As Trane Technologies continues to transform tomorrow, today, we publish an annual ESG report covering our process for and progress in addressing ESG topics that are relevant and material to the company and our stakeholders. This report covers 2021 enterprise-wide information and data for Trane Technologies, unless otherwise noted. View or download our ESG Data Center.
GRI 102-46, 102-47
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 conducting a peer analysis. Then, based on quantitative and qualitative research and feedback from stakeholders, we identify and capture priority topics in a matrix that provides a snapshot of the ESG challenges and opportunities of highest importance. Our most material ESG topics — the non-financial topics that are of greatest impact to our business and stakeholders — fall in the upper-right quadrant of the materiality matrix.
Our most recent materiality assessment, refreshed in 2018, identifies ESG issues as:
Climate change impacts many of these topics. As a result, identifying opportunities to address climate change is a key component of our ESG strategy. Read more about our approach.
We are committed to reporting on these topics and continually enhancing our disclosures on these issues. This report outlines our management approach, data, and initiatives for each of these material topics. It is compiled and reviewed by our subject matter experts, the Center for Energy Efficiency and Sustainability (CEES), our internal and external Sustainability Leadership Councils, and our Board of Directors. We plan to update our materiality assessment in 2022.
Materiality, as used in this report, and sometimes referenced as “ESG materiality,” is different than the definition used in the context of filings with the Securities and Exchange Commission (SEC). Issues deemed material for purposes of this report and for determining our ESG strategies may not be considered material for SEC reporting purposes. Read more about our materiality assessment and governance processes.
Our annual ESG report aligns with leading ESG and sustainability reporting frameworks including:
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 2021 Annual Report.
GRI 102-46, 102-56
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. We believe this most accurately reflects the direct impact of our operational footprint. The company’s Scope 3 product-related emissions are those emissions associated with the product-use phase and cover greater than 95% of the revenue associated with the diverse product portfolio. For data associated with the company's 2030 Gigaton Challenge commitment, heating and cooling output is normalized for growth in order to capture product performance improvements.
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 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 environmental data we report improves in accuracy and expands in breadth.
Data is presented in absolute terms, and is normalized by company revenue (intensity). Our safety data is normalized by the number of hours worked.
Our environmental, health, and safety (EHS) data and GHG emissions data are assured annually by a third party, including the product use emissions contributing to the Gigaton Challenge. View the results in our 2021 assurance statement.
This report contains certain forward-looking statements, which are statements that are not historical facts, including statements regarding our 2030 Commitments; our pathway to net-zero by 2050; other ESG targets, goals, commitments, and programs; and other business plans, initiatives, and objectives. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or the negative thereof or variations thereon, or similar terminology generally intended to identify forward-looking statements. All such statements are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Our actual future results, including the achievement of our targets, goals, or commitments, could differ materially from our projected results as the result of changes in circumstances, assumptions not being realized, or other risks, uncertainties, and factors. Such risks, uncertainties, and factors include the risk factors discussed in Item 1A of our most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC. We urge you to consider all the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this report.