We are committed to annual reporting on environmental, social and governance (ESG) topics — a process that helps us measure and manage progress and contributes to ongoing engagement with our internal and external stakeholders. This report proudly documents the achievement of our 2020 sustainability targets and introduces our next-generation 2030 Sustainability Commitments.
The subject matter and data included in our 2019 ESG Report covers our combined Industrial and Climate business known in 2019 as “Ingersoll Rand.” In the first quarter of 2020, we separated our Industrial segment, and the remaining HVAC and transport refrigeration assets became Trane Technologies. Going forward, Trane Technologies will issue a separate ESG report.
A formal materiality process defines our ESG priorities, shapes our strategy, guides our goal setting and defines our resource allocation and reporting.
We start by reviewing our business priorities and doing a peer analysis. Then, based on both quantitative and qualitative research and feedback from internal and external stakeholders, we identify and capture priority topics in a matrix that provides a snapshot of the ESG challenges and opportunities of highest importance to our business. Our most material ESG topics — the non-financial topics that are of greatest impact to our business and our stakeholders — fall in the upper right-hand quadrant of the materiality matrix.
Our most recent materiality assessment, refreshed in 2018, identifies the most important ESG issues as:
Additionally, climate change is a cross-cutting issue, which is why it is core to our strategy — read more about our approach.
This report outlines our management approach, data and initiatives for each of our 15 material topics. It is reviewed by our subject matter experts, our Center for Energy Efficiency and Sustainability (CEES) and sustainability leadership teams. Read more about our materiality assessment process and see a full list of material ESG topics.
Our annual ESG report aligns with leading ESG and sustainability frameworks:
Global Reporting Initiative (GRI): The GRI Standards (core option) are foundational to our reporting process. See our GRI Content Index for an overview of disclosures on our material ESG topics.
Sustainability Accounting Standards Board (SASB): 2019 marks our second year reporting to the SASB framework. See our SASB Disclosure.
Task Force on Climate-related Financial Disclosures (TCFD): We strongly support the TCFD and have expanded our reporting to align with the Task Force’s voluntary disclosures. See our TCFD Disclosure.
We also respond to CPD’s Climate Change and Water questionnaires. ESG information is integrated into our annual financial reporting — a reflection of our business focus on sustainability and commitment to meeting the requirements of the European Union’s Directive on Non-Financial Disclosures. See our non-financial statements in our 2019 Annual Report.
Throughout this report, we define our organizational boundary using the financial control approach and report on Scope 1 and 2 greenhouse gas (GHG) emissions using the GHG Protocol Initiative’s guidelines. In 2014, we completed a corporate-wide review of our Scope 1 and 2 GHG emissions for all owned and leased assets using the Greenhouse Gas Protocol accounting standards. We believe this most accurately reflects the direct impact of our operational footprint, and plan to update the review when we are officially Trane Technologies.
We report data from newly opened and acquired facilities as soon as valid data is available. For recently closed or sold facilities, the data is included for the time period a site was part of the company and to ensure year-over-year comparisons remain consistent. As such events occur, baselines are adjusted to account for these operating footprint changes. As our data collection system continues to mature and improve, the environment data we report improves in accuracy and expands in breadth.
Data is presented in absolute and normalized (intensity) terms. Normalizing environmental and energy data to total revenue provides valuable insights into the level of eco-efficiency across our diversified operations and allows benchmarking against the performance of other industrial companies. Our safety data is normalized by the number of hours worked.
Our EHS and GHG data are assured annually by a third party; view the results of our 2019 assurance statement.