2006 Environmental, Safety, and Health Report

2006 Environmental,

Safety, and Health Report

C2 2006 Environmental, Safety, and Health Report

This report summarizes Ingersoll Rand’s environmental, safety, and health (ESH) activities for 2006,

unless otherwise noted. The format is based in part on the Global Reporting Initiative (GRI) Sustainability

Reporting Guidelines. Additional information on topics in this report is available on our website.

Contact

For information on ESH performance, including copies of this report, contact:

Aaron Kleinbaum

Director of Environmental, Safety, and Health and Assistant General Counsel

Ingersoll Rand

155 Chestnut Ridge Road

Montvale, NJ 07645

201-573-3233

aaron_kleinbaum@irco.com

1 Chairman’sMessage

2 CompanyProle

4 ESHStewardshipthroughProductandServiceInnovation

12 VisionandStrategy

14 GovernanceStructureandManagementSystems

22 ESHPerformanceResults

30 ESHAwardsandRecognition

33 CommunityCommitment

37 ESH—LookingForward

2006 Environmental, Safety, and Health Report 

InOctober2006,IngersollRandcelebrated100

yearsofcontinuouslistingontheNewYork

StockExchange—anotableachievementthat

speaksclearlytothelong-termsustainability

ofourcompany.Weachievedthismilestone

becauseofourvision,businessstrategy,and

ourpassionforInspiringProgress.

Everyday,IngersollRandemployeesare

innovating,applyingnewtechnologies,and

workingcollaborativelytoinspireprogress.

Becauseofthis,wecanchangetheworldfor

thebetter.Thisabilitymakesourcompany

betterabletoserveourcustomersandhavea

positiveimpactontheliveswetouchthrough

ourproducts,services,solutions,expertise,

andcitizenship.

Animportantcomponentofcitizenshipis

ourenvironmental,safety,andhealth(ESH)

practices.WehaveintegratedESHintoour

corebusinessstrategy.Ofthe19common

measuresweusetoevaluateourprogressin

criticaloperationalandnancialareasacross

eachofourbusinesses,twoareESHmeasures:

lostworkdaycaserateandtotalhazardous

waste.Thesemeasuresfunctionasadiagnostic

opportunitytoadjustouractivitieswhen

necessary.Asaresult,wecanensurethatESH

managementisintegratedwithouroverall

enterpriseperformanceandourlong-term

businessgoals.

IngersollRandiscommittedtoinvesting

signicantlyinproductdevelopment,

includingsolutionsthatimproveefciencyand

deliverenvironmentalbenets.Onerecent

innovationisaThermoKingauxiliarypower

unitthatpowerstheairconditioning,heating,

andelectricalappliancesinthecabofatruck

whenitisparked,eliminatingtheneedto

continuouslyruntheengine.Thisnewproduct

reducesfueluseandvehicleairemissions,

helpscustomerscomplywithanti-idlinglaws,

andimprovesdrivercomfort.Thisproductis

oneofmanyhighlightedinthisreportthat

demonstratethestrongconnectionbetween

ESHleadershipandbusinesssuccess.

Inadditiontodescribingsolutions

thathelpourcustomersconserveenergy,

thisreporthighlightsproductsthatare

ergonomicallyinnovativeandpromotethe

healthandsafetyofourcustomersand

consumers.Ourcoldchainproductskeepfood

safefromthefarmtotheretailstore.Andour

industrialequipmentperformsavitalrolein

thedevelopmentandgrowthofeconomies

throughouttheglobe.

Asaglobalcitizen,wetakeseriouslyour

responsibilitytobeagoodstewardofthe

naturalenvironment,tobeagoodneighbor

tothecommunitiesinwhichweoperate,

andtoprovideasafeandhealthyworkplace

forouremployees.Thisreportreectsour

commitmentaswecontinuetoimproveour

facilityESHperformanceandmanagement

systems.

Iencourageyoutoreadthisreportto

learnmoreaboutIngersollRand’sESHgoals,

programs,andperformance.ESHcitizenshipis

drivenbythevaluesthatdeneourcompany:

integrity,respect,teamwork,innovation,and

courage.ESHmanagementisakeycomponent

ofourbusinessstrategyandourpassionfor

InspiringProgress.

IwelcomeyourinterestinIngersollRand

andourjourneytoESHexcellence.Your

feedbackonthisreporthelpsuscontinueto

innovateandimprove.

Sincerely,

Herbert L. Henkel

Chairman, President and

Chief Executive Ofcer

Chairman’s Message

2 2006 Environmental, Safety, and Health Report

About Ingersoll Rand.Today,weprovide

products,services,andintegratedsolutions

toindustriesrangingfromtransportationand

manufacturingtofoodretailing,construction,

andagriculture.Ourdiversicationisreected

inthedepthofourportfolioofmarket-leading

industrialandcommercialbrands.These

brandsincludeBobcatcompactequipment;

ClubCargolfandutilityvehicles;Hussmann

stationaryrefrigerationequipment;Ingersoll

Randindustrialandconstructionequipment;

Schlagelocks;andThermoKingtransport

temperature-controlequipment,amongothers.

Weinspireprogressbyunleashingthe

potentialinpeopleandtechnologies.We

dothischieythroughourtechnological

innovations,whichhelpcompaniesworldwide

tobemoreproductive,efcient,andsecure.

Ineverylineofourbusiness,IngersollRand

helpsourcustomerscreateprogress.

Company Profile

Since its inception a century ago, Ingersoll Rand has

focused on results. We create products and services that

have a positive impact on industries, on economies, and

most importantly, on our customer. We’re proud of our

heritage of inspiring progress across diverse industries,

stewarding the world’s environmental resources

responsibly, and ensuring the safety and health of our

employees.

2006 Environmental, Safety, and Health Report 

Our Values

Ourvaluesrepresentthehighstandardsto

whichweholdourselvesinoureveryday

operationsatIngersollRand.Allbusiness

decisionsaremadewithconsiderationgivento

thesebasicprinciples:

Integrity. Weactinthehighestlegaland

ethicalstandardsineverythingwedo.

Respect.Wecommunicateandactin

waysthatrespectandvaluetheworth

ofallpeople,cultures,viewpoints,and

backgrounds.

Teamwork.Weworktogetherandshare

resourcestoprovidegreatervaluetoour

customers,employees,businesspartners,

andshareholders.

Innovation. Weuseourdiverseskills,

talents,andideastodevelopinnovative,

imaginative,andcreativesolutionsto

challenges.

Courage. Wespeakupforwhatisrightand

takemeasuredriskssoourcompanycan

thrive.

•

Global Operations

IngersollRandmaintainsmanufacturing

facilities,warehouses,ofces,andrepair

centersthroughouttheworld.Weemploy

approximately40,000peopleworldwide,

approximately19,000ofwhomworkin

theUnitedStates.Tosupportourgrowth

outsideNorthAmerica,wehaveexpanded

ourmanufacturingcapabilitiesinkeyglobal

regionsthroughacquisitionsandinvestments

inChinaandothercountries.

In its “Global Most Admired Companies 2007” feature, FORTUNE magazine ranked Ingersoll Rand

number 6 in its category. To arrive at the industry category rankings, the Hay Group, a management

consulting rm, started with the FORTUNE 1,000 – the 1,000 largest US companies ranked by revenue

– and the top foreign ones operating in the US. Hay sorted them by industry and selected the ten largest

in each. To create the 63 industry lists, Hay asked executives, directors, and analysts to rate companies in

their own industry on eight criteria, from investment value to social responsibility using a scale from 1 to

10. Only the best are listed as most admired: A company’s score must rank in the top half of its industry

survey. Ingersoll Rand’s overall score was 6.25.

Sales (in billions)

2002 $8.6

2003 $9.0

2004 $9.4

2005 $10.5

2006 $11.4

2006 Revenues by Sector (in billions)

Climate Control Technologies $3.2

Compact Vehicle Technologies $2.6

Construction Technologies $1.4

Industrial Technologies $1.9

Security Technologies $2.3

Number of Manufacturing Facilties by Sector

US Outside US

Climate Control Technologies 9 14

Compact Vehicle Technologies 3 2

Construction Technologies 3 3

Industrial Technologies 11 14

Security Technologies 10 20

 2006 Environmental, Safety, and Health Report

Acrossthecompany,IngersollRanddevelops

productsandservicesthathelpbusinesses

toreduceenergyconsumptionandcosts,

decreaseharmfulenvironmentalemissions,

andprotecthumanhealthandsafety.Inthis

report,wehighlightsomeofthedozensof

technologiesandservicesIngersollRandhas

pioneeredinrecentyears.Frommicroturbines

thattransformmethanegasintopower,to

antiviral,antibacterial,andodorprotection

forbusandrailpassengers,IngersollRand

providestechnologiesandservicesthatreduce

ESHimpactsacrossarangeofglobalmarkets.

Eachofourbusinesssectorspromotes

ESHstewardshipthroughproductandservice

innovation.Inthisreport,wedescribehow

theseproductsandservicesareenabling

businessestoreducetheirESHimpacts.And

wetouchuponwaysthattheseinnovations

areshapingthelifestylesandlivelihoods

ofthepeoplewhomakecontactwiththem

aroundtheworldeachday.Throughour

productsandservices,IngersollRandis

helpingbusinessescontributetoeconomic,

social,andenvironmentalprogress.

Climate Control Technologies

TheClimateControlTechnologiesSector

providesequipmentandservicesfortransport

andstationaryrefrigerationthatincrease

energyefciency,reducefuelconsumption

andemissions,andremovecontaminantsfrom

enclosedspaces.

Hussmann’sImpactExcellowtemperature

displaycasesformerchandisefeature

technologythatenables15percentgreater

energyefciencyonaveragethanour

standardmodels,and21 percent greater

efciencyonaveragethanthecompetition.

EachdisplaycaseincludesHussmann’s

fulllength,continuous-tubecoilsthatare

designedtolowerenergycostsandreduce

refrigerantleaks.Dischargeairlouvers

furtherreduceenergyconsumptionby

decreasingturbulence.

Hussmannhasintroducedanintegrated

nightcurtainforuseinmediumtemperature,

multi-deckmerchandisers.Thenightcurtain

cuts energy use by about 41 percentwhile

thecurtainisdown,orbymorethan12

percentoverallifthecurtainisused6hours

perday.Anintegratedchannelfullyconceals

thecurtainwhennotinuse.

•

ESH Stewardship through

Product and Service Innovation

Through our products and services, we help companies

become more efficient, innovative and successful.

“All of us have a role to play

in making our company, our

communities, and our planet

as safe and environmentally

sound as they can be.”

— Herbert L. Henkel

Chairman, President and CEO

2006 Environmental, Safety, and Health Report 

TheHussmannProtocolHEdistributedre-

frigerationsystemis20percentmoreenergy

efcientthantheexistinglow-temperature

Protocoldesign.Theproprietarydesign

reduces the refrigerant charge by 60 to

90 percentwhencomparedtoastandard

parallelrack.NamedaftertheMontreal

Protocol—therstworldwideagreement

tophaseoutchlorouorocarbon(CFC)

use—theProtocolHEhasbeendesignedto

reducetheamountoftubingjoints,thereby

decreasingthelikelihoodofrefrigerantleaks

throughoutthesystem’slife.

Comparedtostandarddoors,Impact

InnovatordoorsonHussmannrefrigeration

unitsprovide25percentenergysavings,

andImpactInnovatorIIdoorsprovide40

percent energy savings.

ThermoKingpackageselectricheating,ven-

tilating,andairconditioning(HVAC)tech-

•

nologyasasolutiontohelpreduceengine

emissionsfrombuses.Busmanufacturersin

theUnitedStateshavebeendevelopinghy-

bridvehiclesformorethantenyearsusing

acombinationofbatterypacksandsmaller

engines.Thesuccessfulapplicationofall-

electric HVAC systems further reduces

emissionsbyusingsmallersystemsthat

canrunataconstantcapacityregardless

ofenginespeed.Becausethesesystemsare

sealedandtestedatthefactorylikeahome

refrigerator,reliabilityisimprovedwhile

maintenanceandrepaircostsarereduced.

ThermoKing’sairqualityandair

puricationinitiativesaddressoneofthe

public’stopindoorairqualityconcernsby

developingproductsthatprovideantiviral,

antibacterial,andodorprotectionforbus

andrailpassengers.Threeinitiativesare

currentlybeingtestedandevaluated.The

•

Long-haul tractor-trailer rigs waste more than 800

million gallons of fuel each year in the US idling

at truck stops while their drivers sleep and rest, as

required by local and federal regulations. Recognizing

the huge burden these restrictions impose on truck

and bus companies, Ingersoll Rand business unit

Thermo King, a leading developer of refrigeration

systems for transporting food and other perishable

goods, introduced the TriPac Auxiliary Heating/Cooling

Temperature Management System in 2005 to its US

network of 200 factory-authorized service dealers.

The TriPac eliminates the need to idle truck and

tractor engines for heating, cooling, and powering

accessories in the cab or sleeper compartment. The

TriPac consumes up to 85 percent less fuel than diesel

engine idling, reducing long-haul tractor-trailer idling

emissions and alleviating trucking companies of the

nancial burden of today’s high fuel costs. With the

new technology, owner operators can save hundreds

of dollars a month in fuel costs. Depending upon how

much time a truck spends idling and other factors,

customers can gain a full return on their investment

to purchase the technology within 18 months through

savings in energy costs alone.

Smitheld Transportation Co. and its Packerland

Transport subsidiary have purchased close to 200 TriPac

units to reduce engine idling by tractor eets.

“Before TriPac, we were

averaging 40 to 50 percent

idle time. Now, we’ve reduced

idle time to basically nothing.”

—Ralph Moyle, Inc.

Ingersoll Rand customer

 2006 Environmental, Safety, and Health Report

rstinitiativeisanewproductnamed

EnviroFreshthatisdispensedthroughthe

HVACsystemforodor control and anti-

bacterial protection.Theactiveingredients

inthisproductareknowntohaveanti-viral

capabilityaswell.Thesecondinitiativeisthe

applicationofultravioletlight,whichcankill

harmfulbacteriaandvirusesintheair.The

thirdinitiativeaddressesairltrationwith

theuseofnewhigh-airow,low-micron

lteringmedia.Themediawilltrapmore

andnerparticulatesoveralongerperiodof

timewithlessreductioninairowcompared

toconventionallters.Thelteringmedia

canalsobetreatedwithanti-microbial

substancesthattrapandneutralizeairborne

microbes.

ThermoKing’sinnovativetransport

refrigerationequipmentenablesfood

distributorstoaddressenvironmental

concernssuchasatmosphericozone

depletion,noise,anddieselfuelemissions.

ThermoKing’scryogenic-poweredSB-III

CRtemperaturecontrolsystemusescarbon

dioxide,anaturallyoccurringrefrigerant,for

heatingandcooling.Thissystemeliminates

the need for, and emissions of, ozone-

depleting commercial refrigerantsand

allowsrefrigerationequipmenttooperate

withoutrunningadieselengine.

ClimateControl’sservicebranchesprovide

anauditserviceformonitoringenergy

consumption.Theyassessefciencies

inrefrigeration,lighting,andother

electric-poweredequipment,revealing

opportunities to reduce electrical costs.

•

Industrial Technologies

TheIndustrialTechnologiesSectorisa

collectionofbusinessesthatprovideproducts

andsolutionstoenhanceindustrialefciency

andworkersafetyandofferenvironmental

benetsthroughwastereduction,pollution

prevention,andenergy-efcientpowerand

equipment.

TheAirSolutionsnitrogentireination

system,NitroFill,helpsdeliverfuel

efciency.Industryandgovernmentstudies

suggestthattireslledwithcompressed

nitrogenratherthancompressedairhold

theirpressurelonger,whichimproves

gasmileagebyasmuchas4percent.The

NitroFillsystemalsoprovidessafetybenets

astiresthatholdtheirpressurelonger,

handlebetter,andminimizetheriskof

catastrophicblowouts.Thesamestudies

alsosuggestthatnitrogen-inatedtireslast

upto40percentlongerthanthoselled

withregularcompressedair.Longertirelife

meansthatfewertiresendupaswaste.For

commercialtireusers,nitrogenhelpsreduce

theamountoftimeneededbetweentire

re-treadingorreplacement.Consideringthat

tiresareessentiallypetrochemicalproducts,

itmakesevenmoresensetoextendthe

lifeofatire.AccordingtotheTireRetread

InformationBureau,ittakesapproximately

7gallonsofcrudeoiltoproducealarge-size

tireretread,andmorethan22gallonsto

manufactureanentiretire.Inatingtires

withnitrogencansave millions of gallons

of crude oil every year.

IngersollRandistheleadingsupplierof

HeatofCompressionAirDryers.Thisunique

•

2006 Environmental, Safety, and Health Report 

productprovides clean dry air while

consuming less power than a light bulb,

allowingourcustomerstogreatlyreduce

theirpowerconsumption.

Thecompany’sNirvanavariablespeeddrive

aircompressorhasfewerrotatingpartsthan

anyotheraircompressorinitsclass.Ina

conventionalaircompressor,startingupthe

drivemotorcreatesanenormousenergy

draw,whichcanbeasmuchas800percent

ofthefull-loadnormalrunningcurrent.

Nirvana’sHybridPermanentMagnet®motor

anddrivesystemlimitsthein-rushcurrent

tolessthan100percent.Thesignicant

decreaseinstartingamprequirements

•

minimizespeakcharges,leading to reduced

energy use and cost.

AirSolutionsalsoprovidesuniqueaudits

ofcustomeraircompressorsystems.These

auditstypicallyrevealwaystolower

energy use and costs throughimproved

systemdesign.

IngersollRandwasselectedtobethesole

providerofcompressedairsystemsfor

Tereos,aFrenchcompanyspecializinginthe

conversionofsugarbeetsintosugar.Tereos

purchasedthreeaircompressors,chemical

absorptiondryers,andaremotecontrol

systemforthenewbio-fuelproductionplant

inReims,France.Franceisaggressively

•

With ever-mounting pressures on the energy grid,

more companies are turning to onsite electricity

generation, also known as distributed generation (DG)

technologies, as a source of environmentally friendly

alternative energy.

Ingersoll Rand, through its Energy Systems business,

is a leading pioneer of microturbines, the cleanest-

burning type of combustion DG technology.

Microturbines combine a gas-turbine engine,

recuperator and generator as an integrated system

that converts fuel into electricity and thermal energy.

Ingersoll Rand microturbines, which are available

in 70-kilowatt and 250-kilowatt models, have been

engineered to produce electricity from a wide range

of fuels, such as methane waste gases that emanate

from landlls and wastewater treatment plants, and

high-energy associated gases generated during oil

production.

Ingersoll Rand microturbines also can harness and use

thermal heat produced during energy generation. This

heat can be circled back into the generator to promote

its efciency, as well as to heat water and power other

onsite processes. Combined heat and power (CHP)

applications can be as much as 50 percent more energy

efcient than conventional energy generation systems.

Microturbines are also a source of interest in

developing regions of the world, particularly in Asia.

China, India, Thailand, Malaysia, Indonesia, and

Singapore have begun to implement DG policies

that favor the use of technologies that enhance

power reliability, reduce energy costs, and improve

environmental conditions.

The city of Shanghai, China, for instance, has

implemented a policy supporting high-efciency CHP

projects. The government will allow connection to the

grid, provide gas price subsidies, and reduce import

duties for qualied projects. In 2006, Ingersoll Rand

became the rst DG company to receive grid-parallel

permitting from the government with a microturbine-

based CHP project at the Minhang Industrial Estate.

An Ingersoll Rand microturbine-powered installation

received a 2005 CHP Partnership certicate of

recognition from the US Environmental Protection

Agency (EPA). The CHP system is used in high-rise

apartment buildings for regulating electric and hot

water demands. The CHP system is powered by an

Ingersoll Rand natural gas-red microturbine. Heat

recovered from the microturbine’s exhaust and lube oil-

cooling circuit is used to produce hot water. The system

reduces carbon dioxide emissions by an estimated 100

tons per year.

The Ingersoll Rand 250-kilowatt microturbine system

became the rst microturbine to be certied as

complying with the California Air Resource Board’s

2007 emissions standards for DG technologies.

Compared with a typical utility scale power plant

generating the same amount of electricity, the

microturbine reduces emissions of nitrogen oxides by

more than two tons

annually.

A microturbine at a

wastewater treatment plant in

California

 2006 Environmental, Safety, and Health Report

seekingalternative energy options to

replace fossil fuels.

EnergySystemsoffersclientsenergysavings

andenvironmentalbenetswithnorisk

throughinnovativeEnvironmentaland

EnergyServicesAgreements.Industrial,

commercial,andenvironmentalusers

canbenetfrompower security and

controlled energy costswhilecontributing

toacleanerenvironment.

ProductivitySolutionsoffersanoil

dispensingandevacuationunitthat

improvesanautomobiledealership’sability

tocomplywithenvironmentalregulations

andeliminate oil spillage in its facilities.

IngersollRandairstarters,fromProductivity

Solutions,provideanecologicaladvantage

overelectricstartersinavarietyof

applications,includingon-andoff-highway

vehicles,oilandgas,powergeneration,

marine,rail,andmining.Inaddition

•

toprovidingthemostreliablestarting

performance,airstartersoutlastelectric

starters3:1,aswellasreduce battery usage

and disposal.Byeliminatingexposure

tosparksfromelectricalsystemsand

optionalgas-sealedmodules,airstarters

arethesafeststartingmethod.Withtoday’s

increasinganti-idlinglawsforbusesand

trucks,theairstarter’sruggeddesignallows

forincreasedstartingfrequencyandreduced

emissionstotheenvironment.

ProductivitySolutionsoffersmany

ergonomicimprovementsthroughthe

Zimmermanhandlingsystems,ErgoPower

Tools,AROandIngersollRandbalancers,

andotherequipment.Forexample,Ingersoll

Randmanualhoistshelp prevent worker

injuriesfromliftingheavymaterials.

OtherIngersollRandequipmenthelps

autoindustryemployeesbemoreefcient

andreducestheriskofinjuriesassociated

•

Ingersoll Rand Air Solutions is the rst manufacturer in

the world to be certied Class

Zero for centrifugal air

compressors. Concurrently, Ingersoll Rand has received

Class Zero certication in their oil free rotary screw line

of compressors. The certications were granted to the

entire range of Ingersoll Rand air-cooled and water-

cooled oil-free rotary screw compressors (37 to 350kW)

and water-cooled, oil-free centrifugal air compressors

(160 to 5000 kW) by TÜV Rheinland®, an independent

testing and assessment agency.

The most stringent of all ISO 8573.1 classications,

Class

Zero certication was added in 2001 in response

to critical applications where air purity is essential, such

as the pharmaceutical, food and beverage, electronics

and textiles industries. The certication recognizes

compressors that discharge air free of added oil

aerosols, vapors and liquids.

“The rigorous tests performed by TÜV Rheinland show

our commitment to providing best-in-class equipment

for our customers,” said Eric Seidel, General Manager

for Ingersoll Rand Industrial Air Solutions Business

Unit. “The Ingersoll Rand Class

Zero solution means

lower operating costs, improved productivity and risk

avoidance.”

With maintenance expenses comprising a signicant

percent of lifecycle cost, Ingersoll Rand oil-free

centrifugal and rotary screw air compressors enable

plants to better manage operating costs, minimizing

the need for coolant oil, inline lters and oil / air

separator components. By eliminating the risk

of compressor-created contaminants, air system

components last longer and ensure higher quality air.

Ingersoll Rand oil-free technology also helps

companies avoid risk. Oil-contaminated air can spoil

and ruin products, creating signicant losses of

revenue and customer trust. High-quality air reduces

liability and the potential of product recalls.

Certied Class

Zero air compressors deliver consistently

clean air to critical applications. By providing pure

air, free from additional contaminants, Ingersoll Rand

compressors minimize downtime associated with

cleaning lters and other air system components.

Oil-free technology increases productivity and ensures

higher overall product quality.

Ingersoll Rand oil-free rotary screw and centrifugal

air compressors also help manufacturers comply with

environmental standards such as ISO 14001 and EU

requirements. Because the compressors are oil-free,

manufacturers do not encounter disposal issues with

waste oil and ltration components. Disposal of air

compressor condensation can also be an issue in

lubricated compressors. By creating a clean condensate

that is easier to dispose, oil-free compressors don’t

require special treatment for oil and water mixtures.

2006 Environmental, Safety, and Health Report 

withtheuseofweldguns.Inaddition,

safetyfeaturesonthecomputerizedtorque

wrenchrelievestrainandcanhelptoreduce

repetitivemotioninjuries.

Withworkplacesafetyandliabilitya

constantconcernformanufacturers,

IngersollRandhaslaunchedatoolsafety

programfeaturingagrindersafetyvideo,

brochure,andworkplaceposters.The

18-minutevideofocusesonpotential

risks,preventivemeasures,andtherole

operatorsplayinworkplacesafety.The

programisavailableinsixlanguagesand

includesinformationoncodes,standards,

anddocumentation;personalprotective

equipment;airdeliverysystemsafety;

abrasivewheelhandlingandmounting;

protectivegrinderfeatures;andsafegrinding

techniques.Preventableaccidentsaresimply

unacceptableinindustrytoday;Ingersoll

Randwillcontinuetoimprove product

safetyandprovideprogramssuchasthis

onetohelplimitfutureaccidents.

•

Compact Vehicle Technologies

TheCompactVehicleTechnologiesSector

providesversatile,compactvehiclesand

machinesforconstructionandforefcient

movementofpeopleandgoods.Thesectorhas

focusedonreducingtheenvironmentalimpact

ofitsvehicles.

ClubCarsellsremanufacturedgolfcars.Not

onlydoesthisprovidealow-costoptionto

purchasers,itextends the useful life of

vehiclesaftergolfcourseleasesexpire.

BobcatK-Seriesloadersfeaturethe

SmartFANcoolingsystem—ahydraulically

drivencoolingfanthatsensesmachine

operatingtemperaturesandthenself-

regulatestorotateonlyasfastasneeded.

Thetemperature-controlled,variable-speed

fanoptimizesthecoolingneedsoftheloader

andcanbe30 percent quieterinsome

operatingconditions,whichisbenecialto

bothoperatorsandbystanders.

Bobcatofferspuriermufersformuch

ofitsequipment.Thesemufersreduce

certain harmful exhaust emissions.

•

Given the increase in energy prices and heightened

environmental concerns, Club Car has been at the

forefront of producing innovative technologies that

reduce the use of gasoline and in turn reduce harmful

environmental emissions. The new electrical drive,

called IQ Plus, provides power and performance similar

to gasoline-powered engines. Benets of the system,

compared to earlier electric drive vehicles, include

longer range, increased top speed, better hill climbing

ability, more customization of settings, and improved

diagnostics.

Club Car’s system is unique in delivering power and

reliability versus a gasoline-powered car with faster

charge times that equate to fewer recharges to operate

the vehicle. The Club Car IQ Plus system has the

signicant environmental benet of producing no

direct emissions.

Club Car has also created a Carryall utility vehicle

with the ability to run electric-powered outdoor

maintenance equipment. The one-of-a-kind unit is

completely electric and has no direct emissions. This

“Green Vehicle” was created to help New York Power

Authority employees maintain a state park. It can

power electric lawn mowers, hedge trimmers, weed

whackers, and leaf blowers.

In addition, Club Car provides comprehensive energy

management services addressing all aspects of a golf

course owner’s energy use. The Club Car system helps

owners recharge their eets during off-peak hours

when utility demands (and rates) are lowest. The

system typically yields savings of hundreds of dollars

a month.

In early 2006, Club Car launched an online Energy Cost

Estimator tool on its website (www.clubcar.com) to

help eet golf car and utility vehicle owners as well as

golf course operators calculate the cost of ownership

for gasoline versus electric golf cars.

Club Car’s Carryall 2 Plus utility vehicle

0 2006 Environmental, Safety, and Health Report

MostBobcatproductsareequippedwith

sparkarrestormufersapprovedbytheUS

DepartmentofAgriculture.Theseminimize

the risk of creating a potential re

hazardincertainworkenvironments.

Bobcatusespowdercoatpaintonitsprod-

ucts,aprocessthatresultsinvirtually no

hazardous wasteatthepointofmanu-

facture,aswellasnonhazardouspropylene

glycolinmachinecoolingsystems.

Bobcatmachineshaveavarietyoffeatures

specicallydesignedforoperatorsafety:

roll-overprotectivestructuresandfalling

objectprotectivestructures;various

patentedlock-outsystems;skid-resistant

steps,treads,andgrabhandlesforentering

andexitingmachines;andpatented

secondaryrestraintsystems(seatbars)

andseatbelts.TheexclusiveBobcatdeluxe

instrumentpanelincludesakeylessstart

securitysystem,functionlockouts,and

catastrophicfailureshutdownsystems—all

ofwhichprovidesafety advantages.The

panelcanreportthisinformationineight

differentlanguages.

Bobcatoffersoperatorandservicesafety

training kitstoownersandoperators,

promotingproperuseofmachinesinEnglish

andSpanish.

BobcatoffersadedicatedTrainingResources

website,providingpublic access to all of

its training materials(www.bobcat.comor

training.bobcat.com).

•

Construction Technologies

TheConstructionTechnologiesSectorprovides

equipmentthatsupportsresponsibleESH

performanceintheconstruction,renovation,

andrepairofpublicworksandprivate

projects.

Lighttowersprotect the safety of

construction workersatnight.Product

innovationsincludeeffortstoreduce

ambientlightpollution.

AnewlineofPowerSourcemobile

generatorsintroducedin2006has

environmentallyresponsiblefeatures,

includingnoisereductionanduid

containment.ThePowerSourcelineisthe

onlyoneintheindustrytooffervoltage

selectorswitchprotectionwithanautomatic

shut-off.PowerSourcegeneratorsfeature

environmentalskidbasesthatprovidea

minimum 110-percent containment of

all generator uids for cleaner, safer

worksitesandreducedpotentialfor

environmentalcontamination.Allcontrols

andconnectionpointsaregroupedinan

ergonomicallydesignedpowerpedestalfor

convenienceandsafety.

•

2006 Environmental, Safety, and Health Report 

When teachers and school

police ofcers train at the

Safe Schools Institute in

Boca Raton, Florida, US, they

also receive an education

on products offered by

Ingersoll Rand Security

Technologies. The institute’s

campus includes the Don

Estridge High Tech Middle

School which is a showcase

for cutting-edge teaching

technologies and cutting-

edge safety and security. The

classes at Don Estridge are

monitored from the institute,

via cameras, for training

educators, administrators

and school police ofcers

on how to offer the safest

academic environment

possible. The school is

equipped with a number

of Security Technologies

offerings, including Schlage

VIP locksets, Recognition

Systems HandKey II biometric

handreaders, and Schlage’s

Security Management

Software (SMS). The SMS

system controls the classroom

doors and monitors the

school’s security cameras.

Security Technologies

TheSecurityTechnologiesSectorprovides

productsandsolutionstoenhancethesecurity

andsafetyofresidential,commercial,and

industrialfacilitiesandequipment.

Whenconsideringexitdevices,safetyis

thenumberoneconcern.Evenwithadoor

loadedto250pounds,theVonDuprin

XP98/99requireslessthan40poundsof

pressuretoopen.Thatis25percentlessthan

theUSrecoderequires.Inanemergency

situation,peoplecanmore easily get to

safety.TheXP98/99hasastaticloadforce

resistanceofmorethan2,000pounds—twice

thatofcompetitiveexitdevices.The“smart”

latchchangesshapewhensubjectedto

externalforces.Thisnewdesignenablesthe

exitdoortowithstandanexternalattackand

remainsecure.Additionally,thepatented

latchboltdesignprovidesagreater,long-

lastinglatchbolt/strikecontact—noteasily

affectedbythetwistingmotionofaweak

frame—resultinginanopeningthatremains

strong.

•

OthersafetybenetsofSecurity

Technologiesproductsincludesafe egress

during res or other emergencieswith

VonDuprinpanicbarsandenhanced

personal safety and securitythrough

locksandlocksets,doorclosers,steeldoors

andframes,portablesecuritydevices,

electronicandbiometricaccesscontrol

systems,andclosed-circuittelevision

monitoring.

NORMBAU,partofSecurityTechnologies,

istherstworldwidemanufacturerto

offerarchitecturalhardware,bathroom

accessoriesandttings,andtoiletpartitions

withlong-lasting,effectiveantibacterial

protection.NORMBAUincorporates

Microban®antibacterialprotectionintothe

polymerstructureofthenylonduringthe

productionprocess.Itcannotbewashed

awayorrubbedoff,andremainscontinually

activetoensurethattheantibacterialeffect

remainsforthedurationoftheproduct’s

lifecycle.Thehomogeneousdistributionof

theagentthroughouttheproductprovides

effectiveandlong-lasting prevention of

germ build-up,signicantlyreducingcross-

contaminationfromcontactareas—even

inthemostinaccessibleplaces.Thevicious

cycleofcontinualgermtransmissioncan

therebybebrokeninaneffectivemannerin

placessuchasschoolsandhospitals.

•

2 2006 Environmental, Safety, and Health Report

Our Business Vision

OurpursuitofDramaticGrowthisbased

onourcommitmenttodevelopingnew,

innovativesolutionsforourcustomers.In

addition,DramaticGrowthinvolvesthepursuit

ofmarketshareandrevenuegrowththrough

strategicacquisitionsthatexpandourproduct

offeringsandenhanceourcompetitiveness.It

alsoinvolvesthegrowthofrecurringrevenues

fromaftermarketpartsandinstallation,

maintenance,andotherservices.

OperationalExcellenceisastrategythat

aimstoimproveoperatingperformance.By

pursuingcontinuousimprovementinallofour

operationsthroughinitiativessuchasLeanSix

Sigma,weintendtocontrolcostsandimprove

efcienciesforgreatercashowsfrom

operationsandoperatingprot.

DualCitizenshipisourtermfor

collaborationamongourpeopleandour

businesses.ThroughDualCitizenship,we

areunleashingthecollectivestrengthofthe

enterprisebyworkingcollaborativelyacross

ourbusinesses,markets,andgeographies;

applyingbestpractices;sharinginformation;

transferringknowledge;anddelivering

enhancedproductandserviceofferingstoour

customers.

Ingersoll Rand Leadership

IngersollRandhasanalignedleadership

structurecomprisedoftwoteamsofsenior

managers—theEnterpriseLeadershipTeam

andtheBusinessLeadershipTeam—whowork

togethertodrivecustomer,shareholder,and

internalvalue.

TheEnterpriseLeadershipTeamis

comprisedofIngersollRandChairman,

PresidentandChiefExecutiveOfcerHerb

Henkel,thesectorpresidents,andother

seniorleaders.TheEnterpriseLeadershipTeam

providesstrategicdirectionacrosstheIngersoll

Randenterprise,positioningthecompanyto

achieveDramaticGrowth,Operational

Excellence,andDualCitizenship.TheBusiness

LeadershipTeamconsistsofseniorleaders

fromIngersollRandbusinessunitsandthe

CorporateCenter.TheBusinessLeadership

Teamexecutesstrategyatthebusiness/

functionallevel.

To keep management apprised and en-

gaged, the ESH corporate director reviews the

company’s ESH performance with the Enter-

prise Leadership Team. In 2006, each business

sector president met with the ESH corporate

director and corporate ESH staff to review the

sector’s ESH performance results. In addition,

Vision and Strategy

Ingersoll Rand’s corporate vision is dedicated to driving

shareholder value by achieving Dramatic Growth,

Operational Excellence, and Dual Citizenship.

2006 Environmental, Safety, and Health Report 

starting in 2007, the sector presidents and

senior management will receive an update on

ESH performance at least annually.

ESH Vision and Strategy:

Supporting the Company’s Vision

OurESHvisionwasdevelopedtoreecteach

ofthethreecomponentsofthecorporate

vision:DramaticGrowth,Operational

Excellence,andDualCitizenship.Fromthis

vision,wecreatedanESHstrategytodriveour

programsandperformance.

OurstrategyincludesESHpolicies

andpracticesthatsupportIngersollRand’s

DramaticGrowth.OurESHprofessionalstrack

andevaluateever-changingglobalESHissues,

includingsustainabledevelopment,climate

change,andproductendoflife;prepare

shareholderdocuments;assistwithdue

diligencesupportformergersandacquisitions;

integrateESHpoliciesandproceduresof

acquiredcompanies;anddevelopESH

managementsystemstoproperlyaddressall

IngersollRandoperations.

TohelpIngersollRandcompaniesachieve

andmaintainESHOperationalExcellence,ESH

professionalsprovideassistancewithachieving

regulatorycompliance;trackandplanfornew

regulations;establishESHrequirementsforall

IngersollRandcompanies;provideportfolio

managementassistanceforremediation

projects;assistproductmanufacturingwith

processdevelopment;managedata;and

identifyandmanagecoststoensureresources

areprudentlyspent.

WesupportDualCitizenshipthrough

oursystemforsharingbestpracticesacross

thecompany;bycommunicatingacrossthe

companyonESHissuesthataffectIngersoll

Randfacilities;andbyprovidingregional

guidanceonimplementingprogramsandbest

practicesthroughourregionalcouncils.

Sector and Business Unit ESH Goals Drive

Performance Improvement

ContinuouslyimprovingESHperformance

contributestoourcorporatevisionandESH

strategy.Eachyear,thesectorsestablishESH

goalsatthesector,businessunit,orfacility

levelintheareasoflostworkdaycaserate,

totalrecordablecaserate,hazardouswaste

disposal,orotherareasasappropriatetoeach

businessunit’soperations.

Engaging Stakeholders

Ourstakeholdersaresimilartothoseofother

publiclytradedcompanies.Theyinclude:

customersandconsumers;

employeesandtheirfamilies;

retirees;

shareholdersandinvestorgroups;

suppliersandcontractors;

neighborsandcommunitygroups;

regulators,legislators,andpoliticalleaders;

nongovernmentalorganizations(NGOs);and

academia.

•

Ingersoll Rand is a member of the Business Roundtable, an association of chief executive ofcers of

leading US companies. The Roundtable is committed to advocating public policies that ensure vigorous

economic growth, a dynamic global economy, and a well-trained and productive US workforce essential

for future competitiveness. Ingersoll Rand participates in the Business Roundtable’s Climate RESOLVE

(Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts) initiative, which seeks to

have every company in every sector of the economy undertake voluntary actions to control greenhouse

gas (GHG) emissions and reduce the GHG intensity of the US economy. In addition, Ingersoll Rand

participates in the Business Roundtable’s S.E.E. (Social, Environmental, Economic) Change Initiative,

which promotes better business and a better world by encouraging Roundtable members to adopt

sustainability principles as a business planning tool and to showcase the results achieved. The initiative

asks America’s leading companies to set challenging goals for environmental and social improvement,

and to meet these goals in a manner that creates business value.

Ingersoll Rand is also a member of the Organization Resources Counselors (ORC). The ORC mission is to

contribute to the denition and achievement of human relations and organizational goals by executives

in business, government, and nonprot organizations worldwide. Ingersoll Rand actively participates in

the Occupational Safety and Health Group, Lawyers Group, and Medical Benets Group within ORC.

Ingersoll Rand is a member of the Manufacturers Alliance/MAPI. The alliance promotes technological

and economic progress of the United States through studies and seminars on changing legal, economic,

and regulatory conditions affecting industry. Ingersoll Rand actively participates in many of the MAPI

councils, including the environmental council.

 2006 Environmental, Safety, and Health Report

Achieving Goals through Our ESH Policy

Ourglobaloperations,andcompaniesin

whichIngersollRandhasgreaterthana50

percentownership,operateunderacommon

ESHpolicy.WeperiodicallyreviewourESH

policytoensureitcontinuestomeetour

needsandthegrowingexpectationsofour

keystakeholders.Thepolicywasformally

reviewedin2007andlastrevisedin2006.

TheIngersollRandESHpolicyisavailable

inEnglish,Chinese,Czech,Danish,Dutch,

French,German,Gujarati,Italian,Japanese,

Kannada,Portuguese,Russian,Spanish,and

TurkishandispostedatallIngersollRand

facilities.

Governance Structure and

Management Systems

Ingersoll Rand conducts its worldwide business

operations in a safe and environmentally responsible

manner.

2006 Environmental, Safety, and Health Report 

Ingersoll Rand embraces its responsibility to operate in

a manner that protects the environment, and human

health and safety in order to support the company’s

long-term growth and reputation as a responsible

corporate citizen. We will meet this responsibility by the

following actions:

As a minimum level of performance, we will

comply with global, national, state, and local statutes,

regulations, standards, and other requirements

protecting the environment, and human health and

safety. In the absence of laws and regulations, or where

they are simply not adequate for our operations, we will

apply sound environmental, safety, and health (ESH)

management practices.

We will establish global internal ESH standards that

are robust, scientically sound, and protective of the

environment, and human health and safety.

We will conduct regular audits to verify compliance

with regulatory requirements and company standards.

We will implement ESH management systems

to identify and manage ESH risks, obligations, and

opportunities. We will establish specic ESH metrics to

measure and report on our performance.

We will incorporate ESH considerations into our

business decision-making processes. We will work to

prevent accidents, injuries, and unsafe work conditions,

promote energy and water conservation, encourage the

reuse and recycling of materials, and reduce waste and

emissions, and the use of hazardous substances in our

operations. We will share ESH best practices across the

company.

We will monitor emerging issues and keep abreast

of regulatory changes, technological innovations, and

stakeholder interests. We will strive to develop effective

and sustainable solutions to ESH challenges arising

from our business activities.

We will regularly communicate relevant and

meaningful information about our ESH performance to

our internal and external stakeholders.

It is the responsibility of corporate ESH staff

to establish policy, govern compliance, and review

the company’s ESH performance with company

and business unit management on a periodic basis,

including compliance with this policy. In addition,

corporate ESH will facilitate participation in training and

conferences to foster sharing of best practices across

the enterprise.

Each business unit is responsible for implementing

this policy, allocating adequate resources, and

developing ESH programs. Employees and on-site

contractors are responsible for integrating sound ESH

practices into their everyday activities, and acting in

a manner that is protective of the environment, and

human health and safety.

Thispolicywillbereviewedannuallyand

updatedasneeded.

Ingersoll Rand Environmental, Safety, and Health Policy

 2006 Environmental, Safety, and Health Report

Global ESH Management and Organization

IngersollRandhasanESHpolicy,

requirements,standards,andprogramsthat

enablethecompanytoconductworldwide

operationsinasafeandenvironmentally

responsiblemannerandtomeetourESHgoals.

Theserequirements,standards,andprograms

assistbusinessmanagersandfacilitiesin

developingandimplementingenvironmental

solutionstailoredtotheirneeds.Throughthe

company’sAuditCommittee,theBoardof

DirectorsoverseesESHpolicyandcompliance

aspartofitscorporategovernance.

ResponsibilityfordevelopingESH

programsandassuringthatouroperations

meetandsustaincompliancewithall

applicablelocal,national,andinternational

lawslieswithourCorporateDirectorofESH

incooperationwiththecompany’sbusiness

managers.GuidanceisprovidedbytheESH

councils,whicharecomprisedofIngersoll

RandESHprofessionalsworldwide.

ESHprofessionalspartnerwithothers

acrossIngersollRand’soperationsand

businessfunctions.Ourgoalistomove

fromacomplianceassurancemodelofESH

managementtoabusinessintegrationmodel,

inwhichESHisintegratedintoourday-to-day

andstrategicbusinessdecisions.

ThefollowingelementsofourESH

managementapproacharecriticaltoour

success:

Management Commitment—Werequire

strongleadership,support,andparticipation

bymanagersatalllevelsforourESHpolicy

andprograms.

Training—IngersollRandiscommitted

totraining.Thisincludessite-specic

trainingrelativetoapplicableregulatory

requirements.Italsoincludesworkshops

andnewslettersthataddresscompliance

withcorporatepolicies,standards,and

programs,andthatpromotetheuseof

bestmanagementpracticestoimproveESH

performancewithinthecompany.

Communication—Wecommunicatetoour

employeesandstakeholdersaboutourESH

performanceandESHmanagementsystem.

Measurement—ThroughourESHcouncils,

wemeasurecriticalESHparameters,such

asemissions,wastegeneration,recycling

efforts,energyusage,waterusage,and

frequencyandseverityofworkplace

incidents.Itisthroughthesemeasurements

thatcontinualimprovementtoward

establishedobjectivescanbemonitoredand

achieved.

Evaluation—Weconductperiodic

evaluationsatouroperatingfacilities.Each

operatingdepartmentorbusinessunitis

accountableforaddressingtheevaluation

resultsandpreparingacorrectiveaction

plan.

•

Ingersoll Rand is working

to better integrate ESH into

the company’s business

decisions and practices. For

example, we are rolling out a

new enterprisewide Business

Operating System (BOS),

which will yield benets that

extend beyond nancial

rewards. The BOS will create

a safer work environment by

implementing Lean tools and

methodologies—and weeding

out unsafe work practices. The

BOS will drive nancial and

ESH benets for the company.

Ingersoll Rand has identied

six Enterprise Focus Areas

(EFAs) to support BOS.

Our strategy is to focus on

Global Leadership, World

Class Operations, Innovation,

Life Cycle Management,

Customer Value, and Strategic

Management. Training will

be provided for each EFA

to develop companywide

practices. The goal is to take

Ingersoll Rand from being a

good company to a great one,

without settling for “good

enough.”

2006 Environmental, Safety, and Health Report 

ESH Professionals

PrimaryresponsibilityforESHmanagement

resideswitheachIngersollRandsector.

Startingatthefacilitylevel,staffsefciently

managecompliancewithgovernmental

regulationsandIngersollRandpolicies.In

addition,wehavebusinessunitandsector

staffdedicatedtoESH.

Atthecorporatelevel,ESHstaffestablish

policiesandguidelines,andmanagerisks

associatedwithtransactionsandsitecleanups.

Theassistantgeneralcounselandcorporate

directorofESHreportstothevicepresident

–corporategovernanceandsecretary,whoin

turnreportstothegeneralcounsel,whoisalso

aBoardmember.Sector,businessunit,and

facilitylevelESHpersonnelareresponsible

forreportingcertainmatterstothecorporate

directorofESH.Ifasituationweretoarise

requiringimmediateattention,itwouldbe

communicatedtotheCEOthroughthegeneral

counselorasectorpresident.

Atthesector,businessunit,andfacility

levels,manypeoplehaveresponsibilityfor

ESH.TodirectESHactivitiesglobally,Ingersoll

RandformedESHcouncilsinthe1980s.

Additionally,IngersollRandsponsorsannual

ESHconferencestoshareESHpracticesandto

fosterlearningacrosstheenterprise.

Global ESH Requirements Provide Clear

Performance Expectations

IngersollRandglobalESHrequirementsapply

toallfacilitiesworldwide.Therequirements

coverabroadrangeoftopics,including:

developmentandmaintenanceofanESH

ManagementSystem;

restrictionsonasbestos,chlorinated

solvents,lead,andcyanidematerialuse;

managementandcontroloftheuseof

undergroundstoragetanks(USTs)andother

subsurfacestructures;

use,maintenance,anddisposalof

polychlorinatedbiphenyl(PCB)-containing

electricalequipment;

guidelinesforregulatoryagencyinspections

andcommunicationwithexternalaudiences;

authorizationofESHdocuments;and

internalreportingrequirements.

Inaddition,eachIngersollRandbusinessand

facilityisrequiredtoinvestigate,understand,

andaddressanyadditionalESHissuesthat

applyandthatarenotsatisfactorilycovered

bytheESHrequirements.

EachIngersollRandbusinessandfacility

isrequiredtocomplywiththespeciclocal,

state,andfederalrequirementsthataffect

theiroperation.

•

 2006 Environmental, Safety, and Health Report

In 2006, Bobcat Company’s

Gwinner, North Dakota,

US, facility became the rst

Ingersoll Rand site within

the United States to receive

third-party certication to

OHSAS 18001. The facility

also became certied to ISO

14001 during the same year.

This accomplishment reects

the leadership, commitment,

and hard work of Bobcat

employees throughout the

site.

The Climate Control

Technologies plant in

Pamplona, Spain received

OHSAS 18001 certication

in 2006. By 2005, the plant

had achieved ISO 9001 and

ISO 14001 certication and

decided to add the safety and

health component addressed

by OHSAS. It took a year

of hard work, but the plant

achieved its objective, and

will continuously improve its

practices regarding employees’

safety and health.

ESH Management System

IngersollRandrequireseachfacilitytohave

anESHmanagementsystem(ESHMS).The

managementsystemismodeledafterISO

14001andOHSAS18001.In2006,theESHMS

wasupdatedtomorecloselyalignwiththe

OHSAS18001andANSIZ10standards,clarify

certainmanagementsystemrequirements,and

mandateannualESHself-assessments.

EighteenIngersollRandfacilitieshave

receivedthird-partycerticationoftheir

ESHMStotheISO14001standard.Sixofthese

facilitiesalsoreceivedOHSAS18001(health

andsafety)certication.

ISO 14001 Certied Ingersoll Rand Facilities

Sector Location

Year certication was

rst achieved

Climate Control Technologies Barcelona, Spain

Galway, Ireland

Kolin, Czech Republic

Luoyang, China

Pamplona, Spain

Prague, Czech Republic

Shenzhen, China

Suzhou, China

2005

2000

2001

2003

1999

2001

2003

2005

Compact Vehicle Technologies Gwinner, North Dakota, US 2006

Industrial Technologies Guilin, China

Naroda, India

Oberhausen, Germany

Pavlovo, Russia

Sahibabad, India

Shanghai, China

Uni

cov, Czech Republic

2006

2002

2005

2006

2005

2003

Security Technologies Leamington Spa, UK

Walsall, UK

2006

2002

OHSAS 18001 Certied Ingersoll Rand Facilities

Sector Location

Year certication was rst

achieved

Climate Control Technologies Galway, Ireland

Kolin, Czech Republic

Pamplona, Spain

Suzhou, China

2006

2005

2006

2005

Compact Vehicle Technologies Gwinner, North Dakota, US 2006

Industrial Technologies Sahibabad, India

Uni

cov, Czech Republic

2006

2005

2006 Environmental, Safety, and Health Report 

ESH Tools

ESHstaffareprovidedwithavarietyoftools

toachieveESHrequirementsandprogram

goals,includingacompany-widenewsletter,

intranetsite,conferences,trainingprograms,

andon-demandaccesstospecializedexpertise.

IngersollRandmaintainsanemployeehotline,

staffedbyanexternalESHconsultingrm,

tohandlespecicquestions.In2006,the

hotlinereceivednearly120callscoveringa

widevarietyofissues,suchastheEUproduct

regulationsforelectricalproducts,ESH

reviewofnewchemicals,hazardousmaterials

management,DOTrequirements,spill

management,toxicinventoryandemissions

reporting,andESHtrainingrequirements.

ACodeofConducthotlineisalsoavailable

foremployeestovoiceconcernsabout

businessconductcondentially.

ESH Councils Enhance Dual Citizenship

IngersollRandhasthreeregionalESHcouncils,

coveringNorthAmerica,Europe,andAsia-

Pacic.Thecouncilmembersincludesector,

businessunit,andfacility-levelESHstaff,and

additionalenvironmental,risk,safety,and

healthexperts.CorporateESHprofessionals

participateinallthreecouncils.Therolesand

responsibilitiesofthecouncilmembersareto:

serveasrepresentativesfortheirentire

businessunit;

participateindevelopingorrevisingESH

policy,requirements,andguidelines;

•

providecouncilmeetingminutesandshared

informationtoESHcontactsatthefacilities;

seekbestpracticesthroughoutthebusiness

unitstosharewiththecouncil;

serveasprimarypoint-of-contact

forthebusinessunitforcriticalESH

communications;

distributecriticalESHinformationpromptly

toallbusinessunitfacilities;and

collectrequesteddatafromallbusinessunit

facilities.

In2006,theNorthAmericanESHCouncil

metonceandheldtwoteleconferences.The

EuropeanESHCouncilheldateleconference,

andthenewlyformedAsia-PacicESH

CouncilmetforthersttimeinSeptember.

Councilmeetingsgenerallyconsistofa

reviewanddiscussionofESHsubjectsthat

impactIngersollRandfacilities.Themeetings

aretypicallyheldatornearanIngersoll

Randfacilityandincludeafacilitytour.

Topicsgenerallydiscussedduringthecouncil

meetingsinclude:

statusofongoingESHprograms;

upcomingESHprograms;

regulatorychangesandhowtheywillimpact

operations;

ESHinvolvementinmerger,acquisition,and

divestitureactivities;

updatestotheESHmanualandtraining

issues;and

ESHawardsandbestmanagementpractices.

•

20 2006 Environmental, Safety, and Health Report

TheinauguralmeetingoftheAsiaPacicESH

CouncilmeetingwasheldinShanghai,China,

inSeptember2006.Morethan25people

attended,includingESHstaff,plantmanagers,

andseniorleadershipteammembersfrom

variousbusinessunitsoperatinginChinaand

India.Duringtheone-daymeeting,attendees

shareddetailsofbestpracticesintheir

facilitiesandparticipatedindiscussionsonthe

company’sglobalESHassessmentprogram,

metrics,regulatoryupdates,pandemic

preparedness,andtheenvironmentalaspects

ofrealestateandduediligenceactivities.

Promoting ESH Excellence through the

Annual Conferences

IngersollRandhelditsrstNorthAmerican

environmentalconferencein1979and

beganmanyofitsenvironmentalprograms

shortlythereafter.AnnualNorthAmerican

conferencescontinuedthrough2005.In2006,

thecompanyhosteditsrstGlobalESH

Conference,whichtookplaceinMonterrey,

Mexico,withathemeof“OneIngersoll

RandAroundtheWorld.”Attendeesfrom

theAmericas,European-servedareasand

AsiaPacicparticipatedintheconference.It

Top left and right: Simon Liu,

ESH engineer for Thermo King

Suzhou, China, participated

in an ESH communication

conference hosted by the

Safety Surveillance Bureau of

the local government.

Bottom left: Inaugural Asia

Pacic ESH Council meeting.

Bottom right: Dave Sordi

(left), Manager Environmental

Engineering and Gretchen

Digby (right), Manager Safety

& Health Engineering, present

the 2006 ESH awards at the

Global ESH Conference.

2006 Environmental, Safety, and Health Report 2

providedaplatformforinformationsharingon

topicsofinterestgloballyandsupportedthe

company’svisionofDualCitizenship.

Theannualconferenceshelpdemonstrate

seniormanagement’scommitmentto

ESH.Throughbestpracticesharingand

benchmarkingwithotherIngersollRand

facilitiesaroundtheworld,ESHstafflearn

howtointegrateESHintothebusinessand

haveapositiveimpactontheirfacilitiesand

thecommunitiesinwhichtheyliveandwork.

Theconferencesprovideimportanttraining

forthecompany’sESHprofessionalsand

encouragecommunicationacrossdifferent

regionsandbusinesssectors.

ESH Training

IngersollRandcorporateESHofferstraining

invariousforms—forinstance,through

annualESHconferences,workshops,and

teleconferenceseminars.Pastteleconference

seminarsaddressedthefollowingtopics:

SARATitleIIIToxicReleaseInventory.The

issuesdiscussedduringtheteleconference

includedapplicabilityoftheregulations,

thresholdcalculations,formcompletion,

emissioncalculations,andde minimis

exemptions.

•

Hexavalentchromiumuse.Thetopics

discussedincludedthebanontheuseof

hexavalentchromium,lead,cadmium,and

mercuryinproductscontainingelectronicor

electricalcomponentsinEUcountries.

EUenvironmentalandsafetyregulations.

Theteleconferenceupdatedstakeholders

withinthecompanyonthestatusof

changingregulations,includingtheprogress

madebyIngersollRandoperationsinEU

countriestoimplementtheEUdirectives

regardingelectricandelectronicequipment

wasteandassociatedhazardoussubstances.

ESHcompliance.Theseteleconferences

focusedonregulatoryandIngersollRand

requirements,andtheywereheldduringthe

weekpriortotheannualconference.These

teleconferenceswillbeheldannuallygoing

forward.

•

22 2006 Environmental, Safety, and Health Report

ESH Performance Results

Ingersoll Rand is committed to improving its ESH

performance.

AsaresultofourESHrequirementsandgoals

denedbythevariousbusinessunits,there

aremanyproceduresandprogramsinplace

todecreasetheenvironmentalimpactofour

operationsandproductsonhumanhealthand

theenvironment.Thissectiondescribesthe

ESHmetricswetrackandourperformance

results.

ESH Data in this Report

ThisreportincludesESHperformance

metricscollectedfromtheNorthAmerican

manufacturingfacilities.Datafromdivested

operationsareincludedfortheyearsthey

werepartofIngersollRand.IngersollRand

isintheprocessofcreatingacompany-wide

metricscollectionsystem.

Datainthisreportinclude:

electricityused,

heatingoilandkeroseneused,

waterused,

hazardouswastegenerated,

nonhazardouswastegenerated,

•

nonhazardousoilsandcoolantsgenerated,

nonhazardouswasterecycled,

useofundergroundstoragetanks(USTs),

and

polychlorinatedbiphenyls(PCBs).

(1)

InformationregardingIngersollRand’stoxic

chemicaluseandwastemanagementinthe

UnitedStatesisavailablethroughEPA’sToxic

ReleaseInventory(TRI)database(http://

www.epa.gov/tri/tridata/index.htm).

Compliance through the ESH Assessment

Program

ESHassessmentsaregenerallyperformed

forallmanufacturingandservicelocations

worldwideonathree-yearcycle.Facilitiesare

assessedagainstlocalregulatoryandIngersoll

Randrequirements,includingtheESHmanual,

thefacility’smanagementsystem,andbest

managementpractices.Third-partyESH

professionalsareretainedbyIngersollRand’s

legaldepartmenttoperformtheassessments.

•

(1) PCBs are toxic chemicals,

suspected of causing cancer

in humans, which have been

used in hundreds of industrial

and commercial applications,

including electrical and

hydraulic equipment.

2006 Environmental, Safety, and Health Report 2

Environmental Performance Metrics

Water Use

TheamountofwaterusedbyIngersollRand

facilitiesincludesthetotalamountofwater

usedforprocesses,cooling,maintenance,

landscaping,sanitaryneeds,andother

activities.Thisdoesnotincludewaterin

closedloopsystemsotherthanwateradded

duringtheyear.IngersollRandmanufacturing

facilitiesinNorthAmericaused194million

gallonsofwaterduring2006.

Energy Use And Greenhouse Gas Emissions

IngersollRandfacilitiesreportelectricityand

keroseneuseonanannualbasis.Kerosene

trackingincludesfueluseonlyanddoes

notincludekeroseneusedasasolventor

degreaser.

In2006,IngersollRandmanufacturing

facilitiesinNorthAmericaused303million

kilowatthours(kWh)ofelectricityand104

thousandgallonsofkerosene.

IngersollRandisworkingtoward

developingagreenhousegas(GHG)inventory.

Weareintheprocessofdeterminingwhich

GHGmetricsareusefulandtheappropriate

baselineyearfordatacollection.Inthefuture,

IngersollRandfacilitiesmaydevelopGHG

reductionplansthatwillnotonlyreduce

emissionsbutalsogeneratecostsavingsby

reducingtheamountofenergy,solvents,and

fuelused.

120

150

Heating Oil

2006200520042003

Heating Oil, Kerosene Use

North America, thousand gallons

100

150

200

250

300

350

400

Electricity

2006200520042003

Electricity Use

North America, million kilowatt-hours

100

150

200

250

300

350

400

Water Use

2006200520042003

Water Use

North America, million gallons

2 2006 Environmental, Safety, and Health Report

Hazardous Waste Management

IngersollRandfacilitiesreportonamonthly

basisthetotalsumofhazardouswaste,as

denedlocally,andalloilsandcoolantsthat

areshippedoff-sitefordisposal,recycling,or

reuse.

In2006,IngersollRandmanufacturing

facilitiesinNorthAmericagenerated1.33

millionpoundsofhazardouswaste.This

representsa43percentincreaseover2005,

andresultedprimarilyfromone-timeeventsat

severalfacilities:

Replacementanddisposalofoldwooden

boxesthatwerecoatedwithleadpaint

Leakinaplatingbaththatgeneratedchrome

waste

Contaminatedsoilandmaterialsfromsite

cleanup

One-timeshipmentoffsiteofpolishinglint

thatwasclassiedashazardous

Forthethreepreviousyears,our

hazardouswastegenerationhadbeen

declining.Weexpectthistrendtocontinuein

2007.

•

Nonhazardous Waste Management

IngersollRandfacilitiesreportonanannual

basistheamountofwastenotclassiedas

“hazardouswaste”thatisshippedoffsitefor

disposal,recycling,orreuse;excludingscrap

metal.Thisincludesoilsandcoolantsthatare

usedforfuelblending,aslongastheyarenot

classiedbylocalregulationsashazardous

waste.

In2006,NorthAmericanmanufacturing

facilitiesgenerated43.37millionpoundsof

nonhazardouswaste,generated1.81million

poundsofnonhazardousoilsandcoolants,and

recycled18.92millionpoundsofnonhazardous

waste.

0.25

0.50

0.75

1.00

1.25

1.50

HazWaste

2006200520042003

Hazardous Waste

North America, million pounds

Nonhazardous Waste

2006200520042003

Nonhazardous Waste

North America, million pounds

recyled

2006200520042003

Recycled Nonhazardous Waste

North America, million pounds

2006 Environmental, Safety, and Health Report 2

Other Environmental Reporting Metrics

Otherenvironmentalreportingmetricsinclude

chlorinatedsolvent,UST,andPCBuse.All

chlorinatedsolvents,withtheexceptionof

materialsusedforHVACequipment,re

extinguishers,andothernon-solventuses,are

reportedbythefacilitiesonanannualbasis.

USTandPCBuseisgovernedbyourESH

requirements.Facilitiesreportthenumberof

USTsinuse,excludingprocesstanks.Also,

facilitiesreportonthenumberofPCBunits

inuseatourfacilities.A“PCBunit”isdened

asatransformerorcapacitorwithoilwitha

PCBconcentrationof50milligramsperliter

orhigher(excludingcapacitorswithinlighting

ballasts).

In2006,therewasonlyoneUSTinuseat

ourNorthAmericanfacilities.

Since1986,IngersollRand’spolicyisto

dramaticallyreducetheuseofchlorinated

solventsinallprocessesandeliminatethem

unlessnoalternativesareavailable.In2004,

IngersollRandfacilitiesinNorthAmerica

eliminatedtotallytheuseofchlorinated

solventsinallmanufacturingprocesses.In

2006,weused35gallonsofachlorinated

solventwithinacontrolledlabenvironment

whichwasrequiredforperformancetestson

ourproducts.

Since2003,therehavebeennofacilitiesin

NorthAmericawithPCBunits.Internationally,

thelastPCBunitswereeliminatedinlate2005.

Environmental Expenditures

Throughproactiveprograms,suchasthe

ESHrequirementsandESHassessments,

IngersollRandstrivestoimprovehuman

healthandenvironmentalprotection.These

sameprogramsaredesignedtopreventfuture

environmentalliabilities.

AsofDecember2006,IngersollRand

wasinvolvedin56environmentalcleanups

worldwideassociatedwithpastactivities,

althoughtheactivitieswerelawfulatthetime

theyoccurred.These56sitesareinvarious

0.0

0.5

1.0

1.5

2.0

2.5

3.0

nhaz oils

2006200520042003

Nonhazardous Oils and Coolants

North America, million pounds

Environmental Metrics: North American Manufacturing Facilities

Units 2003 2004 2005 2006

Water Use million gallons 395 235 220 194

Electricity use million kWh 388 331 284 303

Heating oil/kerosene use thousand gallons 148 130 143 104

Hazardous waste million pounds 1.06 1.03 0.75 1.33

Nonhazardous waste million pounds 70.5 54.8 44.6 43.4

Recycled nonhazardous waste million pounds 28.7 24.6 19.2 18.9

Nonhazardous oils and coolants million pounds 2.73 2.79 2.11 1.81

Chlorinated solvents used gallons 466 0 0 35

PCB units (not including lights) units 0 0 0 0

2 2006 Environmental, Safety, and Health Report

stagesofremedialactivity.Atsomesites,

remedialactivitiesareoccurring;atother

sites,remediationiscompleteandthesiteis

inamonitoring-onlyphase;andsomesites

arestillintheinvestigationstage.Ingersoll

Randstrivestoutilizethemosteffective

remediationtechniquespossible.Remediation

managersregularlyinteractwithgovernment

agenciestoprovidecost-effectiveremediation

methodsandtechnologiesthatprotecthuman

healthandtheenvironment.

Todate,IngersollRandhasachieved

closureat33sites.Thesesiteshavereceived

sometypeof“NoFurtherRemedialActivity

Necessary”certicationfromtheappropriate

regulatoryagencyorremedialactivitieswere

discontinuedbecausetheriskshavebeen

mitigated.

During2006,thecompanyspent$9.4

millionforenvironmentalremediationexpen-

dituresatsitespresentlyorformerlyownedor

leasedbyIngersollRand.Theseremediation

costsarereviewedfourtimesperyearbyour

corporateESHprofessionalsandourauditor,

PricewaterhouseCoopers,toassureappropriate

reserves.InadditiontoourESHprograms,we

areestablishingaremedialscorecardsystem.

Thisscorecardwillassistinmanagingour

remedialactivities,supporttimelyinteraction

andcompliancewiththeappropriateregula-

tions,andhelptomitigateriskstoreceptors.

IngersollRandalsospentapproximately

$5millionduring2006oncapitalprojects

forpollutionabatementandcontrolatits

operatingfacilities.Itshouldbenotedthat

theseamountsaredifculttoestimate

becauseenvironmentalimprovementcostsare

generallyapartoftheoverallimprovement

costsataparticularplant.Therefore,an

accurateestimateofwhichportionofan

improvementoracapitalexpenditurerelates

toanenvironmentalimprovementisdifcult

toascertain.Thecompanybelievesthat

theseexpenditurelevelswillcontinueand

mayincreaseovertime.Giventheevolving

natureofenvironmentallaws,regulations,

andtechnology,theultimatecostoffuture

complianceisuncertain.Basedonour

evaluationofthefactsandlegalissues,

IngersollRandhasreservedfundstofully

coverourprojectedliability.Theremediation

costestimateisnotmaterialtothecompany’s

nancialstatement.Additionalinformation

regardingenvironmentalliabilitiescanbe

foundinourannualreportonForm10-Kfor

theyearendingDecember31,2006.

Employee Safety and Health Programs and

Performance

IngersollRandiscommittedtocontinuously

improvingitssafetyandhealthpractices.

IngersollRandsupportsthepromotion

ofsafetyandhealth,andtheprevention

ofdisease,illness,anddisabilityatallof

ourfacilities.Preventivehealthcareis

thecornerstoneofanyhealthcaresystem

designedtoreducecostsandhumansuffering.

Wellnessisthedynamicprocessof

promotingandpursuingideas,attitudes,and

behaviorstowardacultureandwayoflifethat

2006 Environmental, Safety, and Health Report 2

focusesonattainingbalance,goodhealth,and

peaceofmind.Byencouragingemployeesto

adoptmorehealthfulchoicesandbehaviors,

wellnesspromotionhasbeenproventolower

healthcareandinsurancecosts,decrease

absenteeism,andimproveperformanceand

productivity.

Tohelpprotectemployeesfromthe

traditionalseasonalinuenzaor“u,”Ingersoll

RandestablishedaSeasonalInuenzaVaccine

Policyin2006.Employeesworldwidehave

theopportunitytoreceiveatnocharge

theseasonalinuenzavaccine.Employee

participationintheprogramisvoluntary,but

allareencouragedtoparticipate.

IngersollRandhasdevelopedand

implementedaPandemicInuenza

PreparednessPlan.Theplanwasdesignedto

reducetheriskofillnessamongemployees

andtheirfamiliesthroughproactive

implementationofpreventivemeasuresinthe

eventofapandemicinuenza.

Safety And Health Training For Nurses

IngersollRandcorporatemedicalservices

conductsmonthlyglobalteleconference

seminarsforourmanufacturingfacilitynurses.

Topicsdiscussedduringthecallsinclude

IngersollRandpoliciesandprocedures,

medicalinformation,resourcesformedical

information,bestpractices,currentmedical

issues,andbusinesstravelrelatedinformation.

AnannualIngersollRandnursesmeeting

isheldinconjunctionwiththeannualESH

conferencetoallowfurtherdiscussionsand

presentations.Additionally,corporatemedical

servicesfacilitatescompliancewiththeHealth

InsurancePortabilityandAccountability

Actof1996(HIPAA)guidelinesforUS-

basednurses.Occupational Health Nursing

Guidelines for Primary Clinical Conditions3rd

EditionbyRogers,Randolph,andMastroianni

wasadoptedasstandard,evidence-based

guidelinesforallUS-basednurses.

IngersollRandnursesoffersafetyand

wellnessactivitiestoemployeesattheir

locationsthroughouttheyear.Ahealthand

wellnesscalendarhasbeendevelopedand

distributed,whichhighlightstopicsforraising

awarenessamongemployeesthroughoutthe

year.

Monthlyactivitiesofferedbyfacility

nursesin2006included:

tnessawarenessandweightreduction;

visionandhearingprograms;

heartdiseaseprevention;

immunizationawareness;

cancerawareness;

cholesterolandnutritioneducation;

highbloodpressureandstrokescreening;

diabetesprevention;and

casemanagementofclaims.

International Travel Health Programs

IngersollRandunderstandsthatemployees

travelingonbusinessmayexperiencein-

creasedrisktotheirpersonalhealthandsafety.

Forthisreasonthereisawell-coordinatedset

ofprogramsdesignedtominimizerisksand

protectourbusinesstravelers.

•

“When it comes to safety,

Bobcat is the gold

standard.”

During the 2006 Association

of Equipment Manufacturers

(AEM) Product Safety

Seminar in San Antonio,

Texas, US, members of AEM

credited Bobcat with being an

industry leader in safety. The

seminar, which was themed

“Product Safety – From Start

to Finish,” was attended

by all employees of the

Product Safety Department.

Two Bobcat employees

spoke about multicultural

communications and incident

investigation reporting. The

seminar was a great success of

industry sharing.

2 2006 Environmental, Safety, and Health Report

IngersollRandoffersapre-travelprogram

forallofitsbusinesstravelersworldwide

throughTraveler’sMedicalService(TMS).The

TMSprogramprovidesemployeescustomized

pre-travelconsultationwithaspecially

trainednursetominimizetheriskforhealth-

relatedissues.TheTMSprogrammeetsUS

OSHArecommendationsrelatedtopre-travel

medicalpreparation.IngersollRandbusiness

travelersreceiveappropriateimmunization

recommendations,prescriptionmedications,

astandardizedtravelkit,andadvicetohelp

safeguardtheirhealthduringtravel.

IngersollRandiscommittedtoprotecting

thehealthandsafetyofitsemployeesas

theytravelworldwide.Employeescanobtain

up-to-dateinformationregardingtravel

advisoriesthroughthecompany’sintranetsite.

Businesstravelersareautomaticallyenrolled

intheInternationalSOSCorporateMedical

Servicesmembershipthatprovidesintra-travel

emergencymedicalandsecurityassistance.

Thisprogramcoversbusinesstravelersfromall

globallocationswhentravelingoutsideoftheir

homecountry.

Itisessentialtoconsiderthehealth

andwell-beingofemployeesandany

accompanyingfamilymemberswhoaccepta

long-termassignmentoutsideoftheirhome

country.Alloutward-boundemployeesand

accompanyingfamilymembersarerequired

toparticipateintheExpatriateMedical

Program.Theprogramhelpsidentifyany

existingmedicalconditionsthattheemployee

orotherfamilymembersmayhaveinorder

toensurethatadequatemedicalservicesare

availableinthehostcountryandthatthe

employee’sorfamilymember’shealthwillnot

becompromisedwhileonassignment.

Safety Performance

IngersollRandtrackssafetyperformance

throughlostworkdaycaserate(LWCR)

andtotalrecordablecaserate(TRCR).The

metricscoverallNorthAmericanresearch

anddevelopment,manufacturing,warehouse

anddistribution,andservicefacilitiesowned

oroperatedbyIngersollRand.In2006,

theLWCRwas0.84andtheTRCRwas3.98

per100employees.Since2001,Ingersoll

RandhasreducedbothLWCRandTRCRby

approximately44percenteach.

Thermo King’s Galway,

Ireland, facility is making

signicant achievements

toward its goal of 1 million

hours worked without a lost

time accident by creating

a safety culture, both at

home and at work. This

innovative program launched

an ESH competition for the

families of all employees

to celebrate 250,000 hours

worked without incident.

The competition catered to

all ages and included a road

safety coloring competition,

a bicycle safety quiz, and

an ESH crossword puzzle.

Employees also received a

special edition ESH newsletter

that explained safety metrics,

behavior, and culture, and

outlined key information and

achievements.

The competition was just

one tool used by the facility

to promote a safety culture

across all levels. The plant

is also incorporating several

best practices, including

daily and weekly safety and

housekeeping walkabouts

and audits, weekly ergonomic

and noise improvements, and

weekly Safety Committee

meetings. These activities built

the foundation for OHSAS

18001 accreditation, which the

site received in 2006.

On April 4, 2006, the employees and

contractors at the Von Duprin facility

in Indianapolis, Indiana, US, reached

1 million working hours without a lost

workday incident. The facility has held

STAR certication in the US Occupational

Safety and Health Administration

(OSHA) Voluntary Protection Programs

(VPP) STAR since 2004. Managers have

developed special programs to make safety

considerations a part of everyone’s day-

to-day activities. Some of the programs

include: a safety and health auditing

program, adding safety programs and

policies to the Pathway to Excellence

system, addressing safety issues during

daily 5-star department audits, daily safety

messages for Shift Startup meetings, and

monthly newsletters with quizzes about

safety and health. These steps and others

have helped the facility achieve more than

1 million manhours without incident and

will help to continue the facility’s success.

2006 Environmental, Safety, and Health Report 2

Vehicle Safety

IngersollRandtracksthemotorvehiclesafety

ofemployeesusingcompanyvehiclesinthe

UnitedStates.Theaccidentratein2006was

14.6percent,whichisbelowtheindustry

averageof23percent.Throughtraining

andbuildingawareness,IngersollRandis

committedtoimprovingvehiclesafety.In

2006,IngersollRandsuccessfullycompleted

afullyearofDriverSafetytrainingforall

driverswithmultipleviolationsontheirmotor

vehiclerecord.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

LWCR

200620052004200320022001

Lost Workday Case Rate

North America, per 100 employees

With 1,396 employees, 200 robots, and 5 manufacturing processes, Bobcat Company’s Gwinner, North

Dakota, US, facility successfully clocked over 1 million hours without a lost-time accident in 2006. The

plant was able to achieve this goal by employing an extensive safety plan, which included the following

best safety practices and many more:

Pursuing STAR certication under the US OSHA VPP initiative

Increasing new employee orientation from 1 day to 3 days

Achieving OHSAS 18001 certication in 2006

Communicating safety metrics on weekly Supervisor Scorecards and encouraging competition in

identifying and correcting hazards in the facility

Making safety the rst topic discussed at all meetings organization-wide

Addressing safety, quality, delivery, and cost at Shift Startup meetings

Instituting a comprehensive contractor safety program and annual day-long contractor safety meeting

•

TRCR

200620052004200320022001

Total Recordable Case Rate

North America, per 100 employees

0 2006 Environmental, Safety, and Health Report

External Awards

ThelocalOccupationalDiseasePrevention

CenterrecognizedThermoKinginSuzhou,

ChinainJune2006forbeingincompliance

withallrequirementsoftheChinese

OccupationalDiseasePreventionLaw.

InMay2006,theHindleyGreen,UK,facility

wasagainpresentedwiththeInternational

SafetyAwardbytheBritishSafetyCouncil.

Theawardisgivenbasedoncontractorand

customerrecommendationstorecognize

signicanthealthandsafetyadvances.

SecurityTechnologiesinSecurity,Colorado,

US,receivedarecognitionletterfromthe

USEPA,andtheColoradoDepartmentof

PublicHealthandEnvironment,forits

promptachievementofcleanupgoalssetfor

completionin2008.

TheIndustrialTechnologiesmanufacturing

facilityinDavidson,NorthCarolina,US,

receivedtheGoldCerticateofSafety

Achievementforboth2005and2006for

itsimpressivelostworkdaycaserate.To

achievegoldstatus,theratemustbeat

least50percentbelowthestatewiderate.

ThefacilityalsoreceivedtheGoldAward

forEnvironmentalExcellencefromthe

•

Charlotte-MecklenburgUtilitiesDepartment

forachieving100percentwastewater

disposalcompliance.

TheIndustrialTechnologiesRemanufacturing

andTechnologyCenter,alsolocatedin

Davidson,NorthCarolina,US,receivedthe

GoldCerticateofSafetyAchievementin

2006.

TheAccidentCompensationCommissionof

NewZealandrecognizedallNewZealand-

basedClimateControlTechnologiesfacilities

withthetertiarylevelawardforSafety

ManagementPractices.Achievement

ofthisawarddemonstratesahighlevel

ofcompliance,followingarigorous

countrywideauditofallESHmanagement

systems.

IngersollRandPowerSourcemobile

generatorsaredesignedtooffercompact

designforperformance,simplicity,and

value.ThesixG10toG125modelsreceiveda

2006InnovativeProductAwardfromRental

Equipment Register(RER)magazine.The

awardwascreatedtorecognizeexcellence

innewproductdevelopmentfortherental

industry(seepage10formoreinformation

aboutthisproductline).

•

ESH Awards and Recognition

In 2006, Ingersoll Rand facilities have received

recognition for their ESH programs, management

systems, and results.

2006 Environmental, Safety, and Health Report 

Annual Ingersoll Rand Awards

IngersollRandhasseveraltypesofinternalawards—environmental,

safety,andhealthinnovation.Theawardsprogramencourages

innovation,continuousimprovement,andgoodmanagementbehavior

thatalignsESHwiththecompany’soverallstrategicgoals.

Theenvironmentalawardsrecognizefacilitiesthathave

demonstratedsuperiorenvironmentalperformance,continuous

environmentalimprovement,andinnovationsinenvironmental

engineeringandmanagement.Thesafetyandhealthawardsalso

emphasizeimplementingmanagementsystemsandbestpracticesthat

maintainaninjury-freeworkplace.TheawardsgoastepbeyondOSHA

guidelines,whichfocusonlyoninjuryratesandcollectdataonlywithin

theUnitedStates.

TheESHawardsprogramisopentoallnon-ofcesitesaround

theworld,includingmanufacturingfacilities,servicecenters,and

warehouse/distributionsites.Therearethreeawardscategories:

achievement,innovation,andfacilityoftheyear.Tobenominatedinthe

achievementandinnovationcategories,siteshavetodemonstratethat

theirpracticesimprovedworkplaceenvironmentalorsafetyandhealth

conditions.Onlyfacilitiesearningaccoladesinboththeachievementand

innovationcategoriescanbeplacedintherunningforthetopfacility

oftheyearaward,andinaddition,thefacilityoftheyearmustearn

externalthird-partyrecognitionforitspractices.

IngersollRandalsorecognizesourbusinessunitswithquarterly

President’sAwards.Thecategoryof“ProgressandPrinciples”typically

includesthemostESH-relatedawards.Attheendoftheyear,all

President’sAwardswinnerswillbenominatedfortheChairman’sAward.

Someofthisyear’s“ProgressandPrinciples”winnersinclude:

ThefacilityinLitcheld,Minnesota,US,whichsuccessfullyreduced

recordableinjuriesby63percentandlost-timeaccidentsby54percent

asaresultofitsSafetyContactProgram.Theprogramhighlightsa

monthlysafetytopicandprovidesa5-minuteone-on-onesafety

discussionwitheachemployee’ssupervisoraboutthattopic.

TheVonDuprinfacilityinIndianapolis,Indiana,US,whoworked1.4

millionhourswithoutalostworkdayincident.Itssafetyprogram

utilizesdailysafetymessages,monthlynewsletters,andsafetymetrics

toimprovesafetyperformance.

Thenumberofsubmissionsforinternalawardsgrewfrom19to50during

theperiod2005to2006.

•

All award winners from the Industrial Technologies sector with

sector president Jim Bolch.

All award winners from Climate Control Technologies sector with

sector ESH director Tom Wind.

All award winners from Compact Vehicle Technologies sector with

sector president Dick Pedtke.

Award winners from Security Technologies sector.

2 2006 Environmental, Safety, and Health Report

Environmental Achievement

Climate Control Technologies

Galway,Ireland

Suzhou,China

Industrial Technologies

Campbellsville,KY

Changzhou,China

Guilin,China

Nanjing,China

Oberhausen,Germany

Shanghai,China

Compact Vehicle Technologies

Gwinner,ND

Security Technologies

Security,CO

Environmental Innovation

Compact Vehicle Technologies

Gwinner,ND:Electronicwastefacilitymanagementand

tracking

Climate Control Technologies

Galway,Ireland:

Nitrogengeneratoreliminationofglassbottles

Excellentenvironmentalmanagementsystem

Environmental Facility of the Year

Compact Vehicle Technologies

Gwinner,ND

•

Safety/Health Achievement

Climate Control Technologies

Auckland,NewZealand

Bolingbrook,IL

Christchurch,NewZealand

Dunedin,NewZealand

Galway,Ireland

Kolin,CzechRepublic

Salem,NH

Industrial Technologies

Campbellsville,KY

Changzhou,China

Philadelphia,PA

Seattle,WA

Security Technologies

Indianapolis,IN

Security,CO

Safety Innovation

Compact Vehicle Technologies

Gwinner,ND:On-linecontractormanagementsystem

Augusta,GA:Heatstressmanagementprogram

Security Technologies

Indianapolis,IN:Poweredindustrialtruckusageand

recerticationsystem

•

2006 Internal Award Winners

2006 Environmental, Safety, and Health Report 

IngersollRand’scommitmentincludes

generouscontributionstocommunity

organizationssuchastheAmericanCancer

Society,EasterSeals,Goodwill,Habitatfor

Humanity,RedCross,andSpecialOlympics.

HighlightedbelowareexamplesofIngersoll

Randemployeeshelpingtheircommunities

during2006.

Thisyear,thePresident’sAwardscategory

of“ProgressandPrinciples”includedseveral

communityawards.Someofthisyear’s

“ProgressandPrinciples”winnersthatrelate

tocommunitycommitmentinclude:

TheCarmel/HillsdalesiteinIndiana,US,for

itsimpressiveeffortstoincreasecharitable

contributionstotheUnitedWayby440

percentover2005contributions.

Bobcatemployeeswererecognizedfortheir

strengthduringatimeoftragedy.Employees

raised$27,710infundsforthefamiliesof

veBobcatemployeeswhowerekilledin

caraccidents.TheBobcatCompanymatched

thesefunds.

SeventyThermoKingmanagersfromtheUS,

Mexico,andPuertoRicowhometforamid-

yearreviewthatfocusedonteambuilding,

ideageneration,abroaderunderstandingof

•

IngersollRandvalues,andthedonationof

eightbikestounderprivilegedchildren.

TheGetInvolvedVolunteerEvent(GIVE)

campaignwasrecognizedforencouraging

theparticipationof19IngersollRand

facilitiesinlocalvolunteeractivities.

Participationin2006wasup300percent

overlastyear.

Striving for Medical Advances

ManyIngersollRandemployeesvolunteer

theirtimetosupportimprovementsin

healthcare.In2006,employeesinHartford,

Connecticut,US;StLouis,Missouri,US;and

Toronto,Canada,participatedin“Raceforthe

Cure”eventstoghtbreastcancer,raisingover

$5,000tosupportbreastcancerresearch.

EmployeesinMontvale,NewJersey,

US,participatedinaMultipleSclerosisWalk

andraisedover$1,500,whichthecompany

matched.Fundsgeneratedbythewalkare

usedtondtreatmentsandacureformultiple

sclerosis.

ClubCardonatedavehicleto“CampNo

Worries,”asummercampfor6-to16-year-old

cancerpatientsandtheirsiblings.Thevehicle

isusedtotransportcamperswhosetreatment

hasaffectedtheirmobility,andensuresthat

•

“For more than 100 years,

our employees have been

serving their communities

by volunteering their time

and expertise for a variety

of worthy causes and

institutions,” says Chairman,

President and Chief Executive

Ofcer Herb Henkel. “Their

volunteer service honors this

tradition, and I’m proud to

recognize them for those

efforts. They are making a

real difference in the lives of

others.”

Community Commitment

Each year, Ingersoll Rand contributes financial donations

and volunteer time from its employees to support

communities around the world.

 2006 Environmental, Safety, and Health Report

everyoneisabletoenjoytheircamping

experience.

Tofurthersupporttheghtagainst

childhoodcancer,employeesofIngersoll

RandProductivitySolutionsinAnnandale,

NewJersey,US,contributed$12,300tothe

annualPennStateDanceMarathon.Theevent

isdedicatedtoconqueringchildhoodcancer

throughsuperiorcare,comprehensivesupport,

andinnovativeresearch.

TheRonaldMcDonaldHouseofIndiana,

aplaceforfamiliestostaywhentheirchild

isinahospitalfarfromhome,reliesheavily

ondonations.SecurityTechnologiesdonated

handicap-accessiblehardwarefordoorsat

thefacility.Thenewautomaticopenersmake

iteasierforwheelchairboundgueststo

maneuveraroundthehome.

AgroupofemployeesfromSecurity

TechnologiesinNewZealandparticipated

intheLakeTaupoCycleChallenge,raising

morethan$71,000(USdollars)fortheHeart

ChildrenNewZealand,whosemissionisto

provideandfacilitatethebestsupportand

careforchildrenwithcongenitalheartdisease

andtheirfamiliesinNewZealand.

Helping to Build Communities

IngersollRandreachesouttolocal

communitiesthroughHabitatforHumanity

bydonatinglabortohelpbuildnewhomesfor

disadvantagedfamilies.Hussmannemployees

inGloversville,NewYork,US,installedvinyl

sidingonahouseforamotherandhertwo

youngchildren.

IngersollRandhaspledgednancial

supporttotheAdaJenkinsCenter,a

communitycenterofferingavarietyof

education,health,andhumanservicestothe

NorthMecklenburgandSouthIredellareasof

NorthCarolina.Afteratwo-weeklongschool

supplydrive,IngersollRand’sDavidson,North

Carolina,US,campusdonatedtotheAda

JenkinsCenter60bookbagslledwithschool

supplies.Suppliesincludedpaper,pencils,

crayons,andglue,andrepresentjustonesmall

wayinwhichIngersollRandemployeesare

helpingpreparechildrenforthefuture.

TheNikeReuse-A-Shoeprogramcollects,

slices,andgrindsoldathleticshoestomake

sportssurfaces.Sinceitsinceptionin1993,

theprogramhasrecycledmorethan13

millionpairsofshoesanddonatedover100

athleticcourts,tracks,elds,andplayground

surfacesaroundtheworld.In2006,Security

TechnologiesemployeesinForestville,

Connecticut,US,donatedover300pairsof

sneakerstotheprogram.Eachyear,thenon-

protWeRecycle!Inc.makesacompetition

outofitamonglocalbusinesses,andIngersoll

Randemployeesdonatedthemostsneakersof

anybusinessin2006.

“Ingersoll Rand is setting

an example for corporate

community involvement,”

said Bill Johnson, executive

director of the Ada Jenkins

Center. “The company’s

support enables us to reach

many more neighbors in our

community with much-needed

programs and services, such

as emergency food assistance,

education, and medical

services. We look forward to

working with Ingersoll Rand

for many years to come.”

Left: IR Employees Race for

the Cure in St. Louis, MO.

Right: Hussmann employees

from Gloversville, NY, facility

helping local Habitat for

Humanity.

2006 Environmental, Safety, and Health Report 

TheSecurityTechnologiesfacilityin

ColoradoSprings,Colorado,US,donated

displaysofSchlagelockstoalocal

representativeofthe“RefusetobeaVictim”

crimepreventionprogram.Theprogramis

conductedin10states.

Aspartofateam-buildingactivity,70

ThermoKingsales,service,andaftermarket

managersfromtheUnitedStates,PuertoRico,

andMexicoworkedtogetherandlearned

informationaboutIngersollRandwhile

buildingnewbikesforunderprivilegedkids

fromtheCampreUSAprogram,anonprot

youthorganizationdedicatedtobuilding

caring,condentyouthandfutureleaders.

TheannualGetInvolvedVolunteer

Event(GIVE)consistsofmembersfromthe

AcceleratedDevelopment,SalesLeadership,

andSalesDevelopmentProgramsplanning,

recruiting,coordinating,andexecutinglocal

volunteereventsatnumerousIngersollRand

facilities.Examplesofvolunteereventsin

2006includeinstallingwindowswithHabitat

forHumanity,cookingamealfortheRonald

McDonaldHouse,andsettingupachildren’s

eventwithalocalfamilyshelter.

TheProductivitySolutionsteamatthe

IngersollRandEngineeringCenterinBanga-

lore,India,sponsored30orphanssotheycould

createandperforminaplayatanearbytown.

ThroughthegenerosityofIngersollRand

employees,thechildrenattendeda20-day

workshopconductedbyavolunteerartist,

whohelpedthemdesignandmaketheirown

costumes.TheIngersollRandteamplansto

assistthechildrenonanongoingbasis.

Atotalof595coatsweredonatedby

IngersollRandemployeesattheCarrollton,

Georgia,US,facility.Thecoatsweredistributed

toneedyfamiliesinthelocalcounty.

ClubCarissupportingthePGATour’s

effortstoprovidenancialaid,accessible

housing,anddirectprogramsforUS

servicemenandwomen.TheCompactVehicle

TechnologiesSectordonatedthreenew

4x4vehiclesdeckedoutincamouageand

accessoriesforuseinfundraisingefforts.

Fundsraisedweredispersedequallytothree

organizations:HomesforOurTroops,anon-

protorganizationthatadaptsorbuildsnew

homeswithaccessibilityformilitarymenand

womenreturningtotheUnitedStateswith

seriousinjuriesanddisabilities;IntrepidFallen

HeroesFund,anonprotorganizationthat

supportsthefamiliesofmilitarypersonnellost

inperformanceoftheirduty;andWounded

WarriorProject,anonprotorganizationthat

providesprogramsandservicestomeetthe

needsofwoundedservicemembersandtheir

families.

Left: Security Technology

employees from Forestville,

CT, facility contributed over

300 sneakers to Nike Reuse-

A-Shoe program.

Right: Donated Schlage

lock displays from Security

Technologies Colorado

Springs, CO, facility.

 2006 Environmental, Safety, and Health Report

Supporting United Way

ContributionstoIngersollRand’sDavidson,

NorthCarolina,US,andMontvale,New

Jersey,US,campuses’annualUnitedWay

campaignshavesteadilyincreasedeachyear

forthepastveyears.Forthersttimein

2006,theIngersollRandFoundationmatched

100percentofallemployeedonationstothe

UnitedWayandHabitatforHumanity,making

thisyearthemostsuccessfulever.Employees

committed$52,832,whichamountsto$105,664

withthematchedfunds.

EmployeesofThermoKinginHastings,

Nebraska,US,hadanunusualwaytoraise

moneyforagoodcause.Fundswerecollected

inpiggybanks,placedinthefacilitylobby,

eachwiththenameofasupervisorormanager

assignedtoit.Theplantmanagerhadthe

“winning”piggybank,andhegood-naturedly

acceptedhisprizeofbeingawardedakiss

fromarealpig.Overall,employeespledged

donationstotalingmorethan$25,000tothe

UnitedWayandCombinedHealthAgencies

Drivefor2007.

Natural Disaster Relief

Followinganaturaldisaster,IngersollRand

anditsemployeesarereadytodotheirpart.

In2006,effortscontinuedintherecoveryand

cleanupfollowingHurricaneKatrina.Bobcat

employeesfromNorthDakotatraveledto

theNewOrleansareatohelpwithrepairand

cleanupefforts.Sinceregulationslimitpickup

toroadsidedebrisonly,aBobcatwasusedto

helppropertyownerspushdebristotheroad

forpickup.

In2006,Bobcatdonatedmorethan

$66,000totheRedCrossforhurricanerelief.

Thecompanycontributed$100fromeach“gold

package”optiononBobcatmachinesshipped

betweenSeptember1andDecember31,2005.

Thetotaldonationamountedto$132,000by

theendoftheyear.Halfofthismoneywas

distributedto14Bobcatemployeeswhowere

directlyaffectedbythehurricane,andthe

remaindertotheRedCross.

Left: Empolyees from Security

Technologies in New Zealand

participate in the Lake Taupo

Cycle Challenge.

Right: Bobcat employees from

North Dakota helping clean-

up efforts after Hurricane

Katrina in New Orleans.

2006 Environmental, Safety, and Health Report C

Asdemonstratedthroughoutthisreport,we

havemanyproceduresandprogramsinplace

thatareadvancingourabilitytoattainthe

importantgoalofESHexcellence.Wewill

continuetosetandimplementESHgoals

thatimproveouroperationsandenhance

ourprospectsforgrowthandlong-term

sustainability.Thereisaclearpathforward:

IngersollRandiscommittedtoexcellencein

itsESHprograms.Wehaveademonstrated

recordofachievingimportantgoals,andwe

intendtocontinuereportingourprogress.

ESHisanimportantbusinessprioritythat

improvesthecompany’sabilitytosupport

DramaticGrowth,OperationalExcellence,

andDualCitizenship.

TopESHperformanceinvolvesthe

participationofeveryemployee.Without

•

conscientiousandconsistenteffortbyallof

IngersollRand’speople,ourESHprograms

willneverreachtheirfullpotential.

We’veinspiredprogressforoveracentury

bydrivinginnovationthroughrevolutionary

technologyandtalentedpeople.Wewill

continueourheritageofprovidingproducts

andservicesthathelpourcustomersuse

energyefciently,eliminatewasteand

reduceharmfulemissions.

Weareproudofthestrideswearemaking

tokeepouremployeessafeandtobea

goodneighborinthecommunitieswhere

weoperate.ThroughourESHpolicies,

procedures,andpractices,wedemonstrateour

commitmenteachdaytohelpingtomakethe

worldabetterplace.

•

ESH—Looking Forward

Index of Key Terms

Assessments, 16, 22

Awards, 30-32

Businesses, 3-11

Communications, 16, 20

Community commitment,

33-36

Compliance, 15, 22

Energy use, 23

Environmental expenditures,

25-26

Environmental stewardship,

22, 25-26

Ergonomics, 8-10

ESH conference, 20

ESH councils, 19

ESH goals, 13

ESH management, 16

ESH organizational structure,

16-19

ESH policy, 15

ESH professionals, 17

ESH requirements, 17

Evaluations, 16

Governance structure, 14-19

Greenhouse gas emissions, 23

Hazardous waste, 24-25

ISO 14001, 18

Locations, 3

Lost workday case rate, 29

Management systems, 18

Metrics, 25

Nonhazardous waste, 24-25

PCB, 25

Products and services, 4-11

Recycling, 24

Remediation, 25-26

Revenues, 3

Safety and health, 26-29

Sales, 3

Stakeholders, 13

Strategy, 12-14

Training, 21, 27

Vision, 12-14

Providing a safe workplace for our employees, being

a responsible neighbor in the communities in which

we operate, and protecting environmental resources is

integral to the way Ingersoll Rand conducts its business.

C 2006 Environmental, Safety, and Health Report

Ingersoll Rand is a global diversified industrial firm providing products, services and

solutions to transport and protect food and perishables, secure homes and commercial

properties, and enhance industrial productivity and efficiency. Driven by a 100-year-old

tradition of technological innovation, we enable companies and their customers to create

progress.

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