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Corporate Social Responsibility Report Cooper Industries plc

Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

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Page 1: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

Corporate Social Responsibility ReportCooper Industries plc

Cooper Industries plc5 Fitzwilliam SquareDublin 2, Ireland

Administrative Headquarters600 Travis Street, Suite 5600Houston, TX 77002-1001www.cooperindustries.com

To view this report online or to download a PDF, visit www.cooperindustries.com.

Page 2: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

About This Report

The 2009 Cooper Industries plc Corporate Social Responsibility Report follows the release of the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report. As Cooper’s second corporate social responsibility report (CSRR), the 2009 CSRR represents Cooper through calendar year 2009 unless otherwise stated. To develop the 2009 CSRR, Cooper adopted the same scope, boundary and measurement methods that it used to develop the 2007 CSRR. Cooper intends to continue releasing a CSRR on a biannual basis.

Cooper’s 2009 CSRR conforms to the principles outlined in the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version 3.0 (G3). The GRI is a voluntary, internationally recognized framework for sustainability reporting that allows organizations the opportunity to measure and report their economic, social and environmental efforts in a consistent manner. The GRI also offers a variety of application levels, which show the extent to which G3 guidelines have been applied throughout the report and provide guidance on how organizations can continuously improve their reporting. Based on an internal review, Cooper determined that this report achieves a GRI C-level application.

Some statements in this report are forward-looking and relate to the manner in which Cooper intends to conduct certain activities, based on management’s current plans and expectations. The Cooper Industries plc 2009 Annual Report discusses important factors that could impact whether any of the forward-looking statements materialize.

For more information, contact:Mark DohenyDirector of Investor RelationsCooper [email protected]

Corporate HeadquartersCooper Industries plc5 Fitzwilliam SquareDublin 2, Ireland

Administrative HeadquartersCooper Industries600 Travis Street, Suite 5600Houston, TX 77002-1001713-209-8400

Mailing AddressCooper IndustriesP.O. Box 4446Houston, TX 77210-4446

Websitewww.cooperindustries.com

CreditsStrategy and Report Development: Burns & McDonnell / www.burnsmcd.comDesigned by Curran & Connors, Inc. / www.curran-connors.com

Cooper Industries is proud to be selected for inclusion in the highly respected socially responsible stock index, FTSE4Good, and leading intellectual property index, Ocean Tomo 300. For more information, contact Investor Relations.

Report Application Levels

SelfDeclared

ThirdParty

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GRIChecked

2002In Accordance C C B B A A+ + +

Page 3: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

2 LetterfromtheChairmanandCEO

3 Long-Term Global Trends

4 AboutCooperIndustries

4 Markets Served

4 Cooper Industries Worldwide Locations

5 Financial Summary

5 Corporate Governance and Ethics

6 Cooper Business Units

7 Five Strategic Business Initiatives

8 EnvironmentalStewardship

9 Environmental Policy and Accountability

10 Environmental Impact of Operations

12 Other Environmental Considerations

13 Case Study: Environmental Excellence Awards

16 Innovation

17 Customer Satisfaction

19 Case Study: Lighting Controls

20 Case Study: Empowering the Smart Grid

22 Case Study: LED

23 Case Study: Making Renewable Energy Possible

24 Employees

25 One Team, One Purpose, One Vision, One Strategy

27 Case Study: Employees Taking Charge

28 Community

30 GlobalReportingInitiativeIndex

TableofContents

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Page 4: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

LetterfromtheChairmanandCEO

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Since publishing our inaugural corporate social responsibility report (CSRR), we have weathered one of the most challenging economic periods in our Company’s 176-year history. Thanks to the hard work of our employees, ethical leadership and relentless focus on the customer, we have successfully

navigated the most severe recession since the Great Depression and have emerged stronger than ever. We challenged ourselves to follow the mission to achieve sustainable growth while also respecting people, communities and the natural environment. Our future success will not only be measured by our financial performance, but also by our continued commitment to environmentally and socially responsible practices.

As part of this strategic commitment to sustainability, I am proud to introduce the 2009 Cooper Industries plc Corporate Social Responsibility Report—our second, biannual CSRR—which highlights Cooper’s business activities in 2009. This report follows the Global Reporting Initiative’s Sustainability Reporting Guidelines version 3.0 and achieves a C-level application.

EnvironmentalStewardshipWe strive to better understand the environmental impact of our business operations, because our actions affect our employees, customers, shareholders, suppliers and the communities where we all live and work. Since 1995, we’ve recognized efforts that positively impact our environment through sustainable practices such as reducing energy consumption, emissions and water use. We continue to follow a formal, written environmental policy and have a strong organizational structure in place to support the initiatives that reduce our environmental impact around the globe. One such initiative was the introduction of cleaner-burning fuels at many of our facilities, including converting our largest U.S. manufacturing facility in Syracuse, N.Y. to natural gas.

While we are proud of our progress and the external recognitionthe Company receives—such as our ranking in the top 100 of Newsweek’s inaugural Green Rankings in 2009—we have more work to do. For example, we recently partnered with an

experienced energy consultant to determine our greenhouse gas inventory, which details our greenhouse gas emissions and identifies opportunities for improvement.

InnovationAs a global manufacturer of electrical products through seven distinct business units, Cooper has an extensive portfolio of innovative energy-efficient products with the ability to affect large-scale, environmental change. Our energy automation solutions empower the Smart Grid by introducing electric grid intelligence that enables utilities to reduce electricity demand and overall environmental impact. Our LED technology, lighting controls and occupancy sensors provide better light quality to our customers while consuming less energy and reducing the end user’s carbon footprint.

At Cooper, we continue to make significant investments in sustainable technologies. In 2009, we opened the Cooper LED Innovation Center in Peachtree City, Ga., as a facility dedicated to the research, development and design of proprietary LED and other advanced lighting technologies.

EmployeesandCommunityStakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical business practices and community involvement. In 2009, we made nearly $1.9 million in charitable contributions and supported it with community involvement across the globe. Actions such as these support our continued inclusion in socially responsible investment indices such as FTSE4Good —a recognition that we believe is simply the result of Cooper’s culture, which promotes an environment of doing things the right way.

LookingForwardCooper remains committed to leading the way to a better tomorrow for our customers, our shareholders and our communities. We will continue to limit the environmental impacts of our operations; introduce innovative, sustainable new products; and protect and develop our employees in ways that will strengthen our legacy of being a socially responsible corporation.

To our customers, employees and stakeholders around the world:

Kirk S. HachigianChairman, President and Chief Executive Officer

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ElectricityDemandTo meet increasing electricity demand, Cooper is focused on improving the

efficiency, reliability and productivity of the electric grid through optimization

and automation. From transmission through distribution and, ultimately, to the

consumer, Cooper is helping utilities obtain more usable energy out of the existing

utility infrastructure by transforming it into the next generation of the electric grid,

the Smart Grid.

EnergyEfficiencyPreserving the planet is paramount. To assist customers in reducing energy

consumption and emissions, Cooper is committed to creating energy-efficient

products. Whether it’s LED technology, occupancy sensors, lighting controls or

power demand management products, Cooper leads the way to a better tomorrow

for customers and their communities.

GlobalInfrastructureCooper’s innovative products and solutions continue to play an instrumental role

in supporting the ongoing global infrastructure build-out. Cooper manufactures

products that are integral to advancing the transportation, energy, communication,

commercial and industrial infrastructure worldwide.

SafetyandProtectionThrough a comprehensive suite of safety products and solutions, Cooper protects

people, buildings, plants and critical equipment across the globe every day.

Cooper is at the forefront of safety and notification systems as a leading supplier

of emergency lighting, fire detection systems, notification solutions, lighting and

workplace safety products.

Four key, global trends—increasing electricity consumption, growing demand for more energy-efficient products, continuing the global infrastructure build-out, and needing to ensure the safety of people at work and in their daily lives—significantly impact Cooper Industries’ business today and will continue to influence its business strategies and practices in the future. Cooper’s portfolio of high-quality businesses is uniquely positioned to respond to these global trends and to adapt products and services to align with industry needs.

Long-TermGlobalTrends

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AboutCooperIndustries

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CooperIndustriesplc(NYSE:CBE)is a global manufacturer of electrical products with more than 28,000 employees and manufacturing facilities in 23 countries as of December 2009. Incorporated in Ireland, with its administrative headquarters in Houston, the company had nearly 19,000 shareholders of record at the end of 2009. Founded in 1833, Cooper’s sustained level of success is attributable to a constant focus on innovation, evolving business practices while maintaining the highest ethical standards and meeting customer needs. The company has seven operating divisions with leading market share positions and world-class products and brands including: Bussmann electrical and electronic fuses, Crouse-Hinds and CEAG explosion-proof electrical equipment, Halo and Metalux lighting fixtures, and Kyle and McGraw-Edison power systems products.

2009MarketsServed

CooperIndustriesWorldwide

Sales by End Market (percent of revenues)

39%

10%

22%

5%

24%

ResidentialUtilityOther

CommercialIndustrial

Countrieswithmanufacturingfacilitiesasof2009:Australia | Brazil | Canada | China | Colombia | Denmark | France | Germany | Greece | Hungary | India | Italy | Korea |

Mexico | Netherlands | Romania | Saudi Arabia | Spain | Switzerland | Sweden | Taiwan | United Kingdom | U.S.

128 Manufacturing Plants

91 Sales Offi ces

32 Warehouses

7 Other Facilities

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($ in millions, except per share data) 2009 2008 2007 2006 2005

Revenues $5,069.6 $ 6,521.3 $ 5,903.1 $ 5,184.6 $ 4,730.4

Continuing income before restructuring and unusual items 425.2 630.8 582.8 484.3 391.1

Net income 439.1 632.2 692.3 464.0 163.9

DilutedIncomePerCommonShare

Continuing income before restructuring and unusual items $ 2.52 $ 3.59 $ 3.14 $ 2.58 $ 2.06

Net income 2.61 3.60 3.73 2.47 0.87

Shares used in computation of earnings per share 168.5 175.6 185.5 187.6 190.0

Cash dividends declared per common share $ 1.00 $ 1.00 $ 0.84 $ 0.74 $ 0.74

BalanceSheetatDec.31,2009

Total assets $5,984.4 $ 6,164.9 $ 6,133.5 $ 5,374.8 $ 5,215.1

Total indebtedness 934.4 1,233.1 1,266.1 1,008.5 1,021.9

Shareholders’ equity 2,963.3 2,607.4 2,841.9 2,475.3 2,205.2

These financial highlights contain non-GAAP financial measures. See the reconciliation of these measures to the most directly comparable GAAP measure in the 2009 Cooper Industries plc Annual Report, which can be found at http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-reportsAnnual.

FinancialSummary

CorporateGovernanceandEthicsCooper Industries has a long-standing tradition of operating in accordance with the highest ethical standards, driven by strong corporate governance. Through its interactions with investors, customers, suppliers, employees and the communities in which it operates, Cooper strives to be honest and fair and to comply with applicable rules and regulations. The company’s corporate governance principles have been approved by Cooper Industries’ Board of Directors and, along with the charters of the board committees, provide the framework for the governance of the company. The transparency of Cooper’s financial and sustainability reporting also reflects these business principles.

Cooper is proud of its tradition of ethical conduct. Its standards of ethical behavior and core values permeate all of Cooper’s operations and business transactions, creating a better way of life for all of its stakeholders.

To learn more about Cooper Industries’ corporate governance and ethics, visit http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-govHighlights.

Page 8: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

AboutCooperIndustries

CooperBusinessUnits

Global provider of innovative, labor-saving support systems (e.g., bolted framing, cable tray, spring steel fastener, pipe hanger and safety grating) and enclosure solutions for engineered facility subsystem applications.

Global leader in innovative circuit protection products and services, on-vehicle power distribution, conversion and control systems, magnetic components, and wireless control and monitoring systems for the electrical, electronics and transportation industries.

Diversified manufacturer of electrical and instrumentation products that enhance safety and productivity in demanding industrial and commercial environments worldwide. Product solutions include lighting, plugs and receptacles, and harsh- and hazardous-environment instrumentation devices.

Innovative, high-quality lighting solutions and energy-efficient lighting technologies for commercial, industrial, institutional, residential and retail customers worldwide.

Provider of quality solutions for medium- and high-voltage electrical equipment, components and systems that deliver reliable electric power worldwide. CPS is also a leader in utility automation, providing Smart Grid solutions that enable customers to increase productivity, improve system reliability and reduce costs.

Specializing in products designed to save lives and protect property in commercial and industrial facilities. State-of-the-art security, fire detection and mass noti fication systems combine with market-leading emergency lighting to provide comprehensive safety solutions.

Leading manufacturer of electrical connection and control products for residential, commercial and industrial construction and renovation, including switches, receptacles, GFCIs, wall plates, plugs, sensors, structured wiring systems and sophisticated interconnection solutions for demanding environments.

ApexToolGroup,LLC*, based in Sparks, Md., is one of the largest worldwide producers of industrial hand and power tools, tool storage, drill chucks, chain, and electronic soldering products. Directly and through its subsidiaries, Apex serves a multitude of global markets, including automotive, aerospace, electronics, energy, hardware, industrial and consumer retail. Through a joint venture with Danaher Corp., Cooper Industries holds a 50% interest in Apex as of July 2010.

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* Through a joint venture, Apex Tool Group, LLC formed after the 2009 reporting period. For more information, please visit www.cooperindustries.com.

Page 9: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

FiveStrategicBusinessInitiativesCooper Industries’ core business initiatives—customer loyalty, innovation, globalization, talent development and operational excellence—have allowed Cooper to succeed in both expanding and declining economies.

✔CustomerLoyaltyCustomer loyalty begins with the Cooper Connection initiative and challenges the company to always put the customer first. Cooper strives to incorporate innovative process disciplines to enhance customer value, making Cooper easier to do business with. Leveraging brand strength and building customer relationships are central to Cooper’s growth strategy.

✔Innovation Innovation is Cooper’s lifeblood. Sales from newly introduced products have nearly tripled from 2004 to 2009, and the company has actions in place to deliver 25% of annual revenues each year from products introduced within the prior three years. Cooper focuses on expanding technology in every business through exciting new platforms including Cooper’s energy automation solutions for Smart Grid, mass notification and energy-efficient lighting such as LED and lighting controls. Internal development and acquisitions better enable the company to make dumb products smart—differentiating Cooper in the marketplace.

✔GlobalizationGlobalization continues to be an area of major opportunity and investment for Cooper, and the company has significantly improved its competitive position in international markets. Cooper has developed region- and country-specific strategies and expanded its physical presence in local markets. In 2009, Cooper generated approximately 39% of total company revenue outside the U.S., selling in more than 100 countries.

✔TalentDevelopmentTalent management across the company enables Cooper’s strong leadership team to grow increasingly more effective in successfully navigating Cooper into the future.The company’s integrated talent blueprint is marked by acquisition, development, deployment and retention strategies and processes. The results of this focused corporate initiative include a significantly enhanced leadership pipeline, enhanced diversity representation, a learning culture with structured development opportunities and a pay-for-performance architecture that drives business results by differentiating the best and brightest talent.

✔OperationalExcellenceOperational excellence involves every business unit. Since 2002, Cooper has radically changed its manufacturing approach and physical footprint. The company began by establishing a global, strategic sourcing initiative, followed by the launch of an internal productivity program. In addition, Cooper has reinforced its safety and environmental programs around the world.

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EnvironmentalStewardship

Cooper Industries understands the importance of environmental stewardship and is committed to

minimizing its environmental impact through sustainable design, responsible sourcing and innovative

manufacturing of its products. Through its product portfolio, Cooper helps customers handle the

challenges of higher energy costs, renewable energy generation and environmental preservation.

This eco-friendly attitude extends to Cooper’s corporate culture. In addition to complying with

environmental regulations, the Company trains its employees to make sound environmental decisions,

minimizes waste and helps government agencies develop science-based environmental standards.

Cooper is also evaluating its energy consumption, improving environmental data collection and

beginning to track greenhouse gas emissions to establish a baseline. Cooper continues its commitment

to its long-standing environmental policy for a more sustainable future.

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EnvironmentalPolicyandAccountability

Environmental PolicyCooper has a formal, written environmental policy that lists guiding principles for minimizing its impact on the environment. The policy reinforces standards of operation and reminds employees that environmental considerations have the highest priority at Cooper. The environmental policy principles Cooper practices worldwide include:

• To observe all environmental laws and regulations

• To respond effectively to environmental concerns involving Cooper facilities and products

• To minimize and, wherever possible, to eliminate environmental impacts through continuous improvement

• To conduct operations in a manner that demonstrates respect for the environment

• To cooperate with federal, state and local governments in developing scientifically based environmental standards

• To encourage the development of environmentally sound procedures and to conduct business with the best-available technology

• To maintain environmental monitoring programs that ensure compliance with governmental requirements and these principles

• To provide training programs that emphasize the individual’s responsibility for sound environmental decisions

Beyond achieving compliance with applicable environmental regulations, Cooper continuously seeks opportunities to implement environmental, health and safety best practices throughout its facilities.

Environmental TeamLed by the Vice President of Environmental Health & Safety and seven regional directors, Cooper’s Environmental Team manages the day-to-day environmental performance of each region and business unit. Plant management, environmental coordinators and engineers at each Cooper facility support the Environmental Team, while the Vice President of Operations and the Board of Directors offer executive oversight. The Board of Directors receives annual environmental and safety reports and meets each year to review Cooper’s environmental performance. Environmental Health & Safety committees in the U.S., Europe and Asia share lessons learned, methodologies and environmental impact reduction capabilities. These committees also meet to review and share updates in environmental regulations and health and safety matters relevant to their businesses.

Cooper’s Environmental Team doesn’t stop there. Every Cooper employee shares in the Company’s environmental responsibility by actively putting the environmental policy into practice. For instance, every manufacturing facility maintains environmental protection and pollution prevention goals. Cooper employees integrate environmental considerations into product innovation standards and the continuous improvement process. Environmental training and accountability for achieving the Company’s environmental targets encourage employees to participate in the Company’s environmental commitment.

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Environmental Management Information SystemCooper’s commitment to comply with regional and international environmental health and safety regulations is evident in its established procedures and record-keeping processes. Cooper’s operating facilities worldwide use the environmental management information system—or EMIS—to assist in environmental monitoring and data-gathering requirements. Cooper also maintains systems at each plant to meet daily compliance requirements.

EnvironmentalImpactofOperationsConsistent with the guiding principles of the Company’s environmental policy, Cooper strives to minimize its impact on the environment by assessing the emissions, quality of effluents, utilized resources and waste generated from its business activities, product manufacturing and services. Cooper is also committed to continuously improving its environmental performance.

Internally, Cooper recognizes its facilities that reduce environmental impact and exceed Company targets through its Environmental Excellence Awards program. Externally, as of 2009, registrars certified 13 Cooper manufacturing facilities as compliant with International Organization for Standardization (ISO) 14001 guidelines. ISO 14001 certification verifies that these facilities have environmental management systems that enable sustainable business operation.

In 2009 Cooper embarked on a robust environmental initiative, which builds on the success of previously implemented programs and prepares the Company for future reductions of its environmental impact. Cooper partnered with an experienced energy consultant to measure both direct and indirect energy consumption. Collecting this data establishes an environmental performance baseline, which will help Cooper develop future environmental goals. The energy consultant gathered and audited utility bills from Cooper production facilities worldwide as well as other data metrics to determine Cooper’s collective energy consumption. A portion of the findings from this audit are discussed below. For the next step in this initiative, Cooper will work with its energy consultant to develop a greenhouse gas (GHG) inventory that details GHG emissions and identifies opportunities for improvement. Cooper will present the GHG inventory results in its next corporate social responsibility report (CSRR).

EnvironmentalStewardship

OneoftheTop100GreenestCompaniesinAmericaCooperIndustriesranked#9intheindustrialgoodssectorand#97overallinNewsweek’sinauguralGreenRankingsin2009.Newsweekpartneredwithenvironmentalresearcherstorankthe500largestU.S.companiesbasedonactualenvironmentalperformance,policiesandreputation.

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Energy Consumption Cooper tracks energy consumption at operation sites worldwide, including all of its manufacturing, research, warehousing and testing facilities. These facilities represent 94% of Cooper’s worldwide energy use. Cooper compiles its facilities’ utility records into a single database, which can identify energy use by source, building location and other factors. Cooper’s total electricity use, or indirect energy consumption, for 2009 was approximately 469 million kilowatt-hours (kWh), or approximately 7.5 kWh per hour worked. Its total natural gas use, a portion of its direct energy consumption, in 2009 was approximately 947,000 million British thermal units (MMBtu), or 0.015 MMBtu per hour worked.

Air QualityBased on electricity use, natural gas consumption and the World Resource Institute’s Greenhouse Gas Protocol, Cooper is able to report a portion of its 2009 GHG emissions. In 2009, Cooper emitted approximately 71,000 metric tons of carbon dioxide equivalent (CO2e) from the burning of natural gas and 291,000 metric tons of CO2e from electricity usage. With this data and the upcoming GHG inventory, Cooper is establishing its baseline GHG emissions to enable meas urement of future reduction initiatives.

Cooper has tracked its sulfur oxide (SOx) and nitrogen oxide (NOx) emissions since 2005. In the past, Cooper reported its total SOx and NOx emissions based on roughly 100 of its larger facilities. As part of Cooper’s commitment to continuous improvement, in 2009, the Company

2009EnergyUsageandRelatedEmissions

EnergySource Usage Rate Emissions

Electric Power 469,000,000 kWh 7.5 kWh/hour worked 291,000 metric tons of CO2e

Natural Gas 947,000 MMBtu 0.015 MMBtu/hour worked 71,000 metric tons of CO2e

2009 Energy Use by Region

Pacific Rim*

*Includes China, India, Australia and other countries in the region

Mexico, Central and South America

European Union, Middle EastU.S.

9%

67%

15%

9%

2009SOxandNOxEmissions

Constituent Emissions Rate

SOx 10.1 tons 0.00033 per equivalent employee

NOx 104.3 tons 0.0034 per equivalent employee

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tracked SOx and NOx emissions from 182 of its operation sites. The resulting emissions in 2009 are collectively 10.1 tons of SOx, or 0.00033 tons SOx per equivalent employee, and 104.3 tons of NOx, or 0.0034 tons NOx per equivalent employee. Cooper’s 2008 and 2009 effort to consume cleaner-burning fuels—such as natural gas at its Syracuse, N.Y., plant—resulted in a 33.5-ton decrease in total SOx emissions despite the addition of a significant number of facilities to the calculated total.

Resource ConsumptionIn the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report (2007 CSRR), Cooper discussed tracking its water use. Since that time, the Company has decided to first focus its environmental data collection and tracking efforts on a GHG inventory. Cooper recognizes that water is an essential resource and hopes to expand its environmental performance data collection and tracking to include water use in the future.

Waste GenerationIn order to better understand the impact of its waste minimization efforts, beginning in 2010, Cooper will begin tracking and reporting the total amount of waste it sends to landfills. Cooper will present these figures in its next CSRR.

OtherEnvironmentalConsiderationsIn addition to assessing the impacts of daily business operations, Cooper works to mitigate outstanding issues related to the past use of hazardous chemicals and asbestos.

Cooper historically acquired businesses, which at one time produced and sold products that contained asbestos (before Cooper acquired those businesses). The 2007 CSRR discussed the asbestos liabilities relating to the sale of Cooper’s Automotive Products businesses to Federal-Mogul Corp. and Federal-Mogul’s subsequent bankruptcy. At that time, the bankruptcy court had not yet ruled on Cooper’s ability to obtain protection under a trust set up under the Federal-Mogul bankruptcy. The court has since ruled that the trust was not a permissible vehicle to resolve the liability in this instance, and Cooper is continuing to defend the lawsuits.

Superfund is the federal government’s program to clean up the nation’s most significant hazardous waste sites. As part of Cooper’s acquisitions and divestments, the Company is associated in some way with 38 Superfund sites, 22 of which are considered active sites under remediation. Cooper is considered a de minimis contributor and is typically one of several participating parties at many of these sites.

EnvironmentalStewardship

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CaseStudy

EnvironmentalExcellenceAwardsCooper’s annual Environmental Excellence Awards are presented to Cooper facilities that best demonstrate significant, lasting and measurable excellence in such areas as process improvement, pollution prevention, innovative product design and resource conservation. Cooper employees at these facilities drive environmental efforts and have proven that doing the right thing can lower costs, improve performance and create direct financial benefits for both the customer and Cooper. The scope of this award program is broad enough for all major environmental and conservation accomplishments of any Cooper operation to be eligible. Nominations can relate to a specific accomplishment or to a group of projects demonstrating continuous improvement. Cooper honors top performers on an annual basis with grants to local programs promoting environmental stewardship. Top performers have the freedom to select which community programs benefit from the grant.

Recent Award WinnersThe Riom, France, Cooper Safety Plant recognized an opportunity to reduce not only its environmental impact, but also customers’ environmental impact through innovative product solutions. Employees at this plant realized that its emergency lighting products used inefficient batteries and sought a more energy-efficient battery option. Cooper employees began to work with a third-party manufacturer to develop this environmentally friendly battery, the ECOSAFE by Cooper. The ECOSAFE battery not only has a significantly increased lifespan of 10 years, compared to the previous batteries’ lifespan of four years, it also has a reduced environmental impact. Compared to the old, inefficient battery, an ECOSAFE battery consumes 60% less energy, uses approximately 80% less water and reduces hazardous waste production by 80%. When this battery is used in Cooper products it also reduces the product’s overall environmental impact and improves efficiency.

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The Cooper LED Innovation Center in Peachtree City, Ga., identified energy saving measures that could be molded into innovative products that help customers reduce their environmental impact. Cooper Lighting designed and developed the new Halo LED H7 collection at the Cooper LED Innovation Center. This new lighting collection offers energy savings to customers by providing the same quantity and quality of light as traditional light sources while operating more efficiently. Cooper Lighting also designed the Halo LED modules to have a longer lifespan, which also minimizes relamping maintenance costs. The Halo LED H7 1200 series exceeds light output of a 90-watt PAR38 halogen lamp, a 120-watt BR40 incandescent lamp and a 32-watt compact fluorescent luminaire, while consuming less than 25 watts. These LED fixtures also provide 70% of their initial light output after 22 years of use. The new Halo LED H7 collection is just one of the innovative lighting solutions Cooper is creating at its new LED Innovation Center. (See the LED case study on page 22 for more on the Cooper LED Innovation Center.)

Life Cycle Analysis ToolThe Cooper Safety Research and Development and Marketing teams at the Cooper Safety Plant in Riom, France, implemented a life cycle analysis (LCA) tool that calculates the environmental impact of a product throughout its life, from raw material extraction to manufacturing through transportation and end use. This LCA tool uses Environmental Information and Management Explorer software to perform the complex calculations based on ISO 14040-41-42-43 standards. The software works with an extended database that contains relevant information about all electronic components, plastics and other materials that make up Cooper Safety products. With data about the product’s materials, logistics such as the distance between the factory and customer, power consumption, maintenance and other factors, the LCA software measures a product’s environmental impact through the use of 10 indicators:

• Natural resources depletion

• Energy depletion

• Water depletion

• Global warming potential

• Stratospheric ozone depletion potential

• Air and water toxicity

• Photochemical ozone creation

• Air acidification potential

• Water eutrophication

• Hazardous waste production

EnvironmentalStewardship

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Cooper understands that customers are becoming increasingly more interested in information about the environmental impact of products they purchase. The LCA tool provides an opportunity to consider the entire product life cycle, so customers can make sustainable purchasing decisions. LCAs of Cooper products are available to customers through product literature and on the Cooper Safety France website at www.cooperfrance.com. Cooper is considering LCA application for other product lines and plans to extend the use of this tool beyond the Cooper Safety facility. Other companies are also using this LCA tool, making it easier for customers to compare products from different suppliers.

Manufacturing Distribution

Use

End of Life

Raw MaterialExtraction

LifeCycleAnalysisLifeCycleAnalysisconsiderstheimpacttotheenvironmentfromtheentireproductlifecycle,fromrawmaterialextractiontomanufacturingthroughtransportationandenduse.

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Innovation

Cooper drives customer value with innovation through technological advancements in products

across every business unit. Cooper’s innovative products—such as energy automation solutions for

the Smart Grid, energy-efficient light-emitting diode (LED) lighting and lighting controls, and alternative

energy solutions for wind and solar power—help its customers handle the challenges of higher energy

costs, environmental preservation and global warming. Through responsible design, sourcing and

manufacturing of its products, Cooper offers eco-friendly solutions to utilities, industrial and commercial

enterprises, and buildings and households around the globe to help them more efficiently and

sustainably meet their lighting and power needs.

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CustomerSatisfactionAt Cooper, customers come first. Cooper strives to continually enhance customer satisfaction with the thousands of Cooper products available across the globe. To accomplish this goal, Cooper invests in the processes, people, information systems and metrics necessary to closely monitor customer satisfaction. Cooper welcomes customer suggestions and feedback through phone and face-to-face conversations, online inquiries, tradeshows, polling and questionnaires. By listening to and incorporating customer feedback, Cooper is able to increase overall product value while enhancing customer satisfaction levels.

On-Time DeliveryCooper’s CEO, executive management and front-line personnel continually monitor on-time delivery performance for all business units, because Cooper understands how important on-time delivery is to its customers. With a commitment to achieve an on-time delivery performance of 95%, Cooper’s on-time delivery performance has improved year after year.

Cooper Customer CenterSince the 2007 launch of the Cooper Customer Center (C3)—an interactive web portal featuring real-time product availability, net pricing, order status and tracking information in one easily navigated user interface—Cooper has enhanced C3’s functionality, communication and scope to further improve customer service. C3, available at www.cooperc3.com, features thousands of unique products, and is available to customers in both Spanish and English. Cooper is proud of the latest addition to C3: a centralized location for One Cooper events, literature, training, news and more. Other enhancements include quick search functionality for recent orders; multiple part number searches across all Cooper business units; downloadable order and product information to Excel; more accurate pricing including freight charges; and easy access to catalog sheets, invoices, advanced shipping notices, order acknowledgements and packing slips. Cooper has improved communication with customers through C3 with a real-time messaging board for customer alerts and an online C3 training demonstration. To measure customer satisfaction with C3 improvements, Cooper conducted a voice-of-the-customer survey, in which 89% of respondents were either satisfied or very satisfied with C3. Customers selected to take this online survey represented a wide range of C3 users from those who are highly active to those who don’t use C3 regularly. Ongoing improvements to C3 continue to enhance the customer experience, making it easier for customers to do business with Cooper.

On-Time Delivery Performance (percent of total deliveries)

Target: 95%

87%2008

88%2009

74%2006

83%2007

New Product Vitality Index* (percent of sales)

Target: 25%

25%

19%

Target

2009

15%

7%2003

2008

0 20 40 60 80 100

0 5 10 15 20 25

95%Target

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Innovation

On-Time Delivery Performance (percent of total deliveries)

Target: 95%

87%2008

88%2009

74%2006

83%2007

New Product Vitality Index* (percent of sales)

Target: 25%

25%

19%

Target

2009

15%

7%2003

2008

0 20 40 60 80 100

0 5 10 15 20 25

95%Target

* Cooper’s new product vitality index is an internal Company metric that tracks the percent of sales of products introduced within the previous three years compared to total sales.

TopInnovatorInDecember2009,thePatentBoard,aleadingindependentpatentanalyticsandresearchinstitution,recognizedCooperasthe#9innovatorinitspatentqualityrankingsofindustrialcomponentsandfixturescompanies—animprovementof20placesfrom2008.

Cooper Connection Through the Cooper Connection program, customers gain access to the most highly specified products in the electrical distribution business. Designed to promote long-term growth while enhancing competitiveness, Cooper’s best-in-class brands create a solid platform for distributors to improve their positions in the marketplace. An increased breadth of product offerings through one of the largest sales infrastructures in the industry combined with access to state-of-the-art technology helps reduce costs while maximizing productivity. With additional access to marketing tools, training programs and promotional opportunities, each Cooper Connection distributor is able to drive its own growth and profitability.

New Product Vitality IndexThe new product vitality index—an internal Company metric that tracks the percent of sales of products introduced within the previous three years compared to total sales—demonstrates Cooper’s customers’ adoption of new products that result from Cooper innovation and a commitment to customer satisfaction. In the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report, Cooper stated a goal of a new product vitality index of 20%. After achieving a 19% new product vitality index in 2009, Cooper decided to increase its target to 25%. This revised goal demonstrates the importance Cooper places on delivering innovative products to customers.

Cooper Technology CenterWith new products and innovative technologies hitting the market almost daily, education and training have never been more crucial. So in January 2009 Cooper opened a world-class industrialtraining facility for Cooper stakeholders, the Cooper Technology Center (CTC), in Houston. The 35,000-square-foot facility features global industrial trends in a hands-on classroom setting with a board room, auditorium, training rooms and a full-scale mock refinery that incorporates more than 400 Cooper products. The CTC has committed displays featuring Cooper products from all business units and is committed to the ongoing training and education of end-users, distributors, and engineering and procurement professionals.

With its breadth of product offerings, range of customer tools and ongoing commitment to customer service, Cooper not only continues to meet but regularly exceeds customer expectations.

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CaseStudyLightingControlsThe largest electricity-consuming system in a commercial building is lighting, which according to the Energy Information Administration consumes more than 40% of a commercial building’s daily electricity use. Lighting control strategies such as time schedules, switch timers, photosensors, occupancy sensors, multi-level switching and daylight dimming can reduce this expense. When these hardware solutions are combined with Cooper Controls software, building owners and facility maintenance personnel can control meter usage in real time and monitor space utilization, enabling increased electrical efficiency and reduced maintenance and operating costs.

Cooper Step Up ProgramAccording to the U.S. Department of Energy, lighting products offer one of the quickest returns for energy saving investments, with a payback period that averages less than two years—and in some cases, less than one year. Lighting system upgrades can produce up to 40% energy savings for the end-user which, in turn, reduces environmental impact by burning less fossil fuel. Cooper developed its Step Up Program to assist companies in accurately estimating and measuring the energy savings of installing an efficient and effective lighting system upgrade.

Sears Distribution CenterCooper’s Greengate lighting control system helped Sears Holdings Corp.—the fourth largest broadline retailer in the U.S. with 3,900 retail stores in the U.S. and Canada —obtain Leadership in Energy and Environmental Design (LEED®) certification on its 780,500-square-foot distribution center in Stockton, Calif. This distribution center is one of the most energy-efficient warehouses in the U.S., with an effective lighting power density of 0.18 watts per square foot—78% less than the maximum prescribed by California’s title 24 energy code.

Cooper’s Greengate lighting control system—comprised of relay panels, daylighting controls and occupancy sensors—controls all of the lighting in the distribution center. For safety reasons, Greengate keeps lighting on at all times in critical areas of the distribution center.

Designed to minimize wasted energy, the Greengate lighting control system employs a unique algorithm to ensure that unnecessary lights in a building are turned off after business hours, when rooms are empty or when there is sufficient daylight available in the space. Facility managers can also actively monitor and manage the energy consumption of the building through Greengate.

Lighting in the distribution center includes 16,000 linear feet of Cooper’s Metalux MB Series T5HO Micro-Bay fixtures in linear rows mounted 32 feet off the floor. Available in narrow and medium distributions for high mounting heights, Micro-Bay luminaires are designed to deliver energy savings, superior lumen maintenance and longer lamp life, improved color rendition, integrated control options and easy configuration. Select luminaires were specified with emergency battery backup, providing mandatory illumination in the event of a power outage. The narrow profile of Micro-Bay also enabled the electric lighting to integrate with the building’s daylighting strategy through minimized blockage of daylight entering the space through a series of skylights aligned over the center of each racked aisle. Except on cloudy days, these 4-foot by 8-foot, double-dome skylights, which cover 2% of the roof area, are able to meet target light levels without requiring any electric lighting during daytime hours. These fluorescent light fixtures feature instant-on operation, making automatic energy-saving switching strategies much easier to implement.

For more information about Cooper’s lighting energy management products, visit www.coopercontrol.com.

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Innovation

A. Cooper Power Systems helps develop collection system solutions that connect, transform and protect renewable energy as it travels through the electric grid.

B. Voltage and volt-amperes reactive management solutions address electricity losses that occur as electricity moves through the distribution system. Through products such as the Cooper Power Systems Capacitor Bank Control, utilities can save up to 2.57 million kilowatt-hours (kWh) per year and prevent 1,846 metric tons of carbon dioxide (CO2) emissions from escaping into the atmosphere.

C. Cooper Power Systems brings intelligence to the electric grid by linking distribution equipment and the utility control center through its Yukon Automation software, simplifying systemwide automation to enable more efficient and reliable energy delivery. For instance, the Company’s feeder reconfiguration systems are equipped for two-way communication that senses activity on the grid, relays the status to a decision-support application and directs the response to automatically adjust the grid accordingly.

D. The Company’s high-efficiency step voltage regulators result in annual energy savings as high as 160,000 kWh, mitigating roughly 115 metric tons of CO2 emissions.

E. Sulfur hexafluoride (SF6)-free switchgear, available from Cooper Power Systems, prevents the incorporation of one of the most potent greenhouse gases into

the electrical transmission and distribution system. One green switchgear unit eliminates the use of roughly 30 pounds of SF6, or 330 metric tons of CO2.

F. Transformers are occasionally damaged by storms and accidents or simply fail due to age. Based upon Cooper’s analysis of data collected from various state environmental and pollution control agencies, this can often result in hundreds of thousands of gallons of oil spilled each year. Using Cooper Power Systems biodegradable, soy-based Envirotemp FR3 dielectric fluid in distribution transformers is safer for customers and the environment.

G. Every day, power is lost as electricity passes through distribution transformers. By converting to the Cooper Power Systems high-efficiency distribution transformers, an average utility can save as much as 3.3 million kWh in energy losses, reducing CO2 emissions by 2,400 metric tons.

H. Simple steps can all add up. An average utility can prevent roughly 28,000 kWh of system inefficiencies by using the Cooper Power Systems Evolution Arrester. The ultra-low wattage loss design can contribute to reductions of CO2 emissions by 20.2 metric tons.

I. Implementing the Cooper Power Systems demand-response solution on as few as 8,000 home air conditioners can reduce annual system losses by 51,000 kWh, preventing 36.6 metric tons of CO2 emissions and saving roughly 6% of peak energy use.

AA

AB

C

D

E

F

G

H

I

CaseStudy

EmpoweringtheSmartGridCooper Power Systems has been creating equipment for the electric utility industry since the days of Thomas Edison. Today, the Company’s products empower the Smart Grid, improving efficiency, reliability and productivity of the next generation of the electric grid through optimization and automation.*

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These solutions help utilities reinvent their energy delivery systems by applying new perspectives to an aging grid. Using Cooper Power Systems’ innovative Smart Grid solutions, utilities can engage consumers through smart meters and the supporting advanced metering infrastructure that allow consumers to adjust energy consumption based on real-time pricing information. Utilities can better implement distributed

generation that addresses both power generation and renewable energy challenges, and they can improve power reliability and quality, which lessens vulnerability to natural disasters by restoring power rapidly and efficiently when unexpected events occur.

For more information about Cooper Power Systems, visit www.cooperpower.com.

* Energy and emissions savings are based on estimates from typical utility equipment usage and system parameters.

AA

AB

C

D

E

F

G

H

I

AmericanElectricPowerEmploysYukonFeederAutomationSoftwareAmerican Electric Power (AEP)—owner of the nation’s largest electric transmission system, nearly 39,000 miles of 765-kilovolt extra-high voltage transmission—installed Cooper’s Yukon Feeder Automation software as a core component of its Smart Grid deployment. “It (Yukon Feeder Automation software) will improve grid reliability by detecting disturbances and automatically reconfiguring the system to isolate problems,” Thomas F. Weaver III, PE, manager of grid management deploy ment at AEP, said. “This will help minimize the total number of customers impacted by a potential power outage. The partnering of Cooper Power Systems and AEP engineers to work through the learning curve of this first install on the AEP system was key to suc cess fully putting this new technology in service on time and on budget.”

As a dynamic, self-healing distribution automation solution, Yukon Feeder Automation software accommodates the addition or removal of devices and integrates compatibly into existing supervisory control and data acquisition (SCADA) and distribution management systems. It allows operators to control intelligent electronic devices, enable and disable automation, and view a comprehensive dashboard of the current state of the system. Yukon Feeder Automation software works with multiple communication media for easy upgrading as new technologies emerge. It facilitates testing through the Yukon Feeder Automation Simulator, maintains a complete log of device operation and status changes for post-event traceability, and reduces system cost. This energy automation software maximizes customer satisfaction through service restoration to the most customers in seconds when an outage occurs, avoiding penalties for extended outages.

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LEDOf the more than 869 million recessed lighting fixtures installed in the U.S., 83% use incandescent lighting. LEDs, however, consume up to 85% less energy and with significantly longer average rated lives can eliminate up to 40 replacements of incandescent lighting. The more than 137 million outdoor street and area lighting units installed in the U.S. can also benefit from LED technology. Compared to the traditional metal halide selection, LED is 30% to 60% more energy efficient while eliminating up to seven lamp replacements.

Cooper’s comprehensive capabilities in LED—design, thermal modeling, accelerated life and reliability testing, photometric measurement, and rapid prototyping and manufacturing—are unmatched among North American lighting manufacturers. As a result, Cooper offers a broad range of industry-leading indoor and outdoor LED lighting products with best-in-class capabilities.

Cooper LED Innovation CenterOpened in 2009, the 60,000-square-foot Cooper LED Innovation Center in Peachtree City, Ga., is home to the research, development, design, validation and manufacturing of proprietary LED and other advanced lighting technologies. Skilled mechanical, electrical, thermal, optical and reliability engineers work with industrial designers, lab technicians and manufacturing personnel to accelerate the development and commercialization of relevant industry-leading LED solutions. Testing ensures robustness in application, intended performance over rated life, and compliance with industry standards such as lumen maintenance (LM)-79, LM-80, ENERGY STAR and Underwriters Laboratories’ (UL) certification.

As one of the first luminaire manufacturers in the lighting industry to offer an extensive LED training program, Cooper offers courses and workshops in LED technology and architectural lighting controls at its LED Innova tion Center. Design professionals gain a working understanding of LEDs and learn integration methods. Courses introduce typical real-world applications of LEDs in both residential and commercial environments.

Cooper’s LED Innovation Center demonstrates its long-term commitment to developing relevant, industry-leading lighting solutions to challenging market needs.

Outdoor Headquarters Lighting UpgradeAt its headquarters in Peachtree City, Ga., Cooper Lighting upgraded its 400-watt metal halide outdoor area lighting with energy-efficient Ventus luminaire LED lighting that not only maintains recommended light levels, but also improves illumination. By automatically varying the number of the Ventus’ 12 LightBAR optics being illuminated at a time, Cooper experiences 33% to 77% energy savings over the older metal halide fixtures, depending on the brightness required for the time of day. Developed at the Cooper LED Innovation Center, the Ventus luminaire has a projected average rated life six times longer than its predecessor at 50,000 hours and can safely operate in high ambient temperatures.

For more information on Cooper’s LED solutions, visit www.cooperlighting.com/led.

CaseStudy

Innovation

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MakingRenewableEnergyPossibleAs renewable energy sources become increasingly more important factors in the global energy portfolio, Cooper is developing the products that are making the use and distribution of alternative energy sources like solar energy possible.

Cooper B-Line products help drive down lifecycle cost-per-watt of solar energy systems for both commercial and utility applications. Cooper B-Line offers a comprehensive set of mounting and wire management solutions—including strut, cable tray, grating and wireway—for mounting solar panels in ground, pole, rooftop and open-structure applications. Each of these solutions incorporates optimal access for system maintenance, and in rooftop applications Cooper B-Line has designed fully ballasted mounting systems to protect roofs from damage.

Cooper Power Systems creates the products and services that connect large, utility-grade photovoltaic (PV) energy systems to the electric grid. High-efficiency solar generation step-up transformers cooled with Envirotemp FR3 soy oil-based dielectric fluid are speciallydesigned with inverter technology and energy harvest in mind. A full line of molded rubber parts provides reliable transformer interconnection up to 35 kV. Substation products—including capacitors, arresters, relays and automation communication systems—along with interconnection systems ensure that the solar power installation’s electric quality meets grid requirements. Through a single housing or a complete system with monitoring electronics, Cooper Bussmann and Cooper Crouse-Hinds combiner boxes provide a convenient means of connecting the conductors from several arrays or solar panels into one main bus or feed.

Cooper Bussmann’s fast-acting solar fuses are designed specifically for protecting solar panels and conductors used in PV power systems from extreme cycling conditions and low-magnitude overloads.

Cooper Crouse-Hinds’ solar power kits provide reliable electricity in remote applications. These systems are pre-wired to National Electric Code standards to minimize installation time and wiring errors. Solar power kits are installed in weather-proof enclosures to withstandharsh environments and high wind loads. Cooper Notification’s Wireless Auto Visual Emergency System (WAVES) and Tactical WAVES (TACWAVES) are portable systems designed to alert, warn and inform people of what to do in an emergency or disaster. These units include solar panels to maintain battery charge.

For more information about Cooper’s renewable energy, energy-efficient and eco-friendly products, visit www.cooperindustries.com/markets/green.

CaseStudy

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Employees

Cooper Industries is committed to its most valuable resource—its employees. Cooper employees

work at more than 200 facilities around the world. To protect and develop its employees, Cooper

has policies and practices to encourage employee safety, continuous education and professional

advancement. Multi-year employee education, development and training programs —with emphasis

on operations, finance, human resources, general management, and sales and marketing—are

available to train future Company leaders. Cooper actively mentors emerging leaders and builds

teams to promote diverse perspectives that improve decision-making and enhance innovation.

Salaried employees, exempt and non-exempt, receive annual performance evaluations. Cooper

maintains effective labor relations, protects association rights and prohibits harassment and

discrimination globally. Child labor is also prohibited—no one under the age of 16 may be employed

by Cooper anywhere in the world. By respecting the rights of its employees and maintaining safe

workplaces free from discrimination, Cooper creates an environment that is conducive to diversity

and continued growth and success.

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When a Company is spread out around the world and the acquisition of complementary businesses is part of the growth strategy, creating a focused, cohesive group of employees is a challenge. Cooper meets this challenge by promoting its culture and values. Acting ethically and with integrity and accountability earns the respect and trust of co-workers, customers and other stakeholders, while protecting Cooper’s reputation. Following the Company’s strategic vision, Cooper employees are committed to producing work of the highest quality in a timely and effective manner, driving customer loyalty by exceeding customer expectations and responding to their needs, exercising technical excellence and adaptability by responding to emerging trends in technologies and customer requirements, and translating challenges into relevant and actionable plans.

Cooper provides a comprehensive benefits package to help attract and retain a competitive workforce. While programs may vary from one country to the next based on the availability of certain services and government regulations, the Company strives to be competitive and always comply with government regulations in each region of operation. Cooper’s benefit programs offer employees tools to provide for their health care needs, prepare for retirement and manage the financial challenges of higher education.

As part of Cooper’s commitment to continuous improvement, the Company conducted an online survey of its salaried employees in 2007 and will do so again globally in 2010. Feedback from the survey is used to assess how Cooper can more effectively run the Company. Resulting actions from employee suggestions include:

• Continuing to invest in training and information technology tools to make employees’ jobs easier and business systems more productive

• Building on a companywide campaign to promote the five strategic business initiatives— customer loyalty, innovation, globalization, talent development and operational excellence

• Implementing an integrated talent blueprint to improve communications about the Company’s vision and hone our senior leadership’s effectiveness

Through 2009, 140 leaders companywide participated in Cooper University in Houston to enhance leadership effectiveness focusing on functional development, strategic thinking and compliance.

• Establishing a pay-for-performance compensation model and resurrecting the service award program to better recognize employee loyalty and accomplishments

• Creating career maps, working on succession planning and establishing a more rigorous talent review process

• Renewing focus on customer solutions

• Incorporating more technology into products and creating end user-specified solutions

The survey also indicated that Cooper employees have confidence in the Company’s senior leadership and their immediate supervisors, feel they are encouraged to behave ethically, find their work environment cooperative, and would recommend Cooper to a friend or relative.

OneTeam,OnePurpose,OneVision,OneStrategy

2009 Global Workforce

Lost Time Incident Rate**

Total Recordable Incident Rate*

Domestic

International

2009

2008

2007

0.380.20

0.31

0.46

0.22

2006

2005

0.700.80

0.901.20

0.40

Domestic

International

2009

2008

2007

2.080.40

2.44

2.99

0.40

2006

2005

3.501.10

4.201.70

0.64

International SalariedU.S. Hourly

U.S. SalariedInternational Hourly

22%

16%

20%

42%

0 1 2 3 4 5

0.0 0.2 0.4 0.6 0.8 1.0 1.2

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Employees

LaborRelationsAsof2009,approximately60%ofCooper’shourlyU.S.workforcewasemployedin43manufacturingfacilities,distributioncentersandwarehousesnotcoveredbylaboragreements.Severalcollectivebargainingagreements—15bargaininggroupsat17locationsintheU.S.—coveredtheremaining40%ofthehourlyU.S.workforce.In2009,CooperconcludednewcollectivebargainingagreementscoveringitsU.S.hourlyemployeesateightlocations.Cooperconsidersitsemployee relationstobeexcellent.

* Total recordable incident rates are based on Occupational Safety and Health Administration criteria.

** Lost time cases are ones where an employee misses a complete day of work after a workplace injury.

EmployeeDevelopmentAllsalariedemployeesreceiveregularannualperformanceandcareerdevelopmentreviews.Theperformancereviewandcareerdevelopmentprocessforhourlyemployeesvariesbydivisionand/orlocation.

2009 Global Workforce

Lost Time Incident Rate**

Total Recordable Incident Rate*

Domestic

International

2009

2008

2007

0.380.20

0.31

0.46

0.22

2006

2005

0.700.80

0.901.20

0.40

Domestic

International

2009

2008

2007

2.080.40

2.44

2.99

0.40

2006

2005

3.501.10

4.201.70

0.64

International SalariedU.S. Hourly

U.S. SalariedInternational Hourly

22%

16%

20%

42%

0 1 2 3 4 5

0.0 0.2 0.4 0.6 0.8 1.0 1.2

EmployeeSafetyMetricsOccupational health and safety is a high priority at Cooper.

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EmployeesTakingChargeOccupational safety and health is a high priority ingrained in the culture at Cooper. It is one reason Cooper has established a unique program, the Take Charge Safety and Health Awards, to increase awareness and promote effective management of safety and health proc esses at all of its facilities, with a goal of keeping accidents and injuries to a minimum. This program is a highly visible, effective means of reinforcing the importance of safety in every employee’s role.

The Take Charge awards recognize facilities that have outstanding safety records and demonstrate creative approaches to safety management. The program focuses on three key measurements for each competing facility: management of safety programs and systems, safety and health performance statistics, and innovations within the safety and health program. Cooper honors top performers on an annual basis with grants to local programs—such as fire prevention, emergency planning and CPR training—promoting community safety. Top performers have the freedom to select which local community programs benefit from the grant.

One of the most recent Take Charge award winners was Cooper Safety in Doncaster, England. The employees at this facility recognized that the electrical testing of the site’s manufactured lights included an inherent safety risk. Employees worked together to develop effective, engineered solutions for the product testing stations. The employees investigated and tried different safety systems until reaching a final design that error-proofed the risk. These solutions included guards that allow product flow but prevent hands from entering the test zone, continuously challenged interlocks, and remote controls and systems that verify current employee training and knowledge before the test stands will function. The changes not only improved safety for Cooper employees, but also added confidence in overall product quality. The safety initiatives implemented at the Doncaster facility contributed to the facility achieving, in March 2009, a cumulative 1 million hours of operations without a single lost time incident.

CaseStudy

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Community

Corporate giving and community outreach are pillars of Cooper Industries’ operating philosophy and

business practices. Cooper’s charitable giving reaches communities across the globe and comes

from the Cooper Industries Foundation, a 501(c)(3) nonprofit funded by Company contributions,

the corporate office and the operating funds of each business division. As an important portion

of Cooper’s overall community investment, the Company budgets corporate giving funds to each

business division as part of the annual planning process. The Company gives local Cooper business

leaders broad discretion in determining what will best serve their communities. This approach best

serves all of the interests at stake—giving back to society locally, while allowing Cooper employees

to concentrate on creating and delivering innovative products to customers, which, in turn, creates

the profits that allow Cooper’s charitable giving programs to thrive.

The Company’s corporate giving and community outreach—reported on a dollars expended basis—

supports education, health and human services, the environment, and arts and culture. The variety of

programs and grant requests funded by the Cooper Industries Foundation and the business divisions

reflects the diversity of Cooper employees and the places where Cooper operates. The following

highlights a sample of Cooper’s community investments.

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MatchingGiftProgramCooper supplements charitable contributions made by employees through a variety of matching gift programs companywide. To United Way alone, the Cooper Industries Foundation contributed more than $417,000 in 2009.

ScholarshipProgramThe Company’s scholarship program provides the children of full-time Cooper employees in the U.S., Mexico and Canada with an opportunity for educational advancement through one-year, non-renewable scholarship awards up to $5,000. Independently administered, the program provides scholarships for students pursuing a bachelor’s degree from a four-year university or who plan to study at a two-year community college or vocational school. Cooper awarded $150,000 in 2009. Selection criteria include academic merit, demonstration of financial need, evidence of outstanding character and extracurricular activities.

WestOremFamilyYMCAIn 2009, Cooper Industries Foundation completed a five-year grant totaling $125,000 for capital development of the West Orem Family YMCA in southwest Houston. The YMCA is a worldwide organization and one of the largest nonprofit community service organizations in the U.S.

The West Orem Family YMCA is now open, serving the underprivileged in approximately 54,000 households through family support services including athletic programs, preschool development programs and after-school childcare. One way Cooper’s grant is helping the community is through the YMCA’s Water Wise program, which provides swimming instruction and educates the community about drowning prevention through partnerships with the Texas Children’s Hospital and the Houston Apartment Association. As the second-leading cause of accidental death among children, child drowning has become of great concern with 32 children drowning in the greater Houston area in 2009.

JuniorAchievementExchangeCityIn 2009, Cooper Industries Foundation also completed a seven-year grant totaling $100,000 in support of Junior Achievement’s Exchange City in Houston. Through participation in a simulated city, Exchange City provides students with the opportunity to work in a city hall, post office, bank, restaurant, newspaper, radio station and retail stores. This program teaches students about economics and reinforces math, reading, speaking, decision-making, teamwork, problem solving and budgeting skills. As a result of this program, students learn how they can impact the world as individuals, employees and consumers and are better prepared to tackle economic and workforce issues.

* Contributions are made to both Republicans and Democrats who understand the concerns and needs of manufacturers and strive to improve the regulatory and legislative climate for businesses, the overall health of our economy and Cooper’s global competitiveness.

Political Contributions*

2009 $30,500

2006 $133,000

2005 $12,500

2007 $80,100

2008 $145,100

2009 $1,898,400

2006 $2,383,988

2005 $3,101,726

2007 $2,106,590

2008 $1,961,544

Charitable Giving

0 30000 60000 90000 120000 1500000 500 1000 1500 2000 2500 3000 3500

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Global ReportingInitiativeIndex

Profile Disclosure Description Page

1. Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization. 2

2. Organizational Profile

2.1 Name of the organization. Cover

2.2 Primary brands, products, and/or services. 4, 6

2.3 Operational structure of the organization. 4, 6

2.4 Location of organization’s headquarters. 4

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues

covered in the report. 4, See Note 1

2.6 Nature of ownership and legal form. 4, See Note 1

2.7 Markets served. 4, See Note 1

2.8 Scale of the reporting organization. 5, See Note 1

2.9 Significant changes during the reporting period regarding size, structure, or ownership. 6

2.10 Awards received in the reporting period. 10, 18

3. Report Parameters

3.1 Reporting period for information provided. See Note 2

3.2 Date of most recent previous report. See Note 2

3.3 Reporting cycle. See Note 2

3.4 Contact point for questions regarding the report or its contents. See Note 3

3.5 Process for defining report content. 2, 4, 6, See Note 2

3.6 Boundary of the report. 2, 4, 6, See Note 2

3.7 State any specific limitations on the scope or boundary of the report. Addressed Throughout the Report

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from

period to period and/or between organizations. 4, 6

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement. 12, See Note 2

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. See Note 2

3.12 Table identifying the location of the Standard Disclosures in the report. 30

4. Governance, Commitments, and Engagement

4.1 Governance structure of the organization. 4, See Note 4

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. See Note 4

4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. See Note 4

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. See Note 4

4.14 List of stakeholder groups engaged by the organization. See Note 4

4.15 Basis for identification and selection of stakeholders with whom to engage. See Note 4

Performance Indicator Description Page

Economic

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments,

retained earnings, and payments to capital providers and governments. 5, 29, See Note 1

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. 28–29

Environmental

EN4 Indirect energy consumption by primary source. 11

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. 19–23

EN20 NOx, SOx, and other significant air emissions by type and weight. 11

Social: Labor Practices and Decent Work

LA1 Total workforce by employment type, employment contract, and region. 25

LA4 Percentage of employees covered by collective bargaining agreements. 26

LA12 Percentage of employees receiving regular performance and career development reviews. 26

Social: Society

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. 29

Social: Product Responsibility

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. 17–18

NOTES:(1) Cooper Industries plc 2009 Annual Report, http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-reportsAnnual(2) “About this Report” on inside front cover(3) Inside back cover(4) “Corporate Governance-Highlights” on Cooper Industries’ website, http://phx.corporate-ir.net/phoenix.zhtml?c=75146&p=irol-govHighlights

Page 33: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

About This Report

The 2009 Cooper Industries plc Corporate Social Responsibility Report follows the release of the 2007 Cooper Industries, Ltd. Corporate Social Responsibility Report. As Cooper’s second corporate social responsibility report (CSRR), the 2009 CSRR represents Cooper through calendar year 2009 unless otherwise stated. To develop the 2009 CSRR, Cooper adopted the same scope, boundary and measurement methods that it used to develop the 2007 CSRR. Cooper intends to continue releasing a CSRR on a biannual basis.

Cooper’s 2009 CSRR conforms to the principles outlined in the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version 3.0 (G3). The GRI is a voluntary, internationally recognized framework for sustainability reporting that allows organizations the opportunity to measure and report their economic, social and environmental efforts in a consistent manner. The GRI also offers a variety of application levels, which show the extent to which G3 guidelines have been applied throughout the report and provide guidance on how organizations can continuously improve their reporting. Based on an internal review, Cooper determined that this report achieves a GRI C-level application.

Some statements in this report are forward-looking and relate to the manner in which Cooper intends to conduct certain activities, based on management’s current plans and expectations. The Cooper Industries plc 2009 Annual Report discusses important factors that could impact whether any of the forward-looking statements materialize.

For more information, contact:Mark DohenyDirector of Investor RelationsCooper [email protected]

Corporate HeadquartersCooper Industries plc5 Fitzwilliam SquareDublin 2, Ireland

Administrative HeadquartersCooper Industries600 Travis Street, Suite 5600Houston, TX 77002-1001713-209-8400

Mailing AddressCooper IndustriesP.O. Box 4446Houston, TX 77210-4446

Websitewww.cooperindustries.com

CreditsStrategy and Report Development: Burns & McDonnell / www.burnsmcd.comDesigned by Curran & Connors, Inc. / www.curran-connors.com

Cooper Industries is proud to be selected for inclusion in the highly respected socially responsible stock index, FTSE4Good, and leading intellectual property index, Ocean Tomo 300. For more information, contact Investor Relations.

Report Application Levels

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2002In Accordance C C B B A A+ + +

Page 34: Corporate Social Responsibility Report...Employees and Community Stakeholders who know Cooper are already familiar with the Company’s longstanding commitment to our employees, ethical

Corporate Social Responsibility ReportCooper Industries plc

Cooper Industries plc5 Fitzwilliam SquareDublin 2, Ireland

Administrative Headquarters600 Travis Street, Suite 5600Houston, TX 77002-1001www.cooperindustries.com

To view this report online or to download a PDF, visit www.cooperindustries.com.