As Eaton strives to become the most admired company in its markets as measured by customers, shareholders, suppliers and employees, Environmental, Health and Safety (EHS) is an integral part of this process by adding value and enhancing Eaton’s competitive advantage in the marketplace.  We direct our efforts in the following areas: 

• Sustainable Business
  We commit to minimize the impact of our operations and products on the environment. Our EHS efforts focus on the prevention of injuries and illnesses, protection of the environment, conservation of resources and pollution prevention.
  
  
• Employees
  We believe that safety and health of our employees is paramount and that all incidents, injuries, and occupational illnesses are preventable. We promote healthy lifestyles for our employees and their families.
  
  
• Business Integration
  We integrate EHS into all phases of the Eaton Business System (EBS). EHS excellence is integral to all of our business strategies and we consider stakeholder expectations in our decision-making process.
  
  
• Compliance
  We commit to meet or exceed regulatory and company requirements consistent with Eaton’s Policies on Ethics and Compliance. We work to create a “zero incident mindset” and to continuously improve our EHS performance through the implementation of Eaton’s EHS management system standard (MESH).
   
• Customers, Suppliers and Contractors
  EHS excellence is everyone’s responsibility. We partner with our customers, suppliers and contractors to create mutual value from our EHS programs.
  
  
• Community and Government
  We are committed to producing products in safe workplaces that are environmentally responsible. We participate in and contribute to local and governmental EHS initiatives that improve the quality of life in the communities where we live and work.
  
  
  We commit to continuous improvement in our Environmental, Health and Safety performance. We establish goals based on significant EHS aspects and risks. We measure, review and report our progress. Conformance with this policy is the responsibility of every employee.
   

Applying the EHS Policy
 

The Eaton EHS Policy guides our actions and our commitment to sustainability in many areas, including the following:

• World-Class Performance - Our goal is to achieve world-class performance in EHS. To achieve it, Eaton has developed a program called MESH (Managing Environment, Safety and Health), a globally deployed, unified system designed which consolidates existing programs into one integrated management system. All Eaton facilities worldwide are now working toward consistent goals, applying the same metrics, setting targets for improvement and identifying and sharing best practices. Most importantly, MESH has elevated EHS from a series of isolated activities to a responsibility shared by all Eaton employees.
   
• Climate Change - Eaton supports collective actions that will lead to the worldwide reduction of greenhouse gas (GHG) emissions to address the risks of climate change. Using guidelines established by the Global Reporting Initiative, we set annual targets for reduction of our worldwide energy consumption and carbon emissions. We are participants in the Business Roundtable’s Climate RESOLVE and SEE Change programs, in which we have pledged to reduce our GHG emissions by 18 percent, indexed for sales, by 2012.  Additionally, we participate in the Department of Energy’s Save Energy Now LEADER program, pledging to reduce our energy use by 25 percent, indexed for sales, by 2016. Progress is audited by a third party and reported in our Annual Report and on Eaton.com quarterly.
   
• Transparency – Increasing the transparency of our EHS performance will make Eaton a stronger, more sustainable company. We are committed to measure, review and report our performance to the public in company documents, on the corporate web site at Eaton.com, and by working with non-governmental organizations (NGO’s) that collect and disseminate EHS and other sustainability data to the public.
   
• Governance - The Eaton Senior Vice President of Environment, Health and Safety is responsible for implementing the EHS policy. The Eaton Board of Directors Governance Committee has oversight regarding significant public policy with respect to our relationships with shareholders, employees, customers, competitors, suppliers and the communities in which we operate. These issues include EHS concerns as outlined in the Eaton EHS policy.