Oshkosh

RATING

SECTOR

Capital Goods

WEBSITE

CONTACT

1917 Four Wheel Drive
Oshkosh, WI 54902
United States

Tel: +1920-832-3000

STOCK EXCHANGE

LISTING

EMPLOYEES

15,400

CHIEF SUSTAINABILITY OFFICER

Kevin Tubbs

AWARDS

  • 2019 Friend of Education award by the Oshkosh Area School District’s Board of Education gave acknowledge efforts to promote STEM education

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Oshkosh

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Oshkosh is an American industrial company engaging in the design, manufacture, and market of specialty vehicles and vehicle bodies. It operates through the following segments: 

  • The Access Equipment segment consists of JerrDan and JLG, which manufactures aerial work platforms and telehandlers that are used in construction, industrial, institutional, and general maintenance applications. These platforms allow workers and materials to reach elevated heights.
  • The Defense segment produces tactical wheeled vehicles, and supplies parts and services for the United States military and other militaries around the world. Oshkosh Defense’s vehicles are designed and built to sustain high performance and include the L-ATV for the JLTV program.
  • The Fire and Emergency segment sells commercial and custom fire vehicles, simulators, and emergency vehicles primarily for fire departments, airports and other governmental units, This segment also sells broadcast vehicles for broadcasters and television stations.
  • The Commercial segment includes McNeilus, CON-E-CO, London, Iowa Mold Tooling Co., Inc (IMT), and Oshkosh Commercial.

The company was founded in 1917 and is headquartered in Oshkosh, WI.

Company Sustainability Activity

Oshkosh is committed to sustainable development, and has set specific targets and goals through the publishing of regular sustainability reports, to improve their social commitment and minimize their environmental footprint.

Oshkosh measures its success through their ability to improve lives, empower people, and build communities. They claim that, for over 100 years, they have been ‘designing and manufacturing some of the industry’s toughest specialty trucks and access equipment with an intent to help build, serve, and protect people and communities around the world‘. 

Highlights

  • Offer CO2 -neutral mobility over the next 20 years
  • Decouple resource consumption from growth in business volumes
  • Provide mobility and traffic management solutions that make cities more livable
  • Implement measures that increase safety on the road
  • Continue to utilize data responsibly
  • Assume responsibility for respecting human rights along the entire value chain

Targets

  • 10% improvement in Truckload Utilization by 2022
  • 90% of waste diverted from landfills by 2025
  • 25% reduction in normalized energy consumption by 2025 (2014 baseline year)
  • 10% decrease in Recordable Incident Rate (RIR) from FY19 rate of 2.68
  • 10% decrease in Lost Time Incident Rate (LTIR) from FY19 rate of 0.48
  • Goal of 100% Tier 1 supplier compliance with the Oshkosh Conflict Minerals Policy 
  • Goal of 100% supplier compliance with the Oshkosh Conflict Minerals Policy

Greenhouse gas emissions 

  • 25% overall reduction in GHG emissions intensity from 2014 to 2024 

Energy 

  • 25% reduction in energy intensity from 2014 to 2024

Waste 

  • 5% year-over-year reduction of non-hazardous waste normalized by net sales

Progress

Sustainable products 

  • Development of hybrid and electric technologies: 
    • In 2019, Oshkosh introduced a new zero emissions, battery-powered class 8 chassis, which they are initially demonstrating as a Cobalt concrete mixer. 
    • JLG also introduced a range of three fully-electric construction booms. These emissions-free innovations are not only good for the environment, they also avoid the noise and smell associated with diesel, helping the customers that use their products meet increasingly strict construction regulations in urban areas. They are also pursuing more traditional design improvements, like reducing vehicle weight and improving the efficiency of their equipment to help decrease conventional fuel usage. 
  • In 2019, Oshkosh released an award-winning, reduced-weight S-Series front-discharge concrete mixer truck that allows for an increased payload and greater overall efficiency. 
  • Additionally, Oshkosh is focused on reducing the environmental impact of their materials through remanufacturing and the use of biodegradable hydraulic fluids and engine oil in their products. See page 37 for more on their materials-related efforts.

Waste reduction

  • Oshkosh works to continuously improve their environmental performance, including how they measure that performance. They have set a goal to reduce non-hazardous waste to landfill by 5% year-over-year normalized by net sales. To reach this goal, they are focused on remanufacturing and expanding the use of reusable packaging for their products, while also encouraging reuse and recycling programs within their facilities. 
  • In 2019, Oshkosh began to calculate the percentage of their waste diverted from landfill. This metric measures non-hazardous waste that could go to landfill but is diverted to direct reuse, beneficial reuse, composting, recycling or waste to energy. In 2019, they diverted 79.6% of their non-hazardous waste from landfill. 
  • In 2019, two Oshkosh Defense facilities achieved a silver-level TRUE Zero Waste certification. The TRUE Zero certification, which is validated by an external auditor, uses a point-based rating system that covers categories like employee training, reuse and composting. 
  • Their reusable packaging efforts also helped these facilities reduce plastic waste during the shipping process. Through team member engagement and implementing best-practice zero waste practices, facilities are now able to divert more than 90% of waste from the landfill

Energy and emissions 

  • Oshkosh is one of about 220 companies partnering with the Department of Energy in their Better Plants program, an industry partnership to improve energy efficiency in manufacturing facilities. As part of that program, they set a goal to reduce their energy intensity by 25% by 2024 at their U.S. operations, based on a 2014 baseline. They have since expanded this goal to include their international facilities. As of the end of 2019, Oshkosh reduced their energy intensity by 18%, compared to 2014
  • Across these categories, their Scope 3 emissions totaled 182,390 metric tons of CO2 emissions in 2019
  • Oshkosh is also working to reduce volatile organic compounds (VOC) emissions from their operations. They comply with all VOC regulations and operate well within their permit limits for VOCs and other air emissions. 
  • Oshkosh produces a variety of vehicles categorized by the U.S. EPA as “vocational trucks,” including concrete mixers, their range of airport products, and fire trucks. As part of their CO2e emissions regulations and reduction program, the EPA offers greenhouse gas credits to vocational vehicle manufacturers for vehicles that outperform emissions efficiency requirements. They design their vehicles with emissions-reducing features like low rolling resistance tires, and fuel-efficient engines. As a result, Oshkosh vehicles consistently release CO2e emissions at levels well below EPA standards. They have banked nearly 60,000 metric tons in CO2 credits through the EPA program since the 2014 model year. That’s equivalent to the total yearly energy consumption from over 6,000 homes. 
  • They also pursue green transport methods when possible. For example, their JLG facility in Romania reduced CO2e emissions by about 300 metric tons in 2019 through combined rail and sea shipping methods, rather than road transport. 
  • 60,000 Megagrams (metric tons) in GHG credits earned as of July 2019

Reusing and remanufacturing equipment 

  • Reconditioning and remanufacturing products benefit both the planet and Oshkosh’s customers. Reuse allows them to reduce energy, water and raw materials used in manufacturing and delay or eliminate the landfilling of materials at the end of the product life cycle. They’re able to pass these efficiency savings onto their customers, reducing their costs. Their reconditioned vehicles pass the same high standards of quality, safety and efficiency as their new products. Typically, remanufacturing includes vehicle and body upgrades, safety and performance feature additions and quality checks to ensure like-new operation. 
  • Oshkosh Defense has been a leader in remanufacturing vehicles for over two decades. They reuse between 90 and 180 parts from each vehicle depending on the variant, including most of the largest parts like cargo beds, axles and cranes. In addition, they reuse frame rails, cargo boxes, axles, LHS systems, transfer cases and wheel rims. The vast majority of parts that they cannot directly reuse are recycled. Since 1995, Oshkosh Defense has remanufactured more than 15,500 vehicles for the U.S armed forces, including over 12,500 Heavy Expanded Mobility Tactical Trucks (HEMTTs) and 3,000 Palletized Load System (PLS) trucks. In February of 2019, they were awarded a contract by the U.S. Army to recapitalize over 400 HEMTTs and PLS trucks, some of which have been in service since 1981. They are also reconditioning Access Equipment back to new factory condition. Their technicians follow strict guidelines and use genuine JLG parts to restore boom lifts and telehandlers. 
  • They have implemented a range of product and process changes to facilitate remanufacturing, including: 
    • Designing access equipment using modular architectures, which can more easily be disassembled, updated and reassembled 
    • Launching an asset management program for access products, to help establish a more predictable flow of used equipment 
    • Pioneering warranty, service and financing processes for refurbished vehicles to expand their appeal to their customers

Energy Efficiency 

  • Oshkosh’s Pierce facilities in Wisconsin often partner with Focus on Energy (FOE), a statewide program managed by power utilities, to reduce energy consumption. Starting in 2018, Pierce received financial incentives through FOE to implement ten energy efficiency projects at their Wisconsin plant. These include sub-metering large equipment to determine energy use and regularly checking for and repairing leaks in air compressors.

Water Usage

  •  All of Oshkosh’s manufacturing facilities discharge wastewater to local publicly owned treatment works (POTWs), or transport the wastewater to off-site treatment facilities in accordance with existing permits. No manufacturing locations within Oshkosh discharge process or sanitary wastewater directly to a receiving body such as a river or stream. Oshkosh is in compliance with all permits.
  • Most of the water discharged by their manufacturing locations is sanitary wastewater from restroom facilities. Virtually all of their facilities are required to meet national, state, or local wastewater standards before discharge. Most are able to do so without any pre-treatment. A limited number of their facilities are required to meet U.S. EPA pre-treatment standards, which they accomplish using common wastewater treatment methods such as precipitation and flocculation. There were no material pre-treatment standard violations or penalties at any Oshkosh facility in 2019.

Supply chain sustainability 

  • Oshkosh works with a range of suppliers around the world. With over 75% of their product content sourced from outside the company, their suppliers are important partners in their sustainability strategy.
  • Oshkosh expects that their suppliers meet the highest standards of ethical conduct, human rights, safety, quality and environmental sustainability as outlined in their Supplier Code of Conduct. Part of this Code requires their suppliers to provide goods and services in an environmentally conscientious manner that minimizes any adverse impact on the environment.
  • Their Global Procurement and Supply Chain team works with suppliers to regularly audit and improve performance on a range of issues. In 2019, they made several key improvements to their supplier audit process. First, they revised their Supplier Quality audit to meet the internationally recognized ISO 9001 and the IATF 16949: 2016 standards.
  • They also added several new process-specific audits that allow them to focus on how suppliers are performing against Oshkosh’s quality standards.
  • In addition, they expanded the scope of the environment, social and governance (ESG) section of their Supplier Operations Assessment (SOA) to gain a fuller understanding of their suppliers’ policies on environmental impact, forced labor, cyber security and import trade compliance. 

Conflict Minerals

  • Monitoring Conflict Minerals in their Supply Chain Conflict minerals in their supply chain is an issue Oshkosh takes seriously. They are aware that the activities of armed groups in the Democratic Republic of the Congo and adjoining countries are financed by proceeds raised from some tin, tungsten, tantalum, and gold mining or smelting operations, frequently referred to as “3TG” or “conflict minerals.” Oshkosh’s conflict mineral policy requires first-tier suppliers to adhere to the following policy: 
    • Make reasonable inquiries about the country of origin of any 3TG in products it delivers to Oshkosh, whether sourced directly or through a sub-supplier. 
    • Conduct due diligence to confirm whether these 3TG were sourced from a conflict-free source. 
    • Disclose findings of these inquiries and due diligence to Oshkosh. they have set a goal to extend this policy requirement beyond Tier 1 to 100% of their suppliers. they have set a goal to get 100% of their suppliers to comply with the Oshkosh Conflict Minerals Policy.

Green Transport 

  • Logistics makes up a significant portion of the overall environmental impact of their supply chain. To address this, they have specific green transport goals. They set a goal of 10% improvement in truckload utilization by 2022 and are working to establish an accurate baseline for comparison. 
  • They are a member of the U.S. EPA SmartWay program, which helps companies measure and benchmark freight transportation efficiency. They set a goal to maintain or exceed 95% of their transport miles with SmartWay-participating carriers that are working to reduce their environmental footprint. In 2018—the most recent data available—they accrued about 1.4 million miles worth of their supply chain transport. About 97% of those miles were run by SmartWay carriers, exceeding their goal and maintaining their rate from the previous year.

Ethics Training And Reporting 

  • In 2019, they added a “TRUST” extension number to provide an easy-to-remember number to access the hotline at multiple U.S. facilities.
  • In 2019, they received 154 reports to their helpline of potential violations of The Oshkosh Way, equivalent to approximately 12 reports per 1,000 team members. Each report is investigated and evaluated for appropriate corrective action, which ranges from additional training to termination of employment. Team members are reassured that Oshkosh Corporation has a strong policy protecting anyone who reports an issue in good faith from any form of retaliation.
 

Certificates

  • ISO 14001
  • ISO 9001 – all their manufacturing facilities completed the upgrade to the latest version  
  • Energy Star – EPA Pollution Preventer
  • SMS Level 4 – 7 U.S. facilities and 4 of their international facilities 
  • OSHA VPP certification – 7 U.S. facilities 
  • 4 of their international facilities have achieved SMS Level 4 and OHSAS 18001 certification (now been replaced with ISO45001:2018).
  • 11 Oshkosh facilities have achieved, or are in the process of achieving, SMS Level 4 safety certification.
  • 2 Oshkosh Defense facilities achieved a silver-level TRUE Zero Waste certification.

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 2

  • Hunger and malnutrition are barriers keeping individuals from improving their lives and meeting their full potential. That’s why Oshkosh has made ending hunger a core focus of their philanthropic activities

SDG 3

  • Oshkosh is relentlessly focused on safety, both for their team members and the people that use their products. 
  • They offer wellbeing programs to promote the holistic health of their team members, both on and off the job.

SDG 4

  • Empowering people to do things they never thought possible is core to who Oshkosh is and what they do. One way they do this is by supporting education and workforce development in the communities where they operate.
  • They offer scholarships for their team members’ children.

SDG 5 

  • Promoting an inclusive workplace with equal opportunities for all is part of their belief in doing what’s right. This philosophy is reflected in The Oshkosh Way, their code of ethics and conduct as well as their People First culture.

SDG 8 

  • Oshkosh provides good jobs that support economic development in the places where they operate. 
  • They apply their commitment to protecting human rights and decent working conditions around the world and expect the same of their suppliers.

SDG 9 

  • Delivering innovative and reliable products that support those who rely on them to build and support the world’s infrastructure is core to what Oshkosh does. 
  • They work to make their operations and products more environmentally-friendly and more resource-efficient

SDG 12 

  • They apply responsible consumption and production practices by minimizing energy use, reducing waste and recommissioning and remanufacturing of their vehicles. 
  • They reward team members who innovate on environmental responsibility through their annual Oshkosh Excellence Awards.

Evaluation

Oshkosh sets specific targets and provides solid metrics to support their progress. The company has good certificates, and some notable awards and listings, including some pertaining to sustainability. 

The company produces a comprehensive report with specific targets and goals for energy consumption, reducing CO2 emissions, waste, renewable energy, human rights, and responsible consumption that are in alignment with the UN Sustainable Development Goals.

As a vehicle manufacturer, carbon emissions tend to be an innate consequence of the company’s business model. Their main products are off road vehicles, which carry a significant environmental footprint. However, the company is truly showing that they are working hard to offset their impact effectively.

This company has been rated a B. 

Analyst Outlook: Neutral

Oshkosh has shown strong leadership to proactively incorporate sustainable practices into their organization. The company should align with additional UN SDGs as best they can, continue garnering high accolades in CSR, and continue working toward offsetting their environmental footprint as much as possible.

Key Points

  • Oshkosh Corporation has successfully decreased their greenhouse gas intensity by 7.6% and greenhouse gas emission by 18% since 2014. 
  • The company succeeded in reducing energy intensity in manufacturing operations before the end of 2019 by 23.3%.
  • Oshkosh is a participant of the DOE’s Better Plants program and has also implemented initiatives to decrease the emissions associated with their vocational trucks through features like low rolling resistance tires and fuel-efficient engines. 
  • Since 2014, the company has banked nearly 60,000 metric tons in CO2 credits through the EPA for its vehicle emissions performance.
  • The Oshkosh Corporation is the target of a federal class-action lawsuit by those enrolled in its pension plan. Former employees at Pierce Manufacturing claim the company has failed to monitor the investment advisers handling the retirement plan–allowing them to charge excessive fees. As many as 15-thousand retirees may be eligible to join that lawsuit. No court dates have been scheduled yet.
  • ATV impacts include noise disturbance, damage to vegetation, increased runoff, soil erosion, and degradation of water quality. Wildlife also suffers from all of these impacts.
  • Oshkosh’s sustainability report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards.
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