Environment & Impact at Otis
Originally published in Otis 2022 ESG Report
Otis is committed to promoting sustainability in our business to support our customers and communities. We are managing our impact on the environment through our factories, real estate footprint and vehicle fleet.
With customers in more than 200 countries and territories globally, we must design, manufacture, install and service our equipment responsibly and effectively. To do so, we operate through more than 1,400 branches and offices, 17 factories and a global fleet of approximately 22,000 vehicles that transport our field professionals to and from jobsites. To date, we have made steady progress reducing the environmental impact of our operations, specifically on Scope 1 and Scope 2 emissions (see below) – with a goal of reducing our greenhouse gas (GHG) emissions by 50% by 2030. We are expanding those efforts with the quantification of Scope 3 emissions, and we intend to submit to the Science Based Target initiative (SBTi) in 2023. In addition, we continue to manage and address sources of factory electricity, industrial and hazardous waste, and water consumption, and to expand the number of products covered by Environmental Product Declarations (EPDs).
Broad business benefits are being realized through both enhanced efficiency and operational excellence. We are identifying opportunities for cost reduction and margin improvement through our sustainability efforts, while also aligning our products with customer demands.
Goal: Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030
Otis reduced Scope 1 and Scope 2 GHG emissions by 4.8% in 2022, with a cumulative reduction of 11% versus our 2019 baseline. These reductions are the direct result of major initiatives implemented over the last few years, such as focusing on factory energy management, real estate and fleet. In 2022, we also took the critical action of linking our Scope 1 and Scope 2 GHG emission reduction goal to our executive short-term incentive (STI) compensation program. The added performance multiplier can adjust the STI awards up or down by 5% based on our progress toward achieving this goal. It is intended to drive immediate near-term action. We continue to assess opportunities for emission reductions in our business as we drive toward our commitments.
We have made tremendous progress in the implementation of energy efficient projects and best practices at our global factories and intend to fully implement all viable opportunities over the next few years. In addition, we plan to maximize the use of electricity from carbon-neutral sources.
