A New Way to Lead in Sustainable Business: Regenerative Impact

Regenerative impact

Regenerative impact is about a new way of doing business, where companies like ours catalyze collective action to make a positive contribution—to the environment, to the economy, to our communities. It’s a new way of thinking about technology, investment, strategy, and people. It exists beyond and outside of our traditional categories of business and sustainability as separate spheres.

The common thread—momentum. Collective action that creates positive impact that generates inclusive growth…and on and on in a virtuous cycle.

The work of Andrew Winston, member of the Trane Technologies Advisory Council on Sustainability, and Paul Polman, former CEO of Unilever, has been influential in our thinking. In their book Net Positive: How Courageous Companies Thrive by Giving More than they Take, Winston and Polman define a net positive company as one that “improves well-being for everyone it impacts and at all scales… even future generations and the planet itself.” The authors concede that we are living through an unprecedented matrix of challenges—and that solving them is “the greatest economic opportunity of our time.”

Our chair and CEO, Dave Regnery, said earlier this year in an interview on Mad Money: “It’s not often you find the incumbent that’s also a disruptor. But that’s who we are.” We’re honest enough to know that the way we have been doing business now requires a shift. And we’re confident enough to know that we will find a new way.

The technology exists today

When we think about reducing global emissions, we often think a lot about driving less and reducing our reliance on fossil fuels through the electrification of vehicles. And there is a lot of exciting work being done in this area. But 15% of the world’s annual greenhouse gas emissions actually come from the heating and cooling of homes and buildings (with the bulk from heating). The electrification of heating provides a tangible opportunity to significantly reduce carbon footprints. And the great news is that the technology exists today to address this. We are transforming the way the world creates comfort in buildings and the necessary temperatures for industrial operations—dramatically reducing energy use and other resources along with reducing carbon emissions in the process.

For example, we have long led the industry in using thermal storage for cooling. Now, we are applying the technology in a new way, an industry first. Our Thermal^TM Battery Storage-Source Heat Pump System is a first-of-its-kind solution to advance electrified heating in buildings, including in climates below zero-degrees Fahrenheit. This all-electric solution converges three proven technologies to accelerate building decarbonization: thermal energy ice tanks, all-electric chiller-heaters supporting air-to-water heat pumps and intelligent controls. The system brings heating and cooling into one solution, eliminating the need for an oil or gas boiler, and is three times more efficient than traditional heating and cooling methods.

Why I’m optimistic about a net-zero future

I think for many years the general public saw our work as being about “the environment”—a vague concept that included remote grasslands and endangered species, a “nice to have” after safe communities and good jobs. I think this summer, everyone is beginning to understand that “the environment” is us. 

I’m currently at Climate Week NYC, engaging with policy makers, sector leaders, sustainability advocates and environmental NGOs. This gathering has fostered diverse coalitions, inspiring me to transform collective action into tangible, positive impact. I’m determined to promote inclusive growth and perpetuate a cycle of regenerative impact.