PERFORMANCE THAT ENDURES - John Deere CA · John Deere machines such as the 9770 STS combine, 672D motor grader, ... e 2 2007 Citizenship Report Page 3 Vertis QCA 1300 19th Street,

D E E R E & C O M P A N Y 2 0 0 7 G L O B A L C I T I Z E N S H I P R E P O R T

PERFORMANCE THAT ENDURES

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John Deere machines such as the 9770 STS combine, 672D motor grader, 2500E hybrid greens mower, and 1270D forestry harvester shown on the cover use advanced technology such as GPS, precision sensors and electric drives to improve effi ciency and productivity and reduce environmental impacts. Wind turbines represent company investments in alternative energy.

Bringing agriculture to the city is the promise of the John Deere Forum, a new visitor attraction in Mannheim, Germany. Opened in conjunction with the company’s newEuropean headquarters building, the Forum has meeting rooms, an educational area, a library, a merchandise shop and a bistro that serves food and non-alcoholic beverages from the region. The facility’s display areas feature Lanz and John Deere vintage and modern equipment.

Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244

Cyan Magenta Yellow Black 2007 Citizenship Report Page 2 20

Table of Contents

Chairman’s Letter 4

John Deere at a Glance 6

Values 8

Four Founding Values Governance Ethics And Compliance Public Affairs

Stewardship 10

Environment Climate Change Safety & Health

Products 19

Dealers & Suppliers 22

Employees 24

Philanthropy 28

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Unless otherwise indicated, all capitalized names of products and

services are trademarks or servicemarks of Deere & Company.

This report was printed with soy ink on recycled paper.

e 2 2007 Citizenship Report Page 3 Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244

Cyan Magenta Yellow Black

John Deere’s Global Citizenship Report for

2007 celebrates the commitment and eff orts

of employees, dealers and suppliers around the

world. Th eir support is critical to carrying out

the company’s mission of distinctively serving

customers – those linked to the land – through

a great business. Th is year’s report also provides

insight into how the company operates

and achieves its purposes.

Our mission aff ects how we do business.

As the company delivers quality products

and services, it does so mindful of its

commitment to serving global com-

munities and society at large, to fair

dealing in all relationships, and to

minimizing environmental impacts.

By operating in this manner, we seek

to ensure that our actions result in

performance that endures.

In 2007, the company continued to make progress

in becoming a more resilient, high-performing

business. In large measure, our progress has been

achieved through the eff ective execution of our

strategies aimed at exceptional operating

performance, disciplined growth, and aligned

high-performance teamwork.

• Exceptional operating performance, stressing

rigorous attention to costs, asset management

and customer focus, has helped us deliver record

performance for four years in a row.

• Disciplined growth initiatives have extended our

presence into new products, new businesses, and

new geographies.

• Aligned high-performance teamwork focuses

on maximizing the impact of our talented

workforce through improved collaboration and

alignment.

Deere’s role as a leading corporate citizen is

consistent with our commitment to customers,

employees, communities, dealers and suppliers,

allowing us to deliver attractive returns to our

shareholders. We provide products of benefi t

to customers and society that are designed with

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respect for the earth’s limited resources. Our

company off ers employees safe and healthy

workplaces where they can develop to their

fullest potential. At the same time, we operate

our facilities and processes in a way that

minimizes environmental impacts. As a result

of these factors, we have been successful

growing a great business while helping foster

human fl ourishing.

Values

John Deere’s success executing its strategies is

directly attributable to a 171-year heritage of

integrity, quality, commitment and innovation.

Th e role of these values is summarized by a

statement, widely known by employees, that

how we achieve results is as important as the

results we achieve.

Leadership is critical to creating an environment

in which values are an essential part of every

transaction. Our independent board of directors –

I am the only Deere-employee member – helps

provide that leadership. Drawn from a range

of industries and sectors, these directors off er

useful insight while safeguarding the interests of

shareholders. Likewise, our business conduct

guidelines hold employees and suppliers

accountable for fair dealing, respecting others,

and obeying the law.

Stewardship

Wherever we do business throughout the world,

John Deere aims to improve productivity and

minimize environmental impacts. Our consistent

investment in state-of-the-art production

facilities is undertaken with environmental

stewardship in mind. One of Deere’s newest

facilities, a tractor factory in Montenegro, Brazil,

discharges no wastewater and was planned and

built using minimal-energy-use principles. In

2007, our facilities began working on plans to

reduce greenhouse gas emissions as part of the

company’s participation in the U.S. Environmental

Protection Agency’s Climate Leaders program.

We continue, as well, to support alternative

energy sources such as wind and ethanol.

Performance That Endures



Employee health and safety is also a priority at

John Deere facilities, which remain among the

safest in the world. In 2007, the company reduced

its already low injury-frequency rate. Many

locations have recorded millions of employee

hours worked without a lost-time injury.

Products

John Deere products are known for productivity

and effi ciency. Th e company’s investment of

more than $2 million a day in research and

development is aimed at maintaining that focus

for our customers. As an example, precision

agricultural technologies minimize input

requirements while increasing productivity.

Reduced tillage products limit soil erosion and

energy use. A blend of 5 percent biodiesel has

been certifi ed for use in most of the engines

powering Deere heavy equipment, and we

continue to work with standards-setting groups

to make quality biodiesel blends more widely

available. In addition, John Deere’s power systems

organization continues its 40-year focus on

improving engine effi ciency while lowering

emissions.

Employees

To achieve the company’s aim of growing a

business as great as its products, we depend on

employees from diverse backgrounds around

the world to discover innovative ways to meet

customer needs. Our Team Enrichment initiative

is helping establish an inclusive and collaborative

culture. Enterprise-wide processes focusing on

accelerated innovation leverage the inherent

creativity and problem-solving abilities of the

company’s skilled, committed workforce.

Dealers & Suppliers

John Deere dealers represent the company

to customers and communities in their trade

areas. Th ese valued business people and their

employees are held to high ethical standards

consistent with the company’s own code of

conduct. Dealers accept the responsibility of

enhancing John Deere’s name and reputation

wherever they do business.

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In addition, the company works with a high-quality

worldwide supply base to accomplish its mission.

Supplier performance is supported by an exacting

code of conduct that prohibits gift-giving or

improper payments to secure business and requires

compliance with all environmental, health and

safety regulations. Th e company’s vigorous

program to support small and diverse suppliers

brings innovation and fresh perspectives to

John Deere products, services and logistics.

Philanthropy

John Deere supports philanthropic eff orts around

the world through monetary contributions,

in-kind donations, sponsorships and memberships

as well as through employee volunteer eff orts.

Th e John Deere Foundation, based in the United

States, last year provided donations of some $11.2

million. In other countries, smaller foundations

and localized contribution programs support

organizations and projects of importance in their

communities.

Corporate citizenship is a vital part of daily

operations at John Deere and plays a major role

in our business success. Th is approach provides

performance and productivity to customers

as well as exciting career opportunities to

employees, resulting in a valuable return to

investors. Th ese elements, applied sustainably,

lend crucial support to our pursuit of performance

that endures and contribute to human fl ourishing

around the world.

Sincerely, 1 April 2008

Robert W. Lane

Chairman and Chief Executive Offi cer

Deere & Company

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Deere & Company and its affi liated companies manufacture, distribute, and fi nance a full line of equipment for use in agriculture, construction, forestry, and lawn and turf care; manufacture engines and other powertrain components for John Deere equipment and other manufacturers; and provide credit and other services to customers around the world.

The company markets its products primarily through a worldwide network of independent dealers supported by a decentralized marketing organization.

John Deere at a Glance



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1 Rosário, Argentina 2 Brisbane, Australia 3 Catalão, Brazil 4 Horizontina, Brazil 5 Montenegro, Brazil 6 Porto Alegre, Brazil 7 Edmonton, Alberta 8 Langley, British Columbia 9 Grimsby, Ontario 10 Welland, Ontario 11 Beijing, China 12 Jiamusi, China 13 Ningbo, China 14 Tianjin, China 15 Joensuu, Finland 16 Arc-les-Gray, France 17 Saran, France 18 Bruchsal, Germany 19 Gummersbach, Germany 20 Mannheim, Germany 21 Stadtlohn, Germany 22 Zweibruecken, Germany 23 Magarpatta City, India 24 Pune, India 25 Milan, Italy 26 Luxembourg, Luxembourg 27 Monterrey, Mexico 28 Saltillo, Mexico 29 Torreón, Mexico 30 Horst, The Netherlands 31 Tokoroa, New Zealand 32 Poznan, Poland 33 Moscow, Russia 34 Orenburg, Russia 35 St. Petersburg, Russia 36 Singapore, Singapore 37 Richards Bay, South Africa 38 Madrid, Spain 39 Schaffhausen, Switzerland 40 San Marcos, California 41 Torrance, California 42 Atlanta, Georgia 43 Augusta, Georgia 44 Quad-Cities, Illinois-Iowa 45 Des Moines, Iowa 46 Dubuque, Iowa 47 Ottumwa, Iowa 48 Waterloo, Iowa 49 Coffeyville, Kansas 50 Lenexa, Kansas 51 Thibodaux, Louisiana 52 Springfield, Missouri 53 Charlotte, North Carolina 54 Kernersville, North Carolina 55 Raleigh, North Carolina 56 Fargo, North Dakota 57 Greeneville, Tennessee 58 Horicon, Wisconsin

Financial Performance

Net Sales and Revenues (millions)

2005 2006 2007$21,191 $22,148 $24,082

Net Income (millions)

2005 2006 2007$1,447 $1,694 $1,822(Fiscal year ending October 31)

Environmental, Health and SafetyPerformance

Workplace Safety

Lost-Time Injury Frequency Rate

2005 2006 20070.29 0.27 0.25(Injuries per 200,000 hours worked)

Lost-Time Injury Severity Rate

2005 2006 20075.7 5.9 5.3(Days lost per 200,000 hours worked)(2006 results restated due to data collection error)

Environmental Impact

Total Waste

2005 2006 200764.0 62.0 61.8(Kilograms per ton of production)(Includes foundry sand and powerhouse ash previouslyreported separately; 2005 and 2006 totals restated)

Hazardous Waste

2005 2006 20072.09 2.05 2.30(Kilograms per ton of production)(2007 increase due in large part to factory demolition and clean-up activities; 2005 and 2006 results restated)

Greenhouse Gas Emissions

2005 2006 2007 0.61 0.61 0.56 (Metric tons of CO2 equivalent per ton of production)(Emissions measure changed to metric tons; 2005 and 2006 results restated)

Worldwide HeadquartersDeere & CompanyOne John Deere PlaceMoline, IL 61265-8098

European HeadquartersDeere & Company European Offi ceJohn Deere Strasse 7068163 Mannheim, Germany

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John Deere strives to conduct its business with a

passionate commitment to doing what is right

and operating ethically while providing products

and services that enable human fl ourishing. Th e

John Deere values – integrity, quality, commitment

and innovation – are fundamental guides and

measures in every aspect of the company’s

operations and an explicit part of its strategies.

Integrity means telling the truth, keeping our

word and treating others with fairness and respect.

Quality means delivering the value that customers,

employees, shareholders and other business

partners deserve and expect, every time we

interact with them.

Innovation means inventing, designing and

developing breakthrough products and services

that customers want to buy from John Deere.

Commitment means doing our best to meet

expectations over the long run.

Governance

A diverse and independent board of directors

provides rigorous oversight and expectations of

high performance. Members of the Deere board

also bring expertise, business skills, and strategic

global perspectives to guide the company’s growth

while maintaining its values. While current

by-laws require only that a majority of directors

be independent, Deere Chief Executive Offi cer

Robert W. Lane is the only board member who is

an employee of the company. Board policy calls

for many traditional functions of the chairman,

such as setting agendas, to be shared by all

directors. Further, the board makes extensive

use of the “presiding director” concept for

executive sessions and for specifi c subjects, such

as succession planning. Independent directors

annually review the performance of the company’s

chief executive offi cer regarding business results,

execution of strategies and development of

employees.

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Values

Business Conduct Guidelines

John Deere business conduct guidelines spell out

how employees are expected to act in carrying

out the company’s business. Employees are

expected to honor the rights and respect the

individual dignity of all persons globally, support

diversity and equal opportunity in employment

and freedom of association, work to provide safe

and healthy workplaces for all employees, and

reject the use of forced or indentured labor or

child labor.

Under the guidelines, business relationships must

be mutually benefi cial, serving the interests of

all parties. Further, commercial relationships

must not be tainted by favoritism or unethical

practices. Similarly, the privacy of employees,

retirees, dealers, suppliers and other stakeholders

must be respected.

Ethics and Compliance

Operating with the highest business ethics requires

vigilance. John Deere maintains a compliance

hotline for reporting possible violations of com-

pany ethics policies, and employees who suspect

or have knowledge of unethical or improper

actions are encouraged to report these concerns.

Th e hotline, available 24 hours a day, is backed

up with anonymous e-mail and a postal address

as alternative means for confi dential reporting.

John Deere’s Offi ce of Corporate Compliance helps

ensure consistency and compliance in a global

business environment of increasing complexity

of laws, regulations, and cultural practices.

Th e compliance offi ce conducts continuous

training, communications, and sharing of best

practices throughout John Deere’s operations to

ensure and enhance compliance with laws and

regulations. It also provides employee access to

global policies and off ers guidance on complex,

and sometimes ambiguous, business and cultural

situations.



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Members of John Deere’s board of directors, pictured with the company’s 9630T track tractor, are, from left:

• Joachim Milberg, Chairman, Supervisory Board, Bayerische Motoren Werke (BMW) AG

• Aulana L. Peters, Retired Partner, Gibson, Dunn &Crutcher LLP

• Richard B. Myers, General, United States Air Force (Ret.)

• Arthur L. Kelly, Managing Partner, KEL Enterprises L.P.

Public Affairs

Because accomplishing business objectives often

depends on sound public policy, John Deere places

a high value on involvement in the political process.

Th e Public Aff airs Worldwide group off ers

employee-involvement programs, including the

John Deere Political Action Committee (JDPAC),

a voluntary employee political contributions

program in the United States, and the

• Crandall C. Bowles, Chairman, Springs Industries, Inc.; Chairman, The Springs Company

• T. Kevin Dunnigan, Retired Chairman, Thomas & Betts Corporation

• Robert W. Lane, Chairman and CEO, Deere & Company

• Antonio Madero B., Chairman and CEO, SANLUIS Corporación, S.A. de C.V.

• Clayton M. Jones, Chairman, President and CEO, Rockwell Collins, Inc.

• Dipak C. Jain, Dean, Kellogg School of Management, Northwestern University

• Charles O. Holliday, Jr., Chairman and CEO, DuPont

• Vance D. Coffman, Retired Chairman, Lockheed Martin Corporation

• Thomas H. Patrick, Chairman, New Vernon Capital, LLC

John Deere Government Action Information

Network (JDGAIN). Th e latter program asks

employees to contact elected offi cials about

pending legislation of interest to the company.

Deere Public Aff airs advocates sustainable and

fair government policies and practices through-

out the world, and keeps employees informed

about world economic, political and civil aff airs.

Deere & Company Board Of Directors



As a global manufacturer, John Deere strives to

conduct business in a way that safeguards

employees, customers, community neighbors

and the environment. In the company’s view,

conducting business this way is a necessary

part of its pursuit of sustainable growth and

performance that endures.

Deere’s operating processes refl ect a commitment

to environmental protection through energy-

effi cient systems and waste reduction and

elimination. When investing in new products,

approaches or technologies, John Deere gives

preference to those that have the most favorable

environmental impact and safeguard customers.

Deere’s Environment, Health & Safety (EHS)

policy requires compliance with all applicable

EHS regulations wherever the company does

business. Deere makes EHS considerations a

priority in business planning, provides fi nancial

and human resources for EHS programs,

monitors performance, and promotes healthy

workplaces.

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Stewardship

John Deere’s environmental stewardship and

commitment to workplace safety are integrated

into the company’s operations throughout the

world by the John Deere EHS Management

System. Th e system includes a set of formal,

documented processes for controlling and

continuously improving environmental, health

and safety measures.

John Deere considers environmental protection

and employee safety to be the responsibility of

all employees. Along with training at initial

employee-orientation sessions, there is a required

curriculum for global unit managers, and

intermediate and advanced curricula for EHS

professionals. In addition, the company facilitates

opportunities for EHS leaders to stay abreast of

industry developments and share best practices.

In 2007, Deere’s EHS leaders met for a global

conference that helped participants understand

and prepare for changes in legislation, standards,

and company guidelines. Speakers included EHS

experts from other leading companies.

Renewable energy can play an important role in promoting cleaner air and reducing greenhouse gas emissions. John Deere has signifi cant interest in alternative energy sources, including wind energy.

John Deere Wind Energy, a business unit of John Deere Renewables, LLC, invests in and provides value-added services to wind projects. It offers project fi nancing and expertise in construction project management, wind turbine procurement, and wind energy technology and operations.

Developing Wind Energy

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John Deere routinely incorporates energy effi ciency into product design and facility updates. In this regard, John Deere Harvester Works reduced electricity needs for lighting by more than 25 percent with the recent installation of 32-watt, six-lamp fl uorescent fi xtures shown in the photo above throughout its main assembly and sheet-metal fabrication buildings. The lamps illuminate work areas with a whiter, more uniform light than the previous high-pressure sodium lamps.

In addition, the reduced demand for electricity contributes to a total of 3,000 fewer tons of greenhouse gases emitted into the atmosphere each year by the East Moline, Ill., combine factory. Carbon dioxide emissions contribute to climate change, and efforts to reduce them are one way to mitigate global warming.

As part of the company’s participation in the U.S. Environmental Protection Agency’s Climate Leaders program, representatives from Deere’s 15 largest global manufacturing facilities are working together to reduce emissions of greenhouse gases such as carbon dioxide. Every John Deere manufacturing location is responsible for identifying energy-saving projects as part of this effort.

Thus, John Deere Wind Energy serves as co-developer of commercial wind energy projects for a variety of customers and stakeholders. The company is involved in wind energy projects in commercial operation, or under development, in the U.S. states of Texas, Minnesota, Michigan, Illinois, Missouri, Idaho and Oregon, and continues to consider invest-ments in new projects and locations. The current portfolio includes projects capable of producing more than 600 megawatts of electricity. That’s

enough to power up to 180,000 homes.

John Deere’s involvement in wind energy builds on the company’s long-standing commitments to the environment and rural communities. Wind energy projects can provide additional income for land-owners, ranchers and other ag-related businesses, enabling them to directly benefi t from the production of renewable energy.

Pursuing Reduced Greenhouse Gas Emissions



Tracking Energy Useand Emissions

John Deere has had an energy management

program since 1973 that requires operations to

implement energy-conservation initiatives and

track energy use. In response to international

global-warming concerns, Deere added a

worldwide greenhouse gas (GHG) inventory

program in 2003.

In 2007, Deere announced it would work to reduce

GHG emissions as part of its participation in the

U.S. Environmental Protection Agency’s Climate

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Leaders program, a voluntary industry-government

partnership. Under the program, in 2008 Deere

will announce a comprehensive, company-wide,

six-year GHG reduction goal.

Deere’s GHG emissions, measured in metric tons

of carbon dioxide equivalent per ton of production,

are a mix of direct and indirect emissions. Direct

emissions come from operations such as foundry,

heat-treat, painting, powerhouse, and testing.

Indirect emissions result from demand for

electricity. Th e majority of greenhouse gas

emissions attributed to John Deere’s operations

are carbon dioxide.

W

64.0 62.0 61.8

05 06 07

Total WasteKilograms per ton of production

(Includes foundry sand and powerhouse ash previouslyreported separately; 2005 and 2006 totals restated )

2.09 2.05 2.30

05 06 07

Hazardous WasteKilograms per ton of production

(2007 increase due in large part to factory demolition and clean-up activities; 2005 and 2006 results restated)

0.61 0.61 0.56

05 06 07

Greenhouse Gas EmissionsMetric tons of CO2 equivalent

per ton of production

Indirect Emissions Direct Emissions

( Emissions measure changed to metric tons; 2005 and 2006 results restated )



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Plant-fi lled channels, left, help purify wastewater at John Deere’s Pune, India, tractor factory, a zero-wastewater-discharge facility. Industrial wastewater from sources such as parts washing and painting is fi rst treated by chemical and physical means then released to the channels where plant roots absorb organic material. As excess water exits each channel, it is tested for remaining pollutants, then used to water onsite trees and other plants. Facility sanitary wastewater is treated and run

through the channels and reused for irrigation as well.

Reducing or eliminating waste-water discharge is an important environmental goal for Deere operations throughout the world. At John Deere’s new Montenegro, Brazil, tractor factory, industrial wastewater is purifi ed through an ultrafi ltration membrane, polished by biological treatment, then used to water onsite vegetation. As a result, Montenegro sends only a few truckloads of ultrafi ltration

concentrate and machine coolant to a local treatment facility. Simi-larly, sanitary wastewater is treated biologically, disinfected, fi ltered and reused for onsite irrigation.

Through a process used by Regen Technologies, a John Deere joint venture in Springfi eld, Mo.,wastewater is distilled, clean water vapor released, and metals, greases and oils collected. What remains are fi lter cakes, which are sent to a local landfi ll as non-hazardous waste.

Wastewater Reused

At John Deere’s Zweibruecken Works, above, fi nding a better way to dispose of waste wood means the factory will reduce its annual greenhouse gas, or GHG, emissions by 3,500 tons.

In 2008, the German plant will install two biomass boilers that will generate energy to heat facilities, air-condition offi ces, and provide heat for various manufacturing processes.

The project will allow Zweibruecken to reduce direct GHG emissions from 5,100 tons a year to 1,600 tons.

Most of Zweibruecken’s waste wood comes from pallets received with inbound material. In addition, the factory will use other biomass material, such as rapeseed cake (a by-product of the production of rapeseed oil), forest residue and silver grass to operate the boilers.

Two boilers are being installed to accommodate different heat volumes needed throughout the year.

Creating Energy Onsite



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Sometimes fi nding ways to save energy means looking in places commonly overlooked. John Deere’s factory in Torreón, Mexico, above, found energy savings in air.

When the Torreón factory opened in 1997 to make diesel engines, axles, and transaxles, it had two air compressors. As operations grew, additional production equipment was installed and compressed-air requirements increased.

Over time, four additionalcompressors were added. While the patchwork of compressors and piping worked well enough, it was an ineffi cient system from the standpoint of energy use. Plus, the multiple-compressor network created a complex system of valves, condensation drains and air dryers that were prone to malfunction.

As a result, air-pressure drops were high – between 10 and 20 pounds per square inch – and expensive.

In response, Torreón installed a new system that consolidated six compressors into one. This created enough compressed air storage to meet demand peaks and substantially boost effi ciency.

Saving Energy by Saving Air

John Deere’s new Montenegro, Brazil, tractor factory, which began operations in 2007, is an example of how to build a factory with respect for the environment. About 25 percent of the 960,000-square-meter (237-acre) building site is maintained as undisturbed nature habitat. Marshlands, trees and wildlife habitat were preserved during construction. Trees listed by Brazil as protected fl ora were carefully relocated. Plus, four trees were planted for each one removed during construction.

Roof skylights and windows increase natural light within the 61,000-square-meter (657,000-square-foot) factory. Minimal-energy-use principles were followed to select energy-effi cient motors, lighting design, and the facility’s energy management systems. Environmentally safer refrigerants, like R-134a, are used for cooling systems.

Outside the factory, a retention pond controls storm water runoff. In addition, the site has no underground oil or chemical storage tanks or fl oor drains and has installed wells for groundwater monitoring.

What’s more, the factory uses low-emission paints and water curtain technology to control paint-booth emissions. Coolant from machining operations is closely managed to extend its life before being properly treated and recycled. Metal scrap, paper, wood, and plastics are sorted and shipped to recyclers.

Brazil Factory Designed for the Environment

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Creating a Safe Workplace

John Deere’s goal is zero injuries. Pursuit of this

aggressive goal, coupled with a long-held

emphasis on employee safety and health, has

made John Deere factories among the safest in

the world. Th e company’s worldwide injury

frequency rate improved 7 percent in 2007

compared with 2006. Th e severity rate improved

10 percent from levels already far better than

commonly found even in non-manufacturing

sectors. Enterprise-wide, Deere’s 2007 injury

rates were at their lowest point ever.

Ergonomics

One reason John Deere employees are so safe

on the job is the company’s long involvement in

ergonomics – designing work and workstations

to eliminate repetitive and awkward movement.

John Deere ergonomics specialists look for ways to adjust work so employees can work safely and comfortably. Often, ergonomic improvements lead to product quality and effi ciency gains.

That’s what happened in an ergonomics project at John Deere’s Mannheim Works. Assemblers who attach front axles to the frames of the tractors manufactured at the German plant once used a loud compressed-air tool in awkward

Improving Ergonomics, Quality

overhead positions to tighten each nut and bolt to the specifi ed torque.

Plant engineers developed a special front-axle nut driver, shown in use above. Now, as each suspended tractor frame comes down the production line, the nut driver is wheeled into place and raised to simultaneously connect the four nuts and bolts linking the axle and frame. Synchronized electric drivers torque down the nuts to pre-set levels, using information

stored in a database to ensure consistent quality.

Result: Employees at the workstation no longer experience extremely loud noises or awkward work positions. Total noise level at the work station has dropped more than 20 percent, eliminating the need for hearing protection, and torquing is much more precise.

5.7 5.9 5.3

05 06 07

Lost-Time Injury Severity RateDays lost per 200,000 hours worked

(2006 results have been restateddue to data collection error)

0.29 0.27 0.25

05 06 07

Lost-Time Injury Frequency RateInjuries per 200,000 hours worked

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Teams at all John Deere factories continually look for ways to be safer. The goal is for all employees to go home injury-free at the end of each shift.

In 2002, John Deere’s factories in Waterloo, Iowa, began requiring employees to remove rings from their fi ngers and wear appropriate gloves while working. The only exception was for those working with rotating or oscillating devices that might entangle a glove.

The new policy has dramatically reduced the number of hand and

Doing so helps reduce stress and eliminates many

potential injuries and disorders associated with the

overuse of muscles, bad posture, and repetitive

tasks.

Continuous improvement (CI) teams also

contribute to John Deere’s enviable safety record.

In the CI process, teams of production employees

set quarterly goals in quality, safety, effi ciency,

and delivery. Th e teams then undertake projects

to make their workplaces safer. Hundreds of

safety-improvement projects are completed every

quarter and the results widely shared throughout

the company.

Th e company encourages employees to apply

safety principles in their homes, too. By including

off -the-job injury statistics, safety messages target

risks away from work. In addition, many units

host safety and health fairs, stressing issues

ranging from hunting safety to cholesterol

screening and awareness.

Occupational Health and Industrial Hygiene

At many John Deere units, occupational health

and industrial hygiene professionals help evaluate

potential exposures to hazardous materials,

manage employee injuries and illnesses, and

protect the confi dentiality of medical information.

In addition, these professionals help units man-

age their medical emergency action plans.

Additionally, John Deere sponsors programs to

assist employees in maintaining and improving

their health and managing their personal and

work-life needs. Resources include health risk

assessments and coaching, and personalized

health education and support.

Th e company has also initiated a company-wide

planning procedure to prepare for the possibility

of pandemics. Individual factories and offi ces will

use the procedure to create local response plans.

John Deere continues to establish global occupa-

tional health programs to address ever-changing

health and well-being challenges as processes,

products, and regulations change. By further

understanding the public health issues and health

care infrastructure in specifi c countries, the

company can develop programs that best serve

employees who work and travel throughout the

world.

fi nger injuries. Case numbers are down 65 percent, from 191 in 2001 to 66 in 2007. Hand and fi nger injury rates (injuries per 200,000 hours worked) are down 76 percent, from 5.77 in 2001 to 1.39 in 2007.

The program is environmentally sound as well. After a period of use, gloves are double-washed, dried and sent through magnetic detection to check for metal shavings. Then they are reused – 4.4 times on average.

Going Home Injury-Free



17

Regularly cited as a leader in workplace safety, John Deere facilities and manufacturing operations are among the safest in the world. The company’s Cylinder Division in Moline, Ill., for example, has operated for more than 12 years without a lost-time injury.

In 2007, the U.S. National Safety Council presented 77 awards to John Deere units for their safety performances. Among the awards was the council’s 2007 Industry Leader Award, which went to Deere’s Waterloo (Iowa) Works for having the best safety record in the United States in the heavy manufacturing group. In addition, John Deere Turf Care in Fuquay-Varina, North Carolina, received the council’s Perfect Record Award.

The company has received 984 safety awards since NSC started its recognition program. At the end of the 2007 fi scal year, 21 John Deere facilities had each worked more than a million hours without a lost-time injury. Below are facilities that in 2007 reported the highest number of hours worked without a lost-time injury.

2007 Safety Landmarks

As part of a training exercise, an emergency response team, shown at left, practices tending to a victim in a simulated accident at John Deere’s factory in Horizontina, Brazil. Employees who volunteer to serve on the team are trained to provide fi rst aid at the combine and planter factory.

At John Deere workplaces throughout the world, teams are ready to deal with a range of emergencies, including medical, fi re, or weather-related situations, ultimately helping minimize injuries. The teams are trained to perform CPR (cardiopulmonary resuscitation) when necessary,

and, at many locations, are trained to use an AED (automatic external defi brillator). Some employees receive a higher level of training, enabling them to provide medical aid to the injured until local ambulance crews arrive.

Emergency response teams at John Deere locations are trained to provide a level of care at least as good as that required by local, state or country regulations. Training and certifi cation is usually provided by outside resources or agencies, while occupational health unit managers or safety managers arrange for appropriate training and staffi ng.

Emergency Response Teams

5.1 8.2 4.1 9.1 3.2 4.14.4 5.3 8.0

20.6

Augusta,Ga.

Des Moines, Iowa

Fuquay-Varina,N.C.

Greeneville,Tenn.

Jiamusi,China

Cary, N.C. Waterloo (Iowa)Works

Waterloo (Iowa)Engine Works

Units that Reported Millions of Hours Worked Without a Lost-Time Injury

Moline, Ill.Seeding

Group

Charlotte, N.C. Welland, Ont. Works

6.06.4

Moline, Ill.Cylinder Div.

Safety Landmarks Reported During 200724.8

CorporateOffices

Moline, Ill.

Nortrax

2.3

18

An infant named Faith was about a minute from dying when Dave Bingham, shown above, stepped in. By performing the CPR he learned in on-the-job safety training, Bingham saved the child’s life.

Bingham, an instrumentation and test mechanic at John Deere Dubuque (Iowa) Works, isn’t the only hero in the story. His 9-year-old daughter Gabby was at her grandmother’s when she heard a dispatch over the police scanner about a baby drowning in a pool. Gabby recognized the name and address as her family’s neighbors, and called to alert her father.

Bingham raced to his neighbor’s house to fi nd a hysterical parent on the phone with a 911 operator, and 17-month-old Faith lying lifeless on the fl oor.

Bingham’s instincts and CPR training kicked into gear. He immediately cleared Faith’s airway and started the life-saving procedure. Bingham stayed on the line with the 911 operator to make sure he was following the special CPR procedures for infants. By the time the emergency medical techni-cians arrived, Faith was breathing.

Just a few months prior to Faith’s accident, Bing-ham had participated in a CPR refresher course at Dubuque Works. It’s training that helped save Faith’s life.

As shown above, John Deere operations (green bars) have an excellent safety record, with injury rates below those common even in non-manufacturing sectors. (Data is for 2006, the last year for which industry fi gures are available.)

CPR Training Saves Life

0.18

0.20

0.21

0.32

0.50

0.71

0.70

1.00

1.00

1.10

1.20

1.20

1.20

1.40

1.40

1.60

1.80

1.80

2.10

2.20

2.20

2.20

2.40

2.70

2.70

(Sources: John Deere; U.S. Bureau of Labor Statistics)

0.46

John Deere Injury and Illness RatesCompared to U.S. Selected Industries

Frequency rate:Cases with days away from work per 200,000 employee hours worked

John Deere U.S. & Canada

John Deere China

Finance & Insurance

John Deere Mexico

John Deere South America

Electronic Equip/Computers

John Deere Europe

Apparel

Aircraft

Telecommunications

Lawn & Garden Equipt. Mfg.

Printing

Services

Grain Milling

Utilities

Mining

Food Mfg.

Furniture Mfg.

Farm Machinery & Equipt. Mfg.

Construction Machinery Mfg.

Motor Vehicles

Warehouse & Storage

Construction

Forestry & Logging

Iron & Steel Foundries

Trucking



19

Products

John Deere’s values – integrity, quality, commitment,

and innovation – are expressed in its products as

well as in the way the company makes and sells

them. Deere products are well known for their

quality, reliability, innovative designs, and perfor-

mance. What’s more, they incorporate features to

lessen environmental impacts or advance

sustainable production, effi ciency, and safety.

For example, John Deere Power Systems, which

manufactures diesel engines from 30 kW to

448 kW (40 hp to 600 hp), has been a leader in

reducing diesel engine emissions, and has shown

ways to harness engine power while minimizing

its impact on the environment.

John Deere is developing appropriate technologies

to address stringent emissions standards soon

taking eff ect in the United States and Europe.

Th e standards – Interim Tier 4 in the United States

and Stage III B in the European Union – aff ect

nonroad diesel engines. For engines of 130 kW

(174 hp) and above, John Deere plans to add

aftertreatment to its PowerTech Plus engine

technologies, which include variable geometry

turbocharging, cooled exhaust gas recirculation,

high-pressure fuel systems, four-valve cylinder

heads, and electronic controls. Many John Deere

engines under 56 kW (75 hp) already are Interim

Tier 4 and Stage III A compliant.

Besides engines, John Deere Power Systems makes

heavy-duty drivetrain components such as

transmissions, axles, planetary drives, and pump

drives for nonroad applications. As a result, the

company can skillfully integrate engines, drive-

train components, and electronic engine-control

units. Th is capability is important in maximizing

fuel economy and performance while meeting

emissions regulations.

John Deere continues to support the use of

biodiesel, which can be used in most of its

engines. An early adopter of biodiesel, Deere

continues working with standards-setting bodies

to promote the fuel. Biodiesel is a renewable,

oxygenated fuel commonly made from soybeans

or other oilseeds. It is biodegradable and nontoxic,

John Deere’s 1870 air seeder allows single-pass, low-soil-disturbance seeding for more accurate placement of fertilizer and reduced input costs while optimizing conditions for responsible stewardship of the soil. In reduced tillage systems, crop residues are retained on the fi eld, improving soil structure, reducing erosion, and improving moisture retention. Coupled with the company’s GreenStar 2 precision guidance and map-based prescription seeding, fertilizing, and fi eld documentation systems, the 1870 with Conserva Pak gives customers the most productive and environmentally friendly air seeders ever.

John Deere’s 210LJ landscape loader illustrates how the company includes environmental stewardship and safety in its designs. Besides its Tier 3-certifi ed John Deere PowerTech E engine, the machine sits low to the ground to enable safer grading under building eaves. The operator’s station has a wider platform and a seat that swivels for a better view of rear working tools.

Saving SoilWorking for safety

20

John Deere has been working to reduce engine emissions since 1967. That was when the company fi rst began emissions testing – years before governments recog-nized the need for standards (at left, a test lab at John Deere Product Engineering Center in Waterloo, Iowa). The company’s work over several decades has proven it is possible to maintain fuel effi ciency and engine performance while pursuing cleaner air. For example, keeping air intake temperatures as low as possible controls oxides of nitrogen (NOx). John Deere was the fi rst to use air-to-air charge air cooling in nonroad applications and has nearly 20 years’ experience using the technology.

John Deere engineers have employed three key technologies on the PowerTech Plus engines that reduce emissions and fuel consumption simultaneously: cooled exhaust gas recirculation, a variable geometry turbocharger, and a state-of-the-art engine control unit. Applying those tech-nologies has resulted in engines that meet nonroad emissions regulations set by the U.S. EPA and other bodies.

Deere launched Tier 3/Stage III A engines ahead of EPA and EU deadlines and is developing technologies to meet forthcoming Tier 4/Stage III B regulations.

Making Engines Work Better, Cleaner

produces less visible smoke and lowers engine

particulate matter, hydrocarbons, carbon monox-

ide and life-cycle carbon dioxide emissions. As a

renewable energy alternative, biodiesel reduces

dependence on petroleum and helps create more

stable markets for oilseed crops. It can be blended

with petroleum diesel to create a blend, such as

B20, or 20 percent biodiesel.

Machine performance is just one aspect of

John Deere’s focus on environmental impacts.

Just as important is what goes into the company’s

products and how they’re used.

• John Deere uses recycled or renewable materials

in its products, such as corn- and soy-based

plastics for components on combines and some

tractors.

• Reduced environmental impact is one benefi t

of no-till farming methods, pioneered by

John Deere. No-till methods leave crop residue

on fi elds, conserving moisture and reducing the

need for chemicals to control weeds and fertilize

the crop.

• John Deere’s GreenStar AutoTrac assisted

steering system further helps farmers conserve

agricultural inputs while decreasing environmental

impact and fuel consumption. AutoTrac uses the

global positioning system, or GPS, to steer the

vehicle down the fi eld, eliminating fertilizer and

seed overlaps, for example.

• John Deere Water Technologies sells high-

performance plastic micro- and drip-irrigation

products for the agricultural, nursery, and

greenhouse markets. John Deere Golf & Turf

One Source is a service platform through which

the company provides products and services such

as irrigation systems for golf courses. Both

businesses help customers eff ectively manage

water to improve plant health and reduce the use

of chemicals.

Resource conservation is aided by recycling, too,

and John Deere has been involved in remanufac-

turing for more than a decade. A Deere facility

in Canada provides remanufactured hydraulic

and powertrain components to makers of heavy

equipment. A joint-venture operation in Mis-

souri between John Deere and SRC Holdings Co.

remanufactures engines, fuel systems and engine

components.

21

Promoting Product Safety

John Deere strives to conduct business and design

products in a manner that safeguards customers.

Appropriate features are built into John Deere

products to help protect operators and others

from injury, illness and fatigue. Th e company’s

100 Series and Select Series lawn and garden

tractors, for example, provide an option that

requires operators to engage a switch to mow in

reverse. Th at helps ensure users check behind

them for hazards. Th e machines also have a brake

interlock that prevents starting the mower unless

the brakes are engaged.

At company factories, product safety committees

and product safety facilitators are involved in

product improvement and development processes.

Th ey conduct comprehensive safety reviews using

tools such as John Deere’s Hazard Discovery and

Rating System, checklist-based reviews, Failure

Modes and Eff ects Analysis, and the Quantitative

Safety Risk Assessment.

At the corporate level, the company’s Product

Safety Department works with factory safety

committees, especially during product technology

development, and provides coordination and

consistent processes for multiple-factory product

development projects. Th e department also

keeps units informed of safety developments and

product-safety professionals participate in trade

associations and standards development

organizations.

John Deere also works with customers, dealers

and external safety organizations to promote

proper use and maintenance of its products. Th e

company provides training resources such as

videos, posters, brochures, and guides, including

materials that teach children about safety. It also

supports child safety organizations, such as Farm

Safety 4 Just Kids. In addition, dealers are

encouraged to promote safety in their communities

through local John Deere safety days.

Besides regular training programs for professional

equipment operators, the company delivers safety

DVDs with new lawn and garden tractors. Deere

also has produced television programs to educate

property owners who may be unaware of standard

safety practices for the equipment they use to

maintain their land.

Building on its commitment to safety, John Deere is helping ensure the success of a New York program that retrofi ts tractors with rollover protection structures (ROPS) to help save lives.

The state legislature funded a ROPS rebate program in 2007 that reimburses New York farmers for most of the ROPS cost. John Deere dealers help, too, by ensuring clients’ ROPS kits are ordered, installed and properly documented for a rebate. In the program’s fi rst year, 351 ROPS were installed and funding has been approved for another year.

John Deere engineers developed ROPS, which, used with a seat belt, offers protection in the case of tractor rollover. In 1966, Deere shared the ROPS patent with other equipment manufacturers to improve safety for all farmers.

John Deere’s new 313 and 315 radial-lift skid steer loaders (above, a 315 model) advance operator safety by providing clear visibility to the sides and rear. An in-seat boom lock – a Deere exclusive – is engaged from the operator station. A triple-inter-lock park brake system ensures the operator is seated and the seat belt engaged for operation. Brakes automatically engage when the seat belt is unfastened.

In Europe, John Deere forage harvesters are already a popular and effi cient way to collect plant material for conversion to energy, often in biogas digesters. The same things that make forage effi cient for livestock feeding make material more effi cient for biogas digesters – compaction, length of cut, and dry-matter content, among other things. The John Deere 7050 Series self-propelled forage harvester introduced in 2007 includes features to optimize length of cut based on dry-matter content.

Retro ROPS Giving Safety a Lift Harvesting Energy

22

John Deere’s commitment to integrity and

social responsibility extends to businesses and

communities around the world through an

unparalleled dealer network and a diverse

worldwide supply base.

John Deere dealers, who are primarily

independent business people, are the face of the

company for most customers. Besides promoting

the John Deere line in their territories, dealers

accept responsibility for enhancing the company’s

reputation with customers. Th e company

actively seeks high-caliber, qualifi ed candidates

with diverse backgrounds. For Deere’s three

equipment divisions in the United States, more

than 220 dealers are women or members of

minority groups.

Th rough its training materials and guidelines,

John Deere works to help dealers operate safe

and environmentally sound businesses.

Training is available to dealer employees through

the company’s John Deere University. Subjects

include chemical management, spill prevention

and control, waste management planning, and

workplace and customer safety training.

Dealerships play an important role in local econ-

omies. Deere’s agricultural equipment dealers in

the United States generate more than $14 billion

in revenues, employ nearly 32,500 people, and

Dealers & Suppliers

spend more than $80 million in advertising, sales

promotion, professional services and employee

training annually.

Suppliers and the Code of Conduct

Suppliers are expected to abide by the John Deere

Supplier Code of Conduct. Based on Deere’s

own rigorous business-conduct guidelines, the

supplier code applies to all suppliers worldwide

and is available on the Internet in 18 languages.

Under the code, suppliers may not off er gifts to

John Deere employees nor make payments to

government agencies to gain business advantages.

Suppliers, in addition, are expected to comply

with child labor laws and must not engage in or

support use of forced or involuntary labor. Th ey

are expected to comply with all applicable local

laws concerning discrimination in employment,

provide safe working environments and comply

with safety and health laws and regulations.

Suppliers also must conduct their operations in

a way that protects the environment and comply

with all environmental laws and regulations.

Additionally, suppliers are expected to be familiar

with the business practices of their own suppliers

and sub-contractors and ensure that they, too,

operate in accordance with the code. John Deere

Besides operating successful businesses in their trade areas, John Deere dealers frequently are community leaders who get things done.

When a massive F5 tornado demolished Greensburg, Kansas, last year, Murphy Tractor, a Deere construction equipment dealer, donated the use of equipment to begin the cleanup.

Murphy Tractor also provided a crawler loader to a hard-hit neighboring county.

Throughout the cleanup, John Deere machines were instrumental. At left, a 444J loader ready to begin digging into rubble.

Dealers Helping Out

23

provides a reporting process through which sup-

pliers or their employees can anonymously report

potential violations.

John Deere relies on strong, competent suppli-

ers and a supply base that mirrors the diversity

of its customers worldwide. For that reason, the

company maintains programs to qualify and

help develop capable small and diverse suppliers.

Deere seeks out capable suppliers through a

supplier diversity Web site, supplier fairs and

other research. John Deere Supply Management

routinely works with small suppliers to help

them become more competitive by adopting

lean manufacturing principles. Th is is often done

through university partnerships such as one with

Tecnológico de Monterrey in Mexico, which

has helped two small suppliers in Chihuahua

and Toluca. Projects are also being developed

with universities in China, France and Canada.

Continuing programs are helping 31 John Deere

suppliers in eight U.S. states.

Shared values often lead to close relationships. As an example, John Deere and ocean transport supplier Wallenius Wilhelmsen Logistics collaborated on a Mis-sissippi River clean-up project in 2007. The project was created by Living Lands & Waters, a non-profi t group that assigned

Valuing Common Goals

John Deere dealerships are important businesses in their communities. Many have adopted the company’s signature showroom concept called John Deere Place (photo at left). It maximizes retail space to create a comfortable buying atmosphere, promoting a positive John Deere retail experience for customers.

The John Deere Experience

volunteers to pick up trash from the banks of creeks and rivers. Along with other volunteers, the 40-member team from John Deere and Wallenius removed 49,000 pounds of debris from the Mississippi River, including scores of tires.



24

Great people make John Deere a great company.

For this reason, the company works to ensure

that employees around the world have oppor-

tunities to develop their own potential while

providing goods and services that benefi t society.

Aligned High-performance Teamwork

Fulfi lling the company’s strategies depends on

aligned, high-performance teamwork – teams

that focus on results and common goals.

John Deere is working to establish that

performance-based culture as part of its eff orts

to grow a great business enriched by the aligned

eff orts of a worldwide workforce of more than

50,000 employees. Th e company’s job designs,

reward systems, and performance feedback

and development process are all constructed to

support aligned, high-performance teamwork.

Diversity is important to the company’s growth

plans. A diverse workforce encourages the

creativity and innovation critical to growth and

helps build a stimulating work environment.

John Deere wants to maximize diversity,

capitalizing on employee diff erences while

enabling all to realize their highest potential and

contribute to the enterprise and to society as a

whole.

In 2007, for the fi fth year in a row, John Deere was named one of the 50 best employers in the United States for workers over age 50 by AARP, a non-profi t membership organization. The award was established by AARP to honor employers who show a commitment to older workers like Francis Goedken (left) and Jose Luis Chinarro (center, right). Both employees have more than 50 years of service at John Deere.

Goedken started as a pattern maker apprentice in June 1955 and has spent his career at John Deere Dubuque Works in Dubuque, Iowa. The need for a

Employees

John Deere’s Team Enrichment initiative has

created a regional council structure to develop

processes and behaviors that support a diverse

workforce in an inclusive work environment.

Th e councils identify region-specifi c approaches

to teamwork. Employees from a variety of

backgrounds work together on identifi ed focus

areas, specifi cally to fi nd ways to encourage and

enable high-performance teamwork.

Th e company also is intent on maintaining close

working relationships with wage employees. In

addition to job training, wage employees learn

about Deere’s fi nancial and operating metrics

and, in most cases, share in the company’s success

when productivity targets are met.

Personal Development

John Deere’s career-development process helps

employees manage their careers. Th e process

identifi es paths that can build the skills, experience,

knowledge, and competencies needed for career

development and advancement. When job

openings occur, an extensive employee-résumé

system enables hiring managers to search for

individuals with the right skills and experience.

Training and education enable employees to

reach their potential in every discipline from the

factory fl oor to the corporate headquarters.

Valuing the Older Worker



25

John Deere has always relied on teamwork. Now, the company is working to build a formal environment aimed at creating and sustaining high-performance teams.

Under its Team Enrichment initiative, introduced in 2006, the company is creating stronger teams, positioning itself to compete for the best global talent, enhancing workforce diversity, and building a culture of inclusion.

John Deere’s long-term competitive advantage lies in how employees work together to capitalize on opportunities and execute strategies. Team Enrichment is designed to help the company understand what makes a team high-performing, and, importantly, how teams create an environment in which employees and future leaders from all backgrounds can develop.

In 2007, the initiative launched pilot Team Enrichment Councils (TECs) in the United States, Europe, and Latin America. Each council has identifi ed key focus areas that will further enable teamwork. This year’s regional projects are aimed at global team development, increasing diversity, understanding employee expectations, and developing leadership skills.

A fourth council, focusing on employees from businesses in the United States and Canada recently acquired by Deere, will be launched in 2008. An Asia TEC will be launched over the next year.

pattern maker went away in 2001. He now works on a cost reduction team, whose efforts he describes as interesting and challenging.

According to Chinarro, he was still wearing short pants when he started as a tooling apprentice at John Deere’s factory in Getafe, Spain, in October 1957. He, too, has spent his entire career at the factory, working in tooling, methods and time engineering, and supervision. Chinarro attributes many of the best experiences of his life to his employment at John Deere.

Enriching John Deere Teams

26

John Deere Learning, an online learning tool,

provides access to a range of colleges and course

curricula. It is used by employees in the United

States and Canada and is being expanded globally.

Leadership development, a global priority, is

provided at all leadership levels. Leadership

training is provided internally to supervisors and

managers around the world by certifi ed trainers

in employees’ native languages.

Over 100 John Deere advisors help employees

make sound decisions about managing their

careers. Coaching and mentoring services are

off ered to salaried employees interested in

enhancing their careers and work performance.

John Deere also helps employees continue their

educations, off ering tuition reimbursement and

assistance for associate, technical, four-year and

graduate degrees as appropriate.

Work-life Management

John Deere recognizes the challenges employees

face in balancing the many facets of their lives at

home and at work.

• Th e company off ers a variety of working

arrangements to help employees manage home

and work-life situations. Th ese include fl exible

schedules, telecommuting and job sharing. Deere

subsidizes daycare providers in some communi-

ties to help employees secure quality child care.

• Th rough its Healthy Directions initiative, the

company has introduced programs and resources

to help U.S. salaried employees focus on their

health and well being. Some larger facilities have

fi tness centers on site.

• John Deere also encourages employees around

the world to consider volunteering time and

other resources to personal causes, as well as to

workplace-sponsored projects.

Collecting food for hungry people has become a record-setting event for employees of John Deere’s Commercial & Consumer Equip-ment Division.

In their annual drive, C&CE employees collect and donate tons of food to charities in Germany, Canada and the United States. In 2007, more than 57 tons of food were collected for local charities where the division has facilities.

By collecting and donating food to help people in crisis, employees are expressing commitment – one of the company’s core values – to their communities.

They’re committed to making the program bigger and better as well. From 2 tons collected in 2002, the fi rst year the event was held, the collection went to 15 tons in 2003 and kept rising, to the record tonnage in 2007.

Organizations benefi ting from the food drive include Second Harvest Food Bank of Charlotte, N.C., and Greeneville, Tenn., Central Wisconsin Community Action Council, Oberbergische Tafel Soup Kitchen in Gummersbach, Germany, the Fuquay-Varina (N.C.) Food Bank, and Port Cares in Welland, Ont., Canada.

Employee GenerositySets New Record for Food Drive

27

John Deere supports a range of employee network groups around the world that bring together people with shared interests, backgrounds, skills or spe-cializations. Employee network groups develop goals related to business, career, and community. In the process, they help the company attract and retain top talent and achieve improved business results. Network groups support their local communities through events and sponsorships.

Employee network groups at John Deere include:

African-American: Dedicated to developing members’ skill sets to lead, assist, and excel professionally and to help improve recruitment and retention. In fi scal 2007, the network helped secure $3.35 mil-lion in sales to municipalities through relationships developed with the National Conference of Black Mayors.

Asian/Pacifi c Islander or LOTUS (Lead, Organize, Teach, Unite and Support): Aims to promote an inclusive, collaborative environment for all employees to help accomplish outstanding business results. In 2007, LOTUS sponsored and coordinated monthly lunch-hour informational events on career develop-ment, global supply management, China and India operations, IT innovation, and corporate business development.

Hispanic: Vision is unity within John Deere; mission is to lead, assist and support company effort to employ, develop, and retain Hispanics in the workforce.

Multicultural: Aim is bringing together employees from variety of racial and ethnic backgrounds to promote understanding, create an inclusive and collaborative environment, and foster personal and professional development. John Deere sponsors these network groups at many factory locations.

NEON (New & Experienced Organizational Network): Open to all employees, regardless of their years of experience, group focuses on both business and social-oriented events. Focus includes working to enhance the John Deere culture, cultivate employee morale, and improve employee productivity and retention.

Women REACH (Relating, Enriching, Achieving, Challenging and Helping): Creates an environment for women to learn, develop, and build professional relationships. Company has Women REACH groups in Cary, N.C.; Brazil (South America Employee Network); Horicon and Madison, Wis.; Mannheim, Germany; Johnston, Iowa; Quad-Cities, Ill. and Iowa; Thibodaux, La.; Tampere, Finland; and Pune, India.

If you are interested in an employee network group participating in your project or event, please send an e-mail to [email protected]

One way the Mannheim Women REACH employee network group widens the horizons of its members is through tractor training. The yearly event, held at the company’s training center in Bruchsal, Germany, brings people together to learn about John Deere equipment and have fun, too.

Employee Network Groups Add Value



28

Th e company’s primary philanthropic arm is the

John Deere Foundation, which donated $11.2

million in 2007 in the areas of education, human

services, arts and culture, community develop-

ment, and its newest initiative, Solutions for

World Hunger. Notable contributions included a

$1 million donation to Purdue University’s Neil

Armstrong Engineering Building to develop a

permanent exhibit encouraging the study of math

and science. Th e company also renewed a three-

year, $3 million grant to KickStart, a non-profi t

organization helping lift African farmers out of

poverty. In addition, the John Deere Foundation

continued its signifi cant annual support of two

organizations through both fi nancial donations

In a country with 120 million hectares (about 300 million acres) of farmland, much of it under-developed, the need for modern agricultural equipment is great. So, too, is the need for trained technicians. As part of its com-mitment to advancing agriculture education in the country, John Deere Russia donated two grain combines to Orel State Agri-cultural University (OSAU).

The 9560 and 1175 model com-bines were presented in a special ceremony at the school’s

Philanthropy

and employee participation: Junior Achievement,

which educates young people about business and

economics, and United Way, an organization

aimed at improving communities by mobilizing

people and resources.

Commitment at the Facility Level

At the facility level, John Deere continued to make

positive and lasting impacts in communities.

• Th e company’s Waterloo, Iowa, operations have

a long history of supporting community develop-

ment in the Cedar Valley area. In 2007, the unit

facilitated a donation of more than $17.4 million

in buildings, land, technical assistance and fi nan-

cial resources to a nonprofi t group developing a

bio-based, agri-industrial product development

and exposition marketplace. Th e initiative, Cedar

Valley TechWorks, is being developed over several

years on about 40 acres of land that formerly

housed part of Deere’s Waterloo operations.

• John Deere Dubuque (Iowa) Works was awarded

the Outstanding Philanthropic Organization

award in 2007 by the Greater Tri-State chapter

All-Russia Education Day in September 2007. Representatives from John Deere and Russian government offi cials were among the 1,000 in attendance, along with OSAU students and faculty.

One of Russia’s premier agricultural universities, OSAU is located in the city of Orel, about 350 kilometers (220 miles) southwest of Moscow. Combines will be used to train students in agricultural machinery classes both on campus and in nearby test fi elds.

Supporting Ag Education in Russia

Arts and Culture

Community Development

Education

Health and Human Services

Solutions for World Hunger

John Deere Foundation2007 Contributions

29

The World Food Prize recognizes individual con-tributions in advancing human development by improving the quality, quantity or availability of food. It also helps develop the individuals who will provide those contributions in the future. Its Youth Institute is devoted to increasing awareness of the prize among young people in Iowa and beyond. An extension of the institute, the Borlaug-Ruan Intern-ship program sends talented high-school students to agricultural research centers in Africa, Asia and Latin America each summer to work with noted scientists.

A portion of the John Deere Foundation’s $100,000 contribution to The World Food Prize in 2007 was earmarked to support two of the institute’s interns.

Jack Hou (inset, above), now a student at Iowa State University, spent his eight-week internship at the Brazilian Corporation of Agricultural Research (Embrapa) in Londrina, Brazil. He helped analyze a soybean fungus that caused sudden death in soybean plants and posed a widespread problem for farmers in Southern Brazil.

For her internship, Katie Seiser Taylor (at left, above) of Des Moines, Iowa, spent the summer at the M.S. Swaminathan Research Foundation in Chennai, India. Working under the guidance of an ecotechnologist, she helped promote a self-help group concept designed to lift women and their families out of poverty. She also provided instruction on basic fi nancial skills and record-keeping.

From Iowa to the World

30

India is a country that values education. Employees at John Deere’s tractor factory near Pune are helping ensure that some of the area’s youngest citizens learn in the best environment possible.

Members of the factory’s social responsibility committee have adopted education as a focus of the plant’s philanthropic efforts. Now, employees have begun a program to provide for the basic needs of fi ve area schools that together have an enrollment of 2,800 students ranging in age from 4 to 14 years old.

Visiting the schools, committee members saw students sitting on fl oors for their lessons, teachers standing all day, a lack of clean drinking water, limited school supplies, and broken toilets, windows and doors.

In response, the committee began raising funds and gathering volunteers. The fi rst step was outfi tting schools with desks, chairs and educational materials. This year, employees will arrange for building maintenance and donate computers and other necessary school supplies.

of the Association of Fundraising Professionals.

Th e unit was cited for its numerous community

involvement activities, as well as for its leadership

roles on community boards and overall fi nancial

support of community initiatives.

• In Fargo, N.D., John Deere’s Phoenix Interna-

tional unit is a leading supporter of the Troll-

wood Performing Arts School. Phoenix con-

tributes to Trollwood’s Students at Risk (STAR)

program, which introduces the arts to under-

privileged children.

Global Philanthropies

Elsewhere, the John Deere Foundation of Canada

focused 2007 giving on hospitals and health

organizations, a hospice and Habitat for Human-

ity. In addition to fi nancial support, employees

helped build Habitat houses. Education support

included awarding scholarships at many universi-

ties across Canada.

• In Europe, the John Deere Goodwill Fund

continued its partnership with the International

Garden in Mannheim, Germany, where recent

immigrants are encouraged to work with local

citizens in planting and growing fl owers and

vegetables in an urban setting. In addition, the

Goodwill Fund in 2007 supported the Heidelberg

Center of American Studies’ Spring Academy.

Th is international forum gathers scholars to

discuss their work on American Studies, in hopes

of creating a better understanding of American

culture amongst Europeans.

• Fundação John Deere in Brazil supports social

services, multiple forms of health services for

employees, arts and culture, and sports. Each of

Brazil’s fi ve units chooses various social responsi-

bility programs each year aimed at improving the

quality of life for their employees and communi-

ties. In addition, Fundação John Deere promotes

volunteerism among employees and their families,

even conducting workshops that teach the funda-

mentals and responsibilities of being a volunteer.

Sponsored Programs

Sponsored Programs, through which John Deere

supports diverse business and marketing activities

of value to the company, continues to be an impor-

tant part of the company’s philanthropic eff orts.

Non-profi t organizations supported through

corporate sponsorships include the following:

National FFA, Society of Hispanic Professional

Engineers, National 4-H Council, U.S. Jaycees

Better Local Education



31

When the world’s largest manu-facturer of agricultural equipment partners with one of the world’s leading university agricultural engineering programs, exciting things happen.

Biorenewable fuel sources are at the forefront in addressing the world’s long-term energy needs and are also important in response to the issues of global climate change and environmental sustainability. The John Deere Foundation’s $1.25

million grant to Iowa State University, Ames, Iowa, for construction of an agricultural and biosystems engineering facility (architect’s rendering, above) will help ensure biorenewables reach their full potential. The building is part of a planned multi-structure complex that will include ISU’s Bioeconomy Institute.

The development of biorenewable fuel sources holds exceptional

opportunity for developing new crops and new markets for the agricultural economy.

Iowa State’s agricultural and biosystems engineering programs are widely recognized for excel-lence. ISU therefore is in a strong position to provide leadership and technical support to the biorenewables effort. Both are essential to producing renewable fuels on a large scale and in an economical, sustainable manner.

Outstanding Young Farmer program, Skills

U.S.A., and Minorities in Agriculture, National

Resources and other Related Sciences

(MANRRS).

Community Relations

John Deere strives to be a good corporate citizen

by improving the quality of life in communities

where it has facilities. In recognition of its eff orts

at the community level, John Deere received the

American Red Cross’ highest recognition award,

the Circle of Humanitarians Award, in 2007. It

was the fourth consecutive year Deere received

the award, which recognizes businesses making

annual fi nancial and in-kind contributions of

$1 million or more.

Fueling Our Future

Citizenship HighlightsEffi ciently harvesting saw logs and biomass while contributing to a healthyforest, John Deere’s biomass harvesting system uses the 1490D energy wood harvester to turn residue into fuelbundles.

• John Deere ranked 4th on list of “100 Best Corporate Citizens” by CRO magazine, a journal for corporate responsibility offi cers.

• Company units receive 77 awards from National Safety Council.

• Showing commitment to the alternative energy market, John Deere Renewables expands business services; generating capacity of wind projects approaches 600 megawatts.

• Building on its record of environmental stewardship, John Deere joins U.S. EPA’s Climate Leaders program and holds greenhouse-gas summit to plan company-wide emissions reductions.

• Company named one of U.S. best employers for workers over age 50 by non-profi t organization AARP.

• John Deere ranked No. 1 in Fortune magazine list of “Most Admired Companies” in Industrial and Farm Equipment category, based on survey of industry executives, directors and analysts.

• For fourth year in a row, John Deere recognized with the American Red Cross’ Circle of Humanitarians Award.

• John Deere China announces it will begin providing scholarships and special training programs to students at Tianjin University, one of top engineering schools in China.

• US Black Engineer and Information Technology magazine lists company among those most supportive of Historically Black Colleges and Universities.

• John Deere named one of “Best Diversity Companies” in survey of readers of Diversity/Careers in Engineering & Information Technology magazine.

J Series backhoe loaders (410J TC shown) are designed to let operators see the work better, change attachments from the cab. Auto-idle feature saves fuel; ride control improves handling on rough ground.

The Gator TE utility vehicle provides quiet, electrical operation. Powered by a standard 48-volt system, the zero-emissions machine boasts fast acceleration, improved climbing power, and performs evenly until recharge.

John Deere’s E-Premium Series tractors are the fi rst to have on-board electrical power networks that can power engine accessories, contributing to fuel savings and boosting performance.

Documents

PERFORMANCE THAT ENDURES - John Deere CA · John Deere machines such as the 9770 STS combine, 672D motor grader, ... e 2 2007 Citizenship Report Page 3 Vertis QCA 1300 19th Street,