Partnering for a Net-Zero Future: How Xylem’s Climate Action Plan Supports Our Customers’ Decarbonization Goals

Climate change is reshaping industries, regulations, and operational standards across the water sector. Water utilities, industrial water users, and channel partners are under mounting pressure to decarbonize, driven by regulatory mandates, operational cost efficiencies, and the transformation of industry benchmarks.

As your trusted partner in water solutions, Xylem recognizes these challenges and has taken decisive action. Our 2025 Climate Action Plan is a blueprint for not only reducing our own greenhouse gas (GHG) footprint but also enabling our customers to meet their sustainability goals.

Why Xylem’s Climate Action Plan Matters to You

Our customers increasingly require assurance that their partners are aligned with their sustainability commitments. The Xylem 2025 Climate Action Plan serves three critical purposes:

1. Building Confidence in Xylem as a Long-Term Partner: Our firm commitment to net-zero emissions means that by working with us, you can ensure your supply chain is aligned with ambitious decarbonization targets.
2. Providing a Model for Best Practices: The plan lays out a clear sustainability strategy, goals, and governance framework—offering insights that customers can apply in their own climate action plans.
3. Advance the Water Sector’s Decarbonization – By focusing on innovation and collaboration, we help drive industry-wide change.

Key Highlights from the Climate Action Plan

Science-Based Emission Reduction Targets

Xylem has set bold, science-based targets that align with global climate goals to ensure a sustainable future. These commitments provide a clear roadmap for reducing emissions across our operations and supply chain.

• 42% reduction in Scope 1 and 2 emissions by 2030 (absolute reduction)
• 52% reduction in Scope 3 emissions intensity by 2030
• Net-zero emissions across all scopes by 2050?

Decarbonization Strategies

Xylem is taking proactive steps to reduce its carbon footprint by leveraging clean energy, improving operational efficiencies, and promoting circular economy principles. These strategies are designed to create a more sustainable water sector while reducing costs and risks for customers.

• Transitioning our global fleet to low-emission vehicles.
• Expanding renewable energy adoption at Xylem facilities.
• Partnering with suppliers to reduce upstream emissions.
• Enhancing product efficiency and digital solutions to reduce downstream emissions.
• Advocating for low-carbon energy adoption across industries.
• Investing in circular economy principles to reduce material waste and increase product life cycles.
• Implementing advanced climate risk modeling to inform infrastructure planning and resilience strategies.

?Customer-Focused Climate Solutions

Since a significant portion of emissions stems from product use, Xylem is innovating to help customers reduce their carbon footprint. By enhancing efficiency and leveraging smart technologies, we empower customers to meet their sustainability goals while improving operational resilience.

• 95% of Xylem’s total emissions come from the use of sold products.
• We are investing in next-generation, energy-efficient solutions that help customers reduce operational emissions, lower costs, and improve carbon reporting.
• Expansion of digital water technologies to optimize efficiency, detect leaks, and minimize energy use.
• Deployment of smart metering and data analytics to enhance sustainability decision-making.
• Providing Environmental Product Declarations (EPDs) for greater transparency in product emissions.

?Climate Risk and Resilience Assessment

Climate change presents both physical and transition risks that must be addressed proactively. Xylem continuously assesses these risks to strengthen resilience in operations, supply chains, and infrastructure investments.

• Conducting Task Force on Climate-related Financial Disclosures (TCFD) assessments to identify physical and transition risks.
• Evaluating regulatory, technological, and market risks tied to climate change.
• Strengthening supply chain resilience to mitigate climate disruptions.
• Aligning with European Corporate Sustainability Reporting Directive (CSRD) for enhanced sustainability transparency and accountability.
• Investing in nature-based solutions for climate resilience, such as wetland restoration and sustainable drainage systems.

?Investment in Water Innovation

Advancing sustainability requires continuous investment in cutting-edge water solutions. Xylem is prioritizing innovation and collaboration to accelerate decarbonization, enhance water quality, and drive industry-wide improvements.

• Expansion of Xylem Innovation Labs to drive next-generation sustainable water solutions.
• Corporate venture capital investments of $50M in 2024 to accelerate water scarcity, quality, and decarbonization solutions.
• Strengthening industry partnerships to drive collective climate action through policy engagement and technological advancements.

A Call for Collaboration

At Xylem, we know that decarbonization requires strong partnerships. We are eager to hear from you—our customers—about your own climate action strategies. What challenges are you facing in your decarbonization journey? How can we support you better with low-carbon solutions and improved emissions transparency?

We invite you to connect with us in the comments or via direct message to share insights, discuss your needs, and explore partnership opportunities. By working together, we can accelerate progress toward a more sustainable and water-secure future. At Xylem, we know that decarbonization requires strong partnerships. We are eager to hear from you—our customers—about your own climate action strategies.

We invite Water Utilities, Industrial Partners, and other Stakeholders to engage with us:

• Share your decarbonization challenges – We want to understand your needs and tailor solutions accordingly.
• Collaborate on low-carbon projects – Let’s explore how Xylem technology can help accelerate your sustainability goals.
• Contribute to the conversation – Your insights help us refine our approach and drive impact.

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