Over the past decade, we have continued to align positive environmental and social impacts with strong economic outcomes, reinforcing our commitment to placing sustainability at the core of everything we do. In recent years, we further advanced our sustainable financing initiatives and the key performance indicators that support them.
Examples of key initiatives include:
- Launched a five-year revolving credit facility in 2023 featuring pricing adjustments based on Xylem’s achievement of certain sustainability-related key performance indicators alongside its credit rating. These targets are aligned with climate mitigation action across our value chain, including emissions reduction, customer GHG emissions reduction, and increased supplier reporting of environmental data to EcoVadis or equivalent assessment platforms.
- In partnership with impact platform CNote, invested a portion of our cash on hand in mission-driven banks and credit unions that facilitate investments in historically underserved communities. As of December 31, 2024, we have invested $12 million.
- Established a demand deposit account with yields on deposits linked to the achievement of our 2025 Sustainability Goals. Since 2021, we have earned nearly $300,000 in interest bonuses based on the average balance in the account for each year.
- Completed a $1 billion green bond offering, with proceeds allocated to projects that improve water accessibility, affordability, and resiliency.
- Transitioned supply chain finance agreements to sustainable frameworks, providing incentives for participating suppliers to initiate and improve their EcoVadis (or equivalent) scores.
In 2024, we were honored with the “Best ESG Working Capital Initiative” award by The Working Capital Forum for our global sustainable supply chain finance program in partnership with ING. The award recognized our program as a leading example of effective working capital management, with judges praising its clear key performance indicators, robust infrastructure, and advanced payment capabilities that have enabled significant growth in both size and scope. We remain committed to advancing sustainability-focused financing strategies, aligning capital deployment with our mission to drive meaningful environmental and social outcomes.
Second Party Opinion by Sustainalytics