Our EnvironmentArticle
A Vision and Roadmap for a Net-Zero Future
June 19, 2023
The road to a net-zero future is paved with uneven milestones and few signposts, but getting there is possible with the right roadmap and vision.
Last year, Trane Technologies became the first in our industry—and one of the first companies in the world—to have our long-term net-zero carbon emissions targets approved by the Science-Based Targets initiative, following previous approval of our near-term 2030 targets. Getting these long-term targets validated was a huge milestone for our vision of a sustainable future, but setting our sites on 2050 required the courage to take action and work toward solving the hard issues. That’s the path we are on.
And for the same reason we shared our Gigaton Challenge playbook to help others see a more sustainable path for themselves, we are sharing a first glance at our net-zero roadmap to build momentum for ourselves, our industry and beyond. Here is what our plan outlines.
Our Scope 1 and 2 Actions
We’ll reach our Scope 1 and 2 net-zero goal by taking these actions:
- Expanding renewable energy at our facilities and through virtual power purchase agreements and leveraging clean hydrogen fuel as it becomes available for our facilities
- Increasing our operational energy efficiency
- Transitioning to low-global warming potential refrigerants and reducing leakage
- Fully electrifying our fleet and optimizing routes
- Continuing to accelerate energy efficiency and smart technology
For example, on expanding renewable energy—we’re nearing completion of a 10,000-panel solar power installation at our Monterrey, Mexico facility—the largest in the country. When operational, this photovoltaic system, which includes a Tesla Battery Energy Storage System, will supply 70% of the electricity needed to power the facility each year.
And in our latest ESG Report, we spotlighted our commitment to transition 100% of our global fleet of more than 8,000 vehicles, including service vans and trucks, to all electric vehicles (EVs) by 2030. In alignment with the Climate Group’s EV100 initiative, we will help accelerate the transition to EVs in our industry and beyond, while supporting the critical deployment of charging infrastructure for employees and communities near company-owned offices, manufacturing facilities and service centers.
Our Scope 3 Actions
We’ll reach our Scope 3 net-zero goal by taking these actions related to our customer’s use of our products…
- Increasing sales of high-efficiency equipment
- Expanding product mix to accelerate electrification
- Managing the transition to lower-global warming potential refrigerants
- Increasing system-level efficiency
- Continuing to accelerate energy efficiency and smart technology
- Exploring direct carbon capture pathways as technologies mature
- Exploring alternative approaches to heating and cooling
For example, Trane® recently launched the first thermal battery storage-source heat pump system, an all-electric heating system for buildings in extremely cold climates and dense urban settings. The system includes thermal energy storage used for decades that employs ice tanks to reclaim and restore excess heat in the form of cold water for future heating needs. Chiller-heaters, air-to-water heat pumps and controls complete the system, which eliminates the need for fossil-fuel-powered boilers.
And Thermo King® is accelerating the electrification of transport refrigeration for our customers, pledging to deliver all-electric, zero-emission solutions for every segment of the end-to-end cold chain by 2023 in Europe, Middle East and Africa (EMEA) and 2025 in the Americas.
Opportunity across our entire value chain
Our value chain is rich with opportunities to reduce embodied carbon – with suppliers’ operations, in how we design and manufacture products, and how we ship. We are implementing policies that keep sustainability central to supply chain decision-making.
Last year, as the first our industry to join SteelZero, we pledged to increase our purchase of low-carbon steel over time to move the market toward near zero materials and technologies. We announced purchase agreements with two supplier partners to purchase low-carbon steel nearly 80% less carbon intensive than traditional blast furnace steel, representing 20% of our annual steel purchase. By 2050, we’ve pledged to procure 100 percent net-zero steel.
Finding new roads
While we’ll continue accelerating energy efficiency and smart technology, we’re open to the idea that we don’t know what we don’t know, and options that appear to be experimental or beyond our core competencies could end up being something we should pursue. Our chair and CEO Dave Regnery recently said, “It’s not often you find an incumbent who is also a disruptor. But that’s exactly who we are.”
And that’s exactly how we will innovate our way into a more sustainable future.
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