Climate Change Data

Johnson Controls International plc

Climate Impact & Sustainability Data (2019-10 to 2020-09, 2020, 2021, 2022-10 to 2023-09)

Reporting Period: 2019-10 to 2020-09

Environmental Metrics

Total Carbon Emissions:137,681,374 tCO2e/year (Scope 1+2+3)
Scope 1 Emissions:549,358 tCO2e/year
Scope 2 Emissions:229,809 tCO2e/year (market-based)
Scope 3 Emissions:121,906,000 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:8,107,715 GJ/year
Water Consumption:3,482 Megalitres/year (withdrawal)
Waste Generated:99,181 tons/year
Carbon Intensity:735.2 kg CO2e per Million USD in revenue

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Employee Health and Safety
  • Product Quality and Safety
  • Energy-efficient products
  • Human Rights
  • Cybersecurity

Environmental Achievements

  • Reduced greenhouse gas emissions intensity by 7.7% from a 2017 baseline.
  • Reduced energy intensity by 3.2% from a 2017 baseline.
  • Offset 100% of GHG emissions from US manufacturing plants through REC purchases.
  • Achieved zero landfill status at 21 manufacturing locations.
  • Achieved 11% water reduction at water-stressed locations from a 2017 baseline.
  • Wichita plant transitioned to 100% wind energy.

Social Achievements

  • Employees volunteered 1.8 million hours.
  • Launched WeGive volunteer program, providing corporate donations for employee volunteer hours.
  • Johnson Controls Mexico achieved gold level in the Mexican Standard on Job Equality and Non-Discrimination.
  • Launched initiatives focused on underserved markets and increased spending with women and minority-owned businesses.

Governance Achievements

  • Renamed the Governance Committee to Governance and Sustainability Committee with expanded oversight.
  • Appointed first Chief Sustainability Officer.
  • Created executive-level Sustainability Leadership Committee.
  • Linked executive compensation to sustainability and diversity goals.
  • Issued a $625 million green bond.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions before 2040
Medium-term Goals:
  • Reduce Johnson Controls absolute operational emissions by 55% and reduce absolute customers’ emissions by 16% before 2030
  • Double annual avoided emissions by 2030 through customer use of OpenBlue
  • Intend to double the representation of women leaders globally and minority leaders in the US within five years
Short-term Goals:
  • Reduce water consumption by 10% at water-stressed facilities by 2025
  • 25% of manufacturing locations landfill-free by 2025

Environmental Challenges

  • Emerging regulation
  • Raw material costs
  • Achieving sustainability commitments
  • Extreme weather events
  • Water stress
Mitigation Strategies
  • Climate-related risk and opportunity scenario analysis (TCFD-aligned)
  • Development of management strategies for mitigating risks and capitalizing on opportunities.
  • Implementation of best practices and water-saving efforts at water-stressed locations.
  • Transition to low-GWP refrigerants.
  • Energy Hunt Program to identify energy savings opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Code of Ethics
  • Johnson Controls Sustainability Supplier Rating
  • Supplier Sustainability Council

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water stress
Transition Risks
  • Emerging regulation
  • Innovation of solutions that reduce customers’ GHG emissions
Opportunities
  • Move to more efficient buildings
  • Use of lower-emission sources of energy
  • Revenue from solutions that directly address building efficiency
  • Revenue from technologies that support building resilience
  • Revenue from increased demand for lower-emission goods and services

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, SASB Standard for the Resource Transformation Sector – Electrical and Electronic Equipment, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Apex (formerly Bureau Veritas)

UN Sustainable Development Goals

  • Not disclosed

More than 83% of volunteering and philanthropy efforts align with UN Sustainable Development Goals.

Sustainable Products & Innovation

  • OpenBlue digital platform
  • Low-GWP HVAC products
  • Hitachi Water Source VRF systems

Awards & Recognition

  • World’s Most Ethical Company (Ethisphere)
  • 100 Best Corporate Citizens (3BL Media)
  • Carbon Clean 200 (Corporate Knights)
  • MSCI AAA rating
  • FTSE4Good Index Series
  • Numerous other sustainability awards and indexes

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:779,167 metric tons CO2e (2020)
Scope 1 Emissions:549,358 metric tons CO2e (2020)
Scope 2 Emissions:229,809 metric tons CO2e (2020)
Scope 3 Emissions:112,400,000 metric tons CO2e (2020)

ESG Focus Areas

  • Climate Change
  • Greenhouse Gas Emissions
  • Energy Efficiency
  • Water Conservation
  • Waste Reduction
  • Safety
  • Supplier Diversity
  • Socioeconomic Empowerment
  • Governance
  • Sustainability Governance

Environmental Achievements

  • Exceeded fiscal year 2020 goal for greenhouse gas intensity with a 7.7 percent reduction
  • Reduced energy intensity by 3.2 percent in 2020
  • Offset 100 percent of greenhouse gas emissions from US manufacturing plants through renewable energy certificates
  • Achieved 11 percent water reduction at water-stressed locations in FY20 from a FY17 baseline
  • 21 landfill-free facilities
  • Since January 2000, performance contracting projects helped customers save more than 30.6 million metric tons CO2e and $6.6 billion through energy and operational savings
  • Offered alternative refrigerants across all chiller platforms, with GWP reductions ranging from 56 to more than 99 percent compared to conventional refrigerants

Social Achievements

  • Achieved supplier diversity goal to purchase from certified diverse suppliers at a higher percentage rate than revenue growth in 2020
  • Employees volunteered 1.8 million hours in 2020
  • More than 83 percent of volunteering and philanthropy efforts aligned with UN SDGs
  • Launched a new volunteer engagement program, WeGive, in 2020
  • Corporate philanthropy contributions of more than $8.2 million and employee contributions exceeding $2.6 million in 2020
  • Johnson Controls Mexico achieved gold level in the Mexican Standard on Job Equality and Non-Discrimination

Governance Achievements

  • Renamed the Governance Committee of the board of directors to the Governance and Sustainability Committee with expanded sustainability oversight
  • Appointed Katie McGinty as the Company’s first Chief Sustainability Officer
  • Created the Sustainability Leadership Committee (SLC) to oversee sustainability
  • Integrated sustainability into executive team goals and linked to compensation
  • Issued first Green Bond offering of $625 million in ten-year notes in September 2020

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions before 2040
Medium-term Goals:
  • Reduce operational emissions by 55 percent and downstream emission by 16 percent before 2030
  • Reduce Scope 1 and Scope 2 GHG emissions by 55 percent by 2030
  • Reduce Scope 3 use of sold products GHG emissions by 16 percent by 2030
Short-term Goals:
  • Reduce Scope 1 and Scope 2 GHG emissions by 35 percent by 2025
  • Reduce Scope 3 use of sold products GHG emissions by 5 percent by 2025

Environmental Challenges

  • Emissions reductions in 2020 were meaningfully assisted by COVID-19’s negative impact on business operations and may not reflect sustainable emissions reductions
  • Rate of progress on emissions reduction is unpredictable and might be uneven year over year
  • Scope 3 emissions are difficult to measure and cannot be directly managed or controlled
Mitigation Strategies
  • Improving energy efficiency
  • Using renewable energy
  • Tracking and managing emissions using information technology
  • Exploring demand response, energy storage, and other new technologies
  • Seeking cost-competitive lower-carbon electricity and other energy
  • Voluntarily purchasing energy attributes certificates
  • Supporting green power
  • Implementing on-site renewable energy in some locations
  • Partnering with customers to reduce their emission footprints

Supply Chain Management

Responsible Procurement
  • Code of Ethics covering labor, human rights, and the environment
  • Policies and procedures for removing non-compliant suppliers
  • Supplier sustainability council

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG), Green Loan Principles (GLP), Social Loan Principles (SLP), EU Taxonomy

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

  • SDG 13 – Climate Action
  • SDG 7 – Affordable and Clean Energy
  • SDG 6 – Clean Water and Sanitation
  • SDG 9 – Industry, Innovation and Infrastructure
  • SDG 5 – Gender Equality
  • SDG 8 – Decent Work and Economic Growth

Detailed in Annex II

Sustainable Products & Innovation

  • OpenBlue Enterprise Management software
  • Metasys software systems
  • YXV 21 SEER Variable Capacity Air Conditioner
  • YZ Magnetic Bearing Centrifugal Chiller
  • YORK® Sun™ Select rooftop units
  • L2000 SU50 Modular Distributed Energy Storage Systems

Awards & Recognition

  • R&D 100 Award for BETTER tool
  • One of the 100 Best Corporate Citizens by 3BL Media
  • One of the World’s Most Ethical Companies® by Ethisphere
  • Included in the Carbon Clean 200™ by Corporate Knights
  • Rated AAA by MSCI
  • Part of FTSE4Good

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:664,000 tCO2e (Scope 1 & 2)
Scope 1 Emissions:451,000 tCO2e
Scope 2 Emissions:213,000 tCO2e
Water Consumption:4,222,000 m3
Carbon Intensity:28 metric tons CO2e per Million USD in 2021

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supplier Sustainability
  • Community Engagement

Environmental Achievements

  • Reduced greenhouse gas intensity by 19% in fiscal year 2021.
  • Reached a milestone of 19 landfill-free manufacturing locations (24 total locations) with a 100% diversion rate.
  • 100% renewable energy for US manufacturing locations.
  • Reduced energy intensity by more than 50% since 2002.
  • Reduced greenhouse gas intensity by more than 70% since 2002.

Social Achievements

  • 350% growth in Business Resource Group (BRG) membership in fiscal year 2021.
  • Achieved supplier diversity goal to purchase from certified diverse suppliers at a higher percentage rate than revenue growth.
  • Corporate philanthropy contributions of more than $12 million in fiscal year 2021, plus over $2.6 million in employee donations.
  • Launched the Community College Partnership Program, investing $15 million over five years to expand community college programs in HVAC, fire and security, and digital building automation systems.

Governance Achievements

  • Linked executive compensation to sustainability and diversity goals.
  • Published an integrated sustainable finance framework and issued a Sustainability-Linked Bond, becoming the first S&P 500 industrial company to do so.
  • 95% completion rate for ethics training in fiscal year 2021.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon for Scope 1 and 2 emissions by 2040.
  • Achieve 100% renewable electricity usage globally by 2040.
Medium-term Goals:
  • Reduce operational emissions by 55% and customers’ emissions by 16% by 2030.
Short-term Goals:
  • Reduce water consumption by 10% at water-stressed facilities by 2025.
  • Make 25% of manufacturing locations landfill-free by 2025.
  • Achieve 35% emissions reduction for Scope 1 and 2 and 5% for Scope 3 by 2025.

Environmental Challenges

  • Reducing Scope 3 emissions (Use of sold products)
  • Reducing water consumption at water-stressed locations
  • Achieving net-zero carbon emissions for Scope 1 and 2 by 2040
Mitigation Strategies
  • Committed to a 35% emissions reduction for Scope 1 and 2 and a 5% reduction for Scope 3 by 2025.
  • Implementing water-saving technologies and leak detection/repair at water-stressed locations.
  • Transitioning to 100% renewable energy globally by 2040.
  • Investing in sustainable products and services, such as OpenBlue Net Zero Buildings as a Service.

Supply Chain Management

Responsible Procurement
  • Johnson Controls Sustainability Supplier Rating
  • Doubled the weight of Sustainability Rating on supplier scorecards in 2021 (now equal to other key metrics).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards-Comprehensive, UN Global Compact Advanced level, CDP, SASB, UN Sustainable Development Goals, TCFD

Third-party Assurance: Apex (limited assurance)

UN Sustainable Development Goals

  • SDG 7: Affordable and Clean Energy
  • SDG 11: Sustainable Cities and Communities
  • SDG 4: Quality Education
  • SDG 3: Good Health and Well-being
  • SDG 15: Life on Land
  • SDG 8: Decent Work and Economic Growth

Sustainable Products & Innovation

  • OpenBlue digital platform
  • Heat pumps and refrigeration equipment with low lifecycle greenhouse gas emissions
  • Alternative refrigerants with GWP reductions ranging from 56 to more than 99%

Awards & Recognition

  • EcoVadis Gold (three years)
  • MSCI AAA rating
  • ESG Industry Top Rating by Sustainalytics
  • World’s Most Ethical Companies ® Honoree List (fourteenth time)
  • One of the 100 Best Corporate Citizens
  • Global 100’s Most Sustainable Corporations

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Human Rights
  • Supply Chain Sustainability

Environmental Achievements

  • Reduced GHG emissions
  • Increased renewable energy use
  • Reduced water consumption
  • Improved waste diversion rates

Social Achievements

  • Launched employee well-being programs
  • Improved workforce diversity
  • Enhanced employee training and development
  • Strengthened commitment to human rights

Governance Achievements

  • Improved board diversity
  • Enhanced ESG governance structure
  • Linked executive compensation to ESG performance

Climate Goals & Targets

Environmental Challenges

  • Supply chain disruptions
  • Climate change impacts
  • Maintaining high ESG standards across global operations
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented climate risk mitigation plans
  • Strengthened ESG governance and reporting

Supply Chain Management

Responsible Procurement
  • Code of Conduct
  • Supplier Sustainability Requirements
  • Conflict Minerals Policy
  • Slavery and Human Trafficking Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Awards & Recognition

  • CDP’s A List
  • World’s Most Ethical Companies
  • Forbes America’s Best Employers For Diversity
  • Top Veteran Friendly Companies
  • Top Employer in China
  • 100 Best Corporate Citizens List