Kelly RomanoPresidentBuilding Systems and ServicesCarrier Corporation

September 17, 2009

UNITED TECHNOLOGIES$58.7B revenues; seven business units

Heating, ventilating, cooling & refrigeration systems

Elevators, escalators, moving walkways, people movers & horizontal transportation systems

Aircraft engines, gas turbines & space propulsion systems

HelicoptersIndustrial & aerospace systems

Security & fire protection services

Clean power, cooling / heating solutions

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EVOLUTION OF UTC EH&S GOALS

1997 – 2006Compliance +Conservation

2007 – 2010Value Chain

Focus

1991 – 1996Compliance

2011-2020Eliminate adverse

impacts

+ Key Suppliers+ UTC Products

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ENVIRONMENT, HEALTH & SAFETY 1997-2006 results

Energy (BTUs)

56%19%

Air Emissions (lbs.)

Waste (lbs.)

69%44%

52%13%

Recycled

66%39%

Non-Recycled

72%49%

Water (gal.)

Normalized

Absolute

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ENVIRONMENT, HEALTH & SAFETY GOALS2010 goals for internal operations and productsFactory & operations metrics

NonGreenhouse Gas

Emissions

20%

GreenhouseGases(CO2 e) Waste

12% 10%Industrial Process

30%Non-Recycled

10% 10%

Water

Consumption Chemicals Discharged

Product metrics

10%Packaging

in product packaging

100%Materials of Concern

eliminated in new products

10%Energy Efficiency

from product baseline

FinancialSocialEnvironmental

Giving: Environmental

Ethics

Energy

Water

Waste

Carbon costing

Air

GHG

Compliance

Safety

Giving: Engineering

Giving: Arts

Governance

Logistics

Transportation

Product safety

Supplier EH&S Impacts

Education/ ESP

Supplier EH&SExpectations

Product CarbonFootprints

Product MaterialContent

ProductEfficiency

MaterialsOf Concern

ProductPackaging

Product LCA

Financial Social Environmental

VolunteerismProduct

Investment

Project Investment

Diversity

Emerging issues:Regulatory, climate, H&S,

material scarcity, ecosystems, etc.

Transparency

Sustainability Investor

Relations

Sustainability

Develo

ped Developing

UTC SUSTAINABILITY ACTIVITIES

Sustainability Communications

SupplierLabor

Practices

Codes of Conduct

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GHG REDUCTION STRATEGYEnergy & GHG reductions = lower operating costs

Auditing of existing sites: identify opportunities

Maximize efficiency of older systems

Maximize efficiency potential of new systems, new leases and fleet

Leverage cogeneration

Maximize efficiency of new sites: Green buildings/zero-net energy buildings

Past 2007- 2010 Future

Supply chain energy and GHG reductions

Leverage case studies for UTC product sales

2006 Corporate Responsibility ReportUTC Standard Practice-017

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39% HVAC

18% Lighting

9% IT / electronics

10% Water heating

24% Other

40%

32%

28%

Transportation

Industry

Buildings*

100%

Source: 2007 Department of Energy Buildings Energy Databook

* Includes Commercial and Residential buildings

(Btu)

U.S. ENERGY CONSUMPTION

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WBCSD ENERGY EFFICIENCY IN BUILDINGSPath to zero net energy buildings

2007/2008 2008/2009

Perception that certified sustainable building will cost 17% more than a “standard” building - reality is the additional cost is 5%.

Perception that buildings CO2 impact is 19% -reality is 40% of CO2 emissions.

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LEED certified is UTC standard for all new construction

LEED Gold is target

Planned projects total ~ 1 million ft2

Otis TEDA manufacturing facility in Tianjin, China is LEED Gold

Pratt & Whitney engine overhaul facility in Shanghai, China is LEED Silver

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LEED CERTIFIEDGlobal building policy

LEED CERTIFIEDU.S. Existing Buildings

Charlotte, NC

First UTC manufacturing facility in world LEED-EB19% more energy efficient*No irrigation for lawn and landscapingOver 80% recycling rate

Huntington, IN

30% more energy efficient*Reduced water usageInstituted green housekeepingOver 50% recycling rate

*Compared to other buildings with similar function

Chiller manufacturing facility

Electronic controls manufacturing facility

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WASHINGTON, D.C. PROJECTS

EMSI®Founding Farmers Restaurant

Washington, D.C.

NORESCONational Gallery of Art

Washington, D.C.

NORESCOU.S. Capital Complex

Washington, D.C.

LEED® Gold Certification

80% Energy Star Appliances

Energy efficiency light system that exceeds ASHRAE 90.1 lighting power standards by 10%

Average Annual Savings: $350,000

VFD replacement program Energy efficient lighting

upgrade programInstallation of bypass

ductwork to the NGA HVAC system

 

Average Annual Savings: $2.0 million

Replacement or retrofit of nearly 200,000 lighting fixtures

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ENERGY EFFICIENT SOLUTIONS

Elevators that use less energy when lifting loads – and give back energy on descent

Requires up to 90% less water than traditional sprinkler systems

Integrated security solutions provide access control, visitor management, and

video management capability

Building automation system controls HVAC, lighting and other systems,

optimizing energy consumption

Energy audit and sustainability services to reduce energy use and operating expenses

with Foxfire™ technology

Combined cooling, heating and power solutions can double energy efficiency over most conventional grid sources

The world’s most efficient non-ozone-depleting water-cooled chiller

Clean power, cooling / heating power

Buildings have the greatest potential and are the cheapest option

Address both new buildings and retrofit / replace existing buildings

Investments are needed to push the market.

The market alone will not do it

Simple subsystem approaches will not be enough

All actors need to be involved

ROADMAP TO FUTUREWhole building, whole life = CO2 reductions

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