Trane Technologies Reduces Carbon Impact of HVAC in Homes and Buildings Through Low-Carbon Steel

Rhea-AI Summary

Trane Technologies (NYSE: TT) is partnering with Nucor Corporation (NYSE: NUE) and U.S. Steel (NYSE: X) to purchase low-carbon steel for its HVAC solutions. This move aims to significantly reduce carbon emissions, with an annual reduction expectation of nearly 16,000 metric tons, equivalent to powering over 55,000 homes for a year. The steel purchased represents 20% of Trane's annual steel needs, and is 80% less carbon intensive than traditional steel. Trane aims for 50% net-zero steel procurement by 2030 and 100% by 2050.

Positive

• Partnering with Nucor and U.S. Steel to acquire low-carbon steel enhances sustainability efforts.
• Expected annual reduction of 16,000 metric tons of carbon, with a goal of 120,000 metric tons by 2030.
• Low-carbon steel represents 20% of annual steel purchasing needs.
• Commitment to 50% net-zero steel by 2030 and 100% by 2050 strengthens long-term sustainability strategy.

Negative

• None.

First in HVAC industry to announce purchase agreements with two major U.S. steel companies

SWORDS, Ireland--(BUSINESS WIRE)-- 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221115005691/en/

Media Contact:

Shelby Hansen

+1-704-990-3835

Shelby.Hansen@tranetechnologies.com

Investors Contact:

Zachary Nagle

+1-704-990-3913

InvestorRelations@tranetechnologies.com

Source: Trane Technologies

FAQ

What is the significance of Trane Technologies' partnership with Nucor and U.S. Steel?

The partnership allows Trane Technologies to procure low-carbon steel, significantly reducing carbon emissions related to its HVAC products.

How much carbon does Trane Technologies expect to reduce annually with their new steel purchase agreements?

Trane expects to reduce nearly 16,000 metric tons of carbon emissions annually.

What are Trane Technologies' goals for steel procurement by 2030?

Trane aims to procure 50% net-zero steel by 2030 and 100% by 2050.

What does low-carbon steel mean for Trane Technologies' HVAC solutions?

Low-carbon steel is nearly 80% less carbon intensive, contributing to Trane's sustainability commitments and goals for a net-zero future.

Which companies are supplying low-carbon steel to Trane Technologies?

The steel will be supplied by Nucor Corporation and U.S. Steel.