United Technologies believes that a lower carbon future is needed for the health of the natural environment and for the health of the economy to mitigate the risks associated with a changing climate. We are committed to reducing our energy and greenhouse gas (GHG) emissions and are informed by climate change science, the regulatory landscape and our experience in implementing targeted programs across our global manufacturing facilities.
We have set an annual expectation of a three percent absolute reduction in our GHG emissions from operations since 2006. This goal is consistent with the United Nations Intergovernmental Panel on Climate Change (IPCC) and other scientific body guidance on the annual GHG emissions reductions necessary to limit average global atmospheric temperature increases to a maximum of 2°C by 2100.
Based on our experience and organizational footprint, efficiency improvements in United Technologies’ use of energy represent the greatest opportunity for us to reduce our GHG emissions. Over the last ten years, we have invested more than $150 million in 2,500 energy efficiency and GHG reduction projects and reduced our annual GHG emissions by 510,000 metric tons of CO2e (mtCO2e).
In many cases our investments resulted in payback periods of less than two years. Our worldwide manufacturing locations routinely conduct energy audits to identify additional projects that will improve our energy efficiency and reduce energy use. We believe energy efficiency is our best option for reducing GHG emissions and will remain our primary focus for mitigating our GHG impacts.
In addition to our objective of achieving greater energy efficiency in our operations, we support the transition to a lower carbon economy. We do this through the development of our own energy efficient products, and through ongoing regulatory engagement to promote industry-wide policies and initiatives that will achieve greater energy efficiency and lower GHG emissions. Learn more here.
Transparency and Accountability
Climate change risk assessment and mitigation is included as part of our formal corporate risk management and governance structure. We annually disclose our progress to the CDP through its climate change reporting program. CDP is a global disclosure platform for investors, companies, cities and other governmental bodies to disclose and manage their environmental impact. We also hold our employees accountable with GHG emissions reductions and other environment, health and safety goals included as factors in annual performance evaluations for relevant executives as well as facility and environmental managers.
United Technologies is committed to reducing its greenhouse gas emissions in keeping with the Paris Accord objective of limiting the global average temperature increase to 2°C.
We continue to track the applicability of renewable energy for our operations, including installing renewable energy resources at our locations and participating in off-site energy procurement opportunities. We pursue and acquire renewable energy from projects that combine meaningful GHG emissions reductions with a competitive business case.