Xylem : 2025 Sustainability Report
XYL
Published on 04/24/2026 at 10:16 am EDT
2025 Sustainability Report
2025 Sustainability Report
Contents
Executive statement
2025 sustainability highlights
General disclosures
06 Basis for preparation 07 Governance
10 About Xylem
17 IRO identification and management
23 How IROs shape our strategy
31 Decarbonization and energy transition
42 Pollution
45 Water
50 Resource use and circular economy
58 Own workforce
75 Workers in the value chain
79 Affected communities
85 Customers and end users
89 Business conduct
99 Reporting frameworks
109 Assurance statement
2025 Sustainability Report
Accelerating progress toward a water-secure future
Executive statement
2025 sustainability highlights
3
Dear stakeholders,
Water is one of the defining challenges of our time, a critical constraint for urbanization, industrial growth, and now the AI revolution. The new economy is reshaping our world faster than any other technology before, but every chip, every data center, and every megawatt of power depends on reliable supplies of clean water. As demands are rising, the world's water systems are struggling.
Aging infrastructure, decades of underinvestment, and climate pressures are straining supplies.
Already water-stressed regions are especially hard-hit and urgently need more resilient, efficient, and sustainable water systems.
Innovation and prosperity can advance alongside water security; they do not have to compete. Our recent study Watering the New Economy, written in collaboration with Global Water Intelligence, has a clear conclusion: we can turn water constraints into water security, provided we stop the leaks, reuse the water, and build strong partnerships across industries, utilities, and communities.
Xylem brings the domain expertise, hardware, and analytics at scale to solve this sustainability challenge across the full water cycle. We have a clear strategy and purpose: to help customers and communities build
a more water-secure world, from moving, treating, and measuring water to optimizing and maintaining the water systems that sustain communities and industries. We are convening partners, leveraging AI, and combining engineering expertise with digital innovation
to help customers modernize water systems, improve operational performance, and manage resources more effectively. That's how we safeguard public health, strengthen community resilience, support economic growth, and protect the planet.
From commitment to measurable impact
In 2025, we completed the sustainability goals we set in 2019, surpassing many of our targets and achieving them ahead of schedule in collaboration with our customers and partners. Our Xylem teams:
enabled the reuse of more than 22 billion cubic meters of water,
prevented over 13 billion cubic meters of polluted water from entering communities and waterways,
reduced more than 4.3 billion cubic meters of non-revenue water (water lost to leaks, meter inaccuracies, or unauthorized use), and
reduced water's carbon footprint by more than 8 million metric tons of CO2e.
This shows how innovation, advanced technologies, and close collaboration with customers turn sustainability ambitions into measurable operational and environmental outcomes.
We continued to transform our own operations, expanding renewable energy use, increasing process water recycling, and improving
waste diversion at major facilities. We also strengthened safety performance and increased the representation of women in leadership roles. This progress was recognized externally: in 2025, Xylem was named to the CDP Climate Change A List, our strongest performance since we began reporting in 2013. Xylem also ranked No. 41
on the 2026 Global 100 list of the world's most sustainable corporations by Corporate Knights.
Turning lessons into action for 2030
Now we are building on this momentum and using our 2030 sustainability agenda to deepen our impact and accelerate progress toward water security. Our approach reflects lessons learned from previous goals, focusing on areas where we can have the greatest impact and deliver disproportionate value for customers and stakeholders. We will continue to drive decarbonization in the water sector, advance corporate water stewardship, and expand
access to water, sanitation, and hygiene (WASH). To achieve our sustainability and business ambitions, we are investing in the talent, skills, and capabilities needed to innovate, scale solutions, and embed sustainability into every aspect of our business.
Water security requires innovation and collaboration on a global scale. At Xylem, we are committed to working with partners
across sectors to build resilient systems that support communities, protect the environment, and create lasting value for customers and stakeholders. Together, we are building a more water-secure, sustainable future.
Matthew Pine
Chief Executive Officer
Claudia Toussaint
Chief People and Sustainability Officer
2025 Sustainability Report
2025 sustainability highlights
Introduction
Executive statement
2025 sustainability highlights
General disclosures
Impact on the environment
Impact on society Business conduct
Exceeded all four 2025 Customer Sustainability Goals. Since 2019, our solutions have helped the reuse of 22+ billion m³ of water, prevent 13+ billion m³ of polluted water from entering communities and waterways, reduce 4.3+ billion m³ of non-revenue water, and cut water's
81%
Employee participation in volunteer activities in 2025.
carbon footprint by 8+ million metric tons of CO2e.
46
Disaster-affected areas supported in 2025. We delivered humanitarian aid to communities impacted by water-related disasters-contributing to 200 areas supported since 2019, meeting our 2025 Sustainability Goal.
3.7 million
People reached in 2025. We provided access to clean water and sanitation solutions-bringing total impact to 20 million people since 2019, achieving our 2025 Sustainability Goal.
#41
Ranked among the Global 100 most sustainable corporations by Corporate Knights (2026).
Reduction in Scope 1 and 2 (market-based)
emissions since 2023.
Appendix
Reduction in water economic intensity since 2023.
-15%
Reduction in Scope 3 economic emissions intensity since 2023.
-15%
Reduction in injury frequency rate to 0.44, surpassing our 2025 Sustainability Goal of 0.5.
CDP Climate Change A List. Our strongest performance since we began reporting in 2013.
29%
Women represented in leadership positions through merit-based retention, promotion, and recruitment.
4
2025 Sustainability Report
Introduction
General disclosures
General disclosures
Basis for
preparation
Governance
About Xylem
IRO identification
and management
How IROs shape
Xylem's strategy
Impact on the
environment
Impact on society
Business conduct
Appendix
5
ESRS BP-1; GRI 2-2, 2-3, 2-4
Basis for preparation
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
6
Introduction
The 2025 Sustainability Report presents Xylem's approach to managing, monitoring, and reporting on sustainability matters as identified through
a double materiality assessment completed in early 2024. This assessment considered both the actual and potential impacts of our activities on the environment and society and the potential financial risks and opportunities arising from sustainability-related matters. The terms "material" and "materiality," as used in this report, are based on a different definition of materiality than that used in the United States federal securities laws.
This report covers data and information aligned with our 2025 calendar year, from January 1
to December 31, unless otherwise noted in the description of specific key performance indicators (KPIs).
Selected sustainability metrics, including greenhouse gas (GHG) emissions, energy and water consumption, waste generation, and key health and safety indicators, are subject to limited assurance by Lloyd's Register Quality
Assurance (LRQA). The full assurance statement is available on pages 109-110.
Scope of consolidation
The scope of consolidation for this Sustainability Report is aligned with the consolidation boundary applied in Xylem Inc.'s consolidated financial statements. Accordingly, the report covers Xylem Inc. (the parent company) and all entities included in its financial consolidation.
In addition, where relevant for the identification and assessment of material impacts, risks, and opportunities (IROs), the report includes information related to Xylem's upstream and downstream value chain, including direct and indirect business relationships.
At the end of 2024, Xylem acquired a majority ownership interest in Global Omnium Idrica,
S.L., which is included in this report's data and information unless otherwise noted.
Where relevant, we use the terms "legacy Xylem" and "legacy Evoqua" to refer to the operations of each organization prior to Xylem's acquisition of Evoqua on May 24, 2023. "Xylem" refers to the combined company. Sustainability reporting for 2024 is presented on a consolidated basis for the combined company. Except where noted, 2023 sustainability data is also presented on a consolidated basis. For reporting years 2019-2022, and for any 2023 indicators for which consolidation was not possible due to differing fiscal years or data availability constraints, disclosures are presented separately.
Reporting frameworks
This report represents a voluntary, phased approach toward CSRD compliance in advance of the effectiveness of these requirements, as applicable. It incorporates certain key elements of the European Sustainability Reporting Standards (ESRS), including the principles of double materiality and structured disclosures on certain sustainability impacts, risks, and opportunities, though these disclosures are not yet comprehensive.
In addition, our reporting references the Global Reporting Initiative (GRI) Standards and is informed by the industry-specific standards of the Sustainability Accounting Standards Board (SASB), the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and the principles of the United Nations Global Compact (UN Global Compact). These frameworks guide the structure, comparability,
and transparency of our sustainability disclosures.
Sources of estimation and outcome uncertainty
All key assumptions, methodologies, and potential sources of estimation or outcome
uncertainty are documented in the corresponding accounting policies to support transparency
and comparability. The use of estimates in calculating sustainability performance metrics, including those that incorporate upstream and downstream value chain data, is described in the relevant accounting policies for each metric.
The statements included in this document and the materials or websites they may cross-reference regarding future performance and
results, expectations, plans, strategies, priorities, commitments, and other statements, including those related to our societal, environmental, and other sustainability goals, which are not historical facts are forward-looking statements within the meaning of the United States federal securities laws. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "outlook," "forecast," "likely," "believe," "target," "goal," "objective," "will," "could,"
"would," "should," "potential," "may," and similar expressions, or their negatives, may, but do not necessarily, identify forward-looking statements.
Forward-looking and other statements included or cross-referenced in this document regarding our environmental and other sustainability efforts, plans, and goals are
not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook
or strategy, to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the Securities and Exchange Commission (SEC) or other
regulatory authorities, and are not intended to create legal rights or obligations. In addition, historical, current, and forward-looking social, environmental, and sustainability-related statements may be based on standards for measuring progress that are still developing; internal controls and processes that continue to evolve; third-party data, review, representations, or certifications; information from acquired entities, which may be subject to ongoing
review, may not yet or ever be integrated into our reporting processes, and may not be reconcilable with our processes; and assumptions that are subject to change in the future.
Forward-looking statements are based upon current beliefs, expectations, and assumptions and are subject to significant risks, uncertainties, and changes in circumstances that are difficult to predict, often beyond our control, and that could cause actual results to differ materially from
the forward-looking statements. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is provided
in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent filings we may make with the SEC, and includes changes in legal and regulatory requirements, business conditions, and stakeholder expectations. Readers of this report are cautioned not to rely on these forward-looking statements since there can be no
assurance that these forward-looking statements will prove to be accurate. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, and despite any historical practice of doing so. The information and statements in this document speak only as of the date of this document and are subject to change without notice.
Changes in preparation or presentation
Restatements of previously reported sustainability data are made when reporting errors or changes in accounting or calculation methodologies exceed the 5% materiality threshold defined in Xylem's Sustainability
Management System. Restatements may also occur when new scientific evidence, updated emission factors, or methodological improvements become available. These adjustments reflect our ongoing commitment to enhancing the accuracy, consistency, and
comparability of our sustainability disclosures.
Any restated data is clearly identified, and the nature of and rationale for the changes are disclosed alongside the affected metrics.
In this report, we have restated our 2024 Scope 3 Category 11 emissions following the
identification of inaccuracies in the power values previously applied to products within our Applied Water segment. Updated product-specific power assumptions have resulted in Category 11 emissions that are approximately 8% lower than previously reported. Accordingly, total Scope 3 emissions have been restated to reflect these corrections.
We welcome feedback and inquiries related to our sustainability reporting.
Please contact us at
ESRS GOV-1; GRI 2-24, 2-25, 102-2
2025 Sustainability Report
Governance
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
ESRS GOV-1; GRI 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-17
Robust governance structures are essential to the effectiveness and credibility of our sustainability programs, commitments, goals, and reporting. From our Board of Directors (Board) to our teams implementing
sustainability across our businesses, we apply strong governance practices that provide oversight while remaining responsive to operational needs.
Xylem's executive leadership
Xylem's executive leadership, including the Chief Executive Officer (CEO), Chief People and Sustainability Officer, business Presidents, and other executives, lead execution of our sustainability strategy and progress toward
related goals. The Chief People and Sustainability Officer oversees the implementation of sustainability commitments and reporting.
The review of sustainability goals has also been integrated into the executive leadership's quarterly business reviews alongside financial and operational updates.
Sustainability performance is regularly reviewed through established governance committees:
The Sustainability Goal Deployment Committee meets quarterly to review progress, challenges, and opportunities.
The Sustainability Reporting and Green Finance Committee advises on the green finance strategy and the refinement of sustainability reporting practices.
The Disclosure Committee reviews proposed sustainability disclosures as part of the company's broader governance and oversight process.
The CEO reports directly to the Board on sustainability matters. During the Board's annual strategy meeting, the CEO leads a detailed review of Xylem's strategic plans, including sustainability topics. Additional updates are provided
during regular Board meetings. Sustainability informs strategy development across business operations, manufacturing, supply chain planning, and long-term resource considerations. The Board's Nominating and Governance Committee also reviews sustainability-related reporting strategies and progress toward sustainability targets and goals.
Nominating
and Governance Committee
oversees approach to sustainability and corporate social responsibility
Leadership Development and Compensation Committee
oversees approach to talent management and development
Audit Committee
oversees financial reporting processes and controls, and compliance with legal and regulatory requirements
Board of Directors
reviews sustainability as a strategic driver of growth
CEO and Executive Leadership Team
executes our sustainability strategy and drives progress toward our strategically aligned goals
Sustainability and Social Impact Team
develops and coordinates our sustainability and social impact strategy and drives compliance with sustainability reporting regulations
Operating teams
implement programs and initiatives that embed sustainability into core business processes and operations, supporting the delivery of our sustainability goals
Sustainability Goal Deployment Committee
reviews progress against our 2030 Sustainability Goals and other communicated goals
Sustainability Reporting and Green Finance Committee
provides guidance on our green finance strategy and
sustainability reporting strategy
Disclosure Committee
reviews proposed sustainability disclosures to provide oversight as part of our governance process
7
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
8
GRI 405-1
Xylem's Board
Strong sustainability governance starts with our Board. Our Board, primarily through its Nominating and Governance Committee, oversees Xylem's sustainability and corporate social responsibility programs. This committee also oversees business continuity, disaster recovery, crisis response, and compliance programs, including data privacy, conflict minerals, and environmental, health, safety, and security and trade compliance. The Leadership Development and Compensation Committee oversees executive compensation, including its linkage to sustainability performance, and our approach to human capital management. The Audit Committee oversees financial reporting processes and controls, compliance with legal and regulatory requirements, the business ethics and anti-corruption program, and the effectiveness of our Code of Conduct.
ESRS S1-8
Directors' profile1
Independent directors: 8 of 9 Directors with CEO experience: 5 of 9
Directors who are ethnically or racially diverse: 2 of 9 Directors who are women: 3 of 9
Directors with origins outside of the United States: 4 of 9 Average years of tenure: 6.9
Average age: 62
Committees receive regular updates from management on matters within their purview and report their activities to the full Board. The full Board reviews sustainability as a strategic enabler of value creation and periodically reassesses committee responsibilities to maintain effective oversight amid evolving regulatory expectations. One Board meeting each year is dedicated to an in-depth review of Xylem's strategic plans, including our approach to sustainability and environmental, social, and governance (ESG) issues. At other meetings, the Board receives updates on strategy execution and sustainability progress.
Board selection
Xylem and its Board consider a broad range of backgrounds, experiences, and perspectives essential to long-term value creation. The Board seeks highly qualified candidates with appropriate professional experience, education, skills, and viewpoints that align with Xylem's strategy
and global operations. Directors are expected to uphold the highest ethical standards, have
recognized achievements, and act in the long-term interests of shareholders and other stakeholders.
The Nominating and Governance Committee, composed entirely of independent directors, regularly reviews the Board's composition, identifies and evaluates potential director candidates, recommends nominees for election or re-election by our shareholders, and reviews the performance of the Board and its committees as part of the annual Board evaluation process. All director candidates are assessed consistently under Xylem's By-Laws and Corporate Governance Principles.
The Board maintains competency on sustainability topics relevant to Xylem. Sustainability knowledge is included in the nominating process, and a few of our directors have experience and expertise in sustainability matters, including water-related challenges, climate-related risk management, climate accounting, assessment of climate technologies, and development of environmental and social strategies.
Earl R. Ellis
EVP & CFO, Panera Bread Age: 60
Independent:
Number of public company boards: 1 Director since: 2023
Committees: Audit Committee (Chair)
Robert F. Friel (Chair)
Former Chairman, President & CEO, PerkinElmer Inc.
Age: 70 Independent:
Number of public company boards: 2 Director since: 2012
Committees: Leadership Development and Compensation Committee
Lisa Glatch
Former President, LNG and Chief Sustainability Officer, Sempra Infrastructure
Age: 63 Independent:
Number of public company boards: 2 Director since: 20232
Committees: Audit Committee; Leadership Development and Compensation Committee
Victoria D. Harker
Former EVP & CFO, TEGNA Inc. Age: 61
Independent:
Number of public company boards: 3 Director since: 2011
Committees: Leadership Development and Compensation Committee; Nominating and Governance Committee
1 Information as of December 31, 2025.
2 Served on Evoqua Water Technology Corporation's Board of Directors from 2020 until Xylem's acquisition on May 24, 2023.
Mark D. Morelli
President & CEO, Vontier Corp. Age: 61
Independent:
Number of public company boards: 2 Director since: 2022
Committees: Audit Committee; Leadership Development and Compensation Committee (Chair)
Jerome A. Peribere
Former President & CEO, Sealed Air Corp. Age: 71
Independent:
Number of public company boards: 2 Director since: 2013
Committees: Nominating and Governance Committee (Chair)
Matthew F. Pine
President & CEO, Xylem Inc. Age: 54
Independent: CEO
Number of public company boards: 2 Director since: 2024
Committees: -
Lila Tretikov
Partner, Head of Artificial Intelligence Strategy, New Enterprise Associates, Inc.
Age: 47 Independent:
Number of public company boards: 3 Director since: 2020
Committees: Audit Committee; Nominating and Governance Committee
Uday Yadav
CEO, TK Elevator
Age: 62 Independent:
Number of public company boards: 1 Director since: 2020
Committees: Audit Committee; Nominating and Governance Committee
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
9
ESRS GOV-2; GRI 2-19
Sustainability-linked compensation
Xylem integrates sustainability performance into its executive compensation framework to reinforce accountability for the company's environmental and social commitments. The Leadership Development and Compensation Committee (LDCC) oversees the design
and governance of incentive plans, aligning leadership actions with our sustainability strategy and stakeholder expectations.
Sustainability objectives formed part of the annual goals established for the CEO and executive leadership team in 2025. Although these objectives were not a separate or weighted component of the annual incentive compensation formula, the LDCC considered progress against key sustainability priorities in its overall performance assessment.
Our due diligence approach
Core elements
Sections in this report
Embedding due diligence in our "Governance," pp. 7-9
governance, strategy, and business model "Business conduct," pp. 88-97
Engaging with affected stakeholders in
all key steps of due diligence
"Governance," pp. 7-9
"Interests and views of key stakeholders," p. 15 "Double materiality assessment," p. 17
"Own workforce," pp. 58-74
"Workers in the value chain," pp. 75-78 "Business conduct," pp. 88-97
Identifying and assessing adverse
impacts
"Double materiality assessment," p. 17
"Material impacts, risks, and opportunities," pp. 18-22
Taking action to address those adverse
impacts
Actions in each relevant section. For page
references, see content navigation.
Tracking the effectiveness of these efforts Targets and metrics in each relevant section.
and communicating progress For page references, see content navigation.
"Assurance statement," pp. 109-110
These priorities included maintaining
Xylem's sustainability leadership through progress against its 2030 environmental and social commitments-such as water sector decarbonization, corporate water stewardship, and WASH access-as well as improving Xylem's women in leadership representation through merit-based hiring and promotion, and pools of candidates from a range of backgrounds and demographics for all professional positions to attract and retain the most qualified talent.
In addition, Xylem's 2021 special, one-time performance share unit awards, granted to senior executives, remained outstanding through 2025, the final year of the five-year performance period. These awards were tied to the achievement of five long-term sustainability goals aligned with Xylem's 2025 sustainability objectives, including enabling customers to reduce non-revenue water, prevent polluted water from entering communities and waterways, lower water-related CO2e emissions, and reuse water to
extend the lifecycle and value of freshwater, and enabling Xylem to achieve full process-water recycling at major facilities.
ESRS GOV-3
Statement on due diligence
Our sustainability due diligence approach is intended to identify, prevent, mitigate,
and, where necessary, remediate actual and potential environmental and societal impacts across our operations and supply chain. This includes establishing and implementing policies, setting targets, conducting risk and impact assessments, and taking appropriate measures to address adverse impacts. These processes, and the actions we take to manage them, are described throughout this report.
The table (left) outlines the core elements of our due diligence approach.
ESRS GOV-4
Risk management and internal controls over sustainability reporting
Effective oversight of sustainability-related risks and opportunities is embedded within Xylem's enterprise risk management (ERM) framework. Management is responsible for the
day-to-day management of the company's risks, including the implementation and maintenance of appropriate risk management programs, policies, and practices. Management conducts the ERM program, which is an evergreen process using a widely accepted framework
to identify, assess, monitor, and communicate Xylem's strategic, operational, financial, compliance, and reputational risks over the short, medium, and long terms.
Through the ERM program, we seek to identify and mitigate risks and enable improved decision-making and prioritization of time and resources. Risk assessments are conducted annually and as needed in line with changes in our business and external factors. We continue to monitor risks throughout the year, including to understand how internal and external factors
may impact our risk profile and inform our mitigation plans.
Sustainability and climate-related risks and opportunities are embedded within the enterprise risk register and scenario analyses, supporting resilience planning and alignment with global frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD). The Board provides oversight of management's approach to risk management, including sustainability-related risks and opportunities, as part of its governance responsibilities.
An integral component supporting this oversight is Xylem's Sustainability Management System (SMS). The SMS governs our sustainability reporting processes and establishes structured controls for identifying, managing, and disclosing sustainability-related data and information.
It defines the roles and responsibilities of key stakeholders and embeds sustainability
priorities across the organization, strengthening accountability and internal control processes.
Our sustainability reporting continues to evolve to meet regulatory and stakeholder requirements. The SMS is regularly updated to reflect best practices, insights from our sustainability program, and developments in the regulatory landscape. Our sustainability
reporting controls framework and sustainability data management tools enhance the integrity, transparency, and audit readiness of our disclosures, reinforcing the integration of sustainability-related risks and opportunities within our broader governance and risk management systems.
Sustainable finance: Aligning purpose with performance
Xylem has an opportunity to strengthen the connection between financial performance and sustainability through our sustainable financing initiatives. Over the past decade, we
have worked to align positive environmental and societal outcomes with strong economic results, reinforcing our commitment to embedding sustainability at the core of our business strategy. In recent years, we have further advanced our
sustainable financing programs and the key performance indicators that support them.
In 2021, we established a demand deposit account with yields linked to the achievement of our 2025 Sustainability Goals. In 2023, we entered into a five-year revolving credit facility
featuring pricing adjustments tied to both Xylem's achievement of specific sustainability targets
and our credit rating. Extending our commitment globally, we became an anchor investor in T. Rowe Price Emerging Markets Blue Economy Blue Bond Strategy fund in 2025, supporting water security initiatives aligned with our broader mission.
We continue to integrate sustainability into our supply chain finance agreements, providing incentives for participating suppliers to initiate or improve their EcoVadis or equivalent scores, further embedding environmental and societal considerations across our value chain.
These initiatives reflect Xylem's ongoing strategy to align capital deployment with sustainability outcomes, enabling measurable environmental and societal impact while maintaining strong financial performance.
We remain focused on identifying and expanding sustainable financing mechanisms that align with Xylem's mission, support longterm value creation, and accelerate positive impact across the communities and customers we serve.
2025 Sustainability Report
ESRS SBM-1; GRI 2-1, 2-6
About Xylem
Introduction
General disclosures
Xylem is a Fortune 500 global water solutions partner committed to advancing sustainable impact and championing the people who make water work every day.
Basis for preparation
Governance About Xylem
IRO identification and management
With ~22,000 employees worldwide, we collaborate with utilities, industrial manufacturers, building operators, and communities to solve the water challenges that matter most. We connect diverse capabilities, innovative technologies,
and deep expertise to provide tailored solutions
across the entire water cycle. From moving, treating, and measuring water to optimizing and maintaining water systems, Xylem helps customers strengthen resilience, improve resource efficiency, and protect public health and the environment.
How IROs shape Xylem's strategy
Impact on the environment
Impact on society
~22,000
employees
100+ years
of product excellence
Business conduct
Appendix
Serving customers in
~150 countries
>$226 million
invested in research and development
in 2025
>$9 billion
in total revenue in 2025
10
2025 Sustainability Report
Our business segments
Xylem comprises four business segments with products and solutions to move, treat, and measure water, and optimize and maintain water systems.
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Water utility and industrial customers 2025 revenue: $2,636 million
Water Infrastructure provides essential solutions to transport, treat, and manage water throughout the entire water cycle. We serve water utility and industrial customers with integrated products and systems, including water and wastewater pumps, filtration, biological treatment, disinfection systems,
and advanced digital solutions for enhanced performance and efficiency.
Geographical split
United States ~40%
Western Europe ~35%
Emerging Markets and other ~25 %
End market split
Wastewater utilities ~60%
Industrials ~40%
Commercial, industrial, residential, and water utility customers
2025 revenue: $1,849 million
Applied Water provides flow control solutions to minimize water and energy usage while maximizing efficiency. We primarily serve commercial, industrial, residential, and water utility customers, providing pumps, heat exchangers, valves, and controls. These solutions are designed for process water circulation, heating and cooling systems, pressure boosting, potable water, and wastewater applications.
Geographical split
United States ~55%
Western Europe ~20%
Emerging Markets and other ~25%
End market split
Building solutions ~55%
Industrials ~45%
Industrial and water utility customers 2025 revenue: $2,464 million
Water Solutions and Services provides tailored services and innovative solutions designed
to deliver measurable outcomes. We serve industrial and water utility customers with integrated treatment systems for clean water, process water, and wastewater, pumping solutions for moving water and wastewater, and solutions for assessing and optimizing water distribution networks.
Geographical split
United States ~75%
Rest of world ~25%
End market split
Industrials ~80%
Utilities ~20%
Water and energy utilities and industrial customers
2025 revenue: $2,086 million
Measurement and Control Solutions provides intelligent solutions that enhance operational efficiency through advanced sensing, communications, and data management technologies. We serve water, gas, and electric utilities and industrial customers, offering cutting-edge smart metering, quantitative and qualitative measurement capabilities, and data management solutions.
Geographical split
United States ~65%
Western Europe ~15%
Emerging Markets and other ~20%
End market split
Clean water utilities ~90%
Industrials ~10%
11
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
At Xylem, innovation and sustainability are deeply interconnected, driving our efforts to tackle the world's most pressing water challenges. Our approach extends beyond
developing advanced technologies to rethinking how we work, partner, deliver solutions to customers and communities, and cultivate talent in the water sector.
Sustainability is not just a goal but a guiding principle in our research, development, and growth strategy. Our design for sustainability approach integrates environmental and social considerations throughout the product lifecycle, helping customers achieve their sustainability objectives while minimizing impacts. This approach enables project teams to evaluate
the environmental impacts of new products and make data-driven decisions regarding key materials and lifecycle stages early in development.
By focusing on high-quality, reliable products, services, and solutions, we aim to meet the emerging needs of our diverse global customer base. Proactive customer engagement, led jointly by our Product Sustainability and Product Management teams, provides valuable insights into sustainability priorities. These insights guide technology investments and support solutions in critical impact areas,
such as water efficiency-a top priority for customers. Emerging trends highlight the growing demand for highly efficient, digital, and energy-saving water technologies.
Digitalization and advanced analytics increasingly support how we design, develop, and deliver sustainable solutions. Xylem selectively applies artificial intelligence (AI) within innovation and research to enhance decision-making, accelerate development, and improve product and system performance.
These capabilities enable teams to analyze complex data, optimize designs earlier in the development cycle, and strengthen lifecycle and environmental assessments within our Design for Sustainability (DfS) Framework.
These same digital capabilities are embedded in customer-facing solutions. Xylem Vue, our integrated digital water solution platform, enables seamless data management
across water and wastewater networks, helping utilities reduce water loss, optimize performance, adapt to changing conditions, and achieve cost savings. Powered by advanced analytics, Xylem Vue applications provide predictive insights that improve water efficiency, energy performance, and operational resilience, supporting more informed, proactive water management.
Alongside technology development, we are investing in building digital and AI capabilities across our workforce, empowering employees to responsibly apply these tools in their day-to-day work while maintaining a strong focus on trust, transparency, and our mission to build a more water-secure world.
Reimagining water management with generative AI
By Austin Alexander,
VP, Artificial Intelligence
Utilities today are navigating an era of interlinked challenges: aging infrastructure, workforce transitions, tightening regulations, and climate pressures that strain systems and resources. Against this backdrop, Xylem is helping water utilities reinvent how they manage water-not just as a service, but as a resilient, adaptive strategic asset.
Artificial intelligence (AI) is at the heart of this transformation, positioned not as a futuristic
concept but as a practical, strategic tool for everyday operations. For example, unlike traditional analytics that optimize well-defined tasks, generative AI (GenAI) can synthesize vast, complex datasets to produce insights, accelerate decision-making, and support realtime operational needs across utility functions.
By aligning AI deployment with established utility management frameworks, Xylem is helping utilities use these technologies to improve asset performance planning, enhance customer engagement, anticipate maintenance needs, and strengthen compliance and resiliency planning. Early adopters are
already demonstrating measurable benefits-from better cost control to more informed infrastructure decisions that reduce risk and improve service reliability.
Importantly, success hinges on preparing organizations for intelligent automation: clean and governed data, thoughtful integration with existing systems, and collaboration between people and machines. This human-centric approach allows AI to amplify expertise
rather than replace it, preserving institutional knowledge as industry talent evolves.
Xylem's leadership in advancing AI-enabled water management underscores our commitment to empowering utilities to deliver smarter, more sustainable services-protecting communities and the environment while unlocking new efficiencies in how water resources are planned, operated, and maintained.
12
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Scaling water innovation through strategic partnerships and commercial impact
Xylem Innovation Labs, our corporate innovation and venture team, accelerates water innovation by collaborating with startups, universities, venture capital firms, and global innovators. Since launching the Partnerships Accelerator program in 2022, we have worked with more than 60 startups and 40 innovation partners to develop solutions with clear commercial pathways that address critical water challenges and advance water resilience, security, and affordability.
Xylem's integrated approach helps to identify and develop emerging water technologies that communities and businesses need now.
We support pilot projects to demonstrate commercial viability and use creative financing mechanisms to accelerate adoption, cultivating a robust global water innovation ecosystem.
A core part of this work is the Innovation Champions program, which brings startups together with Xylem colleagues across functions and regions to shape solutions with real-world operational insight while advancing Xylem's priorities. These efforts help bring high-impact technologies to market faster, supporting our customers' and communities' sustainability ambitions.
Nanobubble technology:
From innovation to impact
Xylem Innovation Labs was created to help promising ideas move from concept to measurable, real-world impact. A standout example is Moleaer, a leader in nanobubble technology-an emerging solution advancing wastewater treatment.
In 2024, the Greer Commission of Public Works, Moleaer, Black & Veatch, and Xylem worked together at the Maple Creek Wastewater Treatment Plant (WWTP) in Greer (South Carolina), United States, to deliver real results
in the field. The plant, which treats an average of 11.35 megaliters of wastewater per day, had long struggled with persistent foam, unstable sludge, and operational inefficiencies caused by industrial fats, oils, and grease (FOG), and surfactants-compounds commonly found in soaps, detergents, and personal care products. These conditions had historically led to higher chemical use, increased energy demand, and inconsistent biological treatment performance.
Together, the partners explored treatment alternatives, identified optimal deployment within the plant's processes, and implemented Moleaer's nanobubble pretreatment system-all without major infrastructure upgrades or operational changes.
"We used to manage surfactants and foaming with chemicals alone," said Daniel Fahr, Greer CPW Wastewater Operations Manager. "But with increased flow and higher surfactant loading, it became clear we needed an advanced treatment solution to improve efficiency and performance. Moleaer's nanobubble technology offered exactly that."
In just a year, the technology helped deliver measurable sustainability outcomes. Foam coverage was reduced by 50%, chemical use dropped by up to 60%, and aeration times and dissolved oxygen requirements decreased-lowering overall energy demand. The plant also achieved more stable biological phosphorus removal and improved effluent quality.
Reduced chemical dosing improved sludge settling and contributed to lower hauling volumes and associated costs.
The Maple Creek project demonstrates how Xylem Innovation Labs turns collaboration into real-world results-bringing together utilities, engineering partners, and breakthrough technologies to strengthen operational efficiency, reduce environmental impact, and support more resilient, circular water systems.
"Nanobubbles are ultra-fine bubbles, approximately 200 nanometers in diameter, 2,500 times smaller than a grain of salt. Their extremely small size creates a high surface area, allowing them to bind with surfactants, soaps, degreasers, and disinfectants. This improves separation processes and enhances oxygen transfer and biological health, essential for energy and cost efficiency in wastewater treatment."
John Crisman
Senior Water Process Engineer at Moleaer
13
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
As a leading global water solutions company, we are dedicated to advancing sustainable impact by empowering the people who make water work every day and their communities. We focus our sustainability efforts on one of the world's most urgent sustainability challenges: responsible stewardship of our shared water resources.
Sustainability is at the heart of everything we do. We view it as a driver of long-term value and a catalyst for positive societal impact. By integrating sustainability into our decision-making and daily operations, we create lasting benefits for our shareholders, customers, employees, and the communities we serve.
We promote sustainable impact across our value chain through proven water solutions and strong, collaborative partnerships with customers, colleagues, suppliers, and communities that drive positive environmental and societal outcomes and long-term value creation.
Through our advanced water technologies, products, and technical expertise, we empower customers and communities to address critical water challenges such as scarcity, quality, resilience, affordability, and availability. Our solutions enable reliable, efficient water and wastewater systems that protect public health, sustain essential services, promote business and economic stability, reduce environmental impact, and contribute to a more water-secure world for people and the planet.
Through our focus on sustainable business and operational practices, employee volunteerism, and community initiatives-including our corporate social responsibility program Xylem Watermark-we advance responsible business and environmental stewardship and promote stronger, more water-secure communities, while reinforcing sustainability as a core element of our strategy.
Customers
We partner with utilities and industries to address water scarcity, quality, resilience, and affordability. Through our broad product portfolio and technical expertise, we empower utilities serving both major cities and remote communities
to optimize water and wastewater systems, supporting public health and environmental protection. We also provide integrated solutions to treat, transport, manage, and optimize water systems and improve operational efficiencies for industry and essential services.
Our company
We operate our business with integrity and accountability, focusing on reducing
environmental impacts, enhancing product quality and sustainability, and maintaining high standards for safety, well-being, and inclusion. Our workforce and operating practices are central to delivering innovative, reliable water solutions across the value chain.
Communities
Through our technologies, expertise, and partnerships, we support water stewardship and sustainable development in the communities where we operate. Through Xylem Watermark, we collaborate with nonprofit partners, customers, suppliers, business partners,
and colleagues to expand access to clean water, sanitation, and water education. These efforts contribute to resilient, water-secure communities and long-term societal and economic well-being.
ESRS SBM-1
Our value chain
Design for sustainability
Extraction of raw materials
Refining of raw materials
Assembly of components by suppliers
Supplier transport
Our own operations
Operations and maintenance
Manufacturing of products
Offices
Downstream
End of life and circularity
Customers and channel partners
Communities
Waste
14
Bilateral engagement with authorities at national
and international levels, regulatory reporting, inspections, and consultations.
Public authorities are focused on regulatory
compliance, environmental and social impacts, worker protection, and contribution to societal goals. Engagement provides insight into evolving legal and regulatory expectations.
Authorities
Investor meetings, investor surveys, sustainability
disclosures, and ESG rating questionnaires.
Investors and ESG rating agencies seek
transparent, decision-useful information on financial performance, strategy, governance, risks, and sustainability impacts. Their perspectives inform our disclosures and long-term value creation approach.
Investors and rating agencies
Supplier assessments, audits, contract
negotiations, supplier meetings, sustainability questionnaires, onboarding and training sessions, and Xylem Integrity Line.
Suppliers and partners are focused on fair
business practices, timely payment, long-term relationships, operational collaboration, and clarity on sustainability and compliance expectations.
Engagement supports responsible sourcing and value-chain resilience.
Suppliers and business partners
Direct customer meetings, account reviews,
customer satisfaction surveys, technical workshops, site visits, ongoing commercial engagement, and Xylem Integrity Line.
Customers value reliable, high-quality products
and solutions, innovation, operational resilience, and responsible business practices. Their input informs product development, service delivery, and sustainability priorities.
Customers
Employee engagement surveys, town halls,
performance and development discussions, employee network groups, works councils, health and safety committees, internal communication platforms, and Xylem Integrity Line.
Employees seek safe working conditions, fair
compensation, career development, well-being, inclusion, and a voice in how work is organized and decisions are made. Their feedback helps shape our people strategy, initiatives, and workplace practices.
Employees
Engagement channels
Interests of key stakeholders
Key stakeholders
Interests and views of key stakeholders
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
15
ESRS SBM-2; GRI 2-29
Xylem's strategy and business model are informed by structured engagement with our key stakeholders. Engagement responsibilities are embedded within relevant functions that regularly report insights to the Executive Leadership Team and, where appropriate, to Board committees.
This governance structure ensures stakeholder perspectives are systematically considered
in strategic planning, risk management, and sustainability decision-making.
Functional ownership of engagement reflects the stakeholder group and topic. The Human Resources and Environment, Health, and Safety functions lead employee engagement; Procurement oversees supplier engagement; commercial teams manage customer dialogue; Investor Relations and Sustainability engage investors and rating agencies; and Legal and Government Relations coordinate interactions with public authorities. This model promotes accountability while enabling consistent feedback into business decisions.
Insights from these engagements inform our enterprise risk management processes,
materiality assessments, innovation priorities, and sustainability strategy. They also support the ongoing development of our Sustainability Management System and related controls, strengthening how we manage impacts, risks, and opportunities across our operations and value chain.
For operations with direct community interaction, proactive local engagement supports our license to operate, reinforces responsible business conduct, and helps address environmental, workforce, and resilience priorities.
Through these mechanisms, stakeholder interests are embedded in Xylem's long-term value creation approach and sustainability ambitions.
The Reservoir Center for Water Solutions is a hub for collaboration, innovation, and advancing shared interests across the water sector. Co-located with Xylem's global headquarters in Washington, DC, the Center enables diverse stakeholders-universities, nonprofits, think tanks, youth organizations, and other partners-to cross-collaborate to tackle pressing water challenges and accelerate sustainable solutions.
In 2025, the Center hosted more than 60 events, offering opportunities to engage directly with stakeholders, participate in cross-sector dialogues, and contribute to water policy discussions. Signature initiatives included
the Careers for Change program, coworking days, and curated dialogues, where voices from across the water sector come together to discuss emerging topics and identify
opportunities to move important conversations forward.
Beyond convening discussions across the sector, the Center is also committed to advancing education and community
engagement. This year, the Center launched a water quality monitoring program with three watershed advocacy organizations in the DC area, equipping them with real-time water quality monitoring technology to advance their work to create fishable and swimmable rivers. A co-founding partner and sponsor of Reservoir, Xylem works with the Center to advance water sector collaboration and actionable solutions to the world's water challenges.
2025 Sustainability Report
Introduction
General disclosures
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Impact on the environment
Impact on society Business conduct Appendix
16
GRI 2-28
As a signatory to these compacts, pledges, and mandates, we are committed to continuous progress aligned with their core principles.
We advance this commitment through effective management and prioritization of our environmental, social, and governance opportunities and risks.
United Nations Global Compact
The United Nations Global Compact (UN Global Compact) is a corporate sustainability initiative that guides businesses in aligning their strategies and operations with universal principles on human rights, labor, environment,
and anti-corruption. Xylem has been a signatory since 2002 and reports annually on our progress in implementing the Ten Principles.
CEO Water Mandate
Launched in 2007 by the UN Secretary-General and the UN Global Compact in partnership with the Pacific Institute, the CEO Water Mandate advances corporate water stewardship globally. Xylem endorsed the Mandate in
2017 and is committed to a comprehensive approach to water management across the six commitment areas.
Race to Zero
Race to Zero is a United Nations Framework Convention on Climate Change (UNFCCC)-backed global campaign mobilizing businesses, cities, and regions to take immediate action
to support sustainable growth and halve global emissions by 2030. In 2021, Xylem joined a consortium of partners to help water and wastewater utilities commit to reducing greenhouse gas emissions. We continue to collaborate with sector partners to advance decarbonization across the water sector.
Women's Empowerment Principles
Established by UN Women and the UN Global Compact, the Women's Empowerment Principles (WEPs) provide guidance on advancing gender equality and women's empowerment in the workplace, marketplace, and community. Xylem has been a signatory since 2019.
Additional commitments include:
Business Roundtable Pledge
United Nations (UN75) Uniting Business Statement
World Business Council for Sustainable Development WASH at the Workplace
UN Standards of Conduct for Business: Tackling Discrimination Against LGBTI People
Human Rights Campaign Foundation's Business Coalition for the Equality Act
2025 Sustainability Report
Impact, risk, and opportunity identification and management
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
17
ESRS IRO-1; GRI 2-29, 3-1
In early 2024, we completed our first double materiality assessment (DMA) in line with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The assessment identified and evaluated potential material impacts, risks, and opportunities (IROs) across our own operations and value chain. This report reflects a voluntary, phased approach toward CSRD compliance in advance of the effectiveness of these requirements. We will continue to enhance the disclosures in future reporting periods, as appropriate. The terms "material" and "materiality," as used in this report are based on a different definition of materiality than that used in the United States federal securities laws.
Preparation and scoping
The assessment followed a structured and documented methodology embedded within Xylem's governance and risk management processes. As a first step, we mapped our business model and value chain using existing company disclosures, internal documentation, management dialogue, and sector insights. This mapping served as a common reference point and informed the definition of assessment boundaries, covering relevant upstream and downstream activities within the scope of CSRD reporting.
We then defined materiality assessment dimensions in line with ESRS guidance and developed thresholds and scoring scales for impact materiality with reference to the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, EFRAG's Implementation Guidance on Materiality Assessment (October 2023), and
Xylem's Enterprise Risk Management (ERM) framework. Thresholds for financial materiality took existing ERM processes into consideration and were informed by engagement with finance and risk management functions, among other things.
We identified affected stakeholder groups based on the mapped value chain and ESRS definitions of affected stakeholders. Representatives of key internal and external stakeholder groups, including Xylem subject-matter experts, investors, lenders, customers, and nonprofit partners, were selected to contribute through workshops, interviews, and follow-up consultations.
Identification of impacts, risks, and opportunities
A series of internal workshops with selected participants supported the identification of potential impacts, risks, and opportunities associated with the sustainability matters defined in the ESRS. This work resulted in a list of potentially material impacts, including related impact drivers and affected stakeholders. We further refined the list through desktop research, targeted interviews, and an internal expert survey involving stakeholders from multiple business segments and functions. Participants contributed expertise across all sustainability topics and provided insights on interactions with affected stakeholder groups.
When identifying impacts and potential financial effects, we assessed reasonably expected time horizons in accordance with ESRS definitions, distinguishing between short term (0-1 years), medium term (1-5 years), and long term (5+ years). All identified potential impacts, risks, opportunities, time horizons, and relevant value-chain segments were documented and reviewed for completeness and consistency, informed
by external expertise in responsible business conduct, water, biodiversity, human rights, and CSRD reporting.
Assessment of materiality
We assessed materiality using predefined dimensions, scoring scales, and thresholds applied consistently across all topics.
Impact materiality was assessed based on potential severity and likelihood1, considering scale, scope, and irremediability for negative impacts, as well as the scale and likelihood of positive impacts.
Financial materiality was assessed based on the potential magnitude and likelihood2 of financial effects on Xylem's financial position, performance, and future prospects.
Assessment inputs included workshop outputs; stakeholder interviews; prior Xylem and Evoqua materiality assessments; sustainability reports; environment, health, and safety audit reports; and other relevant sources. The terms "material" and "materiality," as used in this report are based on a different definition of materiality than that used in the United States federal securities laws.
Validation and assurance readiness
Draft results of the DMA were reviewed, validated, and approved through dedicated internal validation workshops and followup meetings. We addressed identified data gaps and open questions through additional analysis and documentation. To support assurance readiness, we prepared
documentation providing relevant information about methodology, assumptions, stakeholder involvement, scoring rationale, and final materiality determinations.
1, 2 A likelihood scale was used to distinguish actual from potential IROs, informed in part by existing ERM processes among other considerations.
2025 integrity check
In 2025, Xylem conducted an integrity check of the 2024 DMA based on the ESRS Exposure
Drafts issued in July 2025. As described above, the original DMA was conducted in alignment with the initial ESRS requirements, following a rigorous interpretation of the standards. This approach resulted in the identification of a broad range of material topics.
The integrity check served as an initial refinement step, involving a review of the identified potential IROs and a reassessment of their potential materiality in light of evolving guidance and practical experience. The IROs presented in this report reflect the outcome
of this integrity check and subsequent refinements.
Xylem intends to further refresh and, where appropriate, redo the assessment in the future in consideration of evolving regulatory developments. In particular, as the final simplified ESRS standards are expected to be published in 2026, it is important to note that the DMA presented here was conducted
under the original, more comprehensive ESRS framework from November 2022.
In 2025, Xylem conducted an integrity check of the 2024 double materiality assessment based on the ESRS Exposure Drafts issued
in July 2025.
ESRS IRO-2; GRI 3-2
2025 Sustainability Report
Material impacts, risks, and opportunities (IROs)
All
Downstream
Decarbonization of own operations:
Scope 1 and 2 GHG emissions, driven by fossil energy use such as natural gas and purchased electricity.
Actual
Short term
Own operations
Decarbonization of own operations:
Reputational damage, reduced opportunities, and restricted financing if GHG emission targets are not set or met, or if expectations evolve.
Potential
Medium term
Own operations
Decarbonization of own operations:
Scope 3 GHG emissions, with use of sold products and services (Category 11) as the largest contributor.
Potential
Short term
Own operations /
Downstream
Energy
Energy use: Reliance on non-renewable
energy sources, such as diesel and natural gas, in our operations.
Actual
Short term
Own operations
Decarbonization through our products:
Empowering customers to lower their water-related carbon footprint through Xylem's products and services.
E1 Climate change
Subtopic
Impact description
Actual/Potential Time horizon
Value chain
Financial risk or opportunity description
Actual/Potential Time horizon
Value chain
Climate change
mitigation and adaptation
Potential
Potential
All
Downstream
Decarbonization through our products:
Growing demand for solutions that enable customers to measure and reduce their GHG emissions, with strong performance offering a competitive advantage.
Potential
All
Downstream
Advancing climate resilience: Strengthening
water security and enabling systems to manage both scarcity and extreme flows, positioning Xylem to support sustainable climate adaptation.
Basis for preparation
Governance
About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Impact materiality
18
Financial materiality
Environmental regulations: Growing pollution and
nature-protection rules may raise compliance costs and delay projects for Xylem.
Potential
All
All
Impact of
products
Water quality and pollution reduction: Xylem
solutions improve water quality through treatment, monitoring, and digital systems that reduce pollution in local waterways.
Potential
All
Downstream
Rising demand for water quality and pollution
control solutions: Growing water scarcity and stricter regulations are increasing demand for technologies that improve water quality, benefiting Xylem's treatment and monitoring solutions.
Potential
All
Downstream
Own operations /
Downstream
Short term
Potential
Impact on nature and ecosystems: Industrial
activities and occasional spills at Xylem sites could impact nearby ecosystems.
Own operations
Value chain
Actual/Potential Time horizon
Financial risk or opportunity description
Value chain
Actual/Potential Time horizon
Impact description
Subtopic
E2 Pollution
2025 Sustainability Report
Basis for preparation
Downstream
All
Potential
Impact of our products: Expanding smart water
technologies that help customers reduce water use and costs.
Downstream
All
Actual
Impact of our products: Enabling customers to
reduce water use and discharges while improving water quality and access through smarter technologies and modernized infrastructure.
Own operations
Short term
Actual
Our own operations: Water withdrawal and
consumption during industrial processes.
Water
management1
Value chain
Actual/Potential Time horizon
Financial risk or opportunity description
Value chain
Actual/Potential Time horizon
Impact description
Subtopic
E3 Water
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Own operations
Short term
Actual
Waste: Generating hazardous waste above
acceptable levels and lacking sufficient waste management, leading to landfill disposal.
Downstream
Long term
Potential
Circularity: Extending product lifetimes and
promoting circularity through repairs, take-back schemes, and partnerships.
Resource outflows
Upstream
Medium term
Potential
Material and component sourcing: Pricing risks
driven by factors such as import duties, tariffs, supply chain due diligence costs, and limited availability of low-carbon or certified materials.
Upstream
Short term
Actual
Resource inflows: Use of critical materials such
as iron, steel, copper, aluminum, and select plastics, creating dependencies potentially contributing to resource scarcity.
Resource inflows
Value chain
Actual/Potential Time horizon
Financial risk or opportunity description
Value chain
Actual/Potential Time horizon
Impact description
Subtopic
E5 Resource use and circular economy
19 1 Water management includes water withdrawal, consumption, and discharge.
S1 Own workforce
2025 Sustainability Report
Basis for preparation
Governance About Xylem
IRO identification and management
How IROs shape Xylem's strategy
Subtopic
Working conditions
Social dialogue
Inclusion, belonging, and equal treatment
Health and safety
Impact description
Secure employment: Offering employees secure employment with career development opportunities and competitive pay and benefits.
Performance, learning, and development: Providing a work environment that supports performance and career development.
Work-life balance: Offering employees programs that support a positive work-life balance.
Work-life balance: Employees may be required to work extra hours, impacting work-life balance and well-being.
Meaningful work environment: Providing employees with opportunities to volunteer and generate community impact.
Social dialogue and collective bargaining: Enabling employees to express their opinions and concerns, participate in works councils or
associations, and benefit from collective bargaining agreements.
Inclusion and belonging: The negative impact of a non-inclusive work environment.
Harassment in the workplace: The negative impact of potential harassment incidents
in the workplace.
Health and safety incidents - own workforce: Potential negative impacts arising from workplace incidents involving heavy machinery and manufacturing activities.
Actual/Potential
Actual
Potential
Potential
Potential
Actual
Potential
Potential
Potential
Potential
Time horizon
Short term / Medium term
Short term
Medium term
Medium term
Short term
Medium term
Medium term
Short term
Short term
Value chain
Own operations
Own operations
Own operations
Own operations
Own operations
Own operations
Own operations
Own operations
Own operations
Financial risk or opportunity description
Health and safety incidents - own workforce:
Cost implication of injuries in own workforce.
Actual/Potential
Potential
Time horizon
Medium term
Value chain
Own operations
Impact materiality
20
Financial materiality
Disclaimer
Xylem Inc. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2026 at 14:15 UTC.