Johnson Controls named to “2023 Top 100 Companies” for climate action and impact

Johnson Controls is recognized as one of the Top 100 Companies in 2023 by Sustainability Magazine.

Johnson Controls, the global leader in smart, healthy and sustainable buildings, has been named to the 2023 Top 100 Companies by Sustainability Magazine. The list recognizes companies that are creating lasting positive impact on the environment, in particular for driving the energy transition forward and addressing the need for transparency around climate action and sustainability reporting.

“Johnson Controls is leading the global net zero building transformation, tackling the nearly 40% of global greenhouse gas emissions that come from buildings, by deploying the smart building trifecta of energy-efficient equipment, clean electrification and digitalization,” said Katie McGinty, vice president and chief sustainability and external relations officer at Johnson Controls. “In particular, OpenBlue, our robust, connected ecosystem with dynamic AI, edge and cloud computing, is revolutionizing buildings. OpenBlue not only substantially decreases energy use and emissions, but it also provides an unparalleled level of precision and transparency in energy and emissions measurement and reporting.”

The smart building trifecta with OpenBlue allows business leaders to make deep energy cuts that translate not only into reduced emissions but also into significant operational cost savings. Johnson Controls also offers innovative financing models like “Net Zero Buildings as a Service” that build on this savings foundation. Johnson Controls’ “Net Zero Buildings as a Service” makes net zero accessible to virtually any organization, public or private, by allowing them to deploy technology to start their net zero journeys without upfront capital costs, using energy and operational savings to fund projects. The “Net Zero Buildings as a Service” model can deliver such profound energy savings that it yields returns above project costs – revenue that organizations can invest in business growth.

This kind of energy-savings-based project model has resulted in numerous groundbreaking climate projects in the past year, including a historic sustainability and energy efficiency project at one of the busiest sports and entertainment complexes in the U.S. – the Harris County Sports & Convention Corporation (HCSCC) NRG Park in Texas. This is a 20-year contract that is expected to generate more than $54 million dollars in savings, which will fund the entire cost of the complex-wide upgrades, as well as provide surplus savings to be reinvested back into the Harris County community.

Another project with the Cherry Creek School District in Colorado aims to reduce annual carbon emissions by 25% and water usage by 1.8 billion gallons, while creating net savings that will pay for the contract as well as generate savings of $1 million per year over 20 years to reinvest into the school’s environment, teachers and students.

In addition, to support business leaders facing the move from voluntary to mandatory climate action and risk disclosures, Johnson Controls released enhanced capabilities in its OpenBlue Net Zero Advisor in early 2023. OpenBlue Net Zero Advisor provides an all-in-one tool for carbon footprint assessment, target setting, emissions management and tracking. In addition, it aggregates data across a global building portfolio to deliver insights on reducing building emissions and assist in accurate and transparent global reporting, while saving the time, effort, and money normally spent on complicated calculations and spreadsheets. Net Zero Advisor automatically extracts data from monthly utility bills and on-site renewable energy sources. It also applies local emissions factors, including those contributed by the local power grid. Based on that data, it calculates Scope 1 and 2 emissions. Aggregating and analyzing data across a global portfolio of buildings, Net Zero Advisor can also provide carbon footprint transparency at an enterprise-wide level. For both businesses and national leaders, this digitalized, transparent, efficient reporting marks a critical milestone in achieving net zero progress.

Johnson Controls is also using this smart building trifecta to accelerate its own net zero journey. The company is ahead of schedule on Scope 1, 2 and 3 emission targets approved by the Science Based Targets initiative (SBTi). The company has committed to a combined Scope 1 and 2 reduction of 55% by 2030; it has already reached 42% and has saved over 455,934 metric tons of absolute emissions across operations. The company’s 2030 Scope 3 target is to reduce customer emissions from use of products by 16%, and it has already achieved 14% – saving over 18 million metric tons of CO2e. The company has pledged to use 100% renewable energy and drive Scope 1 and 2 emissions to net zero by 2040 – 10 years ahead of the Paris Agreement.

To tackle embodied carbon emissions, Johnson Controls also launched a closed-loop steel recycling program with Nucor Steel to recycle 100% of steel scraps from five major manufacturing locations in the U.S., amounting to thousands of tons of recycled steel each year. Nucor remelts the steel using electric arc furnace (EAF) technology, which generates approximately 75% less emissions than traditional blast furnace manufacturing. The remelted steel is then sold back to Johnson Controls for use in manufacturing. This remanufactured steelmaking process cuts carbon by approximately 80% overall, compared to the use of primary steel. Johnson Controls is also using its global purchasing power to accelerate the adoption of near net zero steel. Currently, over 70% of Johnson Controls steel purchases in the U.S. and 45% globally are manufactured from recycled scrap materials.

Johnson Controls continues to innovate for greater climate impact. In fiscal year 2022, the company invested more than 90% of new product research and development into sustainability-related innovation.

Johnson Controls was one of the earliest industrial companies to sign the UN Global Compact and has ranked 16 times as one of the World’s Most Ethical Companies. The company ranks number one in the HVAC industry on the list of Corporate Knights Global 100 Most Sustainable Corporations. It earned a platinum rating from EcoVadis, and was distinguished at the global climate leadership level by the CDP. The company earned a top ESG rating from Sustainalytics, an AAA rating from the MSCI, and ISS ESG Prime Status. Johnson Controls has been named to the Clean200 every year since the list’s inception, recognizing its high proportion of revenues that contribute to a sustainable economy. The company also received the S&P Global Industry Mover 2022 Sustainability Award. The company was honored as one of the 100 Best Corporate Citizens for the 17th year by 3BL and was named a European Climate Leader in 2022 and 2023 by the Financial Times. Fortune chose Johnson Controls for both its Change the World and Most Admired Companies lists, and Forbes named the company one of the Best Employers for Diversity and Best Employers for Women. The company was also honored as the Microsoft 2023 Global Independent Software Vendor Partner of the Year and the Microsoft 2022 Global Sustainability Changemaker and has received the Terra Carta Seal twice from HRH Prince of Wales. Vice President and Chief Sustainability and External Relations Officer Katie McGinty was named to the 2023 ESG50, a list of the most influential global sustainable business executives, who are advancing sustainability in their fields through new business models, emerging technologies and ethical, humane leadership.

For more on Johnson Controls’ climate impact, see the 2023 Sustainability Report.