Sustainable InvestingArticle
Changing the Course of Climate Change through Action
January 18, 2022
We believe sharing our climate action commitments and plans with the world can help change the future of planetary and human health.
Every day the world adds to the level of greenhouse gases in our atmosphere. This is raising average temperatures closer to 1.5° C above pre-industrial levels, which climate experts say is the tipping point for climate change. While progress is being made on building alignment in important global forums like COP26 and the World Economic Forum (WEF) Annual Meeting, we’re at a critical stage, and need more action, now.
Our company has been setting and achieving ambitious climate goals for some time – starting with our 2020 sustainability goals that set the course for what’s possible. As we built our 2030 Sustainability Commitments, we embraced an even bolder course for our industry, and the world.
We also understand the importance of emissions-reduction targets backed by science. Today, along with Trane Technologies, nearly 1,000 companies have set science-based targets for carbon reduction. We are among a subset of just 47 companies that have had their carbon emission goals validated by the Science Based Targets Institute (SBTi) twice. And while that puts us in good company, imagine what would happen if every company took action toward similarly ambitious science-based objectives.
I believe our experience, optimistic outlook, and bold approach can help guide others in building their climate action plans. This is why we’re playing an active role in action-oriented dialogues and forums like COP26 and WEF Dialogues and continue to join alliances like the WEF Alliance of CEO Climate Leaders and First Movers Coalition.
Today, along with Trane Technologies, nearly 1,000 companies have set science-based targets for carbon reduction. And while that puts us in good company, imagine what would happen if every company took action toward similarly ambitious science-based objectives.
Compelled to act. Positioned to lead.
Our industry has an enormous opportunity to reduce emissions and energy usage – 15% percent of global greenhouse gas emissions are directly related to heating and cooling buildings. Another 10% of global emissions is related to food lost in transit or wasted after purchase. That’s 25% of global emissions that our company and industry can directly address.
And innovation is already available to significantly increase energy efficiency of equipment and systems and decarbonize heating and cooling of buildings and the transportation of people, food and medicine. If we accelerate adoption and scale up these technologies, it will advance us toward the UNFCC goal of net-zero carbon emissions by 2050.
Right now, we’re helping large commercial and industrial buildings significantly reduce their energy use and carbon emissions by combining heating and cooling into one system, eliminating the need for gas boilers. These fully electric heat-pump systems recover and repurpose heat and are 350 percent more efficient than most gas boiler systems. When drawing energy from a green grid, they can be a zero-emissions solution for buildings and cities.
We’re also implementing other decarbonization technologies like thermal storage and connected controls for highly efficient, smart buildings to keep people healthy and comfortable, while reducing energy use and emissions for our customers.
Electrification of the cold chain can also contribute to the net-zero emissions goal, especially as more fleet operators commit to adopting electric fleets. To enable the transition to fully electric vehicles, we’ve committed to invest more than $100 million over the next three years to deliver a fully electric product in every segment of the cold chain by 2023 in EMEA and 2025 in the Americas.
In addition to pioneering technologies to increase energy efficiency and electrification, we are designing products for circularity and are leading the transition out of the high-global warming potential (GWP) refrigerants. We’ve just announced that in North America, Thermo King is the first in the industry to transition to lower global warming potential refrigerants as standard for truck and trailer units.
An optimistic outlook.
Our shared purpose—to boldly challenge what’s possible for a sustainable world—is the foundation for our company’s innovation and growth. It has shaped our culture and has led us to create cutting-edge climate solutions that are paving a path toward a better future.
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