Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 33 percent since 1997
• Reduced water consumption by 62 percent since 1997
• Reduced recordable incident rates by 90 percent since 1997
• Carrier's AquaEdge 23XRV chiller is 42 percent more efficient than the industry standard.
• Otis' Gen2 elevator with ReGen drive reduces energy consumption by up to 75 percent.
• Collins Aerospace's SmartProbe Air Data Systems reduces weight by up to 50 percent, reducing fuel burn.

Social Achievements

• Invested over $1.3 billion in employee higher education programs, enabling 45,000 employees to earn a degree.
• Supported more than 30 workforce training programs in the US.
• Launched a Re-Empower Program for individuals returning to the workforce.
• Supported more than 6,000 civic, cultural, economic, and social welfare organizations globally.
• Invested more than $250 million in communities since 2012.

Governance Achievements

• Strong corporate governance practices maintaining high standards of oversight, accountability, integrity, and ethics.
• Transparent financial reporting and strong internal controls.
• Independent Board of Directors providing advice and oversight.

Climate Goals & Targets

Environmental Challenges

• Global water supply risks due to drought, competition for water, climate change, and infrastructure limitations.
• Cybersecurity threats.

Mitigation Strategies

• Water risk management and conservation program.
• Intelligence-led cyber defense strategy.
• Comprehensive risk management framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Aerospace Supplier Quality document
• Supplier Gold program
• Conflict Mineral Policy

Climate-Related Risks & Opportunities

Physical Risks

• Localized and recurrent drought
• Competition for water in water-constrained watersheds
• Climate change
• Municipal infrastructure limitations

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GTF jet engine
• Gen2 elevator with ReGen drive
• SmartProbe Air Data Systems
• AquaEdge 23XRV chiller
• Infinity Controls
• HI-FOG water mist systems
• NaturaLINE container refrigeration unit

Awards & Recognition

• Supplier Sustainability Award (Pratt & Whitney)
• Solar Pioneer Award (Singapore Economic Development Board)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions from operations by 5.6% from 2020 levels.
• Implemented over 100 energy projects, investing over $12 million.
• Increased renewable electricity procurement to 3.5% of total electricity use.

Social Achievements

• Incorporated Corporate Responsibility Scorecard into Executive Annual Incentive Compensation Program.
• Launched supplier health assessment (SHA) to assess supplier sustainability performance.

Governance Achievements

• Board-level oversight of climate-related issues through the Committee on Governance and Public Policy (GPPC).
• Established GHG reduction goals aligned with a 1.5°C pathway.

Climate Goals & Targets

Environmental Challenges

• Increased indirect costs from emerging carbon pricing mechanisms.
• Increased indirect costs from increased severity and frequency of extreme weather events.
• Increased direct costs from transitioning to lower emissions technology.
• Supply chain disruptions due to extreme weather events.

Mitigation Strategies

• Implementing initiatives to reduce energy consumption, increase energy efficiency, and increase renewable energy use.
• Robust Business Resilience & Crisis Management (BRCM) program.
• Investing in sustainable aviation technologies and R&D.
• Developing alternative sourcing strategies for critical components.

Supply Chain Management

Supplier Audits: Supplier Health Assessments (SHA)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events

Transition Risks

• Carbon pricing mechanisms
• Transitioning to lower emissions technology

Opportunities

• Development and expansion of low-emission goods and services
• Development of climate adaptation, resilience, and insurance risk solutions
• Move to more efficient buildings

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through GHG emission reductions, renewable energy procurement, and sustainable aviation technology development.

Sustainable Products & Innovation

• Pratt & Whitney GTF engine
• Sustainable aviation technologies (hybrid-electric propulsion, hydrogen-fueled propulsion, etc.)

Awards & Recognition

• U.S. EPA ENERGY STAR Partner of the Year Sustained Excellence Award (14 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion (DE&I)
• Workforce Development
• Community Engagement
• Product Safety
• Data Security
• Business Resilience
• Human Rights
• Ethics & Compliance

Environmental Achievements

• 21% reduction in GHG emissions in operations from 2019 baseline
• First successful engine run of hybrid-electric propulsion technology demonstrator completed
• Received more than 1,100 PW GTF engine orders in 2022, which will reduce fuel consumption and carbon emissions by 16% to 20%
• Received certification for PW127XT-M turboprop engine, which offers 3% improvement in fuel efficiency
• $17.3 million invested in energy reduction-related projects

Social Achievements

• 45.4% of new employees hired were women and/or U.S. people of color
• 9 fully integrated ERGs with senior leadership sponsorship
• $51.2 million donated in corporate giving
• 88% reduction in high and elevated ergonomic risks since 2015
• 2,480 employees moved to a different business unit or to the corporate office to evolve their careers

Governance Achievements

• 100% of planned Threat and Vulnerability Assessments and Physical Security Assessments at key sites were completed
• Implemented harmonized EH&S Compliance Assurance Audit Program
• Executive Annual Incentive Plan linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Shortage of engineers in the aerospace sector
• Increased competition for talent with other high-tech sectors
• Evolving cybersecurity threats
• Climate change impacts on operations
• Supply chain disruptions

Mitigation Strategies

• Increased investment in programs to build a long-term talent pipeline
• Strengthened prevention and detection capabilities for cybersecurity
• Robust ERM program to identify and manage risks
• Renewable energy roadmap to reduce reliance on fossil fuels
• Collaboration with suppliers to improve sustainability practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier Quality Policy
• Annual supplier certifications

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable aviation solutions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001, AS9100, AS9110, AS9120

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hybrid-electric propulsion systems
• GTF Advantage™ turbofan engine
• PW127XT-M turboprop engine
• 5G-resilient radio altimeter technology

Awards & Recognition

• America’s Top Corporations for Women’s Business Enterprises
• Best Places to Work for Disability Inclusion
• Best Places to Work for LGBTQ+ Equality
• ENERGY STAR Partner of the Year
• Many others

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Principles

Environmental Achievements

• 19% reduction in GHG emissions in operations since 2019 baseline
• 31 new renewable energy projects initiated

Social Achievements

• Launched inaugural RTX Global Inclusion Week
• Growth in Employee Resource Group (ERG) membership to 29.6K in 2023
• $55.2M donated in corporate giving to community groups
• 92.0% reduction in high and elevated ergonomic risks since 2015
• 95.0% voluntary controllable retention rate

Governance Achievements

• Executive Annual Incentive Plan linked to ESG performance through Corporate Responsibility Scorecard
• 100% of facilities or sites that provide products and services have a certified Quality Management System (QMS) or have a plan to achieve certification
• Strengthened enterprise cybersecurity and data privacy programs

Climate Goals & Targets

Environmental Challenges

• Increasing the production and utilization of SAF is a critical step for achieving the air transportation sector’s net-zero CO2 emissions goal by 2050.
• SAF prices are currently two to five times higher than the price of conventional jet fuel.
• Wide uncertainty remains regarding global policy deployment to support investment needed to meet SAF goals.

Mitigation Strategies

• Demonstrating the compatibility of RTX engines and auxiliary power units with SAF through flight demonstrations on blended and unblended SAFs.
• Researching and testing emerging SAFs by collaborating with industry, government and other stakeholders in public-private partnerships such as the SAF+ Consortium.
• Providing input on SAF policy and collaborating on industrywide SAF standards alongside peers through ASTM International, Commercial Aviation Alternative Fuels Initiative, IAEG and ATAG.
• Supporting government policies and initiatives that stimulate investment in production capacity of SAF, reduce costs and encourage greater industry uptake.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Quality Policy
• EcoVadis sustainability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Flooding
• Drought
• Sea-level rise

Transition Risks

• Regulatory changes
• Market shifts
• SAF production and deployment challenges

Opportunities

• Development of energy-efficient products
• Development of hybrid-electric and hydrogen-powered propulsion systems

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001, AS9100, AS9110, AS9120

Sustainable Products & Innovation

• GTF engines
• Hybrid-electric propulsion systems
• 1 MW electric generator
• STEP-Tech demonstrator

Awards & Recognition

• ENERGY STAR Partner of the Year – Sustained Excellence Award
• Nunn-Perry Award for excellence
• Citizens Award for partnership with NAF