Ingersoll Rand : Earnings Document

2021 SUSTAINABILITY REPORT

SUSTAINABLE SUSTAINABLE GROWTH. FUTURE.

2021 ANNUAL REPORT| 1

HIGHLIGHTS OF OUR STRATEGY IN ACTION

DEPLOY TALENT

INTRODUCED

four new employee inclusion groups

• making seven total to promote engagement, inclusion & development

LAUNCHED

a new performance management and development process which places a heavy emphasis

on manager engagement and employee ownership

LAUNCHED Women's Leadership Development Program, to develop women for their next role at Ingersoll Rand

"How happy are you?"
% favorable employee satisfaction trend
			Monthly Trend in Happiness at Work		IR
				Apr 2022
80												81%
79	IR						IR
Apr 2021						Oct 2021
78	79%						79%
77
76
75
74		Manufacturing
73		All Companies
72
	04	05	06	04	07	08	09	10	11	12	13	14

WE BELIEVE IN THE POWER

OF EMPLOYEE OWNERSHIP

INTRODUCED our Ownership Works Grant, a one-time equity grant for new employees who join the Company, either by hiring or acquisition.1

We think and

act like owners.

...because

we are!

OPERATE SUSTAINABLY

Accelerated

ESG Performance

2020/21 CURRENT

BBB A

30.1 23.5

High Risk	Medium
	Risk

An award-winning

Ethics and Compliance program is foundational to our Company culture and values

SOLAR

Nine plants are	9
powered by solar:
2 in India, 3 in Italy

and 4 in China

16 GREEN

16 locations have contracts in place for the purchase of green energy

Unranked

D B

2050 Goal:

100% Renewable Energy

2021 Progress:

Representing

8% 8% of our 2050 goal

2030 Goal: Reduce Annual

Greenhouse Gas Emissions 60%

2021 Progress:

Reduction of

16% 9,454 metric tons representing 16% of our 2030 goal

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1 Employees must be full time and have one year of service to be eligible. Not available to employees where prohibited by local law or regulation or where such grant is required to be

bargained for with an employee union unless such grant is agreed to as part of such bargaining.

2 | SUSTAINABLE GROWTH. SUSTAINABLE FUTURE.

ACCELERATE GROWTH

HIGHLIGHTS OF OUR STRATEGY IN ACTION

Sustainability Report

REVENUE	ORDERS	DOUBLE
		DIGIT
		GROWTH

YEAR OVER YEAR2

200+

NEW

Product

Introductions

UP

250%

YOY

IIOT-ENABLED ASSETS INDUSTRIAL INTERNET OF THINGS

2021

Aligning portfolio to three	Through three strategic
global megatrends	organic growth enablers
1.	Digitization	1.	Demand generation
2.	Sustainability	2.	Industrial Internet of Things (IIoT)
3.	Quality of life	3. Product and service innovation

EXPAND MARGINS

IRX continues to drive strong momentum in margin performance.

Adjusted EBITDA margin

grew 350 bps from 2019 to 20213

350 bps

GROWTH

MARGIN

EBITDA

ALLOCATE CAPITAL EFFECTIVELY

2021 STRATEGIC ACQUISITIONS

Initiated quarterly dividend program and authorized a new share repurchase program of

$750M

Divested

High Pressure Solutions and

Club Car businesses

1. Orders and Revenue comparison is against supplemental Adjusted Revenue and supplemental Adjusted Orders for 2020. Orders and supplemental Adjusted Revenue are non-GAAP metrics. For additional information, refer to Annex A at the end of the 2021 Annual Report.
2. Adjusted EBITDA margin is a non-GAAP metric. For additional information, refer to Annex A at the end of the 2021 Annual Report.

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2021 SUSTAINABILITY REPORT | 3

TABLE OF CONTENTS

WELCOME TO OUR 2021 SUSTAINABILITY REPORT

• Ingersoll Rand Purpose and Values

CHAIRMAN AND CEO MESSAGE

SUSTAINABLE RESPONSIBILITY: GOVERNANCE

• Our ESG Priorities
• Governance Model
• Enterprise Risk Management
• Ethics and Compliance
• Regulation and Public Policy
• Supply Chain Management
• Information Security / Cybersecurity
• Awards and Recognition

SUSTAINABLE SOCIETIES: PEOPLE AND COMMUNITY

• Diversity, Equity and Inclusion
• Health, Safety and Wellness
• Human Rights
• Talent Development
• Employee Experience
• Community Impact

SUSTAINABLE GROWTH: CUSTOMER FOCUS

• Products and Services
• Product Stewardship
• Customer Relationship Management

SUSTAINABLE FUTURE: ENVIRONMENTAL IMPACT

• Operational Eco-Efficiency
• Biodiversity
• Environmental Management System

ESG REPORTING AND FRAMEWORKS

• Goals & Progress: 2021 Data & Scorecard
• Standards and Frameworks
• • Global Reporting Initiative (GRI)
  • Sustainable Accounting Standards Board (SASB)
  • Task Force on Climate-Related Financial Disclosures (TCFD)
  • United Nations Sustainable Development Goals (UNSDG)
• Assurance Statements
• Policies
• Sustainability Report Data

4 | SUSTAINABLE GROWTH. SUSTAINABLE FUTURE.

WELCOME TO OUR

2021 SUSTAINABILITY REPORT

Our Company purpose-lean on us to help you make life better-and our five strategic imperatives-Deploy Talent, Accelerate Growth, Operate Sustainably, Expand Margins and Allocate Capital Effectively-continue to be foundational to Ingersoll Rand's culture and success. In particular, our commitment to Operate Sustainably drives us to remain socially and environmentally conscious and to continually evolve our operations, products and services to Make Life Better.

With this focus in mind, we are proud to present Ingersoll Rand's 2021 Sustainability Report. This report reflects our 2021 environmental, social and governance (ESG) updates, details how our products and services help customers achieve their environmental commitments and celebrates the progress we have made over the last year.

Ingersoll Rand Purpose and Values

Our Purpose: Lean On Us to Help You Make Life Better

Our Values:

• We think and act like owners
• We are committed to making our customers successful
• We are bold in our aspirations while moving forward with humility and integrity
• We foster inspired teams

2021 Sustainability Report

Our Strategic Imperatives:

• Deploy Talent
• Accelerate Growth
• Operate Sustainably
• Expand Margins
• Allocate Capital Effectively

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Driven by our purpose, Ingersoll Rand is built on a set of values, strategies and an execution model known as Ingersoll Rand Execution Excellence, or IRX.

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2021 SUSTAINABILITY REPORT | 5