UTC's Environmental Performance

UTC has continuously reported Environment, Health & Safety (EH&S) performance since 1992. In 1997, we committed to 10-year goals to reduce energy and water use, which resulted in a 19 percent reduction in energy use and a 49 percent reduction in water use by the end of 2006. With 2006 as our baseline, we then set even more aggressive goals for improved performance by the end of 2010. These goals include reducing greenhouse gas emissions by 3 percent annually and water consumption by 2.5 percent annually. Since the beginning of 2007, we have achieved reductions of 11 percent on both metrics. UTC environmental reporting standards encourage the ongoing analysis and correction of data as applicable following the close of a reporting period.04

UTC strives to maintain the highest environmental standards everywhere we do business. Environmental sustainability is an important part of both our operations and our products as they perform in service. We have a history of setting aggressive environmental goals and pursuing them by continuously improving our processes at every level of the company. In addition to our own work and to overcome some of today’s greatest challenges, we partner with other companies and non-governmental organizations to find and implement solutions.

2009 Environmental Objectives

• Reduce greenhouse gas emissions 3 percent annually and water consumption 2.5 percent annually from 2007 through 2010
• Invest $100 million from 2007 through 2010 in energy conservation projects, including co-generation systems
• Ensure compliance with environmental permits
• Develop 2011 through 2015 sustainability goals with a focus on suppliers and products in use

Background

Beginning in 1991, UTC established Environment, Health & Safety (EH&S) goals and the following year began publicly reporting performance against them. After meeting and exceeding many goals ahead of schedule, UTC committed to aggressive 10-year goals to reduce energy and water use in 1997. We added air emissions and waste reduction goals in 1999.

After achieving all of the environmental metrics in the previous goals, we then set even more ambitious goals for improved performance between January 1, 2007 and December 31, 2010 (using 2006 results as our baseline). We have committed to reduce greenhouse gas emissions 12 percent and water consumption 10 percent through the end of 2010. We have already exceeded our water reduction goal as of December 31, 2008 and we will continue to aggressively identify and implement further reductions. To measure greenhouse gas (GHG) emissions, we will use the Greenhouse Gas Protocol established by the World Business Council for Sustainable Development and the World Resources Institute.