English
September 08, 2026
A CFO’s Perspective on Business and Sustainability
Explore how business and sustainability create value together for customers, shareholders and the environment.
Business and sustainability are converging in powerful and exciting ways. The intersection between them has become a source of competitive advantage, driving growth and unlocking innovation. Sustainability and business goals are not mutually incompatible; when approached with a focus on measurable outcomes, they reinforce each other. From my seat as the Chief Financial Officer of Trane Technologies, operating at that intersection means applying the same rigor to decarbonization investments that we would apply to any other, while expanding the ROI measurement lens to incorporate sustainability returns and outcomes.
Reframing the business and sustainability myth
While there is sometimes a perception that sustainability and financial performance are competing goals, the ROI of sustainability is not theoretical. It is real, measurable and can be tied directly to growth and value creation.
That alignment is visible in our company’s performance. As our 2025 Sustainability Report shows, Trane Technologies has consistently delivered strong growth and shareholder returns. As of 2025, our company has helped customers avoid 331 million metric tons of carbon emissions and reduced our operational emissions by 59% compared to the 2019 baseline. Our 2025 business results were just as impressive — we delivered $21.3 billion in revenues (up 7% on a reported basis) and 16% adjusted earnings per share growth. These parallel achievements illustrate how outstanding business results can be supported by deep investment in sustainable technology and business practices.
These results are not accidental. We consistently see that investments in sustainable technologies can generate measurable returns for our customers and our business. We focus on creating a sustainable innovation flywheel: new technologies drive market momentum, leading to better business and sustainability performance as we build compelling new solutions that create value for our customers and sustained growth for our company.
Returns from sustainable business practices can take multiple forms, and these investments should be evaluated with the same rigor as any other. When we do that, we can demonstrate the true ROI of sustainability, including through both financial returns and decarbonization progress.
Sustainability can take multiple forms. As a company, we will continue investing in our innovation flywheel that drives sustained growth over time.
The ROI of sustainability: from investment to impact
As our long-term growth strategy of integrating business and sustainability advances, we see significant opportunities ahead. Building on our industry-leading expertise in commercial HVAC, we continue to address a large and growing decarbonization opportunity. For example, industry estimates suggest that up to 30% of energy is wasted after the meter. Helping our customers reduce energy waste can deliver measurable cost savings while reducing emissions. Data center energy efficiency is also a priority, and we are focused on continuing our innovation in this vertical.
Another example lies within our transport refrigeration business. Our investment in innovative electrification and hybrid fuel technologies gives our customers optionality and opportunities for both business and environmental benefits while also positioning Trane Technologies for future growth.
Digital technologies are also providing new opportunities to create value for customers. For example, when a digitally connected customer has an HVAC emergency or a failure, the Trane Technologies team can view the issue remotely within minutes of receiving a call and begin diagnostic efforts before ever having to roll a truck. Often, we can resolve issues without ever needing to be on site, which helps our customers keep their systems up and running.
Looking ahead, the future of technological innovation is being shaped by digital technology solutions. When paired with human expertise, AI-powered systems are now able to leverage data and advanced analytics to improve outcomes across the built environment and throughout transport systems.
As our offerings in these segments expand, our continued investment in sustainable new products and technologies can support business performance across the built environment and commercial transport.
Business and sustainability for long-term growth
Key steps for integrating business and sustainability include aligning strategy, measurement and culture. These are some of the actionable steps we take to turn ambition into measurable value and realize the full ROI of sustainability.
At Trane Technologies, we treat sustainability work as a core business strategy, not a side initiative. We integrate sustainability into all facets of our work: long-term strategy, annual operating plans and individual performance goals.
Measurement is also key. We evaluate sustainability initiatives by leveraging clear business plans, measurable outcomes and projected ROI. Because of this approach, our sustainability investments drive a variety of positive outcomes, including business growth, cost avoidance, emissions reductions and long-term value creation. We measure progress against those returns over time, just as with any other investment.
Finally, we embed sustainability into our culture and decision-making processes, so that our teams understand the operational needs driving these investments while making sustainability performance part of employees’ performance goals. This helps create the culture that helps our sustainable investments drive growth.
Sustainability becomes part of how an organization operates when it reinforces a culture of purpose, engagement and continuous learning. When leaders and teams share a common framework and goals, decisions that balance near-term performance with long-term business and sustainability outcomes become standard business practice.
Playing the long game for business and sustainability
Our culture of sustainability is anchored by shared, long-term objectives. The Gigaton Challenge, our target of helping our customers avoid one gigaton of carbon emissions by 2030, helps drive the technological innovation that supports our business and sustainability goals while creating value for our customers. And our sustainability commitments include a long-term target of achieving net-zero by 2050.
To use a baseball analogy, we're in the first inning of decarbonizing the built environment and commercial transport. And we’re playing the long game by developing innovative technologies that are good for both the environment and our customers, helping them cut costs and operate more efficiently while reducing emissions.
Sustainable investments can unlock new waves of innovation. And when business and sustainability are integrated with long-term value creation, everyone benefits: business shareholders, society and the planet.
The future is ours to create.
Explore careers that make an impact at Trane Technologies
Topic Tags
