Xylem : 2024 Sustainability Report

2024 Sustainability Report

2024 Sustainability Report 2

‌2‌

Contents

About this report 03

Letter from the CEO and CSO 04

2024 highlights 05

About Xylem 06

Sustainability at Xylem 08

Driving impact, innovation and growth 09

Our impact 10

Our strategic pillars 13

Our sustainability goals 14

Sustainability governance 22

Sustainable finance 25

Innovation 26

Advancing sustainability 27

Ratings and recognitions 29

Impact on the environment 30

Operational sustainability 31

Water management 32

Energy efficiency and emissions reduction 33

Resource use and circular economy 38

Biodiversity 42

Product sustainability 43

Impact on society 46

Human rights 47

Our people 48

Health and safety 60

Responsible sourcing 63

Driving community impact 67

Responsible business conduct 76

Ethics and compliance 77

Cyber security 79

Intellectual property 80

Political engagement 81

Appendix 82

Accounting principles 83

Datasheets 87

Reporting frameworks 89

Assurance statement 94

‌

About this report 2024 Sustainability Report 3

About this report

The 2024 Sustainability Report describes our approach and performance on the sustainability topics that are of most interest to our stakeholders, including where Xylem can have the greatest impact. The term "material" or "materiality," as used in this report, is based on a different definition of materiality than that used in the U.S. federal securities laws.

This report, published in April 2025, encompasses our fiscal year from January 1, 2024 to December 31, 2024, for all entities under Xylem's operational control.1

It was prepared with reference to the GRI Sustainability Reporting Standards. We also integrated disclosures in accordance with the standards of the Sustainability Accounting Standards Board (SASB).

Selected data on key performance indicators is subject to limited assurance by Lloyd's Register Quality Assurance (LRQA) and can be found on pages 94-95.

To share your thoughts and suggestions, please contact us at [e-mail].

Forward-looking statements

The statements included in this document and the materials or websites it may cross-reference regarding future performance and results, expectations, plans, strategies,

priorities, commitments, and other statements, including those related to our societal, environmental, and other sustainability goals, that are not historical facts are forward-looking statements within the meaning of the U.S. federal securities laws. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "forecast," "likely," "believe," "target," "will,"

"could," "would," "should," "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements.

Forward-looking and other statements included or cross-referenced in this document regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook or strategy, or

to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the Securities and Exchange Commission or other regulatory authorities, and are not intended to create legal rights or obligations. In addition, historical, current, and forward-looking social, environmental, and

sustainability-related statements may be based on standards for measuring progress that are still developing; internal controls and processes that continue to evolve; third-party data, review, representations, or certifications; information from acquired entities, which may be subject

to ongoing review, may not yet or ever be integrated into our reporting processes, and may not be reconcilable with our processes; and assumptions that are subject to change in the future.

Forward-looking statements are based upon current beliefs, expectations, and assumptions and are subject to significant risks, uncertainties, and changes in circumstances are difficult to predict, often beyond our control, and that could cause actual results

to differ materially from the forward-looking statements. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is provided in "Item 1A. Risk Factors" in our Annual

Report on Form 10-K, and include changes in legal and regulatory requirements, business conditions, and stakeholder expectations.

Readers of this report are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. We expressly disclaim any obligation to update or revise any forward-

looking statements, whether as a result of new information, future events, or otherwise, and despite any historical practice of doing so. The information and statements in this document speak only as of the date of this document and are subject to change without notice.

1 In the fourth quarter of 2024, Xylem announced the acquisition of a majority stake in Global Omnium Idrica, S.L. ("Idrica") and the acquisition of Heusser Water Solutions AG. Due to the timing of these transactions, their sustainability data will not be included in Xylem's 2024 Sustainability Report but will be fully integrated into the 2025 reporting cycle.

‌About this report

2024 Sustainability Report 4

A sustainability advantage to Xylem and our customers

Dear stakeholders,

Water is the foundation of healthy communities, resilient economies, and thriving ecosystems. But that foundation is under mounting stress. Water is becoming scarcer, weather patterns are becoming more volatile, and contaminants continue to threaten the safety and quality of our drinking water. These intensifying water challenges call for urgent action to safeguard our communities, serve

as a catalyst for prospering economies, and secure reliable access to clean water for generations to come.

We see these challenges as an opportunity to create lasting impact. We know what's possible when we collaborate with our customers

and communities to turn water challenges into progress. That is why sustainability is embedded in our business strategy. It powers innovation, growth, and resilience. Better sustainability outcomes make Xylem more competitive and deliver tangible value to the people who make water work every day.

2024: A year of impact

In 2024, we maintained our focus where we have the greatest impact: conducting our business responsibly and empowering our customers and communities to become more water-secure. This year marked significant milestones in our sustainability journey:

Progress on our product-based Customer Sustainability Goals: We delivered on all four of our 2025 Customer Sustainability Goals ahead of schedule. The completion of our final goal - reducing non-revenue water by more than 3.5 billion cubic meters since 2019 - underscores the synergy between sustainability outcomes and customer value. Reducing energy use and water loss helps customers lower operating costs, make infrastructure more efficient and affordable, lower energy and emissions, and strengthen resilience against climate-related risks.

Enhancing our advanced analytics offering:

In December, we acquired a majority stake

in Idrica, strengthening our Xylem Vue digital suite with advanced analytics. This investment empowers customers with real-time insights to reduce water loss, optimize performance, and cut costs while helping utilities build smarter, more resilient, and sustainable water systems.

Supporting our people: With the integration of legacy Evoqua, a refreshed strategy, and a strengthened leadership team, we have fostered a High-Impact Culture built on three core behaviors - inspired to innovate,

empowered to lead, and accountable to deliver

- driving us to move faster, stay focused, and execute with greater impact for our customers and communities.

Advancing in our safety performance:

Our continued focus on workplace safety resulted in a more than 14% year-over-year improvement in our injury frequency rate, demonstrating our commitment to employee well-being while driving operational efficiency.

Driving community impact: Through Watermark, our corporate social responsibility program, 79% of Xylem colleagues volunteered more than 220,000 hours, doing meaningful work in communities worldwide. Alongside our global nonprofit partners, we responded

to 43 disasters, delivering humanitarian aid - including pro-bono emergency water treatment and dewatering solutions - during crises in Brazil, India, the Philippines, the United States, Poland, and Spain.

Investing in water access and climate resilience: We joined WaterEquity's Water & Climate Resilience Fund as a strategic investor, supporting projects and growth companies across the water value chain

- including bulk water supply, distribution, wastewater treatment, and reuse. At full scale, the fund aims to provide safe water or sanitation access to 15 million people across Africa, Asia, and Latin America.

Continuing to drive energy efficiency and emission reductions: In December, our 2030 science-based targets were validated by the Science Based Targets initiative, affirming our commitment to reducing GHG emissions in our operations and value chain.

Looking ahead to 2030

As we look forward, we will continue to provide innovative solutions and services that help our customers to meet their objectives and to deliver clean water, treat wastewater, lower operational risk and cost, and protect public health in their communities.

Our 2030 Sustainability Goals launched in May 2024 set a higher bar for impact, focusing on reducing water-related emissions, enhancing water reuse, and expanding equitable access to water and sanitation. These goals reflect our ambition to be a catalyst for change across the water industry and position us to help build a future where people and nature thrive.

A water-secure future is possible. But it will take bold ideas, deep collaboration, and unwavering commitment. The Xylem team around the world is proud of the work we do to empower our customers and communities to build a more water-secure world.

Thank you for your continued trust and partnership.

Matthew Pine

President & Chief Executive Officer

Claudia Toussaint

Chief Sustainability Officer

About this report 2024 Sustainability Report 5

2024 highlights

Science-based targets approved

The Science Based Targets initiative approved Xylem's 2030 science-based targets in December 2024.

New 2030 Sustainability Goals

We announced our new 2030 Sustainability Goals aimed at accelerating water stewardship and advancing water security.

All four 2025 Customer Sustainability Goals achieved

Having previously achieved three of four 2025 Customer Sustainability Goals, we delivered the fourth in 2024

- enabling customers to reduce more than 3.5 billion cubic meters of non-revenue water since 2019. Completing all 2025 Customer Goals ahead of schedule is a great milestone for Xylem and underscores our capability to enable customers to lower GHG emissions, reduce water demand, and protect water resources.

Employee volunteerism

79% of our ~23,000 employees volunteered more than 220,000 hours for Watermark, our corporate social responsibility program, impacting communities worldwide.

Sustainable supply chain

42% of our global supplier base by spend completed EcoVadis assessment and maintained an active scorecard.

Improved safety YoY Enabled WASH access for 9+ million people in 5 years with Americares

Through our partnership, we have improved access to WASH services in 25 countries, with a focus on improving water, sanitation and hygiene in community health centers that serve people living with low incomes, in low-resource communities - those who are most affected by disease and disaster.

We achieved an injury frequency rate of 0.52, which is an improvement of more than 14% compared to 2023.

Empowering digitalization of water

In December, Xylem acquired a majority stake in Idrica, a leading provider of water data management and analytics solutions. This strategic move, which combines Xylem's existing digital water solutions portfolio with Idrica's technology platform, empowers customers to address critical challenges with

real-time insights. The combination enables a simpler, more powerful customer experience.