Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health & Safety
• People & Communities
• Governance & Accountability
• Environment & Impact

Environmental Achievements

• Reduced TRIR from 0.72 in 2019 to 0.54 in 2020
• Reduced LTIR from 0.17 in 2019 to 0.13 in 2020
• Reduced total energy consumed from 754.4 GWh in 2019 to 691.7 GWh in 2020
• Reduced GHG emissions intensity from 17.5 Metric Tons CO2e/$M net sales in 2019 to 16.4 in 2020
• Industrial waste recycling rate >99%

Social Achievements

• 4 percentage point reduction in voluntary attrition over the last five years
• 7 percentage point improvement in women executives in 3 years (34% in 2020)
• 5 point 3-year improvement in Otis success score at benchmark
• 4 points above benchmark in inclusive culture category score
• $90M cumulative spend for Employee Scholar Degree Programs or Certifications since 1996
• Over 5,500 degrees earned through Employee Scholar Program across 60 countries since inception

Governance Achievements

• 2020 completion rate of 95% for annual live ethics training for all colleagues
• 2020 completion rate of 94% for annual certification for office professionals attesting compliance with the Otis Absolutes

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Anti-Human Trafficking in the Supply Chain Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001 (target for all factories by 2025)

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environment & Impact
• People & Communities
• Governance & Accountability

Environmental Achievements

• 7.0% reduction in Scope 1 and Scope 2 emissions since 2019
• 41% of factory electricity consumed is carbon neutral
• 100% of global factories certified to ISO 14001

Social Achievements

• Launched Made to Move Communities global student challenge
• 100% of people managers received unconscious bias training
• 78% of colleagues covered by an Employee Assistance Program (EAP)

Governance Achievements

• Became a signatory to the U.N. Global Compact
• Conducted first materiality assessment
• Launched an ESG Governance page on Otis.com

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate-related changes
• Increased costs due to changing input prices (energy, water) and output requirements (carbon pricing)
• Extreme heat impacting productivity and availability of employees
• Increased frequency and severity of coastal flooding and extreme weather events

Mitigation Strategies

• Expanding sourcing beyond current suppliers
• Setting a 2030 emissions reduction goal
• Monitoring regulatory trends
• Deployment of IoT connectivity and remote servicing
• Investing in climate impact data to support decisions on long-term location and real-estate strategy

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions to critical suppliers/supply infrastructure due to climate-related changes
• Extreme heat impacting productivity and availability of employees
• Increased frequency and severity of coastal flooding and extreme weather events

Transition Risks

• Increased costs due to changing input prices and output requirements

Opportunities

• Increased demand for Otis products and services due to growing populations in urban areas and extreme weather events
• Increased market demand for revitalization and Otis energy efficient equipment

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB guidelines for the infrastructure sector, TCFD

Certifications: ISO 14001

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Gen2 elevator
• Gen360 elevator platform
• Otis ONE digital service platform
• Gen2 Switch Solar elevators

Awards & Recognition

• Communitas Award for Excellence in Corporate Social Responsibility
• Human Rights Campaign Corporate Equality Index – Best Places to Work for LGBTQ+ Equality
• 2021 Product of the Year Award Finalist: Gen360

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environment & Impact
• People & Communities
• Governance & Accountability

Environmental Achievements

• Achieved 100% factory eligibility for zero-waste-to-landfill certification by 2025 (goal completed in 2021)
• Completed ISO 14001 certification for all factories by 2025 (goal completed in 2021)
• Announced commitment to setting near-term science-based greenhouse gas reduction targets

Social Achievements

• Established the Otis Colleague Disaster Relief Fund
• Expanded self-ID campaign from 33 to 40 countries
• Launched a disability etiquette training program and established a global framework to simplify and unify the process by which our colleagues can request reasonable accommodations and workplace adjustments
• Increased colleague favorability for the inclusive culture category in the Company’s engagement survey

Governance Achievements

• Progress towards ESG goals was included as a performance multiplier in determining payouts under our 2023 executive short-term incentive plan
• Board of Directors and its committees engage in extensive review and oversight of ESG-related topics

Climate Goals & Targets

Environmental Challenges

• Increased regulation (including the pending Securities and Exchange Commission and European Union requirements) and other climate change concerns could subject us to additional costs and restrictions.
• Potential supply constraints or cost pressures due to an issue with a supplier

Mitigation Strategies

• Implement mitigation actions to address potential disruption in and other risks relating to our supply chain, including the use of safety stock and alternative materials, as well as risk assessments, qualification of multiple supply sources and use of long-term supplier agreements.
• Manage commodity price risk through locking and hedging strategies, as well as passing the increases onto our customers through pricing.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• natural disasters, whether as a result of climate change or otherwise

Transition Risks

• Increased regulation (including pending SEC and European Union requirements) and other climate change concerns

Reporting Standards

Frameworks Used: Global Reporting Initiative Standards, Sustainability Accounting Standards Board guidelines, Task Force on Climate-related Financial Disclosures, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Gen3 Core elevator
• Gen360 elevator
• sensor-equipped escalators and moving walkways