Sustainable building and refrigeration solutions company Carrier announced today the release of its 2021 ESG Report, which includes a commitment by the company to set science-based emission reduction targets, aligned with the goals of the Paris Agreement to limit global warming this century.
In the report Carrier also said that it will connect executive compensation in 2021 to progress against the company’s ESG goals, including diversity targets.
HVAC and refrigeration system companies are well-positioned to help companies globally achieve their climate goals. Buildings are a significant contributor to global GHG emissions, and one of the hardest to replace, given their long-term nature. According to Carrier, buildings contribute about 15% of global carbon emissions, and food wastage is also responsible for an estimated 4.4 gigatons of emissions annually.
Last year, Carrier introduced its first set of ESG goals as an independent company, after separating from United Technologies Corporation. Included in the company’s commitments was a target to reduce its customers’ carbon footprint by more than one gigaton, supported by a planned investment of more than $2 billion over the next 10 years toward the development of healthier, safer, and more sustainable building and cold chain solutions.
In today’s report, Carrier stated that it succeeded in reducing its customers’ carbon footprint by 68 million metric tons in 2020, equivalent to the energy use of more than 8 million U.S. households in one year.
Dave Gitlin, Chairman & CEO, Carrier, said:
“The urgency of climate change requires us to be bold, to innovate, and to disrupt – the future demands it. At Carrier, our focus on ESG is fundamental to our culture and our business, and we have an opportunity to make a profound impact on some of the most pressing environmental and social challenges of our time.”
Other key ESG highlights from the report include diversity achievements such as reaching 43% global executive diversity and 31% global women executives, up from 27% and 20% in 2015, respectively.
Jennifer Anderson, Chief Sustainability Officer at Carrier, said:
“Transparency is a key driver of our ESG performance, which is why we’re committed to sharing where we are doing well – and where we need to focus more attention and resources. We’re proud of our progress, but also resolute in making advancements in our operations, people management, solutions and community engagement.”