Carrier Global Corp.
Company Double Materiality Analysis
This one-page analysis examines a company’s products, services and operational practices and whether they positively contribute or detract from sustainability goals. Our analysis relies on quantitative indicators, leading industry frameworks and covers topics most relevant to the company’s industry.
A primer describing the Double Materiality approach is available here.
Carrier Global Corp.
Ticker: CARR US
ISIN: US14448C1045
Market Cap: US$44 billion
GICS Sector: Industrials
SICS Industry: Electrical & Electronic Equipment
Country: U.S.
SMS theme: Energy Transition
SMS sub-theme: Sustainable Infrastructure
Contribution to theme: Positive
Company Description
Carrier Global operates in three segments: HVAC equipment, refrigeration and security. The HVAC segment is the main source of revenues (70% in 2023), serving heating and cooling needs in residential and commercial properties. Refrigeration products (15% of revenues in 2023) support the cold chain and are used in trucks, trailers, food retail and warehouses. The security segment (15% revenues in 2023) provides technologies that help save lives and protect property.
Revenue exposure by country/region: United States (57%), Europe (21%) and Asia Pacific (17%).
Contribution to the sub-theme objectives:
Carrier is a leader in energy-efficient heating, air conditioning and refrigeration systems. As people need to heat their homes (and likely cool them as temperatures continue to rise), products that minimize energy use and emissions have a positive impact. Cold chain transportation of food and medicines is also essential, Carrier’s innovation and use of refrigerants with low global warming potential (GWP) contribute to lowering emissions.
Sub-theme indicators:
Operational Performance
(Laggard, Aligned or Leader)
Material Topics for Electrical & Electronic Equipment : Energy Management, Waste & Hazardous Materials Management, Product Quality & Safety, Product Design & Lifecycle Management, Materials Sourcing & Efficiency, Business Ethics.
Assessment: Aligned
Carrier was the first company in the industry to phase out ozone-depleting refrigerants.
The company set strong ESG goals on material topics relevant with a 2030 target date and is making good progress.
Reports according to GRI, TCFD and SASB frameworks, though some of the accounting metrics are missing for SASB topic product safety.
3 million GJ of energy consumed in 2022, 44% from grid and 0.27% from renewables.
Over the 2,338 metric tons of hazardous waste generated, 52% was recycled.
Total recordable incident rate of 0.31.
Controversies: Nothing to report within the past 5 years.
Product/Service Impact
(Negative, Neutral or Positive)
Assessment: Positive
Innovative air conditioning and heating products up to 85% more efficient than industry standard models. Half of residential sales are ENERGY STAR products.
Use refrigerants with low global warming potential (GWP) where feasible.
Sustainable cold chain solutions (19% of revenues in 2020) help to reduce food waste and limit GHG emissions. Approximately 50% of HVAC and Transport Refrigeration revenue was clean technology.
BluEdge platform provides customer support and contributes to extending lifecycle of products. 27% of net sales were in aftermarket equipment.
SDG Alignment:
