UTC strives to maintain the highest environmental standards everywhere we do business. Environmental sustainability is an important part of both our operations and our products as they perform in service. We have a history of setting aggressive environmental goals and pursuing them by continuously improving our processes at every level of the company. In addition to our own work and to overcome some of today’s greatest challenges, we partner with other companies and non-governmental organizations to find and implement solutions.

• Reduce greenhouse gas emissions 3 percent annually and water consumption 2.5 percent annually from 2007 through 2010
• Invest $100 million from 2007 through 2010 in energy conservation projects, including co-generation systems
• Ensure compliance with environmental permits
• Develop 2011 through 2015 sustainability goals with a focus on suppliers and products in use

Key Performance Indicators

UTC environmental reporting standards encourage the ongoing analysis and correction of data as applicable following the close of a reporting period. Previously reported annual environmental metric results may change between annual reporting periods, and UTC will include any prior year data revisions in current reporting. In 2008, we initiated a third party assessment of our EH&S data collection and reporting program.

Securing a sustainable future

Climate change is a critical environmental concern. Long term, UTC has reduced base energy use by 22 percent and water use by 50 percents since 1997. With a worldwide real estate portfolio of more than 100 million square feet, we are committed to designing and building new facilities with the lowest possible environmental footprint.

• In 2008, UTC began using the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system in all new facilities, whether owned or leased. Pratt & Whitney's G Building became the first LEED-certified building. Some of the benefits include raised floors for a more efficient cooling system, 100 percent use of energy efficient bulbs, facilitation of natural light, lighting sensors and more than 50% of building materials are made from recycled materials. As of year-end 2008, UTC has 18 registered projects in the planning, construction or completion phase, including four in final certification review.

We also partner with other leading companies to affect global change. With our peer Lafarge, UTC is leading the World Business Council for Sustainable Development’s Energy Efficiency in Buildings project to develop a roadmap for zero net energy buildings in six representative regions of the world.

Beginning in 1991, UTC established Environment, Health & Safety (EH&S) goals and the following year began publicly reporting performance against them. After meeting and exceeding many goals ahead of schedule, UTC committed to aggressive 10-year goals to reduce energy and water use in 1997. We added air emissions and waste reduction goals in 1999.

After achieving all of the environmental metrics in the previous goals, we then set even more ambitious goals for improved performance between January 1, 2007 and December 31, 2010 (using 2006 results as our baseline). We have committed to reduce greenhouse gas emissions 12 percent and water consumption 10 percent through the end of 2010. We have already exceeded our water reduction goal as of December 31, 2008 and we will continue to aggressively identify and implement further reductions. To measure greenhouse gas (GHG) emissions, we will use the Greenhouse Gas Protocol established by the World Business Council for Sustainable Development and the World Resources Institute.