More than one-quarter of global greenhouse gas (GHG) emissions come from electricity and heat production, according to the Environmental Protection Agency (U.S. EPA) — meaning innovation in our industry can help change the world. As climate innovators and pioneers, we are up to the challenge.
We confront climate change by setting ambitious targets. As part of our 2020 Targets and Climate Commitment, we developed Scope 1 and 2 emissions reduction targets through the Science Based Targets Initiative that align with the level of decarbonization required to keep global temperature increase below two degrees Celsius. We met and surpassed these goals in 2018, two years ahead of schedule.
To date, we have avoided more than 20 million metric tons of CO2 equivalent (CO2e) globally from our products compared to a 2013 baseline. We have also reduced the GHG emissions intensity of our operations by 50% and reduced energy use by 80,228 million British thermal units (BTUs) and electricity consumption by 23,513 megawatt hours (MWh) since 2013.
We’re now going even further to confront climate change by setting even bolder goals. Our 2030 Sustainability Commitment is a suite of goals designed to transform our supply chain and operations and bring efficient and sustainable climate solutions to buildings, homes and transportation. These goals include reducing our customer carbon footprint by 1 gigaton (or 1 billion metric tons of CO2e) and achieving carbon neutrality across our operations.
We have also increased our disclosure of climate-related risks. Last year, we joined a cohort of companies leading climate change action in signing on to support the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In doing so, we outlined our approach to governance, strategy and risk management as well as our metrics and targets in our second-ever climate-related disclosure. We also started piloting a shadow price on carbon of $8 a ton to help us prioritize low-carbon investments.
What’s our biggest climate challenge? Driving reductions in the footprint of our products during the use phase — which is the largest source of GHG emissions related to our business. That’s why we regularly perform climate-related scenario assessments, which help us determine our product strategy with respect to climate drivers, like GHG emissions and energy efficiency. Our assessments align with the timeframe of the Kigali Amendment to phase out the use of hydrofluorocarbons — a commonly used refrigerant with high global warming potential.
Read more about our efforts to reduce GHG emissions and transition to next-generation refrigerants in public policy advocacy and compliance, greenhouse gas emissions, pollutant emissions and refrigerants and product emissions.