ENVIRONMENTAL,
SOCIAL & GOVERNANCE
2023 REPORT

Innovating for a sustainable future throughintelligent climate and energy solutions.
The actions we take today will shape a sustainable future forgenerations to come. Carrier is innovating to address the planet’s
most urgent challenges while meeting the needs of customers andsupporting our communities and our people.
As we expand our portfolio of intelligent climate and energy
solutions, Carrier is accelerating the shift toward electrification,
more connected technologies and environmentally responsible
refrigerants. We are helping customers reduce their carbon footprint
and meet their sustainability goals by improving energy efficiency inbuildings, in homes and across the cold chain.
We are progressing toward our own ambitious ESG goals throughsustainable practices and investments while fostering an inclusiveand diverse team that is united by a common purpose and values.
Together, we are innovating for a sustainable future.

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Table of Contents
Introduction

3

People30

About This Report .................................................. 3

Culture & Engagement ....................................... 31

A Message From Our Chairman& Chief Executive Officer ..................................... 4

Inclusion & Diversity ........................................... 33

About Carrier ........................................................... 5

Employee Well-Being .......................................... 39

Secular Trends Driving Growth .......................... 6
Programs .................................................................. 6
Sustainability & ESG ............................................. 62022 ESG Highlights ............................................. 8
ESG Recognition ..................................................... 8

Innovation & Solutions

9

Development & Career Growth ....................... 37

Communities

41

Corporate Responsibility .................................... 42
Planet ....................................................................... 42
People .......................................................................43
Communities ......................................................... 442022 Community Impact .................................. 44

Greenhouse Gas Emissions ............................... 10
Advancing Toward 1 Gigaton ............................ 11
Sustainable Investments ................................... 11
Sustainable Solutions ......................................... 13
Product Responsibility ........................................ 17

Operations

20

Governance

45

Leadership ............................................................. 46
ESG Governance & Oversight .......................... 46
Risk Management ................................................. 47
Ethics & Compliance .......................................... 48
Corporate Policy Manual ................................... 50

Operational Excellence ....................................... 21
Environment, Health & Safety Management .22
Energy & Operational Carbon Footprint ........ 23
Water ........................................................................ 25
Waste ....................................................................... 26
Health & Safety .................................................... 26
Responsible Supply Chains ............................... 28

ESG Indices51

ESG Focus Areas................................................... 52
Stakeholder Engagement .................................. 53
ESG Data ................................................................. 55

Governance

ESG Indices

Carrier 2023 ESG Report

About This Report
GRI 2-2, 2-4Carrier’s 2023 Environmental, Social & Governance (ESG) Report covers performance for calendar
year 2022. Where relevant, we include information from 2023. The information and data includedin this report are based on the best available information and data at publication and are subject tochange. In some cases, data is estimated.
In January 2022, Carrier sold our Chubb fire and security business. This report does not include
Chubb data for 2022; however, Chubb is included in the data provided for previous years.
In July 2022, Carrier acquired Toshiba Carrier Corp. (TCC), a long-standing joint venture between
Carrier and Toshiba. TCC is a global provider of residential and light commercial HVAC solutions,
including variable refrigerant flow and heat pump products. Data from TCC has not been fully
integrated into Carrier’s reporting systems and, therefore, is not included in this report.
This report includes, where appropriate, references to the Global Reporting Initiative (GRI)
Standards. We also use other recognized frameworks in this report, including the Sustainability
Accounting Standards Board (SASB) Standards and the Task Force on Climate-related Financial
Disclosures (TCFD).
For further details on our ESG strategy, policies and programs, please visit corporate.carrier.com.

3

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Our planet is at a critical juncture. Climate change
is causing irreparable damage to the environment,
and the need to transition to renewable energy
has never been greater. At Carrier, the purposefultransformation of our portfolio will create a true
global climate champion that leverages innovativetechnology to make a meaningful impact on theworld for generations to come.
The planned acquisition of Viessmann Climate
Solutions and exits of our Fire & Security andCommercial Refrigeration businesses will makeus a simpler, more focused leader in intelligent
climate and energy solutions.

David Gitlin, Chairman& Chief Executive Officer“At Carrier, the purposefultransformation of ourportfolio will create a true
global climate champion.”

This combination of two great companies is agame-changing, revolutionary opportunity thatwill solidify our leadership role in the fast-growing
European residential heat pump and energy
transition markets. It will also enable us to provide
the most comprehensive and differentiated suiteof sustainable technologies and services in Europe
and, eventually, globally. This complements ourprior acquisition of Toshiba’s HVAC business,
strengthening our position in the global climate
solutions market.
These strategic actions align Carrier with the
key secular trends shaping our industry: climatechange and sustainability, energy transition,
the rapid adoption of green energy solutions
accelerated by government regulations andincentives, and digitalization. In Europe, the Paris
Agreement and the European Green Deal target a
55% reduction in greenhouse gas (GHG) emissions
by 2030. Importantly, the REPowerEU plan aims todouble heat pumps to 10 million units over the next

Governance

ESG Indicesfive years, driving heat pump adoption in European
homes from 8.5 million to 40 million by 2030.
And, roughly 70% of European Union customers
are actively reducing energy consumption at home.
Sustainability is at Carrier’s core, and we continue
to drive decarbonization. We are targeting netzero GHG emissions across our value chain by
2050, complementing our existing goal of helping
customers reduce their GHG emissions by morethan 1 gigaton by 2030. Since 2020, our highefficiency and lower global warming potentialrefrigerant products have enabled customers to
avoid more than 212 million metric tons of GHG
emissions – equal to the annual energy use ofnearly 27 million U.S. homes.
We also made improvements across our own
operations – reducing Scope 1 and 2 emissions
from 2021 levels and our energy intensity byapproximately 21% over the same period. We
added disruptive companies to the Carrier
Ventures investment portfolio. Our partnerships
with Archilogic, Butlr and Transaera will accelerate
next-generation, sustainable technology.
Additionally, we have enhanced the oversightof our ESG initiatives by elevating the primary
responsibility for Carrier’s ESG program, goals andobjectives, including climate-related matters, toour Board of Directors. This reflects our belief thatsustainability is more than just good for business,
it is a core part of Carrier’s growth strategy.
From a people standpoint, our inclusive and diverse
team works to make a positive difference forpeople and the planet – and together, we inspire

Carrier 2023 ESG Report4

confidence in sustainable outcomes. The Carrier
Way remains at the core of everything we do. It
defines our vision, reaffirms our values, describes
the behaviors that create a winning culture, andestablishes how we work and win together.
We continue to advance our inclusion and diversity(I&D) strategy so all employees feel like they
_belong. Our I&D focus extends to our business
relationships. In 2022, we purchased $312 million
of products and services from first- and secondtier small and diverse-owned businesses in the
United States – a 55% increase in two years. It
also reaches our communities: We partner with
two historically Black colleges and universities
to strengthen our diverse talent pipeline and help
students gain valuable skills for future careers.
I am proud of the progress we are making. Looking
ahead, we strive to be a catalyst for positive andsustainable change as we innovate, empower ourpeople and operate with integrity. As a world leader
in intelligent climate and energy solutions, Carrier
is proud to have a deeply positive impact on people
and our planet.

David Gitlin
Chairman & Chief Executive Officer, CarrierTable of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

About Carrier

Governance2022 Net Sales Breakdown

Carrier is a global leader in intelligent climate and energy solutions, with a diverse and world-classworkforce. With more than a century of expertise, we drive innovation while putting our customers first,
helping protect our planet, and inspiring and empowering our people. Through our performance-driven
culture, we are driving long-term shareowner value by growing earnings and investing strategically tostrengthen our position in the markets we serve.

$20.4B
2022 NET SALES

75+

$539M

Net sales by business segment1$13.4B

$3.9B

$3.6B

2022 RESEARCH
and DEVELOPMENT

100+

BRANDSNEW PRODUCTS
for the 8th consecutive year

~52,000

9,000+EMPLOYEESCarrier 2023 ESG Report

ESG Indices

HVAC

Refrigeration

64%

Net sales by region

19%

Fire & Security

Net sales mix

ACTIVE PATENTS
and pending patentapplications worldwide

160+
COUNTRIES

1

Segment sales include intercompany sales.

Read in conjunction with Form 10-K.

Americas60%

New Equipment

77%

EMEA		

23%

Parts and Service 23%

Asia Pacific

17%

17%

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PeopleCommunities

Governance

Secular Trends
Driving Growth

Programs

Carrier lives at the intersection of secular trends,
including climate change and sustainability,
energy transition, the adoption of alternative-fuelsolutions accelerated by government regulations
and incentives, and digitalization. We are well
positioned to address climate change as a key
tenet of our growth strategy.

At Carrier, we deliver sustainable and intelligent outcomes for people around the world.
We do this through our Healthy Buildings, Healthy Homes and Connected Cold Chain programs,
bringing together expertise from across our company and solutions from our industry-leading
brands to solve global challenges and inspire confidence.

~40%

We are shaping a healthier future through our Healthy Buildings Program. With solutions andservices that help optimize indoor environments for health, safety and security, we positively
impact occupant experiences in places where people live, work, learn and play, while helping toenhance sustainability and improve operational efficiency.

of energy-related GHG emissions
are attributable to buildings

Up to

~40%
of all perishable food loss could be
avoided by cold chain technology~$1T
is lost annually by retailers due
to supply chain inefficiencies

6

Sustainability & ESG
GRI 3-330%

efficiency gains can be achieved
from smart buildings

Carrier 2023 ESG Report

ESG Indices

Carrier’s Healthy Homes Program includes a suite of targeted solutions that can help improve
the overall health and safety of homes and the people inside. Our businesses continue tointroduce innovations that give people greater awareness and control of their home’s health.

Carrier takes a holistic, three-pillar approach tosustainability and ESG:

Sustainable Solutions
Carrier develops innovative products and digitallyenabled services that help customers reducegreenhouse gas emissions and achieve theirsustainability goals.

Sustainable Investments
We invest in intelligent climate and energy
solutions through our own research anddevelopment and external investments by
Carrier Ventures.

ESG in Practice
Our 2030 ESG goals commit us to pursuingdecarbonized solutions and operations, an inclusiveand diverse workforce, and vibrant communities.

We are making the cold chain more healthy, safe, sustainable and intelligent through ourConnected Cold Chain Program. Our solutions help preserve, protect and extend the supplyof food, medicine and other perishables across the globe.

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Carrier 2023 ESG Report

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ESG in PracticeCommunities

PeoplePlanetOur 2030 ESG goals underscore Carrier’s commitment to the things that matter and to continuously
challenge ourselves to think bigger and to be better. Expanding on three decades of environmental targets,
our goals include measures to improve our planet, our people and our communities through sustainable
solutions, investments and practices. We strive to be a catalyst for positive and sustainable change as weinnovate, empower our people and operate with integrity. That is The Carrier Way.

In addition, Carrier recently committed to setting near- and long-term greenhouse gas emission reduction
goals in line with the Science Based Targets initiative to limit global warming to 1.5°C. In accordance with thisinitiative, we also are targeting net-zero greenhouse gas emissions across our value chain by 2050.

2030 ESG Goals

2022 Progress

Reduce our customers’ carbon footprint by more than 1 gigaton.

Since 2020, our high-efficiency and lower GWP refrigerant products have enabled customers to avoid more than 212 million
metric tons of GHG emissions.

Invest over $2 billion to develop healthy, safe, sustainable and intelligent building and cold chain solutions
that incorporate sustainable design principles and reduce lifecycle impacts.

We have invested more than $730 million in sustainable research and design since 2020.

Achieve carbon neutral operations.

Our GHG intensity for Scope 1 and 2 emissions decreased by approximately 8% relative to 2021.

Reduce energy intensity by 10% across our operations.

We reduced our energy intensity by approximately 21% compared with 2021.

Achieve water neutrality in our operations, prioritizing water-scarce locations.

Our water withdrawal decreased by approximately 11% compared with 2021.

Deliver zero waste to landfill from manufacturing locations.

Three additional manufacturing sites achieved zero waste to landfill certification in 2022.

Establish a responsible supply chain program and assess key factory suppliers against program criteria.

We assessed 59% of Carrier’s product spend against sustainability criteria through our supplier sustainability program.

Exceed benchmark employee engagement.

Our Pulse survey results showed that Engagement Score was 76 and Inclusion Score was 74, both above benchmarks.1

Achieve gender parity in senior leadership roles.

Our global women executive population2 increased to 30% in 2022.

Achieve a diverse workforce that represents the communities in which we live and work.

From 2015 to 2022, our global executive diversity3 increased from 27% to 49%, and our U.S. People of Color professionals
increased from 18% to 26%.

Foster the growth of Employee Resource Groups (ERGs) to drive social impact.

Our six global ERGs held more than 40 events with a focus on inclusion and allyship.

Maintain world-class safety metrics.

Our recordable injuries decreased by 35% compared with 2021.

Positively impact communities by enabling access to safe and healthy indoor environments, alleviating hunger and foodwaste, and volunteering our time and talent.

We supported more than 1,100 civic, cultural, economic and social welfare organizations through the
Carrier Matching Gifts Program.

Invest in science, technology, engineering and math (STEM) education programs that promote diversity and inclusion.

We contributed more than $3.2 million to colleges and universities in support of research, scholarships and programs that
promote STEM-related careers and inclusion and diversity.

Promote sustainability through education, partnerships and climate resiliency programs.

1

This benchmark is provided by Carrier’s third-party engagement survey provider, with the data representing over 900 companies from around the world.

2

Does not include Toshiba Carrier Corp.

3

Global women and U.S. People of Color.

With Carrier’s support, students around the world participated in virtual field trips to discover the natural world throughNature Lab, The Nature Conservancy’s online curriculum program. This three-year program saw more than 1 million
online engagements.

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Carrier 2023 ESG Report

ESG Indices2022 ESG Highlights

ESG Recognition

Throughout our global operations, we are minimizing our environmental footprint and making investments that improve society. We hold ourselves accountableto achieve quantifiable impacts in all our ESG initiatives and recognize that much remains to be done, but we are proud of the progress we have made to date.

Ranked No. 9 of

100 Most Sustainable Companies
Barron’s, 2022

Environmental

SocialNamed toGovernance

Carbon Clean200
Corporate Knights, 2022

212M+

49%

44%

metric tons of GREENHOUSE GASEMISSIONS AVOIDED from products
sold and avoided food loss since 2020

GLOBAL EXECUTIVE DIVERSITY1

BOARD OF DIRECTOR DIVERSITY1,2$730M+
invested in SUSTAINABLE RESEARCH
AND DESIGN since 2020

134,000 MWh
of RENEWABLE ENERGY PURCHASED
for our North American electricity
consumption

Among theHuman Rights Campaign Foundation
Corporate Equality Index, 2022

26%

40%

U.S. PEOPLE OF COLOR
PROFESSIONALSBOARD LEADERSHIP DIVERSITY1,2

1,100+ORGANIZATIONS SUPPORTED throughthe Carrier Matching Gifts Program

Best Places to Work for
LGBTQ+ Equality

Achieved

Prime ESG Corporate Rating
ISS ESG, 2022

89%

Achieved

INDEPENDENT DIRECTORS, with arobust Lead Independent Director role
2

ESG Leader Rating
MSCI ESG Ratings, 2022
Among

America’s Most Responsible
Companies
Newsweek, 2022
Named an

ESG Industry Top-Rated Company
Sustainalytics, 2022

1

Global women and U.S. People of Color.

2

As of 4/20/2023.

8

Table of Contents

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Innovation & Solutions

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PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

9

Innovation &Solutions
Carrier innovates to accelerate the development ofintelligent climate and energy solutions. We design
digitally enabled solutions and services with the
product lifecycle in mind, and we proactively enhance
our products in advance of regulatory changes.

Greenhouse Gas Emissions . . . . . . . . . . . 10
Advancing Toward 1 Gigaton . . . . . . . . . . 11
Sustainable Investments . . . . . . . . . . . . . 11
Sustainable Solutions . . . . . . . . . . . . . . . . 13
Product Responsibility . . . . . . . . . . . . . . . 17

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Greenhouse Gas Emissions
HVAC accounts for approximately 40% of abuilding’s energy consumption, translating toapproximately 15% of annual global greenhousegas (GHG) emissions. Food loss and waste is alsoa major contributor to climate change. If food loss
and waste were a country, it would be the thirdlargest emitter of GHGs, contributing to about 10%of annual global GHG emissions.
Carrier annually develops and assesses our
GHG emissions inventory, and we are establishingscience-based targets. We also invest in sustainable
innovation and engage with stakeholders to drive
positive climate action.

GHG Inventory
Our Scope 3 GHG emissions account for more than
99% of our carbon footprint, with GHG emissions
from our products in use representing the majority.
Scope 1 and Scope 2 make up less than 1% of ourcarbon footprint.

GHG Emission
Reduction Targets
Carrier is establishing science-based targets inline with limiting global warming to 1.5°C. We arealso now targeting net-zero GHG emissions acrossour value chain by 2050, enhancing our existing2030 goals of helping our customers avoid morethan 1 gigaton of GHG emissions and achievingcarbon neutral operations. Combined, these targets

Governance

Carrier 2023 ESG Report

ESG Indices

10

Emission Sources in Carrier’s Value Chain
GRI 305-1, 305-2, 305-3

address Scope 1, 2 and 3 emissions, covering
enterprisewide direct and indirect emissions.
Near- and long-term goals addressing Carrier’s
Scope 1, 2 and 3 emissions will be developed,
published and verified in accordance with the
Science Based Targets initiative validation process.

Investments in
Sustainable Solutions
We recognize the need for intelligent, sustainable
solutions to help our customers achieve theirdecarbonization goals. We invest in sustainable
design, including energy-efficient solutions, lower
global warming potential (GWP) refrigerants andmore electric technologies, while leveraging service
and digital solutions to optimize performance.

Greenhouse Gas Emissions
GHG
ProtocolScope

UPSTREAMSCOPE 3

• Purchased goods and services• Capital goods• Fuel and energy-related
Sources

activities• Upstream transportationand distribution• Operational waste

Incentivize and collaborate

Carrier annually discloses progress toward our
climate change goals to hold ourselves accountable
and inform stakeholders, including our customers
and shareowners. We actively engage with industry
associations and regulators who develop codes andstandards that facilitate broader adoption of energyefficient and lower GWP technologies.

Influence

Scope 1

• Stationary combustion• Mobile combustion• Fugitive emissions

Implement and embed• Prioritize lower embodied• Eliminate fugitive• Facilitate sustainable• Convert fleet to alternative-• Reduce operational waste• Optimize logistics• Secure on-site and purchased

employee commuting

SCOPE 1
0.07%
SCOPE 2location-based
0.07%
SCOPE 399.86%• Use of sold products

Scope 2• Implement energy-efficiency

carbon materials

DOWNSTREAMSCOPE 3• Purchased electricity• Purchased steam• Engage key suppliers onsustainability

Transparency & Engagement

OPERATIONSSCOPE 1 + SCOPE 2

programs and solutions

Innovate and disrupt• Invest in and deliver lowcarbon, energy-efficienttechnologies

refrigerant emissions• Transition to lower GWP

fuel vehicles• Optimize building performancerenewable energy

and natural refrigerants

and cold chains throughdigital solutions• Expand service and circular
economy business models

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Advancing Toward 1 Gigaton

Governance

ESG Indices

Carrier 2023 ESG Report

11

Sustainable Investments
GRI 3-3

We set an ambitious goal to help our customers avoid more than 1 gigaton of GHG emissions from theircarbon footprint by 2030.

How We Are Progressing Toward Our Gigaton Goal
• Investing over $2 billion to develop healthy, safe, sustainable and intelligent building and cold chain
solutions that incorporate sustainable design principles and reduce lifecycle impacts.

• Delivering a portfolio of efficient, innovative products that minimize customer energy use andemissions, supporting net-zero ambitions.

• Facilitating the transition to renewable energy through electrification.
• Using lower GWP refrigerants, in addition to our natural refrigerant technologies, to reduce the GHG
footprint of our products while in use.

• Expanding our aftermarket and digital solutions that use artificial intelligence (AI)- and Internet ofThings (IoT)-enabled data insights and performance monitoring to help customers reduce their energy use.

• Extending sustainable cold chains through the adoption of our technologies that reduce food loss.

Since 2020, our high-efficiency and lower GWP refrigerant products have enabled customers to
avoid more than 212 million metric tons of GHG emissions, which is equal to the annual energy
use of nearly 27 million U.S. homes. Learn more about our methodology and progress atcorporate.carrier.com/gigaton-goal.

Research & Development
Our key strategic innovation and technology focus areas support Carrier’s position as a leader in intelligent
climate and energy solutions. We are developing more connected and sustainable solutions, including newofferings on our Abound and Lynx platforms.
In addition, the acquisition of Toshiba Carrier Corp. advances our product development in the heat pumpsegment. Our latest energy-efficient HVAC solutions and refrigeration systems use refrigerants with lower
GWP and leverage digital capabilities to improve sustainable outcomes. Carrier is also shifting to electricbuilding and cold chain technologies, while providing customers with more data about the health and safetyof their homes through advanced sensing capabilities and mobile connectivity.
In 2022, for the eighth year in a row, Carrier released more than 100 new products. We also have more than
9,000 active patents and pending patent applications worldwide combined. In the last three years, we haveinvested over $1.4 billion in research and development.
We opened our first Carrier i3 Lab, an innovation incubator, to ignite the development of disruptive,
breakthrough technologies and empower Carrier teams to develop, test and learn quickly. Collectively led
by our Digital, Engineering and Strategy teams, Carrier i3 Labs enable us to capture aggressive growth
opportunities and accelerate our ability to identify and drive significant growth.

We committed to spend

We have invested

on developing SUSTAINABLE
SOLUTIONS by 2030

toward SUSTAINABLE PRODUCTDEVELOPMENT since 2020

$2B+

$730M+

Table of Contents

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Innovation & Solutions

Operations

PeopleCommunities

Governance

Carrier 2023 ESG Report

ESG IndicesSustainable Product Design

Environmental Transparency

GRI 417-1 | SASB RT-EE-440a.1

GRI 417-1

Design plays a critical role in determining the environmental impact of our products and solutions. Our design process relies on a thoroughunderstanding of the use, performance and longevity of our products. We design with the product lifecycle in mind. We also continuously improve
our tools and develop advanced methods to design sustainable products that improve quality and safety and reduce time to market. We pursue newcapabilities in systems engineering, sensing and power electronics management to create electric solutions that reduce the environmental footprintof our products while improving the health, safety and well-being of our customers.

Environmental product declarations can help customers makeinformed purchasing decisions. The declarations focus on GHG
emissions, energy use, water consumption and material content.
Carrier provides sustainability and product transparency by adopting
an ISO 14025 (Environmental Labels and Declarations) compliant
approach to lifecycle assessment within our product offerings.

We use model-based systems to optimize our product designs, material use and packaging to achieve the smallest possible material footprint while
maintaining performance. Our design tools allow us to determine and compare system and material changes in an agile manner, leading to moreinnovative and sustainable products and more cost-effective solutions for our customers.
We have three main strategic focus areas for sustainable design, including sustainable material choices, sustainable design and manufacturing,and the reuse and recycling of materials.

Sustainable
Material Choices• Eliminate materials of concern(e.g., radioactive, explosive, highly
flammable, hazardous or toxic)• Eliminate refrigerants with high GWP• Use packaging made of 100% recyclable orrenewable materials

Sustainable Designand Manufacturing• Reduce or eliminate fossil fuel use throughelectrification, alternative combustion fuelusage or hydrogen• Reclaim refrigerants• Reduce the total mass or volume of materials(e.g., equipment, packaging)• Increase energy efficiency of a productor embed it into a more efficient system,
building or application that reduces the totalenergy required• Enable connected solutions for repair andmaintenance (e.g., Abound, Lynx)• Extend product lifecycle through design
for service• Rent and lease equipment

Reuse and Recyclingof Materials• Refurbish equipment(e.g., compressors, motors)• Provide cooling as a service, reducing

equipment and maximizing efficiencies• Implement takeback and recycling programs• Partner with suppliers on packaging
material returns

Our European Commercial HVAC business created certified
Product Environmental Profiles (PEPs) that quantify environmental
information on the lifecycle of products sold. By the end of 2022,
the team completed 18 PEPs and is on track to create certification
profiles by the end of 2023 for 100% of the products that use lower
GWP refrigerants.

12

Innovation & Solutions

Carrier Ventures
Carrier Ventures forms strategic partnerships with high-growthcompanies to accelerate the development of sustainable
innovations and disruptive technologies for building and cold
chain net-zero solutions.

Sustainable
Innovations

We focus on growth areas of electrification,energy management, and residential and lightcommercial HVAC technologies.

Strategic
Collaboration

We value strategic partnerships that enhance
our research and development expertise andour channel to market or that become a partof our product offerings.

Disruptive
Technologies

Commitment
to Excellence

We prioritize software and analytics,
and telematics.

We seek out companies that share ourcore values of respect, integrity, inclusion,
innovation and excellence.

Operations

PeopleCommunities

Governance

ESG Indices

Carrier aims to reduce our customers’ carbon footprint by more than 1 gigaton by 2030 in part through a tailored approach for specifying andcommissioning equipment, and providing assessment services based on each customer’s sustainability, operational and budgetary goals. We offer
building and cold chain customers within the product lifecycle and capital planning process both expertise and solutions to design, enable anddeliver improved sustainability.

DesignEnableDeliverlead with design andassessment expertiseefficiencies throughsustainable solutions

recurring value via
service and monitoring• Net-zero carbon consulting• Energy and GHG analysis• Energy audits andretro-commissioning• Abound and Lynx platforms• High-efficiency and lower GWP
residential HVAC systems• Electric building and cold
chain technologies

Carrier invested in several companies, including Transaera, which isdeveloping a new class of affordable, energy-efficient, sustainablecooling systems. Transaera’s novel desiccant technology uses a uniquesponge-like material that uses moisture in the atmosphere to enable
its air conditioner to cool air more efficiently. The heat generated by
the air conditioner is then used – instead of being wasted – to dry thematerial for the next cycle. Transaera and Carrier intend to use thistechnology to develop ultra-efficient climate systems.

Carrier 2023 ESG Report

Sustainable Solutions

Approach

Introduction

Solutions

Table of Contents• P redictive analytics andremote intervention• S ervice engineering• E nergy, water and GHG
measuring, tracking and reporting

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DesignCarrier offers portfolio energy monitoring and building assessments and sustainability services.
Our NORESCO business helps clients adapt to and mitigate the impacts of climate change by decarbonizing,
modernizing and electrifying aging infrastructure to be more sustainable and resilient. By deploying innovative
distributed energy, storage and renewable energy solutions, NORESCO improves the health and efficiencyof existing campuses, buildings and communities. The city of Fullerton, California, selected NORESCO
to implement an energy-efficiency project that will reduce the city’s carbon footprint and enable criticalinfrastructure upgrades. The decarbonization project is guaranteed to save the city more than $12 million.
In addition to other energy conservation measures, it includes replacing existing HVAC systems with two
high-efficiency Carrier chillers. Fullerton expects to reduce its annual GHG emissions by the equivalent ofplanting more than 1,300 acres of trees. To date, NORESCO has guaranteed more than $5 billion in energy
and operating cost savings at more than 10,000 facilities while reducing customer carbon dioxide (CO2)emissions by more than 25 million metric tons – the equivalent of planting 1.4 million acres of forest.
Our Environmental Market Solutions Inc. (EMSI) business provides sustainable building design solutions
along with economic and technical feasibility assessments. Sustainable design assessments can include thebuilding interior, exterior walls, enclosure structures, and mechanical and electrical systems. EMSI helps
customers optimize resource use while leveraging biophilic design and natural, local materials to reducebuilding energy consumption and carbon emissions. EMSI helped Taikoo Li Qiantan become the world’s first
shopping mall to earn the WELL Core certification at the Platinum level from the International WELL Building
Institute, achieving more than 100 performance metrics, design strategies and policies. EMSI also helped thisproject earn Leadership in Energy and Environmental Design Gold Certification and China’s Green Building
Evaluation Label Two Star Certification.

EnableCarrier develops solutions and technologies that reduce energy consumption and GHG emissions of our
products in use. We actively engage with regulatory authorities, trade associations and other stakeholders
around the world, working collaboratively to pursue and implement industrywide policies and initiatives thatdrive sustainability by promoting greater energy efficiency and lower GHG emissions. We invest in energyefficient technologies and solutions to assist our customers in lowering energy demand and associated
GHG emissions.

Governance

ESG Indices

Carrier 2023 ESG Report

14

Energy Efficiency
GRI 302-5

Carrier launched a robust suite of residential heating and cooling solutions well in advance of upcoming
regulatory changes. The new, sustainable innovations are compliant with 2023 U.S. Department of Energy
minimum efficiency and test procedure requirements. They include a lineup of single-stage and two-stage
air conditioners and heat pumps, evaporator coils and fan coils that improve the efficiency and serviceabilityof HVAC systems and residential packaged products. In addition, Carrier launched light commercial productsthat improve performance and efficiency. To ensure a seamless transition to the 2023-ready solutions,
Carrier provided comprehensive training and held large-scale events to educate distributors and dealers.
In 2022, Carrier unveiled the Vector HE 17 temperature-controlled trailer unit. It uses Carrier’s pioneering
all-electric E-Drive technology, removing the need for the mechanical transmissions found in belt-driven
refrigeration systems and converting engine power into electricity to drive the unit. Combined with the newvariable frequency drive management that continuously alters the motor speed to match the air demand, theunit delivers greater efficiency, reduces the risk of refrigerant leaks and significantly lowers fuel consumption.

Healthy Indoor Environments
We provide solutions that inspire confidence in indoor spaces by optimizing them for human health,productivity, safety, security and sustainability. We leverage our expertise and innovative solutions to create
healthy indoor environments in buildings around the world.
Carrier’s healthy building solutions include ventilation and filtration technologies, controls, touchless products
and more. Indoor air quality assessments, ongoing monitoring and service offerings inform building owners ofopportunities to mitigate potential issues and achieve peak performance and efficiency.

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Carrier 2023 ESG Report

15

Electrification and Alternative Fuels

Refrigerants

The transition to electrification is increasing the adoption of heat pump technology in the HVAC industry.
Heat pumps are versatile in creating indoor comfort, providing heat in winter and air conditioning in summer.
We strengthened our position in the fast-growing variable refrigerant flow and heat pump market segmentsby acquiring Toshiba Carrier Corp. The acquisition presents significant opportunities for Carrier to drive
growth through energy-efficient residential and light commercial solutions. Combined with Carrier’s existing
partnerships, the acquisition strengthens our portfolio of innovative, environmentally responsible solutions
with a broader range of highly efficient, all-electric products, positioning Carrier to lead the world’s heating
and cooling sustainability transformation.

Carrier focuses on delivering the right refrigerant for each application. The right refrigerant varies bycustomer and geography due to specific country or regional requirements. Where technically feasible, wedeliver natural or very low GWP refrigerant solutions (GWP <150) and evaluate options to expand our offeringof ultra-low GWP solutions (GWP <30). Carrier has products available today to meet the demand for lower
GWP solutions, including the sustainable, ultra-low GWP refrigerant solutions of the CO2OLtec, NaturaLINE,
PUREtec, AquaEdge and AquaForce product families.

Our Refrigeration businesses are helping facilitate the transition
to renewable energy through electrification, while innovating
sustainable and intelligent solutions and services. Carrier offers
an electric product for all vehicle types and sizes, from vans andlight commercial vehicles to trucks and trailers.

• Carrier has identified R-454B, known commercially as Puron Advance, as the primary lower GWP• PUREtec hydrofluoroolefin (HFO) refrigerants such as R-1233zd(E) with a GWP of less than 1 are
Carrier’s solution for centrifugal chillers used in HVAC globally. PUREtec HFO refrigerants such as
R-1234ze(E) are Carrier’s solution for screw chillers in Europe. HFO/HFC refrigerant blends like R-513A
are alternative Carrier solutions for selected centrifugal and screw chillers used in North America.

solution to replace R-410A in our ducted residential and light commercial packaged solutions sold in
North America. In 2022, Carrier selected R-454B as the optimum solution for use in rooftop applications
across Europe. R-454B has a GWP that is 78% lower than the GWP of R-410A.

• We have identified R-32 as our primary lower GWP solution to replace R-410A in scroll chillers.
This is expected to result in an 80% reduction in the refrigerant GHG footprint relative to R-410A units.

• CO2 is Carrier’s preferred natural refrigerant solution for transport and commercial refrigeration.

A safe and non-ozone-depleting gas, CO2 has a GWP of 1 and good energy efficiency. Carrier has pioneered
the use of CO2 in applications such as supermarket refrigeration and marine container refrigeration tosustainably extend the world’s food supply.

The new Pulsor eCool unit is designed for the ever-growing electric light commercial vehicle market.
It operates through a direct connection to the high direct current voltage of the main vehicle batteries,
removing the need for an additional converter or battery pack. This cost-effective plug-and-playdesign communicates in real time with vehicle data to ensure optimal temperature control and battery
performance, making it the ideal solution for last-mile delivery and electrification.

In 2022, Carrier added five new higher-capacity models to the AquaForce Vision 30KAV liquid chiller range
using hydrofluoroolefin refrigerant R-1234ze(E). The chillers are based on variable-speed screw compressors
designed to deliver outstanding energy efficiency and environmental performance, plus quick and easy
installation and servicing. All chillers in the range are designed to exceed European Ecodesign requirements
for efficiency and operating sound levels. The use of ultra-low GWP refrigerant R-1234ze(E) with a reduced
charge ensures low direct carbon-equivalent emissions. By closely matching compressor speed to coolingload and optimizing chiller performance, it reduces energy use and helps minimize indirect emissions.

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Deliver
Aftermarket
Carrier delivers solutions to our customers across the entire product lifecycle. Our comprehensive
aftermarket solutions include remote monitoring and diagnostics, predictive maintenance, spare parts,
repairs, modifications and upgrades, rentals and other cutting-edge digital services.
For the second year in a row, Carrier achieved double-digit parts and service growth in 2022, a testament to
the positive response from our customers. Our differentiated and digitally enabled lifecycle solutions, such as
Abound and Lynx, are accelerating our recurring revenues.
EcoEnergy Insights, part of the Carrier portfolio and a leading provider of AI- and IoT-enabled solutions andservices, surpassed 5 billion kilowatt-hours of energy savings for clients worldwide in 2023. This is equivalent
to the amount of GHG emissions from more than 788,5001 gas-powered passenger vehicles driven over a oneyear period.
At a time of energy cost increases, Carrier introduced an Energy Optimization Program in Europe to help
deliver sustainable savings to businesses with small commercial refrigeration applications up through large
industrial installations. Carrier offers on-site energy evaluations to provide custom recommendations on
how to reduce energy consumption through retrofits, modifications and energy-saving solutions. Carrier’s
ready-to-install products can help customers lower their energy usage by as much as 40% and reduce theircarbon footprint.2
The BluEdge service program is Carrier’s best-in-class service
and aftermarket offering. It uses analytics to decipher data,
extract insights and implement solutions before issues arise. We
expanded BluEdge service coverage in all business segments andincreased HVAC parts sales through our e-commerce platform.
Our commercial HVAC business has approximately 70,000 chillers under BluEdge service contracts.
Nearly 20,000 Carrier chillers are connected, enabling real-time monitoring and remote services from ourglobal network of command centers, engineers and data scientists. Similarly, our truck trailer, commercial
refrigeration and industrial fire businesses offer an extensive range of BluEdge service agreements to help
customers optimize equipment performance. The program features a tiered service model with coverage that
includes regular maintenance at the basic tier to more comprehensive and digitally enabled coverage that
also includes repairs, parts and labor.
1

U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator.
Depending on the cabinet model and/or mechanical system, as well as optional equipment selected during configuration and different environmental conditions,the energy saving potential for the cabinet and/or mechanical system being used may deviate. The values given are comparisons between the operation of thecabinets and/or mechanical systems without and with the additional services offered through the Carrier Energy Optimization Program (referred to as “Energy
Savings Solutions”).

2Governance

ESG Indices

Carrier 2023 ESG Report

16

Digital Technologies
Connected platforms, integrated solutions and value-added services are powering Carrier’s transition froman equipment manufacturer to a provider of digitally enabled lifecycle solutions. We combine our hardware
solutions with software, data and artificial intelligence to create smarter buildings and homes and a moreconnected cold chain. Carrier solutions, such as Abound and Lynx, enable real-time insights that drive
positive, healthy and sustainable outcomes for customers. Our innovative, cloud-based platforms make
Carrier an integral part of customer ecosystems, driving recurring revenue opportunities.
Our Abound suite of digital solutions unlocks actionable insights aboutindoor air quality, energy usage and carbon emissions, helping customers
meet their sustainability and operations goals. We also help customers
reduce their total cost of ownership through an expanded Abound offering that enables smarter, morepredictive maintenance to optimize HVAC equipment health and performance.
In addition, Carrier’s Abound Net Zero Management is a new digitally enabled lifecycle sustainability solutionthat provides building owners and managers a way to measure, track, view and report energy and carbon
performance to help meet ESG goals. The solution tracks and analyzes energy performance in an individual
building and across multiple sites, and it benchmarks against a portfolio of buildings. Customers can identify
underperforming equipment or buildings, prioritize specific energy and carbon reduction measures, fix
operational issues such as inefficient scheduling, and institute new energy and carbon reduction initiatives.
Lynx, our cloud-based digital offering powered by Amazon Web Services
and other collaborators, allows customers to leverage data to improve theeffectiveness and sustainability of their supply chains. By enhancing visibility,
resiliency, agility and efficiency in the cold chain, Lynx helps reduce loss andsupports real-time decisions, ensuring foods and vital medications safely reach people around the world.
Carrier’s Lynx Fleet digital platform provides comprehensive monitoring capabilities for refrigerated trucks
and trailers. The solution integrates transportation and warehouse management systems, provides anintuitive interface to access data and helps optimize fleets to decrease fuel consumption, carbon dioxide
emissions and food loss. Lynx Fleet has enhanced dashboards that allow fleet managers to easily monitor
transport refrigeration equipment usage, improve operational efficiencies and maximize uptime.

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Circular Business Models
GRI 306-2 | SASB RT-IG-440b.1

Carrier has developed programs to support equipment reuse and responsible takeback and recycling.

As a Service

Carrier Rental Systems is a leading provider of specialized cooling,heating, dehumidification and power generation rental equipment.
We provide customers with cost-effective and energy-efficient solutions
to supplement existing equipment during seasonal business cycles,planned shutdowns and emergency events.

End of Useful LifeManagement

Carrier helps customers with their end of useful life refrigerant
management, supporting their environmental strategies. Our BluEdge
service offering includes responsible refrigerant management, withreclamation and decommissioning processes in place. Appropriate
refrigerant management helps to ensure that these chemicals do notescape into the environment. Carrier offers refrigerant conversion to retrofit
existing equipment with alternative refrigerants that are readily available,
cost effective and environmentally preferred.

Product Takeback

The Sensitech Device Takeback Program promotes the return of time andtemperature data collection instruments for renewal and reuse to keep themout of landfills. Since 2021, we have reclaimed over 4.7 million devices.

Recyclability

Carrier was awarded recyclability accreditation for the PrimeLINE andNaturaLINE refrigeration units by Underwriters Laboratories Inc. (UL). These
units are the only transport container refrigeration units in the industry toachieve this prestigious sustainability validation. This accreditation validates
the recyclability of PrimeLINE and NaturaLINE refrigeration units at 93% and95%, respectively, per UL Environmental Claim Validation Procedure 2789.

Governance

Carrier 2023 ESG Report

ESG Indices17

Product Responsibility
GRI 3-3

Carrier’s proactive product integrity programs help ensure that the quality and safety of the products andservices we provide meet or exceed customer and regulatory requirements.

Product Safety
GRI 416-1 | SASB RT-EE-250a.2

Our Product Integrity Policy establishes governance and coordination within and among our businesssegments to ensure the quality and safety of the products and services we provide. Our product safety
program focuses on:
Proactive risk prevention during
product development safety
reviews to ensure that compliance,
quality and safety meet or exceed
certification requirements.

Preventing product and process
safety defects during production
by implementing monitoring andcontrol plans.

Rapid and effective mitigationof potential product safety risks
identified in the field.

The Carrier Product and Services Safety Council is responsible for the prompt identification, investigation andresolution of potential product safety issues and reviews all specific customer or regulatory communications
prior to release. The Carrier Product Safety Board, composed of our Chairman & Chief Executive Officer
and key direct reports, is responsible for overall implementation of the Carrier product safety program. The
Governance Committee of our Board of Directors oversees program progress.
Each business segment is expected to implement our corporate Product Integrity Policy by:
Appointing a Product Safety
Officer to manage oversightof product safety issues andestablish proactive measures.

Establishing a Product Safety
Council to review productsafety issues and oversee
implementation of the ProductIntegrity Policy.

 xercising responsibility forE
incident identification, reporting,investigation and timely
resolution while fostering
an effective safety culture.

Product safety training includes information on when and how to report potential or actual product safety
events. It is required for employees identified as critical participants in the incident escalation process.
Employees receive additional product safety training based on their roles.

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Governance

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Carrier 2023 ESG Report

18

Continuous Improvement

Our Quality Management System governs product quality policies andprograms, setting standards, processes and metrics to help ensure
the integrity of our products along their lifecycle. We regularly review
data, lessons learned and best practices, deploying process and policy
enhancements to continuously improve quality across Carrier sites.

95%
of Carrier manufacturing
sites are ISO 9001:2015
certified

Carrier’s Internal Audit team assesses product safety culture and awareness in selected business segmentsites at least three times a year. The Carrier Product Safety Board, chaired by our Chairman & Chief Executive
Officer, meets at least once annually to review business segment performance, company-level performanceand program health indicators. We also perform rigorous internal quality management audits to drive quality
across our manufacturing facilities.

Product Cybersecurity
Product
Development• New products go througha gated process, ensuringcross-functional teams are
involved from concept tocommercialization.

• Products are released when
specified safety, verification
and reliability testing iscompleted.

• Products are approved byan internal review board
consisting of executive
leadership from engineering;
operations; quality; productsafety; and environment,
health and safety.

Manufacturing
and Production• Our factories undergo an
in-depth quality assessment
to ensure compliancewith our standards, alongwith product quality
and integrity.

• We track product quality
results and set annual
goals across the entire
value stream.

Customer Use
and Aftermarket• We monitor products
after they are delivered
to customers by reviewing
warranty data andcustomer feedback.

• Quality managers regularly
review claims data so we canquickly react to field issues
and customer feedback.

In accordance with our Product Cybersecurity Policy, Carrier products and services are subject to robust
secure-development and process-control requirements. Carrier’s Dynamic Secure Development Lifecycle
Support process enables compliance with respected international cybersecurity standards, such as IEC/ISA/ANSI 62443 and NIST 800-53.
Our goal is to ensure the following strategic outcomes for our offerings:• Products and services that are secure by design.
• Standards-based cybersecurity governance and compliance.
• Persistent vigilance and continuous improvement.
• Customer mission success.
Carrier’s Global Product Cybersecurity team supports and delivers on the strategic, production,
operational and commercial cybersecurity-related demands of our stakeholders in three areas: secure
product development, product cyber operations and cyber commercial innovation.
Our Dynamic Secure Development Lifecycle Support process earned cybersecurity certifications by meansof independent audit, after meeting the requirements for ANSI/ISA-62443-4-1:2018 and IEC 62443-4-1-2018
in 2022. As a result of the work achieved in creating this new process, Carrier’s Global Product Cybersecurity
Program was named a 2022 CSO50 award winner.
In addition, Carrier is a CVE Numbering Authority, a program sponsored by the U.S. Department of Homeland
Security through the Cybersecurity and Infrastructure Security Agency.

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Customer Experience & Satisfaction
At Carrier, we have a passion for customers – we win when they win. Listening to our customers and acting
quickly to meet their needs is part of The Carrier Way, and we aim to create loyalty through best-in-classcustomer experiences.
We have a simplified and standardized approach to managing customer feedback using the Net Promoter
Score. It asks customers how likely they are to recommend our brands. Real-time responses lead to powerful
and actionable insights, helping us identify customer needs while reinforcing behaviors that help turncustomers into advocates of our products and services. Feedback is made visible to employees who receive
training and tools to help understand the voice of the customer. Surveys have allowed us to identify andengage with thousands of customers, greatly improving the customer experience.
As part of this process and technology investment, our Carrier-wide Customer Experience Center of
Excellence partners with Carrier businesses to use the Net Promoter Score methodology across thecompany, improve customer data quality and response rates, take action on the analytics and insights
collected from the surveys, and maximize customer retention and business growth.

TEST

ADAPT

Governance

ESG Indices

Carrier 2023 ESG Report19

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Carrier 2023 ESG Report20

Operations
Carrier incorporates sustainable practices throughout
our global operations to reduce greenhouse gas (GHG)
emissions, energy consumption, water withdrawal andwaste generation.

Operational Excellence . . . . . . . . . . . . . . . 21
Environment, Health& Safety Management . . . . . . . . . . . . . . . 22
Energy & Operational
Carbon Footprint . . . . . . . . . . . . . . . . . . . . . 23
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Health & Safety . . . . . . . . . . . . . . . . . . . . . 26
Responsible Supply Chains . . . . . . . . . . . 28

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Operational Excellence
The pillars of Carrier Excellence are culture, competency
and tools:

Carrier Excellence is our continuous improvement framework thatdrives operational excellence across the company, enhances customer
experiences, enables growth and engages employees in problemsolving to achieve breakthrough performance results. Transforming
and maintaining our world-class culture requires focus on bothbehavior and results.
Carrier Excellence keeps us focused on delivering outstanding
performance by:• Enhancing the customer experience.
• Driving value to our shareowners.
• Delivering best-in-class performance.
• Engaging employees to continuously improve our processes.
• Innovating sustainable solutions for the future.

Culture: Carrier Excellence creates a culture where
opportunities for improvement are valued, enabling us to focus
on delivering outstanding performance for our customers.
Competency: The Carrier Excellence Certification Programprovides a framework for continuous employee learning to help
achieve better results across the enterprise.
Tools: Carrier Excellence tools are methods for managing andimproving processes, eliminating waste, identifying and resolving
problems, and managing critical decisions and project execution.

Carrier 2023 ESG Report21

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Environment, Health &Safety Management

Operations

PeopleCommunities

GRI 302-1, 302-3, 303-3, 305-1, 305-2, 305-4, 305-5, 306-3, 306-4, 306-5

GHG Emissions

The health and safety of our employees is the top priority across ouroperations. Carrier’s Environment, Health & Safety (EH&S) Operating
System and EH&S programs help protect our people, stakeholders
and the environment. The system governs all Carrier employees andcontractors across manufacturing, service and office locations. EH&S
governance begins at the site level up through the Board of Directors.
We implement our EH&S Policy through our EH&S Operating System,
which provides a continuous improvement framework grounded in
integrated planning and performance measurement. Carrier uses athird-party software provider to capture data across our facilities andservice locations. This data helps us track, monitor and assess our
EH&S metrics, including GHG emissions, energy, water, waste, andhealth and safety.

Scope 1 and 2 operationalemissions represent electricity
and fuel use across ourglobal operations and fugitive
refrigerant emissions.

• Management responsibility and Board-level EH&S oversight.
• Integrating EH&S management across the enterprise.
• Compliance with relevant EH&S regulatory requirements in the

EnergyWe use electricity andfuel to operate our global
business, including productmanufacturing and service.

Water

Absolute GHG Emissions (tCO2e)
Scope 12020

GHG Intensity(tCO2e/million USD in net sales)

Scope 2 location-based

186,812

196,033

2021

229,9732022

187,559

187,630
178,786

Total Energy Consumption (GJ)
4,194,215

2020

4,754,278

2021

Water Withdrawal (ML)
3,885

2020

Waste & Recycling

Total Waste (metric tons)

3,391

2021

3,023

2022

measurement, corrective action monitoring and metrics reporting.

• Best practice sharing on EH&S topics and issues.
• Employee training and engagement.
• Industry-leading processes and practices.
1

2020 and 2021 data includes Chubb (divested). 2022 environmental and revenue data includes Giwee(acquired in 2021) and excludes acquisitions completed in 2022, such as Toshiba Carrier Corp.

Our waste primarily includes
metal, wood, paper and glass.
To reduce waste, we recycle,
reuse and recover materials.

Diverted

20.3

2021

18.7

2022

Energy Intensity(GJ of energy/million USD in net sales)
240

2020

2022

Carrier uses water across
our operations primarily
for heating, cooling andmanufacturing purposes.

21.9

2020

231

2021

3,571,911

2022

locations we operate.

• A formalized EH&S risk management process.
• Data and document management, including performance

22

Carrier 2023 ESG Report

ESG Indices

Operational Performance Highlights1

GRI 3-3, 403-1, 403-8

The EH&S Operating System structure is aligned with ISO 14001 andISO 45001 management system standards and follows the Plan-DoCheck-Act cycle. Our EH&S organization, governance and performance
expectations include:

GovernanceDisposal

2020

59,626

6,612

2021

60,405

7,638

2022

64,4298,132

182

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Governance

Energy & Operational Carbon Footprint

Our carbon neutrality strategy has three focus areas:1) R educing emissions through energy efficiency, refrigerant
management and electrification.

2) Expanding renewable energy consumption.
3) A ddressing remaining unabated emissions through carbon offsets,prioritizing carbon removal and sequestration.
With a continuous improvement mindset, we are working to reduce
our absolute GHG emissions through capital and operational
investments as well as renewable energy. In 2022, our Scope 1 and 2
operational GHG emissions decreased by 51,258 metric tons of carbon
dioxide equivalent (tCO2e) compared with 2021, primarily due to thedivestiture of Chubb. Our overall emissions intensity decreased by 8%compared with 2021, demonstrating progress toward our emissionreduction goals.
We decreased energy consumption by 25% since 2021, a reduction of
approximately 1.2 million gigajoules (GJ). The corresponding 21%
decrease in energy intensity demonstrates progress in our ongoingenergy-efficiency efforts across our manufacturing sites.

23

Energy & GHG Management
GRI 302-3, 302-4 | SASB RT-EE-130a.1, RT-IG-130a.1

GRI 302-1, 302-3, 302-4, 305-1, 305-2, 305-4, 305-5

Our goal to achieve carbon neutral operations by 2030 builds on ourlegacy of implementing targeted reduction programs across ourglobal facilities. Our Scope 1 and 2 GHG emissions are attributableto electricity and fuel consumption across our operations, including
factories, offices, fleet vehicles and fugitive refrigerant emissions
within manufacturing.

Carrier 2023 ESG Report

ESG Indices2022 Operational Energy Consumption~3.6M
GJ OF ENERGY consumed 				

~44%of our total energy consumption camefrom ELECTRICITY

Carrier committed to reducing energy intensity by 10% across ouroperations by 2030, supporting our operational carbon neutrality goal.
We reduce energy consumption through conservation and efficiency
initiatives tailored to specific facility conditions and energy use
patterns. Informed by regular energy audits, our sites are required
to review, select and implement best management practices toachieve energy and GHG emission reductions, including:• Making building retrofit improvements to reduce heating andcooling needs.

• Executing responsible refrigerant management in production andtesting processes.

• Using electric load management to reduce energy needs during
peak times.

~56%
of our total energy consumption camefrom ON-SITE FUEL COMBUSTION and
VEHICLE FUEL use~21%
REDUCTION IN ENERGY INTENSITY 		
compared with 2021

•Installing energy-efficient lighting fixtures and monitors.
•Identifying and fixing compressed air system leaks.
•Implementing “shut-it-off” programs to reduce equipment energy
use when not in operation.

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Carrier 2023 ESG Report

ESG Indices24

In 2022, we implemented several initiatives to support our carbon neutrality and energy intensity targets:

Renewables

Energy Audits: We partnered with our NORESCO business to conduct energy audits across our largest
energy-consuming sites, including Athens, Georgia; Collierville, Tennessee; Indianapolis, Indiana; Monterrey,
Mexico; and Syracuse, New York. Across the globe, we completed 22 energy audits and identified energyefficiency and GHG-reduction projects supporting our carbon neutrality strategy.

Our renewable energy strategy includes on-site installations, direct procurement and renewable energy
credits (RECs). We assess renewable energy opportunities, starting with our global manufacturing
and research and development centers. In 2022, we installed a solar array system at our research anddevelopment campus in Shanghai that is expected to account for approximately 25% of the site’s annual
electricity consumption. Additionally, Carrier purchased 134,000 megawatt-hours of Green-e certified RECs,
generated from U.S. wind farms. Our Scope 2 market-based GHG emissions decreased by 49,698 tCO2e, a
25% reduction in 2022 compared with 2021, primarily due to the purchase of renewable energy.

Energy Efficiency: We piloted an initiative to address compressed air leakage points within our Monterrey,
Mexico, campus. The pilot is expected to save energy and reduce emissions by approximately 900 tCO2e
annually. We are expanding the initiative globally based on the successful implementation of this pilot.
We also installed heat recovery equipment within the paint shop process at our Myto, Czech Republic, facility
that enabled us to repurpose waste heat to heat potable water. This is expected to reduce annual emissions
at the site by approximately 1,000 tCO2e. We are assessing comparable retrofits across our global facilities
with similar waste heat operations.

Carrier Off-Site Renewable Energy Sources

Energy Conservation: Our companywide “shut-it-off” programs focus on shutting off office and facility
equipment when not in use to conserve energy. For example, our GST facility in China implemented energysaving measures, including turning off the lights for an hour a day during break time and turning off lighting
in well-lit areas. In five months, these efforts resulted in a total energy savings of more than 63,000 kilowatthours, the GHG emissions equivalent of approximately 40 tCO2e.
Fleet Decarbonization: Vehicle fleet emissions make up 27% of our overall Scope 1 emissions. With this inmind, we launched a fleet decarbonization plan, focused on converting to hybrid vehicles, piloting electricvehicle fleets, implementing a global fleet-tracking program and incorporating incentive programs.
Refrigerant Management: Within manufacturing, refrigerant leakage accounts for 36% of our overall Scope
1 GHG emissions. Carrier continues to mitigate refrigerant leak emissions through operational improvements
and the transition to low global warming potential (GWP) refrigerants. In China, our Giwee manufacturingsite, which was acquired in 2021, had refrigerant leaks in its manufacturing and testing processes. Since theacquisition, Carrier implemented a leakage improvement project, and we installed a refrigerant recovery andrecycling system at the site that is expected to significantly reduce refrigerant leak emissions.

FacilityType

2022 Production (MWh)Bull Creek WindWind

42,845

Notrees Windpower

Wind

2,336

Pyron Wind Farm LLC

Wind

5,288

Silver Star 1 Wind Power ProjectWind

50,158Sunray Wind I

Wind

33,373

Carbon Offsets
Carrier prioritizes absolute GHG emission reductions across our value chain to achieve our carbon
neutrality and net-zero targets. We acknowledge, however, that carbon offsets are a necessary lever inour decarbonization journey. In 2022, we purchased 60,000 metric tons of carbon dioxide offsets from avoluntary nitrous oxide abatement project in North America.
In addition, Carrier has become an early investor and limited partner in the recently launched Climate
Asset Management – Nature Based Carbon Fund, targeting independently validated projects to reduce or
avoid the release of GHG emissions into the atmosphere. The projects focus on nature-based solutions
in developing economies that aim to deliver biodiversity improvements at scale for climate resilience andcommunity benefits.

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ESG Indices

Water
GRI 303-1, 303-2, 303-3, 303-4, 303-5

Our 2030 water neutrality goal prioritizes water-scarce locations with the intent of preserving watersheds inour local communities as well as supporting climate adaptation and resiliency. Sites are required to conduct
a water balance assessment and evaluate and document all regulatory requirements to inform their sitewastewater management plan. We use a third-party software platform to ensure compliance and monitor
water purchases, withdrawals and discharges.

Operational Water Withdrawal and Intensity1
Withdrawal (ML)Intensity (ML/million USD)

3,885
.22

The primary drivers of water withdrawals across our global operations are heating, cooling andmanufacturing. To reduce consumption and promote conservation, our sites have specific water targets
aligned with their water balance assessments and water-scarcity designations. As part of our EH&S
Operating System, sites are also required to implement best management practices, including leakmanagement, flow meters, low-flow fixtures, process water recycling and landscaping plans that minimize
water use. Additionally, sites are responsible for managing and monitoring both treated and untreatedwastewater discharges or effluents in accordance with local regulations.

.16

In 2022, Carrier’s total water consumption increased by 166 megaliters (ML), while water withdrawal
decreased by 368 ML, a reduction of 11% compared with 2021.
Carrier’s exposure to water risks varies by region and type of facility. Informed by the World Resources
Institute Aqueduct Water Risk Atlas tool, we assess and prioritize sites in water-stressed areas across ourglobal operations. We identified 14 locations that fall within the high-risk category for water stress. In total,
these sites withdrew nearly 269 ML of water in 2022, accounting for 9% of our global total.
In 2022, Carrier’s Navojoa facility, located in a water-scarce area in Mexico, reduced water usage byapproximately 1.36 ML or 359,000 gallons, an 11.5% reduction compared with the previous year. To reduce
the reliance on local water utilities despite operational growth, the facility redirected treated greywater torestroom facilities and to use for irrigation in local crop gardens.

2020

In 2022, we updated our calculation methodology for water consumption and replenishment to align with industry best practices. Water totals now include
once-through non-contact water, which is used as process water to remove heat and has not come into contact with any raw material, intermediate product,
waste product or finished product.

2021

3,023
.15

2022

Operational Water Use1 (ML)
Discharge
Consumption

173
230
3,712

396

3,161
2,627

2020
1

3,391

2021

2022

25

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Innovation & Solutions

Operations

PeopleCommunities

Governance

Carrier 2023 ESG Report

ESG Indices

Waste

Health & Safety

GRI 306-1, 306-2, 306-3, 306-4, 306-5 | SASB RT-EE-150a.1

GRI 2-25, 3-3, 403-1, 403-2, 403-7, 403-9 I SASB RT-IG-320a.1

Our 2030 ESG goals include delivering zero waste to landfill frommanufacturing locations. We define zero waste as a diversion rate of
98%. More than 95% of the waste we generate includes nonhazardous
waste, such as metal, wood, paper and glass. Hazardous waste is lessthan 5% of the total waste generated but poses potential risks to theenvironment and requires increased regulatory oversight and added
treatment costs. Carrier’s waste management strategy prioritizes
avoiding and reducing generation at the source, including collaboratingwith suppliers to reuse packaging to optimize our production
processes. We also recycle and recover useful materials produced
from manufacturing. We treat waste that cannot be avoided, reusedor recycled to reduce environmental impact. The remaining waste,
dependent on its contents and in compliance with local regulations,is sent for off-site disposal or energy recovery.

Operational Waste Generation and Management (metric tons)
Hazardous

1,123

Disposal

1,016

Diverted

Nonhazardous
Disposal

5,596
58,853and employee training.

• Recycling metal waste and nonmetal commodities.
• Implementing a formal coolant management program.
• Investigating and characterizing all acid/alkali waste streams.
• Identifying characteristics, sources and amounts of unique and/or
small-volume waste.
Three additional Carrier manufacturing sites achieved zero waste
to landfill certification by transitioning to more sustainable waste
management methods, bringing our total to four sites by the endof 2022.

772

6,543

1,169

7,009
63,214

59,236

1,215

As part of our 2030 ESG goals, we are committed to maintaining worldclass safety metrics. We invest in creating safe work environments,
continuous monitoring and performance improvement, ongoing training
and a strong safety culture to deliver safe, reliable, compliant andsustainable workplaces for our employees and contractors.
Our approach to workplace health and safety is built on three principles:1) S afety is a responsibility shared by all employees and promoted
by leadership.

Diverted2) Leading indicators help focus our attention on areas where risks
and injuries can emerge over time.

3) W orkplace safety requires continuous operating disciplineand focus.

Our manufacturing facilities are required to implement best
management practices to understand and reduce sources ofwaste, including:• Installing site storage in the appropriate locations with signage

1,095

26

2020

2021

2022

Nonhazardous

91%

90%

90%

Hazardous

43%

52%

52%

Operational Waste
Diversion Rate

These principles guide the management of health and safety risks
across our global operations and service locations. Carrier’s EH&S
Policy is reinforced by our EH&S Operating System. This system
supports our ability to maintain safety compliance and continuous
improvement across our global facilities and field operations,enabling us to:• Provide our employees and contractors with workplaces free frominjury and illness.

• Minimize the impact on the environment and our communities.
• Comply with all applicable EH&S obligations.
• Proactively manage emerging aspects, impacts, hazards and risks.
• Monitor and continuously improve performance.
• Achieve our health and safety objectives and improvement targets.

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PeopleCommunities

Dedicated health and safety professionals implement the EH&S
Operating System across our global operations and field services.
All facilities are required to regularly identify, assess and manage risks
using the hierarchy of controls, including when planned and unplanned
operation changes occur. Our health and safety professionals conduct
risk assessments and communicate impacts, hazards, risks andassociated controls to affected people.

Total Recordable Incident Rate1

Carrier’s EH&S councils meet regularly to direct and coordinate
EH&S initiatives. Activities include:

0.1• Reviewing and updating programs.
• Identifying new programs and policies.
• Conducting evaluations.
• Evaluating progress to goals.
• Reviewing compliance assessments.
• Implementing and communicating with employees about

0.3

0.37

0.38

2020

2021

In 2022, recordable injuries decreased by 35%, driven in part bycontinued focus and investment in machine safeguarding, installing
additional controls on our forklift fleets, and upgrading basic tools.

TRIR: Number of fatalities, lost-time cases, restricted duty cases and medical treatment cases x
200,000/total hours worked.

1

2

LTIR: Number of lost-time cases x 200,000/total hours worked.

0.31

0.2

0

Carrier 2023 ESG Report

ESG Indices

0.4

2022

0.2
RISK
ASSESSMENT

0.1

0.13

0

2020

0.12

0.12

2021

2022

Lead With Safety
GRI 403-4

Our Lead with Safety program focuses on nine Safety Commitments
and empowers Carrier employees and contractors to embrace eachcommitment. We encourage and facilitate two-way active dialogue
with employees through multiple communication mechanisms,
including works council meetings, safety committees, collaborative
inspection programs and open forum staff meetings. This helps
create a culture of hazard awareness and prevention that drives ourcontinuous safety improvement journey.

27

Our Stop Work Authority Standard covers the expectations and theprocess to stop, assess, resolve and follow up if any task cannot
be performed safely by employees, contractors or visitors on the
manufacturing floor or in field operations. All site leadership teams
promote and reinforce this behavior and prevent the threat of
retribution and retaliation for reporting safety concerns or stopping
work. Stop Work events are immediately reported to the area
supervisor, the site EH&S team and site leadership where appropriate.
Hazard observations are tracked within our reporting system, providing
insights that drive proactive controls to help avoid future incidents.

Lost-Time Incident Rate2

recommended health and safety actions.
We measure the effectiveness of our health and safety programs using
a variety of metrics, including total recordable incident rate (TRIR)
and lost-time incident rate (LTIR). The primary health and safety
risks within our factory and service operations are associated withmachines, forklift trucks, working at heights, chemicals, hazardous
energy, electricity and material handling. We address these risks
through our EH&S Operating System, targeted programs and training.

Governance

WORKING AT
HEIGHT

ELECTRICAL
SAFETYPRESSURIZEDGASHAZARDOUS
ENERGYINDUSTRIAL
VEHICLES

MOTOR
VEHICLESMACHINE
GUARDING

LIFTINGOPERATIONSOUR SAFETY COMMITMENTI WILL STOP WORK IF I CANNOTPERFORM THE TASK SAFELY!

Lead with Safety posters help promote a safety culture in our manufacturing facilities.

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PeopleCommunities

GovernanceOccupational HealthTraining & Development

GRI 403-3, 403-6, 403-7

GRI 403-5

Carrier’s EH&S Operating System identifies critical actions formaintaining occupational health, including employee health andmedical surveillance testing and industrial hygiene assessments ofhazards that may impact employee health.

Carrier’s EH&S Operating System requires the creation and adoptionof an annual training plan within our manufacturing and service
operations that includes topics, methods of training, target audiences
and training providers.

COVID-19

Emergency Management

We continued to navigate the evolution of COVID-19 globally.
We took actions aligned with the latest scientific and regulatory
information from both domestic and international agencies toprotect our employees, serve our customers and minimize impacts
while continuing to provide essential products and services. This isdemonstrated by our return-to-office policy, vaccine clinics at multiple
sites around the globe and controls based on risk assessments in ouroperating facilities.

Business disruption can happen at any time due to extreme weather,loss of critical infrastructure, violence, disease outbreaks, pandemics
or other issues. Emergencies can occur at a facility or at a regional,
national or global level. Carrier’s emergency and incident response
procedures provide frameworks for effective emergency management
and recovery. At the facility or business segment level, emergency
preparedness and response are managed by Carrier’s EH&S team andfacility or site-security leaders.

Noise and Hearing Conservation
Carrier’s EH&S Operating System requires facilities to identify
and assess noise hazards, ensure these hazards are appropriately
documented, and review and improve (where possible) any noise
hazards greater than 85 dBA.
In 2022, Carrier received a Health Promoting Enterprise certificate
from the Ministry of Health of the Czech Republic for the third
consecutive time, recognizing our Refrigeration manufacturing
operations. The certificate confirms a high level of prevention andhealth care provided to employees in accordance with Criteria for
Evaluation of Health Promotion at Workplace prepared by the
National Institute of Public Health.

Carrier 2023 ESG Report

ESG Indices28

Responsible Supply Chains
Our suppliers are a critical part of the global Carrier team. From theirinnovation to their commitment to quality, suppliers work with us every
day to meet and exceed customer needs. Our suppliers include small
to medium enterprises and multinational corporations that provide
materials, components, services and logistics support.
In addition to upholding our expectations for quality, ethics and safety
as communicated in our Supplier Code of Conduct, Supplier Quality
Manual and Standard Terms and Conditions, we have embedded
sustainability and human rights principles into how we procure andwork with our supply chain.

Engaging Our Supply Chain
GRI 308-1, 308-2, 414-1, 414-2

To achieve our 2030 ESG goal to establish a responsible supply chain
program and assess key factory suppliers against program criteria, we
follow a four-pillar strategy:1) D evelop a clear understanding of sustainability performance acrossour supply chain.

2) Strengthen supplier engagement and sustainability performance.
3) Embed sustainability insights and criteria across our procurement
procedures, processes and tools.

4) Lead with a world-class program for supply chain sustainability.
As part of the Carrier Quality Systems Audit, new suppliers arescreened against sustainability-related metrics to understand theenvironmental and health and safety management systems andprocesses they have in place to manage risk and track compliance.
The screening questionnaire also focuses on recycling efforts andcommodity management.

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Innovation & Solutions

Carrier uses EcoVadis, a third-party risk assessment platform andengagement tool, to assess top factory suppliers across key ESG
topic areas, including labor practices, human rights, ethics, energy,
climate and water. We continue to progress toward our goal toannually assess 80% of Carrier’s product spend against sustainability
criteria through our supplier sustainability program. In 2022, we
assessed 59%. To incentivize performance, we require CarrierPreferred Suppliers to maintain a minimum score of 45 on the
EcoVadis assessment.
To help ensure supplier alignment to our ESG expectations andSupplier Code of Conduct, we:• Provide ongoing ESG training to our commodity managers to drive
program awareness and compliance.

• Hold annual global and regional supplier conferences tocommunicate our ESG expectations.

• Host ESG-focused webinars with EcoVadis in local languages 		
for suppliers.

Operations

PeopleCommunities

GovernanceSuppliers can reach Carrier Preferred status by committing tooperational excellence and to meeting cost and sustainability targets
as follows:• ≥98% on-time delivery for the last 12 months.
• Driving toward zero defects.
• Maintaining an EcoVadis sustainability score ≥45.
Supplier Diversity
Relationships with high-quality, diverse suppliers are key to our
success. We establish relationships with qualified suppliers in morethan a dozen diverse categories, creating value for our company andour communities. In 2022, we purchased $312 million of products
and services from first- and second-tier small and diverse-owned
businesses in the United States.
Diverse Spend$201 million• Conduct risk mapping exercises to identify and prioritize key

2020

suppliers and regions to engage on key sustainability topics.

2021$308 million

2022$312 million

Supplier Excellence
We count on our suppliers to meet the same high standards for
quality, delivery, cost and customer satisfaction that we place on
ourselves. Carrier’s Supplier Excellence program rates our suppliers
on key metrics and works to develop long-term business relationships
with our Carrier Preferred-level suppliers.

Carrier 2023 ESG Report

ESG Indices29

Conflict Minerals
Carrier has established a conflict minerals compliance program
designed to conform, in all material respects, to the internationallyrecognized due diligence framework established by the Organization
for Economic Cooperation and Development. We support industrywide
initiatives that raise awareness for responsible sourcing of conflictminerals and support the development of conflict-free sourcing, suchas the Responsible Minerals Initiative, where Carrier serves asa partner member.
Our Conflict Minerals Policy describes our preference to source
tantalum, tin, tungsten and gold (known as 3TG) originating in the
Democratic Republic of the Congo region from a smelter or refiner
validated as conflict-free by an independent third party. Because
Carrier does not source 3TG directly from smelters or refiners,
engagement with our suppliers is a fundamental element of ourefforts to comply with the legislation. Our Form SD Conflict Minerals
Disclosure and Report is in our corporate filings.

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ESG Indices

Carrier 2023 ESG Report30

PeopleAt Carrier, our diverse ideas and perspectives are ourgreatest source of innovation. We work as one global
team with The Carrier Way as our foundation.

Culture & Engagement . . . . . . . . . . . . . . . 31
Inclusion & Diversity . . . . . . . . . . . . . . . . . 33
Development & Career Growth . . . . . . . . 37
Employee Well-Being . . . . . . . . . . . . . . . . 39

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Culture & Engagement

The Carrier Way

GRI 2-7, 2-29, 3-3, 401-1, 405-1

The Carrier Way is the foundation of everything
we do. It defines our vision, reaffirms our values,
describes the behaviors that create a winningculture, and establishes how we work and win
together. We reinforce The Carrier Way across ourcompany through ongoing communication andeducation on the behaviors that are critical to our
success, such as having a passion for customers.

Our aspiration; why we come to work every day.

Leading People The Carrier Way

Our behaviors; how we work and win together, while never compromising our values.

Global Workforce
As an employer of choice, Carrier attracts,
develops and retains world-class talent, andfosters an inclusive and diverse culture. We
advance our workplace culture by developing anddeploying best-in-class programs and practices,
providing enriching career opportunities, listening
to employee feedback and always challenging
ourselves to do better.

Americas43%

Female

29%

EMEA

27%

Male

71%

We introduced Leading People The Carrier Way –our new talent philosophy anchored in one of The
Carrier Way’s key tenets – Build Best Teams. It
was developed with input from leaders across thecompany to support employee development and set
clear expectations for our leaders. Leading People
The Carrier Way is made up of two key parts – ourTalent Philosophy and our Leader Success Model.

Asia Pacific30%

Our Talent Philosophy includes five key principles:valuing behaviors while achieving results,
supporting a culture of development, providing
transparent and real-time feedback, setting goals
and measuring performance, and differentiating ourinvestments in our team members based on theiroverall contributions.

2022 Global Workforce
RegionGender2022 Global Voluntary Turnover1
RegionGenderAmericas20.8%

Female18.6 %

EMEA

9.4%

Male

14.4 %

Asia Pacific

14.3%

Total

15.6%

Total

15.6%

Our Leader Success Model sets expectations
for how people leaders lead others by taking an“outside in” perspective, by defining the futureboldly, generating energy and owning outcomes.

Creating solutions that matter for people and our planet.

Our absolutes; always do the right thing.

Respect

Integrity

Inclusion

Passion for Customers

Innovation

Achieve Results

We win when our customers win.

We perform, with integrity.

Play to Win

Dare to Disrupt

Choose Speed

Build Best Teams

We strive to be #1 in everything we do.
We focus and move with a bias for action.

We innovate and pursue sustainable solutions.
We develop diverse teams, and empower to move faster.

Our guiding principles for how
People Leaders develop talentand Build Best Teams.
We value BEHAVIORS while achieving results.
We use the “what” and the “how” to assess performance and potential.
We role model The Carrier Way behaviors and hold each otheraccountable to do the same.

We DEVELOP and help our people grow.

We support a culture of growth, valuing experiences andcross-company movement to accelerate development.
Employees own their development, with support from their leader.

We are TRANSPARENT and givereal-time feedback.

We discuss performance and potential, so all employees cangrow and succeed. Leaders and employees give and receive
two-way feedback candidly and constructively.

We PERFORM by setting stretch goals andholding individuals and teams accountable.
We coach for higher performance, raising the bar every year,
and take timely action.

We DIFFERENTIATE based on contributions.
We recognize and reward both high performance and high potential
through differentiated investment, development, compensation andcareer progression.

Includes global voluntary turnover, including retirement and death-in-service,for permanent employees; does not include temporary employees.

1

Excellence

Our expectations for how
People Leaders lead others.
Think “Outside In”

Seek market-leading solutions.​
One Carrier always.
​Know and amaze your customers.​

Define the Future Boldly
Think big, take risks, inspire ideas.​
Make change comfortable.​Try, learn, celebrate.​

Generate Energy

Connect people to purpose, empower.​
Lead inclusively, ignite optimism.​
Choose mission over self​.

Own Outcomes

Simplify, prioritize and focus.​
Anticipate, adjust, clear the path.​
Make it happen, together.

31

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Employee Engagement

Engagement Score

We listen to ouremployees, review their
feedback and take action
to drive performance
improvement andincrease the impactof our programs. We
conduct our Pulse global
engagement survey threetimes a year in local languages. Pulse surveys arean opportunity for employees to provide honest,
confidential feedback.

In Pulse surveys for 2022, the average of our results showed that:

Surveys are short to encourage participation andallow for quick analysis of results, translatingthem into insights and actions. People leaders
have access to the results for their teams, andare empowered to share and collaborate with
their employees to identify areas of improvement.
Carrier equips people leaders with tools andresources to take meaningful action.
Going forward, Engagement and Inclusion Score
questions will be asked on every Pulse survey,
as they give important insights and trends
across surveys.

• Engagement Score, in response to the question, “Howhappy are you working at the company,” was 76, two points
above benchmark.1• 75% of our employees participated in the Pulse survey,
up from 64% the previous year.

Gender

76
74

77

76

FemaleMale

72
Overall

Employee
Category

Benchmark74

79

Non-Production/
Salaried

Production/
Hourly74

75

FemaleMale

Inclusion Score
Since 2021, one of our three annual Pulse surveys is dedicatedto Inclusion, Diversity & Belonging and measures progress withan Inclusion Score. It is based on the question, “I feel a sense of
belonging at the company.”2022 results showed that:

Gender74• Inclusion Score was 74, continuing to exceed the global corporate

U.S. Peopleof Color

Carrier

70
This benchmark is provided by Carrier’s third-party engagement survey provider,with the data representing over 900 companies from around the world.

U.S. Peopleof Color

Carrierbenchmark1 of 70 and up from our score of 73 in 2021.

1

Carrier 2023 ESG Report

ESG Indices

Benchmark

68
Overall

Employee
Category

74

75

Non-Production/
Salaried

Production/
Hourly32

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Reduce the Gap
GRI 405-1

GRI 3-3, 405-1

Our greatest strength is the diversity of our people and their ideas. We arecommitted to a workplace that is truly and genuinely inclusive, one that inspires
and encourages everyone, everywhere, to bring their authentic selves to work,
every single day. Carrier remains steadfast in our goal to create a workplacethat is truly and genuinely inclusive, and where all employees feel like they
_belong. There is zero tolerance for any form of discrimination against any of ouremployees, and we provide employees with access to Carrier’s Speak Up program
to anonymously report incidents of any type of racism or discrimination.

We reduce the gap by recruiting inclusively; building partnerships with colleges, universities and professionalorganizations; and hiring and promoting the most talented employees. We build an intentional connection
between our talent practices and inclusion and diversity (I&D). While our efforts to build an inclusive anddiverse workforce have yielded results, we acknowledge that it is a journey and we have more work to do.

2022 Status
Global executive diversity1

U.S. People of Color executives

2015

2015

27%

13%

To build upon our _belong philosophy, we introduced ally, laying out key
principles that outline our expectation for employees to contribute to our
inclusive culture by striving to be an ally to all.

2022
Global women executives2

U.S. People of Color professionalsa dvocatel istenl earny ield2015

2015

for others in the faceof bias and intervene
when noninclusive
behaviors occur.

with empathy to understanddifferent perspectives andensure others feel seen
and heard.

and build self-awarenessabout bias and acknowledge
individual experiences ascompared with our own.

the floor, speaking less andlistening more, enabling
belonging and knowing thatallyship starts with you.

2022

49%

20%
30%

31%

2022

2022

18%
26%

View EEO-1 Report ►Four-Tenet Inclusion & Diversity Strategy
Our _belong I&D philosophy and our four-tenet strategy – Reduce the Gap, Develop & Sponsor, Drive Inclusion and Lean Forward – continue to provide our people leaders and employees with the guiding principles
for how we become a more globally inclusive and diverse company.

Reduce the Gap

Develop & Sponsor

Drive Inclusion

Lean Forward

Recruit inclusively, including from thecommunities in which we live and work

Foster a sense of belonging by developing,
mentoring and sponsoring employees

Drive an inclusive culture through education,
training, listening sessions and more

Celebrate our differences

1

Global women and U.S. People of Color.

2

Does not include Toshiba Carrier Corp.

33

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Partnerships

Develop & Sponsor

We are proud to partner with two top historically Black colleges and universities (HBCUs) – North Carolina
Agricultural and Technical State University and Spelman College – to strengthen our diverse talent pipeline.

Development and sponsorship are critical to our journey. A key part of our I&D philosophy is the focused
development of our affinity employee groups.

Carrier and Spelman College created programs to help students develop skills for the future. The multiyear
commitments involve creating two flagship programs – The Carrier Ambassadors Program, a leadership anddevelopment program for Spelman students in their sophomore and junior years, and the Carrier Elevate(S)program, a leadership, development and mentoring program for students in their senior year. The programs
are designed to support and encourage students seeking careers in engineering, sales, operations, digitaland finance.
Our partnership with North Carolina Agricultural and Technical State University helps students gain valuable
skills and prepare them for future careers through development and mentorship. The five-year sponsorship
includes annual programming for career and recruitment initiatives, funding for several student academicorganizations, participation in senior design and capstone projects, and scholarship opportunities.

ELEVATE Development Platform
Carrier’s ELEVATE development platform focuses on the uniquechallenges faced by traditionally underrepresented groups in
the workplace. Carrier’s ELEVATE: Women in Leadership and
ELEVATE: Blacks in Leadership programs provide a platform
for employees to gain insights about their greatest strengths and opportunities while shaping their career
trajectory. Cohorts engage with internal and external professionals in multiple development experiences
ranging from self-assessments to networking, learning sessions and more. Sponsoring managers participate
in key learning topics to enhance understanding and provide support for their employee’s journey.

Carrier also hosted students from HBCUs for three days of immersive learning at our world headquarters.
Focus areas included our business, values, culture, inclusion and diversity, leadership programs andcareer opportunities.

49%

Affiliations
Carrier is a platinum-level member of the National Society of Black Engineers and serves on the Board of
Corporate Affiliates. Carrier is also a member of the Society of Hispanic Professional Engineers and theSociety of Women Engineers. We lean forward into our commitments to I&D through participation in regionaland national conferences, partnership events and other programming.

34

Since inception
in 2019:160+
graduates across

18
countries

Since inception
in 2020:~40
graduates

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Carrier 2023 ESG Report

35

Employee Resource Groups
Our global Employee Resource Groups (ERGs)
reflect the diversity of Carrier’s workforce andhelp develop our affinity groups and are open tomembership for all Carrier employees. The ERGs
have five strategic working areas: education andawareness, professional networking, community
outreach, business partnering and strategy
execution. They operate with a formal leadership
structure, including a steering committee,
senior leadership sponsorship and a defined
mission statement that aligns with Carrier’s
business strategy.
Employee Resource Groups lead grassroots
efforts to drive a culture of inclusion and celebrate
the diversity of our global workforce.

United Carrier Asian Network

Carrier Black Alliance

Drives awareness about Asian culture, fosters
inclusion and builds an ecosystem for diverse
talent and company growth.

Fosters programs to attract, retain,
inspire and support Black and African
American employees.

Hosted a series of seminars on culturalawareness, business strategy, problem-solving
and mental health.

Filled backpacks with school supplies anddistributed them to youth in collaboration withlocal agencies.

Pride

Supports the recruitment, growth, retention,
professional transition, well-being andcontinued service of veterans, military
members and their families.

Creates an inclusive work environment througheducation, awareness and building a sense of
belonging for LGBTQIA+ employees.

Women Empowerment at Carrier hosted events around the world,such as this one in China, to celebrate International Women’s Day.

Held educational sessions across the globe
on sexual diversity, gender identity and being
an effective ally.

Military & Veterans

Hosted an event featuring Carrier employees
who shared impactful stories about theirmilitary service, sacrifice and perseverance inrecognition of Veterans Day.

Carrier Hispanics & Latinos Employee
Engagement Resource group
Promotes attraction, connection, development
and leadership of Hispanic and Latinx employees.

Raised money to fund scholarships
awarded to Hispanic students.

Women Empowerment at Carrier
Develops and accelerates growth of women in
the organization, addresses unique challenges ofwomen in leadership and fosters active allyship.

Held global events to discuss careeradvancement, raise awareness against bias
and take action for equality.

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Drive Inclusion

Lean Forward

The key to inclusion is to listen and learn, andto educate leaders and employees across theorganization. Through Employee Resource Groups,
fireside chats, listening sessions and training,
we drive a culture of inclusion throughout thecompany. We empower people leaders with thetools and resources they need to lead diverse
teams. Our new Inclusive Leadership Toolkit
includes best practices in inclusive leadershipbehaviors, a self-assessment tooland recommended learning modules.

We celebrate diversity, communicate authenticallyand transparently about our progress toward
inclusion and continuously look for new ideas tomake Carrier an inclusive workplace.

As a part of our broader I&D philosophy, we
provided employees and people leaders withresources to develop their awareness andunderstanding through new learning content in
the Carrier Learning Portal. We focused on allyshipand inclusion as core themes and offered online
learning in 30 languages.

Inclusion & Diversity Champions
Carrier’s I&D Champions Program features a
global group of trained professionals who areavailable if employees have concerns about actions
related to our I&D commitments. I&D issues may
include claims of harassment or discrimination,
microaggressions, or questions and concerns that
may impact our ability to be truly inclusive.

In 2022, 96% of our
non-production employees
completed online learning
about inclusion and diversity.

2022

For the second consecutive year, Carrier
was named a Best Place to Work for
LGBTQ+ Equality by the Human Rights
Campaign Foundation in the UnitedStates and for the first time in Mexico
by Equidad Mexico. In the United States,
the perfect score of 100 points on the
Corporate Equality Index demonstrates
our commitment to inclusion.

36

Carrier 2023 ESG Report

We foster a culture that drives The Carrier Way
values of respect, integrity, inclusion, innovationand excellence in line with our _belong philosophy.
We stand against discrimination and inequality inany form. The Carrier Board of Directors is engaged
in I&D matters with the Governance Committee
reviewing and overseeing our efforts.
In the United States, Martin Luther King Jr. Day is
a recognized holiday for employees. Additionally,
Carrier celebrates Juneteenth in the United Stateswith a series of events discussing the intersectionof the Black experience in corporate America,
reflecting on history and culture, and celebrating community. In partnership with our ERGs, Carrier embraces
and commemorates Asian Pacific American Heritage Month, Black History Month, Diwali, Hispanic Heritage
Month, Lunar New Year, Pride Month, Veterans Day, Women’s History Month and more.

®
Carrier partners with leading organizations to advance inclusion and diversity. We maintain our ongoingcommitment to the CEO Action for Diversity & Inclusion pledge, the largest CEO-driven business commitment
to advance inclusion and diversity in the workplace. As part of our commitment, we expanded Carrier’s“Days of Understanding,” bringing in more global voices and diverse perspectives.
We are also a member of Paradigm for Parity, a coalition of business leaders dedicated to addressing thecorporate leadership gender gap. Carrier has pledged to achieve gender parity in senior leadership roles
by 2030.

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Development & Career Growth
GRI 404-1, 404-2

Employee development and continuous learning programs are a priority for Carrier. We invest in our people sotheir careers can progress, and we can grow together. Our development programs help position Carrier as an
employer of choice while accelerating innovation for customers.

Early Career Programs
Carrier offers extensive opportunities for college students and recent undergraduate and graduate students.

• Internship Program: Students learn about our industry-leading products and gain on-the-job, hands-on
experience creating innovative solutions by working with mentors and senior leaders.

• Leadership Rotational Program: Recent graduates build skills through rotations in different disciplines
within our Digital Technology, Engineering, Finance and Operations organizations. Through work experience,
seminars, mentoring and guidance from Carrier leaders and program alumni, the rotational program
develops employee capabilities, enhances learning and develops future leaders.

•U niversity Engagement: Through our on-campus recruiting program and strategic university partnershipengagement, we focus on attracting the best talent and providing rewarding career opportunities.

Governance

ESG Indices

Carrier 2023 ESG Report

37

Capability & Skills Development
GRI 404-2

Learning and development are core to Carrier’s culture. We provide employees with the knowledge,
experience and perspective they need to achieve ever-higher levels of performance in their careers.
Our learning methodologies involve sharing best practices, building business networks, coaching andtapping into knowledge across the company. Each year, our employees complete thousands of hours of
training through internal programs, e-learning, virtual classrooms and external seminars.
A common global learning portal connects employees with tools to enhance their skills in areas suchas leadership, ethics and job- or function-specific programs. We increased our online learning andcertification offerings, now offering full- and part-time employees access to over 50,000 online courses
in multiple languages.
In 2022, our non-production employees averaged approximately 12 hours of formal training, including ethics
and compliance, management and professional development courses to align our teams to The Carrier Way.

Carrier Employee Scholar Program
Carrier is committed to the continued development and engagement of our people. We promote continuous
learning through our Employee Scholar Program, covering the cost of an employee’s tuition, academic feesand books at approved universities.

In 2022, we welcomed:

90+

~600+

~$170M50+

8,600+

400+

early career hires
for our leadershipprograms

interns aroundthe world

INVESTED since
inception in 1996

COUNTRIES
with employee
participation
since inception

DEGREES EARNED
since inception

CURRENTPARTICIPANTS

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Programs

Operations

PeopleCommunities

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Global Talent Possible Programs

In 2022, participation nearly tripled in our New
People Manager Program compared with theprevious year, helping participants to lead with
The Carrier Way values and behaviors.
In addition, our mentorship program allows all
employees to search for, meet and engage withmentors globally. The goal is to help mentees
expand networking and learning opportunities,
receive support and encouragement, and increase
job satisfaction. The program also allows mentors
to gain new ideas and perspectives, develop or
hone their leadership and coaching skills, help
build meaningful relationships and networking
opportunities, and help contribute to
Carrier’s success.

GovernanceTo advance the careers of our future leaders, we offer the Talent Possible suite of development
programs. Talent Possible supports leadership development needs at three critical career stages:
early career, mid-career and senior leadership. From building trust to managing priorities andguiding collaborative discussions, each program focuses on the unique skills leaders need tosupport themselves and their teams.

The Discover Your Possible program covers
topics critical to building leadership capability
early in one’s career.

Connect Your Possible provides foundational skills
for mid-career talent and equips professionals withthe mindset, skills and tools they need to achieveorganizational and personal objectives.

Lead Your Possible is designed for seniorleaders with potential for growth into
broader roles.

300+ Carrier employees graduated fromone of our Talent Possible cohorts in 2022.

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Performance Management & Development Reviews

Employee Well-Being

GRI 404-3

GRI 401-2

39

We are strengthening our approach to well-being by fostering dialogue between employees and their
managers and measuring well-being in Pulse engagement surveys.

We enhanced Performance Connections, our performance management and development program, to foster
authentic, two-way conversations on employee well-being and overall engagement. The program sets thestage for employees to perform at their best, while developing their careers at Carrier. We establish goals
and targets, followed by a mid-year check-in. At year-end, we reflect on performance against goals and get
ready for the year to come. The program focuses on substance over form, with a greater emphasis on candid
discussions between supervisors and employees regarding goals, feedback and development.

In the most recent cycle, of eligible employees:
1~90%

participated in year-end conversations and aligned theirperformance goals to company goals

Succession Planning & Talent Reviews
Carrier conducts annual Leadership Development Reviews, where senior leaders across the globe review anddiscuss talent and succession plans for key positions, allowing us to see where we have a strong talent bench
and where we can improve. This process, culminating in an annual review with the Board of Directors, also
allows us to identify future leaders, discuss strengths and opportunities, highlight emerging diverse talent andfocus on development.

Flexible Work
Carrier’s global flexible work philosophy is rooted in four key tenets.

Flexibility Matters

Place Matters

Work and life are dynamic,
and flex work should be, too.

Our Carrier locations are the places where wecome together to create a community, and wevalue the in-person moments of being together.

Team Matters

Outcomes Matter

We recognize that work is a team sport,
and we win and grow together.

We understand our goals, and we achieve
results with accountability.

Aligned with these tenets and The Carrier Way, worX provides employees withremote work flexibility, balancing the needs of employees, the business andcustomers. Our informal approach to flexibility is trust-based, not rules-based,
and designed to be informal while promoting alignment with our cultural objectives.2
Carrier also provides additional work flexibility options through our Alternative Work Arrangement Policy.

1

Active salaried employees excluding production maintenance or where governed by collective bargaining obligations.

2

For those employees whose roles and responsibilities allow for remote work. May be subject to location regulation or bargaining/consultation requirement.

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Health & Wellness
Carrier offers competitive benefits programs for all employees,
monitoring new market developments and enhancing our programs
when necessary. The individual plans that make up Carrier’s benefits
are designed to balance immediate needs, such as offering healthcare,with a longer-term focus, such as planning for retirement.
In coordination with each country’s social welfare system, and in
addition to any required local healthcare participation, we may
provide additional benefits based on the market competitiveness inthat country. We meet all local regulations related to benefits.

In 2022, we launched our Employee
Assistance Program benefits globally at
no cost to employees and their householdfamily members. The program provides
access to resources and confidential
support on work-life balance, family,
mental health and more.
Additionally, to encourage preventive screenings and healthy behaviors,
U.S. employees are eligible for financial rewards in exchange forcompletion of a health screening/biometric assessment or annual
physical. Our group health plan’s telemedicine program makes careaccessible to plan participants 24/7, wherever they may be.

The following benefits reflect our offerings in the United States for salaried and nonunion hourly employees. Benefits vary by region,
business alignment, union agreement and employee status:

Healthcare Plans

Voluntary Benefits• Medical, dental and vision coverage• Accident insurance• Prescription drug coverage• Health savings account (HSA)• Flexible spending account (FSA)• Critical illness insurance• Auto/home insurance• Pet insurance• Legal insurance• Excess liability insurance

Health and Wellness Resources• Health and wellness program with incentives• Tobacco cessation support• Resources to compare medical service prices and doctor reviews• Medical protection for business travelers
Financial Benefits and Resources• Retirement savings plan 401(k)• Retirement investment guidance• Employee Scholar Program
Life and Accident Insurance• Life insurance (basic and supplemental)• Dependent life insurance• Accidental death and dismemberment coverage• Business travel accident coverage

Work/Life/Time Away Benefits• Paid vacation and paid holidays• Adoption/surrogacy assistance• Parental leave• Medical and family leave of absence• Bereavement leave• Short- and long-term disability insurance
To learn more about Carrier’s benefits, refer to our corporate website.

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Communities
Carrier makes a positive impact on communities throughphilanthropic giving, volunteerism and partnerships.

Corporate Responsibility . . . . . . . . . . . . . 42
Planet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Communities . . . . . . . . . . . . . . . . . . . . . . . . 44
2022 Community Impact . . . . . . . . . . . . . 44

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PlanetGRI 203-1, 203-2

Our philanthropic giving aligns with our 2030 ESG goals. In
compliance with our Philanthropic Donations Policy, we bring ourunique knowledge and expertise to community areas where we canhave the greatest impact.
Focus areas include:

PlanetU.N. World Food Programme

The Nature Conservancy

Carrier collaborates internationally to advance cold chain
development, improve health outcomes, and reduce hunger, foodinsecurity and carbon emissions. We teamed up with other leading
companies and the United Nations World Food Programme to build aworld-class Transport Training Centre in Ghana, aimed at enhancing
transport and logistics capacities across West Africa to help preserve,
protect and extend the supply of medicines and vaccines.

Through a three-year commitment with The Nature Conservancy,
Carrier helped make the cities of tomorrow more resilient, healthy andequitable. We supported projects that helped address climate change
and restored natural habitats around the globe.

United for Air

PeopleCommunities
In 2022, we supported civic, cultural, economic and social welfareorganizations around the world. We invested over $9.7 million incommunities through cash and in-kind donations,1 and throughthe Carrier Matching Gifts Program, a dollar-for-dollar charitable
donation program.

1

In-kind donations are calculated using fair market value.

In India, we expanded United for Air, our air-quality-improvement
initiative, by installing additional air monitors and LED display boards
that provide the public with real-time air quality information about
pollution levels. Data is also available through a mobile app. The
campaign provides tips on reducing pollution and organizes hands-on
activities to educate and engage communities on actions they cantake for cleaner outdoor air.

• In China, The Nature Conservancy launched habitat garden classes
in collaboration with two leading universities as part of an eco-design
curriculum. Carrier employees also visited Qiandao Lake to releasefish that help reduce algae and improve drinking water.

• In Monterrey, Mexico, through Carrier’s support, 175 hectares wereconserved and reforested near the main source of water for the cityof Monterrey and its metropolitan area, resulting in more than 8,000
tons of avoided soil erosion.

• In the United States, to promote coastal resilience andconservation, Carrier employees planted 1,000 mangroves.
Employee volunteers also removed invasive plants from apreserve to help protect biodiversity.

•W ith Carrier’s support, students around the world participated in
virtual field trips to discover the natural world through Nature Lab,The Nature Conservancy’s online curriculum program for teachersand families.

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PeopleBuilding Talent Foundation
Carrier is creating a pipeline of future HVAC technicians through a collaboration with the Building TalentFoundation. The programs promote careers in the trades to youth and underrepresented populations,align training with industry needs and persistent labor shortages, and build engagement through careeradvancement opportunities. With Carrier’s support, the Building Talent Foundation placed more than 500
people into HVAC-related jobs over two years.

Historically Black Colleges and Universities (HBCUs)
We partner with HBCUs, including North Carolina Agricultural and Technical State University and Spelman
College, to help students gain valuable skills and prepare them for future careers through development,
mentorship and immersive learning at our world headquarters.

Rochester Institute of Technology
With Carrier’s support, Women in Computing and the Computing Organization for Multicultural Students
at Rochester Institute of Technology hosted several events to encourage students from underrepresented
populations to pursue careers in science, technology, engineering and math (STEM)-related fields. Carrier
employees participated in mock interviews, contributed to alumni panel discussions, provided resume
assistance, mentored students on software engineering senior projects, and volunteered at an all-day
hackathon for girls interested in learning about web development, programming and building apps.

For Inspiration and Recognition Science and Technology (FIRST)
Carrier employees from across the United States led FIRST teams, serving as mentors to students. FIRST is a
global nonprofit that provides mentor-based research and robotics programs to encourage students ages 4 to
18 to develop a passion for and pursue careers in a STEM-related field.

Boys & Girls Clubs$3.2M+

contributed to colleges and universities in support ofresearch, scholarships and programs that promote
STEM-related careers and inclusion and diversity

We piloted the Carrier STEMulated Minds program with a chapter of the Boys & Girls Clubs to enhance
STEM skills among middle and high school club members and help them discover STEM careers. Our
engineers served as volunteer judges for a drone operation competition at Carrier’s Center for Intelligent
Buildings, a STEM project competition and an online video game development competition.

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GovernanceCommunities

2022 Community Impact
Habitat for Humanity
Carrier supported home builds across six U.S. cities as a signature
partner of Habitat for Humanity’s Home is the Key campaign tocreate safe and affordable housing. We also supported additional
home builds across the country. Our involvement includes volunteer
efforts, financial support and product donations from our Healthy
Homes suite of indoor air quality and fire safety solutions. As partof these efforts, we proudly celebrated our 25th consecutive annual
home build in Indianapolis.

School Adoption Program

Cause For Alarm
Kidde created the Cause For Alarm fire education and safety initiative
to support communities that are at higher risk of death or injury inresidential fires due to different factors such as age, disability andsocioeconomic circumstances. In addition to raising awareness andproviding educational resources on home safety, Kidde teamed up
with other organizations to donate fire safety products to communities
in need.

Carrier 2023 ESG Report

ESG IndicesThrough a school adoption program in India, Carrier helps
improve indoor environments so that students from impoverishedcommunities have access to a safe environment for theireducation. The program focuses on infrastructure, academics
and holistic development.

Supporting Ukraine
Our employees contributed funds to worldwide nonprofit
organizations to support the Ukrainian people, and contributions
were matched dollar for dollar by Carrier. In addition, employees
participated in humanitarian efforts. Carrier also provided job
opportunities to refugees who fled their homes and country, anddonated fire extinguishers to people in Ukraine.

$1.3M+

1,100+INVESTED IN COMMUNITIES
through the Carrier Matching
Gifts Program, doubling
employee donations

ORGANIZATIONSSUPPORTED
through the Carrier
Matching Gifts Program$1.4M+

360+

in PRODUCT DONATED FOR
CHARITABLE PURPOSES1

STUDENTS MENTORED
by Carrier employees
leading FIRST Robotics
Competition and Tech
Challenge teams

320+

25th

CARRIER EMPLOYEES
assisted in Habitat for
Humanity home builds
across six U.S. cities

CONSECUTIVEANNUAL HOME BUILD
in Indianapolis

7,500+EMPLOYEE VOLUNTEER HOURS logged in the
United States in year one of our BUILDING POSSIBLE
Volunteer Program1

In-kind donations are calculated using fair market value.

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GovernanceOur corporate governance provides the framework forbuilding a culture of integrity and ethical behavior, guiding
our actions and governing the relationships among our
employees, with our customers and in our communities.

Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . 46
ESG Governance & Oversight . . . . . . . . . 46
Risk Management . . . . . . . . . . . . . . . . . . . . 47
Ethics & Compliance . . . . . . . . . . . . . . . . . 48
Corporate Policy Manual. . . . . . . . . . . . . . 50

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Leadership

ESG Governance & OversightGRI 2-9, 2-11, 405-1

GRI 2-9, 2-12, 2-13, 2-19

Carrier’s Board of Directors oversees the strategic direction of the company to advance the long-term
interests of the company and our various stakeholders. At the end of 2022, our nine-member Board of
Directors included eight independent directors. Our Executive Leadership Team executes Carrier’s strategicand operating plans and comprises the primary organizational functions and leaders of our reporting
segments: HVAC, Refrigeration and Fire & Security.

Our approach to ESG and sustainability governance is embedded into our culture, including at the highest
levels and across all business segments and functions. We amended our Corporate Governance Principles
and the charters of each of our committees to further refine the Board’s oversight of ESG. The amendments
elevated primary responsibility to the full Board for Carrier’s ESG program, goals and objectives, including
climate-related matters, and delegated certain elements to our committees to leverage their respective
areas of expertise. This approach reflects our belief that sustainability and Carrier’s growth strategy are
inseparable and underscores our commitment to our stakeholders and the stewardship of our planet.
Carrier’s Proxy Statement provides a comprehensive overview of Carrier’s Board oversight. The Carrier
Executive Leadership Team is responsible for our ESG priorities and 2030 ESG goals strategic road map.
Select Carrier executives have priorities tied to critical ESG topics such as sustainability, safety, culture,engagement, and inclusion and diversity. Progress toward these goals is considered when determining theirannual Individual Performance Factors.

44%

40%

89%

Board of Director
diversity 1,2

Board leadershipdiversity 1,2

Board of Director
independence 2

Sound Corporate Governance
Carrier is committed to strong corporate governance practices. Our governance framework enables our independent, experienced and accomplished directors to provide advice, insight and oversight that promotes
the long-term interests of the company, our shareowners and other stakeholders.

Oversight• Regular reviews of strategic

Independence• All Board committee members are• Regular reviews of significant risks;• Robust Lead Independent Director

direction and priorities

active oversight of Enterprise Risk
Management (ERM) program• Annual review of Board policies

and governance practices and ofcommittee charters• Annual Board, committee anddirector evaluations; regularrefreshment actions

1

Global women and U.S. People of Color.

2

As of 4/20/2023.

independent directorsrole with explicit responsibilities• Regular meetings of independent

directors without management led
by Lead Independent Director

Elections• Annual election of all directors• Majority voting for directors inuncontested elections

Share Ownership• Rigorous share ownership

requirements for directors andsenior management

Shareowner Rights• E ligible shareowners can makeproposals and nominate directors
through proxy access• Directors required to hold company-• Shareowners may act by• Hedging, short sales and pledging of• 15% of shareowners may call

granted equity until retirement
Carrier securities prohibited

written consent

special meetings• No supermajority shareownervoting requirements

Engaged Board• 1 00% attendance at Board meetingsin 2022• 100% attendance at committee
meetings in 2022

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Risk Management

The Board’s Role in Risk Management

GRI 3-3

GRI 2-9, 3-3Carrier encounters an extensive range of risks,
including compliance, financial, geopolitical, legal,
operational, regulatory, reputational and strategic.
Within these broad categories, specific risks include
climate impacts; cybersecurity; the competitive
landscape (including disruptive technologies);
human capital management (including talentacquisition, development and retention); logistics
and supply chain; and the impact of disruptive
events (including natural disasters and pandemics).
To manage these and other risks, we have
implemented an enterprise risk management
program, which is a companywide effort that is
managed by senior executives and overseen by
the Audit Committee and Board to identify, assess,manage, report and monitor enterprise risks that
may affect our ability to achieve the company’s
objectives and strategy.
As part of the ERM program, ownership ofenterprise risk is assigned to the appropriate
business segment or corporate function that is
responsible for developing and implementing
comprehensive mitigation plans. The Board
reviews these risks and mitigation plans on
an annual basis in conjunction with Carrier’s
strategic plan. Mitigation plans are reviewed
for effectiveness and include a broad range ofmeasures to manage and reduce risk, including

adjustments to strategic and business initiatives,
research and development, product design,
increased protections for our facilities and supply
chain, and enhanced internal controls, including
employee and contractor training. For example, in
addition to regular online training and simulated
phishing emails provided to employees andcontractors each year, Carrier’s cybersecurity
team conducted an extensive tabletop exercise in
2022 with Carrier’s CEO and senior executives thatsimulated an enterprisewide ransomware attack.
The exercise focused on identifying and closing
potential gaps and areas of delay in our internal
controls and response procedures.
The Board and committees also review enterpriserisks with senior management on an ongoingbasis throughout the year. Each committee has
primary risk oversight responsibility in the areasthat align with its focus and charter responsibilities
as described in the table at right. At each regularmeeting, or more frequently as needed, the Board
receives and considers committee reports thatprovide additional detail on risk management
issues and management’s response to them. For
example, cybersecurity risk is an enterprise riskthat the Audit Committee and the Board oversee
and review through regular committee reports andupdates, including two such briefings in 2022.

47

The full Board is responsible for Carrier’s strategic risks, while the Audit Committee oversees the company’s
ERM policies and practices. Responsibility for the oversight of specific risk categories is allocated among theBoard and its committees as follows:

Full Board of Directors• Major strategies and business objectives, including Carrier’s ESG program and related goals• Significant risks and risk management activities pursuant to Carrier’s ERM program• Succession planning

Audit
Committee

Compensation
Committee

GovernanceCommittee

Technology& Innovation
Committee• ERM policies and• Compensation and• Charitable and• Developments and• Capital structure and• Compensation of select• Compensation• Conflicts of interest• Corporate governance• Director independence• Environmental, health• Disruption risk by• Employee engagement• Government relations,practicessignificant capital
appropriations• Compliance program• Cybersecurity risks• Financial reporting andrelated internal controls,
including climate- andcybersecurity-related
disclosures• Foreign exchange,interest rates andraw material hedging• Significant

operational risks

benefit policies
senior leadersplan design andcompensationrelated risk

and Inclusion & Diversity• Incentive plan

performance metrics
and goals, including
those related to
implementation of
Carrier’s ESG program• Pay equity

philanthropic giving

and safetyincluding Carrier PAC andpolitical expenditures• Positions on

public issues• Product safety
and integrity

trends in technology
and digital, including
sustainability
technology and digitaldevelopments• Effectiveness of

Carrier’s technology
and digital strategy andinnovation programs

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Ethics & Compliance
GRI 2-16, 2-25, 205-1 | SASB RT-EE-510a.1

Global Ethics & Compliance Program

The first Carrier Corporate Ethics policy was created in 1932 by our
founder, Willis Carrier. Almost a century later, the same ideals remain
embedded in our culture.
At Carrier, we expect high performance and high integrity from ouremployees and everyone with whom we conduct business. It is neveracceptable to compromise our values or integrity to achieve ourbusiness objectives. We are a company committed to always doing theright thing. We maintain sound governance standards as reflected in
our Corporate Governance Principles, Code of Ethics, Corporate Policy
Manual, strong internal controls, transparent financial reporting and asystematic approach to enterprise risk management.

Code of Ethics
We aim to be world-class in everything we do – including our compliance with all laws and regulations and our Code of Ethics, whichapplies everywhere we do business. The Code of Ethics integrates our core values that serve as the foundation of our culture: respect,
integrity, inclusion, innovation and excellence. Every employee is responsible for ensuring that Carrier’s business is conducted incompliance with the law, Carrier’s Corporate Policy Manual and Carrier’s Code of Ethics.

Training
All Carrier employees are required to participate in annual tailored ethics and compliance training reflecting the results of regularcompliance risk assessments. Most employees receive their training through our online program, where they complete foundational ethics
and compliance certifications and training courses. Employees receive periodic anti-corruption refresher training if they hold a position that
presents a higher level of corruption risk.

Reporting and Transparency

C O DE O F ET HI CS

Carrier is committed to a safe reporting environment that is free of discrimination, fear, bullying or other negative consequences. Carrier
has zero tolerance for retaliation in any form. When employees, contractors and partners observe or suspect something that contradicts
Carrier’s Code of Ethics, Carrier policies or the Supplier Code of Conduct, we encourage them to speak up. We provide employees and ourbusiness partners access to Carrier’s Speak Up program, including the option to anonymously report ethical concerns online or by phone.

Continuous Improvement
We audit our operations on a regular basis to ensure compliance and continuous improvement. All reports of violations are investigatedthoroughly, fairly and impartially with the objective of identifying actions for continuous improvement.

CODE OF ETHICS

We updated the Carrier Code of Ethics in 2022.

1

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Human Rights

Fair Competition

GRI 2-23

GRI 206-1

Respect for human rights is foundational to Carrier’s values and
The Carrier Way. We take robust and thorough measures to protect
our employees. We also promote positive change by encouraging ourbusiness partners and communities to respect human rights as well.
In compliance with our Human Rights Policy, we ensure safe,
healthy and sustainable working conditions; require a respectful,harassment-free workplace; prohibit discrimination; deliver employeecompensation and benefits to attract and retain strong talent;
recognize freedom of association and collective bargaining underapplicable laws; prohibit child or forced labor and ensure our business
partners share this commitment; respect data privacy; and promoteresponsible sourcing practices for our suppliers.

Competition fosters better products and services, driving Carrier to be
more efficient and more innovative. We compete vigorously and legally,
not only because it is good for our business, but because it is the rightthing to do. Every employee is responsible to ensure Carrier complies
with all applicable competition laws.

Anti-Corruption
GRI 205-1

Carrier conducts business solely on the merits. We will not improperly
influence anyone to obtain or retain business or secure any otheradvantage, nor allow anyone to do so for our benefit, in any market –public or private – anywhere. In standing by our principles andcomplying with our Code of Ethics and company policies, we fightcorruption and support the global development of fair markets.
Our success relies on abiding by our core values – regardless ofwhat might be seen as customary or acceptable in a given market.

Carrier 2023 ESG Report

ESG Indices

Cybersecurity
Our Cybersecurity team leads a forward-looking program to protect
Carrier from constantly evolving cyber threats. Our cyber defense
strategy seeks to prevent, detect and respond to cyber risks using
advanced security technologies and best practices that align with
NIST 800-53, ISO 27001 and other industry practices.
Our security team remains vigilant and continually improves cybercapabilities throughout our organization, following U.S. Securities
and Exchange Commission guidance on cybersecurity. We conduct
regular assessments to validate defensive measures and use acomprehensive risk management framework to enable effective
escalation and response. We expanded security awareness training
and automated phishing simulations, and implemented an Enterprise
Defender program, which empowers employees to detect andreport suspicious cyber activity. Our investments in third-party risk
management, vulnerability management, threat intelligence and 24/7
security operations are all intended to address cyber risks and threats.
The Audit Committee of Carrier’s Board of Directors reviews Carrier’s
privacy and cybersecurity compliance programs and full Board reviews
are held as needed.

49

Data Privacy
Carrier values and respects the privacy of the people from whom itcollects, processes or transfers personal data. We take appropriate
steps to safeguard personal data under our control from unauthorizedaccess, misuse, impermissible disclosure, alteration or unauthorized
destruction. Carrier discloses personal data only to employees andthird parties having a legitimate business need to know, as
permitted by applicable law, and under appropriate legal andcontractual restrictions.
Our comprehensive data privacy compliance program provides
appropriate controls on what personal information we collect, store
and process and how we safeguard it.
Our approach involves:• Complying with all applicable data privacy laws.
• Completing privacy impact assessments for new and modified tools,
service providers, and products and services that involve collecting
or processing personal information.

• Completing Privacy by Design assessments to consider privacy
aspects as an integral part of designing new products.

• Performing annual self-assessments of our privacy
compliance program.

• Using appropriate security safeguards.
• Adopting and maintaining detailed policies and Binding Corporate
Rules, which are rules for data privacy compliance approved by
European regulators.

• Providing regular training within the organization to raiseawareness and foster compliance with applicable data privacy
rules and requirements.

• Internal Audit frequently auditing potential data privacy risks.

Table of Contents

Introduction

Innovation & Solutions

Government Relations &Public Policy Activities

Operations

PeopleCommunities

Governance

ESG Indices

Corporate Policy Manual
GRI 2-23, 2-24, 3-3

GRI 2-26

Carrier engages in political activity and public policy advocacy
on issues that impact the company’s business – whether at
the local, state or national level or with international
governmental organizations.
The Board believes that participating in the legislative andregulatory process is an important part of responsible corporate
citizenship and that Carrier and our employees have a legitimate
interest in public policy debates. The Governance Committee and
Board review and monitor the company’s government relations
activities, including those of the Carrier political action committee(PAC). These activities are governed by and conducted in accordancewith the standards articulated in our Code of Ethics and corporate
policy on Government Relations.
Carrier’s government relations initiatives are intended to educate
and inform officials and the public on a broad range of public policy
issues that are important to our business and consistent with the bestinterests of the company, our shareowners and our other stakeholders.
These initiatives are not based on the personal agendas of individual
shareowners or Carrier’s directors, officers or employees.
The company does not make political contributions to candidates for
U.S. federal office and, as a matter of policy, does not contribute to
candidates for state or local office in the United States or for offices inother countries. The Carrier PAC, which is entirely funded by voluntary
contributions, is nonpartisan and contributes to candidates for federal
office who are supportive of Carrier’s corporate business interests andpublic policy goals, regardless of political party.

Our Corporate Policy Manual is publicly available, covering
topics including:• Anti-Corruption• Anti-Money Laundering• Antitrust Compliance• Climate Change• Conflicts of Interest and Consultation/Approval Request• Data Privacy• Enterprise Risk Management• Environment, Health & Safety• Global Ethics & Compliance• Government Relations and Procedures & Requirements• Human Rights• Intellectual Property & Data Protection• International Trade Compliance• Investor Relations & Complying with Securities & Exchange Laws
• Philanthropic Donations• Product Cybersecurity• Product Integrity• Records Retention & Corporate Governance Data

Carrier 2023 ESG Report50

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report51

ESG Indices

ESG Focus Areas . . . . . . . . . . . . . . . . . . . . 52
Stakeholder Engagement . . . . . . . . . . . . . 53
ESG Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

Carrier 2023 ESG Report

ESG Indices

ESG Focus Areas
GRI 3-1, 3-2, 3-3Carrier takes a transparent and data-driven approach to identifying
what is important to our business, stakeholders and the environment.
It informs our products, operations, investments and long-term vision
to be the global leader in intelligent climate and energy solutions.
Carrier’s first ESG prioritization assessment was finalized in 2020
using a third-party sustainability consultancy. It involved conducting
and analyzing interviews, surveys and other sources to prioritize andvalidate ESG topics significant to Carrier.
The topics to the right were prioritized based on the relative
importance to the company and external stakeholders. Carrier
recognizes the ESG and sustainability disclosure landscape is rapidly
evolving, and we will continue to reassess these reporting topics.

Economic

Environmental

Products• Ethics and compliance• Corporate governance• Tax transparency• Climate change• Environmental• Innovation and efficiency• Product safety and quality• Cybersecurity andresponsibility

data privacy

Social &Workforce• Stakeholder engagement• Talent attraction
and retention• Occupational healthand safety• Inclusion and diversity• Human and labor rights• Community engagement
and investment

52

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

Stakeholder Engagement
GRI 2-25, 2-29, 413-1

Carrier advances the long-term interests of ourcompany and our shareowners by responsibly
addressing the concerns of other stakeholders,
including our employees, customers, suppliersand communities. We engage with stakeholders
to drive continuous improvement in our products
and operations, and to support our ESG issueprioritization process. Apart from ongoing direct
engagement, stakeholders can contact Carrier
anonymously by phone or online through our
Speak Up program or through various channels
accessible via our corporate website.

Employees

We encourage feedback from our employees through regular Pulse surveys, town hall meetings, Employee Resource
Groups, development conversations, online portals and confidential channels where employees can raise sensitive issues,seek guidance and report misconduct.

Customers

We seek customer input through continuous dialogue, product and service training programs, dealer and distributor
councils, and a variety of customer surveys. We use that information to improve our products, services and operations.

Investors

We believe in transparent and open communications with investors. We regularly engage with our shareowners on our
financial performance, governance, strategy, and ESG performance and practices.

Suppliers

We actively collaborate with our network of suppliers. We are members of several industry organizations, attend national
and local conferences, and encourage suppliers to participate in our Supplier Excellence program to improve theiroperating performance and growth. Our expectations are aligned through our Supplier Code of Conduct.

Government

Our government relations initiatives educate and inform officials on a range of public policy issues important to ourbusinesses. We annually disclose federal and state lobbying expenditures.

Communities

We support civic, cultural, economic and social welfare organizations around the world, investing in communities throughcash and in-kind donations, including the Carrier Matching Gifts Program, as well as volunteering our time and talent.

53

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

GovernanceMemberships & Associations
GRI 2-28

Carrier maintains strategic memberships and associations while evaluating opportunities for additional contributions and leadership.
Through these memberships, our leaders and employees stay at the forefront of sharing best practices and evolving trends.
We are proud to be a member of several key industry and issue-specific organizations, including:• Air-Conditioning, Heating, and Refrigeration Institute• The Alliance for Responsible Atmospheric Policy• Alliance to Save Energy• America Is All In• American Council for an Energy-Efficient Economy• American Society of Heating, Refrigerating and
Air-Conditioning Engineers• BuildingAction• Business Council• Business Roundtable• Confederation of Indian Industry• Cool Coalition• The Council of Gas Detection and Environmental Monitoring• Council on Tall Buildings and Urban Habitat• Euralarm• European Heat Pump Association• European Partnership for Energy and the Environment• Fire Industry Association• Fire Suppression Systems Association• Global Cold Chain Alliance• Global Food Cold Chain Council• International WELL Building Institute• National Association of Manufacturers• National Association of State Energy Officials• National Fire Protection Association• Product Environmental Profiles Association• [Re]Build America’s School Infrastructure Coalition• Responsible Minerals Initiative• Society of Fire Protection Engineers• U.S. Green Building Council• Urban Green Council• World Green Building Council

ESG Indices

Carrier 2023 ESG Report54

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

55

ESG Data
GRI Content Index
Reporting Period: January 1, 2022, to December 31, 2022
GRI 1: Foundation 2021
The GRI Content Index references where ESG progress aligns with the United Nations Sustainable Development Goals (SDGs).

GRI Standard

Disclosure

Description

Location/Direct Answer

The organization and its reporting practices

GRI 2:
General Disclosures

2-1

Organizational details

Carrier Global Corporation
Form 10-K, p. 10 (Corporate Information)
Carrier is headquartered in Palm Beach Gardens, Florida, U.S.A.
Form 10-K, p. 4 (Business)

2-2

Entities included in the organization’ssustainability reporting

Carrier ESG Report (About This Report)

2-3

Reporting period, frequency and contact point

January 1, 2022 - December 31, 2022, except where otherwise noted.
Reporting is conducted annually.
Form 10-K (Front Cover)July 26, 2023
Contact: corporateresponsibility@carrier.com

2-4

Restatements of information

Carrier ESG Report (About This Report)

2-5

External assurance

At this time, Carrier does not have our Environmental, Social & Governance Report
externally assured.

Activities and workers			
2-6

Activities, value chain and otherbusiness relationships

Form 10-K, p. 4 (Business)
Form 10-K, p. 7 (Raw Materials and Supplies)
Form 10-K, p. 7 (Joint Ventures and Strategic Relationships)

2-7

Employees

In 2022, excluding Toshiba Carrier Corp. employees, the workforce was ~47,000 (Global Workforce).

Related SDGs

Table of Contents

GRI Standard

Introduction

Innovation & Solutions

Disclosure

Operations

PeopleCommunities

Description

Governance

ESG Indices

Carrier 2023 ESG Report

Location/Direct Answer

Related SDGs

Governance

GRI 2:
General Disclosures

56

2-9

Governance structure and composition

Carrier ESG Report (ESG Governance & Oversight)
Carrier ESG Report (The Board's Role in Risk Management)
Carrier 2023 Proxy Statement, pp. 20-24 (Corporate Governance)

SDG 5, SDG 16

2-10

Nomination and selection of the highest
governance body

Carrier 2023 Proxy Statement, pp. 14-15 (Board Refreshment and Nomination Process)SDG 5, SDG 16

2-11

Chair of the highest governance body

Carrier ESG Report (Leadership)
Carrier 2023 Proxy Statement, p. 12 (Director Independence)
Carrier Global Corporation Director Independence Policy

2-12Role of the highest governance body in overseeing
the management of impacts

Carrier ESG Report (ESG Governance & Oversight)
Carrier 2023 Proxy Statement, p. 21 (Enhanced Oversight of ESG)

2-13

Delegation of responsibility for managing impacts

Carrier ESG Report (ESG Governance & Oversight)

2-14

Role of the highest governance body insustainability reporting

Carrier ESG Report (ESG Governance & Oversight)
Carrier ESG Report (The Board’s Role in Risk Management)

2-15

Conflicts of interest

Carrier Corporate Governance Principles, pp. 4-5(Conflicts of Interest and Related Person Transactions)

2-16

Communication of critical concerns

Carrier ESG Report (Ethics & Compliance – Reporting and Transparency)
Carrier Proxy Statement, p. 22 (Board Responsibilities and Meetings)

2-17

Collective knowledge of the highest governance body

Carrier ESG Report (ESG Governance & Oversight)
Carrier Proxy Statement, pp. 15-19 (Nominees for the 2023 Annual Meeting)

2-18

Evaluation of the performance of the highest
governance body

Carrier Corporate Governance Principles, pp. 8-9(Evaluation of the Chief Executive Officer and/or the Chairman)
Carrier 2023 Proxy Statement, p. 14 (The Board’s Self-Evaluation Process)SDG 16

SDG 16

Table of Contents

GRI Standard

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG IndicesDisclosure

Description

Location/Direct Answer

2-19

Remuneration policies

Carrier 2023 Proxy Statement, pp. 23, 27-28(Audit Committee, Compensation Committee, Compensation of Directors)

2-20

Process to determine remuneration

Carrier 2023 Proxy Statement, pp. 23, 27-28(Audit Committee, Compensation Committee, Compensation of Directors)

2-21

Annual total compensation ratio

Carrier 2023 Proxy Statement, pp. 53-55 (CEO Pay Ratio)

Carrier 2023 ESG Report

Related SDGs

Strategy, policies and practices
2-22Statement on sustainable development strategy

Carrier ESG Report (A Message From Our Chairman & Chief Executive Officer)
Carrier ESG Report (Corporate Policy Manual)
Carrier ESG Report (Human Rights)

GRI 2:
General Disclosures

2-23

Policy commitments

Ownership and approval, responsibilities and coverage are included within eachof the listed policy documents.
Carrier Corporate Policy Manual
Carrier ESG Report (Corporate Policy Manual)

2-24

2-25

Embedding policy commitments

Processes to remediate negative impacts

Each of Carrier's Corporate Policies for responsible business conduct include their boundary,allocation of responsibilities and approvals and are integrated into organizational strategies,
operational policies and procedures.
Carrier ESG Report (Stakeholder Engagement)
Carrier ESG Report (Ethics & Compliance)
Carrier ESG Report (Health & Safety)
Carrier Ethics and Compliance
Carrier’s Speak Up program57

SDG 16

Table of Contents

Introduction

GRI Standard

GRI 2:
General Disclosures

Innovation & Solutions

Disclosure

Operations

PeopleCommunities

Governance

ESG Indices

Description

Location/Direct Answer

2-26

Mechanisms for seeking advice and raising concerns

Carrier ESG Report (Stakeholder Engagement)
Carrier ESG Report (Ethics & Compliance)
Carrier ESG Report (Government Relations & Public Policy Activities)
Carrier Ethics and Compliance
Carrier's Speak Up program

2-27

Compliance with laws and regulations

Carrier ESG Report (Ethics & Compliance)
Form 10-K, p. 8 (Compliance with the Regulation of our Business and Operations)

2-28

Membership associations

Carrier ESG Report (Memberships & Associations)

Carrier 2023 ESG Report

Related SDGs

Stakeholder Engagement

GRI 3:
Material Topics

GRI 201:
Economic Performance

58

2-29

Approach to stakeholder engagement

Carrier ESG Report (Stakeholder Engagement)

SDG 162-30

Collective bargaining agreements

Form 10-K, p. 8 (Human Capital Management)

SDG 8

3-1

Process to determine material topics

Carrier ESG Report (ESG Focus Areas)

3-2

List of material topics

Carrier ESG Report (ESG Focus Areas)

3-3Management of material topics

Carrier ESG Report (ESG Focus Areas)
Carrier ESG Report (ESG Governance & Oversight)
Carrier ESG Report (Risk Management)

201-1

Direct economic value generated and distributed

Form 10-K

SDG 8, SDG 9

201-2

Financial implications and other risks andopportunities due to climate change

Carrier ESG Report (TCFD Disclosure)SDG 13

201-3

Defined benefit plan obligations and otherretirement plans

Form 10-K, p. 56 (Pension and Post-retirement Obligations)Table of Contents

Introduction

GRI Standard
GRI 203:
Indirect Economic Impacts

GRI 205:
Anti-corruption

GRI 206:
Anti-competitive Behavior

GRI 302:
EnergyInnovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

59

Disclosure

Description

Location/Direct Answer

Related SDGs

203-1

Infrastructure investments and services supported

Carrier ESG Report (Communities)

SDG 5, SDG 9,
SDG 11

203-2

Significant indirect economic impacts

Carrier ESG Report (Communities)

SDG 5, SDG 8

205-1

Operations assessed for risks related to corruption

Carrier ESG Report (Ethics & Compliance)
Carrier ESG Report (Anti-Corruption)
Carrier Code of Ethics

SDG 16

205-2

Communication and training about anti-corruption
policies and procedures

Carrier ESG Report (Ethics & Compliance)

SDG 16

205-3

Confirmed incidents of corruption and actions taken

Carrier strictly prohibits all forms of corruption. In 2022, we know of no incidents or legal cases
associated with bribery or corruption that would have a material impact on our company or
our stakeholders. All allegations of corruption are investigated thoroughly, fairly and impartiallywith the objective of identifying actions for continuous improvement.

SDG 16

206-1

Legal actions for anti-competitive behavior, anti-trust
and monopoly practices

Form 10-K, p. 88 (Other Matters)
Carrier ESG Report (Fair Competition)

SDG 16

302-1

Energy consumption within the organization

ESG Summary Data (Energy)

SDG 7, SDG 8,
SDG 12, SDG 13

302-3

Energy intensity

ESG Summary Data (Energy)
Carrier ESG Report (Energy & GHG Management)

SDG 7, SDG 8,
SDG 12, SDG 13

302-4

Reduction of energy consumption

Carrier ESG Report (Energy & GHG Management)

SDG 8, SDG 12,
SDG 13302-5

Reductions in energy requirements of products
and services

Carrier ESG Report (Energy Efficiency)

SDG 7, SDG 8,
SDG 12, SDG 13

Table of Contents

GRI Standard

GRI 303:
Water and EffluentsGRI 305:
EmissionsIntroduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

60

Disclosure

Description

Location/Direct Answer

Related SDGs

303-1

Interactions with water as a shared resource

Carrier ESG Report (Water)

SDG 6, SDG 12

303-2Management of water discharge-related impacts

Carrier ESG Report (Water)

SDG 6

303-3

Water withdrawal

ESG Summary Data (Water)
Carrier ESG Report (Water)

SDG 6

303-4

Water discharge

ESG Summary Data (Water)
Carrier ESG Report (Water)

SDG 6

303-5

Water consumption

ESG Summary Data (Water)
Carrier ESG Report (Water)

SDG 6

305-1

Direct (Scope 1) GHG emissions

ESG Summary Data (Greenhouse Gas Inventory)
Carrier ESG Report (Operational Performance Highlights)
Carrier ESG Report (Energy & Operational Carbon Footprint)

SDG 3, SDG 12,
SDG 13, SDG 14,
SDG 15305-2

Energy indirect (Scope 2) GHG emissions

ESG Summary Data (Greenhouse Gas Inventory)
Carrier ESG Report (Operational Performance Highlights)
Carrier ESG Report (Energy & Operational Carbon Footprint)

SDG 3, SDG 12,
SDG 13, SDG 14,
SDG 15305-3

Other indirect (Scope 3) GHG emissions

ESG Summary Data (Greenhouse Gas Inventory)
Carrier ESG Report (Emission Sources in Carrier’s Value Chain)

SDG 3, SDG 12,
SDG 13, SDG 14,
SDG 15305-4

GHG emissions intensity

ESG Summary Data (Greenhouse Gas Inventory)
Carrier ESG Report (Operational Performance Highlights)

SDG 13, SDG 14,
SDG 15305-5Reduction of GHG emissions

Carrier ESG Report (Energy & Operational Carbon Footprint)

SDG 13, SDG 14,
SDG 15

Table of Contents

Introduction

GRI Standard

GRI 306:
Waste

GRI 308:
Supplier Environmental Assessment

GRI 401:
Employment

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

61

Disclosure

Description

Location/Direct Answer

Related SDGs

306-1

Waste generation and significant
waste-related impacts

Carrier ESG Report (Waste)

SDG 3, SDG 6,
SDG 12, SDG 14

306-2Management of significant waste-related impacts

Carrier ESG Report (Circular Business Models)
Carrier ESG Report (Waste)

SDG 3, SDG 6,
SDG 12306-3

Waste generated

ESG Summary Data (Waste)

SDG 3, SDG 6,
SDG 12, SDG 14,
SDG 15306-4

Waste diverted from disposal

ESG Summary Data (Waste)
Carrier ESG Report (Waste)

SDG 3, SDG 12

306-5

Waste directed to disposal

ESG Summary Data (Waste)
Carrier ESG Report (Waste)

SDG 6, SDG 14,
SDG 15308-1

New suppliers that were screened using
environmental criteria

Carrier ESG Report (Engaging Our Supply Chain)

308-2

Negative environmental impacts in the supply chain
and actions taken

Carrier ESG Report (Engaging Our Supply Chain)

401-1

New employee hires and employee turnover

Carrier ESG Report (Global Workforce)
ESG Summary Data (Employees)

SDG 5, SDG 8,
SDG 10Carrier ESG Report (Employee Well-Being)
Carrier Benefits
401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

Carrier offers market competitive total rewards – pay and benefits as well as incentive
programs – for all employees, rewarding employees for successful performance against ourlong- and short-term financial goals. In 2022, 60% of our management and professional employees,
including executives, were eligible for annual incentive plans, with key metrics and targets aligned
to our financial targets.

SDG 3, SDG 5,
SDG 8Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG ReportGRI Standard

Disclosure

Description

GRI 401:
Employment

401-3

Parental leave

403-1

Occupational health and safety management system

Carrier ESG Report (Health & Safety)
Carrier ESG Report (Environment, Health & Safety Management)

SDG 8

403-2

Hazard identification, risk assessment
and incident investigation

Carrier ESG Report (Health & Safety)

SDG 8

403-3

Occupational health services

Carrier ESG Report (Occupational Health)

SDG 8

403-4

Worker participation, consultation andcommunication on occupational health and safety

Carrier ESG Report (Health & Safety)
Health and Safety
Environment, Health & Safety Policy

SDG 8

403-5

Worker training on occupational health and safety

Carrier ESG Report (Training & Development)

SDG 8

403-6

Promotion of worker health

Carrier ESG Report (Occupational Health)

SDG 3

403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

Carrier ESG Report (Occupational Health)

SDG 8

403-8

Workers covered by an occupational health andsafety management system

Carrier ESG Report (Environment, Health & Safety Management)

SDG 8

403-9

Work-related injuries

ESG Summary Data (Employees)
Carrier ESG Report (Health & Safety)

SDG 3, SDG 8,
SDG 16

GRI 403:
Occupational Health and Safety

Location/Direct Answer

Related SDGs

Carrier Parental Leave
In 2022, 206 U.S. employees took the maternity/parental leave benefit. 85% of those employees
were currently active as of the end of 2022.

62

SDG 5, SDG 8

Table of Contents

Introduction

GRI Standard

Innovation & Solutions

Operations

PeopleCommunities

Governance

ESG Indices

Carrier 2023 ESG Report

63

Disclosure

Description

Location/Direct Answer

Related SDGs

404-1

Average hours of training per year per employee

ESG Summary Data (Employees)
Carrier ESG Report (Development & Career Growth)

SDG 4, SDG 5,
SDG 8, SDG 10

404-2

Programs for upgrading employee skills andtransition assistance programs

Carrier ESG Report (Development & Career Growth)

SDG 4, SDG 8

404-3

Percentage of employees receiving regularperformance and career development reviews

Carrier ESG Report (Performance Management & Development Reviews)

SDG 4, SDG 8,
SDG 10

GRI 405:
Diversity and Equal Opportunity

405-1

Diversity of governance bodies and employees

Carrier ESG Report (Reduce the Gap)
Carrier 2023 Proxy Statement, p. 3 (Board Nominees)
Carrier ESG Report (Global Workforce)

SDG 5, SDG 8

GRI 413:
Local Communities

413-1

Operations with local community engagement,
impact assessments, and development programs

Carrier ESG Report (Stakeholder Engagement)

414-1

New suppliers that were screened usingsocial criteria

Carrier ESG Report (Engaging Our Supply Chain)
Carrier ESG Report (Supplier Diversity)

SDG 5, SDG 8,
SDG 16414-2

Negative social impacts in the supply chain andactions taken

Carrier ESG Report (Engaging Our Supply Chain)

SDG 5, SDG 8,
SDG 16

GRI 415:
Public Policy

415-1

Political contributions

Carrier 2023 Proxy Statement, p. 26 (Government Relations and Public Policy Activities)

SDG 16

GRI 416:
Customer Health and Safety

416-1

Assessment of the health and safety impacts ofproduct and service categories

Carrier ESG Report (Product Safety)

GRI 404:
Training and Education

GRI 414:
Supplier Social Assessment

Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

Carrier 2023 ESG Report

ESG Indices

ESG Summary Data
Greenhouse Gas Inventory
Unit

2022

2021

2020

tCO2e

187,559

229,973

186,812

Location-based

tCO2e178,786

187,630

196,033

Market-based

tCO2e145,354

195,052

182,964

Total Scope 1 and Scope 2 location-based

tCO2e366,345417,603382,845

Total Scope 1 and Scope 2 market-based

tCO2e332,913425,025

369,776

Carbon offsets

tCO2e

60,000120,000

0

Total Scope 1 and Scope 2 adjusted (market-based adjusted
for renewable energy and carbon offsets)

tCO2e

272,913305,025

369,776

Indirect (Scope 3)

tCO2e259,897,000

Purchased goods and services

tCO2e3,851,000

Capital goods

tCO2e

33,000Fuel and energy-related activities

tCO2e

47,000

Upstream transportation and distribution

tCO2e

1,146,000

Operational waste

tCO2e

39,000Use of sold products3

tCO2e

254,781,000tCO2e260,263,345

Direct (Scope 1) emissions (includes CO2, CH4, N20, HFC)
Indirect (Scope 2) emissions

GRI 305-1, 305-2:
Scope 1 and Scope 2
GHG emissions1

GRI 305-3:
Scope 3 GHG emissions2

Total GHG emissions4

We consolidate our GHG emissions using the operational control approach. Greenhouse gas emissions are tracked for sites procuring over $100,000 USD in energy per year. This is representative of our manufacturing sites, large headquarters,
distribution, and research and development center operations, but is not inclusive of our entire footprint. Sites under $100,000 USD energy procurement are estimated per U.S. Commercial Buildings Energy Consumption Survey. Survey Data factors
based on square footage and building type. Additionally, our GHG metrics are inclusive of vehicle emissions data compiled through our fleet reporting sites.
Source of location-based emission factors: International Energy Agency, 2021 version; Emissions & Generation Resource Integrated Database, 2022.							Source of market-based emission factors: Green-e Residual Mix Emission Rates, 2022; Association of Issuing Bodies, 2021.								Source of global warming potential (GWP) values: Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report, 2014. 								134,000 MWh of renewable energy credits generated from U.S.-based projects accounted for in 2022 in Scope 2 market-based calculations.

1

Source of Scope 3 GHG emission factors: U.S. Environmental Protection Agency Emission Factors for GHG Inventories, 2023; U.S. Environmentally Extended Input-Output Emission Factors v1.2 database, 2023; DEFRA GHG Conversion Factors, 2023.
Source of GWP values: IPCC Fifth Assessment Report, 2014.

2

3

The use of sold products category only considers emissions from refrigerant-based global HVAC and Refrigeration products, and North American furnace products.

Total GHG emissions includes Scope 1 emissions, Scope 2 location-based emissions and Scope 3 emissions.												
				
4

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Table of Contents

Introduction

Innovation & Solutions

Operations

PeopleCommunities

Governance

Carrier 2023 ESG Report

ESG Indices

EnergyGRI 302-1:
Energy consumption1
within the organization

Unit

2022

2021

2020

Purchased electricity

GJ

1,583,140

1,664,518

1,564,188

PropaneGJ

79,771

72,83550,048Natural gas

GJ

1,036,186

1,275,013

1,361,035

Butane

GJ

0

3,081

13,591Distillate oil

GJ

5,431

5,317

4,088

#4 Oil usage

GJ

210

276

122

Residual oil usage

GJ

0

0

0

Gasoline usage

GJ

1,479

1,728

1,107

Diesel fuelGJ

16,541

14,492

15,932

Purchased steam

GJ

46,40944,48535,781

Fleet vehicle gasoline

GJ

637,733

1,560,279

1,071,417

Self-generated electricity

GJ

1,289

1,436

1,199

Renewable sources

GJ

9,566

3,847

3,712

Total jet fuelGJ

154,156

106,934

71,994

Specialty fuel

GJ

0

34

0

Methodology:
Energy use is tracked for sites procuring over $100,000 USD in energy per year. This is representative of our manufacturing sites, large headquarters,
distribution, and research and development center operations, but is not inclusive of our entire footprint. Sites under $100,000 USD energy procurement are
estimated per the U.S. Commercial Building Energy Consumption Survey estimation factors based on square footage and building type.

1

The intensity figures are based on sites procuring over $100,000 USD in energy per year and include the energy consumption estimations for the sites under$100,000 USD estimated per U.S. Commercial Buildings Energy Consumption Survey.

2

GRI 302-3:
Energyintensity2

Unit

2022

2021

2020

Total energy consumed

GJ

3,571,911

4,754,278

4,194,215

Denominator

Million USD revenue

19,643

20,613

17,456

Energy intensity ratio
for the organization

GJ of energy/million
USD in sales

182

231

240

65

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Carrier 2023 ESG Report

ESG Indices

Water

Unit

2022

2021

2020

Total water discharge

ML

2,627

3,161

3,712

Surface water

ML

1,559

2,266

2,847

Groundwater

ML

28

131

115

0

Seawater

ML

0

0

0

0

0

Third-party water (total)

ML

1,040

764

749

1,211

860

850

ML

269

252

247

Unit

2022

2021

2020

Surface water

ML

0

0

0

ML

396

230

173

Groundwater

ML

48

0.1

4

Seawater

ML

0

0

0

Produced water

ML

0

0

0

Third-party water

ML

221

208

201

Unit

2022

2021

2020

ML

3,023

3,391

3,885

Surface water

ML

1,559

2,266

2,847

Groundwater

ML

253

265

188

SeawaterML00Produced waterML

0

Third-party waterML

Total water withdrawal

GRI 303-3a:
Water withdrawal

Total water withdrawal fromareas with water stress

GRI 303-4:
Water discharge
by destination

GRI 303-5:
Water consumption

Total water consumption

66

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ESG Indices67

Carrier 2023 ESG Report

Waste

GRI 306-3:
Waste
generated

GRI 306-4:
Waste
divertedfrom disposal

Unit

2022

2021

2020

metric tons (t)72,56068,043

66,238Nonhazardous waste

metric tons (t)70,22365,77964,450

Hazardous waste

metric tons (t)

2,338

2,264

1,788

Total weight

Unit

2022

2021

2020

Total waste disposal

metric tons (t)

8,132

7,638

6,612

Hazardous waste disposal, and a breakdown:

metric tons (t)

1,123

1,095

1,016

Incineration (with energy recovery)

metric tons (t)

292

124

36

Incineration (without energy recovery)

metric tons (t)

120

327

397

Landfilling

metric tons (t)

181

127

136

Other disposal operations

metric tons (t)

529

518

447

Total nonhazardous waste disposal,
and a breakdown:

metric tons (t)

7,009

6,543

5,596

Incineration (with energy recovery)

metric tons (t)

2,071

821

4

Unit

2022

2021

2020

Total waste diverted from disposal

metric tons (t)64,42960,40559,626

Total weight of hazardous waste diverted,and a breakdown:

metric tons (t)

1,215

1,169

772

Preparation for reuse

metric tons (t)

166

36

4

Incineration (without energy recovery)

metric tons (t)

11

1,063

1,812

Recycling

metric tons (t)

1,049

1,133

768

Landfilling

metric tons (t)

4,757

4,109

3,200

Other recovery operations

metric tons (t)

0

0

0

Other disposal operations

metric tons (t)

170

550

581

metric tons (t)63,214

59,23658,853

Preparation for reuse

metric tons (t)

64

204

80

On-sitemetric tons (t)

0

0

0

Recycling

metric tons (t)63,14859,032

58,773Off-site

metric tons (t)

8,132

7,638

6,612

Other recovery operations

metric tons (t)

1

0

0

On-sitemetric tons (t)

0

0

0

Off-site

metric tons (t)64,42960,40559,626

Total nonhazardous waste diverted,and a breakdown:

Total hazardous waste and nonhazardous
waste diverted:

GRI 306-5:
Waste
directed
to disposal

Total hazardous waste and nonhazardous
waste disposal:

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Carrier 2023 ESG Report

ESG Indices

Employees

GRI 2-7:
Employees

GRI 404-1:
Average hours of
training per year
per employee
for 2022

Region

2022

2021

2020

Region

2022

2021

2020

Americas

43%

34%

34%

Americas

20.8%

16.7%

11.4%

EMEA

27%

37%

40%

EMEA

9.4%

8.3%

6.1%

APAC

30%

29%

26%

APAC

14.3%

15.9%

9.0%

Total

15.6%

13.3%

8.7%

GRI 401-1:
Employee turnover
Gender

2022

2021

2020

Female

29%

27%

27%

Gender

2022

2021

2020

Male

71%

73%

73%

Female

18.6%

15.6%

9.7%

Male

14.4%

12.5%

8.0%

Total

15.6%

13.3%

8.7%

GenderExecutives

Professionals

All non-production
employees

Female

12

13

12

Male

10

12

12

Overall

12

13

12

GRI 403-9:
Work-related
injuries1

The number of fatalities as a resultof work-related injury
The number and rate2 of recordable
work-related injuries

Methodology:
Carrier collects and maintains its work-related incident records in a digitized injury management system, including injury analysis information. Carrier has an
injury management standard and a data reporting standard that determine how incidents are classified, escalated, managed, reported, analyzed and periodicallyverified globally. Carrier adopts the U.S. OSHA injury and illness recordability criteria for injury classification.

1

2

Number of fatalities, lost-time cases, restricted duty cases and medical treatment cases x 200,000/total hours worked.

Unit

2022

2021

2020

Employee000Contractor

0

0

1

Number

161

247

222

Rate

0.31

0.38

0.37

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ESG Indices

69

SASB DisclosureThis report was prepared following the SASB Resource Transformation – Electrical & Electronic Equipment Standard (Version 2018-10). Due to the nature of Carrier’s diversified business in industrial manufacturing,
Carrier also included metrics aligned to other industries that might be of interest to our investors, including Resource Transformation – Industrial Machinery and Goods (Version 2018-10). Carrier will continue to evaluate theapplicability of additional SASB metrics where warranted. These metrics are reported using the reporting entity described in the Annual Report on Form 10-K for the year ending 2022 (Form 10-K) for Carrier. All data is as ofDecember 31, 2022 for calendar year 2022.

Topic

Accounting MetricCode(1) Total energy consumed

Energy Management(2) Percentage grid electricity

RT-EE-130a.1, RT-IG-130a.1(3) Percentage renewable

Hazardous Waste Management
Workforce Health and Safety1

Amount of hazardous waste generated
Percentage recycled(1) Total recordable incident rate(2) Fatality rate - employees

Percentage of eligible products, by revenue, that meet
ENERGY STAR criteria

RT-EE-150a.1

RT-IG-320a.1

RT-EE-410a.2

Unit of Measure

Carrier 2022 Response

GJ

3,571,911

Percentage

44%

Percentage

0.27%

Metric tons (t)2,338Percentage

52%

Rate

0.31

Rate

0

Percentage by revenue

In 2022, approximately 50% of our HVAC and Transport
Refrigeration revenue was clean technology.2
47% of our sales generated by Carrier’s U.S.
Residential HVAC business was from ENERGY
STAR-qualified products.

Reporting currency

Carrier defines clean technology revenue as products
and services sold that facilitate decarbonization
through lower energy consumption, electrification
and/or the transition to lower global warming
potential refrigerants in built environments andrefrigerated transport.

Product Lifecycle Management
Revenue from renewable energy-related and energy
efficiency-related products

1

Denotes a modified metric based on Carrier's reporting systems.

2

Excludes Toshiba Carrier Corp.

RT-EE-410a.3

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Carrier 2023 ESG Report

70

Topic

Accounting Metric

Code

Unit of Measure

Carrier 2022 Response

Materials Sourcing

Description of the management of risks associated with theuse of critical materials

RT-EE-440a.1, RT-IG-440a.1

Discussion and analysis

Carrier ESG Report (Sustainable Product Design)

Description of policies and practices forprevention of: (1) corruption and bribery and (2) anticompetitive behavior

RT-EE-510a.1

Discussion and analysis

Carrier ESG Report (Ethics & Compliance)

Total amount of monetary losses as a result of legal proceedings
associated with bribery or corruption

RT-EE-510a.2

Reporting currency

In 2022, we know of no incidents or legal cases
associated with bribery or corruption that would havea material impact on our company or our stakeholders.

Business Ethics

Total amount of monetary losses as a result of legal proceedings
associated with anticompetitive behavior regulations

RT-EE-510a.3

Reporting currency

In 2022, we know of no incidents or legal cases
associated with anticompetitive behavior regulations
that would have a material impact on our company or
our stakeholders.

Remanufacturing Design& Services

Revenue from remanufactured products and remanufacturing services

RT-IG-440b.1

Reporting currency

Carrier ESG Report (Circular Business Models)

Activity Metrics

Number of employees

RT-EE-000.b, RT-IG-000.b

Number

In 2022, excluding Toshiba Carrier Corp. employees,
the workforce was ~47,000.

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Governance

ESG Indices

Carrier 2023 ESG Report

TCFD Disclosure

TCFD Disclosure

Reference

Governance - Disclose the organization's governance around climate-related risks and opportunitiesa) Describe the board’s oversight of climate-related risks and opportunities.

Carrier 2023 Proxy Statement, pp. 20-26 (Corporate Governance)
Carrier 2023 CDP Climate Change Response (C1.1a, C1.1b)
Carrier Corporate Governance Principles, pp. 1-2 (Responsibilities of the Board)b) Describe management’s role in assessing and managing climate-related risks
and opportunities.

Carrier ESG Report (ESG Governance & Oversight)
Carrier 2023 CDP Climate Change Response (C1.2)

Strategy - Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's business, strategy and financial planning where such information is materiala) Describe the climate-related risks and opportunities the organization
has identified over the short, medium and long term.

Form 10-K, pp. 10-26 (Part 1, Item 1A. Risk Factors)
Carrier 2023 CDP Climate Change Response (C2.1a, C2.3, C2.3a, C2.4a)b) Describe the impact of climate-related risks and opportunities on the organization’s
businesses, strategy and financial planning.

Form 10-K, pp. 10-26 (Part 1, Item 1A. Risk Factors)
Carrier 2023 CDP Climate Change Response (C2.3a, C2.4a, C3.1, C3.2a, C3.2b, C3.3, C3.4)c) Describe the resiliency of the organization’s strategy, taking into considerationdifferent climate-related scenarios, including a 2°C or lower scenario.

Carrier ESG Report (Innovation & Solutions)
Carrier 2023 CDP Climate Change Response (C3.2, C3.2a, C3.2b)

Risk Management - Disclose how the organization identifies, assesses and manages climate-related risksa) Describe the organization’s processes for identifying and assessing climaterelated risks.

Carrier 2023 Proxy Statement, pp. 20-26 (Corporate Governance)
Carrier 2023 CDP Climate Change Response (C2.1, C2.1a, C2.2, C2.2a, C2.3a, C2.4a)b) Describe the organization’s processes for managing climate-related risks.

Carrier 2023 Proxy Statement, pp. 20-26 (Corporate Governance)
Carrier 2023 CDP Climate Change Response (C2.1, C2.2)c) Describe how processes for identifying, assessing and managing climate-relatedrisks are integrated into the organization’s overall risk management.

Carrier 2023 Proxy Statement, pp. 20-26 (Corporate Governance)
Carrier 2023 CDP Climate Change Response (C2.1, C2.2)

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PeopleCommunities

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ESG Indices

Reference

Metrics & Targets - Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is materiala) Disclose the metrics used by the organization to assess climate-related risks andopportunities in line with its strategy and risk management process.

Carrier ESG Report (Innovation & Solutions)
Carrier ESG Report (Operations)
Carrier 2023 CDP Climate Change Response (C4.2, C4.2b, C9.1)b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and therelated risks.

ESG Summary Data (Greenhouse Gas Inventory)
Carrier 2023 CDP Climate Change Response (C6.1, C6.3, C6.5, C6.5a)c) Describe the targets used by the organization to manage climate-related risks andopportunities and performance against targets.

Carrier ESG Report (Innovation & Solutions)
Carrier 2023 CDP Climate Change Response (C4.1, C4.1a, C4.1b, C4.2, C4.2a)

Carrier 2023 ESG Report72

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ESG IndicesCautionary Statement:This report contains forward-looking statements (including statements that constitute forward-looking statements under the securities laws).
These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial
performance, based on assumptions currently believed to be valid. Forward-looking statements may include, among other things, statements
relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial
performance or potential future plans, strategies or transactions of Carrier, statements with respect to current and future potential implicationsof corporate social responsibility and sustainability topics, Carrier’s ESG initiatives (including its climate-related matters and goals) and otherstatements that are not historical facts. Many of these forward-looking statements are based upon certain assumptions, estimates, developing
standards and assessments made by our management in light of their experience and perception of historical trends, current economic andindustry conditions, expected future developments and other factors they believe to be appropriate. Furthermore, all forward-looking statements
involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forwardlooking statements. These risks include macroeconomic factors and megatrends, limitations and uncertainties inherent in climate andsustainability science (for example, estimation limitations in metrics related to Carrier’s estimated emissions, including Scope 3 emissions, andother risks and uncertainties discussed in Item 1A of Carrier’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022). For thosestatements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation ReformAct of 1995. The forward-looking statements speak only as of the date of this report. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional
information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements isdisclosed from time to time in our other filings with the Securities and Exchange Commission (SEC). Inclusion of information in this report is not
an indication that the subject or information is material to our business or operating results. “Material” for the purposes of this report should not
be read as equating to any use of the word in our other reporting or filings with the U.S. Securities and Exchange Commission (SEC). Case studies
presented within the report are for illustrative purposes only and have been selected in order to provide examples illustrating Carrier’s applicationof its ESG policies and procedures and do not purport to be a complete list thereto.
Proposed Climate-Related Disclosure Rules
On March 21, 2022, the SEC proposed climate-related disclosure requirements that would, among other things, require disclosure of direct andindirect greenhouse gas emissions, with certain emissions disclosures subject to third-party attestation requirements; climate-related scenario
analysis (if the issuer conducts scenario analysis), together with qualitative and quantitative information about the hypothetical future climate
scenarios used in its analysis; climate transition plans or climate-related targets or goals, along with disclosure of progress against any such plans,
targets or goals; climate-related risks over the short, medium and long term; qualitative and quantitative information regarding climate-relatedrisks and historical impacts in audited financial statements; corporate governance of climate-related risks; and climate-related risk-management
processes. We are assessing the potential impacts of this proposal. The information presented in this report has not been collected or reported
pursuant to these SEC-proposed climate-related disclosure requirements.

Carrier 2023 ESG Report73Carrier Global Corporation and its subsidiaries’ names, abbreviations
thereof, logos, and product and service designators are either theregistered or unregistered trademarks or trade names of Carrier Global
Corporation and its affiliates and subsidiaries. Names of other companies,
abbreviations thereof, logos of other companies, and product and service
designators of other companies are either the registered or unregisteredtrademarks or trade names of their respective owners.