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Sustainability At United Technologies we define sustainability as doing good for the planet while we do good for our customers, employees, communities and shareowners. We have been a sustainability leader for three decades. We were one of the first companies to set sustainability targets, and we continue to improve our environmental performance — steadily reducing greenhouse gas and chemical emissions, energy and water consumption, and industrial waste in our operations. In 2015 our company was recognized by the Climate Disclosure Project as a global leader for its response to climate change. During the year we signed the American Business Act on Climate Pledge, joining the White House and more than 150 U.S. companies in pledging to lower carbon emissions. As part of the pledge, UTC is on track to reduce greenhouse gas emissions by 80 percent before 2050, a goal consistent with the recommendation of the U.N. Intergovernmental Panel on Climate Change. Our commitment to sustainability extends to product development. We consider the environmental impact of our products throughout their life cycle — from design to material selection to energy efficiency. We understand the green building movement. We were the first member of the U.S. Green Building Council, and we are the only company to be a founding member of the council on five continents. We recently sponsored research by Harvard University and its study partners that showed that improved indoor environmental quality doubled cognitive performance test scores. The study has profound implications for companies like UTC that are at the forefront of the green building movement. Non-recycled industrial process waste Million lbs Every five years we set aggressive new sustainability goals for our environment, health and safety performance. We then track and report our progress on a quarterly basis. We surpassed our 2015 environmental goals and made progress toward our health, safety and compliance goals. Our 2020 Sustainability Goals, reflected in the table at right, challenge us to continue to make improvements in our environmental performance — by reducing greenhouse gas and solvent air emissions, water usage and industrial waste. Health and safety in the workplace also are paramount, and we are focused on three areas in particular: reducing the potential for chemical exposures and ergonomic risks and preventing injuries from recurring. EH&S compliance also is a high priority. Our goal always is to be in compliance with all applicable laws and regulations. Environment1 91.9 100% -10% Greenhouse gas emissions Water use Water best practices Hazardous waste 12 Health and Safety1 Ergonomic risk 1.82 1.94 14 15 1.65 1.44 2020 Goal 12 Worldwide water Non-recycled industrial consumption process waste Billion Million gals lbs 91.9 1.82 85.0 1.72 1.65 79.0 1.44 72.5 1.24 13 1.72 14 Industrial Non-greenhou process waste gas emissions Million lbs lbs Million 2.87 2.8 2.09 1.67 2.23 47.8 0.92 12 12 13 13 14 14 15 15 2020 15G Goal The increases in our 2013 results reflect 12 12 13 13 14 14 Non-greenhouse the addition of 100 former Goodrich sites to our EH&S management system. gas emissions Total recordable Million lbs incident rate Lost workday incident rate Cases/100 2.09employees 0.19 0.69 1.67 0.62 2.00 Cases/100 emplo 0.17 0.68 0.15 1.40 0.53 47.8 -25% -50 2.07 13 0.73 79.0 -15% % Billion gals 12 Million Carrier Transicold has made it ametric tons CO2e priority to find ways to preserve and extend the world’s food supply 2.15 and 2.07 1.94 reduce wastage. In 2015 it1.75 held the 1.65 second World Cold Chain Summit to Reduce Food Waste, bringing together experts from academia, government and business from 33 countries to identify actions needed to accelerate progress in cold chain technology and policy development. Food waste not only denies nourishment to the world’s neediest but also contributes 12significant 13 14 15 2020 Goal amounts of greenhouse gases. 72.5 Million metric tons CO2e 1.75 gas emissions 85.0 Worldwide wa consumption 2.15 Approximately 30 percent of the world’s food supply is wasted each year, much of it due to a lack of refrigeration. Greenhouse 2020 Sustainability Goals Greenhouse gas emissions 13 14 15 3x Further reduce exposure to hazardous Total recordable Level I rate substances2incident mistake- Cases/100 employees 0.73 proofing 15G 0.92 12 90% -100% Waste recycled Chlorinated and brominated solvents 13 15 15G 100 Enforcement actions, non-compliance Inspections without enforcement actions 0.68 % 100 100% Progress versus 2015 baseline. 2 Further reduce the potential for CRE (carcinogens, 0.62 reproductive toxins and endocrine disruptors) exposure to Annual permit & 50 percent below the OEL (occupational exposure limit). 0.53 program evaluations No current UTC CRE exposures above OEL. 12 15G 0 1 0.69 14 EH&S Compliance 12 13 14 15 % Passing compliance/ assurance scores For a comprehensive review of our 2020 Sustainability Goals, including those for products, suppliers, manufacturing and services, visit www.utc.com. 2015 Annual Report 12 13 14 15 15G 9 13 14