First in HVAC industry to announce purchase agreements with two major U.S. steel companies
Trane Technologies (NYSE: TT), a global climate innovator, today announced it will further reduce the carbon impact of its industry-leading, sustainable HVAC solutions by purchasing low-carbon steel from primary supplier Nucor Corporation (NYSE: NUE), Econiq™, with an additional allotment from U. S. Steel (NYSE: X), verdeX®. The steel will be used in U.S. manufacturing operations to build Trane® high-efficiency heat pumps and air conditioners for homes, and thermal management systems for commercial buildings such as schools and data centers.
“Sustainability is at the core of our strategy, and we’re excited to take another step forward in our journey to net-zero HVAC solutions,” said Dave Regnery, chair and CEO of Trane Technologies. “Our partnerships with Nucor Corporation and U. S. Steel will make our products even more sustainable as we continue to decarbonize our full value chain – from the raw materials we use, to our own operations, to the lifecycle impact of our products and services around the world. We’re proud to be leading the market transition to a net-zero future.”
Representing 20 percent of Trane Technologies’ annual steel purchase, the low-carbon steel is nearly 80 percent less carbon intensive than traditional blast furnace steel. With this purchase, the company expects to reduce nearly 16,000 metric tons of carbon annually with a reduction of 120,000 metric tons by 2030 – the equivalent of emissions generated from powering more than 55,000 homes for one year. The steel industry today accounts for approximately 8 percent of global carbon emissions.
“We are grateful for the opportunity to partner with Trane Technologies as their primary supplier of lower carbon steel, which will reduce carbon emissions throughout their supply chain,” said Leon Topalian, Nucor’s chair, president and CEO. “Our Econiq™ brand is helping steel end-users meet their growth and sustainability goals, and we are proud that it is going to be a key piece of Trane Technologies’ vision of a net-zero emissions future.”
“We are thrilled to help our customers move toward a net-zero future by creating solutions that are Best for All®,” said U. S. Steel president and CEO David B. Burritt. “U. S. Steel’s verdeX® steel is strong enough to handle the day-to-day demands of businesses and homeowners, and can reduce CO2 emissions by up to 70%–80% versus integrated steel mill production.”
Trane Technologies pledges to procure, specify or stock 50 percent net-zero steel by 2030 and 100 percent net-zero steel by 2050 as a member of SteelZero. Trane Technologies also is a founding member of the First Movers Coalition. Through bold, industry-leading action and partnerships, Trane Technologies is advancing its 2030 Sustainability Commitments, including the Gigaton Challenge, and its pledge to be net-zero by 2050, with emissions reduction targets validated by the Science Based Targets Initiative (SBTi).
About Trane Technologies
Trane Technologies is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more on Trane Technologies, visit www.tranetechnologies.com.
This news release includes “forward-looking statements” which are statements that are not historical facts, including statements that relate to our sustainability commitments and the impact of these commitments. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, our future financial performance and targets, including revenue, EPS and operating income; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, including the amount of shares to be repurchased and the timing of such repurchases and our capital allocation strategy, including acquisitions, if any; our projected free cash flow and usage of such cash; our available liquidity; performance of the markets in which we operate; restructuring activity and cost savings associated with such activity; and our effective tax rate. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2021, as well as our subsequent reports on Form 10-Q and other SEC filings. We assume no obligation to update these forward-looking statements.
Trane Technologies reduces carbon impact of HVAC in homes and buildings through first-in-its-industry, low-carbon steel purchase.