Johnson Controls Backs Call on G7 to Consider New Carbon Prices

Rhea-AI Summary

Johnson Controls (NYSE: JCI) CEO George Oliver co-signed a letter with global leaders urging G7 nations to enhance greenhouse gas emissions reduction efforts, emphasizing the buildings sector, which accounts for 40% of global emissions. The letter advocates for carbon pricing starting at $30 per tonne, potentially rising to $120 per tonne. The Sustainable Markets Initiative, chaired by the Prince of Wales, supports this initiative. Oliver stressed the need for sustainable energy strategies and private investment incentives to address energy supply challenges while promoting advanced optimization technologies.

Positive

• Advocacy for carbon pricing can lead to increased investments in energy-efficient infrastructure.
• Focus on building sector for emissions reduction aligns with global sustainability goals.
• Johnson Controls' long history and expertise positions it as a leader in sustainable building technology.

Negative

• None.

• George Oliver, Chairman and CEO of Johnson Controls, co-signs a letter with global executives urging G7 country leaders meeting this week to accelerate action to shore up emissions reduction plans
• A major focus must be on the buildings sector, accounting for 40% of global emissions, and the deployment of advanced optimization technology
• Private investment in energy efficient infrastructure must be accelerated with G7-led incentives as another pillar to tackling short-term energy supply challenges

CORK, Ireland, June 27, 2022 /PRNewswire/ -- Johnson Controls (NYSE: JCI) Chairman and CEO George Oliver has co-signed a letter with a list of leading international company and organization executives urging the G7 to accelerate action limiting greenhouse gas emissions. One of the primary ways suggested is a ramp in carbon pricing. The letter makes the case for a price starting at around $30 per tonne and potentially moving beyond $120 per tonne if the world is forced to consider options such as drawing emissions directly out of the atmosphere. The call to action comes ahead of the G7 country leaders meeting in Germany this week.

The signatories have come together under the banner of the Sustainable Markets Initiative (SMI) – a collection of more than 400 CEOs and chaired by His Royal Highness the Prince of Wales. The shared goal is to accelerate the world's transition to a sustainable future. Companies co-signing with Johnson Controls, the global leader for smart, healthy and sustainable buildings, include the Bank of America, Mahindra Group, Shell and BP alongside organizations such as Wateraid UK and the Sustainable Food Trust.

"Climate change is a constant and increasing threat," said George Oliver, Chairman and CEO of Johnson Controls. "While we must band together to tackle immediate shocks from energy supply and pricing and address the pain it's causing for people and business, we know that our current energy strategy is not sustainable and must be more resilient, reliable and healthy. Whatever measures G7 leaders consider this week to help the global economy must balance short- and long-term needs and incentivize the private sector to do the right thing on sustainability investment. That includes ways to accelerate adoption of advanced technologies to optimize major emitting sectors such as buildings."

The buildings sector accounts for almost 40% of greenhouse gas emissions and it is a primary target for the United Nations and its Sustainable Development Goals. Johnson Controls has been operating in the sector for nearly 140 years, with its founder Warren Johnson inventing the first electric room thermostat in 1883. Today the company's modern-day innovators are using advanced technology to transform how buildings are controlled through the Johnson Controls OpenBlue platform. OpenBlue sits on top of buildings' operational technology, taking data from connected devices running heating, lighting and ventilation and other systems, and it applies machine learning analytics – either locally or in the cloud – to manage performance in real-time.

The goal of Johnson Controls is to make future buildings more autonomous and far more sustainable, as well as smarter and healthier. According to Katie McGinty, Johnson Controls Chief Sustainability Officer:

"We know that real energy security can only come from a strategy that cuts costs and carbon. The best place to start is energy efficiency as technology today can dramatically cut energy consumption and emissions while boosting the bottom line. A major acceleration of effort to upgrade buildings will bring more secure communities and a stable climate. G7 leaders have the opportunity and obligation now to drive action with smart policy and favorable investment incentives."

To read the SMI letter in full: https://www.sustainable-markets.org/news/flipping-the-switch/  

To learn more about Johnson Controls OpenBlue platform: https://www.johnsoncontrols.com/openblue

Other recent relevant news:

Johnson Controls and Accenture Join Forces on New AI-enabled OpenBlue Innovation Centers

Johnson Controls acquires Tempered Networks to bring zero trust cybersecurity to connected buildings worldwide

INVESTOR CONTACT:
Ryan Edelman
Direct: 609.720.4545
Email: ryan.edelman@jci.com
    
MEDIA CONTACTS:
Andy Winstanley
Direct: +44 7929 792054
Email: andy.winstanley@jci.com

Michael Isaac
Direct: +41 79 694 14 62
Email: michael.isaac@jci.com

Karen Tognarelli
Direct: 571.214.7744
Email: karen.tognarelli@jci.com

About Johnson Controls:

At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet. Building on a proud history of more than 135 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.

Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry. Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms.

 

 

 

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SOURCE Johnson Controls International plc

FAQ

What was the purpose of the letter co-signed by Johnson Controls' CEO George Oliver?

The letter urged G7 leaders to accelerate greenhouse gas emissions reduction efforts, particularly in the buildings sector.

What is the significance of the buildings sector in emissions reduction?

The buildings sector accounts for nearly 40% of global emissions, making it a key focus for sustainability initiatives.

What carbon pricing levels are suggested in the letter?

The letter suggests starting carbon pricing at $30 per tonne, potentially increasing to $120 per tonne.

What initiative is Johnson Controls part of regarding sustainability?

Johnson Controls is part of the Sustainable Markets Initiative, which aims to promote sustainable practices across industries.

How does Johnson Controls plan to contribute to a sustainable future?

Through advanced technologies and a focus on energy efficiency, Johnson Controls aims to optimize building performance and reduce emissions.