Global climate innovator sets new benchmarks—10% of revenue from circular products and services, and doubling use of circular materials by 2030
Trane Technologies (NYSE:TT), a global climate innovator, today announced new circularity impact metrics focused on generating 10 percent of its revenue from circular products and services and more than doubling the use of circular materials by 2030.
Trane Technologies' circularity strategy includes multiple innovative initiatives to increase the use of recycled materials and to optimize the continued use of products through smart services, upgrades, remanufacturing and recovery programs, delivering ongoing value to customers. By redeploying high-quality parts and reducing material use, the company aims to increase efficiency, improve supply chain resiliency and open new, recurring revenue streams.
"Circularity has been a powerful driver of innovation for our company for many years," said Mauro J. Atalla, senior vice president and Chief Technology and Sustainability Officer, Trane Technologies. "With these new metrics, we're tracking the conversion of circularity practices into revenue, continuing to demonstrate that there is no tradeoff between strong financial performance and bold sustainability leadership."
Trane Technologies' circularity impact metrics were developed in alignment with the World Business Council on Sustainable Development's new Global Circularity Protocol, the first global voluntary framework for measuring, managing and communicating circularity impacts, which was announced at the United Nations 30th Annual Conference of the Parties (COP30) in November.
"The Global Circularity Protocol will help companies reduce emissions, strengthen accountability and improve business performance," said Diane Holdorf, executive vice president, World Business Council for Sustainable Development. "Trane Technologies is leading the way in demonstrating the ROI of sustainability. We welcome their leadership as an example for other companies to follow by embracing circularity as a lever for growth and impact."
The new circularity impact metrics represent a significant expansion of the company's goal to design systems for circularity, part of its Leading by Example 2030 Sustainability Commitment. The benchmarks are the latest in a series of enhancements to the operational goal, including a commitment to reduce the embodied carbon of its products by 40% by 2030 and deliver more than one million HVAC units manufactured with low-carbon steel.
Trane Technologies' circularity strategy is anchored by strong relationships with direct material suppliers enabling procurement of recycled materials, including steel, copper and aluminum. In 2024, approximately 46 percent of the key commodities used to manufacture its products contained recycled content.
"We're proud to work with Trane Technologies to respond to growing demand from customers for more sustainable solutions," said Patrick Lawlor, President, Granges Americas, a global leader in aluminum rolling and recycling. "By increasing the usage of recycled materials in our product offerings to Trane Technologies, we are creating a circular and sustainable solution benefiting both companies and their end customers."
Through bold, industry-leading action and partnerships, Trane Technologies is advancing its 2030 Sustainability Commitments, including the Gigaton Challenge – a pledge to reduce customer greenhouse gas emissions by 1 billion metric tons (or, one gigaton) – and its pledge to be net-zero by 2050.
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. Visit tranetechnologies.com.
This news release includes "forward-looking statements" within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our product and service circularity strategy including revenue targets, innovative product and service offerings, anticipated supply chain impacts, including raw material reductions and usage of recycled materials, our sustainability commitments, and the anticipated 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. Factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2024, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We assume no obligation to update these forward-looking statements.
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