific reports made to our EthicsLine and other reporting channels, along with risk factors such as activity, location and reputation. Following the audit, we provide feedback to suppliers and work with them to correct the issues identified. We may use a follow-up audit, conducted by a third party or our supply chain team, to verify that suppliers have made the necessary improvements. PROGRESS IN APPLYING COMMON INDUSTRY TOOLS During 2012, 120 suppliers completed selfassessment questionnaires and shared information for 189 facilities. Over the past two years, more than 50 percent of our suppliers (based on spend) had completed a self-assessment questionnaire and received feedback.
RESPONDING TO FINDINGS Motorola Solutions has established four levels of severity for issues identified through monitoring: § PRIORITY RED: Severe issues that require immediate escalation to our senior management, including child labor, forced labor, slavery, debt labor, illegal dumping of hazardous materials, use of minerals associated with conflict and serious sanitary, health and safety conditions § PRIORITY ONE: Legal compliance issues or other issues that represent significant risk § PRIORITY TWO: Non-compliance with contractual terms, our expectations or other applicable codes or standards § PRIORITY THREE: Opportunities for improvement We want our suppliers to succeed, and we prefer to work with them to correct non-conformance issues identified in onsite audits. In serious cases, we will place the supplier on “new business hold” — meaning no new business will be placed until the issue is resolved. If a supplier refuses or is unable to cooperate, we will terminate the relationship as a last resort. For Priority Red, we require immediate containment actions to prevent the issue from worsening and to mitigate the negative impact. We require corrective actions for issues at all levels except Priority Three. We ask suppliers to provide a date for completion and work with them until all issues are resolved. These deadlines are set on a case-bycase basis, and it may take several months to resolve the most complex issues. Since implementing our supplier code of conduct in 2003, we have not terminated a contract solely because of corporate responsibility issues. We have, however, refused to enter relationships with new suppliers for this reason. MANAGEMENT REVIEWS We use management reviews to track progress against our supply chain goals. Each quarter, senior procurement managers assess progress against a
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scorecard, which includes metrics for the number of open and closed supplier audit issues. Additionally, our executive committee receives quarterly updates on the program, and our CEO reviews the program annually. BEYOND TIER-ONE SUPPLIERS Through our supplier agreements, we require our tier-one suppliers (suppliers from which we buy directly) to monitor the corporate responsibility performance of their suppliers. We also require them to provide a list of their suppliers (our tiertwo suppliers) on request. Tier-two suppliers are not included in our regular audit schedule, although we may take part in joint audits with our tier-one suppliers in response to specific reports of issues at their suppliers. PERFORMANCE AND GOALS In 2012, we conducted 14 site audits of Motorola Solutions suppliers based on the reviews of selfassessment questionnaires. The audits were in China, the Czech Republic, Japan, Korea, Malaysia, Mexico and Singapore. As part of our focus on capability building, we are using the knowledge gained through auditing to develop training programs tailored to match the needs of individual countries. We held nine training sessions in 2012 to help suppliers understand our expectations and standards and develop the skills to apply these in their factories. Most Common Supplier Audit Findings in 2012
Child labor avoidance Risk assessment and risk management Occupational injury and illness Working hours Wages and benefits Emergency preparedness 8 8 9 21 8 14
Supplier Corporate Responsibility Goals Goals for 2012 Continue risk-based assessment program. Progress in 2012 We completed 14 audits as a result of our riskbased assessment program. Plans for 2013 § Continue risk-based assessment program, with a focus on driving audits for high-risk suppliers using self-assessment questionnaires and reports of issues § Ensure that suppliers accounting for 75 percent of our spend complete a self-assessment questionnaire at least every two years § Conduct four supplier training sessions Detailed Audit Findings
Type of Supplier Audited Tier 1 – Part/component manufacturer Tier 1 – Electronic manufacturing process / original design manufacturer Tier 2 Total 10 4 0 14
Reason for Audit Planned Issue response New suppliers Follow up 10 1 3 0
Number of Issues Identified
Ethics Business integrity and no improper advantage Disclosure of information Protection of intellectual property Protection of identity 1 1 1 1
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Ethics Fair business, advertising and competition Community engagement 1 0
Management System Performance objectives with implementation plan and measures Training Communication 4 2 1 0 5 1 2 154 97%
Labor Freely chosen employment Child labor avoidance Underage workers Protection of workers aged 16 and 17 Working hours Wages and benefits Humane treatment Non-discrimination Freedom of association 4 8 0 0 21 8 1 3 4
Worker feedback and participation Audits and assessments Corrective action process Documentation and records TOTAL – ALL AUDITS Percent of supplier issues closed/resolved
AUDIT FINDINGS ANALYSIS Our audits in 2012 identified the findings below. We are working with the suppliers to resolve any issues identified. Freely Chosen Employment In 2012, we identified four issues related to freely chosen employment. The issues primarily related to holding of foreign contract workers’ passports, restriction of workers’ mobility at work, lack of formal terms and conditions in worker contracts, and lack of policies or procedures for the management of foreign contract workers by labor brokers. Child Labor Avoidance
Health and Safety Occupational safety Emergency preparedness Occupational injury and illness Industrial hygiene Physically demanding work Machine safeguarding Dormitory and canteen 4 14 9 5 4 4 5
Environment Environmental permits and reporting Pollution prevention Hazardous substances Wastewater and solid waste Air emissions Product content restrictions 4 1 8 4 2 0
The eight issues relating to child labor avoidance related to lack of policies or procedures in place at a facility to verify the age of workers. No under-aged workers were identified in audits. Working Hours Similar to prior years, cases of excessive or higher than legally permitted working hours were one of the most common findings of the onsite audits conducted in 2012, with 21instances identified. We measure suppliers’ working hours against our supplier code, industry norms and applicable legal requirements. This means that a single supplier can have multiple working hours-related findings.
Management System Company commitment Management accountability and responsibility Legal and customer requirements Risk assessment and risk management 2 5 0 8
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Corrective actions to reduce working hours continue to be a significant challenge for many factories in China that need to balance workers’ monetary needs, availability of labor and labor standards with production requirements. In 2012, Motorola Solutions continued its approach of monitoring suppliers’ progress in reducing working hours according to approved action plans. Wages/Benefits There were eight findings relating to incorrect payment of wages and benefits in 2012. The most common findings related to miscalculation of wages for overtime hours and the absence of a comprehensive pay statement to help workers understand their compensation. Humane Treatment There was one audit finding related to humane treatment. The findings involved lack of written rules and regulations regarding disciplinary procedures and lack of training for supervisors in this area; lack of procedures to investigate reports of inhumane treatment against workers; the use of fines in the factory; no written grievance procedures; and no policies and procedures for sick leave and maternity leave. Non-discrimination The three non-discrimination findings related to a lack of written policies on non-discrimination and absence of written grievance procedures. Freedom of Association There were four findings in this area, which involved a lack of written policies and procedures addressing freedom of association. Occupational Safety There were four findings in the area of occupational safety, which involved an absence of or improper use of personal protection equipment. Findings also related to lack of proper training in chemical handling, chemical exposure and emergency response.
Emergency Preparedness There were 14 findings relating to emergency preparedness, making it the one of the most common findings. Deficiencies identified included insufficient fire or evacuation drills, blocked or locked exits; blocked or missing fire extinguishers; lack of proper eyewash stations; and lack of fire exit signage and/or exit lighting. Most suppliers would hold drills during day working hours only, so second shift workers did not benefit from the drills. Findings also related to little or no contingency planning and or training for workers on how to respond to an incident. Occupational Injury and Illness Of the nine occupational injury and illness findings, most related to general safety issues including lack of programs, improper training, worker exposure, lack of personal protection equipment and chemical handling. Hazardous Substances There were a total of eight instances identified. The majority of these findings were related to improper storage of chemicals, the absence of proper secondary containment to prevent spills, lack of proper chemical data sheets and the use of unlicensed waste disposal vendors. Management Accountability and Responsibility There were five findings relating to management accountability and responsibility. These involved lack of formal management systems, goals, senior management involvement and training on established policies and procedures. Risk Assessment and Risk Management There were eight findings related to risk assessment and management. These findings were a result of poor planning and the lack of risk assessment on the part of the supplier and a failure to provide training to the workers on how to respond to an incident. Most suppliers did not perform the required job risk assessments associated with facility processes and worker operations.
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Training We help our suppliers resolve issues identified during the monitoring process, which encourages them to develop the awareness, systems and skills to deal directly with corporate responsibility issues. However, we recognize the limitations of monitoring and realize that lasting improvements will be achieved only if suppliers have the capability to manage worker rights and environmental impacts themselves. We held nine training sessions in 2012 to help suppliers understand our expectations and standards and develop the skills to apply these in their factories.
The training went beyond raising awareness of our supplier code by providing guidance on how suppliers can establish internal corporate responsibility and monitoring programs for their own supply chains. Representatives from more than 321 supplier companies attended and participated in the interactive training sessions as well as Q&A sessions with group discussions. Through our participation in joint EICC and GeSI activities, we developed new training materials, including a course to raise awareness of the importance of ethical purchasing among procurement professionals and a module aimed at factory managers.
CONFLICT MINERALS UPDATE
Motorola Solutions is extremely concerned about the social and environmental conditions in some mines that supply metals to the electronics industry. The longstanding civil war in the eastern provinces of the Democratic Republic of Congo (DRC) has impacted many mines, which are forced to contribute revenue to the rebel forces associated with brutal human rights abuse. Mining activities that fuel conflict are unacceptable. Together with our peers, we are working to support the development and implementation of a tracking and validation system to ensure these raw materials come from responsible sources free from association with armed conflict.
CONFLICT MINERALS UPDATE Our products contain various metals, including tantalum, tin, tungsten and gold, which originate in mines around the world. Any association with financing armed conflict is unacceptable to us. We also require high labor and environmental standards and make concerted efforts to drive improvements. Since we do not procure these materials directly from mines, we expect our suppliers to apply our standards to their own suppliers and propagate good standards throughout the electronics supply
chain. For more than five years we had asked our tantalum capacitor suppliers to certify in writing that they were not sourcing conflict materials from the Democratic Republic of Congo (DRC). While well intentioned, this initiative alone was not sufficient to determine the true origin of the minerals in our products. Our priority is to lend our support to work to establish a credible, independent system that enables companies to verify the sources of the metals in their products while still allowing legitimate, verified conflict-free minerals from the DRC to enter our supply chain. Motorola Solutions
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supports the development of regulations and standards that facilitate this goal. U.S. LEGISLATION ON CONFLICT MINERALS The Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in July 2010. A provision of this law requires companies to report to the Securities and Exchange Commission (SEC) and disclose on their websites whether any tin, tantalum, tungsten or gold are used in their products and, if so, whether any of these materials originate in the DRC or its adjoining countries. The law applies to publicly traded manufacturing companies that use certain metals in their products. During 2011, we met with representatives of the SEC along with the nongovernmental organization PACT to brief them on the Solutions for Hope project and how the proposed regulation will affect it. We also met with the Government Accountability Office and Senate and House staff to discuss issues around conflict minerals and the progress made through the Solutions for Hope approach. The SEC issued its final rules in August 2012. The new rule requires companies using materials from the DRC and adjoining countries to describe the due diligence steps they have taken to ensure the metals are from responsible sources. RECENT PROGRESS Independent Efforts Motorola Solutions has been working to identify which of its products could potentially contain conflict-related minerals. Our rigorous material declaration process has enabled us to better understand the applications of many different types of metals, including metals associated with the conflict in the DRC and included in the recent U.S. legislation on conflict minerals. Motorola Solutions is working to increase awareness of the conflict minerals issue among the electronics industry and other sectors. We have updated our supplier training and communication materials and have welcomed several opportunities to engage through industry groups
and supply chain meetings. We have sponsored several conflict minerals meetings to raise awareness in other industries, participated in panels at conferences and workshops, and led sessions at OECD meetings to help develop the OECD Due Diligence Guidance. We continue to include a clause in our standard supplier contract stating that we will source only products that are free from minerals that directly or indirectly finance or benefit illegally armed groups Solutions for Hope One of the most encouraging developments of 2012 was the progress achieved by the Solutions for Hope project, a pilot program to create a closed-pipe system of mining conflict-free tantalum from the DRC. Motorola Solutions helped create the initiative in partnership with a major supplier of electronic capacitors. Capacitors are made with tantalum, a proportion of which is mined in the DRC. The Dodd-Frank Act may have the unintended consequence of creating a de facto ban on trade in minerals from the DRC. Millions of people in the DRC depend on artisanal mining, many operating in regions where conflict is not present. Their livelihoods and the economic stability of the region have been threatened by the de facto ban. Solutions for Hope has established a closed-pipe supply line – mine, exporter, processor, component manufacturer and end user – verified as free from interference from armed groups through an independent audit by a former consultant to the United Nations Group of Experts. Tantalum began flowing through the system created by the Solutions for Hope Project in July 2011, and Motorola Solutions was the first company to include the conflict-free capacitors in its products when they became available. Motorola Solutions continues to support the sourcing of conflict-free material from the DRC and Great Lakes Region. In July 2011 and again in January 2012, we visited the DRC to review the operations at the two mine sites that are part of the Solutions for Hope project. As part of the visits we traveled the transport routes of the minerals
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and met with local and provincial governmental representatives. As part of the due diligence process, all points in the process have been visited. This includes the mines, trade route, point of export from the DRC, the smelter and the supplier. Motorola Solutions and its partner worked with stakeholders to evaluate the pilot so that lessons can be embedded in other initiatives and the program can be improved and expanded. As part of the January 2012 visit, an independent auditor validated the Solutions for Hope Project, and it has now moved from a pilot project to a full-scale, ongoing project. We used our findings to help inspire and work with several stakeholders to establish the Conflict Free Tin Initiative (CFTI), which uses the closed-pipe concept to source tin from a mine located in the DRC province of South Kivu. The Solutions for Hope project demonstrated proof of concept, and the CFTI is demonstrating proof of scalability. The model developed for Solutions for Hope can be used by other companies that wish to demonstrate a responsible supply chain while continuing to use DRC-mined minerals. Other Industry Efforts We are an active contributor to other industry efforts to tackle the conflict minerals problem. We believe working together will achieve faster results than tackling these challenges alone. With that in mind, we are preparing our supply chain management processes to best leverage the industry-wide approach. Motorola Solutions coleads the EICC and GeSI extractives workgroup, which has made progress in driving greater transparency in the electronics industry supply chain. In 2010, Motorola supported the ITRI Tin Supply Chain Initiative (iTSCi) pilot project that allowed for tracking/tracing of materials from the mine to the point of export. The Motorola Foundation provided a $30,000 grant to support ITRI’s traceability work. The iTSCi process represented an important first step toward establishing a program to enable the responsible sourcing of materials from the region. Motorola participated in an iTSCi fact-finding mission to the DRC and Rwanda to better
understand the conditions on the ground. The delegation met with numerous provincial government officials, visited multiple mineral trading houses, toured a tin and gold mine and met with local non-governmental organizations in North and South Kivu. In 2011, Motorola Solutions supported and became a founding member of the Public-Private Alliance for Responsible Minerals Trade (PPA). Motorola Solutions serves on the Governance Committee. The PPA aims to bring together key stakeholders to achieve lasting solutions to this issue. The main participants in the PPA are the U.S. government, private sector companies and trade associations from a range of industries, NGOs and the International Conference on the African Great Lakes Region (ICGLR). In 2012, we participated in the PPA’s regional alignment meeting, which brought together the main participants from the region that are implementing the necessary systems to help verify and validate that the minerals from that region are conflict-free. The PPA will focus on helping to grow existing programs and systems for businesses to source minerals from mines that have been certified as conflict-free and will provide a platform for coordination and dialogue among the government, industry and civil society participants. PLANS AND GOALS We will continue to champion more responsible metal sourcing by engaging our suppliers, by participating in industry events and by participating in collaborative efforts with other stakeholders, including mining companies, NGOs, labor organizations involved in mining, other industrial sectors that purchase and use metals, the governments and multi-government organizations with jurisdiction over these issues, and end users. As of 2012, we have initiated a pilot program to assess our suppliers using industry tools and standards developed by the EICC and GeSI for identifying and reporting the origins of conflict minerals in preparation for compliance with the SEC reporting requirement in 2013. We also will continue to support other industry efforts to develop closedpipe systems for mining conflict-free minerals.
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MATERIALS DISCLOSURE PROCESS We require our suppliers to disclose an extensive list of Motorola Solutions’ banned, controlled and reportable substances as well as request recycled material content for each part supplied to Motorola Solutions. We do this to fully understand and track the material content of our products, comply with regulations, prepare for future regulations and control and improve the environmental profile of our products. Motorola Solutions has taken a proactive approach and compiled a list of 65 substances or substance groups targeted for exclusion, reduction or reporting during the design and manufacture of its products. The list is divided into three sections: § Banned substances are not allowed for use in any Motorola Solutions product at any level § Controlled substances are limited for use in manufacturing processes or certain product applications with use limitations typically defined by national or international environmental regulations § Reportable substances are not currently banned or controlled for use but may be in the future, or we have identified the need to understand their use as part of our environmentally conscious design process or for end-of-life management OZONE-DEPLETING SUBSTANCES Materials suppliers to Motorola Solutions are required to certify that products imported into the United States do not contain or are not manufactured with processes that use any Class I ozone-depleting chemicals (ODCs). To learn about this process, please review the Motorola Supplier ODC certification form. Our reporting requirements help us to comply with current laws, assess the impacts of future requirements and identify better alternatives to hazardous substances in our products. Learn how to disclose material content to Motorola Solutions.
KEY LEGISLATION Our products are distributed worldwide and are affected by a multitude of legislation — both local and global. Driven by growing concern over the effects of hazardous substances on health and the environment, governments in every region have introduced regulations restricting the sale of products containing certain substances. These cover a broad range of products, including electronics. Motorola Solutions continually monitors worldwide legislation, laws and regulations related to substances. While the regulations may apply only to a particular region or country, as a global company we support harmonization of substance standards. It is critical that our suppliers adhere to the hazardous substance regulations. For a description of key regulations, please see our Materials Disclosure section. RESOURCES AND TRAINING Motorola Solutions requires full disclosure from suppliers on materials and substances of concern, in accordance with the W18 Controlled and Reportable Materials Disclosure Specification. Learn more about our W18 requirements and reporting FAQs. Motorola Solutions provides resources and training to assist our suppliers, including these tools: § Motorola Green Purchasing: W18 and Compliance Connect™ introduction and training § How to replicate items in a Compliance Connect file If you are a supplier and you have questions, contact Motorola Solutions at [email protected]. SUPPLIER DIVERSITY Supplier diversity means ensuring that businesses owned by women and minority groups are included in a company’s supplier selection process.
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In the United States, the government and many of our business customers require that we source from diverse suppliers. Beyond compliance, we recognize that supplier diversity promotes innovation and creativity and allows us to meet the needs of customers and consumers around the world. Our supplier diversity team identifies diversityowned businesses that can potentially bid on procurement opportunities. We have set goals to increase the proportion of our procurement spend with diversity businesses. For inquiries regarding our supplier diversity program, email us at [email protected].
PERFORMANCE AND GOALS Since January 2004, Motorola Solutions has spent more than $3.0 billion with diversity suppliers. In 2012, Motorola Solutions spent 16.2 percent of U.S. federal procurement spend with diversity suppliers. Diversity businesses supplied us with a variety of products and services such as accessories, cables, engineering, logistics, packaging and travel. § Motorola Solutions exceeded its goal for 16 percent of U.S. federal procurement spend to be with diversity suppliers for 2012.
Percent of U.S. Supplier Spend with Tier-One Diversity Suppliers
Motorola, Inc. 2008 U.S. 8.7% 2009 9.2% 2010 12.2% Motorola Solutions 2011† 14.7% 2012 16.2%
SUPPLIER DIVERSITY PLANS In 2013, Motorola Solutions will focus on achieving 16 percent of its U.S. procurement spend with businesses owned by minorities, women, veterans and other recognized diversity businesses.
2012 Goals Achieve 16 percent of U.S. tier-one supply chain spend with diversity suppliers. 2012 Progress In 2012, we spent 16.2 percent of U.S. tier-one supply chain spend with diversity suppliers. 2013 Goals Achieve 16 percent of U.S. tier-one supply chain spend with diversity suppliers.
HOW WE FIND DIVERSE SUPPLIERS We review the databases of the following organizations to identify small and diverse suppliers: § § § § § § National Gay Lesbian Chamber of Commerce National Minority Supplier Development Council U.S. Small Business Administration Women’s Business Enterprise National Council WEConnect International U.S. state and local government certifying agencies for minority-owned, women-owned and disabledowned businesses
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 43
CORPORATE RESPONSIBILITY REPORT SUPPLIERS
DEFINITIONS In the United States, diversity suppliers are defined as businesses that are at least 51 percent owned, operated and controlled by one or more persons who are: § A racial or ethnic minority, including African American, Asian Indian American, Asian Pacific American, Hispanic American or Native American § Female § Gay, lesbian, bi-sexual or transgender § U.S. veteran or U.S. service disabled veteran In other countries, definitions vary. In general, to be considered a racial or ethnic minority, persons must be citizens of the country where their business is headquartered and be of an officially recognized socially or economically disadvantaged ethnic minority group. Additionally, businesses certified as Historically Underutilized Business Zone (HUBZone) by the U.S. Small Business Administration are considered diversity suppliers. IN THE UNITED STATES We promote diversity in tier-one suppliers (those from which we buy directly) and tier-two (those that supply tier-one). We participate in the Technology Industry Group (TIG) with other supplier diversity professionals from U.S.-based telecommunications companies. Through TIG, we advocate the expansion of supplier diversity initiatives among our customers, our peer companies and our suppliers. Outreach We work with diversity suppliers to make sure they are aware of opportunities to supply Motorola Solutions. We are a member of the National Minority Supplier Development Council, WEConnect International and the Women's Business Enterprise National Council, and our supplier diversity manager serves on advisory committees at these organizations.
OUTSIDE THE UNITED STATES We began to expand our supplier diversity programs outside the United States in 2003. Our supply base includes diversity suppliers in China, India, Malaysia, Singapore and South Africa. Before we can establish a supplier diversity program in countries without defined diversity programs, we need to identify the minority groups in that country. This can be a challenge. For example, laws or culture may prohibit asking questions about the ethnicity or gender of the business owner. Some countries have no agreement on how to define a minority group, and other countries have large numbers of different minority groups. For example, China has 55 ethnic minorities. We work with local diversity organizations to identify minority categories and to contact diversity suppliers. In 2008, we became a founding member and provided seed funding to the Minority Supplier Development (MSD) China, which aims to certify ethnic minority-owned businesses in China. We are a member of the National Minority Supplier Development Council’s international advisory committee. The committee is helping to develop organizations in Australia, Canada, China, South Africa and the U.K. that will certify ethnic minority-owned businesses in those countries.
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CORPORATE RESPONSIBILITY REPORT EMPLOYEES
EMPLOYEES
Motorola Solutions works to attract, develop and retain top talent by treating people fairly and providing them with a competitive rewards package. We seek to build an inclusive culture and value diversity of thought and experience. This improves our understanding of markets and enables us to create innovative products to help our customers be their best in the moments that matter. We invest in employees so they can reach their full potential, providing opportunities for professional development at every level. GLOBAL WORKFORCE In 2012, 98 percent of our global workforce of approximately 22,000 employees was full-time, and 2 percent was part-time.
GLOBAL WORKFORCE
6% 21% 47% 26%
TOTAL REVENUE
8% 21% 13% 58%
North America Europe, Middle East, Africa
Asia Pacific Latin America
North America Europe, Middle East, Africa
Asia Pacific Latin America
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CORPORATE RESPONSIBILITY REPORT EMPLOYEES
EMPLOYEE ENGAGEMENT We are committed to building an engaged global workforce. We believe engaged employees take a vested interest in our success and are willing to go the extra mile, achieve goals and perform at their best. Communication is a big part of employee engagement at Motorola Solutions. We communicate regularly with our employees to keep them up-to-date on our business, to encourage their involvement in company activities and to solicit feedback on our performance. We also encourage our employees to communicate with one another through our internal social media channels. Managers play a central role in our employee communications strategy – but we also communicate with our employees in a number of other ways, such as: § § § § § § § § § § Video and email messages from senior leaders Our intranet site Weekly news e-bulletins Town hall meetings and employee focus groups Online Q&A forums and knowledge-sharing communities Onsite TV news stories Trade show blogs and highlights Internal social media including blogs, personal profiles and networking pages External social media such as Facebook and Twitter Idea Space, our virtual marketplace that acts as a repository of creative ideas
social media, job postings, employee referral programs, job fairs and global university partnerships. Once hired, we provide all employees with the opportunity to learn and progress through: § Experience – on-the-job learning § Feedback – personal development through coaching and mentoring § Education – numerous training opportunities PERFORMANCE MANAGEMENT All of our employees participate in our performance management process. In 2012, we made a significant change to this process and eliminated performance ratings for all employees. While we remain a performance-based organization, we realized performance ratings added an unnecessary level of complexity to the process and promoted a culture of evaluation and labels. Instead, we want to foster a culture of coaching and learning that’s consistent with our values and purpose. By eliminating ratings, we’ve strengthened performance management by putting its focus back where it belongs: on regular dialogues between employees and managers that consistently emphasize coaching for improvement and recognition of positive performance. TRAINING AND DEVELOPMENT We know our talent is a competitive advantage. That is why we work hard to hire the best and brightest from around the world and invest in their continuous learning so they can generate the best return for the company. TECHNICAL, SALES AND OTHER FUNCTIONAL TRAINING As the company innovates and launches new products, and as our end-to-end solutions grow in complexity to meet customers’ evolving business needs, employees must constantly grow their technical and sales knowledge. From instructor-led classroom training to virtual instructor-led classes, self-paced e-learning, professional games, mobile learning and social learning, employees are empowered to learn in their preferred styles and mediums. We implemented a new learning
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Additionally, employees are empowered to provide direct feedback to management via face-to-face dialogues, online feedback surveys, lunch and learn sessions, and other more informal employee discussion sessions. TALENT ACQUISITION Identifying the right talent is a top priority for Motorola Solutions. We use a variety of competitive recruiting practices to hire experienced and entry-level talent. These practices include
CORPORATE RESPONSIBILITY REPORT EMPLOYEES
management system and a global learning help desk for all employees, further enhancing their learning experience. To extend the reach of our global corporate library, we licensed a business book summary service. With this service, employees have unlimited access to thousands of business book summaries for download to their computers or mobile devices. The Motorola Solutions Certification Program continued to expand in scope and was rolled out in all regions. The program builds and validates employees’ technical and sales competencies and their ability to effectively serve partners and customers before and after the sale. LEADERSHIP DEVELOPMENT In addition to developing employees’ work skills, it is just as important to develop the right corporate values. At Motorola Solutions, our values govern how we behave and make decisions as an organization. Our Leadership Model defines the eight leadership competencies and behaviors we expect of all Motorola Solutions employees: § § § § § § § § Lead change Think strategically Focus on customers Develop talent Collaborate and influence Execute flawlessly Drive results Demonstrate sound judgment
OTHER EDUCATIONAL PROGRAMS The Motorola Solutions Global Education Assistance Program provides reimbursement to employees for expenses related to taking approved courses that may lead to an academic degree or certificate from a college or university that is accredited or recognized by a reputable official body. The Education Assistance program is a differential investment in Motorola Solutions’ future and is provided to improve the skill sets of select employees who will help drive Motorola Solutions’ success. Degree programs and/or individual courses in the following disciplines will typically qualify for reimbursement under Motorola Solutions’ Global Education Assistance Program. § § § § § § § § Business (i.e., Marketing, Accounting, Finance) Computer Science Engineering Human Resources Logistics/Materials Management Sales/Marketing Technology
In addition, disciplines/courses that may specifically apply to the employee’s current job function, if not listed above, also may be eligible. PERFORMANCE IN 2012 In 2012, we invested $10.1 million globally in training and development. Training evaluation scores – from courseware quality to estimated return on training investment – have consistently been on par with the Metrics that Matter industry benchmark. INCLUSION AND DIVERSITY We recognize innovative ideas and solutions are by-products of a collaborative, inclusive, empowered and supportive environment. Thus, we actively seek, embrace and encourage diversity of thought, attributes, experiences, opinions, cultures and abilities. By celebrating our similarities, while
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Employees have several tools to assess their leadership skills and build leadership development plans, including a self-assessment, behavior checklist and a curriculum of instructor-led and virtual instructor-led courses. We offer a series of leadership development courses that are available to every Motorola Solutions employee. Our internal online leadership portal highlights positive examples of leadership through podcasts, senior leader videos, employee success stories and development planning tips. It also links to other websites that offer leadership development tools and information.
CORPORATE RESPONSIBILITY REPORT EMPLOYEES
leveraging our unique differences, we enable a globally inclusive, high-performing work culture to thrive. We believe our inclusive culture is a main source of our competitive advantage. We focus our internal efforts on: § Leadership development – providing the “right” learning and talent opportunities for everyone § Employee engagement – ensuring employees are highly engaged at every level § Cultural awareness – developing global, cross-cultural competencies We build partnerships with diverse organizations to help us stay current on inclusion and diversity next practices, employee engagement, and recruitment and retention strategies. We currently have partnerships with the following organizations: § American Foundation for the Blind § Career Opportunities for Students with Disabilities § Diversity Best Practices § Hearing Loss Association of America § League of Black Women § National Association of Asian American Professionals § National Society of Hispanic Professionals § National Spinal Cord Injury Association § National Urban League § Out & Equal § Women in Technology International § U.S. Business Leadership Network § YWCA Through the Motorola Solutions Foundation, we support organizations that focus on women and minorities who currently are underrepresented in the science, technology, engineering and math (STEM) disciplines.
OUR BUSINESS COUNCILS Our business councils help reinforce our commitment to inclusion by raising cultural awareness, sponsoring internal events and partnering with external organizations. They also provide professional development opportunities and mentoring to our employees around the world. Currently, we have six business councils, which are all led by Motorola Solutions executives and are open to all employees: § Asian Business Council § Black Business Council § Gay, Lesbian, Bisexual and Transgender Business Council § Latino Business Council § People with Disabilities Business Council § Women’s Business Council PERFORMANCE IN 2012 In 2012, the percentage of females in senior management globally was 15 percent. The percentage of people of color in U.S. senior management (directors and vice presidents) was 14 percent, and the percentage of senior management outside the United States was 21 percent. Workforce Demographics
2010 Senior Management* by Region U.S. and Canada Europe, Middle East and Africa Asia Pacific Latin America Global Senior Management* by Gender Male Female 83% 17% 84% 16% 85% 15% 87% 9% 3% 0% 80% 12% 8% 1% 79% 12% 9% 0% 2011
†
2012
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 48
CORPORATE RESPONSIBILITY REPORT EMPLOYEES
2010 Global Employees by Gender Male Female U.S. Senior Management* by Race Caucasian People of color U.S. Employees by Race Caucasian People of color *Directors and vice presidents 70% 30% 85% 15% 69% 31%
2011
†
2012
Short-Term Incentives and Employee Recognition All of our employees participate in either an annual incentive plan or a sales incentive plan. Our annual incentive plan aligns our employees’ performance with our business goals – and it rewards our employees primarily based on our business results. Top performers also have the potential to earn an additional annual incentive award. The better an employee performs, the greater his or her total annual incentive plan award can be. Our sales incentive plans reward our sales employees when they achieve or exceed key salesrelated goals. In 2012, we paid our employees approximately $325 million through both our annual and sales incentive plans, based on 2011 performance. Our employee recognition program rewards our employees for exceptional behaviors and results. We also offer special recognition awards for technical excellence. Long-Term Incentives and Employee Stock Purchase Plan In 2012, we awarded restricted stock units (RSUs) to our eligible employees. For some employees (including our vice presidents), we continued to award stock options and a cash-based long-term incentive plan. Through our 2012 employee equity grants, we awarded approximately 2.9 million RSUs and stock options to more than 2,300 employees. Our employees also purchased 1.42 million shares of Motorola Solutions stock through our employee stock purchase plan, which provides our employees with a 15 percent discount on purchases of Motorola Solutions stock. Approximately 36 percent of our employees in 29 countries currently participate in our employee stock purchase plan.
70% 30%
70% 30%
87% 13% 70% 30%
86% 14% 71% 29%
TOTAL REWARDS We design our rewards programs to attract, retain and motivate the right people, in the right place, at the right time. We provide our employees with a comprehensive and competitive rewards package, including market-driven base salaries, incentive awards that are based on the overall success of our business and the individual performance of our employees, paid time off, health and wellness programs, and retirement and savings plans. Each year, we review our rewards programs to make sure they are competitive with local market practices in the industries and countries in which we operate. COMPENSATION We share our financial success with our employees by offering compensation packages that are linked to individual and business goals. Our compensation programs provide competitive, performance-based pay through three components: Base Pay Every year, we review local market pay practices to ensure our employees’ base pay is market competitive. In 2012, we offered merit increases and/or cost of living allowances in most countries in which we operate.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 49
CORPORATE RESPONSIBILITY REPORT EMPLOYEES
BENEFITS We provide comprehensive benefits coverage for our employees such as health and wellness programs, retirement and savings plans, life and disability insurance, and commuter benefits. We align our benefit offerings to market standards in each country in which we operate. HEALTH AND WELLNESS PROGRAMS We recognize the importance of good health to our employees and their families. We provide health care coverage or a cash contribution for employees in most countries. We also offer online resources so our employees and their families can learn more about the benefits we provide. We encourage all of our employees to stay fit by promoting the importance of wellness and good nutrition. In the United States, we provide health and wellness programs that vary by location, such as onsite fitness centers and medical clinics, free medical screenings, wellness seminars, health coaching and recreational sports leagues. We also provide healthy food choices and display nutritional information in our cafeterias. We offer dependent and family care programs such as maternity and paternity leave and support, flexible spending accounts for health care and child care, and family resource and referral programs (such as our employee assistance program). Our LIVESMART Challenge enables our U.S. employees to accumulate points when they use preventive health care services and participate in wellness programs such as weight loss and smoking cessation. These employees can earn up to $200 after completing certain requirements in the areas of self-care, nutrition, weight management, exercise, stress management and other health conditions. In addition, they can be reimbursed for either onsite or offsite fitness center memberships. Our U.S. employees also can take an annual health risk questionnaire to assess their lifestyle habits and receive personalized feedback to help improve or maintain their health. If an employee completes this questionnaire, he or
she will qualify for discounted contributions toward his or her medical coverage. RETIREMENT AND SAVINGS In addition to certain statutory plans, we help our employees prepare for their financial future by offering retirement and saving programs in countries where it is competitive to do so. Most of these plans are defined contribution savings programs where we typically offer a company match based on an employee’s contributions to the program. In the United States, we offer our employees education about their retirement options – including financial management programs. We also make dollar-for-dollar contributions on the first four percent of an employee’s eligible compensation he or she contributes to our 401(k) savings plan. If an employee is age 50 or older, he or she can contribute even more to his or her savings plan. LIFE AND DISABILITY We provide opportunities for employees in most countries to protect their financial future with market competitive, company-subsidized disability income and life insurance plans. COMMUTER BENEFITS In the United States, we offer employees the opportunity to purchase public transportation and parking garage vouchers with pre-tax dollars. This helps the environment and helps our employees save money if they travel to work on public transportation. FLEXIBLE WORKING We provide employees with resources to help them integrate their work and personal responsibilities, including flexible work plans and programs to support them through life-changing events. As a global company with a highly distributed workforce, our employees need to work across cultures and time zones. Our iWork program enables our employees to work how, when and where they work best through:
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CORPORATE RESPONSIBILITY REPORT EMPLOYEES
§ Alternate locations (where): working from an alternate site on a regular or occasional basis § Alternate schedules (when): flexible arrival and departure times, compressed work week § Alternate job structures (how): part-time work or job sharing iWork helps us retain employees, attract and recruit talent, increase productivity and reduce costs. It also provides us with greater access to skilled employees no matter where they are located. We provide online training for managers to learn how to work with—and manage—virtual teams. This includes information on geographic sensitivities, such as cultural norms and working across time zones. SUPPORT FOR EMPLOYEES GOING THROUGH LIFE-CHANGING EVENTS We help employees deal with life-changing events through programs that vary from country to country. Examples include time off for new parents, adoption assistance, education assistance, relocation assistance, employee counseling, childcare services, family medical leave, bereavement leave and disability programs. We also sponsor onsite childcare facilities in several of our office locations around the world. SAFETY PROGRAMS We developed our safety programs to eliminate potential safety hazards before injuries and illnesses occur. We identify risks to our employees through our hazard identification and inspection program, and we systematically track non-conformances to ensure that we take corrective action and eliminate root causes. We conduct awareness programs and training so employees can effectively deal with safety risks they may encounter at work. All employees receive the necessary EHS training required to perform their job in compliance with local regulations and our EHS Management System. We use a variety of
methods to promote employee health and safety awareness, including our internal EHS website, blogs, TV monitors, email communications and employee awareness events. All of our employees have the authority and obligation to stop work if they view their work conditions or acts as unsafe. SAFETY RECOGNITION For more than a decade, our Schaumburg, Illinois, U.S., manufacturing facility has earned the highest honor from the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA): the Voluntary Protection Program (VPP) Star award. This prestigious award recognizes sites demonstrating superior safety and health programs. In 2012, our Reynosa, Mexico, manufacturing facility completed the final process to qualify for the Safe Industries certification that is awarded for meeting high safety and health standards as defined by the Mexico Secretariat of Labor (Secretaria del Trabajo). Our Reynosa facility will receive the award in 2013. ERGONOMICS We recognize that ergonomic factors are one of the leading causes of workplace injuries. To help reduce ergonomic injuries, we: § Assess ergonomic hazards § Track and document ergonomic assessments to identify trends § Offer personal ergonomic assessments by health and safety professionals § Provide standardized state-of-the-art ergonomic furniture and accessories § Continually implement improvements in our manufacturing processes to reduce repetitive motion injuries § Provide an ergonomic website that hosts a variety of self-help tools, training materials and resources for employees These actions have contributed to the reduction of ergonomic injuries and reduced the ergonomic assessment time cycle. In 2012, we reduced
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CORPORATE RESPONSIBILITY REPORT EMPLOYEES
ergonomic repetitive motion injuries globally by 1 percent, compared with 2011. PERFORMANCE AND GOALS Our global recordable injury and illness case rate decreased from 0.22 in 2011 to 0.18 in 2012. Due to a stronger focus on reducing risks and the implementation of added proactive programs, Motorola Solutions was able to reduce our recordable injury and illness case rate by 18 percent. Global Recordable Injury and Illness Case Rate
Per 100 Employees 2008 0.20 2009 0.18 2010 015 2011 0.22
†
2012 0.18
CRISIS PREPAREDNESS Crisis plans ensure that we can respond quickly and effectively to emergencies such as terrorist attack, disease outbreak or natural disaster. Our crisis teams test these plans each year to improve coordination, make sure employees are prepared and to discover potential trouble spots before an emergency happens. Our business continuity teams work to ensure any business interruption is kept to a minimum and that we continue to meet our customers’ needs. Each of our critical operations has conducted a business impact analysis and developed recovery strategies.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 52
CORPORATE RESPONSIBILITY REPORT COMMUNITY
COMMUNITY
Our mission to provide the essential communications solutions that connect people, businesses and governments in the moments that matter extends to our volunteer, in-kind and cash support to the communities where we operate. We achieve this by leading and supporting programs that advance education, make communities safer and enhance employee contributions. Our community investment is focused on: § § § § Education Public safety Disaster relief Employee programs engineering and math (STEM) education in the United States and around the world. In 2012, the Motorola Solutions Foundation provided $6.3 million in grants to support science and engineering education, especially for girls and under-represented groups. The programming we support is designed to inspire students to learn about science and generate interest in sciencerelated careers at the national and local level. In the United States, our Innovation Generation grants supported more than 178,000 students and teachers in 2012. Examples of our grants in action: § FIRST Robotics – Global – Motorola was a founding sponsor of the FIRST Robotics Competitions in 1989 and has supported FIRST each year since. The competition involves students working in teams to create robots and then testing them in regional and national FIRST Robotics Competitions. In 2012, the Motorola Solutions Foundation sponsored 160 teams across the United States and
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®
Motorola Solutions and the Motorola Solutions Foundation (our philanthropic arm) support these areas through cash and product donations. Our employees also volunteer their time through the Motorola Solutions Service Corps and participate in charitable-giving programs. In 2012, the Motorola Solutions Foundation provided grants that helped more than 700,000 students, first responders and community members in 37 countries around the world. We also offer use of our facilities for grantees to hold meetings or conferences and provide public relations services to grant recipients regarding their grants. EDUCATION As a company with strong roots in technology and innovation, we feel it is important to support programs that encourage science, technology,
CORPORATE RESPONSIBILITY REPORT COMMUNITY
internationally, and dozens of Motorola Solutions volunteers worked with students. § Rochester Institute of Technology – United States – Nineteen deaf and hard of hearing girls participated in a week-long summer camp to learn the necessary skills to build their own computers. This program is designed to increase enrollment of deaf students in postsecondary STEM degree programs. § University of Illinois at UrbanaChampaign/Hoeft Technology & Management Program – United States – The Undergraduate Technology & Management minor degree program bridges the gap between engineering and business education with interdisciplinary course work and hands-on experience with real-world business problems, corporate engagement and leadership. Fifty-four students are admitted to the program each spring. During the 2011-2012 school year, 100 percent of the participants completed the first year of the curriculum and began their second year in the fall of 2012. Forty-nine students completed the minor degree in 2012, and 34 students secured full-time placement. Six students elected to pursue a master’s degree, and eight students returned to campus to complete their engineering undergraduate degrees. § Stem Collaborative at Stony Brook University – United States – The STEM Collaborative led by Stony Brook University works to address issues involving gender inequity and the perception held by many girls that engineering and computer science are male domains. The program aims to increase the number of female students pursuing degrees in engineering and technology, with a focus on girls from underrepresented communities. The STEM Collaborative includes hands-on after-school programs for middle school and high school girls, as well as school- and communitybased STEM Tech Clubs where girls work
with college students, teachers and tech industry volunteers on a real-world engineering project in their community. Since 2009, Stony Brook’s TechPrep afterschool program for middle school girls has served more than 1,657 girls with 90 percent to 65 percent retention rates for each consecutive year’s cohort. § Museum of Science and Industry Institute for Quality Science Teaching – United States – The Museum of Science and Industry Institute for Quality Science Teaching (IQST) offers professional development accredited coursework for teachers in life science, environmental science, physical science and earth science. Through a variety of in-depth workshops, summer programs and events, teachers learn how to use inquiry-based and hands-on/minds-on science curriculum inside and outside the classroom to improve students’ performance in science. In collaboration with the Illinois Institute of Technology (IIT), teachers can enroll in IQST and earn credit toward the required MiddleGrades Science Endorsement from the Illinois State Board of Education and/or a Master of Science Education degree through IIT within two years. In the past year, 128 teachers from 58 schools completed the year-long program, and seven enrolled in their first year of the master’s program at IIT. Since IQST began in 2006, 558 teachers from 228 schools have participated in both full-year programs and summer workshops. Fifty percent of those teachers participated in more than one course, and 10 percent completed three or more courses. Eighty-six schools have sent teachers for more than two years, and about 25 percent have sent teachers to IQST for more than three years. § Fundación Omar Dengo – Costa Rica – Digital Talent provides training and education in computer programming for young people in rural and urban
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communities to help attract talent and strengthen Costa Rica’s technology pipeline. More than 500 participants from eight urban marginal and rural communities of Costa Rica learned to use open source programs to design games and animation programs. PUBLIC SAFETY The Motorola Solutions Foundation is committed to the safety of communities and security of countries around the world. The Foundation supports training and research in topics important to first responders, support for fallen first responder families, and support for safety and disaster preparedness education for the general public. In 2012, the Motorola Solutions Foundation provided more than $6 million in grants to support these important programs. Examples of our public safety grants in 2012: § National Center for Missing and Exploited Children – United States – Five hundred law enforcement leaders from across the United States received training materials on best practices and procedures for the prevention and recovery of missing and exploited children, including case management, family advocacy and deployment of Team Adam consultants. § Washington, D.C. Police Foundation – United States – The Junior Cadet Program, taught by School Resource Officers, served 100 fifth and sixth grade students from selected Title 1 Washington, D.C. public schools in a youth development and character building program. The program provides students with positive law enforcement role models and mentors, helps students stay focused on their education and future goals, and sparks interest among young people in careers in law enforcement or public service. § Operation Homefront, Inc – United States – The Operation Homefront Villages provide rent-free housing and comprehensive support services for wounded warriors and
their families to stabilize their situation and equip them to transition successfully into stable, permanent housing. Participants receive financial counseling from a certified financial counselor, participate in job readiness activities, receive one-to-one counseling and participate in support groups. In 2012, 100 percent of the individuals served (334) moved out of the three Operation Homefront Villages and successfully transitioned into stable, permanent housing. § Chinese Academy of Governance – China – Twenty-one Emergency Management Office (EMO) leaders and 10 provincial CAG instructors responsible for training local EMO officers participated in an emergency management training program with Chinese academics to learn about the fundamentals of the U.S. emergency management system and best practices, including the U.S. Nationwide Incident Management System (NIMS) and the Incident Command System (ICS). The end goal of the ongoing project is the development of a plan for a strategic emergency communications system in China that supports local field commanders and advancement of dedicated networks for public protection and disaster relief communication. § Akut Search and Rescue Organization – Turkey – More than 1,300 students in several regions of Turkey participated in safety education and public awareness programs taught by professional rescuers. Students received bags with school supplies and child-friendly earthquake, fire, flood and first aid books. In addition, community leaders, government officials, the media and Motorola Solutions employee volunteers worked together to present a panel on earthquake consciousness at each school.
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DISASTER RELIEF Motorola Solutions joins humanitarian organizations to address critical needs of communities. In 2012, the Motorola Solutions Foundation contributed more than $200,000 to support disaster relief efforts around the globe. In the United States, the Foundation provided funds to those communities hit hard by Hurricanes Isaac and Sandy, floods in Florida and wildfires in Colorado. The Foundation also donated $45,000 to the American Red Cross to support relief efforts in the Philippines due to flooding caused by Typhoon Pablo. To support relief efforts on the U.S. east coast caused by Hurricane Sandy, the Foundation donated $100,000 to the American Red Cross and $25,000 to the New York Fire Department. The Foundation matched $25,000 in donations from employees to the American Red Cross, and we also donated 50 radios and other equipment as in-kind gifts to Citywide Disaster Services in Rockaway, New York. The radios were used to check on the elderly and shut-ins, and the Queens NY14 Community Emergency Response Team used radios to assist first responders in the area. EMPLOYEE PROGRAMS We encourage our employees to volunteer in their communities. We are a company of engineers, scientists, and business and public safety professionals, and our employees are eager to encourage the next generation of inventors. Hundreds of employees volunteer as robotics club mentors, science fair judges, math tutors, volunteer firefighters and more. In the United States, we encourage employees to raise money for good causes by matching their charitable contributions up to $10,000 per employee. Employees who volunteer in their communities can ask the Foundation to contribute up to $600 per year to their chosen charities. Our Service Corps program honors 10 exceptional volunteers each quarter, and each year, 10 of those employees or teams receive a CEO Award for
Volunteerism – the highest level of recognition an employee can receive for volunteer efforts. Each of these awards can mean more Motorola Solutions Foundation funds directed toward the employee’s chosen charity. MOTOROLA SOLUTIONS SERVICE CORPS In 2011, we launched the Motorola Solutions Service Corps. Through this program, we collaborate with our customers to become a community partner, reaching out to support the communities where we live and work. By the end of 2012, employees around the world donated nearly 60,000 hours of volunteer time through the Service Corps, beating our 50,000-hour goal. 2012 Service Corps Project Examples More than 150 Motorola Solutions employees in Lod, Israel volunteered more than 600 hours to prepare, package and distribute food products for poor families near our facilities in Lod and Ramleh. Employees worked side-by-side with one of our customers, the Israeli Police. A team of more than 20 Motorola Solutions employees in Reynosa, Mexico served as a strategic partner to Universidad Tecnologica de Tamaulipas Norte to cultivate the next generation of engineers and innovators. Employees spent approximately 700 hours reviewing and adapting the university’s academic plan, conducting statistics workshops, motivating students by providing tours through the Motorola Solutions campus, and providing academic development to teachers and students. In collaboration with one of our customers, the Home Depot, more than 75 Motorola Solutions employees in Holtsville, New York, U.S., improved the garden and communal areas of Northport Veterans Affairs Medical Center's Nursing Home as well as the Suffolk County United Veterans Project through landscape and maintenance projects. Volunteers mulched, planted, built seating, installed AV equipment, transplanted shrubs and installed pavers and a water feature, donating nearly 700 hours of service in recognition of our veterans.
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The Motorola Solutions Foundation joined Chicago Mayor Rahm Emanuel’s initiative to help cultivate the next generation of scientists and engineers in February 2012 by supporting a new early college STEM school, the Chicago Vocational Career Academy. More than 100 Motorola Solutions employees are working with administrators, PERFORMANCE AND GOALS Total Giving – in Millions
2008 Motorola Inc./ Motorola Foundation charitable giving Motorola Inc. employee donations – U.S. giving campaign and matching-gift applications, plus global gifts for disaster relief $23.7 2009 $18.4
teachers, students and parents at the school to support approximately 150 students in their pursuit of science- and technology-related careers through curriculum development, extracurricular activities and mentorship.
2010 $21.9 Motorola Solutions Inc./ Motorola Solutions Foundation charitable giving Motorola Solutions employee donations – U.S. giving campaign and matching-gift applications, plus global gifts for disaster relief
2011
†
2012 $17.2
$23.1
$4.3
$3.1
$3.6
$1.9
$1.6
GIVING BY SOURCE
$1.6M $2.5M $1.2M
GIVING BY REGION
$1.1M $0.7M
$14.7M
$14.2M
North America Europe, Middle East, Africa Asia Pacific Latin America
Foundation Cash Employee Giving
Company Cash and Products
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 57
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GIVING BY CATEGORY
$4.0M
$7.2M
$6.0M
Education
Public Safety
Community and Disaster Relief
Community Investment Plans
Goals For 2012 Provide $4.5 million in grants to support training for first responders, support for first responders’ families and public safety education Provide $3.9 million in grants outside the United States Provide $5.5 million in grants to support science and engineering education Within the first year (Oct. 2011Dec. 2012) of the Motorola Solutions Service Corps, track 50,000 employee service hours globally Progress In 2012 Achieved Plans For 2013 Provide $4.4 million in grants for public safety support and education programs Provide $15.2 million in Foundation funding worldwide Provide $4.4 million in grants to support science and engineering education Track 65,000 employee service hours globally
Achieved Achieved
Achieved
MOTOROLA, MOTO, MOTOROLA SOLUTIONS, and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. © 2013 Motorola Solutions, Inc. All rights reserved.
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The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact.
CORPORATE RESPONSIBILITY REPORT
2012 CORPORATE RESPONSIBILITY REPORT
CORPORATE RESPONSIBILITY REPORT LETTER FROM THE CEO
LETTER FROM THE CEO
Welcome to Motorola Solutions’ 2012 Corporate Responsibility Report. We are pleased to share with you this annual review of our progress, which also serves as a reminder of how much more we can accomplish. Motorola Solutions employees at all levels of the company are taking action, motivated by a sense of responsibility and a desire to demonstrate our purpose: to help people be their best in the moments that matter. I’d like to tell you about a few examples. Our communication solutions help make people safer and improve operational efficiency for our government and enterprise customers. In retail, success is all about the customer experience. Our solutions, such as smart badges and enterprise tablets, help to marshal all the resources of the supply chain to focus on serving a single shopper who has placed a single order, accurately and quickly getting the purchase in the shopper’s hands—a moment that matters to both the shopper and the retailer. Our products also enable our customers to reduce their environmental impact. We use green design criteria to assess and improve the environmental performance of our products. For example, we have introduced infrastructure that significantly reduces the hardware required for first responder networks. This results in less natural resource consumption in the products and less energy used over the life of the systems for our customers. Our battery management technology optimizes charge cycles and usable battery life, and we are actively reducing the amount of packaging used when shipping our products. In our own operations, 22 percent of our electricity usage comes directly from renewable sources or through the purchase of renewable energy credits. Our goal is to increase the company’s global use of electricity from renewable sources to 30 percent by
2020 and to reduce greenhouse gas emissions by 15 percent by 2015 from 2011 baseline levels. We also are mindful of the materials in our products and how they impact society. In 2011, we helped initiate the Solutions for Hope project to establish a secure, traceable supply of the mineral tantalum from the conflict areas of the Democratic Republic of Congo. From the mines to the smelter to our supplier, each step is validated as free from involvement with conflict. This past year, we also helped launch the Conflict-Free Tin Initiative, a similar program based in the same region and focused on tin. Motorola Solutions has long been a proactive investor in the community. The Motorola Solutions Foundation focuses on four important community needs: education—specifically science, technology, engineering and math education—public safety, disaster relief and employee volunteering. In 2012, the Motorola Solutions Foundation provided grants impacting more than 700,000 students, first responders and community members in 37 countries. I am humbled by our employees around the world, who logged more than 55,000 hours of volunteer community service in 2012 through the Motorola Solutions Service Corps. Serving as volunteer firefighters, after-school robotics coaches, science fair judges, student mentors, board members and more, their work is an important extension of our grants to non-profit organizations—and proves how we as a company are committed partners in the communities where we live and work. In our company’s 85th year, we continue to evolve our approach to corporate responsibility. I hope you find this report useful, and I welcome your feedback on any aspect of our approach or performance.
Greg Brown Chairman and CEO Motorola Solutions
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CORPORATE RESPONSIBILITY REPORT TABLE OF CONTENTS
TABLE OF CONTENTS LETTER FROM THE CEO ..............................................................................................2 OUR APPROACH ..........................................................................................................5
CORPORATE RESPONSIBILITY AT MOTOROLA SOLUTIONS ........................................................................... 5 THE BUSINESS CASE......................................................................................................................................... 5 CORPORATE RESPONSIBILITY MANAGEMENT ............................................................................................... 6 STAKEHOLDER ENGAGEMENT ......................................................................................................................... 7 BUSINESS CONDUCT ........................................................................................................................................ 8 HUMAN RIGHTS POLICY ................................................................................................................................. 11 PRIVACY ........................................................................................................................................................... 11 PUBLIC POLICY ................................................................................................................................................. 12 WIRELESS COMMUNICATIONS AND HEALTH .............................................................................................. 14
ENVIRONMENT..........................................................................................................15
OUR VISION...................................................................................................................................................... 15
OPERATIONS AND THE ENVIRONMENT ..............................................................16
MANAGEMENT SYSTEM ................................................................................................................................ 16 AUDITS AND COMPLIANCE ............................................................................................................................ 17 ENERGY MANAGEMENT ................................................................................................................................ 18 OPERATIONS: CARBON FOOTPRINT ............................................................................................................... 20 VOLUNTARY PROGRAMS AND RANKINGS ................................................................................................... 21 WASTE ............................................................................................................................................................. 21 WATER ............................................................................................................................................................. 22 VOLATILE ORGANIC MATERIAL ...................................................................................................................... 23 REMEDIATION ................................................................................................................................................. 24
PRODUCTS AND THE ENVIRONMENT ..................................................................25
MATERIAL CONTENT....................................................................................................................................... 25 ENERGY EFFICIENCY........................................................................................................................................ 27 CARBON FOOTPRINT OF OUR PRODUCTS...................................................................................................... 27 INNOVATING FOR A SMARTER WORLD ........................................................................................................ 29 PACKAGING ..................................................................................................................................................... 30 CONSOLIDATING SHIPMENTS........................................................................................................................ 30 RECYCLING....................................................................................................................................................... 31
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CORPORATE RESPONSIBILITY REPORT TABLE OF CONTENTS
SUPPLIERS .................................................................................................................32
SUPPLIER CODE OF CONDUCT ........................................................................................................................ 32 MONITORING PROCESS .................................................................................................................................. 35 CONFLICT MINERALS UPDATE ....................................................................................................................... 39 MATERIALS DISCLOSURE PROCESS .............................................................................................................. 42 SUPPLIER DIVERSITY ....................................................................................................................................... 42
EMPLOYEES ...............................................................................................................45
GLOBAL WORKFORCE...................................................................................................................................... 45 EMPLOYEE ENGAGEMENT.............................................................................................................................. 46 INCLUSION AND DIVERSITY ........................................................................................................................... 47 TOTAL REWARDS ............................................................................................................................................ 49 BENEFITS.......................................................................................................................................................... 50 SAFETY PROGRAMS ........................................................................................................................................ 51
COMMUNITY..............................................................................................................53
EDUCATION...................................................................................................................................................... 53 PUBLIC SAFETY ................................................................................................................................................ 55 DISASTER RELIEF ............................................................................................................................................. 56 EMPLOYEE PROGRAMS .................................................................................................................................. 56
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OUR APPROACH
CORPORATE RESPONSIBILITY AT MOTOROLA SOLUTIONS Motorola Solutions is a leading provider of mission-critical communication solutions for government and enterprise customers. Our solutions help people be their best in the moments that matter. We are dedicated to operating ethically, protecting the environment and supporting the communities where we do business. Our 2012 corporate responsibility report highlights the ways Motorola Solutions is working to continue to be a responsible corporate citizen. We invite you to read our report and learn more about our initiatives. THE BUSINESS CASE Corporate responsibility is not just the right thing to do; it is an essential part of good management. It helps us to: § Identify new business opportunities to meet emerging social needs § Reduce costs by becoming more efficient in our use of energy and resources § Avoid business risks and protect our reputation § Anticipate and prepare for future regulation § Maintain good relationships with our stakeholders § Maintain the safety and quality of our products by ensuring high standards in our supply chain § Protect the trust of our customers § Attract and retain the best employees, including increasingly environmentally and socially conscious graduates We aim to manage our business according to the commitments set out in our corporate responsibility business principles (see next page). These commit us to manage the company with integrity, protect the environment and create an inclusive, safe and healthy workplace. They also define our behavior toward external stakeholders, including supporting the communities near our operations, creating economic benefits and selecting suppliers with acceptable labor and environmental standards. Our corporate responsibility business principles are supported by our code of business conduct, our environment, health and safety and human rights policies, and our supplier code of conduct.
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CORPORATE RESPONSIBILITY MANAGEMENT Our corporate responsibility team coordinates our activities and determines which issues are important to Motorola Solutions. The team establishes performance indicators, sets goals for improvement and reports progress to our stakeholders. We operate an Environment, Health and Safety management system and have active participants throughout our businesses, working to reduce the environmental impact of our products throughout their lifecycles. Our supply chain corporate responsibility team assesses suppliers’ compliance
with our business conduct expectations, including labor and environmental standards. We have established metrics in relevant areas of corporate responsibility. We determine these by referring to the Global Reporting Initiative guidelines, the findings of stakeholder engagement and best-practice reporting. We promote corporate responsibility to employees through communication channels including the company intranet, emailed news summaries, employee meetings, leadership messages and internal video systems. Each year, we share metrics and achievements with employees and provide the link to our corporate responsibility report online.
OUR CORPORATE RESPONSIBILITY BUSINESS PRINCIPLES
These principles guide our actions:
INNOVATIVE PRODUCTS, CUSTOMER DELIGHT AND QUALITY
ETHICS AND TRANSPARENCY
ENVIRONMENTAL QUALITY
We create innovative products and solutions with quality and performance that meet or exceed our customers' expectations.
We operate with transparency and according to high standards of ethics and the law in directing and managing the company for all stakeholders.
We foster sustainable use of the earth's resources in our products and operations, and we strive to design environmentally conscious products.
DIVERSITY AND INCLUSION
SAFE AND HEALTHY WORKFORCE
ECONOMIC OPPORTUNITIES AND GROWTH
We create an engaged workforce that can contribute its full potential in an inclusive work environment.
In cooperation with our employees, we work to maintain a safe and healthy workplace and support employees' work-life integration.
We work to create wealth, economic opportunities and growth in regions where we do business, through our products, services, relationships and operations.
SUPPLIER RELATIONSHIPS
COMMUNITY SUPPORT
SHAREHOLDER VALUE
We set expectations for our suppliers and work with them to conduct their operations in compliance with applicable laws and accepted standards of fairness and human decency. We promote supplier diversity.
We support educational, environmental and social needs in the communities where we operate.
We strive to achieve strong financial results and long-term success through sustained profitable growth, technological innovation and market leadership.
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STAKEHOLDER ENGAGEMENT We seek feedback from stakeholders to assess our performance and to inform them of our judgments about issues. Our stakeholder engagement is undertaken at the global, regional and local levels in three main ways: § Responding to specific requests for information § Participating in multi-stakeholder relationships § Initiating our own engagement PERFORMANCE IN 2012 Non-Governmental Organizations Non-governmental organizations (NGOs) are key stakeholders. Their views are of particular importance because they also may represent other interested parties such as workers in our supplier factories, socially responsible investors and communities local to our operations. In 2012, we met periodically with representatives from NGOs working on supply chain issues, including Global Witness, the Enough Project, Free the Slaves, Falling Whistles, Responsible Sourcing Network and the Center for Research on Multinational Corporations (SOMO). Socially Responsible Investors We engage with investors on corporate responsibility issues to better understand their concerns and to learn from their research. In 2012, Motorola Solutions was included in a number of socially responsible investment indices, including: § § § § § § Dow Jones Sustainability World Index Dow Jones Sustainability North American Index FTSE4Good oekom: Prime status Maplecroft Climate Innovation Indexes Calvert Social Index
Sustainability Rankings We also engage with research analysts who develop sustainability rankings for publications to learn from their research and identify ways we can improve. In 2012, Motorola Solutions was included in the following rankings: § No. 77 on CR Magazines’ 100 Best U.S. Corporate Citizens list § No. 20 in Newsweek’s U.S. Green Rankings § No. 7 in our industry category on Fortune’s “World’s Most Admired Companies” list Customers We engaged with customers in the following ways during 2012: § Collaborated with our customers through the Global e-Sustainability Initiative (GeSI) § Completed and responded to customer surveys on corporate responsibility, including selfassessment questionnaires § Participated in corporate responsibility summits hosted by our customers § Assessed and aligned certain products to meet the environmental initiatives of specific customers and to reduce their environmental footprint Employees Our employees have formal and informal channels to discuss corporate responsibility issues. We encourage employees to go to their managers or business conduct champions with any ethical concerns at work. Employees can report suspected violations of our code of conduct anonymously where permitted by law using the global EthicsLine. We also encourage our employees to volunteer and give back to the communities where they live and work. In addition, we share our environmental performance through our employee portal, emails, our internal TV system and posters throughout our offices.
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Suppliers During 2012, we continued to engage with our suppliers on corporate responsibility by: § Offering training sessions to raise awareness of our requirements and to provide guidance on how suppliers can establish internal corporate responsibility and monitoring programs for their own supply chains § Developing new training materials for procurement professionals and factory managers § Requesting self-assessment questionnaires from our preferred suppliers to help us assess risks, identify areas for improvement and target site audits § Incorporating corporate responsibility requirements into supplier agreements § Monitoring suppliers to identify any potential problems and drive continuous improvement in corporate responsibility performance § Working with suppliers to resolve corporate responsibility issues identified by audits Government and Regulators We engage with government officials directly and through industry associations. We provide our perspective on issues affecting our industry and lobby for policies that will promote sound, balanced social and environmental sustainability and business success. In 2012, we engaged with several groups, including the U.S. State Department, the Securities and Exchange Commission (SEC), U.S. Agency for International Development (USAID), Organization for Economic Co-operation and Development (OECD), Rechargeable Battery Association (PRBA), the Dutch Foreign Ministry, the European Union DG Trade, the Democratic Republic of Congo and the Telecommunications Industry Association (TIA). Multi-Stakeholder and Industry Initiatives In 2012, we participated in GeSI, which brings together NGOs and companies to promote sustainability in the information and communication technology industry.
In 2011, we helped pilot the Solutions for Hope project to source conflict-free tantalum from the Democratic Republic of Congo (DRC). We also helped launch the Conflict-Free Tin Initiative (CFTI) to source conflict-free tin from the DRC as an end-user. This project kicked off in 2012, and we are actively supporting it using the knowledge gained from Solutions for Hope to help the CFTI succeed. We also participated in the following additional industry initiatives to improve standards in the minerals supply chain: § Joined the regional alignment meeting for the Public-Private Alliance, a joint initiative between industry, governmental agencies and civil society formed to support the development of supply chain solutions for sourcing responsibly-mined, conflict-free minerals from the DRC and the Great Lakes Region § Initiated a pilot program to assess our suppliers using industry tools and standards developed by the Electronic Industry Citizenship Coalition (EICC) and GeSI for identifying and reporting the origins of conflict minerals BUSINESS CONDUCT We are committed to conducting our business with integrity. This is essential to earning the trust of our stakeholders. Our code of business conduct is available in 13 languages and describes the ethical standards that we require from our employees. In summary, the code requires all employees to: § Obtain and conduct business legally and ethically § Build quality relationships with companies that share our values § Treat the investment of our shareholders as if it were our own § Make business decisions based on the best interests of Motorola Solutions § Report business conduct concerns immediately Read the full code of business conduct on our website.
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We raise awareness of our standards so that employees understand our values, and we encourage them and people outside Motorola Solutions to report ethical concerns using a variety of reporting channels. We investigate all allegations of ethical misconduct and make process improvements and/or take disciplinary action when claims are substantiated, up to and including dismissal. MANAGEMENT OVERSIGHT The audit committee of our board of directors has overall responsibility for compliance with our code of business conduct. The office of ethics presents a full report to the audit committee at its meeting each quarter, as well as monthly reports on matters under review. Our Motorola Solutions Ethics and Compliance Council, which comprises senior management from sales and product operations, human resources and finance and the senior ethics officer, meets quarterly to review and drive progress of our ethics and compliance initiatives. Ethics and compliance councils operate in our Asia Pacific & Middle East, Europe & Africa, and Americas regions, each of which are represented on the Motorola Solutions Ethics and Compliance Council. The office of ethics manages our ethics program for the company and works with our internal business teams, the finance department and the law department to monitor legal compliance and business risk. The office also works closely with our procurement team to ensure compliance with our supplier policies. We have developed an automated tracking system that helps us check if our third-party sales representatives have been properly screened and meet our contractual requirements. Senior leaders regularly communicate business conduct expectations to employees. At the local level, business conduct champions promote compliance programs to employees.
ETHICS AWARENESS AND TRAINING We ensure our employees understand our business conduct requirements through ethics training and awareness activities. During 2012, in addition to regular required online training, we presented targeted training to key employee groups globally, including country managers, finance and procurement. We held individual sessions with more than 100 senior leaders to enhance understanding of ethics program resources and updated the training materials we use with third parties. Our business conduct champions participated in a global, two-day workshop to enhance their understanding and help them more effectively support employees around the world. DUE DILIGENCE We have robust due diligence policies and processes for assessing prospective business partners, including third-party sales representatives and third-party service providers, among others, as well as certain high-risk business opportunities. In 2012, we continued to enhance these processes to include additional types of business partners for our sales channels, and performed self-audits to ensure effectiveness. In 2012, employees, customers, suppliers and others made 202 reports to the office of ethics. This included questions or concerns regarding the code of business conduct, HR-related queries and allegations of misconduct. We strive to ensure people who contact us with ethical concerns can be confident that we will respond quickly and handle their requests discreetly. In addition to the EthicsLine, employees also can use our online EthicsLine Interactive website, which offers the option of anonymous email engagement with the office of ethics in four languages. This enables office of ethics staff to ask for clarification and give feedback online.
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Reports to Office of Ethics and Compliance in 2012
Total reports submitted Reports requiring investigation Investigations substantiated Investigations closed* Resulting disciplinary actions 202 38 14 36 9
Reports by Topic*
Human resources-related Product-related issues and complaints Allegations of impropriety Inquiries about code of business conduct Audit and accounting 68 1 49 59 16
Other concerns 65 * A report may apply to more than one category
Disciplinary Action Separation** Written warning Counseling 3 1 5
Reporting Channels Used
EthicsLine (telephone) EthicsLine Interactive (online) Business conduct champions Audit activity Data privacy line 2 1 Other 110 36 12 4 5 35
Resulting separations** Employees Contractors
Business partners 0 * Includes nine reports opened in 2011 ** Includes resignations and terminations
BUSINESS CONDUCT GOALS Goals for 2012 § In support of continuous improvement efforts, implement targeted policy and process enhancements, with special emphasis in anti-fraud and anti-corruption arenas. § Implement and roll out advanced online anti-corruption course. § Conduct corporate-wide legal risk assessment. Progress in 2012 § Enhanced due diligence processes to include additional types of business partners; provided continuous training to key employees; performed self-audits to ensure effectiveness. § Held targeted live training sessions with employees with relevant job responsibilities in lieu of additional online training. § Continued partnership with internal audit group on enterprise risk management. Goals for 2013 § Deliver targeted ethics and compliance communications to employees at career milestones (e.g., new hire, promotion). § Enhance ethics and compliance content in regular internal audit procedures. § Review and revise global gift and entertainment policies as required.
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HUMAN RIGHTS POLICY Motorola Solutions’ human rights policy is based on our long-standing key beliefs of uncompromising integrity and constant respect for people, and is consistent with the core tenets of the International Labour Organization’s fundamental conventions and the United Nations Universal Declaration of Human Rights. I. ANTI-DISCRIMINATION
require, on a regularly scheduled basis, work in excess of 60 hours per week or in excess of six consecutive days without a rest day. V. WAGES AND BENEFITS
PRIVACY POLICY
We employ people on the basis of their ability to do the job, and we prohibit discrimination based on employees’ personal characteristics, conditions or beliefs. II. FREELY CHOSEN EMPLOYMENT
Our employees are paid at least the minimum legal wage or, where no wage law exists, the local industry standard. In any event, we provide wages and benefits to our employees to at least meet basic needs. For each pay period, we provide employees with an understandable wage statement that includes sufficient information to verify accurate compensation for work performed. We do not make deductions from wages as a disciplinary measure. VI. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Our Information Protection policy, IP-01, and related control standards commit our employees and third parties working for Motorola Solutions to protect the personal information of our employees, customers, consumers and additional third parties. Motorola Solutions’ IP-01 policy requires us to: § Inform customers and consumers about the types of information we collect about them and how we intend to use it § Allow customers and consumers to choose whether their personal information is used for marketing purposes or shared with third parties § Collect, process, transfer and store personal information in accordance with local laws § Ensure the security of personal information so that it remains accurate, is not accessed without authorization and is used appropriately § Provide customers, consumers and employees with the ability to access, correct, amend and/or delete their personal information when appropriate
We do not use forced, prison or indentured labor, including debt bondage. We ensure that terms of employment are voluntary. If we recruit contract or migrant employees, we pay agency recruitment fees and ensure there are no unreasonable employment or relocation expenses. We do not require any employee to remain in employment for any period of time against his or her will, or engage in practices that restrict employees’ ability to terminate employment. We do not require employees to lodge “deposits” or hand over government-issue identification, passports or work permits as a condition of employment, unless required by applicable law. III. NO CHILD LABOR
We recognize the right of our employees to join associations of their own choosing or to refrain from joining, and the right to collective bargaining, unless otherwise prohibited by law. In all cases, we respect employees’ rights to open communication, direct engagement, and humane and equitable treatment. VII. SAFE AND HEALTHY WORKING CONDITIONS
We provide a safe and healthy work environment for employees. In cases where we provide housing or dining facilities, we operate and maintain them in a safe, sanitary and dignified manner. VIII. NO HARSH OR INHUMANE TREATMENT
Our hiring practices conform to the International Labour Organization (ILO) conventions for minimum age and child labor. Employees under the age of 18 should not perform hazardous work and should be restricted from night work if it interferes with educational needs. IV. FAIR WORKING HOURS
The safety and security of employees at our facilities are key priorities. We prohibit physical abuse and harassment of employees, as well as the threat of either. PRIVACY We believe that people have the right to control their personal information and determine how it is collected and used. We are committed to safeguarding personal information of Motorola
Read our online privacy practices statement, which applies to personal information collected through our websites.
We manage operations to ensure that overtime does not exceed levels that create inhumane working conditions. We do not require employees to work more than the maximum hours of daily labor set by local law. We do not
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Solutions’ employees, customers and business partners. We adhere to data privacy laws and regulations globally and design products and services to protect and secure confidential information. Motorola Solutions’ privacy compliance efforts are coordinated jointly by the company’s law and information security organizations. Interdisciplinary teams working in IT, marketing, human resources, sales, product development and procurement play a key role in protecting information and in the company’s broader compliance efforts. We work closely with third parties handling personal information on our behalf to ensure that our privacy and information protection practices meet or exceed industry best practices and legal standards. Employees who violate our information protection policies are subject to disciplinary action, including dismissal. Agents and subcontractors face contractual penalties and/or termination. We have certified compliance with the U.S.-EU Safe Harbor Framework and maintain an interactive Privacy email address, where employees, customers and consumers can direct questions, concerns and complaints about privacy-related issues or practices: [email protected]. MANAGEMENT AND TRAINING Motorola Solutions’ privacy compliance team, along with information security staff and business security managers, raises awareness about our privacy policies and practices, provides advice and assistance to employees, and enforces information protection and privacy policies. All employees are required to take courses for privacy protection and information protection every two years. Detailed privacy and security documentation and tools, including training
modules and issue-specific privacy reference guides, are available to employees and contractors whose jobs involve handling personal information. Our voluntary advanced online privacy course “Privacy Directions 101: Awareness for Motorola Solutions” informs employees about international privacy legislation such as the Organization for Economic Cooperation & Development’s (OECD) privacy guidelines, the European Union’s Directive on Data Protection and its trans-border data flow requirements, and the Asia-Pacific Economic Cooperation (APEC) forum’s privacy framework. PERFORMANCE IN 2012 There were no reportable breaches of personal data in 2012. A reportable breach occurs when unencrypted personal information is believed to have been acquired by an unauthorized person or entity. “Personal information” refers to a person’s last name paired with a first name or first initial and one or more of the following identifiers: a U.S. Social Security or equivalent national identification number; a driver’s license or equivalent identification number; or a number from a bank account, credit card or debit card, along with a password or security code that would give access to the account. PUBLIC POLICY Participation in the public policy process is important, as the actions that governments take can have a significant impact on the company, our employees and our shareholders. We prudently and constructively promote legislative and regulatory actions that further our business objectives and attempt to protect our company from unreasonable, unnecessary or burdensome legislative or regulatory actions at all levels of government. We operate within the guidelines of applicable laws, our code of business conduct and
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compliance policies. Employees who interact with government employees or officials must complete our “Building Government Relations of Strength and Integrity” course. This clarifies the standards and policies relating to ethical conduct and government relations to ensure that employees and third parties protect the company from both reputation and legal risks. POLITICAL CONTRIBUTIONS IN THE UNITED STATES In the United States, where permitted by federal, state and local law, we contribute to candidates and campaigns – regardless of party affiliation – that understand and support policy issues that are important to our business. Contributions are based on the interests of the company without regard to the personal political preferences of our officers and executives. We have a robust policy and an internal online political contribution approval process that governs the review and oversight for ensuring compliance with current campaign finance and disclosure laws, as well as our code of business conduct. We provide an opportunity for employees to participate in the political process by joining our nonpartisan political action committee (PAC). The Motorola Solutions PAC allows employees to pool their financial resources to support federal, state and local candidates, political party committees and political action committees. The political contributions the Motorola Solutions PAC makes are funded entirely by the voluntary contributions of our employees. All contributions through the Motorola Solutions PAC plan are approved by the Motorola Solutions PAC board of directors, and an annual report of Motorola Solutions’ contributions also is submitted to the company’s board of directors. Employees are neither favored nor disadvantaged because of the amount of their contribution or decision to contribute. A committee within our North America government affairs organization develops a plan for all political contributions, identifying the candidates and campaigns that will receive contributions based on a non-partisan effort to
advance and protect the interests of the company, our stockholders and our employees. The vice president of North America government affairs reviews this overall plan, and our legal counsel reviews all political contributions in advance. In addition, the Motorola Solutions board of directors receives an annual report of all corporate contributions. The committee uses a set of criteria for assessing candidates that includes: § Support/leadership for our policy objectives § Geographic representation of our sites and employee population § Strong or emerging positions on issues that impact the high-tech industry and the business community § Assignments on key legislative committees In 2012, the Motorola Solutions PAC distributed $258,308 in employee contributions. The Motorola Solutions PAC does not make contributions to candidates outside of the United States. Read more about our Motorola Solutions PAC contributions. While U.S. law prohibits corporate contributions to federal political candidates, these contributions may be used in some states for candidates seeking state or local offices. In 2012, we contributed $749,500 to state and local candidates, party committees and ballot-measure campaigns in the United States. We have not used corporate funds to make any direct independent expenditure on behalf of candidates running for public office and do not currently have plans to use direct independent expenditures as part of our corporate political contributions program. MEMBERSHIP IN TRADE ASSOCIATIONS Motorola Solutions is a member of trade associations in the United States that represent the public policy objectives of our industry. We pay annual dues of $50,000 or more to belong to these associations:
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§ Alliance for Telecommunications Industry Solutions (ATIS) § Business Roundtable § Information Technology Industry Council § TechAmerica § Telecommunications Industry Association § U.S. Chamber of Commerce § WiFi Alliance WIRELESS COMMUNICATIONS AND HEALTH Wireless communication devices send and receive information using radiofrequency (RF) energy transmitted as waves through the air. Questions have been raised about the safety of RF energy from antenna sites (e.g., cell phone networks, base stations and radio/TV transmitters) and wireless devices (e.g., portable phones, two-way radios, mobile computers and RFID readers). Research into RF energy effects has been ongoing for more than 60 years and is the basis for internationally recognized standards for safe human exposure to RF energy. The World Health Organization (WHO) and many other expert panels and government health authorities around the world (including the U.S. Federal RF Interagency Working Group) who continue to conduct ongoing reviews of the science have consistently concluded that RF products that meet the science-based international standards for exposure to radio waves pose no known health risk. For example, in August 2009, the International Commission on Non-Ionizing Radiation Protection (ICNIRP) published a statement after a comprehensive, multi-year review of several national and international research programs involving wireless communications technologies and international exposure guideline restrictions. ICNIRP concluded: “…the scientific literature published since the 1998 guidelines has provided no evidence of any adverse effects below the basic restrictions and does not necessitate an immediate revision of its guidance on limiting exposure to high frequency electromagnetic fields.” The U.S. Government Accountability Office (GAO) report (2012) also indicated: “Scientific research to date has not
demonstrated adverse human health effects of exposure to radio-frequency (RF) energy from mobile phone use.” Based on an ad hoc committee evaluation, the International Agency for Research on Cancer (IARC) has classified exposure to RF electromagnetic fields, which are emitted by mobile phones, wireless devices, radars, and radio and television broadcasts, as possibly carcinogenic to humans (classification 2B). Following the IARC announcement of the classification, the WHO EMF Project, which specializes in EMF safety issues, posted a fact sheet (No.193) on the safety of mobile phones. In this document, under the question “Are there any health effects?”, WHO says: “A large number of studies have been performed over the last two decades to assess whether mobile phones pose a potential health risk. To date, no adverse health effects have been established as being caused by mobile phone use.” All Motorola Solutions products comply with international exposure guidelines and standards for RF energy exposure and national regulations where applicable. The RF exposure measurement for portable wireless devices under these requirements is called specific absorption rate (SAR). The guidelines and standards set for SAR levels for wireless products provide wide margins of protection for professional users and the general public. Motorola Solutions supported substantial independent biological research and continues to sponsor independent studies through the Mobile Manufacturers Forum (MMF) to increase scientific knowledge about the safety of RF energy. If you have additional questions, please contact Motorola Solutions’ Wireless Communications and Health team at: [email protected]. Read more about research and standards on wireless communications and health, and find answers to frequently asked questions.
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ENVIRONMENT
Our customers expect products with minimal adverse environmental impacts and increased benefits. Our strategy is to understand the environmental impacts of our products and look for opportunities to minimize adverse impacts. We strive to improve each new product to consume less energy, use environmentally preferred materials, have an extended life-span and be easily recycled. Our take-back programs offer our customers an end-of-life solution by collecting electronic equipment for reuse and recycling. We recognize that electronics products can have adverse impacts on the environment. But they also offer significant benefits, such as helping our customers reduce their environmental footprints and cut their energy costs through efficiency improvements. While we are helping our customers reduce their environmental footprints, we continue to reduce our own impacts though a rigorous environment, health and safety management system. OUR VISION The following long-term sustainability objectives reflect our ideals and provide a vision of how we intend to contribute to sustainable development: § Product stewardship: Evaluate and improve environmental attributes and safety of new products § Zero waste: Minimize waste generation and reuse or recycle all waste materials § Benign emissions: Eliminate from manufacturing sites all emissions that adversely impact the environment § Closed loop: Promote the use of recycled materials to conserve natural resources § Green energy: Use energy in highly efficient ways, and increase use of renewable energy § Zero occupational injuries and illnesses: Create a workplace free of occupational injuries and illnesses
CLIMATE CHANGE
Climate change is one of the greatest challenges facing the world, and we are working to be part of the solution. Coordinated action by governments will be essential to meeting the climate challenge. Business also must play a significant role, and Motorola Solutions is taking action in four ways: § Cutting the impact of our operations through energy efficiency measures and renewable energy usage § Improving the energy efficiency of our products § Developing technology to enable a low-carbon future § Helping our customers reduce their carbon footprints
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OPERATIONS AND THE ENVIRONMENT
Designing, manufacturing and distributing electronic communication products uses natural resources, creates emissions and waste and contributes to climate change, principally through carbon dioxide emissions from energy use. We are committed to reducing the environmental impact of our operations. We have set goals and established the necessary policies and processes to achieve them. MANAGEMENT SYSTEM Oversight of our global Environment, Health and Safety (EHS) management system is provided by our vice president of EHS. Our EHS professionals around the world implement common programs at the site level to comply with the global EHS management system. They are supported by EHS policies, procedures, checklists and other resources, as well as location-specific internal websites. Our EHS management system is certified to the international standards ISO 14001 and OHSAS 18001. This covers all of our manufacturing sites and our larger facilities. Sites are classified according to floor space, headcount, type of operation and risk level. Sites with higher scores are classified as Class I sites and are certified to ISO 14001 and OHSAS 18001 by Lloyd’s Register Quality Assurance (LRQA): § LRQA Certificate of Approval for ISO 14001:2004 § LRQA Certificate of Approval for OHSAS 18001: 2007 In addition, our facility in Airport City, Israel is certified to ISO 14001 and OHSAS 18001 by The Standards Institution of Israel. Our facility in Mississauga, Canada is ISO 14001 certified. § The Standards Institution of Israel Certificate of Approval for ISO 14001: 2004 § The Standards Institution of Israel Certificate of Approval for OSHAS 18001: 2007 § BSi Certificate for Approval for ISO 14001:2004 We strongly encourage our tier-one suppliers to have an environmental management system in accordance with ISO 14001 or an equivalent standard. We monitor compliance with this requirement through our supplier assessment program.
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GREEN BUILDING STRATEGY In 2009, we conducted a gap analysis to assess the status of our facility portfolio against the LEED (Leadership in Energy and Environmental Design)Existing Buildings Operations and Maintenance (LEED-EB) standards. The analysis revealed that operations at our facilities already meet many of the LEED-EB standards. As we renovate our existing facilities, we implement additional LEEDEB requirements. In 2011, our EHS team worked with our real estate and procurement teams to develop global guidelines for the purchasing of green products and energy efficient equipment. We use these guidelines globally to help sites set targets for purchasing environmentally preferable paper and office products, IT equipment, furniture, lighting, and janitorial and cleaning supplies to maintain our sites while protecting human health and the environment. In 2012, as part of our ongoing environmental efforts, we installed two electric vehicle chargers at our corporate headquarters in Schaumburg, Illinois, U.S. These electric vehicle chargers are available free of charge to employees, customers and visitors with plug-in electric vehicles. In 2012, we estimate that these electric vehicle chargers helped prevent 650 kg of greenhouse gas emissions from being emitted into the environment, based on data calculated by ChargePoint, the company that provides our chargers. ChargePoint bases its calculations on U.S. Environmental Protection Agency (EPA) estimates. As the chargers installed on the Schaumburg campus are part of a pilot project, we’re investigating their continued use and anticipate expanding the program to other sites. We also provide a shuttle for employees who choose to commute to our Schaumburg campus via train. The shuttle makes two round trips per day between our Schaumburg campus and the nearest suburban commuter train station. Assuming that all shuttle riders would otherwise drive to work individually, we estimate that our shuttle service helps reduce CO2 emissions by approximately 250 metric tons per year. We calculated this reduction
using the Greenhouse Gas Protocols Mobile Combustion GHG Emissions Calculation Tool. EMPLOYEE AWARENESS We engage our employees and promote various EHS programs and targets by displaying posters at our sites, running programs on internal TV monitors, sending emails to all employees and holding site EHS awareness events, such as Earth Day. In 2012, we rolled out a new online EHS orientation course for our employees to help them gain a deeper understanding of how our EHS programs impact our bottom line. SCOPE OF EHS DATA Our EHS data includes measured and estimated data. We measure environmental impacts at our main sites, which accounted for 86 percent of total floor space as of Dec. 31, 2012. We collect this data using our internal reporting system. We extrapolate the measured data to provide an estimate of the remaining 14 percent of the total floor space. Our health and safety metrics are captured at all of our sites as well as in our field services activities. AUDITS AND COMPLIANCE We conduct EHS audits at our sites to assess compliance with our EHS policy, management system and legal requirements. Our ISO 14001 and OHSAS 18001 certified sites each undergo one of the following audits at least once a year through our staggered system: § Internal EHS management system audit: Every two years by internally qualified auditors § EHS legal compliance audits: Every three years by independent, third-party auditors § ISO 14001 and OHSAS 18001 surveillance audits: Approximately every two years by independent, third-party auditors We also conduct EHS legal compliance audits of our Class II non-ISO certified sites. All non-compliances are recorded and tracked to ensure that corrective actions are implemented.
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PERFORMANCE AND GOALS Environment, Health & Safety (EHS) Audit Summary
2008 EHS Legal Compliance Audits ISO 14001/OHSAS 18001 Surveillance Audits ISO 14001/OHSAS 18001 MSI Headquarters Internal EHS Management System Audits 11 3 2 4 2009 11 6 2 3 2010 8 5 2 4 2011 7 3 1 1
†
2012 2 4 1 2
Environment and Safety Non-compliances
2008 Environmental non-compliances* Safety non-compliances 1 0 2009 0 0 2010 0 0 2011 0 0 0
†
2012 0 0 0
Fines or penalties, dollars $500,000** 0 0 * Notices of violation, citations, administrative orders or notices of non-compliance ** Shared with two other companies
The fine in 2008 was related to incomplete ground water treatment by a third party at the North Indian Bend Wash site in Scottsdale, Arizona, U.S. Please visit these links for more information. 2013 COMPLIANCE GOAL No notice of violations or fines. ENERGY MANAGEMENT Our global energy team meets regularly and comprises members of facilities management, corporate sustainability, EHS and procurement, coordinating energy management across Motorola Solutions. We are systematic in the way we seek energy savings in all our facilities. New energy saving measures launched in 2012 included: § Instituted energy audits across all large facilities to help identify areas where we can improve energy efficiency § Began a condition-based maintenance (CBM) initiative focusing on the lifecycle analysis of equipment to ensure that inefficient equipment is exchanged for more efficient equipment § Upgraded boiler control equipment, which has resulted in a 15 percent reduction in natural gas usage Previous energy-saving measures we continued in 2012 included: § An upgrade in cooling equipment that is expected to result in a 10 percent reduction in energy costs § Evaluating the use of green energy at all our facilities § Creating teams to promote energy saving at sites § Conducting inspections to ensure lights are turned off at night § Upgrading lighting in offices and production facilities § Matching lighting more closely with building occupancy
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 18
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
§ Increasing maintenance of air handling units § Upgrading and improving the efficiency of compressors § Optimizing pressure levels on manufacturing equipment § Upgrading controls, removing unnecessary pumps and de-scaling evaporator coils on chillers § Using natural cooling (free cooling) in winter instead of cooling provided by chillers § Upgrading to a more energy efficient humidity system § Improving building management systems to optimize controls § Increasing the temperature in IT rooms to reduce the demand for cooling § Cleaning during the day to avoid having to light offices at night
PERFORMANCE AND GOALS In 2012, we used 346 million kilowatt hours of energy, a reduction of nearly 12 percent from 2011. We achieved this reduction by divesting portions of our business, closing and combining some of our facilities, and completing several energy-saving upgrades in our facilities. This calculation is based on: § Actual data covering 86 percent of total floor space in 2012 § Estimated consumption based on average energy per square foot for the remaining percent
Energy Use: Electricity and Natural Gas (in million kilowatt hours)
2008 Measured Energy Use Scaled up with Estimates 745 955 2009 652 866 2010 628 803 2011 333 392
†
2012 298 346
RENEWABLE ENERGY In 2012, about 22 percent of the electricity we used globally was from renewable sources. Our goal is to increase our global use of electricity from renewable sources to 30 percent by 2020. In addition to the 9 percent of renewable energy available by default in the power grid, about 13 percent of our global electricity came from voluntary purchases. This includes green-e certified renewable energy certificates (RECs) purchased from wind power in the United States and hydropower purchased directly from the generator in Germany and Denmark. In the United States, we purchased RECs from NativeEnergy, which supports Native American, farmer-owned, community-based renewable energy projects helping create social, economic and environmental benefits. Renewable Energy Use as a Percent of Total Energy Use
2008 Percent 10% 2009 15% 2010 23% 2011
†
30% RENEWABLE INCREASE
ENERGY GOAL
Increase use of renewable energy to 30 percent by 2020. This includes purchasing green e-certificates and a calculation of how much energy purchased from providers is from renewable sources.
2012 22%
20%
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 19
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
OPERATIONS: CARBON FOOTPRINT In 2012, our carbon footprint (Scope 1 and 2 emissions from the Greenhouse Gas Protocol) totaled 176,604 tonnes CO2 equivalent. These calculations are based on: § Actual data covering 86 percent of total floor space in 2012 § Estimated impact based on average energy per square foot for the remaining 14 percent Bureau Veritas conducted an independent verification of our 2012 greenhouse gas (GHG) emissions. § Bureau Veritas GHG Emissions Verification Statement EMPLOYEE BUSINESS TRAVEL Our commercial air travel, rail travel, car rentals and business travel in employee-owned cars resulted in 69,841 tonnes CO2 equivalent emissions. Our travel policy requires that, when possible, employees minimize travel by utilizing audio-conferencing, web meetings and video-conferencing. Employees can read tips on how to reduce their travel-related carbon footprints on a dedicated intranet site. PERFORMANCE AND GOALS Carbon Footprint: Global Greenhouse Gas Emissions (Total: Scope One* and Two**)
2008 Tonnes of CO2 equivalent (measured emissions) Tonnes of CO2 equivalent (estimated emissions) 417,434 531,661 2009 329,223 433,373 2010 291,827 369,851 2011
†
2012 153,926 176,604
168,634 197,761
Tonnes of CO2 equivalent per million sales 17.6 19.7 19.2 24.1 20.1 dollars (scaled up to include estimates) * Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources, including boilers, emergency generators, fire pumps, cooking appliances and aircraft ** Scope Two: Includes indirect emissions from electricity use
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 20
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
Carbon Footprint: Global Greenhouse Gas Emissions (Units in Tonnes CO2 Equivalent)
2008 Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources* (not including estimates) Scope One: Direct emissions from Motorola Solutions-owned stationary and mobile sources (scaled up to include estimates) Scope Two: Indirect emissions from electricity use (not including estimates) Scope Two: Indirect emissions from electricity use (scaled up to include estimates) Scope Three: Business travel Total carbon footprint** 33,125 2009 27,792 2010 28,927 2011
†
2012 24,901
18,017
38,768
33,217
33,349
20,156
26,483
384,309 492,893 146,845 678,506
301,432 400,156 115,128 548,501
262,900 336,502 125,438 495,289
150,617 177,605 52,363 250,124
129,025 150,121 69,841 246,445
* Includes boilers, emergency generators, fire pumps, cooking appliances and aircraft ** Includes scaled up Scope One and Two emissions along with Scope Three emissions
VOLUNTARY PROGRAMS AND RANKINGS We are involved in voluntary climate change programs that promote awareness, encourage us to be transparent about our actions and improve our performance. CARBON DISCLOSURE The Carbon Disclosure Project (CDP) initiative encourages companies to report on greenhouse gas emissions and actions to mitigate them. We have reported our greenhouse gas emissions annually since 2004. In 2011 and 2012, we also participated in the CDP’s Water Disclosure project. The initiative aims to increase the availability of information about the investment risk and commercial opportunity associated with water. GLOBAL E-SUSTAINABILITY INITIATIVE As a member of the Global e-Sustainability Initiative, in 2012 we participated in that organization’s climate change working group, an industry effort to improve the sustainability and energy efficiency of the information and communication technology sector. WASTE We have set challenging goals to reduce the amount of waste we produce at our manufacturing and office sites and to increase recycling.
10% DECREASE
WASTE GOAL
§ Reduce total waste by 10 percent in 2015 from 2011 levels (normalized to headcount) § Increase recycling rate to 90 percent by 2015
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 21
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
PERFORMANCE AND GOALS In 2012, we produced 7,044 tonnes of total waste. Total Waste
2008 Tonnes Tonnes per employee 21,194 0.351 2009 15,953 0.270 2010 21,586 0.367 2011
†
2012 7,044 0.284
8,730 0.320
Recycling/Recovery Rate*
2008 2009 2010 2011
†
2012
Percent 78% 77% 86% 75% 71% * The recycling rate that we’ve reported previously includes waste that is recycled and reused. The recovery rate adds waste that was sent to a facility to be burned for energy use (used as a fuel). The “energy recovery” waste adds approximately 3 percent to our rate.
Our total waste includes hazardous and non-hazardous wastes. Of this total, 97.5 percent is non-hazardous, and 2.5 percent is hazardous (including electronic waste in countries where electronic scrap is regulated as hazardous waste). Of the non-hazardous waste we generate, 61 percent is recycled, 7 percent is reused, 3 percent is burned for energy recovery and 0.1 percent is incinerated. We send only 29 percent to a landfill, and we continue to work to drive that percentage lower. We attribute the majority of the reduction in both our total waste and recycling rate in 2012 to organizational changes, which included the sale and divestiture of portions of our business. WATER Nearly all of the water we use in our own operations is for sanitary purposes in cafeterias and restrooms and for use in cooling towers. We use very little water in manufacturing. WATER USE PERFORMANCE In 2012, we used 799,000 cubic meters of water. This calculation is based on: § Actual water use covering 80 percent of total floor space § Estimated water use based on average water use per square foot for the remaining 20 percent
5% REDUCTION
WATER GOAL
Reduce total water consumption 5 percent by 2015 from 2011 levels.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 22
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
Water Use (In Thousands of Cubic Meters)
2008 Measured data Scaled up with estimates 1,919 2,699 2009 1,642 2,308 2010 1,739 2,331 2011 641 802
†
2012 638 799
WASTEWATER At most of our sites, we discharge our wastewater to public sewer systems for treatment in compliance with regulations. In the United States, we operate two industrial wastewater treatment systems to process a very small amount of wastewater from our research and development laboratories. These systems treat the wastewater for pH and metals before discharging to the public treatment system for further treatment in compliance with local regulations. VOLATILE ORGANIC MATERIAL The majority of volatile organic material (VOM) emissions result from our manufacturing lines where we use organic solvent-based fluids to clean the stencils used in our screen printing operations and when soldering electronic components onto circuit boards. We have significantly reduced our VOM emissions over the years by changing our processes and introducing substitutes. VOM figures are based on actual reported data as we capture the vast majority of these emissions through our data collection systems. PERFORMANCE AND GOALS In 2012, we emitted 7 metric tonnes of VOMs. We have reduced our VOM emissions significantly by changing cleaning and soldering processes at many sites that were responsible for the majority of emissions. Volatile Organic Material Emissions
2008 Tonnes 44 2009 25 2010 24 2011 7
†
2012 7
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 23
CORPORATE RESPONSIBILITY REPORT OPERATIONS AND THE ENVIRONMENT
REMEDIATION Motorola Solutions is involved in environmental remediation at several current and former manufacturing locations, and former waste disposal facilities. These sites were impacted by past activities that were common and accepted practices at the time. At the end of 2012, we had $64 million reserved to cover environmental liabilities. We share environmental liabilities and remediation expenses with other companies and organizations. NORTH INDIAN BEND WASH SUPERFUND SITE The North Indian Bend Wash (NIBW) site is an eight square mile area in Scottsdale, Arizona, U.S., where portions of the underlying groundwater were impacted in part by historical Motorola Solutions operations. In 1983, the EPA designated this area as the North Indian Bend Wash Superfund site following detection of trichloroethylene (TCE) in two public water supply wells. Motorola Solutions, Siemens and GlaxoSmithKline (known as the NIBW Participating Companies) are the principal companies responsible for the NIBW cleanup. Through 2012, we have spent more than $129 million on environmental cleanup activities in the Scottsdale area. More than 94 billion gallons of water have been pumped and treated at the NIBW site since the cleanup began. For more information, please visit this site.
PLANTATION, FLORIDA Historical operations in Plantation, Florida, U.S., resulted in an impacted parcel of the property in the area of a former lawful waste lagoon. In the 1980s, Motorola addressed the lagoon by removing a majority of the impacted soils. Motorola addressed the remaining impacts via a Hazardous and Solid Waste (HSWA) Permit that governed activities on the site up until Motorola Solutions’ most recent remediation efforts. Motorola Solutions addressed the groundwater impacts and completed a soil removal project addressing 27,595 tons of cadmium-impacted soil. We restored the formerly impacted area with low maintenance bahiagrass and trees, increasing the site’s green space and improving aesthetic value. Following completion of the excavation project, we submitted a Site Rehabilitation Completion Report and accompanying documentation, in pursuit of a Site Rehabilitation Completion Order. MACHIAS GRAVEL PIT SITE In cooperation with the State University of New York at Buffalo and the Wildlife Habitat Council, we are conducting a phytoremediation and habitat restoration project at a site in western New York State. The phytoremediation system uses a poplar tree barrier to remove low levels of volatile organic compounds from groundwater. We have re-seeded the site with native grasses and wildflowers and have installed bird and bat boxes at the site to foster habitat restoration.
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PRODUCTS AND THE ENVIRONMENT
We are shrinking the environmental footprint of our products, innovating to reduce adverse impacts and increase environmental benefits at each stage of the lifecycle—design, manufacture, distribution, use and end of life. This helps our customers reduce their environmental footprints and cut their energy costs through efficiency improvements. Our takeback programs provide added benefits through the reuse, recycling and proper disposal of unwanted or obsolete equipment. We consider the following environmental principles in our product design: § § § § § Comply with laws and regulations Use environmentally preferred materials Improve energy efficiency Reduce carbon footprint Reduce material consumption, including packaging § Increase the recyclable content of our products MATERIAL CONTENT Motorola Solutions is working to reduce hazardous substances in its products and to find environmentally sound alternatives, without compromising performance and quality. We have a continuing program to research and monitor independent scientific reviews of our materials’ impact on the environment and human health. The result is a growing knowledge resource about substances of concern and environmentally sound alternatives.
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REGULATORY REQUIREMENTS
A number of countries around the world have implemented regulatory restrictions on hazardous substances. European Union's Directive on the Restriction Of Hazardous Substances We voluntarily extended our compliance with the European Union's directive on the restriction of hazardous substances (RoHS) to cover all newly designed products, regardless of where they are sold worldwide. For additional information, download our EU RoHS Statement. China Management Methods China's Management Methods for Controlling Pollution from Electronic Information Products requires manufacturers to report and label usage of the same six hazardous substances listed in the EU RoHS Directive effective as of March 1, 2007. All Motorola Solutions products manufactured after March 1, 2007 and shipped into China comply with the labeling requirements of China Management Methods.
REACH REACH is a European Union substances regulation that became law on June 1, 2007 with phased deadlines to 2018. Motorola Solutions is actively managing and sharing information from our suppliers to meet our obligations and help our customers meet theirs. We are aware of potential future substance restrictions and work with our suppliers to find alternatives in advance. We have implemented our current obligations under REACH and will continue to comply as other obligations are phased in. Read our letter to our customers on our efforts to comply with REACH. If you have questions about specific Motorola Solutions products and conformance to any of these regulations, or substances that may be within the product, please contact your sales representative, or contact us via email.
PRECAUTIONARY APPROACH TO MATERIALS SELECTION We take a precautionary approach to materials selection and have compiled a list of 65 substance categories targeted for exclusion, reduction or reporting during the design and manufacture of our products. We divide these into three groups: § Banned substances — not permitted in any Motorola Solutions product at any level § Controlled substances — limited for use (at extremely low concentrations) in manufacturing processes or certain product applications, with use limits typically defined
by national or international environmental regulations § Reportable substances — not currently banned but their use is carefully monitored and control may be increased in the future Taken together, these three groups address past, current and future substance use restrictions for electronic products. We manage substances of concern by following regulatory requirements and referring to independent expert scientific reviews. Independent reviews of hazardous substances are conducted regularly by agencies such as the International Agency for Research on Cancer (IARC) and the World Health Organization (WHO).
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CORPORATE RESPONSIBILITY REPORT PRODUCTS AND THE ENVIRONMENT
The results and environmental health guidelines published by these organizations typically are based on the weight of scientific evidence for human and environmental exposures to chemicals and physical agents. In turn, regulatory agencies use IARC and WHO guidance to ban or control exposures to hazardous substances. When scientific evidence about a chemical or physical agent is limited or conflicting, our experts and engineers assess potential adverse impacts, risks of substitutes, needs for precautionary measures, and technical and economic feasibility. This process may lead Motorola Solutions to take voluntary measures to reduce, phase out or eliminate substances that currently are not banned or controlled by regulatory agencies. BATTERIES Batteries that are properly handled and disposed of do not have a detrimental effect on the environment. Our batteries are fully encased and do not release hazardous substances if they are used and disposed of correctly. We fully comply with the EU Battery directive. We voluntarily publish product data sheets that help our customers manage our three main types of batteries: § Nickel Cadmium (NiCd) product data sheet § Nickel-Metal Hydride (NiMH) product data sheet § Lithium Ion (Li-ion) product data sheet Please see this page for more information about recycling batteries. ENERGY EFFICIENCY We are improving energy efficiency across our product range and integrating alternative energy into infrastructure deployments, such as base stations that use electricity generated by wind and solar energy and back-up energy generated by hydrogen fuel cells. Our focus on energy
keeps us ahead of market trends and helps our customers reduce their environmental impacts and costs. It provides efficient, low-cost, secure and reliable energy in many applications and allows networks to be deployed in remote locations with limited connection to the electricity grid. PERFORMANCE AND GOALS Where applicable, all our current external power supplies for mobile computing and advanced data capture devices comply with: § U.S. Energy Independence and Security Act of 2007 § California’s appliance efficiency regulations § Australian and New Zealand energy performance requirements for external power supplies § South Korea MEPS regulation § European Commission (No 278/2009) energy performance requirements for external power supplies (level IV) § Swiss energy efficiency requirements The power supplies for the majority of our mobile computers meet the European Union’s Level V efficiency standards, and we are working to approve Level V efficient external power supplies throughout our entire portfolio. We ship all of our products for the enterprise sector with energy-saving settings enabled. CARBON FOOTPRINT OF OUR PRODUCTS Carbon footprinting helps us to understand the most effective way to reduce carbon dioxide emissions associated with our products. It also enables us to respond to the increasing number of data requests from customers trying to understand the impacts of their supply chain. Below are the results of our comparative partial lifecycle assessments (LCAs) for key products.
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ENTERPRISE MOBILITY
Bar Code Scanner Manufacturing Use Transport 73% 25% 2% Handheld Mobile Computer 77% 22% 1%
The majority of the lifecycle CO2 emissions associated with the barcode scanner (73 percent) and handheld computer (77 percent) used in the assessment result from manufacturing, largely due to the complexity of the devices. The use phase is less significant when compared to some of our other products as the devices are mostly operated sporadically. PUBLIC SAFETY
Portable Radio Manufacturing Use Transport 37% 53% 10% Base Station 2.13% 97.81% 0.06%
For the transportation phase, both inbound and outbound logistics are included. The assessments do not include the impact of accessories, packaging and user guides, and exclude the impacts of the end-of-life phase. Available data for recycling and disposal vary widely, and we are analyzing the current research to determine the most accurate assumptions. Motorola Solutions uses a third-party laboratory to complete LCAs of its products that follow the ISO 14040 and PAS 2050 LCA standards. The assessments were calculated using data collected from our manufacturing facilities, along with secondary data estimated using a thirdparty software tool. Results of LCAs are dependent on the calculation method, scoping and assumptions used. The mobile communications devices industry does not yet have commonly agreed on assessment criteria, which mean it is not always appropriate to compare LCAs conducted by different organizations.
The use phase is the most significant element of the carbon footprint for the portable radio (53 percent) used in the assessment, although manufacturing impacts also are significant (37 percent). Ninety-eight percent of the lifecycle impacts of the public safety base station used in this assessment occur during use. The equipment is often continuously in use, and each base station handles a large amount of data. A high-use phase value is not unexpected when looking at the long life and functionality of base station equipment. Background on our lifecycle assessments The above analysis focuses on the partial lifecycle impact (manufacturing, transport and use) of typical Motorola Solutions products from 2008 and 2009. In the calculations, we conservatively assume the following useful lifetimes: Base station – 7 years Handheld computer – 7 years Bar code scanner – 7 years Portable radio – 10 years
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INNOVATING FOR A SMARTER WORLD Information and communications technology (ICT) equipment, like most goods, has some adverse environmental impacts. However, efficiency and productivity gains provided by this equipment also have significant environmental benefits that often may be overlooked. ICT could reduce global CO2 emissions by 15 percent and save industry $750 billion in annual energy costs by 2020, according to research by The Climate Group (a non-profit) and Global e-Sustainability Initiative (GeSI), an industry group. The SMART 2020 report says the largest savings will be achieved by applying ICT to infrastructure and industry, particularly in buildings, logistics, electricity grids and motor systems. Using our technology, our customers are making their businesses more efficient and shrinking their environmental footprints. Here are some examples: § Our IMPRES™ batteries can be charged 150 more times than a standard battery, lasting 43 percent longer and reducing the number of batteries customers need to buy over the life of the product. § Our mobile computers, enterprise digital assistants, radio frequency identification
§
§
§
§
§
(RFID) handheld terminals and bar-code mobile terminal scanners help streamline supply chains, operations and distribution, saving time and improving asset efficiency. Our GPS and other logistics products help drivers navigate the most efficient routes possible—reducing fuel costs and CO2 emissions. Our mobile computers cut wasted time and fossil fuel use by empowering mobile workers and first responders with the ability to capture and exchange critical information remotely. Our Mobility Services Platform lets IT personnel update, troubleshoot and maintain all mobile devices from their desks— eliminating unnecessary travel, shipping and delays. Our TETRA MTS base stations are highly energy efficient, using approximately 100 watts, or less than a light bulb, bringing huge energy and cost savings for carriers upgrading their networks. Our IP-based virtual core architecture dramatically reduces the number of routers and servers needed by our ASTRO® and TETRA first responder networks. This hardware reduction results in significantly less energy used over the life of the systems.
INTEGRATING ALTERNATIVE ENERGY SOURCES Fuel cells for backup power on TETRA base stations Motorola Solutions has deployed the largest-ever number of TETRA base stations using hydrogen fuel cells for backup power. This demonstrates that alternative fuels can be used effectively to support the high reliability demands of public safety networks. The fuel cells replace diesel generators that emit greenhouse gases, take longer to start up, are less reliable and require more maintenance. As well as offering efficiency and reliability, fuel cells also have environmental benefits as they produce little noise, reduce the risk of spills and contamination, and create no local air emissions, only water vapor.
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Wind- and solar-powered radio services for first responders Motorola Solutions was contracted to provide radio services for police, security, fire and ambulance crews serving military bases and a NASA facility located across 3,200 square miles of desert in the United States. The initial system consisted of 10 sites, including one that was particularly inaccessible. Faced with prohibitively high costs to bring power lines to the site, Motorola Solutions drew on its significant experience of powering remote locations using off-grid energy. Four wind turbines and an array of solar panels provide all the system’s power, avoiding the need to build power lines or a road to bring fuel to the site. Independence from the grid means the base station will continue to operate during power outages. This alternative power system is highly reliable and saves money by lowering energy costs, as well as eliminating the high price of connecting the site to the grid.
PACKAGING We are reducing the weight and volume of our product packaging, offering bulk solutions to minimize shipping volume and costs, and expanding our use of recycled materials. For example, we’re starting to introduce a new starch-based packaging material in place of a petroleum-based, polyethylene foam cushioning. The new packaging is recyclable and biodegradable and, in just its first implementation, is expected to reduce foam packaging material by 6,878 cubic feet and corrugated packaging material by 85,000 square feet. In addition, the new packaging solution saves factory floor space and reduces shipping volume. For another product, we developed a customerspecific bulk packaging design that we expect will reduce packaging and printed material by more than 160,000 square feet. The new bulk solution lowers material costs, reduces shipping volume and reduces waste for our customer. All new and many existing products use packaging marking and materials that comply with regulations and industry standards, which aim to improve the environmental performance of packaging and prevent waste. Our packaging materials are stamped with internationally recognized recycling symbols. Where practical we specify minimum content of post-consumer recycled content to further promote recycling.
Wherever possible, we aim to reduce environmental impacts from freight packaging by: § Increasing packaging density, such as more products per case § Double stacking pallets on each shipment § Using cardboard boxes instead of wood crates to reduce weight CONSOLIDATING SHIPMENTS We are improving product packaging by: § Reducing product packaging to minimize bulk volume of shipments to customers § Providing alternative bulk packaging to customers § Ensuring all packaging materials are identified with internationally recognized symbols to facilitate recycling § Establishing a scorecard to assess the entire supply chain in implementation of green packaging initiatives It is not always possible to remove all printed manuals due to customer requirements and regulations mandating the inclusion of safety instructions in product boxes. However, where possible we replace printed manuals with online instructions. This can significantly reduce the size of the product box as well as the packaging and energy used in transportation.
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CORPORATE RESPONSIBILITY REPORT PRODUCTS AND THE ENVIRONMENT
RECYCLING We operate take-back programs on our own and in partnership with customers, retailers, recyclers and governments. By law, we are required to take back and recycle our products in the European Union and the European Economic Area under the Waste Electrical and Electronic Equipment Directive (WEEE) and in various other jurisdictions on a product-by-product basis. Our commitment goes beyond legislation. For example, we operate a take-back program in the United States and Canada for government and public safety equipment and products for the enterprise market such as mobile computers and barcode scanners. Customers can use an online booking system to PERFORMANCE
request collection of equipment. We continue to expand the program to other countries. Our products are designed to have a long useful life and to withstand extreme working conditions and environments. Customers often use our products for 12 or more years. Such durability helps reduce demand for raw materials. Unlike consumer products, these devices often have secure technology, and many customers prefer to manage disposal of these devices to ensure protection of data. However, Motorola Solutions can help customers recycle their products in a secure and environmentally friendly manner. Learn more about our take-back program.
HOW WE HANDLE EQUIPMENT RETURNS
Specialist companies process the equipment received through our takeback programs for reuse, recycling of parts and materials and, as a last resort, disposal in a safe and responsible manner. We ensure that our recycling suppliers comply with all regulatory requirements for disposal of electronic equipment and follow Motorola Solutions and industry standards. Like all suppliers, recyclers must abide by our supplier code of conduct. We give suppliers specific instructions on how to break down different types of equipment. If suppliers are unable themselves to recycle the equipment in the specified manner, they must observe it being safely destroyed by a licensed third party. We audit all potential new recycling suppliers before they are contracted, to ensure they meet our standards. We promote industry standards such as R2 and eStewards. We specify in contracts that electronic equipment must not be shipped to developing countries for disposal. If we have concerns that equipment will not be handled correctly in the country where it is collected, we will ship it to an alternative location. For example, equipment collected in some sub-Saharan African countries is processed in the U.K.
In 2012, we collected more than 620 tonnes of electronic equipment waste for recycling. This includes: § Take-back programs, both regulated and voluntary § Internal electronics recycling efforts § External electronics recycling events sponsored by Motorola Solutions Our figures do not include electronics recycled through other industry or partnership programs. Global Take-Back and Recycling Programs
2008 Tonnes 2560 2009 5162 2010 3904 2011† 1050 2012 620
HOW TO RECYCLE MOTOROLA PRODUCTS We run take-back initiatives around the world. Please visit our recycling page to learn more about how to recycle Motorola Solutions equipment, batteries and all other products.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 31
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SUPPLIERS
High labor and environmental standards in our supply chain strengthen both Motorola Solutions and our suppliers. We attach the same level of importance to managing our suppliers as we do to our own operations, and we work continually to improve conditions where necessary. Upholding high standards is essential in maintaining the quality of our products and success of our business. Collaboration with our industry peers is central to our approach. In 2012, our participation in the Global e-Sustainability Initiative (GeSI) industry organization, and our co-leadership of its supply chain working group, helped us advance our supply chain management, while simultaneously building the capabilities of our suppliers to manage their environmental and social performance. A particular area of focus is the work we are doing with our industry peers to improve the traceability of metals used in our products that are mined in the Democratic Republic of Congo (DRC). Motorola Solutions’ leadership in launching the Solutions for Hope Project has resulted in the establishment of a process for responsible sourcing of metals from the DRC. As of Dec. 31, 2012, eight leading electronics manufacturers, one automotive component manufacturer and an additional conflict-freecertified tantalum smelter have joined the project, in addition to the five founding participants. These efforts benefit all parties. We benefit from the high performance of efficient, responsible suppliers, and suppliers provide a much-needed boost to local economies. Economic opportunities in less-developed countries are enhanced by our suppliers, who create jobs, pay taxes and purchase local services. SUPPLIER CODE OF CONDUCT Motorola Solutions’ supplier code of conduct describes our corporate responsibility requirements for our suppliers. These requirements are consistent with the core tenets of the International Labour Organization's fundamental conventions and the United Nations Universal Declaration of Human Rights. It is Motorola Solutions’ policy to conduct business in compliance with the law and widely accepted norms of fairness and human decency (see Motorola Solutions code of business conduct), and we require our suppliers to act similarly. We also expect our suppliers to adhere to our human rights policy. As a condition of doing business with Motorola Solutions, we expect suppliers to conform to these requirements and expect their sources in the supply chain to do so as well. We assess conformance to these requirements and consider a supplier's progress in meeting these requirements and their ongoing performance in making sourcing decisions.
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Suppliers are expected to correct non-conformance issues identified during assessments. We want to work with our suppliers to improve conditions, because the situation for workers can deteriorate if we simply terminate contracts. If a supplier refuses or is unable to correct the non-conformance to our satisfaction, we will terminate the relationship as a last resort. Our requirements for supplier business conduct are: I. COMPLIANCE
Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. To enable us to evaluate supplier components and products for conflict-free status, if requested, suppliers must provide disclosures as outlined in the industry developed Conflict Minerals Reporting Template. VI. NO HARSH OR INHUMANE TREATMENT
Suppliers will maintain compliance systems and be able to demonstrate a satisfactory record of compliance with the law in their business conduct. II. ANTI-CORRUPTION
Suppliers will prohibit the physical abuse and harassment of employees, as well as the threat of either. VII. FREELY CHOSEN EMPLOYMENT
Suppliers will conduct their businesses without engaging in corrupt practices, including public or private bribery or kickbacks. Suppliers will maintain integrity, transparency and accuracy in corporate record keeping. III. NO UNFAIR BUSINESS PRACTICES
Suppliers will act with integrity and lawfully in the proper handling of competitive data, proprietary information and other intellectual property, and comply with legal requirements regarding fair competition, antitrust, and accurate and truthful marketing. IV. ANTI-DISCRIMINATION
Suppliers will not use forced, prison or indentured labor, including debt bondage. Suppliers will ensure that terms of employment are voluntary. If a supplier recruits contract or migrant workers, the supplier will pay agency recruitment fees and will ensure there are no unreasonable employment or relocation expenses. Suppliers will not require any worker to remain in employment for any period of time against his or her will, or adopt practices that restrict worker's ability to terminate employment. Workers will not be required to lodge "deposits" or hand over government-issued identification, passports or work permits as a condition of employment, unless required by law. VIII. NO CHILD LABOR
Suppliers will employ workers on the basis of their ability to do the job, rather than on the basis of their personal characteristics, conditions or beliefs. V. CONFLICT MINERALS
Suppliers will ensure that the materials (tin, tantalum, tungsten and gold) used in components and products supplied are conflict-free. Suppliers must ensure the procurement of these metals does not directly or indirectly finance or benefit illegal armed groups through mining or mineral trading. Suppliers are to establish policies, due diligence frameworks and management systems, consistent with the OECD Due Diligence Guidance for
Suppliers will ensure that their hiring practices are in conformance with International Labor Organization (ILO) Conventions for minimum age (Convention 138) and child labor (Convention 182). Suppliers are encouraged to develop lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet the minimum age requirements. Workers under the age of 18 should not perform hazardous work and should be restricted from night work if it interferes with educational needs.
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IX.
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Suppliers will recognize the right of workers to join or to refrain from joining associations of their own choosing and the right to collective bargaining, unless otherwise prohibited by law. In all cases, worker rights to open communication, direct engagement, and humane and equitable treatment must be respected. X. FAIR WORKING HOURS
Environmentally Preferred Products: Motorola Solutions values environmentally preferred products. We work with and encourage our suppliers to create products that are energy efficient, highly recyclable and contain significant amounts of recycled materials and low amounts of hazardous materials. To enable us to evaluate supplier components and products for environmental performance, suppliers must provide material disclosures as outlined in our controlled and reportable materials disclosure process. Ozone-Depleting Substances: It is Motorola Solutions’ policy to eliminate from our products any components—including components provided by our suppliers—that contain or that are manufactured with a process that uses any Class I ozone-depleting substance. As outlined in the Internal Revenue Service's Publication 510, the U.S. government imposes an environmental tax on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Suppliers need to provide certification that products imported into the U.S. do not contain or are not manufactured with a process that uses any Class I ozone-depleting chemicals. XIV. MANAGEMENT SYSTEM
While it is understood that overtime is often required, suppliers will manage operations in compliance with the law and ensure that overtime does not exceed levels that create inhumane working conditions. Suppliers will not require, on a regularly scheduled basis, work in excess of 60 hours per week or in excess of six consecutive days without a rest day. XI. WAGES AND BENEFITS
Wages and benefits paid will meet, at a minimum, applicable legal requirements. In any event, wages and benefits should be enough to meet basic needs. For each pay period, the supplier will provide workers with an understandable wage statement that includes sufficient information to verify accurate compensation for work performed. Suppliers will not permit deductions from wages as a disciplinary measure. XII. SAFE AND HEALTHY WORKING CONDITIONS
Suppliers will operate a safe and healthy work environment. Suppliers that provide housing or eating facilities will operate and maintain them in a safe, sanitary and dignified manner. XIII. ENVIRONMENTAL SUSTAINABILITY
Suppliers shall adopt or establish a management system that supports the content of this code. The management system will be designed to ensure (a) compliance with applicable laws, regulations and customer requirements related to the supplier's operations and products; (b) conformance with this code; and (c) identification and mitigation of operational risks related to the areas covered by this code. The management system should also drive continual improvement. MONITORING Monitoring helps identify suppliers whose practices do not align with our values and policies. It also raises awareness of our requirements and enables us to target opportunities to improve standards by taking corrective action. We focus our monitoring program on directmaterials suppliers that pose a high risk and those
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Environmental Management System: Suppliers of goods will have an Environmental Management System (EMS) in accordance with ISO 14001 or equivalent. The EMS must be implemented and functioning. Third-party registration is strongly recommended but not required.
CORPORATE RESPONSIBILITY REPORT SUPPLIERS
with which we want to establish deeper, longerterm relationships. We assess potential and existing suppliers for conformance with our supplier code of conduct and investigate reports of potential corporate responsibility issues from internal and external sources. While monitoring is important, we believe that lasting improvements will be achieved only if suppliers have the capability to manage worker rights and environmental impacts themselves. MONITORING PROCESS We take a risk-based approach to supplier monitoring using our supplier engagement model based on EICC and GeSI industry efforts. We require our suppliers to provide information on their labor and environmental practices. In 2012, we gathered, analyzed and managed such information via E-TASC, an online self-assessment tool, which enabled us to assess risks posed by a supplier, identify areas for improvement and target our site audits. Detailed onsite audits are conducted by a third-party firm commissioned by Motorola Solutions. We decide which facilities to audit based on information collected through self-assessments, specific reports made to our EthicsLine and other reporting channels, along with risk factors such as activity, location and reputation. Following the audit, we provide feedback to suppliers and work with them to correct the issues identified. We may use a follow-up audit, conducted by a third party or our supply chain team, to verify that suppliers have made the necessary improvements. PROGRESS IN APPLYING COMMON INDUSTRY TOOLS During 2012, 120 suppliers completed selfassessment questionnaires and shared information for 189 facilities. Over the past two years, more than 50 percent of our suppliers (based on spend) had completed a self-assessment questionnaire and received feedback.
RESPONDING TO FINDINGS Motorola Solutions has established four levels of severity for issues identified through monitoring: § PRIORITY RED: Severe issues that require immediate escalation to our senior management, including child labor, forced labor, slavery, debt labor, illegal dumping of hazardous materials, use of minerals associated with conflict and serious sanitary, health and safety conditions § PRIORITY ONE: Legal compliance issues or other issues that represent significant risk § PRIORITY TWO: Non-compliance with contractual terms, our expectations or other applicable codes or standards § PRIORITY THREE: Opportunities for improvement We want our suppliers to succeed, and we prefer to work with them to correct non-conformance issues identified in onsite audits. In serious cases, we will place the supplier on “new business hold” — meaning no new business will be placed until the issue is resolved. If a supplier refuses or is unable to cooperate, we will terminate the relationship as a last resort. For Priority Red, we require immediate containment actions to prevent the issue from worsening and to mitigate the negative impact. We require corrective actions for issues at all levels except Priority Three. We ask suppliers to provide a date for completion and work with them until all issues are resolved. These deadlines are set on a case-bycase basis, and it may take several months to resolve the most complex issues. Since implementing our supplier code of conduct in 2003, we have not terminated a contract solely because of corporate responsibility issues. We have, however, refused to enter relationships with new suppliers for this reason. MANAGEMENT REVIEWS We use management reviews to track progress against our supply chain goals. Each quarter, senior procurement managers assess progress against a
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scorecard, which includes metrics for the number of open and closed supplier audit issues. Additionally, our executive committee receives quarterly updates on the program, and our CEO reviews the program annually. BEYOND TIER-ONE SUPPLIERS Through our supplier agreements, we require our tier-one suppliers (suppliers from which we buy directly) to monitor the corporate responsibility performance of their suppliers. We also require them to provide a list of their suppliers (our tiertwo suppliers) on request. Tier-two suppliers are not included in our regular audit schedule, although we may take part in joint audits with our tier-one suppliers in response to specific reports of issues at their suppliers. PERFORMANCE AND GOALS In 2012, we conducted 14 site audits of Motorola Solutions suppliers based on the reviews of selfassessment questionnaires. The audits were in China, the Czech Republic, Japan, Korea, Malaysia, Mexico and Singapore. As part of our focus on capability building, we are using the knowledge gained through auditing to develop training programs tailored to match the needs of individual countries. We held nine training sessions in 2012 to help suppliers understand our expectations and standards and develop the skills to apply these in their factories. Most Common Supplier Audit Findings in 2012
Child labor avoidance Risk assessment and risk management Occupational injury and illness Working hours Wages and benefits Emergency preparedness 8 8 9 21 8 14
Supplier Corporate Responsibility Goals Goals for 2012 Continue risk-based assessment program. Progress in 2012 We completed 14 audits as a result of our riskbased assessment program. Plans for 2013 § Continue risk-based assessment program, with a focus on driving audits for high-risk suppliers using self-assessment questionnaires and reports of issues § Ensure that suppliers accounting for 75 percent of our spend complete a self-assessment questionnaire at least every two years § Conduct four supplier training sessions Detailed Audit Findings
Type of Supplier Audited Tier 1 – Part/component manufacturer Tier 1 – Electronic manufacturing process / original design manufacturer Tier 2 Total 10 4 0 14
Reason for Audit Planned Issue response New suppliers Follow up 10 1 3 0
Number of Issues Identified
Ethics Business integrity and no improper advantage Disclosure of information Protection of intellectual property Protection of identity 1 1 1 1
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Ethics Fair business, advertising and competition Community engagement 1 0
Management System Performance objectives with implementation plan and measures Training Communication 4 2 1 0 5 1 2 154 97%
Labor Freely chosen employment Child labor avoidance Underage workers Protection of workers aged 16 and 17 Working hours Wages and benefits Humane treatment Non-discrimination Freedom of association 4 8 0 0 21 8 1 3 4
Worker feedback and participation Audits and assessments Corrective action process Documentation and records TOTAL – ALL AUDITS Percent of supplier issues closed/resolved
AUDIT FINDINGS ANALYSIS Our audits in 2012 identified the findings below. We are working with the suppliers to resolve any issues identified. Freely Chosen Employment In 2012, we identified four issues related to freely chosen employment. The issues primarily related to holding of foreign contract workers’ passports, restriction of workers’ mobility at work, lack of formal terms and conditions in worker contracts, and lack of policies or procedures for the management of foreign contract workers by labor brokers. Child Labor Avoidance
Health and Safety Occupational safety Emergency preparedness Occupational injury and illness Industrial hygiene Physically demanding work Machine safeguarding Dormitory and canteen 4 14 9 5 4 4 5
Environment Environmental permits and reporting Pollution prevention Hazardous substances Wastewater and solid waste Air emissions Product content restrictions 4 1 8 4 2 0
The eight issues relating to child labor avoidance related to lack of policies or procedures in place at a facility to verify the age of workers. No under-aged workers were identified in audits. Working Hours Similar to prior years, cases of excessive or higher than legally permitted working hours were one of the most common findings of the onsite audits conducted in 2012, with 21instances identified. We measure suppliers’ working hours against our supplier code, industry norms and applicable legal requirements. This means that a single supplier can have multiple working hours-related findings.
Management System Company commitment Management accountability and responsibility Legal and customer requirements Risk assessment and risk management 2 5 0 8
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Corrective actions to reduce working hours continue to be a significant challenge for many factories in China that need to balance workers’ monetary needs, availability of labor and labor standards with production requirements. In 2012, Motorola Solutions continued its approach of monitoring suppliers’ progress in reducing working hours according to approved action plans. Wages/Benefits There were eight findings relating to incorrect payment of wages and benefits in 2012. The most common findings related to miscalculation of wages for overtime hours and the absence of a comprehensive pay statement to help workers understand their compensation. Humane Treatment There was one audit finding related to humane treatment. The findings involved lack of written rules and regulations regarding disciplinary procedures and lack of training for supervisors in this area; lack of procedures to investigate reports of inhumane treatment against workers; the use of fines in the factory; no written grievance procedures; and no policies and procedures for sick leave and maternity leave. Non-discrimination The three non-discrimination findings related to a lack of written policies on non-discrimination and absence of written grievance procedures. Freedom of Association There were four findings in this area, which involved a lack of written policies and procedures addressing freedom of association. Occupational Safety There were four findings in the area of occupational safety, which involved an absence of or improper use of personal protection equipment. Findings also related to lack of proper training in chemical handling, chemical exposure and emergency response.
Emergency Preparedness There were 14 findings relating to emergency preparedness, making it the one of the most common findings. Deficiencies identified included insufficient fire or evacuation drills, blocked or locked exits; blocked or missing fire extinguishers; lack of proper eyewash stations; and lack of fire exit signage and/or exit lighting. Most suppliers would hold drills during day working hours only, so second shift workers did not benefit from the drills. Findings also related to little or no contingency planning and or training for workers on how to respond to an incident. Occupational Injury and Illness Of the nine occupational injury and illness findings, most related to general safety issues including lack of programs, improper training, worker exposure, lack of personal protection equipment and chemical handling. Hazardous Substances There were a total of eight instances identified. The majority of these findings were related to improper storage of chemicals, the absence of proper secondary containment to prevent spills, lack of proper chemical data sheets and the use of unlicensed waste disposal vendors. Management Accountability and Responsibility There were five findings relating to management accountability and responsibility. These involved lack of formal management systems, goals, senior management involvement and training on established policies and procedures. Risk Assessment and Risk Management There were eight findings related to risk assessment and management. These findings were a result of poor planning and the lack of risk assessment on the part of the supplier and a failure to provide training to the workers on how to respond to an incident. Most suppliers did not perform the required job risk assessments associated with facility processes and worker operations.
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Training We help our suppliers resolve issues identified during the monitoring process, which encourages them to develop the awareness, systems and skills to deal directly with corporate responsibility issues. However, we recognize the limitations of monitoring and realize that lasting improvements will be achieved only if suppliers have the capability to manage worker rights and environmental impacts themselves. We held nine training sessions in 2012 to help suppliers understand our expectations and standards and develop the skills to apply these in their factories.
The training went beyond raising awareness of our supplier code by providing guidance on how suppliers can establish internal corporate responsibility and monitoring programs for their own supply chains. Representatives from more than 321 supplier companies attended and participated in the interactive training sessions as well as Q&A sessions with group discussions. Through our participation in joint EICC and GeSI activities, we developed new training materials, including a course to raise awareness of the importance of ethical purchasing among procurement professionals and a module aimed at factory managers.
CONFLICT MINERALS UPDATE
Motorola Solutions is extremely concerned about the social and environmental conditions in some mines that supply metals to the electronics industry. The longstanding civil war in the eastern provinces of the Democratic Republic of Congo (DRC) has impacted many mines, which are forced to contribute revenue to the rebel forces associated with brutal human rights abuse. Mining activities that fuel conflict are unacceptable. Together with our peers, we are working to support the development and implementation of a tracking and validation system to ensure these raw materials come from responsible sources free from association with armed conflict.
CONFLICT MINERALS UPDATE Our products contain various metals, including tantalum, tin, tungsten and gold, which originate in mines around the world. Any association with financing armed conflict is unacceptable to us. We also require high labor and environmental standards and make concerted efforts to drive improvements. Since we do not procure these materials directly from mines, we expect our suppliers to apply our standards to their own suppliers and propagate good standards throughout the electronics supply
chain. For more than five years we had asked our tantalum capacitor suppliers to certify in writing that they were not sourcing conflict materials from the Democratic Republic of Congo (DRC). While well intentioned, this initiative alone was not sufficient to determine the true origin of the minerals in our products. Our priority is to lend our support to work to establish a credible, independent system that enables companies to verify the sources of the metals in their products while still allowing legitimate, verified conflict-free minerals from the DRC to enter our supply chain. Motorola Solutions
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supports the development of regulations and standards that facilitate this goal. U.S. LEGISLATION ON CONFLICT MINERALS The Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in July 2010. A provision of this law requires companies to report to the Securities and Exchange Commission (SEC) and disclose on their websites whether any tin, tantalum, tungsten or gold are used in their products and, if so, whether any of these materials originate in the DRC or its adjoining countries. The law applies to publicly traded manufacturing companies that use certain metals in their products. During 2011, we met with representatives of the SEC along with the nongovernmental organization PACT to brief them on the Solutions for Hope project and how the proposed regulation will affect it. We also met with the Government Accountability Office and Senate and House staff to discuss issues around conflict minerals and the progress made through the Solutions for Hope approach. The SEC issued its final rules in August 2012. The new rule requires companies using materials from the DRC and adjoining countries to describe the due diligence steps they have taken to ensure the metals are from responsible sources. RECENT PROGRESS Independent Efforts Motorola Solutions has been working to identify which of its products could potentially contain conflict-related minerals. Our rigorous material declaration process has enabled us to better understand the applications of many different types of metals, including metals associated with the conflict in the DRC and included in the recent U.S. legislation on conflict minerals. Motorola Solutions is working to increase awareness of the conflict minerals issue among the electronics industry and other sectors. We have updated our supplier training and communication materials and have welcomed several opportunities to engage through industry groups
and supply chain meetings. We have sponsored several conflict minerals meetings to raise awareness in other industries, participated in panels at conferences and workshops, and led sessions at OECD meetings to help develop the OECD Due Diligence Guidance. We continue to include a clause in our standard supplier contract stating that we will source only products that are free from minerals that directly or indirectly finance or benefit illegally armed groups Solutions for Hope One of the most encouraging developments of 2012 was the progress achieved by the Solutions for Hope project, a pilot program to create a closed-pipe system of mining conflict-free tantalum from the DRC. Motorola Solutions helped create the initiative in partnership with a major supplier of electronic capacitors. Capacitors are made with tantalum, a proportion of which is mined in the DRC. The Dodd-Frank Act may have the unintended consequence of creating a de facto ban on trade in minerals from the DRC. Millions of people in the DRC depend on artisanal mining, many operating in regions where conflict is not present. Their livelihoods and the economic stability of the region have been threatened by the de facto ban. Solutions for Hope has established a closed-pipe supply line – mine, exporter, processor, component manufacturer and end user – verified as free from interference from armed groups through an independent audit by a former consultant to the United Nations Group of Experts. Tantalum began flowing through the system created by the Solutions for Hope Project in July 2011, and Motorola Solutions was the first company to include the conflict-free capacitors in its products when they became available. Motorola Solutions continues to support the sourcing of conflict-free material from the DRC and Great Lakes Region. In July 2011 and again in January 2012, we visited the DRC to review the operations at the two mine sites that are part of the Solutions for Hope project. As part of the visits we traveled the transport routes of the minerals
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and met with local and provincial governmental representatives. As part of the due diligence process, all points in the process have been visited. This includes the mines, trade route, point of export from the DRC, the smelter and the supplier. Motorola Solutions and its partner worked with stakeholders to evaluate the pilot so that lessons can be embedded in other initiatives and the program can be improved and expanded. As part of the January 2012 visit, an independent auditor validated the Solutions for Hope Project, and it has now moved from a pilot project to a full-scale, ongoing project. We used our findings to help inspire and work with several stakeholders to establish the Conflict Free Tin Initiative (CFTI), which uses the closed-pipe concept to source tin from a mine located in the DRC province of South Kivu. The Solutions for Hope project demonstrated proof of concept, and the CFTI is demonstrating proof of scalability. The model developed for Solutions for Hope can be used by other companies that wish to demonstrate a responsible supply chain while continuing to use DRC-mined minerals. Other Industry Efforts We are an active contributor to other industry efforts to tackle the conflict minerals problem. We believe working together will achieve faster results than tackling these challenges alone. With that in mind, we are preparing our supply chain management processes to best leverage the industry-wide approach. Motorola Solutions coleads the EICC and GeSI extractives workgroup, which has made progress in driving greater transparency in the electronics industry supply chain. In 2010, Motorola supported the ITRI Tin Supply Chain Initiative (iTSCi) pilot project that allowed for tracking/tracing of materials from the mine to the point of export. The Motorola Foundation provided a $30,000 grant to support ITRI’s traceability work. The iTSCi process represented an important first step toward establishing a program to enable the responsible sourcing of materials from the region. Motorola participated in an iTSCi fact-finding mission to the DRC and Rwanda to better
understand the conditions on the ground. The delegation met with numerous provincial government officials, visited multiple mineral trading houses, toured a tin and gold mine and met with local non-governmental organizations in North and South Kivu. In 2011, Motorola Solutions supported and became a founding member of the Public-Private Alliance for Responsible Minerals Trade (PPA). Motorola Solutions serves on the Governance Committee. The PPA aims to bring together key stakeholders to achieve lasting solutions to this issue. The main participants in the PPA are the U.S. government, private sector companies and trade associations from a range of industries, NGOs and the International Conference on the African Great Lakes Region (ICGLR). In 2012, we participated in the PPA’s regional alignment meeting, which brought together the main participants from the region that are implementing the necessary systems to help verify and validate that the minerals from that region are conflict-free. The PPA will focus on helping to grow existing programs and systems for businesses to source minerals from mines that have been certified as conflict-free and will provide a platform for coordination and dialogue among the government, industry and civil society participants. PLANS AND GOALS We will continue to champion more responsible metal sourcing by engaging our suppliers, by participating in industry events and by participating in collaborative efforts with other stakeholders, including mining companies, NGOs, labor organizations involved in mining, other industrial sectors that purchase and use metals, the governments and multi-government organizations with jurisdiction over these issues, and end users. As of 2012, we have initiated a pilot program to assess our suppliers using industry tools and standards developed by the EICC and GeSI for identifying and reporting the origins of conflict minerals in preparation for compliance with the SEC reporting requirement in 2013. We also will continue to support other industry efforts to develop closedpipe systems for mining conflict-free minerals.
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MATERIALS DISCLOSURE PROCESS We require our suppliers to disclose an extensive list of Motorola Solutions’ banned, controlled and reportable substances as well as request recycled material content for each part supplied to Motorola Solutions. We do this to fully understand and track the material content of our products, comply with regulations, prepare for future regulations and control and improve the environmental profile of our products. Motorola Solutions has taken a proactive approach and compiled a list of 65 substances or substance groups targeted for exclusion, reduction or reporting during the design and manufacture of its products. The list is divided into three sections: § Banned substances are not allowed for use in any Motorola Solutions product at any level § Controlled substances are limited for use in manufacturing processes or certain product applications with use limitations typically defined by national or international environmental regulations § Reportable substances are not currently banned or controlled for use but may be in the future, or we have identified the need to understand their use as part of our environmentally conscious design process or for end-of-life management OZONE-DEPLETING SUBSTANCES Materials suppliers to Motorola Solutions are required to certify that products imported into the United States do not contain or are not manufactured with processes that use any Class I ozone-depleting chemicals (ODCs). To learn about this process, please review the Motorola Supplier ODC certification form. Our reporting requirements help us to comply with current laws, assess the impacts of future requirements and identify better alternatives to hazardous substances in our products. Learn how to disclose material content to Motorola Solutions.
KEY LEGISLATION Our products are distributed worldwide and are affected by a multitude of legislation — both local and global. Driven by growing concern over the effects of hazardous substances on health and the environment, governments in every region have introduced regulations restricting the sale of products containing certain substances. These cover a broad range of products, including electronics. Motorola Solutions continually monitors worldwide legislation, laws and regulations related to substances. While the regulations may apply only to a particular region or country, as a global company we support harmonization of substance standards. It is critical that our suppliers adhere to the hazardous substance regulations. For a description of key regulations, please see our Materials Disclosure section. RESOURCES AND TRAINING Motorola Solutions requires full disclosure from suppliers on materials and substances of concern, in accordance with the W18 Controlled and Reportable Materials Disclosure Specification. Learn more about our W18 requirements and reporting FAQs. Motorola Solutions provides resources and training to assist our suppliers, including these tools: § Motorola Green Purchasing: W18 and Compliance Connect™ introduction and training § How to replicate items in a Compliance Connect file If you are a supplier and you have questions, contact Motorola Solutions at [email protected]. SUPPLIER DIVERSITY Supplier diversity means ensuring that businesses owned by women and minority groups are included in a company’s supplier selection process.
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In the United States, the government and many of our business customers require that we source from diverse suppliers. Beyond compliance, we recognize that supplier diversity promotes innovation and creativity and allows us to meet the needs of customers and consumers around the world. Our supplier diversity team identifies diversityowned businesses that can potentially bid on procurement opportunities. We have set goals to increase the proportion of our procurement spend with diversity businesses. For inquiries regarding our supplier diversity program, email us at [email protected].
PERFORMANCE AND GOALS Since January 2004, Motorola Solutions has spent more than $3.0 billion with diversity suppliers. In 2012, Motorola Solutions spent 16.2 percent of U.S. federal procurement spend with diversity suppliers. Diversity businesses supplied us with a variety of products and services such as accessories, cables, engineering, logistics, packaging and travel. § Motorola Solutions exceeded its goal for 16 percent of U.S. federal procurement spend to be with diversity suppliers for 2012.
Percent of U.S. Supplier Spend with Tier-One Diversity Suppliers
Motorola, Inc. 2008 U.S. 8.7% 2009 9.2% 2010 12.2% Motorola Solutions 2011† 14.7% 2012 16.2%
SUPPLIER DIVERSITY PLANS In 2013, Motorola Solutions will focus on achieving 16 percent of its U.S. procurement spend with businesses owned by minorities, women, veterans and other recognized diversity businesses.
2012 Goals Achieve 16 percent of U.S. tier-one supply chain spend with diversity suppliers. 2012 Progress In 2012, we spent 16.2 percent of U.S. tier-one supply chain spend with diversity suppliers. 2013 Goals Achieve 16 percent of U.S. tier-one supply chain spend with diversity suppliers.
HOW WE FIND DIVERSE SUPPLIERS We review the databases of the following organizations to identify small and diverse suppliers: § § § § § § National Gay Lesbian Chamber of Commerce National Minority Supplier Development Council U.S. Small Business Administration Women’s Business Enterprise National Council WEConnect International U.S. state and local government certifying agencies for minority-owned, women-owned and disabledowned businesses
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 43
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DEFINITIONS In the United States, diversity suppliers are defined as businesses that are at least 51 percent owned, operated and controlled by one or more persons who are: § A racial or ethnic minority, including African American, Asian Indian American, Asian Pacific American, Hispanic American or Native American § Female § Gay, lesbian, bi-sexual or transgender § U.S. veteran or U.S. service disabled veteran In other countries, definitions vary. In general, to be considered a racial or ethnic minority, persons must be citizens of the country where their business is headquartered and be of an officially recognized socially or economically disadvantaged ethnic minority group. Additionally, businesses certified as Historically Underutilized Business Zone (HUBZone) by the U.S. Small Business Administration are considered diversity suppliers. IN THE UNITED STATES We promote diversity in tier-one suppliers (those from which we buy directly) and tier-two (those that supply tier-one). We participate in the Technology Industry Group (TIG) with other supplier diversity professionals from U.S.-based telecommunications companies. Through TIG, we advocate the expansion of supplier diversity initiatives among our customers, our peer companies and our suppliers. Outreach We work with diversity suppliers to make sure they are aware of opportunities to supply Motorola Solutions. We are a member of the National Minority Supplier Development Council, WEConnect International and the Women's Business Enterprise National Council, and our supplier diversity manager serves on advisory committees at these organizations.
OUTSIDE THE UNITED STATES We began to expand our supplier diversity programs outside the United States in 2003. Our supply base includes diversity suppliers in China, India, Malaysia, Singapore and South Africa. Before we can establish a supplier diversity program in countries without defined diversity programs, we need to identify the minority groups in that country. This can be a challenge. For example, laws or culture may prohibit asking questions about the ethnicity or gender of the business owner. Some countries have no agreement on how to define a minority group, and other countries have large numbers of different minority groups. For example, China has 55 ethnic minorities. We work with local diversity organizations to identify minority categories and to contact diversity suppliers. In 2008, we became a founding member and provided seed funding to the Minority Supplier Development (MSD) China, which aims to certify ethnic minority-owned businesses in China. We are a member of the National Minority Supplier Development Council’s international advisory committee. The committee is helping to develop organizations in Australia, Canada, China, South Africa and the U.K. that will certify ethnic minority-owned businesses in those countries.
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CORPORATE RESPONSIBILITY REPORT EMPLOYEES
EMPLOYEES
Motorola Solutions works to attract, develop and retain top talent by treating people fairly and providing them with a competitive rewards package. We seek to build an inclusive culture and value diversity of thought and experience. This improves our understanding of markets and enables us to create innovative products to help our customers be their best in the moments that matter. We invest in employees so they can reach their full potential, providing opportunities for professional development at every level. GLOBAL WORKFORCE In 2012, 98 percent of our global workforce of approximately 22,000 employees was full-time, and 2 percent was part-time.
GLOBAL WORKFORCE
6% 21% 47% 26%
TOTAL REVENUE
8% 21% 13% 58%
North America Europe, Middle East, Africa
Asia Pacific Latin America
North America Europe, Middle East, Africa
Asia Pacific Latin America
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EMPLOYEE ENGAGEMENT We are committed to building an engaged global workforce. We believe engaged employees take a vested interest in our success and are willing to go the extra mile, achieve goals and perform at their best. Communication is a big part of employee engagement at Motorola Solutions. We communicate regularly with our employees to keep them up-to-date on our business, to encourage their involvement in company activities and to solicit feedback on our performance. We also encourage our employees to communicate with one another through our internal social media channels. Managers play a central role in our employee communications strategy – but we also communicate with our employees in a number of other ways, such as: § § § § § § § § § § Video and email messages from senior leaders Our intranet site Weekly news e-bulletins Town hall meetings and employee focus groups Online Q&A forums and knowledge-sharing communities Onsite TV news stories Trade show blogs and highlights Internal social media including blogs, personal profiles and networking pages External social media such as Facebook and Twitter Idea Space, our virtual marketplace that acts as a repository of creative ideas
social media, job postings, employee referral programs, job fairs and global university partnerships. Once hired, we provide all employees with the opportunity to learn and progress through: § Experience – on-the-job learning § Feedback – personal development through coaching and mentoring § Education – numerous training opportunities PERFORMANCE MANAGEMENT All of our employees participate in our performance management process. In 2012, we made a significant change to this process and eliminated performance ratings for all employees. While we remain a performance-based organization, we realized performance ratings added an unnecessary level of complexity to the process and promoted a culture of evaluation and labels. Instead, we want to foster a culture of coaching and learning that’s consistent with our values and purpose. By eliminating ratings, we’ve strengthened performance management by putting its focus back where it belongs: on regular dialogues between employees and managers that consistently emphasize coaching for improvement and recognition of positive performance. TRAINING AND DEVELOPMENT We know our talent is a competitive advantage. That is why we work hard to hire the best and brightest from around the world and invest in their continuous learning so they can generate the best return for the company. TECHNICAL, SALES AND OTHER FUNCTIONAL TRAINING As the company innovates and launches new products, and as our end-to-end solutions grow in complexity to meet customers’ evolving business needs, employees must constantly grow their technical and sales knowledge. From instructor-led classroom training to virtual instructor-led classes, self-paced e-learning, professional games, mobile learning and social learning, employees are empowered to learn in their preferred styles and mediums. We implemented a new learning
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Additionally, employees are empowered to provide direct feedback to management via face-to-face dialogues, online feedback surveys, lunch and learn sessions, and other more informal employee discussion sessions. TALENT ACQUISITION Identifying the right talent is a top priority for Motorola Solutions. We use a variety of competitive recruiting practices to hire experienced and entry-level talent. These practices include
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management system and a global learning help desk for all employees, further enhancing their learning experience. To extend the reach of our global corporate library, we licensed a business book summary service. With this service, employees have unlimited access to thousands of business book summaries for download to their computers or mobile devices. The Motorola Solutions Certification Program continued to expand in scope and was rolled out in all regions. The program builds and validates employees’ technical and sales competencies and their ability to effectively serve partners and customers before and after the sale. LEADERSHIP DEVELOPMENT In addition to developing employees’ work skills, it is just as important to develop the right corporate values. At Motorola Solutions, our values govern how we behave and make decisions as an organization. Our Leadership Model defines the eight leadership competencies and behaviors we expect of all Motorola Solutions employees: § § § § § § § § Lead change Think strategically Focus on customers Develop talent Collaborate and influence Execute flawlessly Drive results Demonstrate sound judgment
OTHER EDUCATIONAL PROGRAMS The Motorola Solutions Global Education Assistance Program provides reimbursement to employees for expenses related to taking approved courses that may lead to an academic degree or certificate from a college or university that is accredited or recognized by a reputable official body. The Education Assistance program is a differential investment in Motorola Solutions’ future and is provided to improve the skill sets of select employees who will help drive Motorola Solutions’ success. Degree programs and/or individual courses in the following disciplines will typically qualify for reimbursement under Motorola Solutions’ Global Education Assistance Program. § § § § § § § § Business (i.e., Marketing, Accounting, Finance) Computer Science Engineering Human Resources Logistics/Materials Management Sales/Marketing Technology
In addition, disciplines/courses that may specifically apply to the employee’s current job function, if not listed above, also may be eligible. PERFORMANCE IN 2012 In 2012, we invested $10.1 million globally in training and development. Training evaluation scores – from courseware quality to estimated return on training investment – have consistently been on par with the Metrics that Matter industry benchmark. INCLUSION AND DIVERSITY We recognize innovative ideas and solutions are by-products of a collaborative, inclusive, empowered and supportive environment. Thus, we actively seek, embrace and encourage diversity of thought, attributes, experiences, opinions, cultures and abilities. By celebrating our similarities, while
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Employees have several tools to assess their leadership skills and build leadership development plans, including a self-assessment, behavior checklist and a curriculum of instructor-led and virtual instructor-led courses. We offer a series of leadership development courses that are available to every Motorola Solutions employee. Our internal online leadership portal highlights positive examples of leadership through podcasts, senior leader videos, employee success stories and development planning tips. It also links to other websites that offer leadership development tools and information.
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leveraging our unique differences, we enable a globally inclusive, high-performing work culture to thrive. We believe our inclusive culture is a main source of our competitive advantage. We focus our internal efforts on: § Leadership development – providing the “right” learning and talent opportunities for everyone § Employee engagement – ensuring employees are highly engaged at every level § Cultural awareness – developing global, cross-cultural competencies We build partnerships with diverse organizations to help us stay current on inclusion and diversity next practices, employee engagement, and recruitment and retention strategies. We currently have partnerships with the following organizations: § American Foundation for the Blind § Career Opportunities for Students with Disabilities § Diversity Best Practices § Hearing Loss Association of America § League of Black Women § National Association of Asian American Professionals § National Society of Hispanic Professionals § National Spinal Cord Injury Association § National Urban League § Out & Equal § Women in Technology International § U.S. Business Leadership Network § YWCA Through the Motorola Solutions Foundation, we support organizations that focus on women and minorities who currently are underrepresented in the science, technology, engineering and math (STEM) disciplines.
OUR BUSINESS COUNCILS Our business councils help reinforce our commitment to inclusion by raising cultural awareness, sponsoring internal events and partnering with external organizations. They also provide professional development opportunities and mentoring to our employees around the world. Currently, we have six business councils, which are all led by Motorola Solutions executives and are open to all employees: § Asian Business Council § Black Business Council § Gay, Lesbian, Bisexual and Transgender Business Council § Latino Business Council § People with Disabilities Business Council § Women’s Business Council PERFORMANCE IN 2012 In 2012, the percentage of females in senior management globally was 15 percent. The percentage of people of color in U.S. senior management (directors and vice presidents) was 14 percent, and the percentage of senior management outside the United States was 21 percent. Workforce Demographics
2010 Senior Management* by Region U.S. and Canada Europe, Middle East and Africa Asia Pacific Latin America Global Senior Management* by Gender Male Female 83% 17% 84% 16% 85% 15% 87% 9% 3% 0% 80% 12% 8% 1% 79% 12% 9% 0% 2011
†
2012
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 48
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2010 Global Employees by Gender Male Female U.S. Senior Management* by Race Caucasian People of color U.S. Employees by Race Caucasian People of color *Directors and vice presidents 70% 30% 85% 15% 69% 31%
2011
†
2012
Short-Term Incentives and Employee Recognition All of our employees participate in either an annual incentive plan or a sales incentive plan. Our annual incentive plan aligns our employees’ performance with our business goals – and it rewards our employees primarily based on our business results. Top performers also have the potential to earn an additional annual incentive award. The better an employee performs, the greater his or her total annual incentive plan award can be. Our sales incentive plans reward our sales employees when they achieve or exceed key salesrelated goals. In 2012, we paid our employees approximately $325 million through both our annual and sales incentive plans, based on 2011 performance. Our employee recognition program rewards our employees for exceptional behaviors and results. We also offer special recognition awards for technical excellence. Long-Term Incentives and Employee Stock Purchase Plan In 2012, we awarded restricted stock units (RSUs) to our eligible employees. For some employees (including our vice presidents), we continued to award stock options and a cash-based long-term incentive plan. Through our 2012 employee equity grants, we awarded approximately 2.9 million RSUs and stock options to more than 2,300 employees. Our employees also purchased 1.42 million shares of Motorola Solutions stock through our employee stock purchase plan, which provides our employees with a 15 percent discount on purchases of Motorola Solutions stock. Approximately 36 percent of our employees in 29 countries currently participate in our employee stock purchase plan.
70% 30%
70% 30%
87% 13% 70% 30%
86% 14% 71% 29%
TOTAL REWARDS We design our rewards programs to attract, retain and motivate the right people, in the right place, at the right time. We provide our employees with a comprehensive and competitive rewards package, including market-driven base salaries, incentive awards that are based on the overall success of our business and the individual performance of our employees, paid time off, health and wellness programs, and retirement and savings plans. Each year, we review our rewards programs to make sure they are competitive with local market practices in the industries and countries in which we operate. COMPENSATION We share our financial success with our employees by offering compensation packages that are linked to individual and business goals. Our compensation programs provide competitive, performance-based pay through three components: Base Pay Every year, we review local market pay practices to ensure our employees’ base pay is market competitive. In 2012, we offered merit increases and/or cost of living allowances in most countries in which we operate.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 49
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BENEFITS We provide comprehensive benefits coverage for our employees such as health and wellness programs, retirement and savings plans, life and disability insurance, and commuter benefits. We align our benefit offerings to market standards in each country in which we operate. HEALTH AND WELLNESS PROGRAMS We recognize the importance of good health to our employees and their families. We provide health care coverage or a cash contribution for employees in most countries. We also offer online resources so our employees and their families can learn more about the benefits we provide. We encourage all of our employees to stay fit by promoting the importance of wellness and good nutrition. In the United States, we provide health and wellness programs that vary by location, such as onsite fitness centers and medical clinics, free medical screenings, wellness seminars, health coaching and recreational sports leagues. We also provide healthy food choices and display nutritional information in our cafeterias. We offer dependent and family care programs such as maternity and paternity leave and support, flexible spending accounts for health care and child care, and family resource and referral programs (such as our employee assistance program). Our LIVESMART Challenge enables our U.S. employees to accumulate points when they use preventive health care services and participate in wellness programs such as weight loss and smoking cessation. These employees can earn up to $200 after completing certain requirements in the areas of self-care, nutrition, weight management, exercise, stress management and other health conditions. In addition, they can be reimbursed for either onsite or offsite fitness center memberships. Our U.S. employees also can take an annual health risk questionnaire to assess their lifestyle habits and receive personalized feedback to help improve or maintain their health. If an employee completes this questionnaire, he or
she will qualify for discounted contributions toward his or her medical coverage. RETIREMENT AND SAVINGS In addition to certain statutory plans, we help our employees prepare for their financial future by offering retirement and saving programs in countries where it is competitive to do so. Most of these plans are defined contribution savings programs where we typically offer a company match based on an employee’s contributions to the program. In the United States, we offer our employees education about their retirement options – including financial management programs. We also make dollar-for-dollar contributions on the first four percent of an employee’s eligible compensation he or she contributes to our 401(k) savings plan. If an employee is age 50 or older, he or she can contribute even more to his or her savings plan. LIFE AND DISABILITY We provide opportunities for employees in most countries to protect their financial future with market competitive, company-subsidized disability income and life insurance plans. COMMUTER BENEFITS In the United States, we offer employees the opportunity to purchase public transportation and parking garage vouchers with pre-tax dollars. This helps the environment and helps our employees save money if they travel to work on public transportation. FLEXIBLE WORKING We provide employees with resources to help them integrate their work and personal responsibilities, including flexible work plans and programs to support them through life-changing events. As a global company with a highly distributed workforce, our employees need to work across cultures and time zones. Our iWork program enables our employees to work how, when and where they work best through:
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§ Alternate locations (where): working from an alternate site on a regular or occasional basis § Alternate schedules (when): flexible arrival and departure times, compressed work week § Alternate job structures (how): part-time work or job sharing iWork helps us retain employees, attract and recruit talent, increase productivity and reduce costs. It also provides us with greater access to skilled employees no matter where they are located. We provide online training for managers to learn how to work with—and manage—virtual teams. This includes information on geographic sensitivities, such as cultural norms and working across time zones. SUPPORT FOR EMPLOYEES GOING THROUGH LIFE-CHANGING EVENTS We help employees deal with life-changing events through programs that vary from country to country. Examples include time off for new parents, adoption assistance, education assistance, relocation assistance, employee counseling, childcare services, family medical leave, bereavement leave and disability programs. We also sponsor onsite childcare facilities in several of our office locations around the world. SAFETY PROGRAMS We developed our safety programs to eliminate potential safety hazards before injuries and illnesses occur. We identify risks to our employees through our hazard identification and inspection program, and we systematically track non-conformances to ensure that we take corrective action and eliminate root causes. We conduct awareness programs and training so employees can effectively deal with safety risks they may encounter at work. All employees receive the necessary EHS training required to perform their job in compliance with local regulations and our EHS Management System. We use a variety of
methods to promote employee health and safety awareness, including our internal EHS website, blogs, TV monitors, email communications and employee awareness events. All of our employees have the authority and obligation to stop work if they view their work conditions or acts as unsafe. SAFETY RECOGNITION For more than a decade, our Schaumburg, Illinois, U.S., manufacturing facility has earned the highest honor from the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA): the Voluntary Protection Program (VPP) Star award. This prestigious award recognizes sites demonstrating superior safety and health programs. In 2012, our Reynosa, Mexico, manufacturing facility completed the final process to qualify for the Safe Industries certification that is awarded for meeting high safety and health standards as defined by the Mexico Secretariat of Labor (Secretaria del Trabajo). Our Reynosa facility will receive the award in 2013. ERGONOMICS We recognize that ergonomic factors are one of the leading causes of workplace injuries. To help reduce ergonomic injuries, we: § Assess ergonomic hazards § Track and document ergonomic assessments to identify trends § Offer personal ergonomic assessments by health and safety professionals § Provide standardized state-of-the-art ergonomic furniture and accessories § Continually implement improvements in our manufacturing processes to reduce repetitive motion injuries § Provide an ergonomic website that hosts a variety of self-help tools, training materials and resources for employees These actions have contributed to the reduction of ergonomic injuries and reduced the ergonomic assessment time cycle. In 2012, we reduced
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ergonomic repetitive motion injuries globally by 1 percent, compared with 2011. PERFORMANCE AND GOALS Our global recordable injury and illness case rate decreased from 0.22 in 2011 to 0.18 in 2012. Due to a stronger focus on reducing risks and the implementation of added proactive programs, Motorola Solutions was able to reduce our recordable injury and illness case rate by 18 percent. Global Recordable Injury and Illness Case Rate
Per 100 Employees 2008 0.20 2009 0.18 2010 015 2011 0.22
†
2012 0.18
CRISIS PREPAREDNESS Crisis plans ensure that we can respond quickly and effectively to emergencies such as terrorist attack, disease outbreak or natural disaster. Our crisis teams test these plans each year to improve coordination, make sure employees are prepared and to discover potential trouble spots before an emergency happens. Our business continuity teams work to ensure any business interruption is kept to a minimum and that we continue to meet our customers’ needs. Each of our critical operations has conducted a business impact analysis and developed recovery strategies.
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 52
CORPORATE RESPONSIBILITY REPORT COMMUNITY
COMMUNITY
Our mission to provide the essential communications solutions that connect people, businesses and governments in the moments that matter extends to our volunteer, in-kind and cash support to the communities where we operate. We achieve this by leading and supporting programs that advance education, make communities safer and enhance employee contributions. Our community investment is focused on: § § § § Education Public safety Disaster relief Employee programs engineering and math (STEM) education in the United States and around the world. In 2012, the Motorola Solutions Foundation provided $6.3 million in grants to support science and engineering education, especially for girls and under-represented groups. The programming we support is designed to inspire students to learn about science and generate interest in sciencerelated careers at the national and local level. In the United States, our Innovation Generation grants supported more than 178,000 students and teachers in 2012. Examples of our grants in action: § FIRST Robotics – Global – Motorola was a founding sponsor of the FIRST Robotics Competitions in 1989 and has supported FIRST each year since. The competition involves students working in teams to create robots and then testing them in regional and national FIRST Robotics Competitions. In 2012, the Motorola Solutions Foundation sponsored 160 teams across the United States and
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®
Motorola Solutions and the Motorola Solutions Foundation (our philanthropic arm) support these areas through cash and product donations. Our employees also volunteer their time through the Motorola Solutions Service Corps and participate in charitable-giving programs. In 2012, the Motorola Solutions Foundation provided grants that helped more than 700,000 students, first responders and community members in 37 countries around the world. We also offer use of our facilities for grantees to hold meetings or conferences and provide public relations services to grant recipients regarding their grants. EDUCATION As a company with strong roots in technology and innovation, we feel it is important to support programs that encourage science, technology,
CORPORATE RESPONSIBILITY REPORT COMMUNITY
internationally, and dozens of Motorola Solutions volunteers worked with students. § Rochester Institute of Technology – United States – Nineteen deaf and hard of hearing girls participated in a week-long summer camp to learn the necessary skills to build their own computers. This program is designed to increase enrollment of deaf students in postsecondary STEM degree programs. § University of Illinois at UrbanaChampaign/Hoeft Technology & Management Program – United States – The Undergraduate Technology & Management minor degree program bridges the gap between engineering and business education with interdisciplinary course work and hands-on experience with real-world business problems, corporate engagement and leadership. Fifty-four students are admitted to the program each spring. During the 2011-2012 school year, 100 percent of the participants completed the first year of the curriculum and began their second year in the fall of 2012. Forty-nine students completed the minor degree in 2012, and 34 students secured full-time placement. Six students elected to pursue a master’s degree, and eight students returned to campus to complete their engineering undergraduate degrees. § Stem Collaborative at Stony Brook University – United States – The STEM Collaborative led by Stony Brook University works to address issues involving gender inequity and the perception held by many girls that engineering and computer science are male domains. The program aims to increase the number of female students pursuing degrees in engineering and technology, with a focus on girls from underrepresented communities. The STEM Collaborative includes hands-on after-school programs for middle school and high school girls, as well as school- and communitybased STEM Tech Clubs where girls work
with college students, teachers and tech industry volunteers on a real-world engineering project in their community. Since 2009, Stony Brook’s TechPrep afterschool program for middle school girls has served more than 1,657 girls with 90 percent to 65 percent retention rates for each consecutive year’s cohort. § Museum of Science and Industry Institute for Quality Science Teaching – United States – The Museum of Science and Industry Institute for Quality Science Teaching (IQST) offers professional development accredited coursework for teachers in life science, environmental science, physical science and earth science. Through a variety of in-depth workshops, summer programs and events, teachers learn how to use inquiry-based and hands-on/minds-on science curriculum inside and outside the classroom to improve students’ performance in science. In collaboration with the Illinois Institute of Technology (IIT), teachers can enroll in IQST and earn credit toward the required MiddleGrades Science Endorsement from the Illinois State Board of Education and/or a Master of Science Education degree through IIT within two years. In the past year, 128 teachers from 58 schools completed the year-long program, and seven enrolled in their first year of the master’s program at IIT. Since IQST began in 2006, 558 teachers from 228 schools have participated in both full-year programs and summer workshops. Fifty percent of those teachers participated in more than one course, and 10 percent completed three or more courses. Eighty-six schools have sent teachers for more than two years, and about 25 percent have sent teachers to IQST for more than three years. § Fundación Omar Dengo – Costa Rica – Digital Talent provides training and education in computer programming for young people in rural and urban
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communities to help attract talent and strengthen Costa Rica’s technology pipeline. More than 500 participants from eight urban marginal and rural communities of Costa Rica learned to use open source programs to design games and animation programs. PUBLIC SAFETY The Motorola Solutions Foundation is committed to the safety of communities and security of countries around the world. The Foundation supports training and research in topics important to first responders, support for fallen first responder families, and support for safety and disaster preparedness education for the general public. In 2012, the Motorola Solutions Foundation provided more than $6 million in grants to support these important programs. Examples of our public safety grants in 2012: § National Center for Missing and Exploited Children – United States – Five hundred law enforcement leaders from across the United States received training materials on best practices and procedures for the prevention and recovery of missing and exploited children, including case management, family advocacy and deployment of Team Adam consultants. § Washington, D.C. Police Foundation – United States – The Junior Cadet Program, taught by School Resource Officers, served 100 fifth and sixth grade students from selected Title 1 Washington, D.C. public schools in a youth development and character building program. The program provides students with positive law enforcement role models and mentors, helps students stay focused on their education and future goals, and sparks interest among young people in careers in law enforcement or public service. § Operation Homefront, Inc – United States – The Operation Homefront Villages provide rent-free housing and comprehensive support services for wounded warriors and
their families to stabilize their situation and equip them to transition successfully into stable, permanent housing. Participants receive financial counseling from a certified financial counselor, participate in job readiness activities, receive one-to-one counseling and participate in support groups. In 2012, 100 percent of the individuals served (334) moved out of the three Operation Homefront Villages and successfully transitioned into stable, permanent housing. § Chinese Academy of Governance – China – Twenty-one Emergency Management Office (EMO) leaders and 10 provincial CAG instructors responsible for training local EMO officers participated in an emergency management training program with Chinese academics to learn about the fundamentals of the U.S. emergency management system and best practices, including the U.S. Nationwide Incident Management System (NIMS) and the Incident Command System (ICS). The end goal of the ongoing project is the development of a plan for a strategic emergency communications system in China that supports local field commanders and advancement of dedicated networks for public protection and disaster relief communication. § Akut Search and Rescue Organization – Turkey – More than 1,300 students in several regions of Turkey participated in safety education and public awareness programs taught by professional rescuers. Students received bags with school supplies and child-friendly earthquake, fire, flood and first aid books. In addition, community leaders, government officials, the media and Motorola Solutions employee volunteers worked together to present a panel on earthquake consciousness at each school.
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DISASTER RELIEF Motorola Solutions joins humanitarian organizations to address critical needs of communities. In 2012, the Motorola Solutions Foundation contributed more than $200,000 to support disaster relief efforts around the globe. In the United States, the Foundation provided funds to those communities hit hard by Hurricanes Isaac and Sandy, floods in Florida and wildfires in Colorado. The Foundation also donated $45,000 to the American Red Cross to support relief efforts in the Philippines due to flooding caused by Typhoon Pablo. To support relief efforts on the U.S. east coast caused by Hurricane Sandy, the Foundation donated $100,000 to the American Red Cross and $25,000 to the New York Fire Department. The Foundation matched $25,000 in donations from employees to the American Red Cross, and we also donated 50 radios and other equipment as in-kind gifts to Citywide Disaster Services in Rockaway, New York. The radios were used to check on the elderly and shut-ins, and the Queens NY14 Community Emergency Response Team used radios to assist first responders in the area. EMPLOYEE PROGRAMS We encourage our employees to volunteer in their communities. We are a company of engineers, scientists, and business and public safety professionals, and our employees are eager to encourage the next generation of inventors. Hundreds of employees volunteer as robotics club mentors, science fair judges, math tutors, volunteer firefighters and more. In the United States, we encourage employees to raise money for good causes by matching their charitable contributions up to $10,000 per employee. Employees who volunteer in their communities can ask the Foundation to contribute up to $600 per year to their chosen charities. Our Service Corps program honors 10 exceptional volunteers each quarter, and each year, 10 of those employees or teams receive a CEO Award for
Volunteerism – the highest level of recognition an employee can receive for volunteer efforts. Each of these awards can mean more Motorola Solutions Foundation funds directed toward the employee’s chosen charity. MOTOROLA SOLUTIONS SERVICE CORPS In 2011, we launched the Motorola Solutions Service Corps. Through this program, we collaborate with our customers to become a community partner, reaching out to support the communities where we live and work. By the end of 2012, employees around the world donated nearly 60,000 hours of volunteer time through the Service Corps, beating our 50,000-hour goal. 2012 Service Corps Project Examples More than 150 Motorola Solutions employees in Lod, Israel volunteered more than 600 hours to prepare, package and distribute food products for poor families near our facilities in Lod and Ramleh. Employees worked side-by-side with one of our customers, the Israeli Police. A team of more than 20 Motorola Solutions employees in Reynosa, Mexico served as a strategic partner to Universidad Tecnologica de Tamaulipas Norte to cultivate the next generation of engineers and innovators. Employees spent approximately 700 hours reviewing and adapting the university’s academic plan, conducting statistics workshops, motivating students by providing tours through the Motorola Solutions campus, and providing academic development to teachers and students. In collaboration with one of our customers, the Home Depot, more than 75 Motorola Solutions employees in Holtsville, New York, U.S., improved the garden and communal areas of Northport Veterans Affairs Medical Center's Nursing Home as well as the Suffolk County United Veterans Project through landscape and maintenance projects. Volunteers mulched, planted, built seating, installed AV equipment, transplanted shrubs and installed pavers and a water feature, donating nearly 700 hours of service in recognition of our veterans.
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The Motorola Solutions Foundation joined Chicago Mayor Rahm Emanuel’s initiative to help cultivate the next generation of scientists and engineers in February 2012 by supporting a new early college STEM school, the Chicago Vocational Career Academy. More than 100 Motorola Solutions employees are working with administrators, PERFORMANCE AND GOALS Total Giving – in Millions
2008 Motorola Inc./ Motorola Foundation charitable giving Motorola Inc. employee donations – U.S. giving campaign and matching-gift applications, plus global gifts for disaster relief $23.7 2009 $18.4
teachers, students and parents at the school to support approximately 150 students in their pursuit of science- and technology-related careers through curriculum development, extracurricular activities and mentorship.
2010 $21.9 Motorola Solutions Inc./ Motorola Solutions Foundation charitable giving Motorola Solutions employee donations – U.S. giving campaign and matching-gift applications, plus global gifts for disaster relief
2011
†
2012 $17.2
$23.1
$4.3
$3.1
$3.6
$1.9
$1.6
GIVING BY SOURCE
$1.6M $2.5M $1.2M
GIVING BY REGION
$1.1M $0.7M
$14.7M
$14.2M
North America Europe, Middle East, Africa Asia Pacific Latin America
Foundation Cash Employee Giving
Company Cash and Products
† In January 2011, Motorola, Inc. split into two separate companies, Motorola Mobility and Motorola Solutions. All data reported for 2011 and beyond represents Motorola Solutions. As goals are set for 2013 and beyond, 2011 will be utilized as the year for all baseline comparisons. Page 57
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GIVING BY CATEGORY
$4.0M
$7.2M
$6.0M
Education
Public Safety
Community and Disaster Relief
Community Investment Plans
Goals For 2012 Provide $4.5 million in grants to support training for first responders, support for first responders’ families and public safety education Provide $3.9 million in grants outside the United States Provide $5.5 million in grants to support science and engineering education Within the first year (Oct. 2011Dec. 2012) of the Motorola Solutions Service Corps, track 50,000 employee service hours globally Progress In 2012 Achieved Plans For 2013 Provide $4.4 million in grants for public safety support and education programs Provide $15.2 million in Foundation funding worldwide Provide $4.4 million in grants to support science and engineering education Track 65,000 employee service hours globally
Achieved Achieved
Achieved
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