exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: corruption
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
CODE OF ETHICS
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 our
business 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
Keyword: corruption
Anti-Corruption • Complying with all applicable data privacy laws.
Our security team remains vigilant and continually improves cyber • Completing privacy impact assessments for new and modified tools,
GRI 205-1
capabilities throughout our organization, following U.S. Securities
service providers, and products and services that involve collecting
and Exchange Commission guidance on cybersecurity. We conduct
Carrier conducts business solely on the merits. We will not improperly or processing personal information.
regular assessments to validate defensive measures and use a
influence anyone to obtain or retain business or secure any other • Completing Privacy by Design assessments to consider privacy
comprehensive risk management framework to enable effectiv
Keyword: corruption
corruption and support the global development of fair markets.
report suspicious cyber activity. Our investments in third-party risk
Our success relies on abiding by our core values – regardless of • Using appropriate security safeguards.
management, vulnerability management, threat intelligence and 24/7
what might be seen as customary or acceptable in a given market.
security operations are all intended to address cyber risks and threats. • Adopting and maintaining detailed policies and Binding Corporate
Rules, which are rules for data privacy compliance approved by
The Audit Committee of Carrier’s Board of Directors reviews Carrier’s European regulators.
privacy and cybersecurity compliance programs and full Board reviews
• Providing regular traini
Keyword: corruption
the local, state or national level or with international • Anti-Corruption
governmental organizations.
• Anti-Money Laundering
The Board believes that participating in the legislative and • Antitrust Compliance
regulatory process is an important part of responsible corporate
• Climate Change
citizenship and that Carrier and our employees have a legitimate
interest in public policy debates. The Governance Committee and • Conflicts of Interest and Consultation/Approval Request
Board review and monitor the company’s government relations • Data Privacy
activities, including those of the Carrier political action committee
• Enterprise Risk Management
(PAC). These activities are governed by and conducted in accordance
with the standards articulated in our Code of Ethics and corporate • Environment, Health & Safety
poli
Keyword: corruption
205-1 Operations assessed for risks related to corruption Carrier ESG Report (Anti-Corruption) SDG 16
Carrier Code of Ethics
Communication and training about anti-corruption
GRI 205: 205-2 Carrier ESG Report (Ethics & Compliance) SDG 16
policies and procedures
Anti-corruption
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
205-3 Confirmed incidents of corruption and actions taken SDG 16
our stakeholders. All allegations of corruption are investigated thoroughly, fairly and impartially
with the objective of identifying actions for continuous improvement.
GRI 206: Legal actions for anti-competitive behavior, anti-trust Form 10-K, p. 88 (Other Matters)
206-1 SDG 16
Anti-competitive Behavior and
Keyword: corruption
prevention of: (1) corruption and bribery and (2) anticompetitive behavior
In 2022, we know of no incidents or legal cases
Total amount of monetary losses as a result of legal proceedings
RT-EE-510a.2 Reporting currency associated with bribery or corruption that would have
associated with bribery or corruption
Business Ethics a material impact on our company or our stakeholders.
In 2022, we know of no incidents or legal cases
Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations
RT-EE-510a.3 Reporting currency
associated with anticompetitive behavior regulations that would have a material impact on our company or
our stakeholders.
Remanufacturing Design
Revenue from remanufactured products and remanufactur
Keyword: tax
using a third-party sustainability consultancy. It involved conducting • Tax transparency • Cybersecurity and • Talent attraction
and analyzing interviews, surveys and other sources to prioritize and data privacy and retention
validate ESG topics significant to Carrier.
• Occupational health
The topics to the right were prioritized based on the relative and safety
importance to the company and external stakeholders. Carrier • Inclusion and diversity
recognizes the ESG and sustainability disclosure landscape is rapidly
• Human and labor rights
evolving, and we will continue to reassess these reporting topics.
• Community engagement
and investmentTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 53
Stakeholder Engagement
GRI 2-25, 2-29,
Keyword: tax
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 implications
of corporate social responsibility and sustainability topics, Carrier’s ESG initiatives (including its climate-related matters and goals) and other
statements 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 and
industry conditions, expected future developments and other factors they believe to be appropriate. Furthermore, all forward-looking statem
Keyword: governance
SOCIAL & GOVERNANCE
2023 REPORTInnovating for a sustainable future through
intelligent climate and energy solutions.
The actions we take today will shape a sustainable future for
generations to come. Carrier is innovating to address the planet’s
most urgent challenges while meeting the needs of customers and
supporting 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 in
buildings, in homes and across the cold chain.
We are progressing toward our own ambiti
Keyword: governance
Together, we are innovating for a sustainable future.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 3
Table of Contents
About This Report
Introduction 3 People 30
GRI 2-2, 2-4
About This Report ................................................. 3 Culture & Engagement ...................................... 31 Carrier’s 2023 Environmental, Social & Governance (ESG) Report covers performance for calendar
year 2022. Where relevant, we include information from 2023. The information and data included
A Message From Our Chairman Inclusion & Diversity .......................................... 33
in this report are based on the best available information and data at publication and are subject to
& Chief Executive Officer .................................... 4 Development & Career Growth ......................
Keyword: governance
Governance 45 Accounting Standards Board (SASB) Standards and the Task Force on Climate-related Financial
Advancing Toward 1 Gigaton ........................... 11
Disclosures (TCFD).
Sustainable Investments ................................... 11
Sustainable Solutions ........................................ 13 Leadership ............................................................ 46 For further details on our ESG strategy, policies and programs, please visit corporate.carrier.com.
Product Responsibility ....................................... 17 ESG Governance & Oversight ......................... 46
Risk Management ................................................ 47
Operations 20
Ethics & Compliance ......................................... 48
Cor
Keyword: governance
Responsible Supply Chains .............................. 28Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 4
Our planet is at a critical juncture. Climate change five years, driving heat pump adoption in European confidence in sustainable outcomes. The Carrier
is causing irreparable damage to the environment, homes from 8.5 million to 40 million by 2030. Way remains at the core of everything we do. It
and the need to transition to renewable energy And, roughly 70% of European Union customers defines our vision, reaffirms our values, describes
has never been greater. At Carrier, the purposeful are actively reducing energy consumption at home. the behaviors that create a winning culture, and
transformation of our portfolio will create a true establishes how we work and win together.
Sustainability is at Carrier
Keyword: governance
double heat pumps to 10 million units over the nextTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 5
About Carrier 2022 Net Sales Breakdown
Carrier is a global leader in intelligent climate and energy solutions, with a diverse and world-class
Net sales by business segment1
workforce. 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 to
strengthen our position in the markets we serve.
$13.4B $3.9B $3.6B
$20.4B $539M
2022 NET SALES 2022 RESEARCH
and DEVELOPMENT
HVAC 64% Refrigeration 19% Fire & Security 17%
75+ 100+
BRANDS NEW PRODUCTS
Net sales by region Net sales
Keyword: governance
Read in conjunction with Form 10-K.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 6
Secular Trends Programs Sustainability & ESG
Driving Growth GRI 3-3
Carrier lives at the intersection of secular trends, At Carrier, we deliver sustainable and intelligent outcomes for people around the world. Carrier takes a holistic, three-pillar approach to
including climate change and sustainability, We do this through our Healthy Buildings, Healthy Homes and Connected Cold Chain programs, sustainability and ESG:
energy transition, the adoption of alternative-fuel bringing together expertise from across our company and solutions from our industry-leading
solutions accelerated by government regulations brands to solve global challenges and inspire confidence. Sustainable Solutions
and incentives, an
Keyword: governance
Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 7
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.
Achieve carbon neutral operations.
Reduce energy intensity by 10% across our operations.
Achieve water neutrality in our operations, prioritizing water-scarce locations.
Deliver zero waste to landfill from manufacturing locations.
Establish a responsible supply chain program and assess key factory suppliers against program criteria.
Exceed benchmark employee engagement.
Achieve gender parity in senior leadership roles.
Achieve a diverse workforce that represents the communities in which we live and work.
Foster the gr
Keyword: governance
3 Global women and U.S. People of Color.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 8
2022 ESG Highlights ESG Recognition
Throughout our global operations, we are minimizing our environmental footprint and making investments that improve society. We hold ourselves accountable Ranked No. 9 of
to 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. 100 Most Sustainable Companies
Barron’s, 2022
Named to
Environmental Social Governance
Carbon Clean200
Corporate Knights, 2022
212M+ 49% 44%
Among the
Best Places to Work for
metric tons of GREENHOUSE GAS GLOBAL EXECUTIVE DIVERSITY1 BOARD OF DIRECTOR DIVERSITY1,2
EMISSIONS AVOIDED from products LGBTQ+ Equality
sold and avoided food loss since 2
Keyword: governance
2 As of 4/20/2023.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 9
Innovation &
Solutions
Carrier innovates to accelerate the development of
intelligent 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 .............. 17Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 10
Greenhouse Gas Emissions Emission Sources in Carrier’s Value Chain
GRI 305-1, 305-2, 305-3
HVAC acco
Keyword: governance
carbon neutral operations. Combined, these targetsTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 11
Advancing Toward 1 Gigaton Sustainable Investments
GRI 3-3
We set an ambitious goal to help our customers avoid more than 1 gigaton of GHG emissions from their Research & Development
carbon footprint by 2030.
Our key strategic innovation and technology focus areas support Carrier’s position as a leader in intelligent
How We Are Progressing Toward Our Gigaton Goal climate and energy solutions. We are developing more connected and sustainable solutions, including new
offerings on our Abound and Lynx platforms.
• Investing over $2 billion to develop healthy, safe, sustainable and intelligent building and cold chain
In addition, the acquisition of Toshiba Carrier Corp. advances our product development in
Keyword: governance
SOLUTIONS by 2030 DEVELOPMENT since 2020Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 12
Sustainable 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 thorough Environmental product declarations can help customers make
understanding of the use, performance and longevity of our products. We design with the product lifecycle in mind. We also continuously improve informed purchasing decisions. The declarations focus on GHG
our tools and develop advanced methods to design sustainable products that improve quality and safety and reduce time to market. We pursue new emissions, energy use, water consumption and material content.
capabi
Keyword: governance
Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 13
Carrier invested in several companies, including Transaera, which is
developing a new class of affordable, energy-efficient, sustainable
cooling systems. Transaera’s novel desiccant technology uses a unique
sponge-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 the
material for the next cycle. Transaera and Carrier intend to use this
technology to develop ultra-efficient climate systems.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 14
Design Energy Efficiency
GRI 302-
Keyword: governance
GHG emissions.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices 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. Carrier focuses on delivering the right refrigerant for each application. The right refrigerant varies by
Heat pumps are versatile in creating indoor comfort, providing heat in winter and air conditioning in summer. customer and geography due to specific country or regional requirements. Where technically feasible, we
We strengthened our position in the fast-growing variable refrigerant flow and heat pump market segments deliver natural or very low GWP refrigerant solutions (GWP <150) and evaluate options to expand our offering
by acquiring Toshi
Keyword: governance
load and optimizing chiller performance, it reduces energy use and helps minimize indirect emissions.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 16
Deliver Digital Technologies
Connected platforms, integrated solutions and value-added services are powering Carrier’s transition from
Aftermarket
an 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 more
Carrier delivers solutions to our customers across the entire product lifecycle. Our comprehensive
connected cold chain. Carrier solutions, such as Abound and Lynx, enable real-time insights that drive
aftermarket solutions include remote monitoring and diagnostics, predictive maintenance, spare parts,
positive, healthy and sustainable outcomes for
Keyword: governance
Savings Solutions”).Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 17
Circular Business Models Product Responsibility
GRI 306-2 | SASB RT-IG-440b.1
GRI 3-3
Carrier has developed programs to support equipment reuse and responsible takeback and recycling.
Carrier’s proactive product integrity programs help ensure that the quality and safety of the products and
Carrier Rental Systems is a leading provider of specialized cooling, services we provide meet or exceed customer and regulatory requirements.
heating, dehumidification and power generation rental equipment.
As a Service We provide customers with cost-effective and energy-efficient solutions Product Safety
to supplement existing equipment during seasonal business cycles,
GRI 416-1 | SASB RT-EE-250a.2
planned shutdown
Keyword: governance
Our Product Integrity Policy establishes governance and coordination within and among our business
segments to ensure the quality and safety of the products and services we provide. Our product safety
Carrier helps customers with their end of useful life refrigerant
program focuses on:
management, supporting their environmental strategies. Our BluEdge
service offering includes responsible refrigerant management, with
End of Useful Life reclamation and decommissioning processes in place. Appropriate Proactive risk prevention during Preventing product and process Rapid and effective mitigation
product development safety safety defects during production of potential product safety risks
Management refrigerant management helps to ensure that these chemicals do not
reviews to ensure that complia
Keyword: governance
Governance Committee of our Board of Directors oversees program progress.
Carrier was awarded recyclability accreditation for the PrimeLINE and Each business segment is expected to implement our corporate Product Integrity Policy by:
NaturaLINE refrigeration units by Underwriters Laboratories Inc. (UL). These
units are the only transport container refrigeration units in the industry to Appointing a Product Safety Establishing a Product Safety Exercising responsibility for
Recyclability achieve this prestigious sustainability validation. This accreditation validates Officer to manage oversight Council to review product incident identification, reporting,
of product safety issues and safety issues and oversee investigation and timely
the recyclability
Keyword: governance
Employees receive additional product safety training based on their roles.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 18
Product Quality Continuous Improvement
Our Quality Management System governs product quality policies and 95% Carrier’s Internal Audit team assesses product safety culture and awareness in selected business segment
programs, setting standards, processes and metrics to help ensure sites at least three times a year. The Carrier Product Safety Board, chaired by our Chairman & Chief Executive
the integrity of our products along their lifecycle. We regularly review of Carrier manufacturing Officer, meets at least once annually to review business segment performance, company-level performance
data, lessons learned and best practices, deploying process and policy sites are ISO 9001:2015 and program health in
Keyword: governance
• Products are released when and integrity. • Quality managers regularly • Standards-based cybersecurity governance and compliance.
specified safety, verification • We track product quality review claims data so we can • Persistent vigilance and continuous improvement.
and reliability testing is results and set annual quickly react to field issues
• Customer mission success.
completed. goals across the entire and customer feedback.
value stream.
• Products are approved by Carrier’s Global Product Cybersecurity team supports and delivers on the strategic, production,
an internal review board operational and commercial cybersecurity-related demands of our stakeholders in three areas: secure
consisting of executive product development, product cyber operations and cyber commercial innovation.
leadership from engineering;
Our Dynamic Secure Development Life
Keyword: governance
Security through the Cybersecurity and Infrastructure Security Agency.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 19
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-class
customer 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 turn
customers into advocates of our products and services. Feedback is made visible to employees who receive
training and tools to hel
Keyword: governance
ADAPTTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 20
Operations
Carrier incorporates sustainable practices throughout
our global operations to reduce greenhouse gas (GHG)
emissions, energy consumption, water withdrawal and
waste generation.
Operational Excellence .............. 21
Environment, Health
& Safety Management .............. 22
Energy & Operational
Carbon Footprint .................... 23
Water .............................. 25
Waste ............................. 26
Health & Safety .................... 26
Responsible Supply Chains .......... 28Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 21
Operational Excellence
The pillars of Carrier Excellence are culture,
Keyword: governance
• Innovating sustainable solutions for the future.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 22
Environment, Health & Operational Performance Highlights1
Safety Management GRI 302-1, 302-3, 303-3, 305-1, 305-2, 305-4, 305-5, 306-3, 306-4, 306-5
GRI 3-3, 403-1, 403-8
GHG Emissions Absolute GHG Emissions (tCOe) GHG Intensity
2
The health and safety of our employees is the top priority across our Scope 1 and 2 operational Scope 1 Scope 2 location-based (tCO 2e/million USD in net sales)
operations. Carrier’s Environment, Health & Safety (EH&S) Operating emissions represent electricity 2020 186,812 196,033 2020 21.9
System and EH&S programs help protect our people, stakeholders and fuel use across our
2021 229,973 187,630 2021 20.3
and the environment. The system governs all Carrier employees and glo
Keyword: governance
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 Energy Total Energy Consumption (GJ) Energy Intensity
integrated planning and performance measurement. Carrier uses a (GJ of energy/million USD in net sales)
2020 4,194,215
third-party software provider to capture data across our facilities and We use electricity and
service locations. This data helps us track, monitor and assess our fuel to operate our global 2021 4,754,278 2020 240
EH&S metrics, including GHG emissions, energy, water, waste, and business, including product 2022 3,571,911 2021 231
health and safety. manufacturing and service. 2022 182
The
Keyword: governance
Check-Act cycle. Our EH&S organization, governance and performance Water Withdrawal (ML)
expectations include:
Carrier uses water across 2020 3,885
• Management responsibility and Board-level EH&S oversight. our operations primarily 2021 3,391
• Integrating EH&S management across the enterprise. for heating, cooling and 2022 3,023
manufacturing purposes.
• Compliance with relevant EH&S regulatory requirements in the
locations we operate.
• A formalized EH&S risk management process. Total Waste (metric tons)
Waste & Recycling
• Data and document management, including performance Diverted Disposal
measurement, corrective action monitoring and metrics reporting. Our waste primarily includes
2020 59,626 6,612
metal, wood, paper and glass.
• Best practice sharing on EH&S topics and issues.
To r
Keyword: governance
(acquired in 2021) and excludes acquisitions completed in 2022, such as Toshiba Carrier Corp.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 23
Energy & Operational Carbon Footprint 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
Carrier committed to reducing energy intensity by 10% across our
Our goal to achieve carbon neutral operations by 2030 builds on our 2022 Operational Energy Consumption operations by 2030, supporting our operational carbon neutrality goal.
legacy of implementing targeted reduction programs across our We reduce energy consumption through conservation and efficiency
global facilities. Our Scope 1 and 2 GHG emissions are attributable initiatives tailored to specific facility conditions and energy use
to electricity and fuel consumption across
Keyword: governance
energy-efficiency efforts across our manufacturing sites.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 24
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 Our renewable energy strategy includes on-site installations, direct procurement and renewable energy
energy-consuming sites, including Athens, Georgia; Collierville, Tennessee; Indianapolis, Indiana; Monterrey, credits (RECs). We assess renewable energy opportunities, starting with our global manufacturing
Mexico; and Syracuse, New York. Across the globe, we completed 22 energy audits and identified energy- and research and development centers. In 2022, we installed a solar array system a
Keyword: governance
community benefits.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 25
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 in
Operational Water Withdrawal and Intensity1
our 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 site Withdrawal (ML)
wastewater management plan. We use a third-party software platform to ensure compliance and monitor Intensity (ML/million USD) 3,885
water purchases, withdrawals and discharges. 3,391
.22
3,023
The primary drivers of water withdrawals across our global operations are heating, cooling
Keyword: governance
waste product or finished product.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 26
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 from Operational Waste Generation and Management (metric tons) As part of our 2030 ESG goals, we are committed to maintaining world-
manufacturing locations. We define zero waste as a diversion rate of class safety metrics. We invest in creating safe work environments,
98%. More than 95% of the waste we generate includes nonhazardous Hazardous continuous monitoring and performance improvement, ongoing training
1,123
waste, such as metal, wood, paper and glass. Hazardous waste is less and a strong safet
Keyword: governance
of 2022.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 27
Dedicated health and safety professionals implement the EH&S Total Recordable Incident Rate1 Our Stop Work Authority Standard covers the expectations and the
Operating System across our global operations and field services. process to stop, assess, resolve and follow up if any task cannot
All facilities are required to regularly identify, assess and manage risks 0.4 be performed safely by employees, contractors or visitors on the
using the hierarchy of controls, including when planned and unplanned 0.38 manufacturing floor or in field operations. All site leadership teams
0.37
0.3
operation changes occur. Our health and safety professionals conduct 0.31 promote and reinforce this behavior and prevent
Keyword: governance
2 LTIR: Number of lost-time cases x 200,000/total hours worked.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 28
Occupational Health Training & Development Responsible Supply Chains
GRI 403-3, 403-6, 403-7 GRI 403-5
Our suppliers are a critical part of the global Carrier team. From their
Carrier’s EH&S Operating System identifies critical actions for Carrier’s EH&S Operating System requires the creation and adoption
innovation to their commitment to quality, suppliers work with us every
maintaining occupational health, including employee health and of an annual training plan within our manufacturing and service
day to meet and exceed customer needs. Our suppliers include small
medical surveillance testing and industrial hygiene assessments of operations that includes topics, methods of training, target audiences
Keyword: governance
commodity management.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 29
Carrier uses EcoVadis, a third-party risk assessment platform and Suppliers can reach Carrier Preferred status by committing to Conflict Minerals
engagement tool, to assess top factory suppliers across key ESG operational excellence and to meeting cost and sustainability targets
topic areas, including labor practices, human rights, ethics, energy, as follows: Carrier has established a conflict minerals compliance program
climate and water. We continue to progress toward our goal to designed to conform, in all material respects, to the internationally
annually assess 80% of Carrier’s product spend against sustainability • ≥98% on-time delivery for the last 12 months. recognized due diligence framework
Keyword: governance
with our Carrier Preferred-level suppliers.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 30
People
At Carrier, our diverse ideas and perspectives are our
greatest 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 ............... 39Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 31
Culture & Engagement The Carrier Way
GRI 2-7, 2-29, 3-3, 401-1, 405-1 The Carrier Way is the foundation of everything Our aspiration; why we come to work every day.
we do. It defines our vision, reaffirms our values, Creating solutions that matter for people
Keyword: governance
for permanent employees; does not include temporary employees.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 32
Employee Engagement Engagement Score
77 76
We listen to our In Pulse surveys for 2022, the average of our results showed that: Gender
employees, review their
• Engagement Score, in response to the question, “How
feedback and take action
happy are you working at the company,” was 76, two points 76 Female Male
to drive performance
above benchmark.1
improvement and
increase the impact • 75% of our employees participated in the Pulse survey, U.S. People 72
of our programs. We up from 64% the previous year. of Color
conduct our Pulse global
engagement survey three Carrier
Overall
times a year in local languages. Pulse surveys are
an opportunity for employees to provide honest,
confidential feedback. Employ
Keyword: governance
with the data representing over 900 companies from around the world.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 33
Inclusion & Diversity Reduce the Gap
GRI 405-1
GRI 3-3, 405-1
We reduce the gap by recruiting inclusively; building partnerships with colleges, universities and professional
Our greatest strength is the diversity of our people and their ideas. We are
organizations; and hiring and promoting the most talented employees. We build an intentional connection
committed to a workplace that is truly and genuinely inclusive, one that inspires
between our talent practices and inclusion and diversity (I&D). While our efforts to build an inclusive and
and encourages everyone, everywhere, to bring their authentic selves to work,
diverse workforce have yielded results, we acknowledge that it is a journey and we have
Keyword: governance
2 Does not include Toshiba Carrier Corp.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 34
Partnerships Develop & Sponsor
We are proud to partner with two top historically Black colleges and universities (HBCUs) – North Carolina Development and sponsorship are critical to our journey. A key part of our I&D philosophy is the focused
Agricultural and Technical State University and Spelman College – to strengthen our diverse talent pipeline. development of our affinity employee groups.
Carrier and Spelman College created programs to help students develop skills for the future. The multiyear
ELEVATE Development Platform
commitments involve creating two flagship programs – The Carrier Ambassadors Program, a leadership and
development program for Spelman students in their sophomore and junior yea
Keyword: governance
countriesTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 35
Employee Resource Groups
Our global Employee Resource Groups (ERGs)
reflect the diversity of Carrier’s workforce and
help develop our affinity groups and are open to
membership for all Carrier employees. The ERGs
have five strategic working areas: education and United Carrier Asian Network Carrier Black Alliance Carrier Hispanics & Latinos Employee
awareness, professional networking, community Drives awareness about Asian culture, fosters Fosters programs to attract, retain, Engagement Resource group
outreach, business partnering and strategy inclusion and builds an ecosystem for diverse inspire and support Black and African Promotes attraction, connection, development
execution. They operate with a f
Keyword: governance
such as this one in China, to celebrate International Women’s Day.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 36
Drive Inclusion Lean Forward
The key to inclusion is to listen and learn, and We celebrate diversity, communicate authentically
to educate leaders and employees across the In 2022, 96% of our and transparently about our progress toward
organization. Through Employee Resource Groups, inclusion and continuously look for new ideas to
non-production employees
fireside chats, listening sessions and training, make Carrier an inclusive workplace.
we drive a culture of inclusion throughout the completed online learning
company. We empower people leaders with the We foster a culture that drives The Carrier Way
tools and resources they need to lead diverse about inclusion and diversity. values of respect, integ
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and recommended learning modules. in I&D matters with the Governance Committee
reviewing and overseeing our efforts.
As a part of our broader I&D philosophy, we
provided employees and people leaders with In the United States, Martin Luther King Jr. Day is
resources to develop their awareness and a recognized holiday for employees. Additionally,
understanding through new learning content in Carrier celebrates Juneteenth in the United States
the Carrier Learning Portal. We focused on allyship with a series of events discussing the intersection
and inclusion as core themes and offered online 222000222222 of the Black experience in corporate America,
learning in 30 languages. reflecting on history and culture, and celebrating community. In partnership with our ERGs, Carrier embraces
and commemorates Asian Pacif
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by 2030.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 37
Development & Career Growth Capability & Skills Development
GRI 404-2
GRI 404-1, 404-2
Learning and development are core to Carrier’s culture. We provide employees with the knowledge,
Employee development and continuous learning programs are a priority for Carrier. We invest in our people so experience and perspective they need to achieve ever-higher levels of performance in their careers.
their careers can progress, and we can grow together. Our development programs help position Carrier as an
employer of choice while accelerating innovation for customers. Our learning methodologies involve sharing best practices, building business networks, coaching and
tapping into knowledge across the company. Eac
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since inceptionTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 38
Leadership Development
Programs
Global Talent Possible Programs
In 2022, participation nearly tripled in our New
People Manager Program compared with the
previous year, helping participants to lead with
The Carrier Way values and behaviors. To 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:
In addition, our mentorship program allows all early career, mid-career and senior leadership. From building trust to managing priorities and
employees to search for, meet and engage with guiding collaborative discussions, each program focuses on the unique skills leaders nee
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one of our Talent Possible cohorts in 2022.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 39
Performance Management & Development Reviews Employee Well-Being
GRI 404-3
GRI 401-2
We are strengthening our approach to well-being by fostering dialogue between employees and their
managers and measuring well-being in Pulse engagement surveys.
Flexible Work
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 the Carrier’s global flexible work philosophy is rooted in four key tenets.
stage 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
Keyword: governance
2 For those employees whose roles and responsibilities allow for remote work. May be subject to location regulation or bargaining/consultation requirement.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 40
Health & Wellness
Carrier offers competitive benefits programs for all employees, The following benefits reflect our offerings in the United States for salaried and nonunion hourly employees. Benefits vary by region,
monitoring new market developments and enhancing our programs business alignment, union agreement and employee status:
when necessary. The individual plans that make up Carrier’s benefits
are designed to balance immediate needs, such as offering healthcare,
Healthcare Plans Voluntary Benefits
with a longer-term focus, such as planning for retirement.
• Medical, dental and vision coverage • Accident insurance
In coordination with each country’s social welfare system, and in
addition to any
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• Business travel accident coverageTable of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 41
Communities
Carrier makes a positive impact on communities through
philanthropic giving, volunteerism and partnerships.
Corporate Responsibility ............ 42
Planet ............................. 42
People ............................. 43
Communities ....................... 44
2022 Community Impact ............ 44Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 42
Corporate Responsibility Planet
GRI 203-1, 203-2
Our philanthropic giving aligns with our 2030 ESG goals. In U.N. World Food Programme The Nature Conservancy
compliance with our Philanthropic Donations Policy, we bring our
unique knowledge and expertise to co
Keyword: governance
1 In-kind donations are calculated using fair market value.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 43
People
Building Talent Foundation
Carrier is creating a pipeline of future HVAC technicians through a collaboration with the Building Talent
Foundation. 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 career
advancement 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 the
Keyword: governance
Buildings, a STEM project competition and an online video game development competition.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 44
Communities 2022 Community Impact
Habitat for Humanity $1.3M+ 1,100+
Carrier supported home builds across six U.S. cities as a signature
INVESTED IN COMMUNITIES ORGANIZATIONS
partner of Habitat for Humanity’s Home is the Key campaign to
through the Carrier Matching SUPPORTED
create safe and affordable housing. We also supported additional
Gifts Program, doubling through the Carrier
home builds across the country. Our involvement includes volunteer
employee donations Matching Gifts Program
efforts, financial support and product donations from our Healthy
Homes suite of indoor air quality and fire safety solutions. As part
of these efforts, we proudly celebrated our 25th consecutive annual
$1.4M+ 360+
h
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1 In-kind donations are calculated using fair market value.Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 45
Governance
Our corporate governance provides the framework for
building 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 ............. 50Table of Contents Introduction Innovation & Solutions Operations People Communities Governance ESG Indices Carrier 2023 ESG Report 46
Leadership ESG Governance & Oversight
GRI 2-9, 2-11, 405-1 GRI 2-9, 2-12, 2-13, 2-19
Carrier’s Board of Directors oversees the strategic directio
Keyword: governance
n of the company to advance the long-term Our approach to ESG and sustainability governance is embedded into our culture, including at the highest
interests of the company and our various stakeholders. At the end of 2022, our nine-member Board of levels and across all business segments and functions. We amended our Corporate Governance Principles
Directors included eight independent directors. Our Executive Leadership Team executes Carrier’s strategic and the charters of each of our committees to further refine the Board’s oversight of ESG. The amendments
and operating plans and comprises the primary organizational functions and leaders of our reporting elevated primary responsibility to the full Board for Carrier’s ESG program, goals and objectives, including
segments: HVAC, Refrigeration and Fire & Security. climate-related mat