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Energy

Powering our business with efficiency in mind

The energy we use to power our manufacturing facilities and business operations indirectly impacts the global community through the GHG emissions related to generation of that energy. We reduce our impact and cost of operations by improving our energy efficiency, reducing our energy consumption, and transitioning to 100% renewable energy use.

GRI 103-1, 103-2

By 2030, we plan to achieve a 10% reduction in absolute energy consumption against a 2019 baseline, which will contribute to the achievement of our science-based target to reduce absolute Scope 1 and 2 emissions by 50% below 2019 levels and achieve carbon neutral operations, both by 2030. Read more about our sustainability commitments.

Progress toward these goals is managed and tracked by each business unit at each location and overseen by our Vice President of Environmental, Health, and Safety. During 2021, Trane Technologies developed a new Enterprise Energy Management Policy signed by our CEO. The policy captures our commitments to energy efficiency improvements across all business functions and operations.

Energy Breakdown

GRI 103-3, 302-1

SASB RT-EE-130a.1, RT-IG-130a.1

In 2021, our operations consumed approximately 2,945 billion kilojoules (kJs), a 3% reduction from our 2019 baseline. Our energy intensity ratio (our total direct energy consumption divided by our total annual revenue) decreased to 0.21. Of the energy consumed, 51% was from renewable sources. Our EHS management team completes an annual internal audit to confirm the accuracy of our energy use data. This data is also verified by a third party as part of a limited data assurance audit. At the end of 2021, we had five International Standards Organization (ISO) 50001-certified sites, three LEED-certified sites, and three Green Globe-certified sites.

Energy Mix and Intensity

Bar and line chart showing the energy mix and normalized energy use (billion kJ/million USD) from 2019-2021

Absolute Energy Use


2019
2020
2021
Absolute Energy Use (billion KJ)
Direct (fuel use)
1,880
1,710
1,806
Natural gas
783
752
786
Gasoline
791
713
763
Diesel
217
191
183
Propane
61
48
52
Solar electricity generated and used
9.5
8.9
9.4
Aviation fuel
17.7
6.9
12.2
Indirect (electricity)
1,158
1,091
1,139
Total Energy Consumption
3,037
2,811
2,945
Normalized energy use (billion kJ/million USD)
0.2323
0.2257
0.2083

Energy Efficiency

GRI 302-3, 302-4

At Trane Technologies, we continuously reduce our overall energy consumption to increase business productivity and reduce GHG emissions. Within our operations, we use the same whole-system approach to energy efficiency as we offer our customers. We install passive heating and cooling techniques to reduce the needed load from HVAC systems, automate mechanical systems to reduce energy waste, and design smarter systems that support renewable energy integration and shift electricity demand during peak periods to reduce consumption of carbon-intense electricity from the grid. By the end of 2021, we also modernized our fleet to 7% hybrid and full electric vehicles.

Employee Green Teams and the Trane Energy Services Team help us innovate and implement site-specific energy efficiency improvements at each Trane Technologies location. Our membership in multiple coalitions rooted in the clean-energy economy also awards us technical assistance and opportunities for collaboration to achieve our goals. After achieving our goal to reduce energy intensity by 35% for U.S. operations by 2019 under the DOE Better Plants Program, Trane Technologies established a new Better Plants commitment in 2021 to reduce energy intensity by 20% in the next 10 years. We are also committed to doubling our energy productivity by 2035 from a 2013 baseline through the EP100 coalition and achieving an annual energy efficiency improvement of 3% through the Three Percent Club. We are on track to achieve these goals.

Renewable Energy

Sourcing renewable energy to power our operations is a significant part of our energy management strategy. We source renewable-based electricity from our own on-site photovoltaic/solar generation systems, through contracts with power suppliers who provide electricity directly from renewable systems (solar, wind, or water), and contracting for long-term power purchase agreements (PPAs).   

2021 Renewable Energy Breakdown

Pie chart showing renewable energy breakdown
2021 Renewable Energy Data
Amount (billion kJ)
Amount (%)
Renewable energy generated
23.17
3.8
Renewable energy generated and sold to grid
0.89
0.15
Renewable energy generated and used
9.44
1.6
Renewable energy purchased
574.1
94.5

As part of our membership in RE100, we set a goal to source 100% renewable electricity globally by 2040. We are on track to achieve our goal, and this year, 20 Trane Technologies locations (see mapping below) operated with 100% of their electricity provided directly or indirectly from renewable sources. These locations are RE100 compliant operations sites and make up over 50% of Trane Technologies' global electricity use.

Map of Trane Technologies' distribution, manufacturing, and technology centers

Large-scale investments in renewable energy production are vital to shifting to a clean-energy economy. We invested in on-site solar energy generation at three of our facilities – Trenton, NJ, Columbia, SC, and Taicang, China – to reap the benefits of operational and cost consistency, which is especially important in parts of the world with uncertain electricity prices and availability, and to maintain close claims on credits. We partnered with local power companies to purchase the on-site photovaltaic (PV) systems located at our facilities in Trenton, NJ, and Columbia, SC. The power companies own the renewable energy attributes generated by the PV systems, and Trane Technologies purchases Renewable Energy Certificates (RECs) in the matching amount of the renewable electricity generated. The energy generated at our Taicang, China, manufacturing facility is used to power our operations directly and excess is sold to the grid during off-peak times. In the last few months of 2021, we completed installation of a PV system at our Zhongshan, China, facility, which will begin generating solar electricity in 2022. These solar installations address about 14% of the electricity load across these three manufacturing sites.

We also participate in a virtual power purchase agreement (VPPA) with the Seymour Hills windfarm in Texas, which began generating electricity in June 2019.  By generating renewable electricity, contracting with power companies who only supply renewable electricity, and the delivery of RECs through our VPPA, we achieved a reduction of 54% in our market-based Scope 2 GHG emissions since 2019. Read more about our emission reductions.

Trane Technologies Renewable Energy Sources

Project
Location
Type
Estimated Annual Production
REC Treatment
Trenton Solar Project
Trenton, New Jersey, USA
On-Site Solar PV
1,994 MWh
Utility owns REC1
Columbia Solar Project
Columbia, South Carolina, USA
On-Site Solar PV
1,575 MWh
Utility owns REC1
Taicang Solar Project
Taicang, China
On-Site Solar PV
2,622 MWh
Company owns renewable energy attributes from 100% of generation
Seymour Hill Wind Farm VPPA
Northern Texas, USA
Wind VPPA
105,892 MWh
Company owns and retires RECs
Use of Zero Carbon Electricity
Bari, Italy; Galway & Shannon, Ireland; Essen, Germany
Direct supply of 100% renewable electricity by local power provider
5,072 MWh
-
Vendor Provides RECs or GOs
Barcelona, Spain; Hastings, NE, USA; Prague ETC & Kolin, Czech Republic; Tyler, TX, USA
Power company purchases and retires RECs/Guarentees of Origin (GO) for a portion or 100% of Trane Technologies electricity
44,965 MWh
Power provider retires RECs/GOs on behalf of Trane Technologies

1. The RECs from this project are owned by the utilities. We purchase replacement RECs, equal to the amount of solar generated by the PV system, from other renewable energy facilities in the U.S.

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