Energy

In 2018, it took approximately 360,000 megawatt hours (MWh) to power our manufacturing plants worldwide. We are increasing our operational efficiency and strategically transitioning to renewable energy sources to manage and optimize our energy use and increase business productivity.

This year, we achieved a 9% reduction in energy intensity as a direct result of conservation and energy efficiency initiatives. At our Trane® HVAC manufacturing plant in Waco, Texas, we doubled energy productivity and cut electricity costs by 70%, while the facility’s output increased. The U.S. Department of Energy (DOE) recognized our work in Waco with the Better Practice Award.

We are pursuing certification standards at several of our sites around the world. In 2018, we achieved four ISO 50001 certified sites, three LEED-certified sites and two GreenGlobe-certified sites.

360,000

megawatt hours (MWh) to power our manufacturing plants worldwide

70%

decrease in electricity costs in our Trane® HVAC manufacturing plant in Waco, Texas

9%

reduction in energy intensity as a direct result of conservation and energy efficiency initiatives

Absolute Energy Use*

2018

2017

2016

2015

2014

2013

UNITS

Direct (Fuel use)

2,119

2,097

2,115

2,150

2,135

2,119

billion kilojoules (kJ)

Indirect (Electricity)

1,475

1,473

1,501

1,537

1,580

1,541

billion kJ

Total

3,594

3,571

3,616

3,686

3,715

3,660

billion kJ

Normalized Energy Use

0.229

0.251

0.268

0.277

0.288

0.296

billion kJ/million USD

Natural Gas

881

842

845

912

975

916

billion kJ

Gasoline

889

916

946

902

843

844

billion kJ

Diesel

270

264

252

247

240

298

billion kJ

Propane

63

59

61

72

77

62

billion kJ

Aviation Fuel

16

16

11

16

0

0

billion kJ

Renewable Energy

11

0

0

0

0

0

billion kJ

Total Direct Energy

2,129

2,097

2,115

2,150

2,135

2,119

billion kJ

*Slight adjustments made to previously reported data for 2013-2017 to reflect changes in our operational footprint.

 

Management Approach

2020 Target

Optimize energy use by (1) increasing energy efficiency in owned facilities by 10%; (2) increasing fuel efficiency in our fleet; and (3) evaluating all long-term building leases more than 100K sq ft. against environmental and energy criteria.

Oversight

Responsibility for managing energy extends across multiple work groups and functions that are governed by the use of Standard Work as part of our Business Operating System.

Approach

We are increasing our operational efficiency and strategically transitioning to renewable energy sources to manage and optimize our energy use, and increase business productivity. Some of our energy efficiency initiatives include optimizing HVAC systems; employee Green Team programs; eliminating leakage in compressed air systems; and re-lamping.

Energy Efficiency

Energy efficiency is central to our strategy to reduce greenhouse gas (GHG) emissions. We have already achieved and exceeded our 2020 target of a 10% increase in energy efficiency from a 2013 baseline by increasing efficiency across our operations. Some of our initiatives include optimizing HVAC systems; employee Green Team programs; eliminating leakage in compressed air systems; and re-lamping. Over the past five years, our total energy efficiency has increased by 23%, and we continue to progress.

Renewable Energy

Strategically transitioning to renewable resources is key to addressing climate change and creating long-term value for all our stakeholders. 

In 2018, Ingersoll Rand announced investments in on and off-site renewable energy. A 1,990 kW GE solar PV power system is now online and generating power at our manufacturing facility in Trenton, N.J. A 1.35 megawatt, direct current (MWDC) solar power system is online at our Columbia, S.C. facility and a 2,800 kW system is online at our Taicang, China operation. We continue to evaluate additional solar installations and expect to complete an additional installation in a large manufacturing location in China in 2019. These installations address approximately 15% of the energy loads at the locations, equivalent to saving 560,000 gallons of gasoline or taking 1,000 cars off the road.

We signed a power purchase agreement (PPA) this year that will replace approximately 32% of our United States (U.S.) electricity use with green energy and reduce U.S. Scope 2 GHG emissions from electricity use by 32%. This is the equivalent of recycling 26,000 tons of waste instead of sending it to a landfill and preserving 600 acres of U.S. forests.

Going forward, most of our renewable energy mix will be from PPAs on-site or within a single geographic region. We believe that large-scale investments in renewables are vital to shifting to a clean-energy economy. In some parts of the world, direct investment in renewable energy makes sense whereas in other parts of the world with uncertain electricity prices and availability, on-site renewable energy ensures greater operational continuity.