GLOBAL REACH LOCAL TOUCH

GLOBAL REACH LOCAL TOUCH 2010 Sustainability Report

About This Report

We are pleased to share our sustainability goals, highlights, statistics and case studies with you, our stakeholders, in the pages that follow. This report covers Itron’s wholly owned global operations, covering data for the years 2008 – 2010. Where applicable, we have included projects of note that launched in 2011.

Table of Contents

3 – CEO Letter 4 – Our Sustainability Goals 5 – 2010 Report Highlights 6 – Our Company 7 – Our Global Presence 8 – Meeting Demands for Energy & Water 10 – Our Innovation 11 – Frontier Project 12 – Our Solutions

Case Studies: Measuring and Tracking Standards Itron’s 2010 Sustainability Report marks the first year we are reporting on our sustainability efforts in accordance with the internationally recognized Global Reporting Initiative (GRI) G3 Guidelines. Therefore, the contents of this report reflect the required data as prescribed by the reporting guidelines, and our GRI Index can be found on page 26. This report establishes a baseline for all future reports. Each year, we will strive to improve our GRI level, which is currently a self-checked application level C. We welcome any feedback you may have on this report or on our governance practices in general. For all questions and suggestions you may reach us at [email protected].

14 – Introduction 16 – Reunion Island 17 – Houston, Texas 18 – Bolivia 19 – Mâcon, France 20 – South Africa 21 – Mumbai, India

22 – Our Environmental Footprint 24 – Workplace & Governance 25 – Philanthropy 26 – GRI Index

CEO Letter

Welcome

Itron’s commitment to sustainability is founded on a basic premise—how we all, collectively, manage energy and water will shape the next century. Like many other industries, the utility industry is confronting unprecedented changes. Rising demand for energy and water, climate change, consumer expectations for low prices, and government mandates for cleaner, greener delivery all create a challenging environment. You will read about these challenges and Itron’s approach to them in the pages that follow. As a global end-to-end solution provider for utilities, Itron is committed to helping our customers meet their sustainability needs. Our broad portfolio of products offers a way for utilities to efficiently manage resource delivery, measure consumption and empower consumers to help create a culture of conservation. Our solutions have brought water and electricity to underserved regions for the first time, and created more engaged, informed consumers by making energy and water usage data available—and actionable. As a result, we are positioning utilities to meet the demands of the future. From providing basic metering to advanced smart grid applications, Itron is determined to deliver meaningful solutions to address worldwide energy and water challenges. As our industry moves forward into a new era, Itron is building on a strong base of innovation. Our company has extensive experience in the emerging smart technologies that are essential to a sustainable future. For decades, we’ve been investing in and evolving our software and hardware products to help consumers interact with their energy use in new ways—and to provide our utility customers with a much deeper level of consumer engagement. To this end, we are collaborating with strategic partners, including Cisco, IBM, SAP and Capgemini, to name a few, to deliver end-to-end solutions that will help bring the benefits of the modernized grid to more people around the world. We’re even putting our solutions to work in our own corporate headquarters and manufacturing sites to manage our company’s energy and water use, and we intend to disclose these savings in our next report. For us, sustainability means stewardship—the wise management of our vital resources and minimizing the impact on our environment. It means educating consumers to be better informed about their resource consumption and to inspire changes in their behavior. It means ensuring that energy and water remain affordable, for utilities and commercial and residential customers alike. Sustainability is a joint responsibility. That’s why we’re offering this report. We know we have a significant part to play in addressing these issues, and we want to share what we’re doing to help create a more sustainable future. We invite our stakeholders to review this report. We hope you find it informative, and we welcome your feedback. Sincerely,

Malcolm Unsworth President & Chief Executive Officer

3/ Itron 2010 Sustainability Report

Our Sustainability Goals

Realizing Our Corporate Vision

As a company that helps its customers measure and manage energy and water resources, we believe it is important for us to do the same. Sustainability is a joint responsibility, and we want to do our part. Therefore, we are committing to the following goals:

2010 – 2011 Compile and analyze Itron’s worldwide energy and water footprint at all major facilities. Raise awareness of Itron’s sustainability initiatives and expectations among our employees.

2012 Achieve LEED® certification for corporate headquarters. All U.S. manufacturing sites are ISO 14001-certified.

2013 Reduce U.S. occupational injury/illness rates by 15%.

2014 All major worldwide manufacturing sites are ISO 14001-certified.


2010 Report Highlights Itron is actively measuring and tracking key areas of our operations in an effort to reduce our carbon footprint, cut harmful emissions and encourage good stewardship at our locations around the globe. We have implemented numerous projects over the last several years, including retrofitting high-efficiency lighting, upgrading our compressed air system, enhancing data center efficiency, and improving paper, plastic, scrap metal and packaging recycling. The metrics below represent the continuous improvement we have occurring at our facilities worldwide.

Greenhouse Gas Emissions (mt) per Meter/Module

Waste Diverted to Landfill per $1,000 Revenue

2008

2009

2010

2008

2009

2010

1.39

1.39

1.23

1.21

1.24

1.02

We began installing a 57 kW solar panel system in December at our West Union electric meter manufacturing facility in South Carolina, USA.

We have increased the amount of waste sent for recycling and the reuse of raw material packaging from suppliers.

Electricity Use (kWh) per Meter/Module

Total Gallons of Water Used per Meter/Module Sold

2008

2009

2010

2008

2009

2010

1.82

1.98

1.73

1.31

1.22

1.04

We have completed numerous facility equipment upgrades and high-efficiency-lighting retrofit projects across our sites.

5/ 5/ Itron Itron 2010 Sustainability Sustainability Report Report

We changed the coating process of our meters in our facility in Reims, France, which could save up to 3,650 m3 of water a year, a 50% reduction from the previous process.

Our Company

Building a Sustainable Future

Itron is the world’s leading end-toend solution provider to the utility industry. We serve more than 8,000 customers across 130 countries and provide the knowledge, insight and technology that enable the responsible management, delivery and use of our precious energy and water resources. At Itron, we are dedicated to supplying products and services for measuring, optimizing and analyzing utility information. We believe that continuing to address the sustainability of our operations, and those of our customers, will lead to enhanced profitability and strategic growth for our company.

MISSION At Itron, we design products and solutions that provide critical knowledge to enable the responsible management and conservation of the world’s energy and water resources. Using our innovative technologies and extensive industry experience, Itron is solving unique industry challenges in new ways with solutions that utilities around the world rely on to deliver fresh water and reliable energy to customers.

Our Values We hold ourselves to the highest standards. Our shared values guide us, inspire us and drive us to succeed every day. As individuals, we live them. As a company, we measure our success by them. Build Customer Value We listen to customers, understand

their challenges and strategies, and ensure that Itron is viewed as fundamental to their success. Instill Excellence We are unrelenting and uncompromising

in our pursuit of quality and reliability in our products, systems and services. Invest in Our Communities We invest in products, programs

and organizations that focus on sustainable resources and community development—to the benefit our customers, employees and the environment. Embrace Diversity and Teamwork We embrace employees

from different geographies, cultures and backgrounds, and with different points of view. We contribute as diverse individuals, and win as a unified team, by sharing knowledge and opinions. Increase Shareholder Value We strive to create and execute

a strategy that results in above-average shareholder returns over the long term by understanding the industry we serve and by having frequent and transparent communication with all of our stakeholders.


Our Global Presence

Our Employees Around the Globe

North America 31%

Europe, Middle East and Africa

Headquarters: Liberty Lake, Washington

(EMEA) 43%

Asia Pacific 10%

Latin America 16%

Over 9,500 employees More than 8,000 customers in 130 countries


Meeting Demands for Energy & Water

These are not just technological issues— they’re deeply human ones.


In today’s world, population growth and climate change present obstacles to managing and conserving energy and water. Across the globe, our human population is on the rise, having tripled in the 20th century. Over the next 50 years, forecasts indicate it will grow again by as much as 50%. It’s a stark reality: expanding numbers mean more people will need access to clean, reliable sources of water, and to energy sources to power their lives.

Climate change is affecting the ability of some regions to meet current energy and water demands. Rising global temperatures have brought changes in weather patterns that affect water supply. Some regions are seeing amplifications in floods, droughts, hurricanes and sea levels. With global energy-related carbon emissions projected to grow 71% by 2030, many nations and companies are seeking ways to limit their environmental impacts. The European Union has mandated overall emissions drop to at least 20% below 1990 levels by 2020. At Itron, we wrestle with these issues every day in our work across the globe. We see them in the problems our customers are addressing, and they drive our commitment to sustainability. In the face of such challenges, none of us can afford to waste water or energy. Current estimates predict that overall energy demand will grow by at least 40% by 2030. Electricity generation is itself one of the highest contributors to greenhouse gas emissions. With outdated infrastructure, a significant percentage of the energy currently passing through the grid is wasted. In the case of water, the global supply is becoming scarce. Some estimates suggest that, in the developing world, nearly half of the water in the system is lost to leaks, theft and overall poor management, or subject to contamination. In all, more than 1 billion people—one in six people on the planet—cannot access clean drinking water on a daily basis. By 2025, 1.8 billion people will live in an area where water is scarce. At Itron, we believe supply and demand aren’t just technological issues—they’re deeply human ones. Efficient and wise management of energy and water is ultimately about improving human lives. We’re committed to meeting the sustainability challenges that face our industry and the communities we serve across the world. Our metering products and datagathering solutions are designed to help local utilities respond to the issues of energy demand, water supply, climate change and aging infrastructure. Wherever our solutions have been adopted, communities are seeing real results: more efficient delivery, reduction in supply losses, and increased awareness of consumption and conservation needs.


Our Innovation

Contributing to Conservation and Education

Itron is deeply committed to optimizing the way the world uses, delivers and manages energy and water. At a time when the world’s water and energy infrastructure is aging and consumer demand is rising, Itron draws on two core strengths, innovation and collaboration, to solve real business issues for utilities around the world, and to build a sustainable future for us all.

The United States Department of Energy estimates that a grid just 5% more efficient would be equivalent to taking 5.3 million cars off the road.

Innovation Innovation can mean many things. To Itron, innovation means investing in our technology and people to preserve precious resources, and it drives everything we do. Our innovation is deeply rooted in research and development (R&D). With a focus on R&D investment, we have evolved our solutions to meet the demands of today and tomorrow. In fact, our continuous investment in R&D—more than $475 million in the last four years alone—will shape the next century of energy and water solutions. R&D in solutions such as OpenWay® will help Itron lead the industry in better resource management and operations optimization. OpenWay provides the foundation for a host of advanced data collection and analysis applications and consumer engagement programs for the modern electricity grid. As the smart grid continues to mature, Itron offers a flexible platform for the future. Our smart grid communications infrastructure, powered by Cisco, improves safety and reliability, supports greater customer choice and control, fosters renewable energy use, integrates the use of electric vehicles and solar resources, and supports community-based generation and micro-grids. Itron’s innovations bring the industry one step closer to realizing the full potential of the smart grid. In addition to our innovative technology, Itron’s worldwide staff works together to innovate across business lines and our broad product portfolio to deliver on the promise of a sustainable future. We employ some of the industry’s most knowledgeable thought leaders, and we bring our people together to transfer knowledge, share best practices, tailor our expertise to influence the direction of our technologies and help advance the industry. Collaboration

Data provided by metering technology, whether standard or smart, has empowered consumers to reduce their actual water usage by an average of 15% or more. Source: The Climate Group


The tasks of managing energy resources, improving efficiency and reducing environmental impacts require collaboration. At Itron, we unite technology and people to bring innovation to life to face our industry’s diverse and challenging issues. We do some of our best work when we collaborate with others. That is why we have more than 100 trusted partners around the globe. From network communications and distribution automation to consumer engagement and solution integration, Itron’s strategic partnerships complement our technology and enable us to offer utilities sustainable solutions. Together, we can achieve more.

Frontier Project

Where Innovation & Education Meet

Photo: Ryan Beck

We cannot achieve sustainability alone. It takes engaging all stakeholders—employees, partners, customers, investors and communities. Itron works not only with our utility customers and partners, but also within our communities to foster conservation. The Frontier Project is an example of our commitment to educating consumers about technology and its role in protecting the planet. The Frontier Project is a community-based sustainable dem onstration building designed to showcase emerging conservation technology and cutting-edge research for consumers, educators and commercial builders. This building is a “live” source for the latest information, technologies, methodologies and approaches to sustainability. When presented with the opportunity to work in partnership with the Frontier Project Foundation in 2011, Itron enthusiastically joined the team as a technology partner.


Located in Southern California, USA, the Frontier Project embodies the possibilities of sustainable approaches to energy and water conservation, green building and innovative clean technologies. The project features a 14,000-square-foot model campus in Rancho Cucamonga designed to LEED® Platinum certification. As the project’s technology sponsor, Itron will feature a resource center to inspire consumers to reduce their overall environmental impacts by learning how to monitor their water, gas and electricity usage. The project is an example of the joint role the public and private sectors have in educating the public about environmental preservation and stewardship of natural resources. For more information, visit www.frontierproject.com.

Our Solutions

Helping Customers Achieve Their Goals


Itron’s broad product portfolio provides our customers with the tools they need to become more efficient in managing and conserving valuable electricity, gas, heat and water resources to achieve their sustainability goals. Itron offers the full range of utility solutions encompassing intelligent meter data collection systems and software. From basic metering to advanced networked systems and smart grid applications, Itron delivers business solutions tailored to each utility’s business case. Regardless of utility size or location, Itron draws on its global perspective and experience to customize solutions that become the cornerstones on which to build robust conservation and consumer engagement programs. The utility industry is transforming how it manages and supplies energy and water. Itron’s solutions solve real business challenges that have a direct impact on improving their operational efficiencies and conserving resources.


Optimize Energy Use Energy utilities are facing immense challenges in ensuring the safe, reliable delivery of service to their customers. Our electricity metering and software technologies automatically detect and verify outages, making utilities more efficient and reducing revenue loss. Improve Operational Efficiencies With the help of Itron’s solutions, utilities can dra matically reduce operational costs and streamline processes. Our technology improves day-to-day functions through automation, thereby reducing associated labor-hours and costs. From efficient bill reconciliations with customers to reductions in truck rolls for missing reads, Itron’s solutions deliver the information utilities need to lower costs. Engage and Empower Consumers Itron’s solutions give utilities the opportunity to engage end users in new ways. From web presentment and access to real-time usage information and electric vehicle submetering, Itron works with our customers to help influence the energy choices of end users. Increase Service Reliability Our water and energy solutions provide utilities with tools to manage and optimize distribution systems. Remote monitoring of key performance indicators along distribution lines helps mitigate line degradation, such as natural gas and water leaks, to avoid catastrophic events. This leads to greater safety for customers, utility personnel and the community. Manage Water Responsibly With water availability a key concern in many parts of the world, utilities are striving to be as efficient as possible. Itron’s suite of system integrity tools for water management includes acoustic leak detection and analysis to help water utilities quickly locate leaks and prevent the waste of important water resources.

Customer Case Studies

Working Together to Make a Difference

Key: Optimize Energy Use Improve Operational Efficiencies Engage and Empower Consumers Increase Service Reliability Manage Water Responsibly

p. 19 As of 2010, we have cut our water consumption by 50% at our Water and Heat headquarters located in Mâcon, France.

Mâco Franc

p. 17 In 2010, CNP eliminated 300,000 truck rolls.

Houston, Texas

Bolivia

p. 18 With Itron’s technical assistance and standard metering technology, Bolivia’s state-owned petroleum and gas company, YPFB, is now making better use of its own natural resource.


p. 16 Itron’s technology allows Reunion to precisely monitor the amount of energy being produced by their renewable sources across the island.

on, ce Mumbai, India

p. 21 Mumbai meters can be read

South Africa

remotely, 24 hours a day, regardless of location or weather. Accurate billing means developing new infrastructure to deliver water to more people.

Reunion Island

p. 20 Our prepayment solutions

bring electricity to places where it wouldn’t have been possible without these systems in place.


Case Study—Reunion Island

EDF—SEI

Living on an island can be isolating; you have to make do with the resources you have. Just ask EDF-SEI, Itron’s utility customer on the French island of Reunion in the Indian Ocean. They manage Reunion’s self-contained electricity network, serving 800,000 inhabitants and 330,000 electricity consumers. On Reunion, renewable sources like wind and solar play a key role in producing energy. But these sources are unpredictable, and energy output can fluctuate by as much as 20–30% in just five minutes. Without connection to the mainland, EDF-SEI can’t take energy from neighboring countries to compensate at times of peak demand. Instead, they cap their production from renewable energy at 30% of overall production, so that the system does not become over-reliant on these inconsistent resources. Itron’s technology allows them to precisely monitor the amount of energy being produced across the island, and ensures this amount does not exceed the 30% limit overall. In the future, the same tools Itron provides for gathering production data will help EDF-SEI monitor real-time energy consumption as well—bringing them one step closer to implementing a fully functioning smart grid on the island.


Case Study—Houston, Texas

CenterPoint Energy

CenterPoint Energy (CNP), a utility in Houston, Texas, has more than 5 million residential and commercial customers living and working in its service territory. CNP came to Itron looking to maximize operational efficiency and reduce its environmental footprint. By adopting OpenWay, our smart grid solution, they’re achieving both objectives and demonstrating how Itron products can help address sustainable energy needs and give their customers more choices and control over energy usage and costs. With our solutions, CNP has been able to eliminate manual meter reading, saving time, fuel and money. They can remotely pinpoint power outages and connect or disconnect service, and offer near real-time data to customers and utility representatives. In practice, these features directly reduce environmental impacts. And with precise meter data, their customers gain awareness of actual energy uses. This gives them knowledge and greater power to make choices that will positively impact the planet.


Case Study—Bolivia

Yacimientos Petrolíferos Fiscales Bolivianos

Bolivia has rich supplies of natural gas, but the country has not historically been able to use it as their primary energy source. Due to a lack of infrastructure, Bolivia exports its natural gas and imports the more expensive liquefied petroleum gas. With Itron’s technical assistance and standard metering technology, Bolivia’s state-owned petroleum and gas company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), is now making better use of its own natural resource. The improvements in infrastructure and metering data will result in smaller energy bills for residents, thanks to a more affordable, local source of energy, and the country will retain a viable energy resource for itself.


Case Study—Mâcon, France

Itron Water & Heat Headquarters

At Itron, we’re driven to create products and solutions to help our customers better manage their water and energy usage. We’ve also deployed them in our own facilities. In 2007, our European Water & Heat headquarters, located in Mâcon, France, piloted our EverBlu® fixed network data collection system to help us measure our company’s water consumption and resulting environmental footprint. Over the past four years, data provided by our EverBlu system has allowed our personnel to quickly pinpoint leaks— whether they originate at a workshop testing bench or from a leaky tap in the facility’s restaurant. As of 2010, overall water consumption at the headquarters had been cut by more than 50% from pre-EverBlu levels. Our employees are seeing firsthand how our own products can help our company—and our planet—conserve water each and every day.


Case Study—South Africa

Prepayment Solutions for Access & Empowerment

With Itron’s prepayment solutions, utilities worldwide are providing greater access to energy to those with low incomes. Through control of their energy usage, these consumers are becoming more empowered. In South Africa, our prepayment solutions bring electricity to places where it wouldn’t have been possible without these systems in place. Residents in townships often did not have access to bank accounts or have formal addresses, meaning that the local utility was not able to bill them for purchased electricity. Now, residents have access to power through prepayment and can balance usage according to their individual needs. Utilities have also gained more reliable revenues, which has resulted in an increase in electrification projects throughout the country.


Case Study—Mumbai, India

Automatic Meter Reading & Water Preservation

In Mumbai, India’s largest city with 13 million inhabitants, managing water is no easy task. The extremely wet weather makes it difficult to read water meters and collect real data on consumption. To make matters worse, half of the city’s water meters are habitually nonfunctioning. The city’s municipal authority has stated that between 700 and 800 million liters of water are lost from the system every day—the result of an insecure distribution network, theft and leakages. So, in 2009, the city turned to Itron for help. We piloted an automatic meter reading (AMR) program in Mumbai using the AnyQuest™ solution. The results were significant in terms of water savings and data collection. The meters can be read remotely, 24 hours a day, regardless of location or weather. Consumers can then be billed fairly for the water they actually use, and the city can use the revenue to reinvest in new infrastructure to bring water to more residents who need it.


Our Environmental Footprint

We Know We Have a Responsibility to Lead by Example

Itron’s commitment to sustainability is evident in how we manage our business. We aim to engage in safe practices, provide healthy working conditions, promote accountability and responsibility among our employees, and minimize our environmental impact. We believe that maintaining a commitment to a sustainable workplace is essential for profitability and success. Currently, we have 15 facilities that are ISO 14001-certified, and two more will be by Q2 2011. This is more than half of our major manufacturing facilities worldwide, and our goal is to have the remaining sites certified by 2014. 22/ Itron 2010 Sustainability Report

ISO 14001-Certified Facilities Adelaide, Australia Argenteuil, France Asti, Italy Chasseneuil, France Famalicao, Portugal Gödöllö, Hungary Greenwood, South Carolina, USA Haguenau, France Karlsruhe, Germany Liberty Lake, Washington, USA Mâcon, France Mecoindo, Indonesia Milan, Italy Reims, France Stretford, United Kingdom Waseca, Minnesota, USA In Process (Q2 2011) Felixstowe, United Kingdom Naples, Italy

ELECTRICITY USE (KWH)

WATER USE (GALLONS)

Per Meter/Module

Manufacturing & Offices

2010

1.73

2009

1.98

2008

1.82

2010 2009

Irrigation

2010

2010

26.31

2009

33.91

2008

30.94

3,752.0

3,481.5

3,746.3

35,140,206

1.7

1.8

Nitrous Oxide

3.9

3.2

3.6

Indirect Emissions

38,346.0

36,670.0

41,575.0

Total Emissions

42,419.0

40,156.0

45,326.4

GHGs per Meter/Module Sold

1.23

1.39

1.39

GHGs per $1,000 Revenue

18.78

23.80

23.74

2010

2009

2008

42,709,901

12,983,036

2009

14,790,676

2008

16,197,420

2010

2010

573,521

3,486.0

2.0

Electricity (kWh)

2008

4,073.0 4,067.1

Natural Gas (Therms)

543,885

2008

Methane

INDIRECT ENERGY USE

2009

2009

Carbon Dioxide

DIRECT ENERGY USE

608,296

Direct Emissions

2010

35,903,219

2008

Per $1,000 Revenue

Greenhouse Gas Emissions (tons)

2009 2008

Waste Hazardous Waste—Stabilization & Incineration (lbs)

59,432,885 57,217,137 59,087,442

Major Locations Total

290,385

633,461

659,242

Per Meter/Module Sold

0.008

0.022

0.020

Per $1,000 Revenue

0.13

0.38

0.35

Hazardous Waste—Recycle & Reuse (lbs) Fuel Oil (Gallons) 2010 2009

27,911 15,457

2008

925,815

903,421

831,956


0.027

0.031

0.026

Per $1,000 Revenue

0.41

0.54

0.44

26,116

Solid Waste—Recycled & Waste to Energy (lbs)

Propane (Gallons) 2010


71,696

2009

65,624

2008

64,647

Numbers are for U.S. manufacturing sites; Mâcon, France; Karlsruhe, Germany; Felixstowe, United Kingdom; Americana, Brazil; Jakarta, Indonesia; and Cape Town, South Africa.



15,666,651 15,889,402

16,161,743


0.45

0.55

0.50

Per $1,000 Revenue

6.93

9.42

8.46

Solid Waste—Landfill & Industrial Landfill (lbs) Major Locations Total

2,304,903

2,088,369

2,302,626


0.07

0.07

0.07

Per $1,000 Revenue

1.02

1.24

1.21

Workplace & Governance

Creating a Corporate Culture of Awareness & Accountability

Board of Directors

Safety & Compliance

Itron’s commitment to sustainability and responsible corporate practice begins with our board of directors. The board is led by Chairman of the Board Jon E. Eliassen and Chief Executive Officer Malcolm Unsworth, and includes seven independent directors. The board has three committees that preside over specific business operations: Audit/Finance, Corporate Governance and Compensation. The board comprises seven males and two females.

Itron takes seriously its obligation to maintain an environment in full compliance with legal safety standards. As a result, we have a corporate Health, Safety and Environment (HSE) policy that applies to all employees and operations across the world, including wholly and majority-owned subsidiaries, as well as joint ventures for which we have management control. The policy includes provisions that Itron will: Ensure that our operations comply with all HSE laws

and regulations. Supply Chain Itron recognizes that supplier diversity is both a strategic business decision and a key component of future growth. As a result, Itron launched a formal supplier diversity program in 2010, which will be implemented throughout all Itron North American business units and locations in 2011. The program is designed to increase the incorporation of minority, women and veteran-owned small businesses into our procurement decisions. Our commitment to supplier diversity complements our core beliefs of building customer value, embracing diversity and teamwork, instilling excellence, investing in our communities and increasing shareholder value. An inclusive supplier base brings a diversity of thought, style, approach, talent and innovation to our supply chain, and helps define a smarter future.

Set meaningful and measurable goals for HSE

performance, and implement management systems that track progress toward these goals. Continuously improve our HSE performance, using

management systems and practices such as pollution prevention and efficient use of resources. Continue to pursue energy conservation and greater

utilization of alternatives to fossil fuels, whenever and wherever possible. Communicate Itron’s HSE performance and our

strong commitment to HSE responsibility to all our stakeholders.

Employee Injuries 2010

2009

2008

Number of Days Away from Work

431

512

912

Average Number of Employees

3,038

2,431

2,466

Lost Time Incident Rate

0.64

0.77

0.87

Recordable Incident Rate

3.01

3.32

3.45

Fatalities

0

0

0

Notes: The above table covers the entire U.S. workforce. It includes those paid directly by Itron, temporary hourly employees used by the manufacturing locations and contractors providing professional services. Injuries do not include minor first aid, only those requiring medical attention. Lost days are calendar days beginning on the first day following the injury when the employee cannot return to work. The rules used to calculate the rates above are dictated by the U.S. Occupational Safety and Health Administration’s (OSHA) Recordkeeping Rules.


Philanthropy

Our Commitment to Communities Around the World

Itron has a strong commitment to our communities around the world. We invest in programs and organizations that focus on sustainable resources and community development. We understand that in order to help build a sustainable future for us all, we need to work together.

We support global nonprofit organizations in areas where we can have the greatest impact on education, community development and human services. In South Africa, our communications and operations

teams assisted the P.C. Pietersen Primary School with stationery items and food parcels for their poverty-stricken rural learners in the fall of 2010. In Chile, we donated $20,000 (€16,000) for the rebuilding

of a school that was damaged by the 8.8 earthquake in February 2010. With the support of Itron and other private companies, the school reopened in July 2010. In the U.S., we sponsor science, technology, engineering

and math (STEM) programs. Our support helps offset budget shortfalls, and several Itron engineers volunteer their time as mentors for the team.

Our Investment in Communities

More than 1,200 Itron employees donated time with Economic & Community Development 13%

Arts & Culture 2%

We supported more than 210 nonprofit local and

global agencies. Education 65%

Health & Human Services 20%

charitable agencies for approximately 4,600 total hours.

Itron is proud to be a corporate sponsor of Water for

People, a nonprofit organization working to bring clean water supplies and sanitation to many parts of the world in which we work. Total funding includes $310,000 in capital campaign

donations. Itron established the Itron Employee Emergency Fund

(IEEF) as a nonprofit organization, directed and funded by Itron employees, that is making a positive difference in the lives of employees by providing assistance for unexpected emergencies that lead to financial hardship. The IEEF has been fully operational since January 2007, and has $160,000 in assets.


GRI Index Self-Checked Application Level C Profile Disclosures GRI

PG

Description

Performance Indicators GRI

PG

STRATEGY AND ANALYSIS

Environmental

1.1

Energy

3

CEO letter

Organizational Profile

Description

EN3

23

EN4

23

Direct energy consumption Indirect energy consumption

EN5

5, 23

Energy saved

EN7

4–5, 22–23

Initiatives to reduce indirect energy consumption and reductions achieved

23

Water withdrawal

2.1

Cover

Name of the organization

2.2

13 AR 1–2,18

Primary brands, products and services

2.3

AR

Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures

Water

2.4

7

Headquarters location

Emissions, Effluents & Waste

2.5

7,

Countries where Itron operates

EN16

23

Direct greenhouse gas emissions

2.6

AR 14–15

Nature of ownership and legal form

EN17

23

Indirect greenhouse gas emissions

2.7

AR 1–3, 18–20

Markets served

EN19

23

Emissions of ozone-depleting substances by weight

EN20

23

Other significant air emissions by weight

2.8

EN8

7 Scale of our operations AR 13, 16, 18

EN22

23

Waste and disposal methods

EN24

23

Hazardous waste disposal methods

2.9

N/A

Significant changes during the reporting period

Social: Labor Practices and Decent Work

2.10

N/A

Awards received

Employment

Report Parameters

LA7

Report Profile

Social: Society

24

3.1

2

Reporting period

Public Policy

3.2

N/A

Date of most recent report

SO5

3.3

2

Reporting cycle

3.4

2

Contact point for questions regarding the report

Report Scope & Boundary 3.5

2

Process for defining report content

3.6

2

Boundary of the report

3.7

23

Limitations on the scope or boundary of the report

3.8

2

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities

3.10

N/A

Explanation of the effect of any restatements of information

3.11

N/A

Changes from previous reporting periods

GRI Content Index 3.12

26

GRI Index

Governance, Commitments & Engagement 4.1

24,

Governance structure of the organization Whether the CEO is also the board chairman

4.2

24

4.3

24

Number of independent board members

4.4

2

Mechanisms for shareholders and employees to provide recommendations to the board

Stakeholder Engagement 4.14

N/A

Stakeholder engagement

4.15

N/A

Basis for identifying stakeholders


Injuries and lost days

Public policy positions and lobbying

Economic Economic Performance EC1

AR 16

Financial information

EC2

9

Risks and opportunities related to climate change

AR—Annual Report If not preceded by this mark, page numbers refer to the Sustainability Report N/A—Not Applicable —Web Link Clicking on this will take you directly to the applicable page

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