JCI: Investments in sustainability have rebounded to pre-pandemic levels
CORK, Ireland, 12 April 2022: Johnson Controls (JCI) announced findings from its 15th annual Energy Efficiency Indicator Survey, which revealed that 62% of organizations surveyed expect to increase investments in energy efficiency, renewable energy or smart building technology in 2022, indicating a return to pre-pandemic levels.
JCI said the latest report by the United Nations Intergovernmental Panel on Climate Change advised that global scale transformation is urgently needed to combat climate change; however, its Energy Efficiency Indicator Survey found that organizations are still facing challenges to accelerate their sustainability efforts in key areas. Almost two-thirds of survey respondents say they struggle to scale sustainability initiatives across buildings, geographies or business units.
“In the face of the multiple and continuous shock waves of the last two years, it is very encouraging to see that building owners and operators are driving forward the kinds of investments that deliver the resilience needed to grow their business and attract and retain the best talent,” said Katie McGinty, Vice President & Chief Sustainability and External Relations Officer, JCI.
“Whether it is the damage delivered by climate-charged destructive natural events, or the health threat of the pandemic, or now, the stark demonstration of the insecurity of world energy supplies, it is clear that taking action to cut energy demand while decarbonizing and cleaning the air are core strategies for companies, governments and institutions to not only survive but to thrive.
Our innovative technologies in heat pumps and our OpenBlue digital platform, plus our Net Zero as a Service partnership offering, are exactly the right tools at the right time for leaders determined to stay well ahead of challenges and deliver new opportunities for their business or organization.”
JCI said the survey revealed that planned investment in energy generation or storage has grown significantly over five years, likely in response to the global focus on decarbonization, and as part of that effort, electrification.
More than a third of respondents plan to replace fossil fuel heating equipment with heat pump technology in the next year, which is seven per cent more than what was implemented in the year prior, the company said. Notably, thermal energy storage jumped from 27% to 42% in the last five years, the company said. More than half of respondents implemented electric energy storage in the past year, the company added.
JCI said the survey also found that the United States and Europe still lead the way in every metric of green building planning. The United States had the most respondents who had already achieved green building certification and expect to have a net-zero-energy or carbon building in the next 10 years, JCI said.
Europe had the most respondents planning to attain green building certifications and the most respondents who have established public energy or carbon-reduction goals, with United Kingdom leading with 46% established goals, JCI added.
Compared to its global counterparts, significantly more respondents in the United States plan to implement measures, such as building controls improvements, onsite renewable energy and energy management process, such as ISO 50001, JCI said. Of the countries surveyed, the United Kingdom, France and Japan have the most respondents who expect to increase investment in energy efficiency, renewable energy or smart building technology over the next year, the company said. Still, to reach global sustainability and environmental goals, the world must work collectively to plan for a more energy efficient future and make investments today for the generations to come, it added.
Although global-scale transformation is necessary to course-correct on climate change, organisations are facing barriers to pursuing sustainability initiatives, JCI said. Almost half of the respondents surveyed say their top barrier to pursue energy and building technology improvements is either a lack of funding to pay for improvements (25%) or uncertainty in their return-on-investment (23%), the company said.
Additionally, more than half of respondents pointed to a lack of technology as one of the hindrances to scaling sustainability efforts, JCI said.
The pandemic has also prompted organizations to rethink their technology investment decision-making, JCI said. Protecting the health and safety of building occupants during the coronavirus pandemic was the second most significant driver of investments globally, it said. Additionally, 65% of respondents performed an indoor air quality assessment last year, it added.
Respondents to the survey also said improving occupant health and wellness overall and improving life safety and security were important decision-making factors, JCI pointed out. Over the next 12 months, almost 60% of organizations plan to invest in fire and life safety system and security system improvements to their buildings, it said. Long term, more than two-thirds of organizations believe data analytics and cybersecurity will have an extremely or very significant impact on the implementation of smart buildings over the next five years, it added.
The survey revealed that actionable policies are also important for progressing energy efficiency goals, JCI said, adding that 85% and 72% of respondents, respectively, reported that performance benchmarking, certifications and performance standards for energy codes are critical to improving energy efficiency efforts.
JCI said its Energy Efficiency Indicator Survey collected responses from 1,000 participants globally between November and December 2021.
Johnson Controls joins World Business Council for Sustainable Development
GENEVA, Switzerland, 23 March 2022: Johnson Controls joined over 200 companies as the newest member of the World Business Council for Sustainable Development (WBCSD).
Making the announcement through a Press release, Johnson Controls said it continues to take significant steps to further improve its environmental impact and has committed to achieving net zero Scope 1 and 2 carbon emissions by 2040 – 10 years ahead of the Paris Climate Agreement goal. By 2030, the company said, it aims to cut its Scope 1 and 2 emissions by 55% and reduce Scope 3 emissions by 16%. These ambitious 2030 emissions reduction targets have been approved by the Science Based Targets initiative, it added.
Johnson Controls said it also recently became the first S&P500 industrial company to release an Integrated Sustainable Finance Framework as well as issue a Sustainability-Linked Bond. This, it said, builds on its green finance initiative, following its prior green bond issuance and the linking of its senior credit facility to sustainability metrics. As part of its Integrated Sustainable Finance Framework, Johnson Controls said, it further committed to achieving interim absolute emission reduction targets by 2025.
Johnson Controls said it is a member of both the WBCSD decarbonization and circular economy working groups for the Built Environment. With an integrated focus on designing buildings with low to no carbon, standardizing measurement across the industry and delivering nature-positive solutions, the two working groups are on the forefront of designing the future of sustainable, equitable cities, it said.
“We are delighted to join WBCSD”, said Katie McGinty, Vice President and Chief Sustainability and External Relations Officer, Johnson Controls. “The building sector accounts for nearly 40% of global annual CO2 emissions, so there is no tackling climate change without substantial investment in buildings. We look forward to working with, and learning from, fellow WBCSD members, leading the way to a low carbon, nature positive, sustainable economy, together.”
Peter Bakker, President and CEO, WBCSD, said: “WBCSD is working to accelerate the system transformations needed for a net-zero, nature-positive, and more equitable future. To achieve our vision of creating a world in which nine+ billion people are living well, within planetary boundaries, by mid-century, we need to engage executives and sustainability leaders in business. Therefore, I am delighted to welcome Johnson Controls as the newest member of WBCSD. As a global leader in the built environment sector, with an ambitious goal to achieve net-zero carbon emissions by 2040, we are excited to work alongside Johnson Controls to solve the intertwined sustainability challenges of the climate emergency, biodiversity loss, and mounting inequality.”
Johnson Controls issues USD 500 mn sustainability-linked bond
CORK, Ireland, 16 September 2021: Johnson Controls (JCI) said it has issued its first Sustainability-Linked Bond offering of USD 500 million in 10-year senior notes. The offering of the bond, the company said through a Press release, is in conformity with the company’s recently published integrated green, social and sustainability-linked finance framework. The publication of the framework and issuance of a bond mark two new sustainability milestones for Johnson Controls, which has become the first S&P500 industrial company to complete both accomplishments, it said.
Earlier, in January 2021, Johnson Controls adopted a new set of ambitious environmental goals, which it said, were approved by the Science Based Targets Initiative. The company said it has committed to cut operational emissions by 55% and reduce customers’ emissions by 16% before 2030. Based on the commitments, the company said, it issued the bond, which ties the interest rate on the bond to the achievement of the environmental goals. This means that Johnson Controls will pay a higher interest rate to bond investors if it fails to meet its interim targets for reducing Scope 1 + 2 and Scope 3 carbon emissions by September 16, 2025.
“Experts say that an additional USD 1-2 trillion/year must be invested in sustainability and cutting greenhouse gases if we are going to have any chance of meeting the steep carbon reductions science tells us is urgently required,” said George Oliver, Chairman and CEO, Johnson Controls. “Governments alone will not be able to mobilize this sum of money, so private sector capital needs to get sustainable, and fast. Building the market for sustainable finance is, therefore, an imperative; and ensuring that the highest standards are met so that dollars flow to projects that truly accelerate decarbonization, is also critical. With our continued commitment to sustainable finance and aggressive sustainability targets, we are showing our leadership in the field.”
JCI named to FT European Climate Leaders list
CORK, Ireland, 18 May 2021: Johnson Controls (JCI) said it has been named to the inaugural FT Climate Leaders in Europe list.
Europe’s Climate Leaders 2021 is a list of companies across Europe that have shown the highest reduction of their emission intensity – that is, core greenhouse gas emissions in relation to revenues, between 2014 and 2019. Johnson Controls reported that it was one of only 300 companies selected from 4,000 across Europe.
“We are extremely proud to be recognized by the Financial Times as a European climate leader,” said George Oliver, chairman and CEO, Johnson Controls. “Sustainability has long been at the heart of everything we do, and it is an honor to be included on this prestigious list. With COP26 approaching at this critical moment in the battle against climate change, it is important that companies continue to play their part in cutting emissions and delivering clean, sustainable solutions across the entire value chain.”
According to JCI, companies on the list – compiled by research firm, Statista – were invited to submit emissions reported following the emission categories of the greenhouse gas protocol (scope 1, 2 and 3). In addition, Statista scrutinized publicly available data, mainly from financial and non-financial reports as well as from CDP (formerly the “Carbon Disclosure Project”).
Although JCI reports all three emissions scopes, the ranking only considers scope 1 and scope 2 emissions, since not all companies publish their scope 3 emissions, it said. Since 2002, JCI said, it has reduced its emissions intensity by more than 70% – equivalent to the carbon sequestered by 17,000 acres of forest. The company said it has also helped its customers save more than 30.6 million tonnes of CO2 globally and $6.6 million through guaranteed operational savings.
At the European level, JCI said, it has been effectively supporting the EU’s ambition to become carbon neutral by 2050. The European Commission recently committed to at least 55% cuts in greenhouse gas emissions (from 1990 levels) by 2030 under the European Green Deal. Decarbonizing Europe’s building stock through the European Commission’s Energy Performance of Buildings Directive has a crucial role to play in this effort – 40% of greenhouse gases come from buildings, the company said.
According to JCI, digitalization has been recognized as a key enabler for the building renovation wave in Europe and the rest of the world. Already, JCI said, it has been deploying its OpenBlue digital platform for optimizing buildings sustainability across its entire value chain – drastically improving the company’s own environmental impact and helping customers consume less energy, conserve resources and identify pathways to achieving healthy, net zero carbon communities.
Katie McGinty, Vice President & Chief Sustainability, Government and Regulatory Affairs Officers, JCI, said: “We are making positive change within our own corporation and believe we are uniquely positioned to help customers and suppliers achieve their sustainability goals. By driving global change, we are ultimately creating an environment for healthy people, healthy places and a healthy planet.”
JCI said it is also helping meet the growing demand for energy-efficient technologies. It said it has provided heat pump solutions for customers at more than a dozen district heating and cooling applications in Denmark, Finland, France, Germany, Italy and Norway.
Heat pumps, it said, have an important role to play in decarbonizing buildings and industry. They have long been in the DNA of industrial refrigeration – utilised in food and beverage, dairy and other process industries for reclaiming low-temperature waste heat and turning it into low-cost, high-temperature heat.
President Biden invites JCI’s CEO to speak at Leaders Summit on Climate
MILWAUKEE, Wisconsin, 21 April 2021: Johnson Controls (JCI) announced that George Oliver, its Chairman and CEO has been invited by U.S. President Joe Biden to participate in the virtual Leaders Summit on Climate.
Making the announcement through a Press release, JCI said the summit will bring together leaders of the world’s major economies and other vital partners for an urgent and open dialog on ways to strengthen collective efforts to address the climate crisis. President Biden has made tackling climate change a top national priority since taking office and is urging other world leaders to attend the summit to discuss how their governments will help drive the goal of limiting global temperature rise.
“I am honored to accept President Biden`s invitation to join him and other world leaders calling for urgent climate action,” Oliver said. “It is especially important to establish a roadmap to limiting the rise of global temperatures as we get closer to the COP26 climate conference, scheduled for November in Glasgow. Transitioning to a lower-carbon economy is an opportunity to build back better, as we recover from the COVID-19 pandemic. Providing clean, sustainable and energy-efficient solutions creates jobs while building strong, resilient global economies.”
According to the White House, a major theme of the summit will be the broad economic benefits of climate action, with a strong focus on job creation. This will explore both the economic benefits of green recovery and long-term decarbonization and the importance of ensuring that all communities and workers benefit from the transition to a clean energy economy.
Representing both Business Roundtable and Johnson Controls, Oliver will address these topics in a session on April 23 as well as the role buildings can play to slash both emissions and costs, JCI said.
Business Roundtable is an association of chief executive officers of America’s leading companies. According to JCI, Oliver was named Chair of the Business Roundtable Energy & Environment Committee in January this year. The Committee is dedicated to advancing policies that encourage innovation and support an environmentally and economically sustainable future.
The vast majority of Business Roundtable’s 223-member CEOs have made public commitments to reduce their companies’ greenhouse gas emissions/carbon footprints, are making serious progress and reporting on it publicly. Nearly half of those commitments are for net-zero carbon emissions by 2050, if not sooner.
According to JCI, Business Roundtable members are playing a significant role in driving ambitious climate action and the policy needed to spur low-carbon economic growth. Last September, JCI said, the organization endorsed the goals of the Paris Agreement and proposed aggressive policies to achieve those goals.
JCI said its own ambitious emissions reductions targets were recently approved by the Science Based Targets Initiative – an independent organization that assesses corporate sustainability claims. JCI said that as part of its environmental sustainability commitments, it aims to cut operational emissions by 55% and reduce customers’ emissions by 16% before 2030. It said it believes its OpenBlue platform for optimizing building sustainability will be central to fulfilling these goals and ultimately creating an environment for healthy people, healthy places and a healthy planet.
JCI said it also recently joined the Business Ambition for 1.5°C campaign and is a signatory to The Climate Pledge, an initiative of business leaders co-founded by Amazon and Global Optimism. Signatories to the pledge commit to reaching net-zero carbon emissions by 2040 – 10 years ahead of the Paris Climate Agreement goal.
Johnson Controls releases 2021 Sustainability Report
CORK, Ireland, 10 April 2021: Johnson Controls on April 9 published its 2021 Sustainability Report, highlighting its new environmental, social and governance commitments and progress towards the company’s sustainability goals, the company said through a Press release.
George Oliver, Chairman and CEO, Johnson Controls, said: “At Johnson Controls, sustainability is our business. This year saw us continue to pioneer new and important paths to sustainability, including our issuance of a green bond in the U.S. capital markets – among the very first industrials to do so.
“We welcome and embrace the enhanced attention and urgency around tackling climate change and making gains across environmental, social and governance pillars. We are determined to strengthen and further build our culture of diversity and inclusion.
“Our bold new sustainability commitments demonstrate we are all-in to help drive healthy buildings, healthy people and a healthy planet for our employees, shareholders, customers and all of our stakeholders.”
According to Johnson Controls, highlights of the report include:
- New ambitious sustainability commitments that outline the company’s priority to make positive changes in lowering its company footprint, such as achieving net zero carbon emissions before 2040.
- Its first-ever Sustainability Report that includes and fully integrates its first-ever diversity and inclusion report, highlighting its D&I commitment, mission, vision, pillars and progress.
- Its goal to double its customers’ emission reductions through implementation of its OpenBlue digitally enabled solutions by 2030.
- Its intention to double the representation of women leaders globally and minority leaders in the United States over the next five years.
- Its green financing initiatives, including a green bond – one of the first industrial companies to issue a green bond in U.S. debt capital markets – and a senior revolving credit facility tied to specific sustainability metrics
- Executive compensation that is linked to sustainability and diversity performance goals
- The appointment of the company’s first Chief Sustainability Officer and the formation of a Governance and Sustainability board of directors’ committee
- Performance contracting projects that have helped its customers avoid more than 30.6 million metric tons CO2e and save USD 6.6 billion through energy and operational savings since January 2000.
- Greenhouse gas emissions intensity reduction of more than 70% since 2002.
- Our commitment to The Climate Pledge, co-founded by Amazon and Global Optimism, to reach net-zero