We are committed to sound corporate governance that promotes the long-term interests of our shareholders and other stakeholders, strengthens Board and management accountability, and helps build trust in the company.
As a purpose-driven company, we are focused on creating both economic and social value for our customers, shareholders, employees and communities. Every day we work to solve water challenges through our commercial businesses and social impact efforts around the globe.
Sustainability, in its broadest sense, is at the core of what we do and who we are, and we have directly integrated sustainability into our business strategy. One of our Board’s key responsibilities is overseeing the company's strategy.
Sustainability is embedded in our business model. Our Board of Directors and its committees oversee sustainability and its various aspects, while the CEO and Senior Leadership execute our sustainability strategy and advance progress towards our strategically aligned 2025 Sustainability Goals, described in the chart below:
Our Senior Leadership Team (SLT), under the direction of our President & CEO, Patrick Decker, leads businesses, sales teams and functional areas — all of which integrate sustainable processes into their strategies. In 2020, our President & CEO named Claudia Toussaint, then SVP and General Counsel, as our Chief Human Resources & Sustainability Officer & General Counsel to advance our work on sustainability.
The role recognizes Xylem’s commitment to sustainability as defined in our sustainability framework, including a financially resilient base. Additionally, we restructured our internal team to align with our holistic approach to sustainability, which includes diversity, equity and inclusion and social impact efforts.
As part of our efforts to drive accountability and executive oversight of our 2025 Sustainability Goals and other critical ESG topics, in 2020 we refreshed our ESG governance approach at the management level of the Sustainability Report and our other ESG reporting and presentations prior to release. This is intended to drive accountability and enhance the quality of our disclosures and reporting.
To further our approach to operationalize sustainability across all functions of our business, we strive to drive ownership and accountability of progress on our 2025 goals and other initiatives into functional leadership. As an example, our Human Resource Leadership Team is accountable for diversity and inclusion, while our Watermark Ambassadors, employees who help communicate Xylem’s commitment to sustainability and community, provide key input on community impact programming and commercial leaders drive sustainability in our work with customers.
Our governance structure includes The Xylem Environmental, Social and Governance (ESG) Committee, which is composed of representatives from multiple geographies, businesses and functions and is under the executive sponsorship of our General Counsel & Chief Sustainability Officer, our Chief Marketing Officer, and our Chief Supply Chain Officer. This committee meets regularly to guide and drive sustainability efforts and monitor progress against sustainability goals. Other governance entities include:
The Watermark Committee, chaired by our Chief Marketing Officer
The Global Diversity & Inclusion Council, co-chaired by our General Counsel & Chief Sustainability Officer and our Chief Marketing Officer
Our leaders, front-line managers and employees are accountable for safe, ethical, environmentally responsible and forward-looking actions that support our sustainability goals. To support them in this mission, Xylem provides training in the areas of environment, health and safety, Code of Conduct, anti-corruption, anti-harassment, data privacy, cybersecurity, trade compliance, business continuity and continuous improvement — which includes Lean and Six Sigma curriculum — and career and leadership development.