Performance with Purpose2018 ESGREPORT

Contents

STRATEGY IN ACTION 9

OUR GOVERNANCE 17

SustainabilityGovernance 18

Governance,EthicsandRiskManagement 18

CustomerSatisfaction 19

PublicPolicyAdvocacyandCompliance 19

EnvironmentalHealthandSafety(EHS)Compliance 20

2018AwardsandRankings 22

MembershipsandPartnerships 23

Charters 24

OUR REPORT AND DATA 25

AboutourReporting 25

ProgressTowards2020SustainabilityTargets 26

SustainableDevelopmentGoals 29

ENVIRONMENTAL SUSTAINABILITY 32

OurPlanet 32

ClimateChange 33

GreenhouseGasEmissions,PollutantEmissionsandRefrigerants 34

Energy 36

EnergyEfficientandLowEmissionsProducts 38

ProductLifeCycle 38

Materials 39

Water 39

Waste 40

SOCIAL SUSTAINABILITY 41

OurPeopleandCitizenship 41

OurEmployees 42

HumanRights 43

CompanyCulture 43

DiversityandInclusion 44

TrainingandDevelopment 45

Anti-Harassment 47

OccupationalHealthandSafety 47

CorporateCitizenship 48

SupplierDiversity 50

BUSINESS SUSTAINABILITY 51

OurProducts 51

SupplyChainTransparencyandPerformance 52

TechnologyandInnovation 54

ProductReliabilityandSafety 55

SocialImpactofourProducts 55

GRI CONTENT INDEX 56

2018 ESG REPORT 2

Performance with PurposeWe’recommittedtoachievingtop-tierfinancialperformancebyhelpingcustomersimplementsustainability,efficiencyandproductivitysolutionsinbuildings,transportationandindustrialprocesses.Butthat’sonlypartofourgreaterpurposeandresponsibility.Wesethighstandardsforourselvesasaleadingcorporatecitizen,workingtoreduceourimpactontheenvironment,fosteradiverseandinclusiveworkplace,expandaccesstovitalresourcesandimprovethecommunitieswhereweliveandwork.Bythinkingbiggerandactingbolder,we’redeliveringonanewvisionofperformance–Performance with Purpose.

IngersollRand(NYSE:IR)createscomfortable,sustainableandefficientenvironmentsthatadvancethequalityoflifeacrosstheglobe.

Weheat,coolandautomatehomesandbuildings;enhancecommercialandindustrialproductivity;keeptransportedfoodandperishablessafeandfresh;anddeliverfun,efficientandreliabletransportationsolutions.Diversity,engagementandteamworkdriveinnovationandimaginativesolutions,andfuelourpassionforexceedingcustomerexpectations.Ourexperiencedleadershipteam,ethicalbusinesspracticesandhigh-performance,winningculturedeliverenduringresultsthatleadtoasustainableworld.

2018 ESG REPORT 3

ClubCarleadstheindustryindeliveringfun,efficientandreliablepersonaltransportationsolutionsforconsumer,golf,commercial,institutionalandresortuses.

Ourproductportfolioincludesconsumervehicles;connectedgolfcarswithanin-carcourseentertainmentsystem;turfandcommercialutilityvehicles;multi-passengershuttlevehicles;rough-terrainutilityvehicles;andadigitalfleetmanagementsystemforcourseownersandresortoperators.

IngersollRandenhancesoperationalefficiency,savesenergyandimprovesproductivitythroughinnovativeequipment,productsandservices.

Ourindustrialequipment,productsandservicesrangefromcompletecompressedairandgassystemsandservicestopowertools,fluidmanagementandmaterialhandlingsystems.

ThermoKingenhancesthequalityoflifethroughtemperature-managementsolutionsinglobaltransportationtopreservefreshfoods,pharmaceuticalsandothertemperature-sensitiveproducts.

Wemanufacturetransporttemperature-controlsystemsforavarietyofmobileapplications,includingtrailers,trucks,buses,shipboardcontainersandrailwaycars.

Traneensureshomeownersandcommercialbuildingownersmaximizethecomfortandenergy-efficiencypotentialoftheirhomeorfacility.

Wesafelyandefficientlyoptimizeresidential,commercialandindustrialfacilitieswithabroadportfolioofheating,ventilationandairconditioning(HVAC)systems,connectedbuildingandenergyservices,partssupportandadvancedbuildingautomationcontrols.

OPERATIONAL EXCELLENCEWe pursue continuous process improvement that drives growth, creates value, fosters employee engagement, and enhances reliability, quality and the customer experience.

WINNING CULTURE We engage our employees and develop a workforce with diverse backgrounds and skills to foster an environment of innovation and integrity that leads to better solutions for our customers and for society.

GROWTH EXCELLENCEWe use customer insights and analytics to make strategic choices about the businesses and markets where we invest, and on the development of innovative, energy-efficient and reliable products and services that deliver on customer needs.

Global Market-leading Brands

Our people and family of brands – including Club Car,® Ingersoll Rand,® Thermo King® and Trane® – work together to create value for customers in homes and buildings, transportation and industrial processes, allowing them to be environmentally responsible and productive at the same time.

OurStrategyforCreatingLong-TermValue

4 2018 ESG REPORT

Ourstrategyislinkedtoattractiveendmarketssupportedbyglobalmegatrends–climatechange,urbanization,resourcescarcityanddigitalconnectedness.Astheworldbecomeswarmerandcitiesmorepopulated,accesstosafefoodandcleanwaterisatrisk.Weareatthenexusofenvironmentalsustainabilityandimpact,excellingatenhancingtheenergyefficiencyofbuildings,transportationandindustrialprocesses,loweringgreenhousegas(GHG)emissions,reducingfoodwasteandgeneratingproductivityforcustomers.

Ourbusinessportfoliocreatesaplatformtoconsistentlygrowaboveaverageglobaleconomicconditions.Itisanchoredbyabusinessoperatingsystemdesignedtogeneratestrongtop-linegrowth,expandoperatingmargins,andgeneratepowerfulcashflow,andourbalancedanddynamiccapitalallocationstrategyenablesustoconsistentlydeploycapitalwhereitearnsthebestreturns.Ourexperiencedmanagementteam,highlyengagedworkforceandwinningculturemakeourperformancesustainable.Theresultisadifferentiatedbusinessmodelthatdrivesstrongshareholderreturns.

FINANCIAL PERFORMANCEOurfocusandconsistentexecutionresultedinanotheryearofrobustfinancialperformance.WedeliveredtopquartileadjustedcontinuingEPS growth of 24%;*recordorganic bookings*andrevenue growth at 13% and 9%respectively;significantadjustedoperatingmarginexpansion*of60basispoints;andhealthyfreecashflow.

Despitesignificantchallengesfrompersistentinflationandtariffs,weappliedourbusinessoperatingsystemtoexecuteacombinationofpricingactionsandoperationalexcellenceinitiativestooffsetthesecostseffectively,drivingimprovedleverageandmarginexpansionthroughouttheyear.

Atthesametime,wecontinuedtobuildastronger,moreresilientcompanythroughrobust,high-returninvestmentsinproductandserviceinnovation,andsawservicesgrowthofover10%.Wefurtherdeliveredonourcommitmenttodynamiccapitalallocationwithastrongandgrowingdividend,sharerepurchases,andstrategictechnologyandchannelacquisitionsaimedatfurtherimprovinglong-termshareholderreturns.In2018,wereturned nearly $1.4 billion to shareholders,consistingof$480millionindividendsand$900millioninsharerepurchases.Weraisedthequarterlydividendby18%duringtheyearto$0.53pershare,exiting2018at$2.12annualizedpershare.Ourtotalshareholderreturnof63%overthepastfiveyearsexceedstheS&P500IndustrialsIndexbynearlydouble.

STRATEGIC GROWTH AND INNOVATION INVESTMENTSWearealwaysevaluatingopportunitieswherewecanextendourleadershipinsolvingenvironmentalandindustrialchallengesthroughstrategicacquisitions.Duringtheyear,weacquiredICSCoolEnergy,arentalequipmentproviderofhigh-performancetemperaturecontrolsystemsandservices,whichisastrongfitwithourHVACbusinessandexpandsoursalesandservicechannelinkeyWesternEuropeanmarkets.

WealsoenteredajointventurewithMitsubishiElectricthatincludesmarketing,salesanddistributionsupportofductlessandvariablerefrigerantflowheatingandairconditioningintheU.S.andselectLatinAmericancountries.Theductlessmarketisexpectedtogrowrapidlyincomingyears.Thisventurehelpstoensurewehavetherightproductfortherightapplicationstomeettheneedsofourcustomers.

Throughtheongoingworkofourproductgrowthteams,welaunched more than 90 major new products and servicesin2018,strengtheningourdigitalandservicesexpertise,andcontinuingtodemonstrateourcommitmenttobeingenvironmentallyresponsibleandproductiveatthesametime.

DearShareholder,

In 2018, we continued along our path of premier performance, delivering on the global business strategy that has defined Ingersoll Rand over the past decade, underpinning our financial results and creating lasting value for our people, customers and shareholders.

Letter to Shareholders

2018 ESG REPORT 5

Forexample,weintroducedseveralnewinnovationstoourEcoWise™portfolio–productsdesignedtolowerenvironmentalimpactwithnextgeneration,lowglobalwarmingpotential(GWP)refrigerantsandhigh-efficiencyoperation.Affirmingourincreasinginvestmentinthisportfolio,customersseeEcoWiseasagame-changingsolutionthatprovidesmoresustainableproductchoicesandenablesthemtoachievetheirownsustainabilitygoals.

Inaddition,globalservicesgrowthremainedstrongin2018.Thisreflectsourongoingfocusonexpandingourrecurringrevenuestreamsthroughbuildingmanagementandremotemonitoring,fleetmonitoring,HVACandcompressorequipmentservicingandotherinitiatives.Thesecapabilitieshelpensureweremainclosetoourcustomersthroughthelifeoftheirbuilding,transportationandindustrialassets.

Asacompanyontheforefrontofsustainability,weapplyourowninnovationtomakeourbusinessmoresustainable.Aspartofourclimatecommitment,in2014wecommittedtoa35% reduction in our GHG footprintfromourownoperationsby2020.Weachievedthegoaltwoyearsaheadofschedule,applyingthesameenergysavingstrategiesweoffertoourcustomers.

WINNING CULTURE Overtheyears,we’vebuiltanexperiencedmanagementteamandawinningculturethatmakesourperformancesustainableandthecompanyagreatplacetowork.Ourmorethan44,000**peopleworldwidearetheenginethatmakeourachievementspossible.Werespectandvaluediversecultures,backgroundsandperspectives,andunderstandourpeoplemustfeelconnectedandempoweredtoconsistentlyachievepremierperformance.Ourannualemployeeengagementscoresremainattop-tierlevelsinourindustry.

Twoyearsago,wewerethefirstinourindustrytoentertheParadigm for ParityandCEO Action for Diversity & Inclusiontobringgenderparityandcultivatediversityandinclusionintheworkplace.In2018,weimplementednewprogramsandpracticesdesignedtoeliminateunconsciousbiasesintheworkplace.AlearningexperiencecalledCourageousInclusionreachedthetopthreelevelsofmanagementin2018,andtheremainderwillcompletetheprogrambyJuneofthisyear.

Wealsocontinuedtoaccelerateoureffortsthroughdifferentiatedinvestmentsintraininganddevelopment.OurWomen’sLeadershipProgram(WLP),aimedatadvancingourhighlytalentedwomenleaders,hasgraduated140womensinceitsinceptionin2012.ThesuccessofWLPhasledtothelaunchoftwonewcareerdevelopmentprogramsforwomenthatwillbeginthisyear.Weincreasedthenumberofwomeninleadershiprolesin2018andexpecttoacceleratethatprogressthisyear.Inaddition,nearly900individualsfromacrosstheglobehavegraduatedfromourTeamLeaderDevelopmentProgram,whichprovidesproductionassociateswithoperationalexcellenceandleadershipskillstogrowintomanufacturingsupervisorsandbeyond.

PERFORMANCE WITH PURPOSEOur2018performanceunderscoresthelong-termstrengthandearningspowerofourbusinessmodel.Bycontinuallyreinvestinginourbusiness,wehavebuiltadifferentiatedcompanywithdeepdomainexpertiseandsustainableproductsandservicesthatkeepusontheforefrontofaddressingglobalchallengesandenhancingqualityoflife.

Sustainabilityismorethansomethingwedo;it’severythingwedo.Sustainabilityisembeddedintoourbrandpromiseandourcorestrategiesofgrowthexcellence,operationalexcellence,winningcultureanddynamiccapitalallocation.Itistheenablingforcebehindusgrowingfasterthantheglobaleconomyanditdifferentiatesourbusinessmodel,allowingustodrivestrongshareholderreturnsoverthelongterm.

Asaglobalcompany,weknowthatsustainabilityfuelsourbroaderaim:toperforminawaythatcreateslastingvalueforourstakeholdersandhasapositiveinfluenceontheworld.Inshort,performance with purpose.

Sincerely,

Michael W. Lamach|CHAIRMANANDCEO

Sustainabilityismorethansomethingwedo;it’s everything we do.

**Number of employees, excluding contractors

6 2018 ESG REPORT

Bookings & Revenue Growth Billions

Adjusted EarningsPer Share Growth

Total Net Revenue(Billions)

$13.5$13.3

3%

5%4%

6%

13%

9%

5%

3%

$14.2

12%

.4% .7% .1% .6%

10.7%9.2%

24.4%

2018 Revenue by Geography

2016 2017 2018

20162015 2017 2018 20162015 2017 2018 20162015 2017 2018 20162015 2017 2018

Adjusted OperatingMargins Expansion

*These are non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found preceding the 2019 Notice and Proxy Statement.

LATINAMERICA

4%

ASIAPACIFIC

13%

24%* 13%*

Organic Revenue Growth

Adjusted Operating Margin Expansion

5-year Average Free Cash Flow Conversion

60bps*

2018 Financial Performance

Dynamic Capital Deployment in Millions

2 018 Revenue by Segment

2 018 Revenue by Geography

TOTAL:$15.7BILLION

$480 $900 $285

DIVIDENDS SHARE REPURCHASE ACQUISITIONS CAPEX

EUROPE,MIDDLEEAST&AFRICA

15%

INDUSTRIAL

21%NORTH

AMERICA

68%CLIMATE

79%

$366

INGERSOLLRAND

S&P500

S&PINDUSTRIALS

3%

5%

4%

6%

13%

9%

5%

3%

20162015 2017 2018

Organic Bookings & Revenue Growth*

BOOKINGSGROWTH

REVENUEGROWTH

9%* 102%*

Adjusted Continuing EPS Growth

Organic Bookings Growth

12.1%

Shareholder Return over the past 5 years

201620152014 2017 2018

Adjusted Earnings Per Share*

CAGROF13.9%

$3.33

$3.73

$4.13

$4.51

$5.61

201620152014 2017 2018

Adjusted Operating Margin Expansion*

1.8PTSOFMARGINEXPANSION

201620152014 2017 2018

63%

50%

33%

12.2%

12.8%

11.4%

11.0%

2018 ESG REPORT 7

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES

TheTCFDwasestablishedbytheFinancialStabilityBoardtoimprovedisclosureofclimate-relatedrisksandopportunities.OurreportingprovidesinformationrelevanttoeachofthefourTCFDrecommendations.

Readaboutourclimategovernance,strategy,riskmanagement,metricsandtargetsinour2018ESGReport.

GOVERNANCE

BOARDDIVERSITY:

5 of 12 directors joined in past 5 years

4 of 12 directors or 33% are women

SOCIAL

WOMENINTHEWORKFORCE:

10,321 or 23.1% of 44,664** total employees globally

21.7% of leadership positions held by women

$253M global spend with women-owned businesses, which reflects a 23% increase over prior year

30,492 hours volunteered by our employees, equivalent to $752,847

8,500 women and girls in the U.S. and India experiencing STEM edu-cation

ENVIRONMENTAL

238,281metric tons CO2e,

or 31%, total reduction in GHG emissions associated with operations over the past five years

TOTALSCOPE1AND2EMISSIONSIN2018:

536,785 metric tons CO2e

ABSOLUTEENERGYUSEIN2018(DIRECTANDINDIRECT):

3,594 billion kilojoules (kJ)

38% total reduction in water use in water-stressed regions since 2013

23% total energy efficiency increase over the past five years

HIGHLY REGARDED ESG PERFORMANCE

8th Consecutive Year 4th Consecutive Year 6th Consecutive Year Inaugural Year

Environmental, Social and Governance DataThesehighlightsreflecttheenvironmental,socialandgovernance(ESG)practicesthathavehelpedussuccessfullyembedsustainabilitythroughoutourbusiness.Sustainabilityisfoundationaltoourstrategy,integratedintotheproductswedevelop,theopportunitieswepursueandthewayweoperateasacompany.WeareexceptionallyproudoftheglobalrecognitionofourESGperformanceoverthepasteightyearsandthelong-termvaluewearecreatingforourstakeholders.

**Number of employees, excluding contractors

8 2018 ESG REPORT

Strategy in ActionDevelopingInnovative,Customer-DrivenSolutions

Withastrategycenteredonsustainability,wehaveanimportantroletoplayinmitigatingglobalclimatechange.Ourportfolioaddressesdemandsforgreaterenergyefficiencywithlowergreenhousegasemissionsinbuildings,homes,industrialspacesandtransportmarketsaroundtheworld.Fromourcompressorstoairconditioningsystemswithnext-generationrefrigerantstoourrapidlygrowingservicesandcontrolsofferings,weenablecustomerstoanticipateandreducetheirenergyneeds,identifywaste,optimizeperformanceandachievetheirbusinessandsustainabilitygoals.

CHILLING THE CHUNNEL Weevenhelpourcustomersachievesustainabilityunderthesea.Withoutround-the-clockcoolinginsidetheChannelTunnelor“Chunnel,”theworld’slargestunderseatunnel,theheatgeneratedbythehigh-speedtrainswoulddriveindoortemperaturesabove95°F(35°C).

WithfourSeriesECenTraVaclarge-capacitychillersfromTrane,thetunnel’soperator,Eurotunnel,achieveditscoolingneedswith33% energy savingsinthefirstseasonofoperations.That’sequivalenttosavingenoughelectricitytorun1,000households.

ThesechillersarepartofourEcoWiseportfolioofproductsdesignedtolowerenvironmentalimpactwithnext-generation,low-GWPrefrigerantsandhigh-efficiencyoperation.TheyhavebeensuccessfullyusedinvariousapplicationsacrossEuropeandtheworld,helpingourcustomersachieveoperationalsavingsandloweringtheirenvironmentalfootprintwithoutcompromisingsafety,reliabilityorperformance.

2018 ESG REPORT 9

90new products and services launched

$228.7million spent on research and development

STAYING COOL – AND ENERGY EFFICIENT – ON THE ROADTransportingfrozenfoodandotherperishableproductsfromcoasttocoastrequiressafeandreliableequipment.SowhenInfinityTransportationLogistics(ITL)wantedtoincreaseitsdomesticrefrigeratedcontainer(DRC)fleet,thecompanyacquired200ofThermoKing’snew53-footSLXi-DRCunits.MorethandoublingthesizeofitsDRCcapacity,theacquisitionhelpedITLmeetitsgrowthforecastsandachieveitssustainabilitygoals.

TheSLXi-DRC’sslimlinedesignalsoprovidedITLwithanextrapalletrowofcargospace,whichequatestocargohaulingcapacityofupto44,000pounds.ThermoKing’snewtrailerunits,partofourEcoWiseproductportfolio,reduceenvironmentalimpactbyloweringGHGemissionswhilemaintainingorimprovingperformance,coolingcapacity,pull-downandfuelefficiency.

Toensurebothcontainerandcargoremainsafe,theunitsincludeThermoKing’sTracKing®telematics.Bykeepingtrackofpreventivemaintenancescheduling,containertemperaturefluctuationsandotheroperationaldata,TracKingprovidesvaluableinsightsthatenablecustomerstooptimizetheirassetsandminimizedowntime.

MILLING TOWELS BY THE MILLIONSCompressedairisconsideredthe“fourthutility,”andisthemostusedresourcealongwithelectricity,waterandgas.For1888Mills,thelargesttowelmakerintheU.S.,clean,efficientcompressedairisessentialtotheweavingprocessthathelpsproduce176,000poundsoftowelseachweek.

Afterenduringproductiondowntimeasaresultofcompressedairinefficiencies,1888Millsupgradeditsantiquatedaircompressorswithnewenergy-savingequipmentandservicesfromIngersollRand.Takingasystemapproach,IngersollRandalsorecommendedinstallationofaluminumpipingtoincreaseefficiencyanddistributeairevenlythroughoutthefacility.

Withthenewequipmentandmaintenanceservices,1888Millsreceivedanunexpectedrebatefromitsenergyproviderandacostreductionthatsavedthetextilemanufacturermorethan$80,000ayearinenergycosts.Originallyjustlookingforawaytomaximizeuptime,1888Millsultimatelyfoundasustainablesolution.

10 2018 ESG REPORT

HARNESSING RENEWABLE ENERGY InvestinginrenewableenergyisthenextstepinourGlobalClimateCommitmentandenvironmentalsustainabilityjourney.In2018,weinitiatedandcommissionedon-sitesolarinstallationsatthreelargemanufacturingsitesintheU.S.andChina.Theinstallationsaddress15%oftheenergyloadattheselocations,theequivalentofsaving560,000gallonsofgasolineortaking1,000carsofftheroad.

Wecomplementedthisinvestmentinoff-siterenewableenergysourcesbysigningapowerpurchaseagreement(PPA)withawindfarminBaylorCounty,Texas.ThePPAenablesustoreplace32%ofourU.S.electricityusewithgreenenergyandtoreduceU.S.Scope2GHGEmissionsfromElectricityby32%.Thatisequivalenttorecycling26,000tonsofwasteinsteadofsendingittoalandfill,ortopreserving600acresofU.S.forestlandannually.

CREATING A SUSTAINABLE SUPPLY CHAIN Oursuppliersadheretoourrigorousenvironmentalandsocialsustainabilitystandards.OurPreferredSupplierProgramgivesfirstchoiceforearlyengagementtosupplierswhosestandardsbestalignwithourhighexpectations,helpingtocultivateasustainableandinnovativesupplychainthatmeetscustomerneeds.

OurSupplierDiversityProgramincreasescompetitiveness,enhancescapacityandbroadensmarketconnectivity.Sincetheinceptionoftheprogramin2012,wehavepurchasedmorethan$2.1billionfromminority,women,veteran,LGBTanddisabled-ownedbusinesses.Ratherthanconcentratingonpriceastheprimaryfactorinselectingsuppliers,theprogramusesaseven-stepstrategicsourcingprocessthatconsidersarangeoffactorsincludingsupplierdiversity,qualityandrisk.

Aspartofour2016commitmenttoWEConnectInternational,wespent$253milliongloballywithwomen-ownedbusinessesin2018,a23%increaseovertheprioryear.Theseinclusivesourcinginitiativesunderscoreourcommitmenttostimulateeconomicgrowthandjobcreation,bothofwhicharefundamentaltoasustainablefuture.

Strategy in ActionEnsuringSustainableOperationsandSupplyChainManagement

Weareguidedbyasetofstandardbusinesstoolsandstrategiesthatdefinenotonlywhatwedo,buthowwedoit.Thishelpstoensureweapplythemosteffectivestrategiestoeliminatewaste,improveefficiencyandenhanceagilityinexecution.Thiscommitmenttooperationalexcellenceisreflectedinthesustainabilitystandardswesetforourselvesandforthoseweworkwith,includingoursuppliers.AlongwithworkingtoreduceGHGemissionsatourfacilitiesaroundtheworld,wealsoapplyaregion-of-usephilosophythatlocalizesmanufacturingandthesupplychaintohelpusincreasespeedtomarketandimplementlocalproductpreferences.Thisinturncultivatesasustainable,innovativesupplychainthatfostersdiversity,minimizesenvironmentalimpactandmeetscustomerneeds.

4.56 billion kJ reduction in energy consumption achieved in 2018 as a direct result of conservation and energy efficiency initiatives; 9% reduction in energy intensity

$448 million in purchased goods and services from diverse-owned businesses in 2018, a 9% increase over 2017

$

90% of new direct material suppliers screened based on social and environmental criteria

23% increase in spend with women-owned businesses in 2018

$

2018 ESG REPORT 11

ADVANCING WOMEN LEADERS Weachievelong-termsuccessbyattractingandretainingtop-quality,womenleadersandcreatinganenvironmentthatallowspeopletoreachtheirfullpotential.Development,informallearningexperiencesandformalleadershipprogramsareintegraltothisprocess.

OurWomen’sLeadershipProgram(WLP)isanexperientialleadershipdevelopmentprogramthatincludesavarietyofresources,toolsandlearningopportunitiesspecificallydesignedtoprovidehigh-performing,talentedwomenacrossthecompanywiththedevelopmentandmentorshipopportunitiesnecessarytogrowtheircareersatthecompany.

Inthesixyearssinceitsinception,theWLPhasgraduatedmorethan140womenfromsevencohortsaroundtheworld.Ourfocusonattractingandretaininganincreasingnumberofwomeninleadershipandprofessionalrolesisconsistentwithourmanyyearsofworktobuildacultureofinclusionthatisrespectfulatitscore.

PRACTICING SOCIAL RESPONSIBILITY IN CHINA

Ourcommitmenttosocialresponsibilitytranscendsregionalbordersandbusinessrelationships.In2017,inresponsetoChina’sincreasinglyacuteagingproblem,welaunched“YingAiYiNian,”aSeniorCareProgramthatleveragesourresources,technologyadvantagesandemployeestrengthstocreatepersonalinteractionandcompanionshipbetweenyoungerandoldergenerationswhileimprovingthequalityoflifeandhappinessfortheelderly.

Aspartofthisinitiative,inJune2018,IngersollRandChinaheld“CarefortheElderlywithLove,”aninteractivewalkingeventthatbroughttogethermorethan500IngersollRandChinaemployeesandtheirfamilies,elderlynursinghomeresidentsandotherparticipants.BecausetheSeniorCareProgramisperfectlyalignedwithoursustainabilityvalues,weexpecttocontinuetodriveinnovationandhealthydevelopmentofChina’selderly-carepractice.

InspiringProgressThroughPeopleandCitizenship

Premierperformancemeansmorethandeliveringonourbusinessandfinancialcommitments.Itmeanscaringgenuinelyabouttheneedsofouremployeesandcommunitiesfortodayandtomorrow.Bylivingourvaluesofintegrity,respect,teamwork,innovationandcouragewefosteraprogressive,diverseandinclusiveworkplace,andengageourworldwideteaminthemissionandpurposeofthecompany.Byinvestinginouremployees,wepromotetheirlearning,developmentandwell-beingandcreateastrongfoundationtoproducesustainableresults.WepracticecorporatecitizenshipinthecommunitieswhereweliveandworkthroughinitiativesfocusedonScience,Technology,EngineeringandMath(STEM)education;climateandenergy;housingandshelter;andfoodandnutritionforchildrenandfamilies.

38%of employees globally participated in community or sustainability initiatives

$6.7 million in philanthropic giving

98%of salaried employees had professional development conversations

12 2018 ESG REPORT

INTRODUCTION Theinformationbelow,aswellasthepoliciesandrelatedcontentelsewhereinthisreport,isintendedtohelpyouunderstandtheperformanceandimpactofIngersollRandthroughtheenvironmental,social,humanrightsandbusinesspracticesweworktouphold.

TheEuropeanUnion(DisclosureofNon-FinancialandDiversityInformationbycertainlargeundertakingsandgroups)Regulations2017(S.I.360/2017)(asamended)(the“2017 Regulations”)requireustodisclosecertainnon-financialinformationintheDirectors’Report(the“Irish Directors’ Report”)accompanyingourIrishstatutoryfinancialstatements.Forthepurposesofthe2017Regulations,thesectionsentitledDescriptionofBusinessModel,EnvironmentalMatters,EmployeeMatters,SocialMatters,HumanRights,andAnti-CorruptionandAnti-BriberysetoutbelowareincorporatedbyreferenceintotheIrishDirectors’Report.

Ourintegrated2018AnnualReportand2018ESGReportprovideadditionalinformationthatmayberelevanttoinvestorsinassessingIngersollRand’ssustainabilitycommitmentsandachievementsbut,exceptasexpresslyprovidedabove,theintegrated2018AnnualReportand2018ESGReportarenotincorporatedbyreferenceintotheIrishDirectors’Report.Copiesofthis2018AnnualReportandour2018ESGReportcanbeaccessedatwww.ingersollrand.com.

DESCRIPTION OF BUSINESS MODEL Weareadiversified,globalcompanythatprovidesproducts,servicesandsolutionstoenhancethequality,energyefficiencyandcomfortofairinhomesandbuildings,transportandprotectfoodandperishablesandincreaseindustrialproductivityandefficiency.

Ourtwobusinesssegments,ClimateandIndustrial,featurestrongbrandsandhighlydifferentiatedproductswithintheirrespectivemarkets.Wegeneraterevenueandcashprimarilythroughthedesign,manufacture,saleandserviceofadiverseportfolioofindustrialandcommercialproductsthatincludewell-recognized,premiumbrandnamessuchasIngersollRand,Trane,ThermoKing,AmericanStandard,®ARO,®andClubCar.

Toachieveourmissionofbeingaworldleaderincreatingcomfortable,sustainableandefficientenvironments,wecontinuetofocusongrowthbyincreasingourrecurringrevenuestreamfromparts,service,controls,usedequipmentandrentals;andtocontinuouslyimprovetheefficienciesandcapabilitiesoftheproductsandservicesofourbusinesses.Wealsocontinuetofocusonoperationalexcellencestrategiesasacentralthemetoimprovingourearningsandcashflow.

ENVIRONMENTAL MATTERSApproachOurcommitmenttosustainabilityextendstotheenvironmentalimpactsofourpeople,operations,andproductsandservices.Fromtheefficiencyofourbuildingstoourprogressinmanagingenergy,waterandwaste,wecontinuetofindwaystoreduceourimpactontheenvironmentandembedsustainabilitythroughoutourbusinesses.Weproactivelyengagewithkeyexternalandinternalstakeholderstoidentifythemostmaterialsustainability-relatedmattersandmetricsforoperationsstrategyaswellaspublicdisclosure.Wealsothinkaboutthestakeholdergroupsmostimpactedbythesematerialtopicsthroughthelensofavaluechainassessmentthatweperform.ThesecommitmentsareembeddedinanEnvironment,HealthandSafety(“EHS”)Policywhichdefinesourstakeholders,ourrolesandresponsibilitiesandourgoalsandtargetswithrespecttoEHSmattersandour

BusinessPartnerCodeofConductwhichrequiresourbusinesspartnerstoadheretoourstandards.

Due diligence processesWehaveavitalroletoplayinmitigatingglobalclimatechangebyreducingtheenvironmentalimpactofouroperations,productsandservices.Thisresponsibilitybeginsbysettingspecificandmeasurableclimatecommitmentsandworkingtoachievethesegoals.Inaddition,weworktosystematicallyensurethatoursuppliersshareourvaluesandadheretoourstandardsofbusinessethics,healthandsafety,environmentalandsocialresponsibilityasspecifiedinourBusinessPartnerCodeofConduct.Suppliersmusthaveaneffectiveenvironmentalpolicyandconducttheiroperationsinawaythatprotectstheenvironment.Theymustalsoobtainandkeepcurrentallrequiredenvironmentalpermitsandmeetallapplicableenvironmentalrules,regulationsandlawsinthecountrieswheretheydobusiness.

Policy outcomes / Key Performance Indicators OurglobalClimateCommitmentisthefoundationofoureffortstoincreaseenergyefficiencyandreducethegreenhousegasemissionsrelatedtoouroperationsandproducts.In2010,IngersollRandlaunchedtheCenterforEnergyEfficiencyandSustainability(CEES)tohelpourcustomersandourcompanyleveragebestpracticesinsustainability.WithinIngersollRand,theCEESisastrategicbusinesscatalystthathelpsusunderstandthebenefitsthatsustainabilitycanhaveingrowingourcompanyandreducingourownoperationalfootprint,whilehelpingincreasethepaceofsustainableinnovation.

Ourenergyconsumptionfromfuelsandelectricitytotaled3,594billionkilojoulesin2018.Greenhousegasesemittedindirectlythroughtheuseofelectricity,anddirectly,throughtheburningoffuelsoremissionsofrefrigerants,totaled536,785metrictonsofCO

2e.

• Absolute energy consumption in 2018 – 3,406,174 million Btu (equivalent to 998,000 MWh; 3,594 billion kilojoules)

• Absolute Scope 1 and 2 emissions in 2018 – 536,785 metric tons CO

2e in 2018

EMPLOYEE MATTERS ApproachAsaglobalorganizationthatemploys49,000people,wearecommittedtobuildingaprogressive,diverseandinclusiveenvironmentinwhichpeopleofallbackgroundsaretreatedwithequalityandrespect.Wealsoaimtoprovideasafe,secureworkplacethatsupportsemployeewell-beingandproductivity.Investinginourassociatesandcreatingaculturewheretheyfeelengagedandincludediskeytounleashingthepoweroftheirinnovationandcreativity,andtodeliveringtheenduringresultsthatcreateasustainableworld.WeformalizetheseaspirationsinourEnvironment,HealthandSafetyPolicywhichaddressesemployeehealthandsafetyamongothermatters.Weprovideannualanti-harassmenttrainingtoallsalariedemployeesworldwideandwesetpoliciesinkeyemployeeareas,includingourGlobalHumanRightsPolicy,ourU.S.EqualEmploymentOpportunityPolicy,andourPolicyProhibitingHarassmentorDiscrimination,whicharemadeavailabletoIngersollRandemployeesworldwide.

Due diligence processes Toreinforceourcommitmenttocultivateadiverseandinclusiveworkplace,wewerethefirstcompanyinourindustrytoentertheParadigmforParityCoalition,apledgetobringgenderparitytoourcorporateleadershipstructureby2030.Wealsoprovideanti-harassmenttrainingtoallsalariedemployeesandmakeclearpoliciesavailabletoemployeesworldwide.Inaddition,creatingandsustainingasafety-focused,zero-incidentcultureisapriorityforus.WecommunicateoursafetyexpectationsthroughquarterlyCEOtownhallmeetingsaswellasmonthlyenvironmental,healthandsafetymeetingsatboththefacilityandservice-organizationlevels.

Non-Financial Statements EuropeanUnionDirective

2018 ESG REPORT 13

Policy outcomes / Key Performance IndicatorsConsistentlyhighannualemployeeengagementscoresdemonstratethatwearecreatinganenvironmentwhereourpeoplearelearning,thrivingandexpandingtheircapabilities.Weofferarangeoflearningexperiencesformanagersandemployeestoexpandourcultureofinclusion.Forexample,ourWomen’sLeadershipProgramhelpsacceleratecareeradvancementforhigh-potentialwomen.OurBridgingConnectionssessionscreateanopportunityforemployeestospeakopenlyabouttopicssuchasrace,gender,ethnicityandsexualorientation,andaddressissuesrelatedtounconsciousbias.Inaddition,ourgrowingnumberofemployeeresourcegroupsserveasafoundationtodiscussthesetopicsatadeeperlevelandtoengageinthelearningandtrainingcriticaltobuildingastrongerIngersollRand.• 23.1% of total workforce are women • 21.7% of leadership positions are held by women• 93% participation rate in annual employee engagement survey • Employee engagement score in top quartile of all companies

SOCIAL MATTERS ApproachThroughavarietyofsocialsustainabilityinitiatives,weseektoengagedirectlywiththecommunitiesinwhichourassociatesliveandwork,whichhelpstocreatesharedvalueandengageourworldwideteaminthemissionandpurposeofthecompany.Ourcommitmenttosocialsustainabilityisalsoexpressedthroughoursupplierdiversityprogram.

OurmostprominentcommunityinitiativesincludetheIngersollRandGlocal(global+local)program.Launchedin2014byourCenterforEnergyEfficiencyandSustainability(CEES),Glocalencouragesouremployeestopartnerwithlocalnonprofitsandcommunityorganizationstoadvanceoursocialsustainabilityeffortsandnurtureauthenticengagement.Wehaveidentifiedandaretakingactionregardingspecificsocialandenvironmentalimperativesthatcreatesharedvalue,resultinsustainedcustomerandemployeeloyalty,andimprovethecommunitieswherewehavebusinessoperations.Theseactionsincludeincreasingfemalerepresentationinthefieldsofscience,technology,engineeringandmath,addressingnutritionandfoodwastereductionandsupportinghousingandshelterneeds,amongothers.Oursupplierdiversityprogramembracessupplierswhoseownershipisprimarilyminorities,women,veterans,LGBTQindividualsorpeoplewithdisabilities.

Due diligence processes Wetrackemployeeandcommunityengagementdataincludingthenumberofvolunteerswhoparticipateincommunityorsustainabilityinitiativesduringtheyearandthenumberofhoursvolunteered.Weusea7-stepstrategicsourcingprocessthatincludesaSupplierDiversityMatrix,whichenablesustoavoidusingpriceastheprimarydriverforsupplierselection.

Policy outcomes / Key Performance IndicatorsImplementingGlocalandoursupplierdiversityprogramhavecontributedtosignificantincreasesinglobalcontributionsasmeasuredbythenumberofassociateswhohavevolunteeredtoparticipateincommunityorsustainabilityinitiatives,thetotalnumberofhoursvolunteeredandthedollarvalueofphilanthropicgiving.Spendingongoodsandservicespurchasedfromdiverse-ownedbusinessesalsoisupsignificantly.• $448 million in purchased goods and services from

diverse-owned businesses in 2018• $6.7 million in philanthropic giving• 38% of employees globally participated in community

or sustainability initiatives

HUMAN RIGHTS Approach Webelieveinfundamentalstandardsthatsupportourcommitmenttoouremployees,ourbusinesspartners,ourcustomersandourcommunities.Wehaveadoptedanumberofpolicieswhichunderlineourcommitmenttohumanrights.OurGlobalHumanRightsPolicyalignswithbasicworkingconditionsandhumanrightsconceptsadvancedbyinternationalorganizationssuchastheInternationalLaborOrganizationandtheUnitedNations.OurModernSlaveryandHumanTraffickingStatementoutlinesourcommitmenttotakingstepstoensurethathumantraffickingandforcedlaborisnottakingplaceinoursupplychainorbusiness.OurBusinessPartnerCodeofConduct(BPCoC)prohibitshumantrafficking,includingforcedorchildlabor.

Due diligence processes Weengageinreasonableduediligenceandscreeningofcustomersanddistributorstoensurecompliancewithlawsthatregulateinternationaltrade.Weannuallysurveyasamplingfromthetop80%ofdirectmaterialsupplierstoconfirmtheiradherencetoourBPCoC.Aspartofthatsurvey,weasksupplierstocertifythattheyandthematerialsincorporatedintotheproductstheysellcomplywiththelawsregardingslaveryandhumantraffickingofthecountryorcountriesinwhichtheyaredoingbusiness.

Policy outcomes OurGlobalHumanRightsPolicyiscommunicatedtoemployeesthroughourCodeofConducttraining.Aspartofourannualcompliancetraining,wehaveimplementedafulltrainingcoursededicatedtoanti-humantrafficking.Salariedemployeesinroles,suchasLegal,HumanResourcesandGlobalIntegratedSupplyChainareassignedcoursesbasedonfunctionandassociatedrisks. ANTI-CORRUPTION AND ANTI-BRIBERY ApproachWeareproudofourstrongbusinessethicsandsustainablebusinesspractices,andourvaluescenteredinintegrity,respect,teamwork,innovationandcourage.Ourvalues,ethicsandcommitmenttosustainabilityarecoretohowweoperateandservecustomers.

IngersollRand’sBusinessPartnerCodeofConductappliestoallentitiesdoingbusinesswithusandcommunicatesourexpectationsthatourbusinesspartnerswillpracticethehighestlegal,moral,andethicalstandardswhenconductingouraffairs.ThisCodeholdsourbusinesspartnerstothesamehighstandardstowhichweholdourselves.

Due diligence processes Businesspartnersandserviceprovidersarerisk-ratedandvettedwithhigherriskthirdpartiesundergoingenhancedcomplianceduediligence.Weleveragetheservicesofathird-partyvendortoconductcompliancescreeningsfromthousandsofglobalpublicrecordsdatabases.

Policy outcomes Salariedemployeesreceiverole-based,onlinecompliancetrainingeveryyear.Employeesreceivespecifictrainingonanti-corruptiononacycledeterminedbytheriskratingoftheirrole.In2018,therolesassignedtoanti-corruptiontrainingwereBusinessStrategy;CustomerService;Finance;GeneralManagement;GlobalIntegratedSupplyChain;HumanResources;Legal;Marketing;andSales.Inadditiontotheseroles,in2019,employeesinservicesroles,willreceiveanti-corruptiontraining.Additionally,wedeliverperiodicliveandweb-basedanti-corruptiontrainingtoemployees.

14 2018 ESG REPORT

Kirk E. ArnoldFormerChiefExecutiveOfficer,DataIntensity

Ann C. BerzinFormerChairmanandChiefExecutiveOfficer,FinancialGuarantyInsuranceCompany

John BrutonFormerEUCommissionHeadofDelegationtotheUnitedStatesandFormerPrimeMinisterofIreland

Jared L. Cohon, Ph.D. PresidentEmeritusofCarnegieMellonUniversity

Gary D. Forsee RetiredChairmanandChiefExecutiveOfficer,SprintNextelCorporationandFormerPresidentoftheUniversityofMissouriSystem

Linda P. Hudson Founder,ChairmanandCEOofTheCardeaGroupandFormerPresidentandCEOofBAESystems,Inc.

Michael W. Lamach ChairmanandChiefExecutiveOfficerofIngersollRand

Myles P. LeeFormerChiefExecutiveOfficerandExecutiveDirectorofCRHplc

Karen B. Peetz FormerPresident,BNYMellon

John P. Surma RetiredChairmanandChiefExecutiveOfficer,UnitedStatesSteelCorporation

Richard J. Swift RetiredChairman,PresidentandChiefExecutiveOfficer,FosterWheelerLtd.andFormerChairmanofFinancialAccountingStandardsAdvisoryCouncil

Tony L. WhiteRetiredChairman,PresidentandChiefExecutiveOfficer,AppliedBiosystemsInc.

Michael W. Lamach ChairmanandChiefExecutiveOfficer

Marcia J. Avedon, Ph.D. SeniorVicePresident,HumanResources,CommunicationsandCorporateAffairs

Jason E. Bingham President,ResidentialHVACandSupply

Maria F. Blase President,FluidManagement,MaterialHandlingandPowerTools

Paul A. CamutiSeniorVicePresident,InnovationandChiefTechnologyOfficer

Susan K. Carter SeniorVicePresidentandChiefFinancialOfficer

Karin De Bondt President,HVACandTransport,LatinAmerica

Allen W. Ge President,HVACandTransportSolutions,AsiaPacificandIndia

Maria C. GreenSeniorVicePresident

M. Stephen Hagood SeniorVicePresidentandChiefInformationOfficer

Raymond D. Pittard President,TransportSolutions,NorthAmericaandEMEA

David S. Regnery ExecutiveVicePresident,ClimateandIndustrialSegments

Donald E. Simmons President,CommercialHVAC,NorthAmericaandEMEA

Keith A. Sultana SeniorVicePresident,GlobalOperationsandIntegratedSupplyChain

Evan M. Turtz, SeniorVicePresidentandGeneralCounsel

Mark C. Wagner President,ClubCar

Todd D. WymanSeniorVicePresidentandPresident,CompressionTechnologiesandServices

Richard E. DaudelinVicePresident,Treasury

Christopher J. Kuehn VicePresidentandChiefAccountingOfficer

Lawrence R. Kurland VicePresident,Tax

Zachary A. Nagle VicePresident,InvestorRelations

Leadership and GovernanceDIRECTORS ENTERPRISE LEADERSHIP TEAM

OTHER SENIOR LEADERS

From Left to Right:JasonE.Bingham,PresidentResidentialHVAC&Supply;AllenW.Ge,President,HVACandTransportSolutions,AsiaPacificandIndia;KarinDeBondt,President,HVACandTransport,LatinAmerica;MarkC.Wagner,President,ClubCar;ToddD.Wyman,SeniorVicePresidentandPresident,CompressionTechnologiesandServices;PaulA.Camuti,SeniorVicePresident,InnovationandChiefTechnologyOfficer;MarciaJ.Avedon,SeniorVicePresident,HumanResources,CommunicationsandCorporateAffairs;MichaelW.Lamach,ChairmanandChiefExecutiveOfficer;M.StephenHagood,SeniorVicePresidentandChiefInformationOfficer;SusanK.Carter,SeniorVicePresidentandChiefFinancialOfficer;KeithA.Sultana,SeniorVicePresident,GlobalOperationsandIntegratedSupplyChain;DonaldE.Simmons,President,CommercialHVAC,NorthAmericaandEMEA;MariaC.Green,SeniorVicePresident;DavidS.Regnery,ExecutiveVicePresident,ClimateandIndustrialSegments,RaymondD.Pittard,President,TransportSolutions,NorthAmericaandEMEA;MariaF.Blase,President,FluidManagement,MaterialHandingandPowerTools

2018 ESG REPORT 15

Annual General Meeting

Thecompany’s2018AnnualReportonForm10-KasfiledwiththeUnitedStatesSecuritiesandExchangeCommission,andothercompanyinformation,isavailablethroughIngersollRand’swebsite,www.ingersollrand.com.Securitiesanalysts,portfoliomanagersandrepresentativesofinstitutionalinvestorsseekinginformationaboutthecompanyshouldcontact:

ShaneLawrenceDirector,InvestorRelations704-655-5651

Annual General Meeting

June6,2019,2:30p.m.AdareManorHotelAdare,Co.LimerickIreland

New York Stock Exchange

Transfer Agent and Registrar

ComputershareTelephoneInquiries:866-229-8405Website:www.computershare.com/Investor

Address shareholder inquiries with standard priority: ComputersharePOBOX505000Louisville,KY40233-5000

Address shareholder inquiries with overnight priority: Computershare462South4thStreetSuite1600Louisville,KY40202

Thisintegratedannualreportandthe2018onlineESGReportatwww.ingersollrand.com/sustainabilitysupplementisproducedinaccordancewiththeG4frameworkestablishedbytheGlobalReportingInitiative(GRI)andreportsonourfinancialandnon-financialperformanceforthe2018fiscalyear.FormoreinformationonGRI,pleasevisitwww.globalreporting.org.Toensurethequalityofourenvironmental,healthandsafetydata,weassureselecteddatawithathird-partyprovider.Theresultsofthisassurancecanbefoundinour2018ESGReportatwww.ingersollrand.com/sustainabilitysupplement.Atthetimeofpublication,assuranceofourenvironmentalandsafetydatafromoperationswasnotyetcompleteandthedatapresentedinthisdocumentissubjecttochange.Thisannualreport,includingthelettertoshareholders,contains“forward-lookingstatements,”whicharestatementsthatarenothistoricalfacts,includingourabilitytoaddressenvironmentalandsocialchallenges,thefuturesuccessofouroperationalexcellenceinitiatives,ourfuturefinancialperformance,ourgrowth,marketopportunitiesandourpositioninginandtheperformanceofthemarketsinwhichweoperate.Thesestatementsarebasedoncurrentlyavailableinformationandourcurrentassumptions,expectationsandprojectionsaboutfutureevents.Whilewebelievethatourassumptions,expectationsandprojectionsarereasonableinviewofthecurrentlyavailableinformation,youarecautionednottoplaceunduedependenceonourforward-lookingstatements.Forward-lookingstatementsspeakonlyasofthedatetheyaremadeandarenotguaranteesoffutureperformance.Theyaresubjecttofutureevents,risksanduncertainties—manyofwhicharebeyondourcontrol—aswellaspotentiallyinaccurateassumptionsthatcouldcauseactualresultstodiffermateriallyfromourexpectationsandprojections.Youareadvisedtoreviewthefactorsdescribedunderthecaptions“RiskFactors”and“Management’sDiscussionandAnalysisofFinancialConditionsandResultsofOperations”inourForm10-KforthefiscalyearendedDecember31,2018,andanyfurtherdisclosureswemakeonrelatedsubjectsinmaterialswefilewithorfurnishtotheSEC.Wedonotundertakeanyobligationtoupdateanyforward-lookingstatements.

A world of sustainable progress and enduring results.

INTEGRITY We act with the highest ethical and legal standards in everything we do.

RESPECT We respect and value the worth of all people, cultures, viewpoints and backgrounds.

TEAMWORKWe work together and share resources to provide greater value to our customers, employees, business partners and shareholders.

INNOVATIONWe use our diverse skills, talents and ideas to develop customer-driven, innovative and imaginative solutions.

COURAGEWe speak up for what we believe is right and take measured risks to create progress.

FPOFSCLOGO

CORPORATE DATA

VISIO

NV

ALU

ES

IngersollRand(NYSE:IR)isadiversifiedindustrialmanufacturerwithmarket-leadingbrandsservingcustomersinglobalcommercial,industrialandresidentialmarkets.Diversity,engagementandteam-workdriveourinnovationandfuelourpassionforexceedingcustomerexpectations.Togetherwithexperiencedandprincipledleadership,andethicalbusinesspractices,ourengagedteamdeliversendur-ingresultsthatleadtoasustainableworld.Readmoreaboutourcompany,brandsandgovernanceinour2018AnnualReportandonourwebsite.

Our Governance

2018 ESG REPORT 17

SustainabilityGovernance

SustainabilityismorethansomethingwedoatIngersollRand–itiseverythingwedo.Throughtheleadershipofourchairmanandchiefexecutiveofficer(CEO)andseniorleaders,wehaveembeddedsustainabilityintotheanatomyofhowweoperate,howwehelpourcustomerssucceedandhowweengageourpeople.OurapproachandinitiativesareguidedbyanexternalAdvisoryCouncilonSustainabilityandregularlyreviewedbyourEnterpriseleadershipteamandBoardofDirectors.Day-to-day,ourCenterforEnergyEfficiencyandSustainabilityteam(CEES)teamsurveysthemarketlandscape,continuallybringingforwardnewideasandrequirements.TheCEESteamisalsoresponsiblefortrackinganddisclosingourprogress.Readmoreaboutoursustainabilitygovernance,materialityassessment,stakeholderengagementandvaluechain.

Governance,EthicsandRiskManagement

Ourcorevalues–integrity,respect,teamwork,innovationandcourage–arethefoundationofourenduringsuccess.Integrityleadsthelistbecauseitisfundamentaltoour148-yearreputationandcentraltoourphilosophyofcorporategovernance.GuidedbyourCodeofConduct,weoperateinaccordancewiththelawandthehigheststandardsofethicalconducttodowhatisinthebestinterestofourstakeholders,theenvironmentandsociety.Readmoreaboutourapproachtogovernance,ethicsandriskmanagementinour2018AnnualReportandonourwebsite.

OurCodeofConductreinforcesourvaluesandsetsclearexpectationsofethicalbehaviorforeveryoneofouremployees,regardlessofroleorlocation.Toensureourcodeguideseverythingwedo,allsalariedemployeesarerequiredtocompleteanannualcodeofconducttrainingprogram–includinganattestationoftheircompliance.Whenwerefreshedourcodeinearly2018,wealsomadeitdigitallyaccessible,easytonavigate,interactiveandpolicy-based.Additionally,wehaveanexecutive-levelglobalBusinessIntegrityCouncilandregion-levelcouncilsthatoperationalizecompliancepracticeslocallyandraiselocalissuestotheexecutivelevelcouncilforconsiderationandremediation.

Market leadingbrands serving customers in global commercial, industrial and residential markets

148 yearsof integrity, respect, teamwork, innovation and courage

18 2018 ESG REPORT

ANTI-CORRUPTION

OurCodeofConductandassociatedAnti-BriberyandCorruptionPolicyreflectourcommitmenttointegrity.Thepolicy,whichisoverseenbytheBoardofDirectors,prohibitsallcompanyemployeesfromgivingandofferinganythingofvalueinexchangeforabusinessadvantage.Thisincludesacompletebanonfacilitationpaymentstosecureroutinegovernmentfunctions,eventhoughsuchpaymentsarepermissibleundertheForeignCorruptPracticesAct.

Additionally,weknowtheactionsofourbusinesspartnersmaybeconsideredactionsofIngersollRand.Weleverageathird-partyvendortoconductcompliancescreeningsfromthousandsofglobalpublicrecorddatabases.

CustomerSatisfaction

CustomersatisfactionandloyaltyareapriorityatIngersollRand.Wearecommittedtounderstandingcustomerperspectivesandrefiningourofferingstomeetandexceedourexpectationsforreliability,energyefficiencyandsustainability.WemeasurecustomersatisfactionthroughtheCustomerSatisfactionIndex(CSI)andleverageanalyticsthroughcustomerrelationshipmanagement(CRM)systemstodrivecommonprocesses,connectdeepinsightsoncustomersandcompetitorsanddrivestrategicgrowthprograms.Additionally,wemeasurespecificattributesofthefullcustomerexperiencefromsalestoserviceandsupport.

WeuseaconsistentglobalmeasurementprocesstocapturecustomerfeedbackandCSIscoresforeachbusiness.Thedataisupdatedandreviewedquarterlywithbusinessleadershipandusedtodevelopactionplanstoaddressitemsthatrequirecorrectiveaction.Additionally,wehave2020sustainabilitytargetsforcustomeroutcomesthatincludeincreasingthereliability,durability,efficiencyandsafetyofourproducts.WhilewedonotreportourCSIscorespublicly,weareexceedingourplannedtargets.

PublicPolicyAdvocacyandCompliance

Weengagewithpolicymakerstofindsolutionstotheissuesthataremostimportanttoourbusinessandstakeholders.Whiletopicscancoverabroadcross-sectionofpolicyareassuchasglobaltradeandtaxes,ourfocusremainsonenergyefficiencyandrefrigerantpolicy.

PUBLIC POLICY

IngersollRandsupportspoliciesthatfacilitatemarkettransitionstomoreenergy-efficienttechnologiesandproductsthatusenextgeneration,low-globalwarmingpotential(GWP)refrigerants.Weengageinpublicpolicybothdirectlyandindirectlythroughassociationsandcoalitionstounderstandandhelpshapefutureregulationsinthesepolicyareas.Ourapproachincludesactivelyparticipatingininternationalforums,and,whenappropriate,ourtechnicalpolicyexpertsengagedirectlywithregulatorsandotherkeystakeholdersinadvanceofandduringtherulemakingprocess.

Toimproveenergyefficiency,wesetandalreadyexceededour2020citizenshiptargettoeducateofficialsindevelopingmarketsaboutenergymanagementandoptimization.Theseeffortsadvancesolutionstomeetthegrowingdemandforaffordable,sustainableenergywhichiscrucialtoreducinggreenhousegas(GHG)emissionsandcreatingmoreresilientcommunities.

Ourobjectiveforrefrigerantsistooffercustomerschoicesandguidanceabouthowandwhentotransitiontolow-GWPalternatives.Wecontinuetoevaluateandtestavailablealternativesforglobalmarketstoensurewehavethebestbalanceofperformance,safety,reliabilityandavailabilityaswellasastrongserviceorganizationandsupplychaininplacetosupportthetransition.WeparticipateintheUnitedNationsMontrealProtocolprocessandotherinternationalforums,bringingresearchandindustryexpertisetofacilitateapracticaltransitionthatexpeditesthereductionofGHGemissions.

2018 ESG REPORT 19

Atthesametime,wearealsoworkingproactivelywithsuppliersthroughourglobalClimateCommitmenttoidentifyanddevelopaviable,long-termlow-GWPalternativetoR-410A,whichisthemostprevalenthydrofluorocarbon(HFC)usedinheating,ventilationandairconditioning(HVAC)today.ThisalternativeiscrucialtothesuccessoftheKigaliAgreementtotheMontrealProtocol,whichseekstophasedownHFCsby85%by2036.

Airqualityisalsoanimportantfocusforourpolicyeffortsasurbanizationisincreasingpollutionincitiesaroundtheworld.InEurope,forexample,theproliferationofdieselinpassengerandcommercialvehiclesisincreasinglevelsofparticulateandotheremissionsthathavenegativehealthimpacts.Inlinewithlegislativeeffortstocreatepollutantthresholds,ourThermoKing®brandisinvestinginpowertechnologywithsignificantlylowerpollutants.

POLITICAL ACTIVITY AND CONTRIBUTIONS

Thelawsofmanycountriesprohibitorstrictlylimitcontributionsbycorporationstopoliticalpartiesandcandidates.Althoughouremployeesmayengageinpersonalpoliticalactivity,theyareprohibitedfromdoingsoonbehalfofIngersollRandorasacompanyemployee.IntheUnitedStates,IngersollRandmanagesanonpartisanpoliticalactioncommittee(PAC),whichiscompliantwithallapplicablelawsandisregulatedbytheFederalElectionCommission(FEC).UndertheFEC,allfundsreceivedbythePAC,andresultingcontributionstofederalcandidates,arepubliclydisclosedintheFECCampaignFinancedatabase.Ouremployeesarenotpermittedtoreceiveanytypeofreimbursementfromthecompanyforpersonalcontributionstopoliticalpartiesandcandidates.

INGERSOLL RAND POLITICAL ACTION COMMITTEE TOTAL CONTRIBUTIONS (U.S. ONLY)

2018 2017 2016 2015 2014 2013

$30,000 $28,500 $24,500 $11,000 $37,500 $7,500

CONTRIBUTIONS TO 527 ORGANIZATIONS

IngersollRandhasnotcontributedto527Organizations–politicalorganizationscreatedunderSection527oftheInternalRevenueCodeotherthanpoliticalactioncommitteesandcandidates–andhasnointentionofdoingso.Wealsodonot,andhavenointentionto,contributetofederalindependentexpenditure-onlycommittees,alsoknownas“SuperPACs.”

EnvironmentalHealthandSafety(EHS)Compliance

Ouroperatingpracticessafeguardourpeopleandprotecttheenvironment.

Toachieveazeroinjuryandincidentcultureandtomeetourenvironmentalgoals,weintegratesoundenvironmental,healthandsafety(EHS)practicesintooureverydayactivitieswithstakeholders.Fromaregulatoryauthoritycomplianceperspective,IngersollRand:

• Complieswithorexceedsrequirementsofglobal,national,stateandlocalstatutes,regulationsandstandardsthatprotecttheenvironment,humanhealthandsafety.Inallcases–regardlessofwhetherapplicablelawsandregulationsexist–weapplysoundEHSmanagementpractices,whichcontinuetodriveourstrongcompliancerecord.

• Conductsregularinternalandthird-partyauditstoverifycompliancewithEHSregulatoryrequirementsandcompanystandards.

• Monitorsandunderstandsemergingissues,regulatorychangesandtechnologicalinnovations.

Weareresponsibleformanagingmaterialstoprotectourenvironment,employees,customersandcommunities.Forexample,somerefrigerantsusedinourproductsareconsideredozone-depletingsubstancesandmayhavehigher-globalwarmingpotential.Wehaveresponsibleandsustainableoperatingandhandlingpracticestominimizerefrigerantleaksandavoidenvironmentalandsafetyimpacts.

20 2018 ESG REPORT

EHS MANAGEMENT

OurEHSPolicyispubliclyavailableandhasbeensignedbyourChairmanandCEO.Thispolicyismorethanadocumentcontainingguidingprinciplesandasummaryofourobligations.Itisapromisetoourpeople,customers,partners,shareholdersandcommunitiesthatwewillcontinuetobegoodcorporatecitizensandremaincommittedtooperatingsafelyandprotectingtheenvironment.

OurseniorvicepresidentofGlobalOperationsandIntegratedSupplyChainservesastheexecutivesponsorofEHSprogramsacrossallIngersollRandoperations.TheEHSCouncilofcorporateandbusinessEHSleadersmeetsregularlytodeveloporenhanceourEHSmanagementstandards.EachofourmanufacturingandservicefacilitiescontinuestomatureourEHSmanagementsystems,andtopushusfurther,wesetannualgoalsinkeyimpactareasandtrackourcontinuousimprovement.OuremployeeengagementandEHScommitteesarecriticaltoeffectiveEHSprogramsandimprovements.Wedirectlyinvolveouremployeesinstrategicplanning,assessingperformancestatusandensuringcontinuousengagementonthepartofleadership,subjectmatterexpertsandproductionassociates.Throughmonthlycommitteemeetings,ouremployeesidentifysafetyissuesandimplementsolutionstoimprovetheirworkplace.Weusealeadingcloud-basedsoftwaresolution,Gensuite™tocollectandtrackdata.ThesystemprovidesmonthlyreportsonEHSprogresstoexecutiveandfacility-levelleadershipteams,whichweusetotrackourperformanceagainstourannualgoalsinkeyareas.TheinsightsinthesereportsleadtoEHSprogramimprovementsandinitiativestodrivecontinuousimprovement.

Wefocusonperformancemonitoringandimprovementinthefollowingareas:

OurcorporateEHSgroupregularlymonitorsfacility-levelperformanceintheseareasagainstglobalEHSstandardsandapplicableregulatoryrequirements.Throughacombinationofthird-partyconsultantsandinternalEHSstaff,weauditeachIngersollRandsiteonafrequencythatdependsonthesite’scomplexity.OurproactiveoversightprocessalsorequireskeyfacilitiestoconductannualEHSself-assessments,followingastandardprotocoltoidentifyopportunitiestoimproveEHSperformance.

KeepingouremployeessafeiscoretoourcultureandalongstandingpriorityforIngersollRand.Themajorityofemployeesatourmanufacturingsitesandotherlargelocations,andthosewhocompleteserviceworkatthird-partylocations,receiveannualEHStraining.WeusetheU.S.OccupationalSafetyandHealthAdministration(OSHA)regulation29CFR1904asthebasistorecordandreportaccidentsatoursitesaroundtheworld.Additionally,sitesareexpectedtocomplywithlocalregulationswhentheyarestricterthantheU.S.OSHAstandard.OurEHSdataisassuredannuallybyathirdparty.

Globalhealthissuesareaddressedthroughmultiplemechanisms,including,amongothers,high-risktraveldestinations,globalcrisisemergencyplanning,practicesforemergencymedicalrespondersandcompanyhealthprograms.Additionalawarenesstrainingisplannedforserviceemployeeswhoperformworkinmedicalhealthcarefacilities.Readmoreaboutourapproachtooccupationalhealthandsafety.

Duringacquisitions,IngersollRandcompletesformalduediligenceincludingEHS.WeimplementEHSchangemanagementprogramsforalloperationsweacquire,newoperationsthatweopen,andatthetimethatweintroduceneworredesignedproducts.EHSriskassessmentsareimplementedatmultiplelevels,includingpre-task,pre-project,withinchangemanagementandwhenevaluatingoverallenterpriserisks.WedonotsubscribetoArticle15oftheRioPrinciplesanddonotaddresstheprecautionaryapproachandprinciple.Wehavereceivednosignificantfinesfornoncompliancein2018.ReadmoreaboutourEHSPolicy.

• Pollutionprevention,environmentalmanagementandintegratedpermitting

• Airemissionmanagement

• Watersupplymanagement,includingawaterqualitymanagementsystem

• Hazardoussubstancemanagement

• Generalsafetyandhealthmanagement

• Personalprotectiveequipment

• Wastewaterdischargemanagement

• Wastemanagement

• Dangeroussubstances

• Physicalhazards

• Mechanicalhazards

• Fireprotection

2018 ESG REPORT 21

8th Consecutiveyear on the Dow Jones Sustainability Index

2nd Consecutive year on the Human Rights Cam-paign Foundation Corporate Equality Index, Best Places to Work for LGBTQ Equality

6th Consecutiveyear on Fortune World’s Most Admired Companies

2018AwardsandRankings

• 8thconsecutiveyearontheDowJonesSustainabilityIndex

• 6thconsecutiveyearonFortuneWorld’sMostAdmiredCompanies

• 2ndconsecutiveyearontheHumanRightsCampaignFoundationCorporateEqualityIndex,

BestPlacestoWorkforLGBTQEquality

• 4thconsecutiveyearonFTSE4GoodIndexSeries

• NamedtoThomsonReutersGlobalDiversityIndex

• NamedtoCorporateKnightsGlobal100MostSustainableCorporationsIndex

• RecipientofU.S.ChamberofCommerceFoundation’sBestEnvironmentalStewardshipAward

• RecipientofGreenBuilderMedia’sEco-LeadersAward

• Recipientofthe2018ChinaCSRForum’sBestInnovativePublicWelfareProgramAward

22 2018 ESG REPORT

MembershipsandPartnerships

• AdvancedEnergyEconomy(AEE)

• Air-Conditioning,HeatingandRefrigerationInstitute

(AHRI)

• AHCGroup

• AllianceforResponsibleAtmosphericPolicy(ARAP)

• AlliancetoSaveEnergy(ASE)

• AmChamShanghai

• AmericanBeltandRoadWorkingGroupundertheU.S.

Embassy

• AmericanCenterforLifeCycleAssessment

• AmericanChamberofCommerceinIndia(AmChamIndia)

• AmericanCouncilforanEnergy-EfficientEconomy

(ACEEE)

• AmericanSocietyofHeating,RefrigeratingandAir-

ConditioningEngineers(ASHRAE)

• AssociationofClimateChangeOfficers(ACCO)

• AssociationofEnergyEngineers(AEE)

• BritishCompressedAirSociety(BCAS)

• BusinessCouncilforSustainableEnergy(BCSE)

• BusinessRoundtable

• CaliforniaEnergyStorageAlliance(CESA)

• ChinaFederationofLogisticsandPurchasing(CFLP)

• ChinaGeneralMachineryIndustryAssociation–

CompressorBranch

• ChinaRefrigerationandAir-ConditioningIndustry

Association(CRAA)

• CompressedAirandGasInstitute(CAGI)

• ConfederationofIndianIndustries(CII)

• CorporateEcoForum(CEF)

• EnergyStorageAssociation

• EuropeanPartnershipforEnergyandtheEnvironment

(EPEE)

• GlobalEnvironmentalManagementInitiative(GEMI)

• GreenBizExecutiveNetwork(GBEN)

• HydraulicInstitute

• InternationalCodeCouncil

• InternationalLightTransportationVehicleAssociation

(ILTVA)

• ManufacturersAllianceforProductivityandInnovation

(MAPI)

• MaterialHandlingInstitute(MHI)

• NationalAssociationofEnergyServiceCompanies

(NAESCO)

• NationalAssociationofEnvironmentalManagement

(NAEM)

• NationalAssociationofManufacturers(NAM)

• NationalGolfCourseOwnersAssociation(NGCOA)

• NaturalResourcesDefenseCouncil(NRDC)

• RenewableEnergyBusinessAssociation(REBA)

• ResidentialEnergyServicesNetwork(RESNET)

• ShanghaiGreenBuildingAssociation

• ShanghaiEnergyConservationCenter

• SustainableEnergyforAll(SEforALL)

• ShanghaiRefrigerationInstitute

• TheAspenInstitute

• TheChinaConstructionMachineryAssociation–

SightseeingVehicleBranch

• TheConferenceBoard

• TheEnergyandResourcesInstitute(TERI)

• U.S.BusinessCouncilforSustainableDevelopment(US

BCSD)

• U.S.GreenBuildingCouncil(USGBC)

• U.S.RegionalEnergyEfficiencyOrganizations:SPEER,

MEEA,SEEA,SWEEP,NEEP,NEEA

• VerbanddeutscherMaschinen-undAnlagenbau(VDMA)

• WorldEnvironmentCenter

2018 ESG REPORT 23

Charters

IngersollRandalignswithseveralchartersthatsupportandadvanceoursustainabilitygoals.

CEO ACTION FOR DIVERSITY & INCLUSION ThelargestCEO-drivenbusinesscommitmenttoadvancediversityandinclusionintheworkplace,representingmorethan450CEOsandpresidents.

CLEAN ENERGY MINISTERIAL (CEM) ADVANCED COOLING (AC) CHALLENGE TheACChallengewasdesignedtourgegovernments,companiesandotherstakeholderstomake,sellorinstallsuper-efficientairconditionerorcoolingsolutionsthataresmart,climate-friendlyandaffordable.Itwascreatedasacalltoaction,recognizingthataccesstocoolingimproveshealth,productivity,economicgrowthandeducation.

CLIMATE AND CLEAN AIR COALITION HFC INITIATIVE UndertheHFCInitiative,coalitionpartnerssupportthedevelopmentofHFCinventoriesandstudies,informationexchangeonpolicyandtechnicalissues,demonstrationprojectstovalidateandpromoteclimate-friendlyalternatives,andtechnologiesandvariouscapacity-buildingactivitiestodisseminateinformationonemergingtechnologiesandpracticestotransitionawayfromhigh-globalwarmingpotentialHFCsandminimizeHFCleakages.

GLOBAL HUMAN RIGHTS POLICY ManyofthestandardssetforthinourHumanRightsPolicyalignwithbasicworkingconditionsandhumanrightsconceptsadvancedbyinternationalorganizationssuchastheInternationalLaborOrganizationandtheUnitedNations

PARADIGM FOR PARITY Acoalitionofbusinessleaders,boardmembersandacademicswhoarecommittedtoaddressingthegendergapincorporateleadership.

U.S. DEPARTMENT OF ENERGY (DOE) BETTER PLANTS CHALLENGE PARTNERS Havingmetouroriginalgoalsetin2009aspartoftheDOESaveEnergyNowLeadersprogram,IngersollRandbecameaBetterPlantsChallengePartnerin2016withacommitmenttoreduceenergyintensityby35%byendofyear2019.

WE ARE STILL IN Anorganizationofmorethan2,800groups–includingbusinesses,mayors,countyexecutives,universities,faithgroupsandinvestors–thathavecommittedtostandingbytheParisClimateAgreementandworkingtomeetitsgoals.

WECONNECT INTERNATIONAL WEConnectInternationalisaglobalnetworkthatconnectswomen-ownedbusinessestoqualifiedbuyersaroundtheworld.Wereported$253millionglobalspendwithwomen-ownedbusinessesin2018,thesecondreportingperiodforthiscommitment.

WE MEAN BUSINESS: ADOPT A SCIENCE-BASED EMISSIONS REDUCTION TARGET Companiesagreetosetascience-basedtargetthatisinlinewiththeScienceBasedTargetsInitiative’scall-to-actioncriteria.IngersollRand’sgoalofreducingtheGHGrefrigerantfootprintofourproductsby50%by2020andreducingtheGHGemissionsfromouroperationsby35%by2020wasverifiedasascience-basedgoalin2016bytheScienceBasedTargetInitiative.

WE MEAN BUSINESS: COMMIT TO REDUCE SHORT-LIVED POLLUTANT EMISSIONS Acoalitionofcompaniesthatagreetoincludemeasurementofhydrofluorocarbons(HFCs)intheirgreenhousegas(GHG)accounting,reduceemissionsofshort-livedclimatepollutants(SLCPs),engagestakeholdersinsupplychainstoreduceSLCPs,promotebestpracticesandshowcasesuccessfulefforts.

24 2018 ESG REPORT

Our Report and Data

AboutourReporting

WealignourreportingwiththeGlobalReportingInitiative(GRI)standards,coreoptionand–thisyearforthefirsttime–theframeworksoftheSustainabilityAccountingStandardsBoard(SASB)andtheFinancialStabilityBoard’sTaskForceonClimate-relatedFinancialDisclosures(TCFD).Aformalmateri-alityprocessdefinesourpriorities,shapesourstrategy,guidesourgoalsettinganddefinesourresourceallocationandreporting.In2018,werefreshedourmaterialityassessmenttoprioritizethetopicsthataremostimportantandimpactfultostakeholdersandbusiness.Readmoreaboutourmaterialityas-sessmentprocess.

2018 ESG REPORT 25

Our2018ESGReportoutlinesourmanagementapproach,dataandinitiativesforeachofour15ma-terialtopics–definedasthosethatareintheupperright-handquadrantofourmaterialitymatrix.ThereportwasreviewedbyoursubjectmatterexpertsandtheCEESandsustainabilityleadershipteams.SeeourGRIContentIndex,SASBDisclosureandTCFDDisclosure.

A NOTE ABOUT OUR DATA

Throughoutthisreport,wedefineourorganizationalboundaryusingthefinancialcontrolapproach.In2014,wecompletedacorporate-widereviewofScope1and2greenhousegas(GHG)emissionsforallownedandleasedassetsusingtheGreenhouseGasProtocolaccountingstandards.Webelievethismostaccuratelyreflectsthedirectimpactofouroperationalfootprint.Wereportdatafromnewlyopenedandacquiredfacilitiesassoonasvaliddataisavailable.Forrecentlyclosedorsoldfacilities,thedataisincludedforthetimeperiodasitewaspartofthecompanyandtoensureyear-overyearcomparisonsremainconsistent.Assucheventsoccur,baselinesareadjustedtoaccountfortheseoperatingfootprintchanges.Asourdatacollectionsystemcontinuestomatureandimprove,theenvironmentaldatawereportimprovesinaccuracyandexpandsinbreadth.Dataispresentedinabsoluteandnormalized(intensity)terms.Normalizingenvironmentalandenergydatatototalrevenueprovidesvaluableinsightsintothelevelofeco-efficiencyacrossourdiversifiedoperationsandallowsbenchmarkingagainsttheperformanceofotherindustrialcompanies.Oursafetydataisnormalizedbythenumberofhoursworked.

OurEHSandGHGdataisassuredannuallybyathirdparty.Assuranceforour2018dataiscurrentlyongoing.Ourfuturereportingwillbeupdatedtoreflect,andnote,anyadjustmentsthatarise.Wedonotanticipateanysignificantchangestothedatacurrentlyinour2018ESGReport.

ProgressTowards2020SustainabilityTargets

Our2020sustainabilitytargetsareourframeworktoachieveourvisionforaworldofsustainableprogress.Fromourgovernanceandoperationstooursupplychainandproducts,theykeepsocialandenvironmentalbusinessimperativesattheforefrontofeverythingwedo.Ouroverarchinggoalsaretooperateethicallyandtransparently;cultivateasustainableandinnovativesupplychain;optimizenaturalresourcesinouroperations;innovatetodeliveroptimaleconomicandperformancevalueoverproductlifecycle;buildaWinningCulturethatisvalues-basedandinclusive;andcreatesharedvaluebyputtingmorebackintosocietythanwetakeout.

GOAL TARGET PROGRESS TOWARD TARGET

Governance: Enhance efforts to uphold our standards for ethical business conduct, transparency, compliance and oversight

AdheretoaGlobalFrameworkforReportingourSustainabilityProgress

RespondtotheannualCDPrequest Goalmet

AlignwithGlobalHumanRightsInitiatives

MaintainandupdateaGlobalHumanRightsPolicy Goalmet

EnsureStandardGuidelinesforResponsibleBusinessBehaviortoEnhancetheReputationofourCompanyandBrands

AchieveannualtrainingandcertificationontheCodeofConductbyemployeesandbusinesspartners

Goalmet

Issuerobustcommunicationstoallemployeestosustainethicalbusinessculture

Goalmet

MaintainaGovernanceStructurethatEnablestheDeliveryofourLong-TermSustainabilityPlan

BoardofDirectors

EnterpriseLeadershipTeam

ExternalSustainability

AdvisoryCouncil

InternalSustainability

CouncilCEES

Goalmet

26 2018 ESG REPORT

2018 ESG REPORT 27

Suppliers: Collaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needs

EnsureAlignmentofBusinessPartnerstoaCommonSetofEthicalBeliefsandExpectations

100%ofnewsuppliershaveagreedtoourBusinessPartnerCodeofConduct(BPCoC)

BPCoCprogress:90%ofcontrollablespend

60%ofourdirectspendwillbewithsuppliersinourPreferredSupplierProgram

Preferredprogress:49.6%

LeverageIngersollRandProductDevelopmentProcess(IRPDP)toUsePreferredSuppliers

80%ofEarlySourcingWorkPlan(ESWP)completedinPhase1ofIRPDP

Ontrack–73%

MaximizeMarketplaceConnectivitybyFosteringSupplierDiversity

Extendsupplierdiversityprogramtospendwithdiversecompaniesglobally

$253millionglobalspendwithwomen-ownedbusinessesin2018

PartnerwithSupplierstoMinimizetheEnvironmentalImpactofourSupplyChain

Allbusinesseswillhaveapackagingimprovementplan Ontrack

Establishbaselineofsupplierswhohaveparticipatedinwaste,energyandwaterreductionprogramsby2016andtrackimprovementthrough2020

Ontrack–Gensuitesupplierplatformindevelopment

Establishbaselineofsuppliersinwater-stressedareaswhohaveawaterconservationplanby2016andtrackimprovementthrough2020

Ontrack–Gensuitesupplierplatformindevelopment

Reduceemissionsduetofreight:goalis5%reduction Ontrack–trackingthroughUPSandEPASmartWay

MinimizeImpactsofourCustomersbyEnsuringaViableSupplyChain

Designate90%ofdirectmaterialspendassessedonaquarterlybasisforrisk

Goalexceeded–95%

Operational Footprint: Optimize the use of natural resources in our operations to reduce environmental impact

OptimizeEnergyUse Increaseenergyefficiencyinownedfacilitiesby10% Goalexceeded–23%

Increasefuelefficiencyinownedfleet 6,310metrictonsofCO2esaved

Evaluatealllong-termleases>100Ksq.ft.againstenvironmentalandenergycriteria

Developedguidebookwithenvironmentalcriteriaandcertifications

ReduceourScope1and2GreenhouseGas(GHG)Emissions

ReduceScope1and2emissionsby35% 31%reductioninabsoluteemissions

45%decreaseinemissionsintensity

ImproveWasteManagementinourOperations

Reducenon-hazardouswastetolandfillby30% Goalexceeded–40%reductioninintensity

Reducehazardouswasteby20% Ontrack–17.5%reductioninintensity

ImproveWaterManagementinourOperations

Reducewaterusedatsiteslocatedinwater-stressedareasby25%

Goalexceeded–38%reduction

Customer Outcomes: Innovate to deliver optimal economic and performance value over product lifecycle

DesignProductsforWorld-ClassResourceEfficiencyduringUseofProduct

Establishportfoliosthatmeetworld-classenvironmentalcriteria(energyconsumption,emissionsfromtheuseoftheproduct)

EcoWise™portfolio

ReduceDirectGHGEmissions ReducetheGHGrefrigerantfootprintofourproductsby50%

Goalexceeded–52%reduction

IncreaseReliabilityandDurability Improvequalityandtimetosolution Ontrack

ReduceEnvironmentalImpactatEndofProducts’UsefulLife

Performalifecycleassessment(LCA)on100%ofnewproducts

21%

100%ofNewProductDevelopment(NPD)projectsinIRPDPhaveend-of-usemanualcreated

Inprocess–eightend-of-usemanualscreated

ImproveHealthandSafety ImproveserviceabilitythroughIRPDP Standardworkdeveloped

28 2018 ESG REPORT

Our People: Build a Winning Culture that is values-based, inclusive and engages and develops people for premier performance

AttractandRetainTop-Quality,DiverseTalentandLeadership

Createslateswithdiversecandidates Ontrack

Retain95%ofkeytalent Goalmet–95.6%retention

DevelopPeopleandProcessestoBuildStrategicCapabilities

95%ofemployeeshavedevelopmentplansinplace Goalexceeded–97.6%ofemployees

ImproveLeadershipEffectivenessIndexby80% Ontrack–74%favorable

AchieveaGrowthandDevelopmentIndexscoreof75%forstrategiccapabilitydevelopment

Ontrack–74%asof2018

FosteranInclusive,EngagingWorkplacethatConnectsEmployeestoCompanyPurpose

Achieveemployeeengagementrateof80% Ontrack–scoreintop25thpercentile

75%ofemployeesparticipateincommunityorsustainabilityinitiatives

38%ofemployeesparticipatedin2018

ProvideaSafeandSecureWorkplacethatSupportsEmployeeWell-BeingandProductivity

Provideaccessibilitytowellnessprogramsto75%ofemployeebase

Goalexceeded–95%ofemployeebasehasaccesstowellnessprograms

Achieveworld-classperformanceinlosttimeincidentrate,60%reductionfroma2013baseline

Ontrack

Corporate Citizenship: Address social and environmental imperatives that create shared value, result in sustained customer and employee loyalty, and improve the communities where we have business operations

ExpandCompetencyinEnergyandOtherResourceEfficiency

Shareenergyconservationknowledgewith200officialsindevelopingregions

Goalmet–sharedknowledgewith201officials

Launchsignatureprogramtoincreasefemalerepresentationinmanufacturingpositionsandadvancetechnicalworkforcedevelopmentprogramsat100communitycollegesandtechnologyinstitutesworldwide Goalmet–achievedthroughparticipationin

vocationaltechnicalprogramsandToolsforSchoolsprogramExpandCompetencyinScience,

Technology,EngineeringandMath(STEM)

Launchsignatureprogramtoincreasefemalerepresentationinmanufacturingpositionsandadvancetechnicalworkforcedevelopmentprogramsat100communitycollegesandtechnologyinstitutesworldwide

Sponsor20,000femalesinSTEM-relatedactivitiestoincreasecareerinterest

Goalmet–achievedthroughsupportofmobilesciencelabsinIndia

AddressNutritionandFoodWasteReduction

Providefoodandnutritioneducationto200,000children Goalmet–achievedthroughsupportofFeedingChildrenEverywhere,AmericanHeartAssociationandSecondHarvest

SupportHousingandShelterNeeds Volunteer40,000hoursrelatedtohousingandshelter Goalexceeded–morethan42,000hoursvolunteered

SustainableDevelopmentGoals

TheUnitedNationsSustainableDevelopmentGoals(SDGs)representthebiggestandmostcomplexchallengesofourtime.Inadditiontoreducingtheimpactsofouroperationsandportfolio,wepriori-tizetheSDGsthataremostrelevanttoourexpertise,businessobjectivesandcitizenshipgoals.In2016,weusedtheSDGsaspartofourexisting2020sustainabilitytargetstohelpguideourbusinessdirection.

GOVERNANCE

Adhere to a Global Framework for Reporting our Sustainability Progress

RESPOND to the annual CDP request

Align with Global Human Rights Initiatives

MAINTAIN AND UPDATEa Global Human Rights Policy

Ensure Standard Guidelines for Responsible Behavior to Enhance the Reputation of our Company and Brands

training and certification of annual Code of Conduct and Ethics by employees and business partners

ACHIEVE

robust communications to all employees to sustain ethical business culture

ISSUE

Maintain a Governance Structure that Enables the Delivery of our Long Term Sustainability Plan

Board of Directors

Enterprise Leadership Team

External Sustainability

Advisory Council

Internal Sustainability

CouncilCEES

OPERATIONAL FOOTPRINTOptimize the use of natural resources in Our operations to reduce environmental impact

Optimize Energy Use

by 10%

INCREASE

INCREASE

against environmental and energy criteria

EVALUATE

Reduce Our Scope 1and 2 Greenhouse Gas Emissions

REDUCEscope 1and 2 emissions by 35%

Improve Waste Management in Our Operations

hazardous waste by 20%REDUCE

non-hazardous waste to landfill by 30%REDUCE

Ensure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectations

of new suppliers have agreed to our Business Partner Code of Conduct

100%

of our direct spend will be

Preferred

60%

Leverage IRPDP to Use Preferred Suppliers

of Early Sourcing Work Plan (ESWP) completed in Phase 1 of IRPDP

80%

Maximize Marketplace Connectivity by Fostering Supplier Diversity

EXTENDsupplier diversity program to spend with diverse companies globally

Minimize Impacts of our Customers by Ensuring a Viable Supply Chain

DESIGNATE

of direct material spend assessed on a

quarterly basis for risk

Partner with Suppliers to Minimize the Environmental Impact of Our Supply Chain

will have a packaging improvement planALL BUSINESSES

baseline of suppliers who have participated in waste, energy, water reduction programs by 2016 and track improvement through 2020

ESTABLISH

baseline of suppliers in water stressed areas with a water conservation program by 2016 and track improvement through 2020

ESTABLISH

emissions due to freightREDUCE

90%

SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needs

CUSTOMER OUTCOMESInnovate to deliver optimal economic and performance value over product lifecycle

Reduce Direct GHG Emissions

REDUCEthe GHG refrigerant footprint of our products by 50%

Increase Reliability, Durability

IMPROVEquality and time to solution

Improve Health and Safety

IMPROVEservice-ability through IRPDP

Design Products for World Class

Use of Product

portfolios that meet world class environmental criteria (energy consumption, emissions from the use of the product)

ESTABLISH

Reduce Environmental Impact at End of Products’ Useful Life

PERFORMan LCA on 100% of new products

of NPD projects in IRPDP have end of life manual created

100%

CORPORATE CITIZENSHIPAddress social and environmental imperatives that create shared value, result in sustained customer and employee loyalty,

and improve the communities where we have business operations

Expand Competency in Energy

energy conservation knowledge with 200 SHARE

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

Expand Competency in Science, Technology, Engineering and Math

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

20,000 females in STEM-related activities to increase career interest

SPONSOR

Address Nutrition and Food Waste Reduction

food and nutrition education to 200,000 children

PROVIDE

Support Housing and Shelter Needs

40,000 hours related to housing and shelter

VOLUNTEER

OUR PEOPLEBuild a Winning Culture that is values-based, inclusive and engages and develops people for premier performance

Develop People and Processes to Build Strategic Capabilities

a growth and development index score of 75% for strategic capability development

ACHIEVE

IMPROVE

of employees have development plans in place95%

Provide a Safe and Secure Workplace that Supports Employee Well-Being and Productivity

accessibility to wellness programs to 75% of employee base

PROVIDE

world class performance in lost time incident rate, 60% reduction from 2013 base

ACHIEVE

Attract and Retain Top-Quality Diverse Talent and Leadership

number of women in professional and leadership roles

INCREASE

slates with diverse candidatesCREATE

95% of key talentRETAIN

Foster an Inclusive, Engaging Workplace that Connects Employees to Company Purpose

Progressive, Diverse and Inclusive Index score of 80%

ACHIEVEemployee engagement rate of 80%

ACHIEVE of employees participate in community or sustainability initiatives

75%

Improve Water Management in our Operations

water used at sites located in water stressed areas by 25%

REDUCE

EMBEDDING SUSTAINABILITYACROSS THE ENTERPRISE

2020 GOALS AND STRATEGIC DEVELOPMENT GOALS

GOVERNANCE

Adhere to a Global Framework for Reporting our Sustainability Progress

RESPOND to the annual CDP request

Align with Global Human Rights Initiatives

MAINTAIN AND UPDATEa Global Human Rights Policy

Ensure Standard Guidelines for Responsible Behavior to Enhance the Reputation of our Company and Brands

training and certification of annual Code of Conduct and Ethics by employees and business partners

ACHIEVE

robust communications to all employees to sustain ethical business culture

ISSUE

Maintain a Governance Structure that Enables the Delivery of our Long Term Sustainability Plan

Board of Directors

Enterprise Leadership Team

External Sustainability

Advisory Council

Internal Sustainability

CouncilCEES

OPERATIONAL FOOTPRINTOptimize the use of natural resources in Our operations to reduce environmental impact

Optimize Energy Use

by 10%

INCREASE

INCREASE

against environmental and energy criteria

EVALUATE

Reduce Our Scope 1and 2 Greenhouse Gas Emissions

REDUCEscope 1and 2 emissions by 35%

Improve Waste Management in Our Operations

hazardous waste by 20%REDUCE

non-hazardous waste to landfill by 30%REDUCE

Ensure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectations

of new suppliers have agreed to our Business Partner Code of Conduct

100%

of our direct spend will be

Preferred

60%

Leverage IRPDP to Use Preferred Suppliers

of Early Sourcing Work Plan (ESWP) completed in Phase 1 of IRPDP

80%

Maximize Marketplace Connectivity by Fostering Supplier Diversity

EXTENDsupplier diversity program to spend with diverse companies globally

Minimize Impacts of our Customers by Ensuring a Viable Supply Chain

DESIGNATE

of direct material spend assessed on a

quarterly basis for risk

Partner with Suppliers to Minimize the Environmental Impact of Our Supply Chain

will have a packaging improvement planALL BUSINESSES

baseline of suppliers who have participated in waste, energy, water reduction programs by 2016 and track improvement through 2020

ESTABLISH

baseline of suppliers in water stressed areas with a water conservation program by 2016 and track improvement through 2020

ESTABLISH

emissions due to freightREDUCE

90%

SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needs

CUSTOMER OUTCOMESInnovate to deliver optimal economic and performance value over product lifecycle

Reduce Direct GHG Emissions

REDUCEthe GHG refrigerant footprint of our products by 50%

Increase Reliability, Durability

IMPROVEquality and time to solution

Improve Health and Safety

IMPROVEservice-ability through IRPDP

Design Products for World Class

Use of Product

portfolios that meet world class environmental criteria (energy consumption, emissions from the use of the product)

ESTABLISH

Reduce Environmental Impact at End of Products’ Useful Life

PERFORMan LCA on 100% of new products

of NPD projects in IRPDP have end of life manual created

100%

CORPORATE CITIZENSHIPAddress social and environmental imperatives that create shared value, result in sustained customer and employee loyalty,

and improve the communities where we have business operations

Expand Competency in Energy

energy conservation knowledge with 200 SHARE

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

Expand Competency in Science, Technology, Engineering and Math

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

20,000 females in STEM-related activities to increase career interest

SPONSOR

Address Nutrition and Food Waste Reduction

food and nutrition education to 200,000 children

PROVIDE

Support Housing and Shelter Needs

40,000 hours related to housing and shelter

VOLUNTEER

OUR PEOPLEBuild a Winning Culture that is values-based, inclusive and engages and develops people for premier performance

Develop People and Processes to Build Strategic Capabilities

a growth and development index score of 75% for strategic capability development

ACHIEVE

IMPROVE

of employees have development plans in place95%

Provide a Safe and Secure Workplace that Supports Employee Well-Being and Productivity

accessibility to wellness programs to 75% of employee base

PROVIDE

world class performance in lost time incident rate, 60% reduction from 2013 base

ACHIEVE

Attract and Retain Top-Quality Diverse Talent and Leadership

number of women in professional and leadership roles

INCREASE

slates with diverse candidatesCREATE

95% of key talentRETAIN

Foster an Inclusive, Engaging Workplace that Connects Employees to Company Purpose

Progressive, Diverse and Inclusive Index score of 80%

ACHIEVEemployee engagement rate of 80%

ACHIEVE of employees participate in community or sustainability initiatives

75%

Improve Water Management in our Operations

water used at sites located in water stressed areas by 25%

REDUCE

EMBEDDING SUSTAINABILITYACROSS THE ENTERPRISE

2020 GOALS AND STRATEGIC DEVELOPMENT GOALS

GOVERNANCE

Adhere to a Global Framework for Reporting our Sustainability Progress

RESPOND to the annual CDP request

Align with Global Human Rights Initiatives

MAINTAIN AND UPDATEa Global Human Rights Policy

Ensure Standard Guidelines for Responsible Behavior to Enhance the Reputation of our Company and Brands

training and certification of annual Code of Conduct and Ethics by employees and business partners

ACHIEVE

robust communications to all employees to sustain ethical business culture

ISSUE

Maintain a Governance Structure that Enables the Delivery of our Long Term Sustainability Plan

Board of Directors

Enterprise Leadership Team

External Sustainability

Advisory Council

Internal Sustainability

CouncilCEES

OPERATIONAL FOOTPRINTOptimize the use of natural resources in Our operations to reduce environmental impact

Optimize Energy Use

by 10%

INCREASE

INCREASE

against environmental and energy criteria

EVALUATE

Reduce Our Scope 1and 2 Greenhouse Gas Emissions

REDUCEscope 1and 2 emissions by 35%

Improve Waste Management in Our Operations

hazardous waste by 20%REDUCE

non-hazardous waste to landfill by 30%REDUCE

Ensure Alignment of Business Partners to a Common Set of Ethical Beliefs and Expectations

of new suppliers have agreed to our Business Partner Code of Conduct

100%

of our direct spend will be

Preferred

60%

Leverage IRPDP to Use Preferred Suppliers

of Early Sourcing Work Plan (ESWP) completed in Phase 1 of IRPDP

80%

Maximize Marketplace Connectivity by Fostering Supplier Diversity

EXTENDsupplier diversity program to spend with diverse companies globally

Minimize Impacts of our Customers by Ensuring a Viable Supply Chain

DESIGNATE

of direct material spend assessed on a

quarterly basis for risk

Partner with Suppliers to Minimize the Environmental Impact of Our Supply Chain

will have a packaging improvement planALL BUSINESSES

baseline of suppliers who have participated in waste, energy, water reduction programs by 2016 and track improvement through 2020

ESTABLISH

baseline of suppliers in water stressed areas with a water conservation program by 2016 and track improvement through 2020

ESTABLISH

emissions due to freightREDUCE

90%

SUPPLIERSCollaborate with suppliers to cultivate a sustainable and innovative supply chain to meet customer needs

CUSTOMER OUTCOMESInnovate to deliver optimal economic and performance value over product lifecycle

Reduce Direct GHG Emissions

REDUCEthe GHG refrigerant footprint of our products by 50%

Increase Reliability, Durability

IMPROVEquality and time to solution

Improve Health and Safety

IMPROVEservice-ability through IRPDP

Design Products for World Class

Use of Product

portfolios that meet world class environmental criteria (energy consumption, emissions from the use of the product)

ESTABLISH

Reduce Environmental Impact at End of Products’ Useful Life

PERFORMan LCA on 100% of new products

of NPD projects in IRPDP have end of life manual created

100%

CORPORATE CITIZENSHIPAddress social and environmental imperatives that create shared value, result in sustained customer and employee loyalty,

and improve the communities where we have business operations

Expand Competency in Energy

energy conservation knowledge with 200 SHARE

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

Expand Competency in Science, Technology, Engineering and Math

signature program to increase female representation in manufacturing positions and advance technical workforce development programs at 100 community colleges and technology institutes worldwide

LAUNCH

20,000 females in STEM-related activities to increase career interest

SPONSOR

Address Nutrition and Food Waste Reduction

food and nutrition education to 200,000 children

PROVIDE

Support Housing and Shelter Needs

40,000 hours related to housing and shelter

VOLUNTEER

OUR PEOPLEBuild a Winning Culture that is values-based, inclusive and engages and develops people for premier performance

Develop People and Processes to Build Strategic Capabilities

a growth and development index score of 75% for strategic capability development

ACHIEVE

IMPROVE

of employees have development plans in place95%

Provide a Safe and Secure Workplace that Supports Employee Well-Being and Productivity

accessibility to wellness programs to 75% of employee base

PROVIDE

world class performance in lost time incident rate, 60% reduction from 2013 base

ACHIEVE

Attract and Retain Top-Quality Diverse Talent and Leadership

number of women in professional and leadership roles

INCREASE

slates with diverse candidatesCREATE

95% of key talentRETAIN

Foster an Inclusive, Engaging Workplace that Connects Employees to Company Purpose

Progressive, Diverse and Inclusive Index score of 80%

ACHIEVEemployee engagement rate of 80%

ACHIEVE of employees participate in community or sustainability initiatives

75%

Improve Water Management in our Operations

water used at sites located in water stressed areas by 25%

REDUCE

EMBEDDING SUSTAINABILITYACROSS THE ENTERPRISE

2020 GOALS AND STRATEGIC DEVELOPMENT GOALS

IngersollRandwasoneofthefirstcompaniestoworkwiththeTrucostSDGEvaluationTooltobetterunderstandhowtheSDGsrelatetoourbusinessimpact.ThetoolprovidesquantitativeinsightsaboutwhichSDGswecanmakethebiggestimpactonandwherewehaveopportunitiestoimprove.

Ouroperationsandvaluechaincontributemostsignificantlyto:

• ClimateAction(SDG13)–Takeurgentactiontocombatclimatechangeanditsimpact:Theglobaldemandforaffordable,reliableenergyandaccesstocoolingandcomfortareincreasinglycontributingtoclimatechange.Wearereducinggreenhousegasemissions(GHG)andincreasingenergyefficiencyinouroperationsandthroughourproducts,asoutlinedinourClimateCommitment.Todate,wehaveavoidedmorethan21milliontonsofCO

2ecomparedtothe2013baseline.Read

moreaboutourapproachtoenvironmentalsustainability.

• AffordableCleanEnergy(SDG7)–Ensureaccesstoaffordable,reliable,sustainableandmodernenergyforall:Weareimplementingenergyefficiencymeasurersacrossourenterpriseandmeetingmoreofourenergyneedsthroughrenewableenergy.AspartofourClimateCommitment,wewillalsoinvest$500millionby2020inproduct-relatedresearchanddevelopmenttofundlong-termGHGreduction.

• GenderEquality(SDG5)–Achievegenderequalityandempowerallwomenandgirls:Throughourseven-stepstrategicsourcingprocess,weavoidusingpriceastheprimarydriverforsupplierselection.Instead,weconsiderarangeoffactorsasagreeduponbyacross-functionalteam,includingsupplierdiversity,qualityandrisk.Wearealsoworkingtowardourtargettospend$15billionwithwomen-ownedbusinessesthrough2021.Readmoreaboutoursupplierdiversity.

Toincreaseourimpact,wealsoalignedourcitizenshiptargetswithfouroftheUNSustainableDevelopmentGoals(SDGs)—ClimateAction(SDG13),QualityEducation(SDG4),ZeroHunger(SDG2)andSustainableCitiesandCommunities(SDG11).Readmoreaboutourprogresstoward2020targetsandapproachtocorporatecitizenship.

2018 ESG REPORT 31

Environmental SustainabilityOurPlanet

Climateactionisaglobalimperativeandourcustomersaredemandingsolutions.Theyseekourguidanceonhowtoincreaseenergyefficiencyandreducegreenhousegas(GHG)emissionsfromtheirbuildingsandindus-trialandtransportationsystems.EverydayatIngersollRand,westrivetoinnovateanddeliverontheirneedswhilealsoensuringthatouractionsareconsistentwithinourownoperations.IngersollRandisleadingthewayindecarbonizingourvaluechain,fromrawmaterialssourcingtoaproduct’sendoflife.Since2015,wehaverefreshed20.5%ofourproductportfoliotofeaturesustainabledesignalignedwithtotallifecyclemanagementbestpractices.

2018 ESG REPORT 32

ClimateChange

AccordingtotheEnvironmentalProtectionAgency(U.S.EPA),morethanone-quarterofglobalgreenhousegas(GHG)emissionscomefromelectricityandheatproduction.Asaleadingmanufacturerofproductsthatheat,cool,increaseindustrialproductivityandautomatebuildingsandtransport,weareuniquelypositionedtoaddressclimatechange.

AspartofourClimateCommitment,wedevelopedScope1and2emissionsreductiongoalsthroughtheScienceBasedTargetsInitiativetoalignwiththelevelofdecarbonizationrequiredtokeepglobaltemperatureincreasebelowtwodegreesCelsius.Todate,wehaveavoided21millionmetrictonsofCO

2equivalent(CO

2e)globallyfromourproductscomparedtoa

2013baseline.WehavealsoreducedtheGHGemissionsintensityofouroperationsby45%–meetingandsurpassingourtargettwoyearsearly–andreducedenergyuseby63,259millionBritishThermalUnits(BTUs)andelectricityconsumptionby18,373megawatthours(MWh)since2013.

Thisyear,wetookourcommitmentastepfurther.IngersollRandjoinedacohortofcompaniesleadingclimatechangeactioninsigningontosupporttheTaskForceonClimate-relatedFinancialDisclosures(TCFD)recommendations.Indoingso,weoutlinedourapproachtogovernance,strategyandriskmanagementaswellasourmetricsandtargetsinourfirst-everclimate-relateddisclosure.

ReadmoreaboutoureffortstoreduceGHGemissionsandrefrigerantsrelatedtoourbusinessoperationsandproductsingreenhousegasemissions,pollutantemissionsandrefrigerantsandproductemissions.

Acrossoursites,wereduceGHGemissionsbyinvestinginrenewableenergy,modernizingindustrialprocessesandreplacingincandescentlightbulbswithLEDlights.Weareworkingtouseonlytheresourcesweneed,opti-mizeenergyuse,reduceourScope1and2GHGemissionsandimprovewasteandwatermanagement.

Weknowkeepingenvironmentalsustainabilityattheforefrontofeverythingwedorequiresarigorousanddeep-rootedsupportstructure.OurglobalClimateCommitment,setin2014andchampionedbyourmostseniorleaders,outlinesgoalstosignificantlyreduceGHGemissionsfromouroperationsandproductportfolioby2020,andincorporatealternativeswithlower-globalwarmingpotential(GWP)refrigerantsacrossourproductportfolioby2030.

Our2018ESGReportprovidesupdatesonourcontinuingprogresstowardourClimateCommitmentandenvironmentalgoals.

OurClimateCommitmentincreasesenergyefficiencyandreducestheGHGemissionsrelatedtobothouroperationsandproductsincluding:

50% reductionin the GHG refrigerant footprint of our products for our custom-ers by 2020 and lower-global warming potential alternatives across our portfolio by 2030

35% reduction in the GHG footprint of the company’s office buildings, manufacturing facilities and fleet by 2020

$500 millioninvestment in product-related research and development over the next five years to fund the long-term reduction of GHG emissions

33 2018 ESG REPORT

GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

ThroughourClimateCommitment,weaimtoreduceScope1and2emissions(onaperunitrevenuebasis)35%by2020comparedtoa2013baseline.Overthepastfiveyears,wereducedthegreenhousegas(GHG)emissionsassociatedwithouroperationsbymorethan238,200metrictonsofCO

2e–or31%–whiletotalenergyefficiencyhasincreased23%.Intotal,we

haveavoided732,663metrictonsofCO2einoperationalGHGemissionssince2013.

REGIONAL GHG BREAKDOWN* 2018 2017 2016 2015 2014 2013

Scope 1 (metric tons CO2e)

NorthAmericaRegion(NAR) 277,581 297,157 314,541 378,283 355,222 408,052

LatinAmerica(LAT) 1,774 1,620 1,743 1,792 1,694 1,938

Europe,theMiddleEastandAfrica(EMEA)

37,889 46,441 48,342 43,803 38,614 44,670

AsiaPacific(AP) 25,733 23,433 28,605 42,102 72,804 59,784

Scope 2 (metric tons CO2e)

NAR 150,086 151,967 173,676 195,595 200,589 208,341

LAT 246 248 309 178 203 246

EMEA 9,281 9,741 10,318 13,549 11,816 13,177

AP 34,203 32,718 31,520 35,067 37,100 35,842

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

GHG EMISSIONS* (metric tons CO2e) 2018 2017 2016 2015 2014 2013

DirectCO2e(GHGScope1) 342,969 368,648 393,233 466,396 468,775 514,714

BreakdownofScope1emissions

Emissionsfromfuel 129,396 128,757 129,954 132,487 130,232 129,004

Emissionsfromrefrigerants

213,573 239,891 263,279 333,909 338,543 385,710

IndirectCO2e(GHGScope2)(Emissions

fromelectricity)193,815 194,674 215,885 246,211 252,061 260,352

Total(Scope1and2emissions) 536,785 563,322 609,117 712,607 720,836 775,066

NormalizedGHGemissions(metrictonsCO

2e/millionUSD)

34.26 39.68 45.09 53.58 55.92 62.76

ReductionofabsoluteGHGemissions(2013baseline)

238,281

ReductionofGHGemissionsintensity(2013baseline)

45%

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

NOx AND SOx EMISSIONS* (metric tons)

2018 2017 2016 2015 2014 2013

NOx 114.85 114.51 115.49 116.20 113.74 107.85

SOx 7.60 7.51 7.03 7.20 6.23 7.39

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

2018 ESG REPORT 34

GHG EMISSIONS BREAKDOWN (Scope 1&2)*

536,785563,322 609,117 712,607 720,836 775,066

2018 2017 2016 2015 2014 2013

35 2018 ESG REPORT

VOLATILE ORGANIC COMPOUND (VOC) AIR EMISSIONS*

2018 2017 2016 2015 2014 2013

DirectVOCemissions(metrictons) 271 272 278 272 259 297

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

REFRIGERANTS DATA* 2018 2017 2016 2015 2014 2013

Refrigerantemissions(Refrigerantlossesinpoundsofrefrigerant)

293,339 338,978 354,895 422,542 408,285 474,054

NormalizedGHGemissions(metrictonsCO

2e/millionUSD)

13.63 16.90 19.49 25.10 26.26 31.23

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

HFC ALTERNATIVES Toreduceproduct-relatedGHGemissions,weareidentifyingHFCalternativesandofferingourcustomersmoresustainableproducts.OneofourClimateCommitmentgoalsistoofferrefrigerantalternativestocustomersthroughoutourportfolioby2030.Webelievewecanspeedupthetransitiontoproductsthathaveasmallerenvironmentalimpactwithoutcompromisingproductquality.

SincelaunchingalltheClimateCommitmentgoalsfiveyearsago,wehaveavoidedapproximately21millionmetrictonsofCO2e

globallyfromourproducts,equaltotheGHGemissionsfromtheenergyusedin2.5millionhomesforoneyear.By2030,ourgoalistoreduceourproducts’carbonfootprintby50millionmetrictons,whichisequaltotheenergyusedin5.9millionhomesforoneyear.Wehavealsoinvestedmorethan$400million-approximately80%-ofourgoaltoinvest$500millionoverthenextfiveyearsinproduct-relatedresearchanddevelopmenttofundthelong-termreductionofGHGemissions.

Readmoreaboutourapproachtoenergyefficientandlowemissionsproductsandpublicpolicyadvocacy.

Approximately36%ofouroperationalScope1and2GHGemissionsarefromelectricityuse.Refrigerants,anessentialcomponentofmanyIngersollRandproducts,arealsoasignificantsourceofemissions.Thesecompounds,alsocalledhydrofluorocarbons(HFCs),havehigherglobalwarmingpotentialthancarbondioxideandaccountforapproximately40%ofourScope1and2emissions.Readaboutoureffortstoreduceourenergyusethroughenergyefficiencyandrenewableenergyintheenergysection.

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

Energy

In2018,ittookapproximately360,000megawatthours(MWh)topowerourmanufacturingplantsworldwide.Weareincreasingouroperationalefficiencyandstrategicallytransitioningtorenewableenergysourcestomanageandoptimizeourenergyuseandincreasebusinessproductivity.

Thisyear,weachieveda9%reductioninenergyintensityasadirectresultofconservationandenergyefficiencyinitiatives.AtourTrane®HVACmanufacturingplantinWaco,Texas,wedoubledenergyproductivityandcutelectricitycostsby70%,whilethefacility’soutputincreased.TheU.S.DepartmentofEnergy(DOE)recognizedourworkinWacowiththeBetterPracticeAward.

Wearepursuingcertificationstandardsatseveralofoursitesaroundtheworld.In2018,weachievedfourISO50001certifiedsites,threeLEED-certifiedsitesandtwoGreenGlobe-certifiedsites.

FUEL-RELATED EMISSIONSIn2018,weincreasedthefuelefficiencyofourfleetby1%,andourabsolutefleetemissionsdecreasedbyapproximately6,310metrictonsCO

2e,

whichisequivalenttotheenergyusedin756homesforoneyear.

Withourstandardvehicle,thehybrid,ourfleetfuelefficiencyimprovedfrom16.9to17.8milespergallonin2018.Wealsousenewvehicleswithimprovedfueleconomyandbetterengineperformancethataremoreeffectivetominimizelargedisplacementvehicles.Throughourefforts,wesaved$1.5millionand6,310metrictonsCO

2eoverthevehiclelife

forourfleet.

ECOWISETM PORTFOLIOTheIngersollRandEcoWiseTMportfolioreducesthegreenhousegas(GHG)footprintofourrefrigerantbearingproductsandoffersourcustomersmoresustainablechoices.EcoWiseproductsarespecificallydesignedfornext-generation,low-globalwarmingpotential(GWP)refrigerantswithoutsacrificingenergyefficiency,safetyandoperatingperformance.Wedoubledthesizeofthisportfolioin2017andaddedtwomoreproductsin2018.

MANAGEMENT APPROACH

2020 Targets: ReduceScope1and2emissionsby35%andtheGHGrefrigerantfootprintofourproductsby50%.Invest$500millioninproduct-relatedresearchanddevelopmenttofundlong-termGHGreduction.ReadmoreaboutourglobalClimateCommitment.

Oversight:OurchairmanandCEOannouncedandsignedourCommitmentattheUnitedNationsClimateSummitin2014.

Approach: IngersollRandaccountsforoperational,productandfuel-relatedemissions.Wedesignprograms,productsandinitiativesthatenableustoreduceemissionsandachieveourtargets.AthirdpartyassuresGHGemissionsdatafromouroperationseveryyear,andweperformedaninternalauditin2017oftheproductGHGcollectionprocesstoensuretheintegrityofourdata.

360,000megawatt hours (MWh) to power our manufacturing plants worldwide

9% reduction in energy intensity as a direct result of conservation and energy efficiency initiatives

70%decrease in electricity costs in our Trane® HVAC manufacturing plant in Waco, Texas

2018 ESG REPORT 36

ABSOLUTE ENERGY USE* 2018 2017 2016 2015 2014 2013 UNITS

Direct(Fueluse) 2,119 2,097 2,115 2,150 2,135 2,119 billionkilojoules(kJ)

Indirect(Electricity) 1,475 1,473 1,501 1,537 1,580 1,541 billionkJ

Total 3,594 3,571 3,616 3,686 3,715 3,660 billionkJ

NormalizedEnergyUse 0.229 0.251 0.268 0.277 0.288 0.296 billionkJ/millionUSD

NaturalGas 881 842 845 912 975 916 billionkJ

Gasoline 889 916 946 902 843 844 billionkJ

Diesel 270 264 252 247 240 298 billionkJ

Propane 63 59 61 72 77 62 billionkJ

AviationFuel 16 16 11 16 0 0 billionkJ

RenewableEnergy 11 0 0 0 0 0 billionkJ

TotalDirectEnergy 2,129 2,097 2,115 2,150 2,135 2,119 billionkJ

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

ENERGY EFFICIENCYEnergyefficiencyiscentraltoourstrategytoreducegreenhousegas(GHG)emissions.Wehavealreadyachievedandexceededour2020targetofa10%increaseinenergyefficiencyfroma2013baselinebyincreasingefficiencyacrossouroperations.SomeofourinitiativesincludeoptimizingHVACsystems;employeeGreenTeamprograms;eliminatingleakageincompressedairsystems;andre-lamping.Overthepastfiveyears,ourtotalenergyefficiencyhasincreasedby23%,andwecontinuetoprogress.

RENEWABLE ENERGY Strategicallytransitioningtorenewableresourcesiskeytoaddressingclimatechangeandcreatinglong-termvalueforallourstakeholders.

In2018,IngersollRandannouncedinvestmentsinonandoff-siterenewableenergy.A1,990kWGEsolarPVpowersystemisnowonlineandgeneratingpoweratourmanufacturingfacilityinTrenton,N.J.A1.35megawatt,directcurrent(MWDC)solarpowersystemisonlineatourColumbia,S.C.facilityanda2,800kWsystemisonlineatourTaicang,Chinaoperation.WecontinuetoevaluateadditionalsolarinstallationsandexpecttocompleteanadditionalinstallationinalargemanufacturinglocationinChinain2019.Theseinstallationsaddressapproximately15%oftheenergyloadsatthelocations,equivalenttosaving560,000gallonsofgasolineortaking1,000carsofftheroad.

Wesignedapowerpurchaseagreement(PPA)thisyearthatwillreplaceapproximately32%ofourUnitedStates(U.S.)electricityusewithgreenenergyandreduceU.S.Scope2GHGemissionsfromelectricityuseby32%.Thisistheequivalentofrecycling26,000tonsofwasteinsteadofsendingittoalandfillandpreserving600acresofU.S.forests.

Goingforward,mostofourrenewableenergymixwillbefromPPAson-siteorwithinasinglegeographicregion.Webelievethatlarge-scaleinvestmentsinrenewablesarevitaltoshiftingtoaclean-energyeconomy.Insomepartsoftheworld,directinvestmentinrenewableenergymakessensewhereasinotherpartsoftheworldwithuncertainelectricitypricesandavailability,on-siterenewableenergyensuresgreateroperationalcontinuity.

MANAGEMENT APPROACH

2020 Target:Optimizeenergyuseby(1)increasingenergyefficiencyinownedfacilitiesby10%;(2)increasingfuelefficiencyinourfleet;and(3)evaluatingalllong-termbuildingleasesmorethan100Ksqft.againstenvironmentalandenergycriteria.

Oversight: ResponsibilityformanagingenergyextendsacrossmultipleworkgroupsandfunctionsthataregovernedbytheuseofStandardWorkaspartofourBusinessOperatingSystem.

Approach:Weareincreasingouroperationalefficiencyandstrategicallytransitioningtorenewableenergysourcestomanageandoptimizeourenergyuse,andincreasebusinessproductivity.SomeofourenergyefficiencyinitiativesincludeoptimizingHVACsystems;employeeGreenTeamprograms;eliminatingleakageincompressedairsystems;andre-lamping.

37 2018 ESG REPORT

EnergyEfficientandLowEmissionsProducts

Investinginopportunitiesrelatedtoenergyefficiencyandenvironmentalsustainabilityinbuildings,industrialprocessesandtransportationaroundtheworldfuelsourgrowthstrategy.

HVACandlightingsystemsareagreatopportunitytoreduceenergyconsumptionincommercial,industrialandresidentialbuildings–whichaccountfornearlyhalfofglobalenergyconsumption.Asacompanyattheforefrontofsustainability,developingenergyefficientsolutionsiscoretoourbusinessstrategy.Today,approximately25%ofourrevenueisfromproductsandservicesthatcontributetothecleanenergytransition.OneexampleofourworkwithcustomerswaswithHoneywell.Weprovidedanefficient,cost-effectivesolutionforcoolingtheworld’slargestunderseatunnel,theChannelTunnel.Thesystemsavedenoughelectricitytopower1,000householdsafterjustoneseasonofoperation.

ProductLifeCycle

Manyofourproductsarebuilttooperatefor15to20years.Designingthemtomeetcurrentandfutureregulationsaddsvalueforourcustomerstodaywhilehelpingthemprepareforthemorestringentregulatoryenvironmentstocome.By2020,ourgoalistoperformalifecycleassessment(LCA)on100%ofnewproductstounderstandandlookforwaystoreducetheirenvironmentalimpact.

TheIngersollRandProductDevelopmentProcess(IRPDP)standardizeslifecycleconsiderationsinproductdevelopmenttoensurewearemeetingcustomerneeds,assessingrisk,embeddingsustainabilityanddevelopingintellectualproperty.IRPDPmodulescanbeappliedatvariousproductdevelopmentstages.In2018,IRPDPhasgeneratedorimprovedmorethan115productdevelopmentprojects.

Inphase2ofIRPDP,theproductteamidentifiesenvironmental,healthandsafety(EHS)risksorsustainabilityconsiderationsincomplyingwithrelatedcodesthataffecttheproduct.Bothourextensive(full)LCAsandourstreamlinedLCAscoverproductimpactsfromcradletoend-of-use,includingallstages–rawmaterials,manufacturing,usephaseandendofuse.

PRODUCT LIFE CYCLE/PRODUCT END-OF-USE DATA

%ofnewproductsreceivingLCAbyEOY2018 21%

MANAGEMENT APPROACH

2020 Target: Establishportfoliosthatmeetworld-classenvironmentalcriteriaforenergyconsumptionandemissionsfromtheuseoftheproduct.

Leadership:Ourseniorvicepresidentandchieftechnologyofficeroverseestheproductdevelopmentprocessincludingengineering,innovation,productdevelopmentandgrowthstrategy.

Approach:Severaltoolshelpustrackandmanagetheenergyefficiencyofourproducts.Recently,wecreatedaproductGHGcalculatortotrackourproduct-relatedemissions,includingemissionsgeneratedfromelectricityuse.

MANAGEMENT APPROACH

2020 Target:PerformanLCAon100%ofnewproducts.

Oversight: Ourseniorvicepresidentandchieftechnologyofficeroverseestheproductdevelopmentprocessincludingengineering,innovation,productdevelopmentandgrowthstrategy.

Approach: AspartoftheIRPDP,ourProductFootprintStudytool–astreamlinedLCA–addressesmaterialuseandallowsforacomparisonbetweendesignscenarios.Byincorporatingthelifecycleconsiderationsduringthedesignphase,weidentifyandimplementotherenvironmentalimpactreductionsthatincludepackaging,recycling,andmanufacturingimprovements.

2018 ESG REPORT 38

Materials

AtIngersollRand,wemanufacturemanyofourproducts’componentsmadefromavarietyofmaterialsincludingsteel,copperandaluminum.Weworkcloselywithsupplierstoensuretheyshareourcommitmenttosustainability,includingreducingpackaging,shippingcostsandrelatedemissions.Readmoreaboutourcommitmenttosupplychaintransparencyandperformance.Formoreinformationaboutourmaterialsmanagementstrategy,refertoourForm10-K.

MATERIALS DATA

Savingsinemissionsfromreturnablepackagingprojects(annually)ofmorethan1,000tonsofCO2e;reductioninsolidwastefromreturnablepackaging

projects(annually)ofmorethan1,000tons.

PRODUCT TAKE-BACK AND RECYCLABILITY TheIngersollRandProductDevelopmentProcess(IRPDP)accountsforallaspectsofproductdesign,includingmaterialsmanufacturing,theusephaseandend-of-useconsiderations.Thisapproachallowsustoidentifyandreduceenvironmentalimpactsthroughpackaging,recyclingandmanufacturingimprovements.ThroughtheIRPDP,productteamsevaluateandconsidertheuseofrecycledcontentinnewproductdesign.Wehavealsodevelopedspecificend-of-usemanualsformultipleproductsandmanyofourbusinesseshavematerialstake-backprograms.Forexample,ThermoKing® deploys independentdealerstotakebackrefrigerationunitsforresaleinsecondarymarkets.

PACKAGINGWearecommittedtoeliminatingpackagingwasteincludingconsiderationsfortransport,packagematerialrecyclingandwastedisposalconcerns.

Toachievethis,ourpackagingengineersdevelopinnovativeandefficientsolutionsforpackagingfinishedgoodsandparts.Wehaveareturnablepackagingprogramat14NorthAmericanmanufacturingsitestoreducemorethan2,500poundsofsolidwasteproducedfrompackagingannually.

Ourpackagingguidelinesforsuppliersaimtodecreaseuseofhazardoussubstances,reducewasteandemissionsandincreasereuseandrecyclingofmaterials.Preferredpackagingsystemsarereturnable,reusableorrecyclable.

Water

Waterqualityforintakeanddischargeisimportantatalloursites.WetrackourwateruseateachfacilitymonthlythroughourGensuiteenvironmentmanagementsystem.TheWaterWatch™moduletrackseffluentdischargedataandtrendsagainstregulatorylimitationsandreportingrequirements.Foreacheffluentlimit,wedefinedaninternalactionthresholdtorecognizechangingconditions,andpretreatmentsystemsareadjustedbeforearegulatorydischargelimitisexceeded.Ourprocessdischargewatersareinternallytreatedandthendischargedwiththesameorhigherqualityastheintakewater.

Ouroverallwaterusein2018decreasedby5.5%comparedto2017.Atsiteslocatedinwater-stressedregions,wereduced2018waterusebynearly1.5%.

ANALYZING WATER STRESSED REGIONS WeperiodicallyconductariskassessmentusingtheWorldResourcesInstitute(WRI)Aqueduct™toolanddesignatesitesthatscoremedium-highorhighforwaterstress.Weconsiderphysicalriskqualityandquantityaswellasregulatoryandreputationalrisk.Sevenofoursites–whichaccountfor7%ofourtotalwateruse–areinareasofmedium-hightohighwaterstress.Wereducedwateruse38%atthesesitessince2013,significantlyexceedingour2020targettoreducewateruseby25%.

39 2018 ESG REPORT

WATER DATA* 2018 2017 2016 2015 2014 2013

WaterUse(millioncubicmeters) 3.20 3.39 3.30 4.21 4.04 3.74

Normalizedwateruse(cubicmeters/millionUSD) 204 239 245 316 314 303

Wastewaterpermitexceedances 0 2 4 8 16 14

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

Waste

Twenty-fourofourmanufacturingsitesachievedzerowastetolandfillin2018,andwereducedournon-hazardouswastetolandfillby2.5%comparedto2017.Wealsoincreasedourrecyclingratebymorethan11%comparedto2017.Inall,werecycledsixpoundsforeverypoundofnon-hazardouswastesenttolandfill.

WASTE DATA* 2018 2017 2016 2015 2014 2013

Totalhazardouswastegenerated(metrictons) 1,593 1,344 1,189 1,257 1,507 1,523

Normalizedhazardouswaste(metrictons/millionUSD) 0.102 0.095 0.088 0.094 0.12 0.12

Totalnon-hazardouswastegenerated(metrictons) 40,929 35,809 34,644 33,118 34,642 35,900

Normalizednon-hazardouswaste(metrictons/millionUSD)

2.61 2.52 2.57 2.49 2.69 2.91

Non-hazardouswastetolandfill(metrictons) 5,261 5,397 5,951 6,552 7,241 6,945

Normalizednon-hazardouswastetolandfill(metrictons/millionUSD)

0.34 0.38 0.44 0.49 0.56 0.56

Non-hazardouswasterecycled(metrictons) 31,461 28,198 26,815 25,035 26,068 24,788

Normalizednon-hazardouswasterecycled(metrictons/millionUSD)

2.01 1.99 1.99 1.88 2.02 2.01

*Slightadjustmentsmadetopreviouslyreporteddatafor2013-2017toreflectchangesinouroperationalfootprint.

5.5%Decrease in overall water use by Ingersoll Rand in 2018

1.5%Decrease in water use at sites located in water-stressed regions

2.5%Reduction in our non-hazardous waste to landfill

11%Increase in our recycling rate

2018 ESG REPORT 40

Social Sustainability

OurPeopleandCitizenship

IngersollRand’scommitmentsasanemployer,businesspartnerandneighborcontinuetogrowandevolvealongwithouroperationalexcellenceandhigh-performingcultureofcontinuousimprovement.Tous,socialsustainabilityisoperatingwithasenseofpurposeandputtingmorebackintosocietythanwetakeout.

2018 ESG REPORT 41

Asacompanythatconnectscomplexmachineswithpeopleandtheirenvironment,weareinauniquepositiontoapplyourinnovativesolutionsandexpertisetoaddresschallengeslikeclimatechange,ur-banizationandfoodinstability.Our2020sustainabilitytargets–targetswesetfiveyearsagoandareontracktoachieve–leverageourknowledge,resourcesandinnovationstohelppeopleandcommuni-tiesrespondtotheimpactsofourchangingworld.Wehaveimprovedaccessibilitytowellnessprogramsforouremployees;strengthenedouremployeeengagementscore;createddiverseslatesofcandidates;expandedcompetencyinenergyandresourceefficiency;inspiredSTEMeducation;addressednutritionandfoodwastereductionandsupportedhousingandshelterneeds.

Ouremployees,winningcultureandcommitmenttohumanrightsarethefoundationofourcompany.Investingintraininganddevelopmentwhileactingtopromotediversityandinclusiondrivesinnovationsthatdeliverlong-termvalueforourstakeholders.Weachievemeasurableprogressbyleveragingthepowerofourbusinessandourpeoplethroughstrategicphilanthropyandacultureofvolunteerismtohelppeopleandcommunitiesrespondtotheimpactsofourchangingworld.

EverydayatIngersollRand,wethinkbiggerandactboldertoalignourinvestmentswiththegreatestsocietalneedsthatreflectthediversityofourpeople,marketsandlinesofbusiness.Theprogressanddatareportedinour2018ESGReportareevidencethatbychallengingourselvestohelpsolvetheseglobalchallenges,wearedoingtherightthingforourcommunities,theenviron-mentandourbusiness.

OurEmployees

Wehave44,664employeesand3,819contractorsworldwideatIngersollRand.Werespectandvaluediversecultures,backgroundsandperspectivesandunderstandthatthesuccessofourstrategiesrequireshighemployeeengagement.Ourgoalistocreateadynamic,progressiveenvironmentwhereallemployeeswinwhenthecompanywins–andwhereourpeoplecancontinuetolearnandthriveintheircareerswithus.Readmoreaboutourcompanycultureandemployees.

INGERSOLL RAND POPULATION

REGION EMPLOYEE TYPE FEMALE MALE GRAND TOTAL

AsiaPacificHourly 8.9% 299 91.0% 3,043 3,342

Salaried 32.3% 1,422 67.7% 2,975 4,397

EMEAHourly 3.7% 107 96.3% 2,812 2,919

Salaried 28.4% 952 71.6% 2,399 3,351

IndiaHourly 0% 0 100% 248 248

Salaried 11.8% 189 88.2% 1,409 1,598

LatinAmericaHourly 15.0% 161 85.0% 911 1,072

Salaried 30.1% 395 69.9% 916 1,311

NorthAmericaHourly 23.4% 3,188 76.6% 10,462 13,654

Salaried 28.3% 3,608 71.8% 9,164 12,772

GrandTotal Total 23.1% 10,321 76.9% 34,339 44,664

42 2018 ESG REPORT

HumanRights

Toprovideenergy-efficienttechnologysolutions,IngersollRandmustensureourpeopleandoursuppliersshareourvaluesandadheretoourstandardsofhumanrights.

In2010,weadoptedourGlobalHumanRightsPolicy,availableonourwebsite,tostrengthenourcommitmenttoouremployees,businesspartners,customersandcommunities.Thispolicyrepresentsourstandardsforworkingconditionsandhumanrights,shapedbyinternationalorganizationssuchastheInternationalLaborOrganizationandtheUnitedNations.Itprohibitschildandforcedlabor,discriminationandharassmentintheworkplace,andaddressesfreedomofassociation,workenvironmentstandards,compensationandemployeeprivacy.ThroughourModernSlaveryandHumanTraffickingStatement,wecommittedtotakingstepstoensurethathumantraffickingandforcedlaborisnottakingplaceinoursupplychainorbusiness.Thestandardsoutlinedinourpolicyandstatementarefundamentaltohowwedobusinessinaccordancewithoursustainabilityvisionandcorevalues.

Topromoteandenforceourpolicyandexpectations,IngersollRandcommunicatesthepolicyto100%ofouremployeesthroughourCodeofConducttraining.Weimplementedafulltrainingcoursededicatedtoanti-humantrafficking,inwhichsalariedemployeesinrolessuchasLegal,HumanResourcesandGlobalIntegratedSupplyChainareassignedcoursesbasedonfunctionandassociatedrisks.IngersollRandencouragesallemployeeswhobelieveourpolicyhasbeenviolatedtoreportviolationsthroughourEthicsHelpline;wedonottolerateretaliatoryactions.

Weholdoursupplierstothesamehighstandardstowhichweholdourselves.Todothat,wescreen100%ofnewsuppliersonhumanrightsandlaborpractices.OurBusinessPartnerCodeofConduct(BPCoC),whichoutlinesourexpectations,isintegraltoourstandardpurchaseagreement.Wealsomonitorandreinforceourcodeandpolicybyannuallysurveyingasampleofthetop80%ofourdirectmaterialsupplierstoconfirmtheiradherence.Readmoreaboutoursupplychainmanagementandapproachtosupplychaintransparencyandperformance.

Management Approach

2020 Targets: Retain95%ofkeytalent, achieveemployeeengagementrateof80%andprovideaccessibilitytowellnessprogramsto75%ofouremployeebase.

Oversight:OurBenefitsstrategyanddesignisgovernedbytheBenefitsDesignCommittee(the“BDC”)underauthoritydelegatedbytheBoardofDirectors.TheBDCcomprises3ExecutiveLeadershipTeammembersandischairedbytheSeniorVicePresident,HumanResources,CommunicationsandCorporateAffairs.

Approach:Weoffercomprehensivebenefitspackagesforfull-timeemployeesaroundtheworldandtrackouremployeeengagementscorethroughourannualemployeesurvey.

CompanyCulture

Ourvalues–integrity,respect,teamwork,innovationandcourage-continuetoserveasthecatalystforourprofitablegrowthandhigh-performanceculture.Whatmatterstooursuccessisnotjustwhatwedo,buthowwedoit.Engagedemployees-whoarepassionateaboutwhattheydo–arecriticaltodeliveringforourcustomers,whichultimatelycreatesvalueforallourstakeholders.Thisformulaisthebasisforourwinning,high-engagementculture,whichdrivescontinuousimprovementacrosstheorganization.

Builtoncommitmentstosafetyandinvestinginemployees,ouremployeeengagementscoreremainsattop-tierlevelsinourindustry.Acrossourenterprise,westrivetocreateanopenreportingcultureandsustainasafety-focused,zeroinjuryandincidentphilosophythatisatoppriorityforall.Additionally,atalllevelsofthecompany,weofferlearningsolutionsthatfostercollaboration,innovationandachievement.Readmoreaboutourapproachtooccupationalhealthandsafetyandtraininganddevelopment.

Competitivebenefitsareanimportantpartofourapproachtoinvestinginemployeesandattractingandretainingthebesttalent.Weofferbenefitsandprogramsthatsupportemployeesinboththeirprofessionalandpersonallives.HealthProgress,ourwell-beingprogram,offersemployeesandtheirspousesenrolledinourmedicalplantheopportunitytoparticipateinabroadvarietyofwellnessactivitiestoearnsignificantfinancialrewards.Theprogramincludesphysicalactivity,healthcoachingandfitnessreimbursement.

Wealsoofferacomprehensivebenefitspackagestoourfull-timeemployees,includinghealthcoverage(medical,dentalandvision),lifeinsurance,disabilityinsurance,employeesavingsprogram(401K)andemployeeassistanceprogram(EAP).Additionally,wemaintainaparentalleavepolicy,provideadoptionassistanceandhaveatuitionassistancereimbursementprogram.Manyofthesebenefitsarealsoofferedtoourpart-timeemployeeswhoworkbetween20-35hours.Forthosewhoworkunder20hours,IngersollRandoffersanEAP,retirementbenefitsandanemployeepurchaseprogram.Readmoreaboutourbenefitsprogram.

2018 ESG REPORT 43

PARENTAL LEAVE DATA (U.S.)* FEMALE MALE

Employeeswhowereentitledtoparentalleave 5,102 14,705

Employeeswhotookparentalleave 99 307

Employeeswhoreturnedtowork 97 307

Employeeswhoreturnedtoworkandwerestillemployedafter12months 92 282

Returntoworkrate 98% 100%

Retentionrate 93% 92%

*Parentalleavebenefitsvarybylocationinaccordancewithlocallegalrequirements.DataintableisforU.S.locations.

DiversityandInclusion

AtIngersollRand,wearebuildingaculturethatisinclusiveandrespectfulatitscore.Diverseteamsaremoreinnovative,betteratsolvingproblemsanddelivergreaterresultsforourcustomersandshareholders.

Attheendof2018,ourworkforcewas23.1%femaleand21.7%ofleadershippositionswereheldbywomen.OnourBoardofDirectors,fouroutofthe12membersarewomen.Westrivetocontinuegrowingthediversityofourworkforceandensuringfaircompensationforouremployees.Readmoreaboutouremployeesandworkplacediversity.

Thisyear,weworkedwithTheManufacturingInstitutetobringmorethan200womenintheindustrytogetherthroughtheSTEMForwardprogram.Thistwo-dayexperienceprovidednetworking,mission-criticaldataandtimeforsolutionbuildingamongtheemployeesatIngersollRandandothermanufacturingcompaniesnearourheadquartersinDavidson,N.C.

Ourdiversityandinclusionofficeoffersarangeoflearningexperiencesformanagersandemployeesthathelpexpandourcultureofinclusion.Forexample,ourWomen’sLeadershipProgram(WLP)helpsacceleratecareeradvancementforhighpotentialwomen.ThesuccessofWLPhasledtothelaunchoftwoadditionalcareerdevelopmentprogramsforwomenwhichwillbeginin2019.ThediversityandinclusionofficealsohostsseveralBridgingConnectionssessionsperyearthatcreateasafespaceforemployeestospeakopenlyabouttopicsrelatedtorace,gender,ethnicity,sexualorientationandmore.In2018,morethan2,800employeesparticipatedinthisprogram.

EMPLOYEE RESOURCE GROUPS AND INCLUSION NETWORKSWehaveeightemployeeresourcegroups(ERGs)companywidewhichreflectthediversityofourworkforce.OurERGsincludethefollowing:

• Women’sEmployeeNetwork(WEN)

• BlackEmployeeNetwork(BEN)

• Veteran’sEmployeeResourceGroup(VERG)

• AsianEmployeeResourceGroup(AERG)

• GlobalOrganizationofLatinos(GOL)

• DisabilityEmployeeResourceGroup(VisAbility)

• LGBT+AEmployeeResourceGroup(Pride)

• InterGenerationalEmployeeResourceGroup(iGEN)

Management Approach

2020 Target: Createslateswithdiversecandidates.

Oversight:In2018,weappointedadirectorofdiversityrecruitingtospearheadoureffortstoattractabroadrangeoftalenttojointheIngersollRandteam.OurDirectorofDiversity RecruitingisresponsibleforincreasingengagementwithleadingprofessionalassociationsthathelpwomenandhistoricallyunderrepresentedgroupsadvancetheircareersinSTEM.

Approach:AspartofourParadigmforParitypledge,weareimplementingacomprehensiveactionplantobringgenderparitytoourleadershipstructureby2030.Theleadersofeverybusinesshavediversityandinclusionactionplansthataddressabroadrangeofbestpracticesandcreatelearningexperiencesformanagersandemployees.ProgressagainsttheseplansisevaluatedquarterlybytheChairmanandCEO.

44 2018 ESG REPORT

OurnewestERG,VisAbility,wascreatedin2018withtheaimofmakingboththevisibleandtheinvisibledisabilitiesmorepartofthedialogueinasafeandcomfortablemanner.VisAbility’smissionistopromotedisabilityawareness,equipmanagerstocreateopportunitiesforeveryemployee,andtosupportemployeeswithdisabilitiesorthosewhocareforapersonwithadisability.Additionally,wehaveeightInclusionNetworksestablishedatmanufacturingsitesandsalesofficesaroundNorthAmerica.

PARADIGM FOR PARITYIn2017,webecamethefirstinourindustrytoentertheParadigmforParityCoalition,apledgetobringgenderparitytoourcorporateleadershipstructureby2030.Aspartofourpledge,weareimplementingacomprehensiveactionplanto(1)minimizeandultimatelyeliminateunconsciousbiasintheworkplace;(2)significantlyincreasethenumberofwomeninsenioroperatingroles;(3)measureandcommunicateprogressbothwithseniorleadersandpublicly;and(4)buildcareerprogressandcreateaculturechangeforflexibleworkarrangements.

In2018,wemadesignificantprogressbyrefreshingandre-deployingouronlineUnconsciousBiastraininganddevelopinghiringpractices.Werequiremanagerstoreviewthistrainingbeforeinterviewingcandidates.Wealsoengagedmanyofourseniorleadersthroughatwo-dayDiversityLearningLabandarecontinuingtheconversationthroughquarterlyreviewsofourgenderrepresentationdata.In2018,weincreasedwomeninleadershiprolesby1%;thatprogresswillacceleratein2019.

CEO ACTION FOR DIVERSITY & INCLUSION Aspartofourstrategytofosterdiversityandinclusion,weparticipateinnumerouscoalitionsandpledges.Forexample,wejoined150ofAmerica’sleadingCEOsinapledgetocultivatediversityandinclusionintheworkplacethroughtheCEOActionforDiversity&Inclusion.

EXTERNAL RECOGNITION OurongoingeffortshavebeenrecognizedforawardsincludingrecognitiononThomsonReuters’annualDiversity&InclusionIndex.Additionally,forthesecondconsecutiveyear,theHumanRightsCampaignFoundationawardedusaperfectscoreof100%inworkplaceequalityonitsCorporateEqualityIndex(CEI).ThissustainedleadershipontheCEIrecognizesourwinningcultureandcommitmenttoempoweringpeople.

TrainingandDevelopment

Ahigh-engagementculturerequiresacommitmenttopersonaldevelopment.Wehelppeoplewithvariedskillsandexperiencesworkcollaboratively,makeadifferencetogetherandgrowintheircareers.TheIngersollRandBusinessOperatingSystemprovidesouremployeeswiththetoolstheyneedtomasterskills,collaborate,dealwithconflictandsolveproblemsasateam.Weinvestinourpeoplesotheycanlearn,growandthrivewiththecompany,whichalsodrivesoursuccess.Weofferlearningsolutionsthatfocusonemployees’abilitiestoinnovate,collaborateandbuildstrategiccapabilitiesneededtoachieve.

TRAINING AND CAREER DEVELOPMENTOurtraininganddevelopmenteffortsincludepeopleatalllevelsofthecompany–fromhourlyemployeestoexecutives.Specificbusinessesalsodevelop,maintainandsupportproductortechnicaltrainingforemployees.Certainbusinessesoffertraininganddevelopmenttotheirdealersanddistributors.

ANNUAL DEVELOPMENT PLANSAtIngersollRand,webelievethatthebestlearninganddevelopmenthappensonthejob.Everysalariedemployeehasanannualdevelopmentplan,whichincludesdiscussionswiththeirmanageraboutkeyworkprojectsorexperiences,coaching,mentoringandformallearningopportunities.Thisdevelopmentprocessenablesouremployeestoperformattheirbestintheircurrentroleandprepareforfutureroles.

In2018,98%ofoursalariedemployeesparticipatedinadevelopmentconversationwiththeirmanager.

INGERSOLL RAND UNIVERSITYEnterprise-widetraininganddevelopmentprogramsaremanagedcentrallythroughIngersollRandUniversity(IRU),whichweestablishedin2003toprovideeducationanddriveacohesivecompanyculture.Overtheyears,IRUhasexpandeditsscopefromexecutiveandleadershipdevelopmenttoincludethedevelopmentofsalesmanagers,salesprofessionals,productandpricingmanagersandhourlyproductionworkers.

IRUoffersonlineprofessionaldevelopmentcoursesinmultiplelanguagesforglobalemployeesatalllevels.Forexample,employeescanself-enrollandparticipateinprojectmanagementlearningpathswhichqualifythemtobeabletotakethetestfortheirProjectManagementInstitutecertification.

IRUisstaffedwithlearninganddevelopmentexpertsandisleveragedasacenterofexpertiseforallbusinesstrainingteams.Programsdevelopedanddeployedthroughtheprogramhavebeenexternallyrecognizedasbest-in-classbymultipleorganizationsincludingtheAssociationforTalentDevelopment(ATD).

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ExamplesoftheenterpriseprogramsofferedgloballythroughourIRUinclude:

Team Leader Development Program: An8-weekexperientialdevelopmentprogramthatengages,teachesandempowersfrontlineleaderstomakegoodbusinessdecisionsthroughablendofincreasedtacticalknowledge,coachinganddevelopmentofleadershipandproblem-solvingskills.Currentlythereareapproximately40certifiedfacilitatorswhohavetaughtnearly900participantsin36locationsglobally.Amongthegraduates,wehavea99.5%retentionrateandwearealreadyexperiencingbusinessbenefitsasthesehourlyteamleadersaredemonstratingleadershipandproblem-solvingontheplantfloor,whichishavingapositiveimpactonquality,productivityandemployeeengagement.

Leading the IR Way (LIRW): Developsnewleaderswiththemindsetandskillstocreateandcultivateawinningculturethatdeliversbusinessresults.Withresearch-basedbestpracticesasthefoundation,andthegoalofacceleratingsuccessfulleadershiptransitionfromindividualcontributorstoleaderroles,ournewmanagerscancontributefastertothesuccessoftheirteamsandtheorganizationandavoidthemistakesthatoftenunderminethesuccessofnewleaders.LIRWprovidesaforumforleaderstounderstandworkdoneacrosstheorganizationandthecommonchallengesfacedbyleadersinallbusinessesandfunctions.Wetypicallydeliverbetween10-14cohortsperyearglobally.

Women’s Leadership Program (WLP): Uniquecohortprogramforhighpotentialwomenprovidesanopportunitytonetworkwithotherwomenleaders,gainindividualinsightsthroughamentoringpartnershipandbuildtheirleadershipskillsandconfidencethroughavarietyofspeakers,experiencesandassessments.Womeninthisprogramgainexposuretoseniorleaders,contributetobusinessgrowthandlearnhowtonavigatethecorporateculturethroughIngersollRand-specificactionlearningprojects.Since2012,140womenhavegraduatedfromtheprogram,27%ofwhomhavebeenpromoted,andmanyhaveassumedexpandedroles.Inmorethansevenyears,turnoverofparticipantshasbeenlessthan5%ofthiscriticaltalentpool.

Sales Management Excellence (IRSMX): Developssalesmanagementcapabilityinsalesmanagersandtheirsalesleaders.IRSMXisanchoredbya3.5-dayworkshopandincludesself-study,coaching,andimmediateapplicationthrougha90-daycoachingcyclewithanexpertcoach.Withapproximately10-15cohortsperyear,wehavedevelopedover62%ofthesalesmanagersandsalesleadersinourorganization.

ADDITIONAL TRAINING AND DEVELOPMENT PROGRAMSApillarofourinvestmentinouremployeesareinnovativetraininganddevelopmentprograms.Someoftheseprogramsinclude:

Career Development Program:Designedtohelpallemployees–hourly,technicianandsalaried–growanddeveloptheircareerandcapabilitiesatIngersollRand.CareerProgressincludesresourcessuchasMyCareerNavigator,whichhelpsemployeesassessandplantheirshort-andlong-termcareerdevelopment.

My Encore Launch: Designedtoleveragetheexpertiseandexperienceofretirement-eligibleandretiredemployeesbyprovidingoptionstoassimilateintoretirementandcontinuetoengagewithIngersollRandpostretirement.MyEncoreprovidestwooptions:PhasedRetirementwhichservesasatransitionalapproachtoformalretirementbyworkingparttimeforaspecificperiod,andPostRetirementwhichenablesaretireetoreturnforproject-basedworkinacontingentworkarrangementorviadirecthire.Thisprogramallowsemployeestohaveanadjustmentperiodwhereknowledgecanbetransferredandshared,therebylimitingthepotentialcustomerimpact.Retireeresourcesareidealforleveragingtheirexperiencetoaidinthedevelopmentandmentoringofothersaswellasprovidinguniqueproblem-solvingskillsandtechnicaltraining.

Wehavehad25participantssinceinceptioninDecember2017,supporting‘gig’andproject-basedworkinthefieldsofaccounting,humanresources,engineering,training,quality,procurementandprojectmanagement.

ReLaunch program: TheReLaunchProgramisaprogressivenewprogramwearepilotinginEngineering&Technology.Itisa12-week,paidprofessional“returnship”opportunityforengineerswhohavesteppedawayfromtheircareersandarereadytoputtheirpassionbacktowork.

Inthisprogram,individualsareprovidedprofessionaldevelopment,mentoring,trainingandnetworkingtore-entertheworkforce.ReLaunchprofessionalsworkwithseniorengineersonchallengingprojects,tiedtoIngersollRand’scurrentandnewproducts.Responsibilitiesmayincludeworkintheseareas:componentdesign;ideageneration;projectmanagement;lifecycleengineeringactivities;qualityimprovements;engineeringprocessdevelopmentandimprovement;andtestobjectivesettingandmethodology.Participantsgainexposuretodesignintentandperformance,andin-depthknowledgeofourequipmentandproductdevelopmentprocess.Uponsuccessfulcompletionoftheprogram,individualsareconsideredforfull-timeemployment.

46 2018 ESG REPORT

Field Worker of the Future:Weareembracingtechnologythatmakesworkeasierandaccelerateslearningforourfieldtechnicians.IngersollRandservicetechnicianswillhaveaccesstoreal-timedataandliveenvironmentconditionssotheycanmorequicklyandeffectivelyassessopportunitiesandthreats,whichallowsthemtodiagnoseandresolveproblemsfaster.Withnewtechnology(similartoGoogleGlass)wecanenableseniortechnicianstoremotelycoachjunioremployeeswhoareonlocationatcustomersitesandinreal-time.Seniortechnicianswillbeableto“see”theequipmentandresolveproblemswiththeon-sitetech,offeringcoachingandknowledgetransfer,radicallyacceleratingtechnicianlearning,andsatisfyingcustomersmorequickly.

Readmoreaboutourapproachtotraininganddevelopment.

Anti-Harassment

Weprovideannualanti-harassmenttrainingtoallsalariedemployeesworldwideandmakeourGlobalHumanRightsPolicyavailableforthemtoreviewonourIntranetportal.WealsomakeourU.S.EqualEmploymentOpportunityPolicy,PolicyProhibitingHarassmentandHarassmentorDiscriminationPolicyandProceduresavailabletoourU.S.-basedemployeesthroughourIntranetportal.

ANTI-HARASSMENT DATA2018 2017 2016

Target Actual Target Actual Target Actual

U.S.salariedemployeestrainedonanti-harassment 100% 100% 100% 100% 100% 100%

Employeesabletoaccessanti-harassmentpolicy 100% 100% 100% 100% 100% 100%

OccupationalHealthandSafety

Ourapproachtocreatingandsustainingasafety-focused,zeroinjuryandincidentculturestartswithourChairmanandCEOandpermeatestheentireorganization.Althoughwemissedinternalinjuryandillnessimprovementtargets,wecontinuetosignificantlyexceedinjuryaverages,ascomparedtotheBureauofLaborStatistics(BLS)rateforsimilarindustrialclassificationcodes.

Industry Total Recordable Incident Rate Lost Time Injury Rate

Rate Ingersoll Rand Industry Average Ingersoll Rand Industry Average

Services 0.91 2.7 0.15 1.1

ClubCar®manufacturing 0.65 1.9 0.09 0.5

CTSmanufacturing 0.95 1.8 0.18 0.6

HVACandRefrigerationequipmentmanufacturing

0.81 3.1 0.09 0.6

Management Approach

2020 Targets:Createcareerdevelopmentprogramsfor95%ofemployeesandachieveGrowthandDevelopmentIndexscoreof75%forstrategiccapabilitydevelopment.

Leadership:OurenterprisetraininganddevelopmentstrategyisgovernedbyastrategyboardforIngersollRandUniversity.OurChiefLearningOfficerchairsthisboardandprovidesoversight,leadershipandday-to-daygovernanceofourenterprise-wideprograms.OurChairmanandCEO,ChiefHumanResourcesOfficer,ChiefTechnologyOfficer,andExecutiveVicePresidentalsositonourstrategyboard,alongwithrepresentationfromourBusinessUnitpresidentsandEnterpriseFunctionSVPs.

Approach:IngersollRandconductsayearlyreviewprocesstoalignthebusinessrequirementswiththetraininganddevelopmentneedsofouremployees.Thisreviewprocessincludesinputfromexecutivestakeholdersandlearningmanagerstocloseanyidentifieddevelopmentalgapsthroughouttheorganization.

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Ourinjurypreventioneffortsfocuson:

• ExpandingourinternalauditprocesstoincludeallEHSmanagementsystemelements

• ContinuingtomatureourBehavior-BasedSafety(BBS)program;and

• Expandingourergonomicsprogramandaggressivelyreducingriskfactorsattargetedworkstations.

WeexpandedourEHSauditingprogramthisyeartoincludeourinternalEHSmanagementsystemrequirements,ratherthanonlyregulatoryrequirements.Indoingso,weensurethatweimplementconsistentexpectationsacrosstheenterprisethatwillcreateandsustainasafeworkenvironmentforouremployees.

OurBBSprogramisbuildingacultureofcollectiveresponsibilitybyestablishingastructuretopromoteopendiscussionswithmanagementregardingwork-relatedhazardsandsafetyissues.SafetyexpectationsarecommunicatedthroughquarterlyCEOtownhallmeetingsaswellasmonthlyenvironmental,healthandsafety(EHS)meetingsatboththefacility-andservice-organizationlevels.Thesemeetingsraiseawarenessofsafetyrisksandpreventativemeasuresandprovideouremployeeswithopportunitiestosharebestpractices.

Theresultsofourannualemployeeengagementsurveyreflectedourongoingeffortstocreateasafety-focusedculturewith93%ofemployeesstatingtheybelieveIngersollRandiscommittedtoemployeesafety.

IngersollRandisalsofocusedonergonomicsawarenessandreducingmanualmaterialhandling,eliminatingposturalproblemsandreducingrepetitivenessalongproductionlines.

OCCUPATIONAL HEALTH AND SAFETY DATA

In2018,weachieveda9.46%increaseinTRIRandwereflat(0%)inLTIR(per200,000hoursworked).

Thecompanyexperienced1work-relatedfatalityin2018.

Thecompany’semployees,includingsupervisedcontractemployees,workedatotalof95,595,724hoursin2018.

Lost Time Incident Rate 2018 2017 2016 2015 2014

Numberofemployeespermillionhoursworked 0.56 0.56 0.61 0.64 0.84

CorporateCitizenship

Attheircore,ourcitizenshipinitiativesareinvestmentsinourcommunities;weaimtoputmorebackintosocietythanwetakeout.Toachievemeasurableimpact,wesetproactive,strategic2020targets.Focusedonchallengesthatalignwithourcorestrengthsandbusinessgoals,IngersollRandhasfourcitizenshippriorities:(1)expandcompetencyinenergyandotherresourceefficiency;(2)inspireSTEMeducation;(3)addressnutritionandfoodwastereductionand(4)supporthousingandshelterneeds.

OUR INVESTMENTSAcrossourfourpriorities,weprovidegrantsthroughtheIngersollRandFoundationandcharitablepartnerships,likeourlongstandingworkwithUnitedWay.Additionally,atourlocationsaroundtheworld,ouremployeesdedicatetheirtimeandapplytheiruniqueexpertisetovolunteerlocallyandmaketheircommunitiesbetterplacestoliveandwork.In2018,ouremployeesspent30,492hoursvolunteering,equivalentto$752,847.ThroughtheFoundation,oursignatureNationalCoalitionofCertificationCentersprogram,charitablefundraisingandmanagementoverheads,ourtotalphilanthropicgivingtotaled$6.7millionin2018.

GLOBAL CONTRIBUTIONS 2018 2017 2016 2015

Volunteerparticipants 17,038 13,292 4,765 3,655

Hoursvolunteered 30,492 25,252 19,301 19,390

Charitablefundraising $1,789,290 $7,430,620 $5,519,771 $5,168,408

Valueofemployeevolunteeringtimeduringpaidworkinghours

$752,847 $623,471

In-kindgiving $253,926 $226,648

Managementoverheads $61,998 $39,419

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OUR IMPACTOurcitizenshipprioritiesleverageourcorebusinessstrengthsanddeliverbothsocialandbusinessbenefits.AlignedwithfouroftheUNSustainableDevelopmentGoals(SDGs)—readmoreabouthowwecontributetotheSustainableDevelopmentGoals

—ourprioritieshelpuscontributetotheworkofgovernmentsandcommunitiesandotherbusinessesaroundtheworld.Atthesametime,ourworkdeliversbusinessbenefitsbyexpandingbusinessopportunities,creatinghumanresourcesbenefitsthroughstrongeremployerreputationandretention,andimprovingstakeholderrelationswithourcommunitiesandemployees.

CLIMATE ACTION: EXPANDING COMPETENCY IN ENERGY AND RESOURCE EFFICIENCY Throughproductandserviceinnovations,IngersollRandiscreatingmoreefficient,sustainableandeconomicoptionsforourcustomers.Weareinvestinginresearchanddevelopment,conveningthoughtleadersand,aspartofourcitizenshipgoals,sharingourexpertiseandadvicewith200energyofficialsindevelopingregions.Bycreatingawarenessabouttheenvironmentalandeconomicbenefitsofresourceefficiency,wedriveuptakeinsustainableoptionsandgrowthedemandforourenergyefficientproductsandservices.

QUALITY EDUCATION: INSPIRING STEM EDUCATION Theskillsandeducationgapresultingfromglobaleconomicshiftsandongoingadvancesintechnologyisbadforbusinessandthehealthofourlocalcommunities.Asanindustrialmanufacturer,IngersollRand’sfocusonadvancingSTEMeducationnotonlycreatesopportunitiesforeconomicmobility,butitisalsoanessentialinvestmentinthefutureofourworkforce.

Aspartofour2020goals,weestablishedsignatureSTEMeducationprogramsthatincludetheNationalCoalitionofCertificationCenters(NC3)andSTEMexperiencesfornearly20,000womenandgirlsintheUnitedStatesandIndia.ThroughourNC3program,weprovidecareertrainingandtechnicaleducationspecifictotheHVACindustryinvestinginthenextgenerationoftheworkforce.In2018,theIngersollRandFoundationdonated$70,000toourNC3program.Additionally,throughpartnershipswithnumeroussciencemuseums,liketheDiscoveryPlace,ProjectScientistandtheAgastyaInternationalFoundation,weexceededour2020targetofsponsoring20,000womeninSTEM-relatedactivities,sparkinginterestinSTEMandbriningnewperspectivestoourfieldandcompany.

BUILDING SUSTAINABLE CITIES AND COMMUNITIES ForIngersollRand,ourcommitmenttobuildingbetterenvironmentsextendsallthewayfromtheproductswecreatetohowweimprovethecommunitieswhereouremployeesandcustomersliveandwork.By2020,wewilldedicate40,000employeevolunteerhourstowardhousingandshelter.WeareachievingthisthoughourannualcampaignandsignatureprogramwithUnitedWay.

In2018,atotalof1,800employeesinGeorgia,NorthCarolinaandTennesseevolunteered4,000hoursinasingleweektobuildahomelesscenter,prepareandservemealsandorganizesnackpacksforchildren.Thissustainedfocusonbuildingcommunityrelations,preservesourattractivenessasanemployer,strengthensourcultureandbuildstrustandcredibilityinthecommunitieswhereweoperate.Itisthroughinitiativeslikethesethatouremployeeengagementscoreremainsattop-tierlevelsinourindustry.

WORKING TOWARDS ZERO HUNGER Withnearly$200billionoffoodthrownawayintheUnitedStateseachyear,researchsuggeststhathungerinAmericamaybelessofasupplyproblemandmoreofalogisticschallenge.Toaddressthisgrowingepidemic,ThermoKing,togetherwiththeIngersollRandFoundation,expandeditssocialinitiativeandsignatureprogramWeMoveFood.Throughgrants,specialpricingonrefrigeratedproductsandservicesandin-kindgifts,WeMoveFoodhadmadeiteasierandmoreaffordableforfoodbanksthroughoutthenationtosafelyrecover,redirectanddistributefreshfoodtofamilieswhoneeditmost.

AspartofWeMoveFood’scommitmenttovolunteerismandcommunityengagement,IngersollRandemployees,alongwithemployeesfromtheThermoKingdealernetwork,havebeenvolunteeringatmobilefoodpantriesandfooddrives,reclaiminghealthyfoodfromretailersandrestaurants,andworkingwiththecommunityfoodbankstomaketheiroperationsrunmoreefficientlyandeffectively.WeMovefoodisonewaythatweareprovidingfoodandnutritioneducationto200,000childrenby2020.

ADDRESSING SOCIAL ISSUES THAT IMPACT OUR COMPANY AND COMMUNITIES IngersollRandtakesanactiveroleinaddressingsocialissuesthatimpactourcompanyandcommunities.WithheartdiseaseastheleadingcauseofdeathinAmerica,IngersollRandhasbeensupportingtheAmericanHeartAssociationformorethaneightyears.Throughthissignatureprogram,weraisehearthealthawareness,educateemployeesandfundheart-healthyprogramminginthecitieswhereouremployeesworkandlive.

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EMPLOYEE AND COMMUNITY ENGAGEMENT DATA

38%ofemployeesgloballyparticipatedincommunityorsustainabilityinitiativesin2018.

Employeesvolunteeredmorethan30,492hoursoftheirtime;equivalentto$752,847.

TheIngersollRandFoundationdonatedmorethan$4,262,499inphilanthropicgiftstocommunitypartners.

SupplierDiversity

Supplierdiversityisintegraltoourglobalintegratedsupplychainstrategy.Itisconsistentwithourvalues,enhancesourcompetitivenessandcapacitybuilding,drivesmarketconnectivityandcreatesjobsandeconomicgrowthinthemarketplace.Oursupplierdiversityprogramembracessupplierswhoareatleast51%owned,operatedandcontrolledbyminorities,women,veterans,LGBTQindividualsorpeoplewithdisabilities.

Wefocusonfourpillars:

1. Increasedutilizationofdiversesuppliers

2. Supplierdevelopmentandmentoring

3. Strategicoutreach

4. Programglobalization

Ourinnovativeprocessidentifiesandpre-qualifiesdiverse-ownedbusinessestoensurearobustpipelineofdiversityforprocurementopportunities.Theseven-stepstrategicsourcingprocessincludesaSupplierDiversityMatrix,whichenablesustoavoidusingpriceastheprimarydriverforsupplierselection.Instead,weconsiderarangeoffactorsasagreeduponbyacross-functionalteam,includingsupplierdiversity,qualityandrisk.

SUPPLIER DIVERSITY DATA

Wepurchased$448millioningoodsandservicesfromdiverse-ownedbusinessesin2018,a9%increasefrom2017.

Sincetheinceptionoftheprogram,wehavepurchasedmorethan$2.1billioningoodsandservicesfromdiverse-ownedbusinessesintheUnitedStates.

SUPPORTING WOMEN BUSINESS ENTERPRISESThroughour2016commitmenttoWEConnectInternational,weareexpandinginclusivesourcingbycollectivelyspending$15billionwithwomen-ownedbusinessesgloballythrough2021.Thisyear,wereported$253millionglobalspendwithwomen-ownedbusinesses,whichreflectsa23%increaseoverprioryearresults.Wearecommittedtocreatinganenvironmentallyandsociallysustainablesupplychain,recognizingthatinclusionofwomen-ownedbusinessesinoursupplychainpromotesinnovationandenableswomentobuildwealthandsustainableprosperityintheircommunitiesaroundtheworld.

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Business Sustainability

OurProducts

Ouraspirationisdeliveringpremierperformanceandapositiveimpactonsocietyandtheplanet.Wedothatbyworkingwithoursupplychainthroughinnovationandproductdeployment,andbyconsideringsustainabilityfactorswhenwemakeproductdecisions.Weassess,forexample,whetheraproductisanenergy-andresource-efficientsolutionthatcreatesvalueforourcustomers.Forus,sustainabilityisthedifferentiatorthatpushesustochangebehaviorandhowwethinkaboutourportfolio.

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SupplyChainTransparencyandPerformance

In2018,ourcombinedannualspendwas$10.6billionfordirectandindirectcommodities.TheInger-sollRandglobalprocurementteamsourcescommoditiesfromabroad,multi-tieredsupplybase.UsingourPreferredSupplierListProgramandSupplierCouncil,wepromotebusinesswithstrategicsupplierswhobestalignwithourexpectationsonquality,serviceandvalue.Wealsooperatewithan“inregion,forregion”philosophy,whichallowsustodeliverproductstomarketquickly,implementlocalprefer-ences,reducefreightcostsandimproveourqualityandreliabilitybybeingnearoursupplierpartners.

SUPPLIER ENVIRONMENTAL ASSESSMENT

Newsuppliersthatwerescreenedusingenvironmentalcriteria 90%ofcontrollablespendsuppliershaveagreedtoourBusinessPartnerCodeofConduct

SUPPLIER SOCIAL ASSESSMENT

Newsuppliersthatwerescreenedusingsocialcriteria 90%ofcontrollablespendsuppliershaveagreedtoourBusinessPartnerCodeofConduct

Wehavea2020targetfor90%ofourdirectmaterialspendtobeassessedforriskquarterly.Weexceededourgoalin2018,reaching95%ofourdirectmaterial.Understandingoursuppliers’environmentalandsocialperformanceenablesustomanageriskandcollaboratewiththoseprovenbestinclass.Formoreinformationaboutriskfactorsassociatedwithoursupplychain,seeourForm10-K.

INGERSOLL RAND BUSINESS PARTNER CODE OF CONDUCT OurBusinessPartnerCodeofConduct(BPCoC)outlinesthestandardtermsandconditionsweexpectofallsuppliers.WerequiresupplierstoacceptandagreetoitwheneverenteringintoacontractoracceptingaPurchaseOrder.Ourtargetisfor100%ofallnewsupplierstoagreetoourBPCoCby2020;attheendof2018,90%ofcontrollablespendsuppliershaveagreed.

OurBPCoCoutlinesexpectationsthatsuppliersdonotviolatebasichumanrightsoflife,libertyandsecurity.Noformofharshorinhumanetreatmentwillbetolerated,suchassexualharassment,sexualabuse,corporalpunishment,mentalorphysicalcoercionorverbalabuseofworkers.Suppliersmusthaveaneffectiveenvironmentalpolicyandconducttheiroperationsinawaythatprotectstheenvironment.Suppliersmustalsoobtainandkeepcurrentallrequiredenvironmentalpermitsandmeetallapplicableenvironmentalrules,regulationsandlawsinthecountrieswheretheydobusiness.

NEW SUPPLIERS Throughoursupplierselectionprocess,weuseaQualitySupplierOnsiteAssessmentbasedonsocialandenvironmentalcriteriatoscreen100%ofournewdirectmaterialsuppliers.Forexample,theassessmentasksifsuppliershaveaprogramfortrackingandmanagingwateruseandhazardouswaste,andiftheyarelocatedinhigh-riskwaterareas.Theassessmentscreensforhumanrightsandlaborpracticescriteriabyasking,forexample,ifthesupplier’shiringandcompensationpracticesmeetorexceedlocallegalrequirementsandifthesupplierrefrainsfromtheuseofprisonorforcedlabor.

$10.6 Billionspent on direct and indirect commodities

90% of controllable spend suppliers have agreed to our Business Partner Code of Conduct

95%of our direct material spent was assessed for risk quarterly in 2018

52 2018 ESG REPORT

PREFERRED SUPPLIER LIST PROGRAMTheIngersollRandPreferredSupplierListProgramisakeyinitiativetoidentifyandengageworld-classsupplierscapableofpartneringwithustocreatehigh-qualityproductsforourcustomerswhileenablingmutuallyprofitablegrowth.Thisprogrambuildsasupplybasethatalignswithourcorevalues.Preferredsuppliersareprioritizedforearlyengagementonnewproductdevelopmentandstrategicsourcingprogramsandaregivenprecedencetoextendtheirproductandserviceofferingstoourlocations.Attheendof2018,49.6%ofdirectspendwaswithpreferredsuppliers.

ON SITE ASSESSMENTS Aspartofourenterpriseriskmanagementprocesses,weassessthesustainabilityandbusinesscontinuityrisksassociatedwithoursupplychain.IngersollRandperformsOnSightAssessment(OSA)auditsaspartofoursupplierdevelopmentprocess.Theprocesscoversabout1,500suppliersoverathree-yearperiodand,in2018,about82%ofourdirectmaterialspend.OurgoalistoincreasespendwithsupplierswhohavecompletedtheOSAprocess.

TheOSAprocess,whichisledbyateamof40engineerswhoreporttothevicepresidentinprocurement,addressesseveralcategoriesincluding:environmentalprotection;humanrightsandlaborrelations;productcompliance;EHS&complianceandsub-suppliermanagement.Wecompletetheprocessonaregularbasis,includingreviewsofauditresultsandfollow-upmonitoringoffindings.

Suppliersarerequiredtoachieveaminimumscoreof80%todobusinesswithus.Weworkwithsupplierstounderstandtheirscoreandputtogetheractionplansforimprovement.

In2018,nosupplierswereidentifiedashavingsignificantactualorpotentialnegativeenvironmentalimpacts.

Ingersoll Rand hosts 4th Annual Global Supplier Conference

InJanuary2019,wewelcomedapproximately200valuedsupplierpartnerstoour4thAnnualGlobalSupplierConferencewheresustainabilitywasattheforefrontoftheconversation.Inadditiontosharingournewrenewableenergyprojects,theconferenceincludedthepresentationofourannualsupplierawards,businessreviewsbyfourofourstrategicbusinessunitpresidentsandbreakoutsessionstailoredtosuppliersuggestedtopics.Inonebreakoutsession,wediscussedsustainabilitypartnershipsinwhichweintroducedournewSustainabilityExpectationsanddevelopmentplanforfurtheringtheirownsustainability.

Conflict Minerals Statement

IngersollRandconductedareasonablecountryoforigininquiry(RCOI)aboutthemineralsspecifiedbyRule13p-1oftheSecuritiesExchangeActof1934,asamended(the“conflictminerals”),thatwerenecessarytothefunctionalityorproductionofproductsmanufacturedbythecompanyforthefiscalyearthatendedonDecember31,2018.Throughduediligence,weidentifiedthesourceandchainofcustodyofconflictmineralsusingtheOECDDueDiligenceGuidanceforResponsibleSupplyChainsofMineralsfromConflict-AffectedandHigh-RiskAreas(the“OECDFramework”).Readmoreaboutourapproachtoconflictminerals.

Management Approach

2020 Targets:Reach100%ofnewsuppliersagreeingtoourBPCoCandincreasedirectspendwithPreferredSuppliersto60%.

Oversight:OurSupplierSustainabilityManagerandSeniorManagerofSustainabilityareresponsibleforleadingthesustainabilityeffortsofoursupplychain,includingdiversityandinclusionwithinthesupplychain.

Approach:Aspartofourenterpriseriskmanagementprocesses,weassessthesustainabilityandbusinesscontinuityrisksassociatedwithoursupplychain.OurBPCoCisintegraltoourstandardpurchaseagreementandcommunicatesthesocial,environmental,qualityandcomplianceexpectationswehaveforoursupplychainpartners.

2018 ESG REPORT 53

TechnologyandInnovation

Wedefineinnovationexcellenceastheabilitytorapidlytransformcreativeideasintocommerciallyviableproductandserviceofferingswhileoptimizingselectionanddevelopment.Findingnewwaystomeetthemarket’sfutureneedsforreliable,energy-efficientsolutionsiscriticaltodrivingourorganicrevenuegrowth.

Ouraverageinnovationrevenuefrom2016to2018was19.7%.

In2018,wespent$228.7milliononresearchanddevelopmentandlaunched91newproductsandservices,spanningnearlyeverybusinessandregion.Werefreshed20.5%ofourproductportfoliooverthepastfouryears,achievingsuperiorbreadthanddepthineverymajorcategory.Eachofthesenewproductsfeaturessustainabledesign,isalignedwithtotallifecyclemanagementprinciplesandusesnaturalresourcesmoreefficientlythanbefore.ReadmoreabouttheIngersollRandProductDevelopmentProcess(IRPDP)andourproductlifecyclemanagement.

OurinnovationroadmapfocusesonensuringthatIngersollRandremainspositionedintherightmarketswiththerightproducts,servicesandtechnologycapabilities.Wedothisbyleveragingcustomerrelationships,applyingadvanceddataanalyticsandsystemicallydrawingfeedbackfromourglobalsupplierbase.WeuseourBusinessOperatingSystem(BOS)asaframeworktotranslatethemarketintelligencewehavegatheredintonewproducts,servicesandsolutions.

Lookingahead,trendslikeclimatechange,urbanizationandindustrializationtrendswillhaveanespeciallypowerfulimpactonourcustomersandthesolutionsweprovide.Enterprise-widecollaborationandknowledgetransfer,whichwefosterthroughfrequentexchangeprogramswithglobalengineeringleaders,driveourcultureofinnovation.Wealsoformglobaldistributedteamstructuresforallnewdeveloped-marketproductengineerstogrowskillsinemerging-marketR&Dteams.

INNOVATION FOR EMERGING MARKETSOneofourgrowthstrategiesistoincreaseourengagementinemergingmarkets,withthegoalofimprovinglivingconditionsinbaseofthepyramidcommunitieswhileaddressingpovertyandurbanization.IngersollRand’semergingmarketrevenueswere$3.1billionin2018.

Weuseathree-stepprocesstoprioritizeourinvestmentsinemergingmarkets.

1. Weconsiderthemacroeconomicandgeopoliticalconditionsatthecountrylevel.

2. Wherethesefactorsareacceptable,weperformananalyticalassessmentofthecurrentattractivenessofourbusiness,consideringcompetitors,customersandchannels.

3. Weconsiderhowtheattractivenessofourbusinesswilllikelyevolveovertime.

Oneexampleofhowwecanenterearly-stagemarketswithourproductsisarecentprogramtheIngersollRandHVACbusinessisworkingoninChina.The“CoaltoElectricity”programinitiatedbyChina’sgovernmentisintendedtosignificantlylowercoalconsumptionforwinterheatinginNorthChina,preventairpollutionandreducePM2.5emissionstoimprovelong-termairqualityinChina.Ourmarketandengineeringteamsandsaleschannelsarecollaboratingtodevelopanewproductwithvaporinjectionandvariable-speedtechnologytodeliverheatingcapabilitythatmeetstheneedsoflow-temperatureenvironments.Wecontinuetoaggressivelyparticipateinmoreearly-stagemarketopportunities.

Management Approach

2020 Targets:Spend$500millioninvestmentinproduct-relatedresearchanddevelopmentoverthenextfiveyearstofundthelong-termreductionofGHGemissionsaspartofourClimateCommitmentandshareenergyconservationknowledgewith200officialsindevelopingregions.

Leadership:Ourseniorvicepresidentandchieftechnologyofficermanagesproductstewardshipthroughoversightofengineering,innovation,productdevelopmentandgrowthstrategy.

Approach:TheIngersollRandBusinessOperatingSystem(BOS)istheframeworkweusetotranslatethemarketintelligencegatheredintonewproducts,servicesandsolutions.

54 2018 ESG REPORT

ProductReliabilityandSafety

Thesafetyandreliabilityofourproductsisimperative.Wethoroughlyincorporatesafetyandreliabilityintoallphasesofourproductdevelopmentprocess–fromresearchthroughmanufacturingtoinstallmentandservice.Duringphasetwoofthe IngersollRandProductDevelopmentProcess(IRPDP),ourteamidentifiesrisksrelatedtoenvironmental,healthandsafety(EHS)and/orsustainabilityconsiderationsincompliancewithrelatedcodesthataffecttheproduct.

Wemeasurethehealthandsafetyofourproductsthroughserviceability,reliabilityanddurability.Thesemetricsevaluatetheinitialcustomerqualityandthetimeittakestoresolveadesignissuefromthemomentitisfirstidentified.Weareoperatingatworld-classlevelsforquality,designandcost–80%ofprojectsmeetquality,designandcostgoals.

Ourstandardpracticeistocomplywithregulationsandvariousvoluntarycodesconcerningproductlabelingandserviceinformation,marketingcommunicationsandcustomersafety.EachIngersollRandbusinesshasadesignatedlegalcounselwhofollowsaprocessforaddressingissuesofnon-complianceintheseareas.Duetomarketdifferences,eachbusinessisresponsiblefortrackingnon-compliance-relatedincidents.Wedonotcollectthisdataormakegeneralstatementsonthistopicattheenterpriselevel.

SocialImpactofourProducts

Ourproductsandservicescreatecomfortable,sustainableandefficientenvironmentsthatadvancethequalityoflifeacrosstheglobe.Ourteamisattheforefrontofinnovatingwhereglobaltrendsintersectwithbuildings,industrialprocessesandtransportationneeds.Whetherthechallengeisclimatechange,urbanizationornaturalresourceconstraints,ourexpertiseenablesustoreduceenergyuseandimproveefficiency.Forexample,asaglobalprovider,werecognizetheimportanceofenablingexpandedaccesstocoolingandcomfort.Withdemandforairconditioningcontinuingtoriseworldwide,wearethinkingbiggerandbolderabouthowtodeliverleading-edgetechnologiesdesignedforsustainability.Theapplicationoficestorage,forexample,hasaddednewcapabilitiestoourportfolioofsolutionsthatdrivebuildingperformancewhileimprovingenergycost.Thermalenergystoragesystemsutilizeiceorchilledwater,whichiscreatedduringoff-peakhoursandstoredintanks,tomeetabuilding’speakcoolingneeds.Itisaproventechnologyineffectivelycoolingbuildings,reducingbillsupto40%.Withtheoperationalsavings,thesolutionalsodrivessustainabilityandresiliency.

2018 ESG REPORT 55

GRI Content Index

2018 ESG REPORT 56

GRI STANDARD DISCLOSURE LOCATION AND NOTES

GENERAL DISCLOSURES

ORGANIZATIONAL PROFILE

GRI102:GeneralDisclosures

102-1Nameoftheorganization 2018AnnualReport:Form10-K,coverpage

102-2Activities,brands,products&services 2018AnnualReport:Form10-K,Part1

102-3Locationofheadquarters 2018AnnualReport:Form10-K,coverpage

102-4Locationofoperations 2018AnnualReport:Form10-K,Item2

102-5Ownershipandlegalform 2018AnnualReport:Form10-K,coverpageandItem1

102-6Marketsserved 2018AnnualReport:Form10-K,Item1

102-7Scaleoftheorganization 2018AnnualReport:Form10-K,Part1andFinancialPerformance

102-8Informationonemployeesandotherworkers

OurEmployees

102-9Supplychain SupplyChainTransparencyandPerformance

102-10Significationchangestotheorganizationanditssupplychain

2018AnnualReport:Form10-K,Item7

102-11PrecautionaryPrincipleorapproach RegulationsandPolicy:EHSManagement

102-12Externalinitiatives Charters

102-13Membershipofassociations MembershipsandPartnerships

STRATEGY

102-14Statementfromseniordecision-maker

LettertoShareholders

102-15KeyImpacts,risksandopportunities 2018AnnualReport:StrategyinActionandNon-FinancialStatements-EuropeanUnionDirective

ETHICS AND INTEGRITY

102-16Values,principles,standardsandnormsofbehavior

CodeofConduct,GovernanceEthics&Compliance,RiskManagement

102-17Mechanismsforadviceandconcernsaboutethics

Governance,EthicsandRiskManagement

GOVERNANCE

102-18Governancestructure Governance,Ethics&Compliance,SustainabilityGovernanceStructure

102-20Executive-levelresponsibilityforeconomic,environmentalandsocialtopics

SustainabilityGovernanceStructure

102-21Consultingstakeholdersoneconomic,environmental,andsocialtopics

MaterialityAssessment

102-22Compositionofthehighestgovernancebodyanditscommittees

LeadershipandGovernance

102-23Chairofhighestgovernancebody LeadershipandGovernance

102-26Roleofthehighestgovernancebodyinsettingpurpose,valuesandstrategy

2018AnnualReport:CorporateGovernance

102-27Collectiveknowledgeofthehighestgovernancebody

2018AnnualReport:Noticeand2019ProxyStatement,ElectionofDirectors

102-29Identifyingandmanagingeconomic,environmentandsocialimpacts

SustainabilityGovernanceStructureandStakeholderEngagement

102-32Highestgovernancebody’sroleinsustainabilityreporting

SustainabilityGovernanceStructureandAboutourReporting

57 2018 ESG REPORT

GRI STANDARD DISCLOSURE LOCATION AND NOTES

GENERAL DISCLOSURES

STAKEHOLDER ENGAGEMENT

102-40Listofstakeholdergroups ValueChainandStakeholderEngagement

102-41Collectivebargainingagreements 16%ofemployeeswerecoveredbycollectivebargainingagreements.

102-42Identifyingandselectingstakeholders ValueChain and StakeholderEngagement

102-43Approachtostakeholderengagement CustomerSatisfaction,ValueChain and StakeholderEngagement

102-44Keytopicsandconcernsraised CustomerSatisfactionandValueChain

REPORTING PRACTICE

102-45Entitiesincludedintheconsolidatedfinancialstatements

2018AnnualReport:Form10-K,Part1

Allentitiesareincludedinthisreport.

102-46DefiningreportcontentandtopicBoundaries

AboutOurReporting,ValueChain and StakeholderEngagement

102-47Listofmaterialtopics MaterialityAssessment

102-48Restatementsofinformation AboutourReporting

102-49Changesinreporting AboutourReporting

102-50Reportingperiod CalendarYear:January1-December31,2018

102-51Dateofmostrecentreport July2018

102-52Reportingcycle Annual

102-53Contactpointforquestionsregardingthereport

PerriRichman–vicepresident,communicationsforIngersollRandstrategicbusinessunits

Email:prichman@irco.com

102-54ClaimsofreportinginaccordancewithGRIStandards

ThisreporthasbeenpreparedinaccordancewiththeGRIStandards:Coreoption.

102-55GRIcontextindex ThistableistheGRIContextIndex,seepages56to63.

102-56Externalassurance AboutourReporting

Ourenvironmentalandsafetydataisassuredbyanindependentthirdparty.

Theassuranceprocessisledbythevicepresident,environmental,healthandsafety,operationswhoreportstoseniorvicepresident,globaloperationsandintegratedsupplychain.

2018 ESG REPORT 58

GRI STANDARD DISCLOSURE LOCATION AND NOTES

MATERIAL TOPICS

FINANCIAL PERFORMANCE

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

LettertoShareholders

103-3Evaluationofthemanagementapproach

2018AnnualReport:Form10-K,PartIIandLettertoShareholders

GRI201:FinancialPerformance

201-1Directeconomicvaluegeneratedanddistributed

2018FinancialPerformance

ENERGY; ENERGY EFFICIENT AND LOW EMISSION PRODUCTS

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

EnergyEfficientandLowEmissionsProducts

103-3Evaluationofthemanagementapproach

ProgressToward2020Targets

Athirdpartyassuresourenergydataeveryyearforcompanyoperations.

GRI302:Energy 302-1Energyconsumptionwithintheorganization

Energy

Wedonotsellenergy,andnoconversionfactorswereneeded.

Methodology:GRI302:Energy2016,Disclosure302-1

Sourceofconversionfactorsused:EPAClimateLeaders,EmissionFactorsforGreenhouseGasInventories,9March2018;ClimateChange,2013,ThePhysicalScienceBasis,WorkingGroupIContributiontotheFifthAssessmentReportoftheIntergovernmentalPanelonClimateChange,Chapter8,Appendix8.A,Table8.A.1;2017ClimateRegistryDefaultEmissionFactorsreport,TableB.2,March15,2017

302-2Energyconsumptionoutsidetheorganization

Energy

Fuel,energy,heatingandcoolingareincludedintheintensityratio.

Allenergyusedwasconsumedwithintheorganization.

302-3Energyintensity Energy

Energyintensityratiofortheorganization:0.229billionkJ/millionUSD

Fuel,energy,heatingandcoolingareincludedintheintensityratio.

Allenergyusedwasconsumedwithintheorganization.

Typesofenergyincludedintheintensityratio:fuelandelectricity

59 2018 ESG REPORT

302-4Reductionofenergyconsumption Energy

Amountofreductionsinenergyconsumptionachievedthroughdirectresultofconservationandefficiencyinitiatives:4.56billionkJ

Fuel,electricity,heatingandcoolingareincludedinthereductions.

2013isourbaseyearforourClimateCommitmentand2020targets.

Typesofenergyincludedinthereductions:fuelandelectricity

Basisforcalculatingreductions:2018calendaryear

Methodology:GRI302:Energy2016,Disclosure302-4

302-5:Reductionsinenergyrequirementsofproductsandservices

EnergyEfficientandLowEmissionsProducts

EMISSIONS

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

ClimateChangeandGreenhouseGasEmissions,PollutantEmissionsandRefrigerants

103-3Evaluationofthemanagementapproach

ProgressToward2020Targets

Athirdpartyassuresourgreenhousegas(GHG)emissionsdataeveryyear.WealsoperformedaninternalauditoftheproductGHGcollectionprocessinearly2017.

Specificmanagementapproachforemissions SeeEnergyforinformationaboutourrenewableenergyapproach.IngersollRandhasnoexistingplanstopurchaseoffsetstoreduceouremissions.

GRI305:Emissions 305-1Direct(Scope1)GHGemissions GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

Gasesincludedinthecalculation:CO2,CH

4,N

2O,HFCsandsmallquantitiesof

HCFCs(e.g.R22).

BiogenicCO2emissions:Notapplicable.

Baseyearforcalculation:2013.Thisisthebaseyearofour2020targetsandourClimateCommitment.Emissionswere514,714MT.AlsoseeGreenhouseGasEmissions,PollutantEmissionsandRefrigerantsandAboutourReporting.Baseyeardataismodifiedtoaccountformergers,acquisitions,anddivestments.IngersollRandretainsbaseyearemissionsformanufacturingplantsthatthecompanyhasphysicallyclosed.

Sourceoftheemissionsfactorsandtheglobalwarmingpotentialrateused:IPCCAR5–ClimateChange2013;EPAClimateLeaders,EmissionFactorsforGreenhouseGasInventories,March9,2018;2017ClimateRegistryDefaultEmissionsFactorsReport,TableB.2,March15,2017.

Consolidationapproachforemissions:Financialcontrol.

Standards,methodologies,assumptionsand/orcalculationtoolsused:WorldResourcesInstitute,TheGreenhouseGasProtocol.

GRI STANDARD DISCLOSURE LOCATION AND NOTES

MATERIAL TOPICS

2018 ESG REPORT 60

305-2Energyindirect(Scope2)GHGemissions

Grosslocation-basedenergyindirect(Scope2)GHGemissions:GreenhouseGasEmissions,PollutantEmissionsandRefrigerantsIfapplicable,grossmarket-basedenergyindirect(Scope2)GHGemissions:Notapplicable.

Ifavailablethegasesincludedinthecalculation:CO2,CH

4,N

2O

Baseyearforcalculation:2013.Thisisthebaseyearofour2020targetsandourClimateCommitment.Emissionswere260,352 MT.AlsoseeGreenhouseGasEmissions,PollutantEmissionsandRefrigerantsandAboutourReporting.Baseyeardataismodifiedtoaccountformergers,acquisitions,anddivestments.IngersollRandretainsbaseyearemissionsformanufacturingplantsthatthecompanyhasphysicallyclosed.

Sourceoftheemissionsfactorsandtheglobalwarmingratesused:eGRID2016,February15,2018;InternationalEnergyAgency,“CO

2EMISSIONSFROMFUEL

COMBUSTION,FullDocument,”2018Edition,SupplementalCO2Emissions

FactorsprovidedasanExcelWorkbook.

Consolidationapproachforemissions:FinancialControl.

Standards,methodologies,assumptionsand/orcalculationtoolsused:WorldResourcesInstitute,TheGreenhouseGasProtocol.

305-3OtherIndirect(Scope3)GHGemissions

GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

21millionmetrictonsavoidedinproductemissionssince2013.

Gasesincludedinthecalculation:CO2,CH

4,N

2O,HFCs

BiogenicCO2emissions:Notrelevant

Sourceofemissionfactorsandglobalwarmingpotential(GWP)ratesused,orarefencetotheGWPsource:IPCCAR5100yearforrefrigerants;USEPAeGridfactorsandInternationalEnergyAgency2013reportCO

2efactorsbycountryfor

electricity;EPAfactorsforfuels.

305-4GHGemissionsintensity GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

Emissionsintensityratio:34.26

TypesofGHGEmissionsincludedinintensityration:Scope1andScope2

Gasesincludedinthecalculation:CO2,CH

4,N

2O.

305-5ReductionofGHGemissions GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

GHGemissionsreducedasadirectresultofreductioninitiatives:

Scope1:26,537CO2e

Scope2:859CO2e.

Gasesincludedinthecalculation:CO2,CH

4,N

2O.

Baseyearforcalculation:2013.Thisisthebaseyearofour2020targetsandourClimateCommitment.AlsoseeGreenhouseGasEmissions,PollutantEmissionsandRefrigerantsandAboutourReporting.

Scopesinwhichreductionstookplace:Scope1andScope2.

Standards,methodologies,assumptionsand/orcalculationtoolsused:GRI305:Emissions2016,Disclosure305-5.

305-7Nitrogenoxides(NOx),sulfuroxides(SOx)andothersignificantairemissions

GreenhouseGasEmissions,PollutantEmissionsandRefrigerants

GRI STANDARD DISCLOSURE LOCATION AND NOTES

MATERIAL TOPICS

61 2018 ESG REPORT

GRI STANDARD DISCLOSURE LOCATION AND NOTES

MATERIAL TOPICS

SUPPLIER ENVIRONMENTAL CONDITIONS

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

SupplyChainTransparencyandPerformance

103-3Evaluationofthemanagementapproach

SupplyChainTransparencyandPerformance

GRI308:SupplierEnvironmentalAssessment

308-1Newsuppliersthatwerescreened SupplyChainTransparencyandPerformance

308-2Negativeenvironmentalimpactsinthesupplychainandactiontaken

SupplyChainTransparencyandPerformance

COMPANY CULTURE

GRI103ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

CompanyCulture

103-3Evaluationofthemanagementapproach

CompanyCultureandProgressToward2020Targets

GRI401Employment

401-2Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees

CompanyCulture

401-3Parentalleave CompanyCulture

TRAINING AND DEVELOPMENT

GRI103ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

TrainingandDevelopment

103-3Evaluationofthemanagementapproach

TrainingandDevelopmentandProgressToward2020Targets

GRI404TrainingandEducation

404-2Programsforupgradingemployeeskillsandtrainingassistanceprograms

TrainingandDevelopment

404-3Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews

TrainingandDevelopment

DIVERSITY & INCLUSION; BOARD OVERSIGHT; EQUAL REMUNERATION

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

DiversityandInclusion

103-3Evaluationofthemanagementapproach

DiversityandInclusionandProgressToward2020Targets

GRI405:DiversityandEqualOpportunity

405-1Diversityofgovernancebodyandemployees

DiversityandInclusion,OurEmployeesandSustainabilityGovernanceStructure

2018 ESG REPORT 62

PUBLIC POLICY

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

RegulationsandPolicy:PublicPolicy

103-3Evaluationofthemanagementapproach

RegulationsandPolicy:PublicPolicy

GRI415:PublicPolicy

415-1Politicalcontributions RegulationsandPolicy:PoliticalActivityandContributionsandGovernance,EthicsandRiskManagement

TECHNOLOGY AND INNOVATION

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

TechnologyandInnovation

103-3Evaluationofthemanagementapproach

TechnologyandInnovation

N/A Technologyandinnovation TechnologyandInnovation

ACCESS TO COOLING AND COMFORT

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

SocialImpactofOurProducts

103-3Evaluationofthemanagementapproach

SocialImpactofOurProducts

N/A Accesstocoolingandcomfort SocialImpactofOurProducts

INNOVATION FOR EMERGING MARKETS

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

TechnologyandInnovation

103-3Evaluationofthemanagementapproach

TechnologyandInnovation

N/A Innovationforemergingmarkets TechnologyandInnovation

PRODUCT LIFE CYCLE

GRI103:ManagementApproach

103-1ExplanationofthematerialtopicanditsBoundary

MaterialityAssessmentandValueChain

103-2Themanagementapproachanditscomponents

ProductLifeCycleApproach

103-3Evaluationofthemanagementapproach

ProgressToward2020Targets

Wehave2020targetsrelatedtoproductlifecycle.Wemeasurethesegoalsannuallytoensureweareontrack.

N/A Productlifecycle ProductLifeCycleApproach

GRI STANDARD DISCLOSURE LOCATION AND NOTES

MATERIAL TOPICS

63 2018 ESG REPORT

SASB Disclosure Our2018ESGReportmarksIngersollRand’sfirsttimereportingtotheSASBframework.Asadiversifiedindustrialmanufacturer,thenatureofourbusinessdoesnotfitsquarelywithinoneindustryasdefinedbytheSustainableIndustryClassificationSystem.OurreportingprocessconsideredthestandardsfortheElectrical&ElectronicEquipmentandIndustrialMachinery&Goodsindustries.WeusedusedSASB’sfivefactorassessmentofinteresttoareasonableinvestortodeterminewhichtopicsarematerialtoourbusiness.

TOPIC ACCOUNTING METRIC CATEGORY UNIT OF

MEASURECODE RESPONSE

AccountingMetrics Numberofproductsproducedbycategory

Quantitative Number RT-EE-000.A;RT-IG-000.A

Proprietary

Numberofemployees Quantitative Number RT-EE-000.B;

RT-IG-000.B

44,664employees

EnergyManagement

(1)Totalenergyconsumed,(2)percentagegridelectricity,(3)percentagerenewable

Quantitative Gigajoules(GJ),Percentage(%)

RT-EE-130a.1;RT0203-01

3,594billionKJenergyconsumed;99.69%gridelectricity;0.31%renewable

ProductLifecycleManagement

PercentageofproductsbyrevenuethatcontainIEC62474declarablesubstances

Quantitative Percent(%)byrevenue

RT-EE-410a.1 Datanotavailable

Percentageofeligibleproducts,byrevenue,thatmeetENERGYSTAR®criteria

Quantitative Percent(%)byrevenue

RT-EE-410a.2 35%ofshipments

Revenuefromrenewableenergy-relatedandenergyefficiency-relatedproducts

Quantitative Reportingcurrency

RT-EE-410a.3 Approximately25%revenuefromproductsandservicesthatcontributetothecleanenergytransition

TCFD DisclosureIngersollRand’scommitmenttoaddressingclimatechangeismorethanadutyoragrowthstrategy.Itisthefilterweapplytoeverysingledecisionwemake.WestronglysupporttheTaskForceonClimate-relatedFinancialDisclosures(TCFD)whichlaunchedtohelpcompaniesunderstand,measureandrespondtoclimatechangerisksandopportunities.Thisyear,weexpandedourreportingtoincludeinformationandvoluntarydisclosuresthatarealignedwithTCFD’sfinalrecommendationsreport.

RECOMMENDED

DISCLOSURESOURCE COMMENT / DISCLOSURE

GOVERNANCE

a)Describetheboard’soversightofclimate-relatedrisksandopportunities.

2018ESGReport SustainabilityGovernanceStructure

2018CDPClimateChangeSurvey:QuestionC1.1a

Question C1.1a:SustainabilityandclimatechangerisksareaformalresponsibilityofourBoardofDirectors’CorporateGovernanceandNominatingCommittee.TheCommitteesetsthestrategicdirectionforIngersollRand’ssustainabilityapproachandisresponsibleforoverseeingourcarbonfootprintandenvironmentalhealthandsafetyperformance.Thecommitteemeetsatleastannuallytoevaluatethecompany’ssustainabilityperformanceandisinformedregularlybythecompany’sSVPofInnovationandChiefTechnologyOfficer(CTO).

2018 ESG REPORT 64

b)Describemanagement’sroleinassessingandmanagingclimate-relatedrisksandopportunities.

2018CDPClimateChangeSurvey:QuestionsC1.2andC1.2a

Question C1.2:WithintheC-suite,IngersollRand’sChiefTechnologyOfficer(CTO)hasresponsibilityforbothassessingandmanagingclimate-relatedrisksandopportunities.Onahalf-yearlybasis,theCTOreportstotheboardonclimate-relatedissues.

Question C1.2a:TheCTOreportstotheCEOandChairmanoftheBoard.SincetheuseofourproductsisoursinglelargestsourceofGHGemissions,ourinnovativesolutionsforbuildings,transportationmarketsandindustrialprocesseshavethepotentialforthegreatestimpactonclimatechange.Thus,IngersollRand’ssustainabilityofficereportsdirectlytotheSVPofInnovationandtheCTO.TheCTOalsoworkswithbusinessleadershipteamsandservesonvariousboardsandadvisorycouncilstoaccelerateglobalinnovationandtechnology-ledgrowthstrategies.

ProductGHGisametricontheCTO’sgoals,monitoredquarterlyandannually.

STRATEGY

a)Describetheclimate-relatedrisksandopportunitiestheorganizationhasidentifiedovertheshort-,medium-andlong-term.

2018AnnualReport CautionaryStatementforForwardLookingStatements,Non-FinancialStatements–EuropeanUnionDirectiveandForm10-K

2018ESGReport PublicPolicy,ClimateChange,EnergyEfficientandLowEmissionsProductsandTechnologyandInnovation

2018CDPClimateChangeSurvey:QuestionsC2.3aandC2.4a

Question C2.3a:IngersollRandhasidentifiedclimate-relatedriskswiththepotentialtohaveasubstantivefinancialorstrategicimpactonthebusinessincluding:mandatesonandregulationofexistingproductsandservices;increasedseverityofextremeweatherevents;andincreasedcostofrawmaterials.Question C2.4a:Increasingdemandforenergyefficiencyandgrowingurbanpopulationscreateproductandservicedevelopmentopportunitiesforourbusiness.Forexample,HVACandlightingsystemsareagreatopportunitytoreduceenergyconsumptionincommercial,industrialandresidentialbuildings–whichaccountfornearlyhalfofglobalenergyconsumption.

b)Describetheimpactofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategyandfinancialplanning.

2018AnnualReport Item1A,RiskFactorsandNon-FinancialStatements-EuropeanUnionDirective

2018ESGReport PublicPolicy,EnergyEfficientandLowEmissionsProductsandTechnologyandInnovation

2018CDPClimateChangeSurvey:QuestionsC2.5,C2.6andC3.1c

Question C2.5: Describeswhereandhowidentifiedrisksandopportunitieshaveimpactedthebusiness.Forexample,IngersollRandhasmadeinvestmentsthatenablethecompanytophaseouttoday’shigh-globalwarmingpotentialHFCsaheadofregulatoryrequirements.WeworkproactivelywithgovernmentagenciesandrefrigerantsupplierstohelpidentifyalternativesandfacilitateapracticaltransitionthatreducesGHGemissionsasearlyaspossible.Wealsoparticipateininternationalforums,suchastheUnitedNationsFrameworkConventiononClimateChangeandtheMontrealProtocol,tohelpcreateanorganizedapproachtoglobalrefrigeranttransitions.Question C2.6: Describeswhereandhowtheidentifiedrisksandoperationshavefactoredintothefinancialplanningprocess.Forexample,energycostsandcoststotransitiontolowerGWPrefrigerantsarefactoredintoannualoperatingbudgets.

Question C3.1c:Explainshowclimate-relatedissuesareintegratedintobusinessobjectivesandstrategy.Forexample,guidedbyourmaterialityassessment,in2014weestablishedacomprehensivesetof2020SustainabilityTargetsincludingtargetsforenergy(10%by2020normalizedforrevenuebaselineof2013)andemissions(35%by2020normalizedforrevenuebaselineof2013).Additionally,in2014weannouncedamajorClimateCommitmenttoreducethegreenhousegasrefrigerantfootprintofourproductsby50%by2020fromabaselineof2013.

Aspectsofclimatechangehavealsoinfluencedourstrategy.Energydemandandenergyefficiencyregulationsaretransforminghowcommercialbuildingsarebuiltandhowtheyoperate.

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c)Describethepotentialimpactofdifferentscenarios,includinga2⁰Cscenario,ontheorganization’sbusinesses,strategyandfinancialplanning.

2018CDPClimateChangeSurvey:QuestionsC3.1aandC3.1d

Question C3.1a: IngersollRandusesqualitativeclimate-relatedscenarioanalysistoinformourbusinessstrategy.

Question C3.1d:Weregularlyperformscenarioassessmentstodetermineproductstrategywithrespecttoclimate-relateddriverssuchasgreenhousegasemissionsandenergyefficiency.Thesescenarioassessmentsaredoneatthebusinessunitlevelandincorporatestandardwork.

Pursuingscenarioassessmentshasledtonewproductdevelopment,technologyprojectstoexplorenewsolutionsandchangesinstrategy.Wemadeaglobalcommitmenttoreducetherefrigerantrelatedfootprintofourproductsby50%by2020andcommittedtoinvesting$500millionintheresearchanddevelopmentofnewtechnologiestofacilitateatransitiontonextgenerationrefrigerantsandhighefficiencyoperations.

RISK MANAGEMENT

a)Describetheorganization’sprocessforidentifyingandassessingclimate-relatedrisks.

MaterialityAssessment Weperformamaterialityassessmentevery3to4yearstoassessrelevantsustainabilitytopicsincludingthoserelatedtoclimatechange.

2018CDPClimateChangeSurvey:QuestionC2.2b

Question C2.2b:Atthecompanylevel,IngersollRandhasadoptedtheEnterpriseRiskManagement(ERM)IntegratedFramework,athree-dimensionalapproach,consideringobjectives,riskcomponentsandalllayersoftheorganizationacrosstheboardandfortheoneswhichapplyspecificallytocertainbusinessunits(Assetlevel).Riskobjectivesandriskcomponentshavebeenidentifiedforstrategic,operational,financialandcomplianceriskswithacorrespondingcontrolmechanismwhichallowsmanagementtorespondaccordingtotheparticularriskoropportunity,includingspecificallyclimatechangeandotherresourcerelatedtopics.

Attheassetlevel,ERMprovidesguidanceanddirectionforintegratingtheenterpriseriskmanagementwiththemajorbusinessprocesses.TheInternalSustainabilityStrategyCouncilrepresentsthefunctionsandbusinessesgloballyandmeetsquarterlytoreviewprogressagainstallsustainabilitytargets,includinggreenhousegasemissionsofouroperationsandproducts.ThisCouncilalsoassessesandmonitorsrisksassociatedwithclimatechange.

b)Describetheorganization’sprocessesformanagingclimate-relatedrisks.

2018AnnualReport Non-FinancialStatements–EuropeanUnionDirective

2018ESGReport ClimateChange,GreenhouseGasEmissions,PollutantEmissionsandRefrigerants,EnergyEfficientandLowEmissionsProductsandWater

2018CDPClimateChangeSurvey:QuestionsC2.2candC2.2d

Question C2.2c:Allrelevantclimate-relatedrisks—includingcurrentandexistingregulation,technology,reputation,acuteandchronicphysicalrisksanddownstreamrisks—areintegratedintoIngersollRand’smaterialityassessmentandEnterpriseRiskManagementIntegratedFramework.

Question C2.2d:Climate-relatedrisksaremanagedthroughtheEnterpriseRiskManagementCommitteeviaaquarterlyreviewprocessofpriorityrisks.Bothclimate-relatedrisksandopportunitiesaremanagedattheenterpriselevelbytheInternalSustainabilityStrategyCouncilwhichmeetsquarterlytoreviewprogressagainstallsustainabilitytargets,includinggreenhousegasemissionsofouroperationsandproducts.ThisCouncilhasaccountabilityforsustainabilitybestpractices.

c)Describehowprocessesforidentifying,assessingandmanagingclimate-relatedrisksareintegratedintotheorganization’soverallriskmanagement.

2018CDPClimateChangeSurvey:QuestionC2.2

Question C2.2:Climate-relatedrisksareintegratedintomulti-disciplinarycompany-wideriskidentification,assessmentandmanagementprocesses.

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METRICS & TARGETS

a)Disclosethemetricsusedbytheorganizationtoassessclimate-relatedrisksandopportunitiesinlinewithitsstrategyandriskmanagementprocess.

2018ESGReport ClimateChange,GreenhouseGasEmissions,PollutantEmissionsandRefrigerants,andEnergyEfficientandLowEmissionsProducts

b)DiscloseScope1,Scope2and,ifappropriate,Scope3greenhousegas(GHG)emissionsandtherelatedrisks.

2018ESGReport GreenhouseGasEmissions,PollutantEmissionsandRefrigerantsandGRIContentIndex

c)Describethetargetsusedbytheorganizationtomanageclimate-relatedrisksandopportunitiesandperformanceagainsttargets.

2018ESGReport ClimateChange

2018CDPClimateChangeSurvey:QuestionsC4.1,C4.1aandC4.1b

Question C4.1:IngersollRandhastargetsforbothabsoluteemissionsandemissionsintensity.

Question C4.1a and C4.1b:Ourcombinedabsoluteandintensitytargetsconstituteanapprovedscience-basedtarget.

AbsoluteEmissionsTarget,Scope3(UseofProducts):InSeptember2014weannouncedourClimateCommitment.Wecommittedtoreducingtherefrigerantfootprintofourproductsby50percentby2020(Dec.31,2019)withabaselineof2013.

EmissionsIntensityTarget,Scope1+2(location-based):AspartofourClimateCommitment,in2014,IngersollRandcommittedtoreducingScope1+2emissions35%froma2013baseline.

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Wearecommittedtousingenvironmentallyconsciousprintpractices. ©2019IngersollRand

IngersollRand(NYSE:IR)advancesthequalityoflifebycreatingcomfortable,sustainableandefficientenvironments.

Ourpeopleandourfamilyofbrands–includingClubCar,®IngersollRand,®ThermoKing®andTrane®–worktogether

toenhancethequalityandcomfortofairinhomesandbuildings;transportandprotectfoodandperishables;and

increaseindustrialproductivityandefficiency.Weareaglobalbusinesscommittedtoaworldofsustainableprogress

andenduringresults.

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